/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210811.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, August 11, 2021, Vol. 24, No. 154 Headlines A U S T R A L I A AUSTRALIA: 650 Tourism Firms in Cairns on the Brink of Collapse HAORAS PTY: First Creditors' Meeting Set for Aug. 18 HORIZON GLOBAL: Posts $960,000 Net Income in Second Quarter RESIMAC BASTILLE 2: S&P Affirms BB Rating on E Notes SARGON CAPITAL: Lender Named as Deliberately Bankrupting Company C H I N A E-HOUSE (CHINA) ENTERPRISE: S&P Lowers ICR to 'B+', Outlook Stable I N D I A ABHIBUS SERVICES: Ind-Ra Keeps B- Issuer Rating in Non-Cooperating ALIN CASHEWS: CARE Keeps D Debt Ratings in Not Cooperating ATLAS TEXTILES: CARE Keeps D Debt Ratings in Not Cooperating BALWAN POULTRY: CARE Keeps D Debt Rating in Not Cooperating BEEPEE ENTERPRISE: CARE Keeps D Debt Ratings in Not Cooperating BHARGAVA EDUCATIONAL: Ind-Ra Keeps 'B+' Rating in Non-Cooperating BORAH AGENCIES: CARE Keeps B Debt Rating in Not Cooperating BRAHMAGIRI DEVELOPMENT: CARE Lowers Rating on INR6.09cr Loan to C C.I. AUTOMOTORS: CARE Keeps B Debt Rating in Not Cooperating CRYSTAL SEA: Ind-Ra Cuts & Moves Long-Term Issuer Rating to 'D' DEWAN HOUSING: Piramal Seeks RBI Nod to Settle DHFL's Foreign Debt DURLAX INDIA: CARE Keeps D Debt Ratings in Not Cooperating GLENMARK PHARMA: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable GOODWILL TEA: CARE Keeps D Debt Rating in Not Cooperating GVK POWER: CARE Keeps D Debt Ratings in Not Cooperating HENRAAJH FEEDS: CARE Keeps B+ Debt Rating in Not Cooperating HITECH PRINT: Ind-Ra Hikes Long-Term Issuer Rating to 'BB-' INNOVATIVE IDEALS: CARE Reaffirms D Rating on INR10cr LT Loan JAI VENKAY: CARE Keeps D Debt Rating in Not Cooperating JAMPESWAR AGRO: CARE Keeps B Debt Rating in Not Cooperating KROSS LIMITED: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' M.K. MATHIVATHANAN: CARE Keeps B- Debt Rating in Not Cooperating MAGPIE GLOBAL: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating MAXIMAA SYSTEMS: CARE Keeps D Debt Rating in Not Cooperating MOHINI HEALTH: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+' NEXT GENERATION: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating NOVARC LABS: CARE Keeps D Debt Rating in Not Cooperating PARAS BHAVANI: CARE Keeps D Debt Rating in Not Cooperating PARASHAR COKE: CARE Keeps D Debt Rating in Not Cooperating PARIKH BROTHERS: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating PLATINUM AAC: CARE Keeps D Debt Rating in Not Cooperating POLYWELL ENTERPRISES: CARE Keeps B- Rating in Not Cooperating PRIMACY INDUSTRIES: Ind-Ra Cuts Long-Term Issuer Rating to 'D' PRN INFRATECH: Ind-Ra Lowers Bank Loan Rating to 'BB' QRS RETAIL: CARE Keeps B+ Debt Rating in Not Cooperating RADHA CASTING: CARE Lowers Rating on INR4cr LT Loan to B- SIGMA INDUSTRIAL: CARE Keeps D Debt Ratings in Not Cooperating SSPT LOGISTICS: CARE Keeps D Debt Rating in Not Cooperating STEEL EXCHANGE: CARE Keeps D Debt Ratings in Not Cooperating TUSHA TEXTILES: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating V S EDUCATION: Ind-Ra Keeps 'C' Term Loan Rating in Non-Cooperating VARDAAN LIFESTYLE: CARE Keeps B- Debt Rating in Not Cooperating VENKATESWARA CONSTRUCTIONS: CARE Keeps Ratings in Not Cooperating VISTA PHARMACEUTICALS: Ind-Ra Moves 'D' Rating to Non-Cooperating ZUBIC LIFESCIENCE: CARE Keeps D Debt Rating in Not Cooperating L A O S LAOS: Fitch Affirms 'CCC' LongTerm Foreign Currency IDR M A L A Y S I A ASIA MEDIA: Auditor Issues Disclaimer of Opinion MALAYSIA: Bankruptcy and Winding-up May Rise after Moratorium N E W Z E A L A N D SMARTWAY HOMES: Owner Takes Flight, Leaving Clients in Lurch TICKET ROCKET: Bank Seeks Millions From Runaway Owner S I N G A P O R E BAO TODAY: Creditors' Proofs of Debt Due on Sept. 7 FAIR PLAY: Creditors' Proofs of Debt Due on Sept. 6 SARAH PEARL: Creditors' Proofs of Debt Due on Sept. 6 SEABURY GLOBAL: Commences Wind-Up Proceedings TPB DEVELOPMENT: Creditors' Proofs of Debt Due on Sept. 6 - - - - - ================= A U S T R A L I A ================= AUSTRALIA: 650 Tourism Firms in Cairns on the Brink of Collapse --------------------------------------------------------------- SmartCompany reports that a Queensland tourism association said 650 tourism operators in Cairns are on the brink of collapse as a three-day coronavirus lockdown compounds the effects of reduced domestic travel. According to SmartCompany, Tourism Tropical North Queensland (TTNQ) is calling for urgent business support after Cairns and Yarrabah entered a three-day coronavirus lockdown on Aug. 9. "We estimate 650 businesses are hanging by a thread and may not have the cash flow to recover from 18 months without normal trading," SmartCompany quotes Ken Chapman, TTNQ chair, as saying. "We had JobKeeper last year and we need something like that again. There are thousands of jobs on the line." But the current lockdown is the latest of a series of challenges that tourism operators in the region are facing, SmartCompany says. Due to recent outbreaks of the Delta strain of COVID-19 across New South Wales, Victoria, Queensland and South Australia, lockdowns have significantly reduced the number of domestic travellers coming to northern Queensland. According to SmartCompany, Roderic Rees, owner of Cairns Adventure Group, said travellers from Sydney, Melbourne and Adelaide make up 80% of his market. "Earlier this week, before we had our snap lockdown here in Cairns, we had no customers anyway," Mr. Rees told SmartCompany. There are six businesses operating as part of Cairns Adventure Group, including white water rafting, bus tours through Cape Tribulation and Atherton Tablelands, and river tubing for families. Due to turbulent trading levels, Cairns Adventure Group has had between 50 and 70 staff employed over the last few months with the majority of them casual or part time. SmartCompany relates that Mr. Rees said while he has not received any direct business support this year, financial support is now crucial for many businesses. "A lot of people in the tourism industry live week-to-week so they don't have a huge safety net," he said. Since JobKeeper expired in March, Mr. Rees said there have been months where his turnover declined more than 80% compared to pre-pandemic levels. "We've had some really good periods but obviously when there are lockdowns, we've been down as much as 80% to 90%," the report quotes Mr. Rees as saying. Mr. Rees said to help businesses like his survive, any government support package must include cashflow support and a wage subsidy, SmartCompany relays. The industry has faced a workforce shortage which the state government tried to address through its 'Work in Paradise' campaign. But Mr. Rees said after spending May and June scaling up his workforce and training new staff, it will be difficult to keep them employed if there's no work for them to do. "We've been decimated on and off through the last 18 months, so we don't have any good cash reverses to fight through what we're going through right now," he said. HAORAS PTY: First Creditors' Meeting Set for Aug. 18 ---------------------------------------------------- A first meeting of the creditors in the proceedings of Haoras Pty Ltd will be held on Aug. 18, 2021, at 10:30 a.m. via teleconference. Marcus Watters and Richard Albarran of Hall Chadwick were appointed as administrators of Haoras Pty on Aug. 6, 2021. HORIZON GLOBAL: Posts $960,000 Net Income in Second Quarter ----------------------------------------------------------- Horizon Global Corporation filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q disclosing net income of $960,000 on $222.12 million of net sales for the three months ended June 30, 2021, compared to a net loss of $16.72 million on $120.49 million of net sales for the three months ended June 30, 2020. For the six months ended June 30, 2021, the Company reported a net loss of $14.19 million on $421.31 million of net sales compared to a net loss of $33.75 million on $283.74 million of net sales for the same period a year ago. As of June 30, 2021, the Company had $479.39 million in total assets, $501.88 million in total liabilities, and a total shareholders' deficit of $22.49 million. As of June 30, 2021 and Dec. 31, 2020, total cash and availability was $62.0 million and $83.4 million, respectively. The Company defines cash and availability as cash and cash equivalents and amounts of cash accessible but undrawn from credit facilities. "The positive momentum from the back half of 2020 and Q1 2021 continued into Q2 2021 as we once again realized significant profitability improvement across the business," stated Terry Gohl, Horizon Global's president and chief executive officer. "Given the impact of the global pandemic in 2020, we are comparing our Q2 2021 results against both Q2 2020 and Q2 2019. The Company has come a long way in two years, and we expect this positive momentum to continue into future periods. Gohl continued "Our strong financial results for Q2 2021 reflect the solid foundation we have built since we launched our turnaround plan in late 2019. We now have the talent, business processes and manufacturing and distribution capabilities to support profitable growth on an accelerated timetable. During the quarter, the team demonstrated extraordinary resilience as we encountered major macroeconomic headwinds relating to material costs, supply chain and logistics. While we dealt with these headwinds on a daily or even hourly basis, we did not lose focus of our strategic plan as we continued to identify and execute business improvement initiatives to improve our operational and financial performance." Gohl commented, "I want to thank the team for its resiliency and support as the business has transformed since late 2019. Of course, the job is not done. We have the foundation in place to accelerate our strategic plan and set our targets on double-digit margins. We believe this is possible through continuous operational improvement initiatives in the Americas, the realization of significant improvement opportunities in Europe-Africa and continuing to serve as the supplier of choice to our customers in our core geographies. We believe our roadmap to double-digit margins is achievable and will generate both near- and long-term value for our employees, customers and shareholders." A full-text copy of the Form 10-Q is available for free at: https://www.sec.gov/ix?doc=/Archives/edgar/data/1637655/000163765521000143/hzn-20210630.htm About Horizon Global Horizon Global -- http://www.horizonglobal.com-- is a designer, manufacturer, and distributor of a wide variety of custom-engineered towing, trailering, cargo management and other related accessory products in North America, Australia and Europe. The Company serves OEMs, retailers, dealer networks and the end consumer. Horizon Global reported a net loss attributable to the Company of $36.56 million for the 12 months ended Dec. 31, 2020, compared to net income attributable to the company of $80.75 million for the 12 months ended Dec. 31, 2019. As of March 31, 2021, the Company had $468.15 million in total assets, $492.41 million in total liabilities, and a total shareholders' deficit of $24.26 million. RESIMAC BASTILLE 2: S&P Affirms BB Rating on E Notes ---------------------------------------------------- S&P Global Ratings affirmed its ratings on five classes of notes issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC Bastille Trust - Warehouse Series No.2. The rating affirmations are required due to an increase in the size of the collateral pool following a drawdown on the warehouse facility. During the transaction's 12-month revolving period, the acquisition of assets by the trust can be funded by additional note issuance. S&P assesses the minimum levels of credit support, liquidity, and yield that are commensurate with its ratings on the notes before any such sales into the trust. This is because the credit support and liquidity requirement can change, depending on the characteristics of the portfolio. The rating affirmations reflect: -- The credit risk of the underlying collateral portfolio, which has increased to A$556 million from A$327 million. The weighted-average loan-to-value ratio of the loans now in the portfolio is 72.0% and the weighted-average seasoning is 3.8 months. -- The proportion of loans in the portfolio to borrowers whose income has not been fully verified has decreased to 85.9% from 90.8%. While these borrowers have not provided definitive proof of their income, RESIMAC Ltd. has carried out a range of checks to determine the reasonableness of their declared incomes. S&P Global Ratings has adjusted the minimum credit support for partially verified loans to reflect the lower standard of debt-servicing assessment on these loans. -- That loans comprising some 77.6% of the pool are to self-employed borrowers compared with 83.1% previously. Where RESIMAC has been unable to provide employment data, S&P has assessed a portion as being self-employed. S&P Global Ratings expects self-employed borrowers to experience higher cash-flow variability and, consequently, higher loan arrears, making them more susceptible to defaults should there be a downturn in the Australian economy. S&P Global Ratings assumes higher default frequencies for these loans. -- That loans representing 6.7% of the portfolio are insured by a primary lenders' mortgage insurance (LMI) policy provided by a rated mortgage insurer. The LMI policies cover the outstanding mortgage loan principal, accrued interest, and any reasonable enforcement expenses on the defaulted mortgage loans. -- That the credit support provided to each class of notes is commensurate with the ratings assigned and the rated notes can meet timely payment of interest and ultimate payment of principal under the rating stresses. Key rating factors are the level of subordination provided, the size of the liquidity facility, the principal draw function, the amortization amount built from excess spread if an amortization event is subsisting, and the provision of an extraordinary expense reserve. Ratings Affirmed RESIMAC Bastille Trust - Warehouse Series No.2 Class A: AAA (sf) Class B: AA (sf) Class C: A (sf) Class D: BBB (sf) Class E: BB (sf) SARGON CAPITAL: Lender Named as Deliberately Bankrupting Company ---------------------------------------------------------------- The Sydney Morning Herald reports that a Chinese state-owned financier bankrupted an Australian company by misdirecting payments in a deliberate attempt to take ownership, Parliament has heard. Documents tabled in Federal Parliament on Aug. 10 revealed China Taiping Insurance Group last year engaged an Australian public relations firm to advise on "media control" as one of its entities launched a "takeover" of superannuation fintech Sargon Capital, SMH relates. SMH relates that Sargon was placed into receivership by a subsidiary of China Taiping in January 2020, after the Chinese backers claimed that payments for interest for the September and December quarters in 2019 were not made on time. But internal documents from both Sargon and China Taiping appear to suggest that all payments were made weeks before receivers were called in. The documents have sparked allegations that the payments were deliberately redirected to present a failure to service debt, allowing for the appointment of an administrator and then a liquidator, the report says. Sargon, whose board included entrepreneur Phillip Kingston, former Crown Resorts chairman Rob Rankin and ex-Senator Stephen Conroy, received considerable negative media attention last year as it fell into receivership, recalls SMH. Documents tabled in Parliament by Liberal MP Tim Wilson show China Taiping Insurance Holdings, whose parent company is 90 per cent owned by China's Ministry of Finance, engaged the services of Australian public relations firm BlueChip Communication as its sister company launched the takeover, according to SMH. There is no suggestion that Bluechip Communication or its staff were aware of the claims about unpaid debts or were involved in any wrongdoing, SMH says. In a speech to Parliament tabling the documents, Mr. Wilson said if an Australian company was maliciously liquidated at the direction of a Chinese state-linked entity "this House would be rightly outraged". "Speaker, documents have come into my possession that appear to indicate that there was a deliberate campaign to trigger the receivership of Sargon by China Taiping," SMH quotes Mr. Wilson as saying. In an email to senior executives dated January 30, 2020, the China Taiping Insurance Holding's chief representative in Sydney, Domingo Xu, said it hired BlueChip to provide "relevant opinions and suggestions on media control". "Due to the rise of right-wing forces in Australia and the unstable political relations between China and Australia, the Australian media is full of negative reports about China recently, including espionage cases, Wuhan pneumonia to name a few," Mr Xu said, SMH relays. "The takeover of Sargon by Taiping Financial Holdings may be used by some anti-China media in Australia, which will affect the brand and reputation of China Taiping in Australia, and then may affect the development of our insurance business in Australia." The internal documents show the company wanted the media to refrain from referring to "China Taiping" but rather two other arms of the company - Taiping Trustees and Taiping Financial Holdings. In an email to China Taiping on the same day, BlueChip Communication's managing director Carden Calder said the "least desirable outcome is any negative mention of China Taiping or for China Taiping to be seen prominently to be driving this – to minimise risk we recommend immediate action". She recommended pursuing a "small target" strategy by establishing the "distinction between brands and minimising comment that might bring attention to the brand". The PR firm also said the company should avoid or minimise "on the record" comment but it may be required to provide "off the record comment" and "guidance" to journalists, SMH relays. In an email the next day, Ms. Calder said she had been in contact with the communications firm for receivers McGrath Nicol, who acknowledged it was an "unusual case". "One of the best defences is offence - for McGrath Nicol formally, or others informally, to establish clearly with media what led to the recovery action by your associated entity, for them to use the name Taiping Trustees or Taiping Financial NOT China Taping in backgrounding media, and for the events that lead to the appointment of receivers to become public," Ms. Calder wrote. The internal documents also revealed that China Taiping and BlueChip Communication were in contact in late 2019 about Sargon Capital. "Late last year you alerted us to potential legal action again [sic] Sargon by an associated entity but I believe you were not privy to the next steps to recover the investment (presumably the promissory note referred to above) not the imminent appointment of receivers," SMH quotes Ms. Calder as saying. "Sargon have been mentioned in previous media as under pressure, with doubt cast on their viability and long term prospects. Additionally, some of the named acquisitions in recent media are the subject of negative industry speculation and rumour." A voluntary administrator's report to creditors last year raised concerns about Sargon's losses of up to AUD38 million, its rapid expansion and the inability to raise capital in a pre-initial public offering in late 2019, SMH notes. The report said that interest payments for the September and December quarters of 2019 were not made on time, but administrators were only told of a AUD4.4 million payment in December, 2019, after the release of the report. Documents from inside the China Taiping companies reveal that they acknowledged receipt of the payment for the fourth quarter of 2019 almost a month before receivers were called in, despite later claiming that the payment had not been made. "Please note that the Taiping Securities Fund Account under Taiping Trust has received the interest from Sargon Australian Superannuation Project for the fourth quarter, totalling HK$10,054,644.81," a Taiping Assets Management employee emailed on January 2, 2020. After the appointment of administrators to Sargon Capital, its subsidiaries were forced to enter voluntary administration and as a result, its superannuation trustee businesses were sold to a holding company financed by US credit fund Vista Credit Partners in May, 2020. Westpac, which was Sargon's main lender, recovered most of the leftover money from the sale, SMH notes. ========= C H I N A ========= E-HOUSE (CHINA) ENTERPRISE: S&P Lowers ICR to 'B+', Outlook Stable ------------------------------------------------------------------ S&P Global Ratings, on Aug. 9, 2021, downgraded E-House (China) Enterprise Holdings Ltd. to 'B+' from 'BB-'. S&P also lowered its long-term issue rating on the U.S dollar notes issued by the company to 'B+' from 'BB-'. The stable outlook indicates that the impact from the delayed receivables from Evergrande will be partially offset by a planned equity placement, its net cash position, and a full consolidation of Leju's less capital-intensive business. E-House's operating cash flow will turn into a deficit. We lowered the rating because heightened counterparty risks from the company's primary real estate agency business will make its recently positive cash flow turn negative. This is because its biggest customer, China Evergrande Group (CCC/Negative/--), accounting for about 25%-30% of its primary sales over the last year, has experienced liquidity stress and will likely delay payment of its bills to E-House. S&P said, "We believe that the possible delay in receivables settlement by Evergrande could hit E-House's cash flow for at least two years. We estimate the agency company had at least Chinese renminbi (RMB) 3.5 billion to RMB4 billion in receivables due from Evergrande, as of June 2021." These bills would normally be honored by Evergrande within one-and-a-half years, at most. E-House is also facing weakened refinancing conditions due to the expected cash depletion. Its outstanding U.S.-dollar notes are now yielding about 18%, which could make refinancing expensive for the issuer. S&P said, "We therefore lowered the company's liquidity assessment to less than adequate, from adequate. We also revised our assessment of its capital structure to negative since the weighted average maturity of its debt was around 1.6-1.7 years as at end-June, according to our estimates." The issuer can somewhat offset the effect of likely negative operating cash flow over 2021 and 2022. S&P said, "E-House is preparing an equity placement, which may somewhat offset such an impact, and this supports our stable outlook. The company is seeking to raise HKD2.5 billion through a proposed equity placement to Alibaba Group Holding Ltd. (A+/Stable/--), Zhou Xin (the founder of E-House), and Yunfeng Capital Ltd. in the next one to two quarters. We also estimate that the company was in a net cash position as of end-June 2021, with a cash balance of RMB7 billion to RMB7.5 billion." Full consolidation of Leju will also help E-house's operating cash flow from falling too hard. Unlike E-House, Leju focuses on online-to-offline real estate services in China, such as online listings and advertising services. As such, Leju relies less on working capital and generates positive working cash flow. It generated about RMB700 million in operating cash flow in 2020. Fully consolidating Leju will also help E-House lower its leverage, as measured by debt-to-EBITDA, to about 3.9x-4.3x in 2021 from 5.7x in 2020 given the full-year EBITDA contribution. Further improvement is limited since Leju's EBITDA margin is relatively thin, at 4%-5%. E-House will also likely be more cautious about expanding into the working capital-intensive network brokerage business. The business will require E-House to pay advance commissions to network participants before receiving fees back from developers for the new home sales agency business. S&P expects E-House will continue to invest into the segment, but that a large-scale working capital outflow is unlikely given its focus on preserving cash. The accounts receivable days of E-House's primary agency real estate business should climb. China's enforcement of "three-red-line" regulatory guidance (curtailing funding to a swath of property developers), a continued clampdown in China on trust financing, and commercial banks' ongoing inclination to cut lending to the property sector all weigh on developers' liquidity. Developers are major customers of E-House's primary business, and they likely prioritize the conservation of cash flow. This could involve delayed payments to E-House. E-House's accounts receivable days will likely fall to 270-290 days in 2021 and 2022, from 370 days in 2020. Leju's accounts receivable days are only 100-110. Without Leju's contribution, E-House's receivable days would be close to 350 days in 2021 and 2022. The stable outlook reflects the planned equity raising, cash on hand, and the consolidated contribution from Leju. E-House's liquidity buffer, however, will be depleted. S&P also expects its network brokerage business will continue to grow over the next 12 months, due to the consolidation of Tmall Haofang, an online real estate sales platform. The primary real estate agency business, however, will only grow moderately in 2021, off a low, COVID-afflicted base in 2020. S&P said, "We could downgrade E-House if its credit standing weakens. This may follow a deterioration in profitability due to weakening market conditions, amid a debt-funded increase in investment in its businesses. A debt-to-EBITDA ratio sustainably above 4x without signs of improvement could indicate such weakness. "We could also downgrade E-House if we expected it to face difficulty refinancing US$300 million in senior notes due April 2022. "Although unlikely over the next 12 months, we could raise the rating on E-House if it demonstrated better working cash flow management and delivered sustainably positive working cash flow. Its capital structure would also need to improve such that the weighted average maturity of its debt was comfortably above two years on a sustained basis." ========= I N D I A ========= ABHIBUS SERVICES: Ind-Ra Keeps B- Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Abhibus Services (India) Private Limited's Long-Term Issuer Rating of 'IND B- (ISSUER NOT COOPERATING)' in the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR80 mil. Fund-based limit* maintained in non-cooperating category and withdrawn. *Maintained at 'IND B- (ISSUER NOT COOPERATING)'/'IND A4 (ISSUER NOT COOPERATING)' before being withdrawn. KEY RATING DRIVERS The ratings have been maintained in the non-cooperating category because the issuer did not participate in the rating exercise despite continuous requests and follow-ups by Ind-Ra. Ind-Ra is no longer required to maintain the ratings, as it has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE Incorporated in 2008, Abhibus Services (India), is an end-to-end solution provider to the Indian bus travel industry. 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). 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. ATLAS TEXTILES: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the ratings for the bank facilities of Atlas Textiles (AT) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1.68 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 9.25 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 31, 2020, placed the rating(s) of AT under the 'issuer noncooperating' category as AT 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. AT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 16, 2021, June 26, 2021, July 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). Established in 1988 as proprietorship concern and later reconstituted as partnership concern in July 2011, Atlas Textiles (AT) is engaged in manufacturing of readymade garments (mainly knitted and hosiery garments for men, women and kids). AT has two manufacturing facilities located in Tirupur with aggregate installed capacity of 20,000 pieces per day. The entity procures entire raw materials (mainly Yarn, cloth and accessories) from the local market. AT is an exports oriented firm and exports 100% of its sales to client base in UK, USA, Italy and South Africa. 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. BEEPEE ENTERPRISE: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Beepee Enterprise Private Limited (BEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.18 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 0.30 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 29, 2020, placed the rating(s) of BEPL under the 'issuer non-cooperating' category as BEPL 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. BEPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 14, 2021, April 24, 2021, May 4, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. BEPL was incorporated in 2003 and promoted by Poddar family. Company is manufacturer, supplier and exporter of linen i.e of bed sheets, table cloths, serviettes, chair covers, table linen, duvets, mats and other customized linen etc. the product find its application in textile and hospitality industry (Hotels, Hospital, and Airlines). BHARGAVA EDUCATIONAL: Ind-Ra Keeps 'B+' Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Bhargava Educational Society's bank facilities in the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR58 mil. Term loan maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING) rating; and -- INR5 mil. Working capital facility maintained in non- cooperating category with IND B+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 16, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Bhargava Educational Society has a registered office in Banga, Punjab and was established in 2011 under the Societies Registration Act, 1860. It runs one school – Darrick International School – in Gunachaur, Punjab. BORAH AGENCIES: CARE Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Borah Agencies Private Limited (BAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 20, 2020, placed the rating(s) of BAPL under the 'issuer non-cooperating' category as BAPL 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. BAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 5, 2021, June 15, 2021, June 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). Borah Agencies Private Limited (BAPL) was incorporated in September, 2007 by Mr. Prodip Borah of Dibrugarh, Assam, commenced as an authorized dealer of Hyundai Motor India Ltd. (HMIL) for its passenger vehicles, spares & accessories for Tinsukia district of Assam and four district of Arunchal Pradesh. Subsequently in Feb. 2013, the company entered into dealership agreement with Escorts Ltd (EL) for its commercial vehicles (like trucks, tractors, etc.), spares & accessories for two district of Assam & four district of Arunchal Pradesh and started selling the EL vehicles since May, 2013. The company offers the aforesaid products through its three showrooms (self-owned) equipped with 3-S facilities (Sales, Service and Spare-parts) located at Assam. BRAHMAGIRI DEVELOPMENT: CARE Lowers Rating on INR6.09cr Loan to C ----------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Brahmagiri Development Society (BDS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.09 CARE C; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Short Term Bank 1.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 24, 2020, placed the rating(s) of BDS under the 'issuer non-cooperating' category as BDS 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. BDS continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 09, 2021, June 19, 2021 and June 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). The ratings assigned to the bank facilities of BDS have been revised on account of non-availability of requisite information. The Brahmagiri Development Society (BDS) came into existence in 1999 with an objective of playing an active role in assisting the farming community in Wayanad attain self-sufficiency. The society also aims at empowering the farmers to tap modern technologies and mechanisms to improve their financial condition. The activities undertaken by the society include scientific fodder production, construction of cattle shed and bio-gas plants, distribution of azolla plants and implementation of Watershed Development programs with the assistance of the National Bank for Agriculture and Rural Development (NABARD) and the Western Ghats Development Programme (WGDP). C.I. AUTOMOTORS: CARE Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of C.I. Automotors Private Limited (CIAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.50 CARE B; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 19, 2020, placed the rating(s) of CIAPL 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. CIAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 5, 2021, May 15, 2021, May 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). Incorporated in May 1997, C.I. Automotors Private Limited (CIAPL) is promoted by Mr. Rakesh Malik, Chairman, of C. I. group of companies and has experience of more than three decades in managing various businesses. CIAPL primarily deals in Mahindra & Mahindra's (M&M) vehicles, spare parts and accessories while it also offers servicing of M&M vehicles. The company operates 3 showrooms and 2 service centers in Bhopal catering to the passenger and commercial vehicle segment. CIAPL belongs to C.I group headquartered in Bhopal, Madhya Pradesh. The group has three other companies under its umbrella viz; C.I. Finlease Limited having a dealership of Hyundai Motors India Limited, C.I. Capital Private Limited an NBFC engaged in vehicle financing and C.I. Builders Private Limited engaged in the real estate development. CRYSTAL SEA: Ind-Ra Cuts & Moves Long-Term Issuer Rating to 'D' --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Crystal Sea Foods Private Limited's (CSFPL) Long-Term Issuer Rating at 'IND D' and has simultaneously migrated it to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR57.5 mil. Long term loan (Long -term) due on October 2023 downgraded and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR250 mil. Fund-based working capital limit (Long-term / Short-term) downgraded and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The downgrade reflects CSFPL's delays in principal and interest servicing on its term debt during the 12 months ended July 2021. The lender has classified the company's account as Special Mention Account 1 and 2 over the 12 months ended July 2021, the details of which are unavailable. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could be positive for the ratings. COMPANY PROFILE Incorporated in June 2013, CSFPL operates a shrimp processing unit at Chirala (Andhra Pradesh). The company has an installed processing capacity of 10,500 metric ton and cold storage capacity of 2,100 metric tons. DEWAN HOUSING: Piramal Seeks RBI Nod to Settle DHFL's Foreign Debt ------------------------------------------------------------------ The Economic Times of India reports that the Piramal group has sought the Reserve Bank of India's (RBI) permission to reach a settlement and issue new debentures to the foreign lenders of DHFL, in what would be the first of its kind transaction. ET relates that offshore investors, some of whose identities are not readily available, had put in close to INR850 crore in masala bonds sold by DHFL - the non-bank mortgage lender that Piramal wants to take over following a bankruptcy court ruling. Offshore investors, some of whose identities are not readily available, had put in close to INR850 crore in masala bonds sold by DHFL - the non-bank mortgage lender that Piramal wants to take over following a bankruptcy court ruling. ET says DHFL's external commercial borrowings (ECB, or foreign loans) are about INR3,000 crore. Masala bonds are rupee-denominated debt papers issued by local companies to foreign investors. The application before RBI marks an important step as Piramal and banks plan to close the complex deal amid long delays and multiple court feuds. "Piramal is keen to take over as early as possible as more delay would further erode the value of DHFL. For instance, some of the retail borrowers may be prepaying the loan and in the absence of fresh disbursement, the retail home loan portfolio would shrink. Also, with the property market stabilising they don't want to miss the bus. Banks also want a closure - since they have fully provided the loans to DHFL, whatever they receive as cash and NCD will help their books in the September quarter," said a banker. About DHFL Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. As reported in the Troubled Company Reporter-Asia Pacific, Deccan Herald said the Mumbai bench of the National Company Law Tribunal (NCLT) on Dec. 2, 2019, admitted a petition by the Reserve Bank of India (RBI) seeking bankruptcy proceedings to resolve DHFL. The move came in after the Reserve Bank on Nov. 29, 2019, made an application for bankruptcy proceedings to resolve the credit and liquidity crisis at the company, which became the first financial sector player being sent for bankruptcy. RBI appointed R Subramaniah Kumar as the company's administrator. Financial creditors to DHFL have submitted claims worth INR86,892 crore against the mortgage lender, BloombergQuint disclosed. DURLAX INDIA: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Durlax India Private Limited (DIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 24.20 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Long Term/Short 10.00 CARE D; ISSUER NOT Term Bank COOPERATING; Rating continues Facilities to remain under ISSUER NOT COOPERATING category Short Term Bank 0.80 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 May 29, 2020, placed the rating(s) of DIPL under the 'issuer non-cooperating' category as DIPL 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. DIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 14, 2021, April 24, 2021, May 4, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Mumbai (Maharashtra) based, DIPL incorporated in the year 2010 is managed by by Mr Shravan L Suthar, Mr Lalit L Suthar, Mr Pankaj L Suthar, Mr Laxmichand L Suthar and Mr Amit Vyas. The company is engaged in the manufacturing and trading of acrylic solid surface sheets and adhesive. The manufacturing facility of the company is located at Valsad, Gujarat having an installed capacity to manufacture 1, 45,000 sheets per annum. The product of the company i.e. solid surface sheets and adhesives is primarily used as a countertop surface and is used in residential, hospitality, commercial and industrial settings. GLENMARK PHARMA: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed India-based Glenmark Pharmaceuticals Ltd's Long-Term Issuer Default Rating (IDR) at 'BB' after its active pharmaceutical ingredient (API) business completed an IPO. The Outlook is Stable. Glenmark retains an 82.8% stake in the API business, held under subsidiary Glenmark Life Sciences Limited (GLS), after the IPO. Glenmark intends to use most of the nearly INR11 billion of net proceeds from the IPO to repay debt. The debt reduction and Glenmark's intention to keep its growth and R&D strategy unchanged is likely to support an improvement in consolidated net debt to EBITDA to below the positive rating sensitivity level of 1.5x. Nonetheless, Glenmark's scale is unlikely to rise to USD2 billion over the next two years, which is a key rating sensitivity Fitch uses to measure improvement in Glenmark's business profile. Fitch will adjust Glenmark's consolidated EBITDA for the minority shareholding at GLS. Glenmark's geographical diversification and satisfactory record of regulatory compliance mitigate the business risk arising from its small size and support its rating relative to larger global generic drug makers. The affirmation also factors in Glenmark's adequate product pipeline and the robust long-term growth prospects in India, which limit the impact on profitability from continued pricing pressure in the US generic pharmaceutical market. Glenmark's strategy to cut risks in its novel drug development programme will preserve its financial flexibility. KEY RATING DRIVERS Small, Yet Diversified: Glenmark's revenue and operating EBITDA are low compared with that of major global generic drug makers, but this is offset by the company's geographical diversification across pure and branded generic markets, including the US, which accounted for 28% of revenue in the financial year to March 2021 (FY21), India (32%), Europe (12%), Latin America (4%) and others (24%). Scale and diversification are important for generic drug makers to maintain stable margins. Glenmark also has adequate competitive positions in its core dermatology and respiratory therapy segments. Minority Adjustment at GLS: Glenmark's large stake and absence of debt and related restrictions at GLS will underpin its access to GLS's cash flows. However, Fitch adjusts Glenmark's consolidated EBITDA and cash flow as availability of GLS's cash flow for servicing Glenmark's consolidated debt will be subject to leakages to minority shareholders. GLS's free cash flow before dividends will remain healthy as Fitch expects reduced interest payments after the repayment of business purchase dues from the IPO proceeds and moderate growth investment. Lower Leverage After IPO: GLS accounted for 30% of Glenmark's consolidated EBITDA in FY21, but Glenmark's large post-IPO stake will limit the impact from Fitch's adjustments for the minority share. Glenmark's approach to growth investments, R&D spending and dividend payout is unlikely to change after the IPO, in Fitch's view. This should underpin positive free cash generation and position Glenmark to sustain the improvement in leverage after the planned debt reduction in the near term. Glenmark is GLS's largest customer but limited overlap in therapy areas means that Glenmark's sourcing from GLS is below 20% of its total. Fitch does not expect any adverse cost impact as Glenmark's sourcing from GLS is conducted on an "arm's length" basis. Glenmark will receive INR8 billion as the remainder GLS owes the parent for buying the API business and an additional amount from the sale of part of its existing shares in GLS. Robust Long-Term Domestic Prospects: The government's focus on boosting mass healthcare access supports India's pharmaceutical demand. Glenmark's formulation business ranks 14th in India, with a revenue share of 2.3% in March 2021, according to IQVIA MAT. Nonetheless, stronger shares in dermatology (8.6%), respiratory (5.0%) and cardiovascular (4.7%) underpin its position in the fragmented and physician-driven market. Glenmark captured a 20% market share in antivirals with its Covid-19 drug, raising domestic revenue by 10.4% in FY21, beating the 5.9% market growth. Risks in Novel Drugs: The inherent risks of novel drug development are higher for Glenmark due to its small scale and limited record. Its R&D spending, although reduced to 11.2% of sales in FY21 from 14.7% in FY19, weighs on its profitability and free cash generation. Fitch expects Glenmark to take a measured and collaborative approach to R&D spending, in line with its strategy. The company has signed multiple partnerships for its R&D assets and plans to sell a stake in Ichnos Sciences Inc., a new subsidiary holding novel drug assets. A more aggressive approach may pressure credit metrics and financial flexibility, potentially outweighing the benefits of lower dependence on the highly competitive generic drug business over the long term. Glenmark aims to launch or monetise its R&D drugs in advanced stages of development in the medium term, which could provide significant earnings. Fitch's rating case does not include launches due to the uncertainty and potential delays in the approval process, highlighted by a delay in the approval of Ryaltris, its maiden new drug application in the US. Regulatory Risk: Lower production-facility diversification than peers exposes Glenmark to above-average risk from adverse regulatory actions. Nonetheless, its compliance record is satisfactory, with no further adverse actions from the US regulator after a warning letter for its Baddi facility in 2019. The warning does not affect existing products' sale. Baddi's contribution to Glenmark's US sales and new product pipeline is also limited. Glenmark is one of the defendants in a US drug price-fixing lawsuit. Fitch treats this as an event risk, as there is poor visibility over any potential liabilities. DERIVATION SUMMARY Glenmark has smaller scale and diversification than large generic pharmaceutical companies, such as Viatris Inc. (BBB/Stable) and Teva Pharmaceutical Industries Limited (BB-/Negative). The large peers also have deeper launch pipelines, with a focus on more complex products, which partly mitigate price-erosion risk, especially in the US. Glenmark is rated three notches below Viatris due to its weaker business profile and profitability, which are partly counterbalanced by Viatris's higher leverage. Glenmark is rated a notch above Teva, as Teva's stronger business profile is counterbalanced by acquisitions that raised leverage and modest financial flexibility in light of pricing pressure on its key specialty medicine and litigation. Glenmark is rated two notches below Hikma Pharmaceuticals PLC (BBB-/Stable), underscoring Hikma's larger scale and robust market positioning, particularly in the US injectables market. Hikma also has a stronger financial profile characterised by higher profitability and lower leverage, although Fitch expects Glenmark's leverage to improve to closer to that of Hikma's after repaying debt. Glenmark compares favourably with Ache Laboratorios Farmaceuticos S.A. (BB/Negative) and Jubilant Pharma Limited (JPL, BB/Stable), with its larger scale and greater geographical diversification. Nonetheless, JPL's greater presence in specialty pharmaceuticals partly counterbalances this. Glenmark will have somewhat lower leverage than JPL after the GLS IPO. Ache has a strong competitive position in Brazil and stronger credit ratios, but its Foreign-Currency IDR is capped by Brazil's Country Ceiling of 'BB'. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Revenue to increase by mid-single digits annually over FY22 FY23; -- EBITDA margin (after adjusting for minorities at GLS) to remain around 16% over FY22-FY23 (FY21 pro forma: 17.6%) as costs normalise from the low levels during the pandemic; -- Capex of INR7.9 billion in FY22 and 8.0% of sales in FY23; -- Stable annual dividend payouts at below 15% of net income. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An increase in scale to around USD2 billion in sales, while maintaining its current financial profile, and; -- Sustained positive free cash flow generation, and; -- Financial leverage, measured by consolidated net debt/EBITDA after adjusting for the minority shares at GLS, sustained at less than 1.5x (FY21: 1.8x). Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Weakening of the competitive position or adverse regulatory action by the US Food and Drug Administration; -- Deterioration in financial leverage to more than 3.0x. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Glenmark had readily available cash of INR11.0 billion at end-March 2021. This sufficiently covered INR8.0 billion in near-term debt maturities, including INR5.1 billion in short-term debt that Fitch expects lenders to roll over in the normal course of business. Glenmark took steps to reduce large maturities in FY22. It arranged bank facilities to redeem USD200 million in senior notes ahead of the August 2021 maturity. It also redeemed USD37 million in principal amount of convertible bonds in April 2021 and received consent from remaining bondholders to remove the put option before maturity in June 2022. The IPO proceeds will further strengthen the liquidity profile. Using the bulk of the proceeds for debt reduction will cut annual debt maturities, which are more than INR12 billion over FY23-FY25. Free cash generation will be insufficient to meet these maturities, but Glenmark has comfortable leverage and Fitch believes the debt reduction should further aid in refinancing. Fitch expects Glenmark to continue to proactively manage its refinancing needs. ISSUER PROFILE Glenmark is an India-based pharmaceutical company focused on branded and generic formulations, and API and novel drug development businesses. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. GOODWILL TEA: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Goodwill Tea and Industries Limited (GTIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 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 GTIL to monitor the ratings vide e-mail communications/letters dated April 14, 2021 and July 16, 2021 among others and numerous phone calls. However, despite our 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, GTIL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on GTIL's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. The rating takes into account the ongoing delays in the account of the company observed in various instances. Users of these ratings (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed Rationale & Key Rating Drivers At the time of last rating on May 8, 2020 the following were the rating strengths and weaknesses: Key Rating Weaknesses * Ongoing delays in debt servicing: There are ongoing delays in the account as observed through various instances of delays in debt servicing of the company. The overdrawal observed in the cash credit account on February 11, 2020 was regularized on March 16, 2020 with the cash credit account remaining overdrawn for more than 30 days within a period of last 90 days as on April 29, 2020. Furthermore, the overdrawal observed in the cash credit account on March 31, 2020 was not regularized as of April 27, 2020. Goodwill Tea and Industries Limited (GTIL) was incorporated during 1919 by one Mundra family in West Bengal for setting up a business of green/CTC tea plantation, processing and sales. The company has a tea garden in Jalpaiguri, West Bengal, namely Bandiguri Tea Estate which spread over 966 acres of land and a tea manufacturing unit with installed capacity of 16,00,000 kgs per annum. The total green leaf harvested in the year FY19 -20 is 44.17 Kg lakhs. Mr. Arun Kumar Mundra and Ms. Sunita Mundra are the promoters of the company with overall experience of more 30 and 20 years in the tea industry. They are supported by other three directors along with a team of experienced professional who are having long experience in similar line of business. GVK POWER: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------- CARE Ratings said the rating for the bank facilities of GVK Power (Goindwal Sahib) Limited (GPGSL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2,400 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 40.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated May 4, 2020, placed the ratings of GPGSL under the 'Issuer Non-Cooperating' category as GPGSL had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. Although GPGSL has submitted the required information for rating review, GPGSL continues to be non-cooperative despite repeated requests for adherence to Rating Agreement clauses. Resultantly, GPGSL continues to be under 'Issuer Non-Cooperating' category in line with CARE's extant policy in respect of non-cooperation by Issuer. CARE has reviewed the rating on the basis of the information as submitted by the company. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Incorporated in 1998, GPGSL is a wholly-owned subsidiary of GVK Energy Limited, which in turn is the subsidiary of GVK Power and Infrastructure Limited (GVKPIL), the flagship company of GVK group. GPGSL has implemented a 540 MW (2*270 MW), coal-fired thermal power project at Goindwal Sahib, District Tarn Taran, Punjab. The project was awarded to GVK group by Government of Punjab (GOP) & Punjab State Electricity Board (PSEB) during the year 1996, through International Competitive Bidding (ICB) route. The projected achieved COD in April 2016. GPGSL has executed an amended and restated PPA (for 25 years) with PSEB on May 26, 2009, for sale of entire electricity to be generated through a two-part tariff structure. HENRAAJH FEEDS: CARE Keeps B+ Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Henraajh Feeds India Private Limited (HFIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 17.72 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 July 20, 2020, placed the rating(s) of HFIPL under the 'issuer non-cooperating' category as HFIPL 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. HFIPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 5, 2021, June 15, 2021, June 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). Henraajh Feeds India Private Limited (HFPL) was incorporated in 2013 by Mr. Jaydeep Srivastava, Mrs. Jaya Srivastava and Mr. Parimal Basak to set up a manufacturing unit for cattle and poultry feeds. The manufacturing plant of the company is located at Khajekalan, Patna with aggregate installed capacity of 99000 metric tonne per annum. The company commenced its commercial operations at its plant from May 2016 onwards. The company procures its major raw material like soya and maize from Madhya Pradesh and Bihar respectively. HFPL mainly sale its product in Bihar, Uttar Pradesh, West Bengal and Jharkhand through its authorized dealers spread all over the stated regions. HITECH PRINT: Ind-Ra Hikes Long-Term Issuer Rating to 'BB-' ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Hitech Print Systems Limited's (HPSL) Long-Term Issuer Rating to 'IND BB-' from 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR82.56 mil. Term loan due on November 2024 upgraded with IND BB-/Stable rating; -- INR140 mil. Fund-based working capital limits upgraded with IND BB-/Stable rating; and -- INR55 mil. Non-fund-based working capital limits upgraded with IND A4+ rating. The upgrade reflects an improvement in HPSL's liquidity position in FY21 and a likelihood of an improvement in its revenue and credit metrics in FY22. KEY RATING DRIVERS Liquidity Indicator – Stretched: HPSL's average maximum utilization of the fund-based and the non-fund-based limits was 92.03% and 16.2%, respectively, during the 12 months ended June 2021. The cash and cash equivalents increased to INR11.48 million at FYE21 (FYE20: INR6.68 million). However, the cash flow from operations deteriorated to INR8.05 million in FY21 (FY20: INR25.25 million), due to unfavorable changes in working capital. The free cash flow improved, although remained negative, to INR6.91 million (FY20: negative INR9.01 million) due to lower capex. The net working capital cycle elongated to 229 days in FY21 (FY20: 156 days), due to an increase in the receivable period to 217 days (158 days). HPSL does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. Ind-Ra expects the company's revenue to improve in FY22, given the company is operating at full capacity amid COVID-19-led restrictions. During FY21, HPSL's manufacturing facilities were shut for three and a half months due to the ongoing pandemic, leading to a decline in the revenue to INR578.38 million (FY20: INR838.21 million). As of 4MFY22, HPSL achieved revenue of INR180 million and had an order book of around INR210 million. For FY22, management expects revenue of INR900 million as it has a large presence in southern India and is expanding into northern and central India. The company caters to educational institutions and is planning to diversify into banking and governmental institutions. However, Ind-Ra expects the scale of operations to remain small. The company's return on capital employed was 6.8% in FY21 (FY20: 13.2%) and the EBITDA margin was modest at 12.15% (12.47 %) The EBITDA margin declined as the administrative expenses were not absorbed efficiently due to the decline in revenue. In FY22, management expects the EBITDA margin to improve due to a likely increase in the revenue. The ratings are constrained by HSPL's modest credit metrics. The gross interest coverage (operating EBITDA/gross interest expense) deteriorated to 2.75x in FY21 (FY20: 3.61x) and the net financial leverage (adjusted net debt/operating EBITDA) to 3.27x (2.11x), due to a decrease in the absolute EBITDA to INR70.29 million (INR104.55 million) and an increase in the debt to INR241.03 million (INR227 million). However, Ind-Ra expects the credit metrics to improve in FY22 due to a likely improvement in the EBITDA, despite the planned capex which will be partially funded through external borrowings. However, the ratings continue to be supported by the promoters' over three decades of experience in the printing industry, leading to established relationships with its suppliers. RATING SENSITIVITIES Positive: An increase in the revenue and profitability, leading to an improvement in the credit metrics and the liquidity position, all on a sustained basis, will be positive for the ratings. Negative: A decline in the revenue or profitability, leading to a further deterioration in the credit metrics with the net leverage exceeding 4.5x and/or a deterioration in liquidity profile, will be negative for the ratings. COMPANY PROFILE HPSL, a wholly-owned subsidiary of Anjani Vishnu Holding Limited (formerly Anjani Projects & Construction Limited), is primarily engaged in the printing business. It has manufacturing facilities in Vijayawada and Hyderabad. It has five marketing offices in Bengaluru, Chennai, Bhopal, Mumbai and New Delhi. INNOVATIVE IDEALS: CARE Reaffirms D Rating on INR10cr LT Loan ------------------------------------------------------------- CARE Ratings reaffirmed ratings on certain bank facilities of Innovative Ideals and Services (India) Limited (II&SL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D Rating removed from Facilities ISSUER NOT COOPERATING category and Reaffirmed Short Term Bank Facilities 0.30 CARE D Assigned Detailed Rationale & Key Rating Drivers The ratings assigned to the bank facilities of II&SL takes into account the ongoing delays in servicing of debt obligations due to stretched liquidity position. Key Rating Sensitivities Positive Factors * The company's ability to establish a track record of timely servicing of debt obligations with improvement in liquidity position. Detailed description of the key rating drivers Key Rating Weaknesses: * Ongoing delays in debt servicing: There were delays in repayment of term loan installment and interest for loan provided under GECL – COVID 19 of INR2.00 crore. Furthermore, the account has been restructured and given interest moratorium till March 31, 2022. * Stretched liquidity position: The Company has stretched liquidity position marked by negative cash accruals in FY21 and funds blocked in inventory and debtors due to non-execution of orders owing to overall slowdown in industry. Liquidity Analysis: Poor The liquidity position remained poor marked by lower accruals when compared to repayment obligations, fully utilized bank limits and low cash balance of INR0.01 crore as of March 31, 2021 (vis-à-vis 0.006 crore as of March 31, 2020). Further its liquidity position remained weak marked by current ratio and quick ratio stood at 1.86 times and 0.82 times respectively in FY21 owing to higher inventory maintained by the company. The net cash flow from operating activities stood negative at INR2.45 crore in FY21 vis-à-vis negative at INR7.15 crore in FY20. Innovative Ideals and Services (India) Limited (II&SL), is providing services of system integration for security, safety and building automation and installation of various electronic systems. II&SL provides range of services like video door phone, audio door phone, access controls, home automation systems, intrusion alarm system, CCTV systems, fire alarm systems and telecom products. II&SL provides video door phones under its own brand name 'Onyx' & 'Inok'. Further, home automation solutions under the brand name of 'eHomes'. Further, II&SL had developed small product namely 'Savior' with a view of safety and security of senior citizen and children which can be worn as a wrist watch, ARMHer which is mainly for safety for women segment (With press of single button, communication reaches to all emergency contact details with GPS location of the person) and also provides mobile phones under 'Inoyo brand and cookware under the name of Baro Cook. JAI VENKAY: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jai Venkay Poultry Farms (JVPF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.74 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 19, 2020, placed the rating(s) of JVPF under the 'issuer non-cooperating' category as JVPF 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. JVPF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 5, 2021, May 15, 2021, and May 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). Andhra based, Jay Venkay Poultry Farms (JVPF) was established in the year 2008 and promoted by Mr. K Venkata Rao and family members. The firm is engaged in farming of egg-laying poultry birds(chickens) and trading of eggs and live birds. The firm sells its products like eggs and live birds in Andhra Pradesh to retailers through own sales personnel. The firm buys chicks (small chickens) from Srinivasa hatcheries private limited, Vijayawada. The firm purchases raw materials like rice brokens, sun flower cake from local farmers, and soya from Harikrishna & Co, Suvarnalakshmi trading company. JAMPESWAR AGRO: CARE Keeps B Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jampeswar Agro Udyog Private Limited (JAUPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.40 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 July 21, 2020, placed the rating(s) of JAUPL under the 'issuer non-cooperating' category as JAUPL 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. JAUPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 6, 2021, June 16, 2021, June 26, 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). JAPL was incorporated in Jan 28, 2012, by Mr Siddharth Mondal, Mr Rabindranath Chowdhury, Mr. Ramkrishna Banerjee and Mr. Somnath Banerjee of Birbhum, West Bengal with Mr. Siddharth Mondal being the main promoter. The company commenced operation in December 2013. JAPL is engaged in the processing and milling of rice. The milling unit of the company is located at Birbhum, West Bengal with processing capacity of 21,600 metric tonnes per annum. KROSS LIMITED: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' ------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Kross Limited's Long-Term Issuer Rating to 'IND BB (ISSUER NOT COOPERATING)' from 'IND BBB (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. The instrument-wise rating actions are: -- 132.2 mil. Term loan due on September 2022-July 2024 downgraded with IND BB (ISSUER NOT COOPERATING) rating; --465.0 mil. Fund-based working capital limits downgraded with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and --130.0 mil. Non-fund-based working capital limits downgraded with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer not cooperating; based on the best available information KEY RATING DRIVERS The downgrade is pursuant to the SEBI Circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3, 2020. As per the circular, any issuer having an investment-grade rating remaining non-cooperative with a rating agency for over six months should be downgraded to a sub-investment grade rating. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect KL's credit strength as the issuer has been non-cooperative with the agency since January 4, 2021. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Kross was incorporated in May 1991 by Sudhir Rai. It manufactures automobile parts for commercial vehicles and tractors. It has three manufacturing plants, including a forging unit, in Jamshedpur. M.K. MATHIVATHANAN: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of M.K. Mathivathanan (MM) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.32 CARE B-; ISSUER NOT Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 28, 2020, placed the rating(s) of MM under the 'issuer noncooperating' category as MM 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. MM continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 13, 2021, June 23, 2021 and July 3, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Mr. M K Mathivathanan (MKM) heads the Kasi group of companies which was established in November 1948. He operates 'Hotel Kasi' situated in the Tiruthani Tirupathi highway under a proprietorship named M/s. M.K. Mathivathanan. MAGPIE GLOBAL: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Magpie Global Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR10 mil. Non-fund-based limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- The 'IND BB' rating on the INR60 mil. Proposed fund-based limit* is withdrawn. *The ratings have been withdrawn since the instruments were outstanding for more than 180 days Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 17, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2006, Magpie Global is engaged in the import, export and distribution of alcoholic beverages and cigarettes. MAXIMAA SYSTEMS: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Maximaa Systems Limited (MSL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.33 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 2.00 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 31, 2020, placed the rating(s) of MSL under the 'issuer non-cooperating' category as MSL had failed to provide information for monitoring of the rating. MSL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 16, 2021, June 26 2021 and July 6, 2021 among others. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on July 31, 2020 the following were the rating strengths and weaknesses (updated for the information available from Bombay Stock Exchange): Key Rating Weaknesses * Delay in Debt Servicing: MSL's account has been classified as Non-Performing Asset (NPA) by Bank of India on account of ongoing delay in debt servicing. Incorporated in 1990, Maximaa System Limited [(MSL) originally established as a partnership firm in the year 1983] listed on the Bombay Stock Exchange is engaged in business of manufacturing and trading of different types of industrial storage systems [i.e. lockers, cupboards & steel furniture made of CRC sheets & is in the form of slotted angles, panels of different specifications and design for storing inventory] and IT services. Further, the company ventured into manufacturing pharmaceutical formulations making ayurvedic in combination with probiotics. MOHINI HEALTH: Ind-Ra Lowers Long-Term Issuer Rating to 'BB+' ------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Mohini Health & Hygiene Limited's (MHHL) Long-Term Issuer Rating to 'IND BB+' from 'IND BBB' while resolving the Rating Watch Negative (RWN). The Outlook is Stable. The instrument-wise rating actions are: -- INR300 mil. Fund-based working capital limit downgraded; Off RWN with IND BB+/Stable/IND A4+ rating; -- INR200 mil. Long term loan due on FY24 downgraded; Off RWN with IND BB+/Stable rating; and -- INR96.4 mil. (reduced from INR100 mil.) #*Fund-based working capital limit assigned; Off RWN with IND BB+/ Stable rating. *Working capital term loan of INR26.4 million is a sub-limit of fund-based limits of INR96.4 million. #Final rating has been assigned since the company has given documentation to the satisfaction of Ind-Ra. Analytical Approach: Ind-Ra continues taking a consolidated view of MHHL and its subsidiaries, Vedant Kotton Private Limited (VKPL) and Mohini Hygiene Care Products Pvt Ltd (MHCPPL), collectively referred to as the Mohini Group, in view of the strong operational and moderate strategic linkages between the entities. VKPL's supply is integral to MHHL's core business operations. While MHHL did not extend any tangible support to VKPL till 31 March 2021, MHCPPL is providing tangible support to MHHL through fund transfers. The downgrade reflects the disruptions in MHHL's operations for over two months, leading to substantial loss of revenue and resultant stretched liquidity, owing to the breakout of fire at MHHL's only plant and registered office at Pithampura (Madhya Pradesh) on May 24, 2021. KEY RATING DRIVERS The rating reflects Mohini Group's continued moderate scale of operations reflected from its revenue of INR1,374.9 million in FY21 (FY20: INR1,219.8 million). The group revenue increased in FY21 due to an increase in the domestic sale of healthcare products (such as N95 masks, sanitizers and personal protective equipment kits due to the spread of COVID-19) as well as increased exports. On a standalone basis, MHHL achieved a turnover of INR1351.5 million and VKPL of INR23.4 million in FY21. However, Ind Ra expects the group to witness a revenue loss of INR160 million over June and July 2021, and thus expects the group to post lower yoy revenue in FY22. The ratings factor in the group's modest credit metrics, which improved in FY21 owing to an increase in the absolute EBITDA to INR176 million (FY20: INR108.6 million). The interest coverage (operating EBITDA/gross interest expense) stood at 4.1x in FY21 (FY20: 3.2x) and the net financial leverage (total debt/operating EBTIDA) at 2x (3.1x). MHHL's standalone interest coverage stood at 3.9x in FY21 (FY20: 2.5x) and net leverage at 2.1x (3.1x). The ratings are also constrained by the group's modest margin, which expanded to 12.8 % in FY21 (FY20: 8.9%) due to demand-driven increase in product realization. The company's return on capital employed stood at 10.9% in FY21 (FY20: 5.2%). Liquidity Indicator – Stretched: The group's average maximum utilization of the fund-based limits was around 86% of sanction limits over the 12 months ended July 2021. In FY21, the cash flow from operations declined to INR72.8 million (FY20: INR121.9 million) due to an increase in the working capital requirement. The company's free cash flow also turned negative to INR17.3 million (FY20: INR93.8 million) due to planned capital expenditure of INR90.1 million (INR28.2 million). The cash and cash equivalents stood at INR10.8 million in FY21. The company's working capital cycle elongated to 163 days in FY21 (FY20: 115 days) as a result of substantial increase in inventory. Ind-Ra expects the group's inventory (including damaged goods) to remain piled up in FY22 until the fire-related insurance claim is received. The company has a repayment obligation of INR64.6 million in FY22, and the agency expects the liquidity to improve post timely receipt of insurance claim. The ratings, however, are supported by MHHL's diversified product profile and the promoter's extensive experience of a decade in the same line of business, leading to strong customer relationships. RATING SENSITIVITIES Positive: Further developments that may, individually or collectively, lead to a positive rating action are: -- stabilization in operations, leading to steady revenue and EBITDA margins -- maintaining the credit metrics in line with FY21's levels the timely realization of insurance claim, leading to an improvement in liquidity Negative: Any decline in the scale of operations and profitability leading to further deterioration in liquidity profile along with credit metrics will be negative for the ratings. COMPANY PROFILE Incorporated in 2009 in Indore and promoted by the Bansal family, MHHL is engaged in the recycling of cotton waste and the manufacturing of absorbent cotton and value-added products. The company has been listed on the National Stock Exchange since March 2018. VKPL is engaged in the processing of raw cotton and selling in domestic markets. NEXT GENERATION: Ind-Ra Keeps 'D' Loan Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Next Generation Charitable Trust's term loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR53.11 mil. Term loan (long-term) due on March 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on August 5, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE Next Generation Charitable Trust was established in 2013 by Chandan Agarwal. The trust established its first school G.D. Goenka Public School in collaboration with G. D. Goenka Private Limited in Bareilly. NOVARC LABS: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Novarc Labs Private Limited (NLPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.00 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 19, 2020, placed the rating(s) of NLPL under the 'issuer non-cooperating' category as NLPL 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. NLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 05, 2021, May 15, 2021, and May 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). Novarc Labs Private Limited (NLPL) was established in the year 2012, promoted by Mr. Thilotham R Kolanu. The company is engaged in trading of medical drug products. The company purchases the medical components (used in manufacturing of medicines) like 2 hydroxy methyl, 2 chloro methyl and 2m5m benzimidizole from suppliers, namely i.e. Ariston pharma Novatech, Nexus Drugs and Prabhu Chemicals. The company receives the work orders directly from the customers, namely Ariston Pharma Novatech (P) Ltd, Vijayasri Pharma Chem and Leavochem Labs Private Limited. The company is located at Madhapur, Hyderabad (Telangana). PARAS BHAVANI: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Paras Bhavani Steel Private Limited (PBSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 50.24 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 22.00 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 29, 2020, placed the rating(s) of PBSPL under the 'issuer non-cooperating' category as PBSPL 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. PBSPL continues to be noncooperative 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). Incorporated in October 2007, PBSPL is engaged in manufacturing of welded, seamless and stainless steel (SS) pipes at its manufacturing facilities located at Odhav and Rajpur (Kadi), near Ahmedabad in Gujarat. The company is promoted by Mr. Parasmal S. Bohra and his family members. The company manufactures a diversified range of steel rolled products like SS seamless tubes and pipes and caters to various industries including construction, automobile, textile, food processing and pharmaceuticals. 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. PARIKH BROTHERS: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Parikh Brothers' Long-Term Issuer Rating of 'IND BB- (ISSUER NOT COOPERATING)'. The instrument-wise rating actions are: -- The 'IND BB-' rating on the INR110 mil. Fund-based limits is withdrawn; and -- The 'IND BB-' rating on the INR5 mil. Non-fund-based limits is withdrawn. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-dues certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. Ind-Ra will no longer provide analytical and rating coverage for the entity. COMPANY PROFILE Parikh Brothers was incorporated in 1988. The firm imports, exports and processes/manufactures diamond stones of various qualities. PLATINUM AAC: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Platinum AAC Blocks Private Limited (PABPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.75 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 18, 2020, placed the rating(s) of PABPL under the 'issuer non-cooperating' category as PABPL 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. PABPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 4, 2021, May 14, 2021, May 24, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Platinum AAC Block Private Limited (PABPL) was incorporated in September 2012 to take up the business of manufacturing Aerated Autoclaved Concrete (AAC) blocks. PABPL was initially promoted and managed by Mr. Jitendra Jalawadia, Mr. Dilip Kadivar, Mr. Sanjay Bhut Bhanubhai, Mr. Hasmukh Patel, Mr. Pragji Van and Mr. Vinay Gandhi. Since May 2017, four new promoters joined as directors named Mr. Denis Kadivar, Mr. Ghanshyam Polar, Mr. Parth Gandhi & Mr. Khimji Bhappa and Mr. Vinay Gandhi retired as a director during November 2017 but continue to operate and manage day to day operations of the company. PABPL is operating with its plant location-based in Village-Kherdi (Dadara and Nagar Haveli, Gujarat) having total capacity of 1,50,000 cubic meters per annum as on March 31, 2018. PABPL has commenced its operations from November 2017 after successful completion of its project. POLYWELL ENTERPRISES: CARE Keeps B- Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Polywell Enterprises (PE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.56 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide press release dated July 1, 2020, had placed the ratings of PE 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. PE 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. Jaipur (Rajasthan) based Polywell Enterprises (PE) was formed in 2010 as a proprietorship concern by Dr. Chandra Shekhar Baid. PE is engaged in the business of manufacturing and trading of distinguished range of pet bottles, pet jars, water campers, pet perform and cap inner etc. The firm sells its products in domestic market as well as export to Middle East countries. During FY16, it has generated 24.74% of TOI from export sales (as against 40% in FY15) and remaining from domestic market. It markets its products under the brand name of “Welkin” all over India and abroad. It sells its product mainly to water packaging industry. The plant of the firm has located and has an installed capacity of 1500 metric tones as of March 31, 2016 as against 1100 metric tons as of March 31, 2015. PRIMACY INDUSTRIES: Ind-Ra Cuts Long-Term Issuer Rating to 'D' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Primacy Industries Limited's (PIL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND B (ISSUER NOT COOPERATING). The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR285.4 mil. Term loan (Long-term) due on September 30, 2020 downgraded with IND D (ISSUER NOT COOPERATING) rating; -- INR1.40 bil. Fund-based limits (Long-term/short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR52.8 mil. Non-fund-based working capital limits (Short- term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on the best available information KEY RATING DRIVERS The downgrade reflects delays in debt servicing and the categorization of some of PIL's debt facilities as non-performing assets, the details of which are not available. COMPANY PROFILE Established in 2005, Primacy manufactures scented decorative wax candles and air fresheners of different varieties at its manufacturing facilities in Mangalore and Gujarat. PRN INFRATECH: Ind-Ra Lowers Bank Loan Rating to 'BB' ----------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded PRN Infratech's bank facilities' ratings to 'IND BB (ISSUER NOT COOPERATING)' from IND 'BBB- (ISSUER NOT COOPERATING)'. The detailed rating actions are: -- INR360 mil. Fund-based working capital limits downgraded with IND BB (ISSUER NOT COOPERATING) rating; and -- INR450 mil. Non-fund-based working capital limits downgraded with IND A4+ (ISSUER NOT COOPERATING) rating. KEY RATING DRIVERS The downgrade is pursuant to the Securities and Exchange Board of India's circular SEBI/HO/MIRSD/CRADT/CIR/P/2020/2 dated January 3, 2020. As per the circular, any issuer with an investment grade rating remaining non-cooperative with a rating agency for more than six months should be downgraded to a sub-investment grade rating. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' might not reflect PRN's credit strength as the company has been non-cooperative with the agency since January 20, 2021. Therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE PRN Infratech (erstwhile P. R. Nayak Associates), incorporated in August 2005, is a partnership firm held by P. R. Nayak, his family members. It is a Class one civil/electrical contractor for the Public Works Department in Karnataka, which is involved in infrastructure development, such as construction of roads, irrigational canals, dams and bridges in Karnataka, Goa and Maharashtra. QRS RETAIL: CARE Keeps B+ Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of QRS Retail Limited continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 65.86 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 QRL under the 'issuer non-cooperating' category as QRL 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. QRL 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, 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). QRS Retails Ltd is a public limited company started by Mr. D. Arunachalam and Sri D Thilakarajan as Quilon Radio Service in 1947 with retailing of 'Philips' radios and radiograms. The company is now engaged in the retail Trade of consumer durables and electronic appliances. As of March 31, 2018, the company had 28 retail outlets Including 3 'Max' outlets, 2 'Nilgiris' Outlets, 2 'World of Titan' and balance electronics stores. RADHA CASTING: CARE Lowers Rating on INR4cr LT Loan to B- --------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Radha Casting and Metalik Private Limited (RCMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.00 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 8, 2020, placed the rating(s) of RCMPL under the 'issuer non-cooperating' category as RCMPL 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. RCMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 24, 2021, May 4, 2021, May 14, 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 RCMPL have been revised on account of non-availability of requisite information. The ratings also factored in decline in Profitability and debt coverage indicators during FY20 over FY19. RCMPL was incorporated in June 2006, was promoted by brothers Mr. Dhananjay Kumar and Mr. Pawanjay Kumar of Jharkhand. The company had initially set up a pig iron plant (installed capacity 15000 metric tonnes per annum: MTPA) at Ramgarh, Jharkhand and commenced commercial operation in the year 2008. But, later on, in May 2011, the company was forced to shut down its pig iron plant due to iron ore scarcity owing to iron ore mining-related issues leading to rising raw material cost and weak demand. Since, February 2012, the company had started manufacturing Mild Steel (MS) Ingots with installed capacity of 15, 000 MTPA at its existing plant. SIGMA INDUSTRIAL: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sigma Industrial Corporation (SIC) 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 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. SSPT LOGISTICS: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of SSPT Logistics (SL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 23, 2020, placed the rating(s) of SL under the 'issuer noncooperating' category as SL 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. SL 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). SSPTL was incorporated in January 2013 as a partnership firm by Mr P. Maruthavel and his brother Mr P. Jayavel with their family members. The firm is engaged in logistics services, i.e. speed parcel and cargo services. STEEL EXCHANGE: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Steel Exchange India Limited (SEIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 575.42 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 347.00 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 6, 2020, placed the rating(s) of SEIL under the 'issuer non-cooperating' category as SEIL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SEIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and an email dated March 22, 2021 and April 11, 2021 among others. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in February 1999, Steel Exchange India Ltd (SEIL) is primarily engaged in the manufacturing of TMT bars apart from billets, ingots and power generation. The company has a manufacturing facility for sponge iron (220,000 Tons Per Annum (TPA)), billets (240,000 TPA), ingots (90,000 TPA), and TMT bars (225,000 TPA). Apart from the above, the company also has wire drawing unit with capacity of 30,000 TPA and a 12 MW gas-based power plant. The company also deals in sale and purchase of steel products through its trading division and is recognized as one of the largest dealers for Rashtriya Ispat Nigam Limited. In November 2014, Simhadri Power Limited after receipt of due approvals from high court of Andhra Pradesh is merged with SEIL. A 60MW thermal power plant is located within the premises of SEIL. TUSHA TEXTILES: Ind-Ra Moves 'B+' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Tusha Textiles (Mumbai) Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR150 mil. Fund-based working capital limits migrated to non- cooperating category with IND B+ (ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 16, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2002, Tusha Textiles (Mumbai)manufactures fabric. The company has two manufacturing units in Mumbai, Maharashtra with a total installed capacity of 660,000 meters per month. V S EDUCATION: Ind-Ra Keeps 'C' Term Loan Rating in Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained V S Education Foundation's term loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND C (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR75 mil. Term loan due on March 2024 maintained in non- cooperating category with IND C (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on August 21, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE V S Education Foundation, established by Vishal Kansal, operates Delhi Public World School in Ludhiana, Punjab, in collaboration with DPS World Foundation. VARDAAN LIFESTYLE: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Vardaan Lifestyle Limited (VLL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 5, 2020, placed the rating(s) of VLL under the 'issuer non-cooperating' category as VLL 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. VLL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated April 21, 2021, May 1, 2021, May 11, 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. VLL (VLL: earlier known as Ram India Mittal Township Limited) is a special purpose vehicle of Mittal Brothers Group. The company earlier in March 2007 was established as a partnership firm under the name of "Ram India Mittal". In the year 2014, the company changed its constitution to limited company. Later in September 2017, the company changed its name to VLL. Currently, VLL is developing a residential cum commercial development under the name "Cleveland ParkPhase II (earlier known as Life Park Plus)". The total cost of the project is expected to be funded through promoter's contribution, term loan. VENKATESWARA CONSTRUCTIONS: CARE Keeps Ratings in Not Cooperating ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Venkateswara Constructions Private Limited (SVCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 24.00 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 24, 2020, placed the rating(s) of SVCPL under the 'issuer non-cooperating' category as SVCPL 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. SVCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 9, 2021, June 19, 2021 and June 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). Andhra Based, Sri Venkateswara Constructions (SVCPL) was established in the year 2006 as partnership firm. Later on, in the year 2012, SVCPL change its constitution to current nomenclature Sri Venkateswara Construction Private Limited (SVCPL). The company is engaged in Civil construction works includes construction of bridges for railway track, fabrication work, earth work, construction of buildings to government organization, transmission lines and canal works among others. The company purchase the raw material like cement, steel, sand and concrete etc. within Andhra Pradesh. VISTA PHARMACEUTICALS: Ind-Ra Moves 'D' Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Vista Pharmaceuticals Ltd.'s (VPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR10 mil. Fund-based working capital facilities (Long- term/Short-term) migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR30 mil. Non-fund-based limits (Short-term) migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR60 mil. Term loan (Long-term) due on March 2027 migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 8, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 1992, VPL manufactures pharmaceutical drugs such as sulphamethoxazole, trimethoprim and isoxsuprime. VPL is a 100% export oriented unit and caters to the US market. It is having a manufacturing facility in Andhra Pradesh. 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. ======= L A O S ======= LAOS: Fitch Affirms 'CCC' LongTerm Foreign Currency IDR ------------------------------------------------------- Fitch Ratings has affirmed Laos's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. Fitch typically does not assign Outlooks or apply modifiers to sovereigns with a rating of 'CCC' or below. KEY RATING DRIVERS Laos's 'CCC' rating reflects external liquidity pressures arising from the sovereign's large external debt maturities over the medium term amid modest foreign-exchange reserves and limited external financing options. The sovereign's external debt repayment profile remains challenging, with around USD422 million due over the remainder of 2021 and an average of USD1.16 billion due per annum between 2022 and 2025. The government repaid the USD150 million notes that matured in June. An additional USD165 million equivalent in Thai baht bonds will be due in in October and November. Financing for Laos to meet its obligations in the rest of 2021 appears adequate, but an external financing gap remains for next year. The sovereign is set to receive a substantial fee of around USD600 million from EDL-T, a joint venture of the state-owned electricity company, EDL, and China Southern Power Grid Co., Ltd. (A+/Stable) for the operation of the country's transmission lines. Privatisation of state-owned banks and SOEs have also provided additional funds. These funds will help ease liquidity risks in 2022. Fitch expects the government to pursue further asset sales and concession agreements to shore up external liquidity over the next few years, particularly as the new administration has opted for a greater focus on equity over debt financing. This will likely support external liquidity in the near term, but it could come at the expense of fiscal and foreign-exchange revenues in the longer run. China remains a key source of bilateral financing and possible debt relief, as roughly half of Laos's external debt repayments in the coming years are due to China. Laos did not participate in the G-20's Debt Service Suspension Initiative, but has sought a bilateral debt suspension agreement with China. The People's Bank of China also extended a yuan swap line with the Bank of the Lao PDR in mid-2020, which helped to boost foreign-exchange reserves. Further support could be forthcoming and will be central to external financing prospects. Fitch believes other external financing options appear more limited. The sovereign may try to tap international markets later in 2021, although it was unsuccessful in its attempt at an inaugural international bond issuance early in 2021. Rolling over upcoming maturities in the Thai bond market may also prove challenging as the sovereign did not roll over its maturities last year. However, state-owned EDL-Gen raised about USD115 million in the Thai bond market in July. Multilateral financing remains a potential option, but Fitch sees no indications this path is being pursued. The Bank of Lao maintains a managed exchange rate, and has allowed the kip to depreciate by approximately 2.8% since the beginning of 2021. However, the gap between the official exchange rate and the parallel market rate has been around 10% for much of 2021, but jumped to over 20% in early July, reflecting a shortage of foreign exchange. The gap narrowed later in July, as some of these pressures appear to have been associated with repayment of the US dollar notes at end-June, but remains high. A lack of foreign-exchange earnings from tourism has added to pressures, although exports have generally performed well. Foreign-exchange reserves have been relatively stable in 2021, but have recently dipped to USD1.21 billion in May from USD1.32 billion at end-2020. However, Fitch views reserve adequacy as insufficient in the context of the country's managed-currency regime, large import bill and external debt-servicing requirements. The IMF's recent special drawing rights (SDR) allocation will provide a further boost of about USD145 million to reserves in late-August, which should help keep reserves at the current level by end-2021. The current account deficit narrowed to 0.6% of GDP per official statistics (IMF estimate is 5.7%), due primarily to a sharp decline in imports and relatively resilient export performance. Fitch forecasts the current account deficit to widen to above 4% of GDP by 2023 as imports recover. The deficit is largely financed by FDI inflows, which Fitch forecasts to be sustained at relatively high levels, although down from recent years as the Lao-China railway is completed. Fitch forecasts real GDP to grow by 2.5% in 2021, down from the government's official estimate of 3.3% in 2020 (GDP growth estimates from multilateral institutions are around 0% in 2020). The pandemic was well-contained in 2020, but a recent rise in cases, as elsewhere, has led to a tightening of social distancing measures, which is weighing on domestic activity. A lack of international tourism due to closed international borders remains a drag on urban employment and incomes. Vaccination is progressing, with about 12% of the population fully vaccinated, and high coverage in Vientiane. Sustained electricity exports and infrastructure development support the outlook. Fitch believes Laos's high underlying growth potential remains intact. Fitch forecasts growth to rebound to 5.0% in 2022 and 5.7% in 2022. Over the medium term, Fitch expects growth to remain around 6.0%, underpinned by the country's ample hydropower investment, increased regional transport connectivity following the completion of the Lao-China railway later this year, natural resource wealth and young population. The new joint venture EDL-T should boost investment in the electrical transmission network, which has increasingly become a bottleneck for increasing electricity exports. Fiscal consolidation efforts were disrupted by the pandemic, adding to financing pressures. The fiscal deficit rose to 5.2% of GDP in 2020 from 3.2% in 2019. Fitch forecasts the deficit to remain stable in 2021, as economic pressures from the pandemic persist, before a gradual narrowing brings the deficit to 3.8% of GDP by 2023. Revenue collection fell to its lowest level since 2004 in 2020 at 12.7% of GDP. Over the medium term, the government hopes to reduce the deficit to under 2% of GDP by boosting revenue collection, which is likely to be critical for fiscal sustainability. Fitch forecasts public debt to reach 66% of GDP in 2021, from about 58% in 2019. Publicly guaranteed debt accounts roughly for an additional 10% of GDP as of 2020. EDL appears to be coming under increasing financial pressure due a rapid increase in debt-financed investment and near-term cash flow issues. EDL's outstanding debt is about USD5 billion (25% of GDP), as advised by the authorities, much of which consists of on-lending from the government. EDL poses contingent liability risk for the government if the company is unable to meet its external debt-service obligations. ESG - Governance: Laos has an ESG Relevance Score (RS) of '5[+]' for Political Stability and Rights and an ESG RS of and '5' for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in Fitch's proprietary Sovereign Rating Model. Laos has a low WBGI ranking at the 24th percentile, reflecting weak institutional capacity, relatively weak rights for participation in the political process, weak institutional capacity and a high level of corruption, despite a high level of political stability. RATING SENSITIVITIES FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO NEGATIVE RATING ACTION/DOWNGRADE: -- Increased signs of a probable default event, for instance from severe external liquidity stress and reduced capacity of the government to access external financing. FACTOR THAT COULD, INDIVIDUALLY OR COLLECTIVELY, LEAD TO POSITIVE RATING ACTION/UPGRADE: -- External Finances: An easing of external liquidity pressures, evident in an increase in foreign-exchange reserves or broader access to external financing sources from bilateral or multilateral creditors, capital markets, or asset sales. SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO) In accordance with its rating criteria, Fitch's sovereign rating committee has not utilised the SRM and QO to explain the ratings in this instance. Ratings of 'CCC+' and below are instead guided by the rating definitions. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch's criteria that are not fully quantifiable and/or not fully reflected in the SRM. 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. KEY ASSUMPTIONS The global economy performs in line with Fitch's September 2020 global economic outlook, particularly China, which is a key source of external financing and trade. LIMITED INFORMATION Lack of an international investment-position dataset means that there is no authoritative data on non-bank, private-sector net assets. This does not affect the indicators that feed into the SRM, but may lead to overstatement of the level of net external debt. ESG CONSIDERATIONS Laos has an ESG Relevance Score of '5[+]' for Political Stability and Rights, as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Laos has a percentile rank above 50 for the respective Governance Indicator, this has a positive impact on the credit profile. Laos has an ESG Relevance Score of '5' for Rule of Law, Institutional and Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Laos has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. Laos has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As Laos has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Laos has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Laos, as for all sovereigns. As Laos appears to have received debt relief from China through the deferment of debt repayments in 2020, this has a negative impact on the credit profile. Fitch has changed the ESG Relevance Score for International Relations and Trade from a '4' to a '3', to reflect that relative to 'CCC' peers this factor is no longer a key rating driver for Laos. Except for the matters discussed above, the highest level of ESG credit relevance, if present, 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 to the way in which they are being managed by the entity. =============== M A L A Y S I A =============== ASIA MEDIA: Auditor Issues Disclaimer of Opinion ------------------------------------------------ The Sun Daily reports that Asia Media Group Bhd said on Aug. 5 its external auditor Messrs. CAS Malaysia PLT is unable to express an opinion on the group's financial statements for the financial period ended March 31, 2021. According to Asia Media's filing with Bursa Malaysia, CAS said it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion, Sun Daily relays. Explaining the basis for the disclaimer of opinion, CAS said it was unable to satisfy itself as to whether the opening balances as of Oct. 1 2019, did not contain misstatements that may materially affect the financial performance, cash flows and financial position of the group for the financial period ended March 31, 2021. Sun Daily relates that the auditor also said it was unable to obtain sufficient appropriate audit evidence pertaining to the accuracy of trade payables balances amounting to MYR469,549; other payables and accruals amounting to MYR300,967 and MYR15,704 respectively; non-controlling interests totalling MYR234,357; and other income of MYR516,000. According to Sun Daily, CAS noted that Asia Media's financial statements were prepared on the assumption that the group would continue as a going concern. However, the auditor said there are material uncertainties that may cast significant doubt on the ability of the group to continue as a going concern. It cited, among others, the net loss for the financial period ended March 31 2021, current liabilities exceeding current assets, deficit in shareholders' fund, uncertainty on the outcome of the group's legal suits and a winding-up order served on a subsidiary, relays Sun Daily. In reply, Asia Media said its directors are of the opinion that the preparation of the financial statements on a going concern basis remains appropriate due to measures that will be taken to mitigate the material uncertainty and to meet its obligations falling due within the next 12 months. The board revealed that Asia Media will be signing new business contracts with potential customers, which are in various stages of negotiation. "There will be more similar attempts to revive the business of the group in the coming months," it said in the Bursa filing, Sun Daily relays. Sun Daily adds that the group is also actively looking to dispose of certain physical assets which have been fully impaired in its FY 2018 to generate additional cash inflow. It is in negotiations to reach an amicable settlement with the opposing parties in its legal suits to better manage cash flow and obligations as well as to continue its business operations. Sun Daily adds that Asia Media is also seeking legal advice for lawsuits to claim back the MYR2.3 million advanced by former subsidiary DPO Plantations Sdn Bhd which has been fully impaired in its FY 2018 financial statements. Furthermore, it has obtained advances from certain shareholders to defray the ongoing operational expenses. Asia Media Group Berhad is a digital out-of-home Transit TV company. The Company is a media provider, offering infotainment and targeted advertising through the use of digital electronic displays installed in various outdoor premises. Asia media has LCD screens installed in buses travelling in the market centric hubs of Klang Valley and Johor Bahru. MALAYSIA: Bankruptcy and Winding-up May Rise after Moratorium ------------------------------------------------------------- The Star reports that cases of bankruptcy and winding-up of companies may be on the rise after loan repayment moratoriums come to an end, several economic experts said. Such cases have been declining despite the hard times, but this might change, especially if moratoriums are removed, The Star says. According to the report, Sunway University economics professor Dr Yeah Kim Leng said the loan repayment moratoriums have allowed debtors to postpone repayments, preventing those with financial troubles from becoming bankrupt. "However, the moratorium also masks the true extent of financial distress faced by borrowers. "A spike in bankruptcies could therefore occur at the end of the period especially if the borrowers suffer permanent losses in employment or business income," the report quotes Prof Yeah as saying. Recently, the Insolvency Department showed that bankruptcy numbers have been dropping from 12,051 in 2019 to 8,351 in 2020 and 2,954 as of April this year, based on a news report, The Star discloses. The report said one reason was likely due to the government raising the minimum debt threshold for filing a bankruptcy petition from MYR50,000 to MYR100,000 under the Temporary Measure for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020, The Star relays. "As long as the measure does not encourage undesirable behaviour in the country's credit culture, the relief for borrowers will help reduce the effects of the pandemic," Prof Yeah said. A third factor that could have contributed to the decline in bankruptcies in 2020 is the time lag between financial distress and bankruptcies, The Star relates. "Typically, creditors would seek to exhaust all means of recovering the debt from the borrower before they resort to bankruptcy filing," he explained. It was also reported that there were fewer compulsory winding-up petitions filed against companies too, from 1,966 in 2019 to 1,190 in 2020 and 192 as of April 2021. According to The Star, Prof Yeah said another indicator of financial distress is non-performing loans (NPLs) - or bank loans which are subject to late repayment or are unlikely to be fully repaid by the borrower. "The total NPLs in June 2021 amounted to MYR30.2bil, a 16.2% rise from a year ago. "The gradual upward trend is a sign of more financial distress especially when the extended loan moratorium period ends. "Nevertheless, the current low NPL level and adequate loan loss provisioning by the banks suggest that the banking system is well placed to accommodate a surge in loan delinquencies," he added. Unfortunately, the longer the lockdowns are in place, the slimmer the recovery hopes of the hard-hit businesses, Prof Yeah points out. "This is due to the depletion of working capital, reserves and possibly shedding of core staff. "Even when the pandemic subsides to allow for more businesses to reopen, the enterprises may not have sufficient working capital to resume operations unless they have access to new equity capital or borrowings. "We may therefore experience a rise in company winding-ups, foreclosures and bankruptcies," Prof Yeah says. He urges the government to roll out a national strategy to facilitate business rehabilitation especially for sectors that are severely impacted. "The strategy could involve increasing the resources of the debt workout unit coordinated by Bank Negara Malaysia to rescue the firms that have strong recovery prospects," he said. The Star adds that AmBank Group chief economist Dr Anthony Dass said bankruptcy and winding-up cases have been declining since 2018. "This is despite the pandemic that inflicted the overall economy, which shrank by 5.7% in 2020, the worst contraction since the 1997 Asian Financial Crisis," the report quotes Mr. Dass as saying. He added that the filing of bankruptcies has also been slowed down by the closure of courts and insolvency offices in 2020 due to the movement control order, relays The Star. ===================== N E W Z E A L A N D ===================== SMARTWAY HOMES: Owner Takes Flight, Leaving Clients in Lurch ------------------------------------------------------------ Stuff.co.nz reports that a builder who disappeared, leaving a couple's dream house half built and bills piling up, has left New Zealand. According to Stuff, Nelson company SmartWay Homes, which specialised in container homes manufactured in China, started installing Chris and Mellinda Fitzgerald's container home in Mahana, near Nelson, late last year. After numerous delays and problems with the build, SmartWay's owner, German-born audiologist Bernd Mager, disappeared in May and could not be contacted. Mr. Mager had prepared for his exit by quickly selling his house in Motueka, losing about NZD300,000 on the deal. A police spokesman last week confirmed Mr. Mager flew from Christchurch to Singapore on May 18 and had not returned. Stuff relates that Mr. Fitzgerald said he was past heartbroken and the news of Mr. Mager's exit from the country did not make much difference. He has lodged a fraud complaint with police, which is being assessed, adds Stuff. TICKET ROCKET: Bank Seeks Millions From Runaway Owner ----------------------------------------------------- Stuff.co.nz reports that the now Australia-based boss of a failed Kiwi ticket company used by Super Rugby franchises is being chased by his bank for millions of dollars. Matthew Robert Davey, a director of Fortress Information Systems Ltd, was served with a legal notice in Sydney on March 3, 2021, Stuff says. According to Stuff, Bank of New Zealand is trying to recover NZD3.85 million, plus interest and costs, after he guaranteed obligations of the company, which traded as Ticket Rocket. It defaulted on payments in May and June 2020. Companies linked to Ticket Rocket, formerly known as TicketDirect, were put into receivership in August 2020. Fortress Information Systems was placed in liquidation in October, owing the Hurricanes and Crusaders Super Rugby franchises NZD186,000 and NZD155,000 respectively. According to Stuff, Canadian-born Davey, who has repeatedly been unavailable for comment as his company left thousands of ticket holders out of pocket, had been operating the Dunedin headquartered company remotely. Mr. Davey opposed the application, which was to be heard on July 16 in the High Court at Christchurch, and sought another adjournment. BNZ opposed that application, which would have required a further adjournment in the summary judgment application. Stuff relates that Mr. Davey filed a notice of opposition over the summary judgment application, arguing he had not been able to meaningfully instruct his lawyers because he did not have access to relevant documents. However, his legal submissions were not filed, and then he sought the adjournment of the hearing on the basis he had not been able to consider the bank's evidence or submissions because of the Covid-19 lockdown in Sydney. Mr. Davey also argued he had been searching for documents but was having trouble locating evidence he needed. He further contended the company ran into cash flow issues due to the bank's "negligence". Associate Judge Owen Paulsen, in dismissing the appeal, did not accept the Covid-19 situation in Sydney was a reason for Mr. Davey not to present a full defence, nor did the bank's documents contain anything new to him, according to Stuff. While Mr. Davey had requested to attend the July hearing in person, it could have been done via an audio visual link, but no request was made. The judge noted Mr. Davey could have raised issues of concern about the bank at the hearing. "It appears Mr. Davey is in search of a defence without any realistic expectation of finding one." There was public interest in the case, including the expectation that cases proceed when they were set down, he said. "Mr. Davey has had sufficient time to prepare and present his defence. I do not accept he has been prevented from doing so by disruption caused by Covid-19 or any other factors." ================= S I N G A P O R E ================= BAO TODAY: Creditors' Proofs of Debt Due on Sept. 7 --------------------------------------------------- Creditors of BAO Today Pte Ltd and IE Global Pte Ltd (in voluntary liquidation) are required to file their proofs of debt by Sept. 7, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 30, 2021. The company's liquidators are: Don M Ho David Ho Chjuen Meng C/o DHA+ pac 63 Market Street #05-01A Bank of Singapore Centre Singapore 048942 FAIR PLAY: Creditors' Proofs of Debt Due on Sept. 6 --------------------------------------------------- Creditors of Fair Play Trustees Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Sept. 6, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 30, 2021. The company's liquidator is: Tee Wey Lih Acres Advisory Private Limited 531A Upper Cross Street #03-128 Hong Lim Complex Singapore 051531 SARAH PEARL: Creditors' Proofs of Debt Due on Sept. 6 ----------------------------------------------------- Creditors of Sarah Pearl Shipping Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Sept. 6, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 5, 2021. The company's liquidator is: Lau Chin Huat Yeo Boon Keong Technic Inter-Asia Pte Ltd c/o 50 Havelock Road #02-767 Singapore 160050 SEABURY GLOBAL: Commences Wind-Up Proceedings --------------------------------------------- Members of Seabury Global Markets Singapore Pte. Ltd., on July 29, 2021, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Mr. Yiong Kok Kong 600 North Bridge Road #23-01 Parkview Square Singapore 188778 TPB DEVELOPMENT: Creditors' Proofs of Debt Due on Sept. 6 --------------------------------------------------------- Creditors of TPB Development Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Sept. 6, 2021, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 30, 2021. The company's liquidator is: Mitani Masatoshi c/o 10 Anson Road #14-06 International Plaza Singapore 079903 ********* 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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