/raid1/www/Hosts/bankrupt/TCRAP_Public/210719.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, July 19, 2021, Vol. 24, No. 137
Headlines
A U S T R A L I A
CCNA PTY: First Creditors' Meeting Set for July 26
KYJACT PTY: First Creditors' Meeting Set for July 27
METRO FINANCE 2021-1: Moody's Assigns B1 Rating to AUD5MM F Notes
SFG RELOCATIONS: CP Advices Customers Affected by Liquidation
SYDNEY AIRPORT: Rejects US$16.6BB Buyout Proposal from Infra Funds
TRITON BOND 2021-2: S&P Assigns Prelim. B(sf) Rating on Cl. F Notes
C H I N A
AGILE GROUP: Moody's Rates Proposed USD Unsec. Notes 'Ba3'
ANBANG INSURANCE: Remains Put Up for Sale With a US$5.2BB Valuation
INNER MONGOLIA BAOTOU: Fitch Puts BB+ Unsec. Rating on Watch Neg.
NANJING ZHIXING: Creditor Files Petition for Byton Bankruptcy
XINJIANG ZHONGTAI: Fitch Puts 'BB-' LT IDRs on Watch Negative
I N D I A
ALLFLEX PLASTICS: CARE Keeps C Debt Rating in Not Cooperating
ALUTECH PACKAGING: CRISIL Lowers Rating on INR17cr Loan to B
ASIA BULK: CRISIL Withdraws B+ Ratings on INR18cr Cash Loan
ASPAM ACADEMY: CRISIL Reaffirms B Rating on INR17.87cr Bank Loan
B S R BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
BALAJI AND COMPANY: CARE Keeps B- Debt Rating in Not Cooperating
BALAJI DIGITAL: Insolvency Resolution Process Case Summary
BAP CREATIONS: CRISIL Lowers Rating on INR12cr Loans to B
BIRBAL DASS: CARE Keeps C Debt Rating in Not Cooperating
CHANDIKA STORE: CRISIL Lowers Rating on INR7.5cr Cash Loan to B
CHAWLA INTERNATIONAL: CARE Keeps C Debt Rating in Not Cooperating
CHEMI ENTERPRISES: CRISIL Withdraws B+ Rating on INR20cr Loans
D S KULKARNI: Two Bidders in Final Race to Acquire Developer
GHAN MARINE: CARE Lowers Rating on INR10cr Long Term Loan to B+
GREEN LEAF: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
GX INDIA PRIVATE: Insolvency Resolution Process Case Summary
HANSRAJ MEMORIAL: CARE Keeps D Debt Rating in Not Cooperating
JAYALAKSHMI COTTON: CARE Cuts Rating on INR9.45cr Loan to B
JAYCEE CASTALLOYS: CARE Lowers Rating on INR16.41cr Loan to B+
KAMA METAL: CRISIL Lowers Rating on INR7.75cr Cash Loan to D
KARAVALI FREEZERS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
MAGNUM AVIATION: CARE Lowers Rating on INR9.50cr Loan to D
MAHALAXMI INDUSTRIES: CARE Cuts Rating on INR6.76cr Loan to B-
MEDCHEM LABS: CARE Lowers Rating on INR6.25cr LT Loan to B-
MINERVA POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
MURUGAR SPINNING: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
OM TRANSPORT: CRISIL Lowers Rating on INR5cr Term Loan to B
ORBIT EXPORTS: CRISIL Lowers Rating on INR23.5cr Cash Loan to B
PAUL & COMPANY: CARE Keeps B- Debt Rating in Not Cooperating
PRAKASH ELECTRICAL: CARE Lowers Rating on INR10cr Loan to B-
RADHAMANI TEXTILES: CRISIL Withdraws B Rating on INR62cr Loans
RATHINAM ARUMUGAM: Ind-Ra Keeps BB Loan Rating in Non-Cooperating
SANTKRUPA MILK: CARE Keeps B+ Debt Rating in Not Cooperating
SARASWATI TRADING: CRISIL Withdraws B+ Rating on INR11.5cr Loans
SATYANARAYANA RAW: CRISIL Lowers Rating on INR5.85cr Loan to B
SHAKTIMAN BIO: CARE Keeps B- Debt Rating in Not Cooperating
SHUBHSHREE ENGINEERING: Ind-Ra Moves BB+ Rating to Non-Cooperating
SIR BIOTECH: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
SONI HOSPITALS: CRISIL Withdraws B Rating on INR48.94cr Loan
TIRUPUR TEXTILES: CRISIL Withdraws D Rating on INR20cr Loan
TRINA NRE: CRISIL Lowers Rating on INR5cr LT Loan to B
YORK PRINT: CARE Keeps B- Debt Rating in Not Cooperating Category
I N D O N E S I A
AGUNG PODOMORO: Moody's Lowers CFR to Caa1 & 2024 Notes to Caa1
N E W Z E A L A N D
VILLA MARIA: Owner Owes NZD212MM to Bankers, Receivers Report Says
S I N G A P O R E
CHENGDU INDUSTRIES: Creditors' Proofs of Debt Due Aug. 16
MIDAS HOLDINGS: Creditors' Meetings Set for July 23
NOVENA BOLIAN: Creditors' Proofs of Debt Due Aug. 16
PERFORMANCE IDEA: Creditors' Proofs of Debt Due Aug. 16
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A U S T R A L I A
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CCNA PTY: First Creditors' Meeting Set for July 26
--------------------------------------------------
A first meeting of the creditors in the proceedings of CCNA Pty
Ltd, trading as Compatible Care Nursing Services & Compatible Care
Nursing Agency, will be held on July 26, 2021, at 12:00 p.m. via
teleconference facilities only.
Domenic Calabretta and Mitchell Ball of Mackay Goodwin were
appointed as administrators of CCNA Pty on July 14, 2021.
KYJACT PTY: First Creditors' Meeting Set for July 27
----------------------------------------------------
A first meeting of the creditors in the proceedings of Kyjact Pty
Ltd will be held on July 27, 2021, at 11:00 a.m. via virtual
meeting technology.
Stephen John Hundy and Daniel Ivan Cvitanovic of Worrells Solvency
& Forensic Accountants were appointed as administrators of Kyjact
Pty on July 15, 2021.
METRO FINANCE 2021-1: Moody's Assigns B1 Rating to AUD5MM F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to notes
issued by Perpetual Corporate Trust Limited, as trustee of Metro
Finance 2021-1 Trust.
Issuer: Metro Finance 2021-1 Trust
AUD652.00 million Class A Notes, Assigned Aaa (sf)
AUD36.00 million Class B Notes, Assigned Aa2 (sf)
AUD19.70 million Class C Notes, Assigned A2 (sf)
AUD10.70 million Class D Notes, Assigned Baa2 (sf)
AUD15.70 million Class E Notes, Assigned Ba1 (sf)
AUD5.00 million Class F Notes, Assigned B1 (sf)
The AUD10.90 million Class G Notes are not rated by Moody's.
The transaction is a cash securitisation of a portfolio of
Australian prime commercial auto and equipment loans and leases
originated by Metro Finance Pty Limited (Metro Finance). This is
Metro Finance's first auto and equipment asset backed securities
(ABS) transaction for 2021.
Metro Finance was established in 2011 as a commercial
auto/equipment lender. It targets prime borrowers, for small-ticket
auto and equipment assets in low volatility industries. Metro
Finance originates its lending through the commercial auto and
equipment broker and aggregator industry nationally. Significant
origination growth began in 2014.
RATINGS RATIONALE
The definitive ratings take into account, among other factors:
The limited amount of historical loss data. The static loss data
used for Moody's extrapolation analysis, which reflects Metro
Finance's short origination history, was limited to the origination
vintages between Q3 2014 and Q2 2019.
The evaluation of the underlying receivables and their expected
performance;
The fact that 69.2% of the receivables were extended to prime
commercial obligors on a no-income verification basis, referred to
as "streamlined". This streamlined product allows obligors who meet
certain stringent requirements to access the loan without providing
financial statements.
The 46.3% exposure to loans with a balloon payment at the end of
the receivable term. The aggregate balloon exposure as a percentage
of current portfolio balance is 15.2%. Loans with a balloon payment
are subject to higher refinancing and, consequently, default risk;
The evaluation of the capital structure;
The availability of excess spread over the life of the
transaction;
The liquidity facility in the amount of 3.00% of the note balance
subject to a floor of AUD2,200,000;
The interest rate swap provided by National Australia Bank Limited
(Aa3/P-1/Aa2(cr)/P-1(cr)). The notional balance of the swap will
follow a schedule based on the amortisation of the portfolio,
assuming no prepayments. Any prepayments or defaults will result in
the transaction becoming over-hedged. The prepayment risk is
mitigated by the fact that break costs are charged to the obligors
and these funds will flow through to the trust as collections; and
Initially, the Class A, Class B, Class C, Class D, Class E and
Class F Notes benefit from 13.07%, 8.27%, 5.64%, 4.21%, 2.12% and
1.45% of note subordination, respectively. The notes will initially
be repaid on a sequential basis until the credit enhancement of the
Class A Notes is at least 26.00%.
The notes will also be repaid on a sequential basis if there are
any unreimbursed charge-offs on the notes or if the first call
option date has occurred. At all other times, the structure will
follow a pro-rata repayment profile (assuming pro-rata conditions
are satisfied).
MAIN MODEL ASSUMPTIONS
Moody's base case assumptions are a default rate of 2.50%, a
recovery rate of 35.00% and a portfolio credit enhancement of
15.00%. After accounting for the seasoning of the initial portfolio
(8.2 months), Moody's mean default rate assumption was adjusted to
2.93%. Moody's assumed default rate and recovery rate are stressed
compared to the historical levels of 1.33% (extrapolated mean
default of 1.55%) and 57.55% respectively.
The difference between the historical and assumed default rate and
recovery rate is in part explained by the additional stresses
assumed by Moody's to address the lack of a full economic cycle in
the historical data, and by exposure to balloon loans in the
portfolio.
To address the limited historical loss data on Metro Finance's
portfolio, Moody's have benchmarked the short historical data for
Metro Finance to data from comparable Australian commercial auto
and equipment ABS originators. Moody's have also overlaid
additional stresses into Moody's default and PCE assumptions.
The streamlined product offering has been originated for almost
twelve years in the Australian auto and equipment loan space.
However, through-the-cycle historical data on the performance of
this product is limited. To address this risk and the fact that the
portfolio has a very high proportion of streamlined (69.2%),
Moody's have applied further qualitative stresses in Moody's
analysis.
Risks arising from the lack of income verification for these
borrowers are partly mitigated by the stringent requirements to
access this product. These requirements include property ownership
with confirmed equity greater than the loan amount or a 30% deposit
for non-property owners (Since April 2020, applicants are required
to be asset backed only. No-income-verification loans for
non-property owners has been paused), a satisfactory credit
reference from a reputable finance company running at least 12
months, no adverse credit history, and the business being
registered for the goods-and-services tax for at least 2 years
continuously.
The coronavirus pandemic has had a significant impact on economic
activity. Although global economies have shown a remarkable degree
of resilience to date and are returning to growth, the uneven
effects on individual businesses, sectors and regions will continue
throughout 2021 and will endure as a challenge to the world's
economies well beyond the end of the year. While persistent virus
fears remain the main risk for a recovery in demand, the economy
will recover faster if vaccines and further fiscal and monetary
policy responses bring forward a normalization of activity. As a
result, there is a heightened degree of uncertainty around Moody's
forecasts. Moody's analysis has considered the effect on the
performance of small businesses from a gradual and unbalanced
recovery in Australian economic activity.
Moody's regard the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
Methodology Underlying the Rating Action
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
December 2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortization or
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, a deterioration in the credit quality of
transaction counterparties, or lack of transactional governance and
fraud.
SFG RELOCATIONS: CP Advices Customers Affected by Liquidation
-------------------------------------------------------------
Consumer Protection has issued advice for customers of SFG
Relocations Pty Ltd, formerly trading as Wridgways Australia Pty
Ltd, who are affected by the liquidation of the company.
The company was part of a group that provided logistics, removal
and warehousing services to customers within Australia and
overseas.
Blair Pleash of Hall Chadwick Chartered Accountants was appointed
Court Liquidator on July 9, 2021 and is currently reviewing the
financial affairs of the company with a view to realising any
assets available for the benefits of creditors.
Consumer Protection has received a number of complaints relating to
refunds, repairs, insurance issues and delayed delivery. The
liquidator has advised Consumer Protection that customers still
waiting on deliveries will be a priority.
For creditor queries about the liquidation of Wridgways, contact
the liquidator Hall Chadwick on (02)9263-2600 or via email at
sfgrelocations@hallchadwick.com.au.
Should creditors have issues reaching the liquidator, don't
hesitate to contact Consumer Protection on 1300 30 40 54 or
consumer@dmirs.wa.gov.au.
Those who paid by credit card but did not receive completed
services, should consider contacting their credit card provider and
requesting a chargeback.
SYDNEY AIRPORT: Rejects US$16.6BB Buyout Proposal from Infra Funds
------------------------------------------------------------------
Reuters reports that Sydney Airport Holdings Pty Ltd said on July
15 it would reject a AUD22.26 billion (US$16.6 billion) takeover
proposal from a group of infrastructure funds, the biggest of a
frenzy of Australian deals fuelled by record-low interest rates.
Reuters relates that the operator of Australia's largest airport
said directors had unanimously concluded the proposal undervalued
the airport and was not in the best interest of shareholders. If
successful, it would have been one of Australia's biggest buyouts.
According to Reuters, record-low interest rates have prompted
pension funds and their investment managers to chase higher yields,
leading to recent asset purchases from Telstra Corp and Qube
Holdings.
Electricity poles-and-wires company Spark Infrastructure Group
rejected a AUD4.91 billion buyout proposal from private equity firm
KKR & Co Inc and Ontario Teachers' Pension Plan Board but left open
the chance of some engagement, Reuters says.
Earlier this month, the Sydney Aviation Alliance, a consortium of
IFM Investors, QSuper and Global Infrastructure Partners offered
AUD8.25 a share, for a premium of 42% to pandemic-ravaged Sydney
Airport's last trading price before the offer, according to
Reuters.
Reuters says the proposal is contingent on a board recommendation
and access to due diligence. Sydney Airport said its board would
only accept a buyout deal that would "deliver and recognise
appropriate long-term value".
"The board is obviously trying to play hardball, but we do think
it's a pretty unique long-dated asset so we are supportive of their
decision so far," Andy Forster, a portfolio manager at Argo
Investments, a top-20 investor in the airport, told Reuters.
In a statement, the Sydney Aviation Alliance said it was "surprised
and disappointed" by the rejection, but did not say if it had ruled
out a higher offer, Reuters relays.
The Australian government has a foreign ownership cap of 49% on
airport operators. IFM, QSuper and UniSuper are Australian, while
Global Infrastructure Partners is from the United States.
Sydney Airport is Australia's only listed airport operator and a
purchase would be a long-term bet on the travel sector. The city's
lockdown will run at least two more weeks after a rise in COVID-19
infections.
A successful deal would bring its ownership in line with the
country's other major airports, which are owned by consortia of
infrastructure investors, primarily pension funds, adds Reuters.
Sydney Airport Limited owns Sydney Airport. The company provides
international and domestic passenger services. It also offers
aeronautical services, including access to terminals,
infrastructure, apron parking, and airfield and terminal
facilities, as well as government mandated security services for
airlines; and parking and ground transport services, as well as
leases commercial space to tenants whose activities comprise duty
free, food and beverage, financial, and advertising services. In
addition, the company is involved in the leasing of terminal space,
buildings, and other space in the Sydney Airport; and rental of
cars.
TRITON BOND 2021-2: S&P Assigns Prelim. B(sf) Rating on Cl. F Notes
-------------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to 10 classes
of prime residential mortgage-backed securities (RMBS) to be issued
by Perpetual Corporate Trust Ltd. as trustee for Triton Bond Trust
2021-2 Series 1.
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that the structure features a
prefunding period up to the payment date in September 2021, which
means that new collateral loans may be added during that period,
subject to a rating notification.
-- S&P's view that the credit support is sufficient to withstand
the stresses it applies. This credit support comprises mortgage
insurance covering 15.0% of the loans in the portfolio, as well as
note subordination for all rated notes.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing liquidity
facility equal to 1.0% of the invested amount of all notes, subject
to a floor of 0.10% of the invested amount of all notes, principal
draws, and a loss reserve that builds from excess spread, are
sufficient under our stress assumptions to ensure timely payment of
interest.
-- The extraordinary expense reserve of A$150,000, funded from day
one by Columbus Capital Pty Ltd., available to meet extraordinary
expenses. The reserve will be topped up via excess spread if
drawn.
-- The benefit of a fixed- to floating-rate interest-rate swap
provided by National Australia Bank Ltd. to hedge the mismatch
between receipts from any fixed-rate mortgage loans and the
variable-rate RMBS, should any be entered into after transaction
close.
Preliminary Ratings Assigned
Triton Bond Trust 2021-2 Series 1
Class A1-MM, A$157.50 million: AAA (sf)
Class A1-AU, A$350.00 million: AAA (sf)
Class A1-5Y, A$130.00 million: AAA (sf)
Class A2, A$52.50 million: AAA (sf)
Class AB, A$27.75 million: AAA (sf)
Class B, A$12.98 million: AA (sf)
Class C, A$9.15 million: A (sf)
Class D, A$4.50 million: BBB (sf)
Class E, A$2.63 million: BB (sf)
Class F, A$1.35 million: B (sf)
Class G, A$1.65 million: Not rated.
=========
C H I N A
=========
AGILE GROUP: Moody's Rates Proposed USD Unsec. Notes 'Ba3'
----------------------------------------------------------
Moody's Investors Service has assigned a Ba3 senior unsecured
rating to the USD notes to be issued by Agile Group Holdings
Limited (Ba2 stable).
Agile plans to use the proceeds from the proposed notes to
refinance existing offshore debt due within one year.
RATINGS RATIONALE
"Agile's Ba2 corporate family rating (CFR) reflects the company's
strong market position and solid track record of property
development in its core Guangdong and Hainan markets; disciplined
financial management; good liquidity; and improving geographic
diversification," says Kaven Tsang, a Moody's Senior Vice
President.
"At the same time, the company's Ba2 rating is constrained by its
modest financial metrics and exposure to the financial and
execution risks associated with its expansion into non-property
businesses," adds Tsang.
Agile's Ba3 senior unsecured bond rating is one notch below its CFR
because of structural subordination risk. This subordination risk
reflects the fact that most of Agile's claims are at the operating
subsidiaries and have priority over claims at the holding company
in a bankruptcy scenario. In addition, the holding company lacks
significant mitigating factors for structural subordination. As a
result, the expected recovery rate for claims at the holding
company will be lower.
The proposed issuance will provide Agile with additional liquidity
and lengthen its debt maturity profile, while the impact on its
credit metrics will be limited because it will use the proceeds
mainly to refinance existing debt.
Moody's expects Agile's key financial metrics to improve in the
next 12-18 months as the company continues to grow its property
development business, ramp up its non-development businesses and
control its debt growth at 5%-10%. Specifically, Agile's
revenue/adjusted debt will improve to 70%-75% and EBIT/interest to
3.0x-3.5 over the next one to two years from 66.9% and 2.8x,
respectively, in 2020. These projected metrics are appropriate for
Agile's Ba2 CFR.
Agile's property presales rose 36.7% to RMB75.3 billion in the
first half of 2021 compared to a year ago, on track to meet Moody's
expectation of around RMB145 billion in property presales for the
year. This strong growth will be supported by Agile's possession of
RMB250 billion (or 15.6 million sqm in GFA) of salable resources
for the year, nearly half of which are salable resources (in terms
of GFA) located in the economically affluent Greater Bay Area and
Eastern China.
Agile's liquidity is good. The company's cash on hand of RMB50.9
billion as of December 31, 2020 can cover its short-term debt of
RMB38.8 billion as of the same date. Moody's also expects its cash
holding and operating cash flow to be sufficient to cover its
maturing debt, committed land premiums and dividend payments in the
next 12-18 months.
In terms of environmental, social and governance (ESG)
considerations, Agile's CFR takes into consideration its
concentrated ownership in its key shareholder, the Chen family,
which held a 66.3% stake in the company as of the end of December
2020. The family has a track record of supporting the company in
times of need, as reflected by their injection of around HKD1.6
billion into the company to support its liquidity and refinancing
needs during a difficult time in 2014. The company also has a
stable dividend payout ratio of around 40% over the past three
years.
Further, Agile's CFR has taken into consideration the presence of
internal governance structures and disclosure standards, as
required under the Corporate Governance Code for companies listed
on the Hong Kong Stock Exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Agile's stable rating outlook reflects Moody's expectation that the
company's key financial metrics will continue to improve over the
next 12-18 months, supported by its revenue growth and controlled
debt increase. It also reflects Moody's view that Agile will
maintain financial discipline and good liquidity while pursuing
business growth over the next one to two years.
Upward rating pressure could develop if Agile successfully executes
its business expansion plan with discipline; maintains a strong
liquidity position; and improves its credit metrics, with
revenue/adjusted debt above 80%-85% and EBIT/interest coverage
trending to 4.5x-5.0x on a sustained basis.
On the other hand, downward rating pressure could develop if
Agile's presales decline, the company fails to ramp up its
environmental protection business or the company turns to a more
aggressive expansion strategy in its property or non-property
businesses, such that its debt or contingent liabilities increase
and in turn weaken its credit metrics.
Credit metrics indicative of a downgrade include EBIT/interest
coverage below 3.0x-3.5x or revenue/adjusted debt under 65%-70% on
a sustained basis. Any sign of weakening in liquidity, with
cash/short-term debt consistently below 1.0x, or a deterioration in
corporate governance standards will also strain the rating.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Agile Group Holdings Limited (Agile) is one of China's major
property developers. As of December 31, 2020, the company had a
land bank with a gross planned gross floor area (GFA) of 53 million
square meters (sqm).
ANBANG INSURANCE: Remains Put Up for Sale With a US$5.2BB Valuation
-------------------------------------------------------------------
Lin Jinbing and Wu Yujian at Caixin Global report that China is
getting out of the Anbang bailout business, aiming to sell nearly
99% of the fallen insurance giant's remains, now valued at CNY33.6
billion (US$5.2 billion), public records show.
Caixin relates that the sale, which runs until Aug. 12, marks the
government's latest effort to put Anbang Insurance Group Co. Ltd.'s
remaining assets back into private hands and recoup as much of its
bailout funds as possible three years after taking over the
scandal-ridden insurer. The restructuring is widely seen as a
template for how China deals with debt-ridden companies that are
considered too big to fail, says Caixin.
Industry bailout fund firm China Insurance Security Fund Co. Ltd.
(CISF) and oil titan Sinopec Group, both state-owned, have put up
for sale their respective 98.23% and 0.55% stakes in Dajia
Insurance Group Co. Ltd., the company created to take over the
assets, Caixin discloses citing a post released on July 16 by the
Beijing Financial Assets Exchange.
Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang
Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health
Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offered
property insurance, life insurance, health insurance, asset
management, insurance sales agency, and insurance brokerage
services. The company provides car insurance, accident insurance,
cargo transportation insurance, credit insurance, life-long
insurance, and medical insurance services.
As reported in the Troubled Company Reporter-Asia Pacific in
February 2018, The Strait Times related the Chinese government had
seized control of Anbang Insurance, the troubled Chinese company
that owns the Waldorf Astoria hotel in New York and other marquee
properties around the world, and charged its former chairman with
economic crimes. The Strait Times noted that the move is Beijing's
biggest effort yet to rein in a new kind of Chinese company, in
this case, one that spent billions of dollars around the world over
the past three years buying up hotels and other high-profile
properties. The Strait Times noted the move also caps the downfall
of Anbang leader Wu Xiaohui. Mr. Wu was later sentenced to 18 years
in prison for fraud and embezzlement, according to Reuters.
In July 2019, the China Banking and Insurance Regulatory Commission
(CBIRC) said the newly created Dajia Insurance Group will take over
several of Anbang Insurance's subsidiaries. According to Caixin,
the insurance regulator said that Dajia will receive Anbang's
stakes in its life insurance, annuity insurance and asset
management subsidiaries, and some of the assets of its property and
casualty insurance unit.
INNER MONGOLIA BAOTOU: Fitch Puts BB+ Unsec. Rating on Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has placed the ratings of four corporate
government-related entities (GRE) and two subsidiaries of GREs on
Rating Watch Negative (RWN) following a peer review of a portfolio
of Chinese GREs.
These entities are:
-- HBIS Group Co., Ltd. (HBIS, BBB+) and debt issued by HBIS
Group Hong Kong Co., Limited
-- Jiuquan Iron and Steel (Group) Co., Ltd. (JISCO, BBB-) and
debt issued by Jisco SR Pearl Ltd.
-- Inner Mongolia Baotou Steel Union Co., Ltd. (BSUC, BB+), a
subsidiary of Baotou Iron & Steel (Group) Co., Ltd (BISC)
-- Kunming Iron & Steel Holding Co., Ltd. (KISC, BBB-)
-- Yunnan Provincial Energy Investment Group Co., Ltd. (YEIG,
BBB-), its subsidiary Yunnan Energy Investment (HK) Co.
Limited (BBB-) and debt issued by Yunnan Energy Investment
Overseas Finance Company Ltd.
The RWNs will be resolved as soon as practicable.
KEY RATING DRIVERS
Greater Differentiation in State Support: The number of defaults
involving public debt instruments issued by GREs has risen over the
last 18 months, although they remain low compared with the number
of GRE issuers. Fitch expects the increase to continue as
deleveraging remains a core policy objective of the Chinese
government to limit the accumulation of financial risks that could
destabilise the economy. Tolerance of defaults, including at
state-linked entities, appears to have increased.
Fitch, however, does not expect a sudden sharp increase in GRE
defaults or widespread debt restructuring, which could destabilise
markets and add to systemic financial risks. This is because of the
important role state-owned entities play in China. Their capital
accounts for a dominant share of China's debt financing. However,
Fitch believes that greater differentiation in support to GREs will
intensify.
GREs' Role, Nature of Operations: The support impact will not apply
uniformly. Fitch believes state financial support to strategically
important GREs will continue, while GREs with marginal roles for
their sponsors or those that are active in sectors with
overcapacity or low priority will be threatened amid the credit
polarisation.
GRE Rating Factors: Fitch considers the strength of linkages with
the state and its incentive to support in assessing the likelihood
of state support to a GRE, according to Fitch's Government-Related
Entities Rating Criteria. Linkage strength is based on the factors
of status, ownership and control (KRF1) and support track record
(KRF2). Support incentive factors are socio-political (KRF3) and
financial (KRF4) implications of default.
The following comments on each issuer refer to specific KRFs; when
the ratings are reviewed for resolving the RWNs, all aspects
relevant to the ratings would be considered, including all four
factors.
HBIS: KRF1 - 'Strong', KRF2 - 'Moderate', KRF3 - 'Moderate', KRF4 -
'Very Strong'
HBIS, the largest GRE owned by Hebei province, engages in steel
production, a sector that accounts for a sizeable share of the
province's economic activity. However, steel is a highly commercial
industry that has been subject to supply-side reforms in China.
Fitch is reviewing HBIS's 'Very Strong' assessment for the
financial implications of default, considering the nature of its
operations, and in comparison with similar Chinese GREs that
operate in commercial business sectors that are also very material
GREs for their local government owners.
JISCO: KRF1 - 'Strong', KRF2 - 'Moderate', KRF3 - 'Moderate', KRF4
- 'Strong'
JISCO is the second-largest revenue contributor and the
third-largest GRE by assets in Gansu. It is also the only steel
producer with a dominant market share in north-western China.
Steel, however, is a highly commercialised sector. Fitch is
reviewing JISCO's 'Strong' assessment for the financial
implications of default. Fitch is also comparing it with other
GREs, including Jinchuan Group Co., Ltd. (BBB-/Stable), a larger
GRE from Gansu, which plays a leading role in nickel mining in the
province, a metal for which China is highly reliant on imports.
BSUC
BSUC's ratings are linked to the credit profile of its parent,
BISC, which is 77%-owned by the Inner Mongolia Autonomous Region
(IMAR). The assessment of state support incorporated in the credit
profile of BISC considers its leading market position in rare-earth
extraction in China. However, it has significant exposure to highly
commoditised businesses such as steel. Similar to HBIS and JISCO,
Fitch is reviewing the linkage factors that drive state support
from IMAR that are incorporated in BISC's credit assessment.
KISC: KRF1 - 'Strong', KRF2 - 'Moderate', KRF3 - 'Moderate', KRF4 -
'Strong'
The Yunnan government has entered into an agreement to entrust the
management of KISC to China Baowu Steel Group Corporation Limited
(Baowu, A/Stable) before transferring the government's shareholding
in KISC to Baowu at zero consideration, which is likely to be
towards end-2021.
KISC's ratings were on Rating Watch Evolving before today's rating
action (see Fitch Places Kunming Iron & Steel's Ratings on Rating
Watch Evolving dated 4 February 2021. Its ratings are currently
linked to Fitch's internal assessment of the creditworthiness of
Yunnan as ownership remains with the province. However, if a
liquidity event were to occur at KISC before it is fully absorbed
by Baowu, there is uncertainty over the amount and timeliness of
support from the Yunnan government. KISC's ratings were placed on
RWN pending greater clarity over this.
YEIG: KRF1 - 'Very Strong', KRF2 - 'Weak', KRF3 - 'Moderate', KRF4
- 'Strong'
YEIG is Yunnan's flagship provincial energy investment platform
whose core businesses are closely aligned with the local
government's strategic priorities to ensure energy security and
promote clean energy. The company holds stakes in major hydropower
projects in Yunnan on behalf of the provincial government and has a
mandate to develop and invest in renewable power projects,
alongside a portfolio of other businesses including gas
distribution, salt manufacturing and distribution, and logistics.
YEIG is more than 90% indirectly owned by the Yunnan State-owned
Assets Supervision and Administration Commission (SASAC), with
83.1% nominally held by Yunnan Provincial Investment Holdings Group
Co. Ltd. (YIG), an entity 100% owned by the Yunnan government.
Yunnan SASAC directly controls YEIG's business strategy and key
financial and investment decisions. There are no related-party
transactions between YEIG and YIG, but there is a possibility
credit challenges at YIG or any of its other subsidiaries may
trigger similar difficulties for all related entities by
association, including YEIG. Such an event would require the Yunnan
government to resolve liquidity crises at several of its large GREs
involving a substantial quantum of debt at the same time.
YEIG's ratings were downgraded to 'BBB-' with a Negative Outlook in
April 2021. The decision to place the ratings on RWN indicates that
YEIG's ratings are being reviewed to incorporate these latest
considerations, which may not be fully reflected in its ratings.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The ratings are on Watch Negative, which means no positive
rating action is expected. Ratings may be affirmed if the
current GRE factor assessments are considered appropriate at
the time of resolving the RWNs.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Lowering of the current GRE factor assessments would lead to
negative rating action.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
HBIS ratings are linked to Fitch's internal credit assessment of
Hebei province. JISCO's ratings are linked to Fitch's internal
credit assessment of Gansu province. BSUC's ratings are linked to
BISC's, KISC's and YEIG's ratings are linked to Fitch's internal
credit assessment of Yunnan province. Yunnan Energy Investment
(HK)'s ratings are linked to that of its parent, YEIG.
DEBT RATING PRIOR
---- ------ -----
HBIS Group Co., Ltd.
LT IDR BBB+ Rating Watch On BBB+
senior unsecured LT BBB+ Rating Watch On BBB+
HBIS Group Hong Kong Co., Limited
senior unsecured LT BBB+ Rating Watch On BBB+
Inner Mongolia Baotou Steel Union Co., Ltd.
LT IDR BB+ Rating Watch On BB+
senior unsecured LT BB+ Rating Watch On BB+
Jisco SR Pearl Ltd.
senior unsecured LT BBB- Rating Watch On BBB-
Yunnan Provincial Energy Investment Group Co., Ltd.
LT IDR BBB- Rating Watch On BBB-
senior unsecured LT BBB- Rating Watch On BBB-
Jiuquan Iron and Steel (Group) Co., Ltd.
LT IDR BBB- Rating Watch On BBB-
senior unsecured LT BBB- Rating Watch On BBB-
Yunnan Energy Investment (HK) Co. Limited
LT IDR BBB- Rating Watch On BBB-
Kunming Iron & Steel Holding Co., Ltd.
LT IDR BBB- Rating Watch Revision BBB-
senior unsecured LT BBB- Rating Watch Revision BBB-
Yunnan Energy Investment Overseas Finance Company Ltd.
senior unsecured LT BBB- Rating Watch On BBB-
senior unsecured LT BB+ Rating Watch On
NANJING ZHIXING: Creditor Files Petition for Byton Bankruptcy
-------------------------------------------------------------
Dow Jones Newswires reports that a creditor of Chinese electric car
startup Byton filed a court petition for the embattled company's
bankruptcy on July 12, a local court record showed.
A Shanghai-based software supplier has requested the court to start
the bankruptcy proceedings for Nanjing Zhixing New Energy Vehicle
Technology Development Co., or Byton, Dow Jones discloses citing
court record. The court hasn't accepted the petition as Byton is
seeking a settlement with the creditors, the company said in a
statement.
According to Dow Jones, competition has been further intensified in
China's electric vehicle market as major EV makers such as Tesla
Inc. and the homegrown NIO Inc. captured share during the recent
market boom. EV startups that have long relied on equity financing
to support cash-burning research and development are more
vulnerable to financial crises.
Byton has raised at least CNY8.4 billion ($1.29 billion) from a
group of investors including Tencent Holdings, Foxconn Technology
Group and auto maker FAW Group Corp. as of last June, according to
state broadcaster China Central Television, Dow Jones relays.
Byton said in January that Foxconn would help manufacture its
flagship sport-utility vehicle M-Byte in its Nanjing factory, but
no model has been produced yet, Dow Jones recalls.
Dow Jones relates that Foxconn has pulled out some of the staff
dispatched to Byton after the Chinese state-owned FAW Group sought
to grow its management control of the startup, deploying a former
senior official to Byton as chairman earlier this month, according
to Byton and FAW employees.
In April, Byton's German unit went into bankruptcy after failing to
pay salary to local employees for months. Since last July, Byton
has suspended its China operations, Dow Jones notes.
XINJIANG ZHONGTAI: Fitch Puts 'BB-' LT IDRs on Watch Negative
-------------------------------------------------------------
Fitch Ratings has placed the Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) on a number of Chinese public-sector
government-related entities (GREs) on Rating Watch Negative (RWN).
The respective bond issues of the GREs have also been placed on
RWN.
The issuers affected by the rating action are as follows:
-- Baoji Investment (Group) Co., Ltd. (BIG, BB+),
-- Guangxi Liuzhou Dongcheng Investment Development Group Co.,
Ltd. (LDID, BB),
-- Hainan State Farms Investment Holdings Group Co., Ltd. (HSF,
BBB+), and debt issued by Hainan State Farms International
(HK) Co., Limited
-- HengYang HongXiang State-owned Investment (Holding) Group Ltd.
(HYHX, BBB-),
-- Hubei Science Technology Investment Group Co., Ltd. (HBST,
BBB+), and debt issued by Hubei Science & Technology
Investment Group (Hong Kong) Co., Ltd
-- Jiangsu Fang Yang Group Co., Ltd. (Fang Yang, BB), and debt
issued by Haichuan International Investment Co., Ltd.
-- Kunming Municipal Urban Construction Investment & Development
Co., Ltd. (KUCI, BB+),
-- Liuzhou Dongtong Investment & Development Co., Ltd. (LDI, BB),
-- Nanjing Pukou Economic Development Co., Ltd. (NPKE, BB),
-- Shangrao Innovation Development Industry Investment Group Co.,
Ltd. (SIIG, BB),
-- Taizhou Huaxin Pharmaceutical Investment Co., Ltd. (THPI,
BB+), and debt issued by Huaxin Pharmaceutical (Hong Kong)
Co., Limited
-- Xinjiang Zhongtai (Group) Co., Ltd. (XJZT, BB-),
-- Yancheng Oriental Investment & Development Group Co., Ltd.
(BB-), and debt issued by Oriental Capital Company Limited
-- Zhengzhou Airport Economy Zone Xinggang Investment Group Co.,
Ltd. (XIG, BBB+)
Fitch plans to resolve the RWN on the affected ratings as soon as
practicable.
Fitch has also released a commentary on the influence that recent
policy changes in China will have on the likelihood of state
support for GREs.
KEY RATING DRIVERS
Defaults involving Chinese state-owned entities have increased in
recent years, but they remain low compared with the number of such
issuers. De-leveraging remains a core policy objective of the
Chinese government to arrest financial risks, and the Chinese
authorities' tolerance for defaults - including at state-linked
entities - has increased.
Fitch does not expect a sudden sharp increase in GRE defaults or
widespread debt restructurings, which could destabilise markets and
add to systemic financial risks, given the role and total debt
levels of state-owned entities. Differentiation among GREs is,
however, likely to intensify, resulting in greater polarisation of
state support. The increasing polarisation is in line with the
government's efforts to provide official support more selectively,
making non-core entities more vulnerable.
In assessing the likelihood of state support to a GRE, Fitch's
Government-Related Entities Rating Criteria covers both the
strength of linkages to the state - based on the key risk factors
(KRFs) of "Status, Ownership and Control" (KRF1) and "Support Track
Record" (KRF2) - and the government's incentive to extend support -
based on the KRFs of "Socio-political Implications of Default"
(KRF3) and "Financial Implications of Default" (KRF4).
During Fitch's follow-up review of the public-sector entities on
RWN, the assessment will focus on the impact on the four KRFs from
the recent GRE credit incidents, policy directives by the central
government and the challenging financing climate. A breakdown by
KRF of the rationale for placing the credits under RWN is provided
below. These rationales are preliminary and indicative; the
resolution committees may decide otherwise.
KRF1: Change in assessment of "Status, Ownership and Control" to
'Strong' from 'Very Strong'
Policy-driven GREs are generally tightly controlled by the
government from which they receive their mandates. Recent credit
incidents have highlighted the importance of tight control to
ensure a prompt support response. For the following entities,
government control appears to be less direct or granular on the
operational, investment, and financing activities of the GRE, due
to delegation of control to an affiliated agency or branch of
government from the ultimate government sponsor, or due to the
GRE's involvement in commercial businesses, which only require
broad high-level government supervision. A change in the assessment
for this KRF to 'Strong' may lead to a rating downgrade.
Affected issuers: (only publicly rated issuers are listed)
-- Hubei Science Technology Investment Group Co., Ltd.
-- Nanjing Pukou Economic Development Co., Ltd.
-- Xinjiang Zhongtai (Group) Co., Ltd.
-- Zhengzhou Airport Economy Zone Xinggang Investment Group Co.,
Ltd.
KRF2: Change in the assessment of the "Support Track Record" to
'Moderate' from 'Strong'
The following issuer has received less direct support from its
sponsor, with the financial profile of the GRE remaining at a
weaker level. A change in the assessment of this KRF to 'Moderate'
may lead to a rating downgrade.
Affected issuers:
-- Jiangsu Fang Yang Group Co., Ltd.
KRF3: Change in the assessment of the "Socio-Political Implications
of Default" to 'Moderate' from 'Strong'
The KRF for the entity below may be revised downward to reflect
re-alignment of its substitutability and socio-political
repercussions of default relative to similar peers. This may result
in a rating downgrade.
Affected issuers:
-- HengYang HongXiang State-owned Investment (Holding) Group Ltd.
KRF4: Change in the assessment of "Financial Implications of
Default" to 'Strong' from 'Very Strong'
The impact on a government's and its GREs' access to financing from
a GRE default is a key consideration in Fitch's Government-Related
Entities Rating Criteria for assessing incentives for governments
to support their GREs.
For the following issuers, the tightening of policies, the
deterioration of market access by similar entities and the impact
on market expectations may have weakened the perception that the
issuers act as proxy financing vehicle for their governments. The
change in the assessment of this KRF to 'Strong' may lead to a
rating downgrade.
Affected issuers:
-- Guangxi Liuzhou Dongcheng Investment Development Group Co.,
Ltd.
-- Nanjing Pukou Economic Development Co., Ltd.
KRF4: Change in the assessment of "Financial Implications of
Default" to 'Moderate' from 'Strong'
The following issuers have experienced some difficulties in
accessing capital-market debt, due to the deterioration of the
credit profiles of similar entities. This deteriorating financing
capacity or financing resilience may weaken the financial
implications of default for their sponsoring governments or other
GREs' under the same sponsor. Therefore, the assessment of this KRF
is likely to change to 'Moderate', which may lead to a rating
downgrade.
Affected issuers:
-- Baoji Investment (Group) Co., Ltd.
-- Hainan State Farms Investment Holdings Group Co., Ltd.
-- Jiangsu Fang Yang Group Co., Ltd.
-- Kunming Municipal Urban Construction Investment & Development
Co., Ltd.
-- Liuzhou Dongtong Investment & Development Co., Ltd.
-- Shangrao Innovation Development Industry Investment Group Co.,
Ltd.
-- Taizhou Huaxin Pharmaceutical Investment Co., Ltd.
-- Yancheng Oriental Investment & Development Group Co., Ltd
Standalone Credit Profile:
The standalone credit profiles of the following issuers will be
reassessed based on their latest credit profiles.
Affected issuers:
-- Guangxi Liuzhou Dongcheng Investment Development Group Co.,
Ltd.
-- Yancheng Oriental Investment & Development Group Co., Ltd.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Ratings are on Watch Negative; as such, no positive rating
actions are expected. Ratings could be affirmed if existing
assessments for the four KRFs are considered appropriate at
the time of resolving the Rating Watch Negative.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Downward revision of the assessments of the four KRFs would
lead to negative rating action.
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
entities, either due to their nature or the way in which they are
being managed by the entities.
=========
I N D I A
=========
ALLFLEX PLASTICS: CARE Keeps C Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Allflex
Plastics LLP (APL) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 14.94 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 0.60 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 25, 2020, placed the
ratings of ALP under the 'issuer noncooperating' category as
Allflex Plastics LLP 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. Allflex
Plastics LLP continues to be non-cooperative despite repeated
requests for submission of information through e-mails, phone calls
and email dated April 3, 2021, April 13, 2021 and April 23, 2021
among others.
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.
Established in December 2014, Allflex Plastics LLP (APL) was
promoted by Mr. Kamlesh Thakkar and Mr. Rushab Thakkar for setting
up a manufacturing unit of flex banner. After successfully setting
up its plant, the firm has commenced its manufacturing operations
from April 2016. Prior to manufacturing operations, the firm was
dealing with securities trading. The manufacturing facility of the
firm is located at Howrah, West Bengal with aggregate installed
capacity of 14400 pieces of flex banner per annum.
ALUTECH PACKAGING: CRISIL Lowers Rating on INR17cr Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Alutech Packaging Private Limited (APPL) to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 17 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable' ISSUER NOT
COOPERATING)
Foreign Letter 1.75 CRISIL A4 (ISSUER NOT
of Credit COOPERATING; Revised from
'CRISIL A4+' IISSUER NOT
COOPERATING)
Proposed Long Term 4.25 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB+/Stable' ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with APPL for
obtaining information through letters and emails dated December 18,
2020 and June 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of APPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on APPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
APPL revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
Incorporated in 2010 and promoted by Mr. Anil Kumar Mittal and his
family, APPL is engaged in slitting, lamination, coating, and
printing of aluminum foils to manufacture sill packs used in the
pharmaceutical packaging industry. Facilities are in Bahadurgarh,
Haryana, with a total installed capacity of 700 metric tonne.
ASIA BULK: CRISIL Withdraws B+ Ratings on INR18cr Cash Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Asia Bulk Sacks Private Limited (ABSPL) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 18 CRISIL B+/Stable (ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Inland/Import 6.5 CRISIL A4 (ISSUER NOT
Letter of Credit COOPERATING'; Rating
Withdrawn)
Long Term Loan 4.7 CRISIL B+/Stable (ISSUER NOT
COOPERATING'; Rating
Withdrawn)
Proposed Long Term 6.8 CRISIL B+/Stable (ISSUER NOT
Bank Loan Facility COOPERATING'; Rating
Withdrawn)
CRISIL Ratings has been consistently following up with ABSPL for
obtaining information through letters and emails dated November 21,
2020 and May 19, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ABSPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ABSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
ABSPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL Ratings has withdrawn its ratings on the bank facilities of
ABSPL on the request of the company and receipt of a no objection
certificate from its bank. The rating action is in line with CRISIL
Ratings' policy on withdrawal of its ratings on bank loans.
Incorporated in 1984, ABSPL is engaged in manufacturing of in
manufacturing of FIBC (Flexible intermediate Bulk Container) and
owned by Chaudhari and Gandhi family.
ASPAM ACADEMY: CRISIL Reaffirms B Rating on INR17.87cr Bank Loan
----------------------------------------------------------------
CRISIL Ratings has removed its rating on the long term bank
facilities of Aspam Academy Noida (AAN) from 'Rating Watch with
Negative Implications' and reaffirmed the rating at 'CRISIL B '
while assigning a 'Stable' outlook.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 17.87 CRISIL B/Stable (Removed
Bank Loan Facility from 'Rating Watch with
Negative Implications';
Rating Reaffirmed)
CRISIL Ratings has resolved the watch following the implementation
of the one-time restructuring (OTR) of AAN's terms loans on June
28, 2021, under Reserve Bank of India (RBI) guidelines issued on
August 06, 2020-'Resolution Framework for COVID-19-related
Stress'.
Operating performance in fiscal 2021 was weaker than fiscal 2020 as
the company had to give fee discounts to the students, consequently
operating income declined to INR6.29 crore from INR8.17 crore in
fiscal 2020.
The rating factors the locational advantage, and modern
infrastructures. These rating advantages are offset by the current
low occupancy level, risk associated with project under
implementation and pressure on liquidity due to large debt
repayments expected over medium term.
Key Rating Drivers & Detailed Description
Weakness:
* Project phase of operations: The school is under renovation and
the school discontinued their admission during academic year
2016-17 and 2017-18, this resulted in fall in occupancy rates. The
renovation is expected to complete in academic year 2021-22. The
school had re-started operations in academic year 2019-20. The
ability of the company to complete the project with in schedule
time and healthy ramp up of occupancy levels will remain a key
monitorable.
* Poor liquidity profile: ASPAM Academy had availed term loan of
INR 60 crores to take over the school from MAF Academy and carryout
renovation. Additionally, the company has taken debt of INR 16 crs
for further renovations. The debt repayment began in September
2018, much before the school start its full-fledged operations.
Accordingly, Aspam Academy is dependent on promoter funding to meet
debt obligation and capex requirements.
Strengths:
* Modern infrastructure and location advantage: The school is
governed by 'Board of Governance', the board comprises of relatives
of Chairman of the Gulf Petrochem group along with retired senior
personnel from armed forces with substantial experience in the
academic field post retirement.
The school, previously known as MAF Academy, was acquired by the
Gulf Petrochem Group in the year 2015 and was renamed to AAN.
Post-acquisition, the school is being revamped with modern
infrastructure at a cost of around INR76 crores.
The school is located in sector 62, Noida, which is a commercial
hub surrounded by residential area. There are multiple schools in
the area and many pre-schools, including two preschools run by the
promoter group, acting as feeders to the school.
Liquidity: Poor
Aspam Academy is dependent on promoter funding to meet debt
obligation and capex requirements, since it is in project phase.
The company has term debt obligation of around INR2 crore in fiscal
2022. Support from the promoters is essential to meet debt
obligation over the medium term. The promoter group is expected to
extend timely financial aid during the fiscal to meet incremental
working capital requirement.
Outlook: Stable
CRISIL Ratings believes AAN will continue benefit from its location
advantage, and presence of group run pre-school in improving
business risk profile over the medium term. However, financial risk
profile may remain subdued over the medium term driven by high debt
levels.
Rating Sensitivity Factors
Upward factors:
* Better than expected operating performance driven by higher
student intake and sustained increase in fees.
* Significantly higher accrual and improvement in financial risk
profile leading too increase in interest cover of more than 2 times
on a sustained basis
Downward Factors:
* Significant delay in completion of project
* Absence of promoter support
* Significant decline in occupancy to below 20% due to lower new
admissions leading to weak business risk profile
AAN was incorporated under Section 8 of the Companies' Act 2013
with an objective to establish and operate educational
institutions. The company was earlier known as MAF Academy Private
Limited, the name was changed to AAN in 2015 after ASPAM Eduinfra
Private Limited acquired the company. ASPAM Academy is operating
ASPAM Scottish School in Noida Sector 62. The school is under
renovation which is expected to complete during academic year
2017-18 and school is expected to begin operations in its renovated
premises from academic year 2018-19.
B S R BUILDERS: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of B S R
Builders Engineers & Contractors (BSRBEC) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 26.30 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 BSRBEC under the 'issuer non-cooperating' category as
BSRBEC 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. BSRBEC continues to
be noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 29, 2021, April 8, 2021, and 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(s).
Chennai (Tamil Nadu) based, B.S.R. Builders Engineers & Contractors
(BSRBEC) was established in the year 2004 as a partnership firm by
Mr. Raghavendra Reddy and his family members. The firm is engaged
in the construction of residential townships, apartments, shopping
malls and commercial complexes.
BALAJI AND COMPANY: CARE Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Sri Balaji
and Company (SBC) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.20 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 15, 2020, placed the
rating(s) of SBC under the 'issuer non-cooperating' category as SBC
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. SBC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated March 31,
2021, April 10, 2021, April 20, 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).
Guntur based, Sri Pardhasaradhi and Company, was established in
1984 as a Partnership Firm and nomenclature changed to Sri Balaji
and Company (SBC) in 1994. SBC was promoted by Mr. J. Sarangapani,
Mr. J.Subba Rao, Mr. J.Pardhasaradhi and Mr. J.Venu Gopal. SBC is
engaged in trading and manufacturing of cotton yarn with a total
installed capacity of 2,040 tonnage p.a. at its manufacturing unit
located at Guntur, Andhra Pradesh. The manufacturing process
includes ginning of raw cotton into seeds and lint. The firm has
major customers in Andhra Pradesh, Tamilnadu, Karnataka, Mumbai and
Maharashtra. SBC purchases raw cotton mainly from local farmers and
lint from dealers.
BALAJI DIGITAL: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Balaji Digital Solution Private Limited
Plot No. 39, F&V Service Shop
Commercial Centre G Block
G-16 First Floor
Vikaspuri
New Delhi 110018
Insolvency Commencement Date: July 6, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: January 2, 2022
Insolvency professional: Mr. Mahesh Agarwal
Interim Resolution
Professional: Mr. Mahesh Agarwal
D-13, Suvidha Apartments
Sector-13 Rohini
New Delhi 110085
E-mail: agarwalmaheshin@yahoo.com
- and -
405, New Delhi House
Barakhamba Road
Connaught Place
New Delhi 110001
E-mail: ip1387ma@gmail.com
Last date for
submission of claims: July 22, 2021
BAP CREATIONS: CRISIL Lowers Rating on INR12cr Loans to B
---------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of BAP
Creations Private Limited (BCPL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING)
Proposed Long Term 6 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with BCPL for
obtaining information through letters and emails dated December 18,
2020 and June 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BCPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BCPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB/Stable Issuer Not Cooperating'.
Incorporated in 2011, BCPL trades in imported products, including
gift articles, glassware, crystal ware, and crockery products. The
company is owned and managed by Mr. M.L. Garg and family.
BIRBAL DASS: CARE Keeps C Debt Rating in Not Cooperating
--------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Birbal Dass
Ritesh Kumar (BDRK) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 21.00 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 12, 2020, placed the
rating(s) of BDRK under the 'issuer non-cooperating' category as
BDRK 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. BDRK continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated March 28,
2021, April 7, 2021, April 17, 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).
Hanumangarh (Rajasthan) based Birbal Das Ritesh Kumar (BDRK) was
established in 2006 as a proprietorship concern by Mr Ritesh Kumar
Gupta. BDRK is engaged in the business of trading of agriculture
commodities and also provides commission agents services to its
customers. The firm mainly deals in barley, castor seeds,
coriander, cotton bales, mustard seeds and wheat etc. It procures
the agriculture commodities from the local mandis as well as from
farmers and sells those to different customers directly as well as
through distributors. BDRK is also engaged in the business of land
development business.
CHANDIKA STORE: CRISIL Lowers Rating on INR7.5cr Cash Loan to B
---------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Chandika Store (CS) to 'CRISIL B/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with CS for
obtaining information through letters and emails dated January 30,
2021 and June 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of CS, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on CS is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of CS
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
CS was set up as a proprietorship concern of Mr Lalit Kumar Sharma
in 1998. The Bihar-based firm trades in fertilisers, and cement.
CHAWLA INTERNATIONAL: CARE Keeps C Debt Rating in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Chawla
International (CLI) continues to remain in the 'Issuer Not
Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 2.25 CARE C; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Short Term Bank 5.50 CARE A4; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 18, 2020, placed the
ratings of CLI under the 'issuer noncooperating' category as Chawla
International 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. Chawla International
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated April 3, 2021, April 13, 2021 and April 23, 2021 among
others.
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.
Chawla International (CLI) was established in 1994 as a partnership
firm by Mr. J. S Chawla along with his family members. The firm is
in the business of trading and exports of coal and agro-based
commodities like maize, wheat, rice etc. The firm generated around
60% of total turnover from coal trading and remaining from
agro-based commodities trading. The firm derived around 91% of
total sales during FY18, provisional from exports to Bangladesh and
Bhutan and balance from domestic market.
CHEMI ENTERPRISES: CRISIL Withdraws B+ Rating on INR20cr Loans
--------------------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Chemi Enterprises LLP (Chemi LLP) on the request of the company and
receipt of a no objection certificate from its bank. The rating
action is in line with CRISIL Ratings' policy on withdrawal of its
ratings on bank loans.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Rating Withdrawn)
Inland/Import 14 CRISIL B+/Stable (ISSUER NOT
Letter of Credit COOPERATING; Rating Withdrawn)
Proposed Letter 1 CRISIL B+/Stable (ISSUER NOT
of Credit COOPERATING; Rating Withdrawn)
CRISIL Ratings has been consistently following up with Chemi LLP
for obtaining information through letters and emails dated November
21, 2020 and May 19, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Chemi LLP. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Chemi
LLP is consistent with 'Assessing Information Adequacy Risk'. Based
on the last available information, the rating on bank facilities of
Chemi LLP continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Chemi LLP on the request of the company and receipt of a no
objection certificate from its bank. The rating action is in line
with CRISIL Ratings' policy on withdrawal of its ratings on bank
loans.
Set up as a limited liability partnership firm in April, 2016,
Chemi LLP was formed to take over the existing operations of Chemi
Enterprise'a proprietorship firm of Mr Bipin Kantilal Joshi set up
in 1983. The firm trades 12 inorganic chemicals such as titanium
dioxide, barium sulphate, barite, flowing agents and hardeners used
in paint, pharmaceuticals, rubber and plastic industries. Mr Bipin
Kantilal Joshi and his wife Mrs Chhaya B Joshi are partners of the
firm.
D S KULKARNI: Two Bidders in Final Race to Acquire Developer
------------------------------------------------------------
The Economic Times reports that realty developers Mantra Properties
and Ashdan Developers are in fray to acquire Pune-based real estate
developer D S Kulkarni Developers through the ongoing insolvency
process with separate bids of over INR800 crore each, said persons
with direct knowledge of the development.
While Mantra Properties has bid INR880 crore, Ashdan Developers has
bid INR827 crore in the third revision of their plans to acquire
the debt-laden company and its projects, ET discloses.
The Committee of Creditors (CoC) is expected to take a final call
on both the resolution plans this week, the report says.
"Both the bidders have revised their bids at least three times so
far. The resolution professional had asked them to revise it one
more time earlier this week and the fourth revision was submitted
on Tuesday," ET quotes one of the persons mentioned above as
saying.
A total of over 700 homebuyers across five stalled projects are
awaiting possession of their homes, ET notes.
Based on their third revision of the plan, Mantra Properties has
offered to hand over possession to these homebuyers in around 40
months, while Ashdan -- a consortium led by Solitaire Group -- has
sought up to 54 months for the same, adds ET.
Based in Pune, India, D.S. Kulkarni Developers Ltd. is a
construction company. The Company is involved in the construction
of residential buildings, including apartment blocks.
GHAN MARINE: CARE Lowers Rating on INR10cr Long Term Loan to B+
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Ghan
Marine Products (GMP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 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 7, 2020, placed the
rating(s) of GMP under the 'issuer non-cooperating' category as GMP
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. GMP continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 23, 2021, April 2, 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).
The ratings assigned to the bank facilities of GMP have been
revised on account of non-availability of requisite information.
Ghan Marine Products (GMP) was established in the year 2011 and
reconstituted in the year 2015. The firm is currently promoted by
Mr S Venkateswara Rao and his spouse Ms. S Ganga Bhavani. The firm
is engaged in processing, packing and export of shrimp and fishes
to various places like Vietnam, China, Japan and Thailand. The
product profile of the company includes ribbon fish, Mackerel, and
Pudding fish. The firm has the certification of Marine Products
Export Development Authority (MPEDA) for its export activities.
GREEN LEAF: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Green Leaf
Plasto Private Limited's (GLPPL) Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is based on the best available information. Therefore, investors
and other users are advised to take appropriate caution while using
the rating.
The instrument-wise rating actions are:
-- INR120 mil. Fund-based working capital limit (Long-term/Short
term) downgraded with IND D (ISSUER NOT COOPERATING) rating;
and
-- INR3.29 mil. Term loan (Long-term) due on May 2020 downgraded
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
the best available information
KEY RATING DRIVERS
The downgrade reflects GLPPL's delay in repayment of term loan and
funded interest term loan, and continuous overutilization of the
fund-based working capital limits and non-payment of its interest.
The account has been categorized as a non-performing asset since
December 29, 2020, although, Ind-Ra was informed about this by the
lender on July 14, 2021.
COMPANY PROFILE
Established in 2011, GLPPL processes raw wheat grains to produce
whole wheat flour and refined flour. Its manufacturing facility is
located in Aurangabad, Maharashtra.
GX INDIA PRIVATE: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: GX India Private Limited
Registered office:
L-19A, 2nd Floor
Malviya Nagar
South Delhi
Delhi 110017
India
Address other than R/o where all or any
books of account and papers are maintained:
Unit No. 401, 4th Floor
JMD Regent Plaza
Near Indigo Guru
Dronacharya Metro Station
MG Road Gurgaon 122001
Haryana, India
Insolvency Commencement Date: July 7, 2021
Court: National Company Law Tribunal, New Delhi Bench-IV
Estimated date of closure of
insolvency resolution process: January 3, 2022
Insolvency professional: Mr. Satyendra Sharma
Interim Resolution
Professional: Mr. Satyendra Sharma
M-3, Block No. 51
Ist Floor, Anupam Plaza-II
Above Axis Bank
Sanjay Place
Agra 282002
E-mail: satyendrasirp@gmail.com
cirp.gxindia@gmail.com
Last date for
submission of claims: July 22, 2021
HANSRAJ MEMORIAL: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Hansraj
Memorial Educational Society (HMES) continues to remain in the
'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 19.90 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category
Short Term Bank 13.00 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 May 29, 2020, placed the
rating(s) of HMES under the 'issuer non-cooperating' category as
HMES 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. HMES continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 14, 2021, April 24, 2021, May 4, 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).
Hansraj Memorial Educational Society (HMES) is a part of Jalandhar
(Punjab) based Airwings Services group which is engaged in the
business of tours & travels and HR management. HMES was founded by
Late Mr. Hans Raj Bhatia under the Societies Registration Act of
India on February 1, 2000. Mr. Ajay Bhatia is the President of the
society and his brother, Mr. Deepak Bhatia, is the General
Secretary. HMES is currently operating three schools in the
Jalandhar city- Cambridge International school for girls (CISFG;
established in 2005), Cambridge International School Co-ed (CISC;
established in 2008) and Cambridge International (CISFG;
established in 2005), Cambridge International School Co-ed (CISC;
established in 2008) and Cambridge International Foundation School
(CIFS; established in 2012) and is setting up a new school in
Mohali (Punjab). The schools are affiliated to CBSE (Central Board
of Secondary Education) and are ISO-9001:2008 accredited.
JAYALAKSHMI COTTON: CARE Cuts Rating on INR9.45cr Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Jayalakshmi Cotton Traders (JCT), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.45 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 15, 2020, placed the
rating(s) of JCT under the 'issuer non-cooperating' category as JCT
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. JCT continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
March 31, 2021, April 10, 2021, and April 20, 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 assigned to the bank facilities of JCT have been
revised on account of non-availability of requisite information.
Jayalakshmi Cotton Traders (JCT) is an Andhra Pradesh based firm,
which was established in 1992 by Mr. B .Brahmananda Reddy and his
family members. The firm is engaged in trading of cotton lint and
cotton seeds. The firm purchases cotton kappas from the local
farmers and does the ginning and pressing activity at its associate
firm Sri Koteswara Cotton Trading Company. The firm also purchases
cotton lint and cotton seeds from Cotton Corporation of India (CCI)
and local traders. JCT majorly sells cotton lint to Ramabhadra
Industries Private Limited (Tanuku, Andhra Pradesh) and PVR
Spinning and Weaving Limited (Tanuku, Andhra Pradesh) and sells
cotton seeds to the oil mills. The firm has customer base in Andhra
Pradesh, Telangana and Tamil Nadu. The firm has achieved total
operating income of INR58.13 crore and PAT of INR0.46 crore in
FY17.
JAYCEE CASTALLOYS: CARE Lowers Rating on INR16.41cr Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Jaycee Castalloys Private Limited (JCP), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 16.41 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category and
Revised from CARE BB-
Detailed Rationale & Key Rating Drivers
CARE had, vide its press release dated May 15, 2020, placed the
rating(s) of JCP under the 'issuer non-cooperating' category as JCP
had failed to provide information for monitoring of the rating as
agreed to in its Rating Agreement. JCP continues to be
non-cooperative despite repeated requests for submission of
information through emails, phone calls and emails dated April 20,
2021, April 10, 2021 and March 31, 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).
The rating has been revised on account of non-availability of
requisite information due to non-cooperation by JCP 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 rating continues to remain constrained
owing to modest scale of operations, leveraged capital structure,
susceptibility of margins to fluctuations in raw material prices
and presence in a highly fragmented and competitive industry. The
rating, however, draws comfort from experienced promoters in auto
ancillary industry, moderate profitability margins, and moderate
debt coverage indicators.
Detailed description of the key rating drivers
At the time of last rating on May 15, 2020, the following were the
rating strengths and weaknesses:
(Updated for the information available from the Registrar of
Companies).
Key Rating Weaknesses
* Modest scale of operations: The total operating income of the
company increased form INR96.37 crore in FY19 (refers to the period
April 1 to March 31) to INR100.02 crore in FY20 on account of
increased demand from existing clients. However, the scale of
operations continues to remain modest. The modest scale of
operations limits the company's financial flexibility in time of
stress and deprives it of scale benefits.
* Leveraged capital structure: The capital structure of the company
stood leveraged marked by overall gearing ratio of 3.31x as on
March 31, 2020. (PY: 5.20x as of March 31, 2019). The gearing is
high on account of higher reliance on external borrowing.
* Susceptibility of margins to fluctuations in raw material prices
The main raw materials of the company are pig iron and steel scrap
etc. whose prices depend on the fortunes of iron and steel
industry. The prices of steel and iron are driven by the
international prices which had been volatile in past. Raw material
cost has always been a major contributor to total operating cost in
past three years thereby making profitability sensitive to raw
material prices mainly. Thus, any adverse change in the prices of
the raw material may affect the profitability margins of the
company.
* Presence in a highly fragmented and competitive industry: The
auto ancillary industry is fragmented with a significant number of
small and regional players along with large established players.
Further, competition is intensifying due to the entry of foreign
players with technical and business collaboration with other big
Indian players. JCP also faces competition from several small
players in unorganized segment which restricts the margins.
Key Rating Strengths
* Experienced promoters in auto ancillary industry: JCP is engaged
in the business of manufacturing automotive parts for around one
and a half decades. The company is currently being managed by Mr.
Satish Kumar Aggarwal and Mr. Gautam Aggarwal who have rich
experience in the auto ancillary industry mainly through their
association with JCP only. This has led to better understanding of
the market and establishment of strong relationships with suppliers
as well as customers. Furthermore, directors are supported by a
team of experienced and qualified professionals having varied
experience in technical, finance and marketing fields of business.
* Moderate profitability margins: The profitability margins of the
company stood moderate marked by PBILDT margin and PAT margin of
12.84% and 3.61% respectively in FY20. (PY: 10.89% and 0.74%
respectively).
* Moderate debt coverage indicators: The debt coverage indicators
of the company stood moderate marked by total debt to GCA ratio of
4.81x for FY20 and interest coverage ratio of 3.12x in FY20. (PY:
6.44x and 2.58x respectively)
Jaycee Castalloys Private Limited (JCP) was incorporated as a
private limited company in 2010. The company is engaged in
manufacturing of automotive components for two-wheelers and
tractors such as brake housing, clutch housing, trumpet housing,
brackets, etc. at its manufacturing unit situated in Bahadurgarh,
Haryana having an installed capacity of manufacturing 10,000 metric
tonnes of auto components per annum. JCP sells its products
domestically to various OEMs (Original Equipment Manufacturers).
KAMA METAL: CRISIL Lowers Rating on INR7.75cr Cash Loan to D
------------------------------------------------------------
CRISIL Ratings has downgraded the rating of Kama Metal and Alloys
Private Limited (KMPL) to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B+/Stable Issuer Not Cooperating' as the company has faced
stretched liquidity position and has delayed in servicing of term
debt-obligations as per best available information.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.75 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Proposed Long Term 0.92 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
Rupee Term Loan 2.33 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with KMPL for
obtaining information through letters and emails dated February 12,
2020 and August 15, 2020 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such
non-cooperation by a rated entity may be a result of deterioration
in its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL Ratings believes that rating action on KMPL is
consistent with 'Assessing Information Adequacy Risk'. CRISIL
Ratings has downgraded the rating to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as
company has faced stretched liquidity position and has delayed in
servicing of term debt-obligations as per best available
information.
Incorporated in 2008, KMPL operates an ingot manufacturing unit as
well as rolling division (Key products include MS pipes and flats).
KMPL has ingots manufacturing capacity of 35000 MTPA and rolling
capacity of 30000 MTPA.
KARAVALI FREEZERS: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Karavali
Freezers & Exporters' (KFE) Long-Term Issuer Rating to 'IND D
(ISSUER NOT COOPERATING)' from 'IND BB-(ISSUER NOT COOPERATING)'.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is based on the best available information. Therefore, investors
and other users are advised to take appropriate caution while using
the rating.
The instrument-wise rating action is:
-- INR50.50 mil. Fund-based working capital limits (Long-/Short-
term) downgraded with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information.
KEY RATING DRIVERS
The downgrade reflects KFE's account being categorized as a
non-performing asset by its lenders on June 30, 2021, due to
continued delays in the servicing of its fund-based working capital
limits. Ind-Ra was informed of this categorization by the lender on
July 14, 2021.
COMPANY PROFILE
Incorporated in 2010 as a partnership entity, KFE processes seafood
at its plant in Udupi Taluk in Karnataka.
MAGNUM AVIATION: CARE Lowers Rating on INR9.50cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Magnum Aviation Private Limited (MAPL), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 9.50 CARE D; ISSUER NOT COOPERATING
Facilities Rating continues to remain
Under ISSUER NOT COOPERATING
Category and Revised from
CARE B-; Stable
Short Term Bank 8.50 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 March 30, 2021, placed the
rating(s) of MAPL under the 'issuer non-cooperating' category as
MAPL 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. MAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated March 16,
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 MAPL have been
revised on account of on-going delays in debt servicing recognized
from publicly available information.
Incorporated in 2002, Magnum Aviation Private Limited (MAPL) is
promoted by Mr. Vishal Varshnei and Ms Manvi Varshnei. MAPL is
engaged in the trading of aircraft spares such as aircraft wheels,
brakes, avionics, propeller hoses, lubricants etc. Additionally,
the company also provides Maintenance, Repair & Overhaul (MRO)
services for the aircraft components and has its service facility
located in Special Economic Zone of Noida, Uttar Pradesh. MAPL
caters to the need of both civil and military aircraft customers in
overseas markets as well as in domestic markets. The company has
collaborated with various original equipment manufacturers (OEM's)
of various aircraft components for the procurement of the products.
The company procures the products directly from these OEMs and is
an authorized distributor for the supply and service of their
products.
MAHALAXMI INDUSTRIES: CARE Cuts Rating on INR6.76cr Loan to B-
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Mahalaxmi Industries (Nagpur) (MI), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.76 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 26, 2020, placed the
rating(s) of MI under the 'issuer non-cooperating' category as MI
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. MI continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 11, 2021, April 21, 2021, May 1, 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
requisite information.
Nagpur (Maharashtra) based MI was established as a proprietorship
concern in the year 2016. The entity is engaged in the business of
cotton ginning and pressing at its manufacturing facility located
at Nagpur, Maharashtra, having an installed capacity to gin and
press 24,000 bales per annum. MI procures raw material, that is raw
cotton from the local farmers based out in Nagpur and supplies the
finished products to spinning mills and oil mills located in and
around Maharashtra.
MEDCHEM LABS: CARE Lowers Rating on INR6.25cr LT Loan to B-
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Medchem Labs (ML), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 6.25 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 19, 2020, placed the
rating(s) of ML under the 'issuer noncooperating' category as ML
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. ML continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated April 4,
2021, April 14, 2021, April 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).
Medchem Labs (ML) was established in April 2016. The registered &
corporate office of the firm is located at Narapur Taluk, Medak
Dist., Telangana. The firm promoted by Mr. A Mohan Krishna & Mr. G
Venkateswara Rao, (directors of Medchem Pharma Private Limited) and
Mr. A. Anantha Krishna Rao (proprietor of Shankar Impex) is engaged
in manufacturing Active Pharmaceutical Ingredients (API).
Presently, ML has installed 380 Kgs per day capacity API plant in
Telangana state. The plant is constructed on a 2491.82 sq. yards of
land at the mentioned location. The commencement of production
started in June 2017. The various licenses and approvals such as
state pollution control, VAT, CST, clearance from Gram Panchayat,
factories establishment licenses, power connection, approval from
fire station and registration with labor inspector has been issued.
MINERVA POULTRY: CARE Keeps B- Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Minerva
Poultry Private Limited (MPPL) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 3.71 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 24, 2020, placed the
ratings of MPPL under the 'issuer non-cooperating' category as MPPL
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. MPPL continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and an email dated March
10, 2021, March 20, 2021, March 30, 2021 among others.
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.
Incorporated in December 1991, Minerva Poultry Private Limited
(MPPL) was promoted by the Meher family of Bolangir (Odisha). The
company is engaged in the business of sale of layer birds and eggs.
MPPL has started its commercial operations from the year 1993.
MURUGAR SPINNING: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sri Murugar
Spinning Mill's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR21.3 mil. Term loan due on March 2024 migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating;
-- INR224.7 mil. Fund-based facilities migrated to non-
cooperating category with IND BB- (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR24 mil. Non fund-based facilities migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last assigned on
June 22, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Sri Murugar Spinning Mill, established in 1997, manufactures cotton
yarn, polyester yarn and grey cloth with a capacity of 33,500
spindles.
OM TRANSPORT: CRISIL Lowers Rating on INR5cr Term Loan to B
-----------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of OM
Transport (OT) to 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Bank 10 CRISIL A4 (ISSUER NOT
Guarantee COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING)
Proposed Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with OT for
obtaining information through letters and emails dated December 18,
2020 and June 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of OT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on OT is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of OT
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.
Incorporated in April 2005, Om Transport is Uttar Pradesh based
firm, which is engaged in providing road transportation services to
companies on contract basis. It provides transport service of coal.
The firm gets contracts either through Northern Coalfields Limited
(NCL) or direct contracts from private companies. It is a family
owned business, promoted by Mr. Om Prakash Pandey, Mrs. Shakuntala
Devi, Mr. Manoj Pandey, and Mr. Atul Pandey.
ORBIT EXPORTS: CRISIL Lowers Rating on INR23.5cr Cash Loan to B
---------------------------------------------------------------
CRISIL Ratings has revised its ratings on the bank facilities of
Orbit Exports Limited (OEL) to 'CRISIL B/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A2 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Cash Credit 23.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
Foreign Exchange 2.55 CRISIL A4 (ISSUER NOT
Forward COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING')
Rupee Term Loan 30.78 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been following up with OEL for obtaining
information through letters and emails dated January 30, 2021, and
June 9, 2021, among others, apart from telephonic communication.
However, the company continues to be non-cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on the strategic intent
of the company. This restricts CRISIL Rating's ability to take a
forward-looking view on its credit quality. CRISIL Ratings believes
that the rating action is consistent with 'Assessing Information
Adequacy Risk'. Therefore, owing to inadequate information and lack
of management cooperation, CRISIL Ratings has revised its ratings
on the bank facilities to 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB+/Stable/CRISIL A2 Issuer Not
Cooperating'.
OEL, incorporated in 1983 as Orbit Exports Pvt Ltd was
reconstituted as a public limited company in 1994. It is currently
headed by Mr Pankaj Seth and his wife, Ms Anisha Seth, who acquired
the company in 2004. OEL is listed on the Bombay Stock Exchange and
the National Stock Exchange. It manufactures and exports fancy
fabrics, and operates across multiple verticals in the value-added
fabric market, from women's apparel to Christmas crafts and home
decor, with special interests in occasion-specific fabrics and
finished products. The company is based in Mumbai with
manufacturing facilities in Surat, Gujarat, and in Bhiwandi,
Maharashtra.
PAUL & COMPANY: CARE Keeps B- Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Paul &
Company (PC) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 11.34 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 Paul & Company, placed the
rating of PC under the 'issuer noncooperating' category as ABC 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. Paul & Company continues to be
noncooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated April 3,
2021, April 13, 2021 and April 23, 2021 among others.
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.
Paul & Company (PC) was established in 1978 by Mr. Narayan Paul,
Ms. Atrayee Paul and Mrs. Mina Paul. Since its establishment the
firm is engaged in the business of manufacturing of auto parts at
East Singhbhum, Jharkhand.
PRAKASH ELECTRICAL: CARE Lowers Rating on INR10cr Loan to B-
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Prakash Electrical Engineering Corporation (PEEC), as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 10.00 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 26, 2020, placed the
rating(s) of PEEC under the 'issuer non-cooperating' category as
PEEC 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. PEEC continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
April 3, 2021, April 13, 2021, April 23, 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
requisite information.
PEEC is a proprietorship concern established in the year 1998 by
Mr. Prakash Dadasaheb Deshmukh. The firm is registered as a Class-A
Electrical Contractor by PWD (Public Works Department) in the State
of Maharashtra. The firm undertakes supply, Installation, Testing
and Commissioning (SITC) of High tension and low tension (HT/LT)
Lines, transformers, electric substations, house wiring, industrial
wiring etc.
RADHAMANI TEXTILES: CRISIL Withdraws B Rating on INR62cr Loans
--------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Radhamani Textiles Private
Limited (RTPL; part of Radhamani Group) to 'CRISIL B/Stable Issuer
not cooperating'. CRISIL Ratings has withdrawn its rating on bank
facility of RTPL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL Ratings is migrating the rating on the long term bank
facilities of RTPL from 'CRISIL B/Stable Issuer Not Cooperating' to
'CRISIL B/Stable'. The rating action is in line with CRISIL
Ratings' policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Packing Credit 50 CRISIL B/Stable (Migrated from
'CRISIL B/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Analytical Approach
For arriving at its rating, CRISIL Ratings has combined the
business and financial risk profiles of RTPL and Radhamani Exports
Ltd (REL). This is because the two companies, together referred to
as the Radhamani group, are in the same line of business with
operational synergies, and have a common management.
The Radhamani group consists of Radhamani Exports Private Limited
(REPL) and RTPL. REL was originally set up in 1996 as a private
limited company by Mr. M L Poddar and family; it was reconstituted
as a deemed public limited company in 1998. The company
manufactures and sells ready-made garments in the domestic as well
as international markets. RTPL commenced operations in April 2011
for export sales and currently involved in domestic as well as
export markets. Currently, the group companies are managed Mr.
Manish Poddar and Mr. Mukesh Poddar.
RATHINAM ARUMUGAM: Ind-Ra Keeps BB Loan Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Rathinam
Arumugam Research And Educational Foundation's bank loans' rating
in the non-cooperating category. The issuer did not participate in
the rating exercise despite continuous requests and follow-ups by
the agency. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
continue to appear as 'IND BB (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR163 mil. Bank loans maintained in non-cooperating category
with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR20 mil. Fund-based working capital limits maintained in
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 10, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in January 2009, Rathinam Arumugam Research And
Educational Foundation manages a school, an engineering college and
an architecture college (established in the academic year 2017-18).
It also operates a techno park with leased area of 78,982 square
feet, which is fully occupied by five tenants.
SANTKRUPA MILK: CARE Keeps B+ Debt Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Santkrupa
Milk and Milk Products (SMMP) continues to remain in the 'Issuer
Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 5.61 CARE B+; Stable; ISSUER NOT
Facilities COOPERATING; Rating continues
to remain under ISSUER NOT
COOPERATING category
Detailed Rationale & Key Rating Drivers
CARE had, vide press release dated May 27, 2020, had placed the
ratings of SMMP under the 'Issuer Non-cooperating' category as the
firm had failed to provide information for monitoring of the
ratings and had not paid the surveillance fees for the rating
exercise as agreed to in its rating agreement. SMMP continues to be
non-cooperative despite requests for submission of information
through phone calls and e-mails dated April 12, 2021, April 22,
2021 and 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.
SMMP is a Satara (Maharashtra) based firm, incorporated in May 16,
2006. The firm is engaged in processing of milk and milk-based
products viz. flavored milk, paneer, butter, ghee, curd and lassi
at its facilities located at Aljapur in Satara.
SARASWATI TRADING: CRISIL Withdraws B+ Rating on INR11.5cr Loans
----------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Shri Saraswati Trading Co.
(SSTC) to 'CRISIL B+/Stable Issuer Not Cooperating'. CRISIL Ratings
has withdrawn its rating on bank facility of SSTC following a
request from the company and on receipt of a 'no dues certificate'
from the banker. Consequently, CRISIL Ratings is migrating the
rating on the long-term bank facilities of SSTC from 'CRISIL
B+/Stable/Issuer Not Cooperating to 'CRISIL B+/Stable'. The rating
action is in line with CRISIL Ratings' policy on withdrawal of bank
loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL B+/Stable (Migrated from
'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
Warehouse 10.0 CRISIL B+/Stable (Migrated from
Receipts 'CRISIL B+/Stable ISSUER NOT
COOPERATING'; Rating Withdrawn)
SSTC formed as a proprietorship firm in 2012 by Ms. Seema Rani.
During the year, firm has started processing of rice through its
leased facility located at Mansa, Punjab with milling capacity of 1
metric tonne per hour (MTPH). Prior that SSTC was into trading of
rice and rice bran etc. till 2014-15.
SATYANARAYANA RAW: CRISIL Lowers Rating on INR5.85cr Loan to B
--------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Sri
Sri Satyanarayana Raw and Boiled Rice Mill (SRBRM) to 'CRISIL
B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.85 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable' ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with Sri Sri
Satyanarayana Raw and Boiled Rice Mill (SRBRM) for obtaining
information through letters and emails dated January 30, 2021 and
June 9, 2021 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SRBRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SRBRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRBRM Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.
Set up in 1984, SRBRM mills and processes paddy into rice, rice
bran, broken rice, and husk in East Godavari (Andhra Pradesh). The
firm is promoted by Mr. R Krishna Murthy and Mr. V Srinivasa Rao.
SHAKTIMAN BIO: CARE Keeps B- Debt Rating in Not Cooperating
-----------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shaktiman
Bio Agro Industries PRivate Limited (SPL) continues to remain in
the 'Issuer Not Cooperating' category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.78 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 1, 2020 placed the
rating(s) of SPL under the 'issuer non-cooperating' category as SPL
had failed to provide information for monitoring of the rating for
the rating exercise as agreed to in its Rating Agreement. SPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and emails
dated June 30, 2021, May 07, 2021, and 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. 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.
Yamuna Nagar (Haryana) based, Shaktiman Bio Agro Industries Private
Limited (SPL) was incorporated in 2007 as a private limited
company. The company is primarily engaged in trading of gunny bags
and Poly Propylene (PP) woven bags which find its application in
packaging industry. The company is also engaged in manufacturing of
corrugated boxes at its facility located in Yamuna Nagar, Haryana
with total installed capacity of 5400 ton per annum as on December
31, 2017.
SHUBHSHREE ENGINEERING: Ind-Ra Moves BB+ Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shubhshree
Engineering and Constructions Private Limited's Long-Term Issuer
Rating to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using these ratings. The
rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR60 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR250 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR20 mil. Proposed fund-based working capital limits* is
withdrawn.
*The ratings have been withdrawn since the instrument was
outstanding for more than 180 days
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 17, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in July 2013, Shubhshree Engineering and Constructions
is engaged in industrial project construction, planning and
implementation, construction management and project commissioning
in Maharashtra Haryana and Rajasthan.
SIR BIOTECH: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Sir Biotech
India Limited's (SBTIL) Long-Term Issuer Rating to 'IND D (ISSUER
NOT COOPERATING)' from 'IND BB+ (ISSUER NOT COOPERATING)'. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Thus, the rating
is based on the best available information. Therefore, investors
and other users are advised to take appropriate caution while using
these ratings.
The instrument-wise rating actions are:
-- INR15 mil. Term loan-1 (long-term) due on March 2018
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR506.25 mil. Term loan-2 (long-term) due on March 2028
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR568.75 mil. Term loan-3 (long-term) due on March 2028
downgraded with IND D (ISSUER NOT COOPERATING) rating;
-- INR325.0 mil. Term loan-4 (long-term) due on March 2027
downgraded with IND D (ISSUER NOT COOPERATING) rating; and
-- INR150 mil. Non-fund-based facility (short-term) downgraded
with IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information
KEY RATING DRIVERS
The downgrade reflects SBTIL's delays in debt servicing during
November 2020-February 2021, the details of which are unavailable.
RATING SENSITIVITIES
Positive: Timely debt servicing for three consecutive months could
be positive for the ratings.
COMPANY PROFILE
Incorporated in 1995, SBTIL is engaged in the trading of iron ore,
plastic polymer, raw cotton, copper rods, alkaline battery and
metal products, and the processing of peanuts. It is also engaged
in the hospitality and real estate businesses.
SONI HOSPITALS: CRISIL Withdraws B Rating on INR48.94cr Loan
------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Soni Hospitals Private
Limited (SHPL) to 'CRISIL B/Stable Issuer not cooperating'. CRISIL
Ratings has withdrawn its rating on bank facility of SHPL following
a request from the company. Consequently, CRISIL Ratings is
migrating the rating on bank facilities of SHPL from 'CRISIL
B/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'. The rating
action is in line with CRISIL Ratings' policy on withdrawal of bank
loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 48.94 CRISIL B/Stable (Migrated
Bank Loan Facility from 'CRISIL B/Stable ISSUER
NOT COOPERATING; Rating
Withdrawn)
Incorporated in 2003 and promoted by Dr. B R Soni, SHPL is a part
of the Soni group of hospitals and currently runs a nursing
college. It has also entered into a public-private partnership with
the Government of Rajasthan to provide CT and MRI scan facilities
at SMS Medical College (one of the largest government hospitals in
Jaipur), where it has installed four scanning machines.
TIRUPUR TEXTILES: CRISIL Withdraws D Rating on INR20cr Loan
-----------------------------------------------------------
CRISIL Ratings has withdrawn its rating on the bank facilities of
Tirupur Textiles Private Limited (TTPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL Rating's policy on
withdrawal of its rating on bank loan facilities.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Corporate Loan 20 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Foreign Bill 10 CRISIL D (ISSUER NOT
Purchase COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Foreign Letter 0.1 CRISIL D (ISSUER NOT
of Credit COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Inland Guarantees 0.25 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Inland/Import 25.00 CRISIL D (ISSUER NOT
Letter of Credit COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Long Term Loan 37.07 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Open Cash Credit 15 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
Packing Credit 10 CRISIL D (ISSUER NOT
COOPERATING; Migrated from
'CRISIL D'; Rating Withdrawn)
CRISIL Ratings has been consistently following up with TTPL for
obtaining information through letters and emails dated May 31, 2021
and June 30, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TTPL. This restricts CRISIL
Ratings' ability to take a forward looking view on the credit
quality of the entity. CRISIL Ratings believes that rating action
on TTPL is consistent with 'Assessing Information Adequacy Risk'.
CRISIL Ratings has migrated the ratings on the bank facilities of
TTPL to 'CRISIL D/CRISIL D Issuer not cooperating'.
TTPL was set up in 1956 by Mr. G T Krishnaswamy Naidu and his son,
Mr. K Sivasubramaniam; it manufactures hosiery cotton yarn at its
facility in Tirupur (Tamil Nadu).
TRINA NRE: CRISIL Lowers Rating on INR5cr LT Loan to B
------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Trina
NRE Transportation Limited (TNRE) to 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating' from 'CRISIL BB-/Stable/CRISIL A4+ Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.8 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING)
Bill Discounting 1.25 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
Letter of Credit 1.95 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING)
Overdraft Facility 2.00 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING)
Packing Credit 3.00 CRISIL A4 (ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+ ISSUER NOT
COOPERATING)
Proposed Long Term 5.00 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with TNRE for
obtaining information through letters and emails dated December 18,
2020 and June 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TNRE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TNRE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TNRE revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB-/Stable/CRISIL A4+ Issuer Not Cooperating'.
Established in 1992 as an export-oriented unit for manufacturing
precision custom gears for the marine, offshore, locomotive,
mining, wind energy, transportation, and construction industries,
Trina, currently manufactures locomotive traction gears and pinions
for railroads. It derives the bulk of its operating revenue from
exports.
YORK PRINT: CARE Keeps B- Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of York Print
and Pack (YPP) continues to remain in the 'Issuer Not Cooperating'
category.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Bank 7.48 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 15, 2020, placed the
rating of YYP under the 'issuer noncooperating' category as York
Print and Pack 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. York Print and Pack
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and email
dated April 10, 2021, April 20, 2021 and April 30, 2021 among
others.
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.
Established in April 1996, York Print and Pack (YPP) was promoted
by Mr. Milan Kumar Mehra, Mr. Gautam Tendon, Mr. Manav Mehra, Mr.
Atin Mehra, Mr. Ankit Mehra and Ms. Anuja Mehra. The firm has been
engaged in manufacturing and supplying of printed folded cartons
and Corrugated Fibreboard Carton (CFC) boxes, used for packaging
products. The firm manufactures laminated packets/cartoons as per
client demand and their specification. The manufacturing facility
of the firm is located at Kolkata, West Bengal. The firm procures
its entire raw materials from domestic market whereas it sells its
products both in the domestic as well as international market.
=================
I N D O N E S I A
=================
AGUNG PODOMORO: Moody's Lowers CFR to Caa1 & 2024 Notes to Caa1
---------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Agung Podomoro Land Tbk (P.T.) to Caa1 from B3.
At the same time, Moody's has downgraded the backed senior
unsecured rating of the 2024 notes issued by APL Realty Holdings
Pte. Ltd. -- a wholly-owned subsidiary of Agung Podomoro Land -- to
Caa1 from B3. The notes are guaranteed by Agung Podomoro Land and
some of its subsidiaries.
The outlook on all ratings remains negative.
"The downgrade reflects our expectation that Agung Podomoro Land's
liquidity will be weak over the next 12-18 month, because the
company is reliant on asset sales and external funding to meet its
cash needs. We also view Agung Podomoro Land's capital structure to
be unsustainable, as indicated by its high leverage," says Jacintha
Poh, a Moody's Vice President and Senior Credit Officer.
"Agung Podomoro Land expects to complete the sale of an industrial
land and the sale of its remaining stake in Central Park Mall
within 2021 but we expect uncertainties around the timely
completion of both asset sales given Indonesia's implementation of
emergency public-activity restrictions (PPKM) after a surge in the
country's coronavirus cases," adds Poh.
The negative rating outlook reflects Agung Podomoro Land's high
refinancing risk over the next 12-18 months.
RATINGS RATIONALE
In the first half of 2021, Agung Podomoro Land generated IDR1
trillion of marketing sales. This level of marketing sales is on
track to meet Moody's full-year estimate of around IDR1.6 trillion
but behind the company's target of IDR2 trillion-IDR2.5 trillion.
Agung Podomoro Land's H1 2021 marketing sales significantly
outpaced the IDR532 billion recorded in the same period last year.
However, the contribution from these sales to the company's revenue
and operating cash flow is small compared with that from the sale
of an industrial land and the sale of the company's remaining stake
in Central Park Mall. APL expects to complete both the asset sales
within 2021, but Moody's expects uncertainties around the timely
completion of the sales because of Indonesia's implementation of
emergency public-activity restrictions (PPKM) following a surge in
coronavirus cases.
In September 2020, Agung Podomoro Land's 55%-owned subsidiary, PT
Buana Makmur Indah signed a conditional sale and purchase agreement
with PT CFCity Tangerang Investment for the sale of industrial land
located in Karawang, West Java that is to be completed by September
2021[1][2]. Agung Podomoro Land is also in discussion with buyers
for the sale of its remaining stake in Central Park Mall and
targets to complete the sale before year-end 2021.
As a result of these developments, Moody's expects Agung Podomoro
Land's liquidity to be weak over the next 12-18 months. As of March
31, 2021, the company had cash and cash equivalents of IDR858
billion, which is insufficient to cover its large debt maturity of
around IDR2.9 trillion over the rest of 2021 and 2022. At the same
time, Moody's estimates Agung Podomoro Land will incur operating
cash burn of around IDR850 billion, if the company's planned asset
sales are not executed, and around IDR1.2 trillion of capital
spending. Consequently, Agung Podomoro Land faces high refinancing
risk.
As of March 31, 2021, the company had (1) an IDR350 billion
medium-term note issued by its 58%-owned subsidiary, PT Sinar
Menara Deli maturing in August 2021, (2) a SGD172.8 million secured
term loan facility with Guthrie Venture Pte. Ltd. maturing in
December 2022, and (3) around IDR744 billion of amortizing payments
on its bank loans over the rest of 2021 and 2022. Agung Podomoro
Land is currently in discussion to extend the maturity of its
medium-term note.
Moody's expects Agung Podomoro Land's operating performance across
its retail malls and hotels will stay weak in 2021 and a recovery
to pre-pandemic levels will not be likely until 2023, hence the
company's revenue from its investment properties in 2021 will be
broadly similar to 2020's level. However, Agung Podomoro Land's
revenue from its property development business could fall
significantly without the contribution from asset sales.
Consequently, Moody's expects Agung Podomoro Land's credit metrics
will weaken over the next 12-18 months. Leverage, as measured by
adjusted debt/homebuilding EBITDA will be more than 10x while
homebuilding EBIT interest coverage will be less than 1x without
the asset sales. For the 12 months ended March 31, 2021, the
company recorded adjusted debt/homebuilding EBITDA of 7.2x and
homebuilding EBIT/interest expense of 1.0x.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered Agung Podomoro Land's weak financial
management. The company's ownership is also concentrated in its
founder and his family, but this risk is partially mitigated by the
oversight exercised through independent board directors.
Furthermore, the founder has shown support for the company by
injecting funds in times of stress.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, a rating upgrade is unlikely over the
next 12-18 months. Nevertheless, the outlook could return to stable
if Agung Podomoro Land improves its liquidity by addressing the
refinancing risk of its debt maturities over the next 12-18 months
and continues to execute its core marketing sales, such that its
adjusted homebuilding EBIT/interest expense stays above 1.0x.
The rating could be downgraded if there is a likelihood that Agung
Podomoro Land is unable to meet its interest payments or address
its debt maturities over the next 12-18 months.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Agung Podomoro Land Tbk (P.T.) is an integrated property developer
and listed on the Indonesia Stock Exchange in 2010. The company and
its subsidiaries are engaged in the development, management and
operation of apartments, houses, shopping centers, office towers
and hotel properties. It is controlled by Mr. Trihatma Kusuma
Haliman and family, who held around 86% stake in the company at
June 30, 2021.
=====================
N E W Z E A L A N D
=====================
VILLA MARIA: Owner Owes NZD212MM to Bankers, Receivers Report Says
------------------------------------------------------------------
Radio New Zealand reports that the company that owns the wine giant
Villa Maria owes its bankers NZD212 million, a first receivers
report said.
Rabobank and ANZ appointed Calibre Partners as receivers of the
holding company, FFWL, in May.
At the time, one of the receivers, Brendon Gibson stressed that
Villa Maria's domestic and international business, which had been
operating for 60 years, remained in good health, RNZ relates.
The wine company had been going through a well-publicised process
to find a new investor and placing the FFWL into receivership was a
necessary step to speed up that process, Gibson told RNZ in May.
The first receivers report, released on July 16, said the company
owed its bankers NZD211.9 million, RNZ discloses.
Money owed to the tax department was not yet known, and the report
did not disclose the value of its assets because of commercial
sensitivity, RNZ notes.
"In the lead up to our appointment, the [FFWL] and [Villa Maria]
came under pressure due to issues with the Group's capital
structure," the report, as cited by RNZ, said.
"[FFWL] had been running processes to raise equity and sell some
land in MÄngere, Auckland that is surplus to its core operating
requirements."
"Since our appointment, we have continued with the existing sales
process for Villa Maria," the report said.
According to RNZ, the apple exportee Scales Corporation was
initially among the interested parties vying to buy the company but
had since ruled itself out of the bidding war.
Among the other suitors rumoured to be in the running to take a
stake in Villa Maria was the French beverage giant Pernod Ricard,
Australian wine company Accolade Wines, and US beverage company
Constellation Brands.
A valuation of about NZD200 million had been placed on the company,
which is controlled by industry veterans, the Fistonich family.
The company's brands include Villa Maria, Vidal, and Esk Valley.
=================
S I N G A P O R E
=================
CHENGDU INDUSTRIES: Creditors' Proofs of Debt Due Aug. 16
---------------------------------------------------------
Creditors of Chengdu Industries Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Aug. 16,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on July 9, 2021.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO Advisory
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
MIDAS HOLDINGS: Creditors' Meetings Set for July 23
---------------------------------------------------
Midas Holdings Limited will hold a meeting for its creditors on
July 23, 2021, at 3:00 p.m., via videoconference.
Agenda of the meeting includes:
a. to provide creditors with an update on the status of
liquidation;
b. to approve Funding Proposal as defined in circular dated
July 16, 2021;
c. to appoint additional members to the Committee of
Inspection; and
d. Any other business
The company's liquidator is Yit Chee Wah of FTI Consulting
(Singapore).
NOVENA BOLIAN: Creditors' Proofs of Debt Due Aug. 16
----------------------------------------------------
Creditors of Novena Bolian Pte Ltd are required to file their
proofs of debt by Aug. 16, 2021, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on July 7, 2021.
The company's liquidators are:
Goh Yeow Kiang Victor
Khor Boon Hong
c/o Baker Tilly TFW LLP
600 North Bridge Road
#05-01 Parkview Square
Singapore 188778
PERFORMANCE IDEA: Creditors' Proofs of Debt Due Aug. 16
-------------------------------------------------------
Creditors of Performance Idea Services Pte Ltd and
Alltrafficnetwork Services Pte. Ltd (in voluntary liquidation) are
required to file their proofs of debt by Aug. 16, 2021, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on July 9, 2021.
The company's liquidators are:
Mr. Thio Khiaw Ping Kelvin
Ms. Chan Li Shan
c/o Ardent Corporate Recovery
30 Cecil Street
#15-08 Prudential Tower
Singapore 049712
*********
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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