/raid1/www/Hosts/bankrupt/TCRAP_Public/200513.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, May 13, 2020, Vol. 23, No. 96
Headlines
A U S T R A L I A
BAIXIN GROUP: Second Creditors' Meeting Set for May 20
BAUER MEDIA: Resumes Sale Talks with Private Equity
HOTEL DEVELOPMENT: Second Creditors' Meeting Set for May 22
POSITIVE EXISTENCE: First Creditors' Meeting Set for May 21
RGD CONSTRUCTIONS: First Creditors' Meeting Set for May 20
SMARTASSET SOFTWARE: Second Creditors' Meeting Set for May 20
SYSTEMCORP ENERGY: Second Creditors' Meeting Set for May 22
VIRGIN AUSTRALIA: Customers Set for Credits for Cancelled Flights
C H I N A
CHINA OIL: Moody's Alters Outlook on Ba2 CFR to Negative
H O N G K O N G
OCEAN PARK: HK Government Proposes Nearly $700 Million Bailout
I N D I A
A.M. FISHERIES: CRISIL Lowers Rating on INR1.8cr Loan to B+
AAMEYA POLYMERS: CRISIL Keeps B+ on INR15cr Loans in NonCooperating
AARADHYA DISPOSAL: CRISIL Lowers Rating on INR7.75cr Loan to B+
ADVENTURE PARK: CRISIL Keeps B on INR5cr Loan in Not Cooperating
AIRCO-FIN TUBES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
AMARAVATHI SPINNING: CRISIL Keeps D Debt Ratings in Not Cooperating
ANCHOR AGRITECH: CARE Keeps D on INR5.45cr Debt in Not Cooperating
ANKUR IRON: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
ANUBHAV PLAST: CRISIL Keeps B+ on INR8.5cr Loan in Not Cooperating
ARMSTRONG SPINNING: CRISIL Lowers Rating on INR25cr Loan to B+
ASR EXPORTS: CRISIL Lowers Rating on INR5cr Cash Loan to B+
ATC LOGISTICS: CRISIL Lowers Rating on INR54cr Term Loan to B+
BHARAT SCANS: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
BSC C&C KURALI: CARE Keeps 'D' on INR157cr Loans in Not Cooperating
CHAUDHARY TRADING: CRISIL Keeps B Debt Rating in Not Cooperating
CHHABEELA ENERGY: CRISIL Lowers Rating on INR36cr Loan to B+
CRIYAGEN AGRI: CRISIL Keeps B Debt Ratings in Not Cooperating
CSREM TRUST: CRISIL Lowers Rating on INR40.5cr Loan to B+
DEEPA INFRA: CRISIL Maintains 'B+' Debt Ratings in Not Cooperating
DHANBAD ROCKWOOL: CRISIL Lowers Rating on INR4.5cr Loan to B+
DHANVRIDHI COMMERCIAL: CRISIL Keeps 'D' Ratings in Not Cooperating
DUTTA SUPPLY: CRISIL Lowers Rating on INR3.7cr Loan to B+
ESHWARI TEXTILE: CRISIL Lowers Rating on INR4.75cr Loan to B+
EXCEL: CRISIL Maintains B- Debt Ratings in Not Cooperating Category
FUSION VOICE: CRISIL Keeps B+ on INR12.5cr Loans in Not Cooperating
JCBL LIMITED: Ind-Ra Lowers LT Issuer Rating to 'B', Outlook Stable
M C ROLLER: CRISIL Keeps B+ on INR12cr Credit in Not Cooperating
MODEL TANNERS: Ind-Ra Affirms, Then Withdraws 'BB' LT Issuer Rating
MOMENTUM TECHSYS: Ind-Ra Keeps 'BB+' LT Rating in Non-Cooperating
NEW STONE: CRISIL Migrates 'B+' Debt Ratings From Non-Cooperating
NIKS ORGANIC: CRISIL Assigns B+ Rating to INR5.6cr Cash Loan
PARANJAPE SCHEMES: CRISIL Keeps 'B' Debt Rating in Not Cooperating
PATWARI FORGINGS: CRISIL Reaffirms B+ Rating on INR5cr Loan
PEEJAY AGRO: CRISIL Lowers Rating on INR7.55cr Cash Loan to 'D'
RAISONS FIBRES: CRISIL Reaffirms 'B' Ratings on INR6cr Loans
SHIVDHARA SPINNERS: CRISIL Cuts Rating on INR39.5cr Loans to 'D'
SUCHI FASTENERS: Ind-Ra Moves 'B' Issuer Rating to Non-Cooperating
TATA MOTORS: Has No Value Without Luxury Unit, CLSA Says
VIVIN DRUGS: CRISIL Lowers Rating on INR18cr Cash Loan to B+
I N D O N E S I A
GARUDA INDONESIA: Gov't. Drafts $1BB Rescue Plan to Save Carrier
N E W Z E A L A N D
TANGO NEW ZEALAND: 5 Burger King Restaurants Set to Close for Good
S I N G A P O R E
HIN LEONG: Ocean Tankers Unit Seeks Judicial Management
ZENROCK COMMODITIES: Owes $600MM to Creditors, Court Docs Show
X X X X X X X X
ASIA: Governments Boost Dollar Borrowing to Fight Coronavirus
- - - - -
=================
A U S T R A L I A
=================
BAIXIN GROUP: Second Creditors' Meeting Set for May 20
------------------------------------------------------
A second meeting of creditors in the proceedings of Baixin Group
Pty Ltd has been set for May 20, 2020, at 11:30 a.m. at Level 27,
259 George Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 19, 2020, at 4:00 p.m.
Sule Arnautovic and Andrew John Spring of Jirsch Sutherland were
appointed as administrators of Baixin Group on Feb. 20, 2020.
BAUER MEDIA: Resumes Sale Talks with Private Equity
---------------------------------------------------
The Sydney Morning Herald reports that Bauer Media Australia has
resumed talks with private equity as the troubled German-owned
publisher looks for a way to end a difficult seven years in the
local market.
SMH says the owner of The Australian Women's Weekly and Woman's
Day, which recently bought Seven West Media's magazine arm for
AUD40 million, has spent the past few weeks aggressively slashing
costs through mass redundancies and suspension of print magazines
in an attempt to shore up the business for a buyer.
According to the report, private equity firm Mercury Capital had
been looking to buy the Australian and New Zealand operations but
the discussions fell apart in January when Bauer's acquisition of
Seven's Pacific Magazines was delayed by the Australian Competition
and Consumer Commission. Bauer has since shut its New Zealand
division and has bought Pacific, publisher of New Idea, WHO and
Better Homes and Gardens.
SMH relates that multiple industry sources who spoke on the
condition of anonymity said the publisher has now re-commenced
discussions about a sale to private equity, with Mercury the likely
buyer. Sources previously told The Sydney Morning Herald and The
Age that a bid from Mercury, run by venture capitalist Clark
Perkins, was dependent on the success of the deal between Bauer and
Seven's Pacific Magazines, the report relays.
A sale of Bauer would be a much-needed exit from Australia for
global chief executive Yvonne Bauer, SMH says. The Bauer family
bought Australian Consolidated Press from Nine Entertainment for
AUD525 million back in 2012, a transaction which the industry
considered to be well over market value at the time. Nine owns The
Sydney Morning Herald and The Age.
Bauer has had six chief executives since it entered the Australian
market in 2012, and has axed titles including Dolly, Cleo,
Cosmopolitan, Men's Style, ZOOWeekly, People and The Picture
magazines, the report notes. Hundreds of jobs have been lost and
the company was also subject to a landmark defamation case
involving actor Rebel Wilson.
According to SMH, the last few months have been particularly
difficult for Bauer due to dramatic falls in advertising spending
caused by the COVID-19 pandemic. Bauer has shut its New Zealand
operation and tried to renegotiate the terms of its acquisition of
Pacific, which published New Idea, Marie Claire and That's Life!.
Sources said almost all executives involved in the sale at the
company's Hamburg headquarters have since lost their jobs, the
report relays.
SMH says Pacific staff that moved over to Bauer endured a
redundancy round on the first official day of trading as a joint
business. The 60 redundancies were in addition to almost 200
Pacific roles axed last December and leave the Pacific business
with one quarter of the staff it had before the deal was announced.
The most recent redundancies were overseen by Ernst & Young, the
consultancy helping Bauer unwind its New Zealand operation. Bauer
also axed 70 jobs before sale completion and has suspended print
production of titles including Elle, Harper's Bazaar, NW, OK!,
Men's Health and Women's Health.
Ms. Bauer has been looking for an exit from the market for a long
time, sources said. But any deal will be significantly less than
the AUD525 million Bauer originally paid and the AUD150 million
which The Australian Financial Review said was on the table last
November, SMH adds.
HOTEL DEVELOPMENT: Second Creditors' Meeting Set for May 22
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Hotel
Development Group Pty Ltd has been set for May 22, 2020, at 10:30
p.m. via virtual meeting.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 21, 2020, at 3:00 p.m.
Samuel John Freeman and Justin Denis Walsh of Ernst & Young were
appointed as administrators of Hotel Developments on April 16,
2020.
POSITIVE EXISTENCE: First Creditors' Meeting Set for May 21
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Positive
Existence Personal Training Pty Ltd will be held on May 21, 2020,
at 11:00 a.m. via telephone.
Francis Jude O'Neill and David Michael Stimpson of SV Partners were
appointed as administrators of Positive Existence on May 11, 2020.
RGD CONSTRUCTIONS: First Creditors' Meeting Set for May 20
----------------------------------------------------------
A first meeting of the creditors in the proceedings of RGD
Constructions Pty Ltd and RGD Group Pty Ltd will be held on May 20,
2020, at 11:00 a.m. via virtual meeting.
John Park and Kelly-Anne Trenfield of FTI Consulting were appointed
as administrators of RGD Constructions on May 8, 2020.
SMARTASSET SOFTWARE: Second Creditors' Meeting Set for May 20
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Smartasset
Software Pty Ltd has been set for May 20, 2020, at 3:00 p.m. via
teleconference only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 19, 2020, at 4:00 p.m.
Simon John Cathro and Ivan Glavas of Worrells Solvency & Forensic
Accountants were appointed as administrators of Smartasset Software
on April 15, 2020.
SYSTEMCORP ENERGY: Second Creditors' Meeting Set for May 22
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Systemcorp
Energy Pty Ltd has been set for May 22, 2020, at 10:00 a.m. at the
offices of Cor Cordis, Mezzanine Level, 28 The Esplanade, in
Perth, WA.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 21, 2020, at 4:00 p.m.
Jeremy Joseph Nipps and Bruno A Secatore of Cor Cordis were
appointed as administrators of Systemcorp Energy on April 16,
2020.
VIRGIN AUSTRALIA: Customers Set for Credits for Cancelled Flights
-----------------------------------------------------------------
Patrick Hatch at The Sydney Morning Herald reports that thousands
of travellers owed refunds for cancelled Virgin Australia flights
may never see their cash again and will instead be issued with
travel vouchers under a plan proposed by the airline's
administrators.
According to SMH, Virgin stopped giving refunds or travel credits
for cancelled flights when it collapsed last month with debts of
nearly $7 billion, after the COVID-19 pandemic forced it to ground
almost its entire operations.
SMH relates that Deloitte's lead administrator Vaughan Strawbridge
wrote in an affidavit filed to the Federal Court on May 12 that
Virgin has received about 340,000 requests for refunds after
cancelling 65,000 flights between March 1 and April 30 due to the
pandemic.
Mr. Strawbridge said while some customers would normally be
eligible for cash refunds, Deloitte has proposed a policy where all
customers who booked flights before Virgin entered administration
and those yet to receive a refund or credit will be given a
"conditional travel credit" of the same value, SMH relays.
SMH says the travel credits will be valid for as long as the
airline is in administration, with the process expected to run
until mid-August, and the policy warns that it "may not be possible
or practical" for Virgin to resume normal flights by then.
Customers who have not claimed or used their credits will be
treated as unsecured creditors in the administration process and
are "unlikely to receive a 100% refund on any restructuring or upon
liquidation", the court application said.
"The Conditional Credit scheme offers those customers the
possibility of realising 100% of the value of their refund by using
the credit on a future flight or holiday package," it says, SMH
relays.
Whether Virgin honours flight credits or gives refunds after the
administration period will be a decision for its new owners, the
report states. Virgin's normal refund and credit policies apply to
all tickets booked after it entered administration.
According to SMH, Mr. Strawbridge said giving customers something
for the money they are owed would preserve goodwill in the Virgin
brand and make it a more attractive business for the 19 parties
interested in buying the airline.
"The inability of the Virgin Companies to pay refunds or offer
credits at present puts them at a competitive disadvantage," the
report quotes Mr. Strawbridge as saying.
However, he said administrators will only issue the credits if the
court relieves them of their personal liability for any future
claims against their value.
SMH relates that the court application, which will be heard May 13,
also seeks to limit the administrators' liability for debts
incurred from Virgin continuing to fly leased aircraft, airport
fees, for use of the Virgin trade mark owned by Richard Branson,
and for essential services such as ground handling, fuel,
maintenance and in-flight catering.
The administrators also want to be exempt from liability if Virgin
receives inaccurate payments from government through the Jobkeeper
program, SMH adds.
SMH says Virgin has applied for the wage subsidy on behalf of 8,228
workers, with payments of $24.8 million claimed in the first two
weeks. Administrators are usually responsible for debts they incur
while running an insolvent company.
According to the report, Mr. Strawbridge said a total of 19 bidders
were now in Virgin data room weighing up a rescue package. Deloitte
had previously revealed that it was working with
20 interested parties but only eight had signed confidentiality
agreements that let them inspect the airline's books.
Indicative bids are due this Friday [May 15], binding offers are
due on June 12, and a binding deal is expected to be completed by
June 21, followed by a creditors meeting in early August to vote on
a proposal, SMH notes.
Parties known to be involved include BGH Capital and its partner
AustralianSuper, American airline investor Indigo Partners,
distressed debt specialist Oaktree, private equity firm Bain
Capital and the Perth-based conglomerate Wesfarmers. Canadian asset
manager Brookfield is also interested but sources on May 11 said
that investment bank Macquarie has reportedly stepped back its
consortium, the report notes.
About Virgin Australia
Brisbane, Queensland-based Virgin Australia is Australia's
second-largest airline. It commenced services in 2000 as Virgin
Blue, wholly owned by the Virgin Group.
As reported in the Troubled Company Reporter-Asia Pacific on April
22, 2020, Bloomberg News related that Virgin Australia Holdings
Ltd. became Asia's first airline to fall to the coronavirus after
the outbreak deprived the debt-burdened company of almost all
income. Administrators at Deloitte, who have taken control of the
Brisbane-based carrier, aim to restructure the business and find
new owners within months. More than 10 parties have expressed an
interest, Deloitte related on April 21.
According to Bloomberg, Virgin Australia, which has furloughed 80%
of its 10,000 workers, will continue to operate some flights for
essential workers, freight and the repatriation of Australians. The
airline's frequent flyer program is a separate company and is not
in administration.
Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri
of Deloitte were appointed as administrators of Virgin Australia et
al. on April 20, 2020.
On April 29, the company and certain affiliates filed petitions
pursuant to Chapter 15 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York.
=========
C H I N A
=========
CHINA OIL: Moody's Alters Outlook on Ba2 CFR to Negative
--------------------------------------------------------
Moody's Investors Service has revised the outlook on China Oil and
Gas Group Limited to negative from stable.
At the same time, Moody's has affirmed COG's Ba2 corporate family
rating and senior unsecured ratings.
RATINGS RATIONALE
"The change in outlook to negative reflects COG's weakening credit
profile due to low oil prices in the near term arising from the
collapse in demand due to significant global economic slowdown as a
result of the coronavirus outbreak," says Ralph Ng, a Moody's
Assistant Vice President and Analyst.
The expected low oil prices in the near term will materially reduce
the profitability of COG's upstream oil operations in Canada, and
Moody's expects this oil segment to record an accounting loss in
2020.
Consequently, the overall credit profile of COG will be adversely
affected by its oil segment and a cash flow contribution from this
segment to the holding company in the near term is unlikely.
COG's overseas operations accounted for 6% of segmental profits and
15% of total assets in 2019[1].
Moody's has reduced its oil price assumptions because of the sharp
fall in demand for oil-related products worldwide due to the deeper
global economic recession Moody's now expects in 2020 in all major
advanced economies. While significant supply adjustments would help
to balance the market later in 2020, demand recovery may return
only gradually. Oil price assumptions for West Texas Intermediate
are $30 per barrel in 2020 and $40 in 2021.
Based on these revised assumptions, COG's retained cash flow to
debt will drop to between 11%-12% in the next 12-18 months from 13%
in 2020, a level below the downgrade trigger of 12% for Ba2
ratings.
COG's weakening credit profile continues to reflect higher business
risk from its overseas upstream operations, compared with its
relatively stable city-gas operations in China.
"In addition, Moody's expects the economic slowdown in China to
moderate gas sales growth in 2020, resulting in a softening cash
flow for COG's natural gas business in China," adds Ng.
Moody's expects COG's gas sales growth will drop to 5% in 2020 from
its previous estimate of 8%-10% because of the economic slowdown in
China. Consequently, its softening cash flow from its domestic
city-gas operations will not be able to offset the weakness in its
oil segment. That said, the city-gas operations have gradually been
stabilizing since late February.
Overall, Moody's estimates the company's RCF/debt at 11% in 2020
and 12% in 2021, with its adjusted funds from operations (FFO)
interest cover staying at 3.7x in 2020 and 3.9x in 2021. These
metrics are marginal for a Ba2 credit profile.
The rating affirmation reflects the company's relatively stable
city-gas distribution operation in China, manageable capital
spending and moderate liquidity profile.
The rapid and widening spread globally of the coronavirus outbreak,
deteriorating Chinese and 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. The Chinese gas sector is affected by the shock
given its sensitivity to consumer demand and sentiment.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Rating upgrade is unlikely, given the negative outlook.
The outlook on the ratings could return to stable if (1) oil prices
recover and stabilize on a sustained basis over the next 12-18
months; (2) COG's gas sales growth remains consistent with or
exceeds Moody's expectation; and (3) the liquidity profiles of COG
and its holding company remain adequate.
COG's ratings could be downgraded if (1) oil prices continue to
drop and remain significantly below Moody's expectation, resulting
in a material cash loss in COG's oil segment; and (2) gas sales
volumes in COG's domestic operations reduce substantially.
Financial metrics indicative of a downgrade includes RCF/debt
falling below 12% and FFO interest cover staying below 2.5x on a
sustained basis.
The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in June 2017.
China Oil and Gas Group Limited engages in the piped city gas
business, as well as the transportation and distribution of
compressed natural gas and liquefied natural gas. The company also
expanded its footprint to the oil and gas production business in
Canada in July 2014.
COG listed on the Hong Kong Stock Exchange in 1993 and began its
natural gas distribution business in 2002. Xu Tie-liang was the
largest shareholder and chairman with a 25.92% stake as of December
31, 2019.
=================
H O N G K O N G
=================
OCEAN PARK: HK Government Proposes Nearly $700 Million Bailout
--------------------------------------------------------------
Liu Yanfei and Denise Jia at Caixin Global report that the Hong
Kong government proposed on May 11 to provide HK$5.4 billion to
keep the city's iconic amusement park afloat and its 7,500 ocean
animals alive.
Caixin relates that without the government bailout, Hong Kong Ocean
Park could go out of business by the end of June as the Covid-19
pandemic froze tourism, the park's chairman said May 11.
The new funding proposal, now pending approval from legislators,
aims at supporting the park's operations over the next 12 months
and paying off a commercial debt of around HK$3 billion as the park
prepares to reopen, Caixin says.
=========
I N D I A
=========
A.M. FISHERIES: CRISIL Lowers Rating on INR1.8cr Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of A.M. Fisheries
(AMF) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 1 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Bill Discounting 10 CRISIL A4 (ISSUER NOT
under Letter of COOPERATING; Revised from
Credit 'CRISIL A4+ ISSUER NOT
COOPERATING')
Long Term Loan 1.8 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Packing Credit 10 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 1.2 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with AMF for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AMF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AMF is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of AMF revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not
Cooperating'.
AMF, a partnership firm, was set up in 2010 by Mr. A Mustaffa and
his family in Kerala. The firm exports seafood, mainly cuttlefish,
octopus, and squid. Mr. M Nizam, son of Mr. A Mustaffa, is the
firm's managing partner.
Established in 2010 as a partnership firm by the promoters of AMF
in Kerala, PMF exports seafood, mainly cuttlefish, octopus, and
squid.
AAMEYA POLYMERS: CRISIL Keeps B+ on INR15cr Loans in NonCooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Aameya Polymers LLP
(APLLP) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with APLLP for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of APLLP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on APLLP is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of APLLP continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Set up in March 2016, APLLP manufactures multi-layer laminated
films, polythene bags and pouches, used for packaging purposes in
industries such as food & grain, pharmacy, confectionary, and FMCG.
Commercial operations commenced from April 2017. Mr Vishal Poddar
and Mrs Rekha Shah are partners in the firm. The manufacturing
facility is situated at Dewas, Madhya Pradesh, with an installed
capacity of 3600 metric tons per annum.
AARADHYA DISPOSAL: CRISIL Lowers Rating on INR7.75cr Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Aaradhya
Disposal Industries Private Limited (ADIIL) to 'CRISIL B+/Stable
Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.25 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 7.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ADIIL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ADIIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ADIIL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ADIIL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
ADIIL was previously set up as a partnership firm in 2013 (refers
to calendar year, January 1 to December 31) and was reconstituted
with its current name in 2015. It manufactures paper cups, paper
cup blank and paper cup bottom roll. The manufacturing facility is
located in Dewas, Madhya Pradesh. The company is promoted by Mr
Sunil Maheshwari and Mr Anil Maheshwari.
ADVENTURE PARK: CRISIL Keeps B on INR5cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Adventure Park (APK)
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with APK for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of APK, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on APK is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of APK continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Promoted by Mrs. Gayatri, APK is setting up an 'Adventure' themed
amusement park with adventure and water rides. The firm's amusement
park is being set up in a total area of 35 acres in Coimbatore and
is expected to commence operations from March 2018.
AIRCO-FIN TUBES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Airco-Fin Tubes India
Private limited (AFTIPL) continues to be 'CRISIL B+/Stable/CRISIL
A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .4 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 1.1 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with AFTIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AFTIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AFTIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of AFTIPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Incorporated in 2005, AFTIPL is involved in manufacturing of finned
tubes having application in heat exchangers in heavy engineering
industrial units. The company is a joint venture between the
Netherlands based Airco Fin Beheer BV and the Indian promoters Mr.
E.V. Prasad and Mr. Shyam Prasad.
AMARAVATHI SPINNING: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Amaravathi Spinning
Mills (Rajapalayam) Private Limited (ASMRPL) continues to be
'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .53 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 7.00 CRISIL D (ISSUER NOT
COOPERATING)
Export Packing 0.50 CRISIL D (ISSUER NOT
Credit COOPERATING)
Letter of Credit 2.00 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 1.90 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with ASMRPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ASMRPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ASMRPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ASMRPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Incorporated in 1989, ASMRPL manufactures cotton yarn. Its facility
in Rajapalayam (Tamil Nadu) has a capacity of 12,168 spindles. Its
operations are spread across Coimbatore, Karur, Salem, and Erode
(all in Tamil Nadu).
ANCHOR AGRITECH: CARE Keeps D on INR5.45cr Debt in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Anchor
Agritech (AGR) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 5.45 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated March 28, 2019, placed the
rating(s) of AGR under the 'issuer noncooperating' category as ARG
had failed to provide information for monitoring of the rating. ARG
continues to be noncooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated April 06, 2020, April 14, 2020, April 15, 2020,
April 16, 2020 and April 17, 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).
Detailed description of the key rating drivers
At the time of last rating on March 28, 2019, the following was the
rating weaknesses:
Key Rating Weaknesses
* On-going delay in debt servicing: Owing to weak liquidity
position, there are on-going delays in debt servicing.
M/s. Anchor Agritech (ARG) was initially setup by Mrs. Kalpana
Desai as a sole proprietorship firm in 2013 under the name of M/s.
Anchor Chemicals. It was reconstituted into a partnership firm in
September 2015, under its current name by adding Mrs Kalpana Desai,
Mr. Jayesh Desai as a partner in the firm. The firm is engaged in
storage and handling of fruit and vegetables and their ripening,
packaging and distribution.
ANKUR IRON: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Ankur Iron India
Private Limited (AIPL) continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2.12 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan .38 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with AIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of AIPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
AIPL was set up as a proprietorship concern named Ankur Steel
Corporation in 1982 by Mr. Kiran Mehta; it was reconstituted as a
private limited company with its current name in 2011. AIPL trades
in steel and steel products such as cold-rolled sheets, galvanized
sheets, hot-rolled sheets and plates.
ANUBHAV PLAST: CRISIL Keeps B+ on INR8.5cr Loan in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Anubhav Plast Private
Limited (APPL) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 8.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with APPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of APPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on APPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of APPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
APPL, based in Kanpur, Uttar Pradesh, manufactures swaged type
steel tubular poles used in electrification, and undertakes turnkey
projects from state electricity boards for setting up substations
and laying 33-kilovolt transmission lines. APPL was incorporated in
1987 by Mr Onkar Nath Gupta. Its manufacturing plant is in Rania
Industrial Area, Kanpur.
ARMSTRONG SPINNING: CRISIL Lowers Rating on INR25cr Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Armstrong
Spinning Mills Private Limited (ASMPL) to 'CRISIL B+/Stable/CRISIL
A4 Issuer Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .2 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 25 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Letter of Credit 2 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Long Term Loan 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 9.74 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ASMPL for obtaining
information through letters and emails dated
February 12, 2020 and April 11, 2020 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ASMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ASMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ASMPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Set up in 1996, ASMPL manufactures cotton yarn and is a part of the
Armstrong group based in Tiruppur, Tamil Nadu.
ASR EXPORTS: CRISIL Lowers Rating on INR5cr Cash Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of ASR Exports
Private Limited (AEPL) to 'CRISIL B+/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with AEPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of AEPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Incorporated in the year 2011, AEPL is promoted by the Agarwal
family. The company is currently engaged in processing and trading
of raw cashew. The company has 2 processing plants which are based
at Mangalore and Ahmedabad.
ATC LOGISTICS: CRISIL Lowers Rating on INR54cr Term Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of ATC Logistics
Private Limited (ATCPL) to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 54 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ATCPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ATCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ATCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ATCPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.
ATCPL was promoted by Mr Tutul Chowdhury in 2009 to provide
third-party logistics solutions. The promoter earlier operated ATC
India, a proprietorship firm engaged in material handling and
transportation for other large logistics solutions providers. ATCPL
has a logistics facility at Barasat in Kolkata, and has branches in
Sikkim, Jharkhand, Bihar, and Odisha. The company has leased out
665,700 square feet of warehouse space to companies such as Bharti
Airtel, M/s. P.N. Writers Corporation Private Limited, and Idea
Cellular, etc.
BHARAT SCANS: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Bharat Scans Private
Limited (BSPL) continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .47 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 2.75 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 4 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Working 1.31 CRISIL D (ISSUER NOT
Capital Facility COOPERATING)
Working Capital
Facility .97 CRISIL D (ISSUER NOT
COOPERATING)
Working Capital
Term Loan .50 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BSPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of BSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BSPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of BSPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Set up in 1995, BSPL operates six diagnostic centres in Tamil Nadu.
It is promoted by Dr Rajamani Emmanuel Gunaseelan and Dr Beula
Emmanuel.
BSC C&C KURALI: CARE Keeps 'D' on INR157cr Loans in Not Cooperating
-------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of BSC C&C
Kurali Toll Road Limited (BSC Kurali) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 157.30 CARE D; Issuer not cooperating;
Facilities Based on best available
Information
Detailed Rationale & Key Rating Drivers
CARE has been seeking for information from BSC Kurali to monitor
the ratings vide email communications dated June 27, 2019, January
30, 2020, February 13, 2020, March 25, 2020 and various 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 rating on BSC C&C Kurali Toll Road Limited 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.
At the time of last rating on March 27, 2019 the following were the
rating strengths and weaknesses (updated from Annual Report FY19).
Detailed rationale and key rating drivers
The ratings assigned to the bank facilities of BSC C&C Kurali Toll
Road Ltd continue to remain constrained by the delays in meeting
debt obligations due to lower than expected traffic on the toll
road resulting in mismatch of cash flows. This is on account of an
emergence of a new alternate route on the same stretch, lowering
the toll revenue to an extent.
Key rating weakness
* Delays in meeting debt obligations, due to lower than expected
traffic on the toll road resulting in mismatch of cash flows: The
lenders have confirmed that there are ongoing delays in meeting
debt obligations, primarily due to lower than expected traffic on
the toll road and higher outflow with regard to interest and debt
repayment resulting in mismatch of cash flows. BSC Kurali is
exposed to traffic risk as toll collections are its only source of
revenue. Also, the traffic on the project stretch has been lower
than that envisaged earlier, primarily on account of emergence of
new alternate route on the same stretch, lowering the toll revenue
to a sizeable extent and adversely impacting its debt coverage
indicators. The toll revenue during FY19 was INR48.00 crore. The
principal repayment obligations (including dues to banks and
financial institutions) for FY19 was INR29.75 crore, while interest
was INR19.86 crore (total of INR49.61 crore) as against tolling
revenue of INR48.00 crore.
Key Rating Strengths:
* Experienced Promoters: BSC Kurali is a SPV promoted by BSCPL and
C&C. BSCPL is an ISO 9001:2000 accredited infrastructure
Development Company and is into execution of projects for over 3
decades. BSCPL is engaged in various infrastructure developments
segments such as roads, bridges, irrigation projects, airports,
real estate and Hydro power plants. The company has strong
execution capabilities having executed 250 projects aggregating to
around 9000 lane km.
BSC C&C Kurali Toll Road Limited (BSC Kurali) is a Special Purpose
Vehicle (SPV) incorporated in February 2007 by BSCPL Infrastructure
Limited (BSCPL Infrastructure Limited; rated CARE B+;Stable/CARE A4
as per April 4, 2019) and C&C Constructions Limited, which
currently holds 51% and 49% stake in the company respectively. The
project was awarded for Design, Engineering, Finance, Construction,
Operation and Maintenance of Kurali Kiratpur Section from Km 28.6
to Km. 73.2 of NH-21 in the State of Punjab under National Highways
Development Program (NHDP) Phase IIIA on Build, Operate and
Transfer (Toll) basis” (Project) by National Highways Authority
of India (NHAI).
The concession Agreement (CA) was executed between BSC Kurali and
NHAI on 25th June 2007 for a concession period of 20 years which
includes of 2.5 years of construction. The SPV is for the purpose
of widening of an existing 44.60 km long, 2- lane stretch between
Kurali and Kiratpur to 4- lane and stretching and maintenance of
existing 2- lane section The total cost of the project was INR
408.10 crore funded through equity of INR 104.18 crore (24%), NHAI
grant of INR 43.92 crore (11%) and Debt of INR 260 crore (65%). The
project has achieved COD in August 2011.
CHAUDHARY TRADING: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Chaudhary Trading
Company Private Limited (CTPL) continues to be 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Letter of Credit 9.0 CRISIL A4 (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with CTPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CTPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CTPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.
CTPL, incorporated in 1997, processes and trades in timber. The
company is promoted by Mr Ajay Kumar, Mr Shiv Kumar, and Mr Sanjay
Kumar, and its manufacturing facilities are in Gandhidham, Gujrat.
CHHABEELA ENERGY: CRISIL Lowers Rating on INR36cr Loan to B+
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Chhabeela
Energy Foods Private Limited (CEPL; part of the JP Sortex group)
Revised to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 35 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Long Term Loan 36 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 4 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Warehouse Receipts 25 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with CEPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CEPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of CEPL and JP Sortex Pvt Ltd (JP Sortex).
This is because the two companies, together referred to as the JP
Sortex group, are in a similar line of business, managed by the
same promoter family, and have frequent inter-company
transactions.
CEPL, established in 2009 by Mr. Raman Garg, commenced operations
in February 2014; fiscal 2015 was its first full year of
operations. The company mills and sorts basmati as well non-basmati
rice, which it sells in the domestic and export markets. It is
based in Ferozepur, Punjab.
Promoted and founded by Mr. Vinod Garg and his son Mr. Raman Garg
in 1999, JP Sortex is also based in Ferozepur and is in a similar
business.
CRIYAGEN AGRI: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Criyagen Agri and
Biotech Private Limited (Criyagen) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 7 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 13 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with Criyagen for
obtaining information through letters and emails dated December 31,
2019 and April 11, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Criyagen, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on Criyagen
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Criyagen continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Criyagen, which was incorporated by promoter, Dr Basavaraj
Girennavar in 2008, manufactures bio-chemical fertilisers.
CSREM TRUST: CRISIL Lowers Rating on INR40.5cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of CSREM Trust
(Centurion University of Technology and Management) (CSREM; part of
the CUTM group) to 'CRISIL B+/Stable Issuer Not Cooperating' from
'CRISIL BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 40.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Overdraft 5.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with CSREM for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CSREM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CSREM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of CSREM Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.
CUTM, a private university, was formed by an Act of the Odisha
Legislative Assembly in 2010. CUTM has four campuses, at
Parlakhemundi, Bhubaneswar, Bolangir and Rayagada, offering
graduate and post-graduate engineering, management, and science
courses, apart from primary and secondary education, skill and
vocational training, social entrepreneurship initiatives, and
doctorate courses. The university includes School of Management,
School of Engineering and Technology, School of Vocational
Education and Training, School of Architecture Planning & Design,
School of Applied Science, School of Humanities & Social Science,
MS Swaminathan School of Agriculture, School of Media
Communication, School of Mines, School of Pharmacy & Life Sciences,
School of Paramedics and Allied Health Service, Institute of
Knowledge and Societies and PhD courses.
JITM was set up in 1997 as a not-for-profit organisation. Its
trustees Dr Mukti Kanta Mishra and Mr D N Rao took over its
management in fiscal 2007. JITM has an engineering college, which
is a constituent of CUTM. The trust also operates a school
affiliated to the Central Board of School Education (CBSE), two
junior science colleges affiliated to Council of Higher Secondary
Education, Odisha, and Industrial Training Institutes at
Parlakhemundi, Jatni, Rayagada, and Bolangir, approved by the
director, technical education, government of Odisha.
CSREM was set up in Bhubaneswar in 2007. It operates one
engineering college, Centurion Institute of Technology (CIT), which
is a constituent of CUTM. The college offers master of business
administration course, which started in academic year 2009-10.
DEEPA INFRA: CRISIL Maintains 'B+' Debt Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Deepa Infra Projects
Private Limited (DIPL) continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 1.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with DIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DIPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.
Incorporated in 2011 and promoted by Mr Arun Pillai, DIPL is class
1 civil contractor that undertakes projects for Central PWD.
DHANBAD ROCKWOOL: CRISIL Lowers Rating on INR4.5cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Dhanbad
Rockwool Insulation Private Limited (DRIPL) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (ISSUER NOT COOPERATING;
Revised from 'CRISIL A4+ ISSUER
NOT COOPERATING')
Cash Credit 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 1.25 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with DRIPL for obtaining
information through letters and emails dated
November 30, 2019 and April 11, 2020 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DRIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DRIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DRIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Established in 2011 and based in Dhanbad (Jharkhand), DRIPL
manufactures rockwool thermal insulation products such as lightly
resin bonded mattresses, resin bonded slabs, loose mineral wool,
sectional pipe insulation, and mineral wool granules.
DHANVRIDHI COMMERCIAL: CRISIL Keeps 'D' Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dhanvridhi Commercial
Private Limited (DCPL) continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.26 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 3.88 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 4.08 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 4.28 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with DCPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of DCPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
DCPL was incorporated by the Tantia family in Kolkata in 2005. Till
2012, the company traded in materials used in manufacture of
railway wagons/components. It now manufactures railway wagons
through Besco Ltd (foundry division).
DUTTA SUPPLY: CRISIL Lowers Rating on INR3.7cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Dutta Supply
Agency (DSA) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3.0 CRISIL A4 (ISSUER NOT COOPERATING;
Revised from 'CRISIL A4+ ISSUER
NOT COOPERATING')
Cash Credit 3.7 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with DSA for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of DSA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DSA is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of DSA revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.
DSA, a proprietorship firm established in 1991, undertakes
contracts in railway signalling and telecommunication, which
include installation of signalling devices and laying of cables.
Its operations are managed by proprietor Mr Arindam Dutta.
ESHWARI TEXTILE: CRISIL Lowers Rating on INR4.75cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Eshwari
Textile Processing Private Limited (ETPPL) to 'CRISIL B+/Stable
Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 2.50 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 4.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ETPPL for obtaining
information through letters and emails dated November 30, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ETPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ETPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of ETPPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Incorporated in 2005, ETPPL washes, dyes and prints fabric and
garments on a job'work basis. The company is based in Bengaluru,
and promoted by Mr R Ramesh and Mr S Gopal.
EXCEL: CRISIL Maintains B- Debt Ratings in Not Cooperating Category
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Excel continues to be
'CRISIL B-/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .5 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Corporate 4.8 CRISIL B-/Stable (ISSUER NOT
Mortgage Loan COOPERATING)
Foreign Bill 7.5 CRISIL A4 (ISSUER NOT
Discounting COOPERATING)
Letter of Credit 0.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Packing Credit 6 CRISIL A4 (ISSUER NOT
COOPERATING)
Proposed Long Term 0.7 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with Excel for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Excel, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on Excel is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of Excel continues to be 'CRISIL B-/Stable/CRISIL A4
Issuer Not Cooperating'.
Set up in 1989 as a partnership firm by Mr K Natarajan and N
Tamilselvi, Excel manufactures ready-made garments for men, women,
and children. It exports products to the USA and Europe.
FUSION VOICE: CRISIL Keeps B+ on INR12.5cr Loans in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Fusion Voice
Solutions India Private Limited (FIPL) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 3.5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with FIPL for obtaining
information through letters and emails dated December 31, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of FIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on FIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of FIPL continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Set up in 2003 as a proprietorship concern and reconstituted as a
private limited company in 2007, FIPL, based in Vijayawada (Andhra
Pradesh), distributes Nokia mobiles and accessories. Operations are
managed by the promoter, Ms Jogu Prasad.
JCBL LIMITED: Ind-Ra Lowers LT Issuer Rating to 'B', Outlook Stable
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded JCBL Limited's
(JCBL) Long-Term Issuer Rating to 'IND B' from 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR340 mil. Fund-based working capital limit downgraded with
IND B/Stable/IND A4 rating;
-- INR270 mil. (increased from INR230 mil.) Non-fund-based
working capital limit downgraded with IND A4 rating; and
-- INR100 mil. (reduced from INR165 mil.) Term loan due on
February 2027 downgraded with IND B/Stable rating.
The downgrade reflects the instances of overutilization of
fund-based limits and the significant decline in the company's
revenue in FY20. Moreover, Ind-Ra expects further deterioration in
the financial performance in FY21 due to the uncertainty in the
business environment due to the COVID-19-led lockdown, which could
exert further pressure on JCBL's near-term liquidity, and adversely
impact the company's sales and profitability, thereby leading to
deterioration in the credit metrics.
KEY RATING DRIVERS
Liquidity Indicator - Poor: JCBL overused its fund-based facilities
for up to 26 days in the 12 months ended February 2020. The
utilization of the non-fund-based limits was 60% over the same
period. At FYE19, the company had a cash balance of INR3.62 million
(FYE18: INR8.96 million) and a restricted cash balance of INR23.26
million (FYE18: INR21.59 million). Moreover, the company's working
capital cycle remained elongated in FY19 owing to high inventory
days, though it improved to 83 days (FY18: 89 days) due to
increased creditor days. The cash flow from operations rose to
INR100.03 million in FY19 (FY18: INR89.50 million) because of the
improvement in the working capital cycle. JCBL has availed the
Reserve Bank of India-prescribed moratorium. The company does not
have any capital market exposure and relies on banking channels to
meet funding requirements.
Furthermore, JCBL's revenue is likely to have declined to INR1,000
million in FY20 due to a decline in orders (FY19: INR2,120.02
million; FY18: INR2,123.32 million), with the company had recorded
revenue of only INR980 million during 11MFY20. With the sharp
decline in revenue, the scale of operations declined to small from
the medium.
The rating factor in the company's weak credit metrics because of
the average EBITDA margins. The interest coverage deteriorated to
around 1.28x in FY19 (FY18: 1.50x) on account of an increase in
interest expenses. The net leverage deteriorated to 3.71x in FY19
(FY18: 3.47x) because of the decline in the EBITDA margin. The
credit metrics are likely to have weakened further in FY20 due to
the significant decline in revenue and the absolute EBITDA. The
credit metrics are likely to continue to deteriorate in FY21 due to
the uncertainty in the business environment, led by the
COVID-19-related lockdown.
The ratings reflect the volatility in the EBITDA margins because of
fluctuations in raw material costs, which move in line with steel
prices. The margin declined to an average 6.62% in FY19 (FY18:
7.26%; FY17: 10.28; FY16: 9.67 because of an increase in
administrative expenses. The RoCE stood at 12.3% in FY19 (FY18:
13%). The company reported an EBITDA margin of 7% in 11MFY20.
The ratings, however, are supported by the promoter's experience of
three decades in the bus manufacturing business.
RATING SENSITIVITIES
Negative: A decline in the revenue or EBITDA margin, leading to
deterioration in the credit metrics and/or tightening of liquidity,
all on a sustained basis, will be negative for the ratings.
Positive: Improvement in the liquidity position along with growth
in the scale of operations, leading to an improvement in the credit
metrics, will lead to positive rating action.
COMPANY PROFILE
Incorporated in 1989, JCBL is engaged in the bodybuilding and
fabrication of buses and containers for original equipment
manufacturers such as Swaraj Mazda Limited, Eicher Motors Limited,
Tata Motor Limited, Ashok Leyland Limited and state transport
undertakings. The company also provides transport solutions to
prime fleet operators, schools, and other institutions in the
country.
M C ROLLER: CRISIL Keeps B+ on INR12cr Credit in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of M C Roller Flour
Mills Private Limited (MCRFM) continues to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MCRFM for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MCRFM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MCRFM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MCRFM continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
MCRFM, incorporated in 1987, processes wheat into wheat flour,
maida, suji, and rawa. Its plant in hahjahanpur, Uttar Pradesh, has
installed processing capacity of 60 tonne per day.
MODEL TANNERS: Ind-Ra Affirms, Then Withdraws 'BB' LT Issuer Rating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Model Tanners
(India) Private Limited's (MTIPL) Long-Term Issuer Rating at 'IND
BB' with a Stable Outlook and has simultaneously withdrawn the
rating.
The instrument-wise rating actions are:
-- INR600 mil. Fund based working capital limit* affirmed and
withdrawn; and
-- INR100 mil. Non-fund-based working capital limit** affirmed
and withdrawn.
* Affirmed at 'IND BB/Stable/IND A4+' before being withdrawn
** Affirmed at 'IND A4+' before being withdrawn
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017, for credit rating agencies.
COMPANY PROFILE
Incorporated in 1994, MTIPL primarily manufactures upholstery
leather for the furniture and automotive sectors. It is a part of
the Model Group. The group is managed by Mr. Maqsood Alam, Mr.
Marghoob Alam, Mr. Moid Alam, and Mr. Mehtab Alam.
MOMENTUM TECHSYS: Ind-Ra Keeps 'BB+' LT Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Momentum Techsys
Private Limited (PL) Long-Term Issuer Rating of 'IND BB+ (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR125 mil. Non-fund based limits * maintained in non-
cooperating and withdrawn; and
-- INR75 mil. Proposed non-fund based limit** maintained in non-
cooperating and withdrawn.
*Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn.
** Maintained at Provisional 'IND A4+ (ISSUER NOT COOPERATING)'
before being 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.
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017, for credit rating agencies.
COMPANY PROFILE
Momentum Techsys is an IT distribution and services provider
specializing in IT infrastructure development, unified
communication networks, electronic security and surveillance
devices, and audio-visual systems.
NEW STONE: CRISIL Migrates 'B+' Debt Ratings From Non-Cooperating
-----------------------------------------------------------------
Due to inadequate information, CRISIL, in-line with the Securities
and Exchange Board of India guidelines, had migrated the rating of
New Stone Quarry (NSQ) to 'CRISIL B+/Stable Issuer Not
Cooperating'. However, the management has subsequently started
sharing information necessary for carrying out a comprehensive
review of the rating. Consequently, CRISIL is migrating the rating
on the long-term bank facilities of NSQ from 'CRISIL B+/Stable
Issuer Not Cooperating' to 'CRISIL B+/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Proposed Long 3.09 CRISIL B+/Stable (Migrated from
Term Bank Loan 'CRISIL B+/Stable ISSUER NOT
Facility COOPERATING')
Proposed Long 1.49 CRISIL B+/Stable (Migrated from
Term Bank Loan 'CRISIL B+/Stable ISSUER NOT
Facility COOPERATING')
The rating reflects NSQ's modest scale of operations in an
intensely competitive industry, subdued financial risk profile, and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of the partners.
Analytical Approach
Unsecured loans from promoters and family members of INR0.18 crore
as on March 31, 2019, has been treated as debt.
Key Rating Drivers & Detailed Description
Weakness:
* Modest scale of operations in an intensely competitive industry:
Exposure to intense competition has led to subdued scale, as
reflected in revenue of INR5 crore in fiscal 2020, declined from
INR11.25 crore last year. This restricts the firm's bargaining
power with customers and suppliers, and reduces the benefits from
economies of scale. Moreover, sustenance of operations and
continuation of order flow from the civil contractors amidst the
Covid-19 and lockdown, shall remain key rating sensitive factor.
* Large working capital requirement: Gross current assets are
estimated at a significant 300 days as on March 31, 2020 (177 days
a year ago) driven by sizeable inventory estimated at 89 days and
high loans and advances to suppliers. Debtor's cycle being moderate
at 39 days. The overall working capital cycle is expected to remain
at similar levels over the medium term.
* Subdued financial risk profile: Substantial capital withdrawals
led to a low networth of INR2.22 crore as on March 31, 2019.
Gearing and total outside liabilities to adjusted networth ratios
were at 3.26 times and 3.78 times, respectively as on March 31,
2019, estimated at 1.6-1.7 times and 1.9-2 times, respectively as
on March 31, 2020. Debt protection metrics are comfortable, with
estimated interest coverage and net cash accrual to total debt
ratios of 1.6-1.7 time and net cash accruals to total debt (NCATD)
of 0.5-0.7 time in fiscal 2020. The financial risk profile is
expected to improve slightly over the medium term with absence of
any debt funded capex and moderate operating profitability.
Strength:
* Extensive experience of the partners: The partners' experience
of over 15 years in the building material industry, their strong
understanding of local market dynamics, and healthy relations with
customers and suppliers should continue to support the business.
Liquidity Poor
Cash accruals, estimated at INR0.30-0.40 crore for fiscal 2020 and
fiscal 2021 should cover maturing debt of INR0.35 crore annually.
The fund-based bank limits of INR5 crore have been utilised 80-85%
for the past six months through March 2020. Unencumbered cash and
bank balance was INR0.18 crore.
Outlook: Stable
CRISIL believes NSQ will continue to benefit from the extensive
experience of its partners.
Rating Sensitivity factors
Upward factors
* Increase in the scale of operations by 30% and stable operating
margin, leading to higher cash accruals.
* Substantial infusion of capital improving the financial risk
profile.
Downward factors
* Further decline in scale of operations leading to decline in
revenue and profitability margin, hence leading to weak net cash
accrual below INR0.10 crore
* Large capital withdrawal weakening the financial risk profile and
liquidity profile
NSQ, set up in 2003, is a partnership concern of Mr Hafeez
Contractor, Mr Sherryana Contractor, Mr Vallary Contractor, and Mr
Yezdi Contractor. The Rampura (Dahod, Gujarat)-based firm
undertakes stone quarrying with capacity of 250 tonne per day.
NIKS ORGANIC: CRISIL Assigns B+ Rating to INR5.6cr Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Niks Organic (NO).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.6 CRISIL B+/Stable (Assigned)
Term Loan 2.9 CRISIL B+/Stable (Assigned)
The rating reflects modest scale of operation, susceptibility to
volatility in raw material prices and exposure to risks related to
ongoing project. These weaknesses are partially offset by its
extensive industry experience of the partners in the industry and
average financial risk profile.
Analytical Approach
Unsecured loans extended by the promoters have been treated as
neither debt nor equity. This is because the loans are expected to
remain in the business over the medium term.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to fluctuations in raw material price: Cost of
the raw materials' acquired from domestic and international markets
is determined by market forces and industry parameters such as
foreign exchange rate, climatic conditions and demand (both, local
and global). Since procuring the raw material accounts for a bulk
of the production expense, even a slight variation in price can
drastically impact profitability.
* Exposure to risks related to ongoing project: NO is currently
setting up a plant for processing of Psyllium Husk, Spices and
Herbs. NO is scheduled to commence its project in April, 2020.
Demand risk is also expected to be moderate as the industry is
highly fragmented marked by low entry barriers with small capital
and technological requirements. Also, will be exposed to intense
competition from other players in the segment. Timely completion
and successful stabilisation of its operations at the new unit will
remain a key rating sensitivity factor.
Strength:
* Extensive industry experience of the partners: The partners have
extensive experience in agriculture industry of over 25 years. This
has given them an understanding of the dynamics of the market, and
enabled them to establish relationships with suppliers and
customers.
* Average financial risk profile: The financial risk profile will
remain average, with modest Networth of INR4.84 crore and gearing
of 0.45 times as on March 31, 2019. Debt protection metrics are
satisfactory, with interest coverage and net cash accrual to total
debt ratios estimated at 2.36 times and 0.02 time, respectively, in
fiscal 2019. In absence of large debt funded capex, it is expected
to improve over the medium term.
Liquidity Poor
Expected net cash accrual of INR0.90 crore, annually, will be
sufficient to meet debt obligation of INR0.50-0.60 crore, per
annum, over the medium term. The unsecured loans of INR4.71 core
also supports liquidity.
Outlook: Stable
CRISIL believes that NO will continue to benefit from the extensive
experience of the partners over the medium term
Rating Sensitivity factors
Upward factors
* Net cash accrual/repayment obligation of over 1.5 times
* Stabilization of operation and ramp-up in scale in the initial
phase
Downward factors
* Continued high GCA of over 250 days
* Lower than expected revenue and profitability
NO was set up in year 2018, its engage in trading of Spices and
Herbs. NO is currently setting up a plant for processing of
Psyllium Husk, Spices and Herbs. NO is owned and managed by Patel
Sarojben Sureshkumar, Patel Dineshkumar Kantilal, Patel Vinodkumar
Kantilal and Patel Saajan Dineshkumar.
PARANJAPE SCHEMES: CRISIL Keeps 'B' Debt Rating in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings of Paranjape Schemes (Construction) Limited
(PSCL) continues to be 'CRISIL B/FB/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long 7 CRISIL B/Stable (ISSUER NOT
Term Bank Loan COOPERATING)
Facility
Term Loan 30 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PSCL for obtaining
information through letters and emails dated October 15, 2019,
April 3, 2020, and April 07, 2020 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PSCL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PSCL is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.
As per the terms of the debentures, the interest from 1st January,
2017 till 30th September, 2017 had to be paid by PSCL on or before
30th April, 2020. However company had made request to investor for
moratorium of the said interest which was approved by investors
before the due date and now due date for payment of interest is
31st July, 2020. Further the debenture trustee vide letter dated
29th April 2020; also gave consent for same.
Based on the last available information, the ratings of PSCL
continues to be 'CRISIL B/FB/Stable Issuer Not Cooperating'.
PSCL was incorporated in 1987 by brothers Mr Shashank Paranjape and
Mr Shrikant Paranjape as a private limited company, and was
reconstituted as a public limited company in 2005.
PATWARI FORGINGS: CRISIL Reaffirms B+ Rating on INR5cr Loan
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on long-term
bank loan facilities of Patwari Forgings Private Limited (PFPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 5 CRISIL B+/Stable (Reaffirmed)
Overdraft
facility
The rating continues to reflect PFPL's small scale of operations,
large working capital requirement, and modest financial risk
profile. The weaknesses are partially offset by the extensive
experience of the promoters in the steel industry.
Operating performance in fiscal 2021 is likely to be constrained by
the precautionary steps taken by the central and various state
governments towards containment of the Novel Coronavirus
(Covid-19); these measures include temporary closure of
non-critical establishments, and inter-state transportation along
with severe restrictions on travel and visiting areas of mass
gatherings. The supply chain could be temporarily disrupted, and
sales volume may be affected adversely due to global decline in
demand, if the global pandemic prolongs further. Since these
measures are imposed at a broader level and across sectors, they
are likely to significantly impact the business. Ability of the
company to resume operational stability and relief measures given
by the government will be closely monitored. Any disruption in
operations, however, will be supported by the need-based funds
extended by the promoters.
Analytical Approach
CRISIL continues to not consolidate the business and financial risk
profiles of PFPL and Patwari Steel Pvt Ltd as they do not have any
operational and financial linkages.
Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations: Though the company's scale of
operations has improved on a year-on-year basis, it is modest,
which is likely to continue over the medium term. In fiscal 2020,
revenue is estimated to have reduced to INR23.3 crore from INR26.32
crore a year earlier.
* Large working capital requirement: Operations are working
capital intensive, driven by large inventory of 93-137 days in the
3 fiscals through 2019, leading to gross current assets at 120 days
as on March 31, 2019.
* Modest financial risk profile: The financial risk profile is
constrained on account of modest networth of INR3.08 crore as on
March 31, 2019, and high gearing of 1.77 times. Debt protection
metrics were average, as reflected in interest coverage of 1.08
times and net cash accrual to adjusted debt ratio of 0.04 time in
fiscal 2019.
Strength
* Extensive experience of the promoters in the steel industry: The
promoters have more than 3 decades of experience in the industry,
which will support the overall operations of the company over the
medium term.
Liquidity Stretched
The liquidity is stretched on account of modest accrual of INR23-37
lakh in the 3 years through fiscal 2019. Accrual is expected at
INR34-38 lakh per fiscal over the medium term against debt
obligation of around 2.6 lakh in fiscal 2021 and INR0.7 lakh in
fiscal 2022. Bank limit of INR5 crore was utilised at 96% on
average during the 12 months through November 2019. Current ratio
was adequate at 1.27 times as on March 31, 2019.
Outlook: Stable
CRISIL believes PFPL will continue to benefit from its promoters'
extensive industry experience.
Rating sensitivity factors
Upward factors
* Increase in scale of operation by 20%, while sustaining operating
margins at current level.
* Improvement in working capital cycle, leading to better
liquidity
Downward factors
* Weakening of the capital structure, indicated by gearing above 2
times
* Decline in revenue, leading to significant decline in accrual
Incorporated in 1999, PFPL manufactures steel structures and
angles, used in the manufacturing of sheds and windows, at its
manufacturing facility in Patna. Ms Anita Patwari, Mr Sudhir Kr
Patwari, Mr Subhash Kr Patwari and Mr Namit Patwari are promoters,
directors of the company.
PEEJAY AGRO: CRISIL Lowers Rating on INR7.55cr Cash Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on long-term bank facilities of
Peejay Agro Foods Private Limited (PAFPL) to 'CRISIL D' from
'CRISIL B-/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.55 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Long Term Loan 4.85 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The downgrade reflects delays by the company in servicing its debt
obligations from January 2020.
The rating continues to reflect modest scale of operations and
working capital-intensive operations. These rating weaknesses are
partially offset by the extensive experience of promoters in the
agro commodity processing industry.
Analytical Approach
Unsecured loans from the promoters has been treated as NDNE
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: PAFPL's scale of operations is
modest as reflected in estimated revenues of less than INR8 crores
in fiscal 2020. Modest scale of operation prevents the company from
benefit associated with economies of scale and limits the
bargaining power with suppliers and customers.
* Working capital-intensive operations: Gross current assets were
above 350 days over the three years through fiscal 2020 owing to
high inventory and receivable days. Hence, working capital
management will remain a key rating monitorable over the medium
term.
Strength:
* Extensive experience of promoter: The partner, Mr Padma Kumar,
has experience of over 15 years and supports the business profile
with strong linkages with suppliers ensuring regular supply of
quality raw material and established relationship with customers
leading to regular off take.
Liquidity Poor
Liquidity is poor marked by delays in servicing its debt
obligations. Bank limits are fully utilized. Net cash accruals are
expected to be around 0.8 crores against repayment of 0.8-1 crores
over the medium term. Liquidity is expected to remain poor on
account of higher repayment obligation and high working capital
requirement.
Company is currently operating at reduced capacity due to COVID 19
lockdown.
Rating Sensitivity factor
Upward factor
* Timely repayment of debt obligations for 3 months
* Improvement in liquidity profile
Incorporated in 2013, Trissur (Kerala)-based PAFPL is involved in
manufacturing of pickles, jams, papad and various other spices. The
operations of the company are managed by the promoters, Mr. C Padma
Kumar and Mr. Joshi.
RAISONS FIBRES: CRISIL Reaffirms 'B' Ratings on INR6cr Loans
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of Raisons Fibres (RF).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (Reaffirmed)
Term Loan 3 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect RF's presence in an intensely
competitive and highly fragmented textile industry, exposure to
initial stage of operations, and large working capital requirement.
These weaknesses are partially offset by the extensive experience
of the partners, adoption of latest machinery in a steady industry,
and a moderate financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to intense competition: High fragmentation in the
textile industry and the consequent intense competition may
continue to constrain scalability, pricing power and
profitability.
* Susceptibility to risks related to initial stages of operations:
RF was set up in 2018 and commenced operations from July 2019.
Revenue was modest at INR10.60 crore in fiscal 2020 as the firm was
active only for nine months of the fiscal. Revenue is likely to
remain further constrained in the first quarter of fiscal 2021,
driven by the lockdown imposed by the central and state governments
for the containment of the Covid-19 pandemic. Ability of the firm
to ramp-up operations and elevate operating performance will remain
critical.
* Large working capital requirement: The working capital cycle may
remain stretched over the medium term, driven by the sizeable
inventory holding period due to the wide range of products - in
terms of color and quality of yarn; hence, its management will be
closely monitored. Gross current assets ware estimated at 150-170
days as on March 31, 2020.
Strengths
* Extensive experience of the partners: The partners have over 25
years of experience in the textile industry through Abhitex
International, and Raisons trading company Benefits of the
partners' expertise, their strong understanding of local market
dynamics, and healthy relations with suppliers and customers should
continue to support the business.
* Adoption of latest machinery in a steady industry: RF is
currently setting up a new unit for which latest machinery and
technology have been imported from Germany; this should aid in
boosting growth over the medium term.
* Moderate financial risk profile: Gearing is estimated at 1.68
times as on March 31, 2020, as the management has availed of a
long-term debt of INR3 crore and short-term debt of INR3 crore,
against modest networth of INR4.46 crore. Debt protection metrics
have been comfortable, with interest coverage and net cash accrual
to total debt ratios of 2.60 times and 0.20 time, respectively, for
fiscal 2020.
Liquidity Poor
Liquidity is likely to remain constrained by the large working
capital requirement. Hence, bank limit utilisation averaged 80-85%
during the 12 months through January 2020. However, cash accrual is
expected at INR81 lakh in fiscal 2021, sufficient to meet the
yearly debt obligation of INR50 lakh. Current ratio is estimated at
1.5 times as on March 31, 2020.
Outlook: Stable
CRISIL believes RF will continue to benefit from the extensive
experience of the partners.
Rating sensitivity factors
Upward scenarios
* Revenue growth of 40% and steady profitability, leading to cash
accrual of more than INR1 crore
* Efficient working capital management
Downward scenarios
* Steep decline in profitability or a sizeable stretch in the
working capital cycle, leading to interest coverage ratio of less
than 1.7 times
* Any large, debt-funded capital expenditure plan
RF was set up in 2018 as a partnership firm by Mr Suraj Rai, Mr
Dhiraj Rai, and Mr Neeraj Rai; it commenced operations from July
2019. This Karnal (Haryana)-based firm manufactures blended yarn
through recycling of rags, with installed capacity of 12 tonne per
day.
SHIVDHARA SPINNERS: CRISIL Cuts Rating on INR39.5cr Loans to 'D'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shivdhara Spinners and Spinners Private Limited (SSPL) to 'CRISIL
D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 2 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Cash Credit 37.5 CRISIL D (Downgraded from
'CRISIL A4+')
The downgrade reflects delay in servicing the term debt obligations
for the month of February 2020. However SSPL has currently availed
the three months moratorium on its term debt obligations under RBI
circular for COVID 19 regulatory package.
The ratings reflect the SSPL's exposure to competition and
susceptibility to volatility in raw material prices, modest
financial risk profile, and working capital-intensive operations.
These weaknesses are partially offset by extensive experience of
SSPL's promoters in the cotton yarn industry, and the strategic
location of its plant.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delays in term debt servicing: SSPL has delayed its term debt
obligations for the month of February 2020
* Exposure to competition and susceptibility to volatile raw
material prices: Intense competition from local players and
volatility in cotton prices keep the operating margin under
pressure and limit pricing power with suppliers and customers.
Sustenance of profitability will be a key monitorable.
* Modest financial risk profile: The financial risk profile is
constrained by high total outside liabilities to adjusted networth
(TOL/ANW) of 2.87 times and below average debt protection metrics
with interest coverage ratio and net cash accruals to adjusted debt
ratio of 1.25 times and 0.08 time, respectively, in fiscal 2019.
The networth was INR32.35 crore as on March 31, 2019.
* Working capital-intensive operations: Operations are working
capital intensive, with gross current assets of 129 days as on
March 31, 2019, led by inventory days of 70 days and receivables of
58 days.
Strengths:
* Extensive experience of promoters in the textile industry: The
promoters' experience of 15 years in the cotton yarn industry,
their strong grasp over local market dynamics, and healthy
relationship with suppliers and dealers, will continue to support
the business risk profile and help the company add clients and
scale up operations.
* Strategic location of plant: The manufacturing facility is in
the Botad district of Gujarat, and has easy access to key raw
material, contractors, skilled labourers, critical infrastructure,
and transportation facilities.
Liquidity Poor
Liquidity is poor as can be seen in delay in repayments of term
loan obligations for the month of February 2020.
Rating Sensitivity factors
Upward factors
* Track record of timely debt servicing for at least over 90 days
* Improvement in working capital cycle.
Incorporated in 2013 by Mr Ashokbhai Jodhani, Mr Vipulbhai Desai,
Mr Atulbhai Desai, and Mr Alpeshbhai Kakadiya, SSPL manufactures
cotton yarn at its unit in Botad.
SUCHI FASTENERS: Ind-Ra Moves 'B' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Suchi Fasteners
Private Limited's (SFPL) Long-Term Issuer Rating of 'IND B (ISSUER
NOT COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR67.50 mil. Fund based limits* migrated to non-cooperating
and withdrawn;
-- INR1.027 mil. Working capital demand loan** migrated to non-
cooperating and withdrawn; and
-- INR86.5 mil. Non-fund based limit*** migrated to non-
cooperating and withdrawn.
* Migrated to 'IND B (ISSUER NOT COOPERATING) / IND A4 (ISSUER
NOT COOPERATING)' before being withdrawn
** Migrated to 'IND B (ISSUER NOT COOPERATING)' before being
withdrawn.
*** Migrated to 'IND A4 (ISSUER NOT COOPERATING)' before being
withdrawn.
KEY RATING DRIVERS
The ratings have been migrated to the non-cooperating category
because the issuer did not participate in the rating exercise
despite continuous requests and follow-ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the lender. This is
consistent with the Securities and Exchange Board of India's
circular dated March 31, 2017, for credit rating agencies.
COMPANY PROFILE
SFPL manufactures all types of stainless steel washers.
TATA MOTORS: Has No Value Without Luxury Unit, CLSA Says
--------------------------------------------------------
Nupur Acharya at Bloomberg News reports that with the coronavirus
pandemic crippling demand for automobiles worldwide, Tata Motors
Ltd. is worth nothing without its luxury unit Jaguar Land Rover,
according to CLSA Ltd.
Bloomberg relates that the $3.7 billion Indian auto company faces a
significant increase in debt due to the crisis, and its plan to
deleverage may be delayed by four to six quarters, CLSA said. It
has already received a lifeline from parent Tata Sons Pvt Ltd. in
the form of a preferential equity allotment, and the brokerage
thinks further aid could be required.
"JLR is the only driver of its valuation," analyst Amyn Pirani
wrote in a report, downgrading Tata Motors to underperform from
buy, Bloomberg relays. "We believe future equity infusions are also
likely to be utilized for loss funding and hence we do not
attribute any equity value to its India business."
Bloomberg says Indian demand for passenger vehicles was slumping
even before the virus outbreak. With the pandemic forcing a strict
lockdown, the nation's top carmakers couldn't ship a single vehicle
to dealers in April. Tata Motors has been the worst performer on
the S&P BSE Auto Index this year with a decline of over 53%.
According to Bloomberg, the virus has also been a setback for
Jaguar Land Rover, which was beginning to show signs of a
turnaround late last year from the combined negative impact of a
slowdown in China, Brexit and European emissions rules. Tata Sons
had been looking for a strategic partner for the business but
pledged it wouldn't sell JLR.
Bloomberg relates that CLSA said the global luxury unit and Indian
commercial vehicle business should both recover next fiscal year.
While a sale of the India passenger vehicle business and its
financing arm could increase Tata Motors' equity value by INR92
billion (US$1.2 billion), they are "low probability events" in the
current environment, Pirani, as cited by Bloomberg, said.
About Tata Motors
India-based Tata Motors Limited engages in the business of
automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by the
Company. Its operating segments include automotive operations and
all other operations.
As reported in the Troubled Company Reporter-Asia Pacific on April
20, 2020, Fitch Ratings downgraded the Long-Term Issuer Default
Rating of Tata Motors Limited to 'B' from 'BB-'. The Outlook is
Negative.
The downgrade reflects Fitch's significantly lower expectations for
TML's profitability and cash flow over the next few years due to
the effect of the coronavirus pandemic on demand and disruption to
TML's Indian operations as well as to key auto markets globally
that are served through its fully owned UK-based subsidiary, Jaguar
Land Rover Automotive plc (JLR, B+/Rating Watch Negative). Fitch
estimates that TML's consolidated EBITDA generation will drop by
nearly 50% yoy in the financial year ending March 2021 (FY21) and
will remain below FY19 levels in FY22 even with a recovery. Fitch
expects sharp deterioration in TML's free cash generation and
leverage, as the company will have limited flexibility to lower
heavy investment, despite lower profitability, particularly at JLR,
as it needs to bolster its long-term competitiveness in view of
emerging industry trends.
The Negative Outlook reflects risks to TML's financial profile from
a prolonged pandemic that could result in further deterioration in
TML's profitability and exert greater pressure on its liquidity
than it currently envisages. Fitch rates TML on a consolidated
basis.
VIVIN DRUGS: CRISIL Lowers Rating on INR18cr Cash Loan to B+
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Vivin Drugs
And Pharmaceuticals Limited (ELL, Early known as Eytan Labs
Limited) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 18 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Foreign Exchange 0.45 CRISIL A4 (ISSUER NOT
Forward COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Letter of Credit 5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 6.35 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 19.7 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with ELL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ELL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ELL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of ELL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Incorporated in 2011, ELL manufactures bulk drugs mainly in the
anti-retroviral segment. The company is based in Hyderabad
(Telangana). Its day-to-day operations are managed by its promoter,
Mr. Parvathaiah Botta.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Gov't. Drafts $1BB Rescue Plan to Save Carrier
----------------------------------------------------------------
Tassia Sipahutar and Harry Suhartono at Bloomberg News report that
Indonesia is finalizing a $1 billion financial bailout plan for its
flag carrier to help it stave off a debt default after the
coronavirus crisis forced the airline to ground most of its
planes.
The rescue plan includes a proposal to restructure PT Garuda
Indonesia's $500 million sukuk due next month and arrange new
bridge loans of as much as $500 million to meet working capital
requirements for three to six months, Deputy State-Owned
Enterprises Minister Kartika Wirjoatmodjo said, Bloomberg relates.
According to Bloomberg, Wirjoatmodjo said Garuda will table the
sukuk proposal to investors on May 18 that will include an option
to extend the maturity of the securities by three years or a
staggered repayment. Last month, the carrier asked bondholders to
begin talks with its financial adviser, citing an "extremely
challenging environment for airlines" following the virus
outbreak.
Bloomberg relates that the government help in tiding over the
financial crunch should sooth investor concerns about Garuda's
ability to survive the pandemic that's forced airlines worldwide to
seek state bailouts and emergency funding. Garuda, in which
Indonesia's government owns almost 61%, has already cut employee
salaries and renegotiated aircraft lease agreements to tackle a
slump in travel sparked by the pandemic.
"Garuda remains a good company with bright prospects," Bloomberg
quotes Wirjoatmodjo, a former chief executive of state-owned PT
Bank Mandiri, as saying. "Its business will remain robust after the
outbreak ends."
Garuda's $500 million notes due June 3 have tumbled to 42.492 cents
on the dollar from 98.72 cents at the end of January as concerns
mounted over the airline's ability to repay the debt, according to
Bloomberg-compiled prices. Garuda's Chief Executive Officer Irfan
Setiaputra said in a March interview the airline won't default on
the debt and was in talks with several banks about refinancing,
Bloomberg relays.
With the revenue forecast to take a hit from the pandemic, the
national carrier is ramping up its cargo business and utilizing its
fleet to ferry Indonesians stranded overseas, Bloomberg says.
Garuda and its unit PT Citilink Indonesia secured around $384
million in loans and credit lines from state lender PT Bank Rakyat
Indonesia this month to shore up working capital.
Bloomberg says Wirjoatmodjo ruled out a direct capital injection by
the government as an option to address Garuda's financial woes.
"The government needs to seriously reconsider the competitiveness
of Garuda and manage its cost structure post COVID-19 before
considering any capital injection," Bloomberg Bharat Joshi, an
investment director at PT Aberdeen Standard Investments Indonesia,
as saying. "The aviation landscape will continue to evolve and the
glory days of travel won't return anytime soon."
Bloomberg adds that Garuda has also been dealt a blow with Saudi
Arabia banning pilgrimages to Mecca and other holy Islamic cites, a
major revenue source for the carrier. Foreign tourist arrivals to
Indonesian slumped 64% in March to 470,900, the lowest since
February 2009, and may further slide in the coming months with the
tourism industry grinding to halt.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/-- provides
airline services in Indonesia and internationally. It operates
through Flight Operations, Aircraft Maintenance Services, and Other
Operations segments. The company undertakes the scheduled and
non-scheduled commercial air transportation of domestic or
international passengers, cargoes, and mails; and provides aircraft
repair, maintenance, and overhaul services. It also distributes
computerized reservation systems; and provides travel agency,
ticketing, aircraft rental, catering, hotel management, cargo,
information technology, and ground handling services. The company
operates through a fleet of 144 aircraft.
=====================
N E W Z E A L A N D
=====================
TANGO NEW ZEALAND: 5 Burger King Restaurants Set to Close for Good
------------------------------------------------------------------
Esther Taunton at Stuff.co.nz reports that five under-performing
Burger King restaurants in Wellington and Auckland could be closed
for good as receivers seek to strike a "compromise" deal with the
company's creditors
Burger King's New Zealand owners, Tango New Zealand Ltd, went into
receivership on April 14 after the fast food chain took a
significant hit during the coronavirus lockdown, Stuff discloses.
Stuff relates that the receivers, KordaMentha's Grant Graham and
Brendon Gibson, said at the time the aim was to get the business
restarted post-lockdown, and then sell it.
To prepare for the sale, creditors, including restaurants'
landlords, have been asked agree to a compromise deal, which would
see them receive some of the money they were owed, according to
Stuff.
The deadline for the compromise deal to be struck was Tuesday
evening [May 11], the report notes.
Stuff says the restaurants proposed for closure are those in
Courtenay Place and Lambton Quay in Wellington, and Queen St,
Takapuna and WestCity Mall in Auckland.
Documents lodged at the Companies Office on May 6 show NZD50
million is owed to the senior lenders, Stuff discloses.
Stuff adds that the receivers have previously said the lenders are
a consortium of ANZ, ASB and Rabobank.
Stuff says the banks support the compromise deal, and have agreed
to share half of any sale proceeds over NZD30 million if the
company is sold as a going concern.
They have also forgiven some interest payments and provided an
overdraft to assist in the restart of the business, the report
states.
At April 1, the company had other creditors of approximately
NZD11.8 million, plus monthly rents of NZD1.7 million it could not
meet, compromise deal documents said.
Stuff adds that the receivers estimated the business would remain
cashflow-positive until December if the creditors' compromise went
ahead.
=================
S I N G A P O R E
=================
HIN LEONG: Ocean Tankers Unit Seeks Judicial Management
-------------------------------------------------------
Reuters reports that Singaporean shipping firm Ocean Tankers, a
unit of troubled oil trader Hin Leong Trading, has applied to be
placed under the management of a court-appointed supervisor, two
sources with knowledge of the matter said.
Singapore's High Court was due to hold a hearing on an application
by Ocean Tankers on May 12, according to a notice on the Supreme
Court website. The notice did not give further details.
Hin Leong, one of Asia's top oil traders, was placed under judicial
management late last month as it seeks to restructure billions of
dollars of debt, Reuters notes.
Hin Leong owes US$3.8 billion (SGD5.39 billion) to 23 banks,
according to a company presentation to lenders on April 14,
contained in an affidavit in court filings. The affidavit was
reviewed by Reuters but has not been made public.
In the affidavit, Hin Leong founder Lim Oon Kuin, also known as
O.K. Lim, said he had directed the firm not to disclose US$800
million in losses over several years.
Singapore police said in April they had launched an investigation
following news of Hin Leong's losses, Reuters relates.
Reuters says the founder's son, Mr Lim Chee Meng, a director at
Ocean Tankers and Hin Leong, reassured stakeholders in a letter
dated April 15 and seen by Reuters that the shipping company was a
separate entity from Hin Leong and it had not guaranteed its
debts.
Ocean Tankers Pte. Ltd. provides marine transportation services.
The Company offers tanker management, ship-to-ship transfer, and
marine support vessels services.
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.
On April 27, the Company was granted interim judicial management by
the the Singapore High Court. Goh Thien Phong and Chan Kheng Tek
of PricewaterhouseCoopers Advisory Services (PwC) have been
appointed as interim judicial managers.
ZENROCK COMMODITIES: Owes $600MM to Creditors, Court Docs Show
--------------------------------------------------------------
Reuters reports that ZenRock Commodities Trading Pte Ltd, hit by
tumbling oil prices and the coronavirus pandemic, owes more than
$600 million to creditors, the company said in a court filing.
In the application for "moratorium relief", a form of bankruptcy
protection, filed on May 6, the company said it owed at least six
banks a total of $166.1 million and had outstanding balances of
about $449 million in total with at least 10 unsecured creditors,
Reuters relates.
In its application, ZenRock said it ran into financial difficulties
as the oil price collapse and coronavirus disrupted trading just
after it had expanded its sales and back office operations last
year, according to Reuters.
"ZenRock is now in financial difficulties for the following broad
reasons," it said in the application, listing "severe disruption"
to trade caused by the coronavirus, a "steep and sustained decline
in crude oil prices" and a tightening credit market "exacerbated"
by banks' increased caution.
"Partly in consequence of the above, ZenRock is facing difficulties
in collecting accounts receivable of approximately $120.5 million,"
it said in the application, Reuters relays.
According to Reuters, ZenRock's application came after HSBC
Holdings PLC sought to place the oil trading company under judicial
management, where a court appoints an independent manager to run
the affairs of a financially distressed company, four people
familiar with the matter said on May 6.
On May 8, Singapore's High Court appointed such an interim manager
after a virtual hearing, two sources with knowledge of the matter
said.
Reuters was unable to review the documents related to the
appointment.
ZenRock's "moratorium relief" was also lifted during the hearing,
one of the sources said. Such relief automatically takes effect
with an application and lasts for 30 days or until a court hearing,
whichever is earlier, Reuters notes.
Late last month, ZenRock issued a statement to reassure clients
that it was not under financial duress after global oil and fuel
prices slumped, recalls Reuters.
HSBC has alleged that ZenRock engaged in a series of "highly
dishonest transactions" that included using the same oil cargo to
obtain loans from at least two different lenders, according to a
separate affidavit seen by Reuters.
Singapore police raided ZenRock's office on May 8 after HSBC filed
a report, a source with knowledge of the matter said.
Besides HSBC, ZenRock has five other secured creditors including
Natixis Bank, ING Bank, Credit Agricole and Bank of China,
according to the court filing by ZenRock.
Swiss bank Banque de Commerce et de Placements (BCP) is the sixth
creditor, the document showed, Reuters discloses.
According to Reuters, the document also included a list of
ZenRock's top 10 unsecured creditors as of Feb. 29, 2020, for a
total amount close to $449 million.
Reuters says these creditors are:
- Totsa Total Oil Trading SA,
- Petco Trading Labuan Co Ltd,
- PTT PCL's trading companies in Singapore and London,
- Sonangol Finance Ltd,
- BP Singapore Pte Ltd
- Shell International Eastern Trading Company.
- PetroChina International Singapore Pte Ltd, a unit of
PetroChina,
- Daelim Corp, Singapore, and
- China Aviation Oil (Singapore) Corp.
"These trade creditors are unsecured but the obligations are mostly
matched against incoming receivables," ZenRock, as cited by
Reuters, said in the court filing.
BP, Shell and Total declined to comment. The other companies did
not immediately respond to Reuters requests for comment, but four
sources with direct knowledge of the matter said Sonangol, China
Aviation Oil and PTT International no longer had any outstanding
amounts with ZenRock.
About ZenRock Commodities
Singapore-based ZenRock Commodities trades crude, oil products and
petrochemicals. ZenRock has offices in Singapore, Shanghai and
Geneva. The company was founded in Singapore in 2014 by a group of
veteran oil traders, including Xie Chun, formerly from Unipec, and
Tony Lin, formerly Vitol SA's China head.
Zenrock Commodities Trading Pte Ltd has been placed under the
management of a court-appointed supervisor following an application
by HSBC Holdings, the bank told Reuters on May 8.
===============
X X X X X X X X
===============
ASIA: Governments Boost Dollar Borrowing to Fight Coronavirus
-------------------------------------------------------------
Primrose Riordan and Thomas Hale at The Financial Times report that
Asian governments have turbocharged their issuance of dollar bonds
as they seek to fortify their balance sheets and fund relief
efforts during the coronavirus pandemic.
Sovereigns, supranationals and government agencies in the region,
excluding Japan, raised $18.7 billion in dollar bonds in April,
their fastest rate in 10 years, the FT discloses citing Dealogic
data. Asian governments have issued more than $30 billion in dollar
bonds in 2020 so far, double the total in the same period last
year.
The wave of debt issuance has come as the spread of Covid-19 has
rocked economies across the region, straining government finances
and healthcare systems, the FT relates.
According to the FT, the flurry of issuance came after the U.S.
Federal Reserve's decision in March to cut rates to near zero in
response to the health crisis, lowering borrowing costs. With the
yield on U.S. Treasuries close to all-time lows, investors have
also had to look to more exotic corners of the market to generate
returns.
Among the most eye-catching has been the Indonesian government's
move in April to raise $4.3 billion through bonds, including Asia's
first-ever 50-year issuance. Jakarta plans to use the proceeds for
its virus relief efforts, the FT says.
The FT relates that Jan Metzger, Asia-Pacific head of banking,
capital markets and advisory at Citi, who worked on the deal, said
governments had sought to fortify their balance sheets against the
impact of Covid-19. "All governments will be considering actions
that are focused at alleviating the virus."
According to the FT, bankers said borrowers whose debts mature soon
had been approaching the market earlier than previously planned to
roll over their bonds, fearing the economic toll from the virus
could limit their access to capital markets in the future. Dealogic
data show that about $107 billion worth of regional US
dollar-denominated debt matures this year, the FT discloses.
Meanwhile, Asian companies have raised $67 billion in dollar bonds
during the same January to April period - or close to last year's
total — despite the pressure the crisis has put on capital
markets.
The FT relates that Mr. Metzger said companies were worried that
further waves of the virus or "another patch of hugely bad news"
related to the pandemic could hit their ability to raise funds,
encouraging them to come to the market sooner than they would have
otherwise.
Among the most significant deals was a series of bonds from
Malaysian oil and gas company Petronas that pulled in $6 billion
from investors through an issuance of up to 40 years, the FT
notes.
But the wave of borrowing also comes at a time of emerging signs of
financial stress in the region, the report adds.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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Information contained herein is obtained from sources believed
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