/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200806.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, August 6, 2020, Vol. 23, No. 157 Headlines A U S T R A L I A COLAC R.S.L.: Worrells Solvency Appointed as Administrators COOL BARBERS: Second Creditors' Meeting Set for Aug. 13 MILLARS HEAVY: Second Creditors' Meeting Set for Aug. 11 SELC AUSTRALIA: First Creditors' Meeting Set for Aug. 14 VIRGIN AUSTRALIA: To Cut 3,000 Jobs Under Bain Ownership C H I N A KANGDE XIN: Investigators Reveal How Firm Carried Out Fraud YANCHENG ORIENTAL: Fitch Affirms BB- LongTerm IDR, Outlook Stable YUZHOU PROPERTIES: Fitch Rates Proposed USD Senior Notes 'BB-' I N D I A ADITYA AGRI: CRISIL Moves B on INR5cr Debt to Not Cooperating ANJANINANDAN PREMIER: CRISIL Moves B Debt Rating to NonCooperating APHELION FINANCE: Ind-Ra Withdraws BB LT Issuer Rating BHARAT HEART: CRISIL Lowers Rating on INR27.67cr LT Loan to D FLEXI PLAST: CRISIL Migrates B Debt Ratings to Not Cooperating GANGA VEHICLES: CRISIL Keeps on INR7.95cr Debt in Not Cooperating GARG RICE: CRISIL Hikes Rating on INR4.8cr Cash Loan to B+ HI-TECH SATLUJ: CRISIL Migrates D Debt Ratings to Not Cooperating HYQUIP SYSTEMS: CRISIL Moves C on INR8.66cr Debt to Not Cooperating KUMAR FEEDS: CRISIL Moves B on INR4.22cr Debt to Stable KUSALAVA FINANCE: CRISIL Cuts Rating on INR30cr Loan to B+ LAXMI NARASIMHAA: CRISIL Keeps D Debt Ratings in Not Cooperating ONEST MILK: CRISIL Assigns B+ Rating to INR11cr Term Loan PRECISE ENGINEERING: CRISIL Moves D Debt Ratings to Not Cooperating R. G. INTERNATIONAL: CRISIL Cuts Rating on INR60cr Loan to D RAKESH CREDITS: CRISIL Moves B on INR8.5cr Debt to Not Cooperating SACHDEVA HOME: CRISIL Moves B+ Debt Ratings to Not Cooperating SAI RAGHAVENDRA: CRISIL Keeps B+ Debt Ratings in Not Cooperating SAMRUDDHI REALTY: CRISIL Keeps D on INR55cr Debt in Not Cooperating SANTOSH ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating SARA SUOLE: Ind-Ra Cuts & Moves LongTerm Issuer Rating to 'BB+' SB CARS: CRISIL Lowers Rating on INR12cr Cash Loan to B+ SHUNTY BUNTY: CRISIL Keeps D Debt Ratings in Not Cooperating SMRITI APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating SURYA CONTRACTORS: CRISIL Lowers Rating on INR25cr Loan to B+ T.R. CHEMICALS: CRISIL Keeps D Debt Ratings in Not Cooperating THAMPURAN CASHEWS: CRISIL Keeps D Debt Ratings in Not Cooperating TUSHAR FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating VAISHNOVI INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating VAMA WOVENFAB: CRISIL Moves D Debt Ratings to Not Cooperating VARALAKSHMI SOLVENT: CRISIL Moves B+ Debt Rating to Not Cooperating VELOHAR INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating VENKATALAKSHMI PAPER: CRISIL Cuts Rating on INR22.5cr Loan to B+ VINDHYA CEREALS: CRISIL Keeps D Debt Ratings in Not Cooperating I N D O N E S I A ALAM SUTERA: Fitch Cuts IDR to CCC- on Heightened Liquidity Risks GARUDA INDONESIA: Cash Pile Thinning Fast as Losses Rise J A P A N JAPAN: Said to be Short of Rescue Plans for Regional Lenders M A L A Y S I A PASDEC HOLDINGS: Has Until Aug. 7 to Submit Annual Report S I N G A P O R E PSL HOLDINGS: To Seek Voluntary Liquidation S O U T H K O R E A ASIANA AIRLINES: Set to Go Under KDB Management T H A I L A N D NOK AIR: Blames No-Show MPs on THB3.5-Mil. Losses - - - - - ================= A U S T R A L I A ================= COLAC R.S.L.: Worrells Solvency Appointed as Administrators ----------------------------------------------------------- Scott Andersen and Nathan Deppeler, Partners at Worrells Solvency and Forensic Accountants Victoria were appointed Voluntary Administrators of Colac R.S.L Inc on July 29, 2020. On appointment, Mr. Andersen said "while we are still in the initial stages of gathering books and records to commence our assessment, discussions with management indicate that COVID-19 has had a significant impact on the financial circumstances of The Association". "Recent circumstances arising because of COVID–19 has meant we have temporarily closed the restaurant, bar, function and gaming facilities associated with the Colac R.S.L. All employees have been retained and are continuing to be paid via the JobKeeper scheme. In the meantime, all veteran welfare services remain accessible for returned service people in the community". "Worrells appreciates and understands the impact the appointment will have on The Association, its members, employees, service providers, customers, business partners and the local community. Worrells advises the administration is still in its infancy and its teams are working hard to assess and determine all aspects of The Associations operations." "We are aware of the vested interest the community of Colac, including local veterans, has in the future of the Colac R.S.L and are working on achieving a positive outcome for both business and community stakeholders via the voluntary administration process." Worrells notes that the objectives of the voluntary administration regime allow businesses to address issues, and if possible, with creditor approval return it to a healthy trading prospect. Under the voluntary administration process, a first meeting of creditors is held within eight business days of the appointment, and a second meeting of creditors is usually held within 20 to 30 business days when creditors will determine the future for The Association. The first meeting of creditors has been scheduled to occur on Aug. 10, 2020, and notice of the meeting has been issued to all creditors. Worrells will continue to proactively communicate with all affected parties at each step in the administration. Colac R.S.L is an integral provider of welfare service to veterans in the local community whilst also operating restaurant, bar, function and gaming facilities. COOL BARBERS: Second Creditors' Meeting Set for Aug. 13 ------------------------------------------------------- A second meeting of creditors in the proceedings of Cool Barbers Pty Ltd has been set for Aug. 13, 2020, at 11:30 a.m. at the offices of Worrells Solvency & Forensic Accountants, Level 2, AMP Building 1 Hobart Place, in Canberra, ACT. 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 Aug. 12, 2020, at 5:00 p.m. Stephen John Hundy of Worrells Solvency & Forensic Accountants were appointed as administrators of Cool Barbers on Aug. 3, 2020. MILLARS HEAVY: Second Creditors' Meeting Set for Aug. 11 -------------------------------------------------------- A second meeting of creditors in the proceedings of Millars Heavy Haulage Pty Ltd has been set for Aug. 11, 2020, at 4:00 p.m. via video conference. 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 Aug. 10, 2020, at 5:00 p.m. P Newman of PCI Partners Pty Ltd was appointed as administrator of Millars Heavy on July 7, 2020. SELC AUSTRALIA: First Creditors' Meeting Set for Aug. 14 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Selc Australia Pty Limited, trading as Sydney English Language Centre, will be held on Aug. 14, 2020, at 11:00 a.m. at the offices of Rodgers Reidy, Level 12, The University Centre, at 210 Clarence Street, in Sydney, NSW. Andrew James Barnden of Rodgers Reidy was appointed as administrator of Selc Australia on Aug. 4, 2020. VIRGIN AUSTRALIA: To Cut 3,000 Jobs Under Bain Ownership -------------------------------------------------------- Angus Whitley at Bloomberg News reports that Virgin Australia Holdings Ltd. will cut a third of its workforce and scale back its fleet under the ownership of Bain Capital as the buyout firm attempts to resurrect the airline during the industry's worst-ever crisis. Under a plan announced on Aug. 5, about 3,000 of the airline's 9,000 jobs will go and long-haul international flights will remain suspended, Bloomberg relates. After crumbling in April under AUD6.8 billion (US$4.9 billion) in borrowings, Virgin Australia will also get rid of all its long-distance Boeing Co. 777 and Airbus SE A330 jets and fly only Boeing 737s on short-haul routes. According to Bloomberg, the proposals are the first glimpse of Bain's plan to revive Virgin Australia in a market that shows little sign of recovery. Corporate aviation casualties are mounting up -- including Virgin Atlantic Airways Ltd. this week -- as carriers from Thailand to the Americas collapse or seek bankruptcy protection. "I applaud the courage of Bain to save an airline in the middle of a pandemic," Bloomberg quotes the airline's Chief Executive Officer Paul Scurrah as saying on Aug. 5. A full recovery for the industry is unlikely before 2024, a year later than previously anticipated, the International Air Transport Association has warned. And even that might be optimistic, Mr. Scurrah said. "Demand for domestic and short-haul international travel is likely to take at least three years to return to pre-Covid-19 levels, with the real chance it could be longer," the report quotes Mr. Scurrah as saying. A debt-burdened Virgin Australia buckled as the coronavirus pandemic brought business to a halt. Administrators fast-tracked an auction before the airline's cash ran dry and agreed to sell it to Bain in June. Since then, Melbourne has retreated into full lockdown after a flareup in Covid-19 infections, and plans for a virus-free air corridor with New Zealand have been put on ice, the report states. Bloomberg says Bain's scaled back goals for Virgin Australia contrast with the airline's previous and ultimately fateful ambition to compete with Qantas Airways Ltd. as a full-service carrier. That vision destroyed Virgin Australia's balance sheet and ultimately led to a management shakeup. As the new CEO, Mr. Scurrah had barely started to cut costs, simplify operations and trim debt before he was overwhelmed by the pandemic. The airline will ditch its budget Tiger Australia brand and ensure travel credits are provided to customers on flights that were canceled due to the pandemic, Bloomberg relays. Mr. Scurrah said the airline hopes to employ up to 8,000 staff as the market recovers. Qantas said in June it would cut 6,000 jobs and ground about 100 planes as it laid out plans to raise an additional AUD1.9 billion to survive the downturn, Bloomberg recalls. Virgin Australia's creditors, who include employees, are yet to find out how much money they will recoup, the report notes. They're due to vote on the proposed sale to Bain on Aug 26. About Virgin Australia Brisbane, Queensland-based Virgin Australia is Australia's second-largest airline. It commenced services in 2000 as Virgin Blue, wholly owned by the Virgin Group. Virgin Australia Holdings Ltd. was the first Asian airline to succumb to the challenges of the coronavirus pandemic. The airline carrier collapsed into voluntary administration in April 2020. Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri of Deloitte were appointed as administrators of Virgin Australia, et al., on April 20. The administrators were tasked to restructure and find new owners for the airline. The airline's frequent flyer program is a separate company and is not in administration. At the time of its collapse, Virgin Australia continued to operate some flights for essential workers, freight and the repatriation of Australians. The company owes AUD6.8 billion to lenders, bondholders, aircraft lessors, trade creditors and employees. On April 29, 2020, Virgin Australia and more than 30 of its affiliates filed petitions pursuant to Chapter 15 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Vaughan Strawbridge, Richard Hughes, John Greig, Salvatore Algeri were tapped as foreign representatives. Renee M. Dailey, Esq. of Akin Gump Strauss Hauer & Feld LLP serves as counsel to the Foreign Representatives. In June 2020, administrator Deloitte agreed to sell the airline carrier to American private equity giant Bain Capital. The size of the bid for the airline has not been revealed. ========= C H I N A ========= KANGDE XIN: Investigators Reveal How Firm Carried Out Fraud ----------------------------------------------------------- Wang Juanjuan and Timmy Shen at Caixin Global report that investigators from China's securities watchdog on Aug. 3 revealed a complex web of accounts and transactions with illegal underground lenders that employees at Kangde Xin Composite Material Group Co. Ltd. used to carry out a four-year fraud that has brought the company to its knees. According to Caixin, the scheme was disclosed during a three-day hearing held by the China Securities Regulatory Commission (CSRC) in Beijing to determine what administrative punishment should be imposed on the Zhangjiagang, Jiangsu province-based company, which is struggling to survive after a bond default in January 2019 triggered a CSRC probe that uncovered one of the most high-profile corporate frauds in Chinese stock market history. Investigators found that about CNY15 billion (US$2.1 billion) of cash and bank deposits shown on the Shenzhen-listed company's financial statements turned out to be an illusion, Caixin relays. Sales and other documents had been systematically falsified over a four-year period and inflated profits by a total of CNY11.9 billion, a figure subsequently adjusted to CNY11.5 billion. China Kangde Xin Composite Material Group Co., Ltd. -- http://www.kangdexin.com/-- engages in laminating film and photoelectric materials, 3D, and Internet applications businesses worldwide. It offers printing substrates, environmental laminating films, 3D grating materials, 3D imaging technology, automatic coating equipment, and electronic display equipment under the Kangde Film and KDX brand names for the printing and packaging, and decoration markets. YANCHENG ORIENTAL: Fitch Affirms BB- LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Yancheng Oriental Investment & Development Group Co., Ltd's 'BB-' Long-Term Foreign- and Local-Currency Issuer Default Ratings. The Outlook is Stable. Fitch has also affirmed the 'BB-' rating on the senior unsecured notes issued by Oriental Capital Company Limited, a wholly owned subsidiary. Yancheng Oriental was established by China's Yancheng municipality and is positioned as a flagship government-related entity responsible for urban development within Yancheng Economic-Technical Development Zone, a national-level development zone. KEY RATING DRIVERS 'Strong' Status, Ownership and Control: Fitch believes the municipality's direct shareholding and joint control reinforce the expected level of support for Yancheng Oriental. Yancheng Oriental is wholly owned by Yancheng municipality and jointly controlled by the ETDZ management committee and Yancheng State-owned Assets Supervision and Administration Commission; in particular, its board members are recommended by the management committee and appointed by the SASAC. At the operational level, the management committee is responsible for the day-to-day oversight of the company's strategic direction and financial planning. Significant investments or debt financing requires additional approval by the SASAC. Fitch will continue to monitor the company to determine whether the joint reporting leads to increased support. 'Strong' Support Record, Expectations: Fitch believes the government's historical financial support has been consistent and is a strong indication of its commitment in maintaining the company's expansion. Fitch expects government support, in the form of injections and subsidies, to continue and remain essential for debt refinancing. However, the assessment is constrained by the government's lack of guarantees for the company's debt. The company benefited from a CNY3 billion capital injection and a subsidy of CNY280 million in 2019, which represented the majority of its profit. 'Moderate' Socio-Political Impact of Default: The attribute strength factors in Yancheng Oriental's key role in urban development within Yancheng. Its default could disrupt the city's economic development, although the impact may be limited to the development zone. In addition, there is more than one urban-development GREs in Yancheng, with each being responsible for a specific geographical region. This means Yancheng Oriental's role could be substituted by other GREs, which is a constraint against a stronger assessment. 'Strong' Financial Implications of Default: Fitch believes a default by Yancheng Oriental could limit financing options for other GREs within the municipality, considering the company's large scale and operational and contractual relationship with the government sponsor. Yancheng Oriental is among the largest non-commercial GREs by total assets and has substantial receivables due from the government; these accounted for around 23% of total assets in 2019. Hence, its default could create uncertainty about the municipality's credibility. The attribute is constrained by the company's geographical concentration, which may mean it is not necessarily seen as a proxy for the city. 'b' Standalone Credit Profile: Fitch's assessment of the company's Standalone Credit Profile is predominantly driven by its weak financial profile, with net debt to EBITDA likely to remain above 30x through to 2024. However, the company has an adequate liquidity profile and refinancing ability, thanks to government support, which should mitigate the weak financial profile. Fitch assesses revenue defensibility as 'Weaker" due to the company's geographical concentration and limited pricing power given its policy role. It also has operating risk of 'Midrange' to reflect the stable nature of its urban development works. DERIVATION SUMMARY Yancheng Oriental's rating was assessed under its GRE criteria, with an overall support score of 25. This reflects the government's ownership and control, the company's functional role in the economic development of the ETDZ and the impact of default to other GREs, given the company's large asset size. Hence, Fitch believes the government has a strong incentive to provide extraordinary support to Yancheng Oriental, if needed. Yancheng Oriental's Standalone Credit Profile is assessed under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A change in Fitch's credit view on Yancheng municipality's ability to provide subsidies, grants or other legitimate sources allowed under China's policies and regulations. -- Stronger government control and expansion of the company's policy role that strengthens the municipality's incentive to provide support. -- An upgrade in the company's IDR will result in a similar action on the senior unsecured rating. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Deterioration in Fitch's credit view of Yancheng municipality's ability to provide subsidies, grants or other legitimate sources allowed under China's policies and regulations. -- Weakening of Yancheng Oriental's policy role or a dilution in the government's shareholding or control. -- A downgrade in the company's IDR will result in a similar action on the senior unsecured rating. YUZHOU PROPERTIES: Fitch Rates Proposed USD Senior Notes 'BB-' -------------------------------------------------------------- Fitch Ratings has assigned China-based Yuzhou Properties Company Limited's (BB-/Stable) proposed US dollar senior notes a 'BB-' rating. The proposed notes are rated at the same level as Yuzhou's senior unsecured rating because they constitute its direct and senior unsecured obligations. Yuzhou intends to use the net proceeds from the issue to primarily refinance its existing debt. Yuzhou's ratings are supported by healthy profitability, with an EBITDA margin of above 25%. Its quality, low-cost land bank should continue to support a wider margin than those of peers. The company's sales expansion and relatively short land-bank life of less than three years, however, will limit room for deleveraging. KEY RATING DRIVERS Expansion Pressures Leverage: Fitch expects leverage - measured by net debt/adjusted inventory that proportionately consolidates joint ventures and associates - to stay at about 40% in the next 12 months. The company had a total unsold land bank by end-2019 of 13.6 million square metres, which was sufficient for less than three years' development. Yuzhou's contracted sales will not be able to continue expanding at the current pace unless it replenishes the land bank. Fitch estimates Yuzhou will spend 30%-50% of its consolidated contracted sales on acquiring land. Larger Sales Scale: Fitch estimates Yuzhou's total annual contracted sales will rise to more than CNY100 billion in 2020. Total contracted sales climbed by 50% to CNY42.8 billion in 1H20, driven by an increase in gross floor area sold to 2.6 million sq m, while the contracted average selling price rose by 7% yoy to CNY16,421 per sq m. The company has saleable resources of CNY180 billion, of which 53% by sales value in 2020 are projects located in the Yangtze River Delta, where housing demand remains resilient. Healthy Margin: Fitch expects Yuzhou's EBITDA margin to stay above 25% in 2020-2022. Yuzhou's EBITDA margin dropped to 27.6% in 2019, from 32.1% in 2018, as it disposed of a number of low-margin projects. Yuzhou had gross unrecognised contracted sales of CNY90 billion by end-2019. These carry a gross profit margin of more than 25% and will be recognised on the income statement over the next two to three years. Its margin should improve in 2020. Selling and administrative expenses as a percentage of revenue rose to 7.8% in 2019 from 4.5% in 2018. Fitch expects this ratio to drop as the group's revenue recognition increases, which will support the group's EBITDA margin. DERIVATION SUMMARY CIFI Holdings (Group) Co. Ltd. (BB/Stable) is Yuzhou's closest peer in terms of geography, as both companies focus on the Yangtze River Delta region. Yuzhou is also strongly positioned in the West Strait Economic Zone and has less exposure to the Bohai Rim region. CIFI's attributable contracted sales are double that of Yuzhou with similar leverage, which explains why it is rated a notch higher than Yuzhou. CIFI has a slightly faster churn rate than Yuzhou, but a narrower EBITDA margin. In terms of scale, KWG Group Holdings Limited (BB-/Stable) had a similar level of attributable contracted sales in 2019 as Yuzhou, at around CNY45 billion-55 billion. KWG's focus is on Guangzhou, although both companies have some exposure to Suzhou, Shanghai and Tianjin. KWG has a slower churn model than Yuzhou, which explains its wider EBITDA margin. KWG's leverage is rising towards Yuzhou's level. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer - Annual total contracted sales of CNY100 billion-110 billion in 2020-2022 (2019: CNY75 billion) - 30%-50% of consolidated contracted sales to be spent on land acquisitions to maintain a land-bank reserve sufficient for less than three years of development (2019: 39%) - 30%-40% of sales contracted sales proceeds to be spent on construction (2019: 52%) - Cash collection rate at 60%-70% as percentage of consolidated contracted sales (2019: 58%) RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Proportionally consolidated net debt/adjusted inventory sustained below 40% - Proportionally consolidated contracted sales/gross debt sustained above 1.2x (2018: 0.8x) - EBITDA margin sustained above 25% Factors that could, individually or collectively, lead to negative rating action/downgrade: - Proportionally consolidated net debt/adjusted inventory above 45% for a sustained period - Proportionally consolidated contracted sales/gross debt below 1.0x for a sustained period - EBITDA margin below 20% for a sustained period BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Yuzhou had a total cash balance of CNY35.5 billion, including restricted cash of CNY1.9 billion and non-pledged time deposits CNY5.2 billion, as of end-2019. This is sufficient to cover debt maturing within a year of CNY15.3 billion and to support planned expansion. The company has diversified funding channels to ensure the sustainability of its liquidity, including bank loans, onshore and offshore bond issuance, as well as equity placements. 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). ========= I N D I A ========= ADITYA AGRI: CRISIL Moves B on INR5cr Debt to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Aditya Agri Machineries (AAM) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Fund- 5 CRISIL B/Stable (ISSUER NOT Based Bank Limits COOPERATING; Rating Migrated) CRISIL has been consistently following up with AAM for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 AAM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on AAM is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of AAM to 'CRISIL B/Stable Issuer not cooperating'. AAM was established as a proprietorship firm by Mr. Deepak Khade in 2008. It manufactures and exports agro processing machineries, mainly milling machines, pulse-polishing machines, grading machines, storage silo, and grain dryer. The manufacturing facility is in Akola (Maharashtra). ANJANINANDAN PREMIER: CRISIL Moves B Debt Rating to NonCooperating ------------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Anjaninandan Premier Packaging Private Limited (APPPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with APPPL for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 APPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on APPPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of APPPL to 'CRISIL B/Stable Issuer not cooperating'. With Mr. Sandeep Jhawar and Mr. Rohit Khandewal as its promoters and managers, APPPL recently set up a plant to manufacture polypropylene sacks in Bareilly, Uttar Pradesh, with installed capacity of 500 metric tonnes per month. APHELION FINANCE: Ind-Ra Withdraws BB LT Issuer Rating ------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Aphelion Finance Pvt. Ltd.'s (AFPL) Long-Term Issuer Rating at 'IND BB' with a Stable Outlook and simultaneously withdrawn the ratings. The instrument-wise rating actions are as follows: -- The 'IND BB' rating on the INR38.52 mil. Bank loan* affirmed and withdrawn; and -- The 'IND BB' rating on the INR200 mil. Cash credit* affirmed and withdrawn. *Affirmed at 'IND BB/Stable' before being withdrawn Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. KEY RATING DRIVERS The affirmation reflects a continued high share of unsecured loans (around 93% of overall portfolio, as of end-FY20) in AFPL's loan book through personal loans that originated via promoter contacts, other intermediaries or fintech companies that AFPL has tied up with. The unsecured segment is more vulnerable to delinquencies, more so in the challenging COVID-19 led disruptive economic environment. The overall portfolio also continues to remain highly concentrated towards Mumbai region (around 90%) as AFPL mainly operates through one Mumbai-based branch; although FY17 onwards the company achieved some geographic diversification due to its partnership with aggregators and fintechs. The ratings factor in the company's moderate profitability in FY20, with the return on average assets (RoAA) standing at 1.7% (FY19: 2.5%; FY18: 3.3%). The RoAA has been on a declining trend mainly due to decrease in the yield on advances as the company is working on diversifying towards secured loans, such as gold loans, loans against insurance policy, loans against hypothecation, loans against property and loans against two-wheelers, while the cost of borrowings increased as the company availed financing from non-banking finance companies. AFPL's credit costs were low at around 0.4% for FY20; however, Ind Ra believes that the credit costs pressure is likely to increase given the impact of COVID-19 on its borrower segment. The ratings are further constrained by the company's moderate scale of operations. Its capitalization levels have remained stable and adequate at 35.42% as at end-FY20 (end-FY19: 33.91%; end-FY18: 35.9%, end-FY17: 34.1%). The promoters have been regularly infusing capital into the company (FY19: INR5.7 million, FY18: INR48.9 million, FY17: INR4.9 million). AFPL plans to maintain high capitalization over the medium term (not less than 25%). The promoters are willing to infuse equity if required to support stress situation or growth in assets under management. The ratings, however, continue to be supported by AFPL's promoters' experience of more than a decade, which has helped the company acquire the necessary knowledge and understanding to operate in the unsecured lending space in its operational geographies. Liquidity Indicator- Adequate: As at end-March 2020, the company did not have any short-term cumulative funding mismatch in its asset liability management statement due to the short average tenor of its advances, with around 70% of its outstanding advances falling due within one year. AFPL had applied for and received moratorium in the first phase of moratorium for April and May from most of its lenders; however, it continued to service the interest component on its term loans. In April 2020, the company had paid installments to two of its NBFC lenders on mutual understanding. As on end-June, AFPL had on-balance sheet liquidity of INR9.91 million and undrawn bank lines of INR4.96 million. The company has contractual outflows in terms of debt servicing (principal and interest) of INR41.57 million and fixed operating expenses of INR10.35 million over July-September. However, AFPL's liquidity position could witness pressure in the short term, especially since the funding environment could turn extremely challenging over the next one year and the bullet repayment structure of its promoter-driven personal loans would result in the bunching up of inflows. AFPL has curtailed disbursements since the lockdown and plans to cautiously conserve liquidity in the near term. AFPL added new funding lines of INR55.0 million from two NBFCs in FY20 in addition to its existing lines from two banks and four NBFCs. From June-20 onwards, the company has not opted for moratorium from any of its NBFC lenders (forming around 25% of borrowings) while its bankers have granted moratorium 2.0. The ratings factor in AFPL's low gross non-performing loan (NPL) ratio at 1.26% at end-FY20 (end-FY19: 1.25%; end-FY18: 1.31%). AFPL is registered with the Reserve Bank of India (RBI) as a non-deposit taking non-systematically important non-banking finance corporation (NBFC); hence, it recognizes NPLs on 180 days past due (dpd) basis. Despite only around 3.5% of its assets under management being under the RBI-prescribed moratorium in May, the collection efficiency was around 73% mainly due to operational issues for the collection teams to reach out to customers who missed payments. The management expects the collection efficiency to improve as the lockdown is gradually lifted across the country. Ind Ra expects delinquencies to rise from the fintech-related loans, which stood at 15% of overall book in FY20, owing to their unsecured, short-term, unseasoned and untested nature. However, there is a first-loss default guarantee (security deposit) available from the fintech partners, which mitigates the risk to some extent. COMPANY PROFILE AFPL is a RBI-registered NBFC that started operations in 1999, but shifted focus to personal unsecured loans from 2004. It has diversified into segments such as gold loans and loans against insurance policies. It operates in Mumbai through a head office in Mulund. BHARAT HEART: CRISIL Lowers Rating on INR27.67cr LT Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facility of Bharat Heart and Super Speciality Hospitals (BHSSH) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 27.67 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects delays by the firm in meeting principal and interest obligation on its term loan, because of poor liquidity. The rating also reflected firm's leveraged capital structure. However, these weaknesses are partially mitigated by extensive experience of the promoters in the healthcare industry. Analytical Approach Unsecured loans estimated at INR4 crore as on March 31, 2020, have been treated as debt as they will be repaid. The firm pays interest of around 10% per annum on the loans. Key Rating Drivers & Detailed Description Weaknesses: * Leveraged capital structure: Gearing was high and networth modest, estimated at 6.43 times and INR7.9 crore, respectively, as on March 31, 2020. CRISIL believes the capital structure will remain leveraged with expected losses in the near term resulting in reduction of capital in the firm. * Poor liquidity: Poor liquidity of the firm, envisaged by delays in servicing of maturing debt obligations. Strength: * Extensive experience of promoters in the healthcare industry: The key promoter Dr Chetan Sharma has experience of more than three decades in the medical industry. He is a well-known cardiologist, and runs his own hospital Bharat Heart Institute, in Dehradun, Uttarakhand. CRISIL believes BHSSH will continue to benefit from its experienced management. Liquidity Poor The poor liquidity reflected in delays in servicing debt obligation. Bank lines were utilised extensively at 94% on average over the 12 months through June 2020. However, funding support from the promoters shall support liquidity and will remain a monitorable. Rating Sensitivity factors Upward factors: * Sustained increase in revenue and profitability leading to adequate accrual to service term debt * Track record of timely servicing of debt for at least 90 days Set up in fiscal 2017 as a partnership firm, BHSSH is managed and promoted by Dr Chetan Swaroop Sharma. The firm runs a hospital, Velmed Hospital, in Dehradun. Operations commenced in October 2018. FLEXI PLAST: CRISIL Migrates B Debt Ratings to Not Cooperating -------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Flexi Plast Industries (FPI) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 2.0 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 0.5 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with FPI for obtaining information through letters and emails dated April 29, 2020 and May 29, 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 FPI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on FPI is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of FPI to 'CRISIL B/Stable Issuer not cooperating'. Flexi Plast Industries (FPI) was formed as a partnership concern in February, 2015 by Mr. Pushpendra Sharma and Mr. Sunil Singhvi. However the firm became operational from October, 2016. FPI is engaged in manufacturing of flexible packaging laminates such as Plastic Pouch, Packaging Bag and Packaging Pouch. The product cateres to food packaging industry and currently caters its product in Rajasthan, Gujarat, Jharkhand, Maharashtra, Madhya Pradesh and Uttar Pradesh. GANGA VEHICLES: CRISIL Keeps on INR7.95cr Debt in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Shri Ganga Vehicles Private Limited (SGVPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.95 CRISIL B+/ Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SGVPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SGVPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SGVPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SGVPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 1984, SGVPL is an authorised dealer for Suzuki's motorcycles (with one showroom) and the passenger cars of Hyundai (2 showrooms) in Sikar and Nangod District of Rajasthan. It is promoted by Mr. Sukhbir Singh (Sikar showroom) and Mr. Ratan Lal Burdak (Nangod showroom). GARG RICE: CRISIL Hikes Rating on INR4.8cr Cash Loan to B+ ---------------------------------------------------------- Due to inadequate information, CRISIL, in line with SEBI guidelines, had migrated the rating of Garg Rice Industry (GARIIN's) to 'CRISIL B/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of GARIIN's from 'CRISIL B/Stable Issuer Not Cooperating' to 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.8 CRISIL B+/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Long Term Loan 2.25 CRISIL B+/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Proposed Fund- Based Bank Limits 2.95 CRISIL B+/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') The upgrade reflects the stabilization of the business operation marked by increased in the revenue estimated at 32.55 crore in fiscal 2020 against the 30.96 crore in fiscal 2019. The management has further infused the capital amount of 2.13 crore to support the financial risk profile as well as the liquidity profile. The rating reflects its modest scale of operations in intensely competitive industry and susceptibility of operating performance to adverse regulatory changes and fluctuations in raw material prices. These weaknesses are partially offset by the extensive experience of its promoters and moderate financial risk profile. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in highly fragmented and competitive rice milling industry: GARIIN's scale of operations through improved continues however it remain modest at estimated INR32.55 crore in fiscal 2020. CRISIL believes that GARIIN will remain a small player in the industry over the medium term, and will be able to scale up operations only gradually because of the intense competition in the industry. * Susceptibility of operating performance to adverse regulatory changes and fluctuations in raw material prices: The domestic rice industry is highly regulated in terms of paddy prices, export/import policy for rice, and rice release mechanism. Paddy accounts for around 90 per cent of the cost of producing rice. Rice is procured by the government through statutory levy on rice millers. Additionally, in response to the domestic market conditions, the government periodically imposes restrictions on rice exports. CRISIL believes that GARIIN's profitability will remain susceptible to adverse government regulations and volatility in raw material prices over the medium term. Strengths * Extensive experience of promoters: GARIIN engaged in milling and processing of paddy into rice. The extensive experience of the promoters has led to a strong relationship with customers and suppliers and understands market dynamics. CRISIL believes that GARIIN will continue to benefit from the promoter's extensive industry experience and established customer as well as supplier relationship * Moderate financial risk profile: The firm's financial risk profile is moderate as reflected in estimated gearing at 2.50 times and low net worth of INR2.97 cr as respectively as on March 31, 2020. Debt protection metrics have been moderate, with interest coverage and net cash accrual to total debt ratios estimated at 1.95 times and 0.07 time, respectively, for fiscal 2020. Liquidity Poor Liquidity is likely to remain constrained by large working capital requirement. Bank limit utilisation averaged around 88%in last 18 month through June'20 and fully utilized during the peak season. Cash accrual is estimated at INR62.11 lakhs for fiscal 2022, tightly match with estimated repayment obligation of 49 lakh in same fiscal. Current ratio was comfortable at 1.15 times as on March 31, 2019. However, liquidity will continue to be supported by the timely, need-based funds extended by the promoters. Outlook: Stable CRISIL believes GARIIN's will continue to benefit from the extensive experience of the promoters, and established relationships with clients. Rating Sensitivity Factors Upward Factors * Revenue growth of 15% per annum over the medium term along with steady profitability * Improvement in the working capital cycle and liquidity management Downward Factors * Steep decline in revenue or profitability, leading to an interest coverage ratio of less than 1.5 times * Further stretch in the working capital cycle, or a sizeable addition in debt, leading to delays in repayment obligation. GARIIN was set up as a proprietorship firm in 2017, by Mr. Subhash Gupta. The firm is engaged in milling and processing of paddy into rice, rice bran, broken rice and husk. It has an installed paddy milling capacity of 30 tonnes per day. The rice mill is located at Karnal(Haryana). HI-TECH SATLUJ: CRISIL Migrates D Debt Ratings to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Hi-Tech Satluj Motors Private Limited (HTSMPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Inventory Funding 13.24 CRISIL D (ISSUER NOT Facility COOPERATING; Rating Migrated) Overdraft 6.76 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with HTSMPL for obtaining information through letters and emails dated May 29, 2020, July 10, 2020 and July 15, 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 HTSMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on HTSMPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of HTSMPL to 'CRISIL D Issuer not cooperating'. HTSMPL is an authorised dealer of passenger cars of TML in HP. It was set up as a partnership firm named Satluj Motors, and reconstituted as a private limited company, with the current name in fiscal 2013. The company has been promoted by Mr. Mohinder Singh Gulleria and Mr. Narinder Singh Gulleria, who have experience of over a decade in the automotive dealership business. The company has three showrooms and workshops, one each in Mandi, Hamirpur, and Kullu, and has one branch each in Bilaspur, Sarkaghat, Jogindernagar, Manali, and Lunapani. HYQUIP SYSTEMS: CRISIL Moves C on INR8.66cr Debt to Not Cooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Hyquip Systems Limited (HSL) to 'CRISIL C/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10.2 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 8.66 CRISIL C (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with HSL for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 HSL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on HSL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of HSL to 'CRISIL C/CRISIL A4 Issuer not cooperating'. HSL, incorporated in 1987 at Hyderabad, is a closely held public-limited company promoted by Mr. K Balakrishna Reddy. The company manufactures solutions for material handling, including designing, installation, and commissioning, and operation and maintenance solutions, mainly for steel, coal, power, cement, paper, food, sugar, pharmaceuticals, and chemicals industries. The company is a part of the Hyquip group, which has diversified into municipal solid waste processing machinery. KUMAR FEEDS: CRISIL Moves B on INR4.22cr Debt to Stable -------------------------------------------------------- Due to inadequate information, CRISIL, in line with Securities and Exchange Board of India guidelines, had migrated the rating on the long-term bank facilities of Kumar Feeds and Biotech Private Limited (KFBPL) to 'CRISIL B/Stable Issuer Not Cooperating'. However, management subsequently started sharing information necessary for carrying out a comprehensive rating review. Consequently, CRISIL is migrating the rating to 'CRISIL B/Stable' from 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Proposed Fund- 3.78 CRISIL B/Stable (Migrated from Based Bank Limits 'CRISIL B/Stable ISSUER NOT COOPERATING') Term Loan 4.22 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') The rating continues to reflect KFBPL's weak financial risk profile and small scale of operations. These weaknesses are partially offset by the extensive experience of the promoters in the poultry feed industry. Key Rating Drivers & Detailed Description Weaknesses * Weak financial risk profile: The financial risk profile is likely to remain below average, despite marginal improvement, over the medium term. Networth was modest at INR1.43 crore as on March 31, 2019, with gearing at 2.90 times. Debt protection metrics were average, as reflected in interest coverage and net cash accrual to total debt ratio of 1.08 times and 0.01 time, respectively, in fiscal 2019. * Small scale of operations: Scale of operations is modest, as reflected in turnover of INR1.55 crore in fiscal 2019. Revenue is estimated at INR7.40 crore in fiscal 2020. Commencement of the manufacturing facility should support revenue growth in the medium term. Strength * Extensive industry experience of the promoters: Longstanding presence of over two decades in the poultry feed industry has helped the promoters gain a strong understanding of local market dynamics, anticipate price trends, and calibrate purchase and stock decisions. Funding support from the promoters through infusion of equity will also support the financial risk profile and liquidity. Liquidity Poor Expected cash accrual of INR0.03 crore over the medium term will be insufficient against debt obligation of INR0.20 crore. Bank limit utilisation was high, averaging around 90% over the six months through May 2020. However, unsecured loans from the promoters will be used to meet debt obligation. Outlook: Stable CRISIL believes KFBPL will continue to benefit from the extensive experience of its promoters. Rating Sensitivity Factors Upward factors: * Steady growth of more than 20% in topline, leading to cash accrual above INR0.30 crore * Improvement in the working capital cycle Downward factors: * Decline in revenue by more than 20%, leading to lower cash accrual * Stretch in working capital cycle. KFBPL, which was incorporated in 2015, manufactures poultry feed and allied products.Operations are managed by Mr. Ajay Kumar and Mr. Uday Kumar. The company has a manufacturing capacity of 200 tonne per day. KUSALAVA FINANCE: CRISIL Cuts Rating on INR30cr Loan to B+ ---------------------------------------------------------- CRISIL has revised the rating on bank facilities of Kusalava Finance Ltd (KFL) to 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating revised from CRISIL BB-/Stable) CRISIL has been consistently following up with KFL for obtaining information through its letters dated July 3, 2020, apart from telephonic communication. However, the issuer has remained non-cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. This rating lacks a forward-looking component as it has been arrived at, without any management interaction, and is based on the best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL has not received any information on business operations of KFL, and this restricts the ability to take a forward looking view on the entity's credit quality. CRISIL believes that the rating action on KFL is consistent with 'Assessing Information Adequacy Risk'. Therefore, citing inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of KFL to 'CRISIL B+/Stable Issuer Not Cooperating'. Analytical Approach For arriving at the rating, CRISIL has considered the standalone business and financial risk profile of KFL. KFL was established by Mr. Chukkapalli Kusalava in 1986 as Cherubic Equipment Leasing & Finance Ltd; the name was changed to Chukkapalli Equipment, Leasing & Finance Ltd in 1993 and to the current one in 1999. Registered with the Reserve Bank of India as a non-deposit-taking non-banking financial company, Vijaywada-based KFL benefits from the promoter's existing network of automotive parts dealership and trading through Bharat Automobiles. Mr. Kusalava also owned a Fiat dealership, Bharat Auto Enterprises, which was discontinued in 1996 and a TVS dealership, Kusalava Motors, acquired in 1984; but did not enter the business of financing of two-wheelers until 1991. At that time, KFL was financing cars and new trucks, leveraging on the network of Bharat Automobiles. However, with the advent of competition from private sector banks in 2003, it exited the new truck financing business and shifted focus towards financing of pre-owned trucks and cars. LAXMI NARASIMHAA: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Sri Laxmi Narasimhaa Spinning Mill Private Limited (SLN) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 7 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 2 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Working Capital Term Loan 3 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SLN for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SLN, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SLN is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SLN continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2007 and based in Tiruppur, Tamil Nadu, SLN manufactures cotton yarn. ONEST MILK: CRISIL Assigns B+ Rating to INR11cr Term Loan --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank loan facilities of Onest Milk and Foods (OMF). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 10 CRISIL B+/Stable (Assigned) Proposed Working Capital Facility 1 CRISIL B+/Stable (Assigned) The rating reflect susceptibility to volatility in milk prices, changes in government regulations and epidemics in the dairy industry, and modest scale of operations. These rating weaknesses are partially offset by the extensive experience of partners. Key Rating Drivers & Detailed Description Weaknesses * Susceptibility to volatility in milk prices, changes in government regulations and epidemics in the dairy industry: The price of milk is sensitive to any adverse impact of changes in government policies, and to environmental conditions. Further regulations such as the intermittent bans imposed by the government on export of skimmed milk powder (SMP), affect procurement of milk and SMP exports, and thus, have a negative impact on industry players. Also, entities in the segment are susceptible to failure in milk production because of external factors such as cattle diseases. * Modest scale of operations: With an operating income expected at around INR20-21 crore in fiscal 2021, the scale of operations is modest, in the intensely competitive dairy products industry. OMF's small scale of operations will limit its operating flexibility. Strength * Extensive experience of the partners: The partners, Mr. Aditya Chhavdi and Dr. Bajrang Lal Gochar, have extensive experience of 15 years in real estate industry and 35 years in healthcare industry, respectively. Mr. Aditya Chhavdi has a good networking in procurement of raw milk through other family owned dairy business. Dr. Bajrang Lal Gochar is a Surgeon by profession and run his own clinic. The partners have a good reputation in the market which will help in networking to the firm. Liquidity Stretched Net cash accruals are expected at INR0.91 crore in fiscal 2021. Net cash accruals are expected at INR2.5-2.9 crore per fiscal against repayments of INR0.8-1.0 crore per fiscal over the medium term. Fund support from partners in form of unsecured loans of INR2 crore supports liquidity. The firm is in process of purchasing the business segment of dairy products of Divya Agro Food Product Private Ltd with an objective of carrying on the similar business with milk handling capacity of 31,500 Kg per day. The cost of the project is INR15.26 crore funded by INR10 crore term loan, INR3.26 crore capital, and INR2 crore USL. Outlook: Stable CRISIL believes that OMF will benefit over the medium term from its promoter extensive industry experience. Rating Sensitivity factors Upward Factors: * Substantial scale up in operations and operating profitability in the range of 11-12% leading to higher than expected net cash accruals. * Strengthening of financial risk profile while sustaining working capital cycle and continuous debt repayment Downward Factors: * Any delay in take-over of assets and hence delay in commencement of operations leading to low revenue or an operating margin below 7% thus leading to lower than expected net cash accruals * Large working capital requirements leading to further stretch in liquidity OMF, incorporated in October 2019 by Mr. Aditya Chhavdi and Dr. Bajrang Lal Gochar, is in process of purchasing the business segment of dairy products of Divya Agro Food Product Private Ltd with an objective of carrying on the similar business with milk handling capacity of 31,500 Kg per day. The facility is based in Kota, Rajasthan. PRECISE ENGINEERING: CRISIL Moves D Debt Ratings to Not Cooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Precise Engineering Company (PEC) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 6.88 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Rupee Term Loan 1.12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PEC for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 PEC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on PEC is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PEC to 'CRISIL B+/Stable Issuer not cooperating'. PEC, setup in 2004 is Nasik, Maharashtra, is a partnership firm established by Milind Borade, Suraj Borade, Mahesh Sonawane and Sudhir Bonawane. It manufactures and processes engine and automotive parts. R. G. INTERNATIONAL: CRISIL Cuts Rating on INR60cr Loan to D ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facilities of R. G. International Private Limited (RGIPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating', on account of overdue in the cash credit account. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 60 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB/Stable') CRISIL has been consistently following up with RGIPL and has sought information via letters and emails dated July 10, 2020 and July 15, 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 RGIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on RGIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the best available information, CRISIL has downgraded its rating to 'CRISIL D Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating', on account of overdue in the cash credit account. TC Agro was established as a partnership firm in 1995, with Mr. Ram Gopal Singla and Mr. Rajendra Kumar as partners. In 2002, the firm was reconstituted as a proprietorship concern, with Mr. Singla as the proprietor. The firm mills and sorts basmati rice. Its unit at Karnal, Haryana, has milling capacity of 14 tonne per hour (tph) and sorting capacity of 8 tph. RGIPL was established as a partnership firm in 2007 by Mr. Rajesh Kumar Singla and his two brothers Mr. Munish Kumar Singla and Mr. Murari Lal Singla. The firm was reconstituted as a private limited company on April 1, 2013. The company is engaged in milling & sorting of basmati rice. Its unit in Karnal has a milling capacity of 16 tph and sorting capacity of 12 tph. RAKESH CREDITS: CRISIL Moves B on INR8.5cr Debt to Not Cooperating ------------------------------------------------------------------ CRISIL has migrated its rating on the long-term bank facility and non-convertible debentures of Rakesh Credits Limited (RCL) to 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 8.5 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with RCL for getting information and requested cooperation through its letter dated June 22, 2020, July 3, 2020, 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 regarding the business operations of RCL, which restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes the rating action on RCL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated its rating on the long-term bank facility and non-convertible debentures of RCL to 'CRISIL B/Stable Issuer Not Cooperating'. Analytical Approach CRISIL has considered the business and financial risk profiles of RCL on a standalone basis. RCL is a non-deposit-accepting non-banking financial company incorporated on July 26, 1993, as a private limited company, Rakesh Trade Credits Pvt Ltd. It was reconstituted as a limited company on January 15, 1997, and renamed RCL. The company's registered office is in Chennai but it operates through a branch each in Palakkad and Malappuram (both in Kerala). It provides loans for the purchase of used vehicles. SACHDEVA HOME: CRISIL Moves B+ Debt Ratings to Not Cooperating -------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sachdeva Home Furnishing Private Limited (SHF) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 2.26 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SHF for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 SHF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SHF is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SHF to 'CRISIL B+/Stable Issuer not cooperating'. SHF, incorporated in 2007 at Panipat, manufactures mink blankets; the company started operations in November 2014. Mr. Pritam Singh, Mr. Manpreet Singh, Mr. Simarpreet Singh, Ms Inderjeet Kaur, and Ms Shivani are the promoters. SAI RAGHAVENDRA: CRISIL Keeps B+ Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Sai Raghavendra Rice Industries (Sai) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.15 CRISIL B+/Stable (ISSUER NOT COOPERATING) Long Term Loan 1.47 CRISIL B+/Stable (ISSUER NOT COOPERATING) Proposed Long Term 1.88 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING) SME Credit 0.50 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Sai for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sai, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on Sai is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Sai continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 2011 as a partnership firm, Sai Raghavendra operates a rice mill for undertaking milling and processing of paddy into rice, rice bran, broken rice, and husk. The firm commenced commercial operations in fiscal 2013 and is based in Kolkulpally, Andhra Pradesh. The managing partners, Mr. V Jagan and Mr. V Srinivas, have around 30 years of experience in similar lines of business. SAMRUDDHI REALTY: CRISIL Keeps D on INR55cr Debt in Not Cooperating ------------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Samruddhi Realty Limited (SRL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Non Convertible 55.00 CRISIL D (Issuer Not Debentures LT Cooperating) CRISIL has been following up with SRL for getting information through letters and emails, dated May 30, 2020, July 3, 2020, July 15, 2020 and July 20, 2020, apart from various telephonic communications. However, the issuer has continued to be 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 has not received any information on either the financial performance or strategic intent of the company, which restricts CRISIL's ability to take a forward-looking view on its credit quality. CRISIL believes the information available 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 the non-convertible debentures of SRL continues to be on 'CRISIL D Issuer Not Cooperating'. Also, the company has been under liquidation process since March 2020. Analytical Approach For arriving at the rating, CRISIL has taken a standalone view on the company. SRI was set up in 2003 by Mr. V R Manjunath, Mr. Hemang Rawal and Mr. Ravindra Madhudi. The company develops real estate in Bengaluru and currently undertakes only residential projects. It has around 17 lakh square foot (sq ft) of ongoing and has 23 lack sq ft of planned projects. It is listed on the Bombay Stock Exchange in the small and medium enterprise segment. SANTOSH ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Santosh Enterprises (SE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 2.25 CRISIL D (ISSUER NOT COOPERATING) Cash Credit/ 1.50 CRISIL D (ISSUER NOT Overdraft facility COOPERATING) Proposed Working 1.25 CRISIL D (ISSUER NOT Capital Facility COOPERATING) CRISIL has been consistently following up with SE for obtaining information through letters and emails dated June 29, 2020, July 10, 2020 and July 15, 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 SE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SE continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1990, SE is promoted Mr. Santosh Dalvi. The firm is engaged in the manufacturing of fabricated structures used by the windmill industry. It has a manufacturing facility in the Ambad industrial area of Nasik. SARA SUOLE: Ind-Ra Cuts & Moves LongTerm Issuer Rating to 'BB+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Sara Suole Private Limited's (Sara) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB' and has simultaneously migrated it to the non-cooperating category. The issuer did not participate in the surveillance exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR2.72 bil. Fund-based working capital limit downgraded and migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR150 mil. Non-fund-based working capital limit downgraded and migrated to non-cooperating category with INDA4+ (ISSUER NOT COOPERATING) rating; and -- INR677.8 mil. Term loan due on March 2023 downgraded and migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The downgrade reflects multiple instances of overuse of Sara's fund-based limits over the nine months ended March 2020, as confirmed by bankers. However, the account has been regular for the three months ended June 2020 owing to the company availing the Reserve Bank of India-prescribed moratorium. Additionally, considering the impact of operational disruption due to COVID-19 outbreak, Ind-Ra expects deterioration in Sara's financial and operating performance over the short-to-medium term The ratings have been migrated to the non-cooperating category as the company did not provide Ind-Ra with its revised projections data, FY20 provisional financials, bank statements and limit utilization, and the updated management certificate and the non-scheduling of management meeting in a timely manner due to the COVID-19-led lockdown. COMPANY PROFILE Sara was incorporated on 26 April 2001 as a private limited company to manufacture leather footwear soles, uppers, and shoes. The company has an annual manufacturing capacity of more than 3 million pairs of shoes and 3.6 million pair of soles. It exports to over 20 countries worldwide. In the premium segment, the company holds 12% of the domestic market share. SB CARS: CRISIL Lowers Rating on INR12cr Cash Loan to B+ -------------------------------------------------------- CRISIL has revised the ratings on bank facilities of SB Cars Private Limited (SBCPL) to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Electronic Dealer 11 CRISIL B+/Stable (ISSUER NOT Financing Scheme COOPERATING; Revised from (e-DFS) 'CRISIL BB/Stable ISSUER NOT COOPERATING') Proposed Fund- 1 CRISIL B+/Stable (ISSUER NOT Based Bank Limits COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Term Loan 3 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Working Capital 3 CRISIL B+/Stable (ISSUER NOT Facility COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SBCPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SBCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SBCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBCPL Revised to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. SBCPL was incorporated in March 2008 and operates as an authorised dealer for vehicles of MSIL in Kanpur, Unnao, Orai and Kalyanpur (all in Uttar Pradesh). Mr. Hari Kishan Oberoi and his wife, Ms Sanjana Oberoi, are the promoters. Mr. Hari Kishan Oberoi manages the operations, with support from other directors. SHUNTY BUNTY: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating for the bank facilities of Shunty Bunty Automobiles Private Limited (SBAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14.75 CRISIL B+/Stable (ISSUER NOT COOPERATING) Electronic Dealer 10 CRISIL B+/Stable (ISSUER NOT Financing Scheme COOPERATING) (e-DFS) Loan Against 2 CRISIL B+/Stable (ISSUER NOT Property COOPERATING) Term Loan 3.25 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SBAPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SBAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SBAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBAPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Based in Kanpur, SBAPL was started in October 2004 by Mr. Hari Kishan Oberoi and is promoted by the Oberoi family. In addition to dealing with MHCVs, the company sells spares and lubricant oils, and now owns one sales, spares, and services (3S) in Chakarpur, Kanpur. SMRITI APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Smriti Apparels Private Limited (SAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter of Credit 3 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 0.24 CRISIL D (ISSUER NOT COOPERATING) Packing Credit 9.50 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SAPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. SAPL was incorporated in 2003 and is promoted by the Gurgaon, Haryana-based Arora family. The company manufactures leather jackets and accessories. Mr. Inder Arora and Ms Meenu Arora, the company's directors, manage its operations. SURYA CONTRACTORS: CRISIL Lowers Rating on INR25cr Loan to B+ ------------------------------------------------------------- CRISIL has revised the the ratings on bank facilities of Surya Contractors Private Limited (SCPL) to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Proposed Long Term 25 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SCPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SCPL Revised to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Surya Contractors Pvt Ltd (SCPL) was incorporated in 2009 by Mr. Rajesh Mittal and Mr. Harpal Singh. The company is a civil subcontractor based out of Punjab and undertakes subcontracting in Punjab and Delhi only. T.R. CHEMICALS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of T.R. Chemicals Limited (TRCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 9 CRISIL D (ISSUER NOT COOPERATING) Funded Interest 0.86 CRISIL D (ISSUER NOT Term Loan COOPERATING) Proposed Long Term 2.88 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 1.91 CRISIL D (ISSUER NOT COOPERATING) Working Capital 1.35 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with TRCL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of TRCL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on TRCL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TRCL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. TRCL was established as a private limited company in 1997, promoted by Mr. Sanjeev Kapoor and Mr. Mukesh Kumar Agarwal. It was subsequently reconstituted as a closely held limited company. TRCL manufactures sponge iron and phenolic resins at its facilities in Barpali (Orissa). THAMPURAN CASHEWS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Thampuran Cashews (TC) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING) Packing Credit 5 CRISIL D (ISSUER NOT in Foreign Currency COOPERATING) CRISIL has been consistently following up with TC for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of TC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on TC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TC continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Set up as a proprietorship concern in 2007 by Mr. Pepsin Raj, TC processes raw cashew nuts. The firm is based in Kollam (Kerala). TUSHAR FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Tushar Fabrics continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 1.0 CRISIL D (ISSUER NOT COOPERATING) Term Loan .62 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Tushar Fabrics for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Tushar Fabrics, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on Tushar Fabrics is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Tushar Fabrics continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Tushar Fabrics, formed in 2005 by Mr. Jatinbhai Madrasi and Ms Vandanaben Madrasi, weaves and knits grey fabric out of viscose and cotton yarn at its facility at Surat (Gujarat). The fabric is sold in the domestic market, and is primarily used for women's dress material. VAISHNOVI INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Vaishnovi Infratech Limited (VIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 55 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 25 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with VIL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on VIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VIL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. VIL, set up in 2006 by Mr. T Ganagadhar Rao and his family members, undertakes civil construction, and irrigation and road works. It is based in Hyderabad. VAMA WOVENFAB: CRISIL Moves D Debt Ratings to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Vama Wovenfab Private Limited (VWPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.50 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 10.57 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with VWPL for obtaining information through letters and emails dated July 10, 2020 and July 15, 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 VWPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on VWPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of VWPL to 'CRISIL D Issuer not cooperating'. VWPL is a Daman, based company engaged in manufacturing of woven fabric, the company is managed by Mr. Vaibhav Gupta and Mr. Suresh Gupta. VARALAKSHMI SOLVENT: CRISIL Moves B+ Debt Rating to Not Cooperating ------------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Sri Varalakshmi Solvent Oils Private Limited (SVSOPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL B+/Stable ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SVSOPL for obtaining information through letters and emails dated April 29, 2020, July 10, 2020 and July 15, 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 SVSOPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SVSOPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of SVSOPL to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2010 and promoted by Mr. Visweswara Rao and family, SVSOPL manufactures rice bran oil at its plant in Kotabammali, Andhra Pradesh. Commercial operations began from January 2012. VELOHAR INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Velohar Infra Private Limited (Velohar) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 2 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with Velohar for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Velohar, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on Velohar is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Velohar continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Velohar, incorporated in 2009 and promoted by Mr. G Thiyagu and Ms. S Vijayalakshmi, is an engineering, procurement, and construction (EPC) contractor in the infrastructure segment. VENKATALAKSHMI PAPER: CRISIL Cuts Rating on INR22.5cr Loan to B+ ---------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Venkatalakshmi Paper And Boards Private Limited (VPBPL) revised to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 22.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with VPBPL for obtaining information through letters and emails dated April 18, 2020 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VPBPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on VPBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VPBPL Revised to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. VPBPL formerly, VG Paper and Boards Pvt ltd has been in the newsprint business since 1986. The current promoters took over the company in December 2014. The company manufactures newsprint and has an installed capacity of 120 tonne per day. Daily operations are managed by Mr. Rahul. VINDHYA CEREALS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating for the bank facilities of Vindhya Cereals Private Limited (VCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 32 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 1.62 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 4.38 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with VCPL for obtaining information through letters and emails dated 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 Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of VCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on VCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VCPL continues to be 'CRISIL D Issuer Not Cooperating'. VCPL, established in 2009 by Mr. Kamlesh Kumar Argal, mills and processes basmati rice. The manufacturing facility is at Obedullaganj in Raisen, Madhya Pradesh. ================= I N D O N E S I A ================= ALAM SUTERA: Fitch Cuts IDR to CCC- on Heightened Liquidity Risks ----------------------------------------------------------------- Fitch Ratings has downgraded Indonesia-based property developer PT Alam Sutera Realty Tbk's Long-Term Issuer Default Rating to 'CCC-' from 'B-'. At the same time, the ratings on the company's USD115 million notes due 2021 and USD370 million notes due 2022, issued by its wholly owned subsidiary, Alam Synergy Pte Ltd, and guaranteed by ASRI, have also been downgraded to 'CCC-' from 'B-'. The Recovery Rating on the notes remains at 'RR4'. All ratings were removed from Rating Watch Negative, on which they were placed on April 20, 2020. The downgrade reflects ASRI's heightened liquidity risk from the company's limited progress in securing refinancing for the USD115 million bond due April 22, 2021, and the rising execution risk on its repayment options including securing additional bank loans or completing meaningful asset sales amid the coronavirus pandemic-led economic downturn and disruption in capital and credit markets. ASRI announced on July 20, 2020 that it is planning to issue a new bond of up to USD485 million to refinance the USD115 million 2021 bond and the USD370 million 2022 bond, subject to shareholders' approval at a general meeting planned for August 26, 2020. However, Fitch believes the transaction is subject to high execution risks. KEY RATING DRIVERS Rising Refinancing Risks: Fitch believes ASRI faces a high level of refinancing risk on its USD115 million unsecured notes in light of its forecast of weak cash generation and limited access to new debt amid tighter capital market conditions. ASRI reported attributable pre-sales fell 21% yoy to IDR1 trillion in 1H20. Fitch believes ASRI's pre-sales and cash collections will remain muted in the next six to 12 months and therefore Fitch does not expect the company to have sufficient operating cash flows to meet the April 2021 bond maturity. Fitch believes ASRI's access to capital markets and banks has tightened meaningfully amid the economic and financial turmoil. Volatility in the Indonesian rupiah has been significant in the year to date and investors in both offshore and onshore capital markets have become more selective. Fitch believes domestic banks are likely to focus on preserving liquidity and prioritising higher-quality borrowers from less-cyclical sectors amid the current environment. Lower Bulk Land Sales: Fitch does not expect ASRI to be able to complete meaningful bulk land sales to China Fortune Development Co, Ltd. (CFLD, BB-/Stable) in 2H20, which should lead to weaker cash flow from operations this year. ASRI's cash flows have historically benefitted from its partnership with CFLD, as it has sold around IDR1 trillion in land bank on average annually to CFLD in 2016-2019 in and around its Suvarna Sutera township in Pasar Kemis outside Jakarta. These sales helped to make up for slower pre-sales at ASRI's other projects. ASRI sold IDR200 billion in land to CFLD in 1H20 (2019: IDR927 billion) and has collected the full proceeds as of today. ESG - Governance: Fitch has revised ASRI's ESG relevance score for Management Strategy under its Environmental, Social, and Governance framework to 4 from 3 due to its weak operational execution, which has led to delays in conducting significant asset sales, such as its office building — The Tower — in Jakarta's central business district. The score has a negative effect on the company's credit profile and is relevant to the ratings in conjunction with other factors. DERIVATION SUMMARY ASRI's 'CCC-' rating reflects the high liquidity and refinancing risks surrounding its ability to repay the USD115 million bond due April 22, 2021. The company's ability to access credit and capital markets appears to have deteriorated in light of banks' and investors' greater risk aversion amid the current pandemic-driven economic downturn. KEY ASSUMPTIONS Fitch's Key Assumptions Within its Rating Case for the Issuer - Attributable property pre-sales of IDR1.5 trillion in 2020 - EBITDA margins of around 35%-40% in 2020-2021 - ASRI to spend around IDR200 billion-300 billion on discretionary land banking annually in 2020-2021 RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: Fitch may upgrade ASRI's ratings if the company is able to meaningfully improve its liquidity such that it is able to address its near-term debt maturities, particularly its USD115 million bond Factors that could, individually or collectively, lead to negative rating action/downgrade: Fitch may downgrade ASRI's ratings by one or more notches if the company fails to adequately address its debt-servicing requirements 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 Weak Liquidity; Heightened Refinancing Risks: Fitch believes ASRI may not be able to generate sufficient operating cash flows to meet the maturity of its USD115 million bond and Fitch expects the company's access to capital and credit markets to weaken significantly in the current environment. The company's estimated interest payment in 2H20 of around IDR320 billion appears manageable, based on its estimates that ASRI had a consolidated cash balance of around IDR900 billion at end-June 2020. The company indicated that it is in negotiations with banks to secure additional funding, and is also concurrently planning to issue a new bond to refinance both its 2021 and 2022 bonds, but Fitch believes both alternatives entail high execution risks. SUMMARY OF FINANCIAL ADJUSTMENTS ASRI reports land-purchase costs under investment cash flow. Fitch removed these costs from cash flow from investments and included them under cash flow from operations as working capital (payments made to suppliers under the direct cash flow method). The company reports land bank as a long-term asset on its balance sheet. Fitch has classified land bank as part of current inventory due to the nature of ASRI's business of land development and sales. This adjustment was also reflected in the cash flow statement. Fitch has adjusted all taxation to be incorporated in a single line after operating income. Fitch has included around IDR200 billion of cash in an escrow account subject to CFLD's co-signature as restricted cash, alongside cash held as collateral for mortgages extended to ASRI's customers. The blocked cash for land purchases has also been removed from the net debt/adjusted inventory ratio's denominator to reflect that it is earmarked against future inventory. 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 ASRI's ESG relevance score for Management Strategy was revised to 4 from 3 due to its weak operational execution, which has led to delays in conducting significant asset sales. The governance score of 4 has a negative effect on the credit profile, and is relevant to the ratings in conjunction with other factors. Except for the matters discussed, the highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit neutral or have only a minimal credit impact on the entity(ies), either due to their nature or the way in which they are being managed by the entity(ies). GARUDA INDONESIA: Cash Pile Thinning Fast as Losses Rise -------------------------------------------------------- Harry Suhartono at Bloomberg News reports that Indonesia's flag carrier needs cash fast as losses soar past a half-billion dollars and unpaid bills pile up, yet negotiations for government aid move slowly and still may not yield enough to cover the shortfall. A first-half loss of $713 million, announced last week, was just the latest piece of bad news for PT Garuda Indonesia. Bloomberg says the airline already missed a payment on an asset-backed security in late July, shortly after extending the repayment of a $500 million sukuk -- an Islamic bond -- by three years because of its cash crunch. And it's facing a lawsuit in London over aircraft rental fees. One measure shows Garuda at risk of bankruptcy. According to Bloomberg, some salvation could come from the government, which in May pledged to extend IDR8.5 trillion (US$580 million) to the airline as part of a $10 billion package to a dozen state-owned companies. But it hasn't come yet. Garuda President Director Irfan Setiaputra said he was still in talks with authorities over the weekend, without giving any timing for the injection. Analysts warn it is unlikely to suffice anyway, the report states. "It would be difficult for the company to stand on its own with only a IDR8.5 trillion bailout," Bloomberg quotes Chandra Pasaribu, head of research at Yuanta Securities, as saying. "Without growth of its top line, it won't be enough." While passenger traffic improved slightly in June from May after the government eased some travel restrictions, the number of people flown by Garuda was still down 92% from a year earlier, the carrier said on Aug. 4, Bloomberg relays. Garuda's Z-score, a method developed by Edward Altman in the 1960s to predict bankruptcies, was -0.05 at the end of the first quarter, its lowest in at least a decade, according to Bloomberg. The most recent figures on traffic show Garuda's passenger numbers plunged 98% in May from a year earlier, and by mid-July it had furloughed 825 staff after previously cutting salaries. Indonesia remains in the grip of the pandemic with more than 113,000 confirmed cases, Bloomberg discloses. The International Air Transport Association doesn't expect the airline industry to fully recover before 2024, a bleak outlook that is reflected in Garuda's share price, which has slumped more than 50% this year. Bloomberg relates that Garuda said in its earnings statement that it's in talks with AerCap Holdings NV to restructure contracts after the Dublin-based firm filed a lawsuit on unpaid aircraft leases. Garuda said it has "negotiated with Aercap several times." The airline also is in payment talks with Helice Leasing SAS. Bloomberg says Garuda and its low-cost unit, Citilink, lease most of their 210 aircraft. Rental costs were the equivalent of about 25% of the company's revenue last year, the most among nearly 60 carriers tracked by Bloomberg. Setiaputra, who took over Garuda in January, just as the virus was erupting in China, has said there would be a review of the airline's fleet and network. At the end of 2019, Garuda had $299 million in cash and cash equivalents, Bloomberg discloses. That figure shrunk to just $165 million at the end of June. Operating expenses amounted to $1.6 billion in the first six months of this year, with about $700 million of that in cash expenses to suppliers and staff salaries. "Garuda is clearly losing money real fast," Bloomberg quotes Shukor Yusof, founder of aviation consulting firm Endau Analytics Pte in Malaysia, as saying. "I can't see how the government can evade bailing them out or not provide meaningful assistance any longer." Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. ========= J A P A N ========= JAPAN: Said to be Short of Rescue Plans for Regional Lenders ------------------------------------------------------------ Leika Kihara and Takahiko Wada at Reuters reports that the coronavirus pandemic is deepening the pain for Japan's regional lenders, heightening concerns that a potential wave of business closures will test policymakers' ability to avert a damaging banking-sector crisis. According to Reuters, many central government and bank officials see the risk of a crisis emerging in the next few months, when more struggling firms could go under and hit regional banks already weakened by a shrinking domestic economy and years of ultra-low interest rates. Yet officials still have few plans besides prodding the ailing lenders to recapitalise or consolidate - and little clue on how to do this in an orderly fashion, five government and banking sources with direct knowledge of the matter said, Reuters relays. "Banks are aggressively lending now because the government is asking them to, but that could change once it becomes clearer some companies cannot survive," Reuters quotes one of the people as saying. "The key test will come in autumn, when liquidity problems turn into solvency problems." With Tokyo still encouraging regional banks to pump money to needy borrowers, efforts to mitigate a subsequent build-up of bad loans will take a back seat, another source said. "In the end, there's no other option besides prodding the weaker banks to consolidate, restructure themselves or seek government capital," the second person said. The sources - policymakers with direct knowledge of the banking industry and the discussions on dealing with its troubles - declined to be named due to the sensitivity of the matter, the report notes. Reuters notes that a wall of money printed by the central bank has kept a lid on bankruptcies and job losses, even as Japan's recession deepens. But the prolonged battle with COVID-19 is straining even the strongest regional banks in places like Osaka and Kyoto. According to Reuters, regional economies are more vulnerable to shocks than big cities because of their over-reliance on sectors such as tourism, and fewer jobs as more firms move out of ageing, dwindling local markets. After Japan closed its borders to contain the pandemic, Osaka-based hotel chain White Bear Family went under with JPY27.8 billion (US$262 million) in liabilities - the biggest virus-related bankruptcy so far in Japan. That left regional lender Kansai Mirai Financial Group with JPY800 million in unrecoverable loans. The group expects credit costs to nearly triple to JPY12.5 billion this year, the report says. Osaka saw 147 companies go under in June, exceeding Tokyo as the hardest hit centre in Japan, Reuters discloses citing think tank Tokyo Shoko Research. "The damage from the pandemic (on the region's economy) will probably last for about two years," Kansai Mirai President Tetsuya Kan told Reuters. Already under the wings of nationwide lender Resona Group, Kansai Mirai can survive by cutting costs, consolidating branches and earning more advisory fees, Kan said. Reuters says Bank of Kyoto faces a similar plight. It set aside JPY5 billion to guard against bad loans in the year to March, 10 times the average in the past five years, as soft global demand and plunging overseas visitor numbers hit borrowers. Regional banks were already reeling from lending margins that have sunk to a meagre 0.2%, the report states. While their average capital-to-asset ratio, at 9.52%, is more than double the minimum required 4%, over 70% of regional banks suffered falling profits or chalked up losses in the year ending March, according to Reuters. Even before COVID-19 erupted, their combined bad loans were worth JPY3.7 trillion, nearly four times combined profits from core operations. "At present, Japan's financial system is stable" with regional banks having sufficient capital buffers, the country's banking regulator Financial Services Agency (FSA) said. "But we will closely monitor the situation as (COVID-19) could potentially affect various factors such as their credit costs and securities holdings," the agency told Reuters in response to a request for comment. =============== M A L A Y S I A =============== PASDEC HOLDINGS: Has Until Aug. 7 to Submit Annual Report --------------------------------------------------------- The Star reports that Pasdec Holdings Bhd has until Aug. 7 to submit its outstanding annual report for the financial year ended Dec. 31, 2019 after it failed to do so despite an earlier extension. The Star relates that Bursa Malaysia Securities said on Aug. 5 it had on June 19 extended the deadline until July 31 for Pasdec to submit the AR that included the annual audited financial statements together with the auditors' and directors' reports. However, the Pahang-based property developer failed to submit its AR 2019 to Bursa Securities for public release within the approved timeline. According to The Star, Bursa Securities said if a listed issuer fails to issue the outstanding financial statements within five market days after the expiry of the relevant timeframes it shall suspend the trading in the securities of such listed issuer. The suspension shall be effected on the next market day after the suspension deadline. "In view of the above and in the event that Pasdec is unable to submit the outstanding AR 2019 on or before (Friday) Aug. 7, 2020, the trading in the above company's securities will be suspended with effect from 9:00 a.m., Monday, Aug. 10 until further notice. "If a listed issuer fails to issue the outstanding financial statements within six months from the expiry of the relevant timeframes, in addition to any enforcement action that Bursa Securities may take, de-listing procedures shall be commenced against such listed issuer," it said. Pasdec Holdings Berhad is an investment holding company. The Company, through its subsidiaries, develops and manages properties, including resorts and condominium, trades building materials, and manufactures bricks. Pasdec also has operation in quarrying and cement manufacturing. ================= S I N G A P O R E ================= PSL HOLDINGS: To Seek Voluntary Liquidation ------------------------------------------- Sharanya Pillai at The Business Times reports that the board of watch-listed PSL Holdings has decided that it is "in the best interests of shareholders" for the firm to undergo a voluntary liquidation, after being served a delisting notification by the Singapore Exchange. In a bourse filing on Aug. 4, PSL noted that it has not received a firm exit offer proposal from any party after it announced the receipt of the delisting notification on June 22. None of its existing shareholders are also in a position to make an exit offer. PSL is now in the process of appointing liquidators, BT relates. It will convene an extraordinary general meeting to seek the approval of shareholders. A circular to shareholders will be sent out in due course. PSL started off in the early 1980s providing ground engineering services for the construction industry, according to BT. It later grew into a marine anchor specialist for wharves and jetties in oil refineries and shipyards, and in the soil improvement market. Shares of PSL last traded at SGD0.148 before trading in the counter was suspended on July 20, BT notes. PSL Holdings Limited is an investment holding company. Through its subsidiaries, the Company provides civil, mechanical, structural, construction, bored piling, and ground engineering works, soil investigation and instrumentation. PSL also trades and sources hardware, machinery parts, and electrical goods, as well as trades and rents cranes and equipment. ===================== S O U T H K O R E A ===================== ASIANA AIRLINES: Set to Go Under KDB Management ----------------------------------------------- Pulse News reports that Asiana Airlines and its family are headed to go under creditors led by Korea Development Bank (KDB) as the state lender more or less gave up on HDC Hyundai Development by blaming the bidder for stalling and wrecking the buyout deal. "Kumho Industrial (parent of Asiana Airlines) and KDB have not done anything wrong (during the deal process), and the full responsibility of a deal collapse lies with HDC Hyundai Development," the report quotes KDB Chairman Lee Dong-gull as saying during an online briefing on Aug. 3. Lee advised HDC Hyundai Development against claiming back its advance payment since it had walked out of the deal, Pulse News relates. "It won't be desirable for the issue (redemption of earlier payment) to go to court as it does not help creditors' efforts to find alternative bidder or normalize Asiana Airlines," the report quotes KDB Vice Chairman Choi Dae-hyun as saying. HDC Hyundai Development has handed over KRW250 billion (US$209 million) for its near $2 billion offer in December to buy out the full-service airliner with two budget carriers under its arm, Pulse News recalls. It recently has called for a fresh round of due diligence until the end of the year to reassess the buyout value to take into account of the worsened business state and outlook from pandemic-battered air travel industry. According to Pulse News, Kumho Industrial, parent of Asiana Airlines, sided with the creditors, saying "if HDC Hyundai Development comes forward in all sincerity to the negotiation table, we can meet and make progress any time." KDB pressed the HDC consortium to make clear position on its acquisition offer by August 12 or the agreement would be called off. If the deal flops, the airliner will be put under creditor management or KDB, the report notes. "We could become stakeholder through converting perpetual bonds into equity," Choi said. He said additional bailout could go into the airliner to normalize the company and reattempt sale upon improvement in corporate and market conditions, Pulse News relays. About Asiana Airlines Headquartered in Osoe-Dong Kangseo-Gu, South Korea, Asiana Airlines Incorporated is engaged in air transportation, engineering, construction, facilities, electricity, ground handling, catering, communication, logo products and e-business. Asiana Airlines is a unit of the Kumho Asiana Group, a South Korean conglomerate whose business portfolio includes tire manufacturing and chemical production. As reported in the Troubled Company Reporter-Asia Pacific on July 28, 2020, Yonhap News Agency related that Asiana Airlines' net losses deepened for the January-March quarter to KRW683.26 billion from KRW89.18 billion a year earlier. The airline has suspended most of its flights on international routes as more than 180 countries have strengthened entry restrictions amid coronavirus fears this year. Yonhap News related that state lenders Korea Development Bank and the Export-Import Bank of Korea planned to inject a combined KRW1.7 trillion into Asiana to help the airline stay afloat. In self-help measures, Asiana has had all of its 10,500 employees take unpaid leave for 15 days a month since April until business circumstances normalize, Yonhap noted. Asiana's executives have also agreed to forgo 60% of their wages, though no specific time frame was given for how long the pay cuts will remain in effect. =============== T H A I L A N D =============== NOK AIR: Blames No-Show MPs on THB3.5-Mil. Losses ------------------------------------------------- Bangkok Post reports that more than 100 former and incumbent MPs are being blamed for Nok Air incurring 3.5 million baht in losses for flights they booked but never showed up for, according to Somboon Uthaiwiankul, secretary of House Speaker Chuan Leekpai. According to Bangkok Post, Mr. Somboon said the issue was raised by executives of the airline during a conversation with Mr. Chuan recently. They met the House speaker to offer him their best wishes on his birthday on July 28. The executives told Mr Chuan that 113 former and current MPs have not paid for seats they reserved on Nok Air flights which they later failed to show up for, said Mr. Somboon, the report relays. Bangkok Post says the airline could not make the reserved seats available to other customers and the MPs did not cancel the reservations, which meant the company, already battered financially, incurred further losses. Nok Air has filed for rehabilitation protection with the Central Bankruptcy Court. Bangkok Post relates that Mr. Somboon said the airline complained that it could not obtain reimbursements from parliament because the MPs did not actually travel on the flights. Normally, low-cost carriers such as Thai AirAsia require payments for air tickets to be made at the time of booking. The airfares become expensive during peak periods. Mr. Somboon said at least five MPs each caused the airline losses of over THB100,000. They are well-known and wealthy people. According to the report, Mr. Somboon said Mr. Chuan deemed the issue a personal matter to be settled by the individual MPs. It is the responsibility of the MPs to account for their own actions, Mr. Somboon said quoting Mr. Chuan. At the end of last month, Nok Air was reported to have THB26.79 billion worth of debt as of March 31, the report discloses. Nok Air chief executive Wutthiphum Jurangkool said Covid-19 prevented the airline from flying its 18 international routes, while domestic flights were at 30% of its pre-pandemic schedule, adds Bangkok Post. About Nok Airlines Nok Airlines Public Company Limited (SET:NOK) -- https://www.nokair.com/ -- is a Thailand-based low-cost airline operator. The Company offers point-to-point regional air services using small to medium-sized aircrafts. Its services include scheduled air services, which operates flights to various destinations in Thailand and abroad, including Chiang Mai, Hat Yai, Krabi, Vientiane, Yangon and others; charter flight services, which offers flights to group passengers and additional services for scheduled flight passengers, including booking services via Internet, airport counter, call center services, counter check-in, online check-in services, reservation change services, excess baggage service, and others. The Company also offers in-flight food and beverages, as well as souvenir merchandise to its customers. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 3, 2020, Nikkei Asian Review said loss-making Nok Airlines, a budget carrier listed on the Stock Exchange of Thailand, will undergo a court-supervised rehabilitation, becoming the second Thai airline to file such a request this year, following national flag carrier Thai Airways International. The Central Bankruptcy Court has issued an order to accept the petition for consideration, according to a Nok Air statement filed at the SET on Aug. 1, the Nikkei related. The carrier's board of directors decided to lodge the application at a meeting held on July 31; it was submitted the same day, the Nikkei said. ********* 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 ***