/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/201030.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, October 30, 2020, Vol. 23, No. 218 Headlines A U S T R A L I A ALTURA MINING: First Creditors' Meeting Set for Nov. 5 ARROW ACCESS: Second Creditors' Meeting Set for Nov. 5 BOTANICA BRANDS: Second Creditors' Meeting Set for Nov. 5 HUME INDUSTRIAL: Second Creditors' Meeting Set for Nov. 6 PEPPER I-PRIME 2020-1: S&P Assigns B (sf) Rating on Class F Notes SMARD PTY: First Creditors' Meeting Set for Nov. 9 B A N G L A D E S H [*] BANGLADESH: Defaulted Loans at NBFIs Soar Amid Irregularities C H I N A INNER MONGOLIA: Fitch Publishes BB+ LT IDRs, Outlook Stable KAIDI ECOLOGICAL: To Be Delisted; Failed to File Audited Reports PUTIAN STATE: Fitch Assigns BB+ LT IDRs, Outlook Stable YANZHOU COAL: Moody's Assigns Ba1 Rating on New USD Sr Unsec. Notes I N D I A BHILAI INSTITUTE: CRISIL Keeps D Debt Rating in Not Cooperating BIHAR RAFFIA: CRISIL Keeps D Debt Ratings in Not Cooperating BSCPL INFRA: CRISIL Withdraws D Rating on INR1884.09cr Loan CAPTAB BIOTEC: CRISIL Keeps D Debt Ratings in Not Cooperating CARE-K: CRISIL Keeps D Debt Ratings in Not Cooperating CHANDI MATA: CRISIL Hikes Rating on INR4.85cr Loan from D DANDAPAT COLD: CRISIL Hikes Rating on INR15cr Loans from D DANDAPAT HEEMGHAR: CRISIL Hikes Rating on INR5cr Loan to B- ERODE CRITICAL: CRISIL Keeps D Debt Ratings in Not Cooperating EVEREST KANTO: CRISIL Withdraws C Rating on INR368.2cr Loan FIREFLY BATTERIES: CRISIL Keeps D Debt Ratings in Not Cooperating GANESHA MOTORS: CRISIL Keeps C Debt Ratings in Not Cooperating GENGA MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating H.S. RAMESH: CRISIL Keeps D Debt Ratings in Not Cooperating IL&FS LTD: SEBI Drops Case vs. Unit Over Underwriter Norms Breach KARTHIKAI TEXTILE: CRISIL Keeps D Debt Ratings in Not Cooperating KAVERI INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating KEYA BUILDTECH: CRISIL Keeps D Debt Rating in Not Cooperating KHUSHI EXIM: CRISIL Keeps D Debt Rating in Not Cooperating KUTTANAD RUBBER: CRISIL Keeps D Debt Ratings in Not Cooperating LOTUS PROJECTS: CRISIL Keeps D Debt Ratings in Not Cooperating PANCHAM JEWELLERS: CRISIL Keeps D Debt Ratings in Not Cooperating PARAMESHWARI PROJECTS: CRISIL Keeps D Ratings in Not Cooperating PATDIAM JEWELLERY: Ind-Ra Affirms BB- Long Term Issuer Rating PAWAR PATKAR: CRISIL Keeps D Debt Ratings in Not Cooperating PRASANNA EDUCATION: CRISIL Withdraws D Rating on INR10cr LT Loan PRITHVI FERRO: CRISIL Keeps D Debt Ratings in Not Cooperating RAIHAN HEALTHCARE: CRISIL Keeps D Debt Rating in Not Cooperating RAVINA HEALTH: CRISIL Keeps D Debt Rating in Not Cooperating RCI INDUSTRIES: Ind-Ra Affirms D Rating, Moves to Non-Cooperating RIDDHI SIDDHI: CRISIL Keeps D Debt Ratings in Not Cooperating SAISREE ENGINEERS: CRISIL Keeps D Debt Ratings in Not Cooperating SHATABDI SHIKSHA: CRISIL Keeps D Debt Rating in Not Cooperating SHIV SHAKTI: CRISIL Keeps D Debt Ratings in Not Cooperating SKYHIGH HOSPITALITY: CRISIL Keeps D Rating in Not Cooperating SUGANYA CONSTRUCTIONS: Ind-Ra Moves BB Rating to Non-Cooperating SUPRIYA COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating TRIMURTI FOODTECH: CRISIL Keeps D Debt Ratings in Not Cooperating U.S. SRIVASTAVA: Ind-Ra Keeps BB Loan Rating in Non-Cooperating UNITED EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating VENTURES NAGPUR: CRISIL Keeps D Debt Ratings in Not Cooperating I N D O N E S I A ALAM SUTERA: Moody's Confirms CFR at Caa1, Outlook Negative ALAM SUTERA: S&P Downgrades LT ICR to 'D' on Distressed Exchange J A P A N HITACHI METALS: To Cut 1,000 Jobs Through Voluntary Redundancy M A L A Y S I A AIRASIA GROUP: Malaysia's Anti-Graft Agency Probes Carrier's Loan P H I L I P P I N E S ABRA ELECTRIC: PSALM Sends Demand Letter to Settle Arrears T H A I L A N D NOK AIR: Receives No Objections to Enter Business Rehabilitation - - - - - ================= A U S T R A L I A ================= ALTURA MINING: First Creditors' Meeting Set for Nov. 5 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Altura Mining Limited and Altura Lithium Operations Pty Ltd will be held on Nov. 5, 2020, at 9:30 a.m. at Mezzanine Level, 28 The Esplanade, in Perth, WA. Clifford Stuart Rocke and Jeremy Joseph Nipps of Cor Cordis were appointed as administrators of Altura Mining on Oct. 26, 2020. ARROW ACCESS: Second Creditors' Meeting Set for Nov. 5 ------------------------------------------------------ A second meeting of creditors in the proceedings of Arrow Access (QLD) Pty Ltd has been set for Nov. 5, 2020, at 10:00 a.m. at Level 3, 12 Short Street, in Southport, Queensland. 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 Nov. 4, 2020, at 5:00 p.m. Matthew John Bookless and Terry Grant van der Velde of SV Partners were appointed as administrators of Arrow Access on Oct. 1, 2020. BOTANICA BRANDS: Second Creditors' Meeting Set for Nov. 5 --------------------------------------------------------- A second meeting of creditors in the proceedings of Botanica Brands Pty Ltd has been set for Nov. 5, 2020, at 11:00 a.m. via electronic means only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 4, 2020, at 12:00 p.m. John Richard Park and Kelly-Anne Trenfield of FTI Consulting were appointed as administrators of Botanica Brands on Sept. 30, 2020. HUME INDUSTRIAL: Second Creditors' Meeting Set for Nov. 6 --------------------------------------------------------- A second meeting of creditors in the proceedings of Hume Industrial Pty Ltd has been set for Nov. 6, 2020, at 11:00 a.m. via teleconference only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 5, 2020, at 4:00 p.m. Gavin Moss and Desmond Teng of Chifley Advisory were appointed as administrators of Hume Industrial on Sept. 30, 2020. PEPPER I-PRIME 2020-1: S&P Assigns B (sf) Rating on Class F Notes ----------------------------------------------------------------- S&P Global Ratings assigned ratings to eight classes of prime residential mortgage-backed securities (RMBS) issued by Permanent Custodians Ltd. as trustee of Pepper I-Prime 2020-1 Trust. Pepper I-Prime 2020-1 Trust is a securitization of prime residential mortgages originated by Pepper Homeloans Pty Ltd. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including its view that the credit support is sufficient to withstand the stresses it applies. The credit support for the rated notes comprises note subordination and excess spread. The assessment of credit risk takes into account the underwriting standards and centralized approval process of the seller, Pepper Homeloans. -- The availability of a yield-enhancement reserve, amortization reserve, and overcollateralization amount, which will all be funded by excess spread to cover potential yield shortfalls and loss reimbursements and to repay principal on the notes at various stages of the transaction's term. -- The extraordinary expense reserve of A$150,000, funded by Pepper on or before closing, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 2.2% of the outstanding balance of the notes, and principal draws, are sufficient under our stress assumptions to ensure timely payment of interest. -- Loss of income for borrowers in the coming months due to the effects of COVID-19 might put upward pressure on mortgage arrears over the longer term. S&P said, "We recently updated our outlook assumptions for Australian RMBS in response to changing macroeconomic conditions as a result of the COVID-19 outbreak. The collateral pool as of Sept. 30, 2020, includes two loans that were under a COVID-19 hardship payment arrangement. We undertook additional cash-flow sensitivity analysis to assess the rated notes' sensitivity to delays in borrower payments should additional loans enter hardship arrangements following the cut-off date." S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The current consensus among health experts is that COVID-19 will remain a threat until a vaccine or effective treatment becomes widely available, which could be around mid-2021. S&P said, "We are using this assumption in assessing the economic and credit implications associated with the pandemic. As the situation evolves, we will update our assumptions and estimates accordingly." RATINGS ASSIGNED Pepper I-Prime 2020-1 Trust Class Rating Amount (A$ mil.) A1-s AAA (sf) 220.0 A1-a AAA (sf) 714.8 A2 AAA (sf) 95.3 B AA (sf) 22.0 C A (sf) 17.5 D BBB (sf) 12.0 E BB (sf) 7.6 F B (sf) 5.6 G NR 5.2 NR--Not rated. SMARD PTY: First Creditors' Meeting Set for Nov. 9 -------------------------------------------------- A first meeting of the creditors in the proceedings of Smard Pty Ltd (Formerly "Smithfive3199 Pty Ltd") will be held on Nov. 9, 2020, at 1:00 p.m. at the offices of Hamilton Murphy, Level 1, 255 Mary Street, in Richmond, Victoria. Stephen Robert Dixon of Hamilton Murphy were appointed as administrators of Smard Pty on Oct. 27, 2020. =================== B A N G L A D E S H =================== [*] BANGLADESH: Defaulted Loans at NBFIs Soar Amid Irregularities ----------------------------------------------------------------- The Daily Star reports that defaulted loans at non-bank financial institutions (NBFI) escalated 26.51 per cent in the first half of 2020 because of a lack of corporate governance in absence of the central bank's proper supervision. Non-performing loans (NPLs) in the 33 NBFIs in Bangladesh stood at BDT8,905.62 crore in June, which are 13.29 per cent of the outstanding loans, the Daily Star discloses citing data from the central bank. It was BDT6,399 crore, or 9.53 per cent of the total loans as of December last year. According to the report, experts said scamsters siphoned off a large volume of funds from some of the NBFIs in the form of loans using fake documents, creating piles of defaulted loans in the sector. Although the central bank earlier asked the NBFIs to keep classification unchanged until December, though upward classification changes are allowed, NPLs in the sector shot up alarmingly as some of them had concealed the delinquent loans through window dressing, the Daily Star states. Window dressing is a technique used by companies and financial managers to manipulate financial statements and reports to show more favorable results. Although window dressing is illegal or fraudulent, it is usually done to mislead investors. Defaulted loans at the International Leasing and Financial Services (ILFS) stood at BDT3,356.83 crore in June, up 256.47 per cent from that six months earlier, the Daily Star discloses. According to the Daily Star, Proshanta Kumar Halder, former managing director of NRB Global Bank and Reliance Finance, allegedly embezzled around BDT3,500 crore from four of the NBFIs, creating a haphazard situation for the entire NBFI sector. The NBFIs are the ILFS, People's Leasing and Financial Services (PLFS), FAS Finance and Investment, and Bangladesh Industrial Finance Company (BIFC), according to a probe of the central bank, the report discloses. The central bank found that BDT1,596 crore was transferred from the ILFS in violation of rules through 48 accounts of various organisations related to the directors and shareholders, the report notes. The central bank is now in a process to liquidate the PLFS after it failed to repay the depositors' money, the Daily Star adds. The amount of NPLs would have been much larger had BDT600 crore to BDT700 crore of default loans of the fallen PLFS were added to the list, said a central bank official, the report relays. Defaulted loans in the BIFC stood at BDT783.97 crore, or 95.47 per cent of its total disbursed loans as of June, the Daily Star discloses. "The NBFI sector has been facing an image crisis due to a wide-range of corruption in five to seven financial organisations," the report quotes Khondker Ibrahim Khaled, a former deputy governor of the central bank, as saying. "PK Halder is largely responsible for the ongoing crisis. And the central bank can't avoid its responsibility as it had kept silent when the money was being looted from the NBFIs," he said. Measures should be taken to bring Halder back to Bangladesh to recover the embezzled fund, Khaled said. Halder is said to have fled to Canada. Also, both the government and the central bank should take strict measures to ensure punitive actions against the scamsters, Khaled said, the report adds. ========= C H I N A ========= INNER MONGOLIA: Fitch Publishes BB+ LT IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has published China-based steel producer Inner Mongolia Baotou Steel Union Co., Ltd.'s (BSUC) Long-Term Foreign-Currency Issuer Default Rating (IDR) and foreign-currency senior unsecured rating of 'BB+'. The Outlook is Stable. BSUC ratings are derived from Fitch's internal assessment of the consolidated credit profile of BSUC's immediate parent, Baotou Iron & Steel (Group) Co., Ltd. (BISC), which is 77%-owned by the Inner Mongolia Autonomous Region. Fitch assesses BISC's ratings based on four factors set out in its Government-Related Entities Rating Criteria. BSUC's ratings, in turn, are linked to its parent's creditworthiness under Fitch's Parent and Subsidiary Linkage Rating Criteria due to strong legal, operational and strategic ties between the two entities. KEY RATING DRIVERS Strong Parent-Subsidiary Linkage: BSUC is 55%-owned by BISC and is the main steel operating subsidiary of the parent. In 2019, BSUC accounted for 80% of total assets and more than 65% of the group's consolidated EBITDA. BISC has absolute management control over BSUC with significant management overlap between the two. BISC provides guarantees to a large part of BSUC's bank debt and has injected numerous operating assets into BSUC. Fitch rates BSUC on a top-down basis from its internal assessment of BISC's credit profile under its criteria. Funds Parent's Rare Earths Operations: BISC is the largest rare earth producer in the world and receives around 50% of the annual rare earth ore production quota issued by China's Ministry of Industry and Information Technology (MIIT) each year. China has a near-monopoly of the global rare earth market, and the Chinese government sees the industry as strategically important. While the majority of BISC's rare earth resources and production are not in BSUC, BSUC's profits help to fund BISC's mining and rare earth development operations, which have been historically unprofitable. Leverage to Remain High: Fitch has assessed that BSUC's Standalone Credit Profile will stay weak as Fitch expects leverage to remain close to the 2019 level in the medium term. In 2019, BSUC's FFO net leverage rose to 5x from 3x in 2018, mainly due to lower steel profitability. Fitch expects leverage to remain at 5x-6x in 2020-2022. However, Fitch expects BSUC's financial profile to be stable in the near term as the company does not have major capex plans in the next few years. BSUC's financial flexibility metrics are likely to remain intact, with FFO fixed-charge coverage maintained at just below 3x. Adequate Liquidity, Reliable Funding Access: At end-June 2020, BSUC had CNY18 billion in short-term debt outstanding, compared with CNY4 billion of cash on hand and CNY9 billion in unused available credit facilities. Over 50% of BSUC's debt is short-term. Fitch expects BSUC to be able to roll over its short-term debt given support from BISC. BISC, excluding BSUC, had CNY14 billion in available credit facilities at end-June 2020 and has reliable funding access due to its strong government support and long-term relationships with major commercial and policy banks. DERIVATION SUMMARY BSUC is rated on a top-down basis from its parent BISC, as per Fitch's Parent and Subsidiary Linkage Rating Criteria. Fitch's internal assessment of BISC's credit profile is based on Fitch's Government-Related Entities Rating Criteria. BISC is 77%-owned by the Inner Mongolia Autonomous Region government and plays a strategically important role in rare earths production for China. BSUC's ratings are derived using the same methodology used for Sinochem Hong Kong (Group) Company Limited (A/Stable) and COFCO (Hong Kong) Limited (A/Stable). KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Low single-digit revenue decline in 2020, then revenue to rise by 1% on average annually in 2021-2023 - EBITDA margin of 9%-10% during 2020-2023 - Annual capex of around CNY2 billion during 2020-2023 - No major acquisitions or divestitures during 2020-2023 RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - An upgrade of Fitch's internal assessment of the creditworthiness of Inner Mongolia Autonomous Region. - Increase in the likelihood of support from the Inner Mongolia government Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of Fitch's internal assessment of the creditworthiness of Inner Mongolia. - Weakening of likelihood of support from the Inner Mongolia government. - Weakening linkages between BISC and BSUC. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: At end-June 2020, BSUC had CNY18 billion in short-term debt outstanding, compared with CNY4 billion in cash on hand and CNY9 billion in unused available credit facilities. The credit facilities were uncommitted, but Fitch believes they are adequate, as committed facilities are uncommon in China. BSUC's debt maturity is concentrated, with short-term debt accounting for over 50% of total debt. Fitch expects BSUC to be able to continue rolling over its short-term debt given its support from BISC. 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS BISC is 77% owned by the Inner Mongolia Autonomous Region and Fitch assesses BISC's ratings based on four factors set out in its Government-Related Entities Rating Criteria BSUC's ratings are notched down from BISC's ratings under Fitch's Parent Subsidiary Rating Linkage Criteria. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. KAIDI ECOLOGICAL: To Be Delisted; Failed to File Audited Reports ---------------------------------------------------------------- Wang Juanjuan and Denise Jia at Caixin Global report that one of China's biggest biomass electricity producers will be delisted from the Shenzhen Stock Exchange after its auditor refused to sign off on financial statements for three consecutive years. Kaidi Ecological and Environmental Technology Co. Ltd., a subsidiary of the new-energy company Sunshine Kaidi New Energy Group Co. Ltd., is still suffering from a debt crisis two years after defaulting on a nearly CNY700 million ($105.7 million) bond in May 2018, Caixin says. According to Caixin, the delisting is another blow for a money-losing company that's been fighting with regulators for years. Headquartered in Wuhan, Kaidi was founded in 1993 by Chen Yilong. In 2018, the securities regulator determined that related parties controlled by Mr. Chen, the company's chairman, inappropriately used about CNY1.05 billion of the company's nonoperating funds, a claim repeatedly denied by Mr. Chen, who has resisted a regulatory investigation, the report notes. Kaidi Ecological And Environmental Technology Co., Ltd provides power generation services. The Company offers biomass power generation, hydroelectric power generation, wind power generation, and other services. Kaidi Ecological And Environmental Technology also markets coal products. PUTIAN STATE: Fitch Assigns BB+ LT IDRs, Outlook Stable ------------------------------------------------------- Fitch Ratings has assigned Putian State-Owned Assets Investment Co., Ltd. (PTSI) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) of 'BB+'. The Outlook is Stable. PTSI, established in 2004, is fully owned and controlled by the government of Putian municipality, a city on the south-eastern coast of China. The government has appointed PTSI as its comprehensive state-owned asset investment platform. PTSI is mainly engaged in primary-land development, urban-infrastructure construction, railway and port investment, and the promotion of investments in the industrial and financial sectors. PTSI also has commodity trading and real estate operations. KEY RATING DRIVERS 'Very Strong' Status, Ownership, and Control: PTSI is a limited-liability company that is wholly owned by the Putian State-owned Assets Supervision and Administration Commission (SASAC), a sub-department of the city government. Putian SASAC has direct control and oversight of the company's board and monitors its strategic planning and finances. All major corporate events require government approval. 'Strong' Support Record and Expectations: PTSI has a solid government support record as the city's major government-related entity (GRE) to invest in primary-land development and urban-infrastructure construction, as well as promote domestic industries. PTSI received recurring capital and asset injections from the government in 2017-2019, which were mainly to support the development of not-for-profit infrastructure projects. Fitch has strong expectations support will continue in light of the history of support and PTSI's strategic importance to the Putian government. 'Moderate' Socio-Political Implications of Default: Fitch believes PTSI plays a key role in promoting Putian's urban development. Hence, a default could disrupt the city's economic development. The 'Moderate' socio-political implications of a default by PTSI mainly consider the availability of substitutes for PTSI as Putian has more than one GRE, although there may be some economic implications. 'Strong' Financial Implications of Default: Fitch believes a default of PTSI will have a significant effect on the financing of the city's remaining GREs due to the company's asset size and the substantial receivables due from the government. PTSI also has funding from multilateral channels. Thus, a failure by the government to provide timely support, leading to a default by PTSI, could significantly affect the financing ability of the government and other local GREs. 'b' Standalone Credit Profile: The assessment is driven by the company's weak financial profile. The ratio of net debt to EBITDA was over 40x at end-2019 and Fitch expects leverage to decrease to around 34x in the next five years under the rating case. Fitch believes the weak credit profile is mitigated by strategic government links, which encourage financial support for the company. Fitch assesses PTSI's revenue defensibility as 'Weaker' because it is exposed to the general economic cycle and has low price-bargaining power. Fitch rates PTSI's operating risk as 'Midrange' based on its predictable costs. DERIVATION SUMMARY PTSI ratings are assessed under Fitch's Government-Related Entities Rating Criteria, reflecting Putian municipality's strong control and historical support of the company. Fitch has also factored in the importance of PTSI to the city as a major urban developer. PTSI's Standalone Credit Profile is assessed at 'b' under its Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - An upgrade of Fitch's credit view on Putian municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would lead to positive rating action. - An increase in the incentive for Putian municipality to provide support to PTSI, including stronger socio-political or financial implications of a default by the company, or a stronger support record and expectation may trigger positive rating action. - An improvement its Standalone Credit Profile would be positive for the ratings of the company. Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of Fitch's credit view on Putian municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would lead to negative rating action. - Weaker assessment of the socio-political and financial implications of a default, a weaker support record and expectations or a dilution in the government's shareholding may lead to negative rating action. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. YANZHOU COAL: Moody's Assigns Ba1 Rating on New USD Sr Unsec. Notes ------------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to the proposed USD senior unsecured notes to be issued by Yancoal International Resources Development Co., Limited, and guaranteed by Yanzhou Coal Mining Company Limited (Yanzhou Coal, Ba1 stable). The rating outlook is stable. RATINGS RATIONALE The Ba1 rating on the proposed notes reflects the irrevocable and unconditional guarantee from Yanzhou Coal and the fact that the notes will rank pari passu with Yanzhou Coal's other senior unsecured obligations. The proposed bond issuance will improve Yanzhou Coal's liquidity and have limited effect on its credit metrics as the company will primarily use the proceeds to refinance existing debt. Yanzhou Coal's Ba1 corporate family rating (CFR) incorporates its standalone credit profile and a two-notch uplift based on expected support from its parent Yankuang Group Company Limited (Yankuang, Ba1 stable). Moody's considers the credit profiles of Yanzhou Coal and Yankuang as closely linked, given the fact that Yanzhou Coal is Yankuang's flagship subsidiary, accounting for 66% and 73% of the parent's total assets and revenue as of the end of June 2020 under PRC GAAP. Moody's support assumption also takes into consideration the importance of Yanzhou Coal's mining assets to Yankuang and ultimately to the Shandong provincial government, in terms of economic contributions and employment. Yanzhou Coal's standalone credit profile is supported by (1) its diversified coal mining assets and related infrastructure; (2) the good quality of Australian coal under its subsidiary Yancoal Australia, which has low financial leverage; (3) its low-cost mining operations in Shandong Province; and (4) its good liquidity. At the same time, Yanzhou Coal's standalone credit profile is constrained by (1) the company's moderately high debt leverages relative to its rated global and regional peers following years of expansion and acquisitions; (2) carbon transition risk in the long term; and (3) the execution and financial risks related to its investments in the financial sector. Yanzhou Coal's leverage for the 12 months to June 2020 -- as measured by Moody's-adjusted debt/EBITDA -- increased to 4.7x from 3.6x in 2019 due to the impact of COVID-19 on coal prices. Moody's expects the company's leverage will improve to around 4.0x through 2020 as China's coal prices rebound in 2H2020 on the back of a gradual recovery in demand. Such level of leverage supports its standalone credit profile. Yanzhou Coal's liquidity profile is strong. Its cash on hand and projected operating cash flow are more than sufficient to cover its planned capex and upcoming debt maturities over the next 12 months. Yanzhou Coal's CFR also takes into account the following environmental, social and governance (ESG) considerations. Yanzhou Coal faces elevated environmental risks associated with the coal mining industry, including carbon transition risks as countries seek to reduce their reliance on coal-fired power. These risks are partially mitigated by Yanzhou Coal's geographically diversified customer base across Japan, Korea, China, and Australia. The company has also made total investments of RMB3.2 billion between 2018 and 2019 in environmental protection, focusing on reducing air, water and dust pollution. Yanzhou Coal is also exposed to social risks associated with the coal mining industry, including health and safety and responsible production. These risks are somewhat mitigated by the company's "zero mine site accidents" goal, and by its sponsorship of corporate social responsibility projects such as poverty alleviation campaigns in Shandong Province. With respect to governance, Yanzhou Coal's ownership is concentrated in its parent Yankuang, which directly and indirectly owned 56.01% of the company as of June 2020. However, this risk is mitigated by Yanzhou Coal's listing on both the Hong Kong and Shanghai stock exchanges, and by the Shandong government's close supervision over Yanzhou Coal through Yankuang. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Yanzhou Coal's stable rating outlook mirrors the stable outlook on Yankuang's rating, reflecting the close links between the two companies' credit profiles. This outlook also reflects Moody's expectation that there will be no material changes in the company's overall business profile or its strategic importance to Yankuang and ultimately to the Shandong provincial government over the next one to two years. Yanzhou Coal's rating would be upgraded if Yankuang's rating is upgraded, which would reflect Yankuang's ability to strengthen its financial profile without any adverse changes in Moody's assumption of government support. Yanzhou Coal's rating would be downgraded if Yankuang's rating is downgraded, which would reflect a material deterioration in the group's financial profile. Evidence of weakening government support for Yankuang or a significant increase in its investments in non-coal-related commercial businesses would also pressure Yanzhou Coal's rating. The principal methodology used in this rating was Mining published in September 2018. Yanzhou Coal Mining Company Limited listed on the Shanghai and Hong Kong stock exchanges in 1998. As of 30 June 2020, it was 56.01% owned by Yankuang Group Company Limited, a state-owned enterprise that is in turn wholly owned by the Shandong Provincial Government. As of 30 June 2020, Yanzhou Coal owned and operated various coal mines across China and Australia, including in Shandong and Shaanxi provinces and the Inner Mongolia Autonomous Region in China, as well as in the Australian states of Queensland, New South Wales and Western Australia. ========= I N D I A ========= BHILAI INSTITUTE: CRISIL Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the rating on bank facilities of Bhilai Institute of Technology Trust (BITT) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 9.75 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with BITT for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 BITT, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on BITT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BITT continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1986, BITT manages BITD (started in 1986) and BITR (started in 2009). BITD offers a variety of graduate and post-graduate courses in engineering, business administration, and computer applications, as well as a doctorate in engineering, chemistry, environmental science, and applied physics; BITR offers graduate courses in engineering. BIHAR RAFFIA: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Bihar Raffia Industries Limited (BRIL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 CRISIL D (ISSUER NOT COOPERATING) Funded Interest 5.21 CRISIL D (ISSUER NOT Term Loan COOPERATING) Proposed Long Term 4.54 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 1.90 CRISIL D (ISSUER NOT COOPERATING) Working Capital 11.80 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with BRIL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 BRIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on BRIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BRIL continues to be 'CRISIL D Issuer Not Cooperating'. BRIL, incorporated in 1998, manufactures bulk packaging materials made of polypropylene and high-density poly ethylene (HDPE). The company has two units, at Jamshedpur in Jharkhand and at Satna in Madhya Pradesh, with combined capacity of 7500 tonne per annum. BSCPL INFRA: CRISIL Withdraws D Rating on INR1884.09cr Loan ----------------------------------------------------------- CRISIL has withdrawn its ratings on the bank facilities of BSCPL Infrastructure Limited (BSCPL) on the request of the company and receipt of a no objection certificate from State Bank of India (lead banker) and NDC from Yes Bank and Indian Overseas bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1,884.09 CRISIL D (ISSUER NOT COOPERATING; Rating Withdrawn) Cash Credit 600 CRISIL D (ISSUER NOT COOPERATING; Rating Withdrawn) Proposed Long Term 545.91 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Rating Withdrawn) Term Loan 470 CRISIL D (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with BSCPL for obtaining information through letters and emails dated September 30, 2019 and March 9, 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 BSCPL. This restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on BSCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of BSCPL continues to be 'CRISIL D Issuer Not Cooperating'. CRISIL has withdrawn its ratings on the bank facilities of BSCPL on the request of the company and receipt of a no objection certificate from State Bank of India (lead banker) and NDC from Yes Bank and Indian Overseas bank. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Set up in 1981, BSCPL primarily constructs roads and buildings. It also develops, operates, and maintains national and state highways. CAPTAB BIOTEC: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Captab Biotec Unit - II (CBU) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 3.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Cash 1.37 CRISIL D (ISSUER NOT Credit Limit COOPERATING) Term Loan 2.25 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CBU for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 CBU, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on CBU is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CBU continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. CBU was incorporated as partnership firm in 2014 by Mr. Shubham Goel and his brother, Mr. Kapish Goel. The firm executes contract manufacturing as well as its own manufacturing and marketing of pharmaceuticals such as tablets, injections, capsules and syrups under its own brand. The manufacturing unit is at Baddi, Himachal Pradesh. CARE-K: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------ CRISIL said the ratings on bank facilities of Confederation For Ayurvedic Renaissance-Keralam Limited (CARe-K) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Term Loan 7.14 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CARe-K for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 CARe-K, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on CARe-K is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CARe-K continues to be 'CRISIL D Issuer Not Cooperating'. Set up as a private limited company in 2004 and reconstituted as a public limited company in 2008, CARe-K is a joint venture between various ayurvedic enterprises and the Kerala Industrial Infrastructure Development Corporation (KINFRA) of the Government of Kerala. The company was formed to create infrastructure facilities for the standardisation of ayurvedic medicines and services, and is also supported by the AYUSH Department of Government of India. CHANDI MATA: CRISIL Hikes Rating on INR4.85cr Loan from D --------------------------------------------------------- CRISIL has revised its rating on the bank facilities of Chandi Mata Cold Storage Private Limited (CMCSPL) to 'CRISIL D/CRISIL D' from 'CRISIL B-/Stable/CRISIL A4' and simultaneously upgraded it to 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .12 CRISIL A4 (Revised from 'CRISIL A4' to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL A4') Cash Credit 4.85 CRISIL B-/Stable (Revised from 'CRISIL B-/Stable' to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Funded Interest .24 CRISIL B-/Stable (Revised Term Loan from 'CRISIL B-/Stable' to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Proposed Working .39 CRISIL B-/Stable (Revised Capital Facility from 'CRISIL B-/Stable' to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Term Loan .70 CRISIL B-/Stable (Revised from 'CRISIL B-/Stable' to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') The rating revision factors in the delay of more than 30 days in regularizing the cash credit account between January - June 2020. The delay was triggered due to poor liquidity and short term liquidity mismatch. The simultaneous upgrade reflects timely servicing of debt obligations for more than 90 days. The ratings continue to reflect a weak financial risk profile, vulnerability to delays in payments by farmers and exposure to risks relating to the highly regulated and competitive nature of the cold storage industry in West Bengal (WB). These weaknesses are partially offset by the extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses: * Vulnerability to delay in payments by the farmers because of adverse market conditions: Under the Government of West Bengal's initiative to support agriculture, banks extend financial assistance to farmers for storing their produce in private cold storages, against pledge of receipts. Cold storages obtain loans from banks on behalf of farmers and traders. However, the primary responsibility to repay these loans lies with cold storages. In case of adverse market trends and decline in potato prices, the farmers do not lift their stock, to save on rental charges. They tend to default on the loans, thereby constraining the operating margin of cold storage units. * Highly regulated and fragmented nature of industry: The potato cold storage industry is regulated by the West Bengal Cold Storage Association, with rental rates fixed by the Department of Agricultural Marketing. Fixed rental limits players' ability to earn profit, based on their respective strengths and geographic advantages. Furthermore, intense competition continues to constrain business risk profile. * Weak financial risk profile: Financial risk profile is marked by a small networth and high gearing, estimated at INR0.67 crore and 8.97 time, respectively, estimated as on March 31, 2020, as against 0.64 crore and 9.93 times, respectively, a year before. Gearing remained high during the past three fiscals, due to dependence on cash credit at the start of the potato season. Debt protection metrics were moderate, with interest coverage ratio, at 2.14 times in fiscal 2019 (estimated at around 2.17 times in fiscal 2020). Limited accretion to reserve may keep the financial profile weak over the medium term. Strengths: * Extensive industry experience of the promoters: The promoters' experience of over two decades and a strong relationship with potato farmers should continue to support the business risk profile. This has helped maintain healthy utilisation of the storage capacity (average of 90% in fiscal 2020). Liquidity Poor Liquidity profile of the company is poor as indicated by delay in regularising of cash credit limit. In fiscal 2019 the company generated accruals of INR21 lakh and is estimated to have generated around INR20-22 lakh in fiscal 2020 against tightly matched repayment of INR20 lakh annually.. Going forward accruals of around INR25-30 lakh would be generated against maturing debt of INR20-30 lakh per annum. Bank limits were almost fully used in last 12 months through Sep 2020. Current ratio was weak at below 1 times in at least last three years through fiscal 2020. Outlook: Stable CRISIL believes CMCSPL will continue to benefit from the extensive experience of its promoters. Rating Sensitivity factors Upward factors * Upward revision of rental rates with optimum capacity utilisation, thereby increasing the scale of operation, along with sustenance of the operating margin at more than 20% * Improvement in liquidity, supported by an increase in cash accrual to more than INR40 lakh per fiscal against nil repayment obligation Downward factors * Downward revision of rental rates along with lowering of capacity utilisation, leading to deterioration in the business risk profile * Delays in payment by farmers * Deterioration in interest coverage ratio to less than 1 time CMCSPL, incorporated in 1980, operates a cold storage unit for potatoes, with capacity of 1,19,791 quintal, in Pashchim Medinipur, WB. The company occasionally trades in potatoes to ensure optimum capacity utilisation of the cold storage unit. It also finances farmers' potato storage, which is refinanced by banks. DANDAPAT COLD: CRISIL Hikes Rating on INR15cr Loans from D ---------------------------------------------------------- CRISIL has revised its ratings on the bank facilities of Dandapat Cold Storage Private Limited (DCSPL) to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4' and simultaneously upgraded it to 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .3 CRISIL A4 (Revised from 'CRISIL A4 to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL A4') Cash Credit 14.7 CRISIL B-/Stable (Revised from 'CRISIL B/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') The rating revision factors in the delay of more than 30 days in regularizing the cash credit account between January-June 2020. The delay was triggered due to poor liquidity and short term liquidity mismatch. The simultaneous upgrade reflects timely servicing of debt obligations for more than 90 days. The ratings reflect DCSPL's vulnerability to delay in payments from farmers, and its weak financial risk profile. The ratings also factor in susceptibility to regulatory changes and intense competition in the cold storage industry in West Bengal. These weaknesses are partially offset by the extensive experience of the promoter in the cold storage business. Key Rating Drivers & Detailed Description Weaknesses: * Vulnerability to delay in payments by the farmers because of adverse market conditions: Under the Government of West Bengal's initiative to support agriculture, banks extend financial assistance to farmers for storing their produce in private cold storages, against pledge of receipts. Cold storages obtain loans from banks on behalf of farmers and traders. However, the primary responsibility to repay these loans lies with cold storages. In case of adverse market trends and decline in potato prices, the farmers do not lift their stock, to save on rental charges. They tend to default on the loans, thereby constraining the operating margin of cold storage units. * Highly regulated and fragmented nature of industry: The potato cold storage industry is regulated by the West Bengal Cold Storage Association, with rental rates fixed by the Department of Agricultural Marketing. Fixed rental limits players' ability to earn profit, based on their respective strengths and geographic advantages. Furthermore, intense competition continues to constrain business risk profile. * Weak financial risk profile: Financial risk profile is marked by a small networth and high gearing, estimated at INR3.41 crore and 4.55 time, respectively, as on March 31, 2020, as against 3.27 crore and 4.86 times, respectively, a year before. Gearing remained high during the past three fiscals, due to dependence on cash credit at the start of the potato season. Debt protection metrics were weak, with interest coverage ratio, at 1.15 times in fiscal 2019 (estimated at around 1.19 times in fiscal 2020). Limited accretion to reserve may keep the financial profile weak over the medium term. Strength: * Extensive experience of the promoters: The decade-long association of the promoter, with traders and farmers, ensures healthy utilisation of storage capacity. The company provides storage facilities to nearly 100 farmers and 30-40 traders. Liquidity Poor Liquidity profile of the company is poor as indicated by delay in regularising of cash credit limit. In fiscal 2019 the company generated accruals of INR24 lakh and is estimated to have generated around INR30 lakh in fiscal 2020 against nil maturing debts. Going forward accruals of around INR30 lakh would be generated against maturing debt of INR27-28 lakh per annum. Bank limits were almost fully used in last 12 months through Sep 2020. Current ratio was weak at 1.08 time as on March 31, 2019 and estimated at similar level as on March 31, 2020. Outlook: Stable CRISIL believes DCSPL will continue to benefit from the extensive experience of its promoters. Rating Sensitivity factors Upward factor * Upward revision of rental rates with optimum capacity utilisation, leading to increase in revenue, and sustained operating margin at over 20% * Improvement in liquidity, supported by increase in cash accrual to over INR40 lakh Downward factor * Downward revision of rental rates, and drop in capacity utilisation * Weakening of interest coverage ratio to less than 1.50 time * Delays in payments from farmers Incorporated in 1997, DCSPL provides cold storage facilities to potato farmers and traders. It has two units, one each in Dandapat (Paschim Mednipur) and Rupasi Bangla (Hooghly). Daily operations are managed by Mr. Ranjit Dandapat. DANDAPAT HEEMGHAR: CRISIL Hikes Rating on INR5cr Loan to B- ----------------------------------------------------------- CRISIL has revised its rating on the bank facilities of Dandapat Heemghar (A Unit of Dandapat Rice Mills Private Limited) (DH) to 'CRISIL D/CRISIL D' from 'CRISIL B-/Stable/CRISIL A4' and simultaneously upgraded it to 'CRISIL B-/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .12 CRISIL A4 (Revised from 'CRISIL A4 to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL A4') Cash Credit 5.00 CRISIL B-/Stable (Revised from 'CRISIL B-/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Funded Interest .35 CRISIL B-/Stable (Revised Term Loan from 'CRISIL B-/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Proposed Working 1.04 CRISIL B-/Stable (Revised Capital Facility from 'CRISIL B-/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Term Loan 3.30 CRISIL B-/Stable (Revised from 'CRISIL B-/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') Working Capital 0.70 CRISIL B-/Stable (Revised Facility from 'CRISIL B-/Stable to 'CRISIL D' and Simultaneously Upgraded to 'CRISIL B- /Stable') The rating revision factors in the delay of more than 30 days in regularizing the cash credit account between January-June 2020. The delay was triggered due to poor liquidity and short term liquidity mismatch. The simultaneous upgrade reflects timely servicing of debt obligations for more than 90 days. The ratings continue to reflect a weak financial risk profile, vulnerability to delays in payments by farmers and exposure to risks relating to the highly regulated and competitive nature of the cold storage industry in West Bengal (WB). These weaknesses are partially offset by the extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Vulnerability to delay in payments by the farmers because of adverse market conditions: Under the Government of West Bengal's initiative to support agriculture, banks extend financial assistance to farmers for storing their produce in private cold storages, against pledge of receipts. Cold storages obtain loans from banks on behalf of farmers and traders. However, the primary responsibility to repay these loans lies with cold storages. In case of adverse market trends and decline in potato prices, the farmers do not lift their stock, to save on rental charges. They tend to default on the loans, thereby constraining the operating margin of cold storage units. * Highly regulated and fragmented nature of industry: The potato cold storage industry is regulated by the West Bengal Cold Storage Association, with rental rates fixed by the Department of Agricultural Marketing. Fixed rental limits players' ability to earn profit, based on their respective strengths and geographic advantages. Furthermore, intense competition continues to constrain business risk profile. * Weak financial risk profile: Financial risk profile is marked by a small networth and high gearing, estimated at INR1.25 crore and 3.05 time, respectively, estimated as on March 31, 2020, as against 1.18 crore and 3.52 times, respectively, a year before. Gearing remained high during the past three fiscals, due to dependence on cash credit at the start of the potato season. Debt protection metrics were weak, with interest coverage ratio, at 1.8 times in fiscal 2019 (estimated at around 1.9 times in fiscal 2020). Limited accretion to reserve may keep the financial profile weak over the medium term. Strength * Extensive industry experience of the promoters: The promoters' experience of over two decades and a strong relationship with potato farmers should continue to support the business risk profile. This has helped maintain healthy utilisation of the storage capacity (average of 90% in fiscal 2020). Liquidity Poor Liquidity profile of the company is poor as indicated by delay in regularising of cash credit limit. In fiscal 2019 the company generated accruals of INR54 lakh and is estimated to have generated around INR55-60 lakh in fiscal 2020 against repayment of INR71 lakh annually. The short fall in accruals were met through working capital facility and accumulated liquid funds from previous years. Going forwards cash generation could be around 55-70 lakh against repayment of INR45-85 lakh. Short fall in the accruals would be made good by gap in bank lines along with cash and bank balance. Bank limits were almost fully used in last 12 months through Sep 2020. Current ratio was weak at below 1 times in at least last three years through fiscal 2020. Outlook: Stable CRISIL believes DH will continue to benefit from the extensive experience of its promoters in the cold storage business. Rating Sensitivity factors Upward factors * Upward revision in rental rates and optimum capacity utilisation, resulting in ramp-up in revenue, while operating margin exceeds 20% * Improvement in liquidity, with cash accrual comfortably exceeding the maturing debt Downward factors * Downward revision in rental rates and dip in capacity utilisation, weakening the business risk profile * Deterioration in the interest coverage ratio to less than 1 time * Delay in payments by the farmers Set up in 2010, DH provides cold storage facility to potato farmers and traders in Pashchim Medinipur (West Bengal). Mr. Ranjit Kumar Dandapat, Mr. Sukamal Dandapat and Ms Moutusi Dandapat are the promoters. The firm has an installed capacity of 132,500 quintals per annum. ERODE CRITICAL: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Erode Critical And Emergency Care Centre Private Limited (ECCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 14 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 1 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with ECCPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 ECCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on ECCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ECCPL continues to be 'CRISIL D Issuer Not Cooperating'. ECCPL, incorporated in 2013, runs a multispecialty hospital in Erode, Tamil Nadu. Dr Mutukrishnan, manages the day to day operations of the company. EVEREST KANTO: CRISIL Withdraws C Rating on INR368.2cr Loan ----------------------------------------------------------- CRISIL has withdrawn its rating on the long-term bank facilities of Everest Kanto Cylinder Ltd (EKC) on the request of the entity, receipt of a no objection certificate from Yes Bank and a no dues certificate from Export Import Bank of India. The rating action is in line with CRISIL's policy on withdrawal of its rating on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 368.2 CRISIL C (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with EKC for obtaining information through letters and emails dated November 29, 2019 and September 30, 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 EKC. This restricts CRISIL's ability to take a forward-looking view on the entity's credit quality. CRISIL believes that rating action on EKC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on the long-term bank facilities of EKC continues to be 'CRISIL C Issuer Not Cooperating'. CRISIL has withdrawn its rating on the long-term bank facilities of EKC on the request of the entity, receipt of a no objection certificate from Yes Bank and a no dues certificate from Export Import Bank of India. The rating action is in line with CRISIL's policy on withdrawal of its rating on bank loans. Analytical Approach For arriving at its rating, CRISIL has combined the business and financial risk profiles of EKC and its wholly owned subsidiaries, including step-down entities, EKC International FZE, Dubai; EKC Industries (Tianjin) Co Ltd, China; EKC Industries (Thailand) Co Ltd, Thailand; EKC Hungary Kft, Hungary; Calcutta Compressions & Liquefaction Engineering Ltd, India; EKC-Europe GmbH; CP Industries Holdings Inc, USA; EKC Positron Gas Limited, India and Next Gen Cylinder Private Limited, India. This is because all these entities, collectively referred as the Everest Kanto group, have common promoters, are in the same line of business, and have intra-group operational synergies, including fungible cash flow. About the Everest Kanto group Promoted by Mr. P K Khurana in 1978, the group manufactures high-pressure seamless compressed natural gas and industrial cylinders. The gas cylinders are used by automobile original equipment manufacturers, retrofitters, and gas distribution companies; the industrial cylinders are used in the healthcare, fire-fighting, and food and beverages segments. The group has manufacturing units in India, Dubai, the US, and China, with total capacity of around 1 million cylinders per annum, and marketing offices in Thailand and Germany. FIREFLY BATTERIES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Firefly Batteries Private Limited (FBPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 7.7 CRISIL D (ISSUER NOT COOPERATING) Term Loan 12.3 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with FBPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 FBPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on FBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of FBPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. FBPL (formerly, Epsilon Batteries Private Limited) was incorporated in 2011, and is managed by Mr. Jinal Shah, Mr. Satish Mehta, and Mr. Anand Pandya. The company manufactures uninterruptible power supply (UPS) systems, inverters, advanced lead-acid batteries, and carbon foam batteries providing renewable energy storage solutions and load-shift applications. It commenced commercial operations from December 2014; its manufacturing facility in Bavla, Gujarat has an installed capacity of 0.3 million batteries per annum. It has a technical collaboration with Firefly International Energy ' USA. GANESHA MOTORS: CRISIL Keeps C Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ganesha Motors Private Limited (GMPL) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.13 CRISIL C (ISSUER NOT COOPERATING) Proposed Fund- 2.77 CRISIL C (ISSUER NOT Based Bank Limits COOPERATING) Term Loan .60 CRISIL C (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GMPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 GMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on GMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GMPL continues to be 'CRISIL C Issuer Not Cooperating'. Incorporated in June 2013, GMPL is an authorised dealer of passenger vehicles and spare parts of FCA India Automobiles Pvt Ltd (Fiat India). GMPL is promoted by Mr. Mohan Singh Guleria and managed by Mr. Guleria and his wife, Mrs Rita Guleria.The company currently operates two showrooms'one in Mandi and the other in Hamirpur (both in Himachal Pradesh), equipped with sales, service and spares (3S) facilities. GENGA MILLS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Sree Genga Mills Private Limited (SGMPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .2 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Term Loan 3.3 CRISIL D (ISSUER NOT COOPERATING) Working Capital 1.5 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with SGMPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SGMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SGMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SGMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 1999 and promoted by Mr.E Ramaswamy, SGMPL manufactures cotton yarn. Operations are managed by Mr. R Srinivasan. H.S. RAMESH: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of H.S. Ramesh (HSR) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 4 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 1 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with HSR for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 HSR, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on HSR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HSR continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. HSR, set up as a proprietorship firm in 2010 by Mr. H S Ramesh. Is engaged in construction and maintenance of roads. The firm is based in Mysuru, Karnataka, and execute orders in the state, where it is registered as a first class contractor. IL&FS LTD: SEBI Drops Case vs. Unit Over Underwriter Norms Breach ----------------------------------------------------------------- Moneycontrol.com reports that markets regulator SEBI on Oct. 23 disposed of proceedings against IL&FS Financial Services Ltd without issuing any direction against it in a matter pertaining to alleged violation of underwriter norms. The firm is a SEBI registered underwriter, the report says. The order came after Ministry of Corporate Affairs (MCA) forwarded a report to SEBI to ascertain if the underwriter, which is a 100 percent subsidiary of Infrastructure Leasing & Financial Services Ltd (IL&FS), was qualified to be a "fit and proper person" to continue as a SEBI registered intermediary, Moneycontrol.com relates. Moneycontrol.com says Serious Fraud Investigation Office (SFIO) had conducted an investigation into the affairs of Infrastructure Leasing & Financial Services Ltd (IL&FS) and its subsidiary companies responsible for the credit crisis. It had submitted its report to the MCA which was subsequently forwarded to SEBI. According to Moneycontrol.com, the report has pointed out various irregularities, showing apparent violation of various provisions of the Indian Penal Code, Companies Act, 1956, the Companies Act, 2013 and the RBI Act, 1934, leading to raising of integrity issues in respect of IL&FS Financial Services. SEBI initiated proceedings under Intermediaries norms and appointed a designated authority (DA) to look into the matter. The DA submitted report in May 2020 and concluded that IL&FS Financial Services was no longer a fit and proper person as required under market norms, Moneycontrol.com recalls. Further, the DA in his report recommended that the certificate of registration of the firm be cancelled. The fit and proper person requirements have to be met on a continuous basis, since compliance with the same is mentioned as one of the conditions for grant of registration under Underwriters Regulations, SEBI noted, according to Moneycontrol.com. However, after taking into consideration the submissions of IL&FS Financial Services, SEBI concluded that it has never undertaken activities as an underwriter from the date of grant of certificate of registration since January 2009 and had submitted a request to SEBI for surrender of certificate of registration prior to initiation of the proceedings. "No meaningful purpose would be served by continuing with the instant proceedings against the Noticee," SEBI, as cited by Moneycontrol.com, said. Noticee refers to IL&FS Financial Services Ltd. Hence, without going into the merit of the issue at hand, SEBI has dispose of the proceedings without issuing any direction against, Moneycontrol.com notes. About IL&FS Infrastructure Leasing & Financial Services Limited (IL&FS) -- https://www.ilfsindia.com/ -- is an infrastructure development and finance company based in India. It focuses on the development and commercialization of infrastructure projects, and creation of value added financial services. The company operates in Financial Services, Infrastructure Services, and Others segments. The Indian government, in October 2018, stepped in to take control of crisis-ridden IL&FS by moving the National Company Law Tribunal (NCLT) to supersede and reconstitute the board of the firm which has defaulted on a series of its debt payments, according to Indian Express. This was said to be an attempt to restore the confidence of financial markets in the credibility and solvency of the infrastructure financing and development group. KARTHIKAI TEXTILE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Karthikai Textile Mills (KTM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Foreign Bill 4.5 CRISIL D (ISSUER NOT Discounting COOPERATING) Term Loan 13.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KTM for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 KTM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KTM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KTM continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1979 as a proprietorship concern of Mr. P Eswara Moorthy in Tirupur, Tamil Nadu, KTM manufactures and exports hosiery garments for men, women, and children. It exports to Dubai and Poland. The production capacity at its unit is 150,000 pieces per month and processing capacity is 8000 kilograms of fabric per day. The firm also owns a windmill with 600 kilovolt ampere capacity in Udamalpet, Tamil Nadu, which meets around 70% of its power requirements. KAVERI INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Kaveri Industries Private Limited (KIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 2.5 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 4.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KIPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 KIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KIPL continues to be 'CRISIL D Issuer Not Cooperating'. KIPL is setting-up PVC pipes & fitting manufacturing unit at Guntur (Andhra Pradesh). The company is promoted by Guntur based Reddy family, Mr. Srinivas Reddy has over 10 years of experience in the pipe & allied manufacturing business. KEYA BUILDTECH: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the rating on bank facilities of Keya Buildtech LLP (KB) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 25 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KB for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 KB, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KB is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KB continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2017, KB is a partnership firm engaged in the development of residential real estate. The firm is mainly present in Vadodara, Gujarat. KB is promoted and is currently being run by Mahesh Patel. KHUSHI EXIM: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Khushi Exim Private Limited (KEPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KEPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 KEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KEPL continues to be 'CRISIL D Issuer Not Cooperating'. KEPL was established in 2003 by Mr. Hiralal Jalan and his son, Mr. Vikash Jalan, in Kolkata. The company is in wholesaling and retailing of gold jewellery, silver articles, and diamond- and kundan-studded jewellery. It sells to retail showrooms in Raipur (Chhattisgarh), Nagpur (Maharashtra), Indore (Madhya Pradesh), Jamshedpur (Jharkhand), Ranchi (Jharkhand), and a few other locations. KUTTANAD RUBBER: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Kuttanad Rubber Co Limited (KRCL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 2 CRISIL D (ISSUER NOT Overdraft facility COOPERATING) Long Term Loan 5.4 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with KRCL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 KRCL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KRCL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KRCL continues to be 'CRISIL D Issuer Not Cooperating'. KRCL is a closely held public limited company and operates a rubber plantation of around 440 acres in Kanjirapally (Kerala). The company extracts raw rubber latex from its plantation and sells it to local centrifuged latex (cenex; used in making medical and surgical items) manufactures. The daily operations of the company are managed by the executive director, Mr. Joseph Thomas. LOTUS PROJECTS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Lotus Projects Private Limited (LPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 1.05 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 11.45 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with LPPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 LPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on LPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of LPPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 1994, LPPL is engaged in plantation and processing of tea. On August 10, 2015, the company took over the operations of a tea estate of New Chumta Tea Co Ltd, at a purchase consideration of INR13.5 crores. LPPL has an annual tea production capacity of 40 lakh kg. PANCHAM JEWELLERS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Pancham Jewellers Private Limited (PJPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 24 CRISIL D (ISSUER NOT COOPERATING) Standby Line 1 CRISIL D (ISSUER NOT of Credit COOPERATING) CRISIL has been consistently following up with PJPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 PJPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on PJPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PJPL continues to be 'CRISIL D Issuer Not Cooperating'. PJPL is a manufacturer and wholesale dealer of gold-, precious-stone- and diamond-studded jewellery. The company was established in 2005 and is promoted by Mr. RK Aggarwal and his family. PJPL has its showroom in Rajpura (Punjab). The wholesale business contributes to around 95 per cent of its revenue. PARAMESHWARI PROJECTS: CRISIL Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Sri Parameshwari Projects Private Limited (SPPPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan .8 CRISIL D (ISSUER NOT COOPERATING) Overdraft .4 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 4.3 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with SPPPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SPPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SPPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPPPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in the Year 2003 Sri Parameswari Projects Private Limited(SPPPL) is involved in multiple business lines that include running a petroleum bunk, movie theatre, automobile showroom and function hall. The Company is promoted by Mr. K.Surapu Naidu. PATDIAM JEWELLERY: Ind-Ra Affirms BB- Long Term Issuer Rating ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Patdiam Jewellery Limited's (PJL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is: -- INR210 mil. Fund-based facilities affirmed with IND BB-/ Stable/IND A4+ rating. KEY RATING DRIVERS The affirmation reflects PJL's continued small scale of operations, as indicated by revenue of INR626 million in FY20 (FY19: INR687 million).The revenue declined in FY20 as sales fell during 4QFY20 due to the impact of the COVID-19-led lockdown. The company's operations had come to a halt during mid-March 2020 to end-May 2020 and subsequently resumed in June 2020. PJL recorded revenue of INR160 million in 1HFY21. As of September 2020, PJL's order book amounted to INR290 million, which is scheduled to be executed before December 2021. Ind-Ra expects the revenue to fall further on yoy basis in FY21 due to the impact of the pandemic-led disruptions in 1HFY21. The demand is likely to return to the normal levels from FY22, causing the revenue to recover to FY20 levels during the year and improve gradually thereafter. The ratings reflect the company's modest EBITDA margins due to the intense competition in the industry. Despite an increase in variable costs, the margin was almost stable at 4.96% in FY20 (FY19:4.9%) on the back of forex gains of INR19.25 million (INR3.7 million). The return on capital employed stood at 6.3% in FY20 (FY19: 6.5%) The company is susceptible to the volatility in diamond prices. The ratings factor in PJL's weak credit metrics due to the modest EBITDA margins. The net financial leverage (adjusted net debt/operating EBITDA) deteriorated to 6.8x in FY20 (FY19: 5.7x) due to a decline in the operating EBITDA to INR31 million (INR34 million). The gross interest coverage (operating EBITDA/gross interest expense) improved to 4.4x in FY20 (FY19:2.3x) due to a decline in interest costs, resulting from lower utilization of the working capital facility during January-March 2020. PJL has extended corporate guarantee of INR120 million to a group company, M/s Patdiam Jewels. Ind-Ra believes the company's ability to prevent further deterioration in the credit metrics would depend on the maintaining of stable EBITDA margins, backed by stable raw material prices, no adverse fluctuations in foreign currency, and the absence of any outstanding term debt obligations as well as major capex plans for the medium term. Liquidity Indicator - Stretched: The average utilization of the fund-based limits was 65% over the 12 months ended September 2020. PJL's operations are working capital-intensive in nature. The cash flow from operations turned negative at INR15 million in FY20 (FY19: INR59 million) on account of an increase in the working capital requirements .The net cash conversion cycle elongated to 280 days in FY20 (FY19: 229 days) due to an increase in inventory days to 165 days (119 days), as exports had come to a halt towards the end of the year in the wake of the COVID-19 outbreak. The company had a cash balance of INR5 million in FY20 (FY19: INR40 million). PJL had availed the Reserve Bank of India-prescribed debt moratorium for March-August 2020. The ratings continue to be supported by the founders' experience of over 30 years of experience in jewellery manufacturing and the steady supply of raw materials, i.e. polished diamonds, from M/s Patdiam. RATING SENSITIVITIES Negative: Any decline in the top-line and EBITDA margins, leading to deterioration in the credit metrics, with the interest coverage falling below 1.7x, could be negative for the ratings. Positive: A sustained growth in the top-line and EBITDA margins, leading to an improvement in the credit metrics, on a sustained basis, could be positive for the ratings. COMPANY PROFILE Incorporated in 2004, PJL is a part of the Patdiam Group. PJL manufactures and exports high-end specialty diamond-studded jewellery, mainly to European countries PAWAR PATKAR: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Pawar Patkar and D. S. Contractors Associates Private Limited (Pawar) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 3 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with Pawar for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 Pawar, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on Pawar is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Pawar continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Established in 2010 by Mr. R D Pawar, Pawar undertakes government-funded civil construction projects in Nashik, Maharashtra. PRASANNA EDUCATION: CRISIL Withdraws D Rating on INR10cr LT Loan ---------------------------------------------------------------- CRISIL has withdrawn its rating on the long term bank facilities of Prasanna Education Trust (PET) on the request of the company and receipt of a no objection certificate from its banks. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 10 CRISIL D (ISSUER NOT COOPERATING; Rating Withdrawn) CRISIL has been consistently following up with PET for obtaining information through letters and emails dated July 29, 2019 and January 10, 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 PET. This restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PET is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of PET continues to be 'CRISIL D Issuer Not Cooperating'. CRISIL has withdrawn its rating on the long term bank facilities of PET on the request of the company and receipt of a no objection certificate from its banks. The rating action is in line with CRISIL's policy on withdrawal of its ratings on bank loans. Set up in 2003, the PET has been running 10 institutions that imparts education from primary to higher standards. The trust is managed by Mr. K. Gangadhara Gowda, former Minister, Government of Karnataka and his family. The trust also runs the Prasanna Ayurvedic College and Hospital. PRITHVI FERRO: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Prithvi Ferro Alloys Private Limited (PFAPL) continue to be 'CRISIL D Issuer Not Cooperating' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30.43 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 15.42 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 84.30 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PFAPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 PFAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on PFAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PFAPL continues to be 'CRISIL D Issuer Not Cooperating'. PFAPL was formed for setting up a greenfield integrated steel complex comprising a ferroalloys manufacturing facility (capacity of 13,200 tonne per annum of silica-manganese alloy) and an 18-megawatt (MW) captive power plant. The Prithvi group was started by Mr. Bijay Kumar Garodia, Mr. Ramesh Kumar Sarawagi, and Mr. Shankar Lall Ajitsaria in the 1990s. The group has presence in several industries, including cement, tea, power, real estate, steel, and mining. RAIHAN HEALTHCARE: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the rating on bank facilities of Raihan Healthcare Private Limited (RHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 32 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RHPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 RHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on RHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RHPL continues to be 'CRISIL D Issuer Not Cooperating'. RHPL, incorporated in 2014, is operating a super-specialty hospital in Erattupetta (Kerala). Operations are managed by Dr Mohammed Ismail and Dr Satheesh. RAVINA HEALTH: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the rating on bank facilities of Ravina Health Care Private Limited (RHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 16 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RHPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 RHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on RHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RHPL continues to be 'CRISIL D Issuer Not Cooperating'. RHPL, incorporated in 2011, is constructing a multi-speciality hospital in Chennai, and is likely to commence commercial operations by May 2018. RCI INDUSTRIES: Ind-Ra Affirms D Rating, Moves to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed RCI Industries & Technologies Limited's (RCI) Long-Term Issuer Rating at 'IND D' while migrating the rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow ups by the agency. Thus, the rating is based on the best available information. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR500 mil. Proposed long-term loan * assigned and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR1.010 bil. Fund-based limits (long-term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR250 mil. Proposed fund-based limits *(long-term) assigned and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR1.09 bil. Non-fund-based limits (short-term) Affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. * The provisional ratings of the proposed bank facilities have been converted to final ratings as per Ind-Ra's updated policy. This is because the agency notes that debt seniority and general terms and conditions of working capital facilities tend to be uniform across banks, and are not a rating driver. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The affirmation reflects RCI's classification as a non-performing asset by the lenders due to the non-payment of interest and borrowed amounts on the due dates, as per the 1QFY21 results shared by the company with the Bombay Stock Exchange on September 15, 2020. COMPANY PROFILE Incorporated in 1992, RCI is listed on the Bombay Stock Exchange. RCI manufactures copper wires (24,000 million ton (mt) capacity), copper/brass strips (15,000mt capacity) and TIN solder strips/bars (1,200mt capacity). Its items include annealed copper wire, bunched copper wires ropes, and copper ingots. RIDDHI SIDDHI: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Riddhi Siddhi Cotspin Private Limited (RSCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 17.75 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term .40 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 2.15 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RSCPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 RSCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on RSCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RSCPL continues to be 'CRISIL D Issuer Not Cooperating'. RSCPL was incorporated in April 2013, by promoters, Mr. Ankit Lotiya, Mr. Sureshkumar Lotia, and Mr. Kanu Vekariya. The company has a cotton-ginning unit in Rajkot (Gujarat) and commenced operations in March 2014. It sells cotton bales and cotton seeds. SAISREE ENGINEERS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Saisree Engineers Private Limited (SSEPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SSEPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SSEPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SSEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSEPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2010, Hyderabad-based SSEPL undertakes coal mining works (digging and dumping) and civil construction works. The company is promoted by Mr. Suryanarayana Raju and his family. SHATABDI SHIKSHA: CRISIL Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the rating on bank facilities of Shatabdi Shiksha Prasar Sabha (SSPS) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SSPS for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SSPS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SSPS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSPS continues to be 'CRISIL D Issuer Not Cooperating'. SSPS was established in 1992 by Late Dr. Rampal Singh Nehra to set up educational institutes in Meerut, Uttar Pradesh. The society runs seven colleges and one school in Mohinidinpur, Meerut. The school is affiliated to the CBSE while the colleges are affiliated to Chaudhary Charan Singh University, Meerut. Presently, Mr. Amit Nehra is managing the affairs of the society. SHIV SHAKTI: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Shiv Shakti Rice Mills(Partnership) (SSRM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 32.75 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term .75 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Working Capital 20 CRISIL D (ISSUER NOT Demand Loan COOPERATING) CRISIL has been consistently following up with SSRM for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SSRM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SSRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSRM continues to be 'CRISIL D Issuer Not Cooperating'. SSRM was set up as a sole proprietorship firm by Mr. Ashwani Kumar in 1999. In 2009, with Mr. Hari Ram Bansal and Mr. Sweety Singla also joining in, this firm was reconstituted as a partnership concern. The firm processes basmati and non-basmati rice, and its by-products. It is based in Lehragaga, Punjab. SKYHIGH HOSPITALITY: CRISIL Keeps D Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the rating on bank facilities of Skyhigh Hospitality Private Limited (SHPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SHPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SHPL continues to be 'CRISIL D Issuer Not Cooperating'. SHPL was set up in 2008 by Gurugram-based Mr. Ramesh Khurana and Mr. S N Virmani. The company runs a boutique hotel, Treehouse Queens Pearl, in Gurugram. SUGANYA CONSTRUCTIONS: Ind-Ra Moves BB Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Suganya Constructions' 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 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 facilities migrated to non-cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR80 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 13, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2010, Tamil Nadu-based Suganya Constructions is a partnership firm engaged into civil construction work including roads, bridges, among others. SUPRIYA COTEX: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Supriya Cotex Private Limited (SCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 0.25 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 1.75 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SCPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SCPL continues to be 'CRISIL D Issuer Not Cooperating'. SCPL, set up in 2011, processes cotton bales, and has capacity of 500 bales per day at its unit in Jalna, Maharashtra. Operations are managed by Mr. Satish Patil Nagare. TRIMURTI FOODTECH: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Trimurti Foodtech Private Limited (TFPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING) Funded Interest 0.86 CRISIL D (ISSUER NOT Term Loan COOPERATING) Proposed Long Term 2.54 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 2.33 CRISIL D (ISSUER NOT COOPERATING) Working Capital 6.11 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with TFPL for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 TFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on TFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TFPL continues to be 'CRISIL D Issuer Not Cooperating'. TFPL, incorporated in 2007 at Aurangabad, manufactures frozen food, including jellies, fruit pulp, and snacks. Mr. Atul Banginwar, the promoter, also owns the Pet Pooja chain of restaurants, which it lets out on franchise basis for selling snacks. The products are sold both in the domestic and global markets. U.S. SRIVASTAVA: Ind-Ra Keeps BB Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained U. S. Srivastava Memorial Educational Society's bank loan ratings in 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 continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR42.9 mil. Term loan maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR30.0 mil. Bank overdraft facility maintained in non- cooperating category with IND BB (ISSUER NOT COOPERATING0 rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 8, 2015. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the ratings. COMPANY PROFILE The society offers various undergraduate and postgraduate programmes in engineering, information technology, management and pharmacy. It also has a school - Sherwood Academy - affiliated to the Indian Certificate of Secondary Education. UNITED EXPORTS: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of United Exports continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Purchase- 15 CRISIL D (ISSUER NOT Discounting COOPERATING) Facility Cash Credit 35 CRISIL D (ISSUER NOT COOPERATING) Packing Credit 35 CRISIL D (ISSUER NOT COOPERATING) Term Loan 17 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with United Exports for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 United Exports, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on United Exports is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of United Exports continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. United Exports was set up as a partnership firm in 1983. Its current partners are Mr. Harish Narang and Mr. Sudhanshu Narang. It mills and processes basmati and non-basmati rice for sale in the domestic and international markets. VENTURES NAGPUR: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Shree Ventures - Nagpur (SV) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 1 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with SV for obtaining information through letters and emails dated March 17, 2020 and September 16, 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 SV, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SV is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SV continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2011 in Nagpur as a proprietorship concern by Mr. Ujwal Pagariya, SV is engaged in wholesale trading of agricultural products. ================= I N D O N E S I A ================= ALAM SUTERA: Moody's Confirms CFR at Caa1, Outlook Negative ----------------------------------------------------------- Moody's Investors Service has confirmed the Caa1 corporate family rating (CFR) of Alam Sutera Realty Tbk (P.T.) (Alam Sutera). Moody's has also assigned a Caa1 definitive rating to the 2024 and 2025 senior secured notes to be issued by Alam Sutera. The new notes are guaranteed by most of Alam Sutera subsidiaries and will be secured by a mortgage over the Mall@Alam Sutera land lot and a commercial land lot. At the same time, Moody's has upgraded the backed senior unsecured ratings of the 2021 notes and 2022 notes issued by Alam Synergy Pte. Ltd., a wholly-owned subsidiary of Alam Sutera, to Caa2 from Caa3. The notes are guaranteed by Alam Sutera and most of its subsidiaries. The outlook on all ratings has been changed to negative from ratings under review. The rating actions follow Alam Sutera's announcement on 28 October 2020 of the successful exchange offer for its US dollar bonds, namely its $115 million bonds due April 2021 and $370 million bonds due April 2022. 86.1% of the 2021 bond holders and 87.41% of the 2022 bond holders agreed to exchange their positions for the new 2024 and 2025 US dollar bonds. Once the exchange offer is completed, Alam Sutera's total US dollar bonds will comprise $15.99 million bonds due April 2021, $46.58 million bonds due April 2022, $171.40 million bonds due October 2024 and $251.00 million bonds due April 2025. "The confirmation of Alam Sutera's CFR at Caa1 reflects an improvement in company's debt maturity profile, whereby its refinancing risk has become manageable over the next 12-18 months. However, the reduction in the company's land sales will keep Alam Sutera's credit metrics week in 2020 and 2021," says Jacintha Poh, a Moody's Vice President and Senior Credit Officer. "The outlook is negative because further down the line, the refinancing risk on Alam Sutera's 2022 notes has not been eliminated. Although the amount outstanding is small at around $46.58 million, we expect the company to depend on external funding because it will not generate sufficient operating cash flow to address the risk," adds Poh. The new 2024 and 2025 senior secured bonds are rated in line with Alam Sutera's Caa1 corporate family rating while the existing 2021 and 2022 senior unsecured bonds are rated one notch lower at Caa2 to reflect legal subordination risk. RATINGS RATIONALE Moody's views the exchange offer as a distressed exchange because the transaction allows Alam Sutera to avoid an eventual default on its US dollar bonds since the company does not have sufficient funds to address the maturity in April 2021. The transaction will also result in significant economic loss for investors when compared to the original payment promise for the notes. Moody's expects Alam Sutera will have sufficient cash to repay the remaining $15.99 million bond due April 2021. As of 30 June 2020, the company held cash and cash equivalents of around IDR1,118 billion ($77 million). This cash balance is also sufficient to cover Moody's expectation of approximately IDR250 billion of operating cash outflow and around IDR200 billion in capital spending over the next 18 months. Moody's expects Alam Sutera's financial metrics will weaken in 2020 and stay weak in 2021, driven by a reduction in land sales. Its leverage, as measured by debt/homebuilding EBITDA will be around 15.0x and 10.0x in 2020 and 2021 respectively, while its EBIT interest coverage will be less than 1.5x in 2020-21. For the 12 months ended 30 June 2020, Alam Sutera had leverage of 4.7x and EBIT interest coverage of 1.9x. In terms of environmental, social and governance (ESG) factors, Moody's has considered the governance risk stemming from Alam Sutera's (1) weak financial management, as its debt maturity wall has resulted in significant refinancing risk and the proposed exchange offer; and (2) concentrated ownership by its promoter as well as its five-member board of commissioners, of which only two members are independent. Nonetheless, the company is run by experienced professionals and has a track record of reducing capital spending to preserve liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, a rating upgrade is unlikely over the next 12-18 months. Nevertheless, the outlook could return to stable if Alam Sutera (1) improves its liquidity by addressing the refinancing risk of its 2022 notes; and (2) continues to execute its core marketing sales, such that its adjusted homebuilding EBIT/interest expense stays above 1.0x. Moody's could downgrade the ratings if there is an increasing likelihood that Alam Sutera is unable to redeem its 2022 bonds on maturity. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Established in November 1993 and listed on the Indonesian Stock Exchange in December 2007, Alam Sutera Realty Tbk (P.T.) is an integrated property developer in Indonesia that focuses on the sale of land lots in accordance with township planning requirements, as well as property development in residential and commercial segments in Indonesia. As of 31 December 2019, the family of The Ning King owned around 47% of the company. ALAM SUTERA: S&P Downgrades LT ICR to 'D' on Distressed Exchange ---------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on PT Alam Sutera Realty Tbk. to 'D' from 'CC'. S&P also lowered its long-term issue rating on the Indonesia-based property developer's guaranteed senior unsecured notes to 'D' from 'CC'. The downgrade comes after Alam Sutera announced its completion of the exchange offer for both its US$115 million notes due in April 2021 and US$370 million notes due in April 2022. Post the transaction, the company will have new senior secured three-and-half-year US$171.4 million notes due in 2024 and five-year US$251 million notes due in 2025. Alam Sutera completed the exchange offer with an 86.1% participation rate from holders of the 2021 notes and 87.41% from holders of the 2022 notes. This means the company will still have outstanding bonds of US$16 million due in April 2021 and US$46.6 million due in April 2022. S&P believes Alam Sutera intends to repay the notes maturing in 2021 using internally generated cash, and leave the 2022 notes to be refinanced or redeemed. S&P said, "We view the transaction as a distressed exchange, tantamount to a default, because we believe the participating bondholders will receive less than originally promised without adequate offsetting compensation. The proposed new notes have a longer tenor, extending the maturities to 2024 and 2025, from 2021 and 2022. The coupons on the new notes are lower than the 11.5% on the 2021 notes and 6.625% on the 2022 notes. "In our view, the additional collateral does not provide adequate offsetting compensation because of the significant uncertainty on perfecting collateral in a bankruptcy scenario in Indonesia. The new notes benefit from additional collateral--a land mortgage on a commercial land lot valued at Indonesian rupiah (IDR) 2.4 trillion and Mall @ Alam Sutera valued at IDR2.5 trillion. "We expect Alam Sutera's settlement of the new notes, which includes cash payment of US$5 per US$1,000 in principal amount of existing notes, to occur on Nov. 2, 2020. "Assuming the settlement of the new notes proceeds as intended, we are likely to raise our issuer credit rating and issue rating on Alam Sutera in the coming days to 'CCC' to reflect our view that the company's capital structure will remain unsustainable." Environmental, social, and governance (ESG) credit factors for this credit rating change: -- Social factors ========= J A P A N ========= HITACHI METALS: To Cut 1,000 Jobs Through Voluntary Redundancy -------------------------------------------------------------- The Japan Times reports that Hitachi Metals Ltd. said on Oct. 27 that it will cut some 1,000 jobs through a voluntary redundancy program by the next fiscal year as its earnings have been eroded by the impact of the novel coronavirus pandemic. Including through attrition and cuts in nonregular workers, the company plans to slash about 3,200 jobs, or nearly 10% of its total workforce, the report says. For six months from October, executive remuneration will be returned, and salaries of managerial employees will be reduced. "We need to revamp our cost structure further," the report quotes Hitachi Metals Chairman and President Mitsuaki Nishiyama as saying during a teleconference, indicating the firm's plans to implement measures such as selling some of its real estate holdings and withdrawing from unprofitable operations, on top of cost reductions. On Oct. 27, Hitachi Metals reported a consolidated net loss of JPY33.21 billion for the April-September first half of fiscal 2020, after posting a net loss of JPY40.99 billion a year before, the Japan Times discloses. The Japan Times says the latest red ink reflected impairment losses totaling JPY24.5 billion in sectors including magnets, and automobile and aircraft parts, due to the fallout of the coronavirus pandemic. The company's consolidated sales in the six-month period fell 25.4% year on year to JPY340.83 billion, the report notes. Hitachi Metals Ltd. manufactures a wide range of specialty steel and metal products, including industrial machinery, magnetic and electronic materials and parts, and aluminium castings and wheels. The Company's products are marketed to a variety of users including the automobile, aerospace, nuclear, and computer industries worldwide. The Company is a subsidiary of Hitachi, Ltd. =============== M A L A Y S I A =============== AIRASIA GROUP: Malaysia's Anti-Graft Agency Probes Carrier's Loan ----------------------------------------------------------------- Reuters reports that the Malaysian Anti-Corruption Commission (MACC) has begun an investigation into a MYR300 million (US$72.1 million) loan from Sabah Development Bank Bhd (SDB) to budget airline AirAsia Group Bhd, an officer of the agency said on Oct. 28. MACC director for Sabah state, S. Karunanithy, confirmed that the agency was investigating the loan approved by the Sabah state-owned bank but declined to elaborate, Reuters says. "We have started our investigation to look into whether there had been any violation," he told Reuters in a text message. According to Reuters, Sabah-based newspaper Daily Express reported earlier on Oct. 28 that the state's recently installed Chief Minister Hajiji Noor had ordered a forensic investigation by an independent audit firm into the bank's decision, and called in the MACC. Reuters relates that the investigation will look into how the funds were disbursed quickly within a few days of the installation of the new state government, the paper said, adding that the loan was approved on July 2. Former Sabah Chief Minister Shafie Apdal said he welcomed the investigation and that there was nothing hidden behind the loan. "The application was not made overnight but instead SDB had carried out the best and most thorough investigation and consideration before the approval was given," he said in a statement, Reuters relays. AirAsia on Oct. 23 said the loan had been approved and disbursed from the bank to its group of companies as part of the fundraising efforts undertaken by the airline, but did not specify when, Reuters reports. More than half the loan amount was to establish and operate a digital food supply chain and cold chain facilities in Sabah, it said. The pandemic-hit airline has been looking to raise some MYR2.5 billion by year-end, Reuters discloses. Reuters adds that MIDF Research said in a Monday [Oct. 26] client note that the airline's core business was still in dire straits and that "new funds designated specifically for its aviation business are needed to help the company to stay afloat." About AirAsia AirAsia Berhad provides low-cost air carrier service. The company provides services on short-haul, point-to-point domestic and international routes. AirAsia, headquartered in Malaysia, operates from hubs in Malaysia, Thailand, Indonesia, Philippines and India. As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2020, auditor Ernst & Young said the carrier's ability to continue as a going concern may be in "significant doubt." In a statement to the Kuala Lumpur stock exchange, Ernst & Young said AirAsia's current liabilities already exceeded its current assets by MYR1.84 billion at the end of 2019, a year when it posted a MYR283 million net loss, Bloomberg News disclosed. That was before the coronavirus crisis, which has further hit the carrier's financial performance and cash flow. ===================== P H I L I P P I N E S ===================== ABRA ELECTRIC: PSALM Sends Demand Letter to Settle Arrears ---------------------------------------------------------- BusinessWorld Online reports that the Power Sector Assets and Liabilities Management Corp. (PSALM) has sent final demand letters to two entities in the power sector for them to settle outstanding obligations worth PHP671.16 million, the Department of Finance (DoF) said in a press release on Oct. 27. BusinessWorld relates that the DoF said PSALM President-CEO Irene Joy Besido-Garcia and its acting Vice-President for Finance Manuel Marcos M. Villalon II sent a formal and final demand letter to Abra Electric Cooperative, Inc. (Abreco), with arrears of PHP599.13 million on its power account and another PHP36.89 million in unremitted universal charge (UC) collections, as well as its other unremitted UC collections for the months not covered by the submitted reports. It said PSALM also sent a formal and final demand letter to First Bay Power Corp. (FBPC) to remind the company of its financial obligations to the agency worth PHP35.15 million, the report says. The two entities have seven days from receipt of the letter to pay or "face legal actions," according to the DoF, BusinessWorld relays. The final demand letters were dated Aug. 24, 2020. "[PSALM] shall be constrained to avail of all appropriate legal remedies to protect PSALM and the Government's interest, including the filing of criminal, civil, and administrative cases as well as against your officers and directors for the extreme prejudice you have caused PSALM and the Philippine government," the letters read, a copy of which were also provided to DoF Secretary Carlos G. Dominguez III, who also chairs PSALM, and Energy Secretary Alfonso G. Cusi. According to BusinessWorld, the DoF said the overdue power account of Abreco covers a period of 10 years to July 31. It consists of restructured account (RA), interest and penalty, value-added tax (VAT) and power rate adjustments approved by the Energy Regulatory Commission (ERC). Ms. Garcia was quoted as saying that PSALM has given the company written demand letters to ask for payment but "up to this date, [Abreco] continues to ignore the demand letters." According to the DoF, the cooperative said it would submit a payment option for its outstanding power account dues on Dec. 9, 2019, and that it had been entering restructuring agreements with PSALM, BusinessWorld relays. These have been also breached, the department said. It said PSALM provided a new restructuring program on Dec. 20, 2019, but was also "ignored." PSALM's record of Abreco's unremitted UC collections were based on reports submitted by the cooperative between February 2003 and December 2015, and does not include yet the unremitted collections from 2016 to date, BusinessWorld notes. The DoF statement quoted Ms. Garcia as saying that PSALM previously sent letters to Abreco "urging it to remit in full its UC collections, but these were also ignored." Meanwhile, FBPC's outstanding debt estimated at PHP35.15 million covers seven years to July 31, and includes its power bill, interest and VAT, and ERC-approved power rate adjustments, BusinessWorld adds. PSALM had also been issuing statements of accounts to the cooperative, which, according to the DoF, were all "ignored." Ms. Garcia warned that FBPC's overdue account will continue to accumulate interest until the total amount has been fully settled. BusinessWorld reached out to Abreco and FBPC, but did not get any response from calls, messages and e-mails at the deadline time. =============== T H A I L A N D =============== NOK AIR: Receives No Objections to Enter Business Rehabilitation ---------------------------------------------------------------- FlightGlobal reports that Nok Air looks set to be allowed to restructure under court supervision, after nobody raised objections during a court hearing on Oct. 27, according to a filing to the Stock Exchange of Thailand. According to FlightGlobal, the Thai budget carrier said the order on its business rehabilitation petition will be issued at 9:00 on November 4 by Thailand's Central Bankruptcy Court, after which Nok will provide further details to the stock exchange. The court had accepted the company's petition on July 30 and set the hearing for October 27. FlightGlobal relates that the airline said in September that it plans to improve fleet efficiency, seek alternative revenue streams, and adjust its marketing efforts in a bid to reduce costs. This will include adding more night flights, improving maintenance scheduling and adjusting its fleet. It will also embark on debt restructuring through negotiations with its creditors to improve cashflow. Meanwhile, Nok announced on October 22 the appointment of Rewadee Phochan as its new chief financial officer, who takes over from acting CFO Wutthiphum Jurangkool, FlightGlobal discloses. The previous finance chief Nuanwan Bhuprasert resigned on August 4, less than three weeks into the job, adds FlightGlobal. About Nok Airlines Nok Airlines Public Company Limited (SET:NOK) -- https://www.nokair.com/ -- is a Thailand-based low-cost airline operator. The Company offers point-to-point regional air services using small to medium-sized aircrafts. Its services include scheduled air services, which operates flights to various destinations in Thailand and abroad, including Chiang Mai, Hat Yai, Krabi, Vientiane, Yangon and others; charter flight services, which offers flights to group passengers and additional services for scheduled flight passengers, including booking services via Internet, airport counter, call center services, counter check-in, online check-in services, reservation change services, excess baggage service, and others. The Company also offers in-flight food and beverages, as well as souvenir merchandise to its customers. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 3, 2020, loss-making Nok Airlines, a budget carrier listed on the Stock Exchange of Thailand, will undergo a court-supervised rehabilitation, becoming the second Thai airline to file such a request this year, following national flag carrier Thai Airways International. The Central Bankruptcy Court has issued an order to accept the petition for consideration, according to a Nok Air statement filed at the SET on Aug. 1, according to Nikkei Asian Review. The carrier's board of directors decided to lodge the application at a meeting held on July 31; it was submitted the same day, the Nikkei said. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***