/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210806.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 Friday, August 6, 2021, Vol. 24, No. 151 Headlines A U S T R A L I A AUTONOMOUS ENERGY: Second Creditors' Meeting Set for Aug. 12 BIG RED: Second Creditors' Meeting Set for Aug. 12 FIRSTMAC MORTGAGE 4: S&P Assigns B+ Rating on Class F Notes LD OPERATIONS: First Creditors' Meeting Set for Aug. 17 NEWOZ CONCRETING: First Creditors' Meeting Set for Aug. 13 QANTAS AIRWAYS: Idles 2,500 More Staff Amid COVID-19 Lockdowns C H I N A SUNING APPLIANCE: Sued by Creditors for $255 Million I N D I A ADHI PARASAKTHI: CARE Keeps B- Debt Rating in Not Cooperating ALIN CASHEWS: CARE Keeps D Debt Ratings in Not Cooperating ANJANI PIPES: CARE Keeps C Debt Rating in Not Cooperating BALWAN POULTRY: CARE Keeps D Debt Rating in Not Cooperating CHETAN ALLOYS: CARE Keeps C Debt Rating in Not Cooperating COOLTECH CONTAINERS: Insolvency Resolution Process Case Summary DARSHAN DEVELOPERS: Insolvency Resolution Process Case Summary DHARANI SUGARS: Insolvency Resolution Process Case Summary DHARTI DREDGING: CARE Keeps D Debt Ratings in Not Cooperating DOABA KHALSA: CARE Keeps D Debt Rating in Not Cooperating GANCO ENERGY: CARE Keeps D Debt Rating in Not Cooperating J K INTERNATIONAL: CARE Reaffirms D Rating on INR7.95cr LT Loan JAGAT AGROTECH: CARE Keeps B- Debt Rating in Not Cooperating K.J.M. RICE: CARE Moves B Debt Rating to Not Cooperating Category KOUSAI INVESTMENTS: First Creditors' Meeting Set for Aug. 13 KOYILI HOSPITAL: CARE Lowers Rating on INR19.82cr LT Loan to B- KUDU FABRICS: CARE Keeps B- Debt Rating in Not Cooperating MAITHAN ISPAT: CARE Keeps D Debt Ratings in Not Cooperating MALKANI PROPERTIES: CARE Lowers Rating on INR17cr Loan to B- MCNALLY SAYAJI: CARE Keeps D Debt Ratings in Not Cooperating OOPAL DIAMOND: CARE Lowers Rating on INR20cr LT Loan to B PALAPARTHI SUPER: CARE Keeps D Debt Rating in Not Cooperating PARASHAR COKE: CARE Keeps D Debt Rating in Not Cooperating PROVENTUS AGER: CARE Keeps D Debt Rating in Not Cooperating RAMNIKLAL & SONS: CARE Keeps D Debt Ratings in Not Cooperating SAKTHI PAPERS: CARE Keeps D Debt Ratings in Not Cooperating SAVITRIDEVI INDUSTRIES: CARE D Debt Rating in Not Cooperating SIGMA INDUSTRIAL: CARE Keeps D Debt Ratings in Not Cooperating SINDHANUR GANGAVATHI: CARE Keeps D Debt Rating in Not Cooperating SRINIVASA COTTON: CARE Keeps B- Debt Rating in Not Cooperating SUGANTHI EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating VEER ANJANAYA: CARE Keeps B- Debt Rating in Not Cooperating VODAFONE IDEA: Lenders Fret Over 'Too Big To Fail' Telco WHITE HOUSE: CARE Keeps D Debt Ratings in Not Cooperating ZUBIC LIFESCIENCE: CARE Keeps D Debt Rating in Not Cooperating I N D O N E S I A PT PERUSAHAAN PENGELOLA: Fitch Assigns FirstTime 'BB+' LT IDRs PT PERUSAHAAN PENGELOLA: S&P Assigns 'BB/B' ICRs, Outlook Negative J A P A N JAPAN AIRLINES: Posts JPY57.92BB Net Loss in April to June Quarter N E W Z E A L A N D AVANTI RMBS 2021-1: Fitch Assigns BB+(EXP) Rating on Class E Notes S I N G A P O R E ENVY ASSET: Court to Hear Wind-Up Petition on Aug. 16 FAR EAST ORCHARD: Net Loss Widens to SGD1.9MM in 1st HY 2021 FORTE ENGINEERING: Court to Hear Wind-Up Petition on Aug. 20 HEALTHPRO PTE: Tam Chee Chong Appointed as Provisional Liquidator MARBLE II PTE: Fitch Affirms 'BB' LT IDRs, Outlook Stable TESCO DIGITAL: Creditors' Proofs of Debt Due Sept. 3 - - - - - ================= A U S T R A L I A ================= AUTONOMOUS ENERGY: Second Creditors' Meeting Set for Aug. 12 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Autonomous Energy Pty Ltd has been set for Aug. 12, 2021, at 10:00 a.m. via virtual meeting. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Aug. 11, 2021, at 3:00 p.m. Mr. Jason Ireland, Mr. Jason Preston and Ms. Kathy Sozou of McGrathNicol were appointed as administrators of Autonomous Energy on July 8, 2021. BIG RED: Second Creditors' Meeting Set for Aug. 12 -------------------------------------------------- A second meeting of creditors in the proceedings of Big Red Constructions Pty Ltd has been set for Aug. 12, 2021, at 10:30 a.m. via online video conferencing. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Aug. 11, 2021, at 4:00 p.m. Gideon Isaac Rathner and Matthew Brian Sweeny of Lowe Lippmann were appointed as administrators of Big Red on July 8, 2021. FIRSTMAC MORTGAGE 4: S&P Assigns B+ Rating on Class F Notes ----------------------------------------------------------- S&P Global Ratings assigned preliminary ratings to seven of the eight classes of prime residential mortgage-backed securities (RMBS) to be issued by Firstmac Fiduciary Services Pty Ltd. as trustee for Firstmac Mortgage Funding Trust No.4 Series Eagle No.1. The preliminary ratings reflect the following factors. The credit risk of the underlying collateral portfolio and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support for the rated notes is provided by subordination, excess spread and lenders' mortgage insurance (LMI). The credit support provided to the rated notes is sufficient to cover the assumed losses at the applicable rating stress. S&P's assessment of credit risk takes into account Firstmac Ltd.'s (Firstmac's) underwriting standards and approval processes, which are consistent with industry-wide practices, and the strong servicing quality of Firstmac, and the support provided by the LMI policies on 4.5% of the portfolio. The rated notes can meet timely payment of interest--excluding the residual interest due on the class C, class D, class E, and class F notes--and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the LMI cover, the liquidity reserve, the principal draw function, the interest-rate swap, and the provision of an extraordinary expense reserve. S&P's analysis is on the basis that the notes are fully redeemed by their legal final maturity date and S&P does not assume the notes are called at or beyond the call date. S&P said, "Our ratings also take into account the counterparty exposure to Westpac Banking Corp. (Westpac) as bank account provider and interest-rate swap provider. Westpac will provide an interest-rate swap to hedge the interest-rate risk between any fixed-rate mortgage loans and the floating-rate obligations on the notes. The transaction documents for the swap and bank account include downgrade language consistent with S&P Global Ratings' counterparty criteria. "We also have factored into our ratings the legal structure of the trust, which is established as a special-purpose entity and meets our criteria for insolvency remoteness. "In 2020, we updated our outlook assumptions for Australian RMBS in response to changing macroeconomic conditions as a result of the COVID-19 outbreak. As of June 21, 2021, there are no borrowers with COVID-19-related hardship arrangements present within the pool." Preliminary Ratings Assigned Firstmac Mortgage Funding Trust No.4 Series Eagle No.1 Class A-1, A$240.00 million: AAA (sf) Class A-2, A$30.00 million: AAA (sf) Class B, A$12.60 million: AA (sf) Class C, A$6.60 million: A (sf) Class D, A$4.20 million: BBB (sf) Class E, A$2.40 million: BB (sf) Class F, A$1.20 million: B+ (sf) Class G, A$3.00 million: Not rated LD OPERATIONS: First Creditors' Meeting Set for Aug. 17 ------------------------------------------------------- A first meeting of the creditors in the proceedings of LD Operations Pty Ltd will be held on Aug. 17, 2021, at 11:00 a.m. via virtual meeting technology. Michael Gregory Jones of Jones Partners was appointed as administrator of LD Operations on Aug. 5, 2021. NEWOZ CONCRETING: First Creditors' Meeting Set for Aug. 13 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Newoz Concreting Pty Ltd will be held on Aug. 13, 2021, at 10:00 a.m. via teleconference and video conference only. Aaron Kevin Lucan of Worrells Solvency & Forensic Accountants was appointed as administrator of Newoz Concreting on Aug. 3, 2021. QANTAS AIRWAYS: Idles 2,500 More Staff Amid COVID-19 Lockdowns -------------------------------------------------------------- Reuters reports that Qantas Airways Ltd is temporarily idling about 2,500 employees without pay for at least two months in a bid to cope with fresh COVID-19 restrictions in Australia slashing domestic travel demand. According to Reuters, the decision will directly impact domestic pilots, cabin crew and airport workers, mostly in New South Wales, the airline said on Tuesday, adding that no job losses were expected from the move. Reuters relates that Qantas said it had gone from operating almost 100% of its pre-COVID domestic flying capacity in May to less than 40% in July due to lockdowns meant to curb the rapid spread of the Delta variant of the coronavirus. According to Reuters, the country's most populous city, Sydney, has been hit particularly hard by infections and will remain in lockdown for at least another three-and-a-half weeks amid a drive to get the population vaccinated against COVID-19 as quickly as possible. "Based on current case numbers it is reasonable to assume that Sydney borders will be closed for at least another two months," Qantas Chief Executive Alan Joyce told reporters. The affected domestic employees, who will join 6,000 colleagues furloughed in its international division due to border closures, will receive government-backed support payments of AUD750 a week, Reuters relays. Qantas has around 22,000 employees in all. Reuters adds that the airline said it is aiming for domestic flying levels to improve to around 50%-60% of normal levels within a few weeks as some states reopen borders after exiting lockdowns that contained small outbreaks. Qantas will not hibernate any of its domestic planes because it wants to be able to ramp up quickly as demand returns, with a goal of topping 100% of pre-COVID capacity by Christmas, Mr. Joyce said. Its international fleet has been grounded since March 2020. The airline currently has many international flights on sale from late December, but Mr. Joyce said the status of those plans would depend on Australia's vaccination rate, Reuters relays. The government set a target last week for 80% of adults to be fully vaccinated for a calibrated reopening of its international borders. Only around 18% are fully vaccinated currently, adds Reuters. About Qantas Airways Headquartered in Mascot, Australia, Qantas Airways Limited provides transportation of passengers through two airlines including Qantas (full-service carrier) and Jetstar (low-cost carrier), operating international, domestic and regional services. As reported in the Troubled Company Reporter-Asia Pacific, Egan-Jones Ratings Company, on March 17, 2021, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Qantas Airways Limited. ========= C H I N A ========= SUNING APPLIANCE: Sued by Creditors for $255 Million ---------------------------------------------------- Bloomberg News reports that China Construction Bank Corp. on behalf of creditors sued Suning Appliance Group Co Ltd. to recoup about $255 million lost on debt. Bloomberg relates that the group, which used to own retail giant Suning.com Co., and its owner, father-and-son pair Zhang Jindong and Zhang Kangyang, were listed as defendants in an Aug. 2 claim filed in the Hong Kong High Court. The suit is being brought by China Construction Bank (Asia) Corp., which is acting on behalf of creditors, Bloomberg says. Suning Appliance in July allegedly defaulted on a $165 million facility agreement and a $85 million secured note due 2021, according to the filing cited by Bloomberg. The default came after the company revealed its financial difficulty in a May report. Billionaire Zhang Jindong, who founded Suning, resigned as chairman last month after a $1.36 billion state-backed bailout, Bloomberg recalls. Allies of Alibaba Group Holding Ltd. have now taken the helm at Suning.com. Huang Mingduan, founder and chairman of Sun Art Retail Group Ltd., the Alibaba-controlled hypermarket chain, was named Suning.com chairman last week. Suning Appliance Group retails household products. The Company sells air conditioners, refrigerators, washing machines, and other products. Suning Appliance Group also provides automotive lighting appliances, electronic components, electrical equipment, and other equipment. ========= I N D I A ========= ADHI PARASAKTHI: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Adhi Parasakthi Agro Tech (SAPAT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.90 CARE B-; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 17, 2020, placed the rating(s) of SAPAT under the 'issuer non-cooperating' category as SAPAT 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. SAPAT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 2, 2021, June 12, 2021, and June 22, 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). Sri Adhi Parasakthi Agro Tech (SAPAT), was established on February 10, 2015 and the commercial operation started in December, 2015. SAPAT was promoted by Mr. M R Krishna and Mr. M R Venkatesh along with his friends and relatives/family members. The firm is engaged in the business of rice milling (processing of paddy into rice). The firm is purchasing raw paddy from farmers based at Raichur district in the state of Karnataka. The firm is selling rice bags of 25 kg each under the name of 'Anmol Rathan' to dealers based at Karnataka & Maharashtra. ALIN CASHEWS: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Alin Cashews (AC) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 3.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 16.80 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from AC to monitor the rating(s) vide e-mail communications dated April 8, 2021, April 29, 2021 among others and numerous phone calls. However, despite CARE's repeated requests, the firm has not provided the requisite information for monitoring the ratings. 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. The ratings on AC's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). At the time of last rating on April 22, 2021 the following were the rating strength and weakness Detailed description of the key rating drivers Key Rating Weaknesses * Ongoing delays in servicing debt obligations: CARE as part of its due diligence exercise interacts with various stakeholders of the company including lenders to the company and as part of this exercise has ascertained that the working capital facilities are overdue for more than 30 days. Alin Cashews (AC) is a partnership firm engaged in processing & wholesale trading of raw cashew and cashew kernel based out of Kollam, Kerala. The firm exports cashews kernel to Middle East, USA, Europe and does wholesale trading across all over India. The day to day operations are overseen by Mr. Shihansha who has around three decades of experience in the industry. ANJANI PIPES: CARE Keeps C Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Anjani Pipes Industries (SAPI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE C; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 17, 2020, placed the rating(s) of SAPI under the 'issuer non-cooperating' category as SAPI 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. SAPI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 2, 2021, June 12, 2021 and June 22, 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). Sri Anjani Pipes Industries (SAPI) was established in the year 2013 as a partnership firm, by Mr. G Sanjeeva Reddy and Mrs G Madhavi. However, the firm achieved commercial operations from October 2015. The firm is engaged in manufacturing different types of pipes i.e HDPE pipes of various sizes starting 63mm to 315mm, PVC pipes ranging from 25 mm to 350 mm and LLDPE pipes ranging from 12 mm 16 mm, at Mehbubnagar district of Telangana state. These pipes are mainly used for irrigation works (micro and drip), water supply and gas supply. In addition to the said industries, the above mentioned pipes are also used in the following sectors like drainage and telephone cable pipes used by telecom operators. BALWAN POULTRY: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Balwan Poultry And Breeding Farm (BPBF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide press release dated July 1, 2020, had placed the ratings of BPBF 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. BPBF continues to be non-cooperative despite requests for submission of information through phone calls and e-mails dated May 17, 2021, May 27, 2021 and June 6, 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. Balwan Poultry and Breeding Farm (BPBF) was established in 2000 as a proprietorship firm. The operations of the firm are currently being managed by Mr. Balwan Singh. BPBF is engaged in poultry farming business which involves growing of 1 day chick into egg-laying birds. Subsequently, the eggs laid by them are artificially incubated into chicks (incubation time is 21 days). The processing facility of the firm is located at Karnal, Haryana. BPBF sells the day-old chick mainly through the commission agents located in Haryana and Punjab. The firm procures day-old chicks from Venkateshwara Hatcheries and feeding materials for the chicken viz. maize, soyabean and defatted rice bran from traders located in Haryana and near regions. CHETAN ALLOYS: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Chetan Alloys Private Limited (CAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE C; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 16, 2020, placed the rating(s) of CAPL under the 'issuer non-cooperating' category as CAPL 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. CAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 2, 2021, May 12, 2021, May 22, 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). Chetan Alloys Private Limited (CAPL) was incorporated in May 2011 by Mr.Chetan Maheshwari and Satish Maheshwari and commercial operations commenced from October 2012. Business of group entity, ShekharImpex, where Mr.Sureshbhai Maheshwari was proprietor, was transferred to CAPL in 2011. CAPL has its Head office in Delhi and Branch office at Jamnagar. It deals in the scrap products of ferrous metals and non-ferrous metals like aluminum, bronze, zinc, titanium etc. CAPL obtains sales orders from its customers and procures the products from prime suppliers of India. COOLTECH CONTAINERS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: Cooltech Containers Private Limited Plot 7-8 Sachin Notified Industrial Area GIDC Block No.378/P Gabheni Chorayasi, Surat Gujarat 394230 Insolvency Commencement Date: December 17, 2020 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: January 24, 2022 (180 days from commencement) Insolvency professional: Mr. Rajubhai Patel Interim Resolution Professional: Mr. Rajubhai Patel 314, Phoenix Complex Near Suraj Plaza Sayajigunj, Vadodara Gujarat, India 390005 E-mail: rajupatel18@hotmail.com cirpcooltech@gmail.com Last date for submission of claims: August 11, 2021 DARSHAN DEVELOPERS: Insolvency Resolution Process Case Summary -------------------------------------------------------------- Debtor: Darshan Developers Private Limited 4th Floor, HDIL Towers Anant Kanekar Marg Bandra (E) Mumbai 400051 Insolvency Commencement Date: July 26, 2021 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: January 25, 2022 (180 days from commencement) Insolvency professional: Mr. Ajit Gyanchand Jain Interim Resolution Professional: Mr. Ajit Gyanchand Jain 204, Wall Street-1 Near Gujarat College Ellisbridge Ahmedabad 380006 E-mail: ajit@vcanca.com cirp.ddpl@gmail.com Last date for submission of claims: August 12, 2021 DHARANI SUGARS: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Dharani Sugars and Chemicals Limited PGP House 57 Sterling Road Nungambakkam Chennai 600034 Tamilnadu, India Insolvency Commencement Date: July 29, 2021 Court: National Company Law Tribunal, Chennai Bench Estimated date of closure of insolvency resolution process: January 24, 2022 (180 days from commencement) Insolvency professional: S. Rajendran Interim Resolution Professional: S. Rajendran C/o S. Rajendran & Associates Company Secretaries 2nd Floor, Hari Krupa No. 71/1, Mc Nicholas Road Chetpet, Chennai 600031 E-mail: cs.srajendran.associates@ gmail.com claims.dharanisugars@gmail.com Tel: +914428361636 Last date for submission of claims: August 12, 2021 DHARTI DREDGING: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Dharti Dredging And Infrastructure Limited (DDIL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 79.96 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 208.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities 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 DDIL under the 'issuer non-cooperating' category as DDIL 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. DDIL continues to be noncooperative 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). Incorporated in 1993, Dharti Dredging and Infrastructure Ltd (DDIL) is a Hyderabad-based company engaged in the work of dredging, mainly capital dredging. In addition to dredging activities, the company also undertakes trenching and back filling works related to offshore pipeline installation, road embankment projects, de-weeding of lakes, land reclamation etc. DDIL has executed dredging projects in India, the Middle East, Myanmar and Indonesia. DDIL commenced its operations with one dredging unit at Paradeep Fishing Harbor in 1993. Over the years, it has executed various dredging projects and post amalgamation with MDPL (Marine Dredging Pvt. Ltd) DDIL owns a fleet of 16 dredgers (mostly cutter suction dredgers). DOABA KHALSA: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Doaba Khalsa Trust (DKT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 31.20 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 29, 2020, placed the rating(s) of DKT under the 'issuer non-cooperating' category as DKT 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. DKT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 15, 2021, May 25, 2021, June 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). Doaba Khalsa Trust was established in 1998 under the India Trust Act, 1882 to impart higher education. The trust operates with Mr. Mohinder Singh Batth as its chairman. It is currently operating three campuses, one each in Mohali, Ropar and Nawanshahar (Punjab) under the name 'Doaba Group of Colleges'. The colleges offer graduation, postgraduation and diploma courses in engineering and technology, management and pharmacy. The different courses offered are approved by AICTE (All India Council of Technical Education), PTU (Punjab Technical University), Jalandhar, SCERT (State Council of Educational Research and Training), Punjab, PU (Punjab University), Chandigarh and PSBTE (Punjab State Board of Technical Education), Chandigarh. GANCO ENERGY: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ganco Energy (India) Private Limited (GEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 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 7, 2020, placed the rating(s) of GEPL under the 'issuer non-cooperating' category as GEPL 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. GEPL 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, and 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). Ganco Energy India Private Limited (GEIPL) was incorporated in the year 2014 and promoted by Mr. G. Appala Naidu and Mrs. G Chinni Kumarilakshmi. GEIPL proposes to install 60 MW automatic Solar Photovoltaic (SPV) module manufacturing line at Bhemunipatnam, Visakhapatnam. J K INTERNATIONAL: CARE Reaffirms D Rating on INR7.95cr LT Loan --------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of J K International-Jalandhar (JKI), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank Facilities 7.95 CARE D Reaffirmed Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of JKI continue to be constrained on account of ongoing delays in servicing of debt obligation, small and fluctuating scale of operations, low profitability margins, leveraged capital structure and weak debt coverage indicators. Further, the rating is also constrained by risk associated with elongated operating cycle, and its presence in highly competitive nature of industry and partnership nature of constitution. The credit profile derives comfort from experienced partners coupled with established long track record of operations. Key Rating Sensitivity Positive Factor: * Timely servicing of its debt obligations Negative Factor: * Decline in scale of operations by more than 20% along with decline in PBILDT and PAT margins below 7.00% and 0.50%, respectively, on sustained basis. Detailed description of the key rating drivers Key Rating Weaknesses * On-going delays in servicing of debt obligation: There are on-going delays in servicing of the principal installment and interest amount of the term loan. The delays are on account of weak liquidity as JKI is unable to generate sufficient funds to serve its debt obligations. * Small scale of operations: JKI's scale of operations stood small as marked by total operating income of INR25.11 crore and gross cash accruals of INR1.35 crore respectively, during FY21 (FY refers to the period April 1 to March 31; based on provisional results) as against INR30.93 crore and INR2.06 crore respectively, during FY20 on account of lower intake from its existing customers. Nevertheless, the scale remains small and it limits the firm's financial flexibility in times of stress and deprives it of scale benefits. Further, the firm has achieved total operating income of INR7.52 crore during Q1FY22 (refers to the period from April 1, 2021 to June 30, 2021; based on provisional results). * Moderate profitability margins: The PBILDT margins of the firm stood moderate around 10-11% for the last three financial years (FY19-FY21) wherein the firm reaps benefits of its established image in the regional market. PBILDT margin of the firm declined marginally and stood at 10.18% in FY21 (prov.) as against 11.30% in FY20 owing to increase in operational and administrative costs incurred during the period. Further, due to increase in interest expenses and depreciation costs PAT margin also declined and stood at 0.65% in FY21 (prov.) as against 2.44% in FY20. * Leveraged capital structure and weak debt coverage indicators: The total debt of the firm constituted of term loans of INR5.54, unsecured loans from partners and other related parties of INR0.42 crore and working capital borrowings amounting to INR5.53 crore as against the net-worth base of INR4.05 crore as on March 31, 2021. The capital structure of the firm stood leveraged as on the past three balance sheet dates ending March 31, '19- '21 on account of high debt levels against the net worth base. Overall gearing (Including Acceptances/Creditors on LC) ratio stood at 2.83x as on March 31, 2021 (prov.) showing marginal improvement from 2.97x as of March 31, 2020 on account of accretion of profits to reserves. Further, on account of high debt levels, the debt coverage indicators of the firm stood weak as marked by interest coverage ratio and total debt to GCA of 2.08x and 8.52x respectively for FY21 (prov.) as against 2.43x and 5.38x respectively for FY20. The deterioration was mainly on account of increase in debt levels consequently resulting into higher interest expenses. * Elongated operating cycle: The operations of the firm is working capital intensive as marked by elongated operating cycle of 88 days for FY21 as against 60 days for FY20. The elongation in operating cycle is on account of increase in inventory holding period and collection period. The firm is required to maintain adequate inventory of raw material and finished goods in order to ensure smooth production process and to meet demand of customers resulting in an average inventory holding period of around 42 days for FY21 (PY: 26 days). The firm normally offers credit period of around 2-3 months to its customers resulting in the average collection period of around 79 days for FY21. The firm receives a credit period of ~30-40 days a month from its suppliers resulting in average creditor's period of 33 days for FY21. The working capital borrowings of the firm remained almost 90% utilized during the past 12 months ending June, 2021. * Highly competitive and fragmented nature of industry: The Indian glassware industry is characterized by numerous players. There are large numbers of players both in organized and unorganized sector. Some of the organized players are Borosil, Shott, etc. Furthermore, the switching cost for the final consumer is not very high. The firm has a competitive edge over large number of small players given the proper distribution channel and proper marketing set up. The firm had availed moratorium of 6 months (from March 2020 to August 2020) from bank in light of COVID-19 pandemic for its debt obligations. * Partnership nature of constitution: JKI constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Moreover, partnership firms have restricted access to external borrowing as credit worthiness of partners would be the key factors affecting credit decision of the lenders. Key Rating Strengths * Experienced partners and established track record of operations: JKI was established in 2006 and its day-to-day operations are looked after by the Mr. Bikramjit Singh Kang and Mr. Sarjit Singh Kang as its partners. The partners have industry experience of around three decades gained through their association with JKI only. The partners have adequate acumen about various aspects of business which is likely to benefit JKI in the long run. Furthermore, the partners are assisted by a team of well-experienced professionals in their respective domains. J K International - Jalandhar was established as partnership concern in 2006. The firm is currently being managed by Mr. Bikramjit Singh Kang and Mr. Sarjit Singh Kang as its partners. JKI is engaged in manufacturing of Toughened, laminated, Insulating & Bullet Proof Glass at its manufacturing facility located in Jalandhar, Punjab having an installed capacity of 61,15,200 square ft. per annum as on March 31, 2021. The firm caters to architectural and automotive glass industry. The firm has one group concern- JBMS Glasses engaged in the trading of glass. JAGAT AGROTECH: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Jagat Agrotech Private Limited (JAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 23.59 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 23, 2020, placed the rating(s) of JAPL under the 'issuer non-cooperating' category as JAPL 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. JAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 9, 2021, May 19, 2021, May 29, 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). Incorporated in May 2012, JAPL is promoted by Mr. Prahlad Rathi, Mr. Chetan Maheshwari & Mr. Haresh Maheshwari. During FY16, JAPL had implemented a green-filed project by setting up a rice processing unit with an installed capacity of 70,000 Metric Tonne Per Annum (MTPA) at Kheda, Gujarat. The cost of the project was INR19.00 crore (including the margin money for working capital of INR5.00 crore) which was funded through a term debt of INR4.47 crore and promoters' contribution of INR14.53 crore (including unsecured loans from promoters of INR8.00 crore). The company commenced the commercial production in October 2015. K.J.M. RICE: CARE Moves B Debt Rating to Not Cooperating Category ----------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of K.J.M. Rice Milling Industries (KJMRMI) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.05 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from KJMRMI to monitor the ratings vide e-mail communications/letters dated July 19, 2021, July 7, 2021, May 17, 2021, April 13, 2021 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. 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, KJMRMI has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on KJMRMI's bank facilities will now be denoted as CARE B; Stable; ISSUER NOT COOPERATING. The rating has been revised to account of operational as well as financial details not available with us. Further, due diligence with the banker and auditor could not be conducted. West Bengal-based K.J.M. Rice Milling Industries was established in the year 2014 by Mallick family with an objective to enter into rice milling and processing business. The manufacturing unit of the firm is located at Bribhum, West Bengal with an installed capacity of 23,040 metric tons per annum. The firm procures its raw material i.e. paddy from local farmers and traders. This apart the firm is also engaged in custom milling on behalf of government of West Bengal. The firm is managed by all the three partners with adequate support from a team of experienced personnel. KOUSAI INVESTMENTS: First Creditors' Meeting Set for Aug. 13 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Kousai Investments Pty Ltd, formerly trading as "Koumi Japanese Restaurant", will be held on Aug. 13, 2021, at 2:30 p.m. via virtual meeting technology. Stephen Dixon of Hamilton Murphy Advisory was appointed as administrator of Kousai Investments on Aug. 3, 2021. KOYILI HOSPITAL: CARE Lowers Rating on INR19.82cr LT Loan to B- --------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Koyili Hospital (KH), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 19.82 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 12, 2020, placed the rating(s) of KH under the 'issuer noncooperating' category as KH 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. KH continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 28, 2021, May 8, 2021, and May 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings assigned to the bank facilities of Koyili Hospital have been revised on account of non-availability of requisite information. Koyili Hospital (Koyili) established in 1980 is one of the oldest and largest hospitals in Kannur, Kerala. As on March 31, 2016, the hospital had about 287 operational beds, 8 operation theatres with 65 doctors and 294 nursing staff. KUDU FABRICS: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kudu Fabrics (KF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 29, 2020, placed the rating(s) of KF under the 'issuer noncooperating' category as KF 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. KF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 15, 2021, May 25, 2021, June 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). Kudu Fabrics (KF) is a partnership firm established in the year 1998. The firm is engaged in the manufacturing of fabric and readymade garments for men and women at its manufacturing facility located at Ludhiana, Punjab. Besides KF, the partners are also involved in another group concern namely Kudu Industries Limited (KIL; CARE B+; Stable; Issuer Not Cooperating/CARE A4; Issuer Not Cooperating), engaged in the manufacturing of knitted fabric since 1990. MAITHAN ISPAT: CARE Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Maithan Ispat Limited (MIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 576.37 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 131.48 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 11, 2020, placed the rating(s) of MIL under the 'issuer non-cooperating' category as MIL 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. MIL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 27, 2021, May 7, 2021, May 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). Maithan Ispat Ltd, was incorporated in August 2003, by Maithan group for setting up an integrated steel plant comprising manufacturing facilities like Sponge iron (capacity 2,30,000 TPA) & billets (capacity 2,46,000 TPA), heavy section steel (capacity 3,76,000 TPA) and captive power plant of 30 MW, at Kalinganagar Industrial Complex, Orissa. On March 31, 2015, MESCO group through its group company Mideast Integrated Steels Ltd (MISL) acquired MIL by taking 99.28% stake in the company. MALKANI PROPERTIES: CARE Lowers Rating on INR17cr Loan to B- ------------------------------------------------------------ CARE Ratings revised the ratings on certain bank facilities of Malkani Properties (MP), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.00 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 June 30, 2020, placed the rating(s) of MP under the 'issuer non-cooperating' category as MP 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. MP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 16, 2021, May 26, 2021, June 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating assigned to the bank facilities of MP has been revised due to non-availability of requisite information. Malkani Properties (MP) is a partnership firm (SPV) formed on August 7, 2012 and belongs to Venkatesh Oxy Group. VA is developing two residential projects named 'Venkatesh Oxy Evolve', and 'Venkatesh Oxy Desire' with a total saleable area of 3.73lakh square feet (lsf), situated at Wagholi (Pune). MCNALLY SAYAJI: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of McNally Sayaji Engineering Limited (MSEL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 173.75 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/ 89.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 23, 2020, placed the rating(s) of MSEL under the 'issuer non-cooperating' category as MSEL 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. MSEL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 9, 2021, May 19, 2021, May 29, 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). MSEL, incorporated in December 1943, is a subsidiary of McNally Bharat Engineering Co. Ltd belonging to the B. M. Khaitan group. The company has manufacturing units located at Vadodara (Gujarat), Kumardhubi (Jharkhand) and Asansol (West Bengal) engaged in the manufacturing of various construction and material handling equipment & spares and has slurry pump thickeners and floatation unit at Bengaluru (Karnataka). Besides, the company also has two windmills (aggregate capacity - 1.6 MW) at Jamnagar, Gujarat. OOPAL DIAMOND: CARE Lowers Rating on INR20cr LT Loan to B --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Oopal Diamond (OD), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.00 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 press release dated June 26, 2020, had placed the ratings of OD under the 'Issuer Noncooperating' 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. OD continues to be non-cooperative despite requests for submission of information through phone calls and e-mails dated May 12, 2021, May 22, 2021 and June 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. The ratings assigned to the bank facilities of OD have been revised on account of non-availability of requisite information. Oopal Diamond, established in 1997, is engaged in trading and processing (outsourced to the group concern, Swastik Diamond), of rough and cut & polished diamonds up to a size of 0.50 carats. OD procures rough diamonds mainly from other DTC sight holders and the open market of Belgium, USA, Hong Kong, UAE, Thailand & Israel. PALAPARTHI SUPER: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Palaparthi Super Speciality Hospitals Private Limited (PSSH) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 70.00 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 18, 2020, placed the rating(s) of PSSH under the 'issuer non-cooperating' category as PSSH 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. PSSH 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, 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). Incorporated in September 2011, Palaparthi Super Speciality Hospital Private Limited (PSSH) has been promoted by Dr. Silas J. Charles and his wife MrsVasantha Charles. PSSH has set up a super-specialty hospital under the banner 'Hope International Hospital' with 350 beds capacity (74 beds in Intensive Care Unit (ICU) and 276 beds in General ward) in Kakinada, Andhra Pradesh. The hospital has commenced its operations from November 1, 2015. PARASHAR COKE: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Parashar Coke Private Limited (PCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 74.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 11, 2020, placed the rating(s) of PCPL under the 'issuer non-cooperating' category as PCPL 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. PCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 27, 2021, May 7, 2021, May 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). Parashar Coke Private Limited (PCPL) was incorporated in 2006 by Mr. Mithilesh Pandey, Mr. Sanjay Kumar Shah (friend of Mr. Mithilesh Pandey) and Mr. Shiv Nandan Prasad Singh (relative of Mr. Mithilesh Pandey). PCPL has set up a LAMC facility in Saraikela, Jharkhand, having an installed capacity of 224,065 MTPA for coke and 4,573 MTPA for coke fines at a cost of INR115.47 crore. The project was funded at a debt-equity ratio of 1.78:1. PROVENTUS AGER: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Proventus Ager India Private Limited (PAIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long 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 June 12, 2020, placed the rating(s) of PAIPL under the 'issuer non-cooperating' category as PAIPL 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. PAIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 28, 2021, May 8, 2021, May 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Vadodara-based PAPL is promoted by Mr. Doraprasad Nimmagada (promoter of Jay Polypack Private limited and Jay Agro Industries) in January 2015. The board of directors of PAPL comprises of Mr. Doraprasad Nimmagada, his wife Mrs Aruna Nimmagada and his son Mr. Vijay Nimmagada. PAIPL has commenced the trading operations during FY16 (refers to the period April 1 to March 31) from May 2015. The company primarily procures Agrochemicals, Pesticides and Insecticides from its group entity i.e. Jay Agro Industries (JAI, rated CARE 0; Issuer Not Cooperating in November 2017) and markets it through dealers across the country. RAMNIKLAL & SONS: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ramniklal & Sons (RS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide press release dated June 26, 2020, had placed the ratings of RS 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. RS continues to be non-cooperative despite requests for submission of information through phone calls and e-mails dated May 12, 2021, May 22, 2021 and June 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. Established in 1998, as a partnership firm, Ramniklal & Sons (RS) is engaged in making of jewelry [primarily diamond and gems stones studded jewellery] mainly for the high-end market. The firm is also engaged in trading of diamonds. The company majorly sells its jewellery to various reputed domestic clients and export clients mainly in Dubai and Kuwait market. The firm also owns a retail store at Hughes Road, Mumbai (retail sales contribute only a miniscule portion of overall sales). SAKTHI PAPERS: CARE Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shri Sakthi Papers India Private Limited (SSPIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 49.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 4.70 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 12, 2020, placed the rating(s) of SSPIPL under the 'issuer non-cooperating' category as SSPIPL 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. SSPIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated March 28, 2021, April 7, 2021, and 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). Shri Sakthi Papers (India) Private Limited (SSP) originally incorporated as Sakthi Saradha Papers (India) Private Limited in May 2004 by Mr. P. Swaminathan and family-based out of Coimbatore, Tamilnadu, is engaged in the manufacture of paper for newsprint, writing paper for notebooks, white paper for printing and book publication. The business was originally constituted as a proprietorship entity in 1968 by Mr. P. Panchapakesaiyer (father of Mr. P. Swaminthan) by name Shakthi Paper Mart (SPM), which was into trading of imported paper. SSP has own sales depot in Tirupur, Salem, Kolikode and in Ernakulum whereas sales in Chennai, Madurai and Sivakasi are carried out through dealers. SAVITRIDEVI INDUSTRIES: CARE D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Savitridevi Industries Limited (SIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.53 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 30, 2020, placed the rating(s) of Savitridevi Industries Limited (SIL) under the 'issuer non-cooperating' category as SIL 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. SIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and emails dated May 16, 2021, May 26, 2021, June 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. SIL was incorporated in October 2009 as Savitridevi Cotton and Oil Limited. During December 2013, the name of company was changed to Savitridevi Industries Limited on account of diversified business division. SIL currently is engaged in ginning and pressing of cotton, extraction of oil from cottonseed and trading of milk. The ginning & pressing plant and oil extraction unit is located at Atpadi, Sangli (Maharashtra) with an installed capacity of 73,000 bales per annum and to extract 2,628 mettic tones of cotton seed oil per annum. SIGMA INDUSTRIAL: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sigma Industrial Corporation (SIC) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 26, 2020, placed the rating(s) of SIC under the 'issuer non-cooperating' category as SIC 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. SIC continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 12, 2021, May 22, 2021, June 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). Established by Mr. Harikishen J. Mehta in 1975, Sigma Industrial Corporation (SIC) is engaged in the trading of various steel products, mainly Hot Rolled (HR) and Cold Rolled (CR) coils/plates and galvanized coils/sheets, Thermo Mechanically Treated (TMT) bars, Mild Steel (MS) channels and angles. The entity's entire revenues are from domestic market primarily through brokers (comprising approximately 80% of the income) and the purchases are also entirely domestic. SINDHANUR GANGAVATHI: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sindhanur Gangavathi Tollway Private Limited (SGTPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 180.00 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 20, 2020, placed the rating(s) of SGTPL under the 'issuer non-cooperating' category as SGTPL 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. SGTPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated April 5, 2021, April 15, 2021, April 25, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sindhanur Gangavathi Tollway Private Limited (SGTPL) is a Special Purpose Vehicle (SPV) promoted in July 2012 by GKC Projects Limited (GKC), for implementing a project envisaging development of existing 2-lane Sindhanur-Gangavati-Ginigera section from Km. 79.00 to Km. 162.00 (length 83 km) of SH-23 in the state of Karnataka to 2-lane with paved shoulders (widening by about 3 m) on DBFOT toll basis. Government of Karnataka (GoK) has entrusted Karnataka Road Development Corporation Ltd. (KRDCL), to invite proposals for selection of entrepreneurs for taking up construction, widening and strengthening of the State Highways in Karnataka on BOT basis. GKC was declared as the successful bidder for the project quoting lowest grant of INR4.59 crore. KRDCL has issued Letter of Award (LoA) to GKC on June 22, 2012. SGTPL was incorporated on July 11, 2012 as the Project SPV to implement the project. SGTPL has signed Concession Agreement (CA) with KRDCL on August 24, 2012. The concession period is 24 years (including construction period of 2 years). The project has achieved its COD dated December 5, 2015 against the expected date of January 8, 2016. SRINIVASA COTTON: CARE Keeps B- Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Srinivasa Cotton Industries (SCI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.23 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 12, 2020, placed the rating(s) of SCI under the 'issuer non-cooperating' category as SCI 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. SCI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 28, 2021, May 8, 2021, and May 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Srinivasa Cotton Industries (SCI) was established on June 20, 2016 and promoted by Mr. B Ramesh, his friends and relatives/family members. The firm is engaged in cotton ginning & pressing. The manufacturing unit of cotton ginning and pressing unit with total installed capacity of 13536 MT of cotton/year is located at Medak district of Telangana. The firm commenced its operations in the month of December 2016. The firm purchases raw cotton from local farmers located in and around Medak district (Telangana). The firm sells cotton bales to spinning mills in Telangana, Andhra Pradesh and Tamil Nadu. The firm sell the cotton seeds to the oil mills. SUGANTHI EDUCATIONAL: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Suganthi Educational Trust (SET) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 63.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 5.00 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 July 23, 2020, placed the rating(s) of SET under the 'issuer non-cooperating' category as SET 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. SET continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 8, 2021, June 18, 2021 and June 28, 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). Suganthi Educational Trust (SET) was established in the year 1996 by Dr G. Kathamuthu, founder chairman of the trust, to provide higher education for engineering and management students. SET belongs to GKM group. SET operates through GKM College of Engineering & Technology (GKMCET), GKM Institute of Marine Sciences & Technology (GKMMST), GKM Polytechnic College (GKMPC), GKM College of Physical Education (GKMCPE) and GKM Vidyashram (GKMV). GKM group of educational institution provides education from Pre-KG to post graduation and various certificate courses. VEER ANJANAYA: CARE Keeps B- Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Veer Anjanaya Agro Foods (SVAAF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 CARE B-; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 17, 2020, placed the rating(s) of SVAAF under the 'issuer non-cooperating' category as SVAAF 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. SVAAF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 2, 2021, June 12, 2021 and June 22, 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). Sri Veer Anjanaya Agro Foods (SVAAF) was established as a partnership firm on Jan 01, 2015 and the commercial operations started in December 2015. Mr. M R Vasanth, Mr. M R Prathik, Ms. M R Sunitha and Ms. M R Sowmya are the partners of the firm and have experience of two decades in rice mill industry. The firm is engaged in the business of rice milling (processing of paddy into rice). The firm is purchasing raw paddy from farmers based at Raichur district in the state of Karnataka. VODAFONE IDEA: Lenders Fret Over 'Too Big To Fail' Telco -------------------------------------------------------- The Times of India reports that a day after Kumar Mangalam Birla's letter warning that Vodafone Idea (VIL) may reach an "irretrievable point of collapse" became public, banks are worried about the fate of the telecom major which, they say, is "too big to fail". Lenders both Indian and global have an exposure of Rs1.8 lakh crore, TOI discloses. A large part of this is in the form of guarantees. Some private lenders with a funded exposure have already started making provisions. However the bulk of the exposure is with public sector banks. If Vodafone fails to repay its dues to the government and these guarantees are invoked, it would immediately turn into debt and would soon be classified as a non-performing asset, TOI relates. TOI says the hit on PSU banks will not be as large as their exposure because in recent years, lenders have been demanding a substantially higher cash margin from Vodafone for their guarantees. IDBI Bank is understood to have up to 40% margins for the guarantees it has extended. But even then it will be large enough to wipe out profits for many, the report notes. Vodafone Idea Limited operates as a telecom service provider. The Company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment. Vodafone Idea serves customers in India. WHITE HOUSE: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of White House Tiles Private Limited (WHTPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 13.30 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.75 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 1, 2020, placed the rating(s) of WHTPL under the 'issuer non-cooperating' category as WHTPL 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. WHTPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 17, 2021, May 27, 2021, June 6, 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). Morbi (Gujarat) based White House Tiles Private Limited (WHTPL), is a private limited company established in 2007 by four promoters led by Mr. Vimal Patel and Mr. Chunilal Bhanvadia. Mr. Vimal Patel and Mr. Chunilal Bhanvadia have 20 years and 30 years of industry experience, respectively. WHTPL is engaged in the manufacturing of vitrified floor tiles. WHTPL operates from its manufacturing facility located in ceramic cluster (Morbi) and has an installed capacity to manufacture 18 lakh boxes per annum of floor tiles as of March 31, 2016. WHTPL is selling its product under brand name of "White House". ZUBIC LIFESCIENCE: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Zubic Lifescience Private Limited (ZLPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.80 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 25, 2020, placed the rating(s) of ZLPL under the 'issuer non-cooperating' category as ZLPL 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. ZLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 11, 2021, May 21, 2021, May 31, 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). Incorporated in the year 2015, ZLPL is implementing green field project for manufacturing of small volume parenteral at Baroda (Gujarat). ZLPL is promoted by four promoters led by Mr. Paras Kumar Kacchadiya. ZLPL has undertaken project to manufacture small volume parenteral with proposed installed capacity of 1,92,000 ampoules per day (2 ml to 10 ml) and 1,92,000 vials per day (30 ml to 100 ml) at its facilities located at Baroda-Gujarat. The products manufactured by the company will find application in local anaesthetics, vaccines and other traditional injectable. The company will perform subcontracting work for manufacturing of injectable for various pharmaceutical companies in Gujarat and the raw materials costs for it will be borne by the Pharmaceutical companies themselves. ================= I N D O N E S I A ================= PT PERUSAHAAN PENGELOLA: Fitch Assigns FirstTime 'BB+' LT IDRs -------------------------------------------------------------- Fitch Ratings has assigned PT Perusahaan Pengelola Aset (Persero) (PPA) Long-Term Foreign-and Local-Currency Issuer Default Ratings (IDRs) of 'BB+'. The Outlook is Stable. In addition, Fitch has assigned PPA's proposed US dollar notes a rating of 'BB+'. The notes are rated in line with PPA's Long-Term IDR, as the notes constitute direct, unsubordinated, unsecured obligations of the company and rank pari passu with all its other unsecured and unsubordinated obligations. PPA is the only public-policy institution of the Indonesian government (BBB/Stable) engaged in asset management. It is administered by Ministry of State-Owned Enterprises (MSOE), which uses it to manage assets of distressed state-owned enterprises (SOEs). PPA was established to continue the work of the Indonesian Bank Restructuring Agency, which was created in the aftermath of the Asian financial crisis in 1998. KEY RATING DRIVERS 'Very Strong' Status, Ownership and Control: Fitch's assessment of the attribute is based on the state's 100% ownership and appointment of board commissioners and directors. PPA is under strong control by MSOE, which is reflected in the direct assignment of SOEs' restructuring and its monitoring of the progress. PPA is established as a limited liability company that is subject to bankruptcy procedures. However, Fitch believes that this is mitigated by strong control and oversight by the government, which underpins the assessment. PPA is undergoing a transformation as part of MSOE's programme to group Indonesian SOEs into several clusters based on industries. PPA will be grouped under the Danareksa-PPA cluster. The assessment of this attribute factors in Fitch's expectation that there will not be any material changes to the existing framework of government control. 'Very Strong' Support Record: PPA has received funding support through capital injections from the government since its inception. The government provided capital injections totalling IDR3.5 trillion from 2008 to 2016 to fund the restructuring of SOEs. The government transferred its minority stakes in two listed companies and three unlisted companies, with fair value of IDR2.95 trillion as of April 2021, to PPA to strengthen its capital structure. 'Moderate' Socio-Political Implications of Default: The company is one of the government's two crisis prevention tools. The other is deposit insurer Lembaga Penjaminan Simpanan (LPS). PPA is the only government institution that manages SOEs, local governments, local government-owned entities in distress, and banks' non-performing loans (NPLs). Fitch believes PPA may become more important to the government as it manages the impact of the Covid-19 pandemic on SOEs and NPLs nationwide. PPA's policy role and regulations set a high barrier to entry to competitors and it will not be easily substituted in the short to medium term. However, the company's limited activities in NPL management now restrains the overall socio-political implications assessment. 'Moderate' Financial Implications of Default: PPA is an important government-related entity (GRE) tasked with resolving distressed assets and SOEs. While bank restructuring or resolution falls under the purview of LPS, PPA is still integrated with the country's banking and SOEs system. A default by PPA could have material implications for the state's credibility. However, the company has only limited debt instruments issued in capital markets. Hence, Fitch views that a default would have a moderate impact on the availability and cost of financing by the government and other GREs. 'b' Standalone Credit Profile (SCP): Fitch assesses PPA's SCP at 'b', based on its 'Midrange' revenue defensibility, 'Midrange' operational risk and 'Weaker' financial profile, with a net debt/EBITDA ratio of 28.7x at end-2020. 'Midrange' Revenue Defensibility: The assessment reflects PPA's diversified investments and limited competition in managing distressed SOEs, although management of the distressed SOEs is directed by the government. The company's new businesses in NPL management and a special-situation fund may subsidise its policy activities and have a wider customer base. The assessment also reflects regular subsidies from the government to finance SOE restructuring and flexibility to charge investment return for funding from third parties. 'Midrange' Operating Risk: The majority of PPA's costs are market-based financial costs. At end-2020, most of PPA's borrowings were bank loans with revolving and floating-rate structures, while 32% of borrowings were fixed-rate, bullet-structure bonds. Hence, PPA could require refinancing, with the nearest maturities being in 2021 and 2022 of IDR300 billion and IDR450 billion, respectively. The refinancing risk is mitigated by PPA's established relationships with banks and access to capital markets. PPA currently has limited US-dollar borrowings, which are invested on US-dollar assets. PPA's resource-management risk is also assessed as 'Midrange'. Funding is a crucial resource and PPA has strong banking relationships, particularly with state-owned banks, as well as a record of government support through capital injections. In addition, PPA has demonstrated adequate capital planning and liquidity management. DERIVATION SUMMARY Fitch has classified PPA as a GRE, reflecting the entity's control and ownership by the government of Indonesia, the government's support record as well as the socio-political and financial impact on the government from a PPA default. PPA's ratings are derived from the GRE support score of 30, based on the attributes under Fitch's Government-Related Entities Rating Criteria, and combined with an SCP of 'b' RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Any positive movement or upgrade in the Indonesian sovereign rating would be reflected in PPA's international ratings and the rating on the proposed US dollar notes. -- Increase in incentive for the government to provide support, as well as stronger socio-political and financial implications of a default, may also trigger positive rating action. -- A substantial improvement of PPA's standalone credit profile. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Any negative movement or downgrade in the Indonesia sovereign rating would be reflected in PPA's international ratings and the rating on the proposed US dollar notes. -- Deterioration or reduction in direct or indirect government influence on the entity may lead to a rating downgrade. -- Deterioration in the socio-political and financial implications of a default may result in negative rating action. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure 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 three 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 PPA's rating is linked to the Indonesian sovereign rating. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. PT PERUSAHAAN PENGELOLA: S&P Assigns 'BB/B' ICRs, Outlook Negative ------------------------------------------------------------------ S&P Global Ratings assigned its 'BB' long-term and 'B' short-term issuer credit ratings to PT Perusahaan Pengelola Aset (Persero) (PPA). The outlook on the long-term rating is negative. S&P also assigned its 'BB' long-term issue rating to the Indonesia-based company's proposed issue of U.S. dollar-denominated senior notes. S&P said, "The ratings reflect our view that PPA is a government-related entity with a moderately high likelihood of receiving government support in the event of financial distress. The ratings therefore incorporate a three-notch uplift for government support. "In accordance with our criteria for government-related entities, our view of a high likelihood of extraordinary government support is based on our assessment of the following PPA characteristics: "Very strong link with the government. PPA is 100% owned by the government through the Ministry of SOE (MSOE). The government has the right to appoint its director and commissioner, and has a track record of making periodic capital injections into PPA to support its operations. We view the government as a strong and stable shareholder with a strong influence on PPA's strategic and business plans. There is, however, no legal framework in place that provides for explicit government support for PPA. Neither does it benefit from statutory or long-term guarantee from the government. Important role for the government. PPA supports an important national agenda within the SOE ecosystem via its mandate to rehabilitate distressed SOEs. The government has granted power of attorney that gives PPA the authority and rights of shareholders to manage distressed SOEs assigned to it. The key roles PPA performs, including consultancy, management of nonperforming loans (NPLs), and provision of funding, can be undertaken by the private sector, and can be selectively outsourced to third parties, when necessary. S&P said, "The power of attorney, however, is unique to PPA. Overall, we view PPA as a profit-oriented enterprise, run by a professional and independent management. We expect the company to largely manage and meet its own financial obligations. Extraordinary support is likely forthcoming if needed and within reason, but not necessarily guaranteed and unconditional. The stand-alone credit profile of PPA is driven by its niche role as a distressed SOE manager, adequate capital levels, material exposure to riskier SOEs, and high reliance on wholesale funding sources including bank loans and bonds. We expect PPA to expand its balance sheet and funding sources as part of its transformation into a more diversified financial services firm, while maintaining adequate capitalization over the next 12-18 months. We assess the group's credit profile as 'b'." PPA is exposed to economic risk in Indonesia, its only market. Our 'bb-' starting point for rating finance companies in Indonesia is two notches below the anchor for banks, derived from S&P's Banking Industry Country Risk Assessment. The two notches reflect incremental industry risk of finance companies in Indonesia relative to banks because these companies lack access to central bank funding, and face less stringent prudential regulation than banks do. PPA does not fall under Otoritas Jasa Keuangan (OJK) supervision and need not comply with Basel standards. The company also has inherently higher revenue volatility, reflecting its exposures to distressed SOEs. S&P said, "Our assessment of PPA's business position reflects its evolving business and revenue profile while it transforms into a more diversified financial services provider to the SOE sector. PPA was established in 2004 to manage the assets of the former Indonesian Banking Restructuring Agency. Its mandate was subsequently expanded in 2008 and 2014 to manage assets from other SOEs, with a focus on restructuring and revitalizing distressed SOEs, as well as providing consulting, asset management, and financing services. PPA is currently engaged in the rehabilitation of PT Nindya Karya (Persero), a construction services company if which it holds a 99% stake, and which accounts for the bulk of its balance sheet. Nindya Karya is slated for divestment by 2022 at the latest as part of PPA's transition to its new operating model." Under its transformation plan to be executed over 2021-2023, PPA plans to have a more diversified business mix with three business pillars under which: -- PPA has power of attorney to control and restructure distressed SOEs. The power of attorney will allow PPA to approve the general meeting of shareholders regarding the articles of association, have a strong influence on operational decision making, and have powers to approve the issuance of bonds and other debt securities. It will also cease consolidating distressed SOEs into its balance sheet. -- PPA will provide funding in the form of bridge loans, debt, and quasi-equity investments in SOEs to help them tide over difficult times or to reduce their funding costs. The interests earned from these loans and bonds will be the main source of revenue for PPA. -- PPA will play a role in reducing systemwide NPLs in the aftermath of COVID-19. It will assist banks (predominantly state owned) to reclassify their NPLs as investment-grade sukuk, in return for a share of the recovery gains on these NPLs. S&P estimates that interest income from loans and investments will form 80%-90% of PPA's revenues, with the remainder comprising fee income from advisory, consultancy, and NPL recovery. The new business model is nascent and would require 12-24 months to ramp up. PPA remains a small player in majority of these business lines compared with private sector peers. Assuming a doubling of PPA's asset base to about Indonesia rupiah (IDR) 25 trillion by 2023, the company would account for less than 0.5% of the financial system. After its transformation, PPA will continue to be geographically focused on Indonesia, with loans and investments accounting for the bulk of its assets with a projected 30:50:20 split between distressed SOEs, other SOEs, and private sector corporates. The company does not have a retail business. Its geographic and sectoral concentration reflects its government mandate to facilitate SOE restructuring. PPA has power of attorney which grants it wide powers to control distressed SOEs assigned to it and a strong influence on the operational decision making. S&P believes this unique arrangement offsets some of the concentration risks from a business position perspective. S&P said, "We estimate PPA's leverage, as measured by its ratio of debt to adjusted total equity, will be about 3x over the next 24 months. We use leverage as our primary measure because PPA's material exposure (about 30%) is to distressed SOEs, where the risk profile is not fully captured by standardized risk weights under our risk-adjusted capital framework methodology. In addition, PPA will also have material exposure (about 20%) to assets that are risker than a typical loan. These include quasi-equity debt such as convertible bonds with options to convert into equity in the company." PPA has guided for a significant 2.5x increase in debt from bond raising and a medium-term notes (MTN) program from 2020 to 2023 to fund its loans and investment portfolio. This is partially offset by a substantial IDR2.96 trillion capital injection from the government in April 2021. S&P said, "Our leverage forecast also factors in a one-off extraordinary gain of about IDR980 billion in 2022 from the divestment of Nindya Karya. This is a rehabilitated SOE that will be returned to MSOE, and we have high certainty that sale proceeds will be forthcoming, given it is an inter-government agency transaction. Finally, we have assumed 0% dividend payout because we believe the Indonesia government, as the sole shareholder of PPA, would support full earnings retention during its growth and transformation phase." S&P said, "Our assessment of PPA's risk profile as weak reflects the inherently higher risks associated with distressed asset acquisition and management. The distressed SOEs assigned to PPA have weak credit histories; they are unprofitable and have liquidity shortages, which exposes PPA to higher credit risks than what a typical finance company faces. These SOEs include those in the airlines, shipping, and transport industries (which have been hit adversely impacted by COVID-19), and PPA had to substantially write down these exposures." S&P expects PPA's asset quality for its distressed asset exposures to remain under pressure during the prevailing tough economic conditions. The exposures are also chunky, as reflected in the top 20 nonperforming investments constituting 78% of its equity as of Dec. 31, 2020. However, these nonperforming investments are largely attributed to distressed SOEs assigned to PPA by the government. PPA is planning to double its asset base to over IDR25 trillion by 2023, from about IDR12.9 trillion as of Dec. 31, 2020, predominantly through growth in loans and investments. While S&P expects PPA's investment to become more diversified across healthy SOEs and private sector companies over time, the distressed portfolio is likely to remain material at about 30% of loans and investments over the next 12-24 months. PPA's risk management is evolving, in our view. The risk management department is small with five employees (two are temporary) and they report to the CFO. The department is in the process of recruiting a chief risk officer and expanding to eight to 10 employees by end-2021. In our view, embarking on rapid growth and venturing into new business lines during the transformative phase without first installing a chief risk officer and upscaling risk management resources could elevate implementation risks. This is pertinent considering the complexities in some of PPA's business lines. For example, PPA could make quasi-equity investments in distressed SOEs via a convertible bond. In a bad-case scenario where the borrower fails to turnaround its business, one of PPA's exit strategies is to covert its debt to equity and sell its stake. S&P believes this exposes PPA to market risks on top of credit risks, as valuation of its equity stake would most likely be depressed in this hypothetical debt-to-equity conversion scenario. S&P said, "In our view, PPA's NPL management business is unique and unconventional. Although the NPLs sold by the bank are removed from its books and booked into a special purpose vehicle, the bank and its relationship manager would continue to service and look to recover the loan. We view this as an accounting arrangement engineered by PPA to reduce the reported NPLs of banks. These idiosyncratic elements add to the complexity of PPA that is not typical of a commercial bank or finance company in the country." PPA's funding assessment reflects its reliance on wholesale funding. As of Dec. 31, 2020, its funding sources consisted of predominantly bank term loans (52% of liabilities), and to a lesser extent, accounts payable (16%) and capital markets (15% including bonds and MTN). PPA plans to reduce its reliance on bank loans and diversify toward bonds and MTN over the next two to three years, with a more balanced one-third split between bank loans, bonds, and MTN. Meanwhile, PPA continues to have access to multiple bank lines, which benefit from its SOE background, in our view. In addition, the company has sufficient cash flows, unused bank credit lines, and satisfactory bank relationships given its government-owned status. It also holds sizable minority stakes in listed companies, such as PT Indosat Tbk. and PT Bank KB Bukopin Tbk., that can be used as contingency sources of liquidity. These factors support our assessment of the company's adequate funding and liquidity. S&P said, "We equalize the rating on PPA's proposed notes with the long-term issuer credit rating on the company. The notes are direct, unconditional, unsubordinated, and unsecured obligations of PPA, and will rank pari passu, without any preference among themselves, with all other outstanding unsecured and unsubordinated obligations of the issuer. "PPA has senior secured or priority debt of about 20% of assets, higher than the 15% notching-down threshold under our methodology. However, we understand the company will refinance all of its priority debt with the proposed issuance and that its unencumbered assets are more than sufficient to cover its senior notes. The rating on the notes is therefore aligned with the issuer credit rating on the company. "The negative outlook on PPA reflects our negative outlook on the sovereign credit ratings on Indonesia, and our negative trend on the country's economic risk, with a one-in-three chance of a downgrade over the next 12-18 months. "We will lower the rating on PPA by a notch if: (1) we downgrade Indonesia by a notch; (2) we lower our economic risk assessment on the banking sector; or (3) strategic or execution missteps during PPA's transformation phase lead to lapses in risk management or unexpected losses. "We will revise the outlook on PPA to stable if: (1) we take a similar action in the sovereign credit rating on Indonesia; and (2) credit risks in the country's financial sector from the impact of COVID-19 show sustainable signs of recovering to pre-pandemic levels." ========= J A P A N ========= JAPAN AIRLINES: Posts JPY57.92BB Net Loss in April to June Quarter ------------------------------------------------------------------ The Japan Times reports that Japan Airlines Co. on Aug. 3 reported a smaller net loss of JPY57.92 billion (US$531 million) for the April to June quarter compared with a year earlier, with demand for air travel having been recovering from a slump caused by the COVID-19 pandemic. According to the report, cost-cutting efforts also helped the major Japanese airline limit red ink, having reported the year earlier a quarterly net loss of JPY93.71 billion - the firm's largest since its 2012 relisting. Sales grew 74.1% from the previous year to JPY133.03 billion. JAL did not release earnings forecasts again for fiscal 2021, saying it was difficult to make projections amid the pandemic, the report says. Air traffic remains below pre-pandemic levels but the number of passengers on both domestic and international flights is increasing, leading to revenue growth. The business environment remains "severe" due to the prolonged impact of the global health crisis, but hopes are emerging for an "early recovery" of domestic travel demand with progress in vaccinations, according to the airline. JAL saw passengers on international flights increase 340% over the past year to 149,492, even though travel restrictions remained in force in many countries, The Japan Times discloses. The number of passengers on domestic flights more than doubled to 2.71 million from a year earlier, when travel demand plummeted due to a COVID-19 state of emergency imposed across the whole of Japan. Similarly to its domestic rival ANA Holdings Inc., JAL continued to benefit from a rise in cargo demand sparked by the pandemic. Revenue in the cargo segment increased to JPY47.6 billion in the April to June quarter from JPY26.5 billion a year ago. Having reported in fiscal 2020 its first net loss since its 2012 relisting after rehabilitation, JAL now faces the challenge of returning to profitability on a full-year basis, according to The Japan Times. Demand for domestic travel has been picking up, but a COVID-19 state of emergency declared for prefectures with surging coronavirus cases such as Tokyo and Osaka has cast a cloud over the outlook ahead of Japan’s summer holiday season in mid-August, the report notes. The Tokyo Olympics, which are scheduled to end on Aug. 8, have not been a boon to the airline industry as foreign spectators have been barred and domestic fans are also not permitted to enjoy the Games at most of the competition venues, adds The Japan Times. About Japan Airlines Japan Airlines Co., Ltd. engages in scheduled and non-scheduled air transport, aerial work, and aircraft maintenance services. It operates through the Air Transport and Others segments. The Air Transport segment engages in air transport business, airport passenger service, ground handling service, maintenance service, cargo service, passenger transport service and airport area business. The Others segment includes travel planning and sales. As reported in the Troubled Company Reporter-Asia Pacific, Egan-Jones Ratings Company, on February 16, 2021 downgraded the foreign currency and local currency senior unsecured ratings on debt issued by Japan Airlines Co Ltd. to BB from BB+. ===================== N E W Z E A L A N D ===================== AVANTI RMBS 2021-1: Fitch Assigns BB+(EXP) Rating on Class E Notes ------------------------------------------------------------------ Fitch Ratings has assigned expected ratings to Avanti RMBS 2021-1 Trust's mortgage-backed pass-through floating-rate bonds. The issuance consists of notes backed by a pool of first-ranking, prime and non-conforming, New Zealand residential full- and low-documentation mortgage loans originated by Avanti Finance Limited. The notes will be issued by The New Zealand Guardian Trust Company Limited in its capacity as trustee of Avanti RMBS 2021-1 Trust, which is a separate and distinct trust created under a master trust deed. The asset pool totalled NZD350 million at the 11 July 2021 cut-off date and consisted of 754 obligors. DEBT RATING ---- ------ Avanti RMBS 2021-1 Trust A1 LT AAA(EXP)sf Expected Rating A2 LT AAA(EXP)sf Expected Rating B LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB(EXP)sf Expected Rating E LT BB+(EXP)sf Expected Rating F LT NR(EXP)sf Expected Rating KEY RATING DRIVERS Sufficient Credit Enhancement Mitigates Expected 'AAAsf' Losses: The 'AAAsf' weighted-average foreclosure frequency (WAFF) of 22.2% is driven by the weighted-average (WA) unindexed loan/value ratio (LVR) of 65.1%. Under Fitch's methodology investment loans equated to 34.1% and non-conforming loans 33.8% by balance. The 'AAAsf' WA recovery rate of 54.7% is driven by the portfolio's WA indexed scheduled LVR of 64.3%. Limited Liquidity Risk: Structural features include a liquidity facility sized at 1.0% of the note balance, with a floor of NZD100,000 sufficient to mitigate Fitch's payment interruption risk. Principal draws are available to fund income shortfalls before the liquidity facility is drawn. The rated notes can withstand all relevant Fitch stresses applied in Fitch's cash flow analysis. The class A1, A2, B, C, D and E notes benefit from credit enhancement of 20.0%, 10.0%, 7.0%, 4.0%, 1.9% and 0.5%, respectively. The class B to F notes pay interest based on the notes' stated balance. Fitch's ratings reflect the timely and ultimate payment of interest and its cash flow model addresses the risk that interest may be not be recovered in scenarios where there are charge-offs. This is more conservative than transaction documentation. All classes of notes can withstand all relevant Fitch cash flow modelling stresses. Originator Adjustment Applied due to Specific Differing Practices: Avanti is a non-bank financial institution with over 30 years of experience in origination, underwriting, servicing and special servicing across various asset classes in New Zealand. Fitch undertook an operational review and found that the operations of the originator and servicer were mostly comparable with market standards and that there were no material changes that may affect Avanti's ongoing ability to undertake origination, administration and collection activities. Fitch applied an originator adjustment of 1.05x to address specific aspects that differ from market practices of other prime non-bank lenders, which Fitch believes may affect the credit risk of the transaction and assets. This has led to an overall adjustment in the foreclosure frequency, in line with previous analysis of Avanti transactions. The collections and servicing activities have not been disrupted due to the coronavirus outbreak as staff work remotely and are able to access the disaster recovery site, if needed. Economic Rebound Supports Outlook: Portfolio performance is supported by New Zealand's effective suppression of Covid-19 and the macro-policy response, which have facilitated a robust economic recovery. Fitch forecasts New Zealand's GDP to expand by 5.5% in 2021, revised upwards from an estimate of 4.0% earlier this year. Fitch expects GDP growth to stabilise in 2022 at 3.3% and the unemployment rate to improve, falling to 4.4% by end-2022. The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Macroeconomic conditions, loan performance and credit losses that are better than Fitch's expectations or sufficient build up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. -- The class A1 and A2 notes' recommended ratings are at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded. Upgrade Sensitivity: -- The class A1 and A2 notes' expected ratings are at 'AAAsf', which is the highest level of Fitch's scale. The ratings cannot be upgraded. -- Class B / C / D / E -- Current Expected Rating: AAsf / Asf / BBBsf / BB+sf -- Decrease defaults by 15%; increase recoveries by 15%: AAAsf / AAsf / Asf / BBBsf -- The rating of the Class D notes in the trust is being constrained by the large obligor concentration test limits the expected rating at its current 'BBBsf', one notch lower than the model implied rating of 'BBB+sf'. An increased credit enhancement ratio could lead to positive rating action for the class D notes if it is able to fully compensate for the credit losses and cash flow stresses, which are commensurate with higher rating scenarios, all else being equal. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A longer pandemic than Fitch expects that leads to deterioration in macroeconomic fundamentals and consumers' financial positions in New Zealand beyond Fitch's baseline scenario. Available credit enhancement cannot compensate for higher credit losses and cash flow stresses, all else being equal. Downgrade Sensitivity: -- Notes: A1 / A2 / B / C / D / E -- Current Expected Rating: AAAsf / AAAsf / AAsf / Asf / BBBsf / BB+sf Expected impact on note ratings of increased defaults: -- Increase defaults by 15%: AA+sf / AA+sf / AA-sf / A-sf / BBBsf / BB-sf -- Increase defaults by 30%: AAsf / AAsf / A+sf / BBB+sf / BBB-sf / B+sf Expected impact on note ratings of decreased recoveries: -- Reduce recoveries by 15%: AA+sf / AA+sf / A+sf / BBB+sf / BBB- sf / BB-sf -- Reduce recoveries by 30%: AAsf / AAsf / Asf / BBB+sf / BBsf / B+sf Expected impact on note ratings of multiple factors: -- Increase defaults by 15% and reduce recoveries by 15%: AAsf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Increase defaults by 30% and reduce recoveries by 30%: A+sf / A+sf / BBB+sf / BB+sf / B+sf / BEST/WORST CASE RATING SCENARIO International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven 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 seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available for this transaction. As part of its ongoing monitoring, Fitch conducted a review of a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ================= S I N G A P O R E ================= ENVY ASSET: Court to Hear Wind-Up Petition on Aug. 16 ----------------------------------------------------- A petition to wind up the operations of Envy Asset Management Pte Ltd, Envy Management Holdings Pte. Ltd, and Envy Global Trading Ptd. Ltd will be heard before the High Court of Singapore on Aug. 16, 2021, at 10:00 a.m. The companies' Interim Judicial Managers, Bob Yap Cheng Ghee, Toh Ai Ling and Wong Pheng Cheong Martin of KPMG Services, filed the petition on July 2, 2021. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 FAR EAST ORCHARD: Net Loss Widens to SGD1.9MM in 1st HY 2021 ------------------------------------------------------------ The Business Times reports that Far East Orchard's net loss for the half year ended June 30 widened to SGD1.9 million from SGD853,000 the previous year as the pandemic continues to weigh on its hospitality business amid persistent lockdowns and border closures. Revenue was 15 per cent lower to SGD54.9 million from SGD64.9 million the previous year while loss per share stood at 0.41 Singapore cent versus 0.19 cent the previous year, BT discloses. The decrease in revenue from its hospitality business was partly cushioned by higher revenue from the purpose-built student accommodation (PBSA) properties in the UK, said Far East Orchard in a press statement on Aug. 4, BT relays. This included the full six months contribution from a PBSA asset, King Square Studios, acquired in November 2020. As at June 30, the group's PBSA portfolio in the UK maintained an occupancy level of over 80 per cent. UK continues to see a record high university application for the academic year 2021/22. With the easing of restrictions on in-person teaching and learning, universities have been able to structure their courses without constraints, said the group in its financial statements. The group therefore remains confident of the PBSA demand and expects the pace of booking to pick up from July 2021, according to BT. BT relates that the financial impact was also partially offset by the continued contracted business of hotels in Singapore to be used as isolation facilities and corporate accommodation requirements for foreign workers. Various government support grants also helped though most of the grants ended by June 2021. Despite the challenging operating environment, the group had pushed ahead with its expansion plans for the first half of the year. According to BT, Group chief executive officer of Far East Orchard Alan Tang said in a press statement that the return to normalcy is an "arduous journey". The team had, however, responded with efforts that have helped cushion the impact of the pandemic on the hospitality business, he said. "We expect that Covid-19 will continue to impact the group's performance. Taking a long-term approach, we remain hopeful that global tourism will slowly but surely improve as vaccination rollout progresses globally," he added. Far East Orchard Limited, an investment holding company, engages in the property development and investment activities in Singapore, Australia, New Zealand, the United Kingdom, and internationally. It primarily develops residential, commercial, hospitality, and purpose-built student accommodation properties. The company also owns and operates hospitality assets, including hotels. In addition, its portfolio includes medical suites in Novena Medical Center, Novena Specialist Center, and SBF Center. The company was formerly known as Orchard Parade Holdings Limited and changed its name to Far East Orchard Limited in July 2012. The company was incorporated in 1967 and is headquartered in Singapore. Far East Orchard Limited is a subsidiary of Far East Organization Pte. Ltd. FORTE ENGINEERING: Court to Hear Wind-Up Petition on Aug. 20 ------------------------------------------------------------ A petition to wind up the operations of Forte Engineering Pte Ltd will be heard before the High Court of Singapore on Aug. 20, 2021, at 10:00 a.m. Fuji SMBE Technology Pte Ltd filed the petition against the company on July 16, 2021. The Petitioner's solicitors are: Aequitas Law LLP 28 Maxwell Road #04-05 Maxwell Chambers Suites Singapore 069120 HEALTHPRO PTE: Tam Chee Chong Appointed as Provisional Liquidator ----------------------------------------------------------------- Tam Chee Chong was appointed as provisional liquidator of Healthpro Pte Ltd. on July 29, 2021. The liquidator can be reached at: Tam Chee Chong c/o 204B Telok Ayer Street Singapore 068640 MARBLE II PTE: Fitch Affirms 'BB' LT IDRs, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Marble II Pte. Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB'. The Outlook is Stable. Simultaneously, the agency has affirmed the 'BB' rating on Marble II's USD500 million 5.3% senior unsecured bonds due 2022. The Stable Outlook reflects Fitch's view that Marble II's 56%-owned subsidiary, India-based Mphasis Limited, will continue its solid operating and financial performance and generate higher cash flow. Marble II had proportionately consolidated FFO net leverage of 4.5x in the financial year ended March 2021 (FY21), below the 5.0x negative sensitivity for the 'BB' ratings. Fitch will withdraw the IDRs after the full redemption of the bonds. Fitch expects Marble II to receive net proceeds of USD1.7 billion-2.0 billion following the sale of 49%-56% of Mphasis shares to BCP Topco IX Pte Ltd., which will be used to redeem the bonds soon after the completion of the transaction. Fitch expects the sale of Mphasis' shares to be completed on or before 10 August 2021. KEY RATING DRIVERS Strong Growth: Fitch expects Mphasis' revenue to increase by 10%-12% in FY22-FY24, driven by its customers' strong demand for digital transformation. Mphasis' revenue in Indian rupees rose at a CAGR of 12% in FY17-FY21, higher than the industry average. Fitch believes Mphasis will sustain its revenue growth momentum by tapping the opportunities from ultimate parent The Blackstone Group Inc.'s (A+/Stable) portfolio companies and expertise in the banking, financial-service and insurance (BFSI) sectors. Mphasis had high total contract value (TCV), excluding renewals, of USD1.1 billion in FY21 and USD505 million in 1QFY22. Fitch expects Mphasis' financial performance to remain strong, which is likely to more than compensate for the lower revenue from DXC Technology Company (BBB/Stable). Mphasis will cease to have a minimum revenue commitment contract with DXC from October 2021. Stable EBITDA Margin: Fitch forecasts Mphasis' EBITDA margin to remain stable at around 17% (FY21: 17%). Fitch believes Mphasis will benefit from stronger economies of scale and cost savings. More projects will also be delivered offshore compared with the pre-pandemic period, as customers have become comfortable with remote working. These factors will improve the margins of Indian IT service companies as they can deliver the projects through lower-cost offshore delivery centres. Moderate Market Position: Marble II's ratings reflect Mphasis' mid-tier position in the global IT service industry and modest cost and technological advantages over other mid-tier peers. The ratings are supported by solid long-term relationships with key customers due to moderate-to-high switching costs and strong domain expertise in the BFSI sectors. The revenue guarantee with DXC, one of its key customers, will expire in October 2021, but Fitch believes the impact is manageable as DXC's revenue contribution has declined to around 10% of the total. Fitch expects Mphasis' revenue growth from the direct, or non-DXC, channel will significantly outpace the revenue loss from DXC on the back of strong TCV over the past three years. High Customer Concentration Risk: The revenue contribution from Mphasis' top-10 clients from the direct channel was 55% in 1QFY22, higher than top industry peers HCL Technologies Limited's (A-/Stable) and Wipro Limited's (A-/Stable) top-10 client revenue contribution of around 20%. This is partly offset by Mphasis' strong relationships with its biggest customers and the integrated services it provides to clients. Mphasis also has a strong record of retaining key customers, with an average tenor of 14-15 years, providing some operating stability. Strong Free Cash Flow: Fitch expects Mphasis to continue to generate a mid-single-digit free cash flow margin in light of its low capital intensity of around 1%, modest working-capital requirements, rising revenue and a stable dividend payout policy. Mphasis is likely to maintain a healthy balance sheet with minimal debt, similar to most Indian IT service companies. Proportional Consolidation: Marble II's debt-servicing ability depends on dividends from Mphasis. Fitch analyses Marble II by proportionally consolidating Mphasis due to the significant number of minority shareholders. Shareholder returns via dividends or share buybacks in excess of Fitch's expectations are a risk to Marble II's deleveraging. DERIVATION SUMMARY Marble II is a holding company that was established to acquire Mphasis, the operating company. Marble II is the issuing entity and has no other assets or liabilities except its investment in Mphasis and its bond. Therefore, Fitch bases Marble II's business profile solely on Mphasis and proportionally consolidate 56% of Mphasis' financial numbers to Marble II's standalone credit profile, according to Fitch's Corporate Rating Criteria, given the significant level of minorities. Marble II's market position is significantly weaker than that of DXC, which has a revenue scale that is more than 10x that of Mphasis, despite DXC's revenue decline in the past three years. This is partially offset by Mphasis' stronger execution, with revenue growth that is consistently higher than the industry average and stable profitability. DXC has a stronger financial profile as Fitch expects its gross debt/EBITDA to improve to below 2.5x, while Marble II's gross debt/EBITDA is around 5x. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer in FY22-FY24: -- Mphasis revenue growth of 10%-12%; -- Mphasis EBITDA margin of around 17%; -- Mphasis capex/revenue of around 1%, in line with historical levels; -- Mphasis to distribute around 60% of net income as dividends; -- On a standalone basis, Marble II to distribute all excess cash to Blackstone; -- No share buybacks or special dividends. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An improvement in proportionally consolidated FFO net leverage to below 3.0x on a sustained basis; -- Better market position, demonstrated by higher profitability and lower customer concentration. Fitch is unlikely to consider an upgrade until Fitch can forecast free cash flow at Mphasis of over USD125 million in light of the company's small size. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Higher shareholder returns than Fitch expects, greater competition or loss of key customers, leading to a deterioration in proportionally consolidated FFO net leverage to above 5.0x BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Fitch believes Marble II's liquidity is adequate as it will receive USD1.7 billion-2.0 billion from the sale of Mphasis shares, which would be sufficient to fund the redemption of the USD500 million bonds due June 2022. On a standalone basis, Marble II had USD15 million in cash and cash equivalents as of March 2021, in addition to an interest reserve account with USD13 million. ISSUER PROFILE Marble II, which is owned by Blackstone, holds 56% of Mphasis, a mid-sized India-based IT service company with a primary industry focus on banking, financial services and insurance. CRITERIA VARIATION Fitch has used a criteria variation to apply a 30% haircut on Mphasis' equity arbitrage funds, which is lower than the 60%-100% specified in Fitch's Corporate Rating Criteria for equity funds, as the equity arbitrage funds' volatility and liquidity profile are in line with that of investment-grade fixed-income bond funds. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. TESCO DIGITAL: Creditors' Proofs of Debt Due Sept. 3 ---------------------------------------------------- Creditors of Tesco Digital Ventures Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Sept. 3, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 26, 2021. The company's liquidator is: Aaron Loh Cheng Lee EY Corporate Advisors c/o One Raffles Quay North Tower 18th Floor Singapore 048583 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. 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