/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200703.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 Friday, July 3, 2020, Vol. 23, No. 133 Headlines A U S T R A L I A BARATECH PTY: Second Creditors' Meeting Set for July 10 COUGAR METALS: First Creditors' Meeting Set for July 10 TM LEWIN: First Creditors' Meeting Set for July 13 TRAVELSIM AUSTRALIA: First Creditors' Meeting Set for July 13 VIRGIN AUSTRALIA: Bain Formally Takes Over Carrier C H I N A LUCKIN COFFEE: Winds Up Probe Ahead of Vote on Chairman Removal [*] CHINA: Corporate Bond Defaults Uncover Hidden Blind Spots I N D I A AMBER SPINTEX: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable BLUE DUCK: CRISIL Assigns D Rating to INR8cr Loans DIGI EXPORT: CRISIL Lowers Rating on INR10cr Loan to D FOREST VIEW: CRISIL Assigns D Rating to INR8cr Term Loan GARDEN SILK: Insolvency Resolution Process Case Summary HEMALI INVESTMENT: Ind-Ra Affirms BB+ Rating, Outlook Negative HIRA AUTOMOBILES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating IENERGY WIND: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating INA INDIA: CRISIL Maintains D Debt Ratings in Not Cooperating INDIAN SUGAR: CRISIL Keeps D Debt Ratings in Not Cooperating INDRESHWAR SUGAR: CRISIL Keeps D INR50cr Debt Rating in Not Coop. JAG VIDHYA: CRISIL Maintains D Debt Ratings in Not Cooperating KALIKA ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating KGPS MECHANICAL: CRISIL Keeps D Debt Ratings in Not Cooperating LAXMI MOULDS: CRISIL Maintains D Debt Ratings in Not Cooperating MALAXMI WIND: CRISIL Keeps D INR47.92cr Debt Rating in Not Coop MARKS ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating MARS THERAPEUTICS: CRISIL Keeps D Debt Ratings in Not Cooperating MES INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating METCUT TOOLINGS: CRISIL Keeps D Debt Ratings in Not Cooperating MIJAN IMEX: CRISIL Maintains D Debt Ratings in Not Cooperating MODERN INDIA: CRISIL Maintains D Debt Ratings in Not Cooperating MODERN OVERSEAS: CRISIL Keeps D INR12.5cr Debt Rating in Not Coop. MPS STEEL: CRISIL Maintains D Debt Ratings in Not Cooperating NATWEST ESTATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating NEESARG MOTORS: CRISIL Cuts INR6.25cr Debt Rating to D NOIDA MEDICARE: Insolvency Resolution Process Case Summary ORMA MARBLE: CRISIL Maintains D Debt Ratings in Not Cooperating P G MERCANTILE: CRISIL Keeps D Debt Ratings in Not Cooperating PARAS INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating PRAJWAL PROMOTERS: Ind-Ra Moves B Issuer Rating to Non-Cooperating PRANAV CONSTRUCTION: CRISIL Keeps D Debt Ratings in Not Coop PRO KNITS: CRISIL Maintains D Debt Ratings in Not Cooperating PROPUS INCORPORATED: Ind-Ra Moves BB- Rating to Non-Cooperating PUNJAB SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating RAM KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating RENUKA SILKS: CRISIL Keeps D Debt Ratings in Not Cooperating RICHLOOK CREATIONS: CRISIL Keeps D Debt Ratings in Not Coop SAI PAVANI: Ind-Ra Lowers LT Issuer Rating to D, Outlook Stable SAMYU GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating SANNIDHI FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating SHAKTI BASMATI: CRISIL Keeps D Debt Ratings in Not Cooperating SHREE VENKATESHWARA: CRISIL Keeps D Debt Rating in Not Cooperating SWASTIK ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating VAIBHAVA LAKSHMI: CRISIL Keeps C Debt Ratings in Not Cooperating I N D O N E S I A GEO ENERGY: Fitch Alters LT IDR to CC on Failed Debt Exchange J A P A N TOSHIBA CORPORATION: Moody's Affirms B1 CFR, Outlook Now Stable [*] JAPAN: Coronavirus-Linked Business Bankruptcies Hit 300 S I N G A P O R E HATTEN LAND: Two Subsidiaries Plan Debt Restructuring ZENROCK COMMODITIES: Hearing on HSBC Bid for JM Set for July 13 - - - - - ================= A U S T R A L I A ================= BARATECH PTY: Second Creditors' Meeting Set for July 10 ------------------------------------------------------- A second meeting of creditors in the proceedings of Baratech Pty Ltd has been set for July 10, 2020, at 11:00 a.m. at Training Room 1, Level 1, at 377 Sussex 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 July 9, 2020, at 4:30 p.m. Danny Vrkic and Daniel O'Brien of DV Recovery Management were appointed as administrators of Baratech Pty on June 4, 2020. COUGAR METALS: First Creditors' Meeting Set for July 10 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Cougar Metals NL will be held on July 10, 2020, at 11:00 a.m. at Level 11, 12-14 The Esplanade, in Perth, WA. Bryan Kevin Hughes and Daniel Johannes Bredenkamp of Cougar Metals NL were appointed as administrators of Cougar Metals on June 30, 2020. TM LEWIN: First Creditors' Meeting Set for July 13 -------------------------------------------------- A first meeting of the creditors in the proceedings of T.M. Lewin Australia Pty Ltd will be held on July 13, 2020, at 10:00 a.m. via teleconference. Stewart McCallum, Adam Nikitins and Colby O'Brien of Ernst & Young were appointed as administrators of T.M. Lewin on July 1, 2020. TRAVELSIM AUSTRALIA: First Creditors' Meeting Set for July 13 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Travelsim Australia Pty Ltd will be held on July 13, 2020, at 2:30 p.m. via telephone conference facilities. Jason Walter Bettles of Worrells Solvency & Forensic Accountants was appointed as administrator of Travelsim Australia on July 1, 2020. VIRGIN AUSTRALIA: Bain Formally Takes Over Carrier -------------------------------------------------- Lucas Baird at The Australian Financial Review reports that US private equity giant Bain Capital has formally taken control of Virgin Australia and started paying the distressed airline's bills, as of July 1, with concerns growing among trade unions that the new owner may renege on some of its promises to workers. Neither Bain Capital nor Virgin would comment when contacted by The Australian Financial Review, although conversations between the pair are continuing over precisely what the relaunched operation looks like. And--as predictions circle about Bain Capital cutting up to 5,000 staff--Transport Workers' Union national secretary Michael Kaine feared the buyer could institute a "cut-throat regime". "This sale will have a profound impact on thousands of committed Virgin workers and the travelling public," the report quotes Mr. Kaine as saying. "We need right-minded people at the helm who care about shaping the future of the airline, rather than implementing a cut-throat regime." Worries among the trade unions, which are representing Virgin's 9,000 staff during the voluntary administration procedure, are growing that Bain Capital may not adhere to promises issued to the workforce. "Bain made important workforce commitments prior to its announcement as recommended bidder, and these must be honoured," Mr. Kaine said, AFR relays. According AFR, Bain Capital's bid included commitments to pay all AUD450 million of owed worker entitlements, give staff staying with the business equity in the new airline, and retrain staff facing redundancy. One union source felt Bain and its representatives were softening them up to renege on some of its commitments by saying the situation at Virgin was significantly worse than initially believed, AFR relays. There are additional concerns among the group because of the involvement of ex-Jetstar boss Jayne Hrdlicka, who is likely to take a leadership role at Virgin 2.0. The union source felt Ms. Hrdlicka would likely approach the bargaining table in a disingenuous and narrow-minded manner due to her history at Qantas, which has a history of bad blood with unions and infamously grounded the airline and locked out workers during a 2011 industrial dispute. Ms. Hrdlicka, who is also a former Bain & Company consultant, also did not attend meetings with the unions--at their request--in the week before Bain Capital lodged its final offer for Virgin with the airline's administrator, Deloitte, AFR relates. Meanwhile, discussions continue between Bain Capital and Virgin Australia's management team about the new-look airline, AFR reports. The fleet will likely be simplified to focus purely on the single-aisle Boeing 737 jets, while the number of operational aircraft is expected to be halved to around 70 planes. Bain Capital has issued its support for current chief executive Paul Scurrah and his team, meaning they are likely to keep their jobs. The Virgin Australia branding is also expected to remain, as the Virgin Group looks to take an equity stake in the relaunched airline, adds AFR. ========= C H I N A ========= LUCKIN COFFEE: Winds Up Probe Ahead of Vote on Chairman Removal --------------------------------------------------------------- Reuters reports that Luckin Coffee Inc. said on July 1 it was winding up an internal probe on fake annual sales of about US$300 million as it prepares to vote on a proposal to remove Founder-Chairman Charles Zhengyao Lu on July 2. The move by the troubled Beijing-based coffee chain follows a request by the majority of the directors based on a special committee's finding that the CEO and COO were involved in fabricating sales numbers, Reuters says. Reuters relates that the coffee chain, according to a media report, sold vouchers redeemable for millions of cups of coffee to companies that had ties to Lu, helping it record a sharp rise in sales. According to Reuters, Luckin said the committee found that 2019 sales were inflated by CNY2.12 billion ($300.1 million), and costs and expenses by CNY1.34 billion ($189.7 million). Fortunes of Luckin, which directly competes with U.S. coffeehouse Starbucks, have nosedived since the probe was disclosed in April, ending up with the Nasdaq suspending the trading in its shares on June 29, Reuters notes. Reuters says the probe found funds "were funneled to the company through a number of third parties associated with the company employees and/or related parties." Mr. Lu, who is the controlling shareholder of Luckin, is also the founder of auto-rental firm CAR Inc and Chinese ride-hailing firm Ucar Inc. During the investigation, Luckin sacked its CEO and COO, both executives who had previously held top positions at Lu's other firms, Reuters states. According to Reuters, the company said 15 employees are facing disciplinary actions and 12 others who participated in the transactions would be terminated. Luckin is also in the process of ending ties with all third parties involved in the fabricated transactions, it said, without revealing any names, adds Reuters. About Luckin Coffee Based in China, Luckin Coffee Inc. (NASDAQ: LK) -- https://www.luckincoffee.com/ --- has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyone's everyday life, starting with coffee. As reported in the Troubled Company Reporter-Asia Pacific on April 7, 2020, China Daily said that Luckin Coffee Inc, the so-called rival to Starbucks in China, has exposed itself to the risks of delisting and even bankruptcy due to severe fabrication of sales data, experts said. China Daily related that the Nasdaq-listed Chinese coffee chain saw its share price crash more than 75 percent to $6.40 on April 2 after the company disclosed that its earnings results were substantially inflated. It dropped nearly 15 percent more in the first two hours of trading on April 3. Liu Jian, chief operating officer and a director of the company, and several employees reporting to him, had engaged in misconduct, including fabricating transactions, a company statement said on April 2. The aggregate sales associated with fabricated transactions amount to around CNY2.2 billion (US$310 million) during the April to December period last year, according to Luckin's preliminary internal investigation, the statement said. [*] CHINA: Corporate Bond Defaults Uncover Hidden Blind Spots ------------------------------------------------------------- Bloomberg News reports that China's policy makers have been walking a tightrope between countering the economic damage caused by the Covid-19 crisis and fueling another debt bubble from the latest spending spree. Since the first onshore bond default in 2014, there have been 395 onshore delinquencies. Of that, 31.9% of the bonds that failed to repay debts were issued in 2016, a boom year for onshore companies raising funds when yields fell as low as 3.49% prior to deleveraging efforts, Bloomberg relates. Bloomberg says President Xi Jinping's deleveraging campaign in 2016 in a bid to curb risks in the nation's financial markets led to a crackdown on shadow banking and tighter rules on asset management. As a result, firms had a tougher time raising funds to repay existing debt, spurring consecutive record bond defaults in 2018 and 2019. That prompted the government later to seek ways to ease the liquidity crunch. Bonds that defaulted less than three years after issuance formed the bulk or about 80% of the delinquencies, while 109 notes failed to make payment within one year, Bloomberg discloses. That aggravates the default risk when the debtor is unwilling to repay the debts due, even though it has cash flows. Since the introduction of new corporate defaulted bond recovery guidelines in December, at least a dozen companies have sought to ease or delay imminent debt repayments by issuance rollover, repayment deadline extension, early redemptions cancellation, and over-the-counter repayment, according to Bloomberg. Earlier this year, Beijing Sound Environmental Engineering Co. became the first in onshore China to complete an exchange offer, but failed to make part of a bond principal repayment due to tight liquidity, Bloomberg recalls. Bloomberg says China's central bank published new rules on July 1 aimed to improve the mechanism on the disposal of corporate credit bond delinquencies. Bloomberg relates that these new guidelines clarify the role played by bond trustees and meetings with creditors, and seek to making the process more market-oriented and transparent, including the trading of defaulted bonds on qualified platforms, supporting diversified channels, the use of credit derivatives and more information disclosures required. Energy companies accounted for almost half of 2018 onshore corporate bond defaults, dominated by Shanxi-based coal miner Wintime Energy, Bloomberg notes. Basic materials and consumer sectors were the top two defaulters in 2019, while technology companies leads the delinquencies so far this year. Comparably, the real estate sector has no share of default action through June this year, with developers having a weighting of 5.2% and 10.3% respectively in 2018 and 2019. "This is likely the result of a very favorable funding environment and a more controlled pace of expansion for developers. Moreover, some developers may have delayed their property deliveries, as allowed by local governments, thus limiting working capital outflows," Bloomberg quotes Zhou Chuanyi, a credit analyst at Lucror Analytics in Singapore, as saying. Beijing ranks the first among all the provinces with total defaults of CNY75.3 billion since 2014, followed by Shanghai and Zhejiang. Xinjiang, Tibet, Shaanxi, Jiangxi and Guizhou are the bright spots for investors, maintaining a clean sheet of repayment capability, Bloomberg says. Similar to the onshore market, energy firms dominated offshore delinquencies in 2018 with a share of 66.8%, mainly coming from defaults of $1.8 billion by China Energy Reserve & Chemicals Group Co. Distribution and wholesale sectors accounted for 32.3% of the offshore defaults in the subsequent year, driven by Tewoo Group's distressed exchange. Since the start of the year, Peking University Founder Group Corp., the troubled business arm of a top Chinese university, has contributed 35% of the total offshore defaults, pushing technology industry to top all sectors, Bloomberg notes. Bloomberg adds that Tewoo Group Co. and Qinghai Provincial Investment Group Co. became the two biggest dollar bond defaulters among the nation's state-owned companies in two decades. Founder Group, with vague and questionable support from the state, has joined the list lately. ========= I N D I A ========= AMBER SPINTEX: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Amber Spintex Private Limited's (ASPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR840.2 mil. (reduced from INR932.1 mil.) Term loan due on August-2026 affirmed with IND BB+/Stable rating; -- INR250.00 mil. Fund-based limit affirmed with IND BB+ / Stable / IND A4+ rating; and -- INR52.50 mil. Non-fund-based limit affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects ASPL's continued modest EBITDA margins that reduced to 15.2%, according to the provisional financials for FY20 (FY19: 15.9%, FY18: 15.0%). The margins fell in FY20 due to an increase in the cost of the raw material consumed, higher direct manufacturing expenses, price competition and a fall in the realization. The return on capital employed was 9.6% in FY20 (FY19: 8.0%). However, subsidies in terms of interest, Technology Upgradation Fund Scheme and electricity continue to add comfort to the margins. However, without considering other operating income (majorly subsidies income), the EBITDA margins were 11.12% in FY20 (FY19: 11.51%, FY18: 11.12%). Ind-Ra expects EBITDA margin to fall in FY21 on a continuous increase in price competition and a rise in the operating expenses amid the COVID-19 led lockdown. Liquidity Indicator - Stretched: The company's average maximum utilization of its fund-based facilities was 92.5% and its non-fund-based facilities were fully utilized over the 12 months ended May 2020. The cash and cash equivalent remained low at INR17 million in FY20 (FY19: INR3.4 million). In FY20, the net cash conversion cycle remained long and almost unchanged year-on-year at 73 days on account of high inventory days as raw material (cotton) is procured in bulk when available at cheaper price and due to delayed offtake by customers. The net cash conversion cycle deteriorated to 75 days in FY19 (FY18: 51 days) on account of an increase in the inventory days to 97 (72). The cash flow from operations improved to INR83 million in FY20 (FY19: INR43 million) on account of an improvement in the working capital. ASPL's free cash flow also turned positive to INR81 million in FY20 (FY19: negative INR741 million) due to the absence of any major debt-led capex. The ratings factor in ASPL's moderate customer concentration risk, as the top three customers contributed around 44% to its FY20 revenue. The company's credit metrics remained moderate despite improving in FY20 with the interest coverage (operating EBITDA/gross interest expense) coming in at 2.7x (FY19: 2.5x) and net leverage (adjusted net debt/operating EBITDAR) at 3.4x (4.9x). In FY20, the interest coverage improved marginally on account of an increase in the absolute EBITDA to INR362 million (FY19: INR268 million) and the net leverage improved on account of a reduction in the total debt due to a scheduled repayment of term loans. However, the net leverage, excluding unsecured loans from directors, was 2.7x in FY20 (FY19: 4.2x). In FY19, ASPL incurred capex of INR784 million out of which INR700 million was funded by a term loan and remaining was internal accrual. As per the management, ASPL has a capex plan of INR140 million during FY21-FY22, out of which INR110 million (70% bank term loans and 30% internal accruals) will be incurred in FY21 and INR30 million in FY22 (70% bank term loan and 30% internal accruals). The capex in FY21 will be INR70 million for a new solar power plant of 2MW and INR40 million for purchase of new equipment to upgrade machines. The capex in FY22 will be for an additional 2MW solar power plant. Ind-Ra thus expects the credit metrics to remain moderate. The ratings however continue to be supported by ASPL's large scale of operations. The revenue grew 42.0% yoy to INR2,388 million in FY20 (FY18: INR1,241 million) due to an increase in the utilization of the company's installed capacity to 11,200mtpa from 6,000mtpa. The new unit's actual production started from September 2018 and FY20 was its first full year of operations. ASPL has orders worth around INR200 million in hand for the month of July 2020, which as per the management will be executed by month end. The revenue achieved by ASPL in April 2020 and May 2020 was low at around INR40 million and INR85 million, respectively, due to the nation-wide lockdown. However as per the management, during the lockdown, their production was ongoing, but they were not able to book sales, which are now ready for dispatch. As of March 31, 2019, the total net worth of directors was INR637.3 million. Ind-Ra expects ASPL's revenue in FY21 to be lower than FY20's due to the negative impact of the lockdown on business growth. The ratings also remain supported by the company's promoter's experience of more than a decade in the textile industry. RATING SENSITIVITIES Positive: A sustained improvement in the overall business profile and the net leverage reducing below 3.0x on a sustained basis will be positive for the ratings. Negative: Any deterioration in the overall business profile or credit metrics will be negative for the ratings. COMPANY PROFILE Incorporated in October 2015, ASPL manufactures cotton yarn with an installed capacity of 11,200 metric tons per annum and a total installation of 46,000 spindles. It has two manufacturing units in Vododara near Por village (Gujarat). BLUE DUCK: CRISIL Assigns D Rating to INR8cr Loans -------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long term bank facilities of Blue Duck Textiles Private Limited (BDTPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Assigned) Term Loan 3 CRISIL D (Assigned) The rating reflects BDTPL's presence in a highly fragmented industry with limited size, and working capital-intensive operations. These weaknesses are partially offset by the industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses: * Delay in servicing of debt: The company has delayed repayment on its term debt for the past 1 year on account of poor liquidity. * Presence in a highly fragmented industry with limited size: The textile industry is highly fragmented and competitive, with a large number of unorganised players in the market. Such high fragmentation limits the pricing flexibility and bargaining power of the players. Also, the threat from large integrated players in the form of capacity additions limits the growth. The industry is also exposed to the risk of low entry barriers. The small initial investment and low complexity of operations have resulted in existence of innumerable entities, much smaller in size, leading to significant fragmentation. * Working capital-intensive operations: Gross current assets (GCAs) were high at 317 days as on March 31, 2019. Its large working capital requirement arises from high receivables and inventory levels due to the need to extend large credit period to its customers and also maintain high work-in-progress on account of the nature of business. Strength: * Extensive industry experience of the promoters: The promoters have an experience of over 10 years in the textile processing industry. This has given them an understanding of the dynamics of the market, and enabled them to establish strong relationships with suppliers and customers. Liquidity Poor Poor liquidity has caused delay in servicing the term debt, and increased dependence on the bank limit. Bank limit utilisation was high at 89% over the 12 months through September 2019. Current ratio was low at 0.98 times as on March 31, 2019. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for at least 90 days * Improvement in liquidity BDTPL was incorporated in 2013 and is owned and managed by Shantanu Kaul and Gitanjali Kaul. The company prints fabrics and other related cloth material. Its manufacturing facility is located in Uttar Pradesh. DIGI EXPORT: CRISIL Lowers Rating on INR10cr Loan to D ------------------------------------------------------ CRISIL has revised the ratings on certain bank facilities of Digi Export Venture Private Limited (DEVPL; a part of the Five Core group), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 10 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Packing Credit 6 CRISIL D (ISSUER NOT in Foreign Currency COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Proposed Fund- 5 CRISIL D (ISSUER NOT Based Bank Limits COOPERATING; Downgraded from 'CRISIL C ISSUER NOT COOPERATING') CRISIL has been consistently following up with DEVPL for obtaining information through letters and emails dated April 29, 2019, December 31, 2019 and June 17, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component'. Detailed Rationale The rating reflects instances of delay in timely repayment of debt. Further, despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of the company. This restricts CRISIL's ability to take a forward-looking view on the credit quality. CRISIL believes information available is consistent with 'Scenario 1' outlined in the Framework for Assessing Consistency of Information with 'CRISIL BB' rating category or lower'. Therefore, on account of inadequate information, lack of management cooperation, and delays in timely repayment of debt, CRISIL has downgraded its ratings on the bank facilities of DEVPL to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL C/CRISIL A4 Issuer Not Cooperating' Analytical Approach For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Five Core Electronics Ltd (FCEL), EMS & Exports (EMS), Indian Acoustics Pvt Ltd (IAPL), Visual and Acoustics Corporation LLP (Visual), DEVPL, Happy Acoustics Pvt Ltd (Happy), 5Core, and Neha Exports (Neha). This is because all these entities, collectively referred to as the Five Core group, have common management, brand, customers, suppliers, and strong operational synergies. Furthermore, 5Core is a wholly owned subsidiary of FCEL. DEVPL is a part of the Five Core group that manufactures electronic equipment, including public address systems, speakers, amplifiers, microphones, woofers; and electrical accessories under the 5 Core brand. The group exports products to 56 countries. Mr. Amarjit Kalra and his family manage the operations. Incorporated in 2002, FCEL is listed on the National Stock Exchange Emerge platform since May 2018 and has manufacturing units in Delhi and Bhiwadi (Rajasthan). Set up in 2010, 2011, and 2012, IAPL, Digi, and Happy are private-limited companies with units in Noida, Bhiwadi, and Delhi, respectively. 5Core was set up in 2012 and has a unit in Bhiwadi. Status of non cooperation with previous CRA DEVPL has not co-operated with Credit Analysis & Research Ltd which has marked it as non-cooperative via rationale dated June 15, 2020, The reason provided by Credit Analysis & Research Ltd is non-furnishing of information by DEVPL. FOREST VIEW: CRISIL Assigns D Rating to INR8cr Term Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facility of Forest View Resort (FVR). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 8 CRISIL D (Assigned) The rating reflects FVR's poor liquidity, geographic concentration in revenue profile, modest scale of operations and weak financial risk profile. These weaknesses are partially offset by the favorable location of the resort, which gives FVR an edge over its competitors. Key Rating Drivers & Detailed Description * Delay in servicing of debt: The firm has delayed repayment of principal towards its term debt for the past five months through February, 2020, owing to its poor liquidity. Weaknesses * Geographic concentration in revenue profile: The entity operates only a resort in Himachal Pradesh Shimla; any natural calamities and disasters will impact the business adversely. * Modest scale of operations: FVRs business risk profile is constrained by its modest scale of operations in the intensely competitive Hotels & Resorts industry. The firm booked a revenue of only INR1.34 crore in fiscal 2019. FVRs modest scale of operations will continue to limit its operating flexibility over the medium term. * Weak financial risk profile: FVR has weak financial risk profile marked by high total outside liabilities to tangible networth (TOL/TNW) ratio of 38.72 times as on March 31, 2019. Debt protection metrics are also weak as reflected in very low interest coverage and net cash accrual to total debt (NCATD) ratios of 1.02 times and 0.00 times respectively for fiscal 2019. Strength * Benefits from favorable location: The firm has a resort, De Exotica Crest Resort and Spa, at Theoug. The resort has 16 luxury rooms, a banquet hall and bar, restaurant facilities. The resort offers sports facilities like Pool Table, Snooker Table, Mini Golf, Swings, Archery, Sea-Saw, Mountain Bikes, Motor Bike among others. The resort is located close to Shimla which is a key tourist destination in the country. The firm is expected to continuously benefit from its location. Also, the firm is in the process of expansion of its resort facilities which shall enable it to source more customers. Liquidity Poor Poor liquidity has caused delay in servicing the term debt, and increased dependence on bank limit. Current ratio stood at 2.53 times as on March 31, 2019. Rating Sensitivity Factors Upward Factor * Track record of timely debt servicing for at least 90 days * Improvement in liquidity. FVR is a proprietorship concern of Mr. Deepanshu Gautam. The firm has a resort, De Exotica Crest Resort and Spa, at Theoug, 28 kilometre from Shimla. The resort has 16 luxury rooms, a banquet hall and bar, restaurant facilities. The resort offer sports facilities like Pool Table, Snooker Table, Mini Golf, Swings, Archery, Sea-Saw, Mountain Bikes, Motor Bike among others. The resort is located close to Shimla which is a key tourist destination in the country. GARDEN SILK: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Garden Silk Mills Limited Tulsi Krupa Arcade, 1st Floor Near Aai Mata Chowk Puna-Kumbharia Road Dumbhal, Surat 395010 Gujarat Insolvency Commencement Date: June 24, 2020 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: December 20, 2020 (180 days from commencement) Insolvency professional: Kuresh Hatim Khambati Interim Resolution Professional: Kuresh Hatim Khambati GT Restructuring Services LLP Kaledonia, 1st Floor, C Wing Opposite J & J Office Sahar Road, Andheri East Mumbai 400069 Maharashtra E-mail: kuresh.khambati.ip@outlook.com - and - 16th Floor, Tower II Indiabulls Finance Centre Senapati Bapat Marg Fitwala Rd, Lower Parel West Mumbai 400013 Maharashtra E-mail: rp.gardensilk@in.gt.com Last date for submission of claims: July 8, 2020 HEMALI INVESTMENT: Ind-Ra Affirms BB+ Rating, Outlook Negative -------------------------------------------------------------- India Rating and Research (Ind-Ra) has revised Hemali Investment & Finance Private Limited's (HIFPL) Outlook to Negative from Stable while affirming its Long-Term Issuer Rating at 'IND BB+.' The instrument-wise rating action is: -- INR650 mil. Term loan due on March 2022 affirmed; Outlook revised to Negative from Stable with IND BB+/Negative rating. The Outlook revision reflects the ongoing slowdown in the real estate market, exacerbated by the outbreak of the COVID-19 pandemic and the subsequent lockdown, which Ind-Ra expects could lead to a decline in sales volumes for HIFPL in FY21. KEY RATING DRIVERS The affirmation reflects HIFPL's continued saleability risk and moderate funding risk. As of December 2019, the company had booked 43 units (around 49% of 88 units) in Casa Emerald located in Mazgaon (Mumbai). The management expects to book the remaining units before end-1HFY23. The company sold the units at an average realization of INR17,000-20,000 per square feet and expects the same for FY21. HIFPL has undertaken a redevelopment 40-storey, 85-flat residential project (Casa Emerald) with a saleable area 116,273 square feet and a rehab building (Bhavya Dharsan). The total project cost of INR1,767 million is being funded by a debt of INR650 million, a promoter contribution of INR241 million, and remaining by customer advances. The project is scheduled to be completed by March 2022. Liquidity Indicator - Stretched: The company had availed a bank debt of INR580 million as of May 2020, and a moratorium for six months as prescribed by the Reserve Bank of India. The company has a repayment obligation of INR220 million during FY21. Also, it has created an INR12.8 million debt service reserve account which is equivalent to two months of debt service obligations. The repayment is routed through an escrow mechanism which gives HIFPL access to all the sales receipts of this project. However, the ratings are constrained by the likely cash-flow mismatch risks if unit sales are lower than Ind-Ra's expectations of three to five units per quarter, as customer advances are the major source of funds. The ratings, however, are supported by the execution status of the project. HIFPL has completed the construction of the rehab tower Bhavya Dharsan and an occupation certificate has already been obtained for the same. As of December 2019, the company had completed around 74% of its construction in Casa Emerald and incurred INR1,383 million out of the total project cost INR1,763 million. The company expects to complete its construction by March 2022. The ratings, however, continue to be supported by the company's promoters' vast experience of over 16 years in executing real estate projects in Mumbai. The company also benefits the project's strategic location in Mumbai, as all civic amenities are within a 1km radius; the nearest railway station is at 3.3km, and the international airport is at 16km. RATING SENSITIVITIES Negative: Lower-than-expected sales volume, lower realization from bookings, or significant time or cost overruns could result in a negative rating action. Outlook Revision to Stable: Successful project completion, increase in sales velocity, and a significant increase in sales realization, leading to strong cash flow visibility, could lead to a Stable Outlook. COMPANY PROFILE Incorporated in 1981 managed by Rupa H Jain, HIFPL executes residential real estate projects in the Mumbai region. HIRA AUTOMOBILES: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Hira Automobiles Ltd's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR400 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 12, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1989, Hira Automobiles started its operations as a Maruti Suzuki car dealer with one showroom and a workshop in Patiala. The company has dealerships at nine locations in Punjab: Patiala, Muktsar, Rajpura, Nabha, Malout, Devigarh, Gidderbaha, Bhadson, and Samana. Besides selling cars and related accessories, the company provides financing and insurance solutions for the same. IENERGY WIND: Ind-Ra Keeps D Bank Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained iEnergy Wind Farms (Theni) Private Limited's bank loans in the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR680 mil. Senior project bank loans (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR25 mil. Working capital loans (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 21, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE iEnergy Wind Farms (Theni) is sponsored by Indian Energy Ltd. through intermediate holding companies. It has been operating a 16.5MW wind farm in Theni, Tamil Nadu, since August 2010. INA INDIA: CRISIL Maintains D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of INA India Limited (INA) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 10 CRISIL D (ISSUER NOT COOPERATING) Proposed Fund- Based Bank Limits 12.5 CRISIL D (ISSUER NOT COOPERATING) Term Loan 7.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with INA for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of INA, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on INA is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of INA continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. INA was incorporated in 1997, by promoter, Mr. Neeraj Chhabra and his family. The Bengaluru-based company manufactures methanol-based organic chemicals, and formaldehyde and its derivative, amino resin. INDIAN SUGAR: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Indian Sugar Manufacturing Company Limited (ISMCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 29.21 CRISIL D (ISSUER NOT COOPERATING) Term Loan 43.79 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ISMCL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ISMCL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ISMCL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ISMCL continues to be 'CRISIL D Issuer Not Cooperating'. ISMCL was set up in 2000 by Dr. Veerana Pattar and his colleagues. In January 2010, the company commissioned a sugar plant and a bagasse-based cogeneration power plant in Bijapur (Karnataka). INDRESHWAR SUGAR: CRISIL Keeps D INR50cr Debt Rating in Not Coop. ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Indreshwar Sugar Mills Limited (ISML) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Rupee Term Loan 50 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ISML for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ISML, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ISML is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ISML continues to be 'CRISIL D Issuer Not Cooperating'. ISML was established in 2010 by Pune (Maharashtra)-based Patil family and commenced operations in November 2011. The company manufactures sugar, with cane-crushing capacity of 2500 tonnes per day. It also generates power through a 12-megawatt co-generation plant. JAG VIDHYA: CRISIL Maintains D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Jag Vidhya and Sons Resorts and Hotels Llp (JVS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 1.0 CRISIL D (ISSUER NOT COOPERATING) Term Loan 12.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with JVS for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of JVS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on JVS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of JVS continues to be 'CRISIL D Issuer Not Cooperating'. JVS, established in January 2014, is promoted and managed by Mr. Babjyot Singh Khanduja and his brother Mr. Gurpreet Singh Khanduja. In February 2014, the firm acquired a hotel property in Nagpur, Maharashtra, rebranded it as Heritage Embassy, and commenced operations in August 14. A three-star property, the hotel provides boarding and lodging facilities, and has a restaurant-cum-bar, a banquet hall, and an open air lawn. KALIKA ENTERPRISE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Kalika Enterprise (KE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.5 CRISIL D (ISSUER NOT COOPERATING) Funded Interest Term Loan 2.0 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KE for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KE is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of KE continues to be 'CRISIL D Issuer Not Cooperating'. KE was set up as a partnership firm in 1997. The firm undertook trading of coal and coke in Durgapur. Currently, the business is currently not operational, due to unavailability of coal and coke at a viable price. KGPS MECHANICAL: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of KGPS Mechanical Private Limited (KGPS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 5.24 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 2.26 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KGPS for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KGPS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on KGPS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of KGPS continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Gujarat based, KGPS undertakes mechanical fabrication work for tanks, structures, and piping, and material handling for industries such as petroleum and chemicals, cement, and fast moving consumer goods (FMCG). KGPS is promoted by Mr. Subramanian Pachat and Mr. Santhosh Pachat. LAXMI MOULDS: CRISIL Maintains D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Laxmi Moulds Industries Private Limited (LMI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Buyer's Credit 3 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 15.06 CRISIL D (ISSUER NOT COOPERATING) Term Loan .94 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with LMI for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of LMI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LMI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of LMI continues to be 'CRISIL D Issuer Not Cooperating'. LMI was set up as a proprietorship concern, Laxmi Moulds Industries, in 1981 by Mr. Nobukumar Manna. The firm's operations were transferred to LMI on April 1, 2011. LMI manufactures tyre moulds for motorcycles, trucks, tractors, and buses. Its manufacturing facility is in Bhayander, Maharashtra. Operations are managed by Mr. Nobukumar Manna and his son Mr. Shankar Manna. MALAXMI WIND: CRISIL Keeps D INR47.92cr Debt Rating in Not Coop --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Malaxmi Wind Power (MWP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 47.92 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MWP for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MWP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MWP is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MWP continues to be 'CRISIL D Issuer Not Cooperating'. MWP was set up as a proprietorship firm in 2010 by Mr. Y Harish Chandra Prasad. The firm operates two windmills - an 8.4 megawatt (MW) windmill in Jaisalmer (Rajasthan) and a 2.1 MW windmill in Bellary (Karnataka). MWP has signed a 20 year PPA with JVVNL for the Jaisalmer windmill, and with GESCOM for the Bellary windmill. MARKS ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Marks Enterprises Private Limited (MEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 7.75 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MEPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MEPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MEPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. MEPL, incorporated in 2011 and promoted by Mr. Somnath Harjai, trades in yarn and metal (such as aluminium scrap, ingots, and billets). MARS THERAPEUTICS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Mars Therapeutics and Chemicals Limited (MTCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 5.75 CRISIL D (ISSUER NOT COOPERATING) Funded Interest .55 CRISIL D (ISSUER NOT COOPERATING) Term Loan Proposed Long .20 CRISIL D (ISSUER NOT COOPERATING) Term Bank Loan Facility Working Capital 5.00 CRISIL D (ISSUER NOT COOPERATING) Term Loan CRISIL has been consistently following up with MTCL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MTCL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MTCL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MTCL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. MTCL was originally set up as a private limited company by Mr. P Appa Rao and family in 1993. It manufactures pharmaceutical formulations for the domestic market at its facility in Secunderabad, Telangana. MES INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of MES International School - Pattambi (MES) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.4 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 10.0 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MES for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MES, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MES is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MES continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1978, MES International School- Pattambi (MES) runs a CBSE affiliated school from Jr. Montessori to 12th standard in Pattambi, Kerala. It is run under Muslim Education Society Calicut and Dr. Abboobacker is the chairman of the school. METCUT TOOLINGS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Metcut Toolings Private Limited (MTPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 0.6 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 9.45 CRISIL D (ISSUER NOT COOPERATING) Working Capital Term Loan 2.9 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MTPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MTPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MTPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MTPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 1989, MTPL manufactures carbide cutting tools that are primarily used in the automotive industry. The company is promoted by Mr. Kushal J Shetty. MIJAN IMEX: CRISIL Maintains D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Mijan Imex International Private Limited (MIIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL D (ISSUER NOT COOPERATING) Term Loan 4.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MIIPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MIIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MIIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MIIPL continues to be 'CRISIL D Issuer Not Cooperating'. MIIPL, incorporated in 2006 as a proprietorship concern by Mr. Masiar Atiar Rahaman, was reconstituted as a private-limited company in 2011. The company trades in agro commodities, both in the domestic and export markets. MODERN INDIA: CRISIL Maintains D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Modern India Con-Cast Limited (Modern; part of the Modern India group) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10.42 CRISIL D (ISSUER NOT COOPERATING) Funded Interest Term Loan 35.33 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 141.36 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 12.07 CRISIL D (ISSUER NOT COOPERATING) Term Loan 28.24 CRISIL D (ISSUER NOT COOPERATING) Working Capital Term Loan 79.58 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Modern for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Modern, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Modern is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of Modern continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Modern and Gayson and Co Pvt Ltd (Gayson). This is because the two companies, together referred to as the Modern India group, have strong operational and financial linkages in terms of intragroup sales and financial support from Gayson to Modern. The Modern India group was set up by Mr. Bhupinder Singh Saini and Mr. Bakhshish Singh Dhanjal. Modern, incorporated in 1987, manufactures ferroalloys, mostly silico-manganese and ferromanganese. Gayson, incorporated in 1963 and acquired by the group in 1981, trades in ferroalloys and rolling-mill products. MODERN OVERSEAS: CRISIL Keeps D INR12.5cr Debt Rating in Not Coop. ------------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Modern Overseas Private Limited (MOPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with MOPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MOPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MOPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MOPL continues to be 'CRISIL D Issuer Not Cooperating'. MOPL trades in buffaloes, and is promoted by the Qureshi family, which has over three decades' experience in the industry. Operations are managed by Mr. Naeem Qureshi and Mr. Saleem Qureshi. MPS STEEL: CRISIL Maintains D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of M.P.S. Steel Castings Private Limited (MPS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 23 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 8 CRISIL D (ISSUER NOT COOPERATING) Proposed Long 47.01 CRISIL D (ISSUER NOT COOPERATING) Term Bank Loan Facility Working Capital 25 CRISIL D (ISSUER NOT COOPERATING) Term Loan CRISIL has been consistently following up with MPS for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of MPS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on MPS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of MPS continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. MPS was set up in in 1996 to manufacture sponge iron and mild-steel ingots. Currently there are no commercial operations in MPS. NATWEST ESTATES: CRISIL Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Natwest Estates Private Limited (NEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (ISSUER NOT COOPERATING) Proposed Long 13.54 CRISIL B+/Stable (ISSUER NOT Term Bank Loan COOPERATING) Facility CRISIL has been consistently following up with NEPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NEPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of NEPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up in 1995 by Mr. A R Sudhakar and his brother-in-law, Mr. T V Rama Kumar, Chennai-based NEPL undertakes residential and commercial real estate projects. The company has completed more than 6 lakh square feet of construction in the past. Currently, the company has one ongoing project, Natwest Vivas, situated on GST Road, Chennai. NEESARG MOTORS: CRISIL Cuts INR6.25cr Debt Rating to D ------------------------------------------------------- CRISIL has downgraded the rating on the long-term bank facility of the Neesarg Motors to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 6.25 CRISIL D (ISSUER NOT COOPERATING; Overdraft Downgraded from 'CRISIL B+/Stable facility ISSUER NOT COOPERATING') CRISIL has been consistently following up with NM for obtaining information through letters and emails dated April 29, 2020, May 8, 2020 and May 13, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NM is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on delay in debt servicing and account being NPA, CRISIL has downgraded the rating on the long-term bank facility of the NM to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 2008, NM is a Honda Motorcycle & Scooter India Pvt Ltd Company Limited. (Honda) dealer of two wheeler and a service provider of Tata Motors in Palanpur, Gujarat. NM has 3 Honda authorized showrooms and provides 3S (Sales, Service and Spares) facilities and 1 Tata service centre in Palanpur. The company is promoted by Mr. Yasin Banglawala. NOIDA MEDICARE: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Noida Medicare Centre Limited Registered office: E-485, 2nd Floor Near Old Police Station Opposite Punit Apartment New Ashok Nagar Delhi 110096 Insolvency Commencement Date: May 28, 2020 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: 180 days from commencement Insolvency professional: Chandra Prakash Interim Resolution Professional: Chandra Prakash 58-B, Pocket-4 Mayur Vihar, Phase-1 Delhi 110091 E-mail: cppumba2409@gmail.com - and - 812, Indra Prakash Building Barakhamba Road New Delhi 110001 E-mail: ip.nmccirp@gmail.com Last date for submission of claims: June 15, 2020 ORMA MARBLE: CRISIL Maintains D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Orma Marble Palace Private Limited (OMPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with OMPPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of OMPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on OMPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of OMPPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 1994, OMPPL promoted by Mr. Lijo Joseph in Angamaly, Kerala, is primarily engaged into in trading of granites, marbles, ceramic tiles, vitrified tiles, adhesives, sanitary and bathroom fittings, etc. The company owns three showrooms in Angamaly. P G MERCANTILE: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of P G Mercantile Private Limited (PGMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL D (ISSUER NOT COOPERATING) Foreign Exchange Forward 3 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 60 CRISIL D (ISSUER NOT COOPERATING) Proposed Long 79.89 CRISIL D (ISSUER NOT COOPERATING) Term Bank Loan Facility Term Loan 23.61 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PGMPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PGMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PGMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PGMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2003 and promoted by Mr. Prateek Gupta, PGMPL primarily trades in ferrous and non-ferrous metals. The company also has two windmills (one each in Maharashtra and Tamil Nadu) with total capacity of 3.7 megawatt. Mr. Gupta is also the vice-chairman of Ushdev International Ltd, which is in the same business. PARAS INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Paras Industries (Paras) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 7.5 CRISIL D (ISSUER NOT COOPERATING) (pre-shipment credit) Post Shipment Credit 3.7 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Paras for obtaining information through letters and emails dated December 31, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Paras, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Paras is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of Paras continues to be 'CRISIL D Issuer not cooperating'. Set up as a partnership firm in 1987`, in Mumbai, Paras was owned by the Jariwala and Shah families till March 2010. The Shah family exited in April 2010. The firm manufactures and exports knitted garments and accessories to departmental stores in the US. PRAJWAL PROMOTERS: Ind-Ra Moves B Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Prajwal Promoters Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR68 mil. Term loan limit due on December-2019 migrated to non-cooperating category with IND B (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 10, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2008, Bengaluru-based Prajwal Promoters has been engaged in the construction of its real estate project, Adithya, which covers an area of 491,139 square feet and saleable area 270,000 square feet. PRANAV CONSTRUCTION: CRISIL Keeps D Debt Ratings in Not Coop ------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Pranav Construction Systems Private Limited (PCSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 16.22 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 19.11 CRISIL D (ISSUER NOT COOPERATING) Export Packing Credit 6.63 CRISIL D (ISSUER NOT COOPERATING) Funded Interest Term Loan 6.08 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 3.00 CRISIL D (ISSUER NOT COOPERATING) Working Capital Term Loan 21.49 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PCSPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PCSPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PCSPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PCSPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2003, PCSPL provides formwork, false work and scaffolding which find application in construction/infrastructure sector. The company has been set up by Mr. Sushil Sahani and its manufacturing facilities are located at Kopar-Khairane and Badlapur (both in Maharashtra). PRO KNITS: CRISIL Maintains D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of PRO Knits (PK) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 8 CRISIL D (ISSUER NOT COOPERATING) Packing Credit 20 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PK for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PK, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PK is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PK continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Established in 1998 by Mr. Ravi Kumar and Mrs. Mallika as a partnership firm, Pro Knits is into manufacture and export of readymade garments to UK and various other European countries. The firm specialises in the manufacture of knitted garments of kids, men, and women. The firm has a manufacturing plant in Tirpur. PROPUS INCORPORATED: Ind-Ra Moves BB- Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Propus Inc's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR15 mil. Term loan due on April 2025 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR80 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Non-fund based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 24, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Propus is a partnership firm established in 2014 by Manan Bansal. The firm undertakes projects of customized retail display, store fixtures, LED signages, vending machines, branding interior etc. PUNJAB SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Punjab Spintex Limited (PSL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 25.0 CRISIL D (ISSUER NOT COOPERATING) Corporate Loan 5.0 CRISIL D (ISSUER NOT COOPERATING) Inventory Funding Facility 10.0 CRISIL D (ISSUER NOT COOPERATING) Standby Line of Credit 2.5 CRISIL D (ISSUER NOT COOPERATING) Term Loan 5.0 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PSL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PSL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PSL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of PSL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in December 2006 and promoted by Mr. Suresh Kumar and three of his business associates, PSL gins cotton and manufactures cotton yarn (in counts of 20s-30s). Operations began in December 2007. RAM KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Ram Krishna Tea Factory - Uttar Dinajpur (RKTF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.18 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 2.30 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term .32 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 2.25 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RKTF for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RKTF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RKTF is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of RKTF continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in September, 2014 in Sonarpur Hat, RKTF is engaged in manufacturing of CTC tea. The firm has its own processing unit with total manufacturing capacity of 8.5 lakh kg per annum. It is promoted by Srimati Krishna Bhagat, Mr. Sushil Bhagat, Mr. Babanlal Bhagat, Mr. Lalan Bhagat, Mr. Panchami Bhagat and Mr. Manoj Bhagat. RENUKA SILKS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Renuka Silks - Perambalur Unit (RS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 2.75 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with INRfor obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on INRis consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the rating on bank facilities of INRcontinues to be 'CRISIL D Issuer Not Cooperating'. RS is a partnership concern set up in 2013. It retails apparel for men, women, and kids, and specialises in uniforms for schools and corporates. The firm has a single showroom at Perambalur in Tamil Nadu, covering 24,000 square feet. Its operations are managed by Mr. R Kandasamy. RICHLOOK CREATIONS: CRISIL Keeps D Debt Ratings in Not Coop ----------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Richlook Creations Private Limited (RCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 6.37 CRISIL D (ISSUER NOT COOPERATING) Term Loan 4.13 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RCPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RCPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the rating on bank facilities of RCPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2007, RCPL undertakes embroidery of saris and knitting of grey manufacture of saris and dress materials. The company, based in Surat, Gujarat, is promoted by Mr. Rajratan N Goyal and his family members. It has a capacity of embroidery to the extent of 150.5 million metres of saris per annum and knitting to the extent of 20 million meters per annum. SAI PAVANI: Ind-Ra Lowers LT Issuer Rating to D, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Sai Pavani Constructions Private Limited's (SPCPL) Long-Term Issuer Rating to 'IND D' from 'IND BBB- (ISSUER NOT COOPERATING)'. Simultaneously, Ind-Ra has reassigned SPCPL a Long-Term Issuer Rating of 'IND B-' with a Stable Outlook. The instrument-wise rating actions are: -- INR200 mil. Fund-based facilities* downgraded and reassigned with IND B-/Stable/IND A4 rating; -- INR250 mil. Non-fund-based facilities* downgraded and reassigned with IND A4 rating; -- INR50 mil. (reduced from INR100 mil.) Non-fund-based facilities#,^ downgraded and assigned with IND A4 rating; -- INR100 mil. Proposed fund-based facilities withdrawn (issuer did not proceed with the instrument as envisaged). *Downgraded to 'IND D' before being reassigned #Downgraded to 'Provisional IND D' before being reassigned ^The final rating has been assigned following the receipt of a sanction letter by Ind-Ra. KEY RATING DRIVERS The downgrade reflects SPCPL's overutilization of its fund-based limits for more than 31 days during December 2019 and January 2020 due to a stressed liquidity position. Liquidity Indicator- Poor: The reassigned ratings reflect the company's timely debt servicing during the three months ended June 2020. However, it had fully utilized its fund-based facilities during the 12 months that ended May 2020. Also, its cash flow from operations deteriorated to INR10 million in FY20 from INR123 million in FY19. The company had a cash balance of only INR3 million as of end-March 2020. The company has availed a moratorium for six months from all the banks under the COVID-19 relief package. The ratings are also constrained by SPCPL's high geographical concentration, with most of the company's projects being based in Andhra Pradesh, Telangana, and Karnataka. The rating factor in the company's modest credit metrics, with its interest coverage improving to 3.4x in FY20 from 2.3x in FY19 due to a reduction in interest expense to INR40 million from INR77 million. However, the net leverage deteriorated to 2.9x in FY20 from 1.8x in FY19 due to an increase in total debt to INR400 million from INR325 million. The interest expense was high during FY19, mainly due to higher quantum of interest-bearing unsecured loans. The ratings also factor in SPCPL's medium scale of operations. The revenue improved to INR1,579 million in FY20 from INR1,271 million in FY19 due to an increase in order execution. The company expects the revenue to improve over the medium term, based on an order book of INR6,027.6 million (3.8x of FY20 revenue) as of May 2020. The ratings are supported by the healthy EBITDA margins, despite falling to 8.5% in FY20 from 13.6% in FY19 due to the execution of low-margin orders. The return on capital employed was 17% in FY20 (FY19: 23%). The ratings however are supported by the company's promoters' experience of more than three decades in the execution of engineering, procurement, and construction projects. RATING SENSITIVITIES Positive: An improvement in the liquidity position while maintaining the revenue and EBITDA margin, leading to an improvement in the credit metrics, all on a sustained basis, will be positive for the ratings. Negative: A further stretch in the liquidity position, along with a decline in the revenue or EBITDA margin, resulting in deterioration in the credit metrics, all on a sustained basis, could lead to negative rating action. COMPANY PROFILE SCPCL was incorporated in 1990 as a proprietorship concern by T. Duggi Reddy in Andhra Pradesh. In 2006, the company was converted into a private limited company. It is engaged in civil engineering construction. SAMYU GLASS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Samyu Glass Private Limited (SGPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.35 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 13.60 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 2.35 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 12.50 CRISIL D (ISSUER NOT COOPERATING) Working Capital 11.10 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with SGPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SGPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SGPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SGPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Based in Hyderabad, SGPL manufactures glass containers. The company is promoted by Mr. S V Reddy and his associates. SANNIDHI FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Sree Sannidhi Foods Private Limited (SSFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 17.45 CRISIL D (ISSUER NOT COOPERATING) Term Loan 5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SSFPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SSFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SSFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SSFPL continues to be 'CRISIL D Issuer Not Cooperating'. SSFPL, incorporated in 2010 in Chittoor, was taken over by the current management comprising Mr. Shivam Goyal and Ms. Shavya Goyal in January 2014. The company manufactures and exports processed fruit products; it commenced full-fledged commercial operations from June 2014. SHAKTI BASMATI: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Shakti Basmati Rice Private Limited (SBRPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 67 CRISIL D (ISSUER NOT COOPERATING) Foreign Exchange Forward 0.52 CRISIL D (ISSUER NOT COOPERATING) Term Loan 0.48 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SBRPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SBRPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SBRPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SBRPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2011, SBRPL is promoted by Mr. Shyam Lal Gupta and family. It mills, processes, and sells basmati rice in the domestic and export markets. SHREE VENKATESHWARA: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Shree Venkateshwara Shikshan Sanstha (SVSS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 15.38 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SVSS for obtaining information through letters and emails dated December 31, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SVSS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SVSS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SVSS continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2000, SVSS operates multiple institutes offering courses in engineering, and management, and education, among others. It also operates an English medium school and two charitable schools. SWASTIK ISPAT: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Swastik Ispat Private Limited (SIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Funded Interest Term Loan 0.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Cash Credit Limit 8.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Letter of Credit 1.0 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 2.0 CRISIL D (ISSUER NOT COOPERATING) Term Loan 1.5 CRISIL D (ISSUER NOT COOPERATING) Working Capital Term Loan 1.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SIPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SIPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Orissa based SIPL, incorporated in 2003, manufactures sponge iron. Mr. Rajesh Bagaria is the promoter. VAIBHAVA LAKSHMI: CRISIL Keeps C Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Sri Vaibhava Lakshmi Enterprises Private Limited (SVLEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 17.2 CRISIL C (ISSUER NOT COOPERATING) Open Cash Credit 2.8 CRISIL C (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SVLEPL for obtaining information through letters and emails dated November 30, 2019 and May 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SVLEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SVLEPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of SVLEPL continues to be 'CRISIL C Issuer Not Cooperating'. Set up in 2013, SVLEPL is engaged in the poultry business. It has farms in Nandigama Village, Krishna District (Andhra Pradesh). Mr. Venkata Narayan and his family are the promoters. ================= I N D O N E S I A ================= GEO ENERGY: Fitch Alters LT IDR to CC on Failed Debt Exchange ------------------------------------------------------------- Fitch Ratings has revised Indonesia-based Geo Energy Resources Limited's Long-Term Issuer Default Rating to 'CC', from 'C'. Fitch has also revised the rating on the outstanding senior unsecured guaranteed notes of Geo's subsidiary, Geo Coal International Pte. Ltd., to 'CC', from 'C', with a Recovery Rating of 'RR4'. The revision follows Geo's failure to achieve the required minimum 75% noteholder acceptance of its tender offer and consent solicitation for the removal of the mandatory repurchase clause; Geo reported that only 13.8% of notes, or USD21.3 million, were validly tendered. Fitch concludes that Geo's tender offer was unsuccessful, as per its Distressed Debt Exchange Rating Criteria, as the company continues to face heightened default risk in the next 12 months; as a result, Fitch has revised its rating to 'CC', the level at which Geo was rated before the tender offer, since there has been no significant change in its underlying credit profile. The 'CC' rating reflects its view that a default appears probable within the next 12 months. Fitch thinks Geo will be required to buy back notes in May 2021 as per the note terms, as it is unlikely to meet the condition of 80 million tonnes (mt) of coal reserves, triggering a put option. Fitch expects Geo's liquidity to fall considerably short of the USD132.7 million principal due on the May 2021 put date if the put option is triggered in April 2021 and does not foresee timely refinancing for Geo. Geo is exploring the unchartered southern part of its PT Tanah Bumbu Resources mine in an attempt to boost reserve. However, even if it avoids the put option through an asset acquisition or reserve addition at its TBR mine, liquidity on hand will still be insufficient to repay the principal on its bond maturity in October 2022. Geo announced yesterday that the ultimate shareholder of PT Titan Infra Energy has filed a legal case against Geo's subsidiaries and other parties. It claims that the conditional sale as well as the purchase and coal offtake agreements between TIE and Geo's subsidiaries were against the interest of TIE's shareholders. Geo says it has not received a legal notice on this issue and is monitoring the situation. Geo made an advance payment of USD32 million to TIE in 2019 for coal offtake in 2020. Fitch will monitor the situation and assess impact on Geo upon greater clarity. KEY RATING DRIVERS Unsuccessful Tender Offer and Consent Solicitation: The consent solicitation and tender offer failed to meet the conditions set forth in the offer. Geo waived the requisite 75% minimum application and bought back USD21.3 million of validly tendered notes at an average price of USD0.45 per unit (including accrued interest), which reduced its outstanding US dollar note balance to USD132.7 million. This buyback does not qualify as a DDE under Fitch's criteria, as the deal failed and the untendered noteholders remain exposed to a high risk of default. Excessive Refinancing Risk: Fitch believes Geo faces significant risk in refinancing its unsecured notes in light of its deteriorating liquidity and operating profile, which has weakened substantially. This leaves a negligible safety margin for operations amid weak coal prices and falling reserves. Fitch expects a large cash shortfall to cover the put date and note maturities, and believe accessing funding will be difficult in light of macroeconomic conditions, though Geo has availed funding in the past in the form of advances from its customers; commodity-trading companies. Deteriorating Liquidity: Fitch expects Geo's liquidity to decline further, as cash generation to likely to remain weak in the near term in light of the low coal prices and the company's weak cost position. Fitch estimates that Geo's cash balance fell to around USD80 million in June 2020 after its latest bond buyback; insufficient to cover its outstanding US dollar notes of around USD133 million. Weak Cost Position: Geo has one of the weakest energy-adjusted cost positions among Fitch-rated Indonesian coal miners. It produces average-quality coal and Fitch's coal-price assumptions suggest that its unit profitability will drop to around USD2.5 a tonne over the medium term, from USD5.4 in 1Q20 and around USD10.0 in 2018, despite being partly offset by recent cost-contract negotiations with logistics and service providers. Declining Reserves; Small Scale: Fitch believes Geo's small and declining reserve base is likely to pose a challenge. Geo's operating reserve comprised 22.7mt at PT Sungai Danau Jaya and 39.4mt at TBR as of 1Q20. The company will exhaust its operating reserve in nine years, based on Fitch's forecast annual production of around 7.0mt (2019: 7.4mt, 2018: 7.0mt). Geo has 12mt of approved annual production quota for 2020. Geo has two other mines, but one is still in the exploratory phase and the other has a weak cost position, making mining operations unviable. In addition, the mining licences of the SDJ and TBR mines expire in 2022. Geo has started the process for licence renewal. Fitch will treat any adverse developments pertaining to the renewals, including non-renewal, as an event risk. Low Off-Taker and Contractor Risk: Geo has life-of-mine contracts for its two key operating mines on all coal produced, less domestic market obligation sales, minimising off-take risk. However, it has high exposure to China, which contributed half of its 2019 sales (2018: 80%). Geo is exposed to slowing demand due to the coronavirus pandemic, as its end-users based in China, India and other Asian countries have experienced restrictions to curb the spread. However, the company says its operations are running as usual with no major obstacles to production or coal off-take due to the pandemic. Geo has prepayment facilities with off-takers for both mines, providing some flexibility in managing working capital. Its coal production and over-burden removal contracts are with one of Indonesia's largest mining contractors, PT Bukit Makmur Mandiri Utama (BB-/Negative), limiting contractor risk. DERIVATION SUMMARY Geo's Indonesian coal-mining peer, PT Golden Energy Mines Tbk (B+/Stable), has a stronger credit profile with a larger reserve base, better cost position and comfortable liquidity profile, which justifies Geo's multiple-notches lower rating. Altura Mining Limited's (CCC+/Stable) rating was affirmed in June after the company completed a funding package that included a three-year extension of its loan facility maturity and standby equity of AUD50 million until 2023, which it will use to fund working capital and finance costs over the next 12 months. Fitch believes this will provide a sufficient liquidity buffer and help the company manage short-term requirements. Geo has no reliable alternative sources to cover the significant shortfall on its US dollar maturities, justifying its multiple-notch lower rating KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer - Coal prices in line with Fitch's mid-cycle commodity-price assumptions, adjusted for the difference in calorific value (average Newcastle 6,000 kcal free on board or FOB/tonne: USD63 in 2020, USD72 in 2021, USD72 in 2022 and USD70 thereafter). - Annual total coal production from SDJ and TBR mines of 7mt over the medium term - No acquisitions and modest capex over the medium term - Strip ratio to remain at around 3.6x (2019: 3.5x) and production cost at less than USD29.0/tonne (2019: USD29.3/tonne) over 2020-2024 Recovery Assumptions: - Recovery analysis for Geo is on a going-concern basis in case of bankruptcy and assumes that the company would be reorganised and not liquidated. Fitch has assumed a 10% discount to enterprise value to account for bankruptcy-related administrative claims. - The going-concern EBITDA estimate of around USD16.5 million reflects Fitch's view of a sustainable, post-reorganisation EBITDA level upon which it bases the enterprise valuation. The going-concern EBITDA is 5% below the mid-cycle EBITDA, based on Fitch's long-term average thermal coal-price expectation. - An enterprise value multiple of 4.5x EBITDA is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value. The multiple is slightly higher for Geo's existing profile compared with the enterprise value/EBITDA multiple used in recent M&A transactions in the sector and the multiple at which Indonesian coal companies are currently trading in the market. This is due to the cash balance at Geo, which could be used to acquire coal assets or pay down its US dollar notes. The acquisition of coal assets would boost EBITDA, but would not add assets to the balance sheet, as Indonesian coal mines are essentially owned by the government and licensed to coal miners. - An enterprise value multiple of 4.5x used to calculate a post-reorganisation valuation also reflects a derived EBITDA multiple based on a distressed valuation metric of around USD1/tonne of Geo's proved reserves. - The waterfall results in a recovery of 51% for the US dollar noteholders, or a Recovery Rating of 'RR4'. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Significant reduction in refinancing risk with improved liquidity Factors that could, individually or collectively, lead to negative rating action/downgrade: - A default or the start of a default-like process BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Stretched Liquidity: Geo's weak cash balance and capex requirements will continue to weigh on its near-term liquidity profile. This follows the reduction in cash following Geo's multiple bond buybacks. Fitch estimates that Geo had an unrestricted cash balance of around USD80 million in June 2020 after the partial buyback under the tender offer. Its bond covenants allow additional debt for working capital of up to USD40 million, but Fitch believes Geo's funding access remains uncertain due to the current market conditions, considering its deteriorating operating profile. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). ========= J A P A N ========= TOSHIBA CORPORATION: Moody's Affirms B1 CFR, Outlook Now Stable --------------------------------------------------------------- Moody's Japan K.K. has affirmed Toshiba Corporation's B1 corporate family and senior unsecured ratings, as well as its Not Prime commercial paper rating. At the same time, Moody's has changed the outlook to stable from negative. RATINGS RATIONALE "The stable outlook reflects its view that Toshiba's profits have seen the bottom following its restructuring program and that it has secured sufficient liquidity," says Ryohei Nishio, a Moody's Analyst. Toshiba improved its operating profit and margin to JPY130 billion and 3.8% in the fiscal year ended March 2020 (fiscal 2019) from JPY35 billion and 1.0% respectively in fiscal 2018, when the company incurred one-time restructuring costs and losses. This profit recovery indicates the company's progress in its restructuring plan and reforms to improve earnings, especially in its core energy and infrastructure businesses. Toshiba has completed the early part of its five-year restructuring plan to overhaul its existing businesses. The company has exited from several unprofitable non-core businesses, rationalized its workforce and production sites, and reduced its costs. Moody's views that Toshiba has started to record sustainable earnings after its restructuring efforts despite some near-term headwinds stemming from the coronavirus outbreak, particularly in its retail and printing as well as devices and storage segments. Moody's believes that the company has sufficient liquidity to cover its cash needs for at least the next 15 months and has also proven its access to funding. Toshiba recently obtained JPY150 billion in bank borrowings to bolster its cash on hand amid the uncertainty from the coronavirus outbreak. The company also has JPY258 billion of committed credit lines. At the same time, Toshiba's B1 rating incorporates the company's still thin profitability as well as shareholder-friendly financial policy. The company is exposed to shareholder activism, with hedge fund investors predominating its shareholder base. These elements can pressure the company toward financial policies that favor shareholder returns and take a short-term orientation. For example, the company will implement a share buyback with the majority of the proceeds from the planned divestment of its 40.2% stake in KIOXIA Holdings Corporation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Toshiba's ratings if (1) the company demonstrates a sustained turnaround in its profitability, for example, operating profit margin above 4%, (2) its capital investments result in increased earnings and profitability, and (3) its financial profile improves through debt reduction. Conversely, Moody's could downgrade the ratings if (1) Toshiba's operating profit margin falls below 2% on a sustained basis, (2) the company adopts a more aggressive financial policy that further weakens its financial profile, or (3) it is unable to maintain sufficient financing to support the liquidity of its operations. The principal methodology used in these ratings was Manufacturing Methodology (Japanese) published in March 2020. Headquartered in Tokyo, Toshiba Corporation is one of the largest diversified manufacturers in Japan. [*] JAPAN: Coronavirus-Linked Business Bankruptcies Hit 300 ----------------------------------------------------------- The Japan Times reports that the number of corporate bankruptcies linked to the coronavirus has surpassed 300, leaving more than JPY200 billion in liabilities, according to Teikoku Databank Ltd. The Japan Times relates that many companies were forced out of business, with the pace of recovery from the coronavirus fallout having been slow especially for small firms, even though the government completely lifted the state of emergency in early May. According to the report, the credit research firm said there were 308 failures tallied as of July 1. Among them were 49 restaurants and 45 hotels. Excluding those not yet surveyed, the liabilities left by 298 companies stood at some JPY211 billion, the report notes. The bankruptcies were recorded in 42 of the 47 prefectures, with Ehime seeing its first case the same day, The Japan Times discloses. ================= S I N G A P O R E ================= HATTEN LAND: Two Subsidiaries Plan Debt Restructuring ----------------------------------------------------- Vivienne Tay at The Business Times reports that two subsidiaries of Catalist-listed Hatten Land are looking to undergo debt restructuring, on top of the group's other initiatives to make its property development business more resilient in light of ongoing pressures from the Covid-19 pandemic. The subsidiaries, MDSA Resources and MDSA Ventures, are the developers for the group's integrated mixed-use projects Hatten City Phase 1 and 2 in Malacca, Malaysia, BT says. MDSA Resources and MDSA Ventures have applied to the High Court of Malaya for the court's leave to call for creditors' meetings under Section 366(1) of the Malaysian Companies Act, to consider and approve a proposed scheme of arrangement and compromise between each developer and their respective unsecured creditors, Hatten Land said on July 2, BT relays. They are also seeking a three-month restraining order under Section 368 of the Act to restrain any legal proceedings against them and/or their assets, including any winding up or arbitration proceedings, according to BT. The first court date for both applications is expected within 14 days from July 2, the report notes. According to the report, Hatten Land said it is currently unable to reasonably ascertain the proposed scheme's financial impact on the group, as the scheme is in the preliminary stages and details have not yet been formulated. It added that the subsidiaries applied for the restraining order as part of "proactive measures" to manage the group's financial condition to achieve "a more sustainable capital structure in line with the current business climate". BT relates that Hatten Land said the "strategic" restructuring is meant to strengthen the balance sheets of MDSA Resources and MDSA Ventures and restructure legacy contractual obligations. In response to the challenging business environment, Hatten Land has also adjusted salaries and reduced non-essential expenses to "balance near-term priorities to generate immediate savings and conserve financial resources", among other initiatives, BT relays. Precautionary and containment measures for the novel coronavirus within Malacca have affected consumer expenditure and purchases of big-ticket items such as properties, the company said on July 1. As the group's property portfolio is located primarily in Malacca, the business impact has been particularly distinct, the report states. About Hatten Land Hatten Land Limited operates as a property developer. The Company develops malls, hotels, and residential properties. Hatten Land serves customers in Singapore and Malaysia. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 12, 2019, The Business Times said Hatten Land's independent auditor, Ernst & Young, has made a disclaimer of opinion on Hatten's financial statements for the year ended June 30, 2019. While Hatten's directors have prepared the financial statements on a going concern basis based on the assumptions disclosed in the financial statements, Ernst & Young highlighted conditions that have given rise to material uncertainties on the group's ability to continue as a going concern. Among other things, Ernst & Young noted in its report dated Nov. 8, 2019, that as at end-June 2019, the group's total loans and borrowings amounted to MYR416.52 million, of which MYR328.83 million was classified as current liabilities and exceeded the group's cash and bank balances of MYR28.48 million, BT related. ZENROCK COMMODITIES: Hearing on HSBC Bid for JM Set for July 13 --------------------------------------------------------------- HSBC Holdings Plc's earlier reported application for Singapore-based oil trading firm Zenrock Commodities Trading to be placed under judicial management has been scheduled for a hearing at 10:00 a.m. on July 13, according to a notice published by the High Court of Singapore seen by Manifold Times. Manifold Times says Messrs. Wong Pheng Cheong Martin, Bob Yap Cheng Ghee and Toh Ai Ling all part of KPMG Services Pte. Ltd. have been nominated, to act jointly and severally, as the Judicial Managers by HSBC. 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, 2020. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***