/raid1/www/Hosts/bankrupt/TCRAP_Public/210707.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, July 7, 2021, Vol. 24, No. 129
Headlines
A U S T R A L I A
CUMMINS BUILDING: Second Creditors' Meeting Set for July 13
HIGHGATE HILL: Second Creditors' Meeting Set for July 14
I50FOUR TECHNOLOGY: Second Creditors' Meeting Set for July 13
LANDSCAPE TANKS: First Creditors' Meeting Set for July 16
QUEENSLAND NICKEL: CA Orders Mineralogy to pay AUD102MM
SMART METERING: First Creditors' Meeting Set for July 16
STOCKLEY EXCAVATIONS: Second Creditors' Meeting Set for July 13
C H I N A
PEKING UNIVERSITY FOUNDER: China Court Approves Restructuring Plan
SUNING.COM: Gets $1.36 Billion State-Backed Bailout
XINYUAN REAL: Fitch Puts 'B-' Foreign-Currency IDR on Watch Neg.
I N D I A
AARKAY PACKAGING: CARE Keeps B Debt Rating in Not Cooperating
ABSOLUTE PROJECTS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
ALPINE DISTILLERIES: CARE Lowers Rating on INR64cr Loan to D
APEX SURATGARH: CARE Keeps B Debt Rating in Not Cooperating
ARUN POLYMERS: CARE Keeps D Debt Rating in Not Cooperating
BAIT LOGITECH: CARE Lowers Rating on INR5.50cr LT Loan to D
GANESH COLD: CARE Keeps D Debt Rating in Not Cooperating
GEM GRANITES: CARE Keeps D Debt Rating in Not Cooperating
GLENMARK PHARMA: Fitch Affirms 'BB' LT IDR, Outlook Stable
HIRA AUTOMOBILES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
INTERNATIONAL LAND: CARE Lowers Rating on INR33.48cr Loan to C
J.M. INTERNATIONAL: Ind-Ra Affirms B Issuer Rating, Outlook Stable
JAGADGURU COOPERATIVE: Ind-Ra Keeps BB Rating in Non-Cooperating
JEYASAKTHI SAW: CARE Keeps C Debt Rating in Not Cooperating
LIFE SHINE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
MAHAJYOTI FIBERS: CARE Keeps D Debt Rating in Not Cooperating
MAHAVEERJI POLYFAB: CARE Lowers Rating on INR11.02cr Loan to B-
MEWAR UNIVERSITY: CARE Keeps D Debt Rating in Not Cooperating
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
OPTIONS LAWNS: CARE Lowers Rating on INR6.72cr Loan to D
POPULAR AUTO: CARE Keeps C Debt Rating in Not Cooperating
PR.M. MODERN: CARE Lowers Rating on INR7.00cr Long Term Loan to B-
PRERNA STRIPS: CARE Keeps C Debt Rating in Not Cooperating
RAM AABHOSHAN: CARE Keeps B- Debt Rating in Not Cooperating
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating
SANGAM HANDICRAFT: CARE Keeps D Debt Ratings in Not Cooperating
SENDRAYAPERUMAL: CARE Keeps B- Debt Rating in Not Cooperating
SHARWIN COTTEX: CARE Keeps D Debt Rating in Not Cooperating
SHITLA PAPERS: CARE Lowers Rating on INR15cr LT Loan to B
SHIV GRAMOUDYOG: CARE Keeps B- Debt Rating in Not Cooperating
SIDDHARTH AGRO: CARE Keeps C Debt Rating in Not Cooperating
STERLING GENERATORS: Ind-Ra Withdraws BB+ LT Issuer Rating
TOKAI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
V. PONNUSAMY: CARE Keeps C Debt Rating in Not Cooperating
M A L A Y S I A
CHINA AUTOMOBILE: Takes Another Attempt at PN17 Exit
S I N G A P O R E
GREENSHIP OFFSHORE: Creditors' Proofs of Debt Due on Aug. 5
S R I L A N K A
SRI LANKA: Asia's Highest Default Risk Spotlights Debt Worry
T H A I L A N D
THAILAND: Pandemic Pushes Millions of Small Thai Firms Into Crisis
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A U S T R A L I A
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CUMMINS BUILDING: Second Creditors' Meeting Set for July 13
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Cummins
Building Pty Ltd has been set for July 13, 2021, at 3:00 p.m. via
video conference or telephone.
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 July 12, 2021, at 4:00 p.m.
Nicarson Natkunarajah of Roger and Carson was appointed as
administrator of Cummins Building on June 15, 2021.
HIGHGATE HILL: Second Creditors' Meeting Set for July 14
--------------------------------------------------------
A second meeting of creditors in the proceedings of Highgate Hill
Future Property Pty Ltd has been set for July 14, 2021, at 10:00
a.m. via virtual meeting technology.
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 July 13, 2021, at 5:00 p.m.
Bill Karageozis and Jonathan McLeod of McLeod & Partners were
appointed as administrators of Highgate Hill on July 2, 2021.
I50FOUR TECHNOLOGY: Second Creditors' Meeting Set for July 13
-------------------------------------------------------------
A second meeting of creditors in the proceedings of I50four
Technology Pty Ltd has been set for July 13, 2021, at 11:00 a.m.
via teleconference.
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 July 12, 2021, at 4:00 p.m.
Daniel Jon Quinn of SV Partners was appointed as administrator of
I50four Technology on June 7, 2021.
LANDSCAPE TANKS: First Creditors' Meeting Set for July 16
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Landscape
Tanks Pty Ltd and Landscape Tanks No. 2 Pty Ltd will be held on
July 16, 2021, at 9:30 a.m. via virtual meeting technology.
Joseph Hayes -- jhayes@wexted.com.au-- and Andrew McCabe --
amccabe@wexted.com -- of Wexted Advisory were appointed as
administrators of Landscape Tanks on July 6, 2021.
QUEENSLAND NICKEL: CA Orders Mineralogy to pay AUD102MM
-------------------------------------------------------
ABC News reports that Clive Palmer's company Mineralogy has been
ordered to pay AUD102 million over the collapse of Queensland
Nickel (QNI) by the state's Court of Appeal.
Queensland Nickel's liquidators have been pursuing Mr Palmer over
outstanding debts, ABC says.
ABC relates that last year, Mr Palmer's lawyers had successfully
argued in the Supreme Court that AUD102,844,346 sought by the
liquidators represented loans from joint venture companies and
therefore did not belong to QNI.
But today, the Court of Appeal upheld QNI's liquidators' case,
arguing that these transactions had in fact been loans from QNI to
Mineralogy and not the joint venture companies.
According to ABC, the judgment stated that some of the proof that
the loans were between the two companies could be found in emails
about certain transactions including a "loan balance report" that
included a "response from Mr Palmer's email alias account saying:
"No limit, clive".
The judgment follows a long-running series of legal actions
involving Mr. Palmer and the liquidators of the refinery company,
which collapsed in 2016, leaving 800 people out of work.
ABC says Mr. Palmer settled most of the AUD200 million lawsuit in
2019, including an agreement to repay AUD66 million in taxpayer
funds forked out for sacked worker entitlements.
But general-purpose liquidators continued to pursue his companies
in court in relation to other claims for creditors.
ABC notes that the liquidators had alleged QNI was insolvent on
January 13, 2016, and had made a number of uncommercial
transactions - claims Mr. Palmer's companies denied.
One of QNI's liquidators, John Park from FTI Consulting, described
the win as "a great outcome" for creditors of QNI.
"After five long years of formal proceedings, we hope today's
decision will put an end to this matter and we can proceed to
finalise payments to creditors and finalise a long and complicated
liquidation," the report quotes Mr. Park as saying.
FTI issued a statement saying the recovered funds would be applied
to priority costs, employees and remaining unsecured creditor
claims.
"Unsecured creditor claims are collectively estimated to exceed
AUD100 million," FTI said in the statement.
"These claims will be adjudicated on for payment once the funds are
recovered in the liquidation."
A spokesperson for Mr. Palmer said his lawyers were "reviewing the
judgment," ABC relays.
The issue of repayment of outstanding interest on the
AUD102,884,346 is yet to be finalized, ABC notes.
About Queensland Nickel
Queensland Nickel was engaged in the production and marketing of
nickel and cobalt. It owned and operates the Palmer Nickel and
Cobalt Refinery in Queensland, Australia. It is owned by
businessman and politician Clive Palmer.
The Company experienced financial difficulties and Palmer sought
assistance from the Queensland Government in late 2015 but was
rejected. The Company's ownership was later transferred to a new
company named Queensland Nickel Sales Pty Ltd in a joint venture
between two of Clive Palmer's companies, QNI Resources Pty Ltd and
QNI Metals Pty Ltd, with the directorship going to Palmer's nephew
Clive Theodore Mesnick.
On Jan. 19, 2016, the Company entered into voluntary
administration. John Park, Stefan Dopking, Kelly-Anne Trenfield and
Quentin Olde of FTI Consulting were appointed as voluntary
administrators of the Company.
FTI as administrators issued a report in early April 2106 that the
Company "incurred debts of AUD771 million after going insolvent in
November [2015]."
On April 22, 2016, the Companies' creditors voted for liquidation.
FTI went from being administrators to liquidators at the second
creditors meeting in April 2016.
SMART METERING: First Creditors' Meeting Set for July 16
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Smart
Metering Services Pty Ltd (trading as Smart Metering Services) and
Smart NRG Solutions Pty Ltd will be held on July 16, 2021, at 10:30
a.m. via virtual meeting technology.
Rahul Goyal and David Johnstone of KordaMentha were appointed as
administrators of Smart Metering on July 6, 2021.
STOCKLEY EXCAVATIONS: Second Creditors' Meeting Set for July 13
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Stockley
Excavations Pty Ltd has been set for July 13, 2021, at 11:00 a.m.
at the offices of Cor Cordis, One Wharf Lane, Level 20, 171 Sussex
Street, in Sydney, NSW.
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 July 12, 2021, at 4:00 p.m.
Neil Cussen and Andre Lakomy of Cor Cordis were appointed as
administrators of Stockley Excavations on June 21, 2021.
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C H I N A
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PEKING UNIVERSITY FOUNDER: China Court Approves Restructuring Plan
------------------------------------------------------------------
Asia Insurance Review reports that the Beijing No 1 Intermediate
People's Court has approved the reorganisation plan of the
state-owned Peking University Founder Group, more than two months
after the proposed restructuring was announced.
Peking University Founder Group was forced to reorganise as it is
insolvent and has defaulted on bonds. Companies in the group
include Founder Securities, PKU Founder Life Insurance, Founder
Technology Group Corp and China Hi-Tech Group Co.
According to Asia Insurance Review, Founder Securities on July 5
announced that, in accordance with the ruling of the court and the
reorganisation plan, the company's controlling shareholder Founder
Group and a party acting in concert, Founder Industrial Holdings,
will transfer all the company's shares to the proposed New Founder
Group (the specific name is subject to registration with the Market
Regulatory Department). The reorganisation involves Ping An
Insurance Group Co taking a majority stake in the new company,
becoming its controlling shareholder.
On April 30, Ping An Insurance Group Co of China issued a statement
on its participation in the reorganisation of Founder Group. Its
subsidiary Ping An Life signed an agreement with Founder Group and
other parties involved in the reorganization, the report recalls.
Under the agreement, Ping An Life will acquire a stake of
51.1%-70.0% in New Founder Group at a consideration of CNY37.05
billion to CNY50.75 billion.
Asia Insurance Review relates that industry analysts said Ping An,
which is building a medical and health ecosystem, is attracted by
the Founder Group's healthcare resources, in particular, Peking
University Healthcare Industry Group Co.
In its April statement, Ping An said, "Healthcare is a dominant
core business segment of the Founder Group, with PKU Healthcare
Industry Group Co., which owns a first-class medical brand name at
the international level, and the Peking University International
Hospital, the mission of which is to 'build a first-class hospital
at the international level'," the report relays. Offline industrial
scale, research and development and the application of healthcare
technology or the collection of healthcare big data are all highly
consistent with the strategic layout of Ping An in building a
healthcare ecosystem, the statement, as cited by Asia Insurance
Review, added.
About Peking University Founder
Chinese state-owned Peking University Founder Group Corp. provides
information technology services. The Company offers software
development, electronic publishing system development, smart city
solution development, data operation, and other services. Peking
University Founder Group also operates financing, medical
technology development, and other businesses.
On Feb. 19, 2020, Founder Holdings Limited received a notification
letter from Peking Founder, regarding a civil order and decision
letter received by Peking Founder from The First Intermediate
People's Court of Beijing. Pursuant to the civil order and decision
letter, the Court decided to accept the application made by Bank of
Beijing Co., Ltd. for the initiation of restructuring procedure
against Peking Founder, and appointed Peking Founder liquidation
team as the administrator of Peking Founder. The Peking Founder
liquidation team consists of, among others, the People's Bank of
China, the Ministry of Education of the People's Republic of China,
relevant financial regulators and relevant departments of Beijing
Municipal Government.
Bank of Beijing Co. Ltd., one of the creditors of Peking University
Founder Group Corp., asked a court to restructure the indebted
state-owned conglomerate in February 2020, according to Caixin
Global.
SUNING.COM: Gets $1.36 Billion State-Backed Bailout
---------------------------------------------------
Bloomberg News reports that Chinese billionaire Zhang Jindong
secured a $1.36 billion state-backed bailout for the troubled
retail arm of his Suning empire, marking another step in Beijing's
efforts to clean up its heavily indebted conglomerates.
A group of investors, led by the Nanjing state asset management
committee and the Jiangsu provincial government, will take a 16.96%
stake in Suning.com Co., according to a statement on July 5,
Bloomberg relays. The deal was struck at CNY5.59 a share, the near
eight-year low the stock was trading at before it was halted June
16. The shares surged 10% in Shenzhen trading on July 6.
According to Bloomberg, Alibaba Group Holding Ltd. and leading
Chinese appliance makers Midea Group Co. and Haier Group Co. are
also partners in the fund, as are smartphone maker Xiaomi Corp.,
and TCL Technology Group Corp. After the transaction, none of the
major holders will have a controlling stake.
Bloomberg says the bailout means Zhang will no longer control
Suning.com, marking the end of a reign during which he led Suning
into an array of businesses, including ownership of the Inter Milan
soccer team. Bloomberg News reported earlier that the Jiangsu
government, Alibaba and the other companies were considering their
involvement in the bailout.
"The diversified investor portfolio helps push Suning.com to
further improve the corporate governance, operations and business
transformation as a retail service provider," the statement, as
cited by Bloomberg, said. "The fund will actively support Suning to
grow healthily and stably."
Suning.com had a market value of about CNY52 billion ($8 billion)
before the trading halt, but it's been in trouble for some time,
Bloomberg notes. The retail business was weakened by a slowdown in
spending during the coronavirus pandemic and concerns about its
cash flow intensified in September, when Zhang waived his right to
a CNY20 billion payment from China Evergrande Group, the world's
most indebted property developer.
The stock tumbled last month after a Beijing court froze CNY3
billion worth of shares held by Zhang -- representing 5.8% of
Suning.com -- and creditors agreed to extend a bond for Suning
Appliance Group Co., which is owned by Zhang and fellow co-founder
Bu Yang, according to Bloomberg.
In a separate statement on July 5, the listed retail arm of Suning,
one of China's biggest retailers of appliances, electronics and
other consumer goods, said it posted a preliminary first-half loss
of CNY2.5 billion to CNY3.2 billion, Bloomberg discloses.
"The company's deteriorating financials may have led to a stake
selloff without any premium," said Bloomberg Intelligence analyst
Kevin Kim. The participation of China's major appliance
manufacturers in the bailout will mean they "have more incentives
to sell their products through the Suning's online and offline
platforms, which are much needed for the retailer to make a profit
turnaround," he said.
China is taking advantage of a strengthening economy and stable
financial markets to clean up its corporate sector, discouraging
the kind of reckless debt-fueled expansion that inflated some
companies to a dangerous size, Bloomberg states. The spawning of
such bloated empires created a threat to the financial system as
well as a challenge to President Xi Jinping's grip on power.
Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.
XINYUAN REAL: Fitch Puts 'B-' Foreign-Currency IDR on Watch Neg.
----------------------------------------------------------------
Fitch Ratings has placed Xinyuan Real Estate Co., Ltd.'s 'B-'
Long-Term Foreign-Currency Issuer Default Rating (IDR), and its
senior unsecured rating and ratings on its outstanding notes of
'B-' with Recovery Ratings of 'RR4' on Rating Watch Negative
(RWN).
The RWN reflects the uncertainties associated with the delay in the
publication of the company's 2020 audited financial results and the
risk around the refinancing of a bond due in October 2021 without
deterioration in its liquidity position.
The resolution of the RWN will depend on the publication of audited
financial statement and the refinancing of the senior notes
maturing in October. Failure to publish the audited financial
statement and lack of material progress towards refinancing the
October 2021 bonds around the end of July will lead to a downgrade
of Xinyuan's ratings. The ratings may be affirmed at 'B-' with a
Negative Outlook if Xinyuan addresses the October maturities but
its funding access remains weak.
KEY RATING DRIVERS
Delayed Publication of Financials: Xinyuan's 2020 audited financial
statement has not been published due to an independent review
initiated by its audit committee of the impact that certain
transactions will have on its 2020 results.
Weakened Capital-Market Access: Xinyuan's US-dollar bond prices
fell sharply in May and have remained low, after the company missed
the 30 April 2021 deadline to file its 2020 annual report. Weak
bond prices on the secondary bond market indicate narrower market
access, with limited time before the bonds mature. However, Fitch
believes the company is working on a number of funding options
besides new US dollar bond issuance to refinance the USD229 million
of bonds due in October 2021. It is also prepared to repay the
bonds with cash on hand.
Leverage Falls on Reduced Purchases: Xinyuan has been deleveraging
since 2019 by slowing land acquisitions. Leverage, measured by net
debt / adjusted inventory, fell to 50% by end-2020 from 69% at
end-2018 and 59% at end-2019. The company spent just 13% of its
sales proceeds on land acquisitions in 2020 (18% in 2019 and 57% in
2018). As a result, land-bank life has fallen to about 2.8 years
from around 5 years at end-2018. The company plans to maintain a
land bank sufficient for two to three years of development
activities, in line with the industry.
Margin to Recover: Fitch expects gross profit margin on property
development to return to previous years' levels because of higher
contribution from higher-margin projects acquired in recent years.
Gross profit margin on development narrowed in 2020 because Xinyuan
cut prices to boost sales and it booked sales from lower-margin
projects.
Steady Contracted Sales, Cash Collection: The company's
attributable contracted sales rose 15% in 2020. The cash collection
rate declined to 75% from 81% in 2019 due to slower mortgage
releases. The company expects the cash collection rate to recover
to prior years' level of around 80%.
Fall in Revenue: Xinyuan recognises revenue on property development
on an "over time" basis, similar to a percentage-of-completion
(POC) method. Fitch believes development-property revenue declined
significantly in 2020, due to delays in construction after measures
to contain the Covid-19 pandemic. Fitch forecasts revenue to
recover in 2021. Revenue in 2020 was also affected by one-off
adjustments for previous excess or shortfalls in the company's
estimates of total contracted sales and total costs for each
project, which influence revenue and costs recognised each year.
Increased JV and NCI Exposure: Xinyuan increased its exposure to
JVs and non-controlling interests (NCIs) in line with the industry
trend. Fitch estimates that JV net assets increased to over 30% of
net DP assets by end-2020, and NCI net claims increased to 15%-20%
of net DP assets. The level of JV and NCI exposure remains
reasonable relative to peers.
DERIVATION SUMMARY
Skyfame Realty (Holdings) Limited (B-/Negative) and Guorui
Properties Limited (B-/Negative) have weak liquidity and high
refinancing risk, as both companies have significant amounts of
capital-market debt that mature in the near term.
Xinyuan has a stronger liquidity position, with available
cash/short-term debt of 0.7x, compared to 0.2x for Guorui and 0.4x
for Skyfame. Xinyuan's leverage of 50% is also lower than the over
55% for both Guorui and Skyfame. Xinyuan's attributable contracted
sales is higher at around CNY18 billion, compared with CNY12
billion for Guorui and CNY6 billion for Skyfame, while Guorui's
business profile is supported by a large landbank that can support
10 years of sales.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Attributable contracted sales to increase by 15% in 2020, 5%
in 2021 and 2% in 2022;
-- 80% cash collection rate (after VAT) in 2020-2022;
-- Land acquisition cost of 13% of sales proceeds in 2020, 30% in
2021 and 38% in 2022;
-- Construction cost at 34%, 37% and 37% of sales proceeds in
2020, 2021 and 2022, respectively;
-- Adjusted EBITDA margin (excluding capitalised interest and
assumption changes) of 14%, 21% and 21% in 2020, 2021 and-
2022, respectively.
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that Xinyuan would be liquidated
in bankruptcy.
-- Fitch has assumed a 10% administrative claim.
Liquidation Approach
-- The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realised in sale or
liquidation processes conducted during a bankruptcy or
insolvency proceeding and distributed to creditors;
-- 100% advance rate applied to cash, with trade payables added
to the repayment waterfall since available cash is less than
trade payables;
-- 70% advance rate applied to net inventory. The company
explained that the decline in EBITDA margin in 2020 was caused
by one-off factors such as clearing older stock at lower
prices, higher contribution from low-margin projects and lower
revenue recognition due to construction delays during the
pandemic. As explained in the Key Rating Drivers, Fitch
forecasts EBITDA margin to recover in 2021;
-- 70% advance rate applied to trade receivables;
-- 60% advance rate applied to property, plant and equipment
(buildings only);
-- 100% advance rate applied to investment properties. A 6.5% cap
rate would lead to a 110% advance rate but Fitch has capped it
at 100% to be conservative. Investment properties are booked
at cost less depreciation on the balance sheet.
The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR1' for all
secured debt and onshore unsecured debt, and a recovery
corresponding to a Recovery Rating of 'RR3' for offshore unsecured
debts. However, the Recovery Rating for senior unsecured debts is
capped at 'RR4' because under Fitch's Country-Specific Treatment of
Recovery Ratings Criteria, China falls into Group D of creditor
friendliness, and the Recovery Ratings of issuers with assets in
this group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The ratings may be affirmed at 'B-' with a Negative Outlook if
Xinyuan addresses the bonds falling due in October 2021but its
funding access remains weak.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Failure to publish unqualified audited financial results
around the end of July;
-- Failure to show material progress towards refinancing the
bonds due in October 2021 around the end of July;
-- Deterioration in debt capital market access and/or liquidity
position.
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
Improved Liquidity: Xinyuan improved its liquidity position in
2020, with available cash/short-term non-bank debt and available
cash/short-term debt improving to 1.0x and 0.6x, respectively, by
end-2020, from 0.6x and 0.4x at end-2019. Fitch excludes cash at
Xinyuan Property Management for Fitch's liquidity analysis as
Xinyuan Property Management's cash is not directly accessible to
the company.
ISSUER PROFILE
Xinyuan Real Estate is a small property developer in China with
CNY15 billion-20 billion of contracted sales. It generates around
half of its contracted sales from its home market in Zhengzhou and
it has expanded to Tier 1 and 2 cities across the country,
including Beijing, Chengdu, Xi'an and Qingdao. It has been listed
on the New York Stock Exchange since 2007.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of adjusted inventory used in the leverage
calculations includes: inventory, net deposits and prepayments for
projects, projects included in other receivables, investment
properties, property, plant and equipment (land and buildings),
investments in JVs, net amounts due from JVs, and net amount due
from NCIs, less contract deposits and customer deposits.
ESG CONSIDERATIONS
Xinyuan has an ESG Relevance Score of 4 for Financial Transparency,
reflecting the delay in the filing of its annual report due to an
independent review on certain connected transactions. This has a
negative impact on the credit profile and is relevant to the rating
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.
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AARKAY PACKAGING: CARE Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Aarkay
Packaging Industries (API) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 27, 2020, placed the
rating(s) of API under the 'issuer non-cooperating' category as API
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. API continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated April 12,
2021, April 22, 2021, May 2, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
M/s. Aarkay Packaging Industries (API) was established in the year
2007 as a partnership concern by Mr. A. Muthu Kumar, Mr. PL.
Adaikkapillai, MS. S. Chithra, Mr. Sathyaseelan and Mr. K. Raju.
API is engaged in manufacturing of corrugated carton boxes finding
application in packaging industry.
ABSOLUTE PROJECTS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Absolute
Projects (India) Limited's (APIL) Long-Term Issuer Rating to 'IND
BB' from 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR95 mil. Fund-based working capital limit Long-term rating
downgraded; short-term rating affirmed with IND BB/Stable/IND
A4+ rating; and
-- INR380 mil. Non-fund-based working capital limit affirmed with
IND A4+ rating.
KEY RATING DRIVERS
The downgrade reflects APIL's significant decline in scale of
operations during FY20-FY21 than FY19. The revenue plunged to
INR1,018.51 million in FY21 and INR981.87 million in FY20 (FY19:
INR2,049.09 million) due to the COVID-19-led lockdown, leading to
lower execution of number of orders and delay in billing. The
revenue deteriorated in FY20 due to Fani cyclone, which had hit the
project site in National Thermal Power Corporation Limited, Puri,
leading to complete closure for three months. Management expects
the revenue to increase in FY22 as the company has an outstanding
order book of INR880.02 million as of May 31, 2021 to be executed
by FY22. FY21 financials are provisional in nature.
Liquidity Indicator - Poor: APIL's average use of the fund-based
limits was 99% for the 12 months ended May 2021 with instances of
overutilization of up to 21 days. The cash flow from operations
turned positive to INR129.72 million in FY21 (FY20: negative
INR72.43 million) due to favorable changes in the working capital.
The company's working capital cycle remained elongated, although
improved to 120 days in FY21 (FY20: 170 days), due to an increase
in the payable period to 251 days (164 days), partially offset by
an increase in the receivable period to 321 days (275 days). The
cash and cash equivalents stood at INR27.82 million at FYE21
(FYE20: INR3.93 million). AIPL had availed the Reserve Bank of
India-prescribed guaranteed emergency credit line of INR19 million
and Baroda Covid emergency credit line of INR9.5 million to
mitigate its short-term liquidity requirement. The company does not
have any capital market exposure and relies on banks to meet its
funding requirement.
The ratings remain constrained by AIPL's average EBITDA margin to
5.78% in FY21 (FY20: 3.94%, FY19: 4.29%). The improvement in FY21
was due to decline in raw material prices and personnel expenses.
The return on capital employed was 10.2% in FY21 (FY20: 6.5%).
Ind-Ra expects the margin for FY22 to remain in line with FY19
margin.
The ratings also remain constrained by APIL's modest credit
metrics. The net adjusted leverage (net debt/operating EBITDA)
improved to 1.79x (FY20: 6.25x) and the interest coverage
(operating EBITDA/gross interest expense) to 1.50x (1.41x) due to
an improvement in the absolute EBITDA to INR58.87 million (INR38.65
million). Ind-Ra expects the credit metrics to improve marginally
in the short term due to the increase in the revenue coupled with a
likelihood of an improvement in the absolute EBITDA.
However, the ratings continue to be supported by APIL's promoter's
more than 26 years of experience, leading to longstanding
relationships with customers and has also helped the company in
becoming an approved vendor for various associations; thus,
supporting the business risk profile.
RATING SENSITIVITIES
Negative: Any further deterioration in the scale of operations and
the overall credit metrics and/or a stretch in the liquidity
position, will be negative for the ratings.
Positive: An improvement in the scale of operations, revenue
visibility and an improvement in the credit metrics with the
interest coverage increasing above 2.3x and improved liquidity
position, will be positive for the ratings.
COMPANY PROFILE
Incorporated in 1995, APIL is promoted by R.S. Ola. The company
executes turnkey projects such as erection and commissioning of
substations, civil work for extension of switchyard, shifting of
lines, and manufacturing electrical goods such as conductors,
transformers, switches and switchgear. It has two manufacturing
units in Greater Noida and Roorkee.
ALPINE DISTILLERIES: CARE Lowers Rating on INR64cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Alpine Distilleries Private Limited (ADPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 64.00 CARE D Revised from CARE BB-;
Facilities Stable
Short Term Bank
Facilities 0.95 CARE D Revised from CARE A4
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of ADPL
takes into account the delay in the servicing of the term loan for
the month of May'21 due to liquidity mismatch.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Delay in debt servicing: There has been delay in the servicing of
term debt for the month of May'21 due to liquidity mismatch. The
liquidity mismatch is primarily due to decline in the revenue due
to the on-going pandemic and stabilization issues with the newly
constructed distillery plant.
Alpine Distilleries Private Limited (ADPL), was incorporated in
November 2002 as Agnes Exim Private Limited, and is engaged in
bottling of Indian made Foreign Liqour (IMFL). The name of the
company was later changed to its current name in November 2008.
Promoted by Kolkata-based Mr Debasis Mukherjee, Mr Debraj Mukherjee
and Mr Balbir Singh Malhotra, ADPL commenced its commercial
operation of its IMFL bottling facility in Hooghly (WB) in April
2012 with an installed capacity of 18 lakh case p.a. From 2019, Mr
Yogesh Jain, Delhi based businessman has invested funds and is
presently the major shareholder of the company (63.15%). ADPL had a
Country Spirit (CS) plant which was shut down in Q4FY19 due to
continuous losses from the division. The company bottles and
markets well-known brands like "Officer's Choice", "Officer's
Choice Blue" and "Old Monk Rum" for prominent liquor manufacturers.
As a part of backward integration initiative, the company has set
up a grain-based Extra Neutral Alcohol (ENA) plant with an
installed capacity of 60 KLPD (20 million liters p.a.) and a
co-generation power plant of 3MW at an approximate cost of INR130
crore. The plant has become operational from December 26, 2020.
APEX SURATGARH: CARE Keeps B Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Apex
Suratgarh Multispeciality Hospital Private Limited (ASMHPL)
continues to remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 8.94 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 28, 2020, placed the
rating of ASMHPL under the 'issuer non-cooperating' category as
ASMHPL had failed to provide information for monitoring of the
rating for the rating exercise as agreed to in its Rating
Agreement. ASMHPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and emails dated March 24, 2021, March 29, 2021 and April 3, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Apex Suratgarh Multispecialty Hospital Private Limited (ASMHPL) was
incorporated in 2014 and started it operations from December 2016.
ASMHPL has been promoted by Dr. Sachin Jhanwar (MS – Master of
Surgery, Fellow of Royal Colleges of Surgeons, UK), Dr. Vijay
Beniwal (MS- Master of Surgery), Dr. Sanjay Bajaj (MD- Doctor of
Medicine), Dr. Rajender Kumar Chhabra (MD- Doctor of Medicine,
Fellow of American Colleges of Physicians, USA) and Mr. Arvind
Bansal. The company operates a hospital providing quality services
and patient care to the people in the vicinity of Sriganga Nagar
(Rajasthan). The hospital has specialized departments in
Cardiology, Endoscopy, Radiology, Cytology, Histopathology and few
others for its patients and visitors. The hospital has 100 beds and
1 rented ambulance, while the average occupancy rate for in-patient
department has remained between 35-40% during 11MFY18.
ARUN POLYMERS: CARE Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Arun
Polymers (AP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 18, 2020, placed the
rating(s) of AP under the 'issuer noncooperating' category as AP
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. AP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 4, 2021, May 14, 2021 and May 24, 2021. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Arun Polymers is a proprietorship firm, incorporated in 2013 by Mr.
Arun Kumar. It started commercial operations from April 2013. The
firm is engaged in the business of manufacturing polypropylene sack
bags (PP bags). The manufacturing unit is located in Dindigul
district in the state of Tamil Nadu and has around 40 employees.
The major raw material for the unit is virgin raffia (a by-product
of petroleum) granules which are majorly purchased from Reliance
Industries Limited. The firm had an installed capacity of 100 tons
per month as on March 31, 2016, which has been increased to 250
tons per month as on July 31, 2016. The firm has majority of
customers in Tamil Nadu and Telangana region.
BAIT LOGITECH: CARE Lowers Rating on INR5.50cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Bait
Logitech Pvt. Ltd. (BLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.50 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE B-; Stable
Short Term Bank 6.60 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category and Revised from
CARE A4
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated October 19, 2020 placed the
rating(s) of BLPL under the 'issuer non-cooperating' category as
BLPL had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. BLPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and letter/emails dated
June 4, 2021, June 8, 2021, June 15, 2021. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of these ratings (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised on account of ongoing delays in the
account as per banker interaction.
Bait Logitech Private Limited (BLPL) was incorporated in the year
2010 by promoters named Mr. Brahmananda Mishra and with its office
located Khordha, Odisha. Since its inception, the company has been
engaged in several business activities such as trading of iron
ores, construction of buildings, fabrication and erection of
industrial structures, and transportation services. The company
mainly generates income from trading of iron ores. This apart, the
company also generates income from transportation services and also
from civil construction, fabrication and erection job. Both the
directors (Mr. Brahmananda Mishra and Mr. Bimal Krushna Mishra)
have more than 25 years of experience in these industries. Both of
them look after the day-to-day operations of the entity along with
other technical and non-technical professionals who are having long
experience in this industry.
GANESH COLD: CARE Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Ganesh Cold Storage (SGCS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 12, 2020, placed the
rating(s) of SGCS under the 'issuer non-cooperating' category as
SGCS had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SGCS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 28, 2021, May 08, 2021, May 18, 2021. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Established in 1999 as a partnership firm, SGCS is engaged into
providing cold storage facility to farmers for storing potatoes on
a rental basis. The firm has controlled atmosphere cold storage
facility located at Deesa; Gujarat having a capacity to store 8,250
Metric Tonne (MT)/ 1,65,000 bags of potatoes as on March 31, 2018.
The firm is managed by Mr. Popatlal Chamanaji Kachhawa, Mr. Kalidas
Chamanaji Kachhawa and Mr. Lalabhai Chamanaji Kachhawa. Besides
providing cold storage facility, the firm also provides interest
bearing advances to farmers for potato farming purposes against the
stock of potato stored.
GEM GRANITES: CARE Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Gem
Granites (GG) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 58.02 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/Short 19.33 CARE D; ISSUER NOT COOPERATING;
Term Bank Rating continues to remain
Facilities under ISSUER NOT COOPERATING
category
Short Term Bank 77.16 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated July 2, 2020, placed the
rating(s) of GG under the 'issuer noncooperating' category as GG
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. GG continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 18, 2021, May 28, 2021 and June 7, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
GG is a partnership firm established in the year 1972 by Mr
Veeramani to carry on the business of mining/quarrying and
processing of various varieties of granites. The firm has two
quarrying units one in Ilkal, Karnataka and other in Dharmapuri
district. It also has a granite processing unit in Injambakkam,
Chennai.
GLENMARK PHARMA: Fitch Affirms 'BB' LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed India-based Glenmark Pharmaceuticals
Ltd's Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is
Stable.
Glenmark's geographic diversification and satisfactory record of
regulatory compliance mitigate the business risk arising from its
small size and support its rating relative to larger global-generic
drug makers. The affirmation also factors in Glenmark's adequate
product pipeline, which, combined with robust long-term growth
prospects in India, limits the impact on profitability from
continued pricing pressure in the US generic pharmaceutical market.
Glenmark's de-risking strategies in its novel drug development
programme will preserve its financial flexibility from the inherent
risks.
The Stable Outlook reflects Fitch's expectation that Glenmark will
retain its comfortable leverage headroom following an improvement
in the financial year ending March 2021 (FY21), despite the
coronavirus pandemic. This is even after considering normalisation
in costs that will result in a lower EBITDA margin after a strong
performance in FY21.
KEY RATING DRIVERS
Comfortable Leverage: Fitch expects the EBITDA margin to moderate
to 16%-17% in FY22, from 18% in FY21, as costs normalise to more
sustainable levels. Nonetheless, financial leverage - measured by
consolidated net debt/EBITDA - will stay largely unchanged, with
operating cash flow covering stable dividends and moderate capex,
consistent with Fitch's view of Glenmark's growth strategy.
Leverage improved to 1.8x in FY21, from 2.4x in FY20, on stronger
profitability and a prudent approach to growth investments. EBITDA
generation rose by more than 20% yoy due to a sales boost from an
antiviral COVID-19 drug in India, strong growth in the active
pharmaceutical ingredients (API) business, as well as lower R&D,
travel and marketing costs. A successful IPO of Glenmark's API
business and the use of proceeds for debt repayment, as announced,
could improve leverage, but Fitch has not factored this into
Fitch's rating case due to the inherent uncertainty.
Adequate Product Pipeline: Fitch believes Glenmark's adequate R&D
capabilities and product pipeline will enable a steady flow of new
product launches, particularly in the US, which should limit the
impact of sustained pricing pressure on profitability. Glenmark
received 14 abbreviated new drug application approvals, including
four tentative approvals, from the US Food and Drug Administration
(FDA) in FY21, with 41 pending approvals as of end-March 2021.
Small, but Diversified: Glenmark's revenue and operating EBITDA are
small compared with that of global major generic drug makers, but
this is counterbalanced by the company's geographic diversification
across pure and branded generic markets, including the US (28% of
FY21 revenue), India (32%), Europe (12%), Latin America (4%) and
others (24%). Scale and diversification are important for generic
drug companies to maintain stable margins. Glenmark also has
adequate competitive positions in its core dermatology and
respiratory therapy segments.
Robust Domestic Prospects: Pharmaceutical demand in India has
healthy long-term prospects due to the government's focus on
boosting mass access to healthcare. Glenmark's formulation business
ranks 14th in India, with a revenue share of 2.3% in March 2021,
according to IQVIA MAT. Nonetheless, stronger shares in dermatology
(8.6%), respiratory (5.0%) and cardiovascular (4.7%) underpin its
position in the fragmented and physician-driven market. Glenmark
captured a 20% market share in antivirals with its Covid-19 drug
and its domestic revenue rose by 10.4% in FY21, beating the 5.9%
market growth.
Risks in Novel Drugs: Inherent risks of novel drug development are
pronounced for Glenmark due to its small scale and limited record.
Glenmark's R&D spending as a percentage of sales remained in the
low double digits (FY21:11.2%), despite reduction from 14.7% in
FY19, weighing on profitability and free-cash generation. Fitch
expects Glenmark to take a measured and collaborative approach to
R&D spending, in line with its strategy. The company has signed
multiple partnerships for its R&D assets and intends to raise
equity in Ichnos Sciences Inc. - a new subsidiary holding novel
drug IPs.
A more aggressive approach could pressure credit metrics and
financial flexibility, potentially outweighing the benefits of a
lower dependence on the highly competitive generic drug business
over the long term. Glenmark aims to launch or monetise its R&D
drugs in advanced stages of development in the medium term, which
could provide significant earnings. Fitch's rating case does not
include any launches due to the uncertainty and potential delays in
the approval process, as highlighted by delay in the approval of
Ryaltris; Glenmark's maiden new drug application for the US
market.
Regulatory Risk: Glenmark's lower production-facility
diversification than peers exposes it to above-average risk from
adverse regulatory actions. Nonetheless, its compliance record is
satisfactory, with no further adverse FDA actions subsequent to a
warning letter for its Baddi facility in 2019. The warning does not
affect sale of existing products. In addition, Baddi's contribution
to Glenmark's US sales and new product pipeline is limited.
Glenmark is one of the defendant in a US drug-price fixing lawsuit.
Fitch treats this as an event risk, as there is poor visibility of
potential liabilities for Glenmark.
DERIVATION SUMMARY
Glenmark has smaller scale and diversification than large generic
pharmaceutical companies, such as Viatris Inc. (BBB/Stable) and
Teva Pharmaceutical Industries Limited (BB-/Negative). The large
peers also have deeper launch pipelines, with a focus on more
complex products, which partly mitigates price-erosion risk,
notably in the US. Glenmark is rated three notches below Viatris
due to its weaker business profile and profitability, which are
partly counterbalanced by Viatris's higher leverage. Glenmark is
rated a notch above Teva, as Teva's stronger business profile is
counterbalanced by acquisitions that raised leverage and modest
financial flexibility in view of pricing pressure for its key
specialty medicine and litigation.
Glenmark compares favourably with Ache Laboratorios Farmaceuticos
S.A. (BB/Negative) and Jubilant Pharma Limited (JPL, BB/Stable),
with a larger scale and more diversified geographic presence.
Nonetheless, JPL's greater presence in specialty pharmaceuticals
limits its exposure to ongoing pricing pressure in the US generic
pharmaceutical market. JPL's rating also factors in its improved
business profile after the demerger of its parent's commoditised
chemicals business and similar leverage to Glenmark. Ache has a
strong competitive position in Brazil and robust credit ratios, but
its Foreign-Currency IDR is capped by Brazil's Country Ceiling of
'BB'.
Glenmark is rated two notches below Hikma Pharmaceuticals PLC
(BBB-/Stable), underscoring Hikma's larger scale, robust market
positioning, particularly in the US injectables market, and a
stronger financial profile, characterised by higher profitability
and lower leverage.
KEY ASSUMPTIONS
Fitch's key assumptions within its Rrting case for the issuer
include:
-- Consolidated revenue to increase by mid-single digits annually
over FY22-FY23;
-- EBITDA margin to remain between 16%-17% over FY22-FY23 (FY21:
18%) as costs normalise from the low levels during the
pandemic;
-- Capex of around INR8 billion in FY22 and 8.0% of sales in
FY23;
-- Stable annual dividend payouts at below 15% of net income.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- An increase in scale to around USD2 billion in sales, while
maintaining its current financial profile;
-- Sustained free cash flow generation;
-- Financial leverage, as measured by consolidated net
debt/EBITDA, sustained at less than 1.5x (FY21: 1.8x).
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Weakening of the competitive position or adverse FDA action;
-- Deterioration in financial leverage, as measured by
consolidated net debt/EBITDA, to more than 3.0x.
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
Adequate Liquidity: Glenmark had readily available cash of INR11.0
billion at end-March 2021. This was sufficient to meet INR8.0
billion of near-term debt maturities, including INR5.1 billion of
short-term debt that Fitch expects lenders to roll over in the
normal course. Glenmark took steps to reduce large maturities in
FY22. It arranged bank facilities to redeem USD200 million of
senior notes ahead of the August 2021 maturity. It also redeemed
USD37 million in principal amount of convertible bonds in April
2021 and received consent from remaining bondholders to remove the
put option prior to maturity in June 2022.
Annual debt maturities after FY22 appear balanced, but are
significant at more than INR12 billion from FY23-FY25. Free cash
generation will be insufficient to meet these maturities, but Fitch
believes Glenmark's reasonable leverage should aid in refinancing,
including drawdowns on its USD80 million (INR5.8 billion) of
uncommitted bank facilities maturing in July 2023. Fitch expects
Glenmark to proactively manage its refinancing needs, as evidenced
in the past. The company's liquidity profile will benefit if it
completes the IPO of its API business and uses proceeds to repay
debt.
ISSUER PROFILE
Glenmark is an India-headquartered pharmaceutical company, focused
on the branded and generic formulations, API and novel drug
development businesses.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
HIRA AUTOMOBILES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Hira Automobiles
Ltd.'s (HAL) Long-Term Issuer Rating of 'IND B+ (ISSUER NOT
COOPERATING)' in the non-cooperating category and has
simultaneously withdrawn the rating.
The instrument-wise rating action is:
-- INR400 mil. Fund-based limits* maintained in non-cooperating
category and withdrawn.
*Maintained at 'IND B+ (ISSUER NOT COOPERATING)'/'IND A4(ISSUER
NOT COOPERATING)' before being withdrawn.
KEY RATING DRIVERS
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency.
Ind-Ra is no longer required to maintain the rating, as the agency
has a received no-objection from the lender to withdraw the rating.
This is consistent with the Securities and Exchange Board of
India's circular dated March 31, 2017 for credit rating agencies.
COMPANY PROFILE
Incorporated in 1989, HAL started its operations as a Maruti Suzuki
car dealer with one showroom and a workshop in Patiala (Pubjab).
The company has dealerships at nine locations in Punjab - Patiala,
Muktsar, Rajpura, Nabha, Malout, Devigarh, Gidderbaha, Bhadson, and
Samana. Besides selling cars and related accessories, it provides
financing and insurance solutions for the same. HAL is listed on
BSE Ltd.
INTERNATIONAL LAND: CARE Lowers Rating on INR33.48cr Loan to C
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
International Land Developers Private Limited (ILDPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 33.48 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B-; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated January 11, 2019; placed the
rating of ILDPL under the 'issuer non-cooperating' category as
ILDPL had failed to provide information for monitoring of the
rating. ILDPL continues to be non-cooperative despite repeated
requests for submission of information through e-mails dated April
10, 2021; April 20, 2021 and April 30, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which, however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings have been revised on account of non-availability of
information due to non-cooperation by ILDPL. CARE views information
availability risk as a key factor in its assessment of credit
risk.
Detailed description of the key rating drivers
At the time of the last rating on May 25, 2020 the following were
the rating strengths and weaknesses:
Key Rating Weakness
Key Rating Weaknesses
* High project execution risk with ongoing projects at nascent
stages of development: ILDPL is currently developing two group
housing projects namely, 'ARETE' located at Sector 33, Gurgaon and
'GSR Drive' located at Sector 36, Gurgaon. For ARETE project, the
company has incurred only 43% of the total cost of the project as
of December 31, 2017 (34% as of March 27, 2017); majorly comprising
of land cost, statutory fees for approvals and excavation. In 'GSR
Drive', the company has incurred INR60 cr out of total estimated
project cost of INR739 cr as of December 31, 2017 i.e. about 8% of
total cost. The slowdown in construction can be attributed to lower
sales & collections owing to lower demand as a result of overall
slowdown in the real estate sector. Overall, the company remains
exposed to execution risk and the completion of projects within
envisaged cost and timelines remain a key rating sensitivity.
Moreover, with most part of balance cost to be incurred is planned
to be funded through customer advances, the funding risk for the
projects also continues to remain at high level.
* Significant project off-take risk: The projects of ILDPL are at
nascent stage of operation and carry off-take risk. ARETE project
was launched in January, 2014 and as on Dec 31, 2017 the company
has sold 4.06 lsf of area as compared to 3.98 lsf as on Jan. 31,
2017, out of a total saleable area of 8.65 lsf. The company has
sold only 0.06 lsf area during last 11 months ending Dec 31, 2017
on account of low demand due to slowdown in industry. GSR Drive has
been recently launched with about 0.73 lsf area sold till Dec-17
out of a total saleable area of 15.55 lsf. With slow sales
progress, the offtake risk of the projects remains high. Also, with
the current demand slowdown in the real estate market especially in
the Delhi and NCR region, the ability of the company to sell the
inventory as envisaged remains crucial for timely completion of
this project.
* Inherent risk associated with the real estate industry - Industry
Risk: The real estate sector is moving towards a more rational
regime where developers now focus on project execution and
delivery. 2018 is expected to gradually move towards better home
sales and see a spurt in launches in some locations. The year will
also see the sector moving from an investor-driven to an end-user
driven cycle. As per market sentiments the India Real Estate Market
may not witness a sharp reversal in 2018 but its long term the
growth prospects remain strong. As the sector continues to remain
troubled with issues of high unsold inventory, delayed delivery of
projects and financial stress on developers, the broader market
opinion is that while the long term story for residential market
remains strong; the short term is expected to be sluggish.
Key Rating Strength
* Experienced promoters and proven track record of project
execution: ILDPL was promoted by Mr. Alimuddin Rafi Ahmed with
experience of more than 12 years in the real estate industry. The
company belongs to ILD group involved in real estate business.
Other companies of the group are ALM Infotech City Private Limited
and ILD Millenium Private Limited. In the past the group have
completed and delivered two real estate projects including an
Industrial Township in Manesar and a commercial project in Gurgaon
with the total saleable area of 83lsf. The group is currently
executing four residential group housing project in its group
companies: ILD Grand, Gurgaon (ALM Infotech City Pvt. Ltd.), ILD
Spire Greens, Gurgaon (ILD Millennium Pvt. Ltd.), Arete, Gurgaon
and GSR Drive at Sector 36, Gurgaon (ILD).
Incorporated in July 2006, International Land Developers Pvt. Ltd.
(ILDPL) is a Gurgaon based real estate developer promoted by Mr.
Alimuddin Rafi Ahmed. The company is a part of ILD group. Other
companies of the group are ALM Infotech City Private Limited
(Withdrawn in Mar-16 at CARE BB) and ILD Millenium Private Limited
(Withdrawn in Mar-16 at CARE BB) are also engaged in real estate
development. In the past, the group has delivered two real estate
projects including an industrial township in Manesar (58 lsf) and
ILD Trade Centre, Gurgaon (25 lsf). ILDPL is currently developing
two group housing project located at Sector 33, Gurgaon and Sector
36, Gurgaon.
J.M. INTERNATIONAL: Ind-Ra Affirms B Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed J.M.
International's (JMI) Long-Term Issuer Rating at 'IND B'. The
Outlook is Stable.
The instrument-wise rating action is:
-- INR250 mil. Fund-based working capital limit affirmed with IND
B/Stable/IND A4 rating.
KEY RATING DRIVERS
The affirmation reflects JMI's continued small scale of operations.
The revenue increased marginally to INR333.79 million in FY21
(FY20: INR 331.58 million) owing to the one-time trading of dry
fruits in addition to its core business of trading cloves. Ind-Ra
expects the revenue to remain at similar levels in FY22, due to a
likely increase in sales volumes and realizations. FY21 financials
are provisional in nature.
The ratings remain constrained by JMI's modest EBITDA margin with a
return on capital employed of 4.20% in FY21 (FY20: 3.30%). The
margin expanded to 3.03% in FY21 (FY20: 1.77%) due to bulk imports
to leverage on favourable international market prices. Ind-Ra
expects the EBITDA margin to be remain at a similar level in FY22
as the management aims at the business to remain profitable in the
long term by undertaking several cost-reduction measures.
The ratings are further constrained by JMI's modest credit metrics.
The interest coverage (operating EBITDA/gross interest expense)
deteriorated to 1.27x in FY21 (FY:20 1.57x), due to an increase in
interest cost on account of availing of guaranteed emergency credit
line facility, higher use of buyer's credit facility for fresh
funding and interest payout on unsecured loans. However, the net
financial leverage (total adjusted net debt/operating EBITDAR)
improved to 21.54x in FY21 (FY20: 34.36x) due to an increase in the
absolute EBITDA to INR10.11 million in FY21 (FY20: INR5.87
million). Ind-Ra expects the credit metrics to remain at the same
level in FY22 owing to the firm's continued reliance on the buyer's
credit facility for meeting its working capital requirements.
Liquidity Indicator – Stretched: The firm's average utilization
of the fund-based and the non-fund-based limits was 17% and 39%,
respectively, during the 12 months ended March 2021. The cash flow
from operations remained negative at INR14.84 million in FY21
(FY20: negative INR8.79 million) owing to unfavorable changes in
working capital. The working capital cycle remained elongated at
209 days in FY21 (FY20: 194 days, FY19: 110 days) on account of an
increase in the inventory holding period to 187 days (168 days, 90
days) due to the bulk import of raw material. It had low cash and
cash equivalents of INR0.10 million i FY21 (FY20: INR0.22 million).
JMI did not avail the Reserve Bank of India-prescribed moratorium
under the COVID-19 relief package scheme. However, the firm did
avail a GECL limit of INR32 million in September 2020, which was
backed by one year of moratorium. JMI repaid the GECL by FYE21
without utilizing the moratorium, as it had availed the buyer's
credit facility at a lower interest rate. The firm does not have
any capital market exposure and relies on banks and financial
institutions to meet its funding requirements.
However, the ratings continue to be supported by the promoter's
experience of over three decades in the spice industry, leading to
longstanding relationships with its customers and suppliers.
RATING SENSITIVITIES
Negative: Any substantial decline in the revenue, leading to any
deterioration in the credit metrics, will be negative for the
ratings.
Positive: Any improvement in the revenue, along with the interest
coverage increasing above 1.7x on a sustained basis, will be
positive for the ratings.
COMPANY PROFILE
Established in 1985, Delhi-based JMI is a proprietary firm engaged
in the trading of Indian and imported spices, especially cloves in
the domestic market.
JAGADGURU COOPERATIVE: Ind-Ra Keeps BB Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shri Jagadguru
Cooperative Hospital Society Ltd.'s term loan rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR65 mil. Term loan maintained in non-cooperating category
with IND BB (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 29, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Shri Jagadguru Co-operative Hospital Society runs a 150-bed
allopathy hospital and a 220-bed ayurvedic hospital, and manages an
ayurvedic medical college, a nursing college and a nursing school.
In addition, it runs a naturopathy center. Its hospitals and
colleges are spread across 68 acres in the Ghataprabha town in the
Belgavi district, Karnataka.
JEYASAKTHI SAW: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sree
Jeyasakthi Saw Mill continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 6.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 5, 2020, placed the
rating(s) of Sree Jeyasakthi Saw Mill under the 'issuer
noncooperating' category as Sree Jeyasakthi Saw Mill had failed to
provide information for monitoring of the rating. Sree Jeyasakthi
Saw Mill continues to be non-cooperative despite repeated requests
for submission of information through e-mails, phone calls and an
emails dated March 21, 2021, April 5, 2021,& April 10, 2021. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which, however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The ratings takes into account of non-availability of requisite
information due to non-cooperation by Sree Jeyasakthi Saw Mill with
CARE's effort to undertake a review of the outstanding ratings as
CARE views information availability risk as key factor in its
assessment of credit risk profile.
Sree Jeyasakthi Saw Mill (SJSM) was established in 2002 as a
partnership firm by Mr. P Sanjeev kumar (Managing Partner) and S.
Meena (Partner). The firm is engaged in trading (wholesale and
retail) of wood and teak products from past 30 years. The firm
imports majority of the timber wood from the suppliers located in
the international markets like Burma, South Africa, Australia, and
Malaysia. The firm sells the products to customers located in
Kerala, Tamil Nadu, and Pondicherry and Telangana.
LIFE SHINE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Life Shine
Medical Services Private Limited's Long-Term Issuer Rating of 'IND
BB (ISSUER NOT COOPERATING)'.
The instrument-wise rating action is:
-- The 'IND BB (ISSUER NOT COOPERATING)' on the INR110.6 mil.
Term loan due on September 2020 is withdrawn.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no dues certificate from the lenders. Ind-Ra will no
longer provide analytical or rating coverage for Life Shine.
COMPANY PROFILE
Life Shine was set up in 2010 by Jayaram Reddy Aileni, Laxmi
Aileni, Sandhya Aileni, Viswanatha Veluri, and Chandra Sekhara
Reddy. The company operates a 300-bed hospital - Tulasi Hospitals -
in Hyderabad, Telangana.
MAHAJYOTI FIBERS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mahajyoti
Fibers Private Limited (MFPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.45 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 15, 2020, placed the
rating(s) of MFPL under the 'issuer non-cooperating' category as
MFPL had failed to provide information for monitoring of the rating
and had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. MFPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 1, 2021, May 11, 2021, and May 21, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which, however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Sendhwa (Madhya Pradesh) based, Mahajyoti Fibers Private Limited
(MFPL, CIN: U17111MH2008PTC187544) was promoted by Agrawal family
in 2008. MFPL is currently managed by Mr. Sanjay Agrawal, Mr.
Mukeshkumar Agrawal, Mr. Sachin Joshi and Mr. Dwarkaprasad Agrawal.
The company is engaged in trading of ginned cotton and cotton seeds
and also produces cotton bales by ginning and pressing of raw
cotton. The ginning facility is located at Prakasha (Maharashtra)
with an installed capacity of 31,500 Metric tonnes per annum (MTPA)
as of March 31, 2016.
MAHAVEERJI POLYFAB: CARE Lowers Rating on INR11.02cr Loan to B-
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Mahaveerji Polyfab Private Limited (SMPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.02 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 2, 2020 placed the
ratings of SMPPL under the 'issuer non-cooperating' category as
SMPPL had failed to provide information for monitoring of the
rating as agreed to in its Rating Agreement. SMPPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
dated April 18, 2021, April 28, 2021, May 8, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further banker could
not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised by taking into account non-availability
of information and no due-diligence conducted due to
non-cooperation by SMPPL with CARE'S efforts to undertake a review
of the rating outstanding. CARE views information availability risk
as a key factor in its assessment of credit risk. Further, the
ratings continue to remain constrained owing to decline in
profitability margins and cash accruals, modest & fluctuating scale
of operations, leveraged capital structure, and Profitability
vulnerable to volatile raw material prices with highly competitive
and fragmented industry. The ratings, however, continue to take
comfort from experienced management with continuous infusion of
funds in the company.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Decline in profitability margins: The profitability margins as
marked by PBILDT margin at 7.17% respectively for FY20 which have
been declined from 8.48% respectively from FY19.
* Modest & fluctuating scale of operations: The scale of operations
of the company stood modest with total operating income remained
fluctuating in the range of INR32.29 crore to INR26.01 crore during
FY18-FY20. Further the tangible net worth of the company stood low
at INR4.03 crore as on March 31, 2020.
* Leveraged capital structure: The capital structure of the company
stood leveraged as marked by overall gearing ratio of 2.19x as on
March 31, 2020 as against 2.91x as on March 31, 2019 owing to
repayment of term loans and unsecured loans.
* Profitability vulnerable to volatile raw material prices with
highly competitive and fragmented industry: The primary raw
material required for manufacturing of woven sack bags is PP
granules, which is a crude oil derivative. Considering the
volatility associated with raw material prices and timing
difference arising in procurement of raw material and realization
of sales, exposes the firm's operating margins to fluctuations.
Further, the industry is dominated by players operating in the
small and medium-scale sector, resulting in high fragmentation and
intense competition.
Key Rating Strengths
* Experienced management with continuous infusion of funds in the
company: Mr. Mohit Jain, Mr. Krishna Murari Jain, Mr. Arpit
Agarwal, Mr. Bhart Tibrewal, Mr. Prateek Bhartiya and Mrs. Chandni
Tibrewalare are the directors of the company and are actively
involved in the overall management strategy and policymaking
affairs of the company. Further, the promoters of the company are
continuously infusing funds in the company to
support its working capital requirement.
Kanpur (Uttar Pradesh)-based Shree Mahaveerji Polyfab Private
Limited (SMPPL) was established in 2012 by Mr Mohit Jain, Mr
Krishna Murari Jain, Mr Arpit Agarwal, Mr Bhart Tibrewal, Mr
Prateek Bhartiya, Mrs Chandni Tibrewaland SMPPL commenced its
operations from FY14. SMPPL is engaged in business of manufacturing
of PP fabrics as well as PP fabric bag. SMPPL procures raw material
majorly from Reliance Industries Limited, Hindustan Petroleum
Corporation Limited and Indian Oil Corporation Limited. It sells
its products majorly to the players engaged in food industries.
MEWAR UNIVERSITY: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Mewar
University (MU) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.72 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 8, 2020, placed the
rating(s) of MU under the 'issuer non-cooperating' category as MU
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. MU continues to be
non-cooperative despite repeated requests for submission of
information through e-mails dated March 24, 2021, April 3, 2021,
April 13, 2021. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Mewar University (MU) is an autonomous body promulgated by the
Government of Rajasthan through an Act passed by Rajasthan Assembly
in 2009 and is also approved by the UGC with the right to confer
degrees. MU was set up with an objective of providing higher and
technical education to the people of Mewar region of Rajasthan in
particular and India in general. MU is promoted by the Mewar
Education Society (MES), Chittorgarh and is controlled by a Board
of Management constituted by MES. The Board of Management is headed
by the Chancellor Mr. Ashok Kumar Gadiya. MU has envisaged offering
various Post-graduation, Graduation, Diploma and Certification
courses across faculties like Engineering, Management, Computer
Science, Journalism & Mass Communication, Law, Education, Arts,
Visual & Performing Arts, Fashion Designing, etc. Further, Mewar
College of Engineering (MCE), Gangrar and Mewar College of Teachers
Training (MCTT) are running under MU.
NAKKHEERAN PUBLICATIONS: CARE Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Nakkheeran
Publications (NP) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 12.95 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 30, 2020, placed the
rating(s) of NP under the 'issuer non-cooperating' category as NP
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. NP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 16, 2021, May 26, 2021 and June 5, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Chennai based, Nakkheeran Publications (NP) was incorporated in the
year 1988 by Mr. Nakkheeran Gopal. The firm is engaged in printing
of magazines and journals.
OPTIONS LAWNS: CARE Lowers Rating on INR6.72cr Loan to D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Options Lawns Private Limited (OLPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank
Facilities 6.72 CARE D Rating removed from
ISSUER NOT COOPERATING category
and Revised from CARE B;
Stable
Details of facilities
In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the ratings of
OLPL and in line with the extant SEBI guidelines, CARE had revised
the ratings of bank facilities of the company to 'CARE B; Stable'
from 'CARE B+; Stable'. However, the company has now submitted the
requisite information to CARE. CARE has carried out a full review
of the ratings and the ratings stand at 'CARE D'.
Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of OLPL
is primarily due to irregularity in servicing its debt obligations
owing to poor liquidity position.
Key Rating Sensitivities:
* Positive Factors: Establishing a clear debt servicing track
record for consecutive three months.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Ongoing delays in debt Servicing: OLPL has been irregular in
servicing its debt obligation due to weak liquidity position of the
company. Delays of more than 30 days have been observed in
servicing the term loan and cash credit obligations. The entity has
reported meager Total Operating Income (TOI) resulting into
operational losses during FY20 and FY19.
Liquidity: Poor
The liquidity position during FY20 remained poor marked by cash
loss of INR1.10 crore, owing which the company was not able to
service the debt obligations. Further, the working capital facility
has remained overdrawn for more than 30 days as on June 25, 2021.
The company has low cash and bank balance of INR0.04 crore as on
March 31, 2020. The company has also extended high advances of
INR1.03 crore which are majorly advances to suppliers and has
outstanding creditors of INR0.42 crore as on March 31, 2020. The
operating cycle remained negative at 299 days in FY20 owing to high
average creditor period days.
Jabalpur- based (Madhya Pradesh), Options Lawns Private Limited
(OLPL) was incorporated on April 1, 2016 by Mr Rajneesh Verma. The
company is held by Six Sigma Ventures Limited (erstwhile 'Riqueza
Capital Investments Limited', a Mauritius-based company) along with
Mr Rajneesh Verma and Ms. Sakshi Verma. OLPL was incorporated with
a purpose to operate a resort in an area of 14000 sq. ft. on
Bedhaghat Road, Jabalpur with 52 rooms, 3 banquet halls, 1 garden
restaurant, pub, camping site, spa, wellness center etc.
POPULAR AUTO: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Popular
Auto Distributors (PAD) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 7, 2020, placed the
rating(s) of PAD under the 'issuer noncooperating' category as
Popular Auto Distributors had failed to provide information for
monitoring of the rating. Popular Auto Distributors continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated April 2,
2021, April 7, 2021 & April 12, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Madurai-based Popular Auto Distributors (PAD) is a partnership firm
established in 2016 by its partners Mr Deepak Singh Kohli, Mr
Gobind Singh Kohli, Mr P Rajesh Kumar and Mr Assish Kumar Jain. It
is a part of Chennai-based Popular Group which consists of Popular
Scooters Private Limited, Popular Motor Cycle Company, and Popular
Honda Parts. Currently, the firm is the authorized parts stockiest
of TVS Motors Limited in Madurai, Dindugal, Theni, Virudhunagar,
Sivagangai, and Ramanathapuram. The group company, Popular Scooters
Private Limited has been an authorized dealer for sale of
two-wheeler spare parts and lubricants of TVS Motors Limited for
over 17 years. From September 2017, the firm has also been the
authorized dealer for Ceat Tyres Limited in Kanyakumari and
Tirunelveli. Mr. Rajesh Kumar manages day to day operations of the
firm.
PR.M. MODERN: CARE Lowers Rating on INR7.00cr Long Term Loan to B-
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
PR.M. Modern Rice Mill (PRM), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 22, 2020, placed the
rating(s) of PRM under the 'issuer non-cooperating' category as PRM
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. PRM continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated April 07,
2021, April 17, 2021, April 27, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
The rating assigned to the bank facilities of PRM have been revised
on account of non-availability of requisite information.
PR.M. Modern Rice Mill (PRM) was established and promoted by Mr.
Mururgan as a proprietorship firm in the year 1990 for rice milling
with the installed capacity of 30 MT per day. Paddy is the main raw
material which is procured from the farmers located in and around
Tamil Nadu & Karnataka. The firm sells the final product to
domestically (Tamilnadu) & Kerala. The registered office is located
in Karaikudi, Tamilnadu.
PRERNA STRIPS: CARE Keeps C Debt Rating in Not Cooperating
----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Prerna
Strips (PST) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.65 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated April 17, 2020, placed the
ratings of PST under the 'issuer noncooperating' category as PST
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. PST continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and emails dated June 16,
2021, June 14, 2021 and June 9, 2021, etc. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which, however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
PST was established as a proprietorship firm in 2011. PST is
engaged in the manufacturing of steel products at its manufacturing
facility located in Derabassi, Punjab. The product line of the firm
mainly includes strips and pipes which find usage in the auto
mobile and furniture industry. The process of the firm is ISO
9001:2001 certified for quality and manufacturing process.
RAM AABHOSHAN: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Ram
Aabhoshan (RA) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 14, 2020 placed the
ratings of RA under the 'issuer noncooperating' category as RA had
failed to provide information for monitoring of the rating for the
rating exercise as agreed to in its Rating Agreement. RA continues
to be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and emails dated June 21,
2021, April 19, 2021 and April 15, 2021. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
best available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. Further, the banker could
not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been reaffirmed by taking into account
non-availability of information and no due-diligence conducted due
to non-cooperation by Ram Aabhoshan with CARE'S efforts to
undertake a review of the rating outstanding. CARE views
information availability risk as a key factor in its assessment of
credit risk.
Agra (Uttar Pradesh) based Ram Aabhoshan (RAB) is a proprietorship
firm established in May, 2009 by Mr. Avadh Bihari. RAB is engaged
into manufacturing and trading of gold and silver jewellery.
Initially, all the operations of business were held under the firm
name Mukund Jewelers, however the firm was renamed as Ram Aabhoshan
in the year 2009.
RANA STEELS: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Rana Steels
India Limited (RSIL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.24 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Long Term/ 4.00 CARE D; ISSUER NOT COOPERATING;
Short Term Rating continues to remain
Bank Facilities under ISSUER NOT COOPERATING
Category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 4, 2020 placed the
ratings of RSIL under the 'issuer non-cooperating' category as RSIL
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. RSIL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated June 21, 2021, May 10, 2021 and April 30, 2021. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. Further, the
banker could not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been reaffirmed by taking into account
non-availability of information and no due-diligence conducted due
to non-cooperation by Rana Steels India Limited with CARE'S efforts
to undertake a review of the rating outstanding. CARE views
information availability risk as a key factor in its assessment of
credit risk.
Muzaffarnagar (Uttar Pradesh) based Rana Steels India Limited
(RSIL), was initially incorporated in 1992 under the name K. K.
Steels Limited by Mr Kadir Rana, as a closely held company. In
2009, the company was renamed to its current name. The company is
currently being managed by Mr. Shah Mohammad Rana, Mr. Aslam Tyagi
and Mr. Sahajad as directors of the company. The company is engaged
in manufacturing of Mild Steel (M.S.) angles, T-Iron, channels,
bars and rounds. The unit has an installed capacity to manufacture
of 45,000 Tonnes Per Annum (TPA) of steel structures and 28,000 TPA
of ingots as on March 31, 2017. The company procures the key raw
materials i.e iron scrap, sponge iron and billets directly from
units located in Orissa and Jharkhand. RSIL sells its products
under the brand name of "RANA", which is a regionally known brand.
The Company sells its products in Delhi, UP through a network of
distributors and dealers. RSPL is a part of "Rana Group" which has
diversified business such as rolling mills, induction furnaces,
paper mill, sponge iron plant and refractory plant.
SANGAM HANDICRAFT: CARE Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sangam
Handicraft Private Limited (SHPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.80 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 4, 2020, placed the
rating of SHPL under the 'issuer non-cooperating' category as SHPL
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. SHPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated March 30, 2021, April 4, 2021 and April 9, 2021. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the best available information which, however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
Jaipur (Rajasthan) based Sangam Handicraft Private Limited (SHPL)
was established in 1997 as a private limited company by Mr.
Shubhash Gupta and his family members. SHPL is engaged in
manufacturing of silver and gold coins, biscuits shields, Trophy's,
Utensils etc. It majorly sells to the government department and
banks, direct customers and wholesalers as well. The company has an
installed capacity to manufacture 86 kgs per day (KGPD) of silver
and gold articles.
SENDRAYAPERUMAL: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri
Sendrayaperumal Transports (SST) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 4.50 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 24, 2020, placed the
rating(s) of SST under the 'issuer non-cooperating' category as SST
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SST continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
May 10, 2021, May 20, 2021, and May 30, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which, however, in CARE's opinion
is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).
SST was incorporated in September 2011 with an objective to carry
out Full Truck Load (FTL) services as a partnership firm by Mr. P.
Maruthavel and his brother Mr. P. Jayavel with their family
members. SST currently owns 97 trucks being operated in the state
of Tamil Nadu, Kerala, Haryana, Punjab, Delhi, Uttar Pradesh,
Rajasthan, Jammu and Kashmir catering to industries such as paper,
textile (fabrics & yarn), steel, cashew, spices, household items,
automobile items and any other parcel services. SST also operates
trucks on contract basis to companies with a time period of 3-12
months which are normally renewed after the contract period. SST's
group entity SSPT Logistics (SSL), established in January 2013, is
also managed by the same family and is engaged into the similar
nature of business. Therefore, the financials of both the firm are
combined for the analysis purpose.
SHARWIN COTTEX: CARE Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sharwin
Cottex (SC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.50 CARE D; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 31, 2021, placed the
rating(s) of SC under the 'issuer noncooperating' category as SC
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. SC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 4, 2021, April 14, 2021, April 24, 2021 and June 24, 2021. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which, however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s). Detailed description of the key rating drivers
The rating assigned to the bank facilities of SC have been revised
on account of ongoing delays in debt servicing recognized from
publicly available information.
Ahmedabad (Gujarat)-based, SRC was formed in February 2016 by Mr.
Sukhdev Prajapati, Mrs. Manisha Purohit and Mr. Soham Purohit. The
firm had been setting up a greenfield plant for cotton ginning and
pressing near Mehsana district in the area of 19425 square meters,
with 36 double roller jumbo gin machines of 54" size for ginning
and 5 cotton stripper machines for pressing. Total installed
capacity for ginning was proposed to be 45619.20 MTPA for raw
cotton. For oil extraction process, 12 extruders of 33*6" were
expected to be installed with a capacity will be of 24192 MTPA of
cotton seeds.
SHITLA PAPERS: CARE Lowers Rating on INR15cr LT Loan to B
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shitla Papers Private Limited (SPPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 15.00 CARE B; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE B+; Stable
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 28, 2020 placed the
ratings of SPPL under the 'issuer non-cooperating' category as SPPL
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. SPPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 13, 2021, April 23, 2021, May 3, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further banker could
not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been revised by taking into account non-availability
of information and no due-diligence conducted due to
non-cooperation by SPPL with CARE'S efforts to undertake a review
of the rating outstanding. CARE views information availability risk
as a key factor in its assessment of credit risk. Further, the
ratings continue to remain constrained owing to modest scale of
operations, below average financial risk profile and highly
competitive paper industry. The ratings, however, continue to take
comfort from experienced promoters and moderate operating cycle.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Modest scale of operations: The scale of operations has stood
modest marked by a total operating income and gross cash accruals
of INR 174.67 crore and INR1.28 crore respectively during FY20 (FY
refers to the period April 1 to March 31). Furthermore, the
company's net worth base was relatively modest limiting the
company's financial flexibility in times of stress and deprives it
from scale benefits.
* Below average financial risk profile: Profitability margins
continue to remain low owing to the trading nature of business
which is mainly driven by sales volume and higher cost of traded
goods sold. Higher interest and depreciation cost continue to
restrict PAT margins that stood below unity in FY20. As on March
31, 2020, the capital structure of SPPL stood leveraged marked by
overall gearing of 1.75x. The coverage indicators continue to
remain weak owing to low profitability.
* Highly competitive paper industry: The major income of SPPL comes
from trading of paper packaging products where the company procures
these products from manufacturers and markets them to various
retailers with limited value addition to the product. Paper
packaging trading business is characterized by high volumes and low
margins. The paper packaging trading sector is highly competitive,
comprising a large number a large sized player in the organized
segment as a result of low entry barriers.
Key Rating Strengths
* Experienced promoters: SPPL is currently being managed by Mr.
Sanjeev Kumar Mittal and Mr. Ayush Kumar Mittal (son of Mr. Sanjeev
Kumar Mittal). Mr. Sanjeev Kumar Mittla is a Chartered Accountant
and have an experience of around two decades in the paper products
through his association with this company. Mr. Ayush Kumar Mittal
is an MBA by qualification and has an experience of 6 years through
his association with the company. They both look after the overall
operations of the company.
* Moderate operating cycle: Being present in a highly competitive
business and having low bargaining power with its customers, the
average collection period continues to remain around 86 days during
FY20. SPPL maintains inventory of finished goods of around 1 days
during FY20 and average payable period of the company stood around
45 days.
Shitla Papers Private Limited (SPPL) was incorporated in 1997 by
Mr. Sanjeev Kumar Mittal and Mr. Vinay Kumar Mittal by the name
"Shitla Paper Trading Company Private Limited". Later on, in April
19, 2012, its name was changed to "Shitla Papers Private Limited".
With the change of name, the company also changed its business
model from manufacturing to trading of paper packaging products.
The company is engaged in the trading of packaging paper such as
Kraft Paper, Paperboard, Duplex Board and stitching wires.
SHIV GRAMOUDYOG: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shiv
Gramoudyog Sansthan (SGS) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.00 CARE B-; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 20, 2020 placed the
ratings of SGS under the 'issuer non-cooperating' category as SGS
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. SGS continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 5, 2021, April 15, 2021 and April 25, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further banker could
not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating has been reaffirmed by taking into account
non-availability of information and no due-diligence conducted due
to non-cooperation by SGS with CARE'S efforts to undertake a review
of the rating outstanding. CARE views information availability risk
as a key factor in its assessment of credit risk.
Uttar Pradesh based Shiv Gramoudyog Sansthan (SGS) is a cooperative
society established in 1987 and registered under the Societies
Registration Act. It was founded by Mr. Rajesh Kumar Rohra and his
family members. The society is engaged in the manufacturing of
detergent powder, detergent cake & laundry soap (oil based) and all
the products manufactured are sold under the brand name "Moar" or
"More". SGS has two manufacturing units located in Chaubepur Kalan,
Kanpur. SGS sells its products to PAN India basis through a network
of stockist and dealers on commission basis. The raw materials
required are dolomite powder, calcite powder, soda ash, acid
slurry, non-edible oil etc. which are procured from various
suppliers namely Tata Chemicals Limited, Gujarat Heavy Chemicals
Limited, Gesu Chemicals Limited, etc.
SIDDHARTH AGRO: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Siddharth
Agro Industries (SAI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.45 CARE C; ISSUER NOT COOPERATING;
Facilities Rating continues to remain
under ISSUER NOT COOPERATING
category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated June 12, 2020, placed the
rating of SAI under the 'issuer non-cooperating' category as SAI
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. SAI
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated April 28, 2021, May 8, 2021 and May 18, 2021.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which,
however, in CARE's opinion is not sufficient to arrive at a fair
rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
Valsad-based (Gujarat) SAI was established in October 2009 as a
partnership firm by six partners to provide cold storage facilities
on a rental basis as well as for trading purposes for products like
fruits, dry fruits, spices, vegetables, milk products etc. However,
the construction of the plant began from 2014 and was completed in
July 2016 after a delay of three months from envisaged completion
date. The cold storage has storage capacity of 6,000 MT.
STERLING GENERATORS: Ind-Ra Withdraws BB+ LT Issuer Rating
----------------------------------------------------------
India Ratings and Research Private Limited (Ind-Ra) has withdrawn
Sterling Generators Private Limited's (SGPL) Long-Term Issuer
Rating of 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- The 'IND BB+' rating on the INR300 mil. Cash credit is
withdrawn;
-- The 'IND BB+' rating on the INR300 mil. Working capital demand
loan is withdrawn;
-- The 'IND BB+' rating on the INR107.4 mil. Short-term loan due
on FY22 is withdrawn;
-- The 'IND BB+' rating on the INR250 mil. Vendor financing
facility* is withdrawn; and
-- The 'IND BB+' rating on the INR655 mil. Non-fund-based
facilities is withdrawn.
*Ind-Ra has withdrawn the ratings as the agency has received a no
dues certificate from the lender.
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as SGPL has
ceased to exist as a legal entity post its merger with Sterling
Generators Private Limited (formerly known as Sterling and Wilson
Powergen Private Limited (SWPPL); 'IND BBB-'/Stable)), as per the
National Company Law Tribunal order dated June 8, 2020. The merger
is effective April 1, 2019. Ind-Ra will no longer provide
analytical and rating coverage for the company.
COMPANY PROFILE
Incorporated in 1995, SGPL was engaged in the manufacturing and
distribution of diesel generators sets. SGPL and SWPPL had filed
for amalgamation in FY19; the National Company Law Tribunal granted
approval for the same in June 2020. With the subsequent merger,
SWPPL's name was changed to Sterling Generators Private Limited.
TOKAI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Tokai
Engineering Private Limited (TEPL) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 1.00 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 5, 2020 placed the
ratings of TEPL under the 'issuer non-cooperating' category as TEPL
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. TEPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 21, 2021, March 31, 2021, April 10, 2021. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further banker could
not be contacted.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.
The rating takes into account non-availability of information and
no due-diligence conducted due to non-cooperation by TEPL with
CARE'S efforts to undertake a review of the rating outstanding.
CARE views information availability risk as a key factor in its
assessment of credit risk. The ratings assigned to the bank
facilities of TEPL remained constrained by its small scale of
operations coupled with operational losses and leveraged capital
structure. The rating is further constrained by working capital
intensive nature of operations coupled with stretched liquidity
position and competitive nature of industry. The rating, however,
draws comfort from experienced promoters.
Detailed description of the key rating drivers
Key Rating Weaknesses
* Small scale of operations coupled with operational losses: The
scale of operations of TEPL stood small marked by total operating
income (TOI) of INR0.15 crore for FY20 (refers to the period from
April 1 to March 31). The small scale limits the company's
financial flexibility in times of stress and deprives it of scale
benefits. Further, the company incurred operational losses of
INR0.11 crore for FY20.
* Leveraged capital structure: The capital structure of the company
remained leveraged as on past three balance sheet date ended March
31, 2020 owing to high reliance on external borrowings to meet
working capital requirements coupled with low net worth base.
* Working capital intensive nature of operations coupled with
stretched liquidity position: The operations of the company stood
working capital intensive marked by high operating cycle on account
of prolonged inventory period in form of raw material for smooth
functioning of production process and work in progress inventory.
The products manufactured by company are customized as per
customer's specification which also requires design approvals from
the customers. Further, the company requires clearance from its
customers prior to delivery. Entailing these resulted into average
inventory of 144 days for FY20. The same resulted into average
collection period of 5971 days for FY20. Further, low quick ratio
as on the last three balance sheet dates reflects working capital
intensive nature of operations.
* Competitive nature of industry: TEPL faces direct competition
from various organized players in the market due to low entry
barriers and lower capital requirements. There are number of small
and regional players and catering to the same market which can
exert pressure on its margins.
Key Rating Strengths
* Experienced Promoters: TEPL is being managed by Mr Rajesh Khanna
and his wife Mrs. Shilu Khanna. Both the directors are post
graduates by qualification and have more than one decade of
experience in manufacturing of jigs and fixtures through their
association with TEPL. Prior to TEPL, Mr. Rajesh Khanna was
associated with manufacturing companies for 20 years.
Gurgaon (Haryana) based TEPL was incorporated on July 9, 2006. The
company is currently being managed by Mr. Rajesh Khanna and Mrs.
Shilu Khanna. TEPL is engaged in manufacturing of jigs and
fixtures, testing machines, and special purpose machines. It mainly
caters to automobile companies and the tenor of the orders
undertaken by the company varies up to 4 months. The company has
combined installed capacity to manufacture 800 units per annum as
of March 31, 2017 from its manufacturing facility is located in
Manesar, Gurgaon (Haryana). The major raw materials of the company
are MS Steel, cylinders, pneumatic items like compressor etc which
it procures from domestic manufacturers and wholesalers.
V. PONNUSAMY: CARE Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CARE Ratings said the rating for the bank facilities of V.
Ponnusamy Educational and Charitable Trust (VPECT) continues to
remain in the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 20.00 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 13, 2020, placed the
rating(s) of VPECT under the 'issuer non-cooperating' category as
VPECT had failed to provide information for monitoring of the
rating and had not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. VPECT continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated March 29,
2021, April 8, 2021, April 18, 2021. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.
V. Ponnusamy Educational and Charitable Trust (VPECT) is a
Namakkal-based public charitable trust established in the year 1999
by Dr. P. Selvaraj & his family members. Commencing with a higher
secondary school in 1999, the trust expanded to establish Arts and
Science college, Teacher training institutes, Physical Education
college, and an Engineering College in the year 2006-07. VPECT
started its operation through running Schools namely Selvam Higher
Secondary School (SHSS) (affiliated to Tamil Nadu Board of Higher
Secondary Education (TNBHSE)) commenced from Academic Year (AY)
1999 -20 and Selvam Matric Higher Secondary School (SMHSC)
(affiliated to Tamil Nadu Board of Higher Secondary Education
(TNBHSE)) commenced from Academic year (AY) 2001 -02 and are
located in the same campus at Namakkal, Tamil Nadu.
===============
M A L A Y S I A
===============
CHINA AUTOMOBILE: Takes Another Attempt at PN17 Exit
----------------------------------------------------
theedgemarkets.com reports that China Automobile Parts Holdings Bhd
(CAP) is making another attempt at regularising its Practice Note
17 (PN17) condition by inking a memorandum of understanding (MOU)
with several vendors for the acquisition of Singapore-based Tenda
Construction Equipment Pte Ltd and Tenda Equipment & Services Pte
Ltd.
In a filing with the bourse, the company said it had entered into
the MOU with Lee Seng Guan, Tan Gim Yiam, Lee Hay Chiang and Lee
Peng Quan to negotiate on a definitive share sale agreement for the
acquisition of the entire equity interest in the two companies,
theedgemarkets.com relays.
According to theedgemarkets.com, the target companies are involved
in the provision of repair and maintenance of construction and
civil engineering machinery and equipment, as well as the
provision, renting and sale of the machinery and equipment.
theedgemarkets.com relates that CAP said the proposed acquisition
involves the incorporation of a new holding company (Newco), with
target companies to be acquired via the issuance of Newco's shares.
The exercise also includes a proposed exchange of CAP shares with
Newco shares, proposed shares placement by Newco and a proposed
transfer of listing status from CAP to Newco.
"The MOU allows the parties to negotiate exclusively for at least a
period of six months, and sets out the understanding and intention
in respect of the Proposed Regularisation Plan. The proposed
acquisition is part of the company's regularisation plan to
regularise the company's PN17 condition and maintain its listing
status on the Main Market of Bursa Securities," said CAP.
This marks CAP's third attempt to regularise its financial
condition, after its plan to inject a property development business
fell through in May this year, following another failed bit to
acquire Local Assembly Sdn Bhd -- a subcontractor assembler of
electrical appliance and equipment, and plastic injection moulded
components manufacturer, the report relays.
China Automobile shares have been suspended from trading since June
8, 2017, after it failed to release its financial reports within
stipulated time, theedgemarkets.com states. To date, the company
still has not issued its outstanding 2017 and 2018 annual reports,
after it last reported a net loss of MYR77.12 million in its
financial year ended Dec. 31, 2016.
About China Automobile
China Automobile Parts Holdings Limited is a Malaysia-based
investment holding company. The Company, through its subsidiaries,
is principally engaged in the manufacturing of chassis components
used in automobiles for transporting goods. Its product portfolio
consists of five categories: wheel-hub bolts, wheel axles, steel
pins, u-bolts and torque-rod bushings. The Company's products are
supplied for aftermarket repair, maintenance and modification
segment, with an emphasis towards catering for replacement
components in heavy commercial vehicles. The Company's subsidiaries
include CAP-HK, an investment holding company, and FenSun, a
manufacturer, marketer and trader of automobile chassis
components.
China Automobile Parts Holdings Ltd slipped into Practice Note 17
(PN17) in January 2018 after its external auditor Messrs PFK
expressed an audit disclaimer of opinion in the company's latest
audited financial statements for financial year ended Dec. 31, 2015
(FY15) on undisclosed material liabilities.
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S I N G A P O R E
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GREENSHIP OFFSHORE: Creditors' Proofs of Debt Due on Aug. 5
-----------------------------------------------------------
Creditors of Greenship Offshore Manager Pte Ltd, which is in
voluntary liquidation, are required to file their proofs of debt by
Aug. 5, 2021, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 30, 2021.
The company's liquidator is:
Richard Yuen
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
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S R I L A N K A
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SRI LANKA: Asia's Highest Default Risk Spotlights Debt Worry
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Anusha Ondaatjie and Lilian Karunungan at Bloomberg News report
that Sri Lanka's risk premium for a default jumped, reflecting
concern that the pandemic is damaging the nation's ability to fill
its foreign-exchange coffers ahead of at least $2.5 billion in
dollar debt due in the next 12 months.
The nation's five-year credit default swaps rose to 1,553 basis
points on July 5, the highest since March 1, Bloomberg discloses. A
separate gauge of one-year default probability was at 27.9%, the
steepest in Asia, up from around 13% over six months ago, according
to a Bloomberg model where a reading above 1.5% signifies high risk
of failure to pay.
According to Bloomberg, the first test comes July 27, when the
South Asian nation must repay a $1 billion bond to investors.
President Gotabaya Rajapaksa's administration tightened capital
controls last week, limiting how much foreign currency can leave
the country, and speculation is growing that it may need to turn to
the International Monetary Fund for additional finances after
securing assistance from countries including China.
"These resources should enable Sri Lanka to meet its remaining debt
maturities through the rest of 2021," Bloomberg quotes Sagarika
Chandra, primary sovereign analyst for Sri Lanka at Fitch Ratings,
as saying. "Nevertheless, Sri Lanka's debt repayment challenges
will continue into the medium-term. Authorities have not yet
specified plans for meeting the country's foreign-currency
debt-servicing needs for 2022 and beyond."
Arrangements are already in place to settle the bonds due later
this month, the central bank said in a statement late on July 5,
Bloomberg discloses. Two more payments become due next year -- a
$500 million bond on Jan. 18, followed by $1 billion of debt
maturing July 25.
"The other bonds also we will pay," said Ajith Nivard Cabraal, Sri
Lanka's state minister for money and capital markets and a former
central bank governor, citing steps such as foreign- exchange
controls and swap agreements with China and Bangladesh.
Still, the uncertainty has prompted calls from some opposition
party members for Sri Lanka to seek help from the IMF, which
prematurely ended a $1.5 billion fund facility last year amid
change in financing needs due to the pandemic, says Bloomberg.
While the government and the central bank have said there's no need
to go back to the Washington-based organization, it isn't uncommon
for nations to renegotiate terms with the global lender of last
resort.
Sri Lanka's government is instead aiming to pursue its own policy
mix, including promoting import substitution and garnering support
from bilateral creditors including India and China, Bloomberg
relays. It secured a $1.5 billion currency swap line from Beijing
in March, and is expecting inflows including a $250 million swap
facility from Bangladesh's monetary authority, besides a $400
million facility from the Reserve Bank of India to bolster
reserves.
Foreign-exchange reserves stand at around $4 billion, excluding the
China swap agreement, according to the central bank. That's enough
to cover three months of imports.
Concerns about repayment are pushing the cost of Sri Lanka's dollar
debt higher, with the yield on the 5.75% 2023 bond surging 96 basis
points at Monday's close to 28.7%, according to data compiled by
Bloomberg. The yield on the 7.55% 2030 bond is near a three-month
high of 16.5%.
The sell-off may be overdone in short tenor debt, especially notes
maturing 2023 and 2024, according to Ek Pon Tay, senior portfolio
manager for emerging-market debt in Singapore at BNP Paribas Asset
Management, Bloomberg relays.
"The sovereign's near-term liquidity is not a concern," said Tay,
who expects an IMF package to materialize in coming months and
predicts Sri Lankan banks, which hold a third of the July 2021
bond, to plow that cash into other upcoming maturities. "In the
medium term, however, a renewed risk is a widening trade deficit
given rising oil prices."
Investors are also expressing concern about Sri Lanka's capital
controls, which are seen as a way for the economy to shun reliance
on foreign borrowing, and more importantly ward off interference
from the IMF, whose aid comes with strict conditions, according to
Bloomberg.
The capital controls "risk the emergence of parallel exchange
rates, disrupt access to imports and ultimately may well stall the
economy," said Tim Ash, a strategist at BlueBay Asset Management in
London. "They might all just make the end game more painful, rather
than actually resolving anything."
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T H A I L A N D
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THAILAND: Pandemic Pushes Millions of Small Thai Firms Into Crisis
------------------------------------------------------------------
Suttinee Yuvejwattana at Bloomberg News reports that many small and
medium-sized enterprises, the backbone of Thailand's economy, are
struggling with crushing debt loads that could force them out of
business as the latest wave of Covid infections dims the prospects
for an economic recovery.
"This round is much worse than last year, and millions of operators
are suffering," Bloomberg quotes Sangchai Theerakulwanich, chairman
of the Federation of Thai SME, who submitted a proposal last month
for the government to boost support to smaller businesses, as
saying. "If the situation is prolonged to the end of the year the
nation will be in crisis, with 80% of us going bankrupt."
According to Bloomberg, Thailand's SMEs, many of them concentrated
in the tourism industry, have been hit especially hard since the
country closed its borders last year, sending the economy to its
deepest contraction in more than two decades. The situation has
worsened with daily cases and deaths at record levels, leading the
government to impose fresh restrictions in late June.
Bloomberg says the Bank of Thailand has called repeatedly to boost
liquidity to SMEs, which are seen as crucial to any economic
recovery. So far, though, efforts to channel billions of dollars of
credit at low interest rates, institute loan-payment holidays and
offer credit guarantees have failed to breath life into the
sector.
"Credit growth to large corporates has been growing at over 10% a
year. Even for the household sector, credit growth has also been
growing at about 4% a year," central bank Governor Sethaput
Suthiwartnarueput said in March, Bloomberg relays. "The segment
where credit growth has been shrinking is the SMEs."
Thailand had 3.1 million small and medium-sized enterprises as of
last year, employing 12.7 million people, Bloomberg discloses
citing government data. The Thai Chamber of Commerce believes the
real number of SMEs could be as high as 5 million, since many
smaller operators don't register with the authorities. The sector
accounted for 35% of the nation's GDP at the end of first quarter,
according to the Office of Small and Medium Enterprises Promotion.
The central bank last month slashed its economic growth forecast
for this year to 1.8%, from 3% previously, amid weak domestic
consumption and repeated cuts to the tourism outlook, Bloomberg
recalls. Before the pandemic tourism contributed about 20% of the
country's gross domestic product -- about double the global average
-- but the bank now expects only 700,000 visitors to enter Thailand
this year, down from almost 40 million in 2019.
Patcharabhorn Salacheep, 34, who owns a body-painting business
catering to foreigners, shut her Pattaya and Phuket outlets last
year as the borders closed and tourism withered. After shedding 70%
of her staff, she still has three shops in Bangkok's Chatuchak
weekend market but earns only about 10% of what she used to.
She's looking to borrow money to sustain the business, but isn't
sure if she'll be approved for a bank loan.
"If I don't get it, my business may not survive this year,"
Bloomberg quotes Ms. Patcharabhorn as saying. "The government never
compensated us for what we're facing; what they offer are only debt
restructuring and loans. They're pushing us to create debts while
we barely earn income."
According to Bloomberg, the latest debt-relief measures for SMEs
include THB250 billion ($7.8 billion) in low-interest loans for
business restructuring and THB100 billion for an "asset warehouse,"
where struggling businesses can temporarily park their distressed
assets and get credit in return.
Since the measures took effect in late April, about 24% of the
total set aside for low-interest loans has been used, and less than
1% of the amount intended for the asset-warehouse plan, Bloomberg
states. Bank of Thailand Governor Setaphut said demand for the
asset warehouse is expected to pick up later.
According to the SME federation, bank loans to smaller businesses
total THB3.5 trillion, including THB240 billion that are
nonperforming, Bloomberg discloses. Another THB440 billion are
rated scarcely higher and may turn bad by the end of the year if
the economy doesn't improve, according to the federation.
Bloomberg adds that more state help may be soon coming for small
companies looking to upgrade their businesses. The government plans
to cover 50% to 80% of the cost of boosting productivity, business
management, marketing channels and overseas market development
among others starting from Oct. 1, according to an official
statement on July 5, Bloomberg relays.
"Liquidity is not a silver bullet to cure everything," the report
quotes Naris Sathapholdeja, an economist at Bangkok-based
TMBThanachart Bank Pcl, as saying. "Those who'll get soft loans are
those with business prospects and positive income. If you're still
in the debt-restructuring process with banks or can't generate
positive income, you're unlikely to get the loans. Banks need to be
careful under the current situation: No one wants to shoulder piles
of bad debts once the situation eases."
Bloomberg relates that Sethaput said not all SMEs will be approved
for the relief measures. Those that should are the ones that can
survive until the economy starts to recover.
"Not all businesses that get loans will survive," the governor
said. "If we lend what we have to all groups, it may make those
that should survive fail too. Everything has an opportunity cost."
*********
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.
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