/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210208.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 Monday, February 8, 2021, Vol. 24, No. 22 Headlines A U S T R A L I A AUTOCARE SERVICES: First Creditors' Meeting Set for Feb. 16 AYASH PTY: First Creditors' Meeting Set for Feb. 15 BIOTECH RESOURCES: Second Creditors' Meeting Set for Feb. 12 INVESTORS EXCHANGE: License Suspended on Failure to File Reports MORTGAGE & GENERAL: ASIC Cancels AFSL and ACL Licenses POST PLUS: Second Creditors' Meeting Set for Feb. 16 RANJU AUTOMOBILES: CRISIL Keeps D Debt Rating in Not Cooperating TOTAL BLOOD: Second Creditors' Meeting Set for Feb. 12 WRIDGWAYS PEOPLE: Second Creditors' Meeting Set for Feb. 12 C H I N A LUCKIN COFFEE: Files for Chapter 15 Bankruptcy Protection MEINIAN ONEHEALTH: Fitch Downgrades LongTerm IDR to 'B+' H O N G K O N G SPI ENERGY: Board Approves Phoenix Motorcars Spin-Off Through IPO SPI ENERGY: Empery Asset, 2 Others Own 4.9% of Ordinary Shares SPI ENERGY: Issues $4.21MM 10% Convertible Promissory Note I N D I A B.P. CONSTRUCTION: Ind-Ra Moves 'BB-' LT Rating to Non-Cooperating BALAJI INSTALMENTS: CRISIL Keeps FB Fixed Deposits Rating BALDOVINO: CRISIL Keeps D Ratings in Not Cooperating Category BMSS STEEL: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating CARAVEL LOGISTICS: Ind-Ra Keeps C Issuer Rating in Non-Cooperating COLUMBIA PETRO: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating FERNANDES BROTHERS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating FURNACE FABRICA: Ind-Ra Corrects November 11, 2020 Ratings Release GOVARDANAGIRI AGRO: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating GSR VENTURES: Ind-Ra Affirms BB 'LT' Issuer Rating, Outlook Stable IL&FS ENVIRONMENTAL: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating INFRAZONE PRIVATE: Ind-Ra Moves BB Issuer Rating to Non-Cooperating IVRCL INDORE: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating JHARKHAND ROAD: CRISIL Reaffirms C Rating on INR410.74cr NCD JUMBO FIREWORKS: CRISIL Keeps D Debt Ratings in Not Cooperating KUMARAPALAYAM TOLLWAYS: Ind-Ra Moves 'D' Rating to Non-Cooperating LEBEN LIFE: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable LUXGRES CERAMICA: CRISIL Assigns B+ Rating to INR20cr LT Loan MANGALDEEP RICE: CRISIL Keeps D Debt Ratings in Not Cooperating MANISH EMPIRE: CRISIL Keeps D Debt Rating in Not Cooperating MAX UNITED: Ind-Ra Assigns 'B' Bank Loan Rating, Outlook Stable MNR DAIRY: CRISIL Keeps D Debt Rating in Not Cooperating Category MORINDA RICE: CRISIL Keeps D Debt Ratings in Not Cooperating NAVEEN POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating NICE MARINE: CRISIL Keeps D Debt Ratings in Not Cooperating PARADIGM TUNNELING: Ind-Ra Keeps 'D' Rating in Non-Cooperating RAJ BREEDERS: CRISIL Keeps D Debt Ratings in Not Cooperating RAM DEV: CRISIL Keeps D Debt Ratings in Not Cooperating Category REDDY VERANNA: CRISIL Assigns D Ratings to INR40cr Loans ROYSONS CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating RUSAN PHARMA: Ind-Ra Corrects July 10, 2020 Rating Release RUSAN PHARMA: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating SALEM TOLLWAYS: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating SAMBANDAM SIVA: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating SIDDHIVINAYAKA AGRO: CRISIL Keeps C Ratings in Not Cooperating SIPL TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating SOCIETY FOR INDO: CRISIL Assigns B+ Rating to INR12cr LT Loan SOMANI MOTORS: CRISIL Withdraws B+ Rating on INR11cr Debt SREENIDHI RAJA: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating SRIKARA PARENTERALS: CRISIL Keeps D Ratings in Not Cooperating SRINIVAS INFRASTRUCTURE: Ind-Ra Keeps BB+ Rating in Non-Cooperating SRK FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating SSMP INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating STANDARD AUTOGEARS: CRISIL Keeps D Ratings in Not Cooperating STEELWAYS ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating STONEX INDIA: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating TRIMURTI FABRICATORS: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating UNITED WIRE: CRISIL Keeps D Debt Ratings in Not Cooperating USHA CUBALS: CRISIL Withdraws D Rating on INR20cr Loan VAIBHAV EDIBLES: Ind-Ra Cuts Long-Term Issuer Rating to 'BB' VENKATESWARA RICE: CRISIL Lowers Rating on INR5cr Loan to D VIKRAM INFRASTRUCTURE: Ind-Ra Moves 'B' Rating to Non-Cooperating VIMAL INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating VIRINCHI HEALTHCARE: Ind-Ra Withdraws 'D' Term Loans Rating VIROO MAL: CRISIL Keeps D Debt Ratings in Not Cooperating VISHESH DIAGNOSTICS: Ind-Ra Moves BB- LT Rating to Non-Cooperating VISION MINERALS: CRISIL Keeps D Debt Ratings in Not Cooperating J A P A N ANA HOLDINGS: Plans to Cut Workforce by 20% Over 5 Years S I N G A P O R E SINGAPORE AIRLINES: Post $142MM Net Loss in Q3 Ended Dec. 31 S O U T H K O R E A EASTAR JET: Founder's Relative Indicted for Embezzlement - - - - - ================= A U S T R A L I A ================= AUTOCARE SERVICES: First Creditors' Meeting Set for Feb. 16 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Autocare Services Pty Ltd will be held on Feb. 16, 2021, at 2:00 p.m. via virtual meeting only. Joseph Hansell, Christopher Hill and Ross Blakeley of FTI Consulting were appointed as administrators of Autocare Services on Feb. 4, 2021. AYASH PTY: First Creditors' Meeting Set for Feb. 15 --------------------------------------------------- A first meeting of the creditors in the proceedings of Ayash Pty Limited, trading as "Ayoub Supplies" will be held on Feb. 15, 2020, at 2:00 p.m. by teleconference only. Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency & Forensic Accountants were appointed as administrators of Ayash Pty on Feb. 3, 2021. BIOTECH RESOURCES: Second Creditors' Meeting Set for Feb. 12 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Biotech Resources (Aust) Pty. Ltd has been set for Feb. 12, 2021, at 10:30 a.m. via Zoom & Conferance Telephone call. 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. 11, 2021, at 5:00 p.m. Andrew MacNeill of SMB Advisory was appointed as administrator of Biotech Resources on Dec. 30, 2020. INVESTORS EXCHANGE: License Suspended on Failure to File Reports ---------------------------------------------------------------- The Australia Securities and Investments Commission (ASIC) has suspended the Australian financial services (AFS) licence of Queensland-based financial services provider Investors Exchange Limited (IEL) for a period of six weeks, effective Jan. 15, 2021. IEL is the responsible entity of Investors Exchange Fund (ARSN 127 384 767) and Investors Exchange Investment Fund (ARSN 120 933 093) (collectively referred to as 'the Schemes'). IEL also previously operated Dean Capital Property Trust No. 1 (ARSN 120 932 309). The licence was suspended because IEL failed to comply with financial services laws and maintain competence to provide the financial services covered by its AFS licence. Specifically, IEL: * failed to lodge its annual financial statements and auditor reports by the requisite date for the financial years ending 2014, 2016, 2017, 2018 and 2019; * failed to lodge the compliance plan auditor's reports for Investors Exchange Investment Fund by the requisite date in 2014 and 2016, and for both Schemes by the requisite date in 2017, 2018 and 2019; and * failed to comply with the compliance plan for Dean Capital Property Trust No. 1 in 2012; and * issued defective product disclosure documents in 2018 and 2019. The suspension will allow IEL time to review its competence and take steps to ensure compliance with its obligations as an AFS licensee. ASIC has used its power under s915H of the Corporations Act to allow IEL to provide financial services that are reasonably necessary for the day-to-day operation of the Schemes while the suspension is in place. During the suspension, IEL cannot issue new interests in the Schemes. IEL is also specifically prohibited from: * granting any further security over the existing assets of the Schemes; and * offering redemption of interests in the Schemes unless this is offered equally to all Scheme members. IEL has the right to seek a review of ASIC's decision at the Administrative Appeals Tribunal. IEL (ACN 116 489 420) has held AFS licence number 299024 since 9 August 2006. Under a previous version of its AFS licence, IEL was authorised to operate the registered managed investment scheme SMSF Invest Property Fund, formerly known as Dean Capital Property Trust No. 1. IEL operated Dean Capital Property Trust No. 1 between August 9, 2006 and December 18, 2012. MORTGAGE & GENERAL: ASIC Cancels AFSL and ACL Licenses ------------------------------------------------------ The Australia Securities and Investments Commission (ASIC) has cancelled the Australian financial services licence (AFSL) and Australian credit licence (ACL) of Victoria-based Mortgage & General Financial Services Pty Ltd. ASIC cancelled the AFSL and ACL because Mortgage & General failed to demonstrate that it had the competence and resources to provide financial services and credit activities as required under its licences. Under the terms of both the AFSL and ACL, Mortgage & General was required to have a 'key person'. However, following the death of its key person, Mortgage & General failed to appoint a new key person. Mortgage & General also failed to lodge its accounts under its AFSL for the financial years ending 2017, 2018 and 2019. AFSL holders must lodge their financial statements and auditor's reports annually to demonstrate that they have adequate financial resources to provide the services covered by their licence and to conduct their business lawfully. Under the provisions of the Corporations Act 2001 and National Consumer Credit Protection Act 2009 respectively, ASIC may suspend or cancel an AFSL or an ACL if the licensee fails to meet their obligations. Mortgage & General held an AFSL since March 1, 2004 and an ACL since January 7, 2011 (AFSL and ACL number 247413). It may apply to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decision. POST PLUS: Second Creditors' Meeting Set for Feb. 16 ---------------------------------------------------- A second meeting of creditors in the proceedings of Post Plus Aus Pty Ltd has been set for Feb. 16, 2021, at 2:30 p.m. via virtual meeting. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Feb. 15, 2021, at 4.30 p.m. Simon Patrick Nelson of BPS Reconstruction and Recovery was appointed as administrator of Post Plus on Jan. 11, 2021. RANJU AUTOMOBILES: CRISIL Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Ranju Automobiles Private Limited (RAPL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RAPL 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 RAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RAPL continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1991 as a partnership firm (Ranju Automobiles) and reconstituted as a private limited company in 2000, RAPL began operations as a sub-dealer of Bajaj Auto Ltd (BAL). In 1998, it received dealership of BAL's two-wheelers for Bokaro district in Jharkhand. In 2009, the company also received dealership for passenger cars of Hyundai Motor India Ltd for four districts of Jharkhand. TOTAL BLOOD: Second Creditors' Meeting Set for Feb. 12 ------------------------------------------------------ A second meeting of creditors in the proceedings of Total Blood Profile Pty Ltd has been set for Feb. 12, 2021, at 11:30 a.m. via Zoom & Conferance Telephone call. 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. 11, 2021, at 5:00 p.m. Andrew MacNeill of SMB Advisory was appointed as administrator of Total Blood on Dec. 30, 2020. WRIDGWAYS PEOPLE: Second Creditors' Meeting Set for Feb. 12 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Wridgways People Pty Ltd (Formerly known as 'Pall Mall Assets Pty Ltd') and Wridgways Pty Ltd (Formerly known as 'Santa Fe Holdings Australia Pty. Ltd.') has been set for Feb. 12, 2021, at 11:00 a.m. via virtual meeting. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Feb. 11, 2021, at 5:00 p.m. Timothy James Brace and Peter Gountzos of SV Partners were appointed as administrators of Wridgways People on Dec. 30, 2020. ========= C H I N A ========= LUCKIN COFFEE: Files for Chapter 15 Bankruptcy Protection --------------------------------------------------------- Caixin Global reports that Luckin Coffee Inc.'s court-appointed liquidators filed for bankruptcy protection in New York on Feb. 5, the company said. According to Caixin, the petition, filed under chapter 15 of title 11 of the U.S. Code, is part of Luckin’s attempts to salvage its business in China and will effectively quarantine the company, which admitted to wide-ranging accounting fraud last year, from lawsuits by U.S. creditors as it restructures. Caixin relates that Luckin said its thousands of stores in China would remain open for business, and that the filing is "not expected to materially impact . . . day-to-day operations." Based in China, Luckin Coffee Inc., provided non-alcoholic beverages. The Company offered various types of coffee. In July 2020, Luckin Coffee has called in liquidators to oversee a corporate restructuring and negotiate with creditors to salvage its business, less than four months after shocking the market with a US$300 million accounting fraud, South China Morning Post said. The start-up company named Alexander Lawson of Alvarez & Marsal Cayman Islands and Tiffany Wong Wing Sze of Alvarez & Marsal Asia to act as "light-touch" joint provisional liquidators (JPLs) under a Cayman Islands court order, it said in a regulatory filing in New York. The move was in response to a winding-up petition by an undisclosed creditor, it added. The appointments will create a stable platform to allow the company and its advisers to negotiate and restructure its financial obligations, the Xiamen, Fujian-based coffee chain said in the filing. It hired Houlihan Lokey as financial advisers to implement a workout with creditors, SCMP disclosed. MEINIAN ONEHEALTH: Fitch Downgrades LongTerm IDR to 'B+' -------------------------------------------------------- Fitch Ratings has downgraded China-based preventive health-examination service provider Meinian Onehealth Healthcare Holdings Co., Ltd.'s Long-Term Issuer Default Rating (IDR) and senior unsecured rating to 'B+' from 'BB-'. The Outlook is Stable. Fitch has also downgraded the rating on Meinian's USD200 million 7.75% senior unsecured notes due April 2021 to 'B+' from 'BB-' with a Recovery Rating of 'RR4'. The notes were issued by Mei Nian Investment Limited. The downgrade reflects the continued challenges Meinian faces in its strategy change towards offering more premium services and expanding its customer base to reduce seasonality and improve the utilisation of its medical centres. Meinian's capex intensity remained high, while revenue fell, in 2020, which can be explained only partly by the coronavirus pandemic. Fitch expects Meinian's negative free cash flow (FCF) to persist even with a drop in capex due to weaker cash flow generation, which limits the company's ability to deleverage. These, coupled with a high reliance on short-term financing following the planned repayment of its offshore US dollar bond, no longer support a rating in the 'BB' category. The 'B+' IDR and Stable Outlook are supported by Meinian's leadership in China's private health check-up market and positive industry growth prospects. KEY RATING DRIVERS Muted Revenue Growth: Meinian faced difficulty in maintaining its revenue growth in the past two years. The company's reported preliminary total revenue fell 8%-11% to CNY7.55 billion-7.85 billion in 2020, following muted growth in 2019. This was partly due to the impact of the coronavirus but also the loss of price-sensitive individual customers and challenges in offering health check-up packages with higher prices. Meinian's revenue recovered in 4Q20 after the initial pandemic impact, rising 39%-53% yoy, based on preliminary results. The fourth quarter is typically the most important seasonally, contributing an average of around 50% of full-year EBIT in 2016-2019, as corporate customers tend to complete their check-ups towards the year-end. Fitch expects Meinian's operations to continue to recover in 2021 but the company is unlikely to resume the fast growth achieved before 2019. Limited Deleveraging Capability: Fitch expects Meinian's FFO adjusted net leverage to fall to around 5x in 2021 following a moderate recovery from the pandemic after peaking at 5.8x in 2020. However, Fitch assumes weak cash generation will prevent a meaningful leverage decline. Operating cash flow has been falling since 2017 due to muted revenue growth, higher working-capital needs and rising finance costs. Challenges to improve utilisation outside of the peak fourth-quarter period will result in continued quarterly cash flow volatility, weighing on profitability over the next few years. Reliant on Short-Term Debt: Fitch expects Meinian to have access to funding options to repay or refinance its USD200 million notes due April 2021, although its available liquidity is sufficient for repayment. It had cash on hand of CNY2.3 billion as of end-September 2020, which should have increased by end-December 2020 due to the seasonal nature of its business. The company intends to raise long-term funding but persistent negative FCF and seasonality in its operating cash flow generation remain a challenge and there could be a high reliance on short-term financing in the near term. Fitch classifies part of the cash that equals to 10% of revenue as not readily available to reflect the seasonality in its cash balance. Alibaba Plays a Strategic Role: Fitch expects cooperation with Alibaba Group Holding Limited (A+/Stable) to support Meinian's sustainable growth. Meinian can use Alibaba's online platforms to divert traffic to its medical centres and promote its check-up packages, particularly to individual customers. Alibaba will also cooperate with Meinian on IT system upgrades to streamline the check-up process and provide comprehensive pre- and post-check-up services. Alibaba cut its stake by 1.4% to 13.0% in November 2020 but remains the second-largest shareholder. Market Leadership Intact: Fitch expects Meinian to maintain its market leadership, despite slower growth, as the gap with the next player is significant. Meinian has been the country's largest private medical-examination service provider for the past few years and solidified its market position with the acquisition of Ciming Health Checkup Management Group Co., Ltd. Fitch believes Meinian's comprehensive network of check-up centres is supportive of its market leadership in the medium term. Positive Industry Growth Prospects: The industry is likely to expand with structural support from rising health awareness, an ageing population and higher disposable income. Fitch expects the growth of private health check-up providers to outpace that of the overall industry due to demand for higher quality services than those from public providers, increasing demand for early detection of diseases and enhanced corporate employee benefits. DERIVATION SUMMARY Meinian compares favourably against other rated consumer or industrial companies in China in terms of its market leadership in the country's private health check-up market and stable customer base, but its financial profile constrains its rating, which is weak relative to those rated in the 'BB' range. Meinian has a stronger business profile than China-based Wisdom Education International Holdings Company Limited (BB-/Stable) as Meinian is the leader in its market while Wisdom holds a small market share in the fragmented education industry. However, Meinian has a much weaker financial profile with higher leverage, lower coverage and profitability than Wisdom. Meinian's cash flow is also more volatile than Wisdom's as education companies have highly visible and recurring cash flow. Meinian has a better liquidity profile and lower leverage than eHi Car Services Limited (B/Stable), which is the second-largest car rental company in China. The two companies have similar business profiles with a strong position in their markets and a similar EBITDA operating scale. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Low-teen decline in revenue in 2020, resumption of growth in 2021 at a high single-digit rate -- EBITDA margin of 15% in 2020, recovering to 20% by 2023 -- Rental expense-to-revenue ratio of 10%-11% in 2020-2023 -- Capex of CNY1.2 billion in 2020 and CNY1.6 billion in 2021 2023, including initial minority investments in new medical centres and investments for minority-to-majority stake centres RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- FFO adjusted net leverage below 4.5x for a sustained period (2020 estimate: 5.8x, 2021 forecast: 4.8x) -- Neutral-to-positive FCF -- Greater stability in operating cash flow generation on a quarterly basis Factors that could, individually or collectively, lead to negative rating action/downgrade: -- FFO adjusted net leverage above 5.5x for a sustained period -- FFO fixed-charge coverage below 1.5x for a sustained period (2020 estimate: 1.6x, 2021 forecast: 1.8x) -- Widening negative FCF 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 Limited Liquidity Headroom: Meinian had CNY2.3 billion in cash on hand at end-September 2020. Fitch expects the company to use its cash balance to redeem the USD200 million senior unsecured note in April 2021. Fitch also expects the company to be able to roll over its short-term debt of CNY3.1 billion, excluding the US dollar bond. Fitch estimates Meinian's cash balance after the bond redemption will be just enough to cover its working-capital needs in 1H21, but Fitch expects the company to cut capex and obtain external funding to replenish its liquidity. SUMMARY OF FINANCIAL ADJUSTMENTS -- Capex includes acquiring minority stakes in new centres and increasing investments in minority-interest centres to hold a controlling interest -- 10% of revenue is treated as restricted cash to reflect the seasonality in its operating cash flow generation 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. ================= H O N G K O N G ================= SPI ENERGY: Board Approves Phoenix Motorcars Spin-Off Through IPO ----------------------------------------------------------------- SPI Energy Co., Ltd.'s Board of Directors approved the Company's plan to spin off Phoenix Motorcars, a wholly owned subsidiary of the Company's EdisonFuture subsidiary, through an initial public offering. EdisonFuture will own 70 million shares of Phoenix Motorcars after the spinoff. Phoenix launched its first electric drivetrain in 2009 and sold its first commercial EV shuttle bus in 2014. Built on the Ford E-450 platform, Phoenix is introducing its third-generation drivetrain by year end, which includes its next-generation battery offering with size modularity of 63, 94, 125, and 156 kWh. Phoenix provides vehicles in a range of configurations, including shuttle buses, utility trucks, service trucks, flatbed trucks, walk-in vans, cargo trucks and school buses. The company's customers include, and have included, major airports, airport shuttle operators, hotel chains, seaports, universities, municipalities, and large corporations, among others. SPI Energy's recently announced collaboration with world-leading automotive designer Icona Design, a joint common strategy between EdisonFuture and Icona, covers a full range of all-electric vehicles, while drawing from Icona's experience in designing various cutting-edge products including the autonomous minibus and all-electric car/crossover platform. Icona is designing a host of new products including advanced pickup trucks and last-mile delivery vans that will be sold by EdisonFuture and Phoenix Motorcars. The designs and prototypes will incorporate Icona and SPI Energy's vision for human-centered future transportation and revolutionize how customers and vehicles interact. "We continue to move forward toward our goal of becoming the leaders in sustainable transportation with focus on energy efficiency and innovative design," stated Xiaofeng Peng, chairman and chief executive officer of SPI Energy. "The fleet vehicle electrification opportunity is massive, and the team at Phoenix Motorcars has proven its ability to execute in this burgeoning market. Successfully spinning off Phoenix Motorcars will enable us to unlock significant value for our shareholders and provide the necessary resources to fully capitalize on the opportunities ahead." Phoenix Motorcars has significantly strengthened its management team since being acquired by SPI's EdisonFuture subsidiary. Management additions include 35-year auto industry veteran Frank Jenkins as VP of Business Partnerships and Development, early Tesla employee Edmund Shen as VP of Product Management and Supply Chain, inventor of the first working all-electric school bus, Edward Monfort, as Senior VP, and finance veteran Wenbing Chris Wang as Senior VP of Finance. Most recently the company appointed Dr. Tom Zhang, a former HR executive with Tesla and Google, as VP of Human Resources. About SPI Energy Co., Ltd. SPI Energy -- http://www.spigroups.com-- is a global provider of photovoltaic solutions for business, residential, government and utility customers, and investors. The Company develops solar PV projects that are either sold to third party operators or owned and operated by the Company for selling of electricity to the grid in multiple countries in Asia, North America and Europe. The Company's subsidiary in Australia primarily sells solar PV components to retail customers and solar project developers. The Company has its operating headquarter in Hong Kong and its U.S. office in Santa Clara, California. The Company maintains global operations in Asia, Europe, North America, and Australia. SPI Energy reported a net loss attributable to shareholders of the Company of $15.26 million for the year ended Dec. 31, 2019, compared to a net loss attributable to shareholders of the Company of $12.28 million for the year ended Dec. 31, 2018. Marcum Bernstein & Pinchuk LLP, in Beijing China, the Company's auditor since 2018, issued a "going concern" qualification in its report dated June 29, 2020, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SPI ENERGY: Empery Asset, 2 Others Own 4.9% of Ordinary Shares -------------------------------------------------------------- Empery Asset Management, LP, Ryan M. Lane, and Martin D. Hoe disclosed in an amended Schedule 13G filed with the Securities and Exchange Commission that as of Dec. 31, 2020, they beneficially own 1,165,000 ordinary shares issuable upon exercise of warrants of SPI Energy Co., Ltd., which represents 4.98 percent of the shares outstanding. The percentage is based on 22,231,189 Ordinary Shares issued and outstanding as of Dec. 3, 2020, as represented on the Prospectus Supplement on Form 424(b)(5) filed with the SEC on Dec. 4, 2020 and assumes the exercise of the Company's reported warrants subject to the Blockers. Pursuant to the terms of the Reported Warrants, the Reporting Persons cannot exercise the Reported Warrants to the extent the Reporting Persons would beneficially own, after any such exercise, more than 4.99% of the outstanding shares of Common Stock, and the percentage for each Reporting Person gives effect to the Blockers. A full-text copy of the regulatory filing is available for free at: https://www.sec.gov/Archives/edgar/data/1210618/000090266421000638/p21-0274sc13ga.htm About SPI Energy Co., Ltd. SPI Energy -- http://www.spigroups.com-- is a global provider of photovoltaic solutions for business, residential, government and utility customers, and investors. The Company develops solar PV projects that are either sold to third party operators or owned and operated by the Company for selling of electricity to the grid in multiple countries in Asia, North America and Europe. The Company's subsidiary in Australia primarily sells solar PV components to retail customers and solar project developers. The Company has its operating headquarter in Hong Kong and its U.S. office in Santa Clara, California. The Company maintains global operations in Asia, Europe, North America, and Australia. SPI Energy reported a net loss attributable to shareholders of the Company of $15.26 million for the year ended Dec. 31, 2019, compared to a net loss attributable to shareholders of the Company of $12.28 million for the year ended Dec. 31, 2018. Marcum Bernstein & Pinchuk LLP, in Beijing China, the Company's auditor since 2018, issued a "going concern" qualification in its report dated June 29, 2020, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. SPI ENERGY: Issues $4.21MM 10% Convertible Promissory Note ---------------------------------------------------------- SPI Energy Co., Ltd. has issued a $4.21 million 10% convertible promissory note to Streeterville Capital, LLC, a Utah limited liability company. The convertible promissory note, which was approved by SPI's board of directors, bears interest at the rate of 10% per annum and has a maturity date of Jan. 31, 2022. All or any portion of the note is convertible into ordinary shares of SPI at a conversion price of $20.00 per share. The convertible promissory note was issued in a private placement in reliance on Regulation D promulgated under the Securities Act of 1933, as amended. About SPI Energy Co., Ltd. SPI Energy -- http://www.spigroups.com-- is a global provider of photovoltaic solutions for business, residential, government and utility customers, and investors. The Company develops solar PV projects that are either sold to third party operators or owned and operated by the Company for selling of electricity to the grid in multiple countries in Asia, North America and Europe. The Company's subsidiary in Australia primarily sells solar PV components to retail customers and solar project developers. The Company has its operating headquarter in Hong Kong and its U.S. office in Santa Clara, California. The Company maintains global operations in Asia, Europe, North America, and Australia. SPI Energy reported a net loss attributable to shareholders of the Company of $15.26 million for the year ended Dec. 31, 2019, compared to a net loss attributable to shareholders of the Company of $12.28 million for the year ended Dec. 31, 2018. Marcum Bernstein & Pinchuk LLP, in Beijing China, the Company's auditor since 2018, issued a "going concern" qualification in its report dated June 29, 2020, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ========= I N D I A ========= B.P. CONSTRUCTION: Ind-Ra Moves 'BB-' LT Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated B.P. Construction'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: -- INR60 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR85 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 5, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE B.P. Construction was established as a proprietorship concern in 1987. The firm was reconstituted as a partnership firm in 1988. The firm is primarily engaged in civil construction and electrification for various government departments in the state of Jharkhand. The firm is registered as a Class-1A contractor with the Public Works Department, Jharkhand and a Class-1 electrical contractor with Vidyut Vibhag, Energy Department, and the government of Jharkhand for electrification work. The firm has its registered address at Ranchi (Jharkhand) and its partners are Bhim Prasad and Janki Devi. BALAJI INSTALMENTS: CRISIL Keeps FB Fixed Deposits Rating --------------------------------------------------------- CRISIL Ratings said the rating on the FD Programme of Balaji Instalments Limited (BIL) continues to be 'FB/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Fixed Deposits 3 FB/Stable (Issuer Not Cooperating) CRISIL has been consistently following up with BIL for getting information. CRISIL requested cooperation and information from the issuer through its letters dated July 31, 2020 and December 30, 2020, apart from telephonic communication. However, the issuer has continued to be non-cooperative. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or business of BIL, which restricts CRISIL's ability to take a forward-looking view on the company's credit quality. CRISIL believes that the rating action is consistent with 'Assessing information adequacy risk'. Based on the last available information, the rating on the FD Programme continues to be 'FB/Stable Issuer not cooperating'. BIL, incorporated in 1989, is a deposit-accepting non-banking financial company promoted by Mr Pramod Kumar Agarwal. It has operations only in Pilibhit, Uttar Pradesh. It provides loans for refinancing of used commercial vehicles such as trucks and buses. It had an outstanding portfolio and networth of INR2.4 crore as on March 31, 2019. BALDOVINO: CRISIL Keeps D Ratings in Not Cooperating Category ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Baldovino continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Foreign 6 CRISIL D (Issuer Not Discounting Cooperating) Bill Purchase Export Packing 4 CRISIL D (Issuer Not Credit Cooperating) CRISIL Ratings has been consistently following up with Baldovino 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 Baldovino, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Baldovino is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Baldovino continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. M/S Baldovino was set up in 2010 as a proprietorship concern by Mr. Rikin Shah. The firm is also engaged in cutting and polishing of diamonds. BMSS STEEL: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated BMSS Steel Industries Pvt. Ltd.'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 the ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR45 mil. Fund-based facilities migrated to non-cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; -- INR80 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4 (ISSUER NOT COOPERATING) rating; and -- INR35 mil. Proposed fund-based facilities withdrawn (the company did not proceed with the instrument as envisaged); and -- INR40 mil. Proposed non-fund-based facilities Withdrawn (the company did not proceed with the instrument as envisaged). Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 31, 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 July 1987, BMSS Steel Industries is engaged in the processing and trading of steel. CARAVEL LOGISTICS: Ind-Ra Keeps C Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Caravel Logistics 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 the rating. The rating will continue to appear as 'IND C (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR96 mil. Fund-based working capital limits maintained in non-cooperating category with IND C (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR15 mil. Non-fund-based working capital limits maintained in non-cooperating category with IND C (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 7, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Caravel Logistics provides ocean freight logistics and value-added services for container cargo movements. COLUMBIA PETRO: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Columbia Petro Chem Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR1.93 bil. Non-fund-based limits maintained in non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; -- INR340 mil. Proposed fund-/non-fund based working capital limit* assigned and maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING) rating; -- INR500 mil. Proposed fund-/non-fund based working capital limit* assigned and maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR120 mil. Fund-based limits maintained in non-cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. *The provisional rating of the proposed bank facilities has been converted into final based on Ind-Ra's updated policy. This is because the agency notes that debt seniority and general terms and conditions of working capital facilities tend to be uniform across banks, and are not rating drivers. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 11, 2020 Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established by Kuldeep Halwasiaya in 1987 in Kolkata, CPCPL manufactures liquid paraffin, white oil and transformer oil at its facilities in Taloja and Silvassa. Its facilities have a total manufacturing capacity of 305,000 tons per year. FERNANDES BROTHERS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Fernandes Brothers a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR329.0 mil. Fund-based working capital limits assigned with IND B+/Stable/IND A4 rating; and -- INR30.58 mil. Term loan due on September 2024 assigned with IND B+/Stable rating; and -- INR0.42 mil. Non-fund-based working capital limits assigned with IND A4 rating. KEY RATING DRIVERS The ratings reflect the firm's weak credit metrics with EBITDA interest coverage (operating EBITDA/gross interest expense) of 1.2x in FY20 (FY19: 1.09x) and net leverage (adjusted net debt/operating EBITDAR) of 12.3x (7.4x). The interest coverage improved in FY20, despite a reduction in the operating EBITDA to INR18.7 million (FY19: INR23.9 million), mainly due to the reduced interest expenses of INR15.5 million (INR22.0 million). The net leverage, however, deteriorated because of the increased total debt to INR249.7 million in FY20 (FY19: INR178.4 million) as the firm had borrowed unsecured loans from partners and others. Ind-Ra expects the overall credit metrics of the firm to deteriorate in FY21 on account of a further reduction in the operating EBITDA and increased debt position. The ratings reflect the firm's modest operating profitability in the range of 1.06%-2.06% over FY17-FY20. In FY20, the operating profitability increased to 2.06% (FY19: 1.62%) on account of reduced raw material prices. The return on capital employed was 6% in FY20 (FY19: 8%). Ind-Ra expects, the firm's operating profitability to increase further in FY21, backed by a reduction in the variable overheads. During 6MFY21, the firm achieved an operating profitability of 4%. The ratings also factor in the firm's small scale of operations. In FY20, the revenue fell 38.9% yoy to INR905.4 million, primarily on account of a weak demand from customers. Also, the firm had completely stopped the merchant trading business during the same year, contributing to the revenue reduction. Ind-Ra expects the revenue of the firm to decline further in FY21 on account of the operational disruptions due to the COVID-19-led lockdown, particularly during 1QFY21. During 6MFY21, the firm achieved a revenue of INR456.2 million. Liquidity Indicator - Stretched: Fernandes Brothers' average utilization of fund-based working capital limits was 71.05% over the 12 months ended December 2020. The cash flow from operations turned negative to INR49.2 million in FY20 (FY19: INR68.9 million) primarily due to an increase in the working capital requirements at the year-end and also reduced EBITDA. The net cash conversion cycle of the firm lengthened to 110 days in FY20 (FY19: 53 days) on account of an increase in debtor days to 57 (17) and inventory days to 59 (40). The firm availed The Reserve Bank of India-prescribed moratorium over March-August 2020 and the accumulated interest portion of working capital limits has been converted into funded interest term loan, which has to be repaid by FYE21. In addition, the firm has availed a working capital term of INR30.6 million under guaranteed emergency credit line scheme and its repayment will start from FY22. The ratings draw comfort from the partner's over-three-decade-long experience in the cashew industry and the firm’s established relationship with customers and suppliers. RATING SENSITIVITIES Positive: An increase in the scale of operations and the operating EBITDA, along with an improvement in the liquidity leading to an improvement in the credit metrics with the interest coverage increasing above 1.7x, all on a sustained basis, will lead to a positive rating action. Negative: Significant deterioration in the scale of operations and the operating EBITDA, leading to deterioration in the credit metrics and the liquidity position, all on a sustained basis, will lead to a negative rating action. COMPANY PROFILE Fernandes Brothers is a Mangalore-based partnership firm established in 1946. The firm processes and trades raw cashews. The managing partner, Walter D'Souza, has an extensive experience in the cashew processing industry. FURNACE FABRICA: Ind-Ra Corrects November 11, 2020 Ratings Release ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) rectified Furnace Fabrica (India) Limited's (FFIL) ratings published on November 11, 2020 to correctly state the rating of the non-fund-based limits. The amended version is: India Ratings and Research (Ind-Ra) has downgraded Furnace Fabrica (India) Limited's (FFIL) Long-Term Issuer Rating to 'IND BB' from 'IND BBB'. The Outlook is Negative. The instrument-wise rating actions are: -- INR630 mil. Fund-based limit downgraded with IND BB/Negative rating; -- INR2.230 bil. Non-fund-based limit downgraded with IND BB/ Negative rating; and -- INR1.125 bil. Non-fund-based limit downgraded with IND A4+ rating. The downgrade reflects the company's tight liquidity profile as indicated by the full utilization of its working capital limits during the 12 months ended September 2020, along with devolvement in the letter of credit for less than 30 days (as on November 4, 2020) and a stretched working capital cycle on account of delayed debtors' recovery. The Negative Outlook reflects Ind-Ra expectations that the stretch in FFIL's debtors will continue in the near term and affect its liquidity. The Negative Outlook also reflects the likely deterioration in the company's credit metrics in FY21 due to increased debt. KEY RATING DRIVERS FFIL's revenue declined to INR3,523 million, according to the provisional financials for FY20, from INR3,944 million in FY19 due to the fewer orders executed. Ind-Ra expects the revenue to further decline in FY21 due to further lower order execution on account of the COVID-19-led nation-wide lockdown and delays in the clearance from different departments. The credit metrics of the company are modest with the interest coverage of 1.96x in FY20 (FY19: 1.33x) and the net financial leverage (adjusted debt/operating EBITDAR) of 2.86x (2.52x). The interest coverage improved in FY20 due to a rise in the absolute EBITDA and the net leverage deteriorated due to an increase in the total debt. The total debt increased in FY20 as the company availed term loans and business loans. Ind Ra expects the credit metrics to deteriorate in FY21 on account of increased repayments and reduced EBITDA. The operating EBITDA margin was modest at 9% in FY20 (FY19: 5.4%) and the return on capital employed was 9% (5%). The improvement in the operating margin in FY20 was due to reduced purchases and on the execution of high-margin orders. Liquidity Indicator - Poor: The company fully utilized its working capital limits during the 12 months ended September 2020. There was an instance of devolvement in the letter of credit in October 2020 for less than 30 days as of November 4, 2020. The working capital cycle of the company was stretched at 213 days in FY20 (FY19: 156 days) with an increase in the debtor days to 166 (74). At FYE20, the debtors stood at INR984 million and the retention money was INR613.41 million as on 31 March 2020, which declined to INR651 million and INR565 million, respectively, as on 30 September 2020. However, there are substantial delays in the payment from a few of the major customers. The delay in the debtors' payments have stretched the liquidity substantially leading to the devolvement of LC. FFIL availed the Reserve Bank of India-prescribed debt moratorium for its working capital facilities and term loans over March-August 2020. The company also availed a COVID-19 emergency credit line. The ratings derive support from the company's strong order book of INR10,000 million (2.9x of FY20 revenue), that has faced execution delays in FY21 due to the lockdown and is now likely to be executed over the next three years. The ratings are also supported by the promoters' over five decades of experience in the engineering, procurement and construction business. RATING SENSITIVITIES Negative: Further deterioration in the liquidity and the gross interest coverage falling below 1.5x will be negative for the ratings. Positive: An improvement in the liquidity along with the gross interest coverage remaining above 1.5x on a sustained basis will be positive for the ratings. COMPANY PROFILE FFIL provides engineering, procurement and construction services for metallurgical, fertilizer, petrochemical, refinery, cement, power and steel plants on a turnkey basis. Its head office is in Mumbai. It has regional offices in Delhi, Kochi and Kolkata, and its international offices are in Zambia, Morocco and the UAE. Furthermore, FFIL has captive fabrication facilities at Navi Mumbai (Maharashtra) and Kandla (Gujarat) in India and Chingola in Zambia. GOVARDANAGIRI AGRO: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Govardanagiri Agro Industries 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: -- INR123.6 mil. Long term loans (long-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR100.0 mil. Fund-based working capital limit(long- term/short-term) maintained in the non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 6, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Govardanagiri Agro Industries was established in February 2015 to set-up a cotton oil extraction unit in Telangana. The site engaged in cottonseed delinting, dehulling and oil extraction processes to provide oiled cake, hulls, oil and lint. The promoters of the company are D Raghavaiah and Ronda Suresh. GSR VENTURES: Ind-Ra Affirms BB 'LT' Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed GSR Ventures Private Limited's (GSR) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR40 mil. Fund-based working capital limits affirmed with IND BB/Stable/IND A4+ rating; and -- INR450 mil. Non-fund-based working capital limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects GSR's continued small scale of operations, despite a surge in the revenue to INR1,524.8 million in FY20 (FY19: INR334.1 million, FY18: INR463.8 million) on account of the timely execution of existing orders. The company reported lower revenue during FY18-FY19 because of slower execution of orders and bidding, resulting from stretched receivables from the state government authorities. As of April 2020, GSR had an order book of INR4,651.7 million (3.05x of FY20 revenue), to be executed by 2023. GSR's revenue is likely to improve over the medium-to-long term on the back of its strong order book. The company reported revenue of INR1,906 million (gross sales including the Goods and Services Tax) during 5MFY21. The order execution was affected during April-May 2020 because of the COVID-19-led lockdown, but it picked up from 2QFY21 on account of the unlocking of economic activities. Liquidity Indicator - Stretched: GSR's average maximum use of the fund-based and the non-fund-based facilities was 89% and 44%, respectively, in the 12 months ended December 2020. The company had cash and cash equivalents of INR40.6 million at FYE20 (FYE19: INR31.4 million). Its net cash cycle improved to 60 days in FY20 (FY19: 83 days), due to a decline in the creditors days to 231 (91). The cash flow from operations turned negative to INR19.1 million in FY20 (FY19: positive INR38.6 million), due to unfavorable changes in working capital. However, Ind-Ra expects the cash flow from operations to turn positive in FY21 on the back of a likely improvement in EBITDA margins. Furthermore, the agency expects GSR's cash flows to be sufficient to service the term debt obligations of INR1.2 million and INR4.4 million in FY21 and FY22, respectively. GSR had availed the Reserve Bank of India-prescribed moratorium on its working capital facilities over March-August 2020 under the COVID-19 relief package, to conserve the liquidity. The ratings also remain constrained by customer concentration risk as GSR derives 80%-90% of its revenue from four-to-five projects. Ind-Ra expects the order book concentration to marginally improve in the medium-to-long term on the back of favorable developments in the projects or state. However, the ratings benefit from GSR's healthy margins with a return on capital employed of 27% in FY20 (FY19: 6%). The margins declined to 4.8% in FY20 (FY19: 5.6%), due to an increase in raw material costs and administrative expenses. The company had allotted a large project of NCC Limited ('IND A'/Positive) and Gayatri Projects Limited, accounting 93% of the FY20 revenue to a sub-contractor, resulting in lower margins. Ind-Ra expects the margins to improve further in FY21 due to the timely order execution. The ratings also remain supported by GSR's comfortable credit metrics as indicated by the interest coverage (operating EBITDA/gross interest expense) of 12.9x in FY20 (FY19: 2.5x) and the net leverage (adjusted net debt/operating EBITDAR) of 0.7x (1.5x). Despite an increase in the total debt to INR93 million at FYE20 (FYE19: INR60 million), the credit metrics improved primarily on account of an increase in the operating EBITDA to INR72.5 million (INR18.6 million). The agency expects the absolute EBITDA to improve in FY21 on the back of the likely increase in the revenue, leading to an improvement in the credit metrics in the near term. The ratings also continue to benefit from the founders' experience of about a decade and a half in the execution of civil construction projects. RATING SENSITIVITIES Negative: A decline in the revenue and/or the operating margins, resulting in deterioration in the credit metrics and the liquidity position, all on a sustained basis, will lead to a negative rating action. Positive: A substantial rise in the revenue and the operating margins, leading to an improvement in the credit metrics and the liquidity position, all on a sustained basis, will lead to a positive rating action. COMPANY PROFILE Hyderabad-based GSR was set up as a partnership firm in 1971 by G Sivakumar Reddy and his family, and was reconstituted as a private limited company in 2008. It undertakes civil construction, mainly canal earthwork excavation and construction of bridges. IL&FS ENVIRONMENTAL: Ind-Ra Keeps 'D' LT Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained IL&FS Environmental Infrastructure and Services 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: -- INR250 mil. Fund-based limits (Long-term/Short-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR54 mil. Term loan (Long-term) due on June 2021 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR896 mil. Proposed bank loans (Long-term/Short-term)* withdrawn (the company did not proceed with the instrument as envisaged). Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 20, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE IL&FS Environmental Infrastructure and Services largely operates under five segments: processing & disposal (municipality solid waste management business), construction and demolition, collection & transportation, waste to energy and social advisory. INFRAZONE PRIVATE: Ind-Ra Moves BB Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated S.S. Infrazone Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the surveillance 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: -- INR5 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR495 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 January 31, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in 2012, S.S. Infrazone undertakes construction contracts, mainly for Jhansi Public Works Department, Gorakhpur Public Works Department and Lucknow Irrigation Authority. The company has been classified as Class-I under Central Public Works Department, India (B&R) since 1990 and Class-IA Municipal Corporation of Delhi since 1981. IVRCL INDORE: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained IVRCL Indore Gujarat Tollways' Limited's long-term bank loans' 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: -- INR11,785.65 bil. Long-term senior project bank loan (long- term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR70 mil. Bank guarantee (long-term) maintained in non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 6, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE IVRCL Indore Gujarat Tollways is a special-purpose company that was incorporated to undertake a 155.15 kilometer expansion of a stretch between Indore and Gujarat to four lanes from two lanes, and a capacity augmentation project on a design, build, finance, operate and transfer basis, both under a 25-year concession from the National Highways Authority of India ('IND AAA'/Stable). The project achieved provisional commercial operation date on 6 November 2018. JHARKHAND ROAD: CRISIL Reaffirms C Rating on INR410.74cr NCD ------------------------------------------------------------ CRISIL Ratings has reaffirmed its 'CRISIL C' rating on the non-convertible debentures (NCDs) of Jharkhand Road Projects Implementation Company Limited (JRPICL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Non Convertible Debentures 410.74 CRISIL C (Reaffirmed) Persistent delay in receipt of annuities from government of Jharkhand (GoJ) has led to a liquidity crunch, owing to which lenders have agreed to a one-time restructuring on January 20, 2021, under the Covid-19 resolution framework. As per the revised agreement, JRPICL has been granted a one-year moratorium on debt servicing, including the payment due on January 20, 2021. While interest accumulating over the next one year would be payable in January 2022, the principal deferred would be serviced over the remaining maturity period starting from April 2023. The lenders have also granted time for reinstatement of the debt service reserve account (DSRA) and major maintenance reserve account (MMRA) till April 2023. These have been almost fully depleted over the last year towards debt servicing. The company has not received annuities from the GoJ since February 2020, which has resulted in build-up of overdue receivable of INR358 crore as on January 20, 2021. As funds set aside under the MMR were used to service debt, the major maintenance work on two out of five stretches has not yet begun. This could potentially impact the quality of the stretches going forward. The rating continues to reflect JRPICL's weak financial risk profile with debt service coverage ratio (DSCR) below 1x, exposure to counterparty risk, operations & maintenance (O&M) risk and major maintenance and legal risk. However, the stable revenue profile, given the annuity-based model, mitigates these weaknesses. Key Rating Drivers & Detailed Description Strengths: * Stable revenue profile, backed by the annuity-based model: JRPICL benefits from the annuity nature of its ongoing build-operate-transfer project. Dependence on any single annuity payment is low as the company is receiving 10 semi-annual annuities for 5 projects across 8 months. However, while annuity receipts were timely in the past, the Covid-19 pandemic has impacted state finances and JRPICL has not received annuities since February 2020. Weaknesses: * Weak financial risk profile: JRPICL's financial risk profile has weakened after debt was restructured to include repayment of unsecured loans. During the National Company Law Appellate Tribunal (NCLAT) proceedings, JRPICL was reclassified as a Green entity from Amber, after terms on its senior-secured NCDs were restructured and the coupon rate was reduced. Average yearly debt rose to INR300 crore (from INR224 crore on senior-secured NCDs) and average DSCR (including unsecured and subordinated loans) may remain below 1 time, with the shortfall likely to be met via the DSRA and existing cash. * Exposure to O&M risk: Failure to meet the prescribed O&M standards or frequent breaches in terms, may expose JRPICL to reduction in annuity payments from the GoJ or even termination of the contract. Both the O&M and major maintenance are being carried out by ITNL (part of the IL&FS group), which is undergoing resolution under NCLAT. Therefore, ITNL's ability to adequately fulfil its obligations under the fixed price contract is a key risk. Additionally, the MMR, as per the revised lenders' agreement, is substantially lower than the earlier provision. This is mitigated by the routine, low-cost nature of O&M. Major maintenance on three of the company's five stretches was completed in fiscal 2021. Work on the remaining two stretches has been deferred, as MMR was utilised for debt servicing. Delay in major maintenance on these stretches could strain their quality. * Continued susceptibility to legal risk: In January 2020, JRPICL had invoked the NCLAT stay order given to the IL&FS group, to also include normal debt servicing. As a result, despite having adequate funds, the company defaulted on payments to senior secured NCD holders. Though the debt has been restructured and JRPICL was reclassified as 'Green' by NCLAT, legal risk persists, amidst ongoing resolution at the IL&FS group. Liquidity: Poor Liquidity remains weak, amidst non-receipt of annuity payments from GoJ since February 2020, and utilisation of DSRA and MMR towards debt servicing so far in fiscal 2021. As on January 20, 2021, the company had surplus cash and bank balance of only around INR1.5 crore. However, post restructuring of the NCD terms, JRPICL has been granted a one-year moratorium on debt servicing, including the payment due on January 20, 2021. While interest accumulating over the next one year would be payable in January 2022, the deferred principal amount will need to be serviced over the remaining maturity period starting April 2023. Rating Sensitivity factors Upward factors * Timely receipt of annuities leading to a build-up of one quarter of DSRA * Reduction in debt leading to increase in DSCR above 1 time on NCDs Downward factors * Further delay in receipt of annuities beyond the next maturity date * Sustained delay in completion of major maintenance JRPICL was formed as a special-purpose vehicle to develop five road stretches under the Jharkhand Accelerated Road Development Programme (JARDP). These are the Ranchi Patratu-Dam Road, the Patratu Dam-Ramgarh Road, the Ranchi ring road, the Chaibasa Kandra-Chowka Road, and the Adityapur Kandra Road. All the projects have begun commercial operations, and have been receiving annuity payments. ITNL and IL&FS hold 93.43% and 6.57%, respectively, in JRPICL. About ITNL ITNL was incorporated in 2000, by IL&FS to consolidate its road infrastructure projects and pursue new ones in surface transportation infrastructure through public-private partnership. ITNL is primarily engaged in development, operation and maintenance of national and state highways. ITNL has diversified into other segments such as mass rapid transport system, urban transportation infra system, car parking and border check-post. About IL&FS IL&FS is one of India's leading infrastructure development and finance companies. It was promoted by the Central Bank of India ('CRISIL A+/CRISIL A/Stable'), Housing Development Finance Corporation Ltd ('CRISIL AAA/FAAA/Stable/CRISIL A1+') and Unit Trust of India. Over the years, IL&FS has broad-based its shareholding and inducted institutional shareholders, including State Bank of India ('CRISIL AAA/CRISIL AA+/FAAA/Stable/CRISIL A1+'), Life Insurance Corporation of India, ORIX Corporation - Japan, and Abu Dhabi Investment Authority. IL&FS and its group companies (including ITNL) are going through severe financial stress and have defaulted on some debt since August 2018. The Government of India had, on October 1, 2018, replaced the board of directors at IL&FS to turn around the group and restore the confidence of financial markets after its default. JUMBO FIREWORKS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Jumbo Fireworks India Private Limited (JFIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL D (Issuer Not Cooperating) Term Loan 1 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with JFIPL 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 JFIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on JFIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of JFIPL continues to be 'CRISIL D Issuer Not Cooperating'. JFIPL, incorporated in 2011, manufactures pyrotechnics. The company is based in Sivakasi, Tamil Nadu, and is managed by Mr. Raja Singh and Mr. Subash Singh. KUMARAPALAYAM TOLLWAYS: Ind-Ra Moves 'D' Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Kumarapalayam Tollways Ltd's bank loan rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR2,304.98 bil. Long-term senior project bank loan (long-term Bank loan (long-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR154.95 mil. Subordinated loan (long-term) migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 31, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings COMPANY PROFILE Kumarapalayam Tollways, which is wholly owned by IVRCL Limited (IND D(ISSUER NOT COOPERATING)), is a special purpose company that was set up to widen, operate and maintain a 48km road stretch on the National Highway-47 between Kumarapalayam and Chengappalli in Tamil Nadu. LEBEN LIFE: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Leben Life Sciences Private Limited (LLSPL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR60 mil. Fund-based facilities assigned with IND BB-/Stable rating; and -- INR296.39 mil. Long-term loans due on September 2027 assigned with IND BB-/Stable rating. KEY RATING DRIVERS The ratings reflect LLSPL's small scale of operations, as indicated by revenue of INR308.30 million in FY20 (FY19: INR286.00 million). The revenue increased due to higher demand. The company reported a revenue of INR180 million in 9MFY21. Ind-Ra expects the revenue to decline on a yoy basis in FY21, as reflected from 9MFY21numbers, owing to COVID-19-led disruptions in operations since April 2020. Since November 2020, LLSPL has started generating revenue from the manufacturing segment; Ind-Ra expects the same to be reflected in the entity's FY22 revenue. The ratings reflect LLSPL's modest EBITDA margins due to the nature of business. The company's profitability is driven by the product mix, since various products in the portfolio offer various levels of margins. LLSPL's EBITDA margin has been improving year on year owing to the increasing share of profitable products in the sales ratio, with the margin rising to15.99% in FY20 (FY19: 12.79%; FY18: 9.95%). The RoCE of the company was 8% in FY20 (FY19:12%). Ind-Ra expects the margin to be improve slightly on a yoy basis in FY21, since the company has started generating sales from its recently established manufacturing unit from November 2020. The ratings also reflect the company's modest credit metrics due to the modest margins and high debt levels (FY20: INR514.12 million; FY19: INR234.60 million). The credit metrics weakened in FY20 due to an increase in net borrowings in the form of unsecured loan from promoters. The adjust net leverage ratio(adjusted net debt/operating EBITDA) was 10.3x in FY20 (FY19:5.8x)and the interest coverage (operating EBITDA/gross interest expense) was 2.8x (3.1x). Ind-Ra expects the credit metrics to weaken further in FY21 owing to an increase in net borrowings in the form of short-term debt. Of the total debt exposure of INR514.12 million at FYE20, unsecured debt from promoters accounted for 51% , and long-term loans from banks constituted the balance 49%. Liquidity Indicator - Stretched: The company's cash and cash equivalents stood at INR5.47 million at FYE20 (FYE19: INR23.83 million) against a total debt of INR514.12 million (INR234.60 million). The debt service coverage ratio of the company stands at 1.4x in FY21. The working capital cycle of the company improved to seven days in FY20(FY19:65days) due to an increase in creditor days (FY20: 83 days; FY19: 31 days). The company's cash flow from operations turned positive at INR61.73 million in FY20 (FY19: negative INR12.95 million) due to the improvement in the working capital cycle. However, it is likely to decline in FY21 owing to deterioration in the net cash cycle with the normalization of creditor days and increase in inventory days. The company does not have any capital market exposure and relies on banks facilities and promoters fund to meet its funding requirements. The company had not availed the Reserve Bank of India-prescribed debt moratorium. The ratings, however, are supported by the promoters' experience of over four decades in the pharmaceutical trading and manufacturing business. RATING SENSITIVITIES Negative: Deterioration in the credit metrics and/or deterioration in the liquidity position will lead to a negative rating action. Positive: An increase in the scale of operations, along with an improvement in the overall credit metrics, with the adjusted net leverage falling below 5.0x, all on a sustained basis, would lead to a positive rating action. COMPANY PROFILE LLSPL was incorporated in July 2016 by Haresh Shah. The company was engaged in trading of pharmaceutical products including tablets, capsules, ointments, injectables etc encompassing around 80 varieties of products. Since November 2020, the company has ventured into manufacturing of the products by setting up its own plant in Akola, Maharashtra. LUXGRES CERAMICA: CRISIL Assigns B+ Rating to INR20cr LT Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Luxgres Ceramica LLP (LCL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable (Assigned) The rating reflects exposure to timely project implementation and stabilization of operations thereafter and average financial risk profile. These weaknesses are partially offset by extensive experience of partners and their funding support and strategic location of manufacturing unit. Key Rating Drivers & Detailed Description Weakness: * Exposure to timely project implementation and stabilization of operations thereafter: Commercial production of vitrified tiles is expected to be commence from October, 2021. Timely implementation, and stabilization and commensurate ramp-up in sales during the initial phase of operations, will remain critical, and hence will be key monitorables. * Average financial risk profile: The financial risk profile of the firm is likely to remain weak over medium period owing to ongoing debt-funded capital expenditure resulting in estimated gearing of about 3 times impacting the financial flexibility. Strengths: * Extensive experience of partners and their funding support: Partners have vast experience in the ceramic industry of about a decade. Benefits from the partners' expertise, their strong understanding of local market dynamics, healthy relations with suppliers and customers, and their timely, need-based funding support should continue to aid the business. Infusion of USL of INR8 crore is expected from partners over medium period. * Strategic location of manufacturing unit: The manufacturing unit of LCL is located in Morbi which is tile manufacturing cluster. The placement of the company in strategic location ensures the availability of raw materials and labour easily. Liquidity: Stretched Liquidity profile is stretched marked by expected cash accruals of INR6-6.5 crore against term debt obligations of INR5-6 crore. The timely completion of capacity expansion and ramp up of operation remain key monitorable. The liquidity is further supported in form of promoters' USL. Outlook: Stable CRISIL Ratings believes LCL will continue to benefit from the expertise of the partners. Rating Sensitivity factors Upward factors * Net cash accrual of above INR7-8 crore * Ramp up in production Downward factors * Substantial overrun of 20% or more in project cost * Major delay in the commencement of operations LCL, incorporated in 2020, is promoted by Mr. Jitendra Rojmala and family members. The management has set up greenfield project for the manufacturing of vitrified tiles. The manufacturing unit is located at Morbi (Gujarat). MANGALDEEP RICE: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Mangaldeep Rice Mill Private Limited (MRM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating) Term Loan 8.24 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MRM 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 MRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MRM continues to be 'CRISIL D Issuer Not Cooperating'. MRM, incorporated in 2010-11 (refers to financial year, April 1 to March 31), processes paddy. It has milling capacity of 4 tonnes per hour and sells mainly to the Government of Bihar under the public distribution system. It also sells in the local market. MANISH EMPIRE: CRISIL Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating on bank facilities of Manish Empire (ME) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 12.6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with ME 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 ME, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ME is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ME continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2014 by Vadodara-based Mr. Manish Patel and his family members, ME has a hotel in Vadodara. MAX UNITED: Ind-Ra Assigns 'B' Bank Loan Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Max United Foundation bank loans the following rating: -- INR20 mil. Bank loans assigned with IND B/Stable rating. The rating factors in Max United Foundation's small size and scale of operations, the low seasoning of its loan book, low vintage in operations and modest profitability buffers. Also, since Max United Foundation is a trust, it cannot register its borrowers in the credit bureau; hence, the chances of its borrowers overleveraging are higher than otherwise. KEY RATING DRIVERS The ratings reflect Max United Foundation's small size and scale of operations as indicated by its outstanding micro loan portfolio of INR5.95 million at end-September 2020 (FYE20: INR4.4 million). Also, the foundation's entire portfolio was originated from a single district of Ernakulam of Kerala, exposing it to geographical concentration risk. The entity plans to expand in the adjoining districts over the near-to-medium term. Ind-Ra has maintained a negative outlook on the microfinance institutions (MFIs), especially the mid-small sized MFIs for 2HFY21. Collections for the microfinance sector, which had plummeted to near zero levels in April 2020, as physical collections were not possible because of the nationwide lockdown, have made a reasonable recovery with collection levels almost exceeding 90% over November-December 2020. The recovery can be attributed to the significant share of borrowers in the essential services' supply chain, limited political headwind, the limited spread of COVID-19 in rural regions and the satisfactory performance of the rural economy in 1HFY21. Ind-Ra believes most MFIs could see a credit cost of 5%-10% over the medium term, given the pick-up in collections has now slowed down, especially in urban regions and states such as West Bengal and Maharashtra and to an extent, Tamil Nadu. While the high liquidity and liability challenges that most MFIs faced in the beginning of the lockdown have abated, Ind-Ra expects smaller MFIs, especially those that are not formally regulated, to continue to face challenges over the medium term, especially to raise funding. The ratings are constrained by Max United Foundation's weak borrower profile as it cannot enlist its borrowers to credit bureaus, which enhances the riskiness of the borrowing profile. Ind-Ra believes in the background of microfinance institutions being subject to systemic and idiosyncratic risks typical of serving the needs of a socio-politically and economically vulnerable segment, the company's inability to access credit bureaus could result in such an entity onboarding more risk than it may be able to manage. Liquidity Indicator – Adequate: The entity was able to raise funds to the tune of INR6 million from banks at competitive rates in FY20; however, how the entity manages its leverage (debt to tangible net worth; FY20: 1.1x; FY19: 1.6x) and incremental funding support from lenders are a key monitorable. The entity maintains liquidity of INR0.1 million on a monthly basis which, along with inflows from advances, provides adequate cover to the tune of INR0.17 million to monthly debt outflows. Furthermore, considering its vintage in the microfinance sector, Max United Foundation could face challenges in attracting capital support and incremental funding support as it is an unregulated non-profit organization. The foundation, however, plans to adopt most norms applicable to a non-banking financial company, including having higher standard provisions, and operate in a regulated form of MFI. The rating, however, is supported by zero non-performing loans over FY18-FY20. The healthy asset quality has historically been supported by the company's ability to record efficient collections (FYE20: 99.06%). However, its collection efficiency moderated at end-September 2020, owing to a challenging operating scenario and portfolio at risk 180 days past due stood at 0.91% (FYE20: nil; FYE19: nil). The pre-provisioning operating profit buffers were weak at 1.3% at FYE20 (FYE19: 1.0%) and the accruals were limited at 2.2% (1.5%) to absorb any asset quality pressures in the near term, which might augment due to the COVID-19-led disruptions impacting the profitability. RATING SENSITIVITIES Positive: The rating could be upgraded if the trust is able to significantly expand and diversify its franchise, scale-up operations while maintaining adequate short-term liquidity, improve capital buffers and lower leverage on a sustained basis while maintaining the asset quality. Negative: An inability to maintain adequate capital and back-up liquidity provisions, rising leverage, deterioration in the asset quality (gross non-performing assets above 5%), higher-than-expected credit costs or a drop-in collection, could result in a negative rating action. COMPANY PROFILE Max United Foundation was founded by Jose A. Kuriakose and Anish John in 2017 with focus to serve underprivileged and empower women. It is a registered public charitable trust (NGO-MFI), headquartered at Kothamangalam, Kerala. The trust provides personal unsecured micro loans to its members. Its loan portfolio consists of women self-help group loans. The trust also provides house repair loans, general purpose loans based on the repayment track record for micro-loans. MNR DAIRY: CRISIL Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of MNR Dairy Farms (MNR) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 25 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MNR 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 MNR, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MNR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MNR continues to be 'CRISIL D Issuer Not Cooperating'. MNR was set up as a partnership concern in 2011 Mr. M Narsi Reddy and family. The firm processes milk, which it sells under the brand Kiaro. It is based in Hyderabad. MORINDA RICE: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Morinda Rice and Gen. Mills (MRGM) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.25 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.75 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with MRGM 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 MRGM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MRGM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MRGM continues to be 'CRISIL D Issuer Not Cooperating'. Established in 1981 as a proprietorship entity and promoted by Mr. Prem Singh, Morinda Rice & Gen. Mills (MRGM) is engaged in the milling and processing of paddy into non-basmati rice. It has an installed paddy milling capacity of 10 tonnes per hour (tph) at Ropar district in Punjab. NAVEEN POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Naveen Poultry Farms Private Limited (NPFL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.7 CRISIL D (Issuer Not Cooperating) Long Term Loan 4.0 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with NPFL 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 NPFL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NPFL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NPFL continues to be 'CRISIL D Issuer Not Cooperating'. NPFL was set up in 2011 by Mr. K Kiran Kumar, Mrs. K Saritha Rao, and Mr. V Narendra Reddy. The company produces commercial eggs at its facility in Hyderabad. NICE MARINE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Nice Marine Exportts (India) Private Limited (NMEPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 2 CRISIL D (Issuer Not Cooperating) Cash Credit 5 CRISIL D (Issuer Not Cooperating) Packing Credit 3 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with NMEPL 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 NMEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NMEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NMEPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in April 2012, NMEPL is based in Hyderabad, and trades in shrimp and other fishes. PARADIGM TUNNELING: Ind-Ra Keeps 'D' Rating in Non-Cooperating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Paradigm Tunneling Private Limited's (PTPL) 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: -- INR100 mil. Fund-based working capital limit (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR15 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 2013, Paradigm Tunneling undertakes contracts for water drainages, tunneling, and water pipelining projects. RAJ BREEDERS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Raj Breeders and Hatcheries Private Limited (RBHPL; part of the Raj group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18.3 CRISIL D (Issuer Not Cooperating) Long Term Loan 9.2 CRISIL D (Issuer Not Cooperating) Proposed Long Term Bank Loan Facility 0.9 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RBHPL 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 RBHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RBHPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RBHPL continues to be 'CRISIL D Issuer Not Cooperating'. The Raj group, which comprises RBHPL (up in 1998) and RCFPL (2002), is promoted by Mr. O P Khurana and his family. Both entities are is in the poultry farming business. RAM DEV: CRISIL Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ram Dev International Limited (RDIL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 189.07 CRISIL D (Issuer Not Cooperating) Foreign Exchange Forward 6.35 CRISIL D (Issuer Not Cooperating) Standby Line of Credit 10 CRISIL D (Issuer Not Cooperating) Term Loan 15.39 CRISIL D (Issuer Not Cooperating) Export Packing Credit 174.93 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RDIL 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 RDIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RDIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RDIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. RDIL was set up in 1999 by Mr. Naresh Singla and Mr. Suresh Singla. The company mills and processes basmati rice, which it sells in India and abroad. It has processing plants in Daha and Hemda, near Karnal, Haryana. REDDY VERANNA: CRISIL Assigns D Ratings to INR40cr Loans -------------------------------------------------------- CRISIL Ratings has revoked the suspension of its ratings on Reddy Veranna Constructions Private Limited (RVCPL) and has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities RVCPL. CRISIL Ratings had suspended the ratings on August 11, 2011, on account of non-cooperation by the company with CRISIL's efforts to undertake a review of the ratings. The company has now shared the requisite information, enabling CRISIL to assign ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 15 CRISIL D (Assigned; Suspension revoked) Overdraft Facility 25 CRISIL D (Assigned; Suspension revoked) The ratings reflect delay in debt servicing, and the continuously overdrawn bank limit for over 30 days because of weak liquidity. The ratings also reflect susceptibility to risks related to tender-based operations in the intensely competitive construction industry, working capital-intensive operations and a weak financial risk profile. However, it benefits from the extensive industry experience of the promoters. Key Rating Drivers & Detailed Description Weaknesses * Delays in debt servicing: There have been continuous overdrawing of the working capital limit for more than 30 days and also delays in servicing of debt on account of stretched liquidity. * Susceptibility to tender-based operations and intense competition: Revenue and profitability entirely depend on the ability to win tenders as the orders are based on tenders, with the major customers being various departments in the Karnataka government. Also, entities in this segment face intense competition, thus requiring to bid aggressively to get contracts, which restricts the operating margin to a moderate level. Also, given the cyclicality inherent in the construction industry, the ability to maintain the operating profitability margin through operating efficiency becomes critical. * Working capital-intensive operations: Gross current assets were high at 411-429 days over the three fiscals ended March 31, 2020. That's due to high debtors and inventory. The company is required to extend long credit periods to customers. Furthermore, due to its business need, it holds large work in process and inventory. * Weak financial profile: The gearing was high at 3.32 times as on March 31, 2020. Debt protection metrics have been weak, with interest coverage and net cash accrual to total debt ratios at 1.43 times and 0.03 time, respectively, for fiscal 2020. Strength * Extensive industry experience of the promoters: The promoters have an experience of over 40 years in the civil construction industry. This has given them an understanding of the dynamics of the market, and enabled them to establish relationships with suppliers and customers. Liquidity Poor Liquidity is impacted by continuous overdrawing of the working capital facility and delays in debt servicing. Liquidity is likely to improve with prudent working capital management. Rating Sensitivity factors Upward factors * Track record of timely debt servicing for more than 90 days * Significant improvement in liquidity following prudent working capital management * A considerable increase in revenue and/or profitability, leading to higher cash accrual RVCPL was set up as a proprietorship firm, Reddy Veeranna & Co in 1980; the firm was reconstituted as a private limited company with the current name in 2002. It is based in Bengaluru and promoted by Mr. Reddy Veeranna The company undertakes civil construction works such as construction of roads, bridges, BOT (build, operate, transfer) projects, irrigation works, and office buildings, for government entities and private players in various south India states. ROYSONS CERAMICS: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Roysons Ceramics Private Limited (RCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.35 CRISIL D (Issuer Not Cooperating) Term Loan 12.50 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RCPL 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 RCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RCPL continues to be 'CRISIL D Issuer Not Cooperating'. RCPL, incorporated in August 2016, manufactures products such as general castable, calcined clay, high alumina castable and mortar, magnesite ramming mass, and bed materials. The plant in Burdwan (West Bengal) has production capacity of 31,200 tonne per annum. Commercial operations started from February 2018. Mr. Saubhik Ray, Mr. Subhankar Ray and Mr. Gopal Ray are the directors. RUSAN PHARMA: Ind-Ra Corrects July 10, 2020 Rating Release ---------------------------------------------------------- India Ratings and Research (Ind-Ra) rectified Rusan Pharma's ratings published on July 10, 2020 to correctly state the ratings of the non-fund-based working capital limit and long-term loan in the primary table and the history table. The amended version is: -- INR 320 mil. Fund-based limits downgraded with IND BB (ISSUER NOT COOPERATING) rating; -- INR 100 mil. Non-fund-based limits downgraded with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR 35.3 mil. Term loan downgraded with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The downgrade is pursuant to the SEBI Circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3, 2020. As per the circular, any issuer with investment grade rating remaining non-cooperative with the rating agency for more than six months should be downgraded to sub-investment grade rating. Please refer to the agency's website www.indiarating.co.in. Rusan Pharma has been non cooperative with the agency from September 5, 2017. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect its credit strength as the issuer has been non cooperative with agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Incorporated in 1994, Rusan Pharma manufactures formulations, bulk drugs and active pharmaceutical ingredients. It primarily manufactures products that are used to cure addiction and pain. RUSAN PHARMA: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Rusan Pharma Ltd's Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR320 mil. Fund-based limit* maintained in the non- cooperating category and withdrawn; -- INR100 mil. Non-fund-based limit*# maintained in the non- cooperating category and withdrawn; and -- INR35.3 mil. Term loan* maintained in the non-cooperating category and withdrawn. *Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being withdrawn *#Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category before being withdrawn because the issuer did not participate in the rating exercise, despite repeated requests by the agency, and has not provided information about the interim financials, sanctioned bank facilities and utilization, business plans, projections for the next three years, information on corporate governance, and the management certificate. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lenders. 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 1994, Rusan Pharma manufactures formulations, bulk drugs, and active pharmaceutical ingredients. It primarily manufactures products that are used to cure addiction and pain. SALEM TOLLWAYS: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Salem Tollways Ltd's bank loan rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating actions are: -- INR667.03 mil. Long-term senior project bank loan (long-term) migrated to non-Cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR99.83 mil. Subordinated loan (long-term) migrated to non- Cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 31, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings COMPANY PROFILE Salem Tollways, which is wholly owned by IVRCL Limited ('IND D (ISSUER NOT COOPERATING)', is a special purpose company set up to widen, operate and maintain a 53km stretch on the National Highway-47 between Kumarapalayam and Salem in Tamil Nadu. SAMBANDAM SIVA: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sambandam Siva Textiles Private Limited's Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. Thus, the rating is based on the best available information. The detailed rating actions are: -- INR16.4 mil. Term Loan* due on March 2021 maintained in the non-cooperating category and withdrawn; -- INR185.0 mil. Fund-based working capital facilities# maintained in the non-cooperating category and withdrawn; -- INR55.0 mil. Non-fund-based facilities# maintained in the non- cooperating category and withdrawn; *Maintained at 'IND BB (ISSUER NOT COOPERATING)’ before being withdrawn #Maintained at 'IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn #Maintained at 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category because the issuer 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' lenders. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Ind-Ra will no longer provide rating or analytical coverage for SSTPL. COMPANY PROFILE Sambandam Siva Textiles, incorporated in 1994 as a private limited company, is a Salem-based cotton yarn manufacturer. It was a public limited company and was subsequently converted to private limited company in 2003. The company has an installed capacity of 30,240 spindles with 85% capacity utilization. SIDDHIVINAYAKA AGRO: CRISIL Keeps C Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shree Siddhivinayaka Agro Extractions Private Limited (SSAEPL) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL C (Issuer Not Cooperating) Proposed Long Term 5.0 CRISIL C (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SSAEPL 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 SSAEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSAEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSAEPL continues to be 'CRISIL C Issuer Not Cooperating'. SSAEPL was established in 1988 as a private limited company by Mr. Purshottam Pallod and his family members. The company is engaged in processing of soya bean seeds to produce soya-bean oil, and soya-bean de-oiled cakes. The company's plant is located in Zaheerabad, Andhra Pradesh. SIPL TEXTILES: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of SIPL Textiles Private Limited (SIPL; earlier Saurer Embroidery Systems India Pvt Ltd) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.1 CRISIL D (Issuer Not Cooperating) Cash Credit 3.75 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3.59 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 4.06 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SIPL 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 SIPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SIPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 1997, SIPL embroiders fabric. It was the sole marketing and servicing agent for Switzerland-based Oerlikon Saurer (manufacturer of shuttle embroidery machines) products in India. However, this business was discontinued in fiscal 2016. SIPL's manufacturing plant is in Gurgaon, Haryana. SOCIETY FOR INDO: CRISIL Assigns B+ Rating to INR12cr LT Loan ------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Society for Indo German Institute of Advanced Technology (IGIAT). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 12 CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflects small scale and not-for-profit nature of operations and high dependence of projects from Government, NGOs and corporates. These weaknesses are partially offset by established network and track record of successful projects execution in the past and healthy capital structure. Key Rating Drivers & Detailed Description Weakness: * Small scale and not-for-profit nature of operations: IGIAT is organized as a not-for-profit society. The primary purpose of IGIAT is making people employable through various activities including skill development. Owing to low-value government social projects in limited Tier-2 and 3 cities, IGIAT's operations have remained small with an annual revenue of around Rs. 2.34 crore reported in 2019-20. * High dependence of projects from Government, NGOs and Corporates: IGIAT derives its revenues from projects which are mainly from Governments and NGOs leading to stress on operations and revenue visibility. Strengths: * Established network and track record of successful projects execution in the past: The society has extensive network coverage in Andhra Pradesh, Delhi, Telangana and many other states in the past 14 years. The society caters mostly to the weaker sections of the rural and urban areas and also plans to provide more benefits under various govt. schemes which are also mandated by the GOI. * Healthy capital structure: The capital structure has remained healthy due to low reliance on external funds. The total outside liabilities to adjusted tangible networth ratio was thus low in the three fiscals ended March 31, 2020. Liquidity: Stretched Cash accrual is expected at below INR1 lakh per fiscal over the medium term against no debt, and hence will act as a cushion to liquidity. The current ratio was healthy at 4.18 times as on March 31, 2020. Low gearing and a moderate networth support financial flexibility, and provide a cushion in case of any adverse conditions or downturns in the business. Outlook Stable CRISIL Ratings believe IGIAT will continue to benefit from the established network and track record of successful projects execution in the past. Rating Sensitivity factors Upward factors * A significant and substantial increase cash accrual to INR10 lakh per fiscal along with an increase in revenue visibility. * Improvement in corpus fund which leads to improvement in financial risk profile Downward factors * Delay in signing or withdrawal of the MOU, leading to further deterioration in the business risk profile. * A decline in revenue to below INR1 crore per fiscal. Set up in Visakhapatnam, IGIAT is a partnership project of the Government of Andhra Pradesh, the Government of Germany and Gayatri Vidya Parishad (a reputed educational trust in Visakhapatnam). The main objective is to provide training in advanced technologies and consultancy services. IGIAT is currently managed by Mr. B Vinod Kumar. SOMANI MOTORS: CRISIL Withdraws B+ Rating on INR11cr Debt --------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Somani Motors Private Limited (SMPL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Ratings' policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Electronic Dealer 11 CRISIL B+ /Stable (ISSUER NOT Financing Scheme COOPERATING; Rating (e-DFS) Withdrawn) CRISIL Ratings has been consistently following up with SMPL for obtaining information through letters and emails dated April 29, 2020 and May 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 SMPL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on SMPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has Continues the ratings on the bank facilities of SMPL to 'CRISIL B+/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of SMPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Ratings' policy on withdrawal of its rating on bank loan facilities. Incorporated in 2010, Baramati-based SMPL has a dealership for HMIL. Mr. Sushil Somani, Mr. Subhash Somani, and Mr. Mahesh Somani are the promoters. SREENIDHI RAJA: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sreenidhi Raja Packing Solutions 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: -- INR45 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR18.02 mil. Term loan due on October 2022 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on January 23, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2011 as a private company, Sreenidhi Raja Packing Solutions manufactures corrugated boxes, printed cartons, paper honeycomb pads, and multi-color printed boxes at its manufacturing unit located in Gajulamandyam, Andhra Pradesh. SRIKARA PARENTERALS: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Srikara Parenterals Private Limited (SPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (Issuer Not Cooperating) Funded Interest 2.58 CRISIL D (Issuer Not Term Loan Cooperating) Long Term Loan 2.52 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.72 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Working Capital 2.18 CRISIL D (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with SPPL 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 SPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SPPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2006 and based in Vijayawada (Andhra Pradesh), SPPL manufactures intravenous fluids used in the healthcare industry. The company is promoted by Mr. Gorla Naga Manikyala Rao, and its day-to-day operations are managed by Mr. Prem Raj Rayepudi. SRINIVAS INFRASTRUCTURE: Ind-Ra Keeps BB+ Rating in Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Srinivas Infrastructure 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 now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR70 mil. Fund-based facilities maintained in non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR100 mil. Non-fund-based facilities maintained in non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; -- INR30 mil. Proposed fund-based facilities* is withdrawn; and -- INR100 mil. Proposed non-fund-based facilities* is withdrawn. *Since it was outstanding for more than 180 days Note: ISSUER NOT COOPERATING: The ratings were last reviewed on February 7, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1995, Srinivas Infrastructure executes civil construction contracts in Andhra Pradesh and Telangana. SRK FABRICS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of S.R.K. Fabrics (SRK) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3.3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 3.2 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SRK 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, 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 is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRK continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2008 and based in Ludhiana (Punjab), SRK manufactures knitted fabrics. The firm has a manufacturing unit in Ludhiana with a capacity of around 5 tonnes per day, and is owned and managed by Mr. Sachin Kaushal. SSMP INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of SSMP Industries Limited (SSMP) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL D (Issuer Not Cooperating) Packing Credit 10.5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SSMP 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 SSMP, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSMP is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSMP continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Incorporated in 2007 in New Delhi, SSMP is a closely held public-limited company. SSMP processes fruit pulp, largely mango pulp. The company generates majority of its revenue via export of pulp, under the brand Garden Fresh, to the Middle East countries. STANDARD AUTOGEARS: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Standard Autogears Private Limited (SAPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 3.75 CRISIL D (Issuer Not Cooperating) Open Cash Credit 3.00 CRISIL D (Issuer Not Cooperating) Proposed Cash 0.50 CRISIL D (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with SAPL 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 SAPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAPL continues to be 'CRISIL D Issuer Not Cooperating'. SAPL, incorporated in 1997 in Mohali (Punjab) by Mr. Anil Atri, manufactures ceiling fan blades and refrigerator components. It has a fan blade manufacturing plant in Mohali with capacity of 100,000 packs. STEELWAYS ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Steelways Enterprises (SE) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SE 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 SE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SE continues to be 'CRISIL D Issuer Not Cooperating'. SE was set up in 1983 as a partnership firm by Delhi-based Sharma family. After a family separation, SE was reconstituted as a proprietorship firm owned by Mr. B N Sharma. SE trades in tool steels and alloy steels, such as cold work tool steel, plastic mould steel, stainless steel, high-speed steel, and die block steel, in the National Capital Region, Punjab, and Uttar Pradesh. Mr. B N Sharma and his son Mr. Pawan Sharma actively manage the firm's day-to-day operations. STONEX INDIA: Ind-Ra Keeps BB LT Issuer Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Stonex India Private Limited's (SIPL) Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)' in the non-cooperating category and simultaneously withdrawn it. The instrument-wise rating actions are: -- INR450 mil. Fund-based limits* maintained in the non- cooperating category and withdrawn; and -- INR330 mil. Term loan** due on March 31, 2022 maintained in the non-cooperating category and withdrawn *Maintained at 'IND BB (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn. **Maintained at 'IND BB (ISSUER NOT COOPERATING)' before being withdrawn. KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category because SIPL 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 it has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE SIPL was formed as a partnership firm named Stonex India in 2003. It was reconstituted as a private limited company with the current name in 2007. It is trades marbles. TRIMURTI FABRICATORS: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Trimurti Fabricators Private Ltd.'s (TFPL) Long-Term Issuer Rating at 'IND BB+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR10 mil. Fund-based working capital limit affirmed with IND BB+/Stable/ IND A4+ rating; and -- INR75 mil. Non-fund-based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects TFPL's continued small scale of operations. The company's revenue significantly improved to INR571 million in FY20 (FY19: INR368 million) mainly due to the execution of large, new orders from MRF Limited and Bayer Vapi Pvt. Ltd. As of January 2021, TFPL had an unexecuted order book of INR417.3 million, to be completed in FY22, providing low revenue visibility of 0.73x of FY20 revenue. Furthermore, TFPL's new orders are dependent on the capex spending of corporates, and are thereby discretionary in nature. This results in a volatile order book. The company achieved a revenue of INR180 million over 9MFY21 (9MFY20: INR422 million). Thus, Ind-Ra expects the company's revenue to decline in FY21 on account of a low order book. The ratings factor in TFPL's healthy EBITDA margin, which expanded to 13.2% in FY20 (FY19: 12.1%) owing to reduction in its administrative expenses. Its return on capital employed stood at 19% in FY20 (FY19: 12%). The ratings are also supported by TFPL's strong credit metrics. Its interest coverage (operating EBITDA/gross interest expense) improved to 26.3x in FY20 (FY19: 13.2x) on account of an increase in the absolute EBITDA to INR75 million (INR44 million) as well as a decrease in the interest cost to INR2.86 million (INR3.37 million). The company's net leverage (total adjusted net debt/operating EBITDAR), however, increased to 2.2x in FY20 (FY19: 0.3x) due to an increase in the lease rent debt to INR299.6 million (INR148.5 million). Ind-Ra expects TFPL's credit metrics to remain strong in the near term owing to the absence of any debt-funded capex plan. Liquidity Indicator - Adequate: TFPL's average utilization of fund-based limit was around 53.4% of the sanctioned limits for the 12-months ended December 2020. Its cash flow from operations (CFO) deteriorated to negative INR42.4 million in FY20 (FY19: negative INR4.4 million) mainly due to an increase in the working capital requirement. Also, the free cash flow increased to negative INR47.3 million in FY20 (FY19: negative INR12.2 million) due to the negative CFO. The company's cash & cash equivalents stood at INR118.56 million in FY20. Ind-Ra expects its CFO to increase in FY21 due to a decrease in the company's working capital requirement. In FY20, the net cash cycle shortened to 160 days (FY19: 233 days) mainly due to a fall in the inventory days to 78 days (FY19: 165 days). The ratings further continue to be supported by the promoters' experience of over two decades in the mechanical fabrication business. RATING SENSITIVITIES Positive: Any increase in the order book, leading to an improvement in the scale of operations, along with an improvement in the liquidity position, will be positive for the ratings. Negative: Any decline in the revenue or a stretch in the liquidity position will be negative for the ratings. COMPANY PROFILE TFPL is promoted by Rajeev Vaidya, Hemant Mhatre and Abhay Aphale. It undertakes engineering, procurement and construction mechanical fabrication activity-related contracts, such as piping, structural work, tank fabrications and all kinds of erection. UNITED WIRE: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of United Wire Products (UWP) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11.95 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.88 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 0.17 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with UWP 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 UWP, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on UWP is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of UWP continues to be 'CRISIL D Issuer Not Cooperating'. UWP, set up in 1994, manufactures several types of mild steel wires such as galvanised wires, earth wires, barbed wires, binding wires, chain-link fencing, stitch wires, and black annealed wires. These products are used by the automobile, construction, and agricultural-based industries, and electricity boards, among others. USHA CUBALS: CRISIL Withdraws D Rating on INR20cr Loan ------------------------------------------------------ Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the rating of Usha Cubals Private Limited (UCPL) to 'CRISIL D Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on bank facility of UCPL following a request from the company and on receipt of a 'no dues certificate' from the banker. Consequently, CRISIL Ratings is migrating the rating on bank facility of UCPL from 'CRISIL D Issuer Not Cooperating' to 'CRISIL D'. The rating action is in line with CRISIL Rating's policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL D (Migrated from 'CRISIL D ISSUER NOT COOPERATING'; Rating Withdrawn) Long Term Loan 8 CRISIL D (Migrated from 'CRISIL D ISSUER NOT COOPERATING'; Rating Withdrawn) UCPL, set up in 2010 by Mr. S K Agarwal, trades in bullion and copper scrap, with bullion trading contributing most of its revenue. The company currently trades in gold jewellery. VAIBHAV EDIBLES: Ind-Ra Cuts Long-Term Issuer Rating to 'BB' ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Vaibhav Edibles Private Limited's (VEPL) Long-Term Issuer Rating to 'IND BB (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. The instrument-wise rating actions are: -- INR180 mil. Fund-based limits downgraded IND BB (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR20.4 mil. Long-term loans due on October 2022 downgraded with IND BB (ISSUER NOT COOPERATING) rating. KEY RATING DRIVERS The downgrade is pursuant to the SEBI Circular SEBI/HO/MIRSD/CRADT /CIR/P/2020/2 dated January 3, 2020. As per the circular, any issuer with an investment grade rating remaining non-cooperative with the rating agency for more than six months should be downgraded to a sub-investment grade rating. For further details, please refer to the agency's website - www.indiarating.co.in. VEPL has been non cooperative with the agency from 18 June 2020. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect VEPL's credit strength as the issuer has been non cooperative with agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Incorporated in February 2003, VEPL is engaged in the refining and trading of edible oils such as rice bran oil, soyabean oil, mustard oil, palm oil, and sunflower oil. VENKATESWARA RICE: CRISIL Lowers Rating on INR5cr Loan to D ----------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facility of Sri Venkateswara Rice Mill (SVRM) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' factoring in the delays in debt servicing and continuous overdrawals on working capital facilities for more than 30 Days. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 1 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Proposed Long Term 4 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SVRM for obtaining information through letters and emails dated August 30, 2019 and September 20, 2020 and December 18, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 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 entity. Such non-cooperation by a rated entity may be a result of deterioration in its credit risk profile. Ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings has not received any information on either the financial performance or strategic intent of SVRM, which restricts the ability of CRISIL Ratings to take a forward looking view on the entity's credit quality. CRISIL Ratings believes the rating action on SVRM is consistent with 'Assessing Information Adequacy Risk'. Based on the best available information, CRISIL Ratings has downgraded its rating on the long-term bank facility of SVRM to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' factoring in the delays in debt servicing and continuous overdrawals on working capital facilities for more than 30 Days. SVRM is engaged in milling and processing of paddy into rice, rice bran, broken rice and husk. The firm is promoted by Mr.T.Sura Reddy and his family members. The firm is based in Komaripalem, Andhra Pradesh. VIKRAM INFRASTRUCTURE: Ind-Ra Moves 'B' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vikram Infrastructure Company's (VIC) 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 B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR150 mil. Fund-based limit migrated to non-cooperating category with IND B (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based limit migrated to non-cooperating category with IND A4 (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 VIC is a partnership firm established in 1989 and is located in Vapi (Gujarat). It has three main areas of business, namely infrastructure (civil construction), mining, and ready-mix concrete. VIC undertakes public works department projects for the governments of Silvassa and Daman. VIMAL INDUSTRIES: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Vimal Industries (VI) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating) Proposed Long Term 1.27 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 2.73 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with VI 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 VI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VI continues to be 'CRISIL D Issuer Not Cooperating'. VI is a proprietary concern established by Mr. R Manilachelvan in 1994. The firm manufactures sheet metal and pressed components and undertakes fabrication works for the electrical and automotive industries. VIRINCHI HEALTHCARE: Ind-Ra Withdraws 'D' Term Loans Rating ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Virinchi Healthcare Private Limited's (VHPL) term loans' rating in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR640.21 mil. Term loans (Long-term) due on November 2025 maintained in non-cooperating category and withdrawn. * Maintained at 'IND D (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category as VHPL 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 it has received no-objection certificates from the rated facilities' lenders. This is consistent with the Securities and Exchange Board of India's circular dated November 17, 2020 for credit rating agencies. COMPANY PROFILE Incorporated in 2013, VHPL operates a multi-specialty hospital in Banjara Hills, Hyderabad, which was commissioned in August 2016. VIROO MAL: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Viroo Mal Mulkh Raj Jain Rice Mills Private Limited (Viroo) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 58 CRISIL D (Issuer Not Cooperating) Warehouse Financing 19 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Viroo 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 Viroo, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Viroo is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Viroo continues to be 'CRISIL D Issuer Not Cooperating'. Viroo was set up as a proprietorship firm by Mr. Gulshan Jain in 2003; it was reconstituted as a partnership firm in July 2012, and as a private limited company in March 2015. The company processes and trades in rice. VISHESH DIAGNOSTICS: Ind-Ra Moves BB- LT Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Vishesh Diagnostics Private Limited's (VDPL) 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: -- INR70 mil. (reduced from INR1.518 bil.) Term loans* due on August 2023 migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR120 mil. Proposed fund based working capital limits withdrawn (the company did not proceed with the instrument as envisaged). *VDPL repaid INR1,449 million of term loans. Ind-Ra has received no-dues certificate from the lenders and has withdrawn the rating of the debt which is repaid fully. 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 Incorporated in 1986, VDPL provides diagnostics facilities and operates two hospitals in Indore. VISION MINERALS: CRISIL Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Vision Minerals and Energy (VME) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.25 CRISIL D (Issuer Not Cooperating) Export Packing 6 CRISIL D (Issuer Not Credit & Export Cooperating) Bills Negotiation/ Foreign Bill discounting CRISIL Ratings has been consistently following up with VME 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 VME, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VME is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VME continues to be 'CRISIL D Issuer Not Cooperating'. VME was established in 2007 by Mr. Sikander Alam as a proprietorship firm. It sells drilling fluids and mud chemicals to oil and gas drilling and exploration companies. VME has a presence in the domestic as well as export market and is based in Delhi. ========= J A P A N ========= ANA HOLDINGS: Plans to Cut Workforce by 20% Over 5 Years -------------------------------------------------------- Japan Today reports that ANA Holdings Inc plans to reduce its workforce in the aviation business by roughly 20 percent over the next five years through natural attrition to cut costs and cope with the COVID-19 crisis that has depressed travel demand, sources familiar with the matter said. The parent of All Nippon Airways Co expects the number of employees in the business to fall to 30,000 by March 2026 from 38,000 estimated at the end of March this year by reducing new hires and with retirement, the sources said, Japan Today relays. The report says the plan is the latest effort by the major Japanese airline to meet a goal of slashing costs by JPY100 billion over the five-year period. ANA Holdings estimates a record net loss of JPY510 billion in the current business year ending in March, as it is struggling to deal with a slump in air travelers with no immediate end in sight to the coronavirus pandemic. According to Japan Today, the company has already begun cutting costs to ride out the crisis, canceling both domestic and international flights and reducing its fleet, including B-777s that are used for long-distance flights. ANA normally hires around 3,000 new graduates every year, the report notes. But the company is planning to hire about 700 for fiscal 2021 starting from April and about 200 for fiscal 2022. It sees about 2,000 employees leave the company every year. Besides the aviation business, ANA runs real estate and IT businesses. Its total workforce is expected to be around 46,000 at the end of March, adds Japan Today. About ANA Holdings Headquartered in Tokyo, Japan, Ana Holdings Incorporated provides a variety of air transportation-related services. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 5, 2020, Egan-Jones Ratings Company, on October 30, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Ana Holdings Inc. to B+ from BB-. ================= S I N G A P O R E ================= SINGAPORE AIRLINES: Post $142MM Net Loss in Q3 Ended Dec. 31 ------------------------------------------------------------ Ven Sreenivasan at The Straits Times reports that better operating numbers and lower write-downs saw Singapore Airlines report a lower loss in the third quarter compared with the previous three months. According to the report, the carrier racked up a net loss of $142 million for the three months to Dec. 31, 2020, compared with a net profit of $315 million in the same period in 2019. However, the latest figures were a significant improvement on the massive $2.34 billion loss in the July-September period. Those second-quarter results were also marked by huge impairment write-downs in the wake of the Covid-19 pandemic, the report says. Third-quarter revenue was $1.07 billion, less than a quarter of the $4.47 billion a year earlier but an improvement on second-quarter turnover of $783.8 million, The Straits Times discloses. Revenue was $2.7 billion for the nine months to Dec 31, down from $12.795 billion during the same period a year earlier. Net fuel costs declined $933 million or 77.3 per cent to $274 million as capacity cuts and lower prices reduced costs before hedging. It recorded a net gain of $63 million on fuel hedging and derivatives, according to The Straits Times. The Straits Times says while operating conditions remain challenging, with most borders closed, SIA's cargo operations did relatively well servicing global supply chains. Transporting vaccines is also boosting cargo operations, said a company spokesman, The Straits Times relays. SIA still sits on cash of $7.1 billion. It raised $13.3 billion last year through its rights issue and bonds, the report notes. With its cash burn at about $250 million a month, it should have enough financial firepower to last until the first quarter of 2024. According to The Straits Times, SIA has deployed 62 of its 185 planes, with the rest parked. All seven freighters and 24 passenger jets are on cargo-only operations. SIA gradually reinstated services to key cities and mounted additional frequencies to existing destinations during the third quarter. "Based on our current schedules, as of end-April 2021, the group's total passenger capacity is expected to be at around 25 per cent of pre-Covid levels, and we expect to serve around 45 per cent of the points that we flew to before the crisis," the airline said. But the company -- recently cited by Fortune Magazine as the second most admired company in Asia after Toyota - said it is well positioned to navigate the uncertainties and cement its leading position in the airline industry in the new normal. It said it "will remain nimble and flexible . . . and act swiftly and decisively in a fast-changing aviation environment". In short, the road to recovery remains long. But with green shoots starting to show, the airline is preparing to pull up to clearer skies, adds The Straits Times. About Singapore Airlines Singapore Airlines Limited provides air transportation, engineering, pilot training, air charter, and tour wholesaling services. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 31, 2020, Egan-Jones Ratings Company, on December 22, 2020, downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Singapore Airlines Limited to BB- from BB. ===================== S O U T H K O R E A ===================== EASTAR JET: Founder's Relative Indicted for Embezzlement -------------------------------------------------------- Yonhap News Agency reports that a senior financial official of the troubled budget carrier Eastar Jet has been indicted on charges of embezzlement and breach of trust, prosecutors said Feb. 7. The official, whose identity was withheld by the prosecution, is accused of underselling 5.2 million company shares owned by its affiliates to a specific subsidiary in 2015, which caused damage to the carrier, according to the Jeonju District Prosecutors Office, Yonhap relays. The shares were worth around KRW54 billion (US$48.06 million), but they were sold at around KRW10 billion, the prosecution said. He also allegedly used KRW3.8 billion of affiliates' funds arbitrarily between 2015 and 2019, it added. According to Yonhap, prosecutors are widening their probe into the case, suspecting the official, who is a relative of the carrier's founder, has conspired with the company management for those alleged wrongdoings. Eastar Jet's founder is independent lawmaker Lee Sang-jik, who left the ruling Democratic Party in September last year amid controversy over the company's massive layoffs and corruption allegations by some founding family members, the report notes. The cash-strapped airline applied for court receivership last month to seek ways to continue its business, after bigger low-cost carrier Jeju Air Co. scrapped its plan in July 2020 to acquire Easter Jet, according to Yonhap. Eastar Jet is a low-cost airline with its headquarters in Banghwa-dong, Gangseo-gu, Seoul, South Korea. ********* 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 ***