/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210903.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 3, 2021, Vol. 24, No. 171 Headlines A U S T R A L I A DRAGONS ABREAST: First Creditors' Meeting Set for Sept. 10 FOCUS FUNDING: Second Creditors' Meeting Set for Sept. 9 LD OPERATIONS: Second Creditors' Meeting Set for Sept. 9 POZZTECH ENGINEERING: First Creditors' Meeting Set for Sept. 10 C H I N A BANK OF BEIJING: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable FUWEI FILMS: Three Proposals Approved at Extraordinary Meeting GREENLAND HOLDING: Fitch Withdraws BB- Issuer Default Ratings HENGYANG HONGXIANG: Fitch Lowers LT IDRs to 'BB+', Outlook Stable HUA XIA BANK: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable MINSHENG BANKING: Fitch Assigns 'B' Foreign Currency ShortTerm IDR PING AN BANK: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable TD HOLDINGS: Expects to Raise $37.85MM From Private Placement I N D I A A.M. VINYL: CARE Keeps D Debt Ratings in Not Cooperating AIR INDIA: Government to Offer Indemnity to Bidder Over Cairn Claim AJAY SYNTHETICS: CARE Keeps D Debt Rating in Not Cooperating AMRIT HOMES: CARE Keeps D Debt Rating in Not Cooperating BASUNDHARA GREEN: CARE Keeps C Debt Rating in Not Cooperating BHAKTI INFRACON: CARE Keeps D Debt Rating in Not Cooperating BTM CORP: CARE Keeps D Debt Rating in Not Cooperating Category BTM INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating DABRA AGRO: CARE Keeps D Debt Rating in Not Cooperating Category EAGLE STEELS: CARE Lowers Rating on INR14.25cr LT Loan to D ESKAY SILK: CARE Keeps D Debt Ratings in Not Cooperating GUPTA TEX: CARE Keeps D Debt Rating in Not Cooperating Category KHANDWA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating MALWA STRIPS: CARE Keeps D Debt Ratings in Not Cooperating MOTI RAM: CARE Keeps D Debt Rating in Not Cooperating Category OCTOPUS PAPERS: CARE Keeps D Debt Rating in Not Cooperating OM AASTHA: CARE Keeps D Debt Rating in Not Cooperating Category OM BESCO: CARE Keeps D Debt Rating in Not Cooperating Category P. M. INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating PALLA SILKS: CARE Keeps C Debt Rating in Not Cooperating PANAMA AGRICULTURE: CARE Keeps D Debt Rating in Not Cooperating PINAKIN PLASTOFORMING: CARE Keeps D Ratings in Not Cooperating RVR FARMS: CARE Keeps C Debt Rating in Not Cooperating SHIRPUR GOLD: CARE Keeps D Debt Ratings in Not Cooperating SICO INDIA: CARE Keeps D Debt Ratings in Not Cooperating SUNRISE AUTOMOBILES: CARE Keeps B Debt Rating in Not Cooperating VIDEOCON GROUP: NCLT Order Set to Delay Debt Resolution I N D O N E S I A GARUDA INDONESIA: Net Loss Widens to USD902MM in H1 Ended June 30 N E W Z E A L A N D CHALLENGE MARINE: Goes Into Liquidation; Workers Left High and Dry FP IGNITION TRUST 2019-1: Fitch Raises Cl. F Notes Rating to 'BB+' S I N G A P O R E BAT UNIVERSAL: Court Enters Wind-Up Order BRIO CONSTRUCTION: Creditors' Meetings Set for Sept. 14 DEXTRA PARTNERS: Court Enters Wind-Up Order HEALTHPRO PTE: Commences Wind-Up Proceedings PAYVISION SINGAPORE: Creditors' Proofs of Debt Due on Oct. 1 - - - - - ================= A U S T R A L I A ================= DRAGONS ABREAST: First Creditors' Meeting Set for Sept. 10 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Dragons Abreast Australia Ltd will be held on Sept. 10, 2021, at 12:00 p.m. via virtual meeting. Aaron Torline of Slaven Torline was appointed as administrator of Dragons Abreast on Aug. 31, 2021. FOCUS FUNDING: Second Creditors' Meeting Set for Sept. 9 -------------------------------------------------------- A second meeting of creditors in the proceedings of Focus Funding Pty Ltd has been set for Sept. 9, 2021, at 10:30 a.m. via virtual meeting technology. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 8, 2021, at 4:00 p.m. Giovanni Maurizio Carrello of BRI Ferrier Western Australia was appointed as administrator of Focus Funding on June 2, 2021. LD OPERATIONS: Second Creditors' Meeting Set for Sept. 9 -------------------------------------------------------- A second meeting of creditors in the proceedings of LD Operations Pty Ltd has been set for Sept. 9, 2021, at 2:30 p.m. via virtual meeting. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Sept. 8, 2021, at 5:00 p.m. Michael Gregory Jones of Jones Partners was appointed as administrator of LD Operations on Aug. 5, 2021. POZZTECH ENGINEERING: First Creditors' Meeting Set for Sept. 10 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of Pozztech Engineering Pty Ltd, trading as "Pozztech Engineering", will be held on Sept. 10, 2021, at 11:00 a.m. via electronic facilities. Jerome Hall Mohen and Gregory Bruce Dudley of RSM Australia Partners were appointed as administrators of Pozztech Engineering on Aug. 31, 2021. ========= C H I N A ========= BANK OF BEIJING: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer Default Rating (IDR) of Bank of Beijing Co., Ltd. (BOB) at 'BB+' and assigned a Short-Term IDR of 'B'. The Outlook on the Long-Term IDR is Stable. At the same time, Fitch has affirmed BOB's Viability Rating (VR) at 'b+'. KEY RATING DRIVERS IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR The bank's Long-Term IDR is driven by state support and is at the bank's Support Rating Floor (SRF) of 'BB+'. This reflects Fitch's expectation of a moderate probability of extraordinary support from the Chinese sovereign (A+/Stable) in the event of stress. This considers the bank's limited size and modest domestic significance. The bank does not have direct central government ownership or history of direct government support. Fitch believes the Beijing government, which owns a 17.2% stake in BOB, has limited ability to provide adequate and timely support under stress, and extraordinary support, if needed, would come primarily from the state. Fitch expects BOB to be designated a domestic systemically important bank (D-SIB), probably later in 2021, but Fitch thinks the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. This implies a formal D-SIB designation alone may not materially affect the support propensity for BOB relative to peers with higher systemic importance or closer government linkages. At the same time, Fitch does not believe the implementation of a resolution framework in China will significantly diminish support prospects for D-SIBs. If and when details on a framework are announced, Fitch will update its views on the sovereign's propensity to provide extraordinary support to BOB. BOB's 'B' Short-Term IDR is mapped to its Long-Term IDR, in accordance with Fitch's Exposure Draft: Bank Rating Criteria published 17 August 2021. VIABILITY RATING BOB's VR benefits from its higher loan concentration (around half of its loans) in Beijing, where the local economy is among China's most resilient. BOB relies on corporate banking, especially loans to Beijing-based state-owned enterprises, and has the lowest exposure to sectors that are most affected by the pandemic, such as unsecured consumer lending. It reported a stable non-performing loan (NPL) ratio of 1.5% at end-1Q21 due to its active NPL resolution in recent years. Its impaired-loan ratio was 1.6% at end-2020, with an allowance coverage of 206% (no quarterly figure available); this is similar to its NPL ratio on a local regulatory standard. BOB reported a common equity Tier 1 (CET1) ratio of 9.4% at end-1Q21, on a par with the mid-tier bank average, but it has one of the highest exposures to entrusted investments, which were around 16% of assets at end-2020 (mid-tier average of 10%). Fitch has revised the operating environment (OE) score for BOB to 'bbb-'/positive from 'bb+'/stable, in line with the change for China's state banks and large joint-stock commercial banks. The revision captures the progress that China has made to curb systemic and contagion risks in the financial system, aided by its relative economic resilience during the Covid-19 pandemic. Under Fitch's criteria, the benchmarks for the financial metrics of banks in a 'bbb' category OE are different from those in a 'bb' category OE, which would typically lead to upward potential for a bank's implied financial profile scores, and ultimately its VR. However, Fitch has affirmed BOB's VR as it maintains a greater risk appetite than most Fitch-rated commercial banks such that it has the highest exposure to entrusted investments among Fitch-rated Chinese banks, offsetting the benefits of the improved OE. Furthermore, reported financial metrics in China may not fully reflect the extent of off-balance-sheet exposures or non-loan assets. BOB has not reduced its exposure to these activities meaningfully in recent years. Sustained regulatory tightening could also expose greater vulnerabilities at BOB in the near term given its higher risk exposure as well as limited capital buffers. These risks may continue to constrain Fitch's assessment of BOB's standalone credit profile, even if China's bank OE were to improve further. RATING SENSITIVITIES IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of China's sovereign ratings could lead to positive rating action on the bank's SRF and its support-driven IDRs if that were to indicate greater ability to support BOB, with no less propensity to support. Formal designation of BOB as a D SIB with a relative peer ranking that implied a higher systemic importance than Fitch currently factors into its support assessment could lead to positive changes in the Support Rating (SR), SRF and IDRs of the bank. -- BOB's Short-Term IDR would be upgraded if its Long-Term IDR is upgraded. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The bank's Long-Term IDR, SR and SRF will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support; lower propensity may also be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. -- A reduction in Bejing government ownership or influence in BOB may also lower the propensity of the state to support the bank if the reduction were to be significant, or if the bank's systemic importance were to be reduced. -- BOB's Short-Term IDR will be downgraded if its Long-Term IDR is downgraded to or below 'CCC+', which Fitch considers highly unlikely in the short-to-medium term. VIABILITY RATING Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained reduction in the bank's risk appetite such as material reduction of its shadow activities or improvement in transparency towards these activities, further reduction of its growth and sustained improvement of its capital buffers would be positive to its VR assessment, for example, if its CET1 ratio were to rise and stay above 10%. Factors that could, individually or collectively, lead to negative rating action/downgrade: BOB's VR could be downgraded if there is a sustained increase in the bank's risk appetite, evident from continuous growth in entrusted investments or wealth-management products that significantly erodes asset quality and capital buffers. A sustained deterioration in the bank's financial metrics could lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans increasing to and sustained at around 8% (2017-2020 reported four-year average of 1.4%), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan-loss provisioning, and whether and to what extent Fitch believes reported metrics understate any deterioration in asset quality and; -- CET1 ratio falling below 7.5% without a credible path to return to existing levels. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS BOB's IDRs are directly linked to China's sovereign ratings. ESG CONSIDERATIONS BOB has an ESG Relevance Score of '4' for Financial Transparency. There are still structural issues around financial transparency and disclosure, which are not captured in headline performance metrics in China and affect Fitch's OE assessment. BOB, like other mid-tier banks, remains more exposed to this risk than the state banks due to its larger exposure to wealth-management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. FUWEI FILMS: Three Proposals Approved at Extraordinary Meeting -------------------------------------------------------------- Fuwei Films (Holdings) Co., Ltd. announced that an Extraordinary General Meeting of Shareholders was held Aug. 16, 2021, at 10:00 a.m. (Beijing Time) at Fuwei Films (Shandong) Co., Ltd., No. 387 Dongming Road, Weifang, Shandong, China. Holders of approximately 73.7% of the Company's outstanding shares, as of the record date, July 27, 2021, were present in person or represented by proxy at the Meeting and approved (1) the issuance of 111,111,111 ordinary shares of par value of US$0.519008 each of the Company to the shareholders of Enesoon New Energy Limited, a company incorporated under the laws of the British Virgin Islands in exchange for all issued shares of Enesoon; (2) the authorized share capital of the Company be increased from US$2,595,040 divided into 5,000,000 ordinary shares of US$0.519008 each to US$70,066,080 divided into 135,000,000 ordinary shares of US$0.519008 each; and (3) the directors of the Company are authorized to do all acts and things considered by them to be necessary or desirable in connection with the implementation the forgoing resolutions. Completion of the transactions stated in the securities purchase agreement dated 31 March 2021 (as amended) made among by the Company, Enesoon, and certain other parties thereto is subject to the satisfaction or waiver of the closing conditions set forth in Securities Purchase Agreement. The Company will work with the other parties to the Securities Purchase Agreement towards satisfying the closing conditions and complete the transactions in a timely manner. About Fuwei Films Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. Fuwei Shandong develops, manufactures and distributes plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei Films' BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries. * * * This concludes the Troubled Company Reporter's coverage of Fuwei Films until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. GREENLAND HOLDING: Fitch Withdraws BB- Issuer Default Ratings ------------------------------------------------------------- Fitch Ratings has affirmed and withdrawn China-based homebuilder Greenland Holding Group Company Limited's Long-Term Foreign- and Local-Currency Issuer Default Ratings of 'BB-'. The Outlook is Stable. Fitch has also affirmed and withdrawn the senior unsecured rating of 'BB-'. Fitch has chosen to withdraw the ratings on Greenland for commercial reasons. KEY RATING DRIVERS Stable Consolidated Leverage: Fitch assessed Greenland's leverage on a consolidated basis, including its construction business. Fitch expects leverage (net debt/adjusted inventory) to stay at around 60% over the medium term. Its leverage has improved in recent years by controlling land acquisition to below 30% of sales collection, while its reported cash collection rate has risen to 89% in 1H21 and 86% in 2020, from below 80% in the past four years, helped by a better product mix, with residential products contributing 76% of sales in 2020 from 65% in 2018-2019. Fitch thinks the material increase in trade payables in 2020 also contributed to the lower-than-expected leverage. Large Business Scale: Greenland's property-development business is well-diversified in over 80 cities in China and overseas, with 60% of contracted sales generated from Tier 1-2 and strong Tier 3 Chinese cities. Fitch expects Greenland's contracted sales growth and revenue booking to recover further in 2021 even as China's economy slows and the authorities impose curbs on property prices and demand. Fitch thinks the recovery will be driven by higher sales contribution from Greenland's return to residential properties and Tier 1-2 cities. Limited Construction Business Contribution: Greenland's construction business contributed about 51% of revenue but only 13% of operating profit in 2020. Its construction business has expanded rapidly in recent years through the acquisition of stakes in provincial state-owned enterprises after participating in China's mixed-ownership reform. However, Fitch believes the lower margin of the construction business means Greenland's profitability will continue to be driven by its property-development segment in the medium term. Rated on Standalone Profile: Greenland's support score remains at 10 under Fitch's Government-Related Entities Rating Criteria. The Shanghai State-owned Assets Supervision and Administration Commission is considering the sale of a maximum 17.5% stake in Greenland, although Fitch thinks the local government will retain moderate control over the company after the disposal. The score, the lowest category under Fitch's guidelines, implies a standalone credit profile with no further notching for parental support. The score reflects Fitch's assessment of Greenland's status, ownership and control, parental support record and the financial implications of a default as moderate, and the socio-political implications of a default as weak. RATING SENSITIVITIES No longer relevant, as the ratings have been withdrawn. 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. Fitch will no longer be providing the associated ESG Relevance Scores for the issuer following the withdrawal of Greenland's ratings. 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. HENGYANG HONGXIANG: Fitch Lowers LT IDRs to 'BB+', Outlook Stable ----------------------------------------------------------------- Fitch Ratings has downgraded HengYang HongXiang State-owned Investment (Holding) Group Ltd.'s (HYHX) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BB+' from 'BBB-'. The Outlook is Stable. The ratings have been removed from Rating Watch Negative (RWN), on which they were placed on 13 July 2021 amid a portfolio review of Chinese government-related entities (GRE). The RWN reflected potential negative rating action should Fitch lower its assessment of the socio-political implications of HYHX's default. Following the reassessment, Fitch revised the attribute to 'Moderate', from 'Strong', resulting in a lower overall support score, and hence wider notching from the sponsor. KEY RATING DRIVERS Socio-Political Implications of Default 'Moderate': Fitch has revised the attribute to 'Moderate', from 'Strong', after comparing HYHX with strategic holding-company peers. Fitch does not believe HYHX's default would disrupt Hengyang city's essential public services, while its size relative to other GREs would limit the economic repercussions. There may also be other policy-driven GREs within the city that could substitute the company's role, limiting a higher assessment. Fitch's 'Moderate' attribute assessment is based on its view that HYHX's policy role is closely aligned with the government's political objectives. HYHX is the city's sole strategic holding company, responsible for restructuring underperforming state-assets and investing in strategic industries. It had successfully transformed 69 GREs as at end-2020. The company is also responsible for pollution remediation and infrastructure construction, although the latter is more commercial in nature. Status, Ownership and Control 'Very Strong': The assessment is based on the municipality's shareholding in HYHX via the Hengyang State-owned Assets Supervision and Administration Commission (SASAC) and direct supervision structure, which Fitch believes reinforces the government's incentive to provide extraordinary support. Hengyang municipality has ultimate control over the appointment of HYHX's board and senior management and approves all major decisions. Meanwhile, Hengyang SASAC supervises HYHX's operational and financial management. Support Record 'Strong': Fitch believes continued government support will assist HYHX's expansion and profitability. However, the 'Strong' support assessment is constrained by the absence of an explicit government guarantee for the company's debt. HYHX has historically received capital and asset injections of land and important state-owned entities (SOE), in line with its role as a state-owned asset manager. It received CNY3.9 billion in capital injections in 2020, representing 12% of total assets, and CNY232 million in shares and land. The government also provides large annual subsidies, averaging at approximately 46% of HYHX's parent-level net profit before tax. Financial Implications of Default 'Strong': HYHX is Hengyang SASAC's second-largest GRE, with consolidated assets of CNY35 billion and debt of CNY12 billion at end-2020. However, Fitch believes financial contagion is lessened by HYHX's size relative to the city's largest GRE and its borrowing relative to the city. Hence, Fitch does not consider it to be a proxy financing vehicle. Nevertheless, the government's failure to provide timely support to HYHX could damage its credibility and affect the availability and cost of financing for other key GREs. Standalone Profile 'b': Fitch derives its 'b' Standalone Credit Profile (SCP) assessment from HYHX's parent-level financial profile in light of its holding-company role and potential ringfencing with its subsidiaries. The SCP reflects a combination of 'Weaker' revenue defensibility, 'Midrange' operating risk and a 'Weaker' financial profile. The notch-specific SCP is driven by the company's weak financial profile, with a net debt to EBITDA that Fitch expects to remain above 20x through 2025. The company's strong liquidity should mitigate refinancing risk, counteracting a lower SCP assessment. DERIVATION SUMMARY Fitch assesses HYHX under its Government-Related Entities Rating Criteria. The rating approach factors in Hengyang government's direct ownership and 'Very Strong' control, as well as the company's important policy role as a holding company of important state assets. Hence, Fitch believes the government has an incentive to support HYHX to avoid the socio-political and financial implications of a default. HYHX's SCP is derived from Fitch's assessment of the company's revenue defensibility, operating risk, and financial profile under the agency's Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A change in Fitch's credit view on Hengyang government's ability to provide subsidies, grants or other legitimate sources allowed under China's policies and regulations. -- An expansion of the company's policy role could also result in a strengthening in the sponsor's incentive to provide support. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Deterioration in Fitch's credit view on Hengyang government's ability to provide subsidies, grants or other legitimate sources allowed under China's policies and regulations. -- A weakening of the government linkages, including a dilution in shareholding or support, or a weaker incentive to provide support, including a reduced functional role. 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. ISSUER PROFILE HYHX was established in 2005 and is wholly owned by Hengyang government. It is positioned as a strategic holding company, with a mission to optimise the value of state-owned assets and promote economic development by upgrading the city's industrial base and investing in strategic industries. 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. HUA XIA BANK: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Hua Xia Bank Co., Limited's (HXB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' and assigned a Short-Term IDR of 'B'. The Outlook on the Long-Term IDR is Stable. At the same time, Fitch has affirmed HXB's Viability Rating (VR) at 'b'. KEY RATING DRIVERS IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR The bank's Long-Term IDR is driven by state support and is at the bank's Support Rating Floor of 'BB+'. This reflects Fitch's expectation of a moderate probability of extraordinary support from the Chinese sovereign (A+/Stable) in the event of stress. This takes into consideration the bank's limited market share and limited regional significance. There is no direct central-government ownership or history of government support at the bank. Fitch expects HXB to be designated as a domestic systemically important bank (D-SIB), likely later in 2021, but Fitch's view is that formal D-SIB designation alone may not materially affect support propensity for HXB relative to peers with higher systemic importance or closer government linkages. This is driven by the consideration that the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. At the same time, Fitch does not believe the implementation of a resolution framework in China will significantly diminish support prospects for D-SIBs. If and when such details are announced, Fitch will update Fitch's views on the sovereign's propensity to provide extraordinary support to HXB. HXB's major shareholders are state-owned power transmission company State Grid Yinda Group (which owns 20% in the bank), Beijing Shougang Co. (20% ownership) and Beijing Infrastructure Investment (9% ownership). The latter two are wholly owned by the Beijing municipal government through the Beijing State-owned Assets Supervision and Administration Commission (Beijing SASAC). PICC P&C, a state-owned general insurer, also owns 17% in the bank. That said, Fitch does not factor in institutional support from its major shareholders, because their ability and propensity to provide timely and adequate support to HXB during times of stress are unclear. HXB's Short-Term IDR has been assigned at 'B' and is mapped to its Long-Term IDR, in line with Fitch's Exposure Draft: Bank Rating Criteria, published on 17 August 2021. VIABILITY RATING HXB's VR considers its limited risk buffers relative to its high credit exposure as well as fast loan growth. HXB's reported non-performing loan (NPL) ratio was 1.8% at end-1Q21, which was among the highest for Fitch-rated Chinese commercial banks. The bank's exposure to entrusted investments (around 8% of assets) and off-balance-sheet wealth-management products (WMPs, around 17% of assets and 32% of deposits) is large considering its limited capital buffers; its common equity tier 1 (CET1) ratio fell to 8.7% by end-1Q21. Its rapid loan growth in recent years also puts pressure on its capitalisation and liquidity profile; its loan/deposit ratio of 118% at end-1Q21 was the highest among Fitch-rated Chinese banks. Fitch has revised the OE score for HXB to 'bbb-'/positive from 'bb+'/stable, as Fitch did for the state banks and large joint stock commercial banks. The revision captures the progress that China has made to curb systemic and contagion risks in the financial system, aided by its relative economic resilience during the Covid-19 pandemic. Under Fitch's criteria, the benchmarks for the financial metrics of banks in a 'bbb' category OE are different from those in a 'bb' category OE, which would typically lead to upward pressure on a bank's implied financial profile scores, and ultimately its VR. However, Fitch has affirmed HXB's VR as it maintains a higher risk appetite compared with most Fitch-rated commercial banks, reflected in its higher overall credit exposure and larger lending exposure to overcapacity industries, offsetting the benefits of the improved OE. Furthermore, reported financial metrics in China may not fully reflect the extent of off-balance-sheet exposures or non-loan assets, and HXB has not reduced its exposure to these activities meaningfully in recent years. Sustained regulatory tightening could also expose greater vulnerabilities at HXB in the near term, given its higher risk exposure as well as limited capital and provisioning buffers. These risks may continue to constrain Fitch's assessment of HXB's standalone credit profile, even if China's bank OE were to improve further. RATING SENSITIVITIES IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of China's sovereign ratings could lead to positive rating action on the bank's Support Rating Floor, and its support-driven IDRs if that was to indicate greater ability to support HXB (with no less propensity to support). Formal designation of HXB as a D-SIB, with a relative bucket ranking that implied a higher systemic importance than Fitch currently factors into its support assessment, could potentially lead to upwards pressure on the bank's Support Rating, Support Rating Floor and IDRs. -- HXB's Short-Term IDR will be upgraded if its Long-Term IDR is upgraded. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The bank's Long-Term IDR, Support Rating and Support Rating Floor will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support; lower propensity may also be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. -- HXB's Short-Term IDR will not be downgraded unless its Long Term IDR is downgraded to or below 'CCC+', which Fitch views as highly unlikely in the short to medium term. VIABILITY RATING Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained reduction in the bank's risk appetite, such as material reduction of its shadow activities or improvement of transparency towards those activities, further reduction of its growth and sustained improvement of its capital buffers, would be positive to its VR assessment, for example, if its CET1 ratio were to rise and stay above 9.5%. Factors that could, individually or collectively, lead to negative rating action/downgrade: HXB's VR could be downgraded if there is evident acceleration in loan growth, especially in manufacturing and wholesale and retail trade loans, further drags on asset quality and capital buffers. A sustained deterioration in the bank's financial metrics could lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans ratio increasing to and sustained at around 8% (2017-2020 four-year average of 1.8% on a reported basis), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan loss provisioning, and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- the CET1 ratio falling below 7.5% without a credible path to return to existing levels. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS HXB's IDRs are directly linked to China's sovereign ratings. ESG CONSIDERATIONS HXB has an ESG Relevance Score of '4' for Financial Transparency. There are still structural issues around financial transparency and disclosure, which are not captured in headline performance metrics in China and affect Fitch's OE assessment. HXB, like other mid-tier banks, remained more exposed to this risk relative to the state banks, due to their larger exposure to wealth-management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. MINSHENG BANKING: Fitch Assigns 'B' Foreign Currency ShortTerm IDR ------------------------------------------------------------------ Fitch Ratings has affirmed China Minsheng Banking Corp., Ltd.'s (CMBC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' and assigned a Short-Term IDR of 'B'. The Outlook on the Long-Term IDR is Stable. At the same time, Fitch has affirmed CMBC's Viability Rating (VR) at 'b'. KEY RATING DRIVERS IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR The bank's Long-Term IDR is driven by state support and is at the bank's Support Rating Floor of 'BB+'. This reflects Fitch's expectation of a moderate probability of extraordinary support from the Chinese sovereign (A+/Stable) in the event of stress. This takes into consideration the bank's limited market share, especially in terms of retail deposits, lack of strong shareholder and parental support, as well as limited regional significance and local government linkage. Fitch expects CMBC to be designated as a domestic systemically important bank (D-SIB), likely later in 2021, but Fitch's view is that formal D-SIB designation alone may not materially affect support propensity for CMBC relative to peers with higher systemic importance or closer government linkages. This is driven by the consideration that the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. At the same time, Fitch does not believe the implementation of a resolution framework in China will significantly diminish support prospects for D-SIBs. If and when such details are announced, Fitch will update Fitch's views on the sovereign's propensity to provide extraordinary support to CMBC. CMBC was one of China's few joint stock commercial banks controlled by private shareholders until its largest shareholder, Anbang Insurance Group, was taken over by the government in February 2018 and restructured into state-owned Dajia Insurance in 2019; Dajia Insurance held a 17.8% stake in CMBC at end-2020. However, Fitch does not factor in institutional support from Dajia Insurance, because its ability and propensity to provide support to CMBC during times of stress are unclear. The high risk of financial-system contagion may limit the shareholder's ability to provide extraordinary support to the bank in the event of stress, while the size of the bank relative to that of Dajia Insurance also raises questions over its ability to provide timely and adequate support to CMBC. CMBC's total assets were equivalent to around 5.8x Dajia Insurance's total assets at end-2020. CMBC's diverse shareholding also means extraordinary support from other institutional shareholders is likely to be limited under a stress scenario. CMBC's Short-Term IDR has been assigned at 'B' and is mapped to its Long-Term IDR, in line with Fitch's Exposure Draft: Bank Rating Criteria, published on 17 August 2021. VIABILITY RATING CMBC's VR reflects its limited risk buffers relative to its higher exposure to micro and small enterprise (MSE) loans and credit-card lending, which contributed 14% and 11%, respectively, of its total loans at end-1H21. The bank's exposure to entrusted investments (around 9% of assets at end-1H21) and off-balance-sheet wealth-management-products (WMPs, around 22% of deposits and 12% of assets) is large considering its limited capital buffers; its common equity Tier 1 (CET1) ratio was only 8.5% at end-1H21. CMBC issued CNY30 billion in Additional Tier 1 (AT1) perpetual bonds in April 2021 to strengthen its overall capital position, but these do not qualify as CET1. CMBC's reported NPL ratio increased to 1.8% by end-1H21 from 1.6% at-end 2019 due to the Covid-19 pandemic; its impaired loan ratio of 1.9% at end-1H21 was slightly higher than its reported NPL ratio (on local regulatory standards) of 1.8%. CMBC's loan-loss allowance ratio of 133% at end-1H21 was among the lowest for Fitch-rated Chinese commercial banks, providing limited room to absorb potential deterioration in asset quality. CMBC reported a net profit decline of 7% in 1H21, and Fitch expects its profitability to remain pressured by a narrowing net interest margin and higher impairment charges, as reflected in Fitch's negative outlook on its earnings and profitability. Fitch has revised the operating environment (OE) score for CMBC to 'bbb-'/positive from 'bb+'/stable, as Fitch did for the state banks and large joint stock commercial banks. The revision captures the progress that China has made to curb systemic and contagion risks in the financial system, aided by its relative economic resilience during the Covid-19 pandemic. Under Fitch's criteria, the benchmarks for the financial metrics of banks in a 'bbb' category OE are different from those in a 'bb' category OE, which would typically lead to upward pressure on a bank's implied financial profile scores, and ultimately its VR. However, Fitch has affirmed CMBC's VR as it maintains a higher risk appetite compared with most Fitch-rated commercial banks, especially in riskier types of loans such as MSE lending and credit-card receivables, offsetting the benefits of the improved OE. Furthermore, reported financial metrics in China may not fully reflect the extent of off-balance-sheet exposures or non-loan assets, and CMBC has not reduced its exposure to these activities meaningfully in recent years. Sustained regulatory tightening could also expose greater vulnerabilities at CMBC in the near term, given its higher risk exposure as well as limited capital and provisioning buffers. These risks may continue to constrain Fitch's assessment of CMBC's standalone credit profile, even if China's bank OE were to improve further. RATING SENSITIVITIES IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of China's sovereign ratings could lead to positive rating action on the bank's Support Rating Floor and its support-driven IDRs, if that was to indicate greater ability to support CMBC (with no less propensity to support). Formal designation of CMBC as a D-SIB, with a relative bucket ranking that implied a higher systemic importance than Fitch currently factors into its support assessment, could potentially lead to upward pressure on the bank's Support Rating, Support Rating Floor and IDRs. -- CMBC's Short-Term IDR will be upgraded if its Long-Term IDR is upgraded. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The bank's Long-Term IDR, Support Rating and Support Rating Floor will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support; lower propensity may also be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. -- CMBC's Short-Term IDR will not be downgraded unless its Long- Term IDR is downgraded to or below 'CCC+', which Fitch views as highly unlikely in the short to medium term. VIABILITY RATING Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained reduction in the bank's risk appetite, such as material reduction of its shadow activities or improvement of transparency towards those activities, further reduction of its growth and sustained improvement of its capital buffers, would be positive to its VR assessment, for example, if its CET1 ratio were to rise and stay above 9.5%. Factors that could, individually or collectively, lead to negative rating action/downgrade: CMBC's VR could be downgraded if the bank increases its risk appetite, especially in MSE loans and credit-card receivables, or aggressively increases its exposure to entrusted investments or WMPs, which erodes its capital buffer. A sustained deterioration in the bank's financial metrics could lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans ratio increasing to and sustained at around 8% (2017-2020 four-year average of 1.7% on a reported basis), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan loss provisioning, and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The CET1 ratio falling below 7.5% without a credible path to return to existing levels. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS CMBC's IDRs are directly linked to China's sovereign ratings. ESG CONSIDERATIONS CMBC has an ESG Relevance Score of '4' for Financial Transparency. There are still structural issues around financial transparency and disclosure, which are not captured in headline performance metrics in China and affect Fitch's OE assessment. CMBC, like other mid-tier banks, remained more exposed to this risk relative to the state banks, due to their larger exposure to WMPs and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. PING AN BANK: Fitch Assigns 'B' ShortTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Ping An Bank Co., Ltd.'s (PAB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' and assigned a Short-Term IDR of 'B'. The Outlook on the Long-Term IDR is Stable. At the same time, Fitch has affirmed PAB's Viability Rating (VR) at 'b'. KEY RATING DRIVERS IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR The bank's Long-Term IDR is driven by state support and is at the bank's Support Rating Floor of 'BB+'. This reflects Fitch's expectation of a moderate probability of extraordinary support from the Chinese sovereign (A+/Stable) in the event of stress. This takes into consideration the bank's size and modest domestic significance. The bank does not have direct central-government ownership or a history of direct government support. Ping An Insurance Group (PAIG) and its subsidiaries own 58% of PAB. Fitch does not factor in institutional support from the parent, as Fitch believes PAB's size (around half of PAIG's assets) may make it difficult for the parent to provide timely and adequate extraordinary support to PAB under stress, especially as the insurance subsidiaries are likely to come under stress at the same time because of high financial-market correlation. Fitch expects PAB to be designated as a domestic systemically important bank (D-SIB), likely later in 2021, although Fitch views the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. This implies that a formal D-SIB designation alone may not materially affect support propensity for PAB relative to peers with higher systemic importance or closer government linkages. At the same time, Fitch does not believe the implementation of a resolution framework in China will significantly diminish support prospects for D-SIBs. If and when such details are announced, Fitch will update Fitch's views on the sovereign's propensity to provide extraordinary support to PAB. PAB's Short-Term IDR has been assigned at 'B' and is mapped to its Long-Term IDR, in line with Fitch's Exposure Draft: Bank Rating Criteria, published on 17 August 2021. VIABILITY RATING PAB's VR considers its higher exposure and rapid growth in credit-card receivables, consumer loans and auto lending, which made up around 35% of its loans at end-1H21. This may render its asset quality and earnings more susceptible to deterioration because of risks of higher unemployment due to the Covid-19 pandemic. Its impaired loan ratio was stable at 1.2% at end-1H21, and in line with its reported non-performing loan (NPL) ratio (on local regulatory standard), as the bank has accelerated its legacy corporate loan NPL disposal in recent years. It reported loan-loss allowance ratio of 234% at end-1H21. Its credit card NPL ratio rose slightly to 2.1% at end-1H21 from 1.7% at end-2019. PAB's common equity Tier 1 (CET1) ratio declined to 8.5% by end-1H21, from 9.1% at end-2019, and below the mid-tier bank average. Fitch expects the bank's growth appetite will continue to put pressure on its capitalisation. The bank issued CNY30 billion of Additional Tier 1 (AT1) perpetual bonds in February 2020, but those do not count as CET1. Fitch has revised the operating environment (OE) score for PAB to 'bbb-'/positive, from 'bb+'/stable, as Fitch did for the state banks and large joint stock commercial banks. The revision captures the progress that China has made to curb systemic and contagion risks in the financial system, aided by its relative economic resilience during the pandemic. Under Fitch's criteria, the benchmarks for the financial metrics of banks in a 'bbb' category OE are different from those in a 'bb' category OE, which would typically lead to upward pressure on a bank's implied financial profile scores, and ultimately its VR. However, Fitch has affirmed PAB's VR because it maintains a higher risk appetite compared with most Fitch-rated commercial banks, especially in riskier types of loans such as credit-card receivables and consumer loans, offsetting the benefits of the improved operating environment. Furthermore, reported financial metrics in China may not fully reflect the extent of off-balance-sheet exposures or non-loan assets, and PAB has not reduced its exposure to these activities meaningfully in recent years. Sustained regulatory tightening could also expose greater vulnerabilities at PAB in the near term, given its higher risk exposure and limited capital buffers. These risks may continue to constrain Fitch's assessment of PAB's standalone credit profile, even if China's bank OE were to improve further. RATING SENSITIVITIES IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR Factors that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of China's sovereign ratings could lead to positive rating action on the bank's Support Rating Floor and its support-driven IDRs if that was to indicate greater ability to support PAB (with no less propensity to support). Formal designation of PAB as a D-SIB, with a relative bucket ranking that implied a higher systemic importance than Fitch currently factors into its support assessment, could lead to positive changes in the bank's Support Rating, Support Rating Floor and IDRs. -- PAB's Short-Term IDR will be upgraded if its Long-Term IDR is upgraded. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- The bank's Long-Term IDR, Support Rating and Support Rating Floor will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support; lower propensity may also be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. -- PAB's Short-Term IDR will be downgraded if its Long-Term IDR is downgraded to or below 'CCC+', which Fitch views as highly unlikely in the short to medium term. VIABILITY RATING Factor that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained reduction in the bank's risk appetite, such as material reduction of its shadow activities or improvement of transparency towards those activities, further reduction of its growth and sustained improvement of its capital buffers, would be positive to its VR assessment, for example, if its CET1 ratio were to rise and stay above 9.5%. Factors that could, individually or collectively, lead to negative rating action/downgrade: PAB's VR could be downgraded if there is excessive growth in credit-card receivables, especially if accompanied by lower underwriting standards or significant deterioration in household affordability, which leads to a sustained deterioration in the bank's financial metrics, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans ratio increasing to and sustained at around 8% (2017-2020 four-year average of 2.0% on a reported basis), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan loss provisioning, and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The CET1 ratio falling below 7.5% without a credible path to return to existing levels. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS PAB's IDRs are directly linked to China's sovereign ratings. ESG CONSIDERATIONS PAB has an ESG Relevance Score of '4' for Financial Transparency. There are still structural issues around financial transparency and disclosure, which are not captured in headline performance metrics in China and affect Fitch's OE assessment. PAB, like other mid-tier banks, remained more exposed to this risk relative to the state banks, due to their larger exposure to wealth-management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. TD HOLDINGS: Expects to Raise $37.85MM From Private Placement ------------------------------------------------------------- TD Holdings, Inc. entered into a certain securities purchase agreement on Aug. 26, 2021, with Ms. Renmei Ouyang, the chief executive officer and chairwoman of the Company, Mr. Shuxiang Zhang, an affiliate of the Company, and certain other purchasers whom are "non-U.S. Persons" as defined in Regulation S of the Securities Act of 1933, as amended, pursuant to which the Company agreed to sell an aggregate of 16,000,000 shares of its common stock, par value $0.001 per share, at a per share purchase price of $1.00. The gross proceeds to the Company from the Common Stock Offering will be $16,000,000. Since Ms. Ouyang and Mr. Zhang are affiliates of the Company, the Common Stock Offering has been approved by the Audit Committee of the Board of Directors of the Company as well as the Board of Directors of the Company. The parties to the Common Stock SPA have each made customary representations, warranties and covenants, including, among other things, (a) the Investors are "non-U.S. Persons" as defined in Regulation S and are acquiring the Shares for the purpose of investment, (b) the absence of any undisclosed material adverse effects, and (c) the absence of legal proceedings that affect the completion of the transaction contemplated by the Common Stock SPA. The Common Stock SPA is subject to various conditions to closing including Nasdaq's completion of its review of the notification to Nasdaq regarding the listing of the Shares. The Shares to be issued in the Common Stock Offering are exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Regulation S promulgated thereunder. Unit Private Placement On Aug. 26, 2021, the Company entered into a certain securities purchase agreement with certain purchasers whom are "non-U.S. Persons" as defined in Regulation S of the Securities Act, pursuant to which the Company agreed to sell an aggregate of 19,000,000 units, each Unit consisting of one Common Stock and a warrant to purchase one Common Stock with an initial exercise price of $1.15 at a price of $1.15 per Unit, for an aggregate purchase price of approximately $21.85 million. The Warrants are exercisable immediately upon the date of issuance at an initial exercise price of $1.15 for cash. The Warrants may also be exercised cashlessly if at any time after the three-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares. The Warrants shall expire five years from its date of issuance. The Warrants are subject to customary anti-dilution provisions reflecting stock dividends and splits or other similar transactions. The Unit SPA is subject to various conditions to closing including Nasdaq's completion of its review of the notification to Nasdaq regarding the listing of the Units. The Units to be issued in the Unit Offering are exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Regulation S promulgated thereunder. The net proceeds of the Common Stock Offering and the Unit Offering shall be used by the Company in connection with the Company's general corporate purposes, working capital, or other related business as approved by the board of directors of the Company. About TD Holdings TD Holdings, Inc. is a service provider currently engaging in commodity trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal product from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com. TD Holdings reported a net loss of $5.95 million for the year ended Dec. 31, 2020, compared to a net loss of $6.94 million for the year ended Dec. 31, 2019. As of June 30, 2021, the Company had $186.59 million in total assets, $37.33 million in total liabilities, and $149.26 million in total equity. ========= I N D I A ========= A.M. VINYL: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of A.M. Vinyl Private Limited (AVPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 31.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Short Term Bank 13.50 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 23, 2020, placed the rating(s) of AVPL under the 'issuer non-cooperating' category as AVPL 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. AVPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 9, 2021, May 19, 2021, May 29, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). A.M Vinyl Private Limited (AMVPL) was incorporated in 2004 by Mr. Ashok Chopra. AMVPL is engaged in the manufacturing and trading of PVC products and its product portfolio includes PVC floorings, PVC leather cloth, PP nonwoven spun bonded fabric and PVC sheeting. The products manufactured by AMVPL find application in various industries like automobiles and power generation. The primary product manufactured by AMVPL is Coated Textile Fiber which is majorly used in car mats, seat covers, insulated mats, shoe soles and auto roof-tops amongst its other uses. The manufacturing facility for AMVPL is located in Bhiwadi, Rajasthan. AIR INDIA: Government to Offer Indemnity to Bidder Over Cairn Claim ------------------------------------------------------------------- BloombergQuint reports that India is set to absolve bidders for its loss-making flag carrier from any liability arising out of a lawsuit filed by Cairn Energy Plc, which has claimed the state-run airline's assets over a long-running tax dispute with the government. BloombergQuint relates that Prime Minister Narendra Modi's administration will offer so-called indemnity to the financial bidders of Air India Ltd., which the government has repeatedly tried to sell without success. In the latest attempt, a group of bureaucrats cleared a final sale purchase agreement on Aug. 28, and that plan is likely to be approved by a group of ministers this week, they said. According to the report, the government expects to receive financial bids by Sept. 15, junior Civil Aviation Minister V.K. Singh told parliament in July. Air India, unprofitable since a 2007 merger with state-owned domestic operator Indian Airlines Ltd., has total debt of INR600 billion ($8.2 billion) and loses 200 million rupees every day, straining government finances even as the South Asian nation's budget deficit widens. Potential bidders for the airline -- identified by local media as conglomerate Tata Group and the owner of local budget carrier SpiceJet Ltd. -- may welcome any assurance from the government on not having to encounter any surprises on further liabilities, BloombergQuint relays. BloombergQuint says Cairn, which last year won an arbitration award for $1.2 billion plus interest over a controversial retrospective tax demand from the Indian government, has called Air India "an alter ego" of the country in a U.S. court, and held it responsible for the government's liabilities, including any arbitration awards. Devas Multimedia Pvt., a company seeking over $1.2 billion it won in international arbitration from India over a dispute with state-run Antrix Corp., is also seeking to seize Air India's assets abroad, the report notes. India last month approved legislation that will allow firms relief from the tax demands if they agree to drop litigation. The government is in talks with Cairn to settle the dispute, Revenue Secretary Tarun Bajaj said in a subsequent interview, adds BloombergQuint. Air India Ltd -- http://www.airindia.com/-- is the flag carrier airline of India owned by Air India Limited (AIL), a Government of India enterprise. The airline operates a fleet of Airbus and Boeing aircraft serving various domestic and international airports. It is headquartered at the Indian Airlines House in New Delhi. Since the 2011-12 financial year, the government of India has pumped more than INR300 billion into the troubled airline, whose net losses for the year ended March 2019 reached INR85 billion, its biggest since the 2008 financial crisis and up 59% from losses of INR53 billion a year earlier, according to the Nikkei Asia. AJAY SYNTHETICS: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Ajay Synthetics Private Limited (ASPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 19, 2020, placed the rating(s) of ASPL under the 'issuer non-cooperating' category as ASPL 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. ASPL continues to be noncooperative 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. Ajay Synthetics Private Limited (ASPL), incorporated in 1987, is promoted by Kabra family and belongs to Ajay Group of Industries based out of Bhilwara (Rajasthan). The group is engaged in the business of manufacturing of finished synthetics fabrics from polyester yarn since 1987 through group concerns which includes Ajay India Limited (AIL, established in 1996), Subh Fabrics Limited (SFL, established in 1994) and Ajay Syntex Ltd (ASL, established in 2006). The group also does processing of grey fabrics through Rolex Processor Private Limited. ASPL is engaged in the business of manufacturing of synthetics grey fabrics from polyester yarn and gets the processing work done on grey fabrics from other processors on job work basis. Further, it is also engaged in trading of grey and finished fabrics. AMRIT HOMES: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Amrit Homes Private Limited (AHPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 25.90 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 10, 2020, placed the rating(s) of AHPL under the 'issuer non-cooperating' category as AHPL 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. AHPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 26, 2021, June 5, 2021, June 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Bhopal (Madhya Pradesh) based Amrit Homes Private Limited (AHPL) was incorporated by Mr. Dalip Singh Bindra and Mr. Pritpal Singh Bindra in 1995 with an objective to carry out real estate activity. The company has completed various real estate projects which include 6 residential and 2 commercial complexes. BASUNDHARA GREEN: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Basundhara Green Power Limited (BGPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.20 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 30, 2020, placed the rating(s) of BGPL under the 'issuer non-cooperating' category as BGPL 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. BGPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 15, 2021, June 25, 2021, July 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). BGPL was incorporated in December, 2009 by Shri Ranjan Kumar Barai, Shri Gobardhan Mondal and Smt. Suparna Bhattacharya of West Bengal. The company is currently engaged in fish farming & cultivation with its unit being located at Jalpaiguri, West Bengal. BGL is operating with a processing capacity of 378 Metric Tonnes Per Annum (MTPA). Further, BGL has undertaken expansion of its existing fish farming & cultivation unit by enhancing its capacity by 18 MTPA. The total cost of the expansion project was INR5.14crore (excluding margins for working capital) funded at a debt equity ratio of 1.24:1. The project was commissioned in February, 2017. BGL is in the process of setting up a new poultry farming unit for production of broiler meat with proposed capacity of 5.60 lakh birds. The total cost of the project is estimated at INR7.93 crore (excluding margins for working capital) to be funded at a debt equity ratio of 2.14:1. BHAKTI INFRACON: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Bhakti Infracon LLP (BIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 40.00 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 BIL under the 'issuer noncooperating' category as BIL 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. BIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 08, 2021, June 18, 2021, 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). Surat (Gujarat) based, BIL was established as a partnership firm during July 2017 named Bhakti Buildcon by Mr.Rakeshkumar Dudhwala, Ms. Dimpleben Dudhwala, Mr. Pradipkumar Patel, Mr.Banti Sadadiwala, Mr. Dineshbhai Patel and Mr. Jigarbhai Gajjar. In February 2018, the firm converted to Limited Liability Partnership and named Bhakti Infracon LLP. BIL is currently executing a commercial project named 'Walk Way The Mall' (RERA Registration No. PR/GJ/SURAT/SURAT CITY/SUDA/CAA02185/270318) with 250 proposed units (223 shops, 12 food shops, a restaurant, a gym, a game zone and a multiplex) at Surat. BIL is part of Surat based 'Bhakti group' which has strong presence in Surat. Over the period, the group has completed various projects of more than 11.62 lakh Sq. feet. Currently the group has on-going projects with cost of more than Rs.118.95 crore under different entities. BTM CORP: CARE Keeps D Debt Rating in Not Cooperating Category -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of BTM Corp Limited (BCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 27.00 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 24, 2020, placed the rating(s) of BCL under the 'issuer non-cooperating' category as BCL 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. BCL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 10, 2021, May 20, 2021, May 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Bhilwara (Rajasthan) based BCL was incorporated in October, 2005 by Tekriwal brothers as a closely held public limited company. Mr. Rajeev Tekriwal is the Managing Director and the other two brothers Mr. Anil Tekriwal and Mr. Sanjeev Tekriwal are the Directors on the board of BCL. The company is engaged in the business of manufacturing of grey (cotton, polyester and synthetic) fabrics. grey fabric. BTM INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of BTM Industries Limited (BIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 27.00 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 24, 2020, placed the rating(s) of BIL under the 'issuer non-cooperating' category as BIL 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. BIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 10, 2021, May 20, 2021, May 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Incorporated in 1998, BIL is part of "BTM group" based out of Bhilwara. BIL is engaged in the business of processing of synthetic grey fabrics and trading of finished fabrics. BTM group consists of BTM Corp Limited (BCL) and Prestige Suitings Private Limited (PSPL) which are also engaged in manufacturing of synthetic grey fabric. DABRA AGRO: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dabra Agro Private Limited (DAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long 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 10, 2020, placed the rating(s) of DAPL under the 'issuer non-cooperating' category as DAPL 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. DAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated May 26, 2021, June 5, 2021, June 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Dabra (Madhya Pradesh) based Dabra Agro Private Limited (DAPL, CIN: U51101MP2006PTC018589) was incorporated as a private limited company in 1996. DAPL is mainly engaged in the processing of rice and is also engaged in the trading of paddy. The processing plant of the company has an installed capacity of 8 Metric Tonnes per Hour (MTPD) for processing of rice as on March 31, 2017. The company purchases paddy from traders as well as farmers and sells rice (basmati, parmal, Shela etc.) to Gujarat, etc. The company sells rice under the brand name of 'Dinner King'. EAGLE STEELS: CARE Lowers Rating on INR14.25cr LT Loan to D ----------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Eagle Steels Rolling Mills Private Limited (ESRMPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.25 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Short Term Bank 8.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Revised from CARE A4 Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 3, 2021, placed the rating(s) of ESRMPL under the 'issuer non-cooperating' category as ESRMPL 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. ESRMPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated April 18, 2021, April 28, 2021, May 8, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The rating assigned to the bank facilities of ESRMPL have been revised on account of delays in debt servicing recognized from publicly available information. Incorporated in June 2012, Eagle Steels Rolling Mills Private Limited (ESRMPL) (erstwhile Eagle Steels, a partnership firm established in 2001) is engaged in the manufacturing of structural steel rolled products viz. beams, channels and angles, which find application mainly in the power transmission, telecommunication, wind power generation and construction industries respectively. The company is also a registered vendor with the Maharashtra State Electricity Board (MSEB), Maharashtra State Electricity Distribution Company Limited (MSEDCL), Gujarat Electricity Board, Transmission Corporation of Andhra Pradesh, and other Government entities. The operations of the company are managed by the key promoters - Mr. Amritlal Shah and his son Mr. Kunal Shah, who possess over three decades and a decade of experience respectively, in the steel industry. ESRMPL has its manufacturing plant located at Taloja, Maharashtra. The primary raw material needed for manufacturing viz. mild steel (MS) and high tensile (HT) billets and blooms are sourced from local suppliers. ESKAY SILK: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Eskay Silk Industries Private Limited (ESIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 16.19 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Short Term Bank 2.50 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated June 30, 2020, placed the rating(s) of ESIPL under the 'issuer non-cooperating' category as ESIPL 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. ESIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 16, 2021, May 26, 2021, June 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Eskay Silk Industries Private Limited (ESIPL) was promoted by Shri Motilal Jain and Shri Suresh Kumar Jain in 1984 and later taken over by Agarwal family in 1991. ESIPL was earlier primarily engaged in trading of high-quality textile fabrics has now ventured into fabric manufacturing from FY12. The capacity of ESIPL stood at 36.72 lakh pieces per annum as on March 31, 2015. GUPTA TEX: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Gupta Tex Prints Private Limited (GTPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.76 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Long Term/ 7.00 CARE D/CARE D; ISSUER NOT Short Term COOPERATING; Rating continues Bank Facilities to remain under ISSUER NOT COOPERATING category Short Term Bank 0.25 CARE D; ISSUER NOT COOPERATING; 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 GTPPL under the 'issuer non-cooperating' category as GTPPL 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. GTPPL 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, 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). GTPPL was initially formed as Gupta Dyeing and Printing Mills (GDPM), a partnership firm in 1979 by Gupta family of Surat. Later on in 2007, GDPM was converted into a private limited company. GTPPL is primarily engaged in fabric processing (bleaching, printing, dyeing & embroidery) and also does the job work activities as well as trading of grey yarn and finished fabric. The fabric processed by GTPPL is primarily used for making sarees& ladies dress material. The finished fabric is marketed under the brand name of 'Gupta Sarees'. GTPPL has an installed capacity of 1.25 lakh meters per day for processing of grey fabric at its sole processing unit located in Surat (Gujarat). KHANDWA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Khandwa Industries Private Limited (KIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.15 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 10, 2020, placed the rating(s) of KIPL under the 'issuer non-cooperating' category as KIPL 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. KIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated May 26, 2021, June 5, 2021, June 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). KIPL was incorporated in the year 2008 for manufacturing of cotton bales & seeds and trading of cotton bales, oil, cakes and seeds. KIPL is promoted by the Gupta family who are into the cotton business since the year 1950. Mr Sandeep Gupta and Ms Ramadevi Gupta are actively involved in operations of KIPL. KIPL is primarily engaged in trading of ginned cotton. It also has an installed capacity of processing 12800 metric tons per annum (MTPA) of cotton seeds and 6700 MTPA of ginned cotton as of March 31, 2015. MALWA STRIPS: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Malwa Strips Private Limited (MSPL) 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 Short Term Bank 3.25 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 10, 2020, placed the rating(s) of MSPL under the 'issuer non-cooperating' category as MSPL 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. MSPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated May 26, 2021, June 5, 2021, June 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Malwa Strips Private Limited (MSPL, CIN: U27107MP1987PTC004101) was incorporated in 1987 in Dewas (Madhya Pradesh) by Mr Dilip Doshi along with his family members. MSPL is engaged in the business of manufacturing of copper metal based products like copper bars, rods, strips, foils and other copper based products. The products of MSPL are mainly used in power and infrastructure sector. MSPL has its manufacturing facility situated at Dewas having an installed capacity of 120 Metric Tonnes Per Annum (MTPA) as on March 31, 2016. Major raw material used by MSPL is copper rods and copper strips. MOTI RAM: CARE Keeps D Debt Rating in Not Cooperating Category -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Moti Ram Sunil Kumar (MRSK) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.67 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 17, 2020, placed the rating(s) of MRSK under the 'issuer non-cooperating' category as MRSK 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. MRSK continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 2, 2021, June 12, 2021, June 22, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Moti Ram Sunil Kumar (MRS) was established as a proprietorship firm in 2006 by Mr Sunil Kumar. The manufacturing unit is located at Karnal, Haryana. The firm is engaged in processing (milling) of paddy (rice). The firm also works on job work basis for Government departments. MRS procures rice from local grain markets through dealers and agents mainly from the states of Delhi and Haryana. The firm sells its products i.e. basmati and non-basmati rice in the states of Delhi and Haryana through a network of commission agents and traders. OCTOPUS PAPERS: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Octopus Papers Limited (OPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.88 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 21, 2020, placed the rating(s) of OPL under the 'issuer non-cooperating' category as OPL 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. OPL 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). OPL was initially incorporated as Octopus Paper Private Limited on March 19, 2007 by Mr. Bharat Khara, Mr. Vishal Khara and Mrs. Jyoti Khara. Subsequently, during August 2015, it rechristened itself to OPL. OPL is engaged into manufacturing and trading of notebooks; copier papers and paper related office stationery and also does Offset Printing. OPL sells its products in four different categories i.e. school stationery products (includes long book, note book, jumbo book A4 long book, drawing book and graph book), office stationery products (registers, cash memo, copier papers and pocket memo), other paper products and offset printing. The manufacturing plant of the company is located at Vapi G.I.D.C. All the business activities are done under the brand name "Octopus". OPL markets its products into three different categories i.e. Industrial (all industries), Domestic (schools and offices) and Customers Base (wholesalers and retailers).OPL has diversified product portfolio as it supplies its products to various clients such as banking sectors, government and semi government bodies, corporate sectors, education sector and retail. OPL has a group entity namely Octopus Printers Private Limited which is also into similar line of business, however from March 2015, Octopus Printers Private Limited was merged with OPL through slump sale and all the assets and liabilities of Octopus Printers Private Limited were merged into Octopus Papers Private Limited. OM AASTHA: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Om Aastha Indo Energy Private Limited (OAIEPL) 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 September 1, 2020, placed the rating(s) of OAIEPL under the 'issuer non-cooperating' category as OAIEPL 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. OAIEPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 18, 2021, July 28, 2021, August 7, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Om Aastha Indo Energy Private Limited (OAIEPL) was constituted as a private limited company in October 2011 by Mr. Shailesh Pratap, Mr. Bishwambar Singh and Mrs. Sudha Pratap for setting up a rice milling unit. The company has started its commercial operations from January 2014. The company has been engaged in rice milling activities at its plant located at Bhabhua, Bihar with aggregate installed capacity of 17400 MTPA. The company procures its raw material from local market and sells its finished products across Bihar. OM BESCO: CARE Keeps D Debt Rating in Not Cooperating Category -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Om Besco Rail Products Limited (OBRPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 46.00 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 28, 2020, placed the rating(s) of OBRPL under the 'issuer non-cooperating' category as OBRPL 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. OBRPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 13, 2021, June 23, 2021, 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). Om Besco Rail Products Ltd. (Om Besco) was promoted by Shri Madhu Sudan Tantia (son of Shri O.P Tantia) in March 2008. The company, after incorporation, remained dormant for about 4 years. In 2012, Om Besco ventured into setting up manufacturing facility of alloy steel casting products (bogies, couplers, draft gears) to be used in railway freight wagons with a plant capacity of 16,100 MTPA in Jharkhand. The project is backward integration to meet the raw material requirement of the flagship company - Besco Ltd (Wagon division) [Besco]. P. M. INDUSTRIES: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of P. M. Industries (PMI) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.64 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Short Term Bank 2.36 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide press release dated July 29, 2020, had placed the ratings of PMI under the 'Issuer Noncooperating' category as the firm had failed to provide information for monitoring of the ratings and had not paid the surveillance fees for the rating exercise as agreed to in its rating agreement. PMI continues to be non-cooperative despite requests for submission of information through phone calls and e-mails dated June 14, 2021, June 24, 2021 and July 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. P.M. Industries (PMI) was established in 2007 by Mr. Mukesh Doomra as a proprietorship firm. However, on April 1, 2014, the constitution of PMI was changed into a partnership firm with Mr Mukesh Doomra and Mrs Neena Rani as its partners sharing profit and losses in the ratio of 4:1. The firm is engaged in processing of paddy at its manufacturing facility in Fazilka, Punjab, with an installed capacity of processing 120,000 quintal of paddy per day as on December 31, 2016. PMI sells basmati and non-basmati rice directly to various rice millers based in Delhi, Chandigarh and Punjab. The raw material, primarily paddy, is procured from local grain markets and through commission agents based in Punjab only. PMI has a group concern, namely, Prithvi Raj Mukesh Kumar (PRM), which was established in 2008 as a proprietorship firm and is working as a commission agent for buying and selling paddy. PALLA SILKS: CARE Keeps C Debt Rating in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Palla Silks Private Limited (PSPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 7, 2021, placed the rating(s) of PSPL under the 'issuer non-cooperating' category as PSPL 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. PSPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 23, 2021, July 3, 2021 and July 13, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Palla Silks Private Limited (PSPL) was incorporated in the year 2014 by Mr. Palla Ashok Kumar and his wife Mrs. Palla Lakshmi. PSPL is located at Hindupur, Andhra Pradesh and is engaged in the business of trading of various types of silk sarees. PANAMA AGRICULTURE: CARE Keeps D Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Panama Agriculture Private Limited (PAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 1.25 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 June 30, 2020, placed the rating(s) of PAPL under the 'issuer non-cooperating' category as PAPL 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. PAPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 16, 2021, May 26, 2021, June 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Pune based, Panama Agritech Private Limited was promoted by Ladkat brothers with Mr. Sameer Ladkat as Chairman and Mr. GautamLadkat as Director. Further, since Feb. 8, 2016, the name of the company was changed to PAPL.The company is engaged in providing services for scientific and safe storage of grains in silo bags. The company primarily provides its services to Madhya Pradesh Warehousing and Logistic Corporation (MPWLC) on rental basis at a pre-agreed price per quintal. PINAKIN PLASTOFORMING: CARE Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Pinakin Plastoforming Limited (PPL) continue 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 Short Term Bank 0.50 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 1, 2020, placed the rating(s) of PPL under the 'issuer non-cooperating' category as PPL 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. PPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated May 17, 2021, May 27, 2021, June 6, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Vadodara-based (Gujarat) PPL was incorporated in 2002 by Joshi family as a private limited company and changed its constitution to closely held limited company during February 2016. The operation of PPL is currently managed by Mr. Dinesh Joshi, Mr. Divyesh Joshi and Ms. Pratiksha Joshi. PPL is engaged into manufacturing Polypropylene (PP) Disposable plastic products such as disposable glass, cups etc. PFL is operating from its sole manufacturing unit located in Vadodara(Gujarat), having installed capacity of 1,500 Metric Tonne Per Annum (MTPA) as on March 31, 2017. Siddhivinayak Industries and Shri Sainath Industries are associated entities managed and owned by members of Joshi family. Both entities are engaged into manufacturing and trading of plastic disposables. RVR FARMS: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------ CARE Ratings said the rating for the bank facilities of RVR Farms (RF) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.92 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 24, 2020, placed the rating(s) of RF under the 'issuer noncooperating' category as RF 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. RF continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated July 10, 2021, July 20, 2021, and July 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). RVR farm (RVRF) was established in the year 2014 by Mr. Krishna Reddy. The Partners has more than two decade of experience in poultry business. The firm is engaged in farming of egg, laying poultry birds (chickens) and trading of eggs, cull birds and their Manure. The firm mainly buys chicks from Sri Venkateswara Hatcheries private limited. The firm purchases raw materials for feeding of birds like rice brokens, maize, sun flower oil cake, shell grit, minerals and soya from its associate concerns (RVV Agri Feeds Private Limited). The firm sells all its products like eggs and cull birds to local traders. The firm has installed capacity of 5, 04,000 layers in 2 units. SHIRPUR GOLD: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Shirpur Gold Refinery Limited (SGRL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 37.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Short Term Bank 328.00 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated August 20, 2020, placed the ratings of SGRL under the 'issuer non-cooperating' category as SGRL had failed to provide information for monitoring of the rating exercise as agreed to in its Rating Agreement. SGRL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and email dated August 6, 2021, August 5, 2021, August 02, 2021, July 20, 2021, July 16, 2021, July 08, 2021, July 06, 2021, July 05, 2021, July 01, 2021 and June 30, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers At the time of last rating on August 20, 2020 the following were the rating strengths and weaknesses (updated for the information available from stock exchange): Key Rating Weaknesses * On-going delay/default in debt servicing: As per the Limited Audit Report available with the company's stock exchange disclosure for FY21's abridged results, there are ongoing delays in debt servicing. Further, the audit report mention that three Lender banks and a financial institution have outstanding dues classified as non-performing assets, amounting to INR340 crore including bank guarantees invoked, interest and penal interest of INR57.70 crore due to defaults in repayment and non-compliance of the terms and conditions. * Update on performance in FY21: The financial performance of the company has deteriorated in FY21. The total operating income of the company increased by 22% to INR4,381 crore as compared to INR3,556 crore in FY20. The improvement was due to increased demand and prices of gold. SGRL incurred net loss of INR245 crore in FY21 (as compared to net loss of INR141 crore in FY20). Overall gearing of the company deteriorated further due to erosion of net-worth on account of huge loss incurred in FY21. Analytical approach: Consolidated CARE has considered the consolidated financials of SGRL for analytical purposes owing to financial and operational linkages between the company and its subsidiaries. The consolidated financials include the financials of two wholly-owned subsidiaries namely Shirpur Gold Company Pvt. Ltd., Singapore and Zee Gold DMCC, Dubai. Shirpur Gold Refinery Limited (SGRL) is a part of Essel Group since December 2008, post takeover of assets from ARCIL auction. The company is engaged in gold refining with an installed capacity to refine 217 MT per annum of gold. Its refinery is located at Shirpur, Dhule district, Maharashtra. The company is also engaged in bullion trading, manufacturing and sale of gold coins, gold bars and gold jewelry both in the domestic and international markets. The company's products namely Gold Bars and Gold Jewelry are well established in the market and are sold under the brand name 'Zee Gold'. As on March 31, 2019, SGRL has one wholly-owned subsidiary namely Zee Gold DMCC (ZGD), Dubai and two step down foreign subsidiaries namely Precious Metals Mining and Refining Limited (PMMRL), Papua New Guinea and Metalli Exploration and Mining, Mali. Shirpur Gold Company Private Limited (SGM), Singapore ceased to exist with effect from March 07, 2019 and loss (Rs.1.96 crore); being investment value in such subsidiary has been written off. SICO INDIA: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Sico India (SI) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 2.50 CARE D; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Short Term Bank 2.50 CARE D; ISSUER NOT COOPERATING; Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 16, 2020, placed the rating(s) of SI under the 'issuer noncooperating' category as SI 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. SI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated June 1, 2021, June 11, 2021, June 21, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Delhi based, SICO India (SI) was established in 1982 as a proprietorship firm and is currently being managed by Mr. Savir Madan. The firm is engaged in trading of ball-bearings from its office located in Rajouri Garden, Delhi. Firm imports a specific brand of ball-bearings named HHB (Hebei Hailan Bearing) and claims to be the sole supplier for the brand in India. The firm is selling its product through a well-established network of dealers across India. SUNRISE AUTOMOBILES: CARE Keeps B Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sunrise Automobiles Private Limited (SAPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE B; ISSUER NOT COOPERATING; Facilities Rating continues to remain Under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated July 31, 2020, placed the rating(s) of SAPL under the 'issuer non-cooperating' category as SAPL 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. SAPL 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). Mehsana (Gujarat) based SAPL, was incorporated in 2010 by Mr. Ashok Chaudhary and his family members. SAPL was operating as authorized dealer of AMW Motors Ltd. since its incorporation. However, in September 2015, the company has surrendered its dealership with AMW Motors Ltd. and currently operates as an authorized dealer and service provider of Ashok Leyland Limited in Mehsana and Patan. Currently, SAPL has a showroom with service centers for Ashok Leyland at Mehsana. VIDEOCON GROUP: NCLT Order Set to Delay Debt Resolution ------------------------------------------------------- The Hindu BusinessLine reports that the National Company Law Tribunal's decision to freeze assets belonging to the Dhoot family, the erstwhile promoters of Videocon group, could jeopardise the company's debt resolution process. According to the report, the NCLT has directed the Dhoot family to disclose their moveable and immovable assets, including bank accounts, owned by them in India or anywhere in the world. The order was based on a petition by the Ministry of Corporate Affairs under Section 241-242 of the Companies Act, 2013 against Videocon Industries and its promoters. NCLT expressed surprise at how banks granted loans to Videocon when it was already under so much financial stress. BusinessLine relates that experts said the NCLT's order could delay the debt resolution process under which Vedanta-backed Twin Star Technologies had emerged as the top bidder. The lenders had even agreed to take a 95 per cent hair cut while agreeing to a debt resolution plan by the Vedanta group. This case will come up for hearing at the National Company Law Appellate Tribunal (NCLAT) on September 7. "It's not clear if the NCLAT can proceed with the debt resolution proceedings in the light of the petition filed by the MCA. It is important to know if the NCLT has sought details of Dhoot family's existing personal assets or it also includes the assets under the Videocon group," said a banking industry source. However, other sources close to the Vedanta group said that the NCLT order will have no implications on the debt resolution process, the report states. "The NCLT order is related to freezing the assets of the former promoters of Videocon, including their bank accounts and attaching their properties. It does not have a bearing on the resolution plan submitted by Twin Star Technologies," said the source, the report relays. The NCLT had earlier approved the offer made by Twin Star Technologies but had expressed surprise that the bid placed by the Vedanta Group entity for acquiring 13 companies under the Videocon Group was almost the same value arrived at by the registered valuers for liquidation, BusinessLine recalls. Bank of Maharashtra and IFCI pointed out the NCLT order to show a "breach of confidentiality clause with regard to the liquidation value." About Videocon Industries Videocon Industries sells consumer products like color televisions, washing machines, air conditioners, refrigerators, microwave ovens and many other home appliances in India. Videocon was among the first 12 companies pushed into bankruptcy after directions from the Reserve Bank of India in 2017. On June 6, 2018, National Company Law Tribunal (NCLT), Mumbai bench, admitted a petition for initiating insolvency resolution process against the company under the Insolvency and Bankruptcy Code, 2016. The company's total debt stood at over INR635 billion in 2019, Business Standard discloses citing bankruptcy case related disclosures on the company's website. ================= I N D O N E S I A ================= GARUDA INDONESIA: Net Loss Widens to USD902MM in H1 Ended June 30 ----------------------------------------------------------------- The Jakarta Post reports that Garuda Indonesia saw its net loss swell 25 percent annually to US$902 million (IDR12.87 trillion) in the January-June period this year as prolonged mobility restrictions greatly hit passenger air travel. In its latest financial report, Garuda said its revenue dropped 24 percent year-on-year (yoy) to $696.8 million in the first half, led by a near halving in passenger airline services to $375.3 million, the report discloses. Garuda's average daily passenger count plummeted to 2,000 after the government started enacting emergency public activity restrictions (PPKM Darurat) in July — compared to 12,000 before the policy, the Jakarta Post notes. Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. ===================== N E W Z E A L A N D ===================== CHALLENGE MARINE: Goes Into Liquidation; Workers Left High and Dry ------------------------------------------------------------------ Stuff.co.nz reports that employees of a marine company have been left without income or tools after the business went into liquidation at level 4 owing more than NZD3.8 million. Around a dozen employees worked at Challenge Marine, a boat design and repair business at Port Nelson. The company was registered in June 2018 by director James Olive, also known as Semisi Olive. Last week, employees received a letter from a liquidator, telling them the company would be liquidated, Stuff relates. According to Stuff, the liquidator Murray G Allott's report showed the company owes more than NZD3.8 million. This includes NZD600,000 to Inland Revenue Department, and hundreds of thousands to suppliers and service providers all over Nelson. Stuff relates that the report said the most recent financial statements prepared for the company for the financial year ending March 2020 were in draft form and showed a trading loss of NZD950,000 in that year. The company was put into liquidation by its shareholders and was insolvent the report said. With the country under level 4 conditions, "I am not in a position to be able to make any proposal regarding the future of the company's business or your employment status," Stuff quotes Mr. Allott as saying. Stuff understands the liquidators cannot access the company until alert levels drop. Until then, employees are in limbo: unable to access government help without a formal redundancy, and unsure of what wages, if any, they will receive. Nevil Basalaj sold Challenge Marine in 2018. Basalaj's company Nelson Reliance Engineering (NRE) went into liquidation in 2018, owing unsecured creditors over NZD4.2 million. Among the secured creditors on the liquidator's report for Challenge Marine are trustees for the Basalaj Family Trust, Stuff discloses. FP IGNITION TRUST 2019-1: Fitch Raises Cl. F Notes Rating to 'BB+' ------------------------------------------------------------------ Fitch Ratings has upgraded five classes and affirmed one class of notes from Series 2019-1 of the FP Ignition Trust 2011-1 New Zealand. The transaction is backed by a pool of first-ranking New Zealand passenger, light and heavy commercial vehicle operating and finance leases originated by Eclipx Fleet Holding (NZ) Limited (FleetPartners NZ), the New Zealand subsidiary of FleetPartners Limited. The notes were issued by NZGT (FP) Trustee Limited as trustee for FP Ignition 2019-1. The upgrade of the class B, C, D, E and F notes reflect asset performance that that has been better than Fitch had expected through the pandemic, the removal of the additional pandemic stress on defaults and build-up of credit enhancement available to the support the notes. At the same time, Fitch has removed the Negative Outlook of the class D, E and F notes due to improved economic conditions since the previous review held on 21 September 2020. All notes have a Stable Outlook. DEBT RATING PRIOR ---- ------ ----- Series 2019-1 of the FP Ignition Trust 2011-1 New Zealand A NZFPID1014R1 LT AAAsf Affirmed AAAsf B NZFPID1015R8 LT AAAsf Upgrade AAsf C NZFPID1016R6 LT A+sf Upgrade Asf D NZFPID1017R4 LT A-sf Upgrade BBBsf E NZFPID1018R2 LT BBB-sf Upgrade BBsf F NZFDIP1019R0 LT BB+sf Upgrade B+sf KEY RATING DRIVERS Economic Rebound in the Medium Term Supports Outlook: The Stable Outlook is supported by New Zealand's effective suppression of the coronavirus and macro-policy response, facilitating a V-shaped recovery for the country. Fitch's GDP growth forecast is 5.5% in 2021 and 3.3% in 2022. Fitch also expects unemployment to trend gradually lower to 4.4% by end-2022. Removal of Pandemic Stress on Obligor Default Risk: Fitch has removed the additional pandemic stress on defaults that was implemented at the previous rating action to reflect Fitch's expectations of a worsening of asset performance. However, economic performance has been better than Fitch expected, and Fitch believes the mean default rate incorporates a buffer that is sufficient to account for any pandemic-related uncertainty. Historic data analysis was performed to derive the one-year default probability assumption for each contract type, based on the annual average historical default rates associated with the underlying portfolio. The one-year annual default probability derived on the portfolio remained unchanged at 1.3% and the Fitch Portfolio Credit Model (PCM) derived results were applied to Fitch's cash flow modelling. Cash flow analysis was performed and all notes can withstand all Fitch stresses at their current rating levels. Recovery Rates Increased: Fitch analysed FleetPartners NZ's historical recovery rates to arrive at a base recovery rate of 68%. The recovery rate was applied in the PCM modelling. Actual recoveries have averaged 70% since the transaction's closing. Low Arrears and Defaults Supports Rating: The portfolio's 30+ day and 60+ day arrears of 0.28% and 0.01%, respectively, at end-June 2021 were significantly below the 1Q21 ABS Dinkum Index of 1.7% and 1.0%. The index for the Australian ABS market is used as a comparison due to the similarities between the two markets. As of end-June 2021, the portfolio had experienced 17 cumulative defaults, which, after recoveries, resulted in a net loss of 0.07% of the original portfolio. Strong excess spread since the transaction's closing has covered all realised losses. Increase in Obligor Concentration Risk: The top-ten obligors account for 21.35% of the asset balance, up from 17.8% at closing. Fitch stressed the default probability, correlation and recovery assumptions for large groups of obligors in the PCM modelling. Low Operational and Servicing Risk: All assets were originated by FleetPartners NZ. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with those of other lenders in New Zealand. Perpetual Corporate Trust Limited acts as standby servicer for the trust. Collection and servicing activities have not been disrupted by the pandemic, as staff members are able to work remotely and have access to the office, if needed. Residual Value Risk Remains Sufficiently Mitigated: FleetPartners NZ's sales proceeds as a percentage of the vehicle's documented residual value, excluding end of lease income and vehicle disposal costs, were tracking at 135% in June 2021. This reflects the current strength of the second-hand car market. The used car market may be benefiting from a combination of a change in consumer preferences away from public transport, New Zealand's used-car import restrictions, which has diminished the supply of older used vehicles and reduced supply of new cars resulting in larger demand for used vehicles. Rated Above Sovereign: Structured finance notes can be rated up to six notches above New Zealand's Long-Term Local-Currency Issuer Default Rating of 'AA+', supporting the 'AAAsf' rating on the class A and B notes. The key rating drivers listed in the applicable sector criteria, but not mentioned above, are not material to this rating action. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A longer pandemic than Fitch expects that leads to deterioration in macroeconomic fundamentals and consumers' financial positions in New Zealand beyond Fitch's baseline scenario. Credit enhancement cannot compensate for the higher credit losses and cash flow stresses, all else being equal. Fitch conducted sensitivity analysis by increasing gross default levels, decreasing recovery rates and decreasing residual value sales proceeds over the life of the transaction. -- Class A / B / C / D / E / F -- Recommended rating: AAAsf / AAAsf / A+sf / A-sf / BBB-sf / BB+sf Downgrade Sensitivity: -- Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. -- The rating sensitivity section provides insight into the model-implied sensitivities the transaction faces when assumptions - defaults or recoveries - are modified, while holding others equal. The modelling process uses the modification of default and loss assumptions to reflect asset performance in up and down environments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Fitch modifies the recovery rate to isolate the effect of a change in recovery proceeds at the borrower level. Impact on note ratings of increased defaults: -- Increase defaults by 25%: AAAsf / AA+sf / Asf / A-sf / BB+sf / BBsf -- Increase defaults by 50%: AA+sf / AAsf / Asf / BBB+sf / BB+sf / BBsf Impact on note ratings of decreased recoveries: -- Reduce recoveries by 25%: AAAsf / AA+sf / Asf / BBB+sf / BB+sf / BBsf -- Reduce recoveries by 50%: AAAsf / AAsf / Asf / BBBsf / BB+sf / BB-sf Impact on note ratings of multiple factors: -- Increase defaults by 25%; reduce recoveries by 25%: AA+sf / AA-sf / Asf / BBBsf / BB+sf / BB-sf -- Increase defaults by 50%; reduce recoveries by 50%: A+sf / Asf / BBB+sf / BB+sf / BBsf / B+sf Impact on note ratings of reduction in residual value sale proceeds: -- Decrease residual value sales proceeds by 10%: AAAsf / AA+sf / Asf / BBBsf / B+sf / less than Bsf -- Decrease residual value sales proceeds by 25%: AAsf / A+sf / BB+sf / less than Bsf / less than Bsf / less than Bsf -- Decrease residual value sales proceeds by 50%: BB+sf / less than Bsf / less than Bsf / less than Bsf / less than Bsf / less than Bsf -- The ratings sensitivity to changes in residual value indicates the model-implied ratings are particularly sensitive to changes in residual value risk. This sensitivity analysis overstates the sensitivity as the Fitch model caps the residual value at 100% compared with the actual levels of 135%. Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Macroeconomic conditions, collateral performance and credit losses that are better than Fitch's baseline scenario, or sufficient build-up of credit enhancement that would fully compensate for the credit losses and cash flow stresses, are commensurate with higher rating scenarios, all else being equal. -- The class A and B notes are rated at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded. Upgrade Sensitivity: -- Class C / D / E / F -- Recommended rating: A+sf / A-sf / BBB-sf / BB+sf -- Decrease defaults by 10%; increase recoveries by 10%: AA-sf / Asf / BBBsf / BB+sf BEST/WORST CASE RATING SCENARIO International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information as part of its ongoing monitoring. Prior to the transaction closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available to Fitch for this transaction. As part of its ongoing monitoring, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies, indicates that it is adequately reliable. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ================= S I N G A P O R E ================= BAT UNIVERSAL: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on Aug. 20, 2021, to wind up the operations of Bat Universal Pte. Ltd. Union Bank Of India (Hong Kong) filed the petition against the company. The company's liquidator is: Farooq Ahmad Mann 3 Shenton Way #03-06C Shenton House Singapore 068805 BRIO CONSTRUCTION: Creditors' Meetings Set for Sept. 14 ------------------------------------------------------- Brio Construction & Engineering Pte Limited will hold a meeting for its creditors on Sept. 14, 2021, at 2:00 p.m., via electronic means. Agenda of the meeting includes: a. to update on the status of liquidation; b. to approve the costs of liquidation, including the Liquidators' fees and disbursements and the winding up application costs; c. to approve the declaration of preferential dividend(s) pursuant to Section 328(1) of the Companies Act, Cap. 50; and d. to discuss any other business. The company's liquidators are: Chee Yoh Chuang Lin Yueh Hung c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 DEXTRA PARTNERS: Court Enters Wind-Up Order ------------------------------------------- The High Court of Singapore entered an order on Aug. 27, 2021, to wind up the operations of Dextra Partners Pte. Ltd. Lavrentios Lavrentiadis filed the petition against the company. The company's liquidators are: Mr. Joshua Taylor Ms. Chew Ee Ling c/o Alvarez & Marsal (SE Asia) Pte. Ltd. Six Battery Road #16-01/02 Singapore 049909 HEALTHPRO PTE: Commences Wind-Up Proceedings -------------------------------------------- Members of Healthpro Pte Ltd, on Aug. 27, 2021, passed a resolution to voluntarily wind up the company's operations. Mr. Tam Chee Chong has been appointed liquidator of the company. The company's liquidator is: Mr. Tam Chee Chong 204B Telok Ayer Street Singapore 068640 PAYVISION SINGAPORE: Creditors' Proofs of Debt Due on Oct. 1 ------------------------------------------------------------ Creditors of Payvision Singapore Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Oct. 1, 2021, to be included in the company's dividend distribution. The company's liquidators are: Lin Yueh Hung Oon Su Sun c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***