/raid1/www/Hosts/bankrupt/TCRAP_Public/201127.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, November 27, 2020, Vol. 23, No. 238
Headlines
A U S T R A L I A
A.C.N. 634 253 562 PTY: Second Creditors' Meeting Set for Dec. 8
ENVIROLIFE PTY: ASIC Bans Exec for Failing to Assist Liquidators
SGB FACILITY: First Creditors' Meeting Set for Dec. 4
SKIN BOOST: First Creditors' Meeting Set for Dec. 4
SOMARK GROUP: First Creditors' Meeting Set for Dec. 7
C H I N A
CHINA EVERGRANDE: Looks to Unit's IPO to Get Back on Its Feet
CHINA: Tightens Rules for Scandal-Hit Trust Sector Amid Risks
IONIX TECHNOLOGY: Incurs $532,000 Net Loss in First Quarter
YONGCHENG COAL: Regulator Finds Signs of Illegal Behavior
I N D I A
BUSTHAN AL: CRISIL Migrates D Debt Ratings From Not Cooperating
GUJARAT HYDROCARBONS: Insolvency Resolution Process Case Summary
JYOTI LTD: Bankruptcy Court Admits SBI's Insolvency Resolution Bid
KATHIAWAR STEELS: CRISIL Lowers Rating on INR10.3cr Bank Loan to B
KUNSTWERK MACHINERY: CRISIL Keeps B Ratings in Not Cooperating
LAGGAR INDUSTRIES: CRISIL Keeps D on INR14cr Debt in NonCooperating
LAKSHMI GREEN: CRISIL Lowers Rating on INR11cr Cash Loan to B
LANCER LASER: CRISIL Keeps B+ Debt Ratings in Not Cooperating
LATTA SUPER: CRISIL Keeps B+ on INR10cr Credit in Not Cooperating
LAXMI RICE: CRISIL Keeps B on INR13.5cr Loans in Not Cooperating
LORD GANESH: CRISIL Lowers Rating on INR6cr Cash Loan to B
LORICA TILES: CRISIL Hikes Rating on INR10.3cr Term Loan to B+
LOTUS FARMS: CRISIL Cuts Rating on INR47.9cr Cash Loan to B
LOTUS POULTRIES: CRISIL Lowers Rating on INR10.79cr Loan to B
LUNI POWER: CRISIL Keeps D on INR15cr Loan in Not Cooperating
M. CHANDRAVADANA: CRISIL Keeps B+ on INR5cr Loan in Not Cooperating
M. K. ENTERPRISES: CRISIL Keeps B+ Debt Rating in Not Cooperating
M. N. RAMESH: CRISIL Keeps B+ on INR3.5cr Loan in Not Cooperating
MAA KAMAKHYA: CRISIL Keeps B- on INR12cr Loan in Not Cooperating
MAC STEEL: CRISIL Lowers Rating on INR4.5cr Cash Loan to B
MADINENI INFRA: CRISIL Keeps B on INR7.5cr Debt in Not Cooperating
MAGIC INT'L: CRISIL Keeps B+ Debt Ratings in Not Cooperating
MAKALU TRADING: CRISIL Keeps D on INR275cr Debt in Not Cooperating
MAKSI AGRO: CRISIL Keeps B+ on INR11.5cr Loan in Not Cooperating
MALHOTRA CONSTRUCTIONS: CRISIL Keeps B+ Rating in Not Cooperating
MANOJ KUMAR: CRISIL Keeps B+ on INR6cr Loans in Not Cooperating
MAVERICK HOLDINGS: CRISIL Keeps B+ Debt Rating in Not Cooperating
MEDILAB AND CO: CRISIL Lowers Rating on INR3.8cr Loan to B
METROOF INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
METROPOLIS PROPERTIES: CRISIL Keeps B+ Rating in Not Cooperating
MJ GRAIN: CRISIL Keeps B+ Debt Ratings in Not Cooperating
MOISTOP ENTERPRISES: CRISIL Keeps B+ Ratings in Not Cooperating
MONARCH CERAMIC: CRISIL Cuts Rating on INR8.18cr Term Loan to B
MOTORCRAFT SALES: CRISIL Lowers Ratings on INR24cr Loans to B
MURLI KRISHNA: CRISIL Lowers Rating on INR6cr Cash Loan to B
P. R. PACKING: CRISIL Lowers Rating on INR15cr Cash Loan to D
SPM AUTOMOTIVE: Insolvency Resolution Process Case Summary
STERLING LAM: Insolvency Resolution Process Case Summary
M A L A Y S I A
AIRASIA GROUP: May Embark on Fundraising Route
P H I L I P P I N E S
PHILIPPINES: Government Budget Deficit Nears PHP1 Trillion
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A U S T R A L I A
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A.C.N. 634 253 562 PTY: Second Creditors' Meeting Set for Dec. 8
----------------------------------------------------------------
A second meeting of creditors in the proceedings of A.C.N. 634 253
562 Pty Ltd (Formerly Known as Pulp Juice Co. Lutwyche Pty Ltd) has
been set for Dec. 8, 2020, at 2:00 p.m. at the offices of SM
Solvency Accountants, 10/144 Edward Street, in Brisbane,
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 Dec. 7, 2020, at 4:30 p.m.
Brendan Nixon of SM Solvency Accountants was appointed as
administrator of A.C.N. 634 253 562 Pty on Nov. 3, 2020.
ENVIROLIFE PTY: ASIC Bans Exec for Failing to Assist Liquidators
----------------------------------------------------------------
Daniel Adin Flynn of Casey, in the Australian Capital Territory,
has been disqualified from managing corporations for three years
and six months after being convicted numerous times for failing to
assist liquidators.
Mr. Flynn was an officer of five failed companies that operated in
the solar industry:
* ACN 602 829 112 Pty Ltd (formerly known as PVLT Mildura Pty
Ltd) (PVLT Mildura);
* ACN 620 360 910 Pty Ltd (formerly known as PVLT QLD Pty Ltd)
(PVLT QLD);
* ACN 614 068 549 Pty Ltd (formerly known as PVLT Newcastle Pty
Ltd) (PVLT Newcastle);
* ACN 622 054 095 Pty Ltd (formerly known as PVLT Canberra Pty
Ltd) (PVLT Canberra); and
* Envirolife Pty Ltd (Envirolife) ACN 164 442 488.
Envirolife was placed into liquidation on Jan. 23, 2019. PVLT
Mildura, PVLT QLD, PVLT Newcastle and PVLT Canberra were all placed
into liquidation on March 13, 2019.
ASIC found that Mr. Flynn:
* failed to lodge documents for all five companies, such as BAS
and income tax returns, with the Australian Taxation Office;
* was convicted for failing to file a Report as to Affairs in
the prescribed form to the liquidator of Envirolife; and
* was separately convicted for failing to deliver up books and
records of Envirolife, PVLT Mildura, PVLT QLD, PVLT Newcastle
and PVLT Canberra to the liquidators appointed to those
companies.
In making the decision to disqualify Mr. Flynn, ASIC relied on a
supplementary report lodged by Vincent Pirina of Aston Chace Group,
liquidator of PVLT Mildura. ASIC assisted the liquidator in
preparing the supplementary reports by providing funding from the
Assetless Administration Fund.
ASIC also relied on ten convictions recorded against Mr. Flynn who
failed to comply with his obligations to help Mr. Pirina regarding
his appointment to PVLT Mildura, PVLT QLD, PVLT Newcastle and PVLT
Canberra and Timothy Clifton of Clifton Hall who was appointed
liquidator of Envirolife.
Mr. Flynn is disqualified from managing corporations until 9 April
2024.
Mr. Flynn was convicted on Sept. 9, 2019 for failing to submit a
Report as to Affairs and failing to assist Mr. Clifton, the
liquidator for Envirolife. Mr. Flynn was also convicted on March
26, 2020 with failing to assist, and on seven counts of failing to
deliver company books to, Mr. Pirina, the liquidator for PVLT
Mildura, PVLT QLD, PVLT Newcastle and PVLT Canberra.
These convictions follow requests made by Mr. Pirina and Mr.
Clifton to ASIC seeking assistance through the external
administrator assistance program.
The program assists liquidators when company officers in external
administration fail to comply with obligations to help
liquidators.
Section 206F of the Corporations Act gives ASIC the power to
disqualify a person from managing corporations for up to five years
if, within a seven-year period, the person was an officer of two or
more companies that were wound up and the liquidators lodge reports
with ASIC about each company's inability to pay its debts or
alleging misconduct.
ASIC maintains a Banned and Disqualified Persons register that
provides information about people who have been disqualified from:
* involvement in the management of a corporation;
* auditing self-managed superannuation funds (SMSFs); or
* practising in the financial services or credit industry.
SGB FACILITY: First Creditors' Meeting Set for Dec. 4
-----------------------------------------------------
A first meeting of the creditors in the proceedings of SGB Facility
Services Pty Ltd will be held on Dec. 4, 2020, at 11:00 a.m. at One
Wharf Lane', Level 20, 171 Sussex Street, in Sydney, NSW.
Ozem Kassem and Jason Tang of Cor Cordis were appointed as
administrators of SGB Facility on Nov. 24, 2020.
SKIN BOOST: First Creditors' Meeting Set for Dec. 4
---------------------------------------------------
A first meeting of the creditors in the proceedings of Skin Boost
Pty Ltd will be held on Dec. 4, 2020, at 11:30 a.m. at One Wharf
Lane', Level 20, 171 Sussex Street, in Sydney, NSW.
Ozem Kassem and Jason Tang of Cor Cordis were appointed as
administrators of Skin Boost on Nov. 24, 2020.
SOMARK GROUP: First Creditors' Meeting Set for Dec. 7
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Somark Group
Pty Ltd will be held on Dec. 7, 2020, at 10:00 a.m. via Zoom
Meeting.
Riad Tayeh and Suelen McCallum of de Vries Tayeh were appointed as
administrators of Somark Group on Nov. 25, 2020.
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C H I N A
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CHINA EVERGRANDE: Looks to Unit's IPO to Get Back on Its Feet
-------------------------------------------------------------
Qu Hui and Timmy Shen at Caixin Global report that China's most
indebted property company is hoping a Hong Kong IPO and state
support will get it back on its feet after a liquidity crisis.
China Evergrande Group's property management arm is looking to
raise up to HK$15.8 billion (US$2 billion) in a Hong Kong IPO next
month, the company said on Nov. 22, Caixin relates.
Meanwhile, Evergrande Group has secured deals for two local
state-owned enterprises in the southern Guangdong province to take
over shares totaling CNY30 billion ($4.6 billion) in its property
firm, Caixin adds.
China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
17, 2020, Fitch Ratings has affirmed the Long-Term Foreign-Currency
Issuer Default Ratings of China Evergrande Group and subsidiary
Hengda Real Estate Group Co., Ltd at 'B+' with Stable Outlooks. At
the same time, Fitch has affirmed Evergrande's senior unsecured
rating at 'B' with a Recovery Rating of 'RR5'. Fitch has also
assigned Hengda's wholly owned offshore financing platform, Tianji
Holdings Limited, a Long-Term IDR of 'B+' with Stable Outlook and a
senior unsecured rating of 'B' with a Recovery Rating of 'RR5'.
The Tianji-guaranteed senior unsecured notes issued by Scenery
Journey Limited have been downgraded to 'B' with a Recovery Rating
of 'RR5', from 'B+' with a Recovery Rating of 'RR4', to reflect
Fitch's revised rating approach, whereby the bond rating is linked
to Tianji, the guarantor, rather than Hengda, the keepwell
provider. Fitch affirmed Hengda's 'B+' senior unsecured rating with
a Recovery Rating of 'RR4' and then withdrew the rating because the
senior unsecured rating was no longer relevant to the agency's
coverage.
The affirmation of Evergrande's and Hengda's IDRs reflects the
group's large business scale and diversification, but higher
leverage and weaker liquidity than that of peers. The Stable
Outlook reflects the expectation that the Evergrande will be able
to deleverage after 2020, with improving contracted sales and
collection ratio, as well as its stated intention to reduce land
acquisitions. In addition, the Stable Outlook also reflects its
expectation that Evergrande will be able to negotiate with Hengda's
strategic investors not to redeem the CNY130 billion investment in
early 2021.
On Sept. 24, 2020, S&P Global Ratings revised the outlooks on China
Evergrande Group, the company's property arm Hengda Real Estate
Group Co. Ltd., and offshore financial platform Tianji Holding Ltd.
to negative from stable. At the same time, S&P affirmed its 'B+'
long-term issuer credit ratings on the three companies and its 'B'
long-term issue rating on the U.S. dollar notes issued by
Evergrande and guaranteed by Tianji.
CHINA: Tightens Rules for Scandal-Hit Trust Sector Amid Risks
-------------------------------------------------------------
Tang Ziyi at Caixin Global report that China has overhauled
regulations governing the country's US$3 trillion trust industry,
tightening oversight to help contain financial risks in a key area
of the shadow banking sector that has become of increasing concern
to authorities after a series of scandals and defaults.
The new rules, which will take effect on Jan. 1, represent the
first significant update of trust regulations since June 2015. They
stipulate stricter requirements for shareholders and managers of
trust companies, and tighten standards for those allowed to conduct
investment business, Caixin discloses citing a statement released
on Nov. 24 by the China Banking and Insurance Regulatory Commission
(CBIRC). They also relax criteria for overseas financial
institutions to invest in the sector and enhance corporate
governance obligations.
"The measures aim to further strengthen regulatory guidance for the
industry and enhance the effectiveness of supervision on companies
entering the industry," the CBIRC said in a statement adding that
the changes were in keeping with the State Council's reforms to
"delegate power, streamline administration, and optimize government
services," Caixin relays.
IONIX TECHNOLOGY: Incurs $532,000 Net Loss in First Quarter
-----------------------------------------------------------
Ionix Technology, Inc. filed with the Securities and Exchange
Commission its Quarterly Report on Form 10-Q disclosing a net loss
of $532,306 on $2.96 million of revenues for the three months ended
Sept. 30, 2020, compared to net income of $711,276 on $7.50 million
of revenues for the three months ended Sept. 30, 2019.
As of Sept. 30, 2020, the Company had $17.12 million in total
assets, $7.23 million in total liabilities, and $9.89 million in
total stockholders' equity.
The Company incurred loss from operation and did not generate
sufficient cash flow from its operating activities for the three
months ended Sept. 30, 2020. The Company said these factors, among
others, raise substantial doubt about its ability to continue as a
going concern.
The Company plans to rely on the proceeds from loans from both
unrelated and related parties to provide the resources necessary to
fund the development of the business plan and operations. The
Company is also pursuing other revenue streams which could include
strategic acquisitions or possible joint ventures of other business
segments. However, no assurance can be given that the Company will
be successful in raising additional capital.
A full-text copy of the Form 10-Q is available for free at:
https://bit.ly/2JdIqJp
About Ionix
Headquartered in Liaoning Province, China, Ionix Technology, Inc.
-- http://www.iinx-tech.com/-- is a holding company that is
principally engaged in the photoelectric display and smart energy
industries. The company has four operating subsidiaries: Changchun
Fangguan Photoelectric Display Technology Co., Ltd, a company which
specializes in developing, designing, producing, and selling TN and
STN LCD, STN, CSTN, and TFT LCD modules as well as other related
products; Shenzhen Baileqi Electronic Technology Co., Ltd, a
company which specializes in LCD slicing, filling, researching and
designing, manufacturing and selling of LCD Modules (LCM) and PCBs;
Lisite Science Technology (Shenzhen) Co., Ltd., a company engaged
in the production of intelligent electronic devices; and Dalian
Shizhe New Energy Technology Co., Ltd., a company engaged in
photo-voltaic power generation, electric vehicles and charging
piles with corresponding operation and maintenance and three
dimensional parking.
Ionix reported a net loss of $277,668 for the year ended June 30,
2020, compared to net income of $397,047 for the year ended June
30, 2019. As of June 30, 2020, the Company had $17.18 million in
total assets, $7.58 million in total liabilities, and $9.60 million
in total stockholders' equity.
YONGCHENG COAL: Regulator Finds Signs of Illegal Behavior
---------------------------------------------------------
Caixin Global reports that China's interbank market regulator has
found signs of possible illegal behavior at state-owned Yongcheng
Coal and Electricity Holding Group Co. Ltd., which roiled the bond
market by defaulting on a CNY1 billion ($151.9 million) bond
earlier this month.
Caixin relates that evidence potentially showing illicit activity
at the coal miner has been passed to the securities regulator, said
a statement published on Nov. 24 by the National Association of
Financial Market Institutional Investors (NAFMII), a
self-regulatory organization for the interbank market backed by the
central bank.
Financial regulators are looking to ease investor concerns about
the corporate bond market, Caixin notes. Yongcheng Coal's
surprising default has sent a shockwave through the market,
triggering selloffs of debt issued by some of its fellow miners and
state-owned enterprises (SOEs) and leading to some companies
cancelling their plans to sell bonds, says Caixin.
Yongcheng Coal & Electricity Holding Group Co. Ltd. mines and
distributes coal products. The Company produces brown coal
products, bituminous coal products, hard coal products, coking coal
products, and other related products. Yongcheng Coal & Electricity
Holding Group also provides electric generation, apparel
processing, trade, and other related services.
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I N D I A
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BUSTHAN AL: CRISIL Migrates D Debt Ratings From Not Cooperating
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities and
Exchange Board of India (SEBI) guidelines, had migrated the ratings
on the bank facilities of Busthan Al Wathaniya (BAW) to 'CRISIL
D/CRISL D Issuer Not Cooperating'. However, management has
subsequently started sharing requisite information necessary for
carrying out a comprehensive review of the ratings. Consequently,
CRISIL is migrating the ratings from 'CRISIL D/CRISIL D Issuer Not
Cooperating' to 'CRISIL D/CRISIL D'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Export Packing 2 CRISIL D (Migrated from
Credit 'CRISIL D ISSUER NOT
COOPERATING')
Foreign Bill 3 CRISIL D (Migrated from
Negotiation 'CRISIL D ISSUER NOT
COOPERATING')
The ratings continue to reflect delays in servicing term loan
obligations on account of weak liquidity profile.
The rating continues to reflect modest scale of operations and
susceptibility to volatility in raw material prices and foreign
exchange rates. These weaknesses are partially offset by extensive
experience of partners in the food processing and trading industry,
and established relations with customers and suppliers.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations amid intense competition: Modest
scale, reflected in the revenue of INR32 crore in fiscal 2020,
restricts its bargaining power with customers and suppliers,
especially in the food processing industry which is highly
fragmented and competitive due to low capital intensity and entry
barriers.
* Susceptibility to volatility in raw material prices and foreign
exchange rates: Raw materials such as chilli, coriander, and
turmeric account for over 70% of BAW's total raw material
requirement. Given the agro-based nature of raw materials and
different crop patterns, its availability is seasonal and prices
volatile, making operating margin susceptible to volatility.
Besides, profitability is also linked to the exports carried out in
a year and fluctuations in foreign exchange rates.
Strength:
* Extensive experience of partners in the food processing and
trading industry, and established relations with customers and
suppliers: BAW's partners, Mr. KV Ismail and Mr. Nazari Ismail,
have extensive experience of over three decades in the food
processing and trading industry. The partners have developed a
sound understanding of the market because of their long track
record in the industry. Established relationships with major
suppliers and customers further strengthen the market position.
Liquidity Poor
The bank limits have been highly utilized at around 97 percent in
the last 12 months ending June 2020, due to working capital
intensive operations. Further, there has been continuous delay in
servicing the term debt obligations due to liquidity crunch in the
firm. Current ratio stood at around 0.9 times as at 31st March
2020.
Rating Sensitivity factors
Upward Factor
* Timely repayment of term debt obligations.
* Improvement in the gross current asset to less than 150 days.
Set up in 2013, BAW, a partnership between Mr. KV Ismail and Mr.
Nazari Ismail, manufactures and exports a range of processed food,
including vegetables, Indian pickles, spices, chocolates, and
canned and frozen food. It is based in Kerala.
GUJARAT HYDROCARBONS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Gujarat Hydrocarbons and Power Sez Limited
22 Community Centre Basant Lok
Vasant Vihar New Delhi 110057
Insolvency Commencement Date: November 18, 2020
Court: National Company Law Tribunal, Delhi Bench
Estimated date of closure of
insolvency resolution process: May 17, 2021
Insolvency professional: Mr. Rakesh Kumar Agarwal
Interim Resolution
Professional: Mr. Rakesh Kumar Agarwal
20, N.S. Road
Room no. 15, Block-A
Kolkata 700001
E-mail: rakesh202@hotmail.com
Last date for
submission of claims: December 2, 2020
JYOTI LTD: Bankruptcy Court Admits SBI's Insolvency Resolution Bid
------------------------------------------------------------------
The Economic Times reports that the dedicated bankruptcy court has
admitted the insolvency resolution plea filed by the State Bank of
India (SBI) against BSE-listed Jyoti Ltd and has appointed Nesal
Hasmukh Shah as Interim Resolution Professional (IRP).
Company's two lenders State Bank of India and Central Bank of India
had approached the Ahmedabad bench of the National Company Law
Tribuna (NCLT) under section 7 of the Insolvency & Bankruptcy Code
(IBC) for its revival.
"From the document placed on record, this adjudicating authority is
satisfied that the default has been committed by the corporate
debtor (Jyoti Ltd) in repayment of the loan amount to the SBI,"
said the tribunal preceded over by judicial member Manorama Kumari
and technical member C Thirunavukkarasu in its 12-page order on
November 12, ET relays. "As a consequence, the instant petition is
admitted in terms of Section 7 of IBC."
According to ET, the company had announced in its stock exchange
filing that joint application was admitted by NCLT with the default
of State Bank of India as mentioned in the order is Rs 61.32
crores.
"The debts of one of the applicants, the applicant no 2 (SBI) are
still due and payable by the corporate debtor," observed the
tribunal in its order. "Hence, the objection of the respondent
(Jyoti Ltd) regarding the maintainability of the petition is not
sustainable."
With the order, the tribunal has declared the moratorium and
restrained the promoters from transferring, encumbering, alienating
or disposing of any assets of the Jyoti Ltd, ET notes.
The company had posted the revenue of Rs107.47 crore during FY20
and a loss of Rs12 crore, ET discloses.
About Jyoti Ltd
Jyoti Ltd manufactures and markets electrical and hydraulic
engineering equipment. The company was started as an engineering
department of Alembic Chemical Works Ltd and in 1943, the same was
carved out into an independent company.
KATHIAWAR STEELS: CRISIL Lowers Rating on INR10.3cr Bank Loan to B
------------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Kathiawar
Steels (KS) to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Foreign Exchange 0.7 CRISIL A4 (ISSUER NOT
Forward COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Letter of Credit 35 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 10.3 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with KS for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on KS is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of KS revised
to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
KS was initially set up as a proprietorship firm of Mr. Jaswant
Shah in 1994. The firm was later reconstituted as a partnership
firm, with two partners, Mr. Jaswant Shah and Mr. Hiren Shah. It
undertakes ship-breaking activity at the Alang Shipbreaking Yard in
Bhavnagar (Gujarat).
KUNSTWERK MACHINERY: CRISIL Keeps B Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kunstwerk Machinery
India Private Limited (KMPL) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Export Packing 1 CRISIL B/Stable (ISSUER NOT
Credit COOPERATING)
Proposed Working 7 CRISIL B/Stable (ISSUER NOT
Capital Facility COOPERATING)
CRISIL has been consistently following up with KMPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of KMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on KMPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of KMPL
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2009, KMPL manufactures agro-based capital goods.
The operations are managed by Mr. Suraj Ramakrishnan.
LAGGAR INDUSTRIES: CRISIL Keeps D on INR14cr Debt in NonCooperating
-------------------------------------------------------------------
CRISIL said the rating on bank facilities of Laggar Industries
Limited (LIL) continues 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 LIL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LIL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LIL
continues to be 'CRISIL D Issuer Not Cooperating'.
LIL was incorporated by Mr. Sandeep Sobti in 1990. The company
manufactures and trades in bullet-proof steel which is used
primarily in bullet-proof jackets and in armored vehicles. The
company has a rolling mill with installed capacity of 30,000 tonne
per annum in Jalandhar, Punjab.
LAKSHMI GREEN: CRISIL Lowers Rating on INR11cr Cash Loan to B
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Lakshmi Green
Ship Recyclers LLP (LSRM) to 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Foreign Exchange 1.44 CRISIL A4 (ISSUER NOT
Forward COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Letter of Credit 76.00 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Proposed Long Term 3.56 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with LSRM for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LSRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LSRM is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LSRM
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Set up in 1994, LSRM is a partnership firm engaged in
ship-breaking. It has a yard of 2,250 square metre in Alang,
Gujarat, one of the leading centres of the ship-breaking and
recycling industry in Asia. The firm purchases old ships and breaks
them into steel plates, which it supplies to rolling mills in
Gujarat.
LANCER LASER: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Lancer Laser Tech
Limited (LLTPL) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.3 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 8 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 0.45 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 6.44 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with LLTPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LLTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LLTPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LLTPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Established in 1999 in Rajpur, Gujarat, LLTPL manufactures
different types of customised sheet metal fabrication that include
metal cutting, and bending, wielding, and fabrication work. The
company primarily produces rotovators used for agricultural
purposes and other specialised sheet metal fabrications used in
railway wagons. It also undertakes jobwork. Operations are managed
by Mr. Nitin M Patel, Mr. Dhiraj N Patel, Mr. Dahya B Patel, and
Mr. Arvind Patel.
LATTA SUPER: CRISIL Keeps B+ on INR10cr Credit in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Latta Super Market
(Latta) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with Latta for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Latta, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on Latta is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of Latta
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Latta, set up in 2000 as a partnership firm by Mr. Chandrakumar and
his brothers, operates three supermarkets in Chennai. The
operations are managed by Mr. Chandrakumar.
LAXMI RICE: CRISIL Keeps B on INR13.5cr Loans in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Laxmi Rice Mills -
Muktsar (LRM) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 1.0 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with LRM for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LRM is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LRM
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up as a partnership firm in 1995 by Mr. Darshan Lal Garg and Ms
Anita Rani, LRM mills and processes basmati and non-basmati rice
and caters to large export houses. Production facilities at Muktsar
Sahib, Punjab, have milling capacity of 8 tonne per hour (tph) and
sorting capacity of 6 tph, utilised at 80-85%.
LORD GANESH: CRISIL Lowers Rating on INR6cr Cash Loan to B
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Lord Ganesh
Roller Flour Mills (LGRFM) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with LGRFM for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LGRFM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LGRFM is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LGRFM
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
Established in November 1997, LGRFM mills wheat. Mr. Davinder
Kumar, Mr. Anil Kumar, Mr. Vijay Kumar, Ms. Baljit Kaur, Mr.
Ajudhia Verma, Ms. Sudarshan, and Mr. Paramjit Sarao are partners
in the firm. Its manufacturing facility is located in Khanna,
Punjab.
LORICA TILES: CRISIL Hikes Rating on INR10.3cr Term Loan to B+
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Lorica Tiles LLP (LTL) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'
and reassigning its 'CRISIL A4' rating to the short-term bank
facility.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Reassigned)
Term Loan 10.3 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Fund- 2.95 CRISIL B+/Stable (Upgraded
Based Bank Limits from 'CRISIL B/Stable')
Cash Credit 3.75 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects an improvement in LTL's business risk
profiles. Company achieved revenue of INR15.23 in fiscal 2020
backed by timely completion of projects, successful ramp up of
operations and healthy domestic and export demand. The growth
momentum continued during H1FY21 as reflected in estimated revenue
of INR20 crore. With accretion of accruals into networth, gearing
is expected to improve below 1.2 times over the medium term.
Liquidity has also been satisfactory, in absence of any large,
debt-funded capital expenditure and significant capital
withdrawals.
The rating reflects moderate scale of operation, working capital
intensive operations and intense competitive pressure. These rating
strengths are partially offset by the promoters' extensive
experience and average financial risk profile.
Key Rating Drivers & Detailed Description
Weaknesses
* Moderate scale of operations: Firm's business risk profile is
constrained by moderate scale of operation as reflected in revenue
of INR15.23 crore in FY20 due to short track record of operation as
firm commenced operation from November 2019. Moderate scale limits
pricing flexibility, thereby constraining profitability.
* Working capital intensive operations: The operations are working
capital intensive as reflected in GCA days of 234 days in FY20 due
to inventory of 109 days and debtors of 106 days. Working capital
is expected remain working capital intensive in range of 150-180
days over the medium term.
Strengths
* Extensive experience of partners: The partners of firm has
extensive experience in ceramic industry through their associate
company operating in similar industry. This has given them an
understanding of the dynamics of the market, enabled them to
establish relationships with suppliers and customers and ramp up
its operations in FY20 and H1FY21.
* Average financial risk profile: Financial risk profile remain
average with Networth of INR10.47 crore and gearing of 1.19 times
as on March 31, 2020. Debt protection metrics also remain
satisfactory as reflected in interest coverage and net cash accrual
to adjusted debt ratio of 4.4 times and 0.08 time, respectively, in
fiscal 2020. In absence of large debt funded capex and significant
capital withdrawals, financial risk profile of firm is expected to
improve over the medium term.
Liquidity Stretched
The liquidity is stretched with expected accruals of over INR1.80
crore to meet debt obligation of INR0.60-1.5 crore over the medium
term. The firm has access to bank limits of INR3.75 crore, which
was utilised 90-95% on an average over the six months through
September 2020.
Outlook: Stable
CRISIL believes the LTL will continue to benefit from the extensive
experience of its partner and an average financial risk profile.
Rating Sensitivity Factors
Upward factors
* Sustained net cash accruals over INR2-2.5 crore
* Decline in working capital cycle
Downward factors
* Increase in TOL/ANW over 3.5 times
* Steep decline in revenue and/or margin.
Set up in 2019 as a partnership firm by Mr. Jayesh Nanji
Rangpariya, Mr. Dinesh Bhimji Loriya, Mr. Prabhulal Daya Ransariya,
and their families, Morbi-based LTLLP is setting up a plant to
manufacture ceramic wall tiles.
LOTUS FARMS: CRISIL Cuts Rating on INR47.9cr Cash Loan to B
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Lotus Farms
(LF; part of Lotus Group) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 47.9 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 1.8 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
Term Loan 33.3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with LF for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LF is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LF Revised
to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable
Issuer Not Cooperating'.
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of LF and Lotus Poultries Pvt. Ltd
(LPPL), because both the companies have same promoters, are in the
same line of business and have operational and financial
fungibility.
LF is a partnership firm set- up in 1991 by Mr. M. Damodar Reddy,
Mr. Srihari Reddy and Mrs. M. Surekha. The firm is engaged in the
business of poultry- broiler segment. The firm has an in-house
facility for brooder sheds, grower sheds, layer sheds, incubator
and rearing shed. The firm is based out in Hyderabad with its
operations exclusively in nearby region of Bangalore, Karnataka.
LPPL was incorporated in 2010 by Mr. Damodar Reddy and Mr. Srihari
Reddy. The company has brooding and growing bird capacity and is
setting up a layer facility in Bengaluru.
LOTUS POULTRIES: CRISIL Lowers Rating on INR10.79cr Loan to B
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Lotus
Poultries Private Limited (LPPL; part of Lotus Group) to 'CRISIL
B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Long Term Loan 10.79 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 5.91 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with LPPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of 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
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of LF and Lotus Poultries Pvt. Ltd
(LPPL), because both the companies have same promoters, are in the
same line of business and have operational and financial
fungibility.
LF is a partnership firm set- up in 1991 by Mr. M. Damodar Reddy,
Mr. Srihari Reddy and Mrs. M. Surekha. The firm is engaged in the
business of poultry- broiler segment. The firm has an in-house
facility for brooder sheds, grower sheds, layer sheds, incubator
and rearing shed. The firm is based out in Hyderabad with its
operations exclusively in nearby region of Bangalore, Karnataka.
LPPL was incorporated in 2010 by Mr. Damodar Reddy and Mr. Srihari
Reddy. The company has brooding and growing bird capacity and is
setting up a layer facility in Bengaluru.
LUNI POWER: CRISIL Keeps D on INR15cr Loan in Not Cooperating
-------------------------------------------------------------
CRISIL said the rating on bank facilities of Luni Power Company
Private Limited (LPCL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with LPCL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of LPCL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LPCL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LPCL
continues to be 'CRISIL D Issuer Not Cooperating'.
LPCL, incorporated in 2001, is setting up a small hydro-power plant
under a 40-year concession contract with the Government of Himachal
Pradesh on a build-own-operate-and-transfer basis.
M. CHANDRAVADANA: CRISIL Keeps B+ on INR5cr Loan in Not Cooperating
-------------------------------------------------------------------
CRISIL said the rating on bank facilities of M. Chandravadana (MC)
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Lease Rental 5 CRISIL B+/Stable (ISSUER NOT
Discounting Loan COOPERATING)
CRISIL has been consistently following up with MC for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MC
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2011, Mrs. M. Chandravadana (individual) owns an
industrial building in Begur Hobli, Bangalore. MC has a 10-year
lease agreement with Trelleborg Sealing Solutions India Pvt Ltd and
receives rental income each month. Operations are managed by Mrs
Chandravadana and her daughters, Mrs Latha Reddy, Mrs Lavanya R
Reddy and Mrs. Bhavani R.
M. K. ENTERPRISES: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of M. K. Enterprises JV
(MK) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 8.41 CRISIL A4 (ISSUER NOT
COOPERATING)
Long Term Loan 8.59 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MK for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MK, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MK is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MK
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
MK was set up as a partnership firm in 2012 by MK Enterprises, Gulf
Hotel, and Global Waste Management Cell. It collects and dump waste
materials in Mumbai.
M. N. RAMESH: CRISIL Keeps B+ on INR3.5cr Loan in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of M. N. Ramesh (MNR)
continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit/
Overdraft facility 3.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MNR for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MNR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MNR is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MNR
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
MNR was established in 2004 as a proprietorship firm by Mr. M N
Ramesh. The firm undertakes civil construction works for government
departments, including Karnataka Urban Water Supply and Drainage
Board. Its proprietor, along with his family members, manages the
business.
MAA KAMAKHYA: CRISIL Keeps B- on INR12cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facilities of Maa Kamakhya
Multipurpose Himghar Private Limited (MKMHPL) continues to be
'CRISIL B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 12 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MKMHPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MKMHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MKMHPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MKMHPL
continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Incorporated in 2011, MKMHPL was acquired by its current promoter,
Mr. Prasad Kumar Ghosh, in June 2015. The company provides cold
storage facilities for potatoes and also undertake opportunistic
trading in potatoes. Its cold storage in Hazipur village, Mednipur
West, West Bengal, has capacity of 165,000 quintals.
MAC STEEL: CRISIL Lowers Rating on INR4.5cr Cash Loan to B
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Mac Steel
Private Limited (MSPL) to 'CRISIL B/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 0.6 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 1.4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MSPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MSPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MSPL
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
Incorporated in 1997 and promoted by Nashik (Maharashtra)-based
Rajput family, MSPL manufactures sheet metal pressed and tubular
components used across the automotive and electrical industries.
Its facility is in Nashik.
MADINENI INFRA: CRISIL Keeps B on INR7.5cr Debt in Not Cooperating
------------------------------------------------------------------
CRISIL said the rating on bank facilities of Madineni Infra Private
Limited (MIPL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MIPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MIPL
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
Incorporated in 2012 and promoted by Mr. Madineni Sitaramaiah,
Hyderabad-based MIPL constructs roads, culverts, and low-cost
houses; and also undertakes irrigation projects.
MAGIC INT'L: CRISIL Keeps B+ Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Magic International
Private Limited (MIPL) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Packing Credit 6 CRISIL A4 (ISSUER NOT
COOPERATING)
Proposed Fund- 3.75 CRISIL B+/Stable (ISSUER NOT
Based Bank Limits COOPERATING)
Term Loan 3.25 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MIPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MIPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
MIPL, based in Delhi, was incorporated in 1999, promoted by by Mr.
Rajeev Batra and Mr. Ashish Batra. The company manufactures paper
stationery and envelopes, and provides print solutions. It supplies
to customers in the domestic and global markets.
MAKALU TRADING: CRISIL Keeps D on INR275cr Debt in Not Cooperating
------------------------------------------------------------------
CRISIL said the rating on bank facilities of Makalu Trading Limited
(MTL) continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 275 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MTL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MTL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MTL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MTL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
MTL, incorporated in 1981 by Mr. Vinod Jatia and his family
members, primarily trades in iron and steel products such as hot-
and cold-rolled coils, sheets, and plates, sponge iron lumps, and
fines.
MAKSI AGRO: CRISIL Keeps B+ on INR11.5cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the rating on bank facilities of Maksi Agro Cool Chains
Private Limited (MACCPL) continues to be 'CRISIL B+/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 11.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MACCPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MACCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MACCPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MACCPL
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
MACCPL has set up a unit at Ara, Bihar, for extracting edible oil.
The unit began commercial operations in the first week of December
2016. The company is promoted by Mr. Ajeet Kumar Sinha, Ms Sonika
Sinha, and Mr. Manoj Kumar Sinha and their families.
MALHOTRA CONSTRUCTIONS: CRISIL Keeps B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the rating on bank facilities of Malhotra Constructions
Pvt. Ltd. (MCPL) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 11 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MCPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MCPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MCPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Incorporated in 1989 and promoted by Mr. Rajesh Malhotra MCPL is
engaged in civil construction.
MANOJ KUMAR: CRISIL Keeps B+ on INR6cr Loans in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Manoj Kumar Kedia
(MKK) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MKK for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MKK, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MKK is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MKK
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
MKK is a Raigarh-based partnership firm; it has been undertaking
the construction of roads and bridges for the Chhattisgarh Public
Works Department since 2014.
MAVERICK HOLDINGS: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Maverick Holdings and
Investments Private Limited (MHIPL; part of the Maverick group)
continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15 CRISIL A4 (ISSUER NOT
COOPERATING)
Lease Rental 158 CRISIL B+/Stable (ISSUER NOT
Discounting Loan COOPERATING)
Overdraft 4 CRISIL A4 (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MHIPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MHIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MHIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MHIPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
The Maverick group is engaged in real estate development, and earns
a substantial portion of its revenue through lease rental. MHIPL,
established in 1991, operates two shopping malls (Garuda Mall and
Garuda Swagath) in Bengaluru. EGRIPL was established in 1999 to
develop a luxury resort complex, Suncity, in Bengaluru. The project
is currently on hold, and is unlikely to be executed over the
medium term.
MEDILAB AND CO: CRISIL Lowers Rating on INR3.8cr Loan to B
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Medilab and
Co. (Medilab) to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 6 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 3.8 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with Medilab for
obtaining information through letters and emails dated April 18,
2020 and October 17, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Medilab, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes that rating action on Medilab is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of
Medilab revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Set up as a partnership firm in 2000 by Sri Subimal Nag, Sri Joydev
Samanta, Sri Murli P Nair and Sri Tapas Mita, Medilab is a trader
of medical, surgical and diagnostic equipment. The firm is also
involved in setting up central sterilising system and laundry units
for hospitals. The firm has offices in Kolkata, West Bengal and
Ranchi, Jharkhand.
METROOF INDUSTRIES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Metroof Industries
(MI) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 2 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MI for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MI is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MI
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
MI was incorporated in 2011, promoted by Mr. G Sanatha Alva and Mr.
Asif Fareed Khan. The firm manufactures pre-engineered buildings
and provides roofing solutions. It is based in Bengaluru.
METROPOLIS PROPERTIES: CRISIL Keeps B+ Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Metropolis Properties
Private Limited (MPPL; part of the Metropolis group) continue to
be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 5 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Secured Overdraft 5 CRISIL B+/Stable (ISSUER NOT
Facility COOPERATING)
CRISIL has been consistently following up with MPPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MPPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MPPL
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Metropolis Properties Pvt Ltd (MPPL, set up in 2012 by Mr. Jayapal
Reddy Pullangari, and based in Bengaluru is involved in real estate
development. It has currently undertaken four residential projects
and a commercial project in Bengaluru.
MJ GRAIN: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL said the ratings on bank facilities of MJ Grain Products
Private Limited (MJG) continue to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT
COOPERATING)
Cash Credit 12.0 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 5.69 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MJG for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MJG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MJG is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MJG
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
Incorporated in 2008 as Dharmik Marketing Pvt Ltd and acquired by
Siliguri-based MB group in 2010, MJG mills and processes parboiled
rice at its facility in Phansidewa, Darjeeling, and is promoted by
Mr. Gouri Shankar Goyal. Products are marketed under the Rangeet,
Jevan Moti, Swarn Bhumi, and Suman brands.
MOISTOP ENTERPRISES: CRISIL Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Moistop Enterprises
Private Limited (MEPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Long Term Loan 0.75 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 3.25 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MEPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MEPL
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
MEPL is a Hyderabad based company, incorporated in 2012 and is a
professional desiccant manufacturing company engaged in
manufacturing of silica gel desiccant canisters catering to food
and beverages, electronics and pharmaceutical industries. The
company is promoted by Mr. B.V. Satyanarayana and Mrs. B.
Rajakumari.
MONARCH CERAMIC: CRISIL Cuts Rating on INR8.18cr Term Loan to B
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Monarch
Ceramic (MC) to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 3.57 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
Term Loan 8.18 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MC for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MC revised
to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Established in 2008, MC, manufactures vitrified tiles. Previously,
it manufactured ceramic porcelain tiles and from 2015 onwards it
shifted to manufacturing vitrified tiles at the same premises by
procuring new machines. MC is promoted and managed by Mr. Praful
Kalariya and Mr. Anil Bavarva, along with 19 others. Its
manufacturing facility at Morbi has an installed capacity of 6000
box per day.
MOTORCRAFT SALES: CRISIL Lowers Ratings on INR24cr Loans to B
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Motorcraft
Sales Private Limited (MSPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory 23 CRISIL B/Stable (ISSUER NOT
Funding COOPERATING; Revised from
Facility 'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Working 1 CRISIL B/Stable (ISSUER NOT
Capital COOPERATING; Revised from
Facility 'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MSPL for obtaining
information through letters and emails dated April 18, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MSPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MSPL
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB+/Stable Issuer Not Cooperating'.
Incorporated in 2007, MSPL has a dealership for MSIL's cars. It has
three showrooms two in Sahibabad and one in Modi Nagar, in
Ghaziabad and four workshops. The company is promoted by Mr. Jayesh
Desai and his wife, Mrs Mona Desai.
MIPL was incorporated by Mr. and Mrs Desai in 1995. It operates
four authorised workshops for MSIL in Noida. In fiscal 2016, it
acquired IIPL to start a new workshop. MIPL owns 45% equity stake
in MSPL.
MURLI KRISHNA: CRISIL Lowers Rating on INR6cr Cash Loan to B
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Murli Krishna
Chicory Processors Private Limited (MKMHPL) to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Export Packing 9 CRISIL A4 (ISSUER NOT
Credit COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Standby Line
of Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with MKMHPL for obtaining
information through letters and emails dated April 29, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MKMHPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on MKMHPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of MKMHPL
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
MKC, incorporated in 2004, commenced operations in fiscal 2008 by
taking over the operations of a partnership firm, Chicory
Processors. It processes roasted chicory used for blending in
coffee powder. The manufacturing unit in Etah (Uttar Pradesh) has
roasting capacity of 12,000 tonne per annum. Mr. Rakesh Kumar, Mr.
Dinesh Kumar, Mr. Ashok Gupta, and Mr. Girish Chandra Sahni are the
promoters.
P. R. PACKING: CRISIL Lowers Rating on INR15cr Cash Loan to D
-------------------------------------------------------------
CRISIL has revised the rating on the long term bank facilities of
P. R. Packing Service (PR) to 'CRISIL D/Issuer Not Cooperating'
from 'CRISIL B/Stable/Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
Proposed Long Term 5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with PR for obtaining
information through letters and emails dated April 23, 2019,
October 11, 2019 and July 25, 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 P.R. Packing Service, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes that rating action on PR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on the long term bank
facilities of PR revised to 'CRISIL D/Issuer Not Cooperating' from
'CRISIL B/Stable/Issuer Not Cooperating'.
The downgrade reflects instances of overutilization in the Cash
Credit limit. It was recently brought to CRISIL's attention that
the overutilization is by more than 30 days. This is owing to the
firms poor liquidity position.
PR was set up as a partnership firm in 1999 by Mr. Dhananjay
Bhansali and his wife Mrs. Rekha Bhansali. The firm manufactures
corrugated boxes using kraft paper. PR's operations are managed by
Mr. Pathik Bhansali, son of Mr. Dhananjay Bhansali. PR has one
manufacturing unit in Silvassa. Its second manufacturing unit, at
Naroli (Dadra and Nagar Haveli), commenced operations in April
2012.
SPM AUTOMOTIVE: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: SPM Automotive Components Private Limited
Registered office:
Plot No. 30, WZ-406s
F/F, Janak Park
Harinagar
New Delhi 110064
Insolvency Commencement Date: November 18, 2020
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: May 17, 2021
(180 days from commencement)
Insolvency professional: Mr. Vijay Kishore Saxena
Interim Resolution
Professional: Mr. Vijay Kishore Saxena
3rd Floor, 100 Kailash Hills
East of Kailash
New Delhi 110065
E-mail: vksaxena2159@gmail.com
- and -
Basement, D-69
East of Kailash
New Delhi 110065
E-mail: irp.spmauto@gmail.com
Last date for
submission of claims: December 2, 2020
STERLING LAM: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Sterling Lam Limited
Registered office:
Block No. 123
At Mahiyal Talod 383215
Gujarat
Corporate office:
Shree Laxmi Saw Mill Compound
Near Odhav Approach Bus Stand
Odhav, Ahmedabad 382415
Gujarat
Insolvency Commencement Date: November 10, 2020
Court: National Company Law Tribunal, Ahmedabad Bench
Estimated date of closure of
insolvency resolution process: May 17, 2021
(180 days from commencement)
Insolvency professional: Mr. Rajendra Jain
Interim Resolution
Professional: Mr. Rajendra Jain
A-1103, Iscon Riverside
Opp. Police Stadium
Nr. Shilalekh Apartments
Shahibaug
Ahmedabad 380004
Gujarat
E-mail: iprajendragjain@gmail.com
- and -
203, Wall Street-1
Opp. Orient Club
Nr. Gujarat College
Ellisbridge
Ahmedabad 380006
Gujarat
E-mail: cirp.sterling@gmail.com
Last date for
submission of claims: December 2, 2020
===============
M A L A Y S I A
===============
AIRASIA GROUP: May Embark on Fundraising Route
----------------------------------------------
The Star reports that AirAsia Group Bhd is considering a rights
issue, debt financing and even a private placement to raise more
capital until air travel demand picks up.
The Star relates that the group is also actively exploring other
potential monetisation opportunities including hiving off part of
its digital business as raising cash is vital for its survival.
It plans to raise MYR2 billion to MYR2.5 billion and the funding
should come in anytime from December to February 2021, analysts
said.
AirAsia is expected to secure loans of MYR400 million under the
Danajamin government programme and MYR300 million from a bank in
Sabah, The Star discloses.
AirAsia would still need an additional MYR1.5 billion to MYR1.8
billion.
According to The Star, UOB Kay Hian expected a 1-for-1 rights issue
priced at about 50 per share or a mixture of rights issue and
convertible debt.
"Given that the book value at the end of the third quarter 2020 was
MYR0.35, investors could be lukewarm to equity issuance at a
substantial premium to book value," UOB Kay Hian said.
However, TA Research "see high chances for a successful fundraising
exercise now due to vaccine optimism."
"We are mindful of the urgent needs for airlines to recapitalise
their balance sheets but there could be a steep downwards
adjustment to AirAsia's share price in the event of a highly
dilutive equity-raising exercise."
The Star says CGS-CIMB Research cautioned that without the equity
issue, AirAsia is likely to fall into a net liability position by
the end of financial year (FY) 2021.
It pointed out that the MYR2.5 billion in "capital raising should
be just barely enough, but is cutting it very thin.''
"The high level of infections in Malaysia, Indonesia and the
Philippines is worrisome and could postpone the recovery. Without
government support, AirAsia is living on the edge. We believe
AirAsia may need to raise more than one round of funding," the
research house said, The Star relays.
According to AmInvestment Research, AirAsia is poised to survive
the pandemic with stringent cost controls and continued innovation
of its business model.
The Star notes that the group has taken steps to conserve cash for
future operations. It will not take delivery of new aircraft,
restructured payments to lessors, disposed of aircraft engines and
closed down the loss-making AirAsia Japan operations.
For the first nine months of 2020, AirAsia turned in MYR2.6 billion
in net losses, the report discloses.
For the full year, analysts said it would be over MYR3 billion.
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
=====================
PHILIPPINES: Government Budget Deficit Nears PHP1 Trillion
----------------------------------------------------------
Manila Bulletin reports that the Duterte administration's budget
deficit is nearing the P1 trillion mark in January to October this
year as the government continued to struggle in raising revenues
due to the coronavirus-induced crisis.
The Bulletin, citing data from the Bureau of the Treasury, says the
national government incurred a PHP940.6 billion fiscal deficit in
the first 10-months of the year, up by 170 percent compared with
PHP348.3 billion in the same period last year.
Total revenues at end-October slid by 8.4 percent to PHP2.371
trillion from PHP2.588 trillion a year ago, the Bulletin
discloses.
According to the report, the Treasury said the lower revenue haul
is owing to weak tax collections of the government.
Revenues of the government's two main tax agencies contracted in
January to October, dragging down the total tax revenues by 11
percent to PHP2.058 trillion from PHP2.328 trillion a year ago,
according to the Bulletin.
The Bureau of Internal Revenue (BIR) collections declined by 10
percent to PHP1.596 trillion, while the Bureau of Customs collected
only PHP448.6 billion, lower by 15 percent year-on-year.
The drastic reduction in tax revenues, on the other hand, was
slightly softened by higher non-tax collections, which grew by 20
percent to PHP313.1 billion from PHP261.4 billion in the previous
year.
Meanwhile, government expenditures increased by 13 percent to
PHP3.312 trillion in January to October from PHP2.938 trillion in
the same period last year. Of that amount, PHP335 billion went to
interest payments.
In October alone, the national government's budget deficit stood at
PHP61.4 billion, wider by 24 percent compared with PHP49.3 billion
in the same month last year.
Revenue collections during the month decreased by 13 percent to
PHP228.2 billion from PHP261.6 billion a year ago. Of that amount,
tax revenues reached PHP203.8 billion, while non-tax income was at
PHP24.4 billion, the Bulletin relays.
Public spending, meanwhile, slowed by 6.8 percent in October to
PHP289.6 billion from PHP310.8 billion in the previous year.
According to the Treasury, the lower expenditure was owing to based
effect "of the one-off pension differential releases for the
military and uniformed personnel in October last year as well as
the expected lower capital outlays ding the year because of the
pandemic."
As reported in the Troubled Company Reporter-Asia Pacific on Aug.
7, 2020, Bloomberg News said the Philippine economy suffered its
deepest contraction on record in the second quarter and revised
down its forecast for the year amid one of Asia's strictest
lockdowns against the coronavirus.
Gross domestic product shrank 16.5% from a year ago, according to
the national statistics agency, the worst reading in a data series
going back to 1981, Bloomberg disclosed. The median forecast in a
Bloomberg survey of 21 economists was for a 9.4% contraction. GDP
declined for a second consecutive quarter on a quarter-on-quarter
basis, down 15.2%, implying the economy is in recession.
According to Bloomberg, the country's economic managers said they
now expect the economy to shrink 5.5% this year -- down from
earlier estimates for a 2% to 3.4% decline -- before rebounding
strongly next year.
*********
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 ***