/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/201204.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, December 4, 2020, Vol. 23, No. 243 Headlines A U S T R A L I A ALTURA MINING: Pilbara Minerals to Buy Lithium Project for US$175MM DATAVERSE SOLUTIONS: First Creditors' Meeting Set for Dec. 15 ESPLANADE BRIGHTON: First Creditors' Meeting Set for Dec. 11 EWOS HOLDINGS: First Creditors' Meeting Set for Dec. 15 LASH HOPKINS: First Creditors' Meeting Set for Dec. 11 LDJD INVESTMENTS: Second Creditors' Meeting Set for Dec. 10 LIVING ROOM: ATO Voted to Liquidate Restaurants, Documents Reveal TIGER RESOURCES: Second Creditors' Meeting Set for Dec. 9 C H I N A CHINA EVERGRANDE: Unit's Shares Edge Marginally on HK Debut CHINA: Corporate Bonds Heading for Another Year of Record Defaults SHANGRAO CITY CONSTRUCTION: Fitch Affirms BB+ LT IDRs I N D I A ACUBE KRAFT: CRISIL Reaffirms B Rating on INR4.9cr Loans BISHNU FEED: CRISIL Keeps D on INR8.35cr Credit in Not Cooperating DEWAN HOUSING: Lenders Vote In Favor of Inviting New Bids DIGNITY INNOVATION: Ind-Ra Keeps 'B+' LT Rating in Non-Cooperating DWARKADHISH UDYOG: CRISIL Keeps D on INR10cr Debt in NonCooperating GAAP TUFF: CRISIL Assigns B+ Rating to INR10cr Loans HANUMAN TRADING: CRISIL Keeps B on INR10cr Loans in Not Cooperating JAIKA AUTOMOBILES: CRISIL Cuts Rating on INR56.95cr Loan to D KAYNES TECHNOLOGY: CRISIL Migrates D Ratings to Not Cooperating KAYVAL KRUPA: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating M MADHAVARAYA: CRISIL Reaffirms B+ Rating on INR27cr Cash Loan MAPLE RENEWABLE: Ind-Ra Affirms, Then Withdraws B- Term Loan Rating N. S. ENGINEERING: CRISIL Keeps D Debt Ratings in Not Cooperating N.S.K. BUILDERS: CRISIL Keeps D Debt Ratings in Not Cooperating NATURAL HERBALS: CRISIL Cuts Rating on INR19.5cr Cash Loan to B ONEWORLD CREATIONS: CRISIL Keeps D Ratings in Not Cooperating ONEWORLD INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating ONEWORLD RETAIL: CRISIL Keeps D Debt Ratings in Not Cooperating ONEWORLD SOURCING: CRISIL Keeps D Debt Ratings in Not Cooperating PLAZA COMPUTERS: CRISIL Keeps D on INR7cr Debt in Not Cooperating PRAKASH INDUSTRIAL: CRISIL Keeps B Debt Rating in Not Cooperating RAGHAV COTSPIN: CRISIL Keeps D Debt Ratings in Not Cooperating RAHIL COLD: CRISIL Reaffirms D Ratings on INR14.92cr LT Loan RAJESHWARA HATCHERIES: CRISIL Cuts Rating on INR24cr Loan to B RUSHABH FLOUR: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating S. S. WAREHOUSING: CRISIL Keeps B+ on INR6cr Debt in NonCooperating SIDDHESHWAR SAHAKARI: CRISIL Keeps D Ratings in Not Cooperating SRM POWER: CRISIL Keeps D on INR21.5cr Loans in Not Cooperating STAR AQUA: CRISIL Keeps D on INR18.27cr Loans in Not Cooperating SUBHKARAN AND SONS: CRISIL Keeps D Debt Rating in Not Cooperating SUYASH MOTORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating SWADESHI ALUMINIUM: CRISIL Keeps D Debt Rating in Not Cooperating TIRVANI RICE: CRISIL Keeps B on INR8cr Credit in Not Cooperating UNIJULES LIFE: CRISIL Keeps D Debt Ratings in Not Cooperating USHDEV ENGITECH: Ind-Ra Keeps BB Loan Rating in Non-Cooperating VAIJANATH INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating VISHWAKARMA SCALES: CRISIL Cuts Rating on INR5.5cr Loan to C I N D O N E S I A CIPUTRA DEVELOPMENT: Fitch Lowers LT IDR to B+, Outlook Stable SOECHI LINES: Fitch Puts 'B' on US$200MM 2023 Notes on Watch Neg. M A L A Y S I A AIRASIA: Unit's Debt Revamp Likely to be Known by June 30, 2021 S I N G A P O R E HONTOP ENERGY: Creditor's Meeting Scheduled for Dec. 10 S R I L A N K A SRILANKAN AIRLINES: Fitch Lowers USD175MM Unsec. Bonds to CCC - - - - - ================= A U S T R A L I A ================= ALTURA MINING: Pilbara Minerals to Buy Lithium Project for US$175MM ------------------------------------------------------------------- Esmarie Iannucci at miningweekly.com reports that Pilbara Minerals has entered into a share sale agreement with the administrators of fellow listed Altura Mining to gain ownership of Altura's Pilgangoora lithium project, in Western Australia, for $175-million. miningweekly.com relates that the ASX-listed Pilbara Minerals has also proposed a deed of company arrangement (DOCA) under which it would contribute AUD6-million to a DOCA fund, in support of entitlements owing to Altura employees who have been made redundant after the Pilgangoora project was placed on care and maintenance. Altura in October this year appointed voluntary administrators to conduct an urgent assessment of the company's financial position, with the intention of transitioning the lithium operations into care and maintenance in the coming weeks in order to preserve near-term cashflow, miningweekly.com says. Pilbara Minerals subsequently announced that it had entered into an implementation deed with the senior secured loan noteholders of Altura, providing a path to potentially acquire the Altura lithium project through the purchase of the shares in Altura Lithium Operations (ALO) for $175-million, subject to completion of the receivership process. According to the report, Pilbara said on Dec. 1 that the signing of the share sale agreement and the submission of the DOCA proposal followed a formal process by the receivers to market Altura's Pilgangoora project and the company's other assets for sale and recapitalization opportunities. Pilbara's acquisition of the project is subject to a number of conditions precedent, including creditors approving the DOCA proposal and completion after a proposed AUD240-million capital raise by Pilbara, which was announced to the market in late October, miningweekly.com notes. miningweekly.com says Pilbara Minerals will complete a AUD119-million cornerstone placement to AustralianSuper and will then launch a AUD121-million accelerated non-renounceable entitlement offer, which will be fully underwritten by Macquarie Capital. The equity raising will take place at a fixed price of 36c a share, representing an 11.4% discount to the five-day volume weighted average price of Pilbara shares prior to the announcement of a conditional agreement. Altura creditors are expected to meet on or before December 11 to vote on Pilbara's DOCA proposal, while the senior secured loan noteholders have agreed to vote in favour of the proposal, according to miningweekly.com. If the DOCA is not approved, Pilbara and the loan noteholders have agreed to proceed with Pilbara's acquisition of the Altura project by changing from a share sale agreement to an asset sale agreement with the receiver, miningweekly.com adds. About Altura Mining Altura Mining Limited (ASX:AJM) -- https://alturamining.com/ -- operates as a mining company. The Company explores and produces spodumene concentrate, as well as provides drilling, geophysical, and project development services. Altura Mining serves customers worldwide. Clifford Stuart Rocke and Jeremy Joseph Nipps of Cor Cordis were appointed as administrators of Altura Mining Limited and Altura Lithium Operations Pty Ltd on Oct. 26, 2020. DATAVERSE SOLUTIONS: First Creditors' Meeting Set for Dec. 15 ------------------------------------------------------------- A first meeting of the creditors in the proceedings of Dataverse Solutions Pty. Limited will be held on Dec. 15, 2020, at 11:00 a.m. at the offices of Amos Insolvency, 25/ 185 Airds Road, in Leumeah, NSW. Peter Andrew Amos of Amos Insolvency was appointed as administrator of Dataverse Solutions on Dec. 3, 2020. ESPLANADE BRIGHTON: First Creditors' Meeting Set for Dec. 11 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Esplanade Brighton Pty Ltd ATF Esplanade Brighton Trust will be held on Dec. 11, 2020, at 12:30 p.m. at the offices of Hamilton Murphy Advisory Pty Ltd, Level 1, 255 Mary Street, in Richmond, Victoria. Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy were appointed as administrators of Esplanade Brighton on Dec. 1, 2020. EWOS HOLDINGS: First Creditors' Meeting Set for Dec. 15 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Ewos Holdings Pty Ltd will be held on Dec. 15, 2020, at 11:00 a.m. via video conference only. Daniel O'Brien of DV Recovery Management was appointed as administrator of Ewos Holdings on Dec. 3, 2020. LASH HOPKINS: First Creditors' Meeting Set for Dec. 11 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Lash Hopkins Investments Pty Ltd will be held on Dec. 11, 2020, at 12:00 p.m. at the offices of Hamilton Murphy Advisory Pty Ltd, Level 1, 255 Mary Street, in Richmond, Victoria. Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy were appointed as administrators of Lash Hopkins on Dec. 1, 2020. LDJD INVESTMENTS: Second Creditors' Meeting Set for Dec. 10 ----------------------------------------------------------- A second meeting of creditors in the proceedings of LDJD Investments Pty Ltd, trading as "Commercial Hotel Bundarra", has been set for Dec. 10, 2020, at 10:00 a.m. via teleconference only. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Dec. 9, 2020, at 4:00 p.m. Desmond Teng and Gavin Moss of Chifley Advisory were appointed as administrators of LDJD Investments on Sept. 22, 2020. LIVING ROOM: ATO Voted to Liquidate Restaurants, Documents Reveal ----------------------------------------------------------------- ABC News reports that celebrity chef Jock Zonfrillo has voted to settle the debts of his failed Adelaide restaurants by paying major creditors between five and 10 cents in the dollar, against the wishes of the Australian Tax Office. Mr. Zonfrillo, a judge on popular TV show MasterChef, ran the acclaimed fine-dining restaurant Orana and attached eatery Blackwood Bistro on Rundle Street in Adelaide's CBD. He placed both businesses in voluntary administration in early October this year, the report notes. According to ABC News, people and businesses owed money by the eateries met on Nov. 27 to consider a deed of company arrangement (DOCA) that will see Mr. Zonfrillo pay AUD90,000 to settle the debts. The creditors of the failed businesses include Mr. Zonfrillo and his wife Lauren, and their companies. Together, the related entities are owed about AUD1.4 million, more than all of the other creditors combined, ABC News discloses. They were among a majority of creditors that voted to accept the deed, outvoting the Australian Tax Office (ATO) and the restaurants' landlord. Under the deed, the ATO will have to accept between about AUD14,000 and AUD20,000 to settle a claimed debt of about AUD203,000, ABC News relays citing minutes of the meeting lodged with corporate regulator ASIC. The East End landlord for both hospitality businesses claimed to be owed about AUD307,000 but will receive between about AUD20,000 and AUD30,000 under the deed. Both the ATO and the landlord asked the chairman of the meeting, administrator David Kidman, to note their opposition to the deed, ABC News says. Another creditor who voted against the deed was Stephen McCarthy, who claimed a debt for an unused gift voucher. He told the meeting he "would like to see the companies be put into liquidation and the director become bankrupt" rather than accept the settlement, the minutes, as cited by ABC News, said. The deed means the restaurant businesses will not be liquidated. According to ABC News, the meeting was told Mr. Zonfrillo had no substantial assets. ABC News relates that the administrator said liquidators were unlikely to bankrupt a company director "based on a claim . . . in circumstances where there are no funds available to do so." Mr. Kidman said both the eatery businesses became insolvent in November 2019 and Orana continued to trade until March this year. Former staff members from the East End eateries will be paid back in full. In an email on behalf of Mr. Zonfrillo, public relations adviser Andrew Knowles said: "He has no further comment, all details on the matter are available in the DOCA." The Living Room Bar operated the internationally acclaimed Rundle St restaurant Orana. TIGER RESOURCES: Second Creditors' Meeting Set for Dec. 9 --------------------------------------------------------- A second meeting of creditors in the proceedings of Tiger Resources Limited has been set for Dec. 9, 2020, at 10:30 a.m. via virtual meeting. 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. 8, 2020, at 5:00 p.m. Robert Michael Kirman and Robert Conry Brauer of McGrathNicol were appointed as administrators of Tiger Resources on Nov. 5, 2020. ========= C H I N A ========= CHINA EVERGRANDE: Unit's Shares Edge Marginally on HK Debut ----------------------------------------------------------- Reuters reports that shares of Evergrande Property Services fell marginally on their Hong Kong debut on Dec. 2, shedding initial gains as the spinoff of China's second-largest property developer struggled to shake off worries about debt and competition. Concerns about the financial health of its parent, China Evergrande Group, have clouded Hong Kong's third-largest listing of the year, with China's most indebted developer planning to use half the $1.8 billion raised for its own debt repayment, Reuters relates. "There are simply too many property management companies already listed," Reuters quotes Dickie Wong, executive director at Kingston Securities, as saying. "(The) mother company's net gearing ratio is simply very high." There have been 15 property service deals in Hong Kong this year, raising a total of $7.2 billion, compared with $1.67 billion in 2019 and $1.4 billion in 2018, Reuters discloses citing Refinitiv data. More recent listings in the sector have struggled, with KWG Living losing 23% and Shimao Services and First Service dropping 23% and 27%, respectively, on their first days of trade in October, Refinitiv data showed, Reuters relays. Bigger rival Sunac Services, however, gained 22% in its debut on Nov. 19. Investors' response to Evergrande Property Services' IPO last week was lukewarm with the stock pricing near the lower end of the HK$8.50 to HK$9.75 per share range, undermined by concerns about the high debt level of its parent, according to Reuters. Reuters relates that Thomas Kwok, head of equity business of CHIEF Securities, said the market is concerned about the parent company and the prospects of restructuring. Reuters says China Evergrande has been scrambling for cash as Beijing tackles what it considers excessive borrowing in the real estate development sector with planned new debt-ratio caps. In an attempt to improve cashflow, Evergrande, whose borrowings totalled $124 billion, has also recently sold secondary shares and agreed with strategic investors of a now-terminated Shenzhen backdoor listing to not demand repayment, Reuters adds. About China Evergrande 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: Corporate Bonds Heading for Another Year of Record Defaults ------------------------------------------------------------------ South China Morning Post reports that China's corporate bond market looks set to see a record in missed repayments this year, surpassing last year's CNY143.6 billion (US$21.8 billion) in defaults and heightening concerns about issuers' credibility and compliance. Bond defaults had already topped CNY104 billion between the start of this year and late November, the Post discloses citing Bloomberg data. Delinquencies on the mainland, the world's second-largest bond market, have exceeded CNY100 billion for three years running now. "Rising defaults were expected as economic fundamentals this year are not strong enough to support company growth due to the coronavirus outbreak," the Post quotes Wang Feng, chairman of Shanghai-based financial services company Ye Lang Capital, as saying. "Investors are increasingly concerned about issuers' misbehaviour and are urging regulators to tighten oversight on the market." Two defaults involving state-owned industrial juggernauts have raised eyebrows recently, the report notes. Last week, Hong Kong-listed Brilliance China Automotive Holdings, BMW's Chinese joint-venture partner, said its parent, Huachen Automotive Holding Group, was being investigated by the mainland Chinese securities regulator for the alleged breach of information disclosure rules after it failed to repay interest and principal on a CNY1 billion bond, according to the Post. The Post relates that the announcement followed an investigation in early November by the interbank bond market regulator into Yongcheng Coal & Electricity Holding Group and its three underwriting banks, Industrial Bank, China Everbright Bank and Zhongyuan Bank, for suspected irregularities. According to the Post, China has been conducting a market-based reform of its bond market since 2014. It was not until March the same year that the country reported its first default, when Shanghai Chaori Solar Energy Science & Technology failed to make an interest payment. Before that, the authorities had stepped in to bail out struggling corporate borrowers with cash injections or restructuring plans. And the number of defaults in China's bond market have been growing since. For instance, delinquencies in 2018 were valued at CNY122 billion, more than quadrupling the levels seen a year earlier, the Post relays. Officials at the People's Bank of China said Beijing will control the amount of bond defaults this year, using both legal and market means. According to the Post, the pandemic has prompted Beijing to support companies in the private sector by easing monetary policies, including loosening regulations on bond issuances. In August, it announced a plan to remove mandatory credit ratings for companies to help issuers sell debt on the country's stock exchanges. The latest in a series of market-based reforms by Beijing, the move is also aimed at pushing bond investors to develop their own risk-assessment capabilities in the US$13 trillion onshore market. But analysts said loosening regulations will result in irregularities that will hurt small investors, the report relays. "There remain lots of uncertainties in China's economic recovery, and there are chances that defaults will arise in the recovery process," the Post quotes Noelle Chiang, a senior investment strategist with AllianceBernstein, as saying. "Investors need to be cautious." The recent spike in bankruptcies among Chinese state-owned enterprises, however, is also being viewed as a positive sign in some quarters, the Post states. "This is a natural evolution of a bond market, and it actually shows the maturation and the sophistication of the Chinese fixed-income market generally," the report quotes Martin Dropkin, Fidelity's head of Asian fixed income, as saying. Fidelity is, in fact, recommending that investors add China government bonds, which provide significantly higher returns than bonds issued by every other major country, especially the United States, to their portfolios, the Post relays. "China government bonds, for investors looking for a bit of diversification, offer a good deal of that, and we think that will continue," Mr. Dropkin said. Facing an environment of sustained, historically low interest rates, investors will need to rethink how they structure their defensive portfolios, he said. There remains room for the addition of China government bonds in foreign portfolios. "The allocation of international investors to China government bonds, and broadly speaking, across the whole China fixed-income universe, still remains very low if we compare that to other major economies," Mr. Dropkin, as cited by Post, said. Foreign ownership rates of the bonds remain in the single-digits, he added, well below the 15 per cent to 20 per cent rate for other countries' bonds. Other Chinese fixed-income assets have also yet to be fully tapped by international investors, including its US$4 trillion corporate bond market, the Post relays. Although this market tends to be more opaque than what investors are accustomed to, it is showing signs of improvement, Mr. Dropkin said. "Management teams within China are just getting used to talking to investors like us, answering questions. Data flow is improving." SHANGRAO CITY CONSTRUCTION: Fitch Affirms BB+ LT IDRs ----------------------------------------------------- Fitch Ratings has affirmed Shangrao City Construction Investment Development Group Co., Ltd.'s (SCID) Long-Term Foreign-and Local-Currency Issuer Default Ratings at 'BB+' with a Stable Outlook. Concurrently, Fitch has affirmed the company's senior unsecured note rating at 'BB+'. SCID provides funding for public works, including land development, roads, bridges, public transportation, water treatment and underground pipe networks. These works are mandated by the local government and policy changes could affect the entity's core business. KEY RATING DRIVERS 'Strong' Status, Ownership and Control: SCID is directly owned by Shangrao Investment Holding Group and, ultimately, by the Shangrao State-owned Assets Supervision and Administration Commission - a government agency. The company's legal status indicates that the local government is not liable for its liabilities. The group is led by the parent and a number of subsidiaries carry out the group's activities. The board of directors retains responsibility for investment projects as well as operational and financial issues, with guidance from the local government. 'Strong' Support Record, Expectations: SCID receives consistent government subsidies in relation to its public works, including social housing and public transportation. The subsidies covered an average of 200% of SCID's interest expenses in the last five years. Part of the group's debt is overseen by the local government and has been swapped over time. The company's debt service burden is mitigated by capital contributions to its public works and contributions-in-kind that generate operating revenue, 'Moderate' Socio-Political Implications of Default: The municipality places infrastructure development and public services high on its socio-political agenda and SCID is one of the major GREs that executes these tasks. That said, the group's subsidiaries are self-sufficient and run their own activities without heavy reliance on the group. A default by SCID would disrupt the local economy, but would not necessarily significantly impair public services, as Shangrao Investment Holding Group and potential substitutes could step in to ensure ongoing operations. 'Very Strong' Financial Implications of Default: The group manages its treasury function risks for public works with regard to the local government's expectations, including managing financing for land development and infrastructure development projects. The group sources financing from various financial institutions, including capital markets, banks and loan facilities. This implies that the local government's borrowing capacity and financing options would be substantially limited should the group default. Standalone Credit Profile of 'b': Fitch assesses revenue defensibility and operating risk at 'Midrange', due to stable captive orders from the local government and the group's high exposure to public projects, which contributed 81% of total revenue in 2019. However, investment in public works weighed on SCID's leverage, which stood at 62x in 2019, and decreased its gross profit margin. Approximately a quarter of SCID's debt is due within 12 months and will require renegotiation or retendering, increasing refinancing risk. DERIVATION SUMMARY SCID's rating is derived from the four factors under Fitch's Government-Related Entities Rating Criteria, combined with a 'b' SCP under its Public Sector, Revenue-Supported Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: A revision in Fitch's perception of the sponsor's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would lead to a change in ratings. Positive rating action may arise from a revised assessment of the socio-political implications of a default, enhancing the sponsor's incentive to provide legitimate support. Factors that could, individually or collectively, lead to negative rating action/downgrade: A downgrade may result from a weakening of the socio-political or financial implications of a default, its assessment of the sponsor's support record or a dilution of the government's ownership. Any rating action on SCID's Long-Term Foreign-Currency Issuer Default Rating would result in similar rating action on the US-dollar senior unsecured bond. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= I N D I A ========= ACUBE KRAFT: CRISIL Reaffirms B Rating on INR4.9cr Loans -------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-term bank facilities of Acube Kraft Concepts Private Limited (AKCPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B/Stable (Reaffirmed) Term Loan 3.9 CRISIL B/Stable (Reaffirmed) The rating continues to reflect the company's modest scale of operations and working capital intensive nature of business. These weaknesses are partially offset by the extensive experience of the promoters in the home furnishings industry and established relationships with suppliers and customers. In fiscal 2021, the business was briefly impacted due to the Covid-19 pandemic; however, the company has seen a revival in orders and is expected to see an expansion in the topline over the previous fiscal with revenue of INR2.72 crore as of September 2020. Analytical Approach Unsecured loan of INR64.59 lakh as on March 31, 2020, from the promoters has been treated as debt. Key Rating Drivers & Detailed Description Weaknesses: * Nascent stage of operations: AKCPL commenced operations in September 2018, with fiscal 2020 being the first full year of operations. Improvement in scale of operations by acquiring new clients and improving capacity utilisation will remain a key monitorable. * Working capital intensive business: Operations remain working capital intensive because of high inventory maintained based on the long conversion periods. Gross current assets were at 323 days as on March 31, 2020, and are expected at 260-280 days over the medium term. Strength: * Extensive experience of the promoters: The promoters have experience of over 40 years in the home furnishings industry. This has given them an understanding of market dynamics and helped to establish relationships with suppliers and customers. Liquidity Stretched * High bank limit utilisation: Bank limit utilisation was 96.81% for the 12 months through September 2020. * Cash accrual sufficient to meet debt obligation: Cash accrual is expected at INR1.5-2 crore per fiscal against term debt obligation of INR0.6-0.8 crore over the medium term. In addition, it will cushion the liquidity of the company. * Moderate current ratio: Current ratio was moderate at 0.94 time as on March 31, 2020. Outlook: Stable CRISIL believes AKCPL will continue to benefit from the extensive experience of the promoters and established relationships with suppliers and customers. Rating Sensitivity factors Upward factors * Sustained improvement in scale of operation by 20-25% and sustenance of operating margin * Improvement in working capital cycle, leading to improvement in overall liquidity Downward factors * Decline in net cash accruals below INR1 crore on account of decline in operating profits. * Stretch in working capital cycle * Large debt-funded capital expenditure weakens capital structure Incorporated in 2016, AKCPL is promoted by Mr. Pramod Kumar Gupta, Mr. Ankur Prakash and Mr. Arpit Prakash. The company manufactures decorative handicrafts. It has a production facility in SEZ Moradabad. BISHNU FEED: CRISIL Keeps D on INR8.35cr Credit in Not Cooperating ------------------------------------------------------------------ CRISIL said the rating on bank facilities of Shree Bishnu Feed Industries (SBFI) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8.35 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SBFI 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 SBFI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SBFI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBFI continues to be 'CRISIL D Issuer Not Cooperating'. SBFI was established in 1995 as a proprietorship concern by Mr. Bharatji Prasad. The firm produces poultry feed, cattle feed, and hatched chicks. It also trades in maize grain and soya bean de-oiled cakes. Its manufacturing facility is in Howrah, West Bengal. DEWAN HOUSING: Lenders Vote In Favor of Inviting New Bids --------------------------------------------------------- CNBC-TV18 reports that lenders to bankrupt Dewan Housing Finance Limited (DHFL) have now officially re-opened bids for the troubled company, with the majority of the creditors' committee voting in favor of the resolution. The voting on the resolution to invite fresh bids from all four existing suitors in what will be the fourth round of bidding concluded at 7:00 p.m., Dec. 3. This comes after three suitors for DHFL - Piramal Group, Oaktree Capital, and SC Lowy protested against Adani Group's surprise offer. All four existing suitors - Adani Group, Piramal Group, Oaktree Capital and SC Lowy - will be asked to submit their final and best offer in the revised submission on or before December 14, as per two people in the know noted, CNBC-TV18 relays. If they do not submit a duly executed resolution plan by then, the creditors' committee will consider the resolution plan submitted by them in the last round on November 17 as their final resolution plan for evaluation, said one of the people quoted earlier. The four suitors will be allowed to bid under their preferred option, and not necessarily the same option as they chose initially, said one of the people quoted above, CNBC-TV18 relates. The lenders of DHFL had invited bids under four options - the entire book or one or more of (a) retail portfolio, (b) wholesale portfolio, and (c) slum rehabilitation book. According to CNBC-TV18, the committee of creditors (CoC) will meet and open all bids on December 14 once the deadline ends, and evaluate the options on the table, taking into consideration all bids received until then, said a person involved. This would be the final round of bidding, and no further extensions or revisions will be granted, as per two banking executives with exposure to DHFL. SC Lowy, which had made the lowest bid of about INR2,300 crores for the SRA book in the last round of bidding on November 17, is unlikely to participate in the new round, CNBC-TV18 had reported earlier. "They know they are the lowest and don't stand a chance. SC Lowy has also asked for their INR100 crores of earnest money deposit (EMD) back, but if they withdraw midway, they may not be legally entitled to it, so the CoC may allow them to either make a token bid or waive off the penalty," this person said. Piramal Group, which had made an offer of about INR26,500 crores for the retail book in the last round of bidding, may now submit a bid for the entire book, said people involved in the matter, according to CNBC-TV18. This is because the remaining suitors - Adani Group and Oaktree Capital - are both keen on the entire book, and Piramal Group is keen to stay in the race. CNBC-TV18 had earlier reported that in the last round of bidding, Oaktree had offered INR31,000 crores for the entire portfolio, Piramal Group INR26,500 crores for the retail book, SC Lowy INR2,300 crores for the SRA book, and Adani Group about INR2750 for the wholesale and SRA book, which it later revised to over INR31,000 crores for the entire book. This had prompted Piramal Group and other suitors to protest, and they also threatened to withdraw from the process altogether if lenders considered Adani Group's new offer, CNBC-TV8 had reported. About DHFL Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. As reported in the Troubled Company Reporter-Asia Pacific, Deccan Herald said the Mumbai bench of the National Company Law Tribunal (NCLT) on Dec. 2, 2019, admitted a petition by the Reserve Bank of India (RBI) seeking bankruptcy proceedings to resolve DHFL. The move came in after the Reserve Bank on Nov. 29, 2019, made an application for bankruptcy proceedings to resolve the credit and liquidity crisis at the company, which became the first financial sector player being sent for bankruptcy. RBI appointed R Subramaniah Kumar as the company's administrator. Financial creditors to DHFL have submitted claims worth INR86,892 crore against the mortgage lender, BloombergQuint disclosed. DIGNITY INNOVATION: Ind-Ra Keeps 'B+' LT Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Dignity Innovation's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR75 mil. Fund-based working capital limits maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; -- INR10 mil. Non-fund-based working capital limits maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating; -- INR65 mil. Proposed fund-based working capital limits is withdrawn*; and -- INR30 mil. Proposed non-fund-based working capital limits is withdrawn*. *The rating has been withdrawn since it was outstanding for over 180 days Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 9, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established as a partnership firm in 1994, Tamil Nadu-based Dignity Innovations manufactures readymade garments. DWARKADHISH UDYOG: CRISIL Keeps D on INR10cr Debt in NonCooperating ------------------------------------------------------------------- CRISIL said the rating on bank facilities of Shree Dwarkadhish Udyog Private Limited (SDUPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SDUPL 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 SDUPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SDUPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SDUPL continues to be 'CRISIL D Issuer Not Cooperating'. SDUPL is based in Ranchi (Jharkand) and was incorporated in 2012. The company trades in steel, cement, and other construction materials such as electrical items and sanitary ware. It started operations in July 2012. The company is promoted by Mr. Amit Sarawgi and Mr. Gyan Prakash Sarawgi, who have experience of more than 15 years in trading of steel and cement products. GAAP TUFF: CRISIL Assigns B+ Rating to INR10cr Loans ---------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Gaap Tuff Glass LLP (GTG). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 8 CRISIL B+/Stable (Assigned) Open Cash Credit 2 CRISIL B+/Stable (Assigned) The rating reflects GTG's modest scale of operations with exposure to risks related to the commoditised nature of float glass and intense industry competition and a below-average financial risk profile. These weaknesses are partially offset by the extensive industry experience of the partners. Analytical Approach Unsecured loan of INR1.87 crore as on March 31, 2020, from the partners have been treated as debt as these are interest bearing and may not be retained in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: GTG's business profile is constrained by its subdued scale in the intensely competitive float glass industry, which will continue to limit its operating flexibility. Operating income was INR4-12 crore in the three fiscals through 2020. * Exposure of risks related to the commoditised nature of float glass and to intense industry competition: The processing of float glass involves limited value addition and the main entry barrier to the glass processing industry is knowledge of glass handling to reduce breakage and wastage. With increasing demand for architectural glass in real estate and commercial projects and industrial glass in the automotive industry, competition in this segment is expected to increase, constraining the prospects for improving profitability over the medium term. Moreover, the key raw material, float glass, has volatile prices. The operating margin is likely to remain vulnerable to any volatility in the price of float glass and to competition over the medium term. However, a partially order-backed inventory provides some insulation against adverse changes in raw material prices. * Below-average financial risk profile: Financial risk profile is marked by a modest networth and high gearing of INR3.86 crore and 2.71 times as of March 31, 2020. Debt protection metrics are however adequate, as reflected in the interest coverage and net cash accrual to total debt ratios of 2.02 times and 0.11 times respectively in fiscal 2020 supported by healthy operating margin of over 20% Strength: * Extensive industry experience of the partners: The partners have experience of over ten years in the glass manufacturing industry. This has given them an understanding of the market dynamics and enabled them to establish strong relationships with suppliers and customers. Liquidity Stretched The bank limit was highly utilised at 96.59% for the 12 months through October 2020. Cash accrual is expected to be INR1.8-2.7 crore, which will be sufficient against term debt obligation of INR1.25 and INR1.5 crore in fiscals 2021 and 2022, respectively. The partners are likely to extend need-based support in the form of capital and unsecured loans to meet the firm's working capital requirement and capital expenditure. Outlook: Stable CRISIL believes GTG will continue to benefit from the extensive experience of its partners and established relationships with clients. Rating Sensitivity factors Upward factors * Sustained improvement in scale of operations by over 50% and stable operating margin, leading to higher net cash accrual * Improvement in the working capital cycle Downward factors: * Decline in operating profitability by over 5%, leading to net cash accrual lower than INR60-70 lakhs * Substantial increase in working capital requirement, weakening liquidity and financial profile * Any unanticipated large debt funded capital expenditure or capital withdrawal by partners impacting the financial risk profile Established in 2015, GTG is based in Vishakhapatnam, Andhra Pradesh. The firm is owned and managed by Mr. B. Praveen Kumar, Mr. Gangireddy, Mr. Ajay Ramkrishna and Mr. V Avinash. The firm manufactures toughened glass which is commonly used in buildings, houses, stairways, doorways, standard windows, sliding doors and floor level, among others. HANUMAN TRADING: CRISIL Keeps B on INR10cr Loans in Not Cooperating ------------------------------------------------------------------- CRISIL said the rating on bank facilities of Sri Hanuman Trading Company (SHTC) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Warehouse Receipts 10 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SHTC 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 SHTC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SHTC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SHTC continues to be 'CRISIL B/Stable Issuer Not Cooperating'. SHTC is a proprietorship concern set up in 2017 by Mr. Suramalla Anandarao in Vizianagaram, Andhra Pradesh. Its trades in jute, gunny bags, and cashew nuts. JAIKA AUTOMOBILES: CRISIL Cuts Rating on INR56.95cr Loan to D ------------------------------------------------------------- CRISIL has downgraded its rating on the long term bank facilities of Jaika Automobiles and Finance Private Limited (JAFPL) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 41 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Channel Financing 56.95 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Proposed Cash Credit Limit 52.03 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The rating downgrade reflects continuous overdues in the working capital facilities for over 30 days on account of weak liquidity The ratings continue to reflect weak financial risk profile and below-average debt protection metrics. These rating weaknesses are partially offset by extensive experience of the promoters and an established relationship with TATA Motors Ltd (TML). Key Rating Drivers & Detailed Description Weaknesses: * Delays in Servicing of Debt: Stretched liquidity has resulted in delays in servicing of debt, with overdues in the working capital facility for over 30 days. * Weak financial risk profile: The networth is estimated at INR34.6 crore while gearing & total outside liability to adjusted networth stood at 3.1 times & 3.23 times, respectively, as on March 31, 2020. The debt protection metrics is weak with interest cover estimated at 1.2 times in fiscal 2020 and net cash accrual to adjusted debt at 0.03 time for fiscal 2020. * Limited bargaining power with the principal, exposure to intense competition, and regional revenue concentration: Auto dealerships have limited bargaining power with the principals, as reflected in their modest operating margin. JAFPL is exposed to intense competition from dealers of other commercial vehicle manufacturers. Dealerships need to regularly refurbish their facilities and service centres, thus entailing additional expenditure. A majority of the company's revenue is derived from Chhattisgarh, thus exposing the company to regional concentration. Further the operations are susceptible to inherent cyclicality in the industry as evident from current industry slowdown affecting JAFPL. Strength: * Extensive industry experience of the promoters, and an established relationship with TML: The promoters have an experience of six decades in the automobile dealership sector. The promoters have multiple dealerships for automobile manufacturers such as Audi, Fiat, and Hyundai across Maharashtra and Chhattisgarh. Further JAFPL has been associated with principal TATA Motors Ltd. (rated 'CRISIL AA-/Negative/CRISIL A1+' for more than a decade. Liquidity Poor Liquidity is poor reflected in overdues in the working capital facilities, on the back of significant slowdown in sales and working capital elongation. Rating Sensitivity factors Upward factor * Track record of timely debt servicing for 90 days or more * Sustained improvement in scale of operation and sustenance of operating margin, leading to higher cash accruals. JAFPL, was incorporated in 1983 by the Kale family. The company is an authorised dealer for TML's entire range of commercial vehicles. JAFPL is based in Raipur (Chhattisgarh). It has nine showrooms and six workshops across Chhattisgarh. KAYNES TECHNOLOGY: CRISIL Migrates D Ratings to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Kaynes Technology India Private Limited (KTIPL) to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 2.69 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with KTIPL for obtaining information through letters and emails dated November 6, 2020 and November 11, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of KTIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on KTIPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of KTIPL to 'CRISIL D/CRISIL D Issuer not cooperating'. KTIPL was set up as a sole proprietorship of Mr. Ramesh Kanan in 1988, and reconstituted as a private limited company in 2008. The company is primarily engaged in turnkey manufacturing of printed circuit board (PCB) assemblies, and also offers end-to-end services for PCBs. It has seven manufacturing facilities, one design services facility, and two service centres. KAYVAL KRUPA: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained M/s. Kayval Krupa Petroleum's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital facilities (Long- term/short-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR17.5 mil. Fund-based working capital demand loan (Long- term/short-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR12.5 mil. Proposed fund-based working capital facilities (Long-term/short-term) is withdrawn*. *Since it was outstanding for more than 180 days Note: ISSUER NOT COOPERATING: The ratings were last reviewed on September 19, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE M/s. Kayval Krupa Petroleum is involved in the trading of petrol and diesel. M MADHAVARAYA: CRISIL Reaffirms B+ Rating on INR27cr Cash Loan -------------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-term bank facility of M Madhavaraya Prabhu (MMP). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 27 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the company's average financial risk profile because of average capital structure and susceptibility of profitability to volatility in raw material prices. These weaknesses are partially offset by extensive industry experience of the proprietor. Key Rating Drivers & Detailed Description Weaknesses: * Average Financial Risk Profile: Capital structure is average as reflected in high gearing of 1.74 times and modest Networth of INR18.78 crores as on March 31, 2020. The high gearing is mainly on account of high reliance on working capital debt. Debt protection metrics are average, marked by average interest coverage ratio and net cash accruals to adjusted debt (NCA/AD) ratio at 3.23 and 0.15 times. * Susceptibility of profitability to volatility in raw material prices: MMP's operating margin is constrained by the commodity nature of its products, and was low, at 0.4-4.2% in the four fiscals through 2020. The low margin limits the firm's ability to absorb unanticipated adverse price movements. Presence in a segment with limited value addition and negligible differentiation in products of different players also constrains the margin. Strength: * Extensive industry experience of proprietor, and established customer relationships: MMP's proprietor, Mr. Tukaram Prabhu, has experience of over 15 years in the cashew processing industry, which has helped the firm establish a strong distribution network and market its product in several states across India. It has also helped the firm survive adverse business conditions and build relationships with major customers and suppliers, resulting in consistent order flow and raw material supply at favorable prices. Liquidity Stretched Bank limit utilisation is high at around 97.99 percent for the past twelve months ended August, 2020. Cash accruals are expected to be over INR1.5 crores which are sufficient against minimum term debt obligation over the medium term. In addition, it will be act as cushion to the liquidity of the company. Current ratio is moderate at 1.14 times on March 31, 2020. Outlook: Stable CRISIL believes MMP will continue to benefit from its strong track record in the cashew industry. Rating Sensitivity factors Upward Factors: * Revenue growth of over 20% in fiscal 2021 and operating margins to over 4.5%, leading to improvement in cash accruals * Improvement in capital structure leading to improvement in financial risk profile Downward Factors: * Decline in revenue by 40% and deterioration in operating margins to 2% leading to weak accruals. * High debt funded capex MMP, a proprietorship firm set up in 1983, processes raw cashew nuts of various grades into cashew kernels. The firm also trades in raw cashew nuts and cashew kernels. Its processing unit is in Muduperar village in Dakshina Kannada, Karnataka, and has installed capacity of 30 tons per day. The firm is managed by Mr. Tukaram Prabhu. MAPLE RENEWABLE: Ind-Ra Affirms, Then Withdraws B- Term Loan Rating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has revised the Outlook on Maple Renewable Power Private Limited's (MRPPL) rupee term loan (RTL) to Stable from Negative while affirming the rating at 'IND B-' and has simultaneously withdrawn the rating. The detailed rating action is: -- INR 498.01 mil. (reduced from INR499.46 mil.) RTL* due on September 2025 affirmed, Outlook revised to Stable and withdrawn. *Affirmed at 'IND B-'; Outlook revised to Stable from Negative before being withdrawn The Outlook revision reflects creation of a debt service reserve (DSR) of INR26.1 million, the availability of liquidity amounting to INR7.64 million as of November 27, 2020 and MRPPL's stable performance during April-October 2020 compared to April-October 2019. Ind-Ra is no longer required to maintain the rating, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. KEY RATING DRIVERS Liquidity Indicator - Stretched: The company has a DSR, sufficient to meet around one and a half months of debt servicing in FY22. As per the management, only one lender has a stipulated debt service reserve account for two quarters of debt servicing. Although the company has been receiving payments from various third-party consumers with some delays, the outstanding receivables amounted to around INR152.37 million (debtor period of about 60 days) as of October 2020. The company does not have any working capital facility. MRPPL's average plant load factor for April-October 2020 was 24.66% (April-August 2019: 24.82%). There was a country-wide fall in wind plant load factor during July-August 2020. However, MRPPL witnessed some recovery in the same during September-October 2020. Wind power projects are highly susceptible to any deviation in the wind speed and pattern that could impair their debt servicing ability. The actual revenue for FY20 was almost 94.55% of Ind-Ra's projected revenue. MRPPL has been regular in debt servicing since August 2019 as per the lenders confirmation. The company had availed debt moratorium under Reserve Bank of India's COVID-19 relief package for March to August 2020. The rating continues to reflect the regulatory risk associated with group's captive business as any changes in Electricity Rules, 2005 notified by the Ministry of Power and/or the regulations notified by Tamil Nadu Electricity Regulatory Commission from time to time may directly impact the project cash flows. However, the rating remains supported by the presence of a medium-term power purchase agreement for the entire capacity with captive consumers, where power is directly sold to industries or commercial entities, and tariff will track the state's industrial tariff. Also, the presence of diversified off-takers for the group captive business partly reduces the receivable risk. COMPANY PROFILE MRPPL owns and operates a combined wind power capacity of 61.50MW across Tamil Nadu. N. S. ENGINEERING: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of N. S. Engineering Projects Private Limited (NSEPPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 39 CRISIL D (ISSUER NOT COOPERATING) Funded Interest 7.67 CRISIL D (ISSUER NOT Term Loan COOPERATING) Inland Guarantees 1 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 8 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 10.51 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 18.1 CRISIL D (ISSUER NOT COOPERATING) Working Capital 10.36 CRISIL D (ISSUER NOT Term Loan COOPERATING) CRISIL has been consistently following up with NSEPPL 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 NSEPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on NSEPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NSEPPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Incorporated in 2007, NSEPPL, promoted by Mr. Manoj Kumar Kedia and Mr. Anil Kumar Goel, has a steel fabrication and galvanizing plant located at Domjur (West Bengal) with a total installed capacity of 72000 metric tonne per annum (MTPA) for fabrication unit and 36000 MTPA for galvanization unit. N.S.K. BUILDERS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of N.S.K. Builders Private Limited (NBPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 27 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 15 CRISIL D (ISSUER NOT COOPERATING) Open Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with NBPL 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 NBPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on NBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NBPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Formed in 1996 as a partnership entity, and later incorporated as a private limited company in 2010, NBPL, promoted by Mr. NSK Kalairaja and Mr. NSK Karunairaja, undertakes large infrastructure projects such as roads and building construction. NATURAL HERBALS: CRISIL Cuts Rating on INR19.5cr Cash Loan to B --------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Natural Herbals and Seeds (NHS) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 19.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with NHS 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 NHS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on NHS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NHS Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. NHS, a partnership firm, was started in 2011 by Mr. Praveen Rastogi and his family members. Its manufacturing units are in Uttarakhand. It produces menthol products such as menthol crystals and flags. ONEWORLD CREATIONS: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Oneworld Creations Private Limited (OCPL; part of Oneworld group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 45 CRISIL D (ISSUER NOT COOPERATING) Proposed Cash 9 CRISIL D (ISSUER NOT Credit Limit COOPERATING) Proposed Long Term 35 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 16 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with OCPL 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 OCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on OCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OCPL continues to be 'CRISIL D Issuer Not Cooperating'. Promoted and managed by Mr. Urvil Jani and Mr. Manoj Khushalani, the Oneworld group trades in textile materials. It also sells ready-made garments, manufacturing of which is outsourced. Registered office is in Mumbai. OCPL, incorporated in April 2012, trades in ready-made garments. OIPL, ORPL, OS, UFPL, WF, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of different types of fabrics. ONEWORLD INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------------ CRISIL said the rating on bank facilities of Oneworld Industries Private Limited (OIPL; part of Oneworld group) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 140 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with OIPL 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 OIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on OIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OIPL continues to be 'CRISIL D Issuer Not Cooperating'. Promoted and managed by Mr. Urvil Jani and Mr. Manoj Khushalani, the Oneworld group trades in textile materials. It also sells ready-made garments, manufacturing of which is outsourced. Registered office is in Mumbai. OIPL, incorporated in May 2012, trades in fabric. WF, ORPL, OS, UFPL, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of different types of fabrics while OCPL is engaged in trading of ready-made garments. ONEWORLD RETAIL: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Oneworld Retail Private Limited (ORPL; part of the Oneworld group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 28.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 15 CRISIL D (ISSUER NOT COOPERATING) Term Loan 8.75 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ORPL 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 ORPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on ORPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ORPL continues to be 'CRISIL D Issuer Not Cooperating'. Promoted and managed by Mr. Urvil Jani and Mr. Manoj Khushalani, the Oneworld group trades in textile materials. It also sells ready-made garments, manufacturing of which is outsourced. Registered office is in Mumbai. ORPL, incorporated in May 2012, trades in ladies fabric. OS, OIPL, UFPL, WF, TIPL, MDC, WOT, ODS, and ZF are engaged in trading of different types of fabrics while OCPL is engaged in trading of readymade garments. ONEWORLD SOURCING: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Oneworld Sourcing (OS; part of Oneworld group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 66 CRISIL D (ISSUER NOT COOPERATING) Term Loan 12 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with OS 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 OS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on OS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OS continues to be 'CRISIL D Issuer Not Cooperating'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of OS, Oneworld Creations Private Limited (OCPL), Oneworld Industries Private Limited (OIPL), Oneworld Retail Private Limited (ORPL), Ultimo Fabrics Private Limited (UFPL), Worldstar Fabrics LLP (WF), Tissori India Fabrics Pvt Ltd (TIPL), Maison De Couture Pvt Ltd (MDC), Worsted Overseas Trading LLP (WOT), Oneworld Design Studio (ODS) and Zephyr Fabrics (ZF). This is because all these entities, together referred to as the Oneworld group, are in the same line of business and under a common management, and have operational synergies. Promoted and managed by Mr. Urvil Jani and Mr. Manoj Khushalani, the Oneworld group trades in textile materials. It also sells ready-made garments, manufacturing of which is outsourced. Registered office is in Mumbai. PLAZA COMPUTERS: CRISIL Keeps D on INR7cr Debt in Not Cooperating ----------------------------------------------------------------- CRISIL said the rating on bank facilities of Plaza Computers (PC) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 7 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PC 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 PC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on PC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PC continues to be 'CRISIL D Issuer not cooperating'. PC, set up in 1994-95 as a proprietorship firm by Mr. Sudeep Goel, manufactures and exports women's readymade garments and its facility is at Devli in New Delhi. Mr. Goel set up PCG in 2003. Its manufacturing facility is in Noida, Uttar Pradesh. PRAKASH INDUSTRIAL: CRISIL Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the rating on bank facilities of Prakash Industrial Infrastructure Private Limited (PIIPL) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 8.5 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with PIIPL 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 PIIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on PIIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PIIPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Set up in 1975 as a partnership firm, Prakash Constructions, and reconstituted as a private limited company in 2006, PIIPL is promoted by Mr. Dinesh Agrawal and undertakes civil construction, primarily for industrial projects, in the private sector. RAGHAV COTSPIN: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Raghav Cotspin Private Limited (RCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING) Term Loan 22 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RCPL 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 RCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on RCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RCPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2013, RCPL is promoted by the Gondal (Gujarat)-based Gajera family. The company is setting up a unit to spin cotton yarn of 30s count, which was expected to commence operations in April 2016. RAHIL COLD: CRISIL Reaffirms D Ratings on INR14.92cr LT Loan ------------------------------------------------------------ CRISIL has reaffirmed its rating on the long term bank facilities of Rahil Cold Storage LLP (RCS) at 'CRISIL D'. The rating continues to reflect delays in repayment of bank debt on account of stretched liquidity. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.25 CRISIL D (Reaffirmed) Long Term Loan 14.92 CRISIL D (Reaffirmed) Key Rating Drivers & Detailed Description Weakness * Delay in meeting term debt obligation: Due to stretched liquidity, the cash accruals remained insufficient to meet debt obligation, leading to delays in repayment of bank debt. Its cash credit facility is almost fully utilised. Strength * Extensive industry experience of the promoters: The promoters' experience of about a decade in agricultural industry should support business risk profile. Liquidity Poor The liquidity is stretched resulting in delays in debt servicing. The latest bank limit utilization stood almost full. Rating Sensitivity factors Upward factor * Track record of timely debt servicing for atleast over 90 days * Improvement in working capital cycle Set up in 2013, RCS is an Ahmedabad based partnership firm engaged in storage and trading of fruits and vegetables. RAJESHWARA HATCHERIES: CRISIL Cuts Rating on INR24cr Loan to B -------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Sri Rajeshwara Hatcheries Private Limited (Sri Rajeshwara; part of the Rajeshwara group) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 24 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Proposed Long Term 3.29 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') Term Loan 19.10 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with Sri Rajeshwara 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 SRHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SRHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRHPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of Rohini Minerals, Sri Rajeshwara Hatcheries Pvt Ltd (Sri Rajeshwara), and Sivika Foods Pvt Ltd (Sivika). The three companies, together referred to as the Rajeshwara group, have common promoters, are in the same business, and have operational linkages and fungible cash flow. The Rajeshwara group, set up in 1996 by Dr A Tirupathi Reddy and Dr G Ranjith Reddy, Sri Rajeshwara set up in 1996 rears broiler chicks. Rohini Minerals, set up in 1999, manufactures poultry feed. In 2014, the group acquired Sivika Foods, which is engaged in poultry farming in the layer segment. RUSHABH FLOUR: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Rushabh Flour Mills Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limit maintained in non- cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR30 mil. Proposed fund-based working capital limit is withdrawn*. *Since it was outstanding for over 180 days Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 9, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2007, Rushabh Flour Mills manufactures wheat products such as flour, semolina, and tandoori flour. The company undertakes purchases and sales through brokers. It sells finished products under the Royal Classics brand. S. S. WAREHOUSING: CRISIL Keeps B+ on INR6cr Debt in NonCooperating ------------------------------------------------------------------- CRISIL said the rating on bank facilities of S. S. Warehousing (SSW) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 6 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SSW 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 SSW, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SSW is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSW continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up in 2010 in Sirhind, Punjab, as a partnership firm by Mr. Gagandeep Singh, Mr. Sukhjit Singh, Ms Jatinder Kaur, and Ms Khuspreet Kaur, SSW has constructed a godown on an 8-acre land leased to the Punjab State Government. SIDDHESHWAR SAHAKARI: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Shree Siddheshwar Sahakari Sakhar Karkhana Limited (SSSSKL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 200 CRISIL D (ISSUER NOT COOPERATING) Rupee Term Loan 114.85 CRISIL D (ISSUER NOT COOPERATING) Sugar Pledge 25.15 CRISIL D (ISSUER NOT Cash Credit COOPERATING) CRISIL has been consistently following up with SSSSKL 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 SSSSKL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SSSSKL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSSSKL continues to be 'CRISIL D Issuer Not Cooperating'. SSSSKL, based in Solapur, Maharashtra was established in 1971 by Late Mr. Appasaheb Kadadi. The society is managed by Mr. Dharmraj Kadadi along with an elected board of directors. The society has its plant at Kumthe, Maharashtra with installed capacity of 7500 tonne crushing per day (TCD). Also, it has distillery with 20 kilolitre per day capacity. Furthermore, the society entered an agreement with Maharashtra State Electricity Distribution Company Ltd to set up and operate 38 mega-watt (MW) co-gen plant, which commenced commercial operations in sugar season of fiscal 2018. SRM POWER: CRISIL Keeps D on INR21.5cr Loans in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of SRM Power Private Limited (SPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 0.44 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 21.06 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SPPL 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 SPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPPL continues to be 'CRISIL D Issuer Not Cooperating'. SPPL, incorporated in 2004, is part of the Gilada group, promoted by Mr. Rajgopal Gilada. The company operates a 6 MW (2 x 3 MW) hydropower project in Chikmagalur, Karnataka. STAR AQUA: CRISIL Keeps D on INR18.27cr Loans in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Star Aqua International Private Limited (SAIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING) Long Term Loan 8.27 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SAIPL 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 SAIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SAIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAIPL continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2006 by Mr. Shaik Abdul Aziz, involved in end-to-end activities for shrimp exports from Nellore (Andhra Pradesh). SUBHKARAN AND SONS: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the rating on bank facilities of Subhkaran and Sons (SAS) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Letter of Credit 50 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SAS for obtaining information through letters and emails dated May 23, 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 SAS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SAS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAS continues to be 'CRISIL D Issuer not cooperating'. Incorporated in 1981 by Mr. Vinod Jatia and Mr. Prateek Jatia, SAS trades in iron and steel products such as hot- and cold-rolled coils, sheets, and plates, sponge iron lumps, and fines. SUYASH MOTORS: CRISIL Keeps B+ Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Suyash Motors (Unit of Patton Logistic Services Private Limited) (SM) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B+/Stable (ISSUER NOT COOPERATING) Electronic Dealer 7.0 CRISIL B+/Stable (ISSUER NOT Financing Scheme COOPERATING) (e-DFS) Term Loan 1.45 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SM 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 SM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. SM is a unit of PLSL, which was set up in 2005; SM began operating under PLSL in 2012. SM is an authorised dealer of TML's passenger vehicles and operates through a showroom and workshop in Varanasi and two sub outlets in Chandauli and Babatpur (all in Uttar Pradesh). The operations are managed by Mr. Sachin Talwar. SWADESHI ALUMINIUM: CRISIL Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the rating on bank facilities of Swadeshi Aluminium Company Private Limited (SACPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 23 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SACPL 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 SACPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SACPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SACPL continues to be 'CRISIL D Issuer Not Cooperating'. SACPL, based in Sonipat (Haryana), was established by Mr. Shyam Sunder Nagpal, Mr. Satpal Nagpal, Mr. Sanjay Nagpal, and Mr. Som Bhutani in 2000. It manufactures aluminium profiles used in the real estate sector. TIRVANI RICE: CRISIL Keeps B on INR8cr Credit in Not Cooperating ---------------------------------------------------------------- CRISIL said the rating on bank facilities of Tirvani Rice Industry (TRI) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with TRI 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 TRI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on TRI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TRI continues to be 'CRISIL B/Stable Issuer Not Cooperating'. TRI was set up in 1998 as a partnership firm by four friends - Charan Das, Gopal Aggarwal, Rahul Bansal and Din Dayal. The firm has a rice milling and sorting unit with capacity of 10 tons per day in Faridkot. In 2016, the firm has set up a new unit of rice bran oil extraction which has commenced operations in November 2016. UNIJULES LIFE: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Unijules Life Sciences Limited (Unijules) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 124.5 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 5.75 CRISIL D (ISSUER NOT COOPERATING) Letter of credit & 12.75 CRISIL D (ISSUER NOT Bank Guarantee COOPERATING) Term Loan 61.5 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Unijules for obtaining information through letters and emails dated May 30, 2020 and October 31, 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 Unijules, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on Unijules is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Unijules continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Unijules was established in 2006, when the business of H Jules & Company Ltd was transferred to it and when Unijules had also acquired all the assets of Universal Medicaments Pvt Ltd. Unijules, promoted by Mr. Faiz Vali, manufactures and markets herbal and allopathic drugs. USHDEV ENGITECH: Ind-Ra Keeps BB Loan Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Ushdev Engitech Limited's (UEL) rupee term loan in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR895.2 mil. Rupee term loan due on June 2022 maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on October 23, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE UEL operates wind power plants across Karnataka, Maharashtra, Tamil Nadu, Gujarat and Rajasthan with an aggregate capacity of 58.2MW. Ushdev Power Holdings Private Limited is UEL's holding company and is part the Ushdev Group with a presence in power, mining, trading and industrial sectors. VAIJANATH INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Shri Vaijanath Industries Private Limited (SVPL) continue to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.10 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 4.53 CRISIL D (ISSUER NOT COOPERATING) Rupee Term Loan 1.37 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SVPL for obtaining information through letters and emails dated April 18, 2020 and October 31, 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 SVPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes that rating action on SVPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SVPL continues to be 'CRISIL D Issuer not cooperating'. SVPL was incorporated in 2008 as a private limited company by Mr. Girish Huddar, Mr. Namdeo patil and Mr. Dayanand Shastri. The firm is engaged in the manufacturing of tractor & farm equipment primarily comprising gears. SVPL's manufacturing facility is located in Kolhapur, Maharashtra. VISHWAKARMA SCALES: CRISIL Cuts Rating on INR5.5cr Loan to C ------------------------------------------------------------ CRISIL has downgraded its rating on the long-term bank facilities of Vishwakarma Scales Pvt Ltd (VSPL) to 'CRISIL C' from 'CRISIL B+/Stable' and reaffirmed its 'CRISIL A4' rating on the short-term facility. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.5 CRISIL A4 (Reaffirmed) Cash Credit 3.0 CRISIL C (Downgraded from 'CRISIL B+/Stable') Proposed Long Term 5.5 CRISIL C (Downgraded from Bank Loan Facility 'CRISIL B+/Stable') The downgrade reflects deterioration of VSPL's business risk profile and liquidity on account of slump in scale of operations. The company has recorded revenue of only INR6.04 crore (estimated) in fiscal 2020, a Y-o-Y decline of 66% as against INR17.02 crore in fiscal 2019. The reason being failure to bid for tenders on regular and timely basis on account of inefficiencies in operations. Further, there has been a massive stretch in working capital requirement of the company as reflected in increase in gross current assets (GCAs) to 640 days (estimated) in FY20 from 300 days in FY19 and this has resulted in heavy reliance on bank lines as reflected in average utilization of 97.1% over the past 12 months through September 2020. CRISIL believes, going forward, the working capital requirement would continue to remain high due to the nature of business and thus absence of cushion in bank lines coupled with low networth, will put pressure on the debt repayment ability of VSPL over the medium term. The ratings continue to reflect the company's small scale of operations, large working capital requirement and weakening of financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters in the weighing systems industry. Analytical Approach Unsecured loan of INR0.70 crore as on March 31, 2020 from promoters has been treated as neither debt nor equity as these are non-interest bearing and are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Small scale of operations in highly fragmented industry: Revenue has always remained low at INR14-25 crore over the last four fiscals through 2019. It is estimated to slump to INR6.04 crore in fiscal 2020 on account of low tender execution. CRISIL believes the scale of operations is likely to remain constrained because of intense competition in the industry. * Large working capital requirement: Gross current assets (GCAs) were over 200 days over the three fiscals through 2019 as payment is received in phases. It is estimated to increase substantially to 640 days in fiscal 2020 (as against 300 days in fiscal 2019). The company receives credit of just 3-4 days for raw material procured from Steel Authority of India Ltd and Jindal Steel and Power Limited. Also, a major portion of the import is against advance payment. However, the company enjoys substantial credit from group entity and local players. Delay in receiving payment and large inventory should keep GCAs large over the medium term. * Weakening of financial risk profile: The financial risk profile has weakened significantly as reflected in estimated interest coverage and net cash accruals to total debt (NCATD) ratios of (2.21) times and (0.51) time, respectively, as on March 31, 2020. Total outside liabilities to tangible networth ratio is estimated to increase to 2.02 times (1.67 times as on March 31, 2019) as on March 31, 2020. Strength: * Extensive experience of the promoters and healthy customer relationships: The promoters' experience of around five decades and healthy relationships with reputed clients (L&T, Infrastructure Leasing & Financial Services Ltd, Sadbhav Engineering Ltd, Era Infra Engineering Ltd, and Gayatri Steels and Gammon India Ltd) should continue to support the business. Liquidity Poor Liquidity is poor as reflected in low expected annual cash accrual of INR0.13-0.30 crore against repayment obligation of INR0.20-0.50 crore per annum over the medium term. Moreover, fund-based bank limit of INR3 crore was utilized high at 97% on an average during the 12 months through September 2020. Current ratio is also estimated to be low at 1.29 times as on March 31, 2020. Rating Sensitivity factors Upward factors: * Improvement in the working capital cycle with GCAs declining below 200 days * Substantial increase in revenue and profitability * Improvement in financial risk profile and liquidity position Downward factors: * Further deterioration in liquidity resulting in inability to service debt obligation * Non-revival of revenue post the pandemic. * Further stretch in working capital cycle with GCAs rising over 600 days Incorporated in 2007 and based in Uttarakhand, VSPL manufactures and markets weighing systems from miniature scales to heavy highway weighbridges and highway traffic-management systems. Its plant in Roorkee can manufacture over 1,850 types of weighbridges annually. Mr. Avinash Chandra Dhiman, Ms Meenal Dhiman, and Mr. Pranav Dhiman are the promoters. ================= I N D O N E S I A ================= CIPUTRA DEVELOPMENT: Fitch Lowers LT IDR to B+, Outlook Stable -------------------------------------------------------------- Fitch Ratings has downgraded Indonesian homebuilder PT Ciputra Development Tbk's (CTRA) Long-Term Issuer Default Rating (IDR) to 'B+' from 'BB-'. The Outlook is Stable. Fitch has also downgraded CTRA's SGD150 million 4.85% senior unsecured notes due September 2021 to 'B+' with a Recovery Rating of 'RR4' from 'BB-'. At the same time, PT Fitch Ratings Indonesia has affirmed the National Long-Term Rating of CTRA's subsidiary, PT Ciputra Residence (CTRR), at 'A(idn)' and revised the Outlook to Stable from Negative. The downgrade of the Long-Term IDR reflects Fitch's view that CTRA's scale is no longer consistent with a 'BB-' rating. Fitch believes CTRA will not be able to increase its attributable pre-sales (including its share in jointly owned subsidiaries) to more than IDR5 trillion by 2022, the timeline Fitch had set to achieve the minimum level for a 'BB-' rating. Fitch first highlighted the scale risks in 2019 with the belief that CTRA would achieve more than IDR5 trillion in attributable pre-sales in 2020-2021. However, the coronavirus pandemic will delay recovery prospects to beyond 2022, in its view. Fitch expects demand for affordable homes to remain healthy in the next 12-18 months and drive modest pre-sales growth, but Fitch does not expect this alone to be sufficient to raise CTRA's pre-sales above the IDR5 trillion threshold, as demand from investors and upgraders, who typically buy more expensive homes and high-rise units, is likely to remain soft. The Stable Outlook on the ratings reflects CTRA's sufficient geographical and product diversity that has allowed the company to nimbly shift its pre-sales mix towards landed affordable homes - defined by Fitch as properties priced at or under IDR1.5 billion per unit - for which demand has held up well amid the current downturn, even as sales of high-rise and more expensive homes fell. Fitch expects CTRA to maintain annual attributable pre-sales at more than IDR4 trillion over the medium term. CTRR's National Long-Term Rating is based on the consolidated financial profile of its stronger parent, CTRA, given the strong linkages between the companies, as defined in Fitch's Parent and Subsidiary Linkage Rating Criteria. 'A' National Ratings denote expectations of a low level of default risk relative to other issuers or obligations in the same country or monetary union. KEY RATING DRIVERS Modest Recovery in Pre-Sales: Fitch expects CTRA to post attributable pre-sales of IDR4.3 trillion in 2021 and IDR4.9 trillion in 2022, from around IDR4 trillion forecast for 2020 and IDR4.4 trillion in 2019. However, its forecasts are subject to a high degree of uncertainty related to the path of the pandemic globally and in Indonesia. Fitch believes landed-home sales will account for a large majority in 2020 and 2021 (10M20: 73%; 2017-2019 average: 54%), and Fitch expects CTRA to maintain its focus on homes priced under IDR2 billion per unit targeting end-users rather than investors and upgraders. Weaker Non-Development Cash Flows: Fitch expects CTRA's non-development gross profit (before depreciation and amortisation) as a ratio to net interest expense to fall to around 1.0x in 2020, from 1.8x in 2019, as the company had to offer significant rebates to shopping mall tenants to combat the effects of social distancing on their sales, in line with market norms. Fitch expects non-development gross profit interest cover to recover modestly to 1.4x by 2023 due to its belief the health crisis will remain largely unaddressed until after 2021, and international travel - a key driver of CTRA's hotel earnings - will only improve meaningfully in 2022. On the other hand, CTRA's hospitals recovered well in 3Q20 with revenue from coronavirus-related services rising rapidly to offset lower revenue from traditional elective procedures, a trend Fitch expects will continue in the next 12-18 months. Limited Near-Term Foreign-Ownership Impact: Fitch does not expect Indonesia's relaxation of rules to allow foreigners to own high-rise properties to have a meaningful impact on CTRA's pre-sales in the next one-to-two years, as long as the health crisis remains largely unaddressed and international business travel has not normalised. However, over the longer term, the changes, if the regulations are implemented without ambiguity, may help raise sales for the sector. CTRA has over 200,000 sq m in sellable mixed-development area in Greater Jakarta, which would be attractive to foreign property investors. Strong Financial Profile: Fitch expects CTRA to maintain homebuilder leverage, defined as net debt/adjusted inventory, of around 30% over the next few years (2020 forecast: 28%; 2019: 27%). Fitch believes its cash flow from operations will remain neutral over the medium term, supported by faster cash collections and more flexible construction costs on landed homes, which will largely cover CTRA's land purchase outlay. Free cash flow (FCF)/gross debt may weaken to around -9% to -10% in 2020-2021 as CTRA completes investment-property construction, and drop to low-single digits thereafter as Fitch expects the company to slow its capex as it re-assesses demand for commercial properties and hotels in the current environment. Large Land Bank, Minority Interests: CTRA had around 2,341 hectares in land bank at end-3Q20, with a sizeable presence in the main urban areas of Greater Jakarta and Greater Surabaya. The land bank supports over 15 years of development, a key competitive advantage. The group also develops projects with land owners on a profit- or revenue-sharing basis, expanding its operational scale while limiting the balance-sheet burden. Fitch expects CTRA to provide support to joint ventures based on its shareholding due to the reputational risk. Fitch has proportionately consolidated the key financials of major subsidiaries when computing CTRA's financial metrics. Parent-Subsidiary Linkage: CTRA and its subsidiaries have strong operational and strategic linkages from common shareholders and board members. CTRR is considered strategically important as it owns most of CTRA's Jakarta land bank, accounting for 23% of 2019 consolidated revenue. CTRA and its subsidiaries have moderate legal linkages from a cross-default provision in CTRA's SGD150 million cross-border unsecured notes. Fitch believes there is reputational risk to CTRA from the subsidiaries' use of the "Ciputra" brand. Fitch therefore treats the group as a single operating entity. DERIVATION SUMMARY CTRA's IDR can be compared with that of PT Bumi Serpong Damai Tbk (BSD, BB-/Stable), while CTRR's National Long-Term Rating can be compared with that of PT Kawasan Industri Jababeka Tbk (KIJA, B-/BBB-(idn)/Stable) and PT Buana Lintas Lautan Tbk (BULL, A-(idn)/Negative). BSD is rated one-notch higher than CTRA to reflect its larger pre-sales scale as Fitch expects BSD to maintain attributable pre-sales of more than IDR5 trillion over the medium term, notwithstanding the current economic downturn, compared with IDR4 trillion-5 trillion for CTRA. BSD also has a significantly larger land bank than CTRA, and higher EBITDA margins of around 45% over the next few years, which supports stronger CFFO generation, compared with around 30% EBITDA margins for CTRA. BSD also has a larger portfolio of non-development EBITDA-generating shopping malls, offices and hotels, which Fitch expects will cover its interest costs by an average 1.2x over the next four years, compared with around 0.9x for CTRA, which provides BSD with more financial flexibility during economic downturns. KIJA's IDR and National Long-Term Rating are multiple notches below CTRA's IDR and CTRR's National Long-Term Rating to reflect its smaller operating scale as Fitch expects attributable pre-sales to hover under IDR1 trillion in the next two years. Around half of KIJA's pre-sales stem from the sale of industrial land, which is more volatile during economic downturns, and the company's pre-sales are concentrated in its two main townships, compared with CTRR's significantly greater geographical and product diversity. CTRR's financial profile is also stronger than that of KIJA as Fitch expects leverage to hover around 30% in the next few years, compared with around 50% for KIJA. BULL's National Long-Term Rating of 'A-(idn)' with a Negative Outlook is lower than CTRR's rating to reflect its increased cash-flow volatility on account of a rising mix of spot-rate charter revenue on the back of its recent aggressive fleet expansion. Fitch also believes CTRA has a stronger liquidity position, with cash on hand net of next 12 months' FCF sufficient to cover next 12 months' debt maturities, whereas BULL may have to rely on lenders rolling over some of its current term-loan maturities, which is subject to the value of its fleet remaining steady and providing sufficient collateral cover. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Attributable pre-sales of IDR4.3 trillion in 2021 and IDR4.9 trillion in 2022 - Annual land banking expenses of around IDR400 billion-600 billion from 2020-2024 - Capex of around IDR500 billion in 2020, reducing to less than IDR200 billion in 2021 Key Recovery Rating Assumptions - The recovery analysis assumes CTRA will be liquidated in a bankruptcy rather than continue as a going concern because it is an asset-trading company - To estimate liquidation value, Fitch assumes a 75% advance rate against the value of accounts receivable and a 50% advance rate against inventory, investment properties and other plant, property and equipment. Fitch believes the company's reported land-bank value, which is based on historical land cost, is at a significant discount to current market value - as reflected in gross profit margins of around 50% on average on property sales, and, thus, is already conservative. - Fitch assumes that CTRA's approximately IDR8 trillion in secured bank loans outstanding as of 30 September 2020 will rank prior to its SGD150 million senior unsecured notes in a liquidation - Fitch has deducted 10% of the resulting liquidation value for administrative claims - The estimates result in a recovery rate corresponding to an 'RR1' Recovery Rating for CTRA's senior unsecured notes. Nevertheless, Fitch has rated the senior notes at 'B+' with a Recovery Rating of 'RR4' because, under Fitch's Country-Specific Treatment of Recovery Ratings Rating Criteria, Indonesia falls into 'Group D' of creditor friendliness. Instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Annual attributable pre-sales sustained above IDR5 trillion Factors that could, individually or collectively, lead to negative rating action/downgrade: - Annual attributable pre-sales sustained below IDR3.5 trillion - Net debt/adjusted inventory sustained above 45%, as long as non-development gross profit excluding depreciation and amortisation/net interest cover is sustained at or above 1.0x - Weakening in overall legal and operational ties between the parent and the operating subsidiaries LIQUIDITY AND DEBT STRUCTURE Comfortable Liquidity: CTRA had IDR4.4 trillion in cash on hand as of September 30, 2020, which, net of Fitch's estimate of an aggregate FCF deficit of around IDR1 trillion starting 4Q20 through to end-2021, is sufficient to cover maturing term loans and bonds of around IDR3 trillion. The company has a record of maintaining more diversified fund sources compared with domestic peers, with a ratio of cross-border debt to domestic bank debt of 20:80 as of 30 September 2020. This mitigates refinancing risk, in Fitch's view, in the event cross-border debt markets tighten. The company has minority shareholders in several key subsidiaries, but Fitch estimates that more than 90% of CTRA's cash and equivalents are in wholly owned subsidiaries, which therefore supports sufficient cash fungibility. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. SOECHI LINES: Fitch Puts 'B' on US$200MM 2023 Notes on Watch Neg. ----------------------------------------------------------------- Fitch Ratings has placed the rating on the US dollar notes guaranteed by Indonesia-based tanker operator PT Soechi Lines Tbk (Soechi) on Rating Watch Negative, after Soechi said it launched a cash tender offer to buy back a portion of the notes using proceeds from a secured loan facility. Simultaneously, Fitch has affirmed Soechi's Long-Term Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. The USD200 million 8.375% senior unsecured notes due 2023 are rated 'B' with Recovery Rating of 'RR4'. The notes are issued by Soechi's wholly owned subsidiary Soechi Capital Pte. Ltd., and guaranteed by Soechi and all its operating subsidiaries. Under the terms of the tender, Soechi will offer 70 cents per dollar of the notes, which are trading at around 60 cents. Soechi is planning to use USD100 million from a new secured term loan facility to buy back the notes. The tender offer is accompanied by a consent solicitation process to amend certain restrictive covenants on the US dollar notes, primarily aimed to allow drawdown of secured debt to buy back the notes. The new loan facility requires at least USD100 million of notes to be repurchased in order for the loan to be disbursed. The new loan facility will also provide USD77 million to Soechi to refinance its syndicated loan maturity in 2021, which is independent of the tender and consent solicitation process. The RWN on the US dollar notes reflects the likelihood of below-average recoveries (less than 31%) and notching-down of the bond rating if Soechi replaces the majority of the unsecured notes with proceeds from the new secured loan in its capital structure. Fitch does not consider the cash tender offer as a distressed debt exchange (DDE). Fitch does not think that the transaction is being conducted to avoid bankruptcy or a payment default, a condition for it to be termed a DDE under Fitch's criteria. The new loan facility will allow Soechi to address its 2021 maturities, irrespective of the result of the tender process. The next major maturity is in January 2023 for the US dollar notes and Fitch believes management will take steps, such as seeking refinancing over the next 12-18 months, to address it. A healthy shipping business profile characterised by protection from foreign competition and steady demand from key customer PT Pertamina (Persero) (BBB/Stable) gives Soechi revenue visibility and should support the company's refinancing efforts. KEY RATING DRIVERS Strong Shipping Business Fundamentals: Soechi's fleet capacity under time-charter contracts was sustained at a high level of 98% at end-June 2020 (end-September 2019: 97%). The average duration of the time-charter contracts, weighted by capacity, was less than 2 years, but contracts are often renewed. Soechi is the one of the largest independent tanker operators in a fragmented domestic shipping industry with many small players. Industry participants enjoy protection from foreign competition through cabotage laws for domestic transportation - which mandate the use of Indonesia-flagged vessels and limit foreign ownership to 49% in joint ventures - and domestic tanker demand is likely to continue growing over the longer term driven by increasing fuel consumption. These market characteristics also result in relatively stable day-rates. Shipyard Remains a Drag: Soechi has invested around USD200 million in its shipyard, which began operations in 2012. Weak newbuilding order flow and construction delays have affected shipyard performance and Fitch estimates that the shipyard incurred an EBITDA loss of around USD2 million in 2019. Revenue fell by 61% to USD3 million in 9M20 and Fitch expects the EBITDA loss to widen this year. The shipyard has only one shipbuilding order worth less than USD3 million scheduled to be delivered in 2021. Fitch has assumed more shipbuilding orders from 2021, likely to be granted by the government, and a gradual increase in ship-repair revenue. However, the shipyard may continue to be unprofitable for the next two to three years without substantial revenue growth. Old Fleet, Small Size: The average age of Soechi's fleet (weighted by capacity) is around 20 years, against a typical useful ship life of 30 years. The company's fleet age matches its strategy of operating older ships, which is the norm in Indonesia's market. However, older vessels usually earn shorter time-charter contracts than more recently constructed vessels, are generally more costly to maintain and are subject to lower utilisation rates due to more maintenance required and more operational issues. Soechi's fleet of 31 ships as of September 2020 is also small relative to global peers. Customer Concentration, but Low Risk: Pertamina and its shipping subsidiary are Soechi's largest customers and accounted for 71% of revenue in 9M20. This exposes Soechi to the risk of Pertamina not renewing or granting contracts, or defaulting on its payments. However, Fitch believes these risks are significantly alleviated by Soechi's longstanding relationship with Pertamina (Soechi's predecessor companies have been contracted by Pertamina since 1981), Pertamina's robust credit profile, and Soechi's strong market position and capex policy, which is tied to the likelihood of new contracts. Higher Leverage, Negative FCF Likely: Soechi has not acquired any vessels in 2020 and is focused on using free cash flow (FCF) to increase its cash balance and cut net debt. The proposed tender offer, if successful, will allow the company to reduce outstanding debt and Fitch estimates its 2020 FFO-adjusted net leverage ratio could fall to around 3.5x (2019: 4.4x). However, Fitch expects Soechi to resume fleet growth from 2021 after three years of contraction, which is likely to result in negative FCF and push leverage up to 4x. If the tender offer fails, Fitch estimates Soechi's leverage at around 4x in 2020-21. Parent-Subsidiary Linkage Assessment: Fitch assesses overall linkages between Soechi and its parent PT Soechi Group (PT SG), which holds a 79.9% stake, as weak based on weak legal and moderate operational ties. Fitch therefore assesses Soechi based on its standalone credit profile. Fitch assesses the parent, which has a much smaller shipping fleet and EBITDA than Soechi, to have a weaker credit profile. There are no guarantees from Soechi to PT SG or cross-default clauses covering debt at the parent. There are no loans to the parent, and dividends and related-party transactions are relatively small. There are also some checks on related-party transactions under the local listing regulations and the US dollar bond indenture. Potential Rating Constraint: Soechi's rating may be affected if PT SG's standalone credit profile deteriorates significantly, as Soechi's rating will be constrained to two notches above the consolidated credit profile, including PT SG, as per Fitch's criteria. DERIVATION SUMMARY Soechi's rating can be compared with PT Buana Lintas Lautan Tbk (BULL, B+/Negative), which is a very close peer focusing on oil transportation business in Indonesia. BULL had a fleet of 33 ships as of end-1H20, with an average age (weighted by capacity) of around 17 years. BULL's fleet capacity with exposure to spot rates was around 25% as of end-1H20 and Pertamina is the largest customer. Soechi's fleet size is now smaller than BULL's, and Fitch estimates its leverage to also be weaker in 2020 compared with BULL's FFO adjusted net leverage of around 3x. Soechi can also be compared with PAO Sovcomflot (BB+/Stable), whose rating benefits from a one-notch uplift from its standalone credit profile of 'bb' due to strong support from the Russian government (BBB/Stable). Sovcomflot is one of the global leaders in maritime transportation of hydrocarbons and in servicing of offshore exploration and oil and gas majors. The company owns and operates 140 vessels, which are fairly young with an average age of 11 years. Its customer base is diversified and consists of large international and Russian oil and gas companies. In addition to a significantly stronger business profile, Sovcomflot's FFO adjusted net leverage of 3.8x in 2019 was lower than Soechi's. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Soechi's deadweight tonnage to increase at a CAGR of 6% over 2021-2023 - Tanker day rates to stay flat over 2021-2023 - Average EBITDA margin for shipping segment of 51% over 2021-2023 (2020E: 55%) - Average annual revenue from shipyard of USD8 million over 2021-2023 (2020E: USD7 million), EBITDA loss to narrow to USD4 million in 2021 from USD7 million in 2020 - Average annual capex, including upfront docking charges, of around USD70 million over 2021-2023 (2020E: USD15 million) The recovery analysis assumes that Soechi would be liquidated in case of bankruptcy. Fitch has also assumed a 10% administration claim. Liquidation Approach - Its liquidation value of around USD275 million is lower than its previous assessment of around USD300 million and includes its estimate of recoveries from Soechi's current assets related to working capital and fixed assets related to the shipyard, in addition to its shipping fleet. The overall liquidation value is broadly in line with the extrapolated appraisal value of the fleet, based on the latest appraised value of USD208 million for selected ships contributing 73% of the fleet capacity as of end-June 2020. - Soechi had secured bank loans of USD131 million as of June 30, 2020. It also had USD200 million of senior unsecured notes. Fitch has also considered the scenario in which the tender offer is successful and Soechi draws down USD100 million of secured loans to buy back USD140 million of unsecured notes. In that case, pro-forma numbers for secured debt as of end-June 2020 will be USD231 million and USD60 million for unsecured notes. - The waterfall for actual debt as of end-June 2020 results in a recovery of over 50% for the note holders. However, the senior unsecured bonds are rated 'B' with a Recovery Rating of 'RR4' because, under its Country-Specific Treatment of Recovery Ratings Criteria, Indonesia falls into Group D of countries based on creditor friendliness, and the instrument ratings of issuers with assets located in this group of countries are subject to a soft cap at the issuer's IDR and Recovery Ratings are capped at 'RR4'. - In case the tender offer is successful and secured debt is used to buy back a portion of the unsecured notes, the waterfall could result in a recovery of below 31% for the note holders, corresponding to a Recovery Rating of 'RR5'. The US dollar notes will be notched down by one notch in such a scenario. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade on the IDR: - FFO adjusted net leverage below 3.8x on a sustained basis - FFO fixed-charge cover remaining above 3x - No material deterioration of the operating environment Factors that could, individually or collectively, lead to negative rating action/downgrade on the IDR: - Weakening of the liquidity position or a substantial deterioration of the operating environment - FFO adjusted net leverage above 4.8x on a sustained basis - FFO fixed-charge cover below 2x on a sustained basis The leverage sensitivity has been tightened based on the updated rating navigator for shipping companies. The RWN on the bond rating will be resolved based on a recovery analysis following a conclusion of Soechi's tender offer. A one-notch downgrade is likely if the majority of the US dollar notes are bought back using secured debt. Alternatively, the rating may be affirmed at 'B' with a Recovery Rating of 'RR4' if the tender offer is unsuccessful. LIQUIDITY AND DEBT STRUCTURE Manageable Liquidity, Some Risk: Soechi had total debt of USD326 million as of end-September 2020, compared with cash (included cash reported as restricted) of USD57 million. Of the total debt, USD89 million is due in 2021 and USD77 million of the repayments are due under a syndicated loan facility. Soechi's new term loan facility will allow it to address the syndicated loan facility repayments. If the proposed tender offer is successful and Soechi draws additional debt under the new term loan facility to buy back the US dollar bonds, Fitch thinks the company will be able to address its debt maturities over the next three years. Its estimates assume no discretionary capex and include the remaining portion of the bonds. Fitch thinks residual risk related to refinancing, should operating performance be weaker than expected or if Soechi uses its cash for fleet growth, is limited. Soechi will need to address the lumpy bond maturity in January 2023 if the tender offer is unsuccessful, although its liquidity should be sufficient in the interim. While risks remain, Fitch expects the company to be able to find a way to address the bond maturity in the next 12-18 months. Improvement in Soechi's FCF profile from a potential cut in its discretionary capex and revenue visibility due to a high share of time-charter contracts should support its efforts. SUMMARY OF FINANCIAL ADJUSTMENTS Material Non-Standard Financial Statement Adjustments include: - Cash kept as collateral for loan facilities and for US dollar bonds' interest reserve account, but reported as "restricted", has been classified as readily available as it is usable for debt servicing (2019: USD17.5 million). - Docking expenses, which are amortised after incurrence, have been added back to EBITDA (2019: USD7.1 million). Cash expense for docking has been deducted from capex and added to operating cash flow (2019: USD5.6 million). - "Unbilled revenues" and "estimated earnings in excess of billings on contracts" have been included in working capital - given their conceptual similarity to trade receivables. Advances and prepaid expenses have also been included in working capital. However, interest-related accrued expenses have been excluded from working capital. - Unamortised debt transaction costs have been added back to debt (2019: USD4.2 million). REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Soechi has an ESG Relevance Score of 4 for Management Strategy. The company made a large investment in its shipyard business but earnings generation has been significantly weaker than its and management's expectations. This indicates some weakness in management strategy development and implementation, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Further aggressive growth spending remains a risk to Soechi's credit profile. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. =============== M A L A Y S I A =============== AIRASIA: Unit's Debt Revamp Likely to be Known by June 30, 2021 --------------------------------------------------------------- theedgemarkets.com reports that AirAsia X Bhd expects the outcome of its ongoing scheme of arrangement under its debt restructuring exercise to inject fresh equity will only be known by the end of June next year. theedgemarkets.com relates that the long-haul budget airline said this when announcing to Bursa Malaysia on Dec. 2 that it was changing its financial year-end to June 30, 2021, from Dec. 31, 2020. According to the report, AirAsia X said the outcome would not be known by this month so the basis of preparation of its audited financial statements and audit opinion (AFS) was uncertain and the AFS would be of limited value to shareholders. "By June 30, 2021, the outcome of the scheme is likely to be known, so that there will be a clear basis for the preparation of the AFS, which will be of more value to shareholders," the cash-starved airline said. On Oct. 6, AirAsia X proposed a restructuring plan that would enable the airline to be fully operational again amid global travel restrictions caused by the Covid-19 pandemic, the report recalls. theedgemarkets.com says the restructuring exercise would include the appointment of Datuk Lim Kian Onn as deputy chairman to lead the restructuring initiative and facilitating fresh equity injection. 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. ================= S I N G A P O R E ================= HONTOP ENERGY: Creditor's Meeting Scheduled for Dec. 10 ------------------------------------------------------- Manifold Times reports that a notice in the Government Gazette was published by the Judicial Managers of Hontop Energy Pte Ltd on Dec. 2, 2020, regarding a meeting of creditors. A creditor's meeting will be held via electronic means on Dec. 10, 2020, at 10:30 a.m. Manifold Times says the purpose of the meeting is (1) to update on the status of Judicial Management; (2) to consider and if thought fit, appoint a committee of creditors; and (3) any other business. In order to be entitled to a vote in the meeting, all creditor's proxy and proof (if not already submitted earlier) must be lodged with the Judicial Managers not later than 4:00 p.m. on Dec. 9, 2020. The Judicial Managers can be reached at: Lin Yueh Hung Oon Su Sun c/o RSM Corporate Advisory Pte Ltd 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 Hontop Energy (Singapore) Pte Ltd, a unit of China Wanda Group, buys crude oil for the group's 100,000 barrels per day refinery in Dongying, Shandong province, operated by Tianhong Chemicals Co Ltd. The Singapore High Court on Sept. 7, 2020, placed Hontop Energy was placed under judicial management. The application was filed by CIMB Bank Singapore on June 15, 2020 as the bank looked to recover US$105 million from Hontop and accused the company of fraudulent conduct. ================= S R I L A N K A ================= SRILANKAN AIRLINES: Fitch Lowers USD175MM Unsec. Bonds to CCC ------------------------------------------------------------- Fitch Ratings has downgraded the rating on SriLankan Airlines Limited's (SLA) USD175 million government-guaranteed 7% unsecured bonds due June 25, 2024 to 'CCC', from 'B-'. KEY RATING DRIVERS The rating action follows the downgrade of Sri Lanka's Long-Term Foreign- and Local-Currency Issuer Default Ratings to 'CCC', from 'B-'. The national carrier's bonds are rated at the same level as its parent, the state of Sri Lanka, due to the unconditional and irrevocable guarantee provided by the state. The Sri Lankan government held 99.5% of SLA at end-2019 through direct and indirect holdings. DERIVATION SUMMARY Fitch has rated SLA's US dollar bonds at the same level as the sovereign due to the unconditional and irrevocable guarantee provided by the government. The rating is not derived from the issuer's Standalone Credit Profile and thus is not comparable with that of industry peers. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - An upgrade of the sovereign rating Factors that could, individually or collectively, lead to negative rating action/downgrade: - A downgrade of the sovereign rating For the sovereign rating of Sri Lanka, the following sensitivities were outlined by Fitch in its Rating Action Commentary of November 27, 2020 The main factors that could, individually or collectively, lead to positive rating action/upgrade are: External Finances: Improvement in external finances, supported by higher non-debt inflows or a reduction in external sovereign refinancing risks from an improved liability profile. Public Finances: Stronger public finances, accompanied by a sustained decline in the general government debt to GDP ratio, closer to the 'B' median, underpinned by a credible medium-term fiscal consolidation strategy Structural: Improved policy coherence and credibility, leading to more sustainable public and external finances and a reduction in the risk of debt distress The main factors that could, individually or collectively, lead to negative rating action/downgrade: Increased signs of a probable default event, for instance from severe external liquidity stress, potentially reflected in an ongoing erosion of foreign exchange reserves and reduced capacity of the government to access external financing. CRITERIA VARIATION The rating on SLA's bonds is derived from the rating of an entity covered by a group that does not assign Recovery Ratings. As a result, no Recovery Rating was assigned to SLA's bond. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS SLA's bonds are rated at the same level as SLA's parent, the government of Sri Lanka, due to the unconditional and irrevocable guarantee provided by the government. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ********* 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 ***