/raid1/www/Hosts/bankrupt/TCRAP_Public/201211.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 11, 2020, Vol. 23, No. 248
Headlines
A U S T R A L I A
APEX ENERGY: Second Creditors' Meeting Set for Dec. 17
BENTLEIGH FRONT: Second Creditors' Meeting Set for Dec. 18
DLP MANAGEMENT: Second Creditors' Meeting Set for Dec. 18
FUJIAN XINGXING: Second Creditors' Meeting Set for Dec. 17
FUZORTINN PTY: Second Creditors' Meeting Set for Dec. 17
INSCOPE GROUP: Second Creditors' Meeting Set for Dec. 18
PROPERTY DISPLAY: Second Creditors' Meeting Set for Dec. 17
SPEEDCAST INT'L: Centerbridge Accused of Buying Votes
SPEEDCAST INT'L: To Seek Plan Confirmation Dec. 17
VIRGIN AUSTRALIA: S&P Withdraws 'D' Issuer Credit Rating
XBLADES SPORTS: Second Creditors' Meeting Set for Dec. 17
B A N G L A D E S H
BANGLADESH: ADB OKs $50MM to Help Microenterprises Amid Pandemic
[*] BANGLADESH: Garment Makers Call for Another Rescue Package
C H I N A
HNA GROUP: Platinum Equity to Buy Ingram Micro for US$7.2 Billion
IDEANOMICS INC: Regains Compliance With Nasdaq Bid Price
TSINGHUA UNIGROUP: Debt Risk Widens with Dollar Bond Defaults
I N D I A
A-1 COLD: CARE Lowers Rating on INR5.55cr LT Loan to C
AISIRI AGRO: CARE Lowers Rating on INR16cr LT Loan to C
AXIS BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
BAJAJ SINDHUDURG: CRISIL Reaffirms B- Rating on INR5.35cr Loan
BAJLA MOTORS: CARE Lowers Rating on INR11.75cr LT Loan to C
BALAJI RAW: CARE Keeps D on INR20cr Loans in Not Cooperating
BHARATI BIO: CARE Keeps D on INR6cr Loans in Not Cooperating
DURGA AUTOMOTIVES: CARE Cuts Rating on INR19.40cr LT Loan to C
EMPERIA REALTY: CARE Moves D on INR13cr Loans to Not Cooperating
GANESH TIMBER: CARE Lowers Rating on INR2cr LT Loan to C
GOPISH PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
HARSO STEELS: CARE Keeps D Debt Ratings in Not Cooperating
ICICI BANK: Fitch Affirms 'BB+' LT IDR, Outlook Negative
INDO ENTERPRISES: CARE Reaffirms D Rating on INR15.96cr Loan
ISWARYA TEXTILES: Ind-Ra Assigns 'BB-' LongTerm Issuer Rating
J K INTERNATIONAL: CARE Cuts Rating on INR9.37cr LT Loan to D
LAKSHMI SARASWATHI: CRISIL Withdraws B- Rating on INR5cr Loan
LAXMI TIMBERS: CRISIL Keeps D Debt Ratings in Not Cooperating
ONEWORLD INDUSTRIES: CRISIL Keeps D Debt Rating in Not Cooperating
ONEWORLD RETAIL: CRISIL Keeps D Debt Ratings in Not Cooperating
P C GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
PRAKASAM HEAVY: CRISIL Keeps D on INR27cr Loans in Not Cooperating
RAGHAV COTSPIN: CRISIL Keeps D on INR30cr Loans in Not Cooperating
RAJASTHAN FASTENERS: CRISIL Keeps D Ratings in Not Cooperating
RASANDIK AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
RATHNA STORES: CRISIL Keeps D Debt Ratings in Not Cooperating
REDDIES TEXTILE: CARE Keeps D on INR30cr Loans in Not Cooperating
REGENCY LINX: CRISIL Keeps D Debt Ratings in Not Cooperating
RELIANCE CAPITAL: Defaults on Loans to HDFC, Axis Bank
ROJER MATHEW: CRISIL Keeps D on INR19cr Loans in Not Cooperating
ROMEGA FOAM: CRISIL Keeps D Debt Ratings in Not Cooperating
RUDRANEE INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
SANKAR COTTON: CRISIL Keeps D on INR13cr Credit in Not Cooperating
SARALA FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SCAN ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating
SHAPE ENGINEERING: CARE Cuts Rating on INR10.50cr LT Loan to C
SHIVAM AUTOTECH: CARE Lowers Rating on INR431.74cr Loan to D
SHREENIDHI METALS: CARE Keeps D on INR6cr Loans in Not Cooperating
SONI SOYA: CARE Lowers Rating on INR12cr Loan to D
SOUTHERN AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
SOUTHERN HEALTH: CRISIL Keeps B+ on INR20cr Loans in NonCooperating
SRISURYA KNIT: CRISIL Keeps D Debt Ratings in Not Cooperating
SUDALAGUNTA SUGARS: CRISIL Keeps D Ratings in Not Cooperating
SUPER INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
SURAJ INDUSTRIES: CRISIL Keeps B+ on INR6cr Debt in Not Cooperating
TALREJA TEXTILE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
TORO PROCESSORS: CARE Keeps D Debt Ratings in Not Cooperating
UMMED EDUCATIONAL: Ind-Ra Lowers Term Loan Rating to 'D'
VENKATESWARA & COMPANY: CRISIL Keeps B Ratings in Not Cooperating
VHV BEVERAGES: CARE Keeps D on INR16cr Loans in Not Cooperating
VIDEOCON INDUSTRIES: Creditors to Decide on Promoter's Offer
J A P A N
FURUKAWA ELECTRIC: Egan-Jones Cuts Senior Unsecured Ratings to BB+
KOBE STEEL: Egan-Jones Lowers Senior Unsecured Ratings to B-
MAZDA MOTOR: Egan-Jones Lowers Senior Unsecured Ratings to BB+
SAPPORO HOLDINGS: Egan-Jones Cuts Senior Unsecured Ratings to BB+
N E W Z E A L A N D
MARAC INSURANCE: Fitch Withdraws BB+ Insurer Fin. Strength Rating
VIJAY HOLDINGS: Investors Asked for Cash to Prevent Mortgagee Sale
S O U T H K O R E A
HANJIN INTERNATIONAL: S&P Affirms 'CCC+' ICR, Outlook Negative
X X X X X X X X
[*] Developing Asia to Contract 0.4% in 2020, Grow by 6.8% in 2021
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A U S T R A L I A
=================
APEX ENERGY: Second Creditors' Meeting Set for Dec. 17
------------------------------------------------------
A second meeting of creditors in the proceedings of Apex Energy N L
has been set for Dec. 17, 2020, at 11:00 a.m. at the offices of
David Clout & Associates, Level 3, 26 Wharf Street, in Brisbane,
Queensland.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 16, 2020, at 4:00 p.m.
David Lewis Clout of David Clout & Associates was appointed as
administrator of Apex Energy on
Nov. 24, 2020.
BENTLEIGH FRONT: Second Creditors' Meeting Set for Dec. 18
----------------------------------------------------------
A second meeting of creditors in the proceedings of Bentleigh Front
and Centre Hospitality Company Pty. Ltd has been set for Dec. 18,
2020, at 10:00 a.m. via virtual means only.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 17, 2020, at 5:00 p.m.
Nicholas Giasoumi and Shane Leslie Deane of Dye & Co. Pty Ltd were
appointed as administrators of Bentleigh Front on Nov. 27, 2020.
DLP MANAGEMENT: Second Creditors' Meeting Set for Dec. 18
---------------------------------------------------------
A second meeting of creditors in the proceedings of DLP Management
Pty Ltd, trading as "Signex Group" and "Prologica Digital Print",
has been set for Dec. 18, 2020, at 11:00 a.m. at the offices of
Hamilton Murphy Advisory Pty Ltd, Level 1, 255 Mary Street, in
Richmond, Victoria.
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. 17, 2020, at 4:00 p.m.
Stephen Robert Dixon and Leigh William Dudman of Hamilton Murphy
were appointed as administrators of DLP Management on Nov. 18,
2020.
FUJIAN XINGXING: Second Creditors' Meeting Set for Dec. 17
----------------------------------------------------------
A second meeting of creditors in the proceedings of Fujian Xingxing
Restaurant Pty. Ltd has been set for Dec. 17, 2020, at 11:00 a.m.
via Zoom Meeting 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. 16, 2020, at 4:00 p.m.
Daniel Obrien of DV Recovery Management was appointed as
administrator of Fujian Xingxing on
Nov. 17, 2020.
FUZORTINN PTY: Second Creditors' Meeting Set for Dec. 17
--------------------------------------------------------
A second meeting of creditors in the proceedings of Fuzortinn Pty
Ltd has been set for Dec. 17, 2020, at 9:30 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. 16, 2020, at 5:00 p.m.
Anthony Elkerton of DW Advisory was appointed as administrator of
Fuzortinn Pty on Nov. 16, 2020.
INSCOPE GROUP: Second Creditors' Meeting Set for Dec. 18
--------------------------------------------------------
A second meeting of creditors in the proceedings of Inscope Group
Pty Ltd has been set for Dec. 18, 2020, at 11:00 a.m. via online
video conference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Dec. 17, 2020, at 4:00 p.m.
Erwin Rommel Alfonso and Michael John Morris Smith of Smith &
Hancock were appointed as administrators of Inscope Group on Nov.
24, 2020.
PROPERTY DISPLAY: Second Creditors' Meeting Set for Dec. 17
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Property
Display Pty Ltd, trading as iVisual, has been set for Dec. 17,
2020, at 11:00 a.m. via Zoom 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. 16, 2020, at 4:00 p.m.
Scott Turner of Joubert Rubinstein was appointed as administrator
of Bentleigh Front on Nov. 12, 2020.
SPEEDCAST INT'L: Centerbridge Accused of Buying Votes
-----------------------------------------------------
Steven Church of Bloomberg News reports that Centerbridge is
accused of a vote-buying plot in SpeedCast's bankruptcy case. A
rival hedge fund says Centerbridge Partners is improperly trying to
buy creditor votes as part of a scheme to take over bankrupt
satellite services provider SpeedCast International. SpeedCast
President Joe Spytek sent a text message to company Chief Executive
Peter Shaper in August 2020 saying Centerbridge had a "plan to buy
the votes" of key creditors, according to a copy of the message
displayed during a bankruptcy court hearing held on Monday, Dec. 7,
2020. A lawyer for Centerbridge said the message was being
misconstrued and simply referred to the normal give and take of
negotiations.
About SpeedCast International
Headquartered in New South Wales, Australia, SpeedCast
International Limited and its affiliates provide remote and
offshore satellite communications and information technology
services. SpeedCast's fully-managed service is delivered to more
than 2,000 customers in 140 countries via a global, multi-access
technology, multi-band, and multi-orbit network of more than 80
satellites and an interconnecting global terrestrial network,
bolstered by on-the-ground local upport from more than 40
countries. Speedcast services customers in sectors such as
commercial maritime, cruise, energy, mining, government, NGOs,
enterprise, and media.
SpeedCast International and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-32243) on April 23, 2020. At the time of the filing, the Debtors
each had estimated assets of between $500 million and $1 billion
and liabilities of the same range.
Judge David R. Jones oversees the cases.
Speedcast is advised by Weil, Gotshal & Manges LLP as global legal
counsel and Herbert Smith Freehills as co-counsel. Michael Healy of
FTI Consulting, Inc. is Speedcast's Chief Restructuring Officer,
and FTI Consulting, Inc. is Speedcast's financial and operational
advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC
are Speedcast's investment bankers. KCC is Speedcast's claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee to represent
unsecured creditors in Debtors' bankruptcy cases. The committee is
represented by Hogan Lovells US, LLP.
On August 13, 2020, the Debtor received a $395 million equity
commitment from Centerbridge Partners, L.P. and its affiliates, one
of its largest lenders.
SPEEDCAST INT'L: To Seek Plan Confirmation Dec. 17
--------------------------------------------------
SpeedCast International Limited, et al., won conditional approval
of the Disclosure Statement explaining their Amended Joint Chapter
11 Plan of Reorganization.
The Court establish these dates and deadlines in connection with
confirmation of the Plan:
* The cure notice deadline will be on November 16, 2020.
* The deadline for all Plan Sponsor proposals to be submitted
will be on November 16, 2020.
* The rule 3018(a) motion deadline will be on November 18,
2020.
* The deadline for Debtors to notify prospective Plan Sponsors
of their status as Qualified Plan Sponsors will be on
November 20, 2020, at 12:00 p.m. (prevailing Central Time).
* The final selection process date will be on November 23,
2020.
The Deadline for Debtors to file with the Bankruptcy Court the
notice of designation of Plan * Sponsor will be on Nov. 25, 2020,
at 4:00 p.m. (prevailing Central Time).
* The Plan Supplement filing deadline will be on Dec. 1, 2020.
* The Plan voting deadline/ objection deadline will be on
Dec. 8, 2020.
* The deadline to file confirmation brief and reply to Plan
objection(s) will be on Dec. 14, 2020.
* The combined hearing to consider confirmation of the Plan
and final approval of the Disclosure Statement will be on
Dec. 17, 2020, at 9:00 a.m. (prevailing Central Time).
The Chapter 11 Plan
SpeedCast International Limited, et al., on Oct. 31, 2020,
submitted a Disclosure Statement for their First Amended Plan.
The Plan provides for a comprehensive restructuring of the Debtors'
balance sheet and corporate organizational structure and a
significant investment of capital in the Debtors' business. The
transactions contemplated in the Plan will strengthen the Company
by substantially reducing its debt and increasing its cash flow on
a go-forward basis, and preserving approximately 900 jobs.
Specifically, the proposed restructuring contemplates, among other
things:
* A complete discharge of the Company's debt under the Syndicated
Facility Agreement in the amount of approximately $633.9 million;
* A Plan Sponsor Selection Process that will run simultaneously
with the solicitation of the Plan, with the goal of securing
potentially higher recoveries for the Debtors' creditors;
* A $500 million equity investment provided by the Plan Sponsor
in cash (or such greater amount as may be determined pursuant to
the Plan Sponsor Selection Process);
* A $150 million recovery to holders of Allowed Syndicated
Facility Secured Claims in cash (or such greater recovery as may be
determined pursuant to the Plan Sponsor Selection Process);
* A $25 million recovery to holders of Unsecured Trade Claims in
cash; and
* Establishment of a Litigation Trust for the benefit of Other
Unsecured Claims.
A full-text copy of the Order dated October 31, 2020, is available
at https://tinyurl.com/y49hb384 PacerMonitor.com at no charge.
A full-text copy of the Disclosure Statement dated October 31,
2020, is available at https://tinyurl.com/y49wgmlg from
PacerMonitor.com at no charge.
Counsel for the Debtors:
Alfredo R. Pérez
Brenda L. Funk
Stephanie N. Morrison
WEIL, GOTSHAL & MANGES LLP
700 Louisiana Street, Suite 1700
Houston, Texas 77002
Telephone: (713) 546-5000
Facsimile: (713) 224-9511
Gary T. Holtzer
David N. Griffiths
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
Telephone: (212) 310-8000
Facsimile: (212) 310-8007
About SpeedCast International
Headquartered in New South Wales, Australia, SpeedCast
International Limited and its affiliates provide remote and
offshore satellite communications and information technology
services. SpeedCast's fully-managed service is delivered to more
than 2,000 customers in 140 countries via a global, multi-access
technology, multi-band, and multi-orbit network of more than 80
satellites and an interconnecting global terrestrial network,
bolstered by on-the-ground local upport from more than 40
countries. Speedcast services customers in sectors such as
commercial maritime, cruise, energy, mining, government, NGOs,
enterprise, and media.
SpeedCast International and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No.
20-32243) on April 23, 2020. At the time of the filing, the Debtors
each had estimated assets of between $500 million and $1 billion
and liabilities of the same range.
Judge David R. Jones oversees the cases.
Speedcast is advised by Weil, Gotshal & Manges LLP as global legal
counsel and Herbert Smith Freehills as co-counsel. Michael Healy of
FTI Consulting, Inc. is Speedcast's Chief Restructuring Officer,
and FTI Consulting, Inc. is Speedcast's financial and operational
advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC
are Speedcast's investment bankers. KCC is Speedcast's claims and
noticing agent.
The Office of the U.S. Trustee appointed a committee to represent
unsecured creditors in Debtors' bankruptcy cases. The committee is
represented by Hogan Lovells US, LLP.
On August 13, 2020, the Debtor received a $395 million equity
commitment from Centerbridge Partners, L.P. and its affiliates, one
of its largest lenders.
VIRGIN AUSTRALIA: S&P Withdraws 'D' Issuer Credit Rating
--------------------------------------------------------
S&P Global Ratings withdrew its 'D' issuer credit rating on
Australia-based airline Virgin Australia Holdings Ltd. at the
issuer's request. S&P said, "We also withdrew our 'D' issue ratings
on the company's unsecured notes. We had lowered our ratings on the
issuer and the ratings on the airline's senior unsecured notes to
'D' on April 30, 2020, after the company and certain affiliates
filed petitions pursuant to Chapter 15 of the Bankruptcy Code in
the U.S. with regard to the company's voluntary administration
proceedings in Australia."
XBLADES SPORTS: Second Creditors' Meeting Set for Dec. 17
---------------------------------------------------------
A second meeting of creditors in the proceedings of XBlades Sports
Australia Pty Ltd has been set for Dec. 17, 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. 16, 2020, at 4:00 p.m.
Simon John Cathro and Ivan Glavas of Worrells Solvency & Forensic
Accountants were appointed as administrators of XBlades Sports on
Oct. 22, 2020.
===================
B A N G L A D E S H
===================
BANGLADESH: ADB OKs $50MM to Help Microenterprises Amid Pandemic
----------------------------------------------------------------
The Asian Development Bank (ADB) has approved a $50 million loan to
help restore the economic activities of microenterprises in
Bangladesh, which have been severely affected by the coronavirus
disease (COVID-19) pandemic.
The loan will scale up the ongoing Microenterprise Development
Project, approved by ADB in 2018 to provide a $50 million credit
line to Palli Karma Sahayak Foundation (PKSF), a government
development finance and capacity building organization. Under the
ongoing project, the PKSF, through its 77 partner organizations,
has so far provided loans to 39,580 microenterprises, generating
91,430 jobs in rural areas.
"This additional financing will supplement the ongoing project by
injecting liquidity in the rural economy by providing cheaper
financing to microenterprises, helping them continue their business
and retain their employees, especially women entrepreneurs who have
been heavily hit by the pandemic," said ADB Principal Country
Specialist for Bangladesh Jyotsana Varma. "The project will
increase access to financing from microfinance institutions and
further contribute to the growth of microenterprises in the
country."
The new credit line to the PKSF will provide loans to at least an
additional 30,000 microenterprises affected by COVID-19, 70% of
which are women-led. The project will strengthen the capacity of
120 partner microfinance institutions in microenterprise lending,
such as credit appraisal, pricing, and financial and portfolio
management and monitoring. It will expand the application of the
pilot mobile-based microenterprise financing application to an
additional 10,000 borrowers, which facilitates loan applications,
disbursement, and collection. The project will identify three
additional microenterprise products for expansion and support
microenterprise cluster development.
[*] BANGLADESH: Garment Makers Call for Another Rescue Package
--------------------------------------------------------------
Dhaka Tribune reports that the Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) on Dec. 7 sought yet another stimulus
package to mitigate the economic onslaught of the second wave of
the pandemic on the apparel makers.
"The garment sector is the driver of the economy as it employs
millions. So to save the industry from collapse and to protect
workers, we request the government to provide policy support
including a new package," the report quotes BGMEA President Rubana
Huq as saying in a virtual press conference.
Dhaka Tribune relates that the trade body also requested for a
deadline extension of two to five years, with a one-year grace
period, for repaying the initial BDT5,000 crore stimulus the
government had announced for export-oriented industries to pay
workers' wages earlier this year.
From the stimulus package, the apparel manufacturers have so far
taken BDT10,500 crore to pay their wages.
"We are facing the second wave of Covid-19 and the exports are
going through a negative trend."
Amid the pandemic, the prices of apparel goods fell by 5.23 per
cent in September in the global market and 4.15 per cent in the US,
she said, Dhaka Tribune discloses.
In October, the prices of clothing products exported from
Bangladesh saw 4.15 per cent and 4.92 per cent in November, while
the buyers are placing 30 per cent fewer work orders.
"This means that a factory has to run with 70 per cent capacity."
In the given context, the apparel industry is in trouble and needs
immediate comprehensive steps to avoid untoward incidents for the
sake of the industry and also workers' livelihoods, Huq said.
According to Dhaka Tribune, Bangladesh's exports to major countries
declined significantly in October.
In the US, it declined 8 per cent, to Germany by 10 per cent, Spain
6 per cent, France 15 per cent, Italy 30 per cent and Japan 28 per
cent, according to the BGMEA, Dhaka Tribune discloses.
With the government's immediate farsighted policy support, the
apparel makers were able to face the first wave of the pandemic
effectively, Ms., as cited by Dhaka Tribune, said.
"But the upcoming second wave pose grave threats."
As the demands for goods are falling in the global markets and
buyers not placing enough work orders, it is impossible to repay
the loan instalments taken under the stimulus package, she said.
"We have a huge opportunity in the days to come and I hope the
public health crisis will not prolong after June," Dhaka Tribune
quotes Ms. Hug as saying.
Exports earnings from the apparel sector, which accounts for more
than 84 per cent of the receipts, declined about 1.5 per cent to
$12.9 billion in the first five months of the fiscal year, the
report discloses.
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C H I N A
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HNA GROUP: Platinum Equity to Buy Ingram Micro for US$7.2 Billion
-----------------------------------------------------------------
Reuters reports that U.S. private equity firm Platinum Equity said
on Dec. 9 it would buy electronics distributor Ingram Micro Inc
from a unit of Chinese aviation and shipping conglomerate HNA Group
in a $7.2 billion deal.
Reuters says the deal comes as the once high-flying HNA Group,
which owns the Hainan Airlines, sheds assets under a restructuring
program to resolve liquidity risks stemming from years of
aggressive acquisitions abroad.
In September, the cash-strapped group's chairman was barred from
taking flights and high-speed trains and going on vacations due to
its failure to pay a court-ordered $5,300 in a lawsuit, Reuters
recalls.
HNA acquired Ingram, which distributes products ranging from Apple
Inc's iPhones to Cisco's network equipment, in 2016 in a $6 billion
deal, Reuters notes.
The sale will help HNA Technology, a listed arm of the group, to
repay the principal and interest on M&A loans and related debt, as
well as to reduce expenses and ease liquidity pressure, the unit
said in a regulatory filing with the Shanghai Stock Exchange,
Reuters relays.
Reuters adds that the deal will not cause any changes in the equity
structure of HNA Technology, or any changes in its ownership, it
added.
Chief Executive Officer Alain Monie will continue to lead Ingram
after the sale, which is expected to be completed by the first half
of 2021, Platinum said.
Morgan Stanley and Goldman Sachs are financial advisers to Platinum
Equity, while J.P. Morgan is advising Ingram, Reuters discloses.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
17, 2018, HNA Group defaulted on a CNY300 million (US$44 million)
loan raised through Hunan Trust. The company is already under
strict supervision by a group of bank creditors, led by China
Development Bank, following a liquidity crunch in the final quarter
of 2017. The default came despite an estimated $18 billion in asset
sales by HNA in 2018 that have done little to address its ability
to meet its domestic debts.
IDEANOMICS INC: Regains Compliance With Nasdaq Bid Price
--------------------------------------------------------
Ideanomics, Inc. received a letter from the Listing Qualifications
Staff of The NASDAQ Stock Market LLC on Dec. 3, 2020, indicating
that the Company has regained compliance with the minimum bid price
requirement under Nasdaq Listing Rule 5550(a)(2).
About Ideanomics
Headquartered in New York, NY, with offices in Beijing and Qingdao,
China, Ideanomics is a global company focused on facilitating the
adoption of commercial electric vehicles and developing next
generation financial services and Fintech products. Its electric
vehicle division, Mobile Energy Global (MEG) provides group
purchasing discounts on commercial electric vehicles, EV batteries
and electricity as well as financing and charging solutions.
Ideanomics Capital includes DBOT ATS and Intelligenta which provide
innovative financial services solutions powered by AI and
blockchain. MEG and Ideanomics Capital provide its global customers
and partners with better efficiencies and technologies and greater
access to global markets.
Ideanomics reported a net loss of $96.83 million for the year ended
Dec. 31, 2019, compared to a net loss of $28.42 million for the
year ended Dec. 31, 2018. As of Sept. 30, 2020, the Company had
$138.46 million in total assets, $49.33 million in total
liabilities, $1.26 million in convertible redeemable preferred
stock, $7.37 million in redeemable non-controlling interest, and
$80.50 million in total equity.
B F Borgers CPA PC, in Lakewood, Colorado, the Company's auditor
since 2018, issued a "going concern" qualification in its report
dated March 16, 2020, citing that the Company incurred recurring
losses from operations, has net current liabilities and an
accumulated deficit that raise substantial doubt about its ability
to continue as a going concern.
TSINGHUA UNIGROUP: Debt Risk Widens with Dollar Bond Defaults
-------------------------------------------------------------
Hong Shen and Rebecca Choong Wilkins at Bloomberg News report that
China will almost certainly let a high-flying chipmaker default on
$2.5 billion worth of dollar debt, the strongest signal yet that
foreign investors shouldn't count on Beijing to bail them out.
According to Bloomberg, Tsinghua Unigroup Co. said it won't be able
to repay the principal on a $450 million dollar bond due Dec. 10,
which would trigger cross defaults on a further $2 billion of debt.
This would be the company's first dollar bond repayment failure and
came after it defaulted on a CNY1.3 billion (US$199 million) local
bond last month.
While investors weren't exactly taken by surprise -- the bond was
indicated at about 29 cents on the dollar before it was suspended
-- the default will force them to reassess the creditworthiness of
weaker state-linked companies, Bloomberg relates. The news had
little immediate effect on broader financial markets in China,
which will be reassuring to authorities aiming for more realistic
pricing of bonds without triggering wider contagion.
Bloomberg says the impending default is yet another example of the
downfall of a Chinese company that relied on debt to expand. About
five years ago, Unigroup was one of China's most aggressive
acquirers, with its then-chairman becoming a billionaire and the
company even planning to make a bold $23 billion bid for
memory-chip giant Micron Technology Inc.
"The government has been gradually breaking implicit guarantees of
weak SOEs," Bloomberg quotes Wu Qiong, executive director at BOC
International Holdings Ltd, as saying.
There has been a spate of defaults by state-owned enterprises in
recent weeks, including Brilliance Auto Group Holdings Co., an
automaker linked to BMW AG, and Yongcheng Coal & Electricity
Holding Group Co, the report notes. Speculation has increased that
Beijing will let weaker SOEs fail, especially as the economy
recovers from the pandemic-driven slump.
Such a drive would fit with the Communist Party's strategy of
giving markets greater sway as it seeks to build a stronger, more
efficient economy, says Bloomberg. While the government has taken
measures to unshackle its capital markets, such as a flexible
approach to pricing initial public offerings, the moves have been
accompanied by crackdowns on firms and sectors seen as posing a
threat to the financial system.
Still, Unigroup's potential $2.5 billion dollar-bond defaults is
shocking for its scale given the relative scarcity of payment
failures outside the domestic market. That's more than 60% of the
total defaulted debt seen in China's offshore bond market all of
last year, Bloomberg states.
The chipmaker also won't pay interest on a 5 billion yuan, 5.2%
note due Dec. 10, something it had previously warned might happen.
Issuing an apology to bondholders, Unigroup said in a filing to the
Shanghai Stock Exchange it's looking for fresh funding and will
seek payment extensions and debt resolution, Bloomberg relays.
According to Bloomberg, the company's finances deteriorated sharply
in the last three years after it embarked on a borrowing spree to
fund takeovers and other investments intended to boost its position
in the chip industry.
The firm is a business arm of Tsinghua University, the country's
top tertiary institution that counts President Xi Jinping as an
alumnus. The company's net loss widened to 3.38 billion yuan in the
first half this year from 3.2 billion yuan a year ago, Bloomberg
discloses citing the firm's latest interim financial report.
"We should see rising refinancing and repricing risk for weaker
state-linked firms, which will lead to a rising default rate," said
Andrew Chan, an analyst for Bloomberg Intelligence. "Bailouts are
unlikely, in our view, as China aims to restructure, consolidate
and eliminate zombie-like state-linked firms unless it leads to
systemic risk."
Unigroup's three other bonds to be affected by the cross defaults
are a $1.05 billion note due 2021, a $750 million bond due 2023 and
a $200 million bond due 2028, the company said in a filing to the
Hong Kong stock exchange on Dec. 9, Bloomberg adds.
"The next default event to watch out for could be its parent
company Tsinghua Holdings, but their bonds are already trading at
distressed levels so it's being priced in," Bloomberg quotes Mr.
Chan as saying. "This event will prompt rising concern about
onshore stress spilling over into the offshore market."
On Dec. 7, a Unigroup official said during a meeting with creditors
that a working group led by government officials and Tsinghua
Holdings Corp. were drawing up proposals for resolving its debt
problems, people familiar with the matter said, Bloomberg relays.
They added the official said there's hope that a detailed plan will
emerge in the near term, with the likelihood of bringing in new
funds or investors.
Tsinghua Unigroup Co., Ltd manufactures computer products. The
Company produces computer softwares, computer hardwares, computer
auxiliary equipment, and other products. Tsinghua Unigroup also
produces electronic components, chemicals, and other products.
=========
I N D I A
=========
A-1 COLD: CARE Lowers Rating on INR5.55cr LT Loan to C
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of A-1
Cold Storage Private Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.55 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 4, 2019, revised
and placed the ratings of A-1 Cold Storage Private Limited under
the 'issuer non-cooperating' category as company had failed to
provide information for monitoring of the rating. ACSPL continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated from
January 2020 to November 6, 2020. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
(Updated for the information available from ROC)
The revision in the rating takes into account the non-availability
of requisite information due to non-cooperation by A1 Cold Storage
Private Limited with CARE's efforts to undertake a review of the
outstanding ratings as CARE views information availability risk as
key factor in its assessment of credit risk profile.
Detailed description of the key rating drivers
At the time of last rating on September 4, 2019, the following were
the rating strengths and weaknesses:
Key Rating Weakness
* Short track record of the company: The company was incorporated
in the year 2015 and started its project activities in 2017. The
company is in the initial stages of operations and is expecting to
complete its ongoing project in November, 2018 and start commercial
operations from December 2018. The level of project execution and
operations by the management of the company is yet to be seen.
* Project implementation risk and stabilization of operations: The
directors of the company are setting up the cold storage with a
total estimated cost of the project is INR8.92 crore which is to be
funded through a bank term loan of INR5.55 crore and rest of the
INR3.37 crore from promoter's fund. Till date, the company has
incurred INR0.77 crore for land registration and development
purpose. The commercial operations of the company are expected to
start from December 2018.
Key Rating Strengths
* Experience of the promoters for more than two decade in
agricultural industry: ACSPL is promoted by Mrs. Duvvuru Varija
(Managing Director) and Mrs. Bollu Hymavathi (Director). The
directors are well qualified wherein Mrs. Duvvuru Varija, aged 67,
is a post graduate, having experience of 24 years in agricultural
business. The company is likely to get benefited by its qualified
and experienced promoters.
* Location advantage of the plant: The plant location of the
company is located in horticultural crops growing area and having
good network with farmers and growers. There is abundant
availability of raw materials such as chillies, mango, tamarind
etc. in the proposed area of the district.
* Stable outlook of cold chain industry: Growing annually at 28%,
the total value of cold chain industry in India is expected to grow
going forward driven by increased investments, modernization of
existing facilities, and establishment of new ventures via private
and government partnerships. India's cold chain industry is still
evolving, not well organized and operating below capacity. The
Indian cold chain market is highly fragmented with more than 3,500
companies in the whole value system. Organized players contribute
only ~8%–10% of the cold chain industry market. Cold stores are
the major revenue contributors of the Indian Cold Chain industry
and are majorly used for storing potatoes. However, the market is
gradually getting organized and focus towards multipurpose cold
storages is rising.
A1 Cold Storage Private Limited (ACSPL) was incorporated in the
year 2015 with its registered office at Somajiguda, Hyderabad. The
promoters of the company are Mrs. Duvvuru Varija (Managing
Director) and Mrs. Bollu Hymavathi (Director). Both the directors
have experience for more than two decades in agricultural business.
Presently, the company is establishing a cold storage plant at
Jadcherla village, Mahabubnagar District, Telangana with the total
project cost of INR8.92 crore which is to be funded through a bank
term loan of INR5.55 crore and balance of INR3.37 crore from
promoter's fund. Till date, the company has incurred INR0.77 crore
for land registration and development purpose. ACSPL is planning to
start its commercial operations from December 2018. The company is
expected to preserve fruits, vegetables and other agricultural
products like seeds post completion of cold storage plant.
AISIRI AGRO: CARE Lowers Rating on INR16cr LT Loan to C
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
AISIRI Agro Private Limited [AAPL] (erstwhile ISIRI Agro Private
Limited), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 9, 2019, placed
the rating(s) of AAPL (erstwhile ISIRI Agro Private Limited) under
the 'issuer non-cooperating' category as AAPL had failed to provide
information for monitoring of the rating. AAPL continues to be
non-cooperative despite repeated requests for submission of
information through phone calls and emails dated September 16, 2020
to September 28, 2020. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The revision in the ratings assigned to the bank facilities of
AISIRI Agro Private Limited [AAPL] (erstwhile ISIRI Agro Private
Limited) is on account of non-submission of requisite information.
The rating takes into account decline the total operating income,
net loss and erosion of net worth during FY19 (refers to the period
April 1 to March 31). The rating continues to be
constrained by working capital intensive nature of operations and
dependence on Government agencies for funds, geographical
concentration risk with projects confined to Telangana & Karnataka
only. The ratings, however, derives strength from experienced
promoters.
Detailed Rationale& Key Rating Drivers
Updated for the information available from Registrar of Company
Affairs:
Key Rating Weakness
* Small scale of operations: The scale of operations marked by the
total operating income (TOI) has declined and stood small at
INR0.14 crore in FY19 as compared to INR1.05 crore in FY18.
* Financial performance marked by net loss, eroded net worth base
and weak debt coverage indicators: The company continues to
registered net loss of INR0.05 crore in FY19 due to decline TOI
resulted in under absorption of finance and depreciation costs
during the year. Further, the tangible net worth base of the
company eroded and stood negative due to unabsorbed carry forward
losses. The PBILDT interest coverage ratio stood weak at 0.43x in
FY19 due to absolute decline in amount of PBILDT.
* Working capital intensive nature of operations and dependence on
Government agencies for funds: AAPL gets its revenue of nearly 75%
as subsidies from respective Govt. department at various stages of
completion of poly houses and only balance 25% from the farmers.
The subsidies are received at stages as 10% of revenue from
construction on laying foundation and material delivered to site,
50% of revenue on installation and inspection of greenhouses and
balance 15% after 3rd party verification. Therefore, timely
realizations of funds become important for AAPL to run the business
operations smoothly.
* Geographical concentration risk with projects confined to
Telangana & Karnataka only: The projects undertaken and in progress
by AAPL are confined only to Karnataka & Telangana states. It is
empanelled with Telangana and Karnataka state government
horticulture departments for undertaking poly house constructions
for farmers.
Key Rating Strengths
* Experienced promoters: SRPPL is promoted by Mr. Sirish Kumar
Reddy (Managing Director) and Mrs. Jamuna Sirish Reddy. Mr. Sirish
has more than a decade of experience in the construction line of
business. His decade long presence in the market has helped him in
establishing good relationships with customers.
* Financial closure for the project achieved: The Promoters of AAPL
are Mr. Gowrishankar Uday kumar. Mr. S Devananda, Mr. Annaiah, Mrs.
K Lalitha & Mrs. Vimala Uday kumar who are having a reasonable
experience of over 5 years in Agri industry.
AISIRI Agro Private Limited (erstwhile ISIRI Agro Private Limited)
is a private limited company incorporated in the year December 23,
2015 by Mr. Gowrishankar Uday Kumar, Mrs. Vimala Uday Kumar, Mr.
Annaiah, Mr.S Devanand and Ms. K. Lalitha as its Directors. The
AAPL started its commercial operations in January 2016. In FY19,
the company has reconstituted by changing its name from ISIRI agro
Private Limited to AISIRI Agro Private Limited and continued its
operations under new name. The company is engaged in providing
services like assisting farmers in protected cultivation in poly
houses/greenhouses by undertaking poly houses construction and
providing help in cultivation activities.
AXIS BANK: Fitch Affirms 'BB+' LongTerm IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed India-based Axis Bank Limited's
Long-Term Issuer Default Rating (IDR) at 'BB+' with a Negative
Outlook and its Viability Rating (VR) at 'bb'.
The Negative Outlook mirrors the Outlook on India's 'BBB-'
sovereign rating, which was revised to Negative, from Stable, on
June 18, 2020 due to the impact of the escalating coronavirus
pandemic on India's economy.
The operating environment for Indian banks remains challenging,
despite a moderate revival in economic activity following the
gradual easing of the lockdown since May 2020. Fitch revised its
forecast for India's real GDP growth for the fiscal year ending
March 2021 (FY21) to -10.5%, from the previous forecast of -5.0% in
September 2020, but expects growth to rebound to 11.0% in FY22 from
a low base. Fitch believes the economic contraction is likely to
weaken and extend the asset-quality cycle, which could lead to a
rise in stressed loans and, ultimately, more write-offs over the
next several years.
This is despite the banks' latest 2QFY21 earnings presenting a more
benign picture. A speedy economic recovery would help the sector to
rebound meaningfully, absent its expectation of a moderately worse
landscape in 2021 due to weak prospects for new business and
revenue generation. The banks' reported impaired loan ratios are
yet to reflect underlying asset-quality stress because of
supportive regulatory measures. Fitch believes private banks with
strong loss-absorption buffers are better placed to leverage an
economic recovery than state-owned banks, which tend to be burdened
with greater balance-sheet challenges and weaker loss-absorption
buffers.
KEY RATING DRIVERS
IDR, SUPPORT RATING AND SUPPORT RATING FLOOR
Axis's IDR, which is higher than its VR, is driven by its Support
Rating Floor and Support Rating, as Fitch believes the bank has a
moderate likelihood of extraordinary state support, if required,
due to its size and systemic importance; 5.6% of banking-sector
loans and 4.5% of deposits on 1HFY21. However, Fitch regards the
likelihood of support for Axis to be lower than for large state
banks that have Support Rating Floors of 'BBB-' due to its private
ownership, but to be similar to that of other large private banks.
Fitch believes that systemically important state-owned banks with
weak capital and earning buffers will have higher priority in terms
of timeliness of government support because of their majority
government ownership amid the sovereign's financing constraints.
Nevertheless, Axis is a systemically important bank and the state
has a record of supporting such banks, although Axis has not
required support in the past. The March 2020 rescue of Yes Bank
Ltd, a mid-sized private-sector bank, reinforces its view.
The Negative Outlook on the IDR reflects the Negative Outlook on
India's sovereign IDR.
VIABILITY RATING
Axis's VR reflects a moderate degree of financial strength,
supported by improved capital buffers after the bank raised fresh
equity of INR100 billion (159bp of 1HFY21 risk-weighted assets) in
August 2020. The VR also factors in risks to asset quality from the
ongoing economic slowdown, balanced by an adequate franchise and
stable funding. Fitch thinks Axis is better positioned than the
state banks and some private banks to accelerate market-share gains
once a sustained recovery from the pandemic is underway.
The bank's common equity Tier 1 (CET1) ratio increased to 14.9%
(excluding profit) in 1HFY21, from 13.3% in FY20, to be 290bp above
Fitch's minimum 'bb' threshold and well above (690bp) the
prescribed regulatory minimum of 8% applicable from April 2021. The
bank's capital buffers can withstand moderate shock, but may be
vulnerable to heightened stress, although Fitch does not view such
risk as probable in the near term. Fitch assesses Axis's core
capitalisation as stable, considering its improved earnings, a low
net impaired loans/common equity tier 1 ratio of 6.7% and
management's focus on preserving capital in the near term. This
supports its stable view on the bank's VR, which also factors in
the bank's access to the equity capital market; Axis has raised
INR225 billion of fresh equity since September 2019 and has an
option to raise an additional INR50 billion before June 2021.
The impaired loan ratio was stable, at 4.5% in 1HFY21, and
loan-loss cover had improved to 77%, from 65% in FY20, partly on
account of lower slippages due to loan moratoriums. However, Axis
has made COVID-19 related provisions on 0.8% of loans, which, if
adjusted, will push loan-loss cover to around 96%. Axis also made
provisions of 1.0% of loans towards contingencies and potential
restructuring. Fitch regards the bank's intention to recognise and
provide for stress up-front as positive, as the agency expects
Axis's asset quality to weaken with the rest of the sector, albeit
not to the same extent.
Higher stressed loans, including restructuring, would depress the
bank's loan-loss coverage, although contingency buffers should
soften the impact. Fitch expects SME loans, which comprised 11% of
loans in 1HFY21, to be most vulnerable to deterioration, although
higher slippages in certain retail products are possible due to the
bank's appetite for unsecured loans (which are not overly material)
and recent job losses in India. Secured retail loans, such as home
loans (36% of loans) and auto loans (13%), have inbuilt safeguards
and should be more resilient than unsecured loans. The corporate
portfolio also remains a risk due to heightened stress in sectors
such as tourism, non-bank financial institutions (7.3%), real
estate (3.6%), infrastructure (9.0%), roads (1.9%) and auto (1.5%),
even though Axis expects potential restructuring to be limited to
about 1.6% of loans. However, an increased focus on better-rated
corporates, government and large corporate-backed non-bank
financial institutions in recent years has improved the risk
quotient.
Fitch expects operating profit/risk-weighted assets to moderate
from 1.3% in 1H21 (FY20: 2.2%) on higher loan-impairment costs due
to increased slippages in 2HFY21 (FY20: 2.9%). However, Axis's
pre-impairment profit (FY20: 4.3% of loans) should adequately
cushion against higher impairment charges.
Axis has maintained a stable funding profile, with a loans/customer
deposits ratio of 94% and a low-cost deposit ratio of 44% at
1HFY21. Funding for private banks in India is confidence sensitive
and could be vulnerable to weak depositor sentiment, although
Axis's higher-than-system deposit growth (1HFY21: 6%) was
unaffected by the failure of Yes Bank.
SENIOR DEBT
Axis's senior debt ratings are affirmed in line with the IDR, as
the debt represents the bank's unsecured and unsubordinated
obligations.
RATING SENSITIVITIES
IDRS, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Fitch would downgrade the Support Rating, Support Rating Floor and,
in turn, the bank's IDR if Fitch believes that the sovereign's
ability to support the bank has weakened, which could be the case
if the sovereign rating was downgraded. The IDR could also come
under pressure if Fitch believes the state's propensity to support
the bank has weakened, even if India's sovereign rating remains
unchanged, although this is not its base case. There is limited
downside risk to the IDR in the event of a VR downgrade, so long as
the Support Rating Floor remains unchanged, which would imply that
its assessment of the sovereign's ability and propensity to support
the bank remains intact.
The senior debt ratings would be downgraded if the bank's Long-Term
IDR was downgraded.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
A revision of its Outlook on the sovereign rating to Stable would
lead to a corresponding revision of its Outlook on Axis's IDR,
provided the sovereign's propensity to extend support remains
unchanged. A sovereign rating upgrade, which does not appear to be
likely in the near term, would not lead to an upgrade in the banks'
IDR unless it coincided with a strengthening of the sovereign's
ability and, more importantly, propensity to support the bank. An
improvement in Axis's VR beyond its Support Rating Floor would also
lead to its IDR being aligned with the VR. However, Fitch views
such an upgrade as highly unlikely in the near-term given the weak
operating environment and pressure on financial profiles.
The senior debt ratings are sensitive to changes in the bank's IDR
and will move in tandem with the IDR should it be upgraded.
VIABILITY RATING
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Axis's VR could be downgraded if the economic environment
deteriorates significantly beyond its expectations. Under this
scenario, the operating environment score could constrain the VR if
Fitch believes that a significantly worse operating environment
would have a material impact on its assessment of most financial
profile factors.
The VR is most sensitive to changes in Axis's asset quality and
profitability metrics, which ultimately affect capitalisation,
although capital headroom has improved on enhanced capital buffers.
Nonetheless, the VR would come under pressure if profitability was
to be eroded due to the stressed asset ratio (impaired loans +
restructured loans) well exceeding 5% (from a 4.5% impaired loan
ratio at 1HFY21), along with a decline in the common equity Tier 1
ratio to below 12% for a sustained period. Fitch may also reassess
the bank's VR if it faced significant deposit outflow in a
weakening operating environment, which would be evident should its
liquidity coverage ratio fall below 100% or upon a sharp jump in
the loans/customer deposits ratio, although Fitch does not view
this as probable in the near term.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Axis's VR is more stable since its previous rating action, but
remains somewhat constrained by an operating environment on which
Fitch has a negative outlook. An upgrade of the VR is therefore
less probable, particularly considering the near-term risks to
asset quality. However, in the event of a more stable, if not
improving environment, an upgrade could occur if the bank continues
to lower its impaired loan ratio (from 4.5% at 1HFY21), while
ensuring its CET 1 ratio is around or above current levels on a
sustained basis.
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
Axis Bank has an ESG Relevance Score of 4 for Financial
Transparency. It reflects its assessment of the quality and
frequency of financial reporting and the auditing process, which
has a moderate but negative influence on the credit profile, and is
relevant to the rating in conjunction with other factors. These
factors have become more prominent in the past few years due to the
wide divergence between the bank's recognition of non-performing
loans and the regulator's assessment as well as its observation of
the bank's liquidity coverage ratio assumptions, although the bank
has taken steps to address and minimise such occurrences.
Nonetheless, government and regulatory pandemic-related relief
measures pose a risk for the transparent recognition of impaired
loans, although Fitch expects Axis to be reasonably better placed
among peers. Still, financial transparency is viewed as pivotal for
general business and depositor confidence and can lead to
significant reputational risk if not managed well.
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.
BAJAJ SINDHUDURG: CRISIL Reaffirms B- Rating on INR5.35cr Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on
the long-term bank facilities of Bajaj Sindhudurg Rice Mills Ltd
(BSRML).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL A4 (Reaffirmed)
Cash Credit 5 CRISIL B-/Stable (Reaffirmed)
Long Term Loan 5.35 CRISIL B-/Stable (Reaffirmed)
Pledge Loan 18 CRISIL A4 (Reaffirmed)
Short Term Loan 10 CRISIL A4 (Reaffirmed)
Term Loan 10 CRISIL B-/Stable (Reaffirmed)
The ratings continue to reflect the company's subdued financial
risk profile, weak liquidity and large working capital requirement.
These rating weaknesses are partially offset by extensive
experience of the promoters in the rice milling industry and their
timely support.
The lockdown and other measures undertaken by the central and state
governments to contain the spread of the Covid-19 pandemic has had
material impact on the company's revenue growth and profitability.
Scale up of revenue and profitability is likely to remain lower
than CRISIL's earlier expectation.
Analytical Approach
For arriving at the ratings, CRISIL has treated unsecured loan of
INR9.6 crore, extended by BSRML's promoters, as on March 31, 2020,
as neither debt nor equity as the rate of interest is lower than
market rate and the funds are expected to remain in the business
over the medium term.
Key Rating Drivers & Detailed Description
Strengths:
* Extensive experience of the promoters: The promoters have
experience of two decades of successfully operating and managing
another group company, Bajaj Healthcare Ltd, which will support the
business risk profile, going forward. The promoters are also
expected to provide timely funding support to meet financial and
operational obligations.
Weaknesses:
* Modest scale of operations and subdued profitability: Commercial
operations began in July 2017. Despite 3 years of operations, scale
remains modest at INR22.4 crore in fiscal 2020 and profitability is
subdued with net loss of INR4.04 crore. Revenue and profitability
growth is expected to remain constrained over the medium term.
* Subdued financial risk profile: The financial risk profile is
restricted by negative networth of INR7.72 crore and highly
leveraged capital structure with adjusted debt of INR36.8 crore as
on March 31, 2020. There is no major capital expenditure (capex)
planned but leverage is likely to remain high over the medium term.
Debt protection metrics are weak because of subdued profitability.
The operating profit was not adequate to meet interest obligation
in fiscal 2020, which was met through funding support from the
promoters.
* Large working capital requirement: Operations are highly working
capital intensive, on account of the seasonal nature of business.
Gross current assets were around 215 days as on March 31, 2020, led
by inventory of 122 days, which is likely to remain at similar
level over the medium term.
Liquidity Stretched
The company is expected to incur cash loss for the next two
fiscals, thus it will not be able to meet maturing debt obligation
of INR0.8-3.5 crore per annum. No significant capex is expected.
Bank limit utilisation is high at 97.33% on average during the 12
months ended September 30, 2020, and is likely to remain high on
account of large working capital requirement. Current ratio
continues to remain low at 0.92 time as on March 2020, and is
expected to remain less than 1 time over the medium term. The
promoters are likely to extend support in the form of equity and
unsecured loans to the company to meet its operational and
financial commitments which remains a rating sensitivity factor.
Outlook: Stable
CRISIL believes BSRML will benefit from the extensive experience of
its promoters.
Rating Sensitivity factors
Upward factors
* Significant improvement in revenue and profitability,
strengthening net cash accrual to above INR3.5 crore
* Better working capital cycle and financial flexibility with
stable financial risk profile
Downward factors
* Sustained decline in revenue by 10-15% per annum, over the
medium term, with operating margin falling further
* Stretch in the working capital cycle or large, debt-funded
capex weakening the financial risk profile
BSRML was set up as a closely held limited company in 2015. The
company processes and sells rice and has a facility in Sindhudurg
district, Maharashtra. Commercial operations began in July 2017.
BAJLA MOTORS: CARE Lowers Rating on INR11.75cr LT Loan to C
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Bajla Motors Private Limited (BMPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.75 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from BMPL to monitor the ratings
vide e-mail communications/letters dated November 4, 2020, November
6, 2020, November 9, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the Entity has not provided the
requisite information for monitoring the rating. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which, however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating on
BMPL's bank facilities will now be denoted as CARE C; Stable;
ISSUER NOT COOPERATING. Further, the banker could not be
contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
Key Rating Weaknesses:
* Small scale of operation with continuing losses: The scale of
operations of the company remained small marked by total operating
income of INR12.05 crore (INR11.35 crore in FY18) with a net loss
of INR0.40 crore (net loss of INR3.98 crore in FY18) in FY19. The
profitability margin of the firm remained weak marked by negative
operating margin.
* Limited bargaining power with TML and dependence on volume
momentum: BMPL's automobile dealership model is purely in the
nature of trading wherein profit margins are very thin and
bargaining power over the principal manufacturer is also low.
* Renewal based dealership agreement: The dealership agreement with
TML and PVPL is valid for two years. Though the non-renewability of
the same would pose a risk to the business sustenance of the
company, the past track record on agreement renewability and
satisfactory performance of the company, mitigates the risk related
to renewability to an extent.
* Linkage to the fortunes of TML and PVPL: BMPL is an authorized
dealer of TML & PVPL and hence its fortune is linked to the
performance of TML & PVPL products. Any shift in customer
preference and brand equity will negatively impact the performance
of BMPL.
* Working capital intensive nature of operation resulting in high
overall gearing: The business of automobile dealership is having
inherent high working capital intensity due to high inventory
holding as the company has to maintain fixed level of inventory for
display and to guard against supply shortages. Accordingly, the
average fund based working capital utilization remained high at 95%
during the last 12 months ended July 31, 2019. The capital
structure of the company remained leveraged as on March 31, 2019.
The net worth base of the company was negative on account of
incurred losses in FY18 and FY19. Further, debt coverage indicator
of the company remained weak marked by negative total debt to GCA
Furthermore, the interest coverage ratio of the company remained
below unity in FY19.
Key Rating Strengths:
* Long track record: The company has been in automobile dealership
business since 2001, thus having a track record of more than 19
years.
* Experienced promoters: Shri Sanjay Bajla possesses 15 years of
experience in same line of business and looks after the day-to-day
operations of the company. Smt. Ritu Bajla and Shri Giridhari Bajla
has more than 14 years of experience in the same line of business.
Bajla Motors Pvt. Ltd. (BMPL) was incorporated in August, 2000 by
Bajla Family of Siliguri, West Bengal and started its commercial
operation from January, 2001. The company is an authorized dealer
of Tata Motors Ltd (TML) for its passenger cars, spares &
accessories for three districts of West Bengal. At present, BMPL
offers vehicles of TML & PVPL through its four showrooms (two in
Siliguri , one in Darjeeling and one in Cooch Behar districts of
West Bengal) equipped with 3-S facilities (Sales, Service and
Spare-parts). Apart from this, the company also purchases and sells
pre-owned cars.
BALAJI RAW: CARE Keeps D on INR20cr Loans in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Balaji
Raw and Paraboiled Rice Mills Private Limited (SBPL) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 30, 2019, placed the
rating(s) of SBPL under the 'issuer non-cooperating' category as
SBPL had failed to provide information for monitoring of the
rating. SBPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated from January 2020 to November 06, 2020. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
(Updated for the information available from ROC)
Detailed description of the key rating drivers
At the time of last rating on August 30, 2019, the following were
the rating strengths and weakness
Key Rating Weakness
* Ongoing delays in meeting of debt obligations: The company has
delays in servicing of debt obligations owing to the stretched
liquidity position of the company.
Key rating strengths
* Long experience of the promoters for more than three decades in
the rice mill industry: Mr. Tatikonda Viswanadham, managing
director has more than three decades of experience in rice milling
industry and is very well versed with the working of the business
and the industry. Prior to SBPL, the Mr. Tatikonda Viswanadham has
experience of running two rice mills, namely, Pallavi Enterprises
and Girija Modern Rice Mills. Over the course of business, he has
established healthy relationship with key suppliers, customers,
local farmers, dealers and also with the agents facilitating the
business within and outside the state.
Incorporated in June 2013, Sri Balaji Raw and Parboiled Rice
Private Limited (SBPL) is promoted by by Mr. TatikondaViswanadham
and Mrs. TatikondaSavithri. Mr. TatikondaViswanadham is operating
two other rice mills, namely, M/s. Pallavi Enterprises and M/s.
Girija Modern Rice Mills. SBPL operates on leased premises and
machinery of Girija Modern Rice Mills and Pallavi Enterprises. The
company hired machinery capacity of 250 TPD (out of 350 TPD total
capacity) from Girija Modern Rice Mills and 150 TPD (out of 250 TPD
total capacity) from Pallavi Enterprises. Both of these firms are
currently operational and continue to do so till the management
decides, after which, they would operate under the name of Sri
Balaji Raw and Parboiled Rice Mills Private Limited. The facilities
leased include 12 acres of land, machinery, 53 self-owned Lorries,
2.5 MW cogeneration bio-mass power plant and a warehouse to store
up to 20,000 MT of different varieties of paddy.
In FY19, SBPL had a Profit after Tax (PAT) of INR0.01 crore on a
total operating income of INR2.22 crore, as against PAT and TOI of
INR0.01 crore and INR2.22 crore, respectively, in FY18.
BHARATI BIO: CARE Keeps D on INR6cr Loans in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sree
Bharati Bio Genetics Private Limited (SBBGPL) continues to remain
in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated August 30, 2019, placed the
rating(s) of SBBGPL under the 'issuer non-cooperating' category as
SBBGPL had failed to provide information for monitoring of the
rating. SBBGPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated from January 2020 to November 06, 2020. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
(Updated for the information available from ROC)
Detailed description of the key rating drivers
The rating assigned to the bank facilities of Sree Bharati Bio
Genetics Private Limited continues to be tempered by delays in
servicing debt obligation due to delay in realizing debtors, small
scale of operations, weak financial risk profile marked by
leveraged capital structure, weak debt coverage indicators and
presence in a fragmented industry with intense competition. The
rating however continues to draw its strength from the experience
of the promoters in the industry. The banker has expressed that the
company has availed moratorium for the period of six months from
March to August, 2020.
Key Rating Weakness
* Ongoing delays in servicing debt obligation due to delay in
realizing debtors: The company is delaying servicing of interest
and instalment obligation on term loan account as the company has
started its commercial operation from March 2015, resulted in under
absorption overheads and further leads to delay in meeting its
interest in timely manner. Due to the above said factor, the
company is unable to make the timely payment of debt obligation.
* Short track record, small scale of operations and low net worth
base: The company has incorporated in the year in 2013 and
commercial operations started from March 2015. The total operating
income of the company stood small at INR1.90 crore in FY19 when
compared to INR2.22 crore in FY18. The tangible net worth continue
to remain low at INR1.78 crore as on March 31, 2019.
* Leveraged capital structure and weak debt coverage indicators:
The capital structure improved however, continues to remain
leveraged marked by overall gearing of 4.06x as on March 31, 2019
as against 17.12x as on March 31, 2018. The debt coverage ratio
improved however continues to remain weak marked by TD/GCA and
interest coverage ratio of 13.76x and 2.32x respectively in FY19.
* Presence in a fragmented industry with intense competition: The
company is engaged in drying of maize which involves limited value
addition and hence results in thin profitability. Moreover, on
account of large number of units operating in similar business, the
competition among the players remains very high resulting in high
fragmentation and further restricts the profitability.
Key Rating Strengths
* Experience of Promoters: Sree Bharati Bio Genetics Private
Limited (SBBGPL) was established in the year 2013 and promoted by
Mr.Rama Krishna Reddy along with his family members. Mr. Rama
Krishna Reddy is a qualified graduate and having seven years of
experience in drying of maize business.
Sree Bharati Bio Genetics Private Limited (SBBGPL) was incorporated
in the year 2013 and the company started its commercial operations
from March2015. SBBGPL promoted by Mr. Rama Krishna Reddy along
with his family members. SBBGPLis engaged in drying of Maize on job
work basis. Its peak processing capacity is 6000 MT per season. The
company undertakes the job work from the companies like VNR Seeds,
Vaishnavi Agro Industries Private Limited and other customers who
are located in the state of Telangana, Andhra Pradesh, and
Maharashtra.
DURGA AUTOMOTIVES: CARE Cuts Rating on INR19.40cr LT Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Durga Automotives Private Limited (DAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.40 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from DAPL to monitor the rating
vide e-mail communications/letters dated October 6, 2020, October
9, 2020 and October 13, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further,
Durga Automotives Private Limited has not paid the surveillance
fees for the rating exercise as agreed to in its Rating Agreement.
The rating on DAPL's bank facilities will now be denoted as CARE C;
Stable; ISSUER NOT COOPERATING. Further, due diligence could not be
conducted.
Users of these ratings (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in Sept. 9, 2019 the following were the
rating strengths and weaknesses (Updated the information available
from Ministry of Corporate Affairs)
Key Rating Weaknesses
* Small scale of operations with low profit margins: The scale of
operations remained small marked by its total operating income of
INR51.23 crore (INR56.09 crore in FY18) with a PAT of INR0.48 crore
(INR0.43 crore in FY18) in FY19. Further the networth base was also
low at INR10.23 crore (INR9.75 crore as on March 31, 2018) as on
March 31, 2019. Furthermore, the profit margins of the company
remained low marked by PBILDT margin of 67.00% and PAT margin of
0.94% in FY19.
* Leveraged capital structure with weak debt coverage indicators:
The capital structure of the company remained leveraged marked by
debt equity and overall earing ratios of 0.31x and 2.59x
respectively as on March 31, 2019. Furthermore, the debt coverage
indicators remained weak marked by interest coverage of 1.47x
(FY18: 1.24x) and total debt to GCA of 24.64x (FY18: 24.58x) in
FY19.
* Low bargaining power with OEM and reliance for volume for growth:
DAPL's business model is purely in the nature of trading, wherein
profit margins are very thin and bargaining power over the Original
Equipment Manufacturer (OEM) is also low. As DAPL's margin on
products is pre-decided at a particular level by the two principal
manufacturers, it has a limited scope to enhance its profitability
margins. Hence, the company's growth prospects depend on the
ability to increase its sales volume and capitalize on the spares
and service segment.
* Renewal based dealership agreement: DAPL has to renew its
dealership agreement with HMIL and PVPL. Therefore renewability of
the same would pose a risk to the business sustenance of the
company. The company has two agreements with HMIL and next renewal
of each agreement will be on October 4, 2018 and August 23, 2018.
Further DAPL has agreement with PVPL for which the next renewal
will be on January 2019. The aforesaid risk is mitigated to a
certain extent as the scale of operations of the company is
increasing year on year and the dealership agreement has been
renewed regularly in the past years.
* Intense competition in the auto dealership industry: The
automobiles industry is very competitive on the back of the
presence of a large numbers of players dealing with similar
products. Moreover, in order to capture the market share, the auto
dealers offer better buying terms like providing credit period or
allowing discounts on the purchase. Such discounts offered to the
customers create a margin pressure and negatively impact the
earning capacity of the company.
Key Rating Strengths
* Experienced promoters with long track record of operations: Mr.
Sanjay Bansal and Mrs. Anita Agarwalla have around 20 years of
experience in automobile dealership business and are involved in
the strategic planning and running the day to day operations of the
company. They are being duly supported by another director, namely
Mr. Ashwin Bansal and a team of experienced personnel. Furthermore,
DAPL commenced commercial operation since 1998 and accordingly has
a long track record of operations.
* Authorised dealer of Hyundai Motor India Limited and Piaggio
Vehicles Private Limited: DAPL enjoys the leverage of being an
authorized dealer of HMIL, which is the second largest car
manufacturer in India, having about 17% market share in the segment
during Q1FY18 (refers to the period April 01 to June 30).
Furthermore, it also enjoys the benefits of being the authorized
dealer of PVPL, which is the second largest three wheeler
manufacturer in India.
Durga Automotives Private Limited (DAPL) was incorporated on
October 12, 1998 and its registered office is situated at Dagapur,
Pradhan Nagar, Siliguri, West Bengal. The company is promoted by
Mr. Sanjay Bansal, Mrs. Anita Agarwalla and Mr. Ashwin Bansal. DAPL
is an authorized dealer of Hyundai Motor India Ltd. (HMIL) for its
passenger vehicles and Piaggio Vehicles Private Limited (PVPL) for
its commercial vehicles. It is engaged in the sale of vehicles,
spare parts and servicing activities. The company presently
operates one showroom cum sales office and workshop including spare
parts for PVPL at Siliguri. Further, DAPL has three showrooms (one
each in Siliguri, Coochbehar and Jaigaon) and four workshops (2 in
Siliguri and one each in Coochbehar and Jaigaon) for HMIL.
EMPERIA REALTY: CARE Moves D on INR13cr Loans to Not Cooperating
----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Emperia
Realty (ER) to Issuer Not Cooperating category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 13.75 CARE D; ISSUER NOT COOPERATING
Facilities Rating moved to ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from ER to monitor the rating(s)
vide e-mail communications/letters dated October 22, 2020,
September 16, 2020, August 20, 2020, July 10, 2020, June 10, 2020
and numerous phone calls. However, despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on ER's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
The rating assigned to the bank facilities of Emperia Realty (ER)
takes into account the on-going delays in the servicing of debt
obligations in the term loan account for both principal & interest
owing to stretched liquidity due to low booking status of saleable
units.
Detailed description of the key rating drivers
At the time of last rating on January 22, 2019 the following were
the rating strengths and weaknesses (updated for information
available from banker)
Key rating Weakness
* Delays in debt servicing: As per the interaction with the banker
of Emperia Realty on November 17, 2020, it was known that there are
ongoing delays in the servicing of debt obligations in its term
loan account for both principal & interest owing to stretched
liquidity due to low booking status of saleable units.
Key Rating Strengths
* Long track record coupled with renowned group presence in real
estate development & construction activities: ER belongs to the
reputed Akshar Group which is engaged into real estate development
& construction of residential as well as commercial spaces since
last 24 years. AG has executed over 22 projects spanning across a
total construction area of 33.95 lakh Sq. Ft. across various
suburbs of Navi Mumbai, and a few projects in Pune. Moreover, a
total area of 5.81 lakh Sq. Ft. is under construction for various
projects of the group.
* Experienced promoters: The overall operations of ER are looked
after by the partners – Mr. Govind Patel, Mr. Dhiraj Manjeri, Mr.
Rajendra Choudhary, Mr. Danji Daka, Mr. Ramesh Arethiya and Mr.
Kishore Mujat, together who possess an average experience of over a
decade in real estate development & construction activities.
Established in March 2015 by Mr. Govind Patel with his relatives,
Emperia Realty (ER) is engaged in real estate development &
construction of residential as well as commercial spaces. The firm
forms part of the renowned Akshar Group (AG), with Akshar
Developers (AD) being the flagship firm. AG, founded in 1995, has
developed a number of residential & commercial spaces across Navi
Mumbai. ER is currently developing its maiden project namely Akshar
Emperia Garden (EG) at Panvel in Navi Mumbai, Maharashtra, a
residential project spanning across a total saleable area of
1,72,460 Sq. Ft. The said complex comprises 4 buildings with 77 1
BHK/1 RK flats each, with each building comprising G+7 floors,
coupled with a club house. The amenities of the project comprise
play area, jogging track, gymnasium, advanced security, community
hall, internal roads and gardens. The aforementioned project is
estimated to cost INR31.54 crore proposed to be funded by way of
promoters' contribution to the tune of INR8.50 crore, bank term
loan worth INR15 crore and the balance by way of receipts from
customers. The said project is registered by Real Estate Regulatory
Authority (RERA) (RERA ID: P52000011872).
GANESH TIMBER: CARE Lowers Rating on INR2cr LT Loan to C
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Sri
Ganesh Timber Traders (SGTT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Short term Bank 7.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 3, 2019 placed the
rating(s) of SGTT under the 'issuer non-cooperating' category as
SGTT had failed to provide information for monitoring of the
rating. SGTT continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated September 30, 2020 to October 19, 2020. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the public available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The revision in the ratings is on account of non-availability of
requisite information.
Detailed description of the key rating drivers
At the time of last rating September 3, 2019 the following were the
rating strengths and weaknesses:
Key Rating Weakness
* Small scale of operations with fluctuating in total operating
income and profitability margins: The scale of operations of the
firm marked by the total operating income (TOI) has been declining
and remained small during the review period. Total operating income
declined from INR10.84 crore in FY15 to INR7.22 crore in FY16 due
to a ban posed on export of round logs by the Burmese government.
However, TOI improved to INR7.43 crore in FY17 (C.A. Certified
Prov.) due to increased import from other countries.
* Fluctuating and thin profitability margins during review period:
The firm has fluctuating PBILDT margins during review period. The
PBILDT margin of the firm deteriorated from 4.25% in FY15 to 3.85%
in FY16 due to decrease in total operating income in absolute
amount. However, the PBILDT margin marginally improved to 4.31% in
FY17 (C.A. Certified Prov.) due to decreased overheads. The PAT
margin of the firm improved from 0.79% in FY15 to 0.86% in FY16 due
to decrease in interest expenses and depreciation cost. However, it
deteriorated to 0.73% in FY17 (C.A. Certified Prov.) due to
increase in depreciation cost and interest cost (due to firm
availed unsecured loans from related parties which are interest
bearing.
* Moderate capital structure and weak debt coverage indicators: The
debt equity ratio of the firm has remained below unity for the last
three balance sheet date ended March 31, 2016. The overall gearing
ratio of the company deteriorated from 1.06x as on March 31, 2015
to 2.13x as on March 31, 2016 due to increase in utilization of
working capital bank borrowings. However, it improved to 1.56x as
on March 31, 2017 (C.A. Certified Prov.) due to decrease in total
debt of INR5 crore FY16 to INR4.69 crore FY17 on account of lower
utilization of working capital coupled with increase in tangible
net-worth. SGTT has weak debt coverage indicators during review
period. Total debt/GCA of the firm deteriorated from 39.64x in FY15
to 62.70x in FY16 due to increase in total debt levels along with
declining cash accruals. However, it improved to 44.62x in FY17
(C.A. Certified Prov.) due to increase in cash accruals though
remained weak. The PBILDT interest coverage ratio of the firm
improved from 1.48x in FY15 to 1.70x in FY17 (C.A. Certified Prov.)
due to decrease in interest cost coupled with increase in PBILDT
levels.
* Working capital intensive nature of operations and elongated
operating cycle: The firm has elongated operating cycle which stood
at 204 days in FY17 (C.A. certified Prov.) though improved from 266
days in FY16 due to improvement in average collection period. The
firm is required to keep inventory levels of around 3-4 months to
meet customers' demand. Furthermore, the firm imports wood and teak
in bulk from the suppliers located at international markets like
Burma, Indonesia, Malaysia, etc. which also results in high
inventory levels. The firm receives payment from its customers up
120 days. The credit period availed by the firm from its suppliers
with in within 30 days due to 80% of total purchases are imports
coupled with due to long term relationship with supplier whereby
the firm avails extension in the credit period.
* Constitution of the entity as a partnership firm with inherent
risk of withdrawal of capital: The firm being a partnership firm is
exposed to inherent risk of capital withdrawal by the partners, due
to its nature of constitution. Further, any substantial withdrawals
from capital account would impact the net-worth and thereby the
financial profile of the firm. The partners have withdrawn capital
of INR1.28 crore during review period.
* Highly fragmented industry with intense competition from large
number of players: The firm is engaged in trading of wood which is
highly fragmented industry due to presence of large number of
organized and unorganized players in the industry the firm faces
huge competition
Key Rating Strengths
* Long track record and experience of the partners for more than
three decades in trading industry: SGTT was established in 1982 and
has been in the trading of wood and teak industry for more than
three decades now. The firm is managed by Mr. Manilal Harilal Patel
with other family members. Mr. Manilal Harilal Patel is qualified
graduate and has three decades of experience in the trading of wood
and teak industry. Due to long term presence in the market, the
partners have developed good relations with suppliers and
customers.
* Stable demand for timber industry: India imports of industrial
wood have grown threefold during the last 10 years, comprising
mainly tropical logs from ITTO (International Tropical Timber
Organization) producer countries. However, log imports of around 2
million m3 annually still account for only a small share India is
the second-largest importer of tropical logs in the world. At any
given time, around 30% of all tropical logs in trade are destined
for India. Import of logs represents over 74% of the total imports
of forest products in the country. Among the reasons for importing
logs into India are the simple and cost-effective 23,000-odd saw
mills in the country, 98% of which are small units with an annual
log intake of only 3,000 cubic meters. The total production
capacity is estimated at around 27.12 million cubic meters per
annum. India is expected to become the third largest construction
market in the world by the year 2025, when 11.5 million new houses
a year are expected to be added making it US$ 0.93 trillion a year
market in the year 2025.
Sri Ganesh Timber Traders (SGTT) was established in 1982 as a
partnership firm by Mr Manilal Harilal Patel, Mr Dinesh Harilal
Patel along with family members. The firm is engaged in trading
(wholesale and retail) of wood and teak products from past 30
years. The firm imports majority of the timber wood from the
suppliers located in the international markets like Indonesia,
Malaysia, Europe, America and Africa. The firm sells the products
to customers located in Kerala, Tamil Nadu, Delhi, Mumbai, Andhra
Pradesh and Telangana.
GOPISH PHARMA: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gopish
Pharma Limited (GPL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/Short 0.50 CARE D; ISSUER NOT COOPERATING
Term Bank Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category
Short Term Bank 2.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 22, 2019, placed the
ratings of GPL under the 'issuer non-cooperating' category as GPL
had failed to provide information for monitoring of the rating. GPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated November 18, 2020, November 06, 2020. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on October 22, 2019, the following were
the rating weaknesses:
Key Rating Weaknesses
* On-going delay in debt servicing: The ratings take into account
the ongoing delays by GPL in servicing of its debt obligations due
to stressed liquidity position.
GPL is a closely held public limited company incorporated in 1995.
The company was originally incorporated as a private limited
company and its constitution was changed in 1996. The present
directors of the company include Mr. Ravi Prakash Goyal, Mr. Ratish
Goyal and Ms. Santosh Goyal. GPL is engaged in manufacturing of
generic drugs at its manufacturing facility located in Solan,
Himachal Pradesh. The main raw material of the company includes
chemicals and packing material which are procured from various
domestic manufacturers and traders. The group companies of GPL
include Gopish Foils and Gopish Pharma which are engaged into the
business of specialised packaging products and manufacturing of
injections respectively.
HARSO STEELS: CARE Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Harso
Steels Private Limited continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.82 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 11.18 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 22, 2019 placed the
ratings of Harso Steels Private Limited under the 'issuer
non-cooperating' category as Harso Steels Private Limited had
failed to provide information for monitoring of the rating. Harso
Steels Private Limited continues to be non-cooperative despite
repeated requests for submission of information through e-mails,
phone calls and a letter/email dated November 06, 2020, November
10, 2020. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating. Further banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating on October 22, 2019 the following were
the rating weakness:
The rating takes into account the On-going delays in debt servicing
due to stressed liquidity position.
Harso Steels Private Limited (HSPL) was incorporated in 1986 and
started its commercial operation in 1993. The company is currently
being managed by Mr. Rakesh Kumar Bansal, Mr. Vikas Bansal and Mr.
Adesh Tyagi. The company is engaged in manufacturing of steel
tubes. PVC pipes, steel structure and bottom lid. The main raw
material is steel which the company procures solely from Steel
Authority of India Limited (SAIL). HSPL sells its products
domestically to wholesalers and construction companies. The company
has an associate concern named Rama Steel Tubes Limited which is
engaged in manufacturing and exporting of steel pipes, steel tubes,
steel pipes fittings, steel tubes fittings, PVC pipes, PVC tubes,
steel pipes etc.
ICICI BANK: Fitch Affirms 'BB+' LT IDR, Outlook Negative
--------------------------------------------------------
Fitch Ratings has affirmed India-based ICICI Bank's Long-Term
Issuer Default Rating (IDR) at 'BB+'. The Outlook is Negative. The
agency also affirmed ICICI's Viability Rating (VR) at 'bb', Support
Rating Floor (SRF) at 'BB+' and Support Rating (SR) at '3'.
The Negative Outlook on the IDR mirrors the Outlook on India's
'BBB-' sovereign rating, which was revised to Negative from Stable
on 18 June 2020 due to the impact of the escalating coronavirus
pandemic on India's economy.
The operating environment for Indian banks remains challenging
despite a moderate revival in economic activity due to gradual
easing of the lockdown since May 2020. Fitch revised India's fiscal
year ending March 2021 (FY21) real GDP to -10.5% from -5% in
September 2020, but expects India's real GDP to rebound to 11% in
FY22, largely as a result of the low base. The economic contraction
is likely to result in protracted weakness in the asset-quality
cycle, which could potentially manifest itself significantly in
higher stressed loans and, ultimately, more write-offs over the
next few years, even though Indian banks' latest 2QFY21 earnings
present a more benign picture.
Fitch believes a speedy economic recovery is critical for the
sector to rebound meaningfully, even though Fitch expects to see a
moderately worse landscape for the Indian banking sector in 2021 on
weak prospects for new business and revenue generation.
Indian banks reported impaired loan ratios are yet to reflect the
underlying stress on asset quality because of regulatory measures
that have precluded timely recognition of stress. However, Fitch
believes that private banks with stronger loss-absorption buffers
will be in a better position to benefit from the economic recovery
against state-owned counterparts, which are generally burdened with
greater balance sheet challenges and weaker loss-absorption
buffers.
KEY RATING DRIVERS
IDR, SUPPORT RATING AND SUPPORT RATING FLOOR
ICICI's IDR is driven by its SRF of 'BB+' and SR of '3'. The SRF is
higher than the VR and reflects moderate likelihood of
extraordinary state support to ICICI, if required, due to the
bank's systemic importance (6.4% of sector loans and 5.8% of
deposits). However, Fitch views the likelihood of state support for
ICICI to be lower than that for the large state banks (with SRFs of
BBB-) due to its private ownership.
Fitch believes government-owned banks will have priority in terms
of timeliness of government support because of India's constrained
finances and many of these banks are systemically important and
have weak capitalisation. Nevertheless, the state has had a record
of supporting systemically important banks, which Fitch views ICICI
to be, although ICICI has not required support in the past. The
rescue of Yes Bank in March 2020, which is a mid-sized
private-sector bank, reinforces its view.
The Negative Outlook on the IDR reflects the Outlook on India's
sovereign rating (BBB-/Negative).
VIABILITY RATING
ICICI's VR reflects a moderate degree of fundamental financial
strength. However, Fitch views ICICI's VR to be comparatively more
stable considering that capitalisation has been bolstered
significantly by the INR 150 billion (202bp of 1HFY21 risk-weighted
assets (RWA)) in fresh equity raised in August 2020. The VR,
however, factors in the risks to ICICI's asset quality due to the
economic slowdown, and also captures the adequate franchise and
stable funding despite a challenging environment. Fitch views ICICI
as better positioned than state banks to accelerate market share
gains when a sustained recovery gets underway.
ICICI's standalone common equity Tier 1 ratio (CET1) increased to
15.7% by end-1HFY21, from 13.4% at FYE20. The ratio is sufficiently
above (370bp) Fitch's minimum 'bb' threshold, but well above
(770bp) the prescribed regulatory minimum of 8% applicable for
banks from April 2021. Fitch believes that ICICI's core
capitalisation has the capacity to withstand moderate shocks, but
it can be somewhat vulnerable to heightened stress, although its
low net impaired loans/CET1 ratio of 6.2% does provide good
headroom. ICICI's core capitalisation has been more stable over the
years than peers despite heightened stress, due to both better
capital fungibility and access to equity capital market. ICICI also
has a satisfactory record in generating capital through sale of
stakes in its profitable subsidiaries and capital repatriation from
its overseas subsidiaries.
Fitch has a stable outlook on capitalisation, which is also in sync
with management's own intent to conserve capital in the near term.
It is an important factor behind the stability of the VR.
The impaired loan ratio showed further improvement (1HFY21: 5.7%
standalone, FYE20: 6.1%), while loan-loss coverage improved to
81.6% by end-1HFY21 against 75.6% at FYE20. In addition, ICICI's
pre-emptive coronavirus-related provisions were the highest among
Fitch-rated banks at 1.2% of loans, which if adjusted will take
loan-loss coverage to nearly 104%. ICICI has also made additional
provisions of 0.4% of loans towards non-funded exposures to
non-performing loans and contingencies. These contingency
provisions could translate in early recognition and provisioning
towards stress, which would be a positive and in line with
management's focus on preserving balance sheet strength over growth
in the near term. Fitch expects asset quality to weaken and
loan-loss coverage to come under some pressure, but the bank's
contingency buffers should soften the blow.
Fitch believes that SME loans (1HFY21: 3.6% of standalone loans)
are most vulnerable although some degree of imminent stress may
have been averted due to lending under the government-sponsored
relief programmes. Slippages are also likely in the retail segment
(66% of standalone loans) although secured categories, such as home
loans (1HFY21: 49% of retail loans) and auto loans (14%), should be
more resilient. Fitch also expects heightened stress in corporate
sectors such as tourism, real estate (funded exposure: 3.4% of
standalone loans), infrastructure (7.0%) and auto (1.3%). Loans to
non-bank financial institutions increased to 7.3% of standalone
loans by end-1HFY21, an increase of 26% on FYE20, although Fitch
believes that inherent risks are largely mitigated by its focus on
creditworthy government and large corporate-backed entities. The
percentage shares of the different loan segments have been computed
as a percentage of standalone total loans for comparison purposes
since Fitch is assuming that bulk of the loans are in the
standalone bank.
ICICI's standalone operating profit/RWA declined by around 50bp to
1.4% by end-1HFY21 (FYE20: 1.9%) as higher provisioning due to the
pandemic and lower net interest margin more than offset the decline
in operational expenses. However, overall profitability (return on
average assets: 1.2% 1HFY21; 0.8% FY20) improved because of gains
on sale of stakes in insurance subsidiaries (1HFY21: 0.8% of RWA).
The bank's pre-impairment profit of 4.7% of loans offered
satisfactory cushion against loan impairment charges of 3.1% at
1HFYE21. However, Fitch expects provisions to normalise going
forward since the bank's COVID-19 related provisions are among the
highest in the sector.
ICICI's VR also factors in the large franchise, particularly in
retail, and the generally stable funding and liquidity profile,
with the loans/customer deposits ratio of 82% (standalone) at
end-1HFY21 and low-cost deposit ratio of 44%. Funding is
confidence-sensitive for India's private banks. Even so, ICICI's
funding costs have remained competitive, including in times of
stress. ICICI's higher-than-system deposit growth (1HFY21: 11.9%
standalone) is positive, despite the failure of rescued Yes Bank.
SENIOR DEBT
ICICI's senior debt rating is at the same level as the IDR, as the
debt represents unsecured and unsubordinated obligations.
RATING SENSITIVITIES
IDRS, SUPPORT RATING, SUPPORT RATING FLOOR AND SENIOR DEBT
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
Fitch would downgrade the Support Rating and SRF, and the bank's
IDRs if Fitch believes that the sovereign's ability to support the
bank has weakened, which could be the case if the sovereign rating
was downgraded. The IDRs could also come under pressure if in
Fitch's opinion, there is a decline in state's propensity to
support the bank even if India's sovereign rating were to remain
unchanged, although that is not its base case. There is limited
downside risk to the IDRs in the event of a VR downgrade so long as
the SRF remains unchanged, implying that its assessment of the
sovereign's ability and propensity to support the bank remains
intact.
The senior debt ratings would be downgraded if the bank's Long-Term
IDR was downgraded.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
A revision of the sovereign rating Outlook to Stable would lead to
a corresponding revision of the Outlook on the Long-Term IDR,
provided the sovereign's propensity to extend support remains
unchanged. A sovereign rating upgrade, which appears unlikely in
the near term, would not lead to an upgrade in ICICI's IDRs unless
it coincided with a strengthening of the sovereign's ability and
more importantly, propensity to support the bank, in Fitch's view.
An upgrade of ICICI's VR beyond its SRF would lead to its Long-Term
IDR being aligned with its VR. However, Fitch views such an upgrade
as highly unlikely in the near-term given the weak operating
environment and pressure on financial profiles.
The senior debt ratings are sensitive to changes in the Long-Term
IDR, and would be upgraded if the bank's Long-Term IDR was
upgraded.
VIABILITY RATING
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
ICICI's VR could be downgraded if the economic environment
deteriorates significantly beyond its expectations. Under this
scenario, the operating environment score could constrain the VR,
if Fitch believes that a significantly worse operating environment
would have a material impact on its assessment of most financial
profile factors.
The VR is most sensitive to changes in ICICI's asset quality, which
could impact both profitability and capitalisation, although
capital headroom has improved due to enhanced capital buffers.
Nonetheless, the VR would be under pressure if the stressed asset
(impaired loans + restructured loans) ratio was to approach 10%
(from 5.7% impaired loan ratio at end-1HFY21) or the CET1 ratio
dipped closer to or below 12% on a sustained basis. Fitch may also
review the bank's VR if the bank faced significant deposit outflow
in a weakening operating environment, which would be evident in a
liquidity coverage ratio below 100% or a sharp jump in the
loans/customer deposits ratio, although Fitch does not view this as
a high risk in the near term.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
ICICI's VR is more stable than at the time of its previous rating
action but it is somewhat constrained by the operating environment,
which is on a negative outlook. An upgrade to the VR is therefore
less likely considering that the downside risks (of a higher stress
than Fitch expects) to the bank's intrinsic risk profile still
prevail. However, in the event of a more stable, if not improving
environment, a VR upgrade could be considered if the bank
demonstrates a steady improvement in its impaired loan ratio to
well below 5% (from 5.7% impaired loan ratio at end-1HFY21) while
ensuring stable core capitalisation and earnings generation at or
above current levels on a sustained basis.
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
ICICI Bank has an ESG Relevance Score of 4 for Financial
Transparency. It reflects its assessment of the quality and
frequency of financial reporting and the auditing process, which
has a moderate but negative influence on the credit profile, and is
relevant to the rating in conjunction with other factors. These
factors have become more prominent in the past few years although
ICICI has not reported any significant impaired loans divergence
since FY16 and has also managed to successfully isolate the bank
from the reputation risk posed by whistle-blower allegations of
related-party lending on the bank's previous MD in 2018.
Nonetheless, government and regulatory pandemic-related relief
measures pose a risk for the transparent recognition of impaired
loans, although Fitch expects ICICI to be reasonably better placed
among peers. Still, financial transparency is viewed as pivotal for
general business and depositor confidence and can lead to
significant reputational risk if not managed well.
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.
INDO ENTERPRISES: CARE Reaffirms D Rating on INR15.96cr Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Indo
Enterprises Private Limited (IEPL) as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 15.96 CARE D Reaffirmed
Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of IEPL takes into
consideration the delay in debt servicing due to stretched
liquidity position. The rating however, continues to derive
strength from long track record of operations and experienced
promoters.
Rating Sensitivities
Positive Factors
* Timely repay its debt obligations and establish clear repayment
track record of the company
* Improvement in liquidity position
Detailed description of the key rating drivers
Key Rating Weaknesses
* On-going delays in debt servicing: As per banker interaction and
bank statements received for the term loan account for the period
April 1, 2020 to August 31, 2020, there have been ongoing delays in
debt servicing in term loan account and the account has been
classified as SMA1 due to stretched liquidity position.
Key rating strengths
* Long track record of operations and experienced promoters: IEPL
was incorporated in the year 1993 by Desmukh family. The directors
of the company are having more than two decades of experience in
the printing and advertisement industry. Over the years of their
presence, they have established strong relations with the customers
and suppliers. The directors are supported by experienced
management team to carry out day to day activities.
Incorporated in April 1993, Indo Enterprises Private Limited (IEPL)
was founded by Late Mr. Vilasrao Deshmukh, and currently run by
Deshmukh family. IEPL derives, revenue from varied sources i.e.
operating printing press, providing print media advertisement
services and rental income. IEPL has printing press located at
Latur having an installed capacity of 15000 newspapers per day. It
prints and sells regional newspaper (Marathi) namely “Purogami
Vicharache Dainik Ekmat” across Aurangabad, Marathwada, Solapur,
Usmanabad and Latur region. Further advertisement revenue is
generated through local orders received. IEPL has leased out one
property at Aurangabad to PVR Limited.
ISWARYA TEXTILES: Ind-Ra Assigns 'BB-' LongTerm Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sree Iswarya
Textiles Private Limited (SITPL) a Long-Term Issuer Rating of 'IND
BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR270.0 mil. Term loan due on October 2024 assigned with
IND BB-/Stable rating;
-- INR30.0 mil. Fund-based working capital limits assigned with
IND BB-/Stable/IND A4+ rating; and
-- INR150.0 mil. Non-fund-based working capital limits assigned
with IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect SITPL's medium scale of operations as indicated
by revenue of INR754.6 million in FY20 (FY19: INR752.0 million).
The revenue grew at a CAGR of 6% over FY17-FY20 due to an increase
in orders. FY20 financials are provisional in nature. The company
recorded a revenue of INR214.9 million in 1HFY21.
Despite stable revenue, the firm's EBITDA margin, although strong,
contracted to 33.04% in FY20 (FY19: 35.3%), due to an increase in
raw material price to INR500 million (INR450 million). The margin
is vulnerable to cotton price fluctuations. The company's return on
capital employed was 34% in FY20 (FY19: 29%). The EBITDA margin is
strong due to windmill income of INR140.0 million from SITPL's
sister concern Sri Jayajothi Textiles Mills Pvt. Ltd.
Liquidity Indicator- Poor: The company's fund-based facilities were
fully utilized during the 12 months ended October 2020, owing to
the working capital-intensive nature of the business. Its cash flow
from operations improved to negative INR10.56 million in FY20
(FY19: negative INR145.4 million), due to favorable changes in
working capital. SITPL's working capital cycle remained negative at
80 days in FY20 (FY19: negative 80 days). The company had a cash
balance of INR2.962 million at FYE20. It has scheduled debt
repayments of INR47.902 million during FY21. SITPL had provided a
corporate guarantee to Sri Jayajothi Textiles' INR300 million term
loan, which has been repaid.
The ratings are also constrained by the cyclical and fragmented
nature of the spinning industry and intense competition among
domestic spinners.
However, the ratings are supported by SITPL's comfortable credit
metrics. Its interest coverage (operating EBITDA/gross interest
expense) deteriorated to 2.2x in FY20 (FY19: 2.37x) due to a
decline in operating EBITDA to INR249.3 million (INR265.5 million).
However, its net leverage (total adjusted net debt/operating
EBITDA), improved to 1.28x in FY20 (FY19: 1.35x), due to a decrease
in the total debt to INR321.8 million (INR370.3 million). Ind-Ra
expects SITPL's credit metrics to remain comfortable in the
short-to-medium term on the back of scheduled repayment of term
loans and absence of any debt-led capex.
The ratings also benefit from the promoters' over four decades of
experience in the manufacturing of cotton yarn, leading in
established relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: A decline in the scale of operation, leading to
deterioration in the credit metrics and/or deterioration in the
liquidity profile, all on a sustained basis, will be negative for
the ratings.
Positive: An improvement in the scale of operation and/or
improvement in liquidity profile, leading to an improvement in the
credit metrics, all on a sustained basis, will be positive for the
ratings.
COMPANY PROFILE
SITPL, established in 1996, manufactures cotton yarn and generates
electricity. Its day-to-day operations are managed by Sethurama
Murugan.
J K INTERNATIONAL: CARE Cuts Rating on INR9.37cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of J K
International - Jalandhar, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank 9.37 CARE D Revised from CARE B+;
Facilities Stable
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of J K
International - Jalandhar takes into account of delays in the
servicing of debt obligation.
Detailed description of the key rating drivers
* Ongoing delays in the servicing of debt obligation: There have
been delays in the servicing of term debt obligation in the month
of September-20 and October-20. The firm availed the moratorium
period (from March 2020 to August 2020) offered by RBI in light of
Covid-19 for its interest and principal repayment of term debt
obligation and for interest payment on cash credit limit.
J K International - Jalandhar was established as partnership
concern in 2006. The firm is currently being managed by Mr.
Bikramjit Singh Kang and Mr. Sarjit Singh Kang as its partners. JKI
is engaged in manufacturing of Toughened, laminated, Insulating &
Bullet Proof Glass at its manufacturing facility located in
Jalandhar, Punjab having an installed capacity of 61,15,200 square
ft. per annum. The firm caters to architectural and automotive
glass industry.
LAKSHMI SARASWATHI: CRISIL Withdraws B- Rating on INR5cr Loan
-------------------------------------------------------------
CRISIL has withdrawn the ratings on certain bank facilities of Sri
Lakshmi Saraswathi Textiles (Arni) Limited (SLST), as:
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 3.5 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Cash Credit 5 CRISIL B-/Stable (Migrated from
'CRISIL B-/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Letter of Credit 2 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Packing Credit 2 CRISIL A4 (Migrated from
'CRISIL A4 ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Proposed Long Term 17 CRISIL B-/Stable (Migrated from
Bank Loan Facility 'CRISIL B-/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Due to inadequate information and in line with Securities and
Exchange Board of India guidelines, CRISIL had migrated its ratings
on the bank facilities of SLST to 'CRISIL B-/Stable/CRISIL A4
Issuer Not Cooperating'. However, the management has subsequently
sharing requisite information, necessary for carrying out a
comprehensive review of the rating. Consequently CRISIL is
migrating the ratings on the bank faculties of SLST to 'CRISIL
B-/Stable/CRISIL A4' from 'CRISIL B-/Stable/CRISIL A4 Issuer Not
Cooperating' and subsequently withdrawn the ratings at the
company's request and on receipt of a no-objection certificate from
the bankers. The withdrawal is in line with CRISIL's policy on
withdrawal of bank loan ratings.
SLST was incorporated in 1964 by the late Mr. B Rajagopal Naidu and
his son, the late Mr. R Srihari. The company has a spinning unit in
Arni, Thiruvanamalai (Tamil Nadu). The operations are managed by
Mr. Balakrishna S (Managing Director), and Mr. R Padmanaban (Joint
Managing Director).
LAXMI TIMBERS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Laxmi Timbers
Private Limited (SLTPL) continue to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 35 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 2.7 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.3 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SLTPL 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 SLTPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SLTPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SLTPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
SLTPL was incorporated in 2010 by Mr. Dinesh Patel and his wife
Mrs. Kalpana Patel. The company is engaged in trading of timber,
majorly teak wood. The company is based of Pondicherry.
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 15.0 CRISIL D (ISSUER NOT
Bank Loan Facility 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.
P C GLOBAL: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of P C Global
Merchandising Private Limited (PCG; part of the Plaza group)
continue to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 6.42 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 2.58 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with PCG 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 PCG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PCG is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PCG
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PCG and Plaza Computers (PC). This is
because the two entities, together referred to as the Plaza group,
are in the same business, and have a common management team and
marketing network.
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.
PRAKASAM HEAVY: CRISIL Keeps D on INR27cr Loans in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Prakasam Heavy
Engineering Private Limited (PHEPL) continue to be 'CRISIL D/CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 22.5 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PHEPL 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 PHEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PHEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PHEPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Established in February 2010, PHEPL is promoted by Mr Anil Kumar
and his family members. The company started operations as an
electrode manufacturer but subsequently became an electrical
contractor for carrying out projects for various state governments
and local authorities.
RAGHAV COTSPIN: CRISIL Keeps D on INR30cr Loans 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.
RAJASTHAN FASTENERS: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rajasthan Fasteners
Private Limited (RFPL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee .25 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 2.00 CRISIL D (ISSUER NOT
COOPERATING)
Foreign Bill 3.00 CRISIL D (ISSUER NOT
Purchase COOPERATING)
Foreign Letter 0.3 CRISIL D (ISSUER NOT
of Credit COOPERATING)
Packing Credit 8 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RFPL 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 RFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RFPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
RFPL, incorporated on 1998 and based in Jaipur, manufactures
slotted dowell spring pins, disc springs, spiral coiled springs,
and other products used in motor vehicles and their engines. The
company's directors are Mr Neelmani Jain, Mr Prasann Mal Lodha, and
Mr Binod Kumar Jain.
RASANDIK AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rasandik Auto
Components Private Limited (RACPL) continue to be 'CRISIL D/CRISIL
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 1 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 3 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 19.93 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RACPL 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 RACPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RACPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RACPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in 2005, RACPL is primarily a manufacturer of motor
cycle frames used in TVS Motor Company Limited's (TVS') motor cycle
model, Apache. The company also manufactures other motor cycle
parts for Apache, Vevo and Jupiter models of TVS, apart from
four-wheeler components for Ashok Leyland.
RATHNA STORES: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rathna Stores (Firm)
(RSF; formally known as Rathna Stores Firm Purasa) continue to be
'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 2.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RSF 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 RSF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RSF is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RSF
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established in 2014 by Mr. P.S. Siva Kumar, RSPF trades in home
appliances and consumer durables. Located in Puraswalkam, Chennai,
the store is spread 60,000 sq. feet. The day to day operations of
RSF are currently managed by Mr. S Siva Shankar.
REDDIES TEXTILE: CARE Keeps D on INR30cr Loans in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Reddies
Textile Industries Private Limited continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 30.51 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated September 4, 2019, placed
the rating(s) of (RTIPL) (Erstwhile Badhri Spinning Mills Private
Limited) under the 'issuer non-cooperating' category as RTIPL had
failed to provide information for monitoring of the rating. RTIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated from January 2020 to November 2, 2020. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of the key rating drivers
At the time of last PR dated on September 4, 2019, the following
were the rating strengths and weaknesses:
Key Rating Weakness
* Delays in debt servicing due to subdued demand: The company has
been delaying in debt servicing (interest payments on cash credit
facility) due to working capital intensive nature of operations.
Further, the banker has confirmed that the account continues to be
an NPA.
* Losses incurred during FY18: The company has incurred net losses
of INR7.65 crore in FY18.
Key Rating Strengths
* Experienced promoters with track record for more than four
decades in the cotton industry: Mr B. Siva Reddy, director is a
post graduate and has more than 40 years of experience in the
spinning industry. Mr Badri VenkataReddy, director, has more than 4
years of experience in the field of cotton business. He is an
advocate by profession and worked with the companies engaged in
cotton manufacturing and trading business. Mrs Badri Laxmi Neeraja,
director, is a B.A graduate and working as a partner of associate
company engaged in cotton bales trading and has experience in real
estate business for more than 3 years. Mr T. Kishore, director, has
more than one decade experience in the textile industry under
operations and marketing department. Mr Sudhakar Vemuri, director,
has 4 years of experience in cotton industry.
Badhri Spinning, incorporated in the name of Badhri Infratech Pvt
Ltd, started its commercial operations from December 2012. The
company is engaged in cotton yarn spinning (with a capacity of
31,248 spindles) at its manufacturing facilities located at
Prakasam district, Andhra Pradesh. The key raw material being
cotton bales is procured from local suppliers. Badhri Spinning
sells the cotton yarn to dealers and traders based at Maharashtra,
Tamil Nadu, Telangana and Andhra Pradesh.
REGENCY LINX: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Regency Linx Exports
Private Limited (RLEPL) continue to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Foreign Documentary 12.6 CRISIL D (ISSUER NOT
Bills Purchase COOPERATING)
Packing Credit 11 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 0.4 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RLEPL for obtaining
information through letters and emails dated April 29, 2020 and
October 17, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RLEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RLEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RLEPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
RLEPL, set up in 2013 and based in Chennai, processes and exports
marine products. Operations are managed by Mr. Alagumuthu Raja.
RELIANCE CAPITAL: Defaults on Loans to HDFC, Axis Bank
------------------------------------------------------
Business Today reports that cash-strapped Reliance Capital has
defaulted on term loans of HDFC Ltd and Axis Bank as of October 31,
2020, the company said in a regulatory filing.
The company failed to make interest payment of INR4.77 crore to
HDFC and INR71 lakh to Axis Bank on October 31, Reliance Capital
disclosed in a filing to the Bombay Stock Exchange, Business Today
relays. However, there was no default in a principal amount from
these private lenders.
Business Today relates that the Anil Ambani-backed firm said the
delay in servicing debt was due to the company being barred from
selling off assets by Delhi and Bombay high courts as well as the
Debts Recovery Tribunal.
"The company is unable to proceed with asset monetisation resulting
in delay in debt servicing, due to prohibition on the company to
dispose of, alienate, encumber either directly or indirectly, or
otherwise part with the possession, of any assets except in the
ordinary course of business such as payment of salary and statutory
dues, pursuant to order dated November 20, 2019, passed by the
Delhi High Court, and orders dated December 3, 2019, and December
5, 2019, passed by the Debts Recovery Tribunal, Mumbai and order
dated Nov. 4, 2020, passed by the Bombay High Court," Reliance
Capital, as cited by Business Today, said.
Reliance Capital had borrowed INR523.98 crore from HDFC at an
interest rate of 10.60-13 per cent per annum for tenure between 6
months and 7 years, Business Today notes. It borrowed INR100.63
crore from Axis Bank at an interest rate of 8.25 per cent per annum
for 3-7 years.
The company's total outstanding borrowings from banks and financial
institutions stood at INR690 crore, which includes accrued interest
up to October 31, 2020, the report notes.
Meanwhile, Reliance Capital's total indebtedness including
short-term and long-term debt stood at INR20,077.14 crore as on
October 31, 2020, the report adds.
About Reliance Capital
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
ROJER MATHEW: CRISIL Keeps D on INR19cr Loans in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rojer Mathew and
Company (RMC) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 12 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RMC 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 RMC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RMC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RMC
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up as a partnership firm in Kochi (Kerala), RMC executes civil
contracts for Kerala Public Works Department. Operations of the
firm are managed by key partner, Mr. Rojer Mathew.
ROMEGA FOAM: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Romega Foam Private
Limited (RFPL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 2.5 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 1 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RFPL 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 RFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RFPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
RFPL, incorporated in 1994 by Mr. Ninan Verghese and Ms. Sheeba
Ninan, manufactures polyurethane foam, convoluted sheets,
polyurethane foam rolls, bonded foam, contour sheets, antistatic
foam etc. in its manufacturing facilities in Puducherry (Tamil
Nadu). All the products manufactured are customised for customers.
RUDRANEE INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rudranee
Infrastructure Limited (Rudranee) continue to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 40 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 109 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Cash 35 CRISIL D (ISSUER NOT
Credit Limit COOPERATING)
Proposed Letter 66 CRISIL D (ISSUER NOT
of Credit & COOPERATING)
Bank Guarantee
CRISIL has been consistently following up with Rudranee 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 Rudranee, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes that rating action on Rudranee is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of
Rudranee continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Rudranee was originally set up in 1993 as a partnership firm, which
was reconstituted as a public limited company in 2007. On June 30,
2011, Supreme Infrastructure India Ltd bought 51 per cent of
Rudranee's equity shares for Rs.180 million, thereby making
Rudranee its subsidiary. The companyexecutes projects in the roads,
irrigation, civil construction, and water management segments.
SANKAR COTTON: CRISIL Keeps D on INR13cr Credit in Not Cooperating
------------------------------------------------------------------
CRISIL said the rating on bank facilities of Sankar Cotton Traders-
Guntur (SCT) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with SCT 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 SCT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SCT is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SCT
continues to be 'CRISIL D Issuer not cooperating'.
SCT, established in 2014 as a partnership firm, is promoted by Mr.
Innamuri Bassavaiah and Ms. Innamuri Dhana Lakshmi. The firm, based
in Guntur, Andhra Pradesh, trades in cotton.
SARALA FOODS: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sarala Foods Private
Limited (SFPL) continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Packing Credit 9 CRISIL A4 (ISSUER NOT
COOPERATING)
Proposed Working 18 CRISIL B+/Stable (ISSUER NOT
Capital Facility COOPERATING)
CRISIL has been consistently following up with SFPL 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 SFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SFPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
SFPL was established in 2005 by Mr. Vinod Kumar Agarwal and is
based out of Kakinada (Andhra Pradesh). It is engaged in the
trading of agro food commodities like various varieties of sortex
rice, cashew nus and mung beans.
SCAN ENERGY: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Scan Energy and Power
Limited (SEPL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 59 CRISIL D (ISSUER NOT
COOPERATING)
Letter of Credit 7 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 80.83 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SEPL 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 SEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SEPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SEPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
SEPL, part of the Scan group promoted by Mr G S Agarwal and his
family, was incorporated in 2007. The company has set up a steel
billet and thermo-mechanically treated bar manufacturing unit with
capacities of 450 tonne per day (tpd) and 500 tpd, respectively in
the Mahboobnagar district of Telangana, around 60 kilometre from
Hyderabad.
SHAPE ENGINEERING: CARE Cuts Rating on INR10.50cr LT Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shape Engineering Co. Private Limited (SECPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.50 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable;
ISSUER NOT COOPERATING
Long Term/ 0.58 CARE C; Stable/CARE A4;
Short Term ISSUER NOT COOPERATING;
Bank Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable/CARE A4;
ISSUER NOT COOPERATING
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 1, 2019, placed the
rating(s) of SECPL under the 'issuer non-cooperating' category as
SECPL had failed to provide information for monitoring of the
rating. SECPL continues to be non-cooperative despite repeated
requests for submission of information through phone calls and
emails dated October 15, 2020 and October 13, 2020. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further,
banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised on account of non-availability of
information and no due diligence conducted with banker due to
non-cooperation by Shape Engineering Co. Private Limited with
CARE'S efforts to undertake a review of the rating outstanding.
CARE views information non-availability risk as a key factor in its
assessment of credit risk. The ratings take into account small and
declining scale of operations, concentrated though reputed customer
base, leveraged capital structure, elongated operating cycle and
weak debt coverage indicators. The rating is further constrained on
account of weak liquidity indicators and susceptibility to
volatility in prices of raw material. The rating, however, draws
comfort from experienced promoters and long track record of
operations and moderate profitability margins.
Detailed description of the key rating drivers
At the time of last rating on October 1, 2019, the following were
the rating weaknesses and strengths (Updated for the information
available from the Registrar of Companies):
Key Rating Weaknesses
* Small and declining scale of operations: The scale of operations
of the company continues to be small and stood declining for the
past three years, FY16-18. The TOI stood at INR8.29 crore in FY18
as against INR10.7 crore in FY17. Further, the GCA levels also
stood low at INR0.87 crore in FY18 as against INR1.05 crore in
FY17.
* Concentrated though reputed customer base: SECPL's business risk
profile continues to be supported by association with various
reputed customers like METSO India (P) Ltd., ARVOAS Energy India
(P) Ltd., TOSHIBA JSW Power Systems (P) Ltd., BHEL Ranipur, etc,
through its regular supply of quality products. Moreover, reputed
customer base ensures timely realization of receivables. However,
the revenue share from the four customers accounted for 82% share
of TOI in FY17. This exposes the company towards customer
concentration risk. Any change in procurement policy of this
customer may adversely impact the business of the company. This
also exposes the company's revenue growth and profitability to its
customer's future growth plans. Latest data is not available due to
non-cooperation by SECPL.
* Leveraged capital structure: The capital structure stood
leveraged as marked by overall gearing of 1.24x as on March 31,
2018 as against 0.71x as on March 31, 2017 owing to greater
reliance on external borrowings as against modest net worth base.
* Elongated operating cycle and Weak coverage indicators: The
operating cycle of the company elongated at 672 days during FY18 on
account of high inventory holding and high collection period. The
raw -material as well as finished goods are subjected to quality
checks and requisite approvals from the customer before processing
and dispatching which resulted in high inventory holding.
Furthermore, significant portion of inventory is blocked in work in
progress due to customization and approvals from the customers. All
these resulted into a high average inventory period of 558 days.
The collection period of the company also stood elongated at 198
days in FY18 on account of low bargaining powers with its customers
and it takes around 4-5 months in realization. The company receives
an average credit period of around 2-3 months resulted into average
creditors' period of 84 days for FY18. The coverage indicators
remained weak marked by total debt to GCA and interest coverage
ratio of 17.31x and 1.62x respectively for FY18 as against 10.49x
and 1.68x respectively for FY17. The deterioration in the coverage
indicators in on account of high debt levels and low profitability
levels resulting in lower GCA.
* Weak liquidity indicators: The liquidity indicators stood weak as
marked by current and quick ratios of 1.32x and 0.58x respectively
as on March 31, 2018 as against 1.19x and 0.56x respectively as on
March 31, 2017. Susceptible to volatility in the prices of raw
materials The main raw material used in production of plates and
pipes is iron. The raw material cost constituted ~60% of the total
cost of sales in FY17, thereby making profitability sensitive to
raw material prices mainly due to the reason that the major raw
material is commodity in nature and witness frequent price
fluctuations. The prices are driven by the international prices
which had been volatile in past. Thus any adverse change in the
prices of the raw material may affect the profitability margins of
the company.
Key Rating Strengths
* Experienced promoters and long track record of operations: The
promoters of the company are Shri Sudhir Kumar Jain and Shri
Saurabh Jain. Shri Sudhir Kumar Jain has been engaged in the
manufacturing business since 1984. Shri Saurabh Jain who has an
experience of one and a half decades looks after overall
functioning of the organization. Nevertheless, long experience of
the promoters in the manufacturing industry has led to establish
good relationships with the customers and suppliers.
* Moderate profitability margins: The products manufactured by the
company are technical in nature for which engineering skills and
precision designing is required. Due to the technical nature of the
job, the entry barriers are high and the company enjoys
comparatively low competition. The profitability margin continues
to be moderate as marked by PBILDT margin of 27.55% in FY18 as
against 24.27% in FY17. However, high depreciation and interest
cost restricted PAT margin at 0.64% in FY18 as against 1.74% in
FY17.
Uttarakhand based, Shape Engineering Compan (P) Ltd. (SECPL) was
established on November 09, 1984 as a private limited company and
is currently being managed by Mr. Shri Sudhir Kumar Jain and Mr.
Shri Suarabh Jain. The company is engaged in manufacturing of
turbine parts with its manufacturing unit located in Uttarakhand.
The company procures raw materials namely, M.S.Plates, Steel and
Iron Ingots from the domestic suppliers.
SHIVAM AUTOTECH: CARE Lowers Rating on INR431.74cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shivam Autotech Limited, as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 431.74 CARE D Revised from CARE BB;
Facilities Negative
Short Term Bank 40.00 CARE D Revised from CARE A4
Facilities
Detailed Rationale & Key Rating Drivers
The revision in the ratings assigned to the bank facilities of
Shivam Autotech Limited factors in stretched liquidity position of
the company and resultant delays in servicing of its debt
obligations.
Rating Sensitivities
Positive Factors
* Establishing track record of timely debt servicing of debt
obligations for a continuous period of 90 days
* Improvement in liquidity position of the company
Key Rating Weaknesses
* Delays in servicing of debt obligations: Due to disruption in the
operations owing to the outbreak of Covid-19 pandemic, liquidity
profile of the company weakened resulting in delays in debt
servicing. The company has declared its results for the quarter
and half year ended September 30, 2020 with total income reported
at INR133.66 Cr (Q1FY21: INR38.22 Cr). The company has reported net
profit of INR1.44 Cr in Q2FY21.
Liquidity: Poor
Liquidity position of the company is poor as evinced by its
inability to service its debt obligations in a timely manner. The
liquidity profile is delicately poised due to high working capital
utilization and poor liquidity position is also reflected from weak
current ratio which stood at 0.54x as on March 31, 2020. Prudent
working capital management would be crucial.
To tide over the uncertainty attached to the Covid-19 outbreak, the
company has taken the moratorium facility for its debt obligations,
which is in line with the Covid-19 regulatory package. As informed
to CARE, this is in the anticipation of the said approval from the
concerned lenders following the regulatory package by RBI; some of
the scheduled repayments were deferred by the company.
SAL, formerly known as Munjal Auto Components, commenced operations
in Sep-1999 as an autonomous wing of 'HERO' Group. Later in 2005,
the forging and machinery divisions were hived off and thus SAL was
incorporated in July 29, 2005. The company is engaged in
manufacturing of transmission gear & shafts, Precision Engineering
Components (PECs), etc. for two wheelers. SAL has four plants
located in Gurgaon, Haridwar, Bengaluru and Rohtak. In order to
reduce its costs, the Company has decided to close manufacturing
activities at its plant situated at Manesar Gurugram.
SHREENIDHI METALS: CARE Keeps D on INR6cr Loans in Not Cooperating
------------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shreenidhi
Metals Private Limited (SMPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.22 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated November 26, 2019, placed
the rating of SMPL under the 'issuer non-cooperating' category as
SMPL had failed to provide information for monitoring of the rating
for the rating exercise as agreed to in its Rating Agreement. SMPL
continues to be non-cooperative despite repeated requests for
submission of information through phone calls and emails dated May
13, 2020, May 18, 2020 and November 9, 2020. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
Detailed description of key rating drivers
At the time of last rating on November 26, 2019, the following was
the rating weakness:
Key Rating Weaknesses
* Ongoing delay in debt servicing: SMPL has been irregular in
servicing its debt obligation due to poor liquidity position of the
company.
Liquidity: Poor
Liquidity position of SMPL remained poor marked by below unity
current ratio of 0.96 times as on March 31, 2019 as against 1.25
times as on March 31, 2018. Further, operating cycle of SMPL
elongated to 109 days during FY19 as against 91 days during FY18
owing to increase in inventory period along with decrease in
creditors period during FY19. Unencumbered cash and bank balance
remained at INR0.02 crore as on March 31, 2020.
Vadodara (Gujarat) based Shreenidhi Metals Private Limited (SMPL)
was incorporated in 2013 as a private limited company and is run by
Ms. Sadhna Maloo and Ms. Nikita Jain. The company is engaged into
manufacturing of aluminum circles and sheets, which find its
application in utensils industry and power sector with installed
capacity of 1800 MT per annum as on March 31, 2018. Plant of the
company is located at Waghodia, Gujarat.
SONI SOYA: CARE Lowers Rating on INR12cr Loan to D
--------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Soni
Soya Products Limited (SSPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12 CARE D Revised from CARE BB+
Facilities and removed from Credit Watch
With Negative Implications
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilitates of SSPL
takes into account irregularity in debt servicing, over drawl in
account and delay in payment of major statutory dues cited by
statutory auditor vide their resignation letter from audit services
of SSPL uploaded on stock exchanges. CARE Ratings had earlier
placed rating on Credit Watch with negative implications owing
delay in publication of audited results for the year ended March
31, 2020 and resignation of chief financial officer. Publication of
audited results for year ended March 31, 2020 and half yearly
results of September 30, 2020 are still awaited.
Rating Sensitivities
Positive Factor
* Establishing clear debt repayment track record for consecutive
three months and track record of timely payment of statutory dues
while strengthening of internal control system.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Irregularities and overdrawls in debt servicing as cited vide
resignation letter of auditor: As per SSPL's letter to stock
exchange , the company has given intimation about the resignation
of its statutory auditor wherein the reasons for resignation, as
provided by statutory auditor to SSPL, mentions about
irregularities and overdrawls in loan account with bank and NBFCs
owing to its poor liquidity. In contrast, the company has submitted
declaration of no default vide its letter dated October 15, 2020.
The company had not paid its major income tax liability for the
financial year ended on March 31, 2019. Further, the company has
again not paid/short paid its income tax liability, TDS liability
and other outstanding for the year ended March 31, 2020 as cited by
the statutory auditor. Further, the auditor has also stated that
with above cited issues and lake of transactions, pending
litigations and liquidity crises during the current period creates
uncertainty into the affairs of the company which may affect the
going concern status of the entity as a part of reason for the
resignation of statutory auditor from his services.
Liquidity Analysis: Poor Liquidity
As per company's disclosure on the stock exchange, the statutory
auditor has mentioned about liquidity crises in the company during
current pandemic situation and irregularities and overdrawls with
bank and NBFCs. During the last rating action done on August 12,
2020, the banker had informed about the moratorium availed by the
company for interest payment towards its cash credit facility
starting March-2020 till August-2020.
Analytical approach: Consolidated
Consolidated financials of the company includes financials of Soni
Soya Products Limited (SSPL) and its subsidiary i.e. Soni Soya
Products LLC (SSP) (Holding 51%). SSPL is engaged in trading and
processing of organic and non GMO agricultural products while SSP
is engaged in providing warehousing services for US based customers
of SSPL. The company has prepared consolidated financials for SSPL
for the first time in FY19 including its subsidiary company namely
Soni Soya Products LLC (SSP).
Indore based (Madhya Pradesh) Soni Soya Products Limited (SSPL,
CIN: L51225MP2014PLC033203) was incorporated by Mr. Dilip Kumar
Soni. The company, however, was originally incorporated as “Soni
Soya Products Private Limited” on September 17, 2014.
Subsequently, the company was converted into Public Limited Company
on August 2, 2017 and name changed to Soni Soya Products Limited
(SSPL). The company got listed on SME NSE on April 12, 2018. The
company is primarily engaged in processing and trading of organic
as well as Non Genetically Modified Organism (non-GMO) and
agricultural products such as Soya, Maize, Wheat, and Flax seeds,
Mustard Oil, Rice, Pulses, Herb and Spices etc.
The company exports its product to Canada, Dubai, South Korea, Sri
Lanka and USA. Further, its subsidiary company namely Soni Soya
Products LLC was incorporated in June 15, 2018 and is engaged in
business of warehousing, selling and marketing of Soya and Soya
Products in USA as well as trading and processing of agro
products.
SOUTHERN AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Southern Auto
Products Co. (SAPC) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 6.5 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 2.5 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SAPC 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 SAPC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SAPC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SAPC
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Kerala-based SAPC is promoted by Mr. James Emmanuel and is engaged
in manufacturing of automobile spring leaf.
SOUTHERN HEALTH: CRISIL Keeps B+ on INR20cr Loans in NonCooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Southern Health Foods
Private Limited (SHFPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 14 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Term Loan 6 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SHFPL 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 SHFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SHFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SHFPL
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SHFPL was established in 2005 as a partnership firm, Southern Food
Specialties, by brothers Mr Syed Sajan and Mr Nazar. The firm was
reconstituted as a private limited company with the current name in
2012. It manufactures a wide variety of ready-to-cook health foods,
baby products, anti-diabetic products, and breakfast cereals, which
it markets under the brand Manna.
SRISURYA KNIT: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Srisurya Knit Wearss
(SKW) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.7 CRISIL D (ISSUER NOT
COOPERATING)
Export Packing 5.0 CRISIL D (ISSUER NOT
Credit COOPERATING)
Long Term Loan 1.18 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SKW 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 SKW, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SKW is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SKW
continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2008, Tirupur-based partnership firm, SKW is involved in
manufacture and export of ready-made garments. The firm has its
manufacturing facility in Tirupur and the operations are managed by
the partners, Mr. PS Selvaraju, and his sons, Mr. S Surya, and Mr.
Siddharth.
SUDALAGUNTA SUGARS: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sudalagunta Sugars
Limited (SSL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 15.05 CRISIL D (ISSUER NOT
COOPERATING)
Bill Discounting 10 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 92.5 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 46.17 CRISIL D (ISSUER NOT
COOPERATING)
SEFASU Loan 12.37 CRISIL D (ISSUER NOT
COOPERATING)
Warehouse 24.85 CRISIL D (ISSUER NOT
Financing COOPERATING)
Working Capital 3.34 CRISIL D (ISSUER NOT
Demand Loan COOPERATING)
CRISIL has been consistently following up with SSL 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 SSL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SSL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SSL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
SSL was incorporated in 1994 by Mr S Jayaram Chowdary. The company
manufactures white sugar, which it sells to dealers in the domestic
market. It also exports to the Gulf countries and Singapore.
SUPER INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Super Infratech
Private Limited (SIPL) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 8.74 CRISIL D (ISSUER NOT
COOPERATING)
Bill Discounting 4.90 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 1.90 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan .46 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SIPL 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 SIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SIPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in 2001, SIPL is promoted by Mr. Sujit Bardole and his
wife. It is engaged in civil construction for state and central
governments. The company develops and maintains roads.
SURAJ INDUSTRIES: CRISIL Keeps B+ on INR6cr Debt in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Suraj Industries -
Mantha (SI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SI 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 SI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SI is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SI
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2008, SI, a partnership firm based in Mantha, Jalna
(Maharashtra), gins and presses cotton. It has a manufacturing
capacity of 1000 quintals per day. The firm is promoted by the Garg
family from Sendhwa (Madhya Pradesh).
TALREJA TEXTILE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Talreja Textile
Industries Private Limited (TTIPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Export Packing 1.5 CRISIL A4 (ISSUER NOT
Credit COOPERATING)
Import Letter 1.25 CRISIL A4 (ISSUER NOT
of Credit Limit COOPERATING)
Long Term Loan .18 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .57 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with TTIPL 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 TTIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on TTIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of TTIPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
TTIPL, incorporated in 1980, manufactures fusible interlinings. Its
operations are managed by Mr. Ashok L Talreja and Mr Mukesh L
Talreja.
TORO PROCESSORS: CARE Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Toro
Processors India Private Limited (TPIPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE has been seeking information from TPIPL to monitor the rating
vide e-mail communications/letters dated October 5, 2020, October
9, 2020, October 13, 2020 and numerous phone calls. However,
despite CARE's repeated requests, the entity has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further, Toro
Processors India Private Limited has not paid the surveillance fees
for the rating exercise as agreed to in its Rating Agreement. The
rating on TPIPL's bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING. Further due diligence could not be
contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Detailed description of the key rating drivers
At the time of last rating in September 9, 2019 the following were
the rating strengths and weaknesses.
Key Rating Weaknesses
* Ongoing delay in debt servicing due to stressed liquidity
position: There was ongoing delay in term debt servicing of the
company.
TPIPL was incorporated in April 2011 for setting up a manufacturing
and fabrication of heavy steel aggregates plant. The commercial
operation of the company started in February 2017 and the plant is
located at Kharagpur, West Bengal with an installed capacity of
24000 metric tonnes per annum. The company caters to the
requirements of reputed clients like Indian Oil Corporation
Limited, Larsen and Toubro Limited, etc.
UMMED EDUCATIONAL: Ind-Ra Lowers Term Loan Rating to 'D'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ummed
Educational Foundation's (UEF) term loan to 'IND D (ISSUER NOT
COOPERATING)' from 'IND B (ISSUER NOT COOPERATING)' and has
simultaneously withdrawn the rating. The issuer did not participate
in the rating exercise despite continuous requests and follow-ups
by the agency. Thus, the rating is based on the best available
information.
The detailed rating action is:
-- INR96 mil. Term loan due on March 2025 downgraded and
withdrawn.
KEY RATING DRIVERS
The downgrade reflects delays its debt servicing by UEF during the
three months ended November 2020, due to a tight liquidity
position.
The company did not participate in the rating exercise, despite
continuous requests by the agency, and has not provided information
about the interim financial performance for FY20, sanctioned bank
facilities and utilization, business plan and projections for the
next three years, information on corporate governance and
management certificate.
Ind-Ra is no longer required to maintain the rating, as it 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.
COMPANY PROFILE
UEF was incorporated under Section 25 of the Companies Act, 2013,
in February 2014. Its school provides education from the
pre-primary level to the senior secondary level.
VENKATESWARA & COMPANY: CRISIL Keeps B Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Venkateswara &
Company - Tenkasi (SVC) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit .20 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Foreign Letter 21.00 CRISIL A4 (ISSUER NOT
of Credit COOPERATING)
Proposed Long Term 3.80 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SVC 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 SVC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SVC is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SVC
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
SVC processes (cuts and saws) and trades in wood logs. The firm
processes a variety of wood, including teak.
VHV BEVERAGES: CARE Keeps D on INR16cr Loans in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of VHV
Beverages Private Limited (VHV) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.00 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 16, 2019, placed the
ratings of VHV under the 'issuer non-cooperating' category as VHV
had failed to provide information for monitoring of the rating. VHV
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and an email
dated November 18, 2020, November 6, 2020. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Detailed description of the key rating drivers
At the time of last rating on October 16, 2019, the following were
the rating weaknesses:
Key Rating Weaknesses
* On-going delay in debt servicing: There have been delays in the
debt servicing due to stressed liquidity position.
Haryana-based VHV was incorporated in 2012 and currently being
managed by Mr Vinod Sehwag, Mrs Homi and Mrs Pooja Malhotra. The
company is engaged in the manufacturing of fruit beverages, soda
and mineral water. The main raw materials, ie, fruit pulp, along
with others like plastic caps, bottles, carbon dioxide are procured
from manufacturers based in Haryana region. The company is
currently selling the product pan India covering regions namely
Haryana, Rajasthan, Punjab, Uttar Pradesh and Delhi, Kerala,
Maharashtra, Gujarat and West Bengal through a dealer network under
the brand name "XALTA".
VIDEOCON INDUSTRIES: Creditors to Decide on Promoter's Offer
------------------------------------------------------------
Business Today reports that even as the Committee of Creditor (CoC)
is likely to decide within a week on Videocon Industries promoter
Venugopal Dhoot's offer of INR31,289 crore for withdrawal of
insolvency proceedings against 15 of his group companies, the
question that will remain in creditors' mind is how he would fund
this offer.
In an interaction with Business Today, Venugopal Dhoot said that
they plan to raise the money from monetisation of assets,
affordable housing, consumer electronics and home appliances
business.
"Videocon had over 15,000 retailers, over 30,000 direct and
indirect employees and over 20 crore customers using wide range of
products. In order to regain the image of the brand, market share,
growth and success story of Videocon, we have a robust business
plan," Business Today quotes Mr. Dhoot as saying.
Mr. Dhoot did not disclose in how many years the group companies
plan to pay back all the money.
Why is there an offer to pay the creditors now when the Videocon
Industries along with 14 other group companies are already under
insolvency proceedings? Why did he fail to make this offer earlier?
Mr. Dhoot said that the proposal under Section 12A is similar to
the one that was made in October 2017 and was approved by Joint
Lenders' Forum. It was then recommended to the Reserve Bank of
India (RBI), Business Today relates.
"As per our original proposal of October 2017, the total debt for
which restructuring was considered was for INR31,289 crore, that
is, full payment to the creditors," he says.
However, according to Mr. Dhoot, despite the joint lenders' forum
approving the proposal, the RBI referred the case to National
Company Law Tribunal (NCLT), the adjudicating authority under the
insolvency law. He further said that withdrawal provision under
Section 12A was not available in 2017, Business Today relays.
Section 12A provision was incorporated in the Insolvency and
Bankruptcy Code (IBC) in June 2018.
If the COC approves the withdrawal proposal under Section 12A of
the IBC, the promoters get to manage the company and service the
debt as per the submitted proposal, according to Business Today.
The lenders (CoC) will continue to hold all pledged shares and
approval from them is mandatory for sale/restructuring of any
asset, till such time all debts are not cleared.
When asked if he is confident that his proposal under Section 12A
will be acceptable to the CoC, Mr. Dhoot said that their proposal
is robust and outlines the capabilities of not only servicing the
debt but also regaining the lost glory of Videocon. "It is
explicitly placed that we have not sought any haircut from the
original accepted and recommended proposal of 2017," he reiterated,
Business Today relates.
However, a person close to the insolvency proceedings says that the
payment proposal made by the Dhoots spans 10-15 years. "Nobody
would take a payment plan spanning 10-15 years seriously," he says.
The person also said that there are five-six more bidders in the
race for Videocon group companies, and if the voting date is not
extended the result of the voting would be out within a week.
Section 12A of the IBC provides that the NCLT may allow the
withdrawal of insolvency proceedings against a corporate debtor if
the committee of creditors approves the same by 90 per cent voting
share, Business Today notes. Till September, 2020, a total of 291
insolvency proceedings have been withdrawn under section 12A of the
IBC. As many as 96 of these cases have been withdrawn after the
corporate debtor fully settled the payment of creditor which moved
the insolvency proceedings; 20 of them were withdrawn after the
defaulting company fully settled the dues of other creditors and 17
cases were withdrawn after the corporate debtor agreed to settle
all dues in future, according to Business Today.
As many as 15 Videocon Group companies are under insolvency and are
being jointly heard by the Mumbai bench of the NCLT, Business Today
states.
About Videocon Industries
Videocon Industries sells consumer products like color televisions,
washing machines, air conditioners, refrigerators, microwave ovens
and many other home appliances in India.
On June 6, 2018, National Company Law Tribunal (NCLT), Mumbai
bench, admitted a petition for initiating insolvency resolution
process against the company under the Insolvency and Bankruptcy
Code, 2016.
According to Videocon's FY17 annual report, the company is liable
to repay the liability of other group companies to the extent of
INR5,082 crore as on March 31, 2017. The company's total debt stood
at INR19,506 crore as of March 2017.
=========
J A P A N
=========
FURUKAWA ELECTRIC: Egan-Jones Cuts Senior Unsecured Ratings to BB+
------------------------------------------------------------------
Egan-Jones Ratings Company, on December 4, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Furukawa Electric Company Limited to BB+ from BBB-.
Headquartered in Chiyoda City, Tokyo, Japan, Furukawa Electric Co.,
Ltd. manufactures wires, cables, and metal products.
KOBE STEEL: Egan-Jones Lowers Senior Unsecured Ratings to B-
------------------------------------------------------------
Egan-Jones Ratings Company, on December 3, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Kobe Steel Ltd to B- from B.
Headquartered in Kobe, Hyogo, Japan, Kobe Steel, Ltd. is a supplier
of aluminum and copper products including core products.
MAZDA MOTOR: Egan-Jones Lowers Senior Unsecured Ratings to BB+
--------------------------------------------------------------
Egan-Jones Ratings Company, on December 1, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Mazda Motor Corporation to BB+ from BBB.
Headquartered in Fuchu, Hiroshima, Japan, Mazda Motor Corporation
manufactures and sells automobiles, trucks, auto parts, and its
accessories.
SAPPORO HOLDINGS: Egan-Jones Cuts Senior Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on December 4, 2020, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Sapporo Holdings Limited to BB+ from BBB-.
Headquartered in Japan, Sapporo Holdings Limited produces and sells
alcoholic and non-alcoholic beverages.
=====================
N E W Z E A L A N D
=====================
MARAC INSURANCE: Fitch Withdraws BB+ Insurer Fin. Strength Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed MARAC Insurance Limited's (MIL) Insurer
Financial Strength Rating of 'BB+' with a Stable Outlook and
simultaneously withdrawn the rating.
Fitch has chosen to withdraw MIL's rating due to commercial
reasons.
KEY RATING DRIVERS
The rating reflects MIL's business profile, which Fitch ranks as
'Least Favourable' against other insurers in New Zealand given its
run-off status. The insurer stopped underwriting new policies after
ending the distribution agreement with its parent, Heartland Bank
Limited (HBL, BBB/Stable), in January 2020. MIL wrote only two
products, one each in the life and non-life segments, which were
distributed exclusively by HBL in conjunction with vehicle
financing originated by the bank. Fitch believes HBL will
facilitate an orderly and effective run-off of MIL's existing
insured portfolio.
MIL's capitalisation, as measured by Fitch's Prism model score, was
'Extremely Strong' at the end of the financial year to June 2020
while its regulatory solvency ratio was 129%, above the regulatory
minimum of 100%.
RATING SENSITIVITIES
Sensitivities are no longer relevant given the rating withdrawal.
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.
VIJAY HOLDINGS: Investors Asked for Cash to Prevent Mortgagee Sale
------------------------------------------------------------------
Rob Stock at Stuff.co.nz reports that investors facing big losses
in the troubled Nido store syndicate have been asked to tip in
NZD2.25 million more by December 16 to prevent a mortgagee sale.
A further NZD5 million of capital would need to be raised by
February 28, property syndicator Maat Group told investors, Stuff
relays.
Stuff says property investors, including many retirees, sank about
NZD35 million into a syndicate to build the giant
27,000-square-metre furniture and homeware store in Henderson, West
Auckland. They are expecting to make heavy losses after
construction company Vijay Holdings and tenant Magsons Hardware
(trading as Nido) went bust.
Nido went into receivership on December 4 after failing to fulfil
its founder's dream of becoming the South Pacific's answer to Ikea.
Investors hope Sweden-founded Ikea will make an offer for the giant
retail site.
Prospective tenants were being sought and interest had been
"encouraging", Maat Group told investors.
But the lender Pearlfisher, which had provided NZD28 million of
development funding, planned to force a mortgagee sale unless some
of the money was paid back quickly, according to Stuff.
Stuff relates that Maat Group said Pearlfisher had "made it clear
that it will sell the property as a mortgagee sale after 28
February 2021" unless it received NZD2.25 million by December 16
and a further NZD5 million by February 28.
One option was to sell the property in conjunction with
Pearlfisher, but the property might realise sufficient capital to
repay Pearlfisher only, and investors would receive "far less than
the value of their investment", Maat Group said, Stuff relays.
"The second option and, we believe the best outcome for investors,
is to not sell the building and take steps to re-tenant it and
restore value," it said.
"If that is the preferred approach of investors, it will require a
further injection of capital to repay Pearlfisher in whole or in
part.
"To be clear, either further capital is raised from current
investors . . . or Pearlfisher will sell the building from 28th
February [and] repay their debt [about NZD28 million] from the
proceeds. The balance after sales costs will be distributed to
investors."
More money would be needed later, Maat Group said, signalling some
would be funded by debt and some by another offer of shares.
"In addition, it is planned that further capital be raised to
refinance the balance of the Pearlfisher loan. This is expected to
be by way of debt and equity funding. Financing costs would be
significantly reduced further," investors were told.
Pearlfisher was currently earning interest of 16 per cent on the
NZD28 million loan, Maat Group, as cited by Stuff, said.
Since the liquidation of Vijay Holdings on November 6, Maat Group
had been working with Pearlfisher to re-engage contractors to
complete the building, and it now believed the store would be
finished by March 2021.
A buyer for the building seemed to have been found last month, but
they pulled out.
However, Maat Group said: "We can report that prospective tenants
have been identified and shown encouraging interest in the short
time since the search has been in process.
"We are aware, though, that it may be some time before leases are
in place for the new tenants and revenue is generated from the new
tenants. There will need to be holding costs payable by investors,
such as interest, insurance and rates."
The Nido concept was created by businessman Vinod Kumar.
Kumar was the sole director of the construction company Vijay
Holdings, which was developing the Nido store until it was put into
liquidation on November 6, Stuff notes.
Kumar, who was previously a Mitre 10 Mega franchise holder, was
also the sole director of Magsons Investments, which sold the land
to the syndicate. He was also the sole director of Magsons
Hardware, Stuff discloses.
=====================
S O U T H K O R E A
=====================
HANJIN INTERNATIONAL: S&P Affirms 'CCC+' ICR, Outlook Negative
--------------------------------------------------------------
On Dec. 9, 2020, S&P Global Ratings affirmed its 'CCC+' long-term
issuer credit rating on Hanjin International Corp.'s (HIC).
The negative outlook on HIC reflects the continued narrow buffer in
its financial metrics and its weak liquidity due to high debt and
weak cash flows.
S&P believes the proposed acquisition of Asiana Airlines Inc. by
Korean Air Lines Co. Ltd. (KAL), HIC's parent, will improve KAL's
market position and scale. However, the impact on the group's
credit profile remains uncertain, given increased stress on airline
operations due to COVID-19, low visibility on business
consolidation and synergies, and Asiana's weaker credit profile.
S&P said, "We believe HIC's parent, KAL, will improve its market
position and scale through the acquisition of Asiana. If the deal
goes through, KAL will become the 11th-largest passenger carrier
and third-largest cargo carrier globally. In 2019, the market
shares for KAL's and Asiana's passenger business at the Incheon
International Airport were 19% and 14%, respectively, and their
market shares for cargo business were 30% and 18%, respectively. We
also see a higher likelihood that Korean policy banks, such as the
Korea Development Bank, would provide ongoing support to the KAL
group, given that the proposed merger is essentially driven by the
government."
That said, the airline industry is still suffering from
significantly reduced passenger travel volumes due to COVID-19,
with low visibility on the degree and timing of recovery. Moreover,
S&P believes meaningful synergies between the two airlines will
take time, considering their largely overlapping business profiles
and Asiana's weaker performance even before the outbreak. Asiana's
weaker cash flow generation and higher leverage could also weigh on
the consolidated entity.
S&P said, "We see sustained, albeit improving, liquidity pressure
at KAL and HIC over the next 12 months. We believe that without a
meaningful business recovery, both companies' high fixed charges
(interest and lease payments) will continue to strain their cash
balances. Nonetheless, KAL's liquidity is gradually improving,
supported by the better-than-expected performance of its cargo
business, asset sales, and its Korean won (KRW) 1.1 trillion equity
raising in July 2020. KAL plans to raise KRW2.5 trillion of equity
early next year to fund the acquisition (around KRW1.8 trillion)
and for debt repayments. More importantly, we view the various
transactions between Korea's policy banks and the broader KAL group
in 2020 as evidence of their steady relationships, which would
provide some buffer against a liquidity crisis."
KAL will likely maintain control over HIC and continue to provide
various forms of support to the company. KAL recently sold its
noncore assets, including its in-flight duty-free shopping business
and marina bay facilities, to cope with ongoing cash flow pressure.
S&P said, "We believe KAL will focus on normalizing HIC's hotel
operations and the company's valuation, rather than selling the
asset in the near term, given that valuations have significantly
declined since the COVID-19 outbreak. We note that KAL provided a
full guarantee on HIC's debt in the past and extended about US$950
million of intercompany loans to HIC in September 2020 to address
its maturing debts."
S&P said, "We expect HIC to face cash flow challenges over the next
12 months due to its disrupted hotel operations and high debt
burden. The company's hotel business will likely run at a minimal
level until the containment of COVID-19 in the U.S. We estimate HIC
will have significant discretionary cash flow deficits over the
next two to three years. We forecast the company's EBITDA will be
negative US$30 million to negative US$15 million in 2020. EBITDA
should modestly recover to US$10 million-US$25 million in 2021-2022
as operations normalize and ramp up again." Still, this level of
earnings will not be sufficient to cover HIC's annual financing
costs over the next one to two years. The company's interest
payment in 2019 was US$45.5 million.
The negative outlook on HIC reflects the continued narrow buffer in
its financial metrics and its weak liquidity due to high debt and
weak cash flows. Although HIC benefits from ongoing support from
parent KAL and the competitive location of its new hotel, the
company's very high leverage weighs on its liquidity and credit
metrics. Furthermore, high uncertainty remains over the recovery
prospects of the hotel industry from COVID-19 disruptions in the
U.S.
S&P said, "We may lower the rating if HIC faces further liquidity
strain as a result of office rentals, hotel room rates, occupancy
rates, and expense control that are weaker than we expect. We could
also downgrade HIC if we believe the likelihood of support from KAL
has weakened." This could happen if:
-- KAL's capital structure and liquidity deteriorate further,
potentially due to COVID-19 effects that are more prolonged and
worse than S&P expects; or
-- HIC's relationship with KAL weakens significantly.
S&P may revise the outlook to stable if:
-- HIC stabilizes its operations and improves its capital
structure by deleveraging and restructuring debt to lengthen
maturities, or
-- KAL completes the proposed acquisition of Asiana without any
significant detriment to its credit profile.
===============
X X X X X X X X
===============
[*] Developing Asia to Contract 0.4% in 2020, Grow by 6.8% in 2021
------------------------------------------------------------------
Economic activity in developing Asia is forecast to contract by
0.4% this year, before picking up to 6.8% in 2021 as the region
moves toward recovery from the effects of the coronavirus disease
(COVID-19) pandemic, according to a report released by the Asian
Development Bank (ADB) today.
The new growth forecast, presented in a regular supplement to the
Asian Development Outlook (ADO) 2020 Update, is an improvement from
the -0.7% gross domestic product (GDP) growth forecast in
September, while the outlook for 2021 remains unchanged. But
prospects are diverging within the region, with East Asia set to
grow this year while other subregions are contracting.
"The outlook for developing Asia is showing improvement. Growth
projections have been upgraded for the People's Republic of China
(PRC) and India, the region's two largest economies," said ADB
Chief Economist Yasuyuki Sawada. "A prolonged pandemic remains the
primary risk, but recent developments on the vaccine front are
tempering this. Safe, effective, and timely vaccine delivery in
developing economies will be critical to support the reopening of
economies and the recovery of growth in the region."
Pandemic-induced lockdowns and restrictions have been eased in
varying levels in the region, with merchandise exports rebounding
quickly from substantial declines in the second quarter. Mobility
is also returning to pre-COVID-19 levels in East Asia and the
Pacific, where the spread of COVID-19 has largely been contained or
prevented in recent months. A recovery in tourism, however, is
likely to be delayed.
Most of developing Asia's subregions are forecast to contract this
year. East Asia is the exception, with an upgraded growth forecast
of 1.6% for 2020 on the back of faster than expected recoveries in
the PRC and Taipei,China. East Asia's growth outlook for 2021 is
maintained at 7.0%.
South Asia's GDP is forecast to contract by 6.1% in 2020, revised
up from the 6.8% contraction expected in September. Growth in South
Asia is forecast to rebound to 7.2% in 2021. The growth forecast
for India, the subregion's largest economy, for fiscal year (FY)
2020 is raised to -8.0%, from the -9.0% projection in September,
while outlook for FY2021 is kept at 8.0%.
Economic growth in Southeast Asia remains under pressure as
COVID-19 outbreaks and containment measures continue, particularly
in Indonesia, Malaysia, and the Philippines. The subregion's growth
forecast for 2020 is revised down to -4.4% from -3.8% in September.
The subregion's outlook for 2021 is also downgraded, with Southeast
Asia now expected to grow 5.2% next year compared to the 5.5%
growth forecast in September.
The outlook for the Pacific is unchanged for both 2020 and 2021 at
-6.1% and 1.3%, respectively. Central Asia's growth forecast for
2020 remains at -2.1%, but outlook for 2021 is slightly downgraded
to 3.8% from the 3.9% growth projection in September.
Regional inflation is expected to marginally ease to 2.8% in 2020,
from the 2.9% projected in September, due to depressed demand and
low oil prices. Inflation for 2021 is forecast at 1.9%, down from
2.3% forecast in September. Oil prices are retained at $42.50 per
barrel in 2020 before increasing to $50.00 per barrel in 2021.
ADO, ADB's annual flagship economic publication, is published every
April, with an Update published in September and brief supplements
published normally in July and December. Developing Asia refers to
the 46 developing members of ADB.
ADB is committed to achieving a prosperous, inclusive, resilient,
and sustainable Asia and the Pacific, while sustaining its efforts
to eradicate extreme poverty. Established in 1966, it is owned by
68 members—49 from the region.
*********
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
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