/raid1/www/Hosts/bankrupt/TCRAP_Public/210324.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, March 24, 2021, Vol. 24, No. 54
Headlines
A U S T R A L I A
ADVANCED TIMBER: First Creditors' Meeting Set for April 1
CIDEC PTY: First Creditors' Meeting Set for March 31
FORTESCUE METAL: Completes AUD1.9 Billion Bond Offering
FORTESCUE METALS: Moody's Rates US$1.5BB Unsec. Notes 'Ba1'
GG LEASING: First Creditors' Meeting Set for March 30
GROCON CONSTRUCTORS PTY: 2nd Creditors' Meeting Set for March 30
GROCON CONSTRUCTORS: Second Creditors' Meeting Set for March 30
GROCON GROUP: Second Creditors' Meeting Set for March 30
GROCON PROPERTY: Second Creditors' Meeting Set for March 30
GROCON PTY: Second Creditors' Meeting Set for March 30
MAYFAIR 101 GROUP: ASIC Succeeds in Court Action Against Firm
MEQUITY PTY: First Creditors' Meeting Set for March 30
TASS GOODWILL: First Creditors' Meeting Set for March 31
B A N G L A D E S H
JANATA BANK: BB Governor Asks Bank to Improve its Financial Health
C H I N A
CAR INC: S&P Places 'CCC+' LongTerm ICR on CreditWatch Positive
I N D I A
ARYALAKSHMI STEEL: CRISIL Keeps B+ Debt Rating in Not Cooperating
BANKE BIHARI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
CHANDRA MOTORS: CRISIL Keeps B+ Debt Rating in Not Cooperating
FUTURE GROUP: Court Drops Restraint on Chief's Personal Asset Sale
GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating
JAYAJOTHI TEXTILE: CRISIL Revises Rating on INR7.8cr Loan to B-
JOHAR AUTOMOBILES: CRISIL Keeps B- Debt Rating in Not Cooperating
KD INFRAENGICON: CRISIL Keeps D Debt Rating in Not Cooperating
KISHORI INDUSTRIES: CRISIL Keeps B+ Rating in Not Cooperating
KONNECTING INDIA: CRISIL Keeps D Debt Rating in Not Cooperating
KURUVITHADAM AGENCIES: CRISIL Keeps B+ Ratings in Not Cooperating
LAKSHMI NARAYANA: CRISIL Keeps B Debt Ratings in Not Cooperating
LEOFORTUNE INFRA: CRISIL Keeps D Rating in Not Cooperating
OZONE GRANITES: CRISIL Keeps B+ Debt Rating in Not Cooperating
PELICAN INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating
RAMGARH SPONGE: CRISIL Keeps B Debt Ratings in Not Cooperating
RC AUTOMOTIVE: CRISIL Keeps B- Debt Ratings in Not Cooperating
RUTUJA INDUSTRIES: CRISIL Keeps B+ Debt Rating in Not Cooperating
SAGAR PULSES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
SAI CARTON: CRISIL Keeps B Debt Ratings in Not Cooperating
SAICON TILES: CRISIL Keeps B Debt Ratings in Not Cooperating
SARDAR COTTON: CRISIL Lowers Rating on INR6cr Cash Loan to B
SARVODAY ASHRAM: CRISIL Keeps B+ Debt Rating in Not Cooperating
SWADISHT OILS: CRISIL Keeps C Debt Rating in Not Cooperating
T R SAWHNEY: CRISIL Withdraws B+ Rating on INR20cr Loan
TARGET EQUIPMENTS: CRISIL Keeps B Debt Rating in Not Cooperating
TECHOPS INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
TRIDENT AUTO: CRISIL Lowers Rating on INR15cr Cash Loan to B
VIDEO PLAZA: CRISIL Keeps B Debt Rating in Not Cooperating
VISHAL CHAIN: CRISIL Keeps B Debt Ratings in Not Cooperating
VIVANTA REALTY: CRISIL Keeps B+ Debt Rating in Not Cooperating
I N D O N E S I A
TUNAS BARU: Fitch Assigns B+ Rating on Proposed USD Bonds
S I N G A P O R E
ARTERIAL CAPITAL: Creditors' Meetings Set for March 30
NAGASAKI SHIPHOLDING: Commences Wind-Up Proceedings
XIN BO: Grant Thornton Appointed as Judicial Managers
T H A I L A N D
THAILAND: Unveils Financial Support for Pandemic-Hit Businesses
[*] Thai Billionaire's Property Unit Eyes Troubled Hotels
- - - - -
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A U S T R A L I A
=================
ADVANCED TIMBER: First Creditors' Meeting Set for April 1
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Advanced
Timber Finishes Pty Ltd ATF Advanced Timber Finishes Unit Trust
will be held on April 1, 2021, at 11:00 a.m. via Zoom meeting.
Paul William Langdon and Ian Graham Grant of Vince & Associates
were appointed as administrators of Advanced Timber on March 22,
2021.
CIDEC PTY: First Creditors' Meeting Set for March 31
----------------------------------------------------
A first meeting of the creditors in the proceedings of Cidec Pty
Ltd will be held on March 31, 2021, at 2:00 p.m. using virtual
meeting technology.
Peter Goodin of Magnetic Insolvency was appointed as administrator
of Cidec Pty on
March 19, 2021.
FORTESCUE METAL: Completes AUD1.9 Billion Bond Offering
-------------------------------------------------------
Samantha Goerling at The Market Herald reports that Fortescue
Metals Group (FMG) has completed a US$1.5 billion (AUD1.9 billion)
bond offering.
The Market Herald relates that proceeds will be used to pay off the
company's 2022 senior unsecured notes as well as for general
corporate purposes and may include the repayment of debt.
"Fortescue continues to deliver outstanding operational and
financial performance which underpins our ongoing support from the
U.S. Debt Capital Markets," the report quotes CEO Elizabeth Gaines
as saying.
"Our balance sheet is structured on low cost, investment grade
terms, maintaining flexibility to support ongoing operations and
the capacity to fund future growth."
The Market Herald says the iron ore giant initially sought to raise
US$750 million (A$966 million) but doubled the size of the
offering, citing high demand.
The senior unsecured notes have an interest rate of 4.375 per cent
and will mature in April 2031.
"The successful completion of this offering will refinance our
earliest debt maturity, extend our weighted average maturity on
terms consistent with our existing debt and further optimises
Fortescue's capital structure," said Fortescue Chief Financial
Officer Ian Wells, The Market Herald relays.
"Our disciplined capital allocation framework provides for
investment in future opportunities and the continued delivery of
value to our investors," he added.
About Fortescue Metals
Fortescue Metals Group Ltd, based in Perth, is an iron ore producer
engaged in the exploration and mining of iron ore for export,
mainly to China.
As reported in the Troubled Company Reporter-Asia Pacific on March
23, 2021, S&P Global Ratings assigned its 'BB+' issue rating and
'4' recovery rating to FMG Resources (August 2006) Pty Ltd.'s new
10-year senior unsecured US$1.5 billion notes. FMG Resources
(August 2006) Pty Ltd. is a wholly owned financing vehicle of
Fortescue Metals Group Ltd. (BB+/Stable/--). Note proceeds will
redeem the company's US$750 million 2022 notes and fund general
corporate purposes, which may include debt repayment. The 'BB+'
long-term issuer credit rating on the company remains unchanged.
The '4' recovery rating reflects S&P's expectations of average
recovery prospects (30%-50%; rounded estimate: 40%) under its
hypothetical default scenario. S&P's simulated default occurs in
2026. In S&P's view, Fortescue's creditors would realize greater
value through reorganizing the company as a going concern than
liquidating its assets.
FORTESCUE METALS: Moody's Rates US$1.5BB Unsec. Notes 'Ba1'
-----------------------------------------------------------
Moody's Investors Service has affirmed Fortescue Metals Group Ltd's
Ba1 corporate family rating. At the same time Moody's has affirmed
the Ba1 backed senior unsecured ratings of FMG Resources (August
2006) Pty Ltd -- a wholly owned financing subsidiary -- and
assigned a Ba1 to the subsidiary's new backed senior unsecured
notes issuance. The rating outlook remains stable.
Rating assigned:
Issuer: FMG Resources (August 2006) Pty Ltd
USD1,500,000,000 4.375% backed senior unsecured notes due 2031 at
Ba1
The new notes benefit from a parent guarantee from Fortescue Metals
Group Ltd and will rank pari passu with the group's existing senior
unsecured notes. The notes do not benefit from subsidiary
guarantees. The proceeds for the notes will be used to tender for
the company's senior unsecured notes due in 2022 and 2023 with any
remaining proceeds used for general corporate purposes.
RATINGS RATIONALE
"Fortescue's ratings continue to be supported by its large-scale
operations with low cash costs of production, a large base of
long-life reserves, strong credit metrics and ample liquidity",
says Matthew Moore a Moody's Vice President and Senior Credit
Officer.
Fortescue continues to exhibit strong operational performance
highlighted by increasing iron ore production volumes and the
maintenance of low cash costs of production. These high volumes and
low costs will support Fortescue's ability to continue to maintain
strong earnings and cash flow generation even in periods of lower
iron ore pricing.
The company's iron ore shipments increased 2% in the first half of
the fiscal year ended June 2021 (1H fiscal 2021) and Moody's
expects volumes for the full fiscal year of around 180 million
tonnes, which continues to position Fortescue solidly as the fourth
largest global iron ore producer. On the cost side, unit costs
remained steady in recent periods with C1 unit costs below $13 per
wet metric tonne (wmt). While Moody's expects these costs will
increase with the strengthening of the Australian dollar, the
agency believes C1 costs will remain below $14/wmt, which will
continue to position Fortescue as one of the lowest cost iron ore
producers globally.
Fortescue's credit profile is balanced by limited operational,
geographic and product diversity, as well as its exposure to
volatility in iron ore prices and downside risk for discounts
received for the lower grade ore it produces.
As a single commodity producer, Fortescue is heavily exposed to
movements in iron ore prices. However, in the current environment
this is providing significant support to earnings and cash flow
generation, as iron ore prices remain elevated from strong demand
in China and continued supply constraints in Brazil. Spot prices
for the 62% Fe index averaged around $126 per dry metric tonne
(dmt) in 1H fiscal 2021 and have increased materially above these
levels in the second half of the fiscal year. These elevated prices
allowed Fortescue to report underlying EBITDA of around $6.6
billion in the half, which was a significant 57% increase on the
previous corresponding period.
In addition to the high spot prices for the 62% Fe index, discounts
for Fortescue's products have remained tight, with the company
achieving an average price realisation of around 90% relative to
index prices in 1H fiscal 2021. These reduced grade discounts
reflected lower steel mill profitability in China, as well as a
shift in Fortescue's product mix with the addition of a 60.1% Fe
West Pilbara Fines and Fortescue Lump products in recent periods.
Fortescue continues to benefit from the flexibility provided by its
very strong balance sheet and liquidity levels. Reported net debt
was a low $110 million at December 2020 and adjusted gross
debt/EBITDA was 0.4x for the twelve-month period to December 2020.
Moody's expects that continued strong earnings and cash flow
generation will allow the company to maintain debt/EBITDA below 1x
over the next 12-18 months.
The company's ratings also reflect the potential for execution
challenges from its Iron Bridge magnetite joint venture. Fortescue
revised the estimated capital costs of the Iron Bridge project,
increasing the estimate to up to $3 billion from a previous $2.6
billion. First production from the project has also been postponed,
and Fortescue now expects this to occur in the second half calendar
2022 versus a previous target for the first half. Fortescue's
current estimate of increased development costs at Iron Bridge is
very manageable given the company's strong balance sheet and the
current high iron ore price environment. Also, once successfully
developed, Moody's believe Iron Bridge, combined with the recent
successful completion of its Eliwana project, will provide a
meaningful improvement in Fortescue's business profile. This
reflects the diversification into higher grade iron ore production
these projects will bring.
Fortescue is also looking at several potential major projects
through its Fortescue Future Industries (FFI) subsidiary and the
company is dedicating around 10% of its net profit after tax to
advancing these projects. FFI's potential projects include hydrogen
and green iron developments, among others, which would increase
diversity and reduce exposure to carbon transition risks for the
company, but may also come with execution challenges. The ultimate
timing, sequencing and complete funding for these potential
projects is still unknown.
The rating on the notes is in line with the current Ba1 rating on
the other senior unsecured notes issued by FMG Resources. The new
notes will rank pari passu with the existing notes and will rank
behind the company's term loan and credit facility, which benefit
from share specific security.
The stable outlook reflects Moody's expectation for continued
strong earnings and cash flow in the current iron ore price
environment, and that credit metrics will be maintained comfortably
within our tolerance levels for the rating over the next 12-18
months. The stable outlook also reflects that agency's expectation
that Fortescue will be able to manage any further delays and/or
increased costs from the Iron Bridge project without a material
negative impact on its overall credit profile.
As a mining company, Fortescue, like the industry as a whole, faces
numerous high environmental risks across its operations, including
in relation to natural capital and physical risks. However,
regarding carbon transition, the company has set an ambitious
target to achieve net zero operational emissions by 2030, as it
seeks to reduce use of fossil fuels through hybrid solar gas energy
projects such as Pilbara Energy Connect and Chichester Solar Gas
Hybrid Project. The company is also exploring projects in green
hydrogen production and green iron, as well as looking at battery
electric vehicle technology for its mining fleet.
Social risk considerations largely reflect health and safety and
responsible production risks, including indigenous land rights
issues.
Governance risks are balanced by Fortescues strong financial
policies and management track record. However, from a governance
perspective, we note Fortescue's concentrated ownership as a risk.
The company's founder and Chairman ultimately owns 36% of the
company and has significant influence over its initiatives and
strategic direction.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward ratings momentum would require Fortescue to continue to
demonstrate a consistent track record of strong operating
performance and continued traction towards increasing higher grade
production. A significant issue for considering a rating upgrade
will also be a firmer understanding of the company's future
strategic intentions around growth and diversification.
Moody's would also expect Fortescue to continue to maintain a
strong financial profile in line with its current expectations.
The ratings could be downgraded if realised iron ore prices fall
below Moody's base sensitivity assumptions on a sustained basis
and/or the company's cash costs and breakeven levels increase
materially.
Ratings could also be downgraded if the company embarked on debt
funded growth and/or shareholder friendly initiatives, which
materially weakened credit metrics. Financial metrics that Moody's
would consider for a downgrade include EBIT/Interest expense below
4.0x, CFO (minus dividends)/ debt below 20%, and/or debt/EBITDA
above 3.0x on a consistent basis. The rating could also be
downgraded if Fortescue's liquidity deteriorates materially from
its current level for a protracted period.
The principal methodology used in these ratings was Mining
published in September 2018.
BACKGROUND
Fortescue Metals Group Ltd, based in Perth, is an iron ore producer
engaged in the exploration and mining of iron ore for export,
mainly to China. Fortescue produces around 170-180mt of iron ore
annually, making it the fourth largest seaborne producer globally.
The company shipped 177 mt of iron ore in fiscal 2020.
GG LEASING: First Creditors' Meeting Set for March 30
-----------------------------------------------------
A first meeting of the creditors in the proceedings of GG Leasing
Pty Limited (Trading name: Eagle Has Landed Espresso, Eagle Lane
Bistro, Eagle Lane Espresso, GG Espresso, GG Lobby Bar, GG Street
Bar, Sydney Opera House Green Room, The George Bar and Bistro, The
George Bistro Sydney, The George Gregan Bistro) will be held on
March 30, 2021, at 11:00 a.m. via teleconference facilities.
Ian James Purchas of SV Partners was appointed as administrator of
GG Leasing on March 19, 2021.
GROCON CONSTRUCTORS PTY: 2nd Creditors' Meeting Set for March 30
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Grocon
Constructors Pty Ltd, Grocon Constructors (Victoria) Pty Ltd, and
Grocon Constructors Pty Ltd has been set for March 30, 2021, at
9:30 a.m. via videoconference on Microsoft Teams.
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 March 29, 2021, at 9:30 a.m.
Craig Peter Shepard and Andrew Knight of KordaMentha were appointed
as administrators of Grocon Constructors Pty on Dec. 31, 2020.
GROCON CONSTRUCTORS: Second Creditors' Meeting Set for March 30
---------------------------------------------------------------
A second meeting of creditors in the proceedings of:
- Grocon Constructors (NSW) Pty Ltd
- Grocon (Darling Harbour) Developments Pty Ltd ATF Darling
Harbour Trust
- Grocon (Darling Harbour) Pty Ltd
- Grocon (Darling Harbour) Holdings Pty Ltd
- Grocon Developments (Parklands) Pty Ltd
- Grocon ET 80 Pty Ltd
- Grocon ET Apartments Pty Ltd
- Grocon Riverside Development Pty Ltd
- Grocon Equity Pty Ltd
- Grocon (Parklands) Pty Ltd
- Grocon (Wickham St) Developer Pty Ltd
- Grocon (Burleigh Rd) Developer Pty Ltd
- Grocon (288 Exhibition Street) Pty Ltd
- Grocon (CB) JV Holdings Pty Ltd
- Grocon Constructors (VBRR) Pty Ltd
- Grocon (South Melbourne) Developer Pty Ltd
- Grocon (South Melbourne) Holdings Pty Ltd
- iO Centre for Digital Culture Pty Ltd
- A.C.N 627 016 335 Pty Ltd
- Denmark Street Developments Pty Ltd
- Denmark Street Holdings Pty Ltd
- Grocon (St Leonards) Holdings Pty Ltd
- QV Custodian Pty Ltd
- Grocon (CB) Holdings Pty Ltd
- Grocon (CB) Management Pty Ltd
- Grocon (Spring Street) Holdings Pty Ltd
- GRD Real Estate Pty Ltd
- QV Carpark Pty Ltd
- Grocon QV Holdings No.2 Pty Ltd ATF Grocon QV Holding
Trust 2
- Grocon QV Holdings No.3 Pty Ltd ATF Grocon Holding Trust
- Grocon QV Holdings No.4 Pty Ltd ATF Grocon Holding Trust
- Grocon QV Holdings No.5 Pty Ltd ATF Grocon Holding Trust
- GPFA Pty Ltd
- CR 163 Pty Ltd ATF 163 Canterbury Road Investments Trust
- Grocon Capital Pty Ltd
- Grocon (Carlton Brewery) Holdings Pty Ltd
- Grocon (SQ Stage 2) Holdings Pty Ltd
- Grocon (Victoria Street) Holdings Pty Ltd
- Grocon (Victoria Street) Developments No.1 Pty Ltd ATF
Victoria Street Development Trust No.1
- Grocon (Gaffney Street, Coburg) Pty Ltd
- Grocon Developments VIC Pty Ltd
- Grocon International Investments Pty Ltd
- Grocon International Pty Ltd
- Grocon Media House Investments Pty Ltd
has been set for March 30, 2021, at 9:30 a.m. via videoconference
on Microsoft Teams.
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 March 29, 2021, at 9:30 a.m.
Craig Peter Shepard and Andrew Knight of KordaMentha were appointed
as administrators of Grocon Constructors et al. on Feb. 22, 2021.
GROCON GROUP: Second Creditors' Meeting Set for March 30
--------------------------------------------------------
A second meeting of creditors in the proceedings of Grocon Group
Holdings Pty Ltd has been set for March 30, 2021, at 9:30 a.m. via
videoconference on Microsoft Teams.
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 March 29, 2021, at 9:30 a.m.
Craig Peter Shepard and Andrew Knight of KordaMentha were appointed
as administrators of Grocon Group on Feb. 22, 2021.
GROCON PROPERTY: Second Creditors' Meeting Set for March 30
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Grocon Property
(Vic) Pty Ltd has been set for March 30, 2021, at 9:30 a.m. via
videoconference on Microsoft Teams.
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 March 29, 2021, at 9:30 a.m.
Craig Peter Shepard and Andrew Knight of KordaMentha were appointed
as administrators of Grocon Property on Feb. 26, 2021.
GROCON PTY: Second Creditors' Meeting Set for March 30
------------------------------------------------------
A second meeting of creditors in the proceedings of Grocon Pty Ltd
has been set for March 30, 2021, at 9:30 a.m. via videoconference
on Microsoft Teams.
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 March 29, 2021, at 9:30 a.m.
Craig Peter Shepard and Andrew Knight of KordaMentha were appointed
as administrators of Grocon Pty on Nov. 27, 2020.
MAYFAIR 101 GROUP: ASIC Succeeds in Court Action Against Firm
-------------------------------------------------------------
The Federal Court has found companies in the Mayfair 101 Group made
statements that were false, misleading or deceptive in
advertisements for its debenture products, following proceedings
brought by Australian Securities and Investments Commission (ASIC)
in April 2020.
The Court found Mayfair Wealth Partners Pty Ltd trading as Mayfair
Platinum, Online Investments Pty Ltd trading as Mayfair 101, M101
Nominees Pty Ltd and M101 Holdings Pty Ltd, engaged in misleading
or deceptive conduct, and made false or misleading representations,
by representing that:
* Mayfair's debenture products were comparable to, and of
similar risk profile to, bank term deposits, when Mayfair's
debenture products exposed investors to significantly higher risk
than bank term deposits (Bank Term Deposit Representation);
* the principal investment would be repaid in full on maturity,
when investors might not receive capital repayments on maturity, or
at all, as Mayfair could elect to extend the time for repayment for
an indefinite period of time; and
* Mayfair's debenture products were specifically designed for
investors seeking certainty and confidence in their investments and
therefore carried no risk of default, when there was a risk that
investors could lose some, or all, of their principal investment.
The Court also found Mayfair Platinum, Mayfair 101 and M101
Nominees engaged in misleading or deceptive conduct and made false
or misleading representations by representing that the M Core Fixed
Income Notes were fully secured financial products, when funds
invested were:
* lent to a related party and not secured by first-ranking,
unencumbered asset security or on a dollar-for-dollar basis or at
all;
* used to pay deposits on properties prior to any security
interest being registered; and
* used to purchase assets that were not secured by
first-ranking, unencumbered asset security.
In his judgment, Justice Anderson found that the Bank Term Deposit
Representation 'was misleading or deceptive and created a false and
misleading impression that the Mayfair Products were comparable to,
and of similar risk profile to, bank term deposits… In light of
the evidence relied on by ASIC, the Mayfair Products are not
comparable to, or a proper alternative to, bank term deposits.'
Justice Anderson noted, in relation to the use of sponsored link
internet advertising, that 'it is tolerably clear that the
Defendants' marketing strategy was addressed to persons searching
for a term deposit in order to divert them to the Defendants'
websites.'
Justice Anderson also stated 'I am satisfied that the Mayfair
Products have been, in fact, designed by the Defendants to produce
a result which is uncertain for investors and could not on any
reasonable view be described as an investment with no risk of
default.'
Justice Anderson found that 'Mr Mawhinney was the directing mind
and will, and the ultimate beneficiary, of each of the
Defendants'.
ASIC Deputy Chair Karen Chester said: 'ASIC's success in Court
today demonstrates firms need to do the right thing by their
investors, even when they are wholesale investors. They need to
make sure they accurately describe their products when advertising.
The Court has shown that Mayfair 101 engaged in misleading and
deceptive conduct by claiming its products were comparable to bank
term deposits, when they were not.
'Our 'True to Label' project that we commenced in late 2019
identified 30 funds with over AUD10 billion across these funds,
that are misleading investors through online advertising,
especially when investors are seeking yield in a low interest rate
economy. The online advertising is misleading by claiming to offer
products that involve less risk, when in reality, investors could
lose some or all of their investments. Advertisements also claimed
investors could get their invested money out when they wanted but
that was not the case. This case is a warning that ASIC will not
only take action where investments are marketed as safer, lower
risk, or more liquid when they are not, but when search engines are
used in a misleading or deceptive way to entice investors to
products they are not searching for.'
ASIC is seeking pecuniary penalties, injunctions and corrective
advertising. A penalty hearing is yet to be listed by the Court.
Mayfair 101 promoted two debenture products to wholesale
investors:
* M+ Fixed Income Notes, which are unsecured promissory notes
issued by M101 Holdings Pty Ltd; and
* M Core Fixed Income Notes, which are secured promissory notes
issued by M101 Nominees Pty Ltd (in liquidation).
Mayfair Platinum and Mayfair 101 used sponsored link internet
advertising through Google AdWords and Bing Ads, so that the
websites for Mayfair's debenture products appeared as sponsored
links when consumers searched for "bank term deposit" or "term
deposit" online.
Mayfair's promotional material also used words such as:
* "term deposit alternative";
* "term investment" and "fixed term";
* "certainty" and "confidence"; and
* "first-ranking", "unencumbered" and
"dollar-for-dollar" security in relation
to the secured promissory notes.
ASIC commenced proceedings on April 3, 2020 and obtained interim
injunctions restraining promotion of the Mayfair debenture products
on April 16, 2020.
In separate proceedings commenced by ASIC against the Mayfair 101
Group and its director James Mawhinney, on August 13, 2020, the
Federal Court appointed provisional liquidators to M101 Nominees
and made interim injunctions against Mr Mawhinney. On January 29,
2021, the Court ordered that M101 Nominees be wound up.
Judgment is reserved by the Court in ASIC's application for
permanent injunctions to restrain Mr. Mawhinney from advertising
and soliciting funds in connection with any financial product.
ASIC's Moneysmart website has information on investing, including
on debentures, secured notes and unsecured notes:
https://moneysmart.gov.au/investments-paying-interest/debentures-secured-and-unsecured-notes#_blank
ASIC has established a dedicated webpage for Mayfair 101/Mayfair
Platinum debenture product investors:
https://asic.gov.au/about-asic/news-centre/key-matters/asic-investigation-into-mayfair-101mayfair-platinum/
MEQUITY PTY: First Creditors' Meeting Set for March 30
------------------------------------------------------
A first meeting of the creditors in the proceedings of:
- Mequity Pty Ltd
- Mcity Pty Ltd
- Garden City Capital Pty Ltd
- Aust Global Investment Pty Ltd
will be held on March 30, 2021, at 11:00 a.m. The meeting will be
conducted by online video conference using Zoom Meetings.
Daniel Peter Juratowitch of Cor Cordis was appointed as
administrator of Mequity Pty on March 18, 2021.
TASS GOODWILL: First Creditors' Meeting Set for March 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Tass
Goodwill Pty Ltd will be held on March 31, 2021, at 10:30 a.m.
using virtual meeting technology.
Peter Goodin of Magnetic Insolvency was appointed as administrator
of Tass Goodwill on March 18, 2021.
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B A N G L A D E S H
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JANATA BANK: BB Governor Asks Bank to Improve its Financial Health
------------------------------------------------------------------
Dhaka Tribune reports that Bangladesh Bank Governor Fazle Kabir has
instructed the state-run Janata Bank to improve its financial
health as the lender's balance sheet is not satisfactory.
He gave the instruction at the inauguration ceremony of the
Bangabandhu Corner at the head office of Janata Bank in Motijheel
on March 21.
Dhaka Tribune says Finance Minister AHM Mustafa Kamal inaugurated
the Bangabandhu Corner and the mural virtually from his office as
chief guest.
Once, Janata was a people's bank, the minister said adding the
bank's balance sheet is "not very satisfactory".
According to Dhaka Tribune, the BB governor said Janata Bank should
focus on increasing its capital adequacy ratio (CAR) and reduce its
high amount of non-performing loans (NPLs).
The NPL ratio of Janata Bank is higher than the sector's total
NPLs, he added.
In the December quarter, Janata's capital shortfall stood at
BDT5,475.1 crore, rising by a staggering BDT5,217.5 crore in just
three months, Dhaka Tribune discloses citing central bank's latest
data.
At the end of last year, the state-run lender's defaulted loans
stood at BDT13,622.5 crore, which was 24.9 per cent of its total
outstanding loans.
The bank's deposit growth was satisfactory last year, but loans and
advances did not grow to expected levels, Kabir said.
Dhaka Tribune says the central bank governor instructed Janata to
focus on the implementation of the incentive packages, especially
the stimulus package for the small, micro and medium enterprises
announced by the government.
Financial Institutions Division Senior Secretary Ashadul Islam
addressed the inaugural function as one of the special guests.
According to Dhaka Tribune, Janata Bank Chairman SM Mahfuzur Rahman
acknowledged their weak financial health and said they are trying
to improve it.
The bank's Managing Director and CEO Abdus Salam Azad addressed the
welcome speech in the inauguration ceremony.
Dhaka Tribune notes that the financial health of the state-run bank
has deteriorated mainly to a number of businesses, including Anon
Tex and Crescent Group.
The bank lent upwards of BDT10,000 crore to AnonTex and Crescent
Group, going past its single-borrower exposure limit, according to
a BB probe.
Janata Bank Ltd. is a state-owned commercial bank in Bangladesh.
=========
C H I N A
=========
CAR INC: S&P Places 'CCC+' LongTerm ICR on CreditWatch Positive
---------------------------------------------------------------
S&P Global Ratings placed its 'CCC+' long-term issuer credit rating
on CAR Inc. and its 'CCC+' long-term issue rating on the company's
outstanding debt on CreditWatch with positive implications. S&P
also assigned its preliminary 'B-' long-term issue rating to CAR's
proposed U.S.-dollar denominated senior unsecured notes.
The CreditWatch placement indicates the potential for an upgrade by
one notch to 'B-' if the proposed issuance is successful and on
terms that are largely commensurate with S&P's base case.
CAR's proposed notes issuance could reopen its access to capital
markets after a year of disruption due to the Luckin Coffee probe
and the pandemic. The company intends to use most of the proceeds
to replenish and renew its car fleet to normalize its car rental
operations. S&P expects CAR to spend Chinese renminbi (RMB) 2
billion-RMB2.7 billion in net capital expenditure (capex) in 2021
to add between 5,000 and 10,000 vehicles. The company is also
looking to pivot its fleet away from Borgward cars to increase
customer appeal and reduce residual value risk. CAR's fleet shrank
by 38,378 units (or 26%) and its average age of cars lengthened to
3.7 years (compared with a targeted level of three years) as of
end-2020, due to vehicle sales to deal with the credit squeeze. S&P
estimates Borgward cars account for about 40% of the company's car
rental fleet.
CAR's near-term refinancing risk has largely subsided. The company
has repaid US$300 million (about RMB2 billion) of notes due Feb.
11, 2021, and prepared enough funds to repay RMB750 million in "dim
sum" bonds due April 4, 2021. CAR's next bullet maturity is its
US$372 million notes due May 2022.
CAR is working to regain its bank funding channels. The company is
making progress with offshore banks and obtained a US$50 million
committed credit facility in the week of March 15, 2021. However,
onshore banks may take a few more months to complete their internal
credit reviews and regrant credit lines to CAR. S&P believes the
finalization of CAR's shareholder structure following a general
offer by private equity firm MBK Partners has paved the way for the
company to repair its relationships with domestic banks. CAR will
be taken private in July this year as MBK has received acceptance
of 94% shareholders before the offer expired on March 4, 2021. CAR
used to have total credit lines of as much as RMB7 billion-RMB8
billion from onshore banks, which diminished or were suspended post
a fabricated-sales probe at Luckin Coffee. Although the companies
are not directly connected, Luckin and CAR share the same chairman
and senior management prior to the stake sale to MBK.
S&P expects CAR to improve its operating performance this year.
S&P said, "MBK has not taken control of CAR officially but we
understand it is working with company management to stabilize and
improve operations. This includes more sophisticated demand
forecasting and supply planning to anchor its utilization rate at
60%-65%. We therefore expect CAR to have more focused operations
and a prudent fleet strategy in the next two to three years, with
fleet growth taking cues from actual demand dynamics."
CAR's access to funding remains crucial to meet upcoming
expenditure. The company would need to finance its substantial net
capex over the next two years to have a younger and more
brand-diversified fleet. Its depreciation expense will also take
time to improve. Therefore, S&P expects CAR's EBIT interest
coverage to remain below 1x in the coming 12 months.
S&P said, "We aim to resolve the CreditWatch when the proposed
issuance is complete and we have reviewed the final terms of the
transaction and the final debt documentation.
"We will likely raise our long-term issuer credit rating on CAR to
'B-' with a stable outlook if the company completes the issuance in
a timely manner on terms that are generally in line with our base
case."
Failure to complete the proposed issuance, or to do so on terms
that materially deviate from, or are much weaker than S&P's base
case, would likely lead us to affirm the rating at the current
level or lower the rating.
=========
I N D I A
=========
ARYALAKSHMI STEEL: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree
Aryalakshmi Steel Private Limited (SALSPL) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term
Bank Loan Facility 40 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SALSPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 SALSPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SALSPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SALSPL continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Incorporated in 2007 and based in Hyderabad (Telangana), SALSPL) is
engaged in granite and iron ore mining. The company is promoted and
managed by Mr. U Kondal Rao.
BANKE BIHARI: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri Banke
Bihari Cotfab Private Limited (SBBCPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.25 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 3.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.06 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 6.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SBBCPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 SBBCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SBBCPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SBBCPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.
Incorporated in 2013, SBBCPL manufactures hawai chappals, shoes,
and footwear at its unit in Bahadurgarh, Haryana. Products are sold
under the Mien and Hot Red brands. Operations are managed by Mr.
Shailesh Poddar, Mr. Amar Poddar, and Mr. Kailash Poddar.
CHANDRA MOTORS: CRISIL Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Chandra Motors
(CM) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with CM for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 CM, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CM is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of CM
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
CM is an authorized dealer and service center for HMCL in Adilabad,
Telangana and has been established in 1999.
FUTURE GROUP: Court Drops Restraint on Chief's Personal Asset Sale
------------------------------------------------------------------
Reuters reports that an Indian court put on hold on March 22 an
order restraining Future Group chief Kishore Biyani from selling
personal assets, amid legal challenges to the group's $3.4-billion
retail deal.
Reuters relates that the legal fight over Future's assets has
embroiled two of the world's richest men, Jeff Bezos of U.S.
e-commerce giant Amazon.com Inc and Mukesh Ambani of Indian
conglomerate Reliance Industries.
In various Indian courts, including the Supreme Court, Amazon has
accused Future of violating certain contracts by agreeing to sell
its retail assets to Reliance. Future has denied any wrongdoing,
Reuters says.
Last week, a Delhi High Court judge ordered Biyani and others not
to dispose of their assets and asked why they did not obey an
arbitrator's directive last year that blocked the transaction,
recalls Reuters.
But on March 22, the court's Chief Justice D. N. Patel, heading a
two-judge panel, put the order on hold after hearing Future's
appeal against it, saying the dispute was already being argued
before the Supreme Court.
"We hereby stay" the order, Patel, as cited by Reuters, added.
In February, in a hearing on Amazon's challenge to the deal, the
Supreme Court said final approval should be withheld until it heard
objections from the U.S. e-commerce giant.
Reuters says the final outcome of the tussle over Future's assets
is seen shaping India's shopping sector, now reeling from the
coronavirus pandemic, and will decide if Amazon is able to dent the
dominance of Reliance.
Future Group operates multi-branded retail outlets. The company's
retail chains include department stores, outlet stores, sportswear,
home improvement and consumer durables, supermarket, and
convenience stores as well as food parks.
GUJARAT EXPORT: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Gujarat
Export Company (GEC) continue to be 'CRISIL D/CRISIL D Issuer not
cooperating.'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Packing Credit 15 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 10 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with GEC for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 GEC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GEC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
GEC continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in 1998, as a proprietorship firm by Kansagra family
of Rajkot, GEC trades in soybean meal, rapeseed, groundnut
extraction meal, oil seeds, wheat, and other agricultural products.
JAYAJOTHI TEXTILE: CRISIL Revises Rating on INR7.8cr Loan to B-
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Sri Jayajothi Textile Mills
Private Limited (SJT) to 'CRISIL D/CRISIL D Issuer Not
Cooperating'. However, the management has subsequently started
sharing requisite information, necessary for carrying out
comprehensive review of the rating. Consequently, CRISIL Ratings is
migrating the ratings on the bank facilities of SJT to 'CRISIL
B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Cash Credit 7.8 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Letter of Credit 50 CRISIL A4 (Migrated from
'CRISIL D ISSUER NOT
COOPERATING')
Proposed Long Term 15.8 CRISIL B-/Stable (Migrated
Bank Loan Facility from 'CRISIL D ISSUER NOT
COOPERATING')
Term Loan 11.2 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
Working Capital
Demand Loan 13.2 CRISIL B-/Stable (Migrated
from 'CRISIL D ISSUER NOT
COOPERATING')
The ratings reflect susceptibility to volatility in raw material
(Cotton) prices and intensely competitive and highly fragmented
textile industry. These weaknesses are partially offset by
extensive industry experience of the promoters and moderate scale
of operations.
Key Rating Drivers & Detailed Description
Weaknesses:
* Susceptibility to volatility in raw material (Cotton) prices: The
textile spinning industry has several unorganized players with
small capacities. The entry barriers to the industry are low due to
limited capital and technology requirements and little
differentiation in end products. These factors will continue to
exert pricing pressure over the medium term. Moreover, revenue and
profitability will remain susceptible to volatility in the price of
raw material, cotton.
* Intensely competitive and highly fragmented textile industry: The
textile industry in the region is highly fragmented with
established as well as small players, which has increased
competition affecting margins.
Strengths:
* Extensive industry experience of the promoters: The promoters
have an experience of over 2 decades in textile - cotton industry.
This has given them an understanding of the dynamics of the market,
and enabled them to establish relationships with suppliers and
customers.
* Moderate scale of operations: SJT moderate scale provides it an
operating flexibility in an intensely competitive industry.
Further, it also benefits from the promoters' experience of over
the decades, their strong understanding of market dynamics, and
healthy relations with customers and suppliers and will continue to
support the business.
Liquidity- Poor
Bank limit of INR18.5 crore were fully utilized for the past twelve
months ended November 2020. Cash accrual are expected to be over
INR10 crore which are sufficient against term debt obligation of
INR8 crore in fiscal 2022. The promoters are likely to extend
support in the form of equity and unsecured loans to meet its
working capital requirements and repayment obligations.
Outlook Stable
CRISIL Ratings believes SJT will continue to benefit from
promoters' extensive industry experience.
Rating Sensitivity factors
Upward factor
* Sustained improvement in scale of operation and sustenance of
operating margin, leading to cash accruals of more than INR10
crore.
* Improvement in working capital cycle
Downward factor
* Delay in debt servicing
* Witnesses a substantial increase in its working capital
requirements, resulting in gross current asset days of over 300
days
Set up in 1989 by Mr. T Jayaraman and family members, SJT
manufactures cotton yarn of 30-120 counts at its unit near
Rajapalayam, Tamil Nadu.
JOHAR AUTOMOBILES: CRISIL Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Johar
Automobiles (JA) continues to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 6 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with JA for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 JA, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JA is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of JA
continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
JA, based in Noida (Uttar Pradesh), deals in commercial vehicles of
TML. The firm is promoted by Mr. Charanpreet Singh Johar and Mr.
Jaspreet Singh Johar.
KD INFRAENGICON: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of KD
Infraengicon Private Limited (QKEPL) continue to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.53 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 4.00 CRISIL D (Issuer Not
Cooperating)
Cash Credit 8.40 CRISIL D (Issuer Not
Cooperating)
Proposed Fund- 1.57 CRISIL D (Issuer Not
Based Bank Limits Cooperating)
CRISIL Ratings has been consistently following up with QKEPL for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 QKEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on QKEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
QKEPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
QKEPL, promoted in August 2010 by Ranchi-based Mr. Manzar Imam Khan
and his family members, undertakes civil construction, primarily
construction of roads, in Jharkhand and Bihar.
KISHORI INDUSTRIES: CRISIL Keeps B+ Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kishori
Industries (KI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KI for
obtaining information through letters and emails dated January 30,
2021 and February 16, 2021 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 KI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of KI
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established in 2003 as a partnership firm by Mr. Sharad Sarda and
Mr. Rameshlal Sarda, KI gins and presses cotton and extracts cotton
seed oil at its unit in Beed.
KONNECTING INDIA: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Konnecting
India (KI) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KI for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 KI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of KI
continues to be 'CRISIL D Issuer Not Cooperating'.
KI, based in Mumbai and established in 2008 by Mr. Anmol Samat and
his mother Ms. Sapna Samat, trades in technical textile fabrics.
KURUVITHADAM AGENCIES: CRISIL Keeps B+ Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kuruvithadam
Agencies Private Limited (KAPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.75 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 1.75 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 2.50 CRISIL B+/Stable (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with KAPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 KAPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KAPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
KAPL, established at Ernakulam, operates a chain of eight retail
showrooms across Kerala that sells home appliances. It also
operates 12 franchise stores of Linen Club. Mr. Mathew George, Ms
Mariamma Mathew, Mr. John Mathew, Mr. George Mathew, Mr. Charles
Mathew, and Mr. Thomas Kuruvilla are the promoters.
LAKSHMI NARAYANA: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Lakshmi
Narayana Enterprises (LNE) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.1 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 3.9 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with LNE for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 LNE, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LNE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LNE continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 1987 in Guntur, Andhra Pradesh, as a proprietorship firm
by Mr. Sambi Reddy, LNE has a raw cotton ginning and pressing
capacity of 1000 quintals per day. LNE processes raw cotton
(kappas) into cotton bales and cotton seeds for sale in Andhra
Pradesh and North India.
LEOFORTUNE INFRA: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Leofortune
Infrabuildcon Private Limited (LIPL) continues to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LIPL for
obtaining information through letters and emails dated August 31,
2020 and February 27, 2021 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 LIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LIPL continues to be 'CRISIL D Issuer Not Cooperating'.
LIPL was incorporated in 2009 by Mr. Pradeep K Swami, Mr. Sitapathy
Chavali, Mr. Dhiren Savla, Mr. Prasad K Swami and Mr. Vasant D
Bhambhaniya. The company is engaged in real estate development in
Navi Mumbai. The company currently has three ongoing projects -
Fortune Symphony, Fortune Calypso and Fortune Oriana.
OZONE GRANITES: CRISIL Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ozone
Granites Private Limited (OGPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 2.0 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Working 0.5 CRISIL B+/Stable (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with OGPL for
obtaining information through letters and emails dated August 31,
2020 and February 27, 2021 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 OGPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OGPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
OGPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2012, Ernakulam (Kerala)-based OGPL manufactures blue
metals and M-Sand. The company is promoted by Mr. PM Ashraf, Mr. PM
Basheer, and Mr. PM Nazar.
PELICAN INTERNATIONAL: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pelican
International Private Limited (PIPL) continue to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.25 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 18.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PIPL for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 PIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PIPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
PIPL was incorporated in 2005 by Mr. Girish Aggarwal. The company
trades in tyres and mild steel products. The company is based in
Hyderabad, Andhra Pradesh.
RAMGARH SPONGE: CRISIL Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ramgarh
Sponge Iron Private Limited (RSIPL) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit- 1 CRISIL B/Stable (Issuer Not
Book Debt Cooperating)
Proposed Long Term 0.1 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Cash Credit-Stock 4 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RSIPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 RSIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RSIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RSIPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
RSIPL, incorporated in 2004 and promoted by Mr. Mahabir Prasad
Rungta, manufactures sponge iron. Its plant is at Ramgarh,
Hazaribagh (Jharkhand). Mr. Rungta has almost two decades of
experience in the steel industry.
RC AUTOMOTIVE: CRISIL Keeps B- Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of RC Automotive
Private Limited (RCAPL) continue to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 2 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RCAPL for
obtaining information through letters and emails dated August 22,
2020 and February 27, 2021 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 RCAPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RCAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RCAPL continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Incorporated in 2011, RCAPL is an authorized dealer of Nissan India
in north-west Delhi. RCAPL commenced operations in November 2011.
It has one showroom operating on the sales, service, and spares
(3S) format at Shalimar Bagh in Delhi. The company is promoted by
Mr. Himanshu Chawla and Mr. Parth Chawla.
RUTUJA INDUSTRIES: CRISIL Keeps B+ Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Rutuja
Industries (RI) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RI for
obtaining information through letters and emails dated January 30,
2021 and February 16, 2021 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 RI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information,
Set up as a partnership firm in 2003 by Ms Sangita Sharad Sarda,
Mr. Narsing Somani, and Mr. Sachin Musale, SI gins cotton and
extracts and refines cotton seed oil at its unit in Beed,
Maharashtra.
SAGAR PULSES: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sagar Pulses
Private Limited (SPPL) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 2 CRISIL B+/Stable (Issuer Not
Cooperating)
Warehouse Receipts 9.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SPPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 B+/Stable Issuer Not Cooperating'.
SPPL, set up in December 2013 in Sagar (Madhya Pradesh), primarily
processes chana to chana dal. The manufacturing unit has a capacity
of 1000 quintals per day. Mr. Krishna Kumar Malpani, Mr. Dinesh
Kumar Malpani, Mr. Saket Garg and Mr. Rahul Garg are the promoters.
SAI CARTON: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sai Carton
Manufacturing Company Private Limited (SCMPL) continue to be
'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Term Loan 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
Rupee Term Loan 1.0 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SCMPL for
obtaining information through letters and emails dated January 30,
2021 and February 16, 2021 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 SCMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCMPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Established as proprietorship firm in 1996 and reconstituted as a
private limited company in 2002, SCMPL is promoted by Mr. H T
Krishna and Ms. B S Ramapriya and manufactures corrugated boxes and
wooden pallets that are used as packaging material.
SAICON TILES: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Saicon Tiles
Private Limited (STPL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 4.25 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 5.25 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with STPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 STPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on STPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
STPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
STPL, incorporated in 2013, is promoted by the Morbi
(Gujarat)-based Mr. Kamlesh Patel, Mr. Prakashkumar Dalsaniya, Mr.
Jagdish Dadhaniya, Mr. Pravinbhai Dalsaniya, and Mr. Hareshbhai
Sershiya. The company manufactures wall tiles at its facilities in
Morbi. It commenced commercial operations in July 2014.
SARDAR COTTON: CRISIL Lowers Rating on INR6cr Cash Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Sardar
Cotton Private Limited (SCPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable' Issuer
Not Cooperating)
Long Term Loan 1.62 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable' Issuer
Not Cooperating)
Proposed Long Term 7.38 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable' Issuer
Not Cooperating)
CRISIL Ratings has been consistently following up with SCPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 SCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
SCPL, incorporated in 2014 at Morbi, manufactures cotton seeds and
cotton bales; it commenced operations in December 2016. Mr. Hiren
Gunedrabhai Prasadiya, Mr. Kantilal B Bhagiya, Mr. Hasmukh, Mr.
Tapubhai Gosara and Mr. Bipinkumar A Boda are the promoters.
SARVODAY ASHRAM: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sarvoday
Ashram (SA) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 7 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with SA for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 SA, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SA is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of SA
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
SA, established in 1952 at Etah (Uttar Pradesh) by the late Mr.
Rohan Lal Chaturvedi, is affiliated to KVIC. It spins, weaves, and
markets khadi clothes under its brand, Ekmatra. The founder's son,
Mr. Manoj Chaturvedi, is the current elected chairman.
SWADISHT OILS: CRISIL Keeps C Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Swadisht Oils
Private Limited (SOPL) continues to be 'CRISIL C Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 20 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SOPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 SOPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SOPLis consistent with 'Assessing Information Adequacy Risk'. Based
on the last available information, the ratings on bank facilities
of SOPL continues to be 'CRISIL C Issuer Not Cooperating'.
On Feb. 22, 2016, Mr. Tilak Raj Sharma (and family; referred to as
the TRS group) bought out the stake of Mr. Dinesh Arora (and his
family; referred to as the DA group) and took full control from
them. Commercial operations were restarted from December 2016.
Swadisht undertakes solvent extraction of varieties of edible and
nonedible oil seeds such as soy and mustard with the capacity of
300 tonne per day (tpd) at Rania, Kanpur. Beside this, the company
has an oil refining unit with refining capacity of 100 tpd.
T R SAWHNEY: CRISIL Withdraws B+ Rating on INR20cr Loan
-------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of T R Sawhney Automobiles
Private Limited (TRSAPL) to 'CRISIL B+/Stable Issuer not
cooperating'. CRISIL Ratings has withdrawn its rating on bank
facility of TRSAPL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL Ratings is migrating the ratings on bank facilities of
TRSAPL from 'CRISIL B+/Stable Issuer Not Cooperating' to 'CRISIL
B+/Stable'. The rating action is due to limited client cooperation
and in line with CRISIL Rating's policy on withdrawal of bank loan
ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Inventory 20 CRISIL B+/Stable (Migrated from
Funding 'CRISIL B+/Stable ISSUER NOT
Facility COOPERATING'; Rating Withdrawn)
The TR group, established in 1993, is based in Delhi and managed by
Mr. Rajeev Sawhney, Mr. Sanjeev Sawhney, and their sons. TRSMPL and
TRSAPL are authorised dealers of MSIL for NCR. The group commenced
operations from a single workshop in Delhi in 1993. Over the years,
it has expanded operations to 12 showrooms and 8 workshops.
TARGET EQUIPMENTS: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Target
Equipments and Machines Private Limited (TEMPL) continue to be
'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B/Stable (Issuer Not
Cooperating)
Long Term Loan 9.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TEMPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 TEMPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TEMPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TEMPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 1985 and commenced operation in 2016,
Telangana-based TEMPL is involved in fabrication and machining of
iron and steel products. The operations of the company is managed
by the promoter, Mr. C Vishnu Vardhan and his family.
TECHOPS INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Techops
Infrastructure Private Limited (TIPL) continues to be 'CRISIL
B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TIPL for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 TIPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TIPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TIPL, incorporated in 2007, develops real estate in Nagpur. The
company is currently working on a residential project, Techops
Gardens Phase 2, which comprises of 650 flats across 13 towers.
Phase 1 of the project has already been completed.
TRIDENT AUTO: CRISIL Lowers Rating on INR15cr Cash Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Trident Auto Components Private Limited (TAC) 'CRISIL B/Stable
Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable' Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with TAC for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 TAC, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TAC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TAC Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB/Stable Issuer Not Cooperating'.
Incorporated in 2000 and promoted by Mr. Indra Kumar Poddar and Mr.
Shishir Poddar, TAC undertakes steel fabrication; assembly of steel
structures, material handling equipment, industrial process
equipment, and heavy and precise machine components; and assemblies
for the railway industry. The facility is in Kanpur, Uttar Pradesh.
VIDEO PLAZA: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Video Plaza
(VP) continue to be 'CRISIL B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.05 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 2.95 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.00 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VP for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 VP, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VP is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of VP
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Set up in 1989 as a partnership between Mr. Kabi Dutta and Ms.
Rikta Dutta, VP trades in electronic goods, runs a hotel (Citi
Residenci), operates a foreign liquor 'Off' shop and rents out
properties in Durgapur, West Bengal.
VISHAL CHAIN: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vishal Chain
and Jewellery Private Limited (VCJ) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 15 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with VCJ for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 VCJ, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VCJ
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VCJ continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
Incorporated in 2000, VCJ is engaged in manufacturing of, and
wholesale trading in, gold ornaments, particularly gold chains. The
company operates from Karol Bag (Delhi). The promoter's family has
over 15 years of experience in the jewelry business and a customer
base across northern India.
VIVANTA REALTY: CRISIL Keeps B+ Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Vivanta Realty
(VR) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Project Loan 9.9 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VR for
obtaining information through letters and emails dated August 22,
2020 and February 16, 2021 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 VR, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VR is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of VR
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2012, VR is a partnership firm promoted by Mr. Vasant
Kate, Mr. Vivek Joshi, and Mr. Suryakant Jadhav for developing a
residential real estate project, Vivanta Life Vishakha, in Pune. It
is currently implementing the project's first phase, which has 150
units.
=================
I N D O N E S I A
=================
TUNAS BARU: Fitch Assigns B+ Rating on Proposed USD Bonds
---------------------------------------------------------
Fitch Ratings has assigned the proposed US dollar bonds to be
issued by Indonesia-based palm oil and sugar producer PT Tunas Baru
Lampung Tbk (TBLA, B+/Negative) a rating of 'B+' with a Recovery
Rating of 'RR4'. The proposed bonds will be guaranteed by all of
TBLA's majority-owned operating subsidiaries and proceeds will be
used mainly to refinance existing debt.
TBLA's net debt/EBITDA leverage ratio stood at 3.7x in 2020,
slightly above Fitch's sensitivity for negative rating action, as a
higher EBITDA due to better prices was largely negated by a large
jump in net debt. Fitch expects leverage will decline to around
3.5x in 2021, supported by gains from higher yields and sales
volume, and stay steady thereafter. However, working-capital
outflow and capex that were above Fitch's expectations, leading to
high negative free cash flow in 2020, remain key risks to TBLA's
financial profile. This is reflected in the Negative Outlook on
TBLA's rating.
TBLA's rating also incorporates benefits from its diversification
into the sugar business as well as vertical integration from its
substantial downstream refining and processing capacity for palm
oil and presence across the sugar value chain, from plantations to
refining.
KEY RATING DRIVERS
Recovery from Low Yields: Fitch expects TBLA's yield to rebound in
2021-2022 on higher rainfall since late 2019, following signs of a
recovery, with a 4Q20 yield of around 5 tonnes, against a 9M20
yield of 8 tonnes. The EBITDA margin fell by 80bp in 2020, despite
higher product prices, following a 25% fall in the yield of fresh
fruit bunches. This hit crude palm oil (CPO) output, forcing TBLA
to make higher external purchases for refining. The lower yield in
2020 followed an almost 20% drop in 2019 due to dry weather
conditions, according to TBLA.
Lower Sugar Prices Likely: Indonesia relies on raw sugar imports,
as domestic output is significantly lower than demand. However, the
government's limited import quotas allotted to refiners, such as
TBLA, often result in high domestic prices. Fitch expects the
government to take steps to lower prices in 2021 and increase sugar
import quotas. The price impact is likely to more than offset the
benefit to TBLA's 2021 sugar revenue from higher sales volume.
TBLA's realised sugar price jumped by 14% in 2020, after an 11%
increase in 2019, due to quota constraints and higher international
sugar prices. TBLA imported 180 kilotonnes of raw sugar in 2020 and
can import an additional 98 kilotonnes until May 2021.
Higher Output, Lower CPO Prices: Palm oil prices in 1H21 should be
supported by a foreign-labour shortage in Malaysia and high prices
for substitute soybean oil. However, Fitch expects industry output
to increase over the year, with the impact on prices to be more
pronounced in 2022, affecting TBLA's EBITDA. Fitch has raised
Fitch's assumption for the average 2021 Malaysian benchmark CPO
price to USD700/tonne (t), from USD560/t earlier, while cutting
Fitch's assumption for 2022 to USD550/t, from USD600/t. Fitch's
long-term assumption is unchanged at USD600/t.
Lower Dividends, Buybacks: TBLA has halved its dividend payout
since 2019 to support its financial profile. Fitch forecasts the
reduced payout will continue in 2021-2022. TBLA's outflow for share
buybacks in 2020, at IDR36 billion, was also significantly lower
than its initial plan of IDR300 billion.
ESG - Management Strategy: TBLA has an ESG Relevance Score of '4'
for Management Strategy. The company's working-capital flows have
been volatile while capex has often been higher than Fitch's
expectations. The large working-capital outflow in 2020 was due to
a jump in revenue and cost of goods sold as net working-capital
days were flat, but individual components remained volatile. The
benefit of lower inventory days was offset by higher receivable
days and lower payable days. TBLA's inventory is partly affected by
raw sugar imports, which depend on quota timings and international
prices.
TBLA's 2020 capex was also higher than Fitch's expectations due to
sustained spending for new planting and processing capacity
addition. Fitch has assumed its working-capital days will remain
largely stable. Fitch also assumed capex will be sustained at
around the 2020 level over the next three years. TBLA intends to
spend on the expansion of its biodiesel and downstream palm-oil
product capacity in 2021, apart from basic infrastructure, oil palm
and sugarcane planting. Fitch expects TBLA to undertake more
projects in 2022 and thereafter, based on the company's record.
DERIVATION SUMMARY
TBLA is rated significantly lower than Sime Darby Plantation Berhad
(SDP, BBB/Negative), whose credit profile is underpinned by its
position as the world's largest palm-oil producer by planted area,
and largest sustainable-oil producer. SDP's planted acreage is more
than 10x that of TBLA's and spread across Malaysia, Indonesia and
Papua New Guinea. This lowers risks related to weather and
regulatory changes. SDP's rating also benefits from a sizeable land
bank located near Malaysian urban areas, which the company can
monetise at high valuations to support liquidity.
TBLA's 'A(idn)'/Negative national rating is higher than that of the
subsidiaries of Golden Agri-Resources (GAR) - PT Ivo Mas Tunggal
(IMT) and PT Sawit Mas Sejahtera (SMS) - which are rated
'A-(idn)'/Stable based on GAR's consolidated profile. TBLA's
leverage is around 2x lower, which drives its higher rating despite
a smaller scale; GAR's planted acreage is more than 8x and its 2020
EBITDA more than 3x that of TBLA. The rating differential also
incorporates TBLA's diversification into sugar and a better
upstream cost position.
Fitch can also compare TBLA with PT Japfa Comfeed Indonesia Tbk
(BB-/A+(idn)/Stable), a key competitor in Indonesia's poultry feed
and poultry breeding industry. Japfa's rating is supported by the
earning stability provided by its animal-feed segment, which
contributes around 30%-40% of total revenue. This is comparable
with TBLA's sugar segment, which contributed 32% to 2020 revenue
and significantly offsets the volatile palm-oil segment. However,
TBLA's 2020 leverage was more than 1x higher, resulting in a lower
rating for TBLA.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- CPO output CAGR of 15% over 2021-2023;
-- Sugar sales volume CAGR of 3% over 2021-2023;
-- Average sugar price realisation of around IDR10,600/kg over
2021-2023;
-- Average annual capex of around IDR1.4 trillion over 2021-2023;
-- Total dividend outflow of around IDR560 billion over 2021-
2023;
-- The recovery analysis for the US dollar notes assumes that
TBLA would be considered a going-concern in a bankruptcy and
that the company would be reorganised rather than liquidated.
Fitch assumes a 10% administrative claim.
Going-Concern Approach
-- Going-concern EBITDA is assumed to be IDR2.0 trillion, at
around a 20% discount to TBLA's 2020 EBITDA. This assumption
factors in weak CPO and sugar prices and is slightly higher
from Fitch's previous analysis of IDR1.9 trillion to account
for subsequent capacity enhancement.
-- A multiple of 5.0x is applied to the going-concern EBITDA to
calculate a post-reorganisation enterprise value. This
multiple is unchanged from Fitch's previous analysis.
-- Fitch has assigned priority to IDR4.3 trillion of secured debt
and the long-term portion of customer advances as of end-2020
over IDR5.6 trillion of unsecured debt, which includes the
existing US dollar and Indonesian rupiah bonds. These bonds
are likely to be repaid with the proceeds of the proposed US
dollar notes, with limited increase in outstanding debt.
-- The Recovery Rating of the proposed senior unsecured US dollar
bonds is capped at 'RR4', even though Fitch's analysis
suggests a better rating. This is because, under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria,
Indonesia is classified under the Group D of countries in
terms of creditor friendliness, and the instrument ratings of
issuers with assets located in this group of countries are
subject to a cap of 'RR4', or effectively, the issuer's Issuer
Default Rating.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Net debt/EBITDA leverage not on track to reach around 3.5x or
lower by 2022;
-- Coverage, measured by EBITDA/interest paid, below 3.0x for a
prolonged period (2020: 3.1x);
-- A weakening of its liquidity position;
-- A material worsening in Indonesia's regulatory regime for the
sugar industry that results in weaker volume or EBITDA margin
for TBLA.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch may revise the Outlook to Stable if performance is
better than the sensitivities for negative rating action.
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
Manageable Liquidity: TBLA had total debt of IDR9.7 trillion as of
end-2020, excluding the long-term portion of customer advances, of
which IDR1.9 trillion was in the form of short-term loans and
IDR0.8 trillion the current portion of long-term debt. TBLA also
had cash, including an interest reserve account for the US dollar
bonds, of IDR0.6 trillion and undrawn short-term credit facilities
of IDR2.0 trillion.
Fitch thinks TBLA will rely on refinancing to meet its long-term
debt maturities, based on Fitch's estimate of negative free cash
flow, while its short-term loans, which are mainly for working
capital, are likely to be rolled over, similar to 2020 and earlier.
Fitch believes liquidity risk is mitigated by TBLA's flexibility in
reducing growth capex, which would improve the availability of cash
for debt repayment, and its extensive banking relationships. The
proposed notes should also help TBLA address its large bond
maturities in 2023.
SUMMARY OF FINANCIAL ADJUSTMENTS
Material financial adjustments include:
-- Non-current portion of advances from customers (2020: IDR277
billion) has been treated as debt, as Fitch believes there is
an implicit interest cost in the form of discounts that makes
it similar to debt and a substitute for bank funding.
Unamortised transaction and issuance costs (2020: IDR65
billion) have also been added back to debt.
-- Cash amounts reported as restricted cash, mainly related to
the interest reserve account for the US dollar bond, have been
treated as readily available (2020: IDR123 billion).
-- Prepaid expenses, advances for purchases, biological assets
(plant produce not yet harvested), accrued expenses and
advances received from customers (including non-current
portion) have been included in working capital.
-- Net profit attributable to minority interests (2020: IDR2.7
billion) has been deducted from EBITDA.
ESG CONSIDERATIONS
TBLA has an ESG Relevance Score of '4' for Management Strategy. The
company's working-capital flows have been volatile, while capex has
often been higher than Fitch's expectations. This indicates some
weakness in management control over operations and remains a risk
to TBLA's financial and overall credit profile, in conjunction with
other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
=================
S I N G A P O R E
=================
ARTERIAL CAPITAL: Creditors' Meetings Set for March 30
------------------------------------------------------
Arterial Capital Management Pte Ltd, which is in provisional
liquidation, will hold a meeting for its creditors on March 30,
2021, at 3:00 p.m. The meeting will be held by electronic means by
way of video conference via Zoom.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to nominate Liquidator(s) or confirm members' nomination of
Liquidator; and
c. to consider and if thought fit, appoint a Committee of
Inspection ("COI") of not more than 5 members.
NAGASAKI SHIPHOLDING: Commences Wind-Up Proceedings
---------------------------------------------------
Members of Nagasaki Shipholding Pte Ltd and Oita Shipholding Pte
Ltd, on March 15, 2021, passed a resolution to voluntarily wind up
the company's operations.
The company's liquidator is:
Lau Chin Huat
6 Shenton Way
OUE Downtown 2
#33-00
Singapore 068809
XIN BO: Grant Thornton Appointed as Judicial Managers
-----------------------------------------------------
Seshadri Rajagopalan and Paresh Tribhovan Jotangia of Grant
Thornton Singapore on March 19, 2021, were appointed as judicial
managers of Xin Bo Shipping (Pte) Ltd.
The liquidators may be reached at:
Grant Thornton Singapore
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
===============
T H A I L A N D
===============
THAILAND: Unveils Financial Support for Pandemic-Hit Businesses
---------------------------------------------------------------
Suttinee Yuvejwattana and Anuchit Nguyen at Bloomberg News report
that Thailand unveiled a raft of measures to help small and medium
businesses and the tourism industry, as a delay in full reopening
to foreign visitors dims the prospects for recovery.
Bloomberg relates that the cabinet approved changes to a soft loan
program that will allow small and medium enterprises to access
credit from its THB250 billion corpus, while also clearing a plan
that allows cash-starved companies to park their assets with
lenders in exchange for credit, officials said March 23 at a
briefing in Bangkok.
According to Bloomberg, the government will extend THB100 billion
for the asset warehousing program which will allow businesses such
as hotel operators from having to liquidate distressed assets at
firesale prices or go out of business because of their debts.
The steps to channel more credit to business come a day ahead of a
central bank rate decision, with the Bank of Thailand expected to
hold its benchmark rate at a record low of 0.5% for a seventh
straight meeting, Bloomberg says. The central bank sees tourism,
which accounted for about one-fifth of gross domestic product
pre-pandemic, as key to returning Southeast Asia's second-largest
economy to growth after it shrank by 6.1% last year, Bloomberg
adds.
[*] Thai Billionaire's Property Unit Eyes Troubled Hotels
---------------------------------------------------------
Randy Thanthong-Knight at Bloomberg News reports that Asset World
Corp., the property unit of Thailand's richest man, plans to
acquire distressed hotels, betting on a quick revival in tourism
once the Southeast Asian nation reopens to foreign visitors.
More than 100 hotels are available for sale in Thailand currently
and "the number is increasing by the day," according to Stephan
Vanden Auweele, chief hospitality group officer of the company,
majority-owned by billionaire Charoen Sirivadhanabhakdi's TCC
Group, Bloomberg relays. It bought a hotel in tourist hotspot
Pattaya this month and is on the lookout for more acquisitions, he
said.
According to Bloomberg, tourism-reliant Thailand has gone without
its millions of foreign visitors for a year, leaving its hotels and
tourism businesses struggling to stay afloat. Some properties have
closed down and may not reopen when international travels resume
later this year, according to the Thai Hotels Association.
"The gap between buyers and sellers for projects, which are
available for sale now, is closing. That means there's more
alignment on pricing today," Bloomberg quotes Vanden Auweele as
saying in an interview on March 23. "If the right products, right
hotels come at the right price, we will definitely look at every
opportunity."
Asset World plans to convert the property it acquired in Pattaya
into a branded hotel, Vanden Auweele said. The company can also
acquire plots of land and properties from the private portfolio of
Charoen's TCC Group, he said.
Bloomberg relates that the Thai tourism industry "will come back
very quickly" once the country is fully reopened in October,
according to Vanden Auweele. But some of the businesses that were
facing problems before the pandemic won't survive, he said.
"This situation is about cleaning up and maybe eliminating whoever
was already not doing well before the crisis," Vanden Auweele said.
"If people weren't making money then, should they still exist?"
Asset World has more than THB50 billion worth of projects in its
pipeline, and most of its previously announced projects are on
track with three hotels scheduled to open this year, Vanden Auweele
said. A project to build Thailand's tallest tower is expected to
break ground by the first quarter of 2023.
*********
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 ***