/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210203.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 Wednesday, February 3, 2021, Vol. 24, No. 19 Headlines A U S T R A L I A ACN 151 368 124: First Creditors' Meeting Set for Feb. 10 C-TECH GLOBAL: Second Creditors' Meeting Set for Feb. 9 FXP INDUSTRIES: Second Creditors' Meeting Set for Feb. 9 TUCAN TRAVEL: Rodgers Reidy Appointed as Administrator C H I N A FARADAY FUTURE: Agrees to $3.4-Bil. Merger With Property Solutions HNA GROUP: 3 Listed Units Disclose Embezzlements of Nearly $10BB ZOOMLION HEAVY: Fitch Affirms Then Withdraws B+ IDR I N D I A ABHIRAJ ENGICON: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' ADKURE TECHNOLOGIES: Insolvency Resolution Process Case Summary AL MEHFOOZ: CRISIL Keeps B+ Debt Ratings in Not Cooperating AMRR MAHARAJA: CRISIL Keeps B+ Debt Ratings in Not Cooperating ANUGRAH STOCK: CRISIL Lowers Rating on INR25cr Loans to D BALAJI STEEL: CRISIL Keeps B+ Debt Rating in Not Cooperating BDR EDUCATIONAL: Ind-Ra Cuts & Reassigns Term Loan Rating to 'C' BEE KAY: CRISIL Keeps D Debt Ratings in Not Cooperating Category BHAGWAT PARDESHI: CRISIL Keeps D Debt Rating in Not Cooperating DIVYALAKSHMI TEXTILES: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating DOLPHIN OFFSHORE: CRISIL Keeps C Debt Ratings in Not Cooperating FASTLINK CONNECTIONS: CRISIL Cuts Rating on INR8cr Loans to B GAYATRI SILKS: CRISIL Lowers Rating on INR10cr Loans to B GEETANJALI SPICES: Ind-Ra Moves B- Issuer Rating to Non-Cooperating GEETANJALI VASTRALAYA: Ind-Ra Moves 'B+' Rating to Non-Cooperating GEETASHREE PULSES: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating GURUDEVA CHARITABLE: Ind-Ra Keeps D Loan Rating in Non-Cooperating INTERNATIONAL COMMERCE: Ind-Ra Keeps 'D' Rating in Non-Cooperating KRUPA SERVICES: CRISIL Lowers Rating on INR6.5cr Cash Loan to B KS BIGILI: CRISIL Keeps D Ratings in Not Cooperating Category LAXMI BALAJI: CRISIL Keeps B Debt Ratings in Not Cooperating LINERS INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating MUKAND SUMI: Ind-Ra Cuts & Migrates Long-Term Issuer Rating to 'BB' NALANDA ENGICON: Ind-Ra Moves BB Issuer Rating to Non-Cooperating O.P. ASSOCIATES: CRISIL Keeps B Debt Rating in Not Cooperating PARANTHAMAN TEXTILES: CRISIL Keeps D Rating in Not Cooperating PETRON ENGINEERING: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating PRASANNA ANJANEYA: CRISIL Keeps B Debt Rating in Not Cooperating PRAVEEN AROMA: Ind-Ra Cuts & Reassigns LT Issuer Rating to 'B+' PUNEET LABORATORIES: Ind-Ra Corrects Dec. 26, 2019 Rating Release PUNEET LABORATORIES: Ind-Ra Keeps 'D' Rating in Non-Cooperating R N BUILDERS: CRISIL Keeps B Debt Rating in Not Cooperating RAMI CHANDIDAS: CRISIL Keeps B Debt Ratings in Not Cooperating RR DEVELOPERS: CRISIL Keeps B+ Debt Rating in Not Cooperating RYATAR SAHAKARI: CRISIL Keeps B- Debt Ratings in Not Cooperating RYTHU DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating SAI POINT: CRISIL Raises Rating on INR12.5cr Loan to C SAIPOOJA AGROTECH: CRISIL Keeps B Debt Ratings in Not Cooperating SAKET PROMOTERS: CRISIL Keeps B+ Debt Rating in Not Cooperating SHAHJAHANPUR EDIBLES: CRISIL Keeps D Ratings in Not Cooperating SHIVAM OFFSET: CRISIL Keeps B Debt Rating in Not Cooperating SHOPPERS INTERNATIONAL: CRISIL Reaffirms D Rating on INR27cr Loan SRK INFRACON: CRISIL Keeps B+ Debt Rating in Not Cooperating VERTIGO IMPEX: Ind-Ra Moves 'BB+' Issuer Rating to Non-Cooperating WORLD WELFARE: CRISIL Keeps B Debt Rating in Not Cooperating ZINDRELLA: CRISIL Keeps D Debt Rating in Not Cooperating Category I N D O N E S I A PAN BROTHERS: Fitch Downgrades LongTerm IDR to 'C' J A P A N ALL NIPPON: Announces Plan to Halve International Flight Services [*] JAPAN: Pandemic-Induced Business Failures Reach 1,000 P H I L I P P I N E S PHILIPPINE AIRLINES: To Cut 2,300 Jobs by Mid-March S I N G A P O R E HIN LEONG: Repayment Hopes Dim with Windup Plan PACIFIC INTERNATIONAL: Creditors Approve Debt Restructuring Plan ROBINSON & CO: Liquidator Rebutts Inappropriate Retrenchment SINGAPORE: SMCs Can Now Apply for Simplified Insolvency Programme [*] SINGAPORE: Bankruptcy Cases at 5-Year Low in 2020 - - - - - ================= A U S T R A L I A ================= ACN 151 368 124: First Creditors' Meeting Set for Feb. 10 --------------------------------------------------------- A first meeting of the creditors in the proceedings of A.C.N. 151 368 124 Pty Ltd will be held on Feb. 10, 2021, at 11:00 a.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, 171 Sussex Street, in Sydney, NSW. Andre Lakomy & Jason Tang of Cor Cordis were appointed as administrators of A.C.N. 151 368 124 Pty on Jan. 29, 2021. C-TECH GLOBAL: Second Creditors' Meeting Set for Feb. 9 ------------------------------------------------------- A second meeting of creditors in the proceedings of C-Tech Global Marine Group Limited has been set for Feb. 9, 2021, at 4:30 p.m. via Electronic Facilities 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 Feb. 9, 2021, at 4:00 p.m. David Michael Webb and Kenneth Michael Whittingham of Duff & Phelps were appointed as administrators of C-Tech Global on Jan. 4, 2021. FXP INDUSTRIES: Second Creditors' Meeting Set for Feb. 9 -------------------------------------------------------- A second meeting of creditors in the proceedings of FXP Industries Pty Ltd has been set for Feb. 9, 2021, at 10:30 a.m. at the offices of Valles Accountants, Level 1, 452 Flinders Street, Melbourne, 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 Feb. 8, 2021, at 4:00 p.m. Joshua Philip Taylor of Taylor Insolvency was appointed as administrator of FXP Industries on Jan. 4, 2021. TUCAN TRAVEL: Rodgers Reidy Appointed as Administrator ------------------------------------------------------ Andrew James Barnden of Rodgers Reidy was appointed as administrator of Tucan Travel Pty Ltd on Feb. 2, 2021. ========= C H I N A ========= FARADAY FUTURE: Agrees to $3.4-Bil. Merger With Property Solutions ------------------------------------------------------------------ Faraday Future has agreed to go public through a merger with blank-check firm Property Solutions Acquisition Corp. (NASDAW:PSAC), according to a Jan. 28, 2021 announcement by the parties. The deal values the combined company at around $3.4 billion and is expected to generate gross proceeds of more than $1 billion. The transaction is scheduled to close in the second quarter. Following the closing, the combined company will be listed on the Nasdaq Stock Market under the ticker symbol "FFIE". The common stock PIPE includes over 30 leading long-term institutional shareholders from the U.S., Europe, and China. Anchor investors in the PIPE include a Top 3 Chinese OEM and long-only institutional shareholders. Including the $230 million in cash held by PSAC in trust, assuming no redemptions, and an upsized, $775 million fully-committed common stock PIPE at $10.00 per share, the transaction will provide $1.0 billion of gross proceeds to the combined company, providing sufficient funds to support the FF 91 scaled production and delivery. PIPE investors include partners that will help support FF 91's production and the development and delivery of future vehicle models. FF's strategic partners include one of China's top three OEMs and a key Chinese city, which the company believes will help establish FF's presence in the Chinese vehicle market, further solidifying FF's unique US-China dual home market advantage. Since its inception, FF has been committed to promoting the transformation of the automotive industry through product and innovations in technology, business models, user ecosystems and governance. With I.A.I as the core driving force, FF has created a smart driving platform and a third Internet living space. The FF 91 will be offered with unique technologies including software, Internet, and artificial intelligence, which sets FF apart from its competitors. FF has invested over $2 billion dollars since its inception. In addition to the development of its first model FF 91, the product definition of the second model FF 81 has been completed, and the R&D work is progressing. Transaction Overview The transaction reflects an implied equity value of the combined company of approximately $3.4 billion, based on current assumptions, with a $10.00 per share PIPE subscription price. The transaction is supported by major suppliers, many of which will become shareholders. Upon closing, the combined company will receive up to $1.0 billion in cash assuming no redemptions by PSAC shareholders. The proposed business combination is expected to be completed in the second quarter of 2021, subject to, among other things, the approval by PSAC's shareholders, satisfaction of the conditions stated in the definitive merger agreement and other customary closing conditions, including a registration statement being declared effective by the U.S. Securities and Exchange Commission, the receipt of U.S. antitrust approval, and approval by The Nasdaq Stock Market to list the securities of the combined company. At the close of the transaction, both Jordan Vogel of Property Solutions Acquisition Corp. and Philip Kassin of RMG will serve on the Faraday Future Board. Advisors Credit Suisse and Stifel are serving as financial and capital markets advisors and Miller Buckfire is serving as financial advisor to FF. RMG and Deutsche Bank are serving as financial advisors to PSAC. Credit Suisse served as lead placement agent and Stifel also served as a placement agent for the PIPE. Sidley Austin LLP and O'Melveny & Myers are serving as legal advisors to FF. Latham & Watkins is serving as legal advisor to PSAC. EarlyBird Capital acted as sole underwriter on PSAC's IPO. A full-text copy of the announcement is available at https://www.ff.com/us/investors/ About Faraday Future Faraday Future (FF) -- https://www.ff.com/ -- is a California-based global shared intelligent mobility ecosystem company focusing on building the next generation of intelligent mobility ecosystems. Established in May 2014, the company is headquartered in Los Angeles with R&D Center and Futurist Testing Lab, and offices in Silicon Valley, Beijing, Shanghai, and Chengdu. FF is poised to break the boundaries between the Internet, IT, creative, and auto industries with product and service offerings that integrate new energy, AI, Internet, and sharing models, that aim to continuously transform the mobility of mankind. About Yueting Jia Yueting Jia is the founder of Leshi Holding Group and was the CEO of Faraday Future. Yueting Jia sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 19-12220) on Oct. 14, 2019. The Debtor was represented by James E. O'Neill, Esq., at Pachulski, Stang, Ziehl & Jones LLP. Faraday Future announced in August 2020 that the Reorganization of its founder and CPUO (Chief Product and User Ecosystem Officer), YT Jia (YT), became effective, and his Creditor Trust has also been officially established and begun operations. As part of the PLan, Jia agreed to swap debt claims for pieces of his ownership stake in Faraday Future. FF said that approval of YT Jia's Restructuring Plan removed the biggest hurdle in FF's equity financing efforts and the implementation of the US-China dual home market strategy, allowing FF to work vigorously towards its equity financing targets including an IPO. HNA GROUP: 3 Listed Units Disclose Embezzlements of Nearly $10BB ---------------------------------------------------------------- Reuters reports that three units of HNA, once China's most acquisitive conglomerate, said nearly US$10 billion had been embezzled by shareholders, in disclosures to stock exchanges that come amid a government-led investigation into the deeply indebted group. A total of CNY61.5 billion (US$9.6 billion) had been embezzled by shareholders and other related parties, Shanghai-listed Hainan Airlines Holding, HNA Infrastructure Investment Group and Shenzhen-listed CCOOP Group said on Jan. 29, Reuters relates. The identities of the shareholders were not disclosed in the statements, the report says. The three companies and their subsidiaries had also provided non-compliant guarantees for CNY46.5 billion in financing, Reuters discloses citing statements filed after creditors of their parent applied to a court for the conglomerate to be placed in bankruptcy and restructured. According to Reuters, the move came after a local government-led working team concluded due diligence at HNA earlier in January, and laid out risk disposal plans, enabling it to move to the next stage of resolving a multi-year liquidity crisis. The government-appointed working team expects as many as 500 companies linked to HNA Group to go into bankruptcy restructuring, Chinese financial magazine Caixin reported on Jan. 30, citing sources that it did not identify. Caixin previously reported that HNA owns more than 2,300 companies, Reuters notes. 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 Feb. 1, 2021, Global Times said HNA Group on Jan. 29 declared bankruptcy and restructuring after a multi-year debt and liquidity crisis. The company was informed by South China's Hainan High People's Court on Jan. 29 that "because the company is unable to pay off its debts, related creditors appealed to the court for the company's bankruptcy and restructuring," HNA said. According to Global Times, HNA Group said it will cooperate with the court for judicial review, carry forward the debt disposal, and support the court's protection of the legal rights of its creditors so as to ensure the smooth operations of the company. ZOOMLION HEAVY: Fitch Affirms Then Withdraws B+ IDR --------------------------------------------------- Fitch Ratings has affirmed Zoomlion Heavy Industry Science and Technology Co. Ltd's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+'. The Outlook is Positive. Zoomlion's senior unsecured rating and the ratings on its outstanding bonds issued by subsidiary Zoomlion H.K. SPV Co. Ltd have also been affirmed at 'B+' with Recovery Ratings of 'RR4'. Fitch has also simultaneously withdrawn all the ratings of Zoomlion. Fitch has chosen to withdraw the ratings for commercial reasons. KEY RATING DRIVERS The affirmation reflects Fitch's assessment that there are no material changes to Zoomlion's credit profile since the last rating action on 27 July 2020. DERIVATION SUMMARY Zoomlion's business and financial profiles are comparable with that of 'BB-' peers such as Meritor, Inc. (BB-/Stable) and Meinian Onehealth Healthcare Holdings Co., Ltd. (BB-/Stable) but the company's capex plans constrain its ratings at 'B+'. RATING SENSITIVITIES No longer relevant as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ========= I N D I A ========= ABHIRAJ ENGICON: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Abhiraj Engicon Private Limited's (AEPL) Long-Term Issuer Rating to 'IND BB' from 'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable. The instrument-wise rating actions are: -- INR67.50 mil. Fund-based limits Long-term rating Upgraded; short-term rating affirmed with IND BB/Stable/IND A4+ rating; and -- INR25 mil. Non-fund-based limits affirmed with IND A4+ rating. KEY RATING DRIVERS The upgrade reflects a significant improvement in AEPL's revenue in 9MFY21, which will lead to an improvement in the EBITDA margins and the credit metrics in the near term. During 9MFY21, the revenue grew to INR380 million (FY20: INR214 million, FY19: INR324 million) on account of execution of a higher number of orders and receipt of pending receivables. Despite the growth in revenue, the scale of operations remains small. The growth of business depends entirely upon the company's ability to successfully bid for tenders and emerge as the lowest bidder. At end-December 2020, AEPL had INR1,286 million worth of orders pertaining to the construction of dams and canals for Water Resources Department, Maharashtra, to be executed in the next two-to-three years. Also, the projects executed by the company have a long gestation period because of the time taken to receive payments from its customers, mostly government agencies, and obtain various approvals for project execution. However, the ratings remain constrained by AEPL's modest operating EBITDA margin, and the consequent moderate credit metrics, mainly due to the highly fragmented and competitive construction industry. The company's ROCE was 8.7% in FY20 (FY19: 18%). The EBITDA margin improved to 12.9% in FY20 (FY19: 10.1%) owing to a decline in the cost of materials consumed. However, the interest coverage (operating EBITDA/gross interest expense) deteriorated to 3.58x in FY20 (FY19: 5.5x) and the net leverage (adjusted debt/operating EBITDAR) to 6.2x (1.4x), due to a fall in the absolute EBITDA to INR28 million (INR33 million) and an increase in the debt. However, the agency expects the absolute EBITDA to improve in FY21 on the back of the likely increase in the revenue, thereby leading to an improvement in the credit metrics in the near term. However, the management expects the EBITDA margins to remain range-bound at 11%-12% during FY21. Liquidity Indicator – Stretched: AEPL's average utilization of its working capital limits was 77% during the 12 months ended December 2020. The cash flow from operations increased to INR97 million in FY20 (FY19: INR45 million) due to changes in working capital. Consequently, the free cash flow improved to INR41 million in FY20 (FY19: INR18 million). The company had cash and cash balance of INR38 million at FYE20 (FYE19: INR15 million), against the outstanding debt of INR208 million including unsecured loans from relatives of INR51 million. The company's working capital cycle days elongated to 282 days in FY20 (FY19: 25 days, FY18: 609 days), due to high work-in-progress inventory of projects. However, the ratings continue to benefit from AEPL's promoters about two decades of experience in the civil construction business, leading to established relationships with its suppliers and sub-contractors. RATING SENSITIVITIES Positive: A significant growth in the revenue and the order book, along with an improvement in the credit metrics with the net leverage reducing below 3.0x, all on a sustained basis, will be positive for the ratings. Negative: Any decline in the order book, resulting in low revenue visibility and a sustained deterioration in the credit metrics with the net leverage sustaining above 4.0x will lead to a negative rating action. COMPANY PROFILE Pune-based AEPL is engaged in the execution of engineering, procurement, construction of dams and canals mainly for Water Resources Department in the Konkan and Vidarbha regions of Maharashtra. The company was incorporated as a partnership firm named P I Rachkar & Company in 1995 and was reconstituted as a private limited company in 2007. AEPL is a registered as a Class-IA contractor in Maharashtra. ADKURE TECHNOLOGIES: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Adkure Technologies Private Limited 20/577, Neha CHS Nehru Nagar Kurla (East) Mumbai 400024 Insolvency Commencement Date: January 21, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: July 20, 2021 Insolvency professional: Ms. Poonam Basak Interim Resolution Professional: Ms. Poonam Basak 91 Springboard Business Hub Pvt Ltd. 74/II, Opp. Gate No. 2 – SEEPZ Andheri (E), Mumbai 400093 E-mail: poonamb.irp@gmail.com adkure.cirp@gmail.com Last date for submission of claims: February 11, 2021 AL MEHFOOZ: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of AL Mehfooz Agro Foods Private Limited (AMAFPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.50 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 3.00 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AMAFPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of AMAFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AMAFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AMAFPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. AMAFPL, established in 2011 at Meerut, trades in livestock, particularly buffaloes. Mr. Hashmat Ali and family are the promoters. AMRR MAHARAJA: CRISIL Keeps B+ Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of AMRR Maharaja Dhall Mills (AMRR) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 4.8 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 0.2 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with AMRR for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of AMRR, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AMRR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AMRR continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up in 1987 by Mr. Chandra Kumar and his family, AMRR processes lentils and pulses under the Maharaja brand. It sells to various distributers across Tamil Nadu. AMRB and KDL are also in the same business. ANUGRAH STOCK: CRISIL Lowers Rating on INR25cr Loans to D --------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Anugrah Stock And Broking Pvt Ltd (Anugrah) to 'CRISIL D/CRISIL D; issuer not cooperating' from 'CRISIL B+/CRISIL A4; issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 11 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Overdraft Facility 14 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL ratings on the bank facilities of Anugrah were originally marked as 'issuer not cooperating' on December 26, 2017. The company has remained non cooperative since then. As per last rating rationale published on June 29, 2020, the issuer continues to remain 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 CRISIL Ratings has downgraded its ratings on the bank facilities of Anugrah to 'CRISIL D/CRISIL D; issuer not cooperating' from 'CRISIL B+/CRISIL A4; issuer not cooperating'. CRISIL Ratings has relied on publicly available information that indicates there have been instances of delay in debt servicing by Anugrah. Furthermore, National Stock Exchange, through its circular, clarified that Anugrah has been declared a defaulter under Byelaw 1(a) of Chapter XII of the Byelaws of the exchange and expelled under Rules 1 and 2 of Chapter IV of the Rules of the Exchange. Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information from Anugrah. This restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. Incorporated in 1996, Mumbai-based Anugrah undertakes retail equity broking. The company operates through five branches and 300 franchises. Its margin financing business is carried out through a promoter-related company. Mr. Paresh Kariya is the promoter of Anugrah. BALAJI STEEL: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the rating on bank facilities of Shree Balaji Steel Enterprises (SBSE; part of the Shree Balaji group) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Electronic Dealer 19 CRISIL B+/Stable (Issuer Not Financing Scheme Cooperating) (e-DFS) CRISIL Ratings has been consistently following up with SBSE for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SBSE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SBSE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SBSE continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. For arriving at its rating, CRISIL Ratings has combined the business and financial risk profiles of SBSE and Shree Balaji Steel and Tubes (SBST). That's because both the firms, together referred to as the Shree Balaji group, are in the same business and have common promoters. Also, the entities are expected to be merged over the medium term. Set up in 2009 as a partnership firm, SBSE trades in steel products such as angles, beams, channels, plates, pipes, and bars. It is an authorised distributor for Jindal Steel and Power Ltd and Steel Authority of India Ltd. It has also commenced dealership for JSW Steel Ltd in fiscal 2018. Operations are managed by Mr. Deepak Agarwal. SBST, established in 1986, trades in steel products such as angles, beams, channels, and sheets. BDR EDUCATIONAL: Ind-Ra Cuts & Reassigns Term Loan Rating to 'C' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded BDR Educational Society's term loan to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. Simultaneously, Ind-Ra has reassigned BDR Educational Society's term loan 'IND C (ISSUER NOT COOPERATING)'. The detailed rating action is: -- INR66.20 mil. Term loan* due on July 31, 2023 downgraded and reassigned with IND C (ISSUER NOT COOPERATING) rating. *Reassigned 'IND C (ISSUER NOT COOPERATING)' after being downgraded to 'IND D (ISSUER NOT COOPERATING)' Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best-available information. KEY RATING DRIVERS The downgrade to 'IND D' reflects delay in servicing of vehicle loan, not rated by Ind-Ra, in March 2019, the details of which are unavailable. The reassignment of 'IND C' reflects timely debt servicing in the 12 months ended November 2020. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months will be positive for the ratings. COMPANY PROFILE BDR Educational Society is a society registered under the Andhra Pradesh Societies Registration Act, 2001. It runs Surya – The Global School in Baachupally, Hyderabad. The school has a three-acre campus and offers CBSE curriculum until grade seven. The school commenced operations in 2013. BEE KAY: CRISIL Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Bee Kay Precision India Private Limited (Bee Kay Precision) 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 8 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Bee Kay Precision India Private Limited (Bee Kay Precision) for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of Bee Kay Precision, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Bee Kay Precision is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Bee Kay Precision continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Bee Kay Precision was originally established as a proprietorship concern in Kanpur (Uttar Pradesh). This firm was reconstituted as a private limited company in 2006. Bee Kay Precision manufactures sheet metal and machined components. BHAGWAT PARDESHI: CRISIL Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the rating on bank facilities of Bhagwat Pardeshi Realty (BPR) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 7.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with BPR for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of BPR, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BPR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of BPR continues to be 'CRISIL D Issuer Not Cooperating'. Bhagwat Pardeshi Realty (BPR) was set up on Jan 28, 2013 by Bhagwat and Pardeshi family of Pune. The firm is the part of Janki construction group and Bhama Constructions group and is engaged in real estate development largely in Pune. DIVYALAKSHMI TEXTILES: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Divyalakshmi Textiles Pvt Ltd's (DTPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR95.0 mil. Fund-based limits affirmed with IND BB+/Stable/ IND A4+ rating; -- INR70.0 mil. (increased from INR45.0 mil.) Non-fund-based limits affirmed with IND A4+ rating; and -- INR201.7 mil. (increased from INR167.71 mil.) Long-term loans due on December 2023 affirmed with IND BB+/Stable rating. KEY RATING DRIVERS The affirmation reflects DTPL's continued small scale of operations. The revenue declined to INR561 million in FY20 (FY19: INR589 million), due to a decrease in the sales volume to 1,898 metric tons (mt) (1,985mt) and a marginal decline in the sales realization to INR296 per kg (INR297 per kg). The company booked revenue of INR420 million in 9MFY20 with sales volume of 1,335mt; sales realization also increased 6.3% yoy to INR314 per kg. Ind-Ra expects the revenue to decline further in FY21 owing to a limited order book of INR94.5 million at end-January 2021, to be executed till the first week of April 2021. DTPL had average EBITDA margins, which contracted to 18.5% in FY20 (FY19: 19%), on account of a marginal increase in cost of raw materials as DTPL purchased cotton bales in bulk during 4QFY20. The return on capital employed was 13% in FY20 (FY19: 18%). During 9MFY21, DTPL achieved EBITDA of INR78 million and margins of 18.6%. The agency expects the margins to marginally deteriorate in FY21 due to increasing cotton prices. Liquidity Indicator - Stretched: DTPL's average use of the fund-based limits was 92.9% and the non-fund-based limits were 87.3% for the 12 months ended December 2020. The cash flow from operations turned negative to INR14 million in FY20 (FY19: positive INR34 million) due to unfavorable changes in working capital. However, the free cash flow improved, although remained negative, to INR33 million in FY20 (FY19: negative INR84 million) because of no major capex. The net working capital cycle elongated to 102 days in FY20 (FY19: 61 days), due to an increase in inventory holding period resulting from the bulk purchase of cotton on credit. The company has scheduled repayments of INR10.5 million in FY21. The cash and cash equivalents stood at INR4.15 million at FYE20 (FYE19: INR3.08 million). DTPL has availed for the Reserve Bank of India-prescribed moratorium under the COVID-19 relief package during March to August 2020. However, the ratings continue to benefit from DTPL's strong credit metrics, despite deterioration in the gross interest coverage (operating EBITDA/gross interest expense) to 3.1x in FY20 (FY19: 4.3x) on account of a decline in the absolute EBITDA to INR104 million (INR112 million). However, the net leverage (adjusted net debt/operating EBITDA) improved marginally to 2.2x in FY20 (FY19: 2.3x) owing to a decrease in the total debt to INR235.94 million (FY19: INR260.80 million). Ind-Ra expects the credit metrics to marginally deteriorate in FY21, due to the likely marginal decline in the EBITDA. The ratings also remain supported by the promoters' experience of over two decades in the textile industry, leading to established relationships with its customers and suppliers. RATING SENSITIVITIES Negative: A further decline in the revenue and/or the EBITDA margins, leading to the net leverage increasing above 3.5x on a sustained basis and/or further stress in the liquidity position, will lead to a negative rating action. Positive: A significant improvement in the revenue and the EBITDA margins while maintaining the credit metrics at healthy levels, and an improvement in the liquidity position, all on a sustained basis, would lead to positive rating action. COMPANY PROFILE Incorporated in 2005, DTPL manufactures cotton yarn and has an installed capacity of 27,600 spindles. It is located in Aruppukottai (Tamil Nadu). DOLPHIN OFFSHORE: CRISIL Keeps C Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Dolphin Offshore Shipping Limited (DOSL, part of the Dolphin Grou) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL C (Issuer Not Cooperating) Fund & Non Fund 3.5 CRISIL C (Issuer Not Based Limits Cooperating) Proposed Long Term 7.0 CRISIL C (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with DOSL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of DOSL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DOSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of DOSL continues to be 'CRISIL C Issuer Not Cooperating'. Dolphin Offshore Shipping Ltd. (DOEIL) is the flagship company of the Dolphin group and is in the business of providing a complete range of offshore support services to the oil and gas industry. The services include diving and underwater engineering services, marine operations and management (vessel management), fabrication and installation, ship repairs, geo-technical services, Engineering, Procurement and Construction activities (EPC), etc. DOSL is DOEIL's wholly-owned subsidiary and engaged in chartering of vessels and tugs to oil and gas exploration companies. FASTLINK CONNECTIONS: CRISIL Cuts Rating on INR8cr Loans to B ------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Fastlink Connections Private Limited (FCPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable' ISSUER NOT COOPERATING) Proposed Cash Credit Limit 1 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable' ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with FCPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of FCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on FCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of FCPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Incorporated in 2011, FCPL is primarily engaged in distribution of Samsung mobile phones in Southern Mumbai. The company is managed by Mr. Ashok Nagpal, Mr. Rajesh Nagpal and Mrs. Kanchan Nagpal. GAYATRI SILKS: CRISIL Lowers Rating on INR10cr Loans to B --------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Gayatri Silks (GS) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.6 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable' ISSUER NOT COOPERATING) Long Term Loan 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable' ISSUER NOT COOPERATING) Proposed Long Term 1.9 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB-/Stable' ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with GS for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of GS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GS Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. GS, incorporated in 2002 by Mr. S V Jagadish and his brothers, processes synthetic yarn. The firm has its unit at Bengaluru (Karnataka). GEETANJALI SPICES: Ind-Ra Moves B- Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Geetanjali Spices (GS) Long-Term Issuer Rating of 'IND B-' to the non-cooperating category and has simultaneously withdrawn it. The Outlook was Stable. The instrument-wise rating action is: -- INR100 mil. Fund-based limit* migrated to the non-cooperating category and withdrawn. *Migrated to 'IND B- (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS GS did not participate in the rating exercise despite continuous requests and follow-ups by Ind-Ra. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no objection certificate from the rated facilities' lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. COMPANY PROFILE Incorporated in 2010, Kumbhraj-based GS is engaged in the trading of coriander seeds. Ram Kasat is the proprietor. GEETANJALI VASTRALAYA: Ind-Ra Moves 'B+' Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Geetanjali Vastralaya's (GV) Long-Term Issuer Rating of 'IND B+' to the non-cooperating category and has simultaneously withdrawn it. The Outlook was Stable. The instrument-wise rating action is: -- INR100 mil. Fund-based working capital limits* migrated to the non-cooperating category and withdrawn. *Migrated to 'IND B+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS GV did not participate in the rating exercise despite continuous requests and follow-ups by Ind-Ra. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. COMPANY PROFILE Started in 1992, GV is a proprietorship firm promoted by Manoj Kasat and is engaged in the trading of coriander seeds. GEETASHREE PULSES: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Geetashree Pulses' (GP) Long-Term Issuer Rating of 'IND B+' to the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR100 mil. Fund-based working capital limits* migrated to the non-cooperating and withdrawn. *Migrated to 'IND B+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS GP did not participate in the rating exercise despite continuous requests and follow-ups by Ind-Ra. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Incorporated in 2013, GP is a partnership firm primarily engaged in the trading of coriander seeds. The firm's registered office is in Kumbhraj (Madhya Pradesh) and is managed by Ram Kasat and family. GURUDEVA CHARITABLE: Ind-Ra Keeps D Loan Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Sree Gurudeva Charitable and Educational Trust's bank loan rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR161.24 mil. Bank loans (Long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR70 mil. Fund-based working capital facilities (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on January 22, 2019. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the rating. COMPANY PROFILE Sree Gurudeva Charitable and Educational Trust were established in 2008 in Pallickal, Kerala. The trust has been managing Sri Vellappally Natesan College of Engineering since 2008 and offers B.Tech and M.Tech courses. Tushar Vellapally is the chairman of the trust. INTERNATIONAL COMMERCE: Ind-Ra Keeps 'D' Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained International Commerce Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR150 mil. Fund-based working capital limit (Long-term/Short- term) maintained in a non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR400 mil. Non-fund-based working capital limit (Short-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 24, 2020, Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1980 and headquartered in Bengaluru, International Commerce recycles and processes ferrous scrap as well as trades iron and steel scrap. It is also engaged in the removal of overburden, excavation and transportation of coal, and renting of equipment. KRUPA SERVICES: CRISIL Lowers Rating on INR6.5cr Cash Loan to B --------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Shri Krupa Services Private Limited (SKSPL; part of the SKSPL group) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable' ISSUER NOT COOPERATING) CRISIL Ratings has been consistently following up with SKSPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SKSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SKSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SKSPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. For arriving at the ratings, CRISIL Ratings has combined the business and financial risk profiles of SKSPL, Malhar Multy Services (MMS), Trident Enterprises (Trident), and SKS Luxur Travel Pvt Ltd (SLTPL). This is because all these entities, together referred to as the SKSPL group, are under a common management, engaged in the same line of business. The promoters have set up multiple entities to facilitate the tendering process. There is significant financial, operational, and management linkages between these companies. The SKSPL group, set up by Mr. DB Khedkar and family in 1991, provides support services such as security, housekeeping facility management, and manpower staffing to corporate entities. The Pune-based group is also present in Mumbai, Bengaluru, Goa, Gujarat, Delhi, and Chennai. Operations are managed by Mr. Mahesh Khedkar and Mr. Raghavendra Khedkar. KS BIGILI: CRISIL Keeps D Ratings in Not Cooperating Category ------------------------------------------------------------- CRISIL said the ratings on bank facilities of K. S. Bigili (KSB) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating) Letter of Credit 1 CRISIL D (Issuer Not Cooperating) Proposed Long 4 CRISIL D (Issuer Not Cooperating) Term Bank Loan Facility CRISIL Ratings has been consistently following up with KSB for obtaining information through letters and emails dated June 29, 2020 and December 29, 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 Ratings failed to receive any information on either the financial performance or strategic intent of KSB, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KSB is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KSB continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. KSB is based out of Kollam, Kerala and is engaged in civil construction work for various Government departments. LAXMI BALAJI: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Sri Laxmi Balaji Food Processing Industries (SLB) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (Issuer Not Cooperating) Long Term Loan 2.5 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 5.0 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SLB for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SLB, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SLB is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SLB continues to be 'CRISIL B/Stable Issuer Not Cooperating'. SLB was set up in 2010 as a partnership firm by Mr. C Ashok Kumar and his family members. It mills and processes paddy into rice, and generates by-products such as broken rice, bran, and husk. The firm's rice milling unit is in Mahabubnagar (Andhra Pradesh). LINERS INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Liners India Limited (LIL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.75 CRISIL D (Issuer Not Cooperating) Cash Credit 12.5 CRISIL D (Issuer Not Cooperating) Foreign Bill 1.0 CRISIL D (Issuer Not Discounting Cooperating) Import Letter of 6.5 CRISIL D (Issuer Not Credit Limit Cooperating) Proposed Long Term 0.75 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Proposed Non Fund 4.5 CRISIL D (Issuer Not based limits Cooperating) CRISIL Ratings has been consistently following up with LIL for obtaining information through letters and emails dated June 29, 2020 and December 29, 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 Ratings failed to receive any information on either the financial performance or strategic intent of LIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on LIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of LIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. LIL was incorporated in 1974, as a partnership firma and in 1994 it was converted to a public limited company (closely held). The Entity is involved in manufacture of automobile cylinder liners. MUKAND SUMI: Ind-Ra Cuts & Migrates Long-Term Issuer Rating to 'BB' ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded assigned Mukand Sumi Metal Processing Limited's (MSMPL) Long-Term Issuer Rating to 'IND BB' from 'IND BB+' and has simultaneously migrated it to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR400 mil. Fund-based working capital limits Long-term rating downgraded; short-term rating affirmed and migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR30 mil. Non-fund-based limits affirmed and migrated to non- co-operating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. Analytical Approach: Ind-Ra continues to take a consolidated view of Mukand Sumi Metal Processing Limited's (MSMPL) and its parent, Mukand Ltd (holds 51.0% in MSMPL), to arrive at the ratings, owing to the operational and strategic linkages between them. KEY RATING DRIVERS The downgrade reflects a breach of Ind-Ra's negative rating guideline with the deterioration in MSMPL's credit metrics in FY20 and the likelihood of further weakening of the same in FY21. The company reported EBITDA loss of INR54 million in FY20 (FY19: INR306 million), owing to the COVID-19 led economic disruptions. This, along with an increase in the net debt to INR331 million at FYE20 (FYE19: INR315 million), and the consequent rise in interest expenses, led to the deterioration in the credit metrics (FY19 interest coverage (operating EBITDA/interest expenses): 11.11x; net leverage (net debt/operating EBITDA): 1.03x). Furthermore, revenue declined 13.7% yoy to INR7,000 million in FY20. Ind-Ra expects the credit metrics to deteriorate further in FY21 due to the continued impact of the COVID-19 led disruptions in 1HFY21. Furthermore, the financial profile of the parent deteriorated in FY20. The revenue declined to INR10,046 million during 1HFY21 (FY20: INR29,226 million, FY19: INR36,894 million), leading to an EBITDA loss of INR490 million (profit of INR1,244million, INR1,475 million). The ratings have been migrated to the non-cooperating category as the company has not provided the agency with the provisional numbers of 1HFY21, financial projections, sanction letters and updated management certificate despite continuous requests and follow-ups. COMPANY PROFILE Incorporated in 2012, MSMPL is a joint venture between Mukand and Sumitomo Corporation, which hold 51.0% and 49.0% in the company, respectively. MSMPL manufactures bright bars and wires of special alloy steel and stainless steel (hived-off from Mukand). NALANDA ENGICON: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Nalanda Engicon Private Limited (NALANDA) Long-Term Issuer Rating of 'IND BB' in the non-cooperating category and simultaneously withdrawn it. The instrument-wise rating actions are: -- INR180 mil. Fund-based working capital limit* migrated to the non-cooperating category and withdrawn; -- INR470 mil. Non-fund-based working capital limit** migrated to the non-cooperating category and withdrawn; -- INR170 mil. Proposed fund-based working capital limit^ migrated to the non-cooperating category and withdrawn; and -- INR430 mil. Proposed non-fund-based working capital limit ^^ migrated to the non-cooperating category and withdrawn. *Migrated to 'IND BB (ISSUER NOT COOPERATING)' before being withdrawn. **Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn. ^Migrated to 'Provisional IND BB (ISSUER NOT COOPERATING)' before being withdrawn. ^^Migrated to 'Provisional IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn. KEY RATING DRIVERS NALANDA did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Ind-Ra is no longer required to maintain the ratings, as it has received a no-objection certificate from the rated facilities' lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. COMPANY PROFILE NALANDA started its operations in 1965 as a proprietorship concern. The firm was reconstituted as a private limited company in 2007. The company primarily undertakes civil construction projects for drinking water supply, tube wells, and pipelines. It executes projects for the Central Public Works Department and other government departments. The entity has two full-time directors – Bibekanand Kumar and Saryoo Prasad Sinha. O.P. ASSOCIATES: CRISIL Keeps B Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the rating on bank facilities of O.P. Associates Private Limited (OPAPL) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with OPAPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of OPAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on OPAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OPAPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in 2003, O.P. Associates Private Limited (OPAPL) is engaged in retailing of country liquor, Indian Made Foreign Liquor (IMFL) and beer through 56 retail shops located in Jaunpur, Uttar Pradesh. PARANTHAMAN TEXTILES: CRISIL Keeps D Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the rating on bank facilities of Sri Paranthaman Textiles Private Limited (SPTPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Secured Overdraft 5.5 CRISIL D (Issuer Not Facility Cooperating) CRISIL Ratings has been consistently following up with SPTPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SPTPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPTPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPTPL continues to be 'CRISIL D Issuer Not Cooperating'. SPTPL, was incorporated in 2000 in Chennai (Tamil Nadu) and is engaged in the manufacture of cotton yarn, primarily 60s and 80s count. The day to day operations are overseen by Mrs Prema Paranthaman and Mr. Pramod Paranthaman. PETRON ENGINEERING: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Petron Engineering Construction Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR121.6 mil. Term loan (Long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR845 mil. Fund-based limits (Long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR4.12 bil. Non-fund-based limits (Short-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR200 mil. Proposed term loan (Long-term) is withdrawn; -- INR350 mil. Proposed fund-based limits (Long-term) is withdrawn; and -- INR650 mil. Proposed non-fund-based limits (Short-term) is withdrawn. *The ratings have been withdrawn since it was outstanding for more than 180 days. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 24, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1976, Petron Engineering Construction Limited provides turnkey engineering, procurement, construction, and composite construction solutions to power, oil and gas, petrochemical, cement, and other sectors. PRASANNA ANJANEYA: CRISIL Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the rating on bank facilities of Sri Prasanna Anjaneya Raw & Boiled Rice Mill (SPAR) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SPAR for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SPAR, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPAR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPAR continues to be 'CRISIL B/Stable Issuer Not Cooperating'. SPAR was set up in 1991 as a partnership firm by Mr. K Hanumantha Rao and his family members. The firm mills and processes paddy into rice; it also generates by-products, such as broken rice, bran, and husk. Its rice mill is located in Nellore district of Andhra Pradesh. PRAVEEN AROMA: Ind-Ra Cuts & Reassigns LT Issuer Rating to 'B+' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Praveen Aroma Private Limited's (PAPL) Long-Term Issuer Rating to 'IND D' from 'IND BB+ (ISSUER NOT COOPERATING)'. Simultaneously, Ind-Ra has reassigned PAPL a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR112.5 mil. (reduced from INR150 mil.) Fund-based working capital limits* downgraded and reassigned with IND B+/Stable/IND A4 rating; -- INR70 mil. Working capital term loan due on July 2025 assigned with IND B+/Stable /IND A4 rating; and -- INR5 mil. Term loan due on September 2025 assigned with IND B+ /Stable rating. * Reassigned 'IND B+'/Stable/'IND A4' after being downgraded to 'IND D' KEY RATING DRIVERS The downgrade reflects PAPL's overutilization of its cash credit limit for over 30 days during January-February 2020 as the company was unable to operate due to the destruction of its stock and machinery caused by a fire incident at its plant in October 2019. The account was classified in Special Mention Account 2 category by the bank in February 2020. The reassignment of the rating reflects PAPL's satisfactory banking conduct for the five months ended December 2020, due to the loan restructuring and the sanction of an additional working capital limit of INR10 million by the bank. The rating factor in substantial deterioration in PAPL's revenue and credit metrics in FY20 and Ind-Ra's expectation of further deterioration in the revenue in FY21. The revenue declined 49% yoy to INR1,507 million in FY20 due to the fire incident. The total loss due to the fire was valued at around INR373 million and the insurance claim is yet to be received. The revenue is likely to further decline substantially by around 40% yoy in FY21 due to the COVID-19-led disruptions and the loss of machinery. Also, due to the loss of stock, the company's working capital requirements have remained elongated and its bank limits have been almost fully utilized. PAPL's EBITDA margin was modest over FY17-FY20 due to the nature of work, susceptibility to fluctuations in menthol oil prices, and the company's presence in a highly competitive industry. However, it improved to 3.6% in FY20 from 1.44% in FY19 due to a decline in the raw material cost and admin & selling distribution expenses. The raw material cost (as a % of revenue) declined to around 94% in FY20 from 96% in FY19. The return on capital employed stood at 9.7% in FY20 (FY19: 7.7%). The credit metrics have remained modest since FY19 due to the low profitability and high debt. The interest coverage substantially deteriorated to 1.09x in FY20 from 1.79x in FY19 due to the increase in finance cost to INR49.70 million (INR23.86 million). The company had to pay INR26.73 million of interest to suppliers due to the non-payment. PAPL could not pay the suppliers due to the destruction of stock. The net leverage improved to 6.17x in FY20 (FY19: 8.22x), due to the increase in EBITDA to INR54.29 million (INR42.73 million). Liquidity Indicator - Poor: The company's average peak utilization of its working capital limits was over 100% during the 12 months ended December 2020. This, along with its modest profitability, led to low cash flow from the operations of INR12 million in FY20 (FY19: negative INR16 million). The bank has restructured PAPL's loan and carved out a working capital term loan of INR70 million (to be repaid in five years) from the existing working capital limit of INR172.5 million. The bank has also permitted an additional INR10 million of the working capital limit. The company has infused INR5 million of debt for machinery installation and is expecting disbursement of INR35 million of COVID-19 loan before end-March 2021. The company has high repayment obligations of around INR7.9 million and INR24 million in FY21 and FY22, respectively. The repayment of FY22 is exclusive of the COVID-19 loan repayment as the loan has not been sanctioned yet. The working capital cycle turned negative to 24 days in FY20 due to the increase in creditor days to 100 days (37 days) as the company was unable to pay the suppliers where the stock was lost due to the fire in the plant. The company also has to pay the interest on outstanding creditors due to which the finance cost is likely to remain high in FY21. The ratings, however, take support from PAPL's promoter's extensive experience in the mentha oil industry and the company's strong relationships with customers and suppliers. The company has a wide and established supplier network in Uttar Pradesh. RATING SENSITIVITIES Negative: Further deterioration in the revenue leading to the interest coverage reducing below 1x will be negative for the rating. Positive: A substantial increase in the revenue along with the sustenance of EBITDA margin leading to an improvement in the liquidity position and the interest coverage increasing above 1.1x will be positive for the rating. COMPANY PROFILE Incorporated in 2010, PAPL manufactures and trades mint and allied products in Uttar Pradesh. The company manufactures menthol, menthol crystals, peppermint oil, essential oils, and other allied products that are used in industries such as food, pharmaceuticals, fast-moving consumer goods, and tobacco. PUNEET LABORATORIES: Ind-Ra Corrects Dec. 26, 2019 Rating Release ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) rectified Puneet Laboratories Private Limited's (PLPL) rating published on December 26, 2019 to correctly state the instrument type as long-term loan and fund-based facilities. The amended version follows: India Ratings and Research (Ind-Ra) has downgraded Puneet Laboratories Private Limited's (PLPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. 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. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60.96 mil. Long-term loans(long-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Fund-based facilities (long-term/short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade reflects delays in debt servicing by PLPL; the details of the same are unavailable. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in a rating upgrade. COMPANY PROFILE PLPL was incorporated in Mumbai in 1986 by Mr. Lalit Raizada. The company provides pharmaceutical solutions, from the concept stage to the final product, to pharmaceutical manufacturers such as Zydus Cadila Healthcare Private Limited, Sanofi Aventis and Micro Labs Limited. PUNEET LABORATORIES: Ind-Ra Keeps 'D' Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Puneet Laboratories Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60.96 mil. Long-term loans (long-term) maintained to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Fund-based working capital limit (long-term/short- term) maintained to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 26, 2019 Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Puneet Laboratories was incorporated in Mumbai in 1986 by Lalit Raizada. The company provides pharmaceutical solutions, from the concept stage to the final product, to pharmaceutical manufacturers such as Zydus Cadila Healthcare Private Limited, Sanofi Aventis, and Micro Labs Limited. R N BUILDERS: CRISIL Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the rating on bank facilities of R N Builders (RNB) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Term Loan 9 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RNB for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of RNB, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RNB is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RNB continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Established in 2013 as a partnership firm by Mr. Sanjay Agarwal and family, RNB constructs apartments and villas in Satna. The firm is currently executing a project under the name, R N Greens. RAMI CHANDIDAS: CRISIL Keeps B Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Rami Chandidas Rice Mill Private Limited (RCRMPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.50 CRISIL B /Stable (Issuer Not Cooperating) Proposed Long Term 1.04 CRISIL B /Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 3.36 CRISIL B /Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RCRMPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of RCRMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RCRMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RCRMPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Formed in 2011 by Mr. Asesh Kumar Pal and Mr. Jagabandhu Pal, RCRMPL manufactures and trades in parboiled rice. Its manufacturing facility is in Birbhum, West Bengal. The milling unit became operational in March 2013. The company derives most of its revenue from traders in Bihar, West Bengal, Assam, and Meghalaya, and the rest from FCI. RR DEVELOPERS: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the rating on bank facilities of R. R. Developers (RRD) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 10 CRISIL B+/Stable (Issuer Not Overdraft Cooperating) Facility CRISIL Ratings has been consistently following up with RRD for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of RRD, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RRD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RRD continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up in 2002 and promoted by the Lucknow-based Agarwal family, RRD is part of the RR group. The firm operates a budget hotel in Lucknow. RRD follows a franchise model and operates under the Best Western Plus Levana brand. RYATAR SAHAKARI: CRISIL Keeps B- Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ryatar Sahakari Sakkare Karkhane Niyamit (RSSKN) continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Bank 26 CRISIL B-/Stable (Issuer Not Facility Cooperating) Cash Credit-Stock 20 CRISIL B-/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RSSKN for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of RSSKN, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RSSKN is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RSSKN continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. RSSKN, set up in 1999, is a co-operative society manufacturing sugar. The society is based in Bagalkot (Karnataka). Its operations are managed by Chairman Mr. R S Talewad who has more than three decades' experience in the industry. RYTHU DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Rythu Dairy Products Private Limited (Rythu) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 4.2 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term Bank Loan Facility 2.8 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Rythu for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of Rythu, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Rythu is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Rythu continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 2010 and based in Lakkavaram, West Godavari, Rythu processes milk and milk products. The company is promoted by Mr. Vijaya Kumar Mandava (Managing Director), Ms. Mandava Danalakshmi. Ms. Mandava Pavani and Mr. Shanmukha Rao. SAI POINT: CRISIL Raises Rating on INR12.5cr Loan to C ------------------------------------------------------ CRISIL Ratings has revised its ratings on the bank loan facilities of Sai Point Cars Private Limited (SPCPL) to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4' and simultaneously upgraded to 'CRISIL C/CRISIL A4' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL A4 (Revised from 'CRISIL A4' to 'CRISIL D' and simultaneously upgraded to 'CRISIL A4') Cash Credit 1.5 CRISIL C (Revised from 'CRISIL C' to 'CRISIL D' and simultaneously upgraded to 'CRISIL C') Inventory Funding Facility 12.5 CRISIL C (Revised from 'CRISIL C' to 'CRISIL D' and simultaneously upgraded to 'CRISIL C') The revision in ratings to 'CRISIL D/CRISIL D' reflects delay of over 30 days in repayment of Inventory Funding facility bill due in the month of February 2020. Simultaneous upgrade however reflects timely debt servicing along with no irregularities in over past 4 months. CRISIL has also taken into cognizance, moratorium granted by the bank in servicing of interest on working capital facility and term loan as well as its principal repayment, as permitted by the Reserve Bank of India (RBI). The ratings continues to reflect the company's below-average financial risk profile and modest scale of operations. These weaknesses are partially offset by the extensive experience of the promoter in the automobile dealership industry. Analytical Approach Company had unsecured loans of Rs 6 crore as on March 31, 2020, of which Rs 5 crore have been treated as neither debt nor equity as these are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Strengths: * Extensive industry experience of the promoter: The promoter has been in the automobile dealership industry for about a decade through a group company. Over the years, SPCPL has built a strong relationship with its principal supplier, Maruti Suzuki India Ltd (MSIL; 'CRISIL AAA/Stable/CRISIL A1+'), India's largest car manufacturer. SPCPL has two showrooms. Weakness: * Below-average financial risk profile: Low networth and high total outside liabilities to adjusted networth ratio (Rs 2.58 crores and 5.48 times, respectively, as on March 31, 2020) along with weak interest coverage of 0.62 time for fiscal 2020 represent below average financial risk profile of the company. * Modest scale of operations and exposure to intense competition: Revenue comes from sale of vehicles and spare parts and from the service station business. On account of localized operations and intense competition, turnover was modest at Rs 54.99 crore in fiscal 2020. Also, revenue depends primarily on the prospects and growth plans of the principal supplier. Liquidity: Poor Liquidity is poor as indicated by reliance on promoters fund support to meet term debt obligation of Rs 0.6-1.7 crores over the medium term. Company is expected to continue generate PAT losses. Bank limit utilization is moderate at around 79.08 percent for the past twelve months ended 30th September 2020. Unsecured loans from promoters to tune of Rs 5 crore are expected to continue to support the liquidity of the company. Current ratio is low at 0.73 times on March 31, 2020. Company has also availed COVID emergency line of credit to tune of Rs 3.82 crore. Rating Sensitivity factors Upward factors * Sustained increase in revenue and profitability, leading to adequate accrual of Rs 1-2 crore to meet debt obligation * Significant rise in accrual or equity infusion, strengthening the financial risk profile particularly interest coverage ratio Downward factors * Stretch in working capital cycle or further decline in profitability * Inability of the promoter to extend unsecured loans on time, weakening the liquidity and leading to delay in meeting debt obligation SPCPL was set up in 2008 by Mr. Dilip Patil and commenced commercial operations in fiscal 2011. The company is an authorised dealer for MSIL in Salcette, Goa. It also deals in spare parts and provides workshop facilities for MSIL's vehicles. SAIPOOJA AGROTECH: CRISIL Keeps B Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Saipooja Agrotech Cold Storage (SACS) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Pledge Loan 4.50 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 5.19 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 2.81 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SACS for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SACS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SACS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SACS continues to be 'CRISIL B/Stable Issuer Not Cooperating'. SACS was established in 2009 as a partnership firm. It trades in raisins and operates a cold storage unit (primarily for raisins) in Nashik district of Maharashtra. The firm is owned and managed by Mr. Rajendra Kumbhar and his family members. SAKET PROMOTERS: CRISIL Keeps B+ Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the rating on bank facilities of Saket Promoters Limited (SPL) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 15 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Saket Promoters Ltd. (SPL), established in 1995, by Kolkata based Khetan family is engaged in development of residential projects in and around Kolkata. Mr. Saket Khetan manages its day to day operations. SHAHJAHANPUR EDIBLES: CRISIL Keeps D Ratings in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Shahjahanpur Edibles Private Limited (SEPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Term Loan 7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SEPL for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings 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 Issuer Not Cooperating'. Shahjahanpur Edibles Pvt. Ltd (SEPL) was set up in 2014 and is currently promoted by Mr. Shivkumar Agarwal and his family. The company is engaged in manufacturing of Liquid Glucose, Malto Dextrin Powder and Gluten in Shahjahanpur, Uttar Pradesh. Its promoters have two decades of experience in trading of food grains and gunny bags. SHIVAM OFFSET: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the rating on bank facilities of Shivam Offset (SO) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 5.83 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SO for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SO, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SO is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SO continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Set up by Mr. Sanjay Thorwat as a proprietary firm in 2000, SO prints textbooks for schools and colleges, and undertakes commercial printing of files, calendars, and pamphlets at its unit in Kolhapur, Maharashtra. SHOPPERS INTERNATIONAL: CRISIL Reaffirms D Rating on INR27cr Loan ----------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL D' rating on the long-term bank facility of Shoppers International Mall Pvt Ltd (SIMPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Term Loan 27 CRISIL D (Reaffirmed) The rating reflects instances of delay by SIMPL in servicing its debt in past 3 months ended December 2020; the delays were because of the company's weak liquidity owing to weak operations. The rating continue to reflects exposure to risks related to successful completion and saleability of the residential project, and intense competition in the real estate segment and weak financial profile. These strengths are partially offset by the extensive entrepreneurial experience of the promoters, and their high financial flexibility. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to risks related to saleability of areas under development, and cyclicality inherent in the real estate sector: Saleability for SIMPL's ongoing project has been modest. The domestic real estate sector is intensely competitive, with a highly fragmented market structure. Continuous changes in fiscal and monetary measures, causing interest rates to fluctuate, can impact demand for housing loans. Moreover, a high transaction cost constrains the development of a robust secondary market, posing liquidity risks. * Weak Financial risk profile: Capital structure is leverage with gearing of more than 10 times as on March 31, 2020. Strength: * Extensive entrepreneurial experience of the promoters: The main promoter, Mr. P P Sunny, has sound understanding of the real estate sector, and has been associated with other projects. Further, the promoters have high financial flexibility to infuse funds on a timely basis, and support the debt obligation. Liquidity: Poor Cash accruals are expected to be over INR0.5 crores which are insufficient against term debt obligation of INR1.5 crores over the medium term. The promoters are likely to extend support in the form of equity and unsecured loans to meet its working capital requirements and repayment obligations. SIMPL has availed COVID19 moratorium announced by Reserve Bank of India. Rating Sensitivity factors Upward factors * Timely servicing of debt obligations for 3 months * Improvement in net cash accruals leading to improvement in liquidity profile SIMPL was set up in 2011, at Thrissur. The company is setting up a commercial-cum-residential complex in a prime location, and intends to lease the commercial space, and sell the residential units. SRK INFRACON: CRISIL Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the rating on bank facilities of SRK Infracon India Private Limited (SRK Infracon) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 10 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SRK Infracon for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of SRK Infracon, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRK Infracon is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRK Infracon continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. SRK Infracon was set up as a Special Purpose Vehicle to undertake a Build, Operate and Transfer (BOT) project on annuity basis from Andhra Pradesh Road Development Corporation (APRDC). VERTIGO IMPEX: Ind-Ra Moves 'BB+' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Vertigo Impex Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR75 mil. Fund-based limits migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR250 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 22, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Founded by IC Bansal, Vertigo Impex began operations in 1972 under the name of Vijay Coal Co. In 2002, it was renamed to Vertigo Impex. The company is engaged in importing, trading, handling, and transporting of premium quality coal to diverse industries. WORLD WELFARE: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the rating on bank facilities of World Welfare Society (WWS) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Fund- 1 CRISIL B/Stable (Issuer Not Based Bank Limits Cooperating) CRISIL Ratings has been consistently following up with WWS for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of WWS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on WWS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of WWS continues to be 'CRISIL B/Stable Issuer Not Cooperating'. WWS, a not-for-profit society, is managed by its secretary Mr. Virendra Tripathi, vice president Mr. Hanuman Prasad, and president Mr. Rajdutt Tiwari. The society's head office is in the Lucknow district (Uttar Pradesh). It is engaged in various schemes operated by the state and central governments in Shravasti, Lucknow, and surrounding areas. Services include providing hot cooked food in anganwadi centres under the Integrated Child Development Services Scheme, free meals under the Mid-Day Meal Scheme, amenities under the Swachh Bharat Mission and others. ZINDRELLA: CRISIL Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL said the rating on bank facilities of Zindrella continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Zindrella for obtaining information through letters and emails dated June 29, 2020 and December 18, 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 Ratings failed to receive any information on either the financial performance or strategic intent of Zindrella, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Zindrella is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Zindrella continues to be 'CRISIL D Issuer Not Cooperating'. Set up in 2011 as a proprietorship concern by Ms Dyna Gickson, Zindrella retails ready-made garments at its 15 outlets in Kerala. ================= I N D O N E S I A ================= PAN BROTHERS: Fitch Downgrades LongTerm IDR to 'C' -------------------------------------------------- Fitch Ratings has downgraded Indonesia-based garment manufacturer PT Pan Brothers Tbk's (PB) Long-Term Issuer Default Rating (IDR) to 'C' from 'CC'. Fitch has also downgraded PB's USD171 million of unsecured notes due January 2022, issued by PB International B.V., to 'C' from 'CC' with the Recovery Rating remaining at 'RR4'. At the same time, Fitch Ratings Indonesia has downgraded PB's National Long-Term Rating to 'C(idn)' from 'CC(idn)'. The downgrade follows PB's announcement that it has entered into a standstill agreement with lenders to not take any enforcement action, which is in line with Fitch's definition for a 'C' rating level. The standstill period expired on 27 January 2021, and therefore the banks can accelerate and enforce the USD138.5 million syndicated loan that matured on 27 January. However, the company is in the process of seeking an extension of the standstill until 12 February 2021. 'C' National Ratings denote a default or default-like process has begun, or the issuer is in standstill, or for a closed funding vehicle, payment capacity is irrevocably impaired. KEY RATING DRIVERS In Standstill: PB agreed with its syndicate and bilateral lenders to enter a standstill period that expired on 27 January 2021, during which the banks did not take any enforcement action, such as loan acceleration. Under the standstill agreement, PB has specific milestones to satisfy as it continues its discussions about finalising the extension of the syndicated loan. PB is seeking a "one-plus-one" extension of the loan by two years to end-January 2023, whereby the extension of the second year from end-January 2022 to end-January 2023 will be subject to the refinancing or restructuring of its USD171 million bond due January 2022 into a longer tenor. Lengthy Negotiations: PB's lengthy negotiations and short standstill period reflect the company's weak liquidity position and constrained access to alternative funding sources. Fitch believes that, following multiple extensions of the standstill agreement, the only resolution of the company's capital structure is through restructuring, at which point Fitch could downgrade the IDR to 'RD'. Shareholder Approval for Bond Issue: PB fulfilled the Indonesian Financial Services Authority's (OJK) requests to obtain lenders' consent for a bond issue, and the OJK granted the company permission to hold its extraordinary general meeting (EGM) on 26 January 2021. The EGM was originally scheduled on 6 January 2021. PB obtained shareholder approval during the EGM for its upcoming USD350 million bond issuance. Bond Key to Debt Profile: The delays in the syndicated loan extension and the EGM may delay the bond issuance to 2Q21, depending on capital market conditions. PB plans to issue a five-year secured bond with a maximum coupon of 12%. PB said it would prioritise the refinancing of its USD171 million bond if the proceeds were lower than it expects. PB's debt maturity profile will significantly improve if it is able to raise USD350 million via the bond. However, it must first address the syndicated loan maturity and assuage investors' negative views about the textile sector, which Fitch believes will persist. Negative Cash Flow: PB's cash flow from operations is consistently negative because its business requires heavy working capital. New customer acquisitions have stretched the working-capital cycle. PB plans to shorten the working-capital cycle with technology and automation, and is reviewing its raw-material supply with a preference for local suppliers. However, the revamp of its working-capital process will take time and, therefore, PB remains reliant on external funding, which may prove to be challenging given the standstill situation with lenders. ESG - Governance: PB has an ESG Relevance Score of 4 for Management Strategy due to management's inability to complete the extension of the syndicated loan before its maturity and its entry into a standstill agreement, which have resulted in higher refinancing risk. DERIVATION SUMMARY PB's ratings reflect that the company has entered into a standstill agreement with its syndicate and bilateral lenders that expired on 27 January 2021. The company is in the process of seeking approval to extend the standstill period. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Net sales growth of 5% in 2020, 2% in 2021 and between 9% and 10% in 2022-2023 (2019: 9%) -- EBITDA margin of between 9% and 10% in 2020-2023 (2019: 9%) -- Capex of around 2% of revenue in 2020-2023 (2019: 2%) RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- Securing the extension of the USD138.5 million syndicated loan. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Fitch may downgrade the ratings to 'RD' if PB enters into multiple standstills periods, debt restructuring, bankruptcy, or winding-up procedure. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Standstill Agreement; Tight Liquidity: PB has entered into a standstill agreement with lenders to avoid payment acceleration while finalising terms for the extension of the USD138.5 million syndicated loan, which matured on 27 January 2021. The company's liquidity remains tight with the potential delay of the launch of the USD350 million bond, a cash position of USD52 million at end-September 2020 and consistent negative cash flow from operations. SUMMARY OF FINANCIAL ADJUSTMENTS -- Fitch includes advance payments, which are mostly for raw materials, as part of the working-capital calculation. -- Fitch assumes USD25 million of year-end cash will be restricted, reflecting cash set aside for seasonal working capital purposes ESG CONSIDERATIONS PB has an ESG Relevance Score of 4 for Management Strategy due to management's inability to complete the extension of the syndicated loan before its maturity and its entry into a standstill agreement with lenders. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. ========= J A P A N ========= ALL NIPPON: Announces Plan to Halve International Flight Services ----------------------------------------------------------------- The Japan Times reports that All Nippon Airways Co. said on Jan. 26 it will suspend services on 16 international flight routes from late March due to falling travel demand amid the coronavirus pandemic. According to the report, the services to be halted as part of a new schedule between March 28 and Oct. 30 include those between Tokyo's Haneda Airport and Moscow, and Narita Airport and New York and San Francisco, while reducing the number of flights between Haneda and Bangkok and on two other routes. The scale of operations is likely to be half of last year's initial plan for the period, the report says. ANA, which has now cut about 80% of its international flights from its initial plan, said it will maintain a flexible approach to its operations while keeping close tabs on demand trends and the state of the pandemic. Meanwhile, the major airline will introduce in April sabbatical leave for up to two years that will allow its employees to pursue personal interests such as studying, company officials said on Jan. 26, The Japan Times reports. The airline's move, unprecedented in Japan in terms of length of the leave, comes as ANA tries to curb labor costs, having furloughed many cabin crew members due to the spread of the virus, the report notes. Around 15,000 ANA pilots and cabin and ground staff will be eligible for the new sabbatical system to pursue goals that necessitate long-term planning such as studying abroad, obtaining qualifications and working temporarily at other companies, they said, according to The Japan Times reports. While the leave will be unpaid, the company will provide JPY200,000 ($1,930) for those who within fiscal 2021 start their sabbatical of more than one year. The Japan Times adds that the airline will cover employees' social security contributions during their absence, which needs to last at least one month. Those taking the sabbatical can choose from several options of length - up to five months, one year, 18 months and two years. ANA already has leave systems for employees engaged in nursing care and fertility treatment, as well as study abroad or advanced education programs provided that further study will enhance their contribution to the company. The existing leave systems will be integrated into the new sabbatical scheme, in which employees can leave the workplace without citing specific reasons, the officials, as cited by The Japan Times, said. The company also said it will reduce costs by using smaller aircraft and promote the early retirement of its Boeing 777s, replacing them with more fuel-efficient Boeing 787s, in line with its plan announced in October, the report notes. Headquartered in Tokyo, All Nippon Airways Co., Ltd., is Japan's second-largest airline by revenue, with domestic and international passenger and cargo and mail operations, and travel services. [*] JAPAN: Pandemic-Induced Business Failures Reach 1,000 --------------------------------------------------------- The Japan Times reports that cumulative number of business failures stemming from the impact of the novel coronavirus pandemic reached 1,000 in Japan on Feb. 2, Tokyo Shoko Research Ltd. said. The restaurant industry saw the largest number of failures by sector, at 182, hit hard by shortened operating hours and customers refraining from going out, the report relays. The apparel industry, affected by store closures, came in second, at 91, followed by the construction industry, at 83, and the hotel industry, at 62, The Japan Times discloses. According to the report, the slump in restaurants affected related businesses, with 46 cases of failure in the food and beverage wholesale industry and 31 cases in the food manufacturing industry. By prefecture, Tokyo had the largest number of business failures, at 247 cases, and the smallest was in Yamanashi, at one, The Japan Times relays. An inn in Aichi Prefecture suspended operations in February last year, becoming the first to go bankrupt in the country due to the pandemic, the report says. Since September, the number of failures has remained high, at around 100 per month. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: To Cut 2,300 Jobs by Mid-March --------------------------------------------------- Siegfrid Alegado at Bloomberg News reports that Philippine Airlines Inc., owned by billionaire Lucio Tan, said it will cut 2,300 jobs or about a third of its workforce by mid-March as it continues to take a beating from the pandemic. "This has been an extremely difficult and painful decision," President Gilbert Santa Maria said in a statement on Feb. 2. The job cuts, first announced in October, include voluntary and involuntary separations, the company said, Bloomberg relays. Bloomberg relates that demand for air travel is "still far from pre-pandemic levels," Philippine Air said, adding that it operates less than 30% of pre-pandemic weekly flights. Prior to the job cuts, the airline implemented furloughs and flexible working arrangements. Since March, it has suspended capital expenditures, reduced salaries, deferred lease payments and slashed expenses. Parent PAL Holdings Inc. posted a third-quarter net loss of PHP7.92 billion ($164.8 million), bringing its nine-month loss to PHP28.85 billion, Bloomberg discloses. Philippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline in Asia and the oldest of those currently in operation. With its corporate headquarters in Makati City, Philippine Airlines flies both domestic and international flights. First taking off in 1941, the carrier has grown into a fleet of about 40 aircraft (including five Boeing 747-400s) flying to more than 20 domestic points and about 30 foreign destinations. ================= S I N G A P O R E ================= HIN LEONG: Repayment Hopes Dim with Windup Plan ----------------------------------------------- Chanyaporn Chanjaroen at Bloomberg News reports that HSBC Holdings Plc and other global banks owed US$3.5 billion by Hin Leong Trading (Pte) Ltd. face lower recoveries from the collapsed Singapore oil trader after a sale process failed to attract bids for the company. Hin Leong's court-appointed managers plan to file an application next week to wind up the company after three potential bidders walked away from the process to buy Hin Leong and two related companies as a combined entity, according to a letter PricewaterhouseCoopers sent to creditors this week that was seen by Bloomberg. Assets of Hin Leong's sister companies Ocean Tankers Ltd. and Xihe Holdings may still draw interest from potential bidders, according to the letter. Bloomberg says banks including HSBC and DBS Group Holdings Ltd. were already facing recoveries of pennies on the dollar following one of the largest corporate collapses ever in Singapore. An acquisition of Hin Leong and Ocean Tankers and Xihe Holdings as a combined entity would have eased the pain for lenders and helped them recover more than the firm's US$257 million in estimated assets. The liquidation of a company usually results in a fire sale of its assets, which raises less than a formal bidding process. Hin Leong's judicial managers will also seek a court's direction on the discharge of the judicial management order, according to the document cited by Bloomberg. Hin Leong, once one of the largest fuel traders in the Asian finance hub, collapsed last year after the oil price plunge triggered a default that unveiled years of hidden losses and alleged fraud by founder Lim Oon Kuin, Bloomberg recalls. Many lawsuits ensued from the lenders and various trading counterparts of the company, which had sold oil pledged as collateral to other firms. According to Bloomberg, London-based HSBC has the most exposure at US$600 million, based on estimates in court filings last year. DBS, ABN Amro Bank NV and Singapore's Oversea-Chinese Banking Corp. are next at about US$200 million to US$300 million each. Lim and his two children also face an asset freeze order after Hin Leong's court-appointed managers filed an application blocking them from asset sales or moving funds with value up to US$3.5 billion out of Singapore, Bloomberg notes. About Hin Leong Trading Hin Leong Trading (Pte.) Ltd. provides petroleum products and transportation services. The Company offers oil, lubricants, grease, and diesel products, as well grants storage, terminalling, trucking, and marine logistics services. Hin Leong Trading serves customers globally. Hin Leong Trading and shipping unit Ocean Tankers (Pte.) Ltd. filed for court protection from creditors on April 17, 2020, as the former struggles to repay debts of almost US$4 billion. Hin Leong posted a positive equity of US$4.56 billion and net profit of US$78 million in the period ended October 31, 2019, according to the people, who asked not to be identified as the matter is sensitive, Bloomberg News reported. But Hin Leong told its creditors that total liabilities reached US$4.05 billion as of early April, while assets were just US$714 million, leaving a hole of at least US$3.34 billion, according to screenshots of the presentation to a group of bankers seen by Bloomberg News. The balance sheet of the company showed no equity at all as of April 9, 2020, and warned that "figures obtained from the company are subject to verification," Bloomberg News added. On April 27, 2020, the Company was granted interim judicial management by the Singapore High Court. Goh Thien Phong and Chan Kheng Tek of PricewaterhouseCoopers Advisory Services (PwC) have been appointed as interim judicial managers. Ernst & Young (EY), has been appointed interim judicial manager for Ocean Tankers. PACIFIC INTERNATIONAL: Creditors Approve Debt Restructuring Plan ---------------------------------------------------------------- Tay Peck Gek at The Business Times reports that creditors of privately-held Pacific International Lines (PIL) have helped the insolvent boxship operator keep liquidation at bay when a significant majority of them on Feb. 1 voted in favor of its debt restructuring plan bankrolled by heavyweight investor Temasek Holdings' wholly-owned Heliconia Capital Management. After the plan is sanctioned by the court, Heliconia will become the majority shareholder in PIL while the stakes held by the family of executive chairman Teo Siong Seng will be diluted to under 15 per cent, BT relates. PIL's creditors approved the scheme of arrangement by a simple majority (above 50 per cent) in number representing at least 75 per cent in value of each class of creditors present and voting at the meeting, PIL said in a regulatory statement on Feb. 1, according to Bloomberg. All the creditors are now on board for the rescue deal that will see Heliconia pump in US$600 million and which had earlier been described by PIL as its last resort and best offer, Bloomberg says. According to Bloomberg, the creditors comprise the holders of the S$60 million tranche of 8.5 per cent notes overdue since last November and other unsecured claimants as well as secured lenders. PIL will be applying to the High Court for it to sanction the scheme, with a court hearing expected to be held later this month or in March. The debt restructuring exercise is expected to be completed by the first half of 2021, the report notes. "The comprehensive financing package offered by our investor, in conjunction with a holistic restructuring of PIL's financial liabilities, will recalibrate PIL's capital structure for long-term sustainability, thereby allowing PIL to emerge as a stronger, leaner and better capitalised company, and one that will provide creditors with a clear path to recovery going forward," BT quotes Mr. Teo as saying in the statement. Pacific International Lines (Private) Limited (PIL) provides marine support services. The Company offers liner container, 3rd party logistics, port, and tracking services. PIL serves customers worldwide. ROBINSON & CO: Liquidator Rebutts Inappropriate Retrenchment ------------------------------------------------------------ The New Straits Times reports that the liquidator of the famed Robinson's departmental store has vehemently rebutted any inappropriate retrenchment of its employees, following the closing of its business, recently. Chartered accountant Datuk Robert Teo Keng Tuan told the New Straits Times that contrary to an online media report, RSM Malaysia, of which he is chairman, had adhered to the provisions pertaining to the Company's Act 1965 (Revised 1973) (Amended 2016) and the Employment Act 1955. This, he said, was in relation to the payment of outstanding salary, overtime, commission and unutilised annual leave for the retrenched staff at Robinson & Co (M) Sdn Bhd's two outlets at The Gardens, Mid Valley Megamall and at Four Seasons Place, located next to the Petronas Twin Towers in Jalan Ampang, the report relays. NST says the employees were served with termination letters signed by Teo's partner Arul Gunendran on Nov. 30 and assured that all outstanding payments would be made by Dec. 31 last year. According to the report, Mr. Teo said the employees had sought clarification with the Labour Department. "Nevertheless, we engaged and advised them that the termination notices were in accordance with the provisions of the Companies Act. Suffice to say, the retrenchment exercise was done accordingly. "While we sympathise with the retrenched staff, be rest assured that the exercise was not done in a heartless manner. They will be compensated in accordance to the provisions of the Companies Act. "It is noteworthy to know that we attempted to assist some of the employees to secure alternate jobs with the new business entities at the two said locations," said Mr. Teo, who acted as liquidator for Robinsons pursuant to a Creditor's Voluntary Liquidation, NST relays. He said closing any business was not a pleasant task, especially one with such a colourful and illustrious history as Robinsons, made all the more disheartening having to lay off many long-serving employees. Therefore, he expressed dismay at the unfair allegations made by UNI-Malaysia Labour Centre president Datuk Mohamed Shafie B.P. Mammal through the news portal, according to NST. Among others, Shafie had questioned if Robinson's closure had followed the due process when it closed its operations in Malaysia last year due to poor sales triggered by the global Covid-19 pandemic. He had also alleged the company shuttered without giving proper notice and compensation to its employees as per a 1975 tripartite code of conduct between the government, employers' group and unions on how to deal with issues such as labour and retrenchments, NST relates. NST says Shafie was also unimpressed by the notice and accused the government of failing to protect workers' rights, especially when the economy was sluggish in view of the current health crisis. NST relates that Mr. Teo said Shafie and the news portal should have sought clarification from him before making the inappropriate allegations and publishing the news report, which had questioned the credibility and reputability of his 43-year-old firm that specialises in corporate taxation, corporate restructuring exercise and all facets of insolvency administration and assurance services. Robinsons is owned by UAE-based Al Futtaim Group. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 3, 2020, The Straits Times said that after 162 years, department store stalwart Robinsons closed its last two department stores in Singapore at The Heeren and Raffles City Shopping Centre. The retailer said the decision to liquidate its stores was prompted by a range of factors, including changing consumer tastes and cost pressures such as rent. Robinsons also said the decision to liquidate came after the stores' "inability to continue operations due to weak demand at department stores". Robinsons stores in Malaysia, located at Shoppes at Four Seasons Place and The Gardens Mall, were also liquidated. Cameron Duncan and David Kim from KordaMentha have been appointed as provisional liquidators, according to The Sun Daily. SINGAPORE: SMCs Can Now Apply for Simplified Insolvency Programme ----------------------------------------------------------------- The Straits Times reports that small and micro companies that have been hit hard by the Covid-19 pandemic and need to restructure their debts to stay viable or wind up their businesses can apply for support to do so under a new programme from Jan. 29. Applications for the Simplified Insolvency Programme (SIP) will be open until July 28 and the period may be extended if the need arises, the Ministry of Law (MinLaw) said on Jan. 28, the report relays. The SIP consists of two separate programmes which eligible companies can apply for. One is the Simplified Debt Restructuring Programme (SDRP) for the restructuring of debts and the potential rehabilitation of viable businesses. The other is the Simplified Winding Up Programme (Swup) for the orderly winding up of non-viable businesses. Micro and small companies are defined as having annual revenue of less than $1 million and $10 million respectively. They account for about 95 per cent of enterprises in Singapore. To qualify for the SIP, the number of creditors cannot exceed 50, and the number of employees cannot exceed 30. The company's annual sales turnover must not exceed $10 million and its liabilities, including contingent and prospective liabilities, must not exceed $2 million. For the Swup, the company's realisable unencumbered assets cannot be more than $50,000. It cannot be a foreign company and it must not be in circumstances that make it unsuitable for the SIP, such as having started or being in other insolvency proceedings. The application fee for both programmes under the SIP is $450, while the administration fee will be $18,750 for the SDRP and SGD2,700 for the Swup. Fees for additional services such as legal advice and valuation must be borne by the firm and paid directly to the service provider. In addition, MinLaw said non-corporate businesses can tap the Sole Proprietors Scheme and Partnerships Scheme administered by Credit Counselling Singapore. The ministry added that they can also make use of support measures introduced by the Monetary Authority of Singapore to help small and medium-sized enterprises deal with their short-term cash flow difficulties. "The SIP forms part of a suite of Government measures to help businesses and our workforce emerge stronger from the Covid-19 pandemic," MinLaw said. It added that the SIP complements existing Covid-19 relief measures and legal remedies such as the Re-Align Framework, which commenced on Jan 15 and allows small and micro businesses to renegotiate their contracts. [*] SINGAPORE: Bankruptcy Cases at 5-Year Low in 2020 ----------------------------------------------------- The Straits Times reports that even as the Covid-19 pandemic ravages the economy, the number of people who went bankrupt in Singapore last year sank to the lowest in five years. Bankruptcy orders tumbled more than 40 per cent to 965 from 1,645 in 2019, the report discloses. Figures from the Law Ministry's Insolvency Office website showed more than 1,600 bankruptcy orders were made annually between 2016 and 2018. According to The Straits Times, experts said the drop in numbers could be due to the Covid-19 (Temporary Measures) Act and government support schemes which provided temporary relief for financially distressed individuals. Lawyer Chia Boon Teck of Chia Wong Chambers said: "Pre-Covid-19, the law allows a debtor 21 days to pay up on a statutory demand. However, the Covid-19 (Temporary Measures) Act 2020 extends the 21 days to six months. This in effect puts a five-month moratorium on outstanding debts," The Straits Times relays. The Covid-19 law also raised the minimal debt from $15,000 to $60,000 so debtors owing less than $60,000 are not exposed to threats of bankruptcy, he added. Last year, bankruptcy applications fell to 2,833 from 3,473 in 2019, reversing an upward trend since 2014, the report discloses. The Straits Times relates that Maybank Kim Eng senior economist Chua Hak Bin said bankruptcies could have been far worse if not for the fiscal support and relief measures that also saw "the freezing of creditors' rights to commence legal action for default until late 2020". Figures from the Insolvency Office website also showed corporate insolvency numbers fell, with 206 applications filed for winding up between January and November last year, down from 368 in the same period in 2019, the report adds. ********* 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 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***