/raid1/www/Hosts/bankrupt/TCRAP_Public/200817.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
Monday, August 17, 2020, Vol. 23, No. 164
Headlines
A U S T R A L I A
ANAHITA HOSPITALITY: CRISIL Moves B Rating From Not Cooperating
MY BEST GIFT: Second Creditors' Meeting Set for Aug. 21
C H I N A
YESTAR HEALTHCARE: Moody's Cuts CFR to B3, Outlook Still Negative
ZIJIN MINING: Moody's Assigns Ba1 CFR, Outlook Stable
I N D I A
AKASH PACKTECH: Insolvency Resolution Process Case Summary
AMP UNIVERSAL: CRISIL Lowers Ratings on INR18cr Loans to B
ASHWANI KUMAR: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
AXEL POLYMERS: CRISIL Lowers Rating on INR5cr Cash Loan to D
AZAFRAN INNOVACION: Ind-Ra Moves B- LT Rating to Non-Cooperating
BHADORA INDUSTRIES: CRISIL Keeps B+ Rating on INR3.20cr Loan
BHAGWATI GEMS: Ind-Ra Moves 'BB-' Issuer Rating to Non-Cooperating
BHUSHAN POWER: Final Hearing in Insolvency Case Set for Sept. 8
BMR BLUE: Ind-Ra Gives 'B+' LongTerm Issuer Rating, Outlook Stable
CARTON AND CARTON: CRISIL Lowers Rating on INR5cr Loan to B
CIM TOOLS: CRISIL Withdraws B+ Rating INR2cr Cash Loan
D.R. SHAH CONSTRUCTION: Ind-Ra Moves B+ Rating to Non-Cooperating
DHANASHREE AGRO: CRISIL Moves D Debt Ratings From Not Cooperating
FLAMINGO INN: CRISIL Keeps B Debt Rating in Not Cooperating
G.S. AUTO INT'L: CRISIL Withdraws D Rating on INR27.25cr Cash Loan
GIRIRAJ TRADING: CRISIL Keeps B Debt Ratings in Not Cooperating
GLOBUSARIMA BUILDERS: CRISIL Keeps B Rating in Not Cooperating
GODAWARI INDUSTRIAL: CRISIL Cuts Rating on INR10cr Loan to B
GREATECH TELECOM: Insolvency Resolution Process Case Summary
GREEN INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
GSR AND KKR EDUCATIONAL: CRISIL Keeps B Ratings in Not Cooperating
HELIO ENGINEERING: CRISIL Lowers Rating on INR3.5cr Loan to B
KARNATAKA TURNED: CRISIL Reaffirms B Rating on INR5.38cr Loan
KETAN CONSTRUCTION: Insolvency Resolution Process Case Summary
KEVIN PROCESS: CRISIL Withdraws B+ Rating on INR4cr Loan
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps 'D' Rating in Non-Cooperating
KRISHNA BHAGAVAN: CRISIL Reaffirms B+ Rating on INR5cr Loan
MAHARASHTRA FASTENERS: Ind-Ra Gives 'BB' LongTerm Issuer Rating
NOVA ENT: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating
NSL TEXTILES: CRISIL Reaffirms D Rating on INR168.39cr Cash Loan
OASIS ALCOHOL: Insolvency Resolution Process Case Summary
OURANOS FOODS: Insolvency Resolution Process Case Summary
PADMAVATHI COTTON: CRISIL Lowers Rating on INR5.79cr Loan to D
PAHARIMATA COLD: CRISIL Raises Rating to on INR5.11cr Loan to B
POSCO-POGGENAMP: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
PREETHI HOSPITALS: Ind-Ra Moves BB- LT Rating to Non-Cooperating
QUEST INFOSYS: CRISIL Moves B+ Debt Ratings From Not Cooperating
RAYALASEEMA STEEL: CRISIL Cuts Rating on INR20cr New Loan to B
RAYANA PAPER: Ind-Ra Assigns 'BB+' LT Issuer Rating, Outlook Stable
RELIANCE COMMUNICATIONS: Lenders, Gov't. Diverge on Spectrum Sale
SAI FERTILITY: CRISIL Reaffirms B Ratings on INR15.5cr Loans
SAI LAXMI: CRISIL Reaffirms B+ Ratings on INR7.5cr Loans
SCL HEALTHCARE: CRISIL Reaffirms B Ratings on INR98cr Loans
STANDARD CORP: CRISIL Hikes Rating on INR14.5cr Loan to B
SYMTRONICS AUTOMATION: CRISIL Reaffirms B+ Rating on INR6cr Loan
TRN ENERGY: Ind-Ra Affirms 'D' LT Issuer Rating, Outlook Stable
ZICOM SAAS: Insolvency Resolution Process Case Summary
I N D O N E S I A
ALAM SUTERA: S&P Lowers LongTerm ICR to 'CCC-', Outlook Negative
MODERNLAND REALTY: S&P Lowers Rating on Unsecured Notes to 'CC'
PP PROPERTI: Fitch Cuts LT Rating to CCC(idn) on Refinancing Risks
J A P A N
ANA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to BB-
N E W Z E A L A N D
LSG SKY: Catering Services Company Axes More Than 450 Jobs
S I N G A P O R E
HYFLUX LTD: Group of Bank Lenders Files Judicial Management Bid
PRIMA GROUP: Revolving Restaurant Closes After 43 Years
XIHE HOLDINGS: Placed Under interim Judicial Management
S O U T H K O R E A
SSANGYONG MOTOR: Auditor Raises Going Concern Doubt
T A I W A N
UNITED MICROELECTRONICS:Egan-Jones Hikes Sr. Unsec. Ratings to BB+
- - - - -
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A U S T R A L I A
=================
ANAHITA HOSPITALITY: CRISIL Moves B Rating From Not Cooperating
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with the Securities
and Exchange Board of India guidelines, had migrated its ratings on
the long-term bank facilities of Anahita Hospitality LLP (AHL) to
'CRISIL B/Stable Issuer Not Cooperating'. However, AHL has started
sharing the information necessary for a comprehensive review of the
ratings. Consequently, CRISIL is migrating its rating to 'CRISIL
B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 0.12 CRISIL B/Stable (Migrated
Bank Loan Facility from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
Term Loan 46.48 CRISIL B/Stable (Migrated
from 'CRISIL B/Stable
ISSUER NOT COOPERATING')
The rating reflects exposure to risks related to the ongoing hotel
project and susceptibility to intense competition and cyclicality
in the hospitality sector. These weaknesses are partially by
favourable location of the upcoming hotel.
Analytical Approach
Unsecured loans received from the partners, and their family
members and friends (INR14.67 crore as on March 31, 2019), have
been treated as neither debt nor equity, as the loans are
interest-free, and will be maintained in the company over the
medium term.
Key Rating Drivers & Detailed Description
Weakness:
* Exposure to project risks: AHL's upcoming hotel is yet to be
completed and is scheduled to commence operations in January 2021.
It is yet to establish a brand and display track record of
stabilised operations. Moreover, the Covid-19 pandemic has delayed
commencement of operations and has also impacted demand in the
sector. Healthy occupancy levels and profitable operations will be
key rating sensitivity factors.
* Susceptibility to competition and cyclicality in the hospitality
sector: The hotel industry remains vulnerable to changes in the
domestic and international economies, which impacts occupancy
revenue per available room. On the other hand, cost remains high
even during downward shifts in demand. Moreover, intense
competition in the nearby region will constrain demand for new
hotel in Lucknow.
Strength:
* Favorable location of the hotel: Proximity to the proposed
information technology (IT) park and international airport of
Lucknow should help AHL attract leisure and business travellers to
its upcoming hotel.
Liquidity Poor
AHL has poor liquidity driven by low expected cash accruals in
fiscal 2022 and fiscal 2023, against repayment obligations around
INR4.65 crores annually. The cash and cash equivalents are
estimated at INR0.07crores as on March 31, 2019. Liquidity is
supported by unsecured loans from promoters to the extent of
INR14.67 Crores as on March 31, 2019.
Outlook: Stable
CRISIL believes AHL will continue to benefit from the low
implementation risk and favorable location.
Rating Sensitivity factors
Upward factors
* Timely commencement of operations leading to higher cash
accruals.
* Improvement in capital structure leading to TOLANW to remain
below 5 times.
Downward factors
* Slow ramup of operations or lower than expected profitability
(less than 15%) leading to low cash accruals.
* Time and cost overruns in the project, weakening the financial
risk profile
AHL was formed as a partnership of Mr. Sarvesh Kumar Goel and Mr.
Manoj Kumar Goel, in 2012. The firm is setting up a 57-room hotel,
The Centrum, in Lucknow. The hotel is expected to be operational
from January 2021.
MY BEST GIFT: Second Creditors' Meeting Set for Aug. 21
-------------------------------------------------------
A second meeting of creditors in the proceedings of My Best Gift
Holdings Pty Ltd and My Best Gift Pty Ltd has been set for Aug. 21,
2020, at 10:00 a.m. at the offices of JLA Insolvency & Advisory Pty
Ltd, Level 13, 50 Margaret Street, in Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 20, 2020, at 4:00 p.m.
Jamieson Louttit of JLA Insolvency & Advisory was appointed as
administrator of My Best Gift Holdings on July 10, 2020.
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C H I N A
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YESTAR HEALTHCARE: Moody's Cuts CFR to B3, Outlook Still Negative
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and senior unsecured rating of Yestar Healthcare Holdings
Company Limited to B3 from B1.
The outlook on the ratings remains negative.
On Aug. 10, Yestar announced it has entered into a share transfer
agreement to acquire the remaining 30% equity interest in five
subsidiaries, collectively known as the Shanghai Anbaida Group
Companies, from minority shareholders. The proposed transaction
will take place in three phases and be completed by August 31, 2021
at a consideration of RMB675 million.
In addition, Anbaida will distribute accumulated undistributed
profits from January 1, 2015 to June 30, 2021 within a five-year
period starting in 2021. The amount of undistributed profits that
was accumulated during January 1, 2015 to December 31, 2019 that
was attributable to Anbaida's minority shareholders was RMB253
million.
The transaction is subject to a number of conditions precedent,
including relevant approvals and consents.
"The downgrade to B3 and negative outlook reflect Yestar's
increased liquidity risk, with the RMB675 million consideration
payable in three installments through August 31, 2021 and a USD200
million bond due September 15, 2021," says Gerwin Ho, a Moody's
Vice President and Senior Credit Officer.
"The rating action also factors in the challenges Yestar faces in
meeting its working capital needs as the company grows its revenues
and expands its in-vitro diagnostic business over the next 12
months," adds Ho, who is also Moody's Lead Analyst for Yestar.
RATINGS RATIONALE
Yestar's B3 corporate family rating is constrained by its modest
size, high supplier concentration and high repayment and working
capital needs over the next 12 months. This partially offsets its
solid position in the distribution of medical consumable products
in China and strong and sustained partnership with leading global
companies, including Roche Holding AG (Aa3 positive) and FUJIFILM
Holdings Corporation (A2 stable).
Yestar's liquidity is weak. With the RMB675 million consideration
and USD200 million bond due September 2021, Moody's expects
Yestar's cash to short-term debt, including restricted cash and
current lease liabilities, will decline below 100% at the end of
2020 from 172% at the end of 2019.
Moody's expects Yestar's working capital needs will rise with the
growth of its IVD distribution and service provision business,
given the longer payment terms associated with this business, with
accounts receivable days increasing to 109 in 2019 from 73 in 2016.
The company's medical business, which includes the higher-margin
IVD business, accounted for 90% of total revenue in 2019.
The risk associated with longer receivable days is partially
mitigated by the company's strong credit controls, high exposure to
hospitals and clinics in developed first-tier cities and provinces,
and geographically diverse customer base. The ratio of impaired
accounts receivable has been low, averaging around 1.3% over 2017
to 2019.
At the same time, Moody's expects Yestar's short-term debt will
rise to fund payments associated with its previous acquisitions.
The company has also demonstrated a track record of access to
diversified funding channels, including bank facilities, USD bonds
and public equity financing, as evidenced by its issuance of new
shares to FUJIFILM in December 2018.
Nevertheless, an inability to meet the scheduled
acquisition-related payments, a further weakening in its liquidity
position or an inability to prefund meaningfully ahead of its USD
bond maturity will pressure its rating.
Moody's expects Yestar's revenue to grow about 6% over the next
12-18 months from the level in 2019. The rise reflects the
continued growth in demand for medical consumable products in China
supported by the company's increased market share and growing
geographical coverage, and partially offsetting weakening demand in
its non-medical businesses.
Moody's expects Yestar's leverage will rise to about 2.6x over the
next 12-18 months from 2.1x in 2019 on lower EBITDA resulting from
margin contraction, as well as a rise in debt level to fund its
business growth and acquisition-related payments.
From a governance perspective, Yestar's ownership is concentrated
in a small number of shareholders, including its chairman and CEO
who had also pledged a portion of his shares. Management had also
adopted an acquisitive growth strategy.
Yestar's senior unsecured bond rating is not affected by
subordination to claims at the operating company level. This is
because creditors at the holding company benefit from cash flow
generation across a number of operating subsidiaries, mitigating
structural subordination risk.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings outlook could return to stable if (1) Yestar improves
its liquidity materially over the next 12-18 months, (2) it
stabilizes its working capital cycle as it pursues business growth,
and (3) it uses long-term -- rather than short-term -- funding to
address its financing needs.
Financial metrics that Moody's would consider for a change in the
outlook to stable include cash to short-term debt rising above 2.0x
over the next 12-18 months.
Moody's could downgrade the rating if (1) Yestar fails to improve
its liquidity position, and in particular if it fails to meet the
scheduled RMB675 million consideration payments and makes
insufficient progress in prefunding its upcoming USD200 million
bond due in September 2021; (2) its operating performance
deteriorates; (3) it pursues a more aggressive financial management
policy, or (4) its corporate governance weakens.
The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.
Headquartered in Shanghai and listed on the Hong Kong Stock
Exchange since October 2013, Yestar Healthcare Holdings Company
Limited is one of the largest distributors of Roche Holding AG's
(Aa3 positive) diagnostics products in China and is also a leading
distributor of FUJIFILM Holdings Corporation's (A2 stable) film
products in the country.
ZIJIN MINING: Moody's Assigns Ba1 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a Ba1 corporate family
rating to Zijin Mining Group Company Limited and has withdrawn the
company's Baa3 issuer rating.
At the same time, Moody's has downgraded the rating on the backed
senior unsecured bond issued by Zijin International Capital Company
Limited to Ba1 from Baa3.
The ratings outlook has been changed to stable.
This rating action concludes the review for downgrade initiated on
June 10, 2020.
"The downgrade reflects Zijin's acquisitive strategy and the
expected weakening in its financial profile over the next one to
two years, following multiple acquisitions in 2020," says Kaven
Tsang, a Moody's Senior Vice President.
RATINGS RATIONALE
Zijin's Ba1 corporate family rating reflects the company's (1)
leading scale and market position as a major Chinese producer of
gold, copper and zinc in China; (2) diversified business portfolio
in terms of metals and geographies; (3) profitable mining
operations with a competitive cost advantage; and (4) strong access
to funding backed by its indirect ownership by Shanghang County
government in Fujian province, and its importance to China's metals
and mining industry.
However, Zijin's rating is constrained by its increasing leverage
due to its aggressive financial policy as illustrated by frequent
acquisitions, its exposure to metal price volatility, and growing
project execution risk and geopolitical risk.
Zijin's pursuit of growth through acquisitions has been more
aggressive than Moody's previously expected and has pressured its
financial profile. So far in 2020 it has completed or announced the
acquisition of Continental Gold Inc. for RMB7 billion in March,
Tibet Julong Copper Co., Ltd. for RMB3.9 billion in July, and
Guyana Goldfields Inc. for RMB1.7 billion, currently in process.
Moody's estimates that the acquisition costs and additional related
capital expenditures will be mostly funded by debt and cash on
hand.
As a result, Moody's expects Zijin's debt/EBITDA will rise above
4.5x in 2020 from 3.5x in 2019, and will stay at this elevated
level in 2021 absent material deleveraging initiatives. Such
leverage level better positions Zijin at the Ba1 rating level.
Moody's expects Zijin's planned convertible bond issuance of up to
RMB6 billion will have limited effect on its leverage, given the
modest size of the issuance and the uncertainties on timing and
conversion ratio from the convertible bond. Moody's treats the
convertible bond as debt.
In addition, Moody's expects Zijin will face growing project
execution and geopolitical risk as it expands through acquisitions
both domestically and overseas.
Despite Zijin's solid track record of developing mining assets in
China and globally, the complexity of executing multiple large
mining projects across different jurisdictions at the same time may
lead to project delays and budgets overrun.
Moody's expects Zijin will slow its acquisitions as it focuses on
developing mining projects on hand over the next 12-18 months. With
the production ramp up of the acquired mining assets, the expected
growth in earnings and cash flow will help fund Zijin's projected
additional capital expenditure and contain its debt growth,
supporting its stable rating outlook.
In terms of environmental, social and governance factors, the
mining industry has high exposure to environmental risks as well as
tightening regulations. However, Zijin has a good track record of
environmental compliance, including established procedures to
comply with regulations and to monitor pollutants released into the
air, water, and soil during production.
Zijin is exposed to social risks associated with the mining
industry, including health and safety, and responsible production.
The company adheres to a "zero work fatality, zero occupational
disease and zero environmental accidents" goal during its
production. Zijin also carries out poverty alleviation projects in
areas near the operations of its subsidiaries.
In terms of governance consideration, Zijin has an aggressive
growth strategy and financial policy as evidenced by its recent
multiple acquisitions that were partially funded by debt. Its
rating action reflects the impact on the company's financial
profile arising from this acquisitive strategy. As a dual-listed
entity on the Shanghai Stock Exchange and the Stock Exchange of
Hong Kong, Zijin has adequate information transparency and
financial disclosure.
The stable outlook reflects Moody's expectation that Zijin will
focus on developing its acquired mining assets and ramp up
production according to plan without major delays, such that its
credit metrics will remain largely stable in the next 12-18
months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if Zijin (1) shows prudence in
its capital expenditure and acquisitions; (2) enhances its
production scale while successfully managing project execution and
geopolitical risks; and (3) improves its credit metrics, such that
adjusted debt/EBITDA falls below 3.5x on a sustained basis.
Moody's could downgrade the ratings if (1) Zijin stays acquisitive,
pressuring its financial position; (2) there is a material decline
in revenues or profits due to operating, geopolitical, or
environmental issues; (3) the Shanghang County government loses its
position as the largest shareholder, weakening the company's access
to funding; or (4) credit metrics deteriorate, such that adjusted
debt/EBITDA exceeds 5.0x with a low likelihood of deleveraging over
the next 12-18 months.
The principal methodology used in these ratings was Mining
published in September 2018.
Zijin Mining Group Company Limited is one of the largest and most
diversified metals and mining companies in China. It is primarily
engaged in the exploration and mining of gold, copper, zinc and
other metal minerals, supplemented by refining, processing and
sales of related products. The company also has other
mining-related businesses such as research and development,
construction, trade and finance.
Zijin generated revenue of RMB136 billion in 2019 and reported
total assets of RMB123.8 billion as of year-end 2019.
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I N D I A
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AKASH PACKTECH: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Akash Packtech Private Limited
Registered office:
F-51, 2nd Floor, Vishwakarma Colony
Lal Kaun, South Delhi 110044
Insolvency Commencement Date: July 31, 2020
Court: National Company Law Tribunal Bench-IV, New Delhi
Estimated date of closure of
insolvency resolution process: January 27, 2021
(180 days from commencement)
Insolvency professional: Jyoti Ranjan Tarafdar
Interim Resolution
Professional: Jyoti Ranjan Tarafdar
91, Siddhartha Enclave
Near Ashram Chowk
New Delhi 110014
E-mail: ip.jyotiranjan@gmail.com
cirpakashpackteck@gmail.com
Last date for
submission of claims: August 18, 2020
AMP UNIVERSAL: CRISIL Lowers Ratings on INR18cr Loans to B
----------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of AMP
Universal Realty Private Limited (AMP), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental 0.9 CRISIL B/Stable (ISSUER NOT
Discounting Loan COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 17.1 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with AMP for obtaining
information through letters and emails dated January 14, 2020 and
July 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 AMP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on AMP is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of AMP
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
Incorporated in 2006, AMP is promoted by the Meharia consortium,
the Tavarya group, the Shanta Subhasree group, and the Shivalik
group. It was formed to develop a commercial complex, AMP Baisakhi
in Kolkata, in a joint venture with Bidhannagar Municipality.
ASHWANI KUMAR: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of Ashwani Kumar and Company Private Limited
(AKCPL).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B+/Stable (Assigned)
Overdraft 5 CRISIL A4 (Assigned)
Proposed Fund-
Based Bank Limits 0.5 CRISIL B+/Stable (Assigned)
The ratings reflect AKCPL's modest scale of operations and
susceptibility to slowdown in end-user industries, working capital
intensive operations and vulnerability of operating margin to
fluctuations in forex rates. These weakness are partially offset by
extensive industry experience of the promoters and healthy capital
structure.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations and susceptibility to slowdown in
end-user industries: Small scale of operations, with turnover of
INR8.70 crore in fiscal 2020, amid intense competition limits
pricing power with suppliers and customers, thereby constraining
profitability. AKCPLs scale of operations will continue limit its
operating flexibility.
* Working capital intensive operations: Gross current assets were
at 1402.-1416 days over the three fiscals ended March 31, 2020. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 1402. days as on March 31, 2020 as against
over 125 days GCAs of some of its peers.
* Vulnerability of operating margin to fluctuations in forex rates:
Since majority of procurement comes from the international market,
any sharp fluctuation in forex rates affects procurement cost and
accrual. This exposes the operating margin to fluctuations in forex
rates.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 5 decades in heavy equipment trading
industry. This has given them an understanding of the dynamics of
the market, and enabled them to establish relationships with
suppliers and customers.
* Healthy capital structure: AKCPL's capital structure has been at
healthy levels due to lower reliance on external funds yielding low
total outside liabilities to adjusted net worth (TOL/ANW) of
0.62-0.98 time in past three fiscal years ended 31st March 2020.
Liquidity Poor
Bank limit utilisation is high at around 99% for the past twelve
months ended May 2020. Cash accruals are expected to be over INR1
Cr which are sufficient against no major term debt obligation.
Accruals are expected to cushion the liquidity of the company.
Current ratio was healthy at 2.06 times on March 31, 2020.
Outlook: Stable
CRISIL believes AKCPL will continue to benefit from the extensive
experience of its promoter, and established relationships with
clients.
Rating Sensitivity factors
Upward factor
* Sustained improvement in scale of operation by 20% and
sustenance of operating margin, leading to higher cash accruals
* Improvement in working capital cycle.
Downward factor
* Large debt funded capex
* Sustained decline in operating margin by over 300 bps
AKCPL is engaged in trading of over 600 types and sizes of
second-hand industrial machineries such as lathes and milling,
grinding, drilling, boring, shearing, moulding, and welding
machines that are used in the automotive ancillaries and heavy and
general engineering segments. Mr. Ashwani Mahajan is the promoter.
AXEL POLYMERS: CRISIL Lowers Rating on INR5cr Cash Loan to D
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Axel
Polymers Limited (APL) to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Inland/Import 4 CRISIL D (Downgraded from
Letter of Credit 'CRISIL A4')
The downgrade reflects the irregularity in APL's account conduct
with continued overdrawing in working capital limit beyond 30 days,
on account of devolvement of multiple letter of credit (LC).
The ratings also reflect a below-average financial risk profile,
large working capital requirement, and a modest scale of operations
in the competitive engineering polymer compounding industry. These
weaknesses are partially offset by the industry experience of the
promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: The networth was modest at
INR1.99 crore, while the TOLTNW ratio was high at 7.02 times, as on
March 31, 2020. The interest coverage and net cash accrual to total
debt ratios were 1.43 times and 0.06 time, respectively, in fiscal
2020.
* Large working capital requirement: Gross current assets were high
at 177 days, driven by sizeable inventory of around 148 days and
moderate receivables of 41 days, as on March 31, 2020. Working
capital management has further deteriorated currently, amidst
COVID-19 and lockdown, leading to overdrawing in working capital
limits.
* Modest scale of operations amid intense competition: Modest
revenue of INR22.90 crore in fiscal 2020 amid intense competition
limits pricing power with suppliers and customers, thereby
constraining profitability.
Strength
* Industry experience of the promoters: The chairman, Mr. B K
Bodhanwala, and managing director, Mr. A B Bodhanwala, have more
than two decades of experience in manufacturing polymer compounds.
Benefits from their extensive experience, their keen understanding
of local market dynamics, and healthy relationship with customers
and suppliers should continue to support the business. The
promoters have also been extending unsecured loans.
Liquidity Poor
The liquidity is poor reflected in fully drawn bank limits with
recent continuous overdrawing on account of devolvement of few LCs.
COVID-19 and lockdowns have strained the already weak liquidity of
company; APL has incurred cash loss of INR 0.48 cr during Q1FY21.
Modest networth, high working capital requirements and leveraged
capital structure shall continue to constrain APL's liquidity.
Rating Sensitivity factors
Upward factors
* Track record of timely servicing of debt and absence of any
irregularity, for at least 3 months
* Significant improvement in liquidity.
APL, incorporated in 1992 at Vadodara, Gujarat, is promoted by Mr.
B K Bodhanwala and his family members. The company manufactures
compounds, blends, and alloys of engineering, specialty, and
commodity polymers. It is listed on the Bombay Stock Exchange.
AZAFRAN INNOVACION: Ind-Ra Moves B- LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Azafran Innovacion
Limited's (AIL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR33.6 mil. Term loan due on June 2021 migrated to non-
cooperating category with IND B- (ISSUER NOT COOPERATING)
rating; and
-- INR20 mil. Fund-based limits migrated to non-cooperating
category with IND B- (ISSUER NOT COOPERATING) / INDA4 (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 8, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
AIL, a closely held public limited company, produces organic
cosmetic products under the brand Azafran Organics at its facility
in Ahmedabad, Gujarat.
BHADORA INDUSTRIES: CRISIL Keeps B+ Rating on INR3.20cr Loan
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Bhadora Industries
Private Limited (BIPL) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.50 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3.20 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 1.43 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 0.92 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with BIPL for obtaining
information through letters and emails dated January 14, 2020 and
July 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 BIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on BIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of BIPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
BIPL, incorporated in 1988, manufactures various industrial
insulated wires and cables, at its facility in Tikamgarh, Madhya
Pradesh. Operations are managed by Mr. Pradeeep Bhadora.
BHAGWATI GEMS: Ind-Ra Moves 'BB-' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bhagwati Gems'
Long-Term Issuer Rating to the non-cooperating category. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using the
rating. The rating will now appear as 'IND BB-(ISSUER NOT
COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR15.7 mil. Term loan due on FY20-FY21 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR340 mil. Fund-based limits migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 13, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1999, Bhagwati Gems is a partnership firm promoted
by Mr. Bharat Kathiriya, Mr. Bhimjibhai Kathiriya, Mrs. Manishaben
Kathiriya, and Mr. Kevinbhai Kathiriya. The firm is involved in
cutting and polishing of rough diamonds at its unit in Surat. It is
also engaged in the trading of rough diamonds.
BHUSHAN POWER: Final Hearing in Insolvency Case Set for Sept. 8
---------------------------------------------------------------
Livemint.com reports that the Supreme Court said that it will hold
the final hearing in the Bhushan Power and Steel Ltd (BPSL)
insolvency case on September 8. The top court has directed all the
parties to file their affidavits, replies and rejoinders within
four weeks.
The matter was listed before the apex court bench headed by Chief
Justice S.A. Bobde, Livemint.com says.
According to the report, the current appeal has been filed by the
Enforcement Directorate (ED) challenging the sale of the bankrupt
BPSL to JSW Steel. ED has filed a complaint stating that the cases
against the BPSL should continue and argued that NCLAT (National
Company Law Appellate Tribunal) has no jurisdiction to unfreeze
assets attached under PMLA and allow sale of those assets.
Livemint.com relates that senior advocate Abishek Manu Shinghvi,
who appeared for Committee of Creditors (CoC), submitted that the
as per the provisions of the new law, it is the new management
which is held liable and accountable for the cases pending on the
old company.
Livemint.com notes that Bhushan Power was part of the original
dirty dozen cases identified by the Reserve Bank of India to be
referred to bankruptcy courts. JSW Steel, with an offer of
INR19,700 crore for the bankrupt steel mill, was the highest bidder
for the asset. However, the Enforcement Directorate, which is
pursuing an investigation into alleged money laundering by the
company under its previous management, attached the assets of the
steel mill, stalling its sale, the report states.
According to the report, the Supreme Court on March 6 had accepted
the declaration of creditors of BPSL that in case the apex court
rules in favor of the former promoter against the steel mill's
sale, the lenders will return the resolution proceeds within two
months. The CoC urged the court that a further delay in the
resolution process significantly adds to its outstanding
non-performing assets, the report adds.
About Bhushan Power
Bhushan Power and Steel Limited manufactures and markets steel
products. It offers flat products, such as coated products,
galvanized/galvalume, color coated products, cable tapes, and cold
rolled products; and long products, including iron making and
sponge iron products. The company also provides steel pipes, hollow
steel sections, grooved pipes, and carbon steel tubes.
Mahendra Kumar Khandelwal was appointed as the IRP in the case
under an order passed by the National Company Law Tribunal (NCLT)
on July 26, 2017.
Bhushan Power, which owes over INR37,000 crore to a consortium of
lenders led by Punjab National Bank, was among 12 large companies
identified by the Reserve Bank of India against which banks were
directed to initiate insolvency proceedings. Barring Era Infra
Engineering Ltd, petitions have been admitted in all other cases.
BMR BLUE: Ind-Ra Gives 'B+' LongTerm Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned BMR Blue Genetics
Private Limited (BBGPL) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR80.63 mil. Term loan due on January 2025 assigned with IND
B+/Stable rating;
-- INR20.0 mil. Fund based working capital limits assigned with
IND B+/Stable/IND A4 rating; and
-- INR49.37 mil. Proposed fund-based working capital limits*
assigned provisional IND B+/Stable/Provisional IND A4 rating.
*The ratings are provisional and shall be confirmed upon the
sanction and execution of the loan documents for the above facility
by BBGPL to the satisfaction of Ind-Ra.
KEY RATING DRIVERS
The ratings reflect BBGPL's small scale of operations. The company
is in its nascent stage of operations after completing the
construction of the broodstock multiplication center in December
2018. It began selling broodstock to hatcheries from August 2019
and booked revenue of INR91 million in FY20 (provisional). FY21
will be the company's first full year of operations. The management
expects significant revenue growth in FY21, backed by an increase
in orders from registered hatcheries. However, Ind-Ra expects the
scale of operations to remain small over the medium term.
The ratings also factor in BBGPL's modest EBITDA margin of 29.7%
with the better realization from the sale of broodstocks and the
return on capital employed was 11% in FY20.
The ratings further reflect BBGPL's modest credit metrics as
reflected by interest coverage (operating EBITDA/gross interest
expense) of 2.5x and net leverage (total adjusted net
debt/operating EBITDAR) of 4.1x in FY20. Despite an increase in the
debt levels in FY21 to meet the working capital requirements, the
agency expects the credit metrics to improve over the medium term
with the stabilization of operations.
Liquidity Indicator - Stretched: The company's average use of the
fund-based working capital limits was 70.4% over the 12 months
ended May 2020. The net cash conversion cycle was negative in FY20,
on account of an extended credit period from the supplier Blue
Genetics Mexico, which are also BBGPL's joint venture partner and
one of the promoters. The company reported cash flow from
operations of INR10 million in FY20. Ind-Ra expects it to turn
negative in FY21, primarily on account of an increase in the
working capital requirements. The company has availed the Reserve
Bank of India-prescribed moratorium for principal and interest
payments on its bank facilities from March to August 2020. BBGPL
has a scheduled debt repayment of INR10.6 million and INR18.20
million for FY21 and FY22, respectively, which is likely to be
serviced through internal accruals. The company had cash and cash
equivalents of INR5 million at FYE20.
However, the ratings are supported by the promoters' more than two
decades of experience in shrimp farming. The promoters have
extended unsecured loans and equity towards the timely completion
of the CAPEX and will continue providing financial support for
timely debt servicing if required.
RATING SENSITIVITIES
Positive: Scaling up of operations along with a sustained increase
in the operating EBITDA, leading to an improvement in the credit
metrics and the liquidity profile, all on a sustained basis, will
be positive for the ratings.
Negative: Inability to increase the scale of operations as expected
or a decline in the operating EBITDA and/or a stretch in the
working capital cycle, leading to deterioration in the credit
metrics and liquidity profile, all on a sustained basis, would be
negative for the ratings.
COMPANY PROFILE
BBGPL is the first broodstock multiplication center in the private
sector and is located 15km from Kavali in Nellore district, Andhra
Pradesh. It is a joint venture between BMR Group (Masthan Rao Beeda
and BMR Industries Private Limited, together holding 62.9% stake)
and Blue Genetics Mexico (36.8%) stake.
CARTON AND CARTON: CRISIL Lowers Rating on INR5cr Loan to B
-----------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of Carton
and Carton (CC), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with CC for obtaining
information through letters and emails dated January 14, 2020 and
July 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 CC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on CC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of CC Revised
to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable
Issuer Not Cooperating'.
Set up in 1996 and based in Chennai, Carton and Carton is engaged
in manufacturing of various types of corrugated boxes for use in
packaging industry. The firm has its manufacturing unit in Chennai
and its operations are managed by the promoter, Mr. V Irfathullah.
CIM TOOLS: CRISIL Withdraws B+ Rating INR2cr Cash Loan
------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of CIM Tools Private Limited
(CIM) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'.
CRISIL has now withdrawn its rating on bank facility of CIM
following a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL is migrating the
ratings on bank facilities of CIM from 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating' to 'CRISIL B+/Stable/CRISIL A4'. The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
External 2 CRISIL B+/Stable (Migrated from
Commercial 'CRISIL B+/Stable ISSUER NOT
Borrowings COOPERATING'; Rating Withdrawn)
Foreign 14 CRISIL A4 (Migrated from
Discounting 'CRISIL A4 ISSUER NOT
Bill Purchase COOPERATING'; Rating Withdrawn)
Inland/Import 4 CRISIL A4 (Migrated from
Letter of Credit 'CRISIL A4 ISSUER NOT
COOPERATING'; Rating Withdrawn)
Term Loan 2.63 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
CIM, established in 1997 by Mr. Srikanth, manufactures aircraft
parts and equipment.
D.R. SHAH CONSTRUCTION: Ind-Ra Moves B+ Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated D.R. Shah
Construction Co.'s Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based limits migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) rating; and
-- INR60 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 3, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
D. R. Shah Construction is a partnership firm engaged in civil
engineering construction. The company undertakes maintenance
services for hospitals, schools and residential buildings for
government bodies.
DHANASHREE AGRO: CRISIL Moves D Debt Ratings From Not Cooperating
-----------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the ratings of Dhanashree Agro Products
Private Limited (DAPPL) to 'CRISIL D/CRISIL D 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 ratings on bank facilities of DAPPL to 'CRISIL
D/CRISIL D' from 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.2 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Cash Credit 60 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 1.5 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Long Term Loan 60 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
The ratings continue to reflect instances of delay in servicing
term debt because of stretched liquidity following operational
losses and large working capital requirement. The rating also
factors in large working capital requirement and a weak financial
risk profile. However, the company benefits from the extensive
experience of the promoters in the sugar industry.
Key Rating Drivers & Detailed Description
Weaknesses:
* Delay in servicing debt: There have been continuous delays in
servicing interest and principal, on account of weak liquidity
resulting from large working capital requirement and operating
losses.
* Large working capital requirement: Gross current assets were
high at 772 days, driven by large inventory and moderate
receivables of 773 and 75 days, respectively, as on March 31, 2020.
However, stretched payables of 1190 days partially aids working
capital management.
* Weak financial risk profile: The networth was a negative
INR101.94 crore as on March 31, 2020, owing to substantial losses
incurred over the past few fiscals; this also led to weak debt
protection metrics. The capital structure remains highly leveraged
due to sizeable debt and may weaken in case of any increase in
working capital requirement.
Strength:
* Extensive industry experience of the promoters: Benefits from the
promoters' experience of seven decades in the sugar industry,
established relationships with customers and suppliers, and the
professional management of manufacturing activities and product
marketing should continue to support the business.
Liquidity Poor
Liquidity is poor. There have been recent instances of overdrawing
of the cash credit limit owing to large working capital
requirement. Also, cash accrual is insufficient against repayment
obligation, which, however, is supported by unsecured loans from
the promoters.
Rating Sensitivity factors
Upward factors:
* Timely repayment of debt leading to satisfactory conduct of
account for more than 3 months continuously.
* Improvement in profitability of the company leading to high
cash accruals.
* Improvement in the financial risk profile of the company
leading to better liquidity positon.
DAPPL (formerly, Lakshmi Sugar Mills Company Pvt Ltd), incorporated
in September 1940, is promoted by the Sawhney family. It is one of
the oldest sugar manufacturing companies in Uttarakhand. It has a
sugar factory at Iqbalpur in Haridwar.
FLAMINGO INN: CRISIL Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Flamingo Inn Private
Limited (OPC) (FIPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with FIPL for obtaining
information through letters and emails dated January 14, 2020 and
July 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 FIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on FIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of FIPL
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2014, FIPL is setting up a hotel in
Thiruvananthapuram (Kerala) and is promoted by Mr. Saiffuddeen
Meerasahib. The operations are started from September 2016.
G.S. AUTO INT'L: CRISIL Withdraws D Rating on INR27.25cr Cash Loan
------------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of G.S. Auto International
Limited (GSAIL) to 'CRISIL D/CRISIL D Issuer Not Cooperating'.
CRISIL has withdrawn its rating on bank facility of GSAIL following
a request from the company and on receipt of a 'no objection
certificate' from the banker. Consequently, CRISIL is migrating the
ratings on bank facilities of GSAIL from 'CRISIL D/CRISIL D Issuer
Not Cooperating' to 'CRISIL D/CRISIL D'. The rating action is in
line with CRISIL's policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.5 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Cash Credit 27.25 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Letter of Credit 1.50 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Proposed Long Term 23.74 CRISIL D (Migrated from
Bank Loan Facility 'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Term Loan 1.25 CRISIL D (Migrated from
'CRISIL D ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Set up in 1938 as a proprietorship concern, Gurmukh Singh & Sons,
GSAIL was reconstituted as a private limited company in 1973, and
then as a public limited company in 1984. GSAIL is listed on the
Bombay Stock Exchange Ltd and The Ludhiana Stock Exchange Ltd. The
company manufactures automotive components. The units can produce
10,000 tonne per annum of machined, hot- and cold-forged, and
casting (ferrous and non-ferrous) automotive components at its
plant in Ludhiana, Punjab.
GIRIRAJ TRADING: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Giriraj Trading Co.
(GTC) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 5.45 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 1.55 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GTC for obtaining
information through letters and emails dated January 14, 2020 and
July 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 GTC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on GTC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of GTC
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 1996 in Mumbai as a proprietorship firm by Mr.
Girish Shah, GTC trades in chemical additives such as calcium
carbonate, fillers, lead, and PE-wax. Operations are managed by Mr.
Girish Shah and his son, Mr. Padmanabh Shah. The firm has
warehouses in Delhi, Vadodara, and Mumbai.
GLOBUSARIMA BUILDERS: CRISIL Keeps B Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Globusarima Builders
LLP (GBL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 40 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with GBL for obtaining
information through letters and emails dated February 12, 2020 and
July 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 GBL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on GBL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of GBL
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
GBL, setup in 2014, is a special purpose vehicle promoted by Arima
Construction Pvt Ltd and Globus Realtors Pvt Ltd, which are owned
by Mr. Arvindkumar Sivasubramaniyan and Mr. Sivakumar Thangamani
The firm is undertaking construction of a residential complex
'Legend at Coimbatore, Tamil Nadu.
GODAWARI INDUSTRIAL: CRISIL Cuts Rating on INR10cr Loan to B
------------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of
Godawari Industrial Traders (GIT), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Bank 10 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Cash 10 CRISIL B/Stable (ISSUER NOT
Credit Limit COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 10 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with GIT for obtaining
information through letters and emails dated January 14, 2020 and
July 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 GIT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on GIT is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of GIT
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Set up in 1987 as a partnership firm of Mr. Vishnudasji Rathi and
Mr. Shriraj Rathi, GIT started operations as a trader for
engineering goods for the railway department. From 1998, the firm
ventured into contracting business undertaking construction of
bridges, track linking, earth work, construction of platforms
primarily for Central Railways, Kokan Railways and South Western
Railways. The firm also undertakes civil work for private players
such as Kalindi Rail Nirman (Engineers) Ltd and TATA projects.
GREATECH TELECOM: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: Greatech Telecom Technologies Private Limited
Registered office:
54-A, Sainik Farms
Khanpur
New Delhi 110062
Works:
K.N. 122/32 & 36
Central Hopetown
Nigam Road, Selaqui
Dehradun (Uttarakhand)
Insolvency Commencement Date: July 31, 2020
Court: National Company Law Tribunal, Bench-IV, New Delhi
Estimated date of closure of
insolvency resolution process: January 27, 2021
(180 days from commencement)
Insolvency professional: Manish Kumar Aggarwal
Interim Resolution
Professional: Manish Kumar Aggarwal
B-22(SFS), Sheikh Sarai
Phase 1, New Delhi 110017
E-mail: manishshikha68@gmail.com
- and -
Immaculate Resolution Professionals
Private Limited
Unit No. 111-112, First Floor
Tower A, Spazedge Commercial Complex
Sector 47, Sohna Road
Gurgaon 122018
E-mail: cirp.gttpl@gmail.com
Last date for
submission of claims: August 19, 2020
GREEN INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Green India
Irrigation Limited (GIIL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Rupee Term Loan 5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GIIL for obtaining
information through letters and emails dated January 14, 2020 and
July 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 GIIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on GIIL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of GIIL
continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in August 2008, GIIL manufactures drip and sprinkler
irrigation systems. Mr. Diliprao Autade Patil, and Mr. Mahesh Aher
are the promoters. The manufacturing unit is in Shrirampur MIDC,
Ahmednagar District, Maharashtra.
GSR AND KKR EDUCATIONAL: CRISIL Keeps B Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of GSR and KKR
Educational Society (GSR) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 6 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with GSR for obtaining
information through letters and emails dated January 14, 2020 and
July 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 GSR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on GSR is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of GSR
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
GSR located in Andhra Pradesh (AP), was established in 2007 under
the Society's Registration Act, 1861. The society operates an
education institute 'KKR & KSR Institute of Technology & Sciences'
in Vinjanampadu near Guntur in Andhra Pradesh. The college offers
undergraduate and post graduate courses in engineering and business
management.
HELIO ENGINEERING: CRISIL Lowers Rating on INR3.5cr Loan to B
-------------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of Helio
Engineering Private Limited (HEPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6.5 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with HEPL for obtaining
information through letters and emails dated January 14, 2020 and
July 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 HEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on HEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of HEPL
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Established in 1996 as a private limited company, HEPL, promoted by
Mr. MN Shreenath and Mr. B Ravi, undertakes turnkey projects in
fire protection and safety systems. Operations include designing,
procuring, and executing fire- and safety-related projects, apart
from annual maintenance contracts for these projects.
KARNATAKA TURNED: CRISIL Reaffirms B Rating on INR5.38cr Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of Karnataka Turned Components Private Limited
(KTC). The rating factors in KTC's modest scale of operations and
weak financial risk profile. These weaknesses are partially offset
by the extensive experience of the promoter.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5.38 CRISIL B/Stable (Reaffirmed)
Term Loan 2.62 CRISIL B/Stable (Reaffirmed)
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Scale of operations remains modest,
as reflected in estimated revenue of INR21 crore in fiscal 2020,
and thus, limits the bargaining power against customers and
suppliers.
* Weak financial risk profile: KTC's weak operating performance is
reflected in the company's limited pricing power. Continues cash
losses by the company resulting in erosion in its net worth base.
As a result, KTC's net worth is estimated to have reduced to
INR4.63 crore as on March 31, 2020 from INR5.65 crore as at March
31, 2019. Consequently, KTC is expected to report the high gearing
of over 1.57 times over the medium term.
Strength:
* Extensive experience of the promoters: The six-decade-long
experience of the Kumar family, in the auto components industry,
through KTC, and the healthy relationships with key stakeholders,
will continue to support the business risk profile.
Liquidity Poor
Liquidity is poor marked by inadequate cushion between cash
accruals and repayments and highly utilized bank lines. Fund-based
limit of INR5 crore was utilised at 96% over the 12 months through
March 2020. Cash accrual of INR0.2- 0.8 crore, expected over the
medium term could be insufficient to cover repayment obligations of
INR0.4 - 1.2 crore. However, the same is funded by incremental
unsecured loans from the promoters.
Outlook: Stable
CRISIL believes KTC will continue to benefit from the extensive
experience of its promoters and established customer
relationships.
Rating Sensitivity Factors
Upward factors
* Sustained improvement in scale of operation by 20% along with
operating margin by 100 basis point, leading to higher cash
accruals more than 1 crore.
* Efficient working capital management which led to improvement in
financial risk.
Downward factors
* Steep decline in revenue or profitability, leading to low cash
accrual less than INR0.30 crore
* Further stretch in the working capital cycle, sizeable addition
in debt or withdrawal of unsecured loans, leading to stretched
liquidity.
KTC was set up in 1960, by the promoter, Mr. Raj Kumar and his
family. The Bengaluru-based company manufactures precision
engineering components for automobile industry.
KETAN CONSTRUCTION: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Ketan Construction Limited
Registered office:
KCL Near 150 FT Ring Road
Aminmarg Junction
Aminmarg Rajkot 360001
Gujarat
Insolvency Commencement Date: August 10, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: February 5, 2021
(180 days from commencement)
Insolvency professional: Shri Arvind Gaudana
Interim Resolution
Professional: Shri Arvind Gaudana
307, Ashirwad Paras
Corporate Road
Nr. Prahladnagar Garden
Satellite
Ahmedabad 380015
Gujarat
Tel: 079-40324567/68
E-mail: arvindg_cs@yahoo.com
Last date for
submission of claims: August 25, 2020
KEVIN PROCESS: CRISIL Withdraws B+ Rating on INR4cr Loan
--------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Kevin Process Technologies
Private Limited (KTPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'. CRISIL has withdrawn its rating on bank facility of
KTPL following a request from the company and on receipt of a 'no
dues certificate' from the banker. Consequently, CRISIL is
migrating the ratings on bank facilities of KTPL from 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating' to 'CRISIL
B+/Stable/CRISIL A4'. The rating action is in line with CRISIL's
policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING'; Rating Withdrawn)
Cash Credit 4.0 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Incorporated in 1995, KTPL has been manufacturing pharmaceutical
equipment for the past two decades. The Ahmedabad-based company has
two processing units, at Vatva and Moraiya near Ahmedabad. Mr.
Vinit J Khambhatta, Mr. Ketan J Khambhatta, and their family
members, are the promoters.
KOPARGAON AHMEDNAGAR: Ind-Ra Keeps 'D' Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Kopargaon
Ahmednagar Tollways Phase 1 Private Limited's senior project term
loan in the non-cooperating category. The issuer did not
participate in the surveillance exercise, despite continuous
requests and follow-ups by the agency. Therefore, investors and
other users are advised to take appropriate caution while using the
rating. The rating will continue to appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.
The detailed rating action is:
-- INR1.56 mil. Senior project bank loan (long-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 4, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Kopargaon Ahmednagar Tollways Phase 1 is a special purpose vehicle
that was incorporated to implement the expansion of a 42.6km
stretch on the Kopargaon Ahmednagar section of State Highway 10 in
Maharashtra to four lanes from two under a seven-year concession
from the state government.
KRISHNA BHAGAVAN: CRISIL Reaffirms B+ Rating on INR5cr Loan
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the bank
facilities of Shree Krishna Bhagavan Prasad (SKBP).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect high customer concentration risk
and small scale of operations These weaknesses are partially offset
by the extensive experience of its proprietor.
Key Rating Drivers & Detailed Description
Weaknesses:
* High customer concentration risks: Revenue concentration is high
as the firm's majority of the revenues are contributed by Bengaluru
based, Pramuk Infracom LLP.
* Small scale of operations: Revenue is INR3.8 crores for fiscal
2020. SKBP operates in a highly volatile fit-out industry and thus
remained a small player. Outstanding orders worth INR10 crore as on
June 2020, to be executed over the next 24 months, provide revenue
visibility over the medium term.
* Working capital-intensive operations: Gross current assets were
high at over 303 days as on March 31, 2020, due to stretch in
receivables. Working capital requirement will remain large over the
medium term.
Strengths:
* Extensive experience of proprietor: The proprietor's three-decade
long experience in the industry has enabled the firm to diversify
its product portfolio - finishing fit-outs including flooring,
cladding, HVAC, plumbing, furniture, electrical and network
fittings, wooden work, painting, polishing, and lamination. SKBP
has established strong relationships with labour contractors
through tie-ups for order execution, resulting in timely and
satisfactory supply of labour.
Liquidity Stretched
The Liquidity risk profile has remained stretched. The net cash
accruals are expected to remain low at around INR0.4 ' 0.6 crore
with no repayments. Further the bank limit utilization of the CC
limit of INR5 crore remained at around 81% for past 12 months
ending March 2020.
Outlook: Stable
CRISIL believes SKBP will continue to benefit from the extensive
industry experience of its proprietor.
Rating Sensitivity Factors
Upward factors:
* Strong growth in revenue by 30 - 40% in the next two years
while sustaining its operating profitability
* Sustenance in the financial risk profile
Downward factors:
* Stagnant revenue growth or steep decline in profitability
* Deterioration in working capital cycle impacting the debtors
above 200 days.
SKBP was set up in 1996, by Karnataka-based Mr. Shree Krishna
Bhagvan Prasad as a proprietorship company. The company provides
finishing services to real estate builders for commercial as well
as residential premises. Mr. Prasad manages the operations.
MAHARASHTRA FASTENERS: Ind-Ra Gives 'BB' LongTerm Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Maharashtra
Fasteners Private Limited (MFPL) a Long-Term Issuer Rating of 'IND
BB'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR230 mil. Fund-based limit assigned with IND BB/Stable/IND
A4+ rating.
KEY RATING DRIVERS
The ratings reflect MFPL's medium scale of operations, as indicated
by revenue of INR932.40 million in FY20 (FY19: INR1,047.26
million). The revenue declined due to a fall in sales volumes,
resulting from the continued slowdown in the automobile sector
coupled with the ongoing economic downturn, which has been
exacerbated by the COVID-19-led business disruptions. The company's
operations were shut down in April 2020 due to the COVID-19
outbreak and associated lockdown. MFPL achieved revenue of INR145
million during 4MFY21. Ind-Ra expects the revenue to decline on a
yoy basis in FY21 owing to the abovementioned factors. The figures
for FY20 are provisional in nature.
Liquidity Indicator – Poor: MFPL's average maximum utilization of
fund-based limits was about 99.49% for the 12 months ended June
2020. The net working capital cycle elongated to 370 days in FY20
(FY19: 283 days) on account of an increase in inventory days (FY20:
358 days; FY19: 281 days), as the company had to maintain a large
stock of finished goods to reduce the cost of production and to
gain economies of scale. However, the cash flow from operations
remained positive and increased to INR90 million in FY20 (FY18:
INR49 million) on account of favorable changes in other current
assets and liabilities. As on March 31, 2019, MFPL had cash of
INR1.08 million against a total debt of INR11.20 million. Ind-Ra
expects the company's liquidity position to deteriorate in FY21 due
to the likely fall in revenue and higher utilization of the working
capital limits owing to the economic challenges resulting from the
pandemic. MFPL has not availed the Reserve Bank of India-prescribed
debt moratorium.
The ratings are constrained by MFPL's modest EBITDA margins due to
the intense competition in the automotive industry. The EBITDA
margin rose to 14.27% in FY20 (FY19: 13.11%) due to a decrease in
raw material costs. MFPL's return on capital employed was 11.80% in
FY20 (FY19: 13.50%). Ind-Ra expects the margins to decline in FY19
due to the aforementioned factors.
The ratings also factor in MFPL's moderate credit metrics due to
the modest margins. The interest coverage (operating EBITDAR/gross
interest expense) deteriorated to 3.16x in FY20 (FY19: 3.58x) due
to a fall in the absolute EBITDA to INR133.09 million (INR137.28
million). However, the net leverage (total adjusted net
debt/operating EBITDA) improved to 2.58x in FY20 (FY19: 2.71x)
owing to a decline in net debt to INR344.77 million (INR383.81
million). With the likely decline in the profitability, Ind-Ra
expects the company's credit metrics to deteriorate in FY21.
The ratings, however, are supported by the director's experience of
more than a decade in the automobile industry.
RATING SENSITIVITIES
Negative: A decline in the scale of operations, leading to
deterioration in credit metrics, and/or further deterioration in
liquidity position will be negative for the ratings.
Positive: An improvement in the liquidity position, indicated by
the presence of adequate unencumbered cash and unutilized bank
limits, while maintaining a comfortable credit profile, all on a
sustained basis, will be positive for the ratings.
COMPANY PROFILE
Incorporated in 1996, MFPL manufactures various metallic fasteners
such as nuts (M4 - M18), bolts (M - M12), round weld nuts, hollow
dowel pins, drain plugs, etc. The manufacturing plant is situated
in Solu, Pune, with a total production capacity of 14,400 metric
tons per annum.
NOVA ENT: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Nova ENT Head &
Neck Hospital Private Limited's (Nova ENT) Long-Term Issuer Rating
to the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR50 mil. Term loan due on September 2024 migrated to non-
cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 11, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Nova ENT was incorporated in 1997. It provides healthcare services
and specializes in the ear, nose, and throat field. The hospital is
located in the prime location of Punjagutta, Hyderabad with a bed
capacity of 50 beds.
NSL TEXTILES: CRISIL Reaffirms D Rating on INR168.39cr Cash Loan
----------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D/CRISIL D' rating on the bank
facilities of NSL Textiles Limited (NSLTL). The ratings reflect
delays by NSLTL in servicing its term loan obligations because of
weak liquidity due to inadequate cash accrual. CRISIL has also
withdrawn its rating on the proposed long term bank loan facility
of INR156.14 crore based on management's request, which is in line
with CRISIL's policy on withdrawal of its ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 168.39 CRISIL D (Reaffirmed)
Letter of credit
& Bank Guarantee 93.63 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 156.14 CRISIL D (Reaffirmed)
Term Loan 188.71 CRISIL D (Reaffirmed)
During fiscal 2020, operating income declined by 7% compared to
previous year, due to adverse price trends in cotton yarn as well
as lower capacity utilization due to restrictions availability of
working capital. Export sales were further impacted following the
demand slowdown from China (due to Covid pandemic), which further
slowed the entire supply chain. Profitability also declined to 6.1%
compared to 8.1% during the previous year due to adverse price
trends in the cotton yarn market, lower economies of scale and
higher power costs.
Nevertheless, liquidity of the company remains under pressure on
account of subdued market conditions, volatile raw material prices
impacting realizations & profitability and delays in receiving
power incentives from state government and Interest Subsidy under
TUFS from Central Government, leading to irregularity in servicing
the term loan accounts.
Key Rating Drivers & Detailed Description
Weakness:
* Weak financial risk profile: Financial risk profile remains
constrained on account of sizeable debt of INR357.10 crore. Gearing
has been aggressive because of the large debt-funded capex
undertaken between fiscals 2007 and 2010. Debt protection metrics
in interest coverage ratio and net cash accruals to debt ratio
remain weak at 1.3 times and 0.03 times respectively, which has
further turned adverse in fiscal 2020. Gearing stands at 1.8 times
as on March 31, 2019, lower from 2.1 time as on March 31, 2018
primarily due to the reduced working capital facilities and S4A
scheme implemented earlier in fiscal 2018.
* Working-capital-intensive operations and susceptibility to
volatility in cotton prices and foreign exchange (forex)
fluctuations: A significant portion of cotton-the key raw
material-requirement for the next year is procured during peak
cotton season (October to March) leading to large working capital
requirement. During fiscal 2020, bankers had imposed restrictions
on non-fund based facilities, thereby constraining ability to
expand production levels. Further, volatility in availability and
prices of cotton affects margins of NSLTL as yarn prices depend on
demand-supply scenario. With exports accounting for 25% of turnover
and no significant imports to act as natural hedge, NSLTL is also
exposed to forex risk.
Strength:
* Fully integrated manufacturing process and presence across value
chain: NSLTL started out as a cotton yarsn manufacturer and
expanded its production capabilities through a series of
acquisitions. Over the years, it has evolved into a complete
textile player, with presence across the value chain including
spinning, weaving, yarn and fabric dyeing, processing and
garmenting. Integrated manufacturing facilities enhance the
flexibility in NSLTL's operations, allowing it to strategically
plan and control raw material procurement and production policies
resulting in healthy operational efficiencies.
Liquidity Poor
NSLTL's liquidity remains stretched on account of delays in
servicing debt obligation. During fiscal 2020, NSLTL's cash
accruals remained inadequate at INR16.2 crore against high
repayment obligations of INR33.8 crore for the year. NSLTL's bank
facilities of INR164.3 crore remains almost fully utilized (100%)
during the 12 months ended June 2020. The debt repayment
obligations will remain high (although expected to decline over the
medium term) at about INR44 crore and INR31 crore in fiscal 2021
and fiscal 2020 respectively. The company's liquidity position had
improved in fiscal 2019 with promoter's equity infusion of INR45
crore and subsidy receipts of INR32 crore, which have been used for
part payment of repayment obligations including pending dues.
NSLTL's liquidity is contingent on additional funding from
promoters or timely receipt of pending subsidies over the medium
term.
Rating Sensitivity factors
Upward factors
* Sustained improvement in liquidity on account of better cash
accrual of or fresh fund infusion
* Timely repayment of debt obligations and regularization of banks
limits for a period of more than 90 days
NSLTL, set up in 2002 and promoted by Mr. M Prabhakhar Rao, is part
of the NSL group. The group has revenue of over USD 1 billion, and
its businesses include seeds, textiles, power, infrastructure, and
sugar. NSLTL is in the textile industry, and has spinning, weaving,
yarn and fabric dyeing, processing, and garmenting capacities.
NSLTL's manufacturing facilities are spread over seven locations in
Andhra Pradesh.
OASIS ALCOHOL: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Oasis Alcohol Limited
Registered office:
Sr No. 657/6, Plot No. 6
Shelke Wasti
Near Shelke Gotha
Upper Indira Nagar
Pune 411037
Maharashtra
Insolvency Commencement Date: August 4, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: January 31, 2021
(180 days from commencement)
Insolvency professional: Vishram Narayan Panchpor
Interim Resolution
Professional: Vishram Narayan Panchpor
B 506, 5th Floor, Building No. 83
Chembur Sindhoo CHS
Tilak Nagar, Chembur
Mumbai 400089
E-mail: vishramp@gmail.com
Last date for
submission of claims: August 19, 2020
OURANOS FOODS: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Ouranos Foods and Beverages Private Limited
Registered office:
59-A/19, Plot No. 44
F/F, Gali No. 3
Guru Nanakpura
Laxmi Nagar Delhi 110092
Principal office 1:
1051, PatlaKhindora Road
Modi Nagar, Ghaziabad
UP
Principal office 2:
3/67, 1st Floor, Sector 2
Rajendra Nagar, Sahibabad
Ghaziabad, UP
Insolvency Commencement Date: August 4, 2020
Court: National Company Law Tribunal, New Delhi, Bench IV
Estimated date of closure of
insolvency resolution process: January 31, 2021
Insolvency professional: Sanjay Garg
Interim Resolution
Professional: Sanjay Garg
193 Agroha Kunj, Sector 13
Rohini, North West
Delhi 110085
E-mail: kronedelhi@gmail.com
- and -
Osrik Resolution Pvt Ltd
9th Floor, 908, D Mall
Netaji Subhash Place
Pitampura, Delhi 110034
E-mail: ouranosfoods@gmail.com
Last date for
submission of claims: August 18, 2020
PADMAVATHI COTTON: CRISIL Lowers Rating on INR5.79cr Loan to D
--------------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of
Padmavathi Cotton Industries (PCI), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.50 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL BB-/
Stable ISSUER NOT COOPERATING')
Proposed Cash
Credit Limit .71 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL BB-/
Stable ISSUER NOT COOPERATING')
Term Loan 5.79 CRISIL D (ISSUER NOT COOPERATING;
Downgraded from 'CRISIL BB-/
Stable ISSUER NOT COOPERATING')
CRISIL has been consistently following up with PCI for obtaining
information through letters and emails dated November 30, 2019 and
December 26, 2019 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution 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 PCI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PCI is consistent
with 'Assessing Information Adequacy Risk'.
Based on last available information, the ratings on bank facilities
of PCI is downgraded to be 'CRISIL D Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating' as it was brought to
CRISIL's attention that there are delays in servicing interest on
the term loan and also overutilization of the working capital
limits for more than 30 days.
PCI, located at Chintapally mandal in Nalgonda district of
Telangana, is a partnership firm set up in March 2015 and started
its operations on 28th January 2016. Mr. Ganta Narayana Reddy and
Mr. Ganta Rajashekar Reddy are the managing partners of the firm.
Mr. Narayana Reddy has over 2 decades of experience in cotton
trading business. The ginning facility includes 48 double roller
gins, an auto pressing unit and an auto feeder unit. The installed
processing capacity of the unit is ~351,000 kappas per annum.
PAHARIMATA COLD: CRISIL Raises Rating to on INR5.11cr Loan to B
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities and
Exchange Board of India guidelines, had migrated its rating on the
long term bank facilities of Shri Paharimata Cold Storage Pvt Ltd
(SPCSPL) to 'CRISIL B-/Stable Issuer Not Cooperating'. However,
SPCSPL has subsequently started sharing requisite information
necessary for carrying out a comprehensive review of the ratings.
Consequently, CRISIL is migrating its rating on the long term bank
facilities of SPCSPL to 'CRISIL B/Stable' from 'CRISIL B-/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.96 CRISIL B/Stable (Migrated from
'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Proposed Fund- 1.53 CRISIL B/Stable (Migrated from
Based Bank Limits 'CRISIL B-/Stable ISSUER NOT
COOPERATING')
Working Capital 5.11 CRISIL B/Stable (Migrated from
Facility 'CRISIL B-/Stable ISSUER NOT
COOPERATING')
The upgrade reflects improvement in liquidity, aided by repayment
of term debt, and availability of cash accrual to cover the working
capital needs.
The rating continues to reflect susceptibility to regulatory
changes and intense competition from other cold storage units in
West Bengal. These weaknesses are partially offset by the extensive
experience of the promoters in the cold storage business.
Key Rating Drivers & Detailed Description
Weaknesses
* Susceptibility to regulatory changes and intense competition:
The West Bengal Cold Storage Association regulates the potato cold
storage business within the region. Rental rates are fixed by the
state's Department of Agricultural Marketing. The fixed rental
limits players' ability to earn profit based on their strengths and
geographical advantages. Furthermore, the industry is highly
fragmented, with the largest player having market share of below
0.5%. Thus, players have limited bargaining power, and are forced
to offer discounts to ensure healthy utilisation of their storage
capacity.
Strength
* Extensive experience of the promoters: The decade-long
experience of the promoters, in the potato trading and cold storage
business, will continue to support the business risk profile. The
company provides storage facilities to 300 farmers and traders, and
the capacity has been fully utilised over the past three potato
seasons.
Liquidity Stretched
Liquidity remains stretched because of high bank limit utilisation
of around 95% over the last six months ended July 2020. Modest cash
accrual of INR0.18 crore expected per fiscal, supports liquidity in
the absence of any debt obligation.
Outlook: Stable
CRISIL believes SPCSPL will continue to benefit from the extensive
experience of its promoters, in the cold storage industry, and
their healthy relationships with clients.
Rating Sensitivity factors
Upward factors
* Sustained growth in revenue (by 20%) and operating margin,
leading to higher cash accrual
* Efficient working capital management
Downward factors
* Decline in revenue (by 20%) and profitability, leading to lower
net cash accrual
* Substantial increase in working capital requirement,
constraining liquidity and the financial risk profile
SPCSPL, set up in 1972, is owned by the West Bengal-based Dandapat
family. Operations are managed by Mr. Anathbandhu Ghosh. The
company provides cold storage services to potato farmers and
traders.
POSCO-POGGENAMP: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Posco-Poggenamp
Electrical Steel Private Limited's (PPESPL) Long-Term Issuer Rating
to the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING) /
IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 30
May 2019. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2010, PPESPL is a joint venture between Poggenamp
Nagarsheth Powertronics and POSCO India Pune Processing Centre Pvt.
Ltd., a 65% subsidiary of South Korea-based POSCO.
PPESPL manufactures cut-to-length transformer lamination sheets. It
has an installed capacity of 24,000 metric tons per annum. As of
March 2019, PPESPL was 51% held by PANPPL, followed by Posco India
Pune (26%) and the promoters of PANPPL (23%).
PREETHI HOSPITALS: Ind-Ra Moves BB- LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Preethi Hospitals
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR479 mil. Term loan due on March 2032 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR30 mil. Fund-based Facilities migrated to non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) / IND A4+
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 10
June 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Preethi Hospitals was incorporated in 1997 and is engaged in the
business of healthcare services in Madurai. Its key specialties are
orthopedics, cardiology, and gynecology.
QUEST INFOSYS: CRISIL Moves B+ Debt Ratings From Not Cooperating
----------------------------------------------------------------
Due to inadequate information and in line with the Securities and
Exchange Board of India guidelines, CRISIL had migrated its ratings
on the bank facilities of Quest Infosys Foundation (QIF) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the firm has
subsequently started sharing the information required for carrying
out a comprehensive review. Consequently, CRISIL is migrating its
ratings to 'CRISIL B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft 10 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING')
Proposed Working 2 CRISIL B+/Stable (Migrated
Capital Facility from 'CRISIL B+/Stable
ISSUER NOT COOPERATING')
The ratings continue to reflect the trust's modest scale of
operations, geographical concentration in revenue profile, and
exposure to intense competition. These weaknesses are partially
offset by QIF's extensive experience of the trustees, and healthy
operating margin.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Turnover was subdued at INR8.4 crore
in fiscal 2020 and is expected to remain muted due to intense
competition from other established institutes in the region and
lower intake expected in fiscal 2021 in the light of Covid-19.
* Geographical concentration in revenue and exposure to intense
competition: The trust has geographic concentration in revenue as
it has only one facility based in Punjab. Besides, QIF has to
compete with many other reputed universities and institutes in the
state. Any increase in competition or slowdown in student intake
because of shift in student preferences to other competing
institutes can impact business risk profile.
Strengths:
* Healthy operating efficiency: Operating profitability has
remained healthy at 35-36% in the few fiscals through 2020 on
account of high margins in the education services industry.
However, operating margin may be impacted due to low intake
expected in fiscal 2021 because of the pandemic. Nevertheless,
margin will remain high over the medium term.
* Trustees' extensive experience: QIF is headed by Mr. Dipinder
Singh Sekhon, who has been in the education segment for many years.
He is the founder of the distance education programme offered by
Punjab Technical University (PTU), and president of the distance
education programme of the All India Council for Technical
Education (AICTE). QIF has been able to leverage the experience of
its trustees with occupancy levels of 85% in its B Tech courses.
Liquidity Stretched
Bank limit utilisation was high at around 93% for the 12 months
through June 2020. Cash accrual is expected to be around INR1.4
crore against nil debt obligation over the medium term. Current
ratio was around 1.15 times as on March 31, 2020. Unsecured loans
stood at around INR9.5 crore. The trust has not availed moratorium
but has availed COVID-19 contingency funds of INR1.92 Cr., which
have been sanctioned.
Outlook: Stable
CRISIL believes QIF will continue to benefit from the experience of
its trustees.
Rating Sensitivity factors
Upward factors
* Sustained increase in revenue and stable operating margin
leading to higher cash accrual of over INR2.5 crore
* Improvement in financial risk profile
Downward factors
* Dip in operating profitability leading to lower cash accrual
* Debt-funded capital expenditure leading to gearing operating
above 2 times
Set up in 2008 by Mr. Dipinder Singh Sekhon and his wife, Ms
Rajveer Kaur, QIF operates Quest Group of Institutions located in
Jhanjeri, Mohali, Punjab. The institute is affiliated to PTU and is
approved by AICTE. It offers B Tech and MBA courses and added new
courses such as B Com (Hons), BCA, and BBA from 2017.
RAYALASEEMA STEEL: CRISIL Cuts Rating on INR20cr New Loan to B
--------------------------------------------------------------
CRISIL has revised the ratings on certain bank facilities of
Rayalaseema Steel Re-Rolling Mills Private Limited (RSRMPL), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of credit 3 CRISIL A4 (ISSUER NOT
& Bank Guarantee COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 0.3 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Overdraft 20 CRISIL B/Stable (ISSUER NOT
Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with RSRMPL for obtaining
information through letters and emails dated January 14, 2020 and
July 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 RSRMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RSRMPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RSRMPL
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating'.
RSRMPL manufactures structural steel products, mild steel angles,
beam channels, and structural steel of varying thickness. The
company is promoted by the Hyderabad-based Agarwal family and
managed by Mr. Inder Karan Agarwal and Mr. Balram Agarwal.
RAYANA PAPER: Ind-Ra Assigns 'BB+' LT Issuer Rating, Outlook Stable
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rayana Paper Board
Industries Limited (Rayana) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable.
The instrument-wise rating actions are:
-- INR236.8 mil. Term loan due on March 2026 assigned with IND
BB+/Stable rating;
-- INR347.5 mil. Fund-based limit assigned with IND BB+/Stable
rating; and
-- INR20 mil. Non-fund-based limit assigned with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect Rayana's small scale of operations even as its
revenue increased to INR1,009 million in FY20 (FY19: INR908
million). For the three months ended June 2020, the company
achieved a top-line of INR101.71 million. Ind-Ra expects the
company's revenue to fall in FY21 due to a decline in the paper
demand resulting from COVID-19-led demand disruptions. FY20 numbers
are provisional.
The ratings also reflect Rayana's modest EBITDA margin of 7.15% in
FY20 (FY19: 6.57%) due to intense competition. This, along with the
commoditized nature of the end product, cyclical downturns and the
variability in the waste paper prices (used as the primary raw
material), has resulted in Rayana's margin being volatile in the
range of 6.5%-9.5% over FY16-FY20. The company's margin increased
in FY20 owing to improved capacity utilization due to expanded
capacity (to 150 tons per annum from 50 tons per annum), lower
power cost and accelerated sales. Ind-Ra expects the margin to
deteriorate in the near term on lower revenue. The return on
capital employed was 6% in FY20 (FY19: 5.4%).
The credit metrics are weak with interest coverage (operating
EBITDA/gross interest expense) of 4.45x in FY20 (5.30x) and net
leverage (adjusted net debt/operating EBITDAR) of 3.79x (1.14x).
The metrics deteriorated in FY20 owing to an increase in the net
debt for the INR339.924 million capex undertaken to increase the
installed capacity and the consequent higher interest expenses.
Ind-Ra expects the credit metrics to deteriorate further in the
near term due to an increase in the interest expenses and lower
operating EBITDA.
Liquidity Indicator – Stretched: Rayana's average utilization of
fund-based limit was 78.17% for the 12 months ended June 2020. Its
working capital cycle elongated to 212 days in FY20 (FY19: 201
days) due to increased debtor and inventory days. Rayana has a
repayment obligation of INR21 million in FY21. The cash flow from
operations turned positive to INR1,34.49 million in FY20 (FY19:
negative INR93.64 million) due to an improvement in operating
profit and favorable changes in working capital. Rayana has availed
the Reserve Bank of India-prescribed moratorium for its term loan
limits over March-August 2020. Rayana has been maintaining high
balance of free cash and cash equivalents since FY17.
The ratings draw comfort from directors and promoters experience of
over three decades in the business of writing and printing paper,
and kraft paper manufacturing. This helps the company maintain a
healthy relationship with customers and vendors.
RATING SENSITIVITIES
Positive: A substantial increase in the revenue as well as the
profitability, coupled with the net leverage remaining below 3.8x,
could lead to positive rating action.
Negative: A decline in the revenue as well as the profitability,
along with deterioration in the credit metrics, could lead to
negative rating action.
COMPANY PROFILE
Rayana was incorporated in December 1986 and started operations in
1989. It is promoted and Managed by Lal Ji Singh, Ram Ji Singh, and
Bijendra Kumar Singh. The company manufactures media and kraft
paper and writing and printing paper. It has a registered office
in Gorakhpur, Uttar Pradesh.
RELIANCE COMMUNICATIONS: Lenders, Gov't. Diverge on Spectrum Sale
-----------------------------------------------------------------
Livemint.com reports that lenders to bankrupt Reliance
Communications Ltd (RCom) and Reliance Telecom Ltd (RTL) have told
the Supreme Court that spectrum is an essential and integral part
of asset against which banks grant loans to telecom firms. This is
contrary to the government's stance that spectrum is national
property and cannot be sold under insolvency proceedings.
In an intervention application filed by State Bank of India on
behalf of the committee of creditors of RCom and RTL, the lender
has sought protection of its rights and interest in the case of
adjusted gross revenue (AGR)-related dues of telcos to the
department of telecommunications (DoT), Livemint.com relates. SBI,
in the application dated August 13, said spectrum is an asset of
bankrupt telecom operators and removing this asset from the
resolution process may threaten a company to not continue as a
going concern, the report relays.
According to Livemint.com, SBI also clarified that the resolution
under the Insolvency and Bankruptcy Code (IBC) does not seek
transfer of spectrum to a new buyer but to have the right to use
the airwaves.
"It is further respectfully submitted that the effect of an
approved resolution plan under the IBC is not to cause transfer of
the ownership of the license/spectrum but simply to require the
transfer of right to use the spectrum as is currently vested in the
corporate debtor," SBI said in the application reviewed by Mint.
According to legal experts, transfer of spectrum is not allowed
under telecom law and policies unless past dues are cleared, the
report relays. The DoT can retain the spectrum of bankrupt telcos,
disallowing its sale under IBC and commercially selling the
airwaves again. In case of RCom and RTL, the DoT has been
classified as operational creditor and may recover little or next
to nothing as financial creditors typically have greater right on
the recovery proceeds, Livemint.com notes.
Livemint.com says the Supreme Court on August 10 had asked the DoT
to draw a plan to recover dues from bankrupt telcos, including
RCom, Aircel Group and Videocon Telecommunications Ltd, after
raising concerns over the DoT not recovering any amount from the
IBC process.
However, SBI said, "the interests of the DoT, an operational
creditor are adequately protected in terms of the IBC," with a
catch that it depends on the wisdom and decision of the committee
of creditors as far as payments to different classes are concerned,
Livemint.com relates.
RCom owes DoT INR25,199 crore, in AGR dues including spectrum usage
charges and licence fees, Livemint.com discloses citing government
estimates. This is nearly half of INR49,054 crore in dues
calculated under the firms's insolvency proceedings. Aircel owes
INR12,389 crore to the DoT.
About Reliance Communications
Based in Mumbai, India, Reliance Communications Ltd is a
telecommunications service provider. The Company operates through
two segments: India Operations and Global Operations. India
operations segment comprises wireless telecommunications services
to retail customers through global system for mobile communication
(GSM) technology-based networks across India; voice, long distance
services and broadband access to enterprise customers; managed
Internet data center services, and direct-to-home (DTH) business.
Global operations comprise Carrier, Enterprise and Consumer
Business units. It provides carrier's carrier voice, carrier's
carrier bandwidth, enterprise data and consumer voice services. The
Company owns and operates Internet protocol (IP) enabled
connectivity infrastructure, comprising over 280,000 kilometers of
fiber optic cable systems in India, the United States, Europe,
Middle East and the Asia Pacific region.
The National Company Law Tribunal on May 9, 2019, allowed Reliance
Communications (RCom) to exclude the 357 days spent in litigation
and admitted it for insolvency. With this, RCom, which owes over
INR50,000 crore to banks, has become the first Anil Ambani group
company to be officially declared bankrupt after the NCLT on May 9
superseded its board and appointed a new resolution professional to
run it and also allowed the SBI-led consortium of 31 banks to form
a committee of creditors.
SAI FERTILITY: CRISIL Reaffirms B Ratings on INR15.5cr Loans
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of Sai Fertility Centre and Hospital (SFCH).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 1.5 CRISIL B/Stable (Reaffirmed)
Term Loan 14 CRISIL B/Stable (Reaffirmed)
The ratings continue to reflect the hospital's exposure to
geographic concentration in revenue, its modest scale of operations
and weak financial risk profile. These weakness are partially
offset by the extensive experience of the promoters in the hospital
industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Geographic concentration in revenue: Operations are localised to
single location at Chengalpattu (Tamil Nadu), compared with other
corporate hospitals, thereby making the business susceptible to the
dynamics of a single market.
* Modest scale of operation: Early stage of operations and intense
competitive pressure constrain scalability: revenue is estimated at
INR13 crore in fiscal 2020. SFCH is also susceptible to the entry
of other big players in its area of operations.
* Weak financial risk profile: Financial risk profile is weak, with
networth and gearing estimated at INR4.15 crore and 4.07 times,
respectively, as on March 31, 2020. Debt protection metrics are
weak, too, due to high borrowings: interest coverage and net cash
accruals to total debt are estimated at 1.50 times and 0.06 times
in fiscal 2020.
Strength
* Extensive experience of the promoters: The promoters,
Dr. M.C. Arumugam and Dr. A.M. Indira have over 20 years of
experience in the healthcare industry. This has given them a strong
understanding of the market dynamics and will enable the hospital
to establish themselves in the region.
Liquidity Stretched
Sanctioned limits of INR2 crores are almost fully utilised.
Accruals are estimated at around INR1 crore in fiscal 2021 and INR
2 crores in fiscal 2022 against debt obligations of INR0.70 crores
and INR1.5 crores respectively over the next 2 years. Unsecured
loans from promoters estimated at INR1 crores as on March 31, 2020
should continue to support liquidity.
Outlook: Stable
CRISIL believes SFCH will continue to benefit from the extensive
experience of its promoters.
Rating Sensitivity Factors
Upward factor
* Sustained improvement in scale of operation leading to cash
accruals of over INR3 crores
* Improvement in gearing supported by steady accretions in
reserves and prudent working capital management
Downward factor
* Decline in revenue or operating margins to below 15% leading to
lower than expected accruals
* Large debt-funded capital expenditure weakens financial risk
profile especially liquidity.
Set up in 2017, SFCH is operating a speciality hospital in
Chengalpattu (Tamil Nadu). It is owned and managed by Dr A M
Indira, Dr M C Arumugam, and Ms. A Kiruthika.
SAI LAXMI: CRISIL Reaffirms B+ Ratings on INR7.5cr Loans
--------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Sri Sai Laxmi Narasimha Cotton and
Ginning Mill (SSLN).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 2.5 CRISIL B+/Stable (Reaffirmed)
Open Cash Credit 5.0 CRISIL B+/Stable (Reaffirmed)
The rating continues to reflect SSLN's exposure to volatility in
cotton prices and to regulatory framework, and modest scale of
operations. These weaknesses are partially offset by the extensive
experience of the partners.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to volatility in cotton prices and to regulatory
framework: Cotton being an agricultural commodity, its
availability largely depends on the monsoon. Moreover, government
interventions and fluctuations in global cotton output lead to
sharp variations in cotton prices. Any abrupt change in regulation
can distort market prices and affect the profitability of players
in the cotton value chain, including ginners.
* Modest scale of operations: The textile ginning industry is
highly fragmented and the consequent intense competition may
continue to constrain scalability, pricing power and
profitability.
Strength
* Extensive experience of the partners: The partners' experience
of over 15 years, their strong understanding of local market
dynamics, and healthy relationships with suppliers and customers
should continue to support the business.
Liquidity Stretched
Liquidity is likely to remain stretched. Cash accrual is projected
at INR43-57 Lakhs per annum over the medium term, barely sufficient
to meet the yearly debt obligation of INR40 Lakhs. Sanctioned bank
facility of INR5 crore was utilised at an average of around 83%
during the 12 months through June 2020. Current ratio was also low
at 0.92 times as on March 31, 2020.
Outlook: Stable
SSLN should continue to benefit from the extensive experience of
the partners and its established relationships with clients.
Rating Sensitivity factors
Upward factors
* Revenue growth of around 20% per annum and sustainable
operating margin
* Significant improvement in the working capital cycle
Downward factors
* Revenue reducing by 20% every year or a steep decline in
profitability, leading to lower-than-expected cash accrual
* Sizeable stretch in the working capital cycle
SSLN was set up in 2016 as a partnership firm by Mr. Paladugula
Rathan, Ms Paladugula Swarupa and others. This Telangana-based firm
undertakes cotton ginning, cleaning and baling.
SCL HEALTHCARE: CRISIL Reaffirms B Ratings on INR98cr Loans
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term
bank facilities of SCL Healthcare Pvt Ltd (SCLHPL). CRISIL has also
withdrawn its rating on the proposed term loan (of INR8 crore), at
the company's request and in-line with CRISIL's policy.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 8 CRISIL B/Stable (Reaffirmed)
Term Loan 90 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the company's exposure to risks
related to the ongoing project and its leveraged capital structure.
These weaknesses are partially offset by the extensive experience
of the promoters in the healthcare industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to risks related to the ongoing project: The hospital is
under construction, with only 40-50% of civil work completed till
date. With operations scheduled to commence from fiscal 2022,
timely completion of the project will be a key rating sensitivity
factor. SCLHPL will also remain exposed to demand risk, given the
intense competition from other major hospitals in the Faridabad
district.
* Capital structure likely to be leveraged: Financial risk profile
is likely to remain weak, marked by a leveraged capital structure.
The project is funded in a debt-equity ratio of 1.6 times.
Strength
* Extensive experience of the promoters: The
two-and-half-decade-long experience of the promoters in the
healthcare industry, should help the company tide over hurdles
related to the initial stage of operations.
Liquidity Poor
Liquidity shall remain constrained by zero cash accrual (as the
hospital is yet to commence operations), as against upfront
interest obligation for the term loan contracted. However, the
promoters are likely to extend support of around INR57 crore
towards the project, of which around INR36 crore has already been
infused.
Outlook: Stable
CRISIL believes SCLHPL will benefit from the extensive experience
of its promoters.
Rating Sensitivity factors
Upward factors
* Timely stabilisation of operations and demand thereof, leading
to annual cash accrual of INR1 crore
* Continued financial support from the promoters
Downward factors
* Delay in commercialisation of operations
* Funding support from the promoters to remain below INR55 crore
SCLHPL is currently setting up a tertiary-care, 254-bed, super
specialty hospital at Sector 86, Greater Faridabad. CA Karan
Vijhani, Dr. Rishi Gupta Dr Prabal Roy, Dr Ram Chand Soni and Dr
Rohit Gupta are the promoters. The hospital is expected to be
commissioned in fiscal 2022.
STANDARD CORP: CRISIL Hikes Rating on INR14.5cr Loan to B
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Standard Corporation India Limited (SCIL) to 'CRISIL B/Stable' from
'CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14.5 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Proposed Fund- 7 CRISIL B/Stable (Upgraded
Based Bank Limits from 'CRISIL D')
Working Capital 3.5 CRISIL B/Stable (Upgraded
Demand Loan from 'CRISIL D')
The upgrade reflects improved liquidity as reflected in the early
payment of all dues pertaining to the working capital loan and its
subsequent closure. Further, on the back of better cash accrual and
improved debtor realisation, bank limit utilisation has improved
consistently over four-five months through June 2020. In the
absence of term debt obligation over the medium term and available
cushion in cash credit account to honor the interest obligation in
time, liquidity is likely to remain comfortable over the medium
term.
The upgrade also factors in an improved business risk profile, as
on the basis of healthy demand for harvester combines, the company
clocked around INR33 crore of revenue during April-July 2020.
Further, order book of INR45 crore provides medium term revenue
visibility.
The rating reflects the company's large working capital
requirements and seasonality in operations. These weaknesses are
partially offset by the extensive experience of the promoters.
Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirements: Despite declining from 305
days as on March 31, 2019 on the back of improvement in debtor
collection, gross current assets remained large at 270 days as on
March 31, 2020. Improvement in the same leading to further
improvement in liquidity will be closely monitored.
* Revenues susceptible to seasonality in operations and dependent
on agriculture growth: The Company earns a major part of its
revenue in the harvesting season i.e. October to April. The topline
will continue to be volatile as it remains dependent on monsoon,
crop prices, government policies and availability of finance.
Strengths
* Extensive experience of the promoters: The promoter's experience
of around four decades and healthy relationship with suppliers and
customers should continue to support the business. Backed by the
promoters' experience and healthy industrial relations, the company
has been able to establish its brand 'Standard' and has been able
to bag regular orders from its clients, thereby, leading to a
steady revenue profile.
Liquidity: Poor
Liquidity is constrained on account of large working capital
requirements and hence high bank limit utilisation, however, it
remains partly aided from no term debt repayments over the medium
term. The repayments on guaranteed emergency credit lines (of
INR3.5 crore) will commence from fiscal 2022, as one year
moratorium has been availed currently. Bank lines were utilised 94%
on average in the 12 months through June 2020.
Outlook: Stable
CRISIL believes that SCIL will continue to benefit from its
established position in the agriculture-based machinery industry on
the back of its promoters' extensive industry experience.
Rating Sensitivity factors
Upword factor
* Sustained improvement in revenue along with maintenance of
operating profitability at over 8%
* Efficient working capital management leading to moderation in
GCA days and hence reduction in overall bank limit utilisation
Downword factor
* Decline in revenue or profitability
* Further stretch in working capital cycle with GCA escalating to
more than 300 days.
SCIL was set up as a partnership firm named Standard Combine in
1979 by Mr. Nachattar Singh and his brother Mr. Joginder Singh. The
firm was reconstituted as a private limited company in 1999 and as
a public limited company with the current name in 2008. SCIL
manufactures harvester combines, tractors, and cranes under the
Standard brand. Its manufacturing unit is in Barnala (Punjab).
SYMTRONICS AUTOMATION: CRISIL Reaffirms B+ Rating on INR6cr Loan
----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Symtronics Automation Private Limited (SAPL) at 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Cash Credit 6 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect the company's average financial
risk profile, modest scale of operations, and stretched working
capital cycle. These weaknesses are partially offset by the
extensive experience of the promoter in the control panel
manufacturing industry, and his funding support.
Analytical Approach
Unsecured loans (outstanding at an estimated INR3.11 crore as on
March 31, 2019) extended to SAPL by the promoter have been treated
as neither debt nor equity. That is because the loans carry
interest that is lower than market rate, and are likely to remain
in the business over the medium term.
Of the total preference share capital extended to the company, 75%
has been treated as equity and the remaining as debt. This is
because the shares are redeemable and non-cumulative, and carry
coupon rate (of 6%).
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operation: Intense competition continues to
constrain scalability: revenue is estimated at INR11 crore in
fiscal 2020.
* Stretched working capital cycle: Operations are working capital
intensive. Estimated Gross current assets were 734 days as on March
31, 2020 - driven, in turn, by receivables and inventory of 400 and
300 days, respectively - and are expected at 500-600 days over the
medium term.
* Average financial risk profile: Financial risk profile is weak,
with estimated networth and estimated gearing of INR6.79 crore and
1.57 times, respectively, as on March 31, 2020. Debt protection
metrics were average, too, with estimated interest coverage and net
cash accrual to total debt ratios at 1.80 times and 0.06 time,
respectively, in fiscal 2020.
Strength
* Extensive experience of the promoter: Benefits from the
promoter's experience of more than a decade, and his technological
capabilities should continue to support the business.
* Funding support from promoters: SAPL benefits from funding
support from promoters which has helped it reduce its dependence on
external bank borrowings.
Liquidity Poor
Liquidity is poor. Net cash accrual - expected at INR0.6-1.8 crore
per annum over the medium term - will be tightly matched against
yearly debt obligation of INR0.80 crore. Utilisation of bank limit
averaged a high 88% in the 12 months through June 2020. Financial
assistance expected from the promoter may, however, support
liquidity.
Outlook: Stable
CRISIL believes SAPL will continue to benefit from its promoter's
extensive experience.
Rating Sensitivity Factors
Upward factors
* Improvement in working capital cycle with improved debtors
below 250 days
* Improvement in revenue along with improved profitability
Downward factors
* Deterioration in revenue to below INR10 crore, along with
decline in operating margin
* Further stretch in working capital cycle.
Promoted by Mr. Atul Chaudhari, SAPL was established as a
partnership and reconstituted as a private limited company in 1986.
It designs and manufactures electronic control systems, and caters
to naval applications. The company is registered with the
Directorate General of Quality Assurance of the Ministry of
Defence, Government of India, and other departments of the Indian
Navy, with a Proprietary Article Certification status.
TRN ENERGY: Ind-Ra Affirms 'D' LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed TRN Energy Private
Limited's (TRNEPL) debt instruments as follows:
-- INR28,156.90 bil. (INR25,928.7 bil. outstanding as of June 30,
2020) Term loan (Long-term) due on January 15, 2038, affirmed
with IND D rating;
-- USD53.58 mil. (USD38.9 mil. outstanding as of June 30, 2020)
External commercial borrowing (Long-term) affirmed with IND D
rating;
-- INR2,050.0 bil. Fund-based limits (Long-term) affirmed with
IND D rating;
-- INR2,250.0 bil. Non-fund based limits (Long-term) affirmed
with IND D rating; and
-- INR700 mil. Loan equivalent risk (Long-term) affirmed with IND
D rating.
KEY RATING DRIVERS
The affirmation reflects TRNEPL's continued delays in debt
servicing owing to poor liquidity position stemming from an
increase in receivables (including change in law amounts).
According to FY20 provisional financials, revenue was INR9,144
million (FY19: INR12,656 million) and EBITDA was INR4,765 million
(INR5,128 million). The company's receivable days increased to 321
in FY20 (FY19: 180).
In June 2019, TRNEPL received the change in law order from the
Central Electricity Regulatory Commission for an increase in coal
cost, owing to an increase in royalty on coal, levy of service tax
on royalty, environmental cess, infrastructure development cess,
clean energy cess, forest tax, electricity duty, and impact of
goods and sales tax, among others.
TRNEPL submitted supplementary bills of INR5,347.6 million for
December 2016 to March 2019 under the change in law order, of which
U.P. Power Corporation Limited (debt rated 'IND AA+(CE)'/Stable)
verified and approved INR4,141.0 million. TRNEPL is providing the
relevant documents to receive approval for the balance portion.
TRNEPL claims that the balance funds will be released soon.
The liquidity constraints led to a coal shortage and plant load
factor of 36.56% in FY20 (FY19: 58.83%).
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months will
be positive for the ratings.
COMPANY PROFILE
TRNEPL, a special purpose vehicle, 74% owned by ACB (India) Power
Limited, a step-down subsidiary of ACB (India) Ltd (ACBIL; 'IND
BBB+'/Rating Watch Negative) was incorporated on 17 November 2006.
It has developed a 600MW (2 x 300MW) coal-based thermal power plant
in Raigarh district, Chhattisgarh. The project achieved commercial
operations date on May 1, 2017 (Unit-I was commissioned in August
2016 and Unit-II in May 2017). The company has signed a 20-year
fuel supply agreement with South Eastern Coalfields Limited for 2.6
million tons per annum of coal. TRNEPL has signed 390MW with PTC
India Ltd, which in turn has signed back-to-back power purchase
agreements with four distribution companies - Paschimanchal Vudyut
Vitran Nigam Ltd, Purvanchal Vidyut Vitran Nigam Ltd, Madhyanchal
Vidyut Vitran Nigam Ltd, and Dakshinanchal Vidyut Nigam Ltd) from
Uttar Pradesh. U.P. Power Corporation manages the power purchase
functions for these state-owned distribution companies in Uttar
Pradesh. TRNEPL also has a perpetual power purchase agreement to
supply 5% of net generation to Chhattisgarh State Power Trading
Company at a variable tariff. The balance power generated post
deduction of auxiliary consumption is sold on a merchant basis.
ACBIL, a flagship company of the Aryan Group, was incorporated in
March 1997. ACBIL has six coal washeries, with an installed
capacity of 33.33 million tons per annum. In addition, ACBIL is
engaged in power generation.
ZICOM SAAS: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Zicom Saas Private Limited
501, Silver Metropolis
Western Express Highway
Goregaon (East)
Mumbai MH 400063
IN
Insolvency Commencement Date: March 18, 2020
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: February 8, 2021
Insolvency professional: Mr. Santanu T Ray
Interim Resolution
Professional: Mr. Santanu T Ray
AAA Insolvency Professionals LLP
A301, BSEL, Tech Park
Sector-30A
Opposite Vashi Railway Station
Vashi, Mumbai City
Maharashtra 400705
Tel: 022-42667394
E-mail: santanutray@aaainsolvency.com
zicomsaas@aaainsolvency.com
Last date for
submission of claims: August 25, 2020
=================
I N D O N E S I A
=================
ALAM SUTERA: S&P Lowers LongTerm ICR to 'CCC-', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings, on Aug. 13, 2020, lowered its long-term issuer
credit rating on PT Alam Sutera Realty Tbk. to 'CCC-' from 'CCC+'.
At the same time, S&P lowered the issue rating on the company's
guaranteed senior unsecured notes to 'CCC-' from 'CCC+'.
The downgrade reflects S&P's view that PT Alam Sutera Realty Tbk.
could undertake a capital market transaction that could constitute
a distressed exchange over the next few months. This is due to the
company's lack of progress on securing domestic bank loans to
refinance or repay its US$115 million guaranteed senior unsecured
notes maturing in April 2021.
Weak sentiment stemming from the COVID-19 pandemic has hindered
Alam Sutera's refinancing. Domestic banks have become much more
selective in granting new credit lines as they focus on managing
their loan portfolio through the pandemic. Given Alam Sutera's
sizable (relative to its resources) maturing notes of US$115
million, the company needs to seek financing from multiple domestic
banks. This could prove difficult in current conditions. Funding
through the domestic bond market would likely also be difficult
given another Indonesian property developer recently undertook a
debt restructuring. The domestic bond market favors repeat issuers,
with a preference for well-established state-owned companies. This
does not describe Alam Sutera.
S&P said, "Despite the growing refinancing risk, we believe Alam
Sutera will have enough near-term liquidity to service about US$22
million in interest on the U.S. dollar notes due in October 2020,
and overhead costs. We estimate its cash balance to be about
Indonesian rupiah (IDR) 1 trillion by the end of June 2020.
Operating performance remains intact based on the company's first
half marketing sales of IDR1.36 trillion. Nevertheless, meaningful
cash accumulation that goes beyond overhead and interest servicing
will be marginal in our view.
"The negative outlook reflects our view that Alam Sutera's lack of
refinancing progress suggests rising risk the company will come to
the market with a distressed exchange of its outstanding notes.
"We would lower the ratings to 'SD' or 'D' if Alam Sutera
undertakes capital market transactions related to its notes
maturing in 2021 or 2022 that we assess as constituting a
distressed exchange.
"We could also lower the ratings if Alam Sutera does not fully
address repayment or refinancing of its US$115 million notes due
April 2021.
"We may raise the ratings if Alam Sutera is able to fully refinance
the 2021 notes with longer-tenor debt."
Alam Sutera is an Indonesia-based property developer, established
in 1993. It focuses on integrated township developments in western
Jakarta with two key projects: the mature Alam Sutera Township in
Serpong, and the newer Suvarna Sutera Township in Pasar Kemis.
MODERNLAND REALTY: S&P Lowers Rating on Unsecured Notes to 'CC'
---------------------------------------------------------------
S&P Global Ratings, on Aug. 13, 2020, lowered its long-term issue
rating on PT Modernland Realty Tbk.'s guaranteed senior unsecured
notes to 'CC' from 'CCC-'. S&P removed the ratings from
CreditWatch, where they were placed on July 2, 2020. The long-term
issuer credit rating on Modernland remains at 'SD' (selective
default).
S&P said, "We lowered the issue rating to reflect our view of a
virtual certainty that Modernland will miss coupon payment due Aug.
30, 2020, on its U.S. dollar notes.
"We see a strong likelihood of a restructuring of Modernland's
outstanding U.S. dollar notes. We could deem that as a distressed
exchange considering the company's depleted liquidity and the
recent restructuring of its Indonesian rupiah (IDR) 150 billion
domestic notes." Modernland failed to repay the domestic notes upon
their maturity on July 7, 2020. Furthermore, the company is yet to
demonstrate any meaningful refinancing progress and flexibility to
find alternative funding options.
Modernland met holders of its U.S. dollar notes on Aug. 12, 2020,
to provide an overview of the company's process and timetable for
restructuring the notes. Modernland appointed financial advisers
and international legal counsel in July to assist with the
restructuring.
The long-term issuer credit rating on Modernland remains at 'SD'
despite the company completing the restructuring of its domestic
notes. That is because S&P expects the company to default on its
other debt obligations.
S&P said, "We believe Modernland has very limited liquid sources to
service the coupon payment of US$8 million due Aug. 30, 2020, and
another US$8.3 million due in October this year. As of March 31,
2020, the company had about IDR180 billion in cash and equivalents
(equivalent to US$11 million) and it had an about US$8 million
coupon payment in April. Modernland's reported sales during the
first half of 2020 were virtually unchanged from that in the first
quarter, at about IDR670 billion.
"We will lower our rating on Modernland to 'D' if the company
defaults on its U.S. dollar notes or restructures them such that we
deem it to be a distressed exchange.
"We could raise our rating on Modernland if the company can
substantially shore up its liquidity and continue to service its
debt obligations."
Modernland is an Indonesia-based property developer. The company
primarily engages in residential and industrial township
development in the suburbs of Jakarta. Its major projects include
Jakarta Garden City, Modern Cikande, and Modern Bekasi.
PP PROPERTI: Fitch Cuts LT Rating to CCC(idn) on Refinancing Risks
------------------------------------------------------------------
Fitch Ratings Indonesia has downgraded Indonesia-based homebuilder
PT PP Properti Tbk's National Long-Term Rating to 'CCC(idn)' from
'BBB-(idn)'/Negative. At the same time, Fitch has downgraded the
rating on PPRO's IDR2 trillion bond, IDR600 billion medium-term
note (MTN) programme and the issuance under the programme to
'CCC(idn)' from 'BBB-(idn)'.
The downgrade reflects PPRO's weakening liquidity position, which
leads to significantly higher refinancing risks for its near-term
maturities, particularly its total MTNs of IDR1.23 trillion
maturing between August and November 2020. The company has turned
to asset sales and divestments to generate liquidity although Fitch
believes this carries significant execution risks as the property
industry has been severely affected by the coronavirus pandemic.
PPRO's rating incorporates a one-notch uplift from its Standalone
Credit Profile of 'ccc-(idn)' due to moderate operational and
strategic linkages with its parent, PT PP Tbk, based on Fitch's
Parent and Subsidiary Rating Linkage criteria.
'CCC' National Ratings denote a very high level of default risk
relative to other issuers or obligations in the same country or
monetary union.
KEY RATING DRIVERS
High Refinancing Risks: Fitch believes PPRO's tight liquidity
position, with cash of IDR215 billion and an undrawn bank loan
facility of IDR751 billion at end-June 2020, will make it
challenging to refinance the IDR1.23 trillion in total MTNs due
August-November 2020. The worsening property market conditions
during the pandemic have pressured its pre-sales and cash
collection, contributing to delays and difficulty in carrying out
its refinancing plans. Therefore, its ability to secure sufficient
liquidity to meet its imminent maturities is finely balanced.
A IDR295 billion shareholder loan facility from PTPP in July-August
2020 will help to refinance the IDR287 billion in MTNs maturing
August 30, 2020. However, PPRO will require significant cash
inflows beyond that to meet the remaining maturing MTNs until
November 2020. The company is focused on asset sales, such as bulk
sales and mall divestments, while there is also the potential for
additional shareholder loans to support liquidity in the next few
months. Fitch understands that some of these options are at an
advanced stage, but the company faces a tight timeframe to complete
the transactions and receive the cash to meet its imminent
maturities.
Negative Cash Flow; Rising Leverage: PPRO is increasingly reliant
on external debt to fund its operations and refinancing capability
as Fitch expects its cash flow from operations, which includes land
bank acquisitions, to remain negative in the medium term as
pre-sales cash collections will remain challenging amid the
pandemic. Fitch therefore expects leverage (net debt/adjusted
inventory) to remain high at around 55%-60% in 2020.
Fitch thinks PPRO has limited flexibility on its construction cost
as most of its projects are high-rise developments. However, the
company plans to preserve cash by focusing on nearly completed
projects this year and may scale back its land acquisition, as it
has sufficient land bank (1H20: 300 hectares) that may drive
pre-sales for the next two-to-three years.
Weakening Pre-Sales Amid Coronavirus: Fitch believes Indonesian
homebuilders, including PPRO, will find it difficult to maintain
pre-sales, especially as new project launches will be hampered by
social-distancing measures. PPRO's attributable pre-sales fell 62%
yoy to around IDR280 billion in 1H20 and the company plans to defer
new launches to 2021. Fitch has therefore cut its non-bulk
attributable pre-sales forecast by 43% to IDR600 billion in 2020, a
68% drop from a year earlier, as it does not expect a significant
pick-up in 2H20.
Moderate Linkage with Parent: PPRO is 64.96%-owned by PTPP, a major
state-owned Indonesian construction company. Fitch assesses that
PPRO has weak legal but moderate operational and strong strategic
linkages with its stronger parent. This is supported by PPRO
sharing the parent's brand name, overlap between their boards and
PPRO's status as one of the largest profit contributors among
PTPP's subsidiaries. PTPP is also PPRO's building contractor. Fitch
uses the 'stronger parent' rating approach, resulting in the
one-notch uplift to PPRO's SCP.
DERIVATION SUMMARY
PPRO's 'ccc-(idn)' SCP reflects the company's pressured liquidity
and elevated refinancing risk due to its diminished ability to
repay total near-term maturities of IDR1.23 trillion from its MTNs
maturing between August and November 2020. Fitch believes the
company's strategy to boost its liquidity from asset sales such as
bulk sales and mall divestments has significant execution risks
amid the economic downturn caused by the pandemic.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within its Rating Case for the Issuer:
- Non-bulk pre-sales cash collection of IDR750 billion by
end-2020
- Non-bulk attributable pre-sales of IDR600 billion in 2020
- No significant asset sales or divestments in 2020
- EBITDA margin of 21% in 2020
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Fitch may upgrade PPRO's ratings if the company is able to
meaningfully improve its liquidity such that it is able to address
its near-term debt maturities
- Stronger linkage with PTPP
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Fitch may downgrade PPRO's ratings by one or more notches if
the company fails to address its debt-servicing requirements
- Weakening linkage with PTPP
LIQUIDITY AND DEBT STRUCTURE
High Refinancing Risk: Fitch thinks PPRO's liquidity, reflected by
its cash position of IDR215 billion and undrawn loan facility of
IDR751 billion by end-June 2020, is under severe pressure,
exacerbated by its high refinancing risks due to the challenges in
repaying its near-term maturities of IDR1.23 trillion in
August-November 2020. The company's strategy of boosting liquidity
through asset sales will also be hampered by the weak property
market sentiment.
SUMMARY OF FINANCIAL ADJUSTMENTS
PPRO reports additions of land for development as cash flow from
investments. Fitch has deducted this item from cash flow from
investments and added it to working capital as cash paid to
suppliers, as Fitch treats such payments as working-capital
outflows.
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.
=========
J A P A N
=========
ANA HOLDINGS: Egan-Jones Lowers Senior Unsecured Ratings to BB-
---------------------------------------------------------------
Egan-Jones Ratings Company, on August 7, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by ANA Holdings Incorporated to BB- from BBB+.
Headquartered in Tokyo, Japan, Ana Holdings Incorporated provides a
variety of air transportation-related services.
=====================
N E W Z E A L A N D
=====================
LSG SKY: Catering Services Company Axes More Than 450 Jobs
----------------------------------------------------------
Otago Daily Times reports that more than 450 workers who provide
airline catering services are being made redundant.
LSG Sky Chefs operates at Christchurch, Auckland, Wellington and
Queenstown airports, servicing airlines including Air New Zealand.
According to the report, the company's website said LSG Sky Chefs'
Christchurch facility has about 90 employees and produces 1.2
million meals per year.
ODT relates that the company said given the border closures,
keeping the staff on is not commercially viable.
It received more than NZD9.6 million in wage subsidies from the
government, the report notes.
=================
S I N G A P O R E
=================
HYFLUX LTD: Group of Bank Lenders Files Judicial Management Bid
---------------------------------------------------------------
Fiona Lam at The Business Times reports that Hyflux Ltd on Aug. 13
announced that the unsecured working group (UWG) of bank lenders
has filed its application for a judicial management order.
The Singapore High Court had extended the deadline to Aug. 12 for
the UWG to file the application, from Aug. 7, BT relates.
According to the report, Justice Aedit Abdullah last month gave the
go-ahead for the group - made up of Mizuho, Bangkok Bank, BNP
Paribas, CTBC Bank, KfW, Korea Development Bank, and Standard
Chartered Bank - to carve their respective shares of debt out of
Hyflux's debt moratorium. This came after the UWG argued that it
could no longer trust Hyflux's management to lead any restructuring
effort.
Meanwhile, the ailing water treatment firm has until 5:00 p.m. on
Aug. 30 to accept Utico's proposed rescue package, BT reports.
BT relates that the Emirati utility firm's offer will be open for
acceptance, whether or not Hyflux is placed under judicial
management. Utico had asserted that its offer could "save" the
Singapore firm from judicial management and guarantee the highest
possible recovery for the holders of Hyflux's perpetual securities
and preference shares, the report says.
About Hyflux
Singapore-based Hyflux Ltd -- https://www.hyflux.com/ -- provides
various solutions in water and energy areas worldwide. The company
operates through two segments, Municipal and Industrial. The
Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers. It has business
operations across Asia, Middle East and Africa.
As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses. The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.
The Company engaged WongPartnership LLP as legal advisors and Ernst
& Young Solutions LLP as financial advisors in this process. On
Jan. 29, WongPartnership applied to discharge themselves due to
difficulties relating to "loss of confidence and good cause" in
working with the client. The Company subsequently appointed
Clifford Chance and Cavenagh Law as its legal advisers in WongP's
place.
In November 2019, Hyflux entered into a restructuring deal with
United Arab Emirates-based utility Utico FZC, according to
Reuters.
PRIMA GROUP: Revolving Restaurant Closes After 43 Years
-------------------------------------------------------
ChannelNewsAsia reports that after 43 years, Prima Tower Revolving
Restaurant will spin no more.
CNA, citing 8world News, relates that the restaurant said that its
closure was due to the impact of COVID-19.
According to CNA, Prima Tower Revolving Restaurant was closed on
April 6, a day before "circuit breaker" measures came into force.
Plans had been made for the restaurant to reopen on Aug. 1, but the
toll that the pandemic took on the food and beverage industry meant
it was one of many eateries forced to shutter its doors for good,
the report says.
As of 2:00 p.m. on Saturday, Aug. 15, the Prima Tower website is no
longer accessible.
Mr. Jiang Yongyao, chairman of Prima Tower Revolving Restaurant,
told 8world News that closing the restaurant was a difficult
decision, CNA relays.
"It's a shame that a 43-year-old business has come to this," he
said.
According to the report, Mr. Jiang said about 30 employees are
affected by the closure. The company consulted the Singapore Hotel
Association and the Food, Drinks & Allied Workers Union (FDAWU) on
a severance package for the employees.
CNA says Prima Group, which owns the restaurant, will also seek the
help of Workforce Singapore and the National Trades Union Congress
to seek employment or skills training opportunities for those
affected.
Employees of the restaurant told 8world News that some staff
members might be transferred to other departments, but were unsure
of other developments, according to CNA. A foreign worker said that
he was relatively satisfied with the severance package, and planned
to return to China.
Prima Tower Revolving Restaurant opened in 1977. Touted to be the
"world's only revolving restaurant nestled on a grain silo" on
Prima's website, it offers authentic Beijing fare, as well as
panoramic views of Sentosa Island, Mount Faber and the Singapore
Cable Car.
XIHE HOLDINGS: Placed Under interim Judicial Management
-------------------------------------------------------
The Business Times reports that Xihe Holdings, the exempt private
company owned by Hin Leong founder OK Lim and his son, has been
placed under interim judical managers (IJMs), after more creditors
threw their support behind OCBC Bank's application to take control
over Xihe's restructuring out of the Lim family's hands.
A Singapore High Court appointed Grant Thornton Singapore as IJMs
for Xihe Holdings during a chambers hearing on Aug. 13, BT says.
BT relates that in an affidavit earlier this month, ntan Corporate
Advisory, the adviser to the Lim family and Xihe, wrote that aside
from OCBC, which filed the IJM application in July, the Xihe Group
"is very close to reaching a constructive agreement with a majority
of the Xihe lenders" on the terms of a consensual restructuring.
But that majority appears to have swung the other way. OCBC's IJM
application also drew letters of support from the IJMs and
creditors of sister company Hin Leong Trading, BT relays. Hin Leong
was one of Singapore's biggest shipping-fuel suppliers before it
went insolvent in April.
In court filings seen by BT, OCBC argued that the consensual
restructuring envisioned by the Xihe Group "appears to amount to
little more than a controlled sale of vessels, while seeking
financing and charters to tide over the interim period".
Xihe Holdings, the entity under IJM, is the holding company for 60
per cent of the Xihe Group's fleet of 136 vessels as at July 22, BT
discloses.
The remaining 40 per cent of the Xihe Group's vessels are owned by
Xihe Capital's subsidiaries and special purpose vehicles which are
directly owned by the Lim family. It remains to be seen if Xihe
Capital's lenders will file for IJM too.
According to BT, OCBC had applied for IJMs to take charge of Xihe
Holdings on the grounds that it cannot trust Xihe's management, led
by the Lim family, to protect creditors' interests after evidence
of fraud was uncovered at sister companies Hin Leong Trading and
Ocean Tankers in April.
The bank noted that Xihe has since taken steps to address these
concerns, though its actions appear to "give the veneer of
independence and new management instead of the actual independence
guaranteed by JM".
After OK Lim and his children had either resigned or agreed to
resign from Xihe Holdings and Xihe Capital, Kenny Lim Oon Cheng,
the brother of OK Lim, was appointed executive director of both
companies on July 1. He has since stepped down on July 23 "in the
spirit of increased transparency", but remains interim chief
executive, BT notes.
BT relates that Patrick Daniel, former deputy chief executive of
Singapore Press Holdings and Tan Huay Lim, former audit partner of
KPMG, were also appointed independent directors of Xihe Capital and
Xihe Holdings on July 1.
While Mr. Kenny Lim was not previously involved in any of his
brother's companies, OCBC noted that the man had previously been
subject to civil penalty action by the Monetary Authority of
Singapore in the sum of SGD9.6 million for insider trading and
false trading in 2015, according to BT.
It added: "OCBC strongly distrusts Kenny Lim or any appointee by
the Lims, and does not see how the Lims' installation of their own
appointees lends Xihe Holdings any genuine independence from the
Lims."
Mr. Kenny Lim has also failed to respond to any of the fraud
allegations raised in the reports produced by the IJMs of Hin Leong
and Ocean Tankers, OCBC said: "Despite claiming that these reports
suffer 'a number of shortcomings', the debtor's affidavits seem
incapable of responding to any of its conclusions," BT relays
Ernst & Young, the IJM for Ocean Tankers, previously reported that
Xihe entities had transferred some US$208.1 million to Hin Leong
before its collapse, routing the payments through Ocean Tankers
"for no valid commercial purpose".
BT says Mr. Kenny Lim replied in a July 28 filing that the payments
were intercompany loans to Ocean Tankers in the ordinary course of
business: "There was no prohibition on such intercompany lending."
OCBC said: "Xihe is in the business of ship-owning, not in the
business of lending money to related companies. Instead, the
purpose of the 'loan' appears to be to cover up for the massive
losses that Hin Leong incurred in the course of its trading over
the years."
Ernst & Young recently commenced proceedings against the Lim family
in court to claw back some US$19 million in payments made to them
shortly before Ocean Tankers filed for a debt moratorium. But this
development is "completely irrelevant" to the IJM application, Mr.
Kenny Lim had argued.
Separately, Xihe Holdings questioned OCBC's true objectives for
putting it under IJM, BT reports.
According to BT, Xihe's counsel, Haridass Ho & Partners, said: "One
thought that will continue to recur is why is OCBC, which has
security over the vessels whose value is sufficient to pay it off,
choosing not to enforce its security (and) why is it instead
seeking to take control of the debtor companies, including Xihe
Holdings, when it can have no conceivable interest in what happens
to these companies once it is paid.
"There is clearly more to these applications than meets the eye,
and it is that this is a backdoor attempt to obtain security over
the Lim family's assets for its claims against Hin Leong Trading
and Ocean Tankers. This is an abuse of process and is in any event
a deeply troubling feature that this Court must have regard to."
Xihe Holdings is a Singapore-based tanker shipowner.
=====================
S O U T H K O R E A
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SSANGYONG MOTOR: Auditor Raises Going Concern Doubt
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Yonhap News Agency reports that the auditor of SsangYong Motor Co.
on Aug. 14 refused to deliver an opinion on the carmaker's ability
to remain a going concern, bringing trading of the company's stock
to a halt.
KPMG Samjong Accounting Corp. declined to give its opinion on
SsangYong Motor's earnings results for the January-June period and
the trading of SsangYong Motor stocks will resume on Aug. 18, the
company said in a regulatory filing, Yonhap relays.
Yonhap relates that Samjong was also skeptical about SsangYong
Motor's ability to continue operations after the company continued
to report net losses in the January-March period.
On Aug. 14, SsangYong shares were suspended after having dipped 0.1
percent to KRW3,530. The broader KOSPI posted a 1.2 percent loss,
the report says.
If Samjong gives no opinion on SsangYong's annual financial
statements for the year, the company can appeal the decision within
a week and will be given one year to improve its financial health,
according to Yonhap.
Yonhap notes that SsangYong could be delisted if its accountant
again refuses to offer an opinion on the company's annual
performance for the following year after the one-year period.
According to the report, SsangYong has struggled with declining
sales due to a lack of new models and its Indian parent Mahindra &
Mahindra Ltd.'s decision not to inject fresh capital into the
Korean unit.
Mahindra said early this year it would inject KRW230 billion into
SsangYong for the following three years after obtaining approval
from its board. But its board voted against the investment plan
last month as the spreading COVID-19 outbreak continues to affect
vehicle sales in global markets, Yonhap recalls.
Instead of the proposed KRW230 billion, Mahindra said it would
consider a "special one-time infusion" of up to KRW40 billion over
the next three months to help SsangYong continue operations, Yonhap
relates.
Yonhap says the one-time cash injection falls far short of the
KRW500 billion Mahindra Managing Director Pawan Goenka had said is
needed to turn SsangYong around by 2022.
SsangYong has reported net losses in the past 14 quarters through
the second quarter of this year. Its net losses narrowed to KRW8.85
billion in the second quarter from KRW51.45 billion a year earlier,
Yonhap discloses.
From January to July, SsangYong sold a total of 56,846 vehicles,
down 28 percent from 78,687 units in the year-ago period, the
report adds.
SsangYong's lineup consists of the flagship G4 Rexton, as well as
the Tivoli, Korando and Rexton Sports.
In 2011, Mahindra acquired a 70 percent stake in SsangYong Motor
for KRW523 billion (US$437.93 million). It currently owns a 74.65
percent stake in the SUV-focused carmaker.
Mahindra plans to reduce its controlling 74.65 percent stake in
SsangYong to below 50 percent if its finds a new investor, Yonhap
notes.
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd.
engages in the manufacture and sale of automobiles. The Company
mainly manufactures and sells recreational vehicles (RVs), sports
utility vehicles (SUVs), multi-purpose vehicles (CDVs) and
passenger cars under the brand name of rexton sports, korando,
korando sports, korando turismo, tivoli, tivoli air and others. The
Company also provides automobile parts. The Company distributes its
products within domestic market and to overseas markets.
===========
T A I W A N
===========
UNITED MICROELECTRONICS:Egan-Jones Hikes Sr. Unsec. Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on August 6, 2020, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by United Microelectronics Corporation to BB+ from BB.
Headquartered in Hsinchu, Taiwan, United Microelectronics
Corporation designs, manufactures, and markets integrated circuits
(ICs) and related electronic products.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2020. All rights reserved. ISSN: 1520-9482.
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