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       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

          Thursday, September 9, 2021, Vol. 24, No. 175

                           Headlines



A U S T R A L I A

CUBEX AUSTRALIA: Second Creditors' Meeting Set for Sept. 16
GOLLANS LOGISTICS: Second Creditors' Meeting Set for Sept. 16
HAIR-RASS ME: Second Creditors' Meeting Set for Sept. 16
MAJUN CONSTRUCTION: Second Creditors' Meeting Set for Sept. 16
NICKEL MINES: Fitch Assigns B+ Rating on Proposed USD Unsec. Notes



C H I N A

CHINA EVERGRANDE: Fitch Lowers Foreign Currency IDR to 'CC'
CHINA EVERGRANDE: Moody's Lowers CFR to Ca & Unsecured Notes to C
CHINA EVERGRANDE: To Pay Supplier in Unbuilt Properties
SUNING.COM: Founder Faces Resistance in Bid to Delay Bond Payment
YANGO GROUP: Fitch Affirms 'B+' Foreign Currency IDR

YUZHOU GROUP: Fitch Affirms B+ Rating on USD Senior Notes


H O N G   K O N G

JIAYUAN INT'L: Fitch Raises Foreign Currency IDR to 'B+'
PROFESSIONAL TEACHERS: To Hold Special Meeting on Sept. 11


I N D I A

BEST VIEW: CARE Reaffirms B+ Rating on INR33.80cr NCD
BRIJLAL HOSPITAL: CARE Keeps B+ Debt Ratings in Not Cooperating
CARD PRO: CARE Keeps D Debt Ratings in Not Cooperating Category
ENALTEC LABS: CRISIL Reaffirms B Rating on INR3.5cr Cash Loan
GIRIN DEKA: CRISIL Keeps C Debt Rating in Not Cooperating

GREESHMAM RESORTS: CRISIL Reaffirms B Rating on INR18.5cr Loan
HARDEO INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
MARUT NANDAN: CRISIL Lowers Rating on INR10cr Cash Loan to B
MF MOTORS: CRISIL Lowers Rating on INR6.1cr Cash Loan to B
MR MILLENIUM: CRISIL Lowers Rating on INR5cr Cash Loan to B

MULPURI FISHERIES: CRISIL Keeps B Debt Ratings in Not Cooperating
PATEL PHOSCHEM: CARE Keeps D Debt Ratings in Not Cooperating
REVA ENTERPRISE: CRISIL Lowers Rating on INR9.5cr Loans to D
REX PIPES: CRISIL Withdraws B+ Rating on INR4cr Loans
SAINIK MINING: CRISIL Lowers Rating on INR127cr Cash Loan to B

SARA SAE: CRISIL Raises Rating on INR13.09cr Cash Loan to B
SHIW PRASAD: CARE Lowers Rating on INR7.50cr LT Loan to B
SYMTRONICS AUTOMATION: CRISIL Reaffirms B+ INR2.5cr Loan Rating
TAPTI AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
TRINETRA POULTRIES: CRISIL Moves INR0.04cr Loan Rating to B

UNIVERSAL QUARTZ: CRISIL Assigns B+ Rating to INR38cr LT Loan
VANTAGE SPINNERS: CARE Keeps D Debt Rating in Not Cooperating
VARSHIL PACKAGING: CRISIL Assigns B+ Rating to INR24cr Loans
VODAFONE IDEA: Birla and Vodafone Fight to Save Joint Venture


P H I L I P P I N E S

PHILIPPINE AIRLINES: Ch.11 Filing Cues Phil. Insolvency Law Review
PHILIPPINE AIRLINES: Filing Won't Affect Passengers, Employees
PHILIPPINE AIRLINES: Lucio Tan Promises Full Support


S I N G A P O R E

ATZ INTERNATIONAL: Creditors' Proofs of Debt Due on Oct. 13
NANO PRESS: Court to Hear Wind-Up Petition on Sept. 24
VIRTUAL OVERSEAS: Court to Hear Wind-Up Petition on Sept. 17


S R I   L A N K A

SRI LANKA: Faces Severe Foreign Exchange Crisis, Minister Says

                           - - - - -


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A U S T R A L I A
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CUBEX AUSTRALIA: Second Creditors' Meeting Set for Sept. 16
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Cubex Australia
Pty Limited has been set for Sept. 16, 2021, at 11:00 a.m. via
teleconference only.

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. 15, 2021, at 5:00 p.m.

Sule Arnautovic and John Vouris of Hall Chadwick were appointed as
administrators of Cubex Australia on Aug. 12, 2021.


GOLLANS LOGISTICS: Second Creditors' Meeting Set for Sept. 16
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Gollans
Logistics Pty Ltd, trading as B E McDonald Transport and Gollans
Removals, has been set for Sept. 16, 2021, at 10:00 a.m. via
virtual meeting technology.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 15, 2021, at 4:00 p.m.

Simon Thorn of PKF was appointed as administrator of Gollans
Logistics on Aug. 12, 2021.


HAIR-RASS ME: Second Creditors' Meeting Set for Sept. 16
--------------------------------------------------------
A second meeting of creditors in the proceedings of Hair-rass Me
Pty Ltd has been set for Sept. 16, 2021, at 11:00 a.m. via
teleconference facility.

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. 15, 2021, at 4:30 p.m.

Brendan Nixon of SM Solvency Accountants was appointed as
administrator of Hair-rass Me on Aug. 12, 2021.


MAJUN CONSTRUCTION: Second Creditors' Meeting Set for Sept. 16
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Majun
Construction Pty Ltd, formerly Trading as "Kennel Store", has been
set for Sept. 16, 2021, at 10:00 a.m. via virtual meeting
technology.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Sept. 15, 2021, at 5:00 p.m.

Mathieu Tribut of GTS Advisory was appointed as administrator of
Majun Construction on Aug. 12, 2021.


NICKEL MINES: Fitch Assigns B+ Rating on Proposed USD Unsec. Notes
------------------------------------------------------------------
Fitch Ratings has assigned a rating of 'B+' with a Recovery Rating
of 'RR4' to Nickel Mines Limited's (NIC, B+/Stable) proposed US
dollar senior unsecured notes. The proposed notes will be issued by
the company and have the same terms and conditions as the USD175
million 2024 notes issued earlier. They are rated at the same level
as the Issuer Default Rating as they constitute unconditional,
unsecured and unsubordinated obligations of NIC.

NIC's rating reflects its solid financial profile, with a strong
EBITDA margin of above 35% and positive free cash flows. Its
financial strength is weighed down by its asset concentration, with
two rotary kiln electric furnaces (RKEF) in PT Indonesia Morowali
Industrial Park (IMIP). However, Fitch expects NIC's asset
diversification to improve with its investment in PT Angel Nickel
Industry (ANI), another RKEF facility at PT Indonesia Weda Bay
Industrial Park.

KEY RATING DRIVERS

Stable Production: NIC's credit profile is supported by its robust
RKEF operations at its two Indonesian subsidiaries, PT Hengjaya
Nickel Industry (HNI) and PT Ranger Nickel Industry (RNI). Nickel
pig iron (NPI) production at these facilities remained stable at
above 10,000 tonnes per quarter since production began in January
2019 to date. Fitch expects its RKEF operations to account for more
than 95% of NIC's EBITDA in 2021, and more than 80% in 2022 after
ANI starts operating.

Low-Cost Position: NIC's solid cash cost position at its NPI
facilities will help the company to weather the impact of commodity
price fluctuations on its selling prices and input costs. The
purchase of nickel ore accounts for around 30%-40% of its cost and
thermal coal purchases for electricity make up 25%-30%. NIC's
EBITDA margin remained solid in 1H21 at 36% (2020: 37%) as the rise
in thermal coal prices was compensated by higher NPI prices.

HNI and RNI are strategically located in IMIP, the world's largest
integrated stainless-steel production facility. Indonesia is the
largest nickel producer globally and the Morowali regency has some
of the largest nickel ore deposits in the country. A ban on raw ore
exports and close proximity to ore supply give NIC the advantages
of cheaper raw material prices and lower logistic costs.

Production Conversion Neutral: NIC's credit profile will remain
intact despite its planned modification of two out of its four
RKEFs to nickel matte production. NIC signed a memorandum of
understanding with Shanghai Decent in May 2021 to deliver nickel
matte for the electric-vehicle battery market. Fitch expects the
move to have minimal disruption with modification costs of around
USD1 million per line. Nickel matte has higher correlation with
London Metal Exchange nickel prices with comparable cash costs and
production units to NIC's current NPI operations.

Asset Diversification: ANI's production will alleviate NIC's asset
concentration risk at IMIP due to its location at another
industrial park. Management aims to start production at ANI in late
2022, which will add 36,000 tonnes per annum (tpa) of name-plate
capacity to NIC. NIC will acquire 80% of ANI from Shanghai Decent
before end-2021. NIC has purchased 50% so far and Shanghai Decent
will be responsible for the completion of ANI project. Fitch
believes the risks of cost and time overruns from ANI's asset
construction and production commencement will be alleviated by
Shanghai Decent's record of similar project completion and ramp-up
at IMIP.

Positive Free Cash Flows: Fitch estimates NIC's free cash flow will
remain positive due to its solid cost position, assuming there are
no major investments other than ANI and a significant increase in
shareholder returns. NIC's EBITDA margin will remain solid above
35% in 2021 and 2022 under Fitch's assumptions of stable cash cost
per tonne. Positive free cash flow will be supported by minimal
capex from its young RKEF lines. However, a material increase in
dividends can reduce free cash flows and erode its current strong
cash buffer.

Solid Credit Metrics: NIC's FFO leverage will remain strong below
2.0x and its FFO interest coverage will stay solid above 5.0x in
2021-2022. NIC's leverage profile will not be materially altered by
any delay in the start of ANI's operations, as the target total
debt for acquisition of USD300 million is manageable relative to
the company's annual EBITDA of around USD200 million from its
current RKEFs. Fitch also expects the free cash flow at HNI and RNI
to provide an additional cash cushion. Deleveraging from 2023 will
be supported by the start of production at ANI.

DERIVATION SUMMARY

Fitch believes that NIC has a better credit profile than Guangyang
Antai Holdings Limited (GYAT, B/Stable). GYAT's larger operational
scale and revenue generation, as the third-largest stainless-steel
producer in China, are offset by NIC's solid cash cost position and
credit metrics. GYAT's business profile and margin are weighed down
by its increasing exposure towards the lower-margin trading
business. NIC's cash flow generation is significantly better with
EBITDA margin of above 35%, supported by its strong cash cost
position. In comparison, GYAT's EBITDA margin is narrower at less
than 5%. Fitch expects NIC's FFO leverage to remain conservative at
less than 2.0x, below GYAT's more than 2.0x.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Stable medium-term production at HNI and RNI at a level
    similar to that in 2020. Production at ANI will commence in
    late 2022;

-- Stable EBITDA margin of above 35% in 2021-2022;

-- Minimal capex at subsidiaries as major investment projects
    were recently completed.

Going-Concern (GC) Approach

The GC EBITDA estimate reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the
enterprise valuation.

Our GC EBITDA estimate of USD170 million reflects the mid-cycle
nickel price and stable RKEF operations at HNI and RNI.

An enterprise value multiple of 5x EBITDA is applied to the GC
EBITDA to calculate a post-reorganisation enterprise value. Fitch
uses a multiple of 5x to estimate a value for NIC because of its
asset concentration in Indonesia and its smaller operational scale
compared with peers, despite its stronger growth prospects
following the ANI acquisition.

The GC enterprise value corresponds to a 'RR1' Recovery Rating for
the senior unsecured notes after adjusting for administrative
claims. Nevertheless, Fitch has rated the senior unsecured bonds
'B+' and 'RR4' because NIC's operating assets are located in
Indonesia. Under Fitch's Country-Specific Treatment of Recovery
Ratings Criteria, Indonesia is classified under the Group D of
countries in terms of creditor friendliness and Recovery Ratings
are subject to a cap at 'RR4'.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Successful ramp-up of ANI in line with Fitch's expectation,
    while maintaining FFO leverage below 2.0x.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Sustained increase in FFO leverage above 3.0x;

-- Material disruption in its smelter operations at HNI and RNI.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: NIC had USD190 million in cash, of which
USD133 million was held at the NIC level at end-June 2021. NIC has
no debt amortisation requirement and its closest debt maturity is
in 2024 with the maturity of its USD175 million senior unsecured
notes.

ISSUER PROFILE

NIC is an NPI producer that operates in Indonesia's Morowali
Industrial Park. It operates four RKEF processing facilities with
total name-plate capacity of 30,000 tpa.

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.




=========
C H I N A
=========

CHINA EVERGRANDE: Fitch Lowers Foreign Currency IDR to 'CC'
-----------------------------------------------------------
Fitch Ratings has downgraded to 'CC' from 'CCC+', the Long-Term
Foreign-Currency Issuer Default Ratings (IDR) of Chinese
homebuilder, China Evergrande Group, and its subsidiaries, Hengda
Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has
also downgraded the senior unsecured ratings of Evergrande and
Tianji to 'C', from 'CCC', with a Recovery Rating of 'RR6', as well
as the Tianji-guaranteed senior unsecured notes issued by Scenery
Journey Limited to 'C', from 'CCC', with a Recovery Rating of
'RR6'.

The downgrade reflects Fitch's view that a default of some kind
appears probable. Fitch believes credit risk is high given tight
liquidity, declining contracted sales, pressure to address delayed
payments to suppliers and contractors, and limited progress on
asset disposals.

KEY RATING DRIVERS

High Default Risk: Evergrande acknowledged in its 1H21 results that
if it fails to mitigate the liquidity issues that it is currently
facing - for instance, by vigorously promoting sales, extending
loans, disposing of asset or introducing new investors - it may
default on its borrowings. Leverage, measured by net debt/adjusted
inventory, has fallen to 27%, from 35% in 2020, but this does not
alleviate the company's tight liquidity situation.

Declining Contracted Sales: Fitch believes the recent drop off in
contracted sales has weakened Evergrande's ability to repay
short-term debt, since contracted sales proceeds are its key source
of liquidity. Reported contracted sales plunged by 26% yoy in
August 2021, after dropping by 13% in July 2021 and 6% in June
2021, even though Evergrande has been selling properties at a
discount to generate cash. The average selling price was down by
26% yoy in August 2021, or by 11% yoy through to 8M21, while the
gross profit margin narrowed to 13% in 1H21, from 25% in 2020.

Suspension of Construction Work: Evergrande's delayed payments to
suppliers and contractors have resulted in the suspension of
construction work at certain projects. The company, with the
coordination of the Guangdong government, is negotiating with
suppliers and contractors for the resumption of construction work.
Fitch believea Evergrande is under pressure to resolve its payment
delays quickly, since maintaining stable operations at the project
level is one of the government's key priorities, which will further
pressure its liquidity.

Limited Progress on Asset Disposals: There is limited evidence of
progress on the sale of Evergrande's property-management business
and new-energy vehicle business. Fitch believes these asset
disposals are subject to significant execution risk, increasing the
chance that the company will default on the interest payments due
on its US-dollar bonds; Fitch estimates that these amount to USD129
million in September and total USD850 million through to the end of
2021.

Negative News Flow Affects Confidence: News reports state that the
government is considering forming a creditor committee to resolve
Evergrande's liquidity situation and that the central government's
guidance is to resolve the situation through a market-oriented
approach. Fitch believes such negative news flow, including reports
that the company delayed payments on certain trust loans, could
weaken the confidence of stakeholders, including lenders, suppliers
and homebuyers, and damage Evergrande's liquidity in light of its
reliance on short-term debt, payables and contracted sales to
maintain liquidity.

Recovery Ratings Downgraded: The Recovery Ratings on the senior
unsecured debt of Evergrande and Tianji have been downgraded to
'RR6', from 'RR5', to reflect poor recovery prospects. The was
driven by a more conservative advance rate for Evergrande's net
inventory, as a steep discount may be needed to sell its large land
bank in a distressed scenario.

DERIVATION SUMMARY

Evergrande's ratings reflect its tight liquidity and high risk of
default.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Contracted sales growth of 4% in 2021 and 1% in 2022 (2020:
    20%);

-- EBITDA margin to drop to 19% in 2021-2022 (2020: 22%);

-- Land acquisition spending at 12% of sales proceeds in 2021 and
    19% in 2022 (2020: 19%);

-- Annual capex of CNY17 billion-18 billion, mainly for electric
    vehicle production facilities and equipment.

Recovery Rating Assumptions

Evergrande

The recovery analysis assumes that Evergrande would be liquidated
in a bankruptcy because it is an asset-trading company. Fitch
assumes both Hengda and Evergrande would go into bankruptcy if
Evergrande defaults.

Fitch assumes a 10% administrative claim.

Liquidation Approach

The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during a bankruptcy or insolvency proceeding and
distributed to creditors.

-- 60% advance rate applied to net inventory to reflect the
    potentially steep discount that may be needed to sell the
    large land bank in a distressed scenario;

-- 70% advance rate applied to trade receivables, which mainly
    stems from the sale of properties; 87% of trade receivables
    are within 90 days;

-- 60% advance rate applied to property, plant and equipment,
    which mainly comprise buildings and construction in progress;

-- 10% advance rate applied to investment properties based on a
    conservative 6.5% cap rate on annualised rental income;

-- 100% advance rate applied to available cash, but Fitch has
    added trade payables to the liability waterfall;

-- Fitch excluded restricted cash, as there is no breakdown on
    how much can be used for debt repayment. The amount is
    immaterial.

Fitch excluded investments in joint ventures of CNY88 billion as
they may not be easily liquidated; these include stakes in
non-property businesses, including CNY30 billion in Evergrande's
36% stake in Shengjing Bank Co.,Ltd. and CNY18 billion in its 50%
stake in Evergrande Life Assurance Co., Ltd, based on end-2020
breakdown. Shengjing Bank is listed on the Hong Kong Exchange, but
could still be difficult to liquidate given Evergrande's large
position and thin trading volume. The company recently sold a 1.9%
stake in Shengjing Bank for CNY1 billion, representing around a 35%
discount to book value.

Fitch estimates Evergrande's liquidation value by de-consolidating
Hengda, China Evergrande New Energy Vehicle Group Limited
(Evergrande Auto) and Evergrande Property Services Group Limited.
Fitch estimates the residual value of Hengda and Evergrande Auto by
assuming the subsidiaries will be liquidated, since they are
asset-trading businesses; Evergrande Auto's electronic-vehicle
business remains loss making. Fitch expects the residual value of
Hengda and Evergrande Auto to be zero after paying off debt. The
market value of Evergrande's stake in Evergrande Auto is around
CNY30 billion, but there is little evidence of progress after the
company announced its intension to sell. Fitch estimates the
residual value of Evergrande's stake in Evergrande Property
Services based on a going-concern approach. Fitch applies a 5x
enterprise value/EBITDA multiple and its estimated recovery value
is at a 30% discount to the market value on 2 September 2021.

The allocation of value in the liability waterfall results in
recovery corresponding to 'RR6' for the senior unsecured notes.

Tianji

Evergrande did not provide Tianji's 1H21 financial statements, so
Fitch has based its recovery analysis on end-2020 financials.
However, Fitch has updated the advance rates to be in line with
that of Evergrande.

The recovery analysis assumes that Tianji would be liquidated in a
bankruptcy as it is an asset-trading company.

Fitch assumes a 10% administrative claim.

Liquidation Approach

The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in a sale or liquidation
process conducted during a bankruptcy or insolvency proceeding and
distributed to creditors.

-- 60% advance rate applied to net inventory;

-- 70% advance rate applied to trade receivables, mainly stemming
    from the sales of properties;

-- 60% advance rate applied to property, plant and equipment;

-- 10% advance rate applied to investment properties based on a
    conservative 6.5% cap rate on annualised rental income;

-- 100% advance rate applied to available cash, which amounts to
    less than the value of trade payables;

-- The allocation of value in the liability waterfall results in
    recovery corresponding to 'RR6' for the senior unsecured
    notes.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Restored capital-market access and sufficiently addressed
    liquidity needs.

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- Evidence of a default or default-like process.

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.

ISSUER PROFILE

Evergrande is a top-three Chinese property developer by contracted
sales. Headquartered in Shenzhen, Evergrande has a strong national
presence, with 798 projects in 234 cities covering all of China's
31 provinces and municipalities. The company also has businesses in
electric vehicles, finance, healthcare and cultural tourism.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's calculation of CNY1.6 trillion in adjusted inventory at
end-2020 includes property development inventory, investment
property at cost, hotel properties and joint-venture investments.
Customer deposits, amounts due to non-controlling interests and
amounts due to joint ventures and associates are deducted from the
summation of items mentioned previously. Guarantees to third
parties are calculated as debt.

ESG CONSIDERATIONS

Evergrande has an ESG Relevance Score of '4' for Governance
Structure to reflect its aggressive financial policies, including
its investments in non-core businesses, which has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other foactors.

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.


CHINA EVERGRANDE: Moody's Lowers CFR to Ca & Unsecured Notes to C
-----------------------------------------------------------------
Moody's Investors Service has downgraded the Corporate Family
Rating and senior unsecured ratings of China Evergrande Group, the
CFRs of Hengda Real Estate Group Company Limited and Tianji Holding
Limited, and the backed senior unsecured ratings of Scenery Journey
Limited.

The affected ratings are as follows:

Evergrande's CFR has been downgraded to Ca from Caa1, and its
senior unsecured ratings have been downgraded to C from Caa2;

Hengda's CFR has been downgraded to Ca from Caa1;

Tianji's CFR has been downgraded to C from Caa2; and

Scenery Journey's backed senior unsecured ratings have been
downgraded to C from Caa2.

The backed senior unsecured rating on the notes issued by Scenery
Journey are guaranteed by Tianji. The notes are also supported by a
keepwell deed and a deed of equity interest purchase undertaking
between Hengda, Tianji, Scenery Journey and the bond trustee.

The outlook on the ratings remains negative.

"The downgrades reflect Evergrande's heightened liquidity and
default risks given its sizable amount of maturing debt over the
next 6-12 months," says Cedric Lai, a Moody's Vice President and
Senior Analyst.

"The downgrades also reflect the weak recovery prospects of
Evergrande's creditors, if there is a default," adds Lai.

The negative outlook reflects Moody's view that the recovery
prospects of Evergrande's creditors could weaken further if the
company defaults on its maturing debt.

RATINGS RATIONALE

Evergrande's Ca CFR reflects the company's high liquidity risks
over the next 6-12 months, limited financial flexibility and weak
recovery prospects for its creditors.

Evergrande's unrestricted cash on hand of RMB86.8 billion as of end
June 2021 is not sufficient to cover its short-term debt and
maturing long-term debt over the next 12 months. In addition, the
company will unlikely be able to raise sufficient new funds for
refinancing given its deteriorated funding access to onshore and
offshore markets.

Evergrande will have to rely on asset sales or investments from
potential investors to generate funds for debt servicing, but these
fundraising activities entail high uncertainties.

Evergrande's C senior unsecured rating is one notch below its CFR,
reflecting the lower expected recovery rate for its senior
unsecured creditors due to structural subordination. This risk
reflects the fact that most of the claims are at the operating
subsidiaries and have priority over claims at the holding company
in a bankruptcy scenario. In addition, the holding company lacks
significant mitigating factors for structural subordination.

As a core subsidiary and majority owned by Evergrande, Hengda's
credit profile is closely linked with that of Evergrande, in
Moody's view.

Tianji's C CFR and the C senior unsecured rating on the notes
guaranteed by Tianji reflect its weak standalone credit profile,
high liquidity risk over the next 6-12 months and low recovery
value.

In terms of environmental, social and governance (ESG)
considerations, Moody's has considered Evergrande's weak financial
management, given that its financial policy favors the use of debt
leverage that maximizes returns to shareholders.

The rating also considered Evergrande's concentrated ownership by
its key shareholders, Hui Ka Yan and his wife, who held a 77% stake
in the company as of the end of 2020.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade is unlikely given the negative outlook.

However, positive rating momentum could develop if Evergrande
repays its maturing debt and improves its liquidity position
materially.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

China Evergrande Group (Evergrande) is a developer in China and was
founded in 1996 in Guangzhou. The company has rapidly expanded its
business across China over the past few years. As of June 2021, its
land bank totaled 214 million square meters in gross floor area.

Hengda Real Estate Group Company Limited (Hengda) is the property
arm and flagship subsidiary of Evergrande. The company was also
founded in 1996 in Guangzhou, and has rapidly expanded its business
across the country over the past few years.

Evergrande is Hengda's largest shareholder with a 60% share as of
December 2020.

Incorporated in Hong Kong in 2009, Tianji Holding Limited is an
offshore holding company that houses some of Hengda's property
projects in China and overseas, including Hengda's Hong Kong
headquarters. Hengda owns 100% of Tianji, which owns 100% of
Scenery Journey Limited.


CHINA EVERGRANDE: To Pay Supplier in Unbuilt Properties
-------------------------------------------------------
Bloomberg News reports that suppliers of China Evergrande Group are
becoming casualties of its deepening liquidity woes.

Skshu Paint, one of the developer's paint contractors, said it has
signed agreements to receive three unfinished projects from
Evergrande units to offset missed payments, Bloomberg says citing
an exchange filing.  The properties are scheduled to be completed
in 2022, 2023 and 2024.

As its cash buffer wanes, Evergrande has been offering real estate
projects to offset payables to suppliers and contractors, Bloomberg
relates. Known in China as commercial bills, these short-term IOUs
have become an important financing means for Evergrande, even
though they aren't technically classified as debt.

In August, Evergrande included such properties in monthly contract
sales for the first time, the report notes.

Evergrande's trade and other payables climbed 15 per cent from
December to a record CNY951 billion at the end of June, accounting
for almost half of its total liabilities, Bloomberg discloses. That
stands in sharp contrast with its debt, which shrank to a five-year
low of CNY572 billion.

Evergrande said in its first-half earnings that some property
development payables were overdue, leading to the suspension of
work on some projects. The company is negotiating with suppliers
and contractors to resume work.

Skshu said that Evergrande has paid CNY235 million worth of overdue
commercial bills, of which 94 per cent were in the form of
unfinished properties, according to the filing cited by Bloomberg.
Only CNY15 million were in bank transfers.

The painting firm has started to cash out some of these properties
by selling them, it said. The properties are located in central
Hubei province and the southern city of Shenzhen, the report
notes.

                       About China Evergrande

China Evergrande Group is an integrated residential property
developer. The Company, through its subsidiaries, operates in
property development, investment, management, finance, internet,
health, culture, and tourism markets.

As reported in the Troubled Company Reporter-Asia Pacific, S&P
Global Ratings, on Aug. 5, 2021, downgraded China Evergrande Group
and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji
Holding Ltd. to 'CCC' from 'B-'. S&P also lowered its long-term
issue rating on the U.S. dollar notes issued by Evergrande and
guaranteed by Tianji to 'CCC-' from 'CCC+'. The negative outlook
reflects Evergrande's increasing strained liquidity and nonpayment
risk. It also reflects S&P's view that its asset disposal plan,
though potentially substantial, lacks visibility or certainty.


SUNING.COM: Founder Faces Resistance in Bid to Delay Bond Payment
-----------------------------------------------------------------
South China Morning Post reports that Suning.com billionaire
founder Zhang Jindong is trying to buy more time to repay a US$600
million bond due next week, one of his largest chunks of debt,
after losing control of his flagship company in July. Some
creditors are said to be resisting.

A group of bondholders including Bank of Shanghai and Guangdong
Huaxing Bank have garnered at least 25 per cent of the securities
to demand an immediate repayment, according to people familiar with
the plan, speaking to South China Morning Post on condition of
anonymity because the information is private.

Zhang's family-controlled vehicle Suning Appliance Group, the sole
guarantor of a US$600 million of bond, is asking creditors to
extend the debt maturity to reorganise its finances. The firm is
offering a 1 per cent fee sweetener, or US$10 for every US$1,000 of
face amount, for their consent, the Post says.

Suning Appliance kicked off the solicitation process on August 27,
seeking commitment from bondholders by September 10 and a meeting
on September 20 to vote on two proposals, according to a Hong Kong
stock exchange filing, the Post relays. Zhang is seeking waivers to
certain events of default for 18 months, and also extend the bond
maturity by three years.

According to the Post, Zhang faces an uphill battle to win their
backing, as the proposals require no less than 90 per cent majority
vote to pass.

The creditors are still discussing plans to instruct BNY Mellon,
the bond trustee, to issue the demand on Zhang, one source told the
Post. If demanded, the bonds are payable at 101 per cent of its
face amount plus unpaid interest within 30 days. A compromise may
still be worked out as negotiations continue this week, another
source added.

The Post relates that the debt restructuring attempt offers a
glimpse into the financial workings inside one of China‘s largest
appliance retailers and e-commerce operators. Chinese companies,
with more than US$100 billion of offshore bonds outstanding
according to Bloomberg data, face another record year of defaults
amid the pandemic as liquidity crunches at Peking Founder, China
Huarong and China Evergrande unsettled creditors.

Granda Century, an offshore entity owned by Suning Appliance,
initially sold US$300 million of the bonds with 7.5 per cent annual
coupon in September 2018, according to the Post. It sold an
additional US$235 million in February 2019 and US$65 million in May
that year. They mature on September 11.

The bonds have been suspended from trading. They last traded at
about 30 cents on the dollar, according to Bloomberg data, versus
about 50 cents in June and July.

Zhang's business empire unravelled in June after a Beijing court
granted an order to freeze his interest in 540.2 million shares in
Shenzhen-listed Suning.com, the retailer he founded in 1990, the
Post notes. In July, the Jiangsu provincial government led a US$1.4
billion plan with Alibaba Group Holding, Xiaomi and TCL group to
rescue Suning.com, diluting Zhang’s controlling stake.

The Post relates that Jason Kang, a China-focused litigator at
Kobre & Kim, said how Jiangsu provincial authority will handle
Suning's debt issues, and which creditors would be given priority
in repayment, will be closely watched by international investors.

"If it shows clear favour of state-owned or onshore creditors and
discriminates against private or offshore creditors, it could
significantly increase the financing costs in overseas markets for
other private companies from the province," the Post quotes Kang as
saying.

The Post says the Jiangsu rescue triggered a change-of-control
clause, a prescribed event of default in covenants as some of
Zhang’s borrowings are conditional upon him or his vehicle
retaining control of Suning.com. It stoked a scramble to seize his
collateral.

Other creditors have wasted no time to act, the report says. China
Construction Bank led a group of lenders to recover US$165 million
of loans and US$85 million from a defaulted bond, both guaranteed
by Suning Appliance Group, according to an August 2 lawsuit filed
in Hong Kong.

Elsewhere, applications have been filed in mainland and Hong Kong
courts to freeze the collateral pledged for two other borrowings,
namely a CNY3 billion (US$464 million) trust-loan agreement with
Huaneng Guicheng Trust Corp and US$100 million of notes purchased
by a China Shandong Hi-Speed unit, the Post reports.

Zhang's financial troubles may be traced further back to an
ill-fated investment in an onshore property unit of China
Evergrande Group, the nation's most-indebted developer. His vehicle
Suning Holdings invested CNY20 billion (US$3.1 billion) in Hengda
Real Estate in 2017, and opted not to recall his money when the
deal collapsed.

His other pursuits outside the retailing business - namely owning
football clubs at home and Inter Milan of Italy - may have added to
his financial burden, the Post discloses. Zhang paid US$306 million
for 70 per cent of the Italian football club, according to an AFP
report. The club won the Serie A league title in the 2020-21
season, its first in 11 years.

Suning Appliance had CNY4.77 billion of overdue debt as of July 2,
according to data maintained by the Credit Reference Centre of the
People’s Bank of China.

"The issuer and the guarantor are facing a liquidity issue and
their existing internal resources would not be sufficient to repay
the bonds as they fall due," Suning Appliance said in the notice to
bondholders. It is in active talks with its creditors to deal with
debt exposures, it added in the exchange filing, the Post adds.

Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.


YANGO GROUP: Fitch Affirms 'B+' Foreign Currency IDR
----------------------------------------------------
Fitch has affirmed China-based property developer Yango Group Co.,
Ltd.'s Long-Term Foreign-Currency Issuer Default Rating (IDR) at
'B+'. The Outlook is Stable. Fitch has also affirmed Yango's senior
unsecured rating at 'B+' with a Recovery Rating of 'RR4'.

The IDR affirmation reflects Yango's continued deleveraging while
maintaining a stable scale. Fitch believes the company has the
incentive and ability to continue to reduce leverage towards 50%,
supported by a quality land bank that is sufficient for development
over the next two years. However, Yango's leverage is still higher
than most 'B+' rated peers' 40%-50%, and 'BB-' peers' 35%-45%. This
will constrain Yango's rating at the current level.

KEY RATING DRIVERS

Leverage Remains High; Risk Lower: Fitch estimates that Yango will
deleverage towards 50% over the next two years as the company keeps
land acquisition below 40% of sales receipts, in line with
regulatory guidance as one of the sample companies for the "Three
Red Lines" policy. This is an improvement from the peak in 2017,
although leverage will remain high against most 'B+' and 'BB-'
rated peers. Fitch thinks Yango's milder growth appetite will lower
risks even as industry prospects and the credit environment become
more challenging.

Commitment to Deleverage: Yango's management has fulfilled its
commitment to reduce leverage since 2018. Its leverage - measured
by net debt/adjusted inventory, including guarantees - improved to
54% in 1H21, from 56% in 2020, as Yango achieved satisfactory sales
collection, reduced land acquisition and increased in
non-controlling interests (NCI) capital contribution. Yango
achieved an 80%-85% cash collection rate in 2020-1H21 and spent
only 23% of sales receipts, on an attributable basis, for land
acquisition in 1H21. Yango's amount due to NCIs more than tripled
in 1H21 to CNY30 billion from 2019.

Margin Declines: Fitch expects the EBITDA margin to remain
relatively low until 2022 as Yango recognises lower-margin projects
acquired around 2019. Fitch thinks the drop is generally in line
with the market trend but further deterioration may exert negative
rating pressure. Yango's EBITDA margin, after adding back
capitalised interest in cost of goods sold, dropped to 18% in 1H21
from 24% in 2020, due mainly to higher land costs and higher
selling and administrative expenses.

The average land-bank cost was low at CNY4,119 /square metre (sqm)
at end-1H21, equivalent to 26% of its average selling price (ASP)
of CNY16,142/sqm.

Weak Parent-Subsidiary Linkages: Fitch assesses the linkage between
Yango and parent Fujian Yango Group Co., Ltd. (FJYG) as 'Weak',
reflecting 'Weak' legal ties and 'Moderate' operational ties, under
Fitch's "Path A - Strong Subsidiary, Weak Parent" in Fitch's Parent
and Subsidiary Linkage Rating Criteria. FJYG held 34% of Yango at
end-1H21 and controlled 44% of the voting rights.

FJYG has moderate management control as it appoints four of Yango's
twelve-member board, which includes two members from the second
largest shareholder Taikang Insurance Group Inc. (A-/Stable). Yango
and FJYG sometimes collaborate on education-related projects, which
are immaterial relative to Yango's size. Most of FJYG's educational
counterparties are governments and third-party developers to which
FJYG pays rent for the schools.

Parent's Distress May Affect Yango: Financial distress at FJYG may
affect Yango's access to funding despite the weak parent-subsidiary
ties, as the two sometimes share credit facilities from banks.
Hence, Yango's rating is constrained to two notches above FJYG's
consolidated profile, which Fitch assesses as 'b-' due to higher
consolidated leverage and the parent's tight liquidity. Yango's
leverage would rise to 68%, from 54% at end-1H21, if FJYG's net
debt, excluding those of listed companies, was added to Yango's net
debt.

Business Scale Supports Ratings: Yango's business scale is larger
than that of most 'BB' category issuers and is a key business
profile strength. Yango's 2020 attributable sales increased by 3%
to CNY139 billion. Total sales in January-July rose by 2% yoy to
CNY114 billion, or 52% of the annual target of CNY220 billion,
which was about flat from 2020's CNY218 billion sales. Yango aims
to maintain a scale at above CNY200 billion in the near term.

Quality, Diversified Land Bank: Yango reported 44 million sqm in
total land bank at end-1H21. Fitch estimates that Yango owns around
40 million sqm of the land, excluding the portion for entrusted
construction and entrusted sales, to support property sales for
more than two years. The land bank is nationwide, with 26% of
saleable resources in Greater Fujian and the Yangtze River Delta as
of end-1H21, 40% in strategic cities in central and western China,
and 29% in the Pearl River Delta region.

DERIVATION SUMMARY

Yango's diversified nationwide portfolio and large scale are
comparable with those of 'BB' rated Chinese homebuilders. Yango's
CNY139 billion attributable contracted sales in 2020 are comparable
with that of CIFI Holdings (Group) Co. Ltd. (BB/Stable) and
stronger than those of 'BB-' and 'B' rated peers, which usually
have contracted sales of below CNY60 billion. More than 70% of
Yango's land bank by saleable resources is located in Tier 1 and
Tier 2 cities, which Fitch believes have resilient demand to
cushion against the impact of a slowdown in the homebuilding
sector, compared with lower-tier cities.

However, Yango's higher leverage constrains its rating at 'B+'. The
company has taken measures to reduce leverage consistently over the
past two years, but it remains higher than that of 'B+' rated
peers, whose leverage is usually between 40% and 50%.

Yango's rating is also capped at two notches above the consolidated
profile of Fujian Yango.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Total contracted sales at CNY220 billion at 2021-2022E;

-- Attributable contracted sales and consolidated sales 64% and
    50%, respectively, of total sales;

-- Land premium accounting for 30% of sales receipts in 2021 and
    40% in 2022;

-- Construction expenditure accounting for 25% of sales receipts
    in 2021-2022;

-- Cash collection rate at 80% (2020: 80%);

-- Total debt to decrease by CNY10 billion each year in 2021 and
    2022;

-- Dividend payout increased to 30% (2020: 20%).

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Yango would be liquidated in
bankruptcy as it is an asset trading company.

-- Fitch has assumed a 10% administrative claim;

-- The liquidation estimate reflects Fitch's view of the value of
    balance sheet assets that can be realised in sale or
    liquidation processes conducted during a bankruptcy or
    insolvency proceeding and distributed to creditors;

-- The 60% inventory advance rate supported by a quality asset
    base which can generate an EBITDA margin of below 20%;

-- Advance rate of 60% applied to property, plant and equipment;

-- Advance rate of 35% applied to investment properties which
    generates a low rental yield of 2%;

-- Advance rate of 100% applied to unrestricted cash, while
    including 100% trade payables the debt waterfall;

-- Advance rate of 100% applied to Fitch-defined restricted cash,
    which mainly consisted of guarantees for company's bank
    borrowing, home buyers; mortgage loans, construction work and
    presale cash in designated accounts;

-- The allocation of value in the liability waterfall results in
    recovery corresponding to 'RR3' for the senior unsecured
    debts. The recovery rate is capped at 'RR4' due to country
    specific treatment.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Net debt/net property assets sustained below 50%;

-- FJYG's consolidated leverage (excluding Longking) sustained
    below 60% and FJYG's liquidity measured by (available cash +
    wealth management products + current time deposits)/short-term
    debt below 1.0x;

-- Gross interest paid/implied cash collection sustained below
    10%.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Net debt/net property assets above 60% for a sustained period;

-- Gross interest paid/implied cash collection sustained above
    15%;

-- Deterioration of FJYG's consolidated profile, or significant
    deterioration of the parent's liquidity.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: Yango had unrestricted cash on hand
(excluding presale cash in regulatory accounts) of CNY32.6 billion
at end-1H21, sufficient to cover the CNY26 billion in short-term
debt.

Improvement in Debt Structure: Yango has optimised its debt
structure, with short-term debt dropping to 27% of total debt by
end-1H21, from around 40% at end-2017 and end-2018. The company is
also replacing non-bank financing with bank loans, with non-bank
financing decreasing to 22% of total debt by end-1H21, from 25% at
end-2019 and 53% at end-2018.

Fitch believes that the improvement in the debt structure reflects
better access to financing that gives the company greater financial
flexibility, as the funding environment for homebuilders remains
challenging. Yango's average funding cost was 7.5% in 1H21.

Parent's Liquidity Manageable: Fitch thinks FJYG's liquidity is
tight but manageable. FJYG's reported available cash/short-term
debt dropped to only 0.1x on a deconsolidated basis by end-1H21,
from 0.3x in 2019. However, adding FJYG's CNY7 billion
wealth-management products and time deposits, FJYG's cash would be
able to cover 0.6x of its short-term debt.

In addition, Fitch estimates that 50% of FJYG's CNY14 billion in
short-term debt is bank loans and loans secured against listed
companies' shares so they can be easily rolled over. FJYG also has
shares in listed companies, such as Industrial Bank Co., Ltd.
(BBB/Stable) and Jiangxi Bank Co., Ltd., with a market value of
over CNY10 billion, to provide a liquidity buffer, if necessary.

FJYG's access to funding is intact in the tight credit environment
as well. It refinanced most of its capital market maturities with
new issuances in 2021. FJYG has a CNY4.8 billion onshore bond
issuance quota outstanding, sufficient to cover CNY1.4 billion
onshore maturities until 2021 and CNY2.8 billion onshore maturities
in 2022. FJYG also aims to repay CNY1 billion offshore bond
maturities in 2021-2022 with cash flow from existing investments.

ISSUER PROFILE

Yango is a property developer mainly in Yangtze River Delta and
Fujian province in China. It is one of the top 20 property
developers by total contracted sales.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's calculation of CNY157 billion of adjusted inventory at
end-1H21 includes mainly CNY194 billion in inventory; CNY82 billion
in contract liabilities; CNY4 billion in buildings; CNY9.8 billion
in prepayments for land-use rights and acquisition prepayments;
CNY9.6 billion in investment properties; CNY51 billion in
investments in joint ventures (JVs) and associates; CNY22 billion
net due to JVs; CNY17 billion net due to NCIs; and CNY8.2 billion
in restricted cash. Fitch has adjusted the value of investment
properties based on the investment properties at cost.

Fitch treated CNY5.4 billion in pledged deposits for borrowings as
available cash but treated CNY6.4 billion in presale cash in
designated regulatory account as restricted cash.

Fitch added CNY1.5 billion in guarantees related to
off-balance-sheet asset-backed securities to total guarantees in
1H21.

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.


YUZHOU GROUP: Fitch Affirms B+ Rating on USD Senior Notes
---------------------------------------------------------
Fitch Ratings has affirmed China-based homebuilder Yuzhou Group
Holdings Company Limited's Long-Term Foreign-Currency Issuer
Default Rating (IDR) with a Stable Outlook. Fitch has also affirmed
the senior unsecured rating and the rating on Yuzhou's outstanding
US-dollar senior notes' at 'B+', with a Recovery Rating of 'RR4'.

Yuzhou's contracted sales and revenue scale is comparable with that
of 'B+' rated peers. The ratings are supported by low leverage, but
constrained by high joint venture (JV) exposure and short land bank
life.

KEY RATING DRIVERS

Stabilising Revenue: Yuzhou forecasts its revenue to reach CNY27
billion-30 billion in 2021, against normalised annual revenue of
CNY23 billion-24 billion in 2018-2019, and for its consolidated
contracted sales ratio to increase from its 35% level. Fitch
believes the higher revenue in 2021 is possible, given the
exceptionally high levels of inventory held at end-2020, but that
it may still be below that of 'BB' category peers. Fitch will
monitor the company's performance until Yuzhou publishes its
audited 2021 full year financial report.

Yuzhou reported revenue of CNY12 billion in 1H21, up from the
restated CNY2 billion for 1H20, with total contracted sales of
CNY53 billion. It posted audited revenue of CNY10 billion in 2020,
with CNY105 billion in contracted sales, following revenue of CNY23
billion in 2019. Yuzhou's low revenue recognition relative to total
contracted sales reflects its reliance on sales through
unconsolidated joint ventures and associates. This reliance appears
to have increased over the last two years, suggesting Yuzhou's
property development revenue will remain lower than its total
contracted sales.

Falling Profitability: Yuzhou's reported gross margin was 20% in
1H21, against 5% in 2020 and 26% in 2019. Meanwhile, the ratio of
its average selling price/average land acquisition cost had dropped
to 1.4x in 2020, from 2.5x in 2017, but management said this should
gradually improve. It also reported losses of CNY301 million from
JVs and associates in 1H21, against a profit of CNY230 million in
2020, after conducting a high proportion of projects through these
entities.

Short Land Bank Life: Fitch estimates that Yuzhou's unsold
attributable land bank will be sufficient for around 2.3 years of
development at end-2021. This will lead the company to replenish
land to sustain contracted sales growth, which is likely to
increase its land costs and leverage, especially if it buys more
parcels in tier-two cities, where competition among developers is
more intense. Yuzhou spent CNY4.2 billion to acquire four land
parcels in 1H21, with an attributable ratio of 58%. It has slowed
its land acquisitions to preserve liquidity and reduce leverage.

Rising but Manageable Leverage: Fitch expects Yuzhou's leverage to
exceed 45% by 2022, as the company plans to replenish land bank in
light of its short land bank life. Fitch estimates that leverage,
measured by net debt/adjusted inventory, including proportional
consolidation of JVs and associates, was 38% in 1H21, against
32%-38% in 2019-2020. However, this is below that of 'BB'
rating-category peers and does not constrain Yuzhou's ratings.

Adequate Liquidity: Yuzhou's offshore and onshore bond issuance in
the past few years has enabled it to manage its debt maturity
profile, with cash/short-term non-bank maturities of 2x at end-2020
and 1H21. The company issued a USD200 million bond maturing in June
2023 in late August 2021, despite China's volatile high-yield bond
market.

ESG - Group Structure: Yuzhou has an ESG Relevance Score of '4' for
Group Structure, as more than half of its contracted sales come
from unconsolidated JVs and associates. Project performance under
these entities is not fully captured in Yuzhou's financial
statements, as their assets and liabilities are not detailed in
Yuzhou's consolidated financial statements, which limits Yuzhou's
financial transparency.

The company's revenue and implied cash collection - the change in
customer deposits plus revenue booked during the year - is low
relative to reported total contracted sales, with the difference
widening in the past two to three years. This has a negative impact
on the credit profile, and is relevant to the ratings in
conjunction with other factors.

DERIVATION SUMMARY

Yuzhou's rating is constrained to the 'B' category by its
consolidated revenue, which is lower than that of most 'BB-' rated
peers. Fitch expects Yuzhou's revenue to reach CNY26 billion in
2021 is at the low end of its 'BB-' peer group and is comparable
with that of China SCE Group Holdings Limited (BB-/Stable), which
expects revenue of CNY40 billion in 2021, and KWG Group Holdings
Limited (BB-/Stable), which forecasts revenue of CNY39 billion.

Fitch estimates Yuzhou's leverage at 41% in 2021, together with
adequate liquidity, the company is placed at the higher end of the
'B' rating category, in line with peers like Zhongliang Holdings
Group Company Limited (B+/Positive), Radiance Group Co., Ltd.
(B+/Positive) and Zhenro Properties Group Limited (B+/Positive).
However, Yuzhou's revenue recognition is lower.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Total annual contracted sales of CNY108 billion-112 billion in
    2021-2023 (2020: CNY105 billion), with a consolidated ratio in
    the 35%-40% range;

-- Average selling price to rise by 5%-11% a year on average in
    2021-2023, from CNY16,756/square metre in 2020;

-- Land bank life to remain steady at around 2.0-2.3 years in
    2021-2022 (2020: 2.5 years);

-- Constant land cost in 2021-2023;

-- Selling, general and administrative expense at 2.8% of
    contracted sales in 2021-2023.

Recovery Assumptions for 1H21

Fitch uses a multiple assumption tool to derive a 4x EBITDA
multiple to estimate the going concern value for Yuzhou. Fitch
would apply a liquidation value approach if a liquidation of the
assets results in a higher return to creditors.

-- 10% administrative claim;

-- 70% advance rate to accounts receivable;

-- 30% advance rate to investment properties, as the annualized
    rental yield was only 1.3% in 1H21;

-- 70% standard advance rate to net property, plant and
    equipment, as the EBITDA margin, excluding capitalized
    interest, was above 20% in 1H21;

-- 100% advance rate to restricted cash and non-pledge deposits.
    Restricted cash is designated to cover the operating costs and
    loan repayments of specific projects and cannot be used for
    non-operational activities, such as investments or profit
    sharing. Non-pledged time deposit are for the repayment of
    certain working capital loans.;

-- Excess cash, after deducting payables from available cash, at
    a 30% advanced rate.

The Recovery Rating is capped at 'RR4' because, under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, China
falls into Group D of creditor friendliness, and instrument ratings
of issuers with assets in this group are subject to a soft cap at
the issuer's Issuer Default Rating. Guarantees to JVs are excluded
from recovery calculations.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Leverage, measured by net debt/net property assets, sustained
    below 45%;

-- Attributable contracted sales and revenue scale being
    comparable with that of 'BB-' rated peers;

-- Gross interest paid/implied sales collection sustained below
    10%.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Leverage, measured net debt/net property assets, above 55% for
    a sustained period;

-- Readily-available cash/short-term debt below 1.0x;

-- Gross interest paid/implied sales collection above 18% for a
    sustained period;

-- Material decrease in land bank life.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Yuzhou had a total cash balance of CNY28.1
billion in 1H21, including cash and cash equivalents of CNY20.9
billion and CNY7.1 billion of non-pledged time deposits, of which
CNY2.5 billion was restricted. Its cash and cash equivalents were
1.4x its CNY15.2 billion in short-term debt, including CNY4.9
billion in interest-bearing bank and other borrowings, CNY6.5
billion in onshore bonds, of which CNY3.5 billion are putable, and
CNY3.8 billion in offshore bonds.

ISSUER PROFILE

Yuzhou develops projects in six metropolitan areas in China's
Yangtze River Delta Region, West Strait Economic Zone, Bohai Rim
Region, Greater Bay Area, Central China Region and Southwest
Region. The group is the leading property enterprise in Xiamen in
southern China and the Yangtze River Delta Region. The company had
179 projects at end-1H21, with a total floor area of 22.0 million
square metres.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's calculation of CNY86.9 billion in adjusted inventory at
end-2020 includes property development inventory, investment
properties at cost, hotel properties and JV investments. Customer
deposits, amounts due to non-controlling interests and amounts due
to JVs and associates are deducted from the summation of items
mentioned previously.

ESG CONSIDERATIONS

Yuzhou Group Holdings Company Limited has an ESG Relevance Score of
'4' for Group Structure due to {DESCRIPTION OF ISSUE/RATIONALE},
which has a negative impact on the credit profile, and is relevant
to the rating[s] 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.




=================
H O N G   K O N G
=================

JIAYUAN INT'L: Fitch Raises Foreign Currency IDR to 'B+'
--------------------------------------------------------
Fitch Ratings has upgraded China-based homebuilder Jiayuan
International Group Limited's Long-Term Foreign-Currency Issuer
Default Rating (IDR) to 'B+' from 'B'. The Outlook is Stable. Fitch
has also upgraded Jiayuan's senior unsecured rating, senior
unsecured notes and convertible bonds to 'B+' from 'B', with a
Recovery Rating of 'RR4'.

The upgrade follows Jiayuan's deleveraging and expansion via
organic growth and asset acquisitions from its largest shareholder.
The company's reliance on trust and other loans also reduced to 13%
of total debt by end-1H21 from 24% at end-2020. In addition,
Jiayuan's ratings are supported by its strong presence in the
Yangtze River Delta and high profitability. The ratings are
constrained by the company's smaller scale than higher-rated
peers.

KEY RATING DRIVERS

Leverage Improves: Fitch expects leverage, measured by net
debt/adjusted inventory for the combined Jiayuan and its sister
company Jiayuan Chuangsheng Holding Group Co., Ltd. to stay within
40%-45% over the next two years, based on Fitch's forecast of
30%-35% leverage for Jiayuan and expectation of stable leverage for
Jiayuan Chuangsheng. According to management, both companies will
stick to the guidance of spending no higher than 40% of sales on
land acquisitions and try to remain within the authorities' "three
red lines", or thresholds for leverage and liquidity measures.

Sister Company's Credit Profile: Fitch considers Jiayuan
Chuangsheng's credit profile and assesses the combined leverage to
reflect continued large related-party transactions between the two,
as well as Jiayuan Chuangsheng's weaker financial profile and
liquidity than Jiayuan. Jiayuan Chuangsheng's leverage of 45%-55%
over the past two years was higher than Jiayuan's 30%-35%. Jiayuan
Chuangsheng's liquidity, measured by available cash to short-term
debt, only improved to above 1x from end-2020 while Jiayuan's ratio
remained above 1x.

Related-Party Land Acquisitions: Jiayuan completed the acquisition
of four Shandong projects from its largest shareholder, Mr Shum Tin
Ching, in June 2021 for CNY6.1 billion, of which 15% was settled in
cash and the rest in equity and convertible bonds that can be
converted only to equity.

Jiayuan also acquired property projects from related parties at a
total enterprise value of CNY5.5 billion, accounting for 13% and
59% of Jiayuan's land acquisitions in 2018 and 2019 by value,
respectively. Fitch generally considers large related-party
transactions as credit constraints, although Jiayuan's risks are
mitigated by the Hong Kong Exchange's rules governing such
transactions.

Focus in Yangtze River Delta: Jiayuan has operated for more than 20
years in the Yangtze River Delta (YRD), especially in Jiangsu. The
injection of development projects in 2018-2021 previously held by
Jiayuan Chuangsheng accelerated Jiayuan's expansion into Shanghai,
and the Anhui and Shandong provinces. Jiayuan also expanded into
Tier 2 and 3 cities in southern and western China from 2016. Fitch
expects the YRD to continue to make up the majority of sales in the
next one to two years, as nearly half of its land bank at end-1H21
was in the region, where demand remains robust.

Strong Profitability: Jiayuan's EBITDA margin (excluding
capitalised interest) has been high at above 30% due to its
penetration in the YRD and the cheap land acquired many years ago.
Its average land cost was low at CNY2,462 per sqm at end-1H21,
around 20% of the average selling price of its contracted sales of
CNY12,000/sq m. According to management, unrecognised contracted
sales amounted to CNY37.5 billion at end-1H21 and have an average
gross profit margin of 30%; new land acquired in 1H21 had lower,
but still healthy, gross profit margin of around 25%.

Fitch expects Jiayuan's gross profit margin to decrease over the
next two years but to a lesser extent than most peers, given its
sufficient low-cost land bank, which can support at least 3.5 years
of sales. Overall gross profit margin remained strong at 32% in
1H21 and Fitch estimates EBITDA margin (excluding capitalised
interest) at 37% in 1H21 (same as in 2020). Profitability is the
key criteria for Jiayuan's land acquisitions.

Scale Constrains Rating: Jiayuan's annual attributable sales,
including the Shandong projects, of CNY30 billion-35 billion are at
the low end for 'B+' rated peers and substantially lower than 'BB-'
peers' more than CNY55 billion. Fitch expects Jiayuan's sales to be
supported by robust demand in Tier 2-3 and satellite cities in the
YRD and Qingdao in the next two years. However, sales growth will
slow as it expands in lower-tier cities and less-developed regions,
where housing demand is less resilient. Land bank outside the YRD
made up more than 40% of the total at end-2020, from nil at
end-2016.

DERIVATION SUMMARY

Jiayuan's business and financial profile is comparable with that of
Chinese property developers rated at 'B+'. Jiayuan's attributable
contracted sales of CNY30 billion-35 billion are at the lower end
of 'B+' peers, which have sales of CNY40 billion-60 billion, except
for Hopson Development Holdings Limited's (B+/Stable) CNY30
billion, Fantasia Holdings Group Co., Limited's (B+/Negative) CNY35
billion and Redco Properties Group Ltd's (B+/Stable) CNY20
billion-25 billion.

However, Jiayuan's EBITDA margin (excluding capitalised interest)
of 30%-35% is wider than most 'B+' peers' 20%-30%. Furthermore,
Jiayuan did not sacrifice sales churn to achieve the stronger
profitability, with its contracted sales/total debt of 1.3x-1.4x
above the average of 'B+' peers. The company's reliance on JV and
non-controlling interest (NCI) is also at the lower end of 'B+'
peers. Jiayuan's combined leverage of 40%-45% is also comparable
with peers' 40%-50%.

Jiayuan and Hopson have similar attributable sales scale. Hopson
adopts a slow-churn high-margin strategy, with sales churn at only
0.3x-04x but EBITDA margin at around 45%. Hopson's leverage of over
45% is slightly higher than Jiayuan's combined 40%-45%. Both
companies have robust financial transparency and sufficient
liquidity. Hopson has very large land bank reserve that can support
around 10 years of future sales. However, it has large investment
in private and listed equities (HKD28 billion at end-Oct2020),
which Fitch views as negative for its credit profile, given
potential volatility and the company's limited record in such
investments.

Redco's margin and churn are weaker than those of Jiayuan, but
Redco's leverage was low at below 30% before 2020 and Fitch expects
leverage to stay healthy at around 35% in the future. Fitch thinks
Jiayuan's stronger business profile but higher leverage (combined)
justifies the same rating with Redco.

Jiayuan's scale is much larger than most 'B' rated peers' CNY15
billion-20 billion, except for Kaisa Group Holdings Limited, which
had attributable sales of over CNY100 billion. Kaisa's rating is
mainly constrained by its high leverage of more than 55% and high
reliance on offshore capital, with around 60% of total debt from
offshore notes.

Compared with peers rated at 'B', Jiayuan has higher churn and
margins. Jiayuan's combined leverage is lower than China South City
Holdings Limited's (B/Negative) 45%-50% and Beijing Hongkun Weiye
Real Estate Development Co., Ltd.'s (B/Negative) above 50%.
Jiayuan's liquidity profile is also stronger than the other two
developers, which had available cash/short-term debt of 0.4x at
end-2020.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Attributable sales to increase by 10% in 2021 and 3% per year
    thereafter;

-- Cash collection rate at 75% in 2021 given tighter mortgage
    policies in 2H21, and recover to 78% thereafter as sales
    growth slows;

-- Land premium to represent around 40% of sales in 2021- 2022,
    as guided by management;

-- Construction expenditure to represent 40% of sales receipts
    during 2021-2022;

-- Average funding cost of 9% during 2021-2022.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that Jiayuan would be liquidated in
bankruptcy because it is an asset-trading company.

Fitch has assumed a 10% administrative claim.

Liquidation Approach

The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.

-- The 80% advance rate applied to adjusted inventory is
    supported by Jiayuan's high profit products, which generate an
    EBITDA margin of above 30%;

-- Advance rate of 70% applied to trade receivables;

-- Advance rate of 60% applied to property, plant and equipment,
    which are buildings;

-- Advance rate of 40% applied to investment property portfolio,
    considering the limited rental income of around CNY200 million
    and low rental yield of 3%;

-- Advance rate of 60% applied to excess cash, which is defined
    as available cash (CNY10.5 billion at end-1H21) after
    deducting three months of contracted sales of around CNY8
    billion.

The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR1' for the senior
unsecured debt. However, the Recovery Rating for senior unsecured
debt is capped at 'RR4' because under Fitch's Country-Specific
Treatment of Recovery Ratings Criteria, China falls into Group D of
creditor friendliness, and instrument ratings of issuers with
assets in this group are subject to a soft cap at the issuer's IDR
and Recovery Rating of 'RR4'.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Positive rating action will only be considered when
    attributable contracted sales expand to a level that is
    comparable with that of 'BB-' peers on a sustained basis.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Combined leverage, as measured by net debt/ net property
    assets, of Jiayuan and Jiayuan Chuangsheng sustained above
    55%;

-- Cash interest paid/ implied cash collection sustained above
    15% (1H21: 11%);

-- Significant deterioration in liquidity or funding access;

-- Sign of weaker corporate governance practices.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Sufficient liquidity: Jiayuan had CNY10.5 billion in unrestricted
cash as of end-1H21, which is sufficient to cover CN8.1 billion of
short-term debt. The company has USD246.9 million of notes turning
puttable in October 2021 and USD235.4 million of notes turning
puttable or due in 1H22. Management said that investors holding
USD100 million of the notes turning puttable in October have agreed
not to exercise their options, and the company will repay the
remainder of the notes with its available cash of USD122 million
offshore and potential new issuance. Jiayuan has offshore note
issuance quota of USD260 million. The company's overall cost for
new borrowings fell to 8.75% in 1H21 from 9.5% in 2020.

ISSUER PROFILE

Jiayuan is a small- to mid-sized property developer focusing on
China's Tier 2 and 3 cities as well as satellite cities in the YRD.
The company was listed on the Hong Kong Stock Exchange in 2016.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch's calculation of CNY44.7 billion of adjusted inventory used
in the leverage calculation at end-1H21 mainly includes: CNY50.9
billion of inventory, CNY778 million of deposits paid for
acquisitions, CNY1.3 billion of deposits paid for acquisitions of
land-use rights, CNY1.6 billion of prepaid land cost, CNY84 million
of property, plant and equipment, CNY5.1 billion of investment
properties, CNY600 million of restricted cash pledged for
acquisition of land-use rights, CNY1 billion of regulated pre-sale
proceeds, CNY255 million of consideration payable for acquisition
of subsidiaries, CNY227 million of other consideration payables,
CNY20.9 billion of pre-sale deposits received, CNY6.7 billion of
investments accounted for using the equity method, CNY1.5 billion
of advances due from JV and associates, CNY3 billion of advances
due to JV and associates, CNY1.3 billion of advances to NCI, and
CNY1.7 billion of advances from NCI.

ESG CONSIDERATIONS

Jiayuan has an ESG Relevance Score of '4' for Group Structure due
to large related-party transactions. Although the company settled
related-party transactions mainly with non-cash payments and they
appear fairly valued, there is potential for more such
transactions. This has a negative impact on the credit profile, and
is relevant to the rating in conjunction with other factors.

Jiayuan has an ESG Relevance Score of '4' for Governance Structure
due to its concentrated shareholding. The largest shareholder owns
74.93% of the company, which has a negative impact on the credit
profile, and is relevant to the rating in conjunction with other
factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.


PROFESSIONAL TEACHERS: To Hold Special Meeting on Sept. 11
----------------------------------------------------------
South China Morning Post reports that Hong Kong's largest teachers'
union will hold a special meeting on Sept. 11 to vote on a motion
to disband and begin winding-up procedures.

The embattled Professional Teachers' Union (PTU) has already agreed
to sell a property which housed one of its two supermarkets to a
medical group for HK$175 million (US$22.5 million), an acquisition
circular revealed, the Post relays.

"Assets, after paying off liabilities and dismissing staff, will be
distributed evenly to members in accordance with our constitution,"
PTU chief executive Andrew Shum Wai-nam told the Post on Sept. 4.

According to the Post, sources said there would be votes at the
Sept. 11's meeting of members on whether to fold the
opposition-leaning union, authorise its executive committee to
initiate liquidation procedures and dismiss its more than 200
employees.

The 95,000-member body, which has come under pressure from the
government and state media, passed a resolution on Aug. 28 allowing
it to be dissolved if two-thirds of attendees at a meeting voted to
do so, the Post notes.

"If we approve the motions, it will still take several months for
us to settle the winding up, considering our valuable properties
and large number of members," the Post quotes one insider as
saying.

The 47-year-old PTU is the city's largest single-industry trade
union and owns several properties, including two ground-floor shops
in Causeway Bay and five units in Chung Kiu Commercial Building in
Mong Kok, the Post discloses.

Under the Trade Unions Ordinance, groups must inform the
authorities within 14 days after dissolution and cease to be a body
corporate.

The Post relates that another union insider said while most of its
businesses, including its two supermarkets for members, had already
ceased operations, its medical services would run until November
for "humanitarian purposes".

The union operates Western and Chinese medicine clinics, as well as
X-ray, dental and optometric centres, in Mong Kok and Causeway
Bay.




=========
I N D I A
=========

BEST VIEW: CARE Reaffirms B+ Rating on INR33.80cr NCD
-----------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Best
View Infracon Limited (BIL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Non-Convertible
   Debentures           33.80      CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the long-term instruments of BIL continues
to remain constrained on account of project execution risk coupled
with lease risk and subdued industry scenario. The rating, however,
derives strength from experienced promoters with established track
record of operations, favorable location of the project and
financial closure achieved.

Rating Sensitivities

Positive Factors

* Ability of the company to timely lease the available area at
envisaged rate and completion of the project within the
envisaged period.

Negative Factors

* Delay or cost overrun in the project development more than
INR33cr.

* Delay in lease of available area beyond March 2023.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Project Execution Risk: The project is at middle stage of
execution with 68.53% of the total project cost has been incurred
till June 30, 2021 with major portion of project has been incurred
on land acquisition and construction. With construction of INR61.25
crore i.e. ~59% out of the total estimated construction cost of
INR104.12 crore, the project remains exposed to significant amount
of execution risk. However, comfort can be derived from the fact
that all pre-construction approvals have been received such as
environmental clearance, structure stability certificate, CTE and
Labour registration. Also, the company expects the project to be
completed before end of FY22, therefore any major delay in the
project beyond that time period will be key rating sensitivity.
Also, the project is being developed on lease model and the company
has planned to lease the available area post completion of the
project. Presently the company has not commenced the leasing of the
area and therefore going forward the ability of the company to
timely lease the available area at envisaged lease rental would be
key rating sensitivity.

* Subdued industry scenario: With the ongoing economic conditions,
the real estate industry is currently facing issues on many fronts,
including subdued demand, curtailed funding options, rising costs,
restricted supply due to delays in approvals, etc. thereby
resulting in stress on cash flows of developers. The industry has
seen low demand in the recent past, primarily due to factors like
sustained high level of inflation leading to high interest rates
and adverse impact on the buying power and affordability for the
consumers.

Key Rating Strengths

* Experienced promoters with established track record of
operations: Best View Infracon Limited (BIL) was incorporated in
2008 is into real estate development. It is part of the Eldeco
Group which was established in 1985 and has more than 30 years of
experience in real estate industry. BIL is an 100% subsidiary of
Eldeco Infrastructure and Properties Ltd (EIPL). The group is
promoted by Mr. S.K. Garg, who has more than 45 years of experience
in the real estate industry. The group has successfully executed
more than 150 residential and commercial buildings projects
spanning townships, high-rise condominiums, industrial estates,
malls and office complexes in UP and Delhi NCR with a total
saleable area of over 400 lsf.

* Favorable location of the project: The project is located at
Malviya Nagar Metro Station which is in the vicinity of two
prominent areas i.e. Saket and Malviya Nagar in South Delhi. The
site is on the main road on the land above the Malviya Nagar Metro
Station. It is also close to Indira Gandhi International Airport,
New Delhi which is only 13 kms away.

* Financial closure of the debt: The company is developing a
commercial project at total project cost of INR211.58 crore funded
through promoter contribution of INR44.30 crore, NCD of INR54.10 cr
and term loan of INR113.14 crore. Till June 30, 2021, BIL has
incurred INR145.01 crore on the project.

Liquidity: Stretched

The liquidity of the company is stretched as NCDs has 0% coupon
rate and redemption premium of 22% XIRR, subject to availability of
earnings and final redemption is on May 08, 2024. Term loan of
INR113.14 cr is to be repaid by way of bullet repayment at the end
of 72 months from the date of first disbursement (May 2019).
Therefore, the ability of the company to repay the NCD and term
loan in timely manner will depend on the timely lease of the area
at pre-defined rates. The company is yet to start leasing of
available area and lower than envisaged lease rental will result in
stretched liquidity.

Best View Infracon Limited (BIL), incorporated in 2008 has been
involved in real estate development. It is part of the Eldeco Group
which was established in 1985 and has more than 30 years of
experience in real estate industry. BIL is a 100% subsidiary of
Eldeco Infrastructure and Properties Ltd (EIPL). The company
belongs to 'Eldeco group' which is a renowned real estate &
construction group of North India with experience of more than 40
years in real estate development.

BRIJLAL HOSPITAL: CARE Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Brijlal
Hospital & Research Centreprivate Limited (BHRCL) continues to
remain in the 'Issuer Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       14.98      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 22, 2020, placed the
rating(s) of BHRCL under the 'issuer non-cooperating' category as
BHRCL 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. BHRCL continues to
be non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 7, 2021, June 17, 2021, June 27, 2021.

In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).

Brijlal Hospital and Research Centre Private Limited (BHARCPL) was
established in June 2007 and is managed by Mr Ramesh Pal along his
two sons – Dr. Ajay Pal and Mr Ashok Pal. The company runs a
multi-specialty hospital offering facilities in various medical and
surgical fields. The company provides healthcare services in
neurology, orthopedics, pathology, cardiology, ophthalmology,
dermatology, critical care, mother & child care, radiology and
general medicine among others. It is equipped with modular
operation theatre, Intensive Care Unit (ICU) with advance
ventilator support. BHRC also has one special advanced life support
ambulance fully equipped with all modern resuscitation equipment
with trained medical staff. The company also runs education
institute providing degree and diploma courses in the field of
nursing and midwifery under the brand name of Pal college of
Nursing and Medical Sciences.


CARD PRO: CARE Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Card Pro
Solutions Private Limited (CPSPL) continues to remain in the
'Issuer Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       4.84       CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

   Short Term Bank      2.30       CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated July 24, 2020, placed the
rating(s) of CPSPL under the 'issuer non-cooperating' category as
CPSPL 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. CPSPL 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.

Card Pro Solutions Private Limited (CSPL) incorporated in 1989 as
Kamal Offset Private Limited by Mr. Vikas Choudhary and Mr. Kishin
Gidwani and got its current name in 2010. CSPL is engaged in
business of the manufacturing of pre-paid cards and chip & non-chip
based smart cards. The products manufactured by CSPL are customized
as per the customers' demand which mainly includes telecom
companies, banks, financial institutions and others. CSPL has its
manufacturing facility located at Navi Mumbai with an installed
capacity of 480 crore pin for printing card and 1.8 crore for smart
cards as on March 31, 2017. Further, it has head office in Mumbai
(Maharashtra) and also has two more branches in Delhi and Kolkata
for conducting its marketing activities.

ENALTEC LABS: CRISIL Reaffirms B Rating on INR3.5cr Cash Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4'
ratings on the bank facilities of Enaltec Labs Pvt Ltd (ELPL).

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit            3.5       CRISIL B/Stable (Reaffirmed)

   Letter of Credit       5.0       CRISIL A4 (Reaffirmed)

   Packing Credit
   in Foreign Currency   15.0       CRISIL B/Stable (Reaffirmed)

   Post Shipment
   Credit                15.0       CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect the working capital-intensive
operations of the company, its subdued financial risk profile,
modest scale of operations amid intense competition and volatile
operating margin. These weaknesses are partially offset by the
extensive experience of the promoters in the pharmaceutical
industry.

Analytical Approach

Unsecured loan has been treated as debt

Key Rating Drivers & Detailed Description

Weaknesses:

* Working capital-intensive operations: Gross current assets were
at 268 days as of March 31, 2021, on account of sizeable raw
material and work-in-progress inventory of 140 days. The
receivables were moderate at 66 days. Working capital is funded by
stretching credit from suppliers and high dependence on bank lines.
Management of the working capital cycle will remain a key
monitorable.

* Subdued financial risk profile: The total outside liabilities to
adjusted networth (TOLANW) ratio and gearing were high at 3.82
times and 1.94 times, respectively, as of March 31, 2021, on
account of large, debt-funded capital expenditure (capex) in the
near past and high dependence on working capital debt. With
increase in bank debt, gearing is expected to increase. The
interest coverage and net cash accrual to total debt ratios were
subdued at 1.16 time and 0.02 time, respectively, for fiscal 2021
because of cash losses. With sustained operating profit, the debt
protection metrics should improve over medium term.

* Modest scale amid intense competition: Revenue was modest
INR115.22 crore in fiscal 2021 and is expected at INR160 crore in
fiscal 2022. The Indian active pharmaceutical ingredient (API)
industry has a large number of organized and unorganized players,
on account of low entry barrier. The competition restricts
bargaining power with customers and suppliers, leading to low
profitability. Due to capital expenditure in the past fiscal,
revenue is expected to increase over the medium term.

* Volatile operating margin: Operating margin fluctuated widely in
the three fiscals ended March 31, 2021, on account of volatility in
the revenue mix. The company incurred a loss in fiscal 2020 because
of delay in stabilization of operations at the newly set-up
manufacturing unit in Pithampur, Madhya Pradesh. Operating margin
was at 7.7% in fiscal 2021 and is expected to improve over the
medium term backed by strong order book.

Strength:

* Extensive industry experience of the promoters: The promoters
have experience of more than two decades in the pharmaceutical
industry, which has given them a sound understanding of the
industry and helped them to continuously evolve the company and
develop new products. Exports contribute around 75% to revenue. In
the domestic market, the company has a sizeable customer base,
comprising large pharmaceutical companies, with which it has
healthy relationships.

Liquidity: Poor

Liquidity is poor with weak cash accruals in fiscal 2021 and
expected accruals of around INR9-12 crore in fiscal 2022, which
should be tightly matched against the repayment obligations of
INR10.15 crore in this fiscal. The fund-based limit of INR43 crore
was utilized at an average of 97% during the 12 months through June
2021.

Outlook Stable

CRISIL Ratings believes ELPL will continue to benefit from the
extensive industry experience of the promoters and established
customer relationships.

Rating Sensitivity factors

Upward factors

* Sustained growth in revenue and operating margin of more than
13%, leading to cash accrual above INR15 crore

* Improvement in the financial risk profile with reduced working
capital cycle and debt

Downward factors

* Decline in revenue or in operating margin leading to cash accrual
of less than INR10 crore

* Large, debt-funded capex or severe stretch in the working capital
cycle, impacting the financial risk profile

ELPL was incorporated in 2006 and is promoted by Mr. Anand Shah and
Mr. Susheel Koul. The company manufactures bulk drugs and
undertakes research and development on API for domestic and global
clients. It has manufacturing units at Ambernath, Maharashtra and
Pithampur, Madhya Pradesh.


GIRIN DEKA: CRISIL Keeps C Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Girin Deka
(GD) continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bank Guarantee          10       CRISIL A4 (Issuer Not
                                    Cooperating)   

   Cash Credit              4       CRISIL C (Issuer Not
                                    Cooperating)

CRISIL Ratings has been consistently following up with GD for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of GD, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on GD is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of GD
continue to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.

GD was formed as a proprietorship firm of Mr. Girin Deka in 1991.
The Guwahati-based firm undertakes construction of roads and
bridges, for government departments in Assam.


GREESHMAM RESORTS: CRISIL Reaffirms B Rating on INR18.5cr Loan
--------------------------------------------------------------
CRISIL Ratings has removed its rating on the long term bank
facilities of Greeshmam Resorts Private Limited (GRPL) from 'Rating
Watch with Developing Implications' and has reaffirmed the rating
at 'CRISIL B'; while assigning 'Stable' outlook to the long term
rating.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Term Loan             18.5       CRISIL B/Stable (Removed from
                                    'Rating Watch with Developing
                                    Implications'; Rating
                                    Reaffirmed)

CRISIL Ratings had, on July 27, 2021, placed the rating on 'Watch
with Developing Implications' following the decision of the company
to apply for one-time restructuring (OTR) of its term loans availed
of from Canara Bank under the guidelines issued by the Reserve Bank
of India (RBI) on August 6, 2020, titled 'Resolution Framework for
Covid-19-related Stress'

The lender has approved the restructuring of the term loan, and the
company has been granted 6 months of moratorium for the principal
repayments from April till September – 2021 and a further 2-year
extension in tenure towards term loan repayment. The revised
repayment schedule should support the liquidity. Revenue and
profitability are expected to improve in the coming months, along
with revival in occupancy levels, which remain key monitorables.

The rating continues to reflect promoters' extensive experience in
the hospitality segment supporting business risk profile. This
rating strength is partially offset by the modest scale of
operations in the intensely competitive and cyclical hospitality
industry and geographical concentration in revenue profile.

Key Rating Drivers & Detailed Description

Strengths:

* Promoters' extensive experience in the hospitality segment
continues to support business risk profile: The promoter of GRPL,
Mr. N.K. Mohamed, has an experience of over 25 years in similar
business line and was awarded as the 'Tourism Man of the Year 2002'
by South Indian Tourism Promotion Council during Global Kerala
Festival held at 'House of Commons in London. Promoter's experience
and understanding of nuances in the tourism and hospitality sector
should continue to support the business risk profile.

Weakness:

* Modest scale of operations in an intensely competitive and
cyclical hospitality industry: GRPL has a modest scale of
operations and is exposed to cyclicality in the hospitality
industry. The company's revenues in fiscal 2021 was at Rs. 22.28
crores showcasing its modest scale of operations in the intensely
competitive hospitality segment. The hospitality industry is
susceptible to downturns in the domestic and international
economies. The company's operation was impacted severely on account
of COVID lockdown; however, supported by improvement in occupancy
in second half of the fiscal and increase in trading income the
company posted stable revenue in fiscal 2021.

* Geographical concentration in revenue profile: The company
derives its entire revenue off one single property in Wayanad,
Kerala leading to geographical concentration in revenue. The
company shall remain vulnerable to climate change in the region as
seen in fiscal 2019 where operations were impacted and property
partly damaged on account of flood in the region.

Liquidity: Stretched

Liquidity is stretched. Cash accrual are expected to be tightly
matched over the medium term to meet the repayment obligation.
However, 6 months moratorium and extension of loan repayment tenure
by further two more years under COVID – 19 restructuring 1.0
provides comfort to the liquidity of the company.  Need-based fund
support from promoters should support the liquidity as well.

Outlook Stable

CRISIL Ratings believes GRPL will continue to benefit from the
promoters' extensive experience in the industry over the medium
term.

Rating Sensitivity factors

Upward factor

* Large increase in scale of operations and profitability
* Accruals to repayment of over 1.2 times

Downward factor

* Large decline in scale of operations and operational losses
* Inadequate accruals to meet the debt obligations.

Started in 2010, GRPL is engaged in operation of a hotel & resort
by name "Vythri Village" in the Wayanad District of Kerala. The
promoter has an experience of more than two decades in similar line
of business. The company has a tie up with 65 travel agents
including Makemytrip. Vythri is among one of the 50 resorts in Club
Mahindra's website.


HARDEO INDUSTRIES: CARE Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Shree
Hardeo Industries (SHI) continues to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       6.44       CARE B-; Stable; ISSUER NOT
   Facilities                      COOPERATING; Rating continues
                                   To remain under ISSUER NOT
                                   COOPERATING category  

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated September 1, 2020, placed
the rating(s) of SHI under the 'issuer non-cooperating' category as
SHI 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. SHI 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).

Established in the year 2013, Shree Hardeo Industries (SHI), is a
proprietorship firm based in Raipur, Chattigarh. SHI is engaged in
the manufacturing of PVC pipes, column pipes and PVC fittings. The
firm commenced manufacturing operations from Sep 2013 and has an
annual installed capacity of 1000 Metric Tonne/annum. The project
was set up at a cost of INR14.50 crore, funded by a term loan of
INR6.25 crore and capital of INR8.25 crore. Product portfolio of
the firm includes SWR pipes and fittings, column pipes, plumb
pipes, casing pipes, UPVC pipes, which are sold under the brand
name of 'Vertex' SHI procures raw material, which includes PVC
resin and other chemicals from suppliers based in Chattisgarh and
others. The finished products are sold to traders and other
associate entities, through a distribution network.


MARUT NANDAN: CRISIL Lowers Rating on INR10cr Cash Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Marut
Nandan Textiles Limited (MNTL) to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit            10        CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Proposed Cash           1.37     CRISIL B/Stable (ISSUER NOT
   Credit Limit                     COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan               0.62     CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan               0.01     CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL Ratings has been consistently following up with MNTL for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MNTL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MNTL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MNTL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB-/Stable Issuer Not Cooperating'.

MNTL, incorporated in 1993 as a closely held public limited
company, is promoted by Mr. Ashok Kumar, his family members, and
affiliates. Based in Hisar, Haryana, the company has ginning and
oil extraction units in Khairthal, Rajasthan. It gins and presses
raw cotton (kapas) to make cotton bales. It also extracts oil and
produces de-oiled cakes from mustard and cotton seeds.

MF MOTORS: CRISIL Lowers Rating on INR6.1cr Cash Loan to B
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of MF Motors to
'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable
Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit            6.1       CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

CRISIL Ratings has been consistently following up with MF for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MF, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MF is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of MF
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB/Stable Issuer Not Cooperating'.

MF was set up by Mr. Abdul Waheed in 2009. The firm is an
authorized dealer of all two-wheelers for HMSI. It has one flagship
3S showroom and four other showrooms in Nanded.

MR MILLENIUM: CRISIL Lowers Rating on INR5cr Cash Loan to B
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Mr. Millenium
Road Construction Private Limited (MRCPL) to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bank Guarantee         7.5       CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit            5.0       CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL Ratings has been consistently following up with MRCPL for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MRCPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MRCPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MRCPL revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.

MRCPL, incorporated in 2000, undertakes civil construction works
and construction and maintenance of roads and highways for
government agencies in West Bengal. The company is a registered
class 1 government-approved contractor. Revenue has largely
remained concentrated in West Bengal, particularly in Kolkata,
Siliguri and Dinajpur. Bulk of the revenue came from road projects,
with the balance from construction of bridges.

MULPURI FISHERIES: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on the bank facilities of Mulpuri
Fisheries Private Limited (MFPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit           89.5       CRISIL B/Stable (Issuer Not
                                    Cooperating)

   Cash Credit           12.5       CRISIL B/Stable (Issuer Not
                                    Cooperating)             

CRISIL Ratings has been consistently following up with MFPL for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
MFPLis consistent with 'Assessing Information Adequacy Risk'. Based
on the last available information, the ratings on bank facilities
of MFPLcontinues to be 'CRISIL B/Stable Issuer Not Cooperating'.

For arriving at its rating, CRISIL Ratings has combined the
business and financial risk profiles of MFPL, Mulpuri Foods and
Feeds Pvt Ltd (MFFPL), Mulpuri Poultries (MP), and Sri Venkateswara
Poultry Farm (SVPF). This is because all these entities, together
referred as the Mulpuri group, have a common management, and
significant intra-group operational and financial linkages.
Furthermore, there are cross corporate guarantees extended to each
other.

The Mulpuri group was set up by Mr. Lakshmana Swamy who has more
than three decades of experience in the poultry industry. The group
is based in Vijayawada, Andhra Pradesh.


PATEL PHOSCHEM: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Patel
Phoschem Limited (PPL) continues to remain in the 'Issuer Not
Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       14.75      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated July 24, 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 10, 2021, May 20 2021 and May 30, 2021.

In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).

Udaipur (Rajasthan) based Patel Phoschem Private Limited (PPL) was
incorporated in 2006 by Mr. Roop Lal Patel along with his family
members. In April, 2014, the company changed its constitution from
private limited to public limited. Initially, PPL was engaged in
the business of executing turnkey projects related to installation
of fertilizer plants which includes construction of plant to supply
of machineries. Later, from September 2012, PPL started production
of SSP, GSSP and PA. It has total installed capacity of 100,000
Metric Tonnes Per Annum (MTPA) of SSP, 50,000 MTPA of GSSP and
21,000 MTPA of PA as of March 31, 2017.

REVA ENTERPRISE: CRISIL Lowers Rating on INR9.5cr Loans to D
------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Reva Enterprise (RE) to 'CRISIL D' from 'CRISIL B/Stable'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit            1.5       CRISIL D (Downgraded from
                                    'CRISIL B/Stable')

   Long Term Loan         8.0       CRISIL D (Downgraded from
                                    'CRISIL B/Stable')

The downgrade reflects delays in repayment of term loan from June
2021 because of weak liquidity. The rating continues to reflect
below average financial risk profile and weak operating
performances. These weaknesses are partially offset by extensive
experience of the partners.

Analytical Approach

Unsecured loans (USL) from partners and family amounting to INR5.85
crore as of March 31, 2021 are treated as neither debt nor equity
to the tune of INR2 crore (minimum level expected to remain in the
business).

Key Rating Drivers & Detailed Description

Weaknesses:

* Delays in servicing debt obligation: There have been continuous
delays in servicing term loan obligations by the firm since June
202.

* Below average financial risk profile: Small net worth and high
total outside liabilities to adjusted net worth ratio estimated at
INR2.44 crores and 4.62 times respectively as on March 31, 2021
represents leveraged capital structure. Operating losses has also
resulted in weak debt protection metrics.

* Weak operating performance: Firms operating performance is weak
as indicated by estimated to report modest revenue of INR0.08 crore
in fiscal 2021 with operating loss of around 47%.

Strength:

* Extensive experience of the partners: Partners have extensive
experience in the industry and over the years, has established
relations with customer base of dealers from operations of other
group entities. Partners have provided funding support to the firm
through unsecured loans.

Liquidity: Poor

Liquidity is poor given continued cash losses as against repayment
obligation of around INR0.7 crore per annum in fiscal 2022.
Accordingly, there have been delays in servicing of repayment
obligations for term loan by the firm. The firm has negligible cash
and bank balances (both encumbered and unencumbered) of INR0.74
crore as on March 31, 2021. No major capex is expected over the
medium term. Liquidity is partially supported by USL from partners
and family, which stood at around INR5.85 crore as of March 31,
2021. Reliance on fund support from promoters to meet repayment
obligations is expected to continue.

Rating Sensitivity Factors

Upward factors:

* Track record of timely debt servicing for at least over 90 days

* Significant improvement in liquidity on back of substantial
improvement in operating performance, restructuring of debt or
infusion of equity.

RE is engaged in manufacturing of optical whitening agents. Mr.
Pranesh M Maru and Mr. Mahesh Chothani are the partners. The
manufacturing facility is in Bharuch, Gujarat, with installed
capacity of 2,400 tons per annum.

REX PIPES: CRISIL Withdraws B+ Rating on INR4cr Loans
-----------------------------------------------------
CRISIL Ratings has withdrawn its ratings on the bank facilities of
Rex Pipes And Cables Industries Limited (KELP) on the request of
the company and receipt of a no objection certificate from its
bank. The rating action is in line with CRISIL Ratings' policy on
withdrawal of its ratings on bank loans.

                       Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            4        CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Cash Credit            2        CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Letter of credit       1        CRISIL A4/Issuer Not
   & Bank Guarantee                Cooperating (Withdrawn)

   Proposed Long Term     2.69     CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility             COOPERATING; Rating Withdrawn)

   Term Loan              2.81     CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

CRISIL Ratings has been consistently following up with KELP for
obtaining information through letters and emails dated October 24,
2020 and April 20, 2021, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KELP. This restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KELP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KELP continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

KELP, incorporated in 2002 and promoted by Mr. Shrawan Kaler,
trades in water pumps, flat cables, and pipes. It started
manufacturing polyvinyl chloride (PVC) and high-density
polyethylene (HDPE) pipes and electrical cables in June 2011. Its
manufacturing unit is in Sikar, Rajasthan. Before commencement of
manufacturing operations, KEPL derived its entire revenue from the
trading segment.

SAINIK MINING: CRISIL Lowers Rating on INR127cr Cash Loan to B
--------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Sainik
Mining and Allied Services Limited (SMASL; part of the SMASL
combine) to 'CRISIL B/Stable/CRISL A4 Issuer Not Cooperating' from
'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bank Guarantee         125       CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Bank Guarantee          30       CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Bank Guarantee         247       CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit            127       CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              16.5      CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              24.5      CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan               3.2      CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan               9.1      CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              10.2      CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              50        CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan             132        CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL Ratings has been consistently following up with SMASL for
obtaining information through letters and emails dated March 31,
2021 and July 29, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMASL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMASL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SMASL revised to 'CRISIL B/Stable/CRISL A4 Issuer Not Cooperating'
from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating'.

SMASL was incorporated in 1989, promoted by Capt. K S Solanki and
Capt. R S Sindhu. The company provides coal-mining services using
surface miners, and logistics services. It also undertakes
conventional mining (through blasting) and removal of overburden.
Its promoters commenced operations in 1980 by forming Sainik
Transporters Pvt Ltd (STPL), which provided loading and
transportation services to CIL. In 1989, STPL and its associate
companies (promoted by the same directors) were merged to form a
single company, SMASL.

SMASL had obtained coal mining rights for blocks in India through
MP Sainik Coal Mining Pvt Ltd and KCMPL, which were established as
JVs with Madhya Pradesh State Mining Corporation Ltd and Odisha
Mining Corporation Ltd, respectively. The coal blocks allotted to
these companies were de-allocated and have been allocated to other
entities. SMASL had also acquired coal and gold mines in Indonesia
and Peru, respectively, through SMIL, but divested most of its
holding during fiscals 2013 and 2014. No further investment by
SMASL is anticipated in these ventures.


SARA SAE: CRISIL Raises Rating on INR13.09cr Cash Loan to B
-----------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Sara Sae Private Limited (SSPL; a part of the Sara
group) to 'CRISIL B/Stable' from 'CRISIL B-/Stable', while
reaffirming its 'CRISIL A4' rating on the short-term bank
facilities.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bill Purchase-        13.08      CRISIL B/Stable (Upgraded
   Discounting                      from 'CRISIL B-/Stable')
   Facility                  

   Cash Credit           13.09      CRISIL B/Stable (Upgraded
                                    from 'CRISIL B-/Stable')

   Letter of credit
   & Bank Guarantee      25         CRISIL A4 (Reaffirmed)

   Packing Credit        13.09      CRISIL A4 (Reaffirmed)

   Proposed Long Term  
   Bank Loan Facility    39.24      CRISIL B/Stable (Upgraded
                                    from 'CRISIL B-/Stable')

The upgrade reflects bought-back of shares of SSPL by Mr. VK Dhawan
and his family members from Joulan Asset Management and Aggrego
Services DMCC, Dubai, in 2021. Consequently, 100% shareholding and
control vests with the Dhawan family. Further, the group has closed
its loss-making entities, resulting which the group generated
earnings before interest, taxes, depreciation, and amortization
(EBITDA) loss of 3.9% in the first half of calendar year (CY) 2020
(47.6% in CY 2020). Due to cost savings in employee and rental
cost, it is estimated that the group generated EBITDA of around 2%
in CY 2021. The group has booked revenue of around INR42 crore for
the six months through June 2021. Further, available order book of
around INR88 crore as of July 2021 supports revenue visibility;
however, timely execution of orders and improvement in
profitability and cash accrual would remain key monitorables and
rating driving factors over the medium term.

However, the business risk profile of SSPL was impacted in CY 2020
due to the Covid-19 pandemic and subsequent lockdowns, resulting in
a revenue decline of 53%. Consequently, EBITDA loss was negative
-47% in CY 2020 due to low absorption of fixed overheads cost.

The ratings also factor in the Sara group's weak financial risk
profile and susceptibility to fluctuations in global energy
markets. These weaknesses are partially offset by an established
market position and the experience of the promoter in the oil and
gas equipment industry.

Analytical Approach

For this rating action, CRISIL Ratings has combined the business
and financial risk profiles of SSPL, its subsidiary, STS Product
Inc (STS), and their step-down subsidiaries, STS Products S Pte Ltd
(SPL), STS Products FZE (FZE), Blue Forgings Pvt Ltd (BFPL), and
Consolidated Pressure Control (CPC). That is because these
entities, collectively referred to as the Sara group, are in the
same business, have common management and significant intercompany
transactions, and derive considerable business synergies from each
other.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest scale of operations with exposure to cyclicality in the
global energy markets: Operating income of INR57.82 crore in CY
2020, reflects the average scale of operations. SSPL generates
entire revenue from oil and gas equipment industry, which is
inherently cyclical, with performance strongly linked to the
overall economic scenario and trends in crude oil and gas prices.
Further, the SSPL growth prospects have a direct correlation with
the global energy market. The group offers fast-moving and capital
goods to oil rig operators. The number of oil rigs and amount of
investment in drilling are key factors that could weaken the
business, which should thus remain susceptible to any volatility in
global energy markets.

* Weak financial risk profile: The financial risk profile is likely
to remain modest. Total outside liabilities to tangible networth
ratio was high at 4.6 times as on December 31, 2020; the ratio is
estimated at 5.0 times as of December 2021. Debt protection metrics
were subdued owing to sizeable interest cost and huge operating
losses; interest coverage and net cash accrual to adjusted debt
ratios were both negative at -3.0 times and -0.51 time,
respectively, for year 2020.


Strengths:

* Established market presence, supported by extensive experience of
promoter: Benefits from the three-decade-long experience of the key
promoter, Mr. V K Dhawan, his healthy relationship with clients and
ability to identify market trends should continue to support the
business. Over the years, the group has diversified its product
profile to meet most requirement of the oil and gas exploration
industry. Furthermore, the group operates in almost all major
countries and has recently opened service centers in many regions
to become a full-fledged equipment and service provider. The
promoter's expertise and the group's strong global presence should
continue to support the business.

Liquidity: Stretched

Liquidity is likely to remain weak. Cash accrual was a negative
INR36 crore for CY 2020 and should remain negative over the medium
term as well, against yearly debt obligation of nil and INR2.5-3.5
crore in CYs 2021 and 2022, respectively. The fund-based limit was
utilized at an average of 78.7% during the 12 months through June
2021. The promoter is likely to continue extending timely,
need-based funds to aid liquidity. Current ratio was 1.1 times as
of December 31, 2020.

Outlook: Stable

The Sara group should continue to benefit from the extensive
experience of the promoter.

Rating Sensitivity factors

Upward factors

* Revenue growth of more than 10% per annum, with operating margin
rising to 2%
* Absence of any large, debt-funded capital expenditure
Significant improvement in working capital cycle

Downward factors

* Overutilisation in working capital limit by over 30 days
Sizeable stretch in the working capital cycle

The Sara group manufactures machinery and equipment that are used
in oil well-drilling and production activities. The machinery and
equipment are covered under API licences and the quality system
accredited under ISO-9001. SSPL is a portfolio company of JAM. Its
subsidiaries include STS, CPC, and BFPL. Mr. V K Dhawan is the
promoter.

SHIW PRASAD: CARE Lowers Rating on INR7.50cr LT Loan to B
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of Shiw
Prasad Jyoti Prasad (SPJP), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank        7.50      CARE B; Stable Revised from
   Facilities                      CARE BB-; Stable

Detailed Rationale & Key Rating Drivers

The revision in ratings to the bank facilities of SPJP is on
account of stretched liquidity position of the firm marked by
frequent overdrawal in the Cash Credit (CC) account, however; the
same have regularized in within 30 days. The revision in ratings
also considers consistent increase in exposure to group company
which is more than the partners' capital as on balance sheet date.
This apart, the rating is constrained by constitution as a
partnership firm with risk of withdrawal of capital, high
government regulations and low profitability margin in the liquor
retailing industry. However, the ratings draw strength from
experienced partner and long track record of operations, stable
financial performance in FY21(Prov.) [refers to the period from
April 1 to March 31] and satisfactory financial risk profile.

Rating Sensitivities

Positive Factors - Factors that could lead to positive rating
action/upgrade:

* Increase in scale of operations marked by total operating income
above INR120 crore and PBILDT margin above 5% on a
sustained basis while maintaining capital structure.

* Reduction of exposure (in the form of loans and advances) to
group company

* Improvement in liquidity position leading to reduction in
utilization of fund-based limits.

Negative Factors- Factors that could lead to negative rating
action/downgrade:

* Significant withdrawal of capital by partners

* Decline in scale of operations marked by total operating income
above INR90 crore and PBILDT margin above 3% on a sustained basis.

* Change in government regulations leading to adverse impact on the
business operations of the company.

* Any further increase in exposure to group entity thereby
impacting the liquidity of the firm.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Constitution as a partnership firm with risk of withdrawal of
capital: SPJP is a partnership firm and the inherent risk for
withdrawal of capital remains. During FY21 (Prov.), partners had
withdrawn INR1.05 crore from partners' capital. However, partners'
capital did not decline over FY20 due to accretion of
profit.

* High exposure in group entity: SPJP has advanced a loan of
INR16.50 crore as of March 31, 2021 (103.64% of partners' capital)
vis-à-vis INR14.89 crore as of March 31, 2020 (100.47% of
partners' capital) to its group entity i.e. Fortune Spirit Limited
for its working capital requirements and repayment of ICDs.
Accordingly, despite operational performance of the SPJP being
stable, liquidity of the firm got stretched due to consistent
support being extended to group entity.

* High government regulations: Liquor retailing is a highly
regulated industry. There are regulations in terms of advertising,
location of the stores, etc. This apart, the firm has to follow the
purchase terms fixed by Odisha State Beverages Corporation Limited
(OSBCL) which restrict its bargaining power.

* Low profitability margins: SPJP does not have any control over
the selling price of the products dealt with and has to transact at
rates determined by OSBCL. Hence, the firm has limited ability to
expand its margins. The PBILDT margins remained stable at 4.73% in
FY21 (Prov.) [4.13% in FY20].

Key Rating Strengths

* Experienced partner with long track record of operations: The
firm was established in 1994 by Mr. Rajesh Kumar Sahu. He has an
experience of more than 25 years in the liquor industry. Currently,
there are 11 partners in the firm.

* Stable financial performance in FY21 (Prov.): The operating
income of the firm has marginally deteriorated in FY21 (Prov.) on
account of shut down of business operations of the firm in Q1FY21
due to outbreak of Covid-19 pandemic. However, PBILDT margin
continued to remain stable at 4.73% in FY21 (Prov.) as against
4.13% in FY20. Interest coverage improved from 2.73x in FY20 to
2.87x in FY20 (prov.) due to increase in PBILDT levels. The firm
reported GCA of INR2.22 crore in FY21 (Prov.) vis-à-vis nil debt
repayment obligation.

* Satisfactory financial risk profile: The financial risk profile
of the company is satisfactory marked by nil term debt coupled with
improvement in overall gearing ratio and debt coverage indicators
in FY21. Overall gearing improved from 0.81x as of March 31, 2020
to 0.70x as on March 31, 2021 (Prov.) on account of lower
utilization of working capital limits as on balance sheet date
coupled with accretion of profits to partner's capital. TDGCA also
improved and stood at 5.03x in FY21 (Prov.) (6.26x in FY20).

Industry Outlook

India has been one of the worst hit countries due to the Covid-19
pandemic. Liquor manufacturing, distribution and retailing in India
came to a complete standstill during the nationwide lockdown in
March'2020. While there has been a phased reopening of the
off-trade since May'20, the on-trade channel – bars, pubs and
restaurants remained closed. During the lockdown, several states
also introduced additional taxes and excise duties that have
impacted retail prices of spirits in the country. Though sales
picked up in H2FY21 in most parts of the country, the States which
imposed high Corona cess and tax after the first wave showed poor
recovery. Nevertheless, a young demographic base, growing income
levels, expanding middle-class, greater preference for premium food
and drink experiences and steadily rising social acceptance of
spirits will continue to drive alcohol demand in the country in the
years to come.

Liquidity: Stretched

The liquidity position of the firm is stretched marked by average
utilization of CC limit (Rs 7.50 Crore) at 99% for the last 12
months ended June 30, 2021 and frequent instances of overdrawal in
the CC account, however; the same have been regularized within 30
days. Further, the firm has earned GCA of INR2.21 crore in FY21
(Prov.) vis-à-vis nil debt repayment obligations.

M/s Shiw Prasad Jyoti Prasad (SPJP) was established in 1994 by Mr.
Rajesh Kumar Sahu. He has an experience of more than 25 years.
Currently, there are 11 partners in the firm. SPJP is presently
running 21 liquor retail stores to sell IMFL (Indian Made Foreign
Liquor) and country liquors in various districts of Odisha viz;
Bolangir, Dhenkanal, Bargarh, Sonepur, Kalahandi, etc.


SYMTRONICS AUTOMATION: CRISIL Reaffirms B+ INR2.5cr Loan Rating
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on bank facilities of
Symtronics Automation Private Limited (SAPL) at 'CRISIL
B+/Stable/CRISIL A4'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bank Guarantee        3.5        CRISIL A4 (Reaffirmed)
   Bank Guarantee        1.5        CRISIL A4 (Reaffirmed)
   Cash Credit           2.5        CRISIL B+/Stable (Reaffirmed)
   Cash Credit           2          CRISIL B+/Stable (Reaffirmed)
   Cash Credit           1.5        CRISIL B+/Stable (Reaffirmed)

SAPL reported revenue of INR18.64 crore and operating margin of
over 13.4 percent in fiscal 2021 against revenue and operating
margin of INR9.45 crore and 23 percent respectively in previous
fiscal 2020. The company's revenue had remained modest over the
past four fiscals through 2021. Moreover, operations continue to
remain highly working capital intensive with gross current assets
in the range of 340-700 days in the last four fiscals. Working
capital bank limit remains highly utilized due to incremental
working capital requirements.

Sustained and sharp growth in revenue and improvement in working
capital cycle remain critical and shall be monitored.

The ratings continue to reflect the company's average financial
risk profile, improving yet modest scale of operations, and
elongated working capital cycle. These weaknesses are partially
offset by the extensive experience of the promoter in the niche
electronic control systems manufacturing industry, and his funding
support.

Analytical Approach

Of the total preference share capital extended to the company, 75%
has been treated as equity and the remaining as debt. This is
because the shares are from promoters, long tenure and
non-cumulative, and carry lower coupon rate.

Key Rating Drivers & Detailed Description

Weaknesses:

* Improving yet modest scale of operation: The Company's revenue
though improved to INR18.64 crore during fiscal 2021 as compared to
INR9.45 crore during fiscal 2020, the scale of operations has
remained at modest levels. Further, there has been sharp dip in
revenue in fiscal 2020 and revenue CAGR has been muted over the
past four years. Outstanding orders of over INR30 crore in hand
provide revenue visibility, nonetheless a consistent growth in
revenue remains critical and shall be monitored.

* Elongated working capital cycle: Operations are working capital
intensive. Estimated Gross current assets were at 455 days as of
March 31, 2021—driven, in turn, by receivables and inventory of
318 and 103 days, respectively—and are expected at 350-400 days
over the medium term. With expected growth in revenue, incremental
working capital requirements shall remain high over medium term
too.

* Average financial risk profile: Financial risk profile is
average, with estimated networth and gearing of INR6.91 crore and
2.01 times, respectively, as of March 31, 2021. Debt protection
metrics were subdued, with estimated interest coverage and net cash
accrual to total debt ratios at 1.47 times and 0.05 time,
respectively, in fiscal 2021. Improvement in key financial metrics
shall remain monitorable.

Strength:

* Extensive experience of the promoters and their funding support:
Benefits from the promoter's experience of more than a decade, and
his technological capabilities should continue to support the
business. SAPL has established its presence in supplying electronic
control systems, unmanned vehicles etc. mainly to Indian defense
sector and by virtue of it and the company obtains orders from
reputed customers.

SAPL also benefits from funding support from promoters which has
helped it in managing its working capital intensive operations

Liquidity: Stretched

Liquidity is stretched. Net cash accrual—expected at INR1.5-1.75
crore per annum over the medium term—will be tightly matched
against yearly debt obligation of INR1-1.5 crore. Utilization of
bank limit averaged a high 95% in the 6 months through June 2021.
Financial assistance expected from the promoter may, however,
support liquidity.

Outlook Stable

CRISIL Ratings believes SAPL will continue to benefit from its
promoter's extensive experience.

Rating Sensitivity factors

Upward factors

* Sustained and sharp growth in revenue and steady profitability
leading to cash accruals of over INR2 crore on consistent basis

* Improvement in working capital cycle and debt protection metrics

Downward factors

* Sharp dip in revenue and/or decline in operating margin leading
to cash accruals to debt repayment ratio of less than 1 time

* Further stretch in working capital cycle and weakening in
liquidity

Promoted by Mr. Atul Chaudhari, SAPL was established as a
partnership and later reconstituted as a private limited company.
It designs and manufactures electronic control systems, and caters
to naval applications. The company is registered with the
Directorate General of Quality Assurance of the Ministry of
Defence, Government of India, and other departments of the Indian
Navy, with a Proprietary Article Certification status.

TAPTI AGRO: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Tapti Agro
Industries (TAI) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit             1        CRISIL B/Stable (Issuer Not
                                    Cooperating)

   Term Loan              13.5      CRISIL B/Stable (Issuer Not
                                    Cooperating)

CRISIL Ratings has been consistently following up with AI for
obtaining information through letters and emails dated January 26,
2021 and July 9, 2021 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward-looking component.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of TAI, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on TAI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
TAI continue to be 'CRISIL B/Stable Issuer Not Cooperating'.

Incorporated in January 2017, TAI is promoted by Mr. Rahul Sao and
Mr. Dharamveer Juneja. The company operates 1200 tonnes crushed per
day (TCD) khandsari sugar plant in Betul district, Madhya Pradesh.

TRINETRA POULTRIES: CRISIL Moves INR0.04cr Loan Rating to B
-----------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with SEBI
guidelines, had migrated the rating of Trinetra Poultries Private
Limited (TPPL) to 'CRISIL B-/Stable Issuer Not Cooperating'.
However, the management has subsequently started sharing requisite
information, necessary for carrying out comprehensive review of the
rating. Consequently, CRISIL Ratings is migrating the rating on
bank facilities of TPPL to 'CRISIL B/Stable' from 'CRISIL B-/Stable
Issuer Not Cooperating'.

                        Amount
   Facilities        (INR Crore)   Ratings
   ----------        -----------   -------
   Proposed Fund-        0.04      CRISIL B/Stable (Migrated from
   Based Bank Limits               'CRISIL B-/Stable ISSUER NOT
                                   COOPERATING')

   Rupee Term Loan       6.61      CRISIL B/Stable (Migrated from
                                   'CRISIL B-/Stable ISSUER NOT
                                   COOPERATING')

The rating continues to reflect the company's exposure to inherent
risks in the poultry industry and to risk related to implementation
of its project, and its expected leveraged capital structure. These
weaknesses are partially offset by the extensive industry
experience of the promoters and adoption of latest machinery.

Key Rating Drivers & Detailed Description

Strength:

* Extensive industry experience of the promoters: The promoters
have experience of over 20 years in the poultry and allied
industries. This has given them an understanding of the dynamics of
the market, and enabled them to establish relationships with
suppliers and customers.

Weaknesses:

* Exposure to inherent risks in the poultry industry: The industry
is vulnerable to the outbreak of diseases, which impacts sales
volume and selling price, as well as production of healthy chicks.
The industry is also affected by seasonal demand, leading to
volatility in end product prices.

* Exposure to risks related to implementation of project: TPPL
commenced operations in November 2019. It will face considerable
demand risk as the industry is highly fragmented because of low
entry barriers with small capital and technological requirements.
Successful stabilization of operations at the unit will remain a
key rating sensitivity factor.

* Expected leveraged capital structure: The financial risk profile
will be constrained by high gearing and modest debt protection
metrics. The project gearing is aggressive at 140 times.

Liquidity: Stretched

Bank limit utilization is high at around 89.04 percent for the past
six months ended June-21. Cash accrual are expected to be over
INR1.5-1.74 Cr which are expected to sufficient against term debt
obligation of INR1.12-1.65 Cr over the medium term. The promoter
will provide USL in case of need to support the business. Current
ratio are healthy at 2.02 times on March 31, 2021.

Outlook Stable

CRISIL Ratings believes TPPL will continue to benefit from the
extensive experience of its promoters.

Rating Sensitivity factors

Upward factors:

* Sustained increase in revenue and stable operating margin,
leading to net cash accrual more than INR1. 66 crore

* Improvement in working capital cycle

Downward factors:

* Decline in revenue and in profitability leading to fall in net
cash accrual below INR0.75 crore

* Stretch in working capital cycle

Incorporated in 2018, TPPL set up a poultry layer farm with
installed capacity of 1 lakh chicks. It also sells eggs in West
Medinipur, West Bengal. The plant started operations in November
2019. TPPL is owned and managed by Mr. Milan Nandi and Ms Pinky
Nandi.

UNIVERSAL QUARTZ: CRISIL Assigns B+ Rating to INR38cr LT Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Universal Quartz and Natural
Stone Private Limited (UQNSPL).

                           Amount
   Facilities           (INR Crore)   Ratings
   ----------           -----------   -------
   Proposed Long Term
   Bank Loan Facility        38       CRISIL B+/Stable (Assigned)

   Proposed Short Term
   Bank Loan Facility        10       CRISIL A4 (Assigned)

The rating reflects UQNSPL's exposure to risks related to ongoing
project and its expected leveraged capital structure. These
weaknesses are partially offset by its extensive industry
experience of the promoters and adoption of latest machinery in
steady industry.

Key Rating Drivers & Detailed Description

Weakness:

* Exposure to risks related to ongoing project: UQNPL is scheduled
to commence its operations in April 2022. The company has already
infused funds up to INR15.4 crores in the form of unsecured loans.
The company is expected to fund the remaining equity and unsecured
loans by the end of this fiscal. Timely completion and successful
stabilization of its operations at the new unit will remain a key
rating sensitivity factor.    

* Expected leveraged capital structure: UQNPL is expected to have
an average financial risk profile with high gearing and moderate
debt protection metrics. The project is aggressively funded through
a debt/equity ratio by more than 3.5 times.

Strengths:

* Extensive industry experience of the promoters: The promoters
have an experience of over 30 years in the granite and marble
industry through various firms. This has given them an
understanding of the dynamics of the market and enabled them to
establish relationships with suppliers and customers.

* Adoption of latest machinery in steady industry: UQNPL is
currently in process of setting a new unit, the unit installed is
equipped with latest equipment & technology. Company has also
imported high-quality machineries from various countries.
Therefore, the adoption of latest machinery in the building
industry would support its business profile.

Liquidity: Stretched

The promoters are likely to extend support in the form of equity
and unsecured loans to meet working capital requirement and
repayment obligation.

Outlook Stable

CRISIL Ratings believes that UQNPL will benefit over the medium
term from its promoter extensive industry experience.

Rating Sensitivity factors

Upward factor

* Commencement of operation as per the plan and generation of
revenues of over INR90 crores in FY23.

* Stabilizes operations at its proposed plant in time and reports
significant revenue and profitability.

Downward factor

* Faces delay of more than 6 months in the commencement of its
operations.

* Generates significantly low cash accruals during its initial
phase of operations

UQNPL was incorporated in August 2020. It is setting up
manufacturing unit for producing different varieties of
slabs/engineered stone from quartz and related products. These
slabs will be customized according to the customer requirements. It
has a total capacity of 3370000 sq ft per annum and has its
facility located at Jaipur (Rajasthan)

UQNPL is promoted and directed by Mr. Narendra Agarwal, Mr. Ajay
Agarwal and Mrs Seema Agarwal. It is expected to commence its
operation from April 2022.

VANTAGE SPINNERS: CARE Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Vantage
Spinners Private Limited (VSPL) continues to remain in the 'Issuer
Not Cooperating' category.

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Bank       68.75      CARE D; ISSUER NOT COOPERATING
   Facilities                      Rating continues to remain
                                   under ISSUER NOT COOPERATING
                                   category

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated July 20, 2020, placed the
rating(s) of VSPL under the 'issuer non-cooperating' category as
VSPL 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. VSPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and email dated June 05,
2021, June 15, 2021, June 25, 2021.

In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).

Vantage Spinners Private Limited (VSPL) was incorporated on July
28, 2006, by Mr Potluru Mohana Murali Krishna, Mr Potluru Soma
Sekhar and Ms Nandamuri Meenalatha. VSPL is engaged in
manufacturing of cotton yarn (40s and 60s count) with an installed
capacity of 31,500 spindles. The company's manufacturing plant is
located at Nuzividu Mandalam in Krishna district, Andhra Pradesh.

VARSHIL PACKAGING: CRISIL Assigns B+ Rating to INR24cr Loans
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Varshil Packaging Private Limited
(VPPL).

                        Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Bank Guarantee         0.5       CRISIL A4 (Assigned)
   Cash Credit            7         CRISIL B+/Stable (Assigned)
   Term Loan              17        CRISIL B+/Stable (Assigned)

The rating reflects VPPL's modest scale of operation, working
capital intensive operations and below average financial profile.
These weaknesses are partially offset by its extensive industry
experience of the promoters and diversified end user industry
base.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operation: VPPL's business profile is constrained
by its scale of operations in the intensely competitive packaging
industry. Though with current expansion overall scale is expected
to improve in fiscal 2020 and same will be key rating sensitivity
factor over the medium term.

* Working capital intensive operations: Gross current assets were
at 149-261 days over the three fiscals ended March 31, 2021. Its
intensive working capital management is reflected in its gross
current assets (GCA) of 261 days as on March 31, 2021. Its's large
working capital requirements arise from its high debtor and
inventory levels. It is required to extend long credit period.
Furthermore, due to its business need, it holds large work in
process & inventory.

* Below average financial profile:  VPPL has below average
financial profile marked by gearing of 6 times and total outside
liabilities to adj tangible networth (TOL/ANW) of 8.51 times for
year ending on 31st March 2021. VPPL's debt protection measures
have also been at weak level in past due to high gearing and low
accruals from the operations. The interest coverage and net cash
accrual to total debt (NCATD) ratio are at 1.54 times and 0.04
times for fiscal 2021. VPPL debt protection measures are expected
to remain at similar level with high debt levels.

Strengths:

* Extensive industry experience of the promoters: The promoters
have an experience of over 10 years in packaging industry. This has
given them an understanding of the dynamics of the market and
enabled them to establish relationships with suppliers and
customers. Crisil believes that promoters experience will support
to stabilize existing capital expenditure.

* Diversified end user industry base: GPPL has long-standing
relationships with its customers and suppliers.  It caters to a
diversified end user industry base which includes pharma & medical,
FMCG, food & beverages, retail & branding, printing, etc.  A
diversified end user industry base allows it, in overcoming the
risk of slowdown in a particular industry and achieving higher
growth.

Liquidity: Stretched

Liquidity is stretched with expected cash accruals of INR0.96 - 4
crore against term debt obligation of INR3.2 - 3.9 crore over the
medium term. Bank lines are highly utilized over 90% for 12 months
ended March 2021. The current ratio is healthy at 1.44 times on
Marc h31, 2021.

Outlook Stable

CRISIL Ratings believe VPPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.

Rating Sensitivity factors

Upward factor

* Sustained improvement in scale of operation by 50% and sustenance
of operating margin, leading to higher cash accruals

* Improved financial risk profile with comfortable debt protection
matrices.

Downward factor

* Decline in net cash accruals below INR3 crore on account of
decline in revenue or operating profits.

* Stretch in working capital cycle

VPPL was incorporated in 2010. It is engaged in manufacturing of
multilayer films & other packing materials such as protection film,
laminated film roll, agriculture mulch film, surface printing film
and surface protection film etc. The company has a manufacturing
facility located in Mehsana- Gujarat and promoted by Mr. Bhavik
Patel, Mr. Chintan Patel, Mr. Sanjay Patel and Mr. Vipul Patel.

VODAFONE IDEA: Birla and Vodafone Fight to Save Joint Venture
-------------------------------------------------------------
Nikkei Asia reports that when Kumar Mangalam Birla, chairman of the
$46 billion in revenue Aditya Birla Group, walked into Indian
government offices in New Delhi last week with Vodafone Group CEO
Nick Read in tow, they had only one mission: to salvage their joint
venture Vodafone Idea from imminent financial collapse.

According to Nikkei Asia, the meeting was called because Vodafone
Idea, the mobile telecom company owned 27.6% by the Birla group and
44.3% by U.K.-listed Vodafone, will require a bailout package from
the Indian government and lenders if it is to survive.

Nikkei Asia relates that Mr. Birla, who quit as chairman of
Vodafone Idea in August, apprised top Indian government officials
of the group's sagging financial fortunes. He and Mr. Read lobbied
hard for the government to impose a price floor for mobile
services, so as to end a vicious price war, according to a person
familiar with the discussions. They also pressed the officials for
a moratorium on payments of dues owed to the government, and for
clarity on billions of dollars worth of other historic liabilities,
Nikkei Asia relays.

"I want to emphasize that without immediate active support from the
government on these three issues (certainly by July 2021), VIL's
financial situation will drive operations to an irretrievable point
of collapse," Mr. Birla wrote to the Indian government in June this
year. If Vodafone Idea, with a customer base of 273 million, is
allowed to fail, Indian consumers will be left with an effective
duopoly of Bharti Airtel and Reliance Jio, Nikkei Asia notes.

Both Vodafone and the Birla group have refused to invest any more
funds into their loss-making joint venture, citing the financial
damage from an adverse judgment by India's Supreme Court last year.
The ruling, on so-called adjusted gross revenues liabilities,
increased Vodafone Idea's AGR debt to the government to INR610
billion ($8.36 billion) as of March 31, including interest,
according to Nikkei Asia.

While the drop-dead date of July 2021 has passed, a reckoning is
inevitable -- and not far off. Telecom industry analysts point to
chunks of Vodafone Idea debt that will start maturing in December,
the report notes.

"The company's inability to raise funds and hike tariffs has put
the industry on the brink of a duopoly," the report quotes Pranav
Kshatriya, vice president at Edelweiss Securities as saying. "While
Vodafone Idea may be able to pay small sums to its creditors, the
payment of the nonconvertible debentures worth INR60 billion from
December to March next year will not be possible without a fresh
fund infusion or renegotiations with lenders."

Concessions from the Indian government on the AGR liabilities and
wireless spectrum dues payments are also necessary, considering
significant sums will be due by the quarter beginning in April,
Kshatriya added. "VIL's situation has considerably worsened, and
the government's intervention will be required to sustain the
market structure," he said.

If Vodafone Idea does go under, analysts predict Reliance Jio and
Bharti Airtel will gain enormously, Nikkei Asia relays.
Government-owned BSNL remains a small third-place player, and the
big two are better placed to swoop in and snap up Vodafone Idea's
customers. Bharti Airtel announced last week that it was fortifying
its balance sheet with a INR210 billion rights issue.

When Birla and Vodafone Group agreed in March 2017 to merge their
Indian mobile telecom businesses to create Vodafone Idea, both had
painted an extremely optimistic picture of the future, Nikkei Asia
recalls. The combined company, they said, would immediately become
India's leading telecommunications provider with almost 400 million
customers, a 35% customer market share and 41% revenue market
share. By September 2018, the merged entity's total subscriber base
was 435 million customers, more than the entire population of the
U.S.

But its fortunes reversed quickly as competition intensified and
the merged entity struggled to keep up with technological advances.
The entry of Reliance Industries, India's biggest conglomerate, in
2016 with the then-latest 4G technology and cheap data offers shook
up the market and quickly resulted in consolidation among rival
players.

By the time Vodafone Idea sorted out its merger blues, Reliance Jio
and Bharti Airtel had eaten into its market share, while the total
Indian mobile market remained constant at 1.1 billion subscribers,
Nikkei Asia states.

"There were a number of issues within Vodafone Idea, including the
clash of cultures between a multinational with a lavish expense
budget and a frugal Indian company. The merger did not bring in the
fruits it was supposed to," said a former chairman of a rival
telecom company who asked to remain anonymous.

Vodafone Idea Limited operates as a telecom service provider. The
Company offers 2G, 3G, and 4G mobile services, as well as mobile
payments, advanced enterprise offerings, and entertainment.
Vodafone Idea serves customers in India.




=====================
P H I L I P P I N E S
=====================

PHILIPPINE AIRLINES: Ch.11 Filing Cues Phil. Insolvency Law Review
------------------------------------------------------------------
Jovee Marie de la Cruz of Business Mirror reports that the Chapter
11 filing of the Philippine Airlines prompted the review of the
Philippine Insolvency Law.

The Philippine Airlines (PAL) filed for Chapter 11 bankruptcy in
the United States.

A leader of the House of Representatives has said the Lower Chamber
will review the Philippine bankruptcy law to ready the country for
future crises.

House Committee on Ways and Means Chairman Joey Sarte Salceda, in a
statement, said a review of Republic Act 10142 or the Financial
Rehabilitation and Insolvency Act (Fria) is necessary in light of
anticipated insolvencies post-Covid-19.  PAL becomes one of the
largest Filipino companies to file for a court-assisted
rehabilitation program under the Chapter 11 proceedings in the
U.S.

During a Chapter 11 proceeding, the court will help a business
restructure its debts and obligations.  In most cases, the firm
remains open and operating.

According to Salceda, a similar measure under Philippine law exists
under Chapter 2 of the Fria; but "given the serial slowness of the
country's judicial process, the process might come too late."

The lawmaker said "Super Chapter 2" amendment under Fria, with
trigger mechanisms supervised by the Financial Stability
Coordination Council (FSCC), would be a system ready for future
crises.

"[It would be] something like a safety valve. You don't want to
have strategic companies like PAL closing down because the
resulting economic scars could be permanent," Salceda said. "It's
very hard to rebuild a major employer and economic machine that has
been sold off for parts."

He said his team is now studying the matter very closely and will
file a measure as soon as possible.

"The problem with both the US and the Philippine bankruptcy laws,
which are based on the American model, is that they are not
prepared for mass insolvency situations such as Covid-19," Salceda
said.

"The [current bankruptcy law] is only prepared to deal with
bankruptcies where the primary cause is mismanagement or the
company's private [and] individual circumstances.  In the case of
Covid-19, the problem is systemic," the solon added. "Collaterals
mandated under Philippine law could be valued at 'fire sale' prices
during a crisis, making repayment much harder.  The result is,
instead of rehabilitation as an entire business, the businesses
might just be sold off piece by piece.  That is very bad for the
economy's long-term productive capacity."

Under the Fria, a Philippines court will restructure the debt
payments to allow for a longer period of repayment.  Suspended
payment bankruptcies are allowed when the debtor has the collateral
to cover the debt but can't meet payments by their due date, the
debtor presents a restructuring payment plan that is both viable
and agreeable to the lender, and creditors or lenders who hold 60
percent of more of the debt liability meet and jointly agree on the
debtor's proposed repayment plan.

                        'Super Chapter 2'

SALCEDA said he wants something of a "Super Chapter 2" mechanism
that he proposed under the Accelerated Recovery and Investments
Stimulus for the Economy Act.

"We appoint a government-selected supervisor. You would usually
keep management in place, and give more consideration to workers
and less to creditors than in conventional bankruptcies. For
strategic companies, you would inject money in return for shares,
perhaps as convertibles, so that the Filipino taxpayers could get a
piece of the upside upon recovery," Salceda said.

"It probably should not be court-appointed. In the case of a
crisis, it may be better to have it submitted to the Financial
Stability Coordination Council who has more competence to deal with
system-wide risks," Salceda added.

Meanwhile, Salceda said the proposed Government Financial
Institutions Unified Initiatives to Distressed Enterprises for
Economic Recovery (Guide) Act also has components of that
proposal.

"But I hope the Senate releases that measure soon. But it's best
if we institutionalize this system-wide bankruptcy system in our
FRIA Law so that companies can make better use of it," he said.

"The problem with FRIA is that the consequences could be dire -- in
your credit line, your reputation -- because the process is
individualized. The law makes bankruptcy look like your personal
fault, when in the case of Covid-19, no one could have anticipated
this crisis," Salceda added.

                        About Philippine Airlines

Philippine Airlines, Inc., is the flag carrier of the Philippines
and the country's only full-service network airline. PAL was the
first commercial airline in Asia and marked its 80th anniversary in
March 2021. PAL's young fleet of Boeing 777s, Airbus A350s, Airbus
A330s, Airbus A321s and De Havilland DHC Q400 aircraft operate out
of hubs in Manila, Cebu and Davao to 29 destinations in the
Philippines and 32 destinations in Asia, North America, Australia,
Europe and the Middle East. PAL was rated a 4-Star Global Airline
by Skytrax in 2018 and a 5-Star Major Airline by the Association of
Airline Passengers (APEX) in 2020, and was likewise voted the
World's Most Improved Airline in the 2019 Skytrax worldwide
passenger survey with a ranking of 30th best airline in the world
On Sept. 3, 2021, Philippine Airlines, Inc. (PAL) filed a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 21-11569).

As of July 31, 2021, the Debtor's overall assets and liabilities
were approximately $4.1 billion and $6.07 billion, respectively.

The Honorable Shelley C. Chapman is the case judge.

The Debtor tapped Debevoise & Plimpton LLP as general bankruptcy
counsel; Norton Rose Fulbright as aircraft counsel; and Seabury
Securities LLC and Seabury International Corporate Finance LLC as
restructuring advisor and investment banker. Angara Abello
Concepcion Regala & Cruz (ACCRA) is acting as legal advisor in the
Philippines.  Kurtzman Carson Consultants LLC is the claims agent.


PHILIPPINE AIRLINES: Filing Won't Affect Passengers, Employees
--------------------------------------------------------------
According to the Philippine News Agency, flag carrier Philippine
Airlines (PAL) on Sept. 4 said restructuring will not affect its
passengers and employees.

The airline has voluntarily filed for a pre-arranged restructuring
under the US Chapter 11 process in the Southern District of New
York to implement the consensual restructuring plan.  A Chapter 11
bankruptcy allows a company to stay in business and restructure its
obligations.

In a statement, PAL said the parallel filing would be made for
recognition in the Philippines under the Financial Insolvency and
Rehabilitation (FRIA) Act of 2010.

This plea, which requires a US court approval, would provide over
USD2 billion payment reductions and other changes from the majority
of lessors, lenders, and other creditors.

At least USD505 million infusion via equity and debt will come from
its majority shareholder.

PAL has arranged for USD150 million of additional debt financing
from global private investors to facilitate post-restructuring
activities.

The trade creditors and suppliers are expected to be unimpaired by
the restructuring plan, PAL said, adding that passengers and
employees will also be unaffected by the restructuring.

"PAL will continue to operate flights in the normal course of
business in accordance with safety regulations, and the company
expects to continue to meet its current financial obligations
throughout this process to employees, customers, the government,
and its lessors, lenders, suppliers, and other creditors," the
statement read.

Business operations would continue as usual during restructuring.

As the carrier expects the US court's approval of its plea, PAL
will continue to gradually increase its domestic and international
flight operations.

It plans to build up flight frequencies on key regional and
long-haul routes, and also expand domestic networks from its hubs
in Manila and Cebu.

Passengers' valid tickets and vouchers, "Mabuhay miles" and
benefits will still be honored, PAL said, while also reaffirming to
fulfill refund obligations.

Passenger and cargo flights will continue to operate, subject to
demand and travel restrictions.

PAL will also continue to operate special all-cargo flights to
transport vaccines, and medical supplies. It will also continue to
work with the Philippine government to mount repatriation.

"We are grateful to our lenders, aviation partners and other
creditors for supporting the plan, which empowers PAL to overcome
the unprecedented impact of the global pandemic that has
significantly disrupted businesses in all sectors, especially
aviation, and emerge stronger for the long-term," PAL chairman
Lucio Tan said.

                        About Philippine Airlines

Philippine Airlines, Inc., is the flag carrier of the Philippines
and the country's only full-service network airline. PAL was the
first commercial airline in Asia and marked its 80th anniversary in
March 2021. PAL's young fleet of Boeing 777s, Airbus A350s, Airbus
A330s, Airbus A321s and De Havilland DHC Q400 aircraft operate out
of hubs in Manila, Cebu and Davao to 29 destinations in the
Philippines and 32 destinations in Asia, North America, Australia,
Europe and the Middle East. PAL was rated a 4-Star Global Airline
by Skytrax in 2018 and a 5-Star Major Airline by the Association of
Airline Passengers (APEX) in 2020, and was likewise voted the
World's Most Improved Airline in the 2019 Skytrax worldwide
passenger survey with a ranking of 30th best airline in the world
On Sept. 3, 2021, Philippine Airlines, Inc. (PAL) filed a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 21-11569).

As of July 31, 2021, the Debtor's overall assets and liabilities
were approximately $4.1 billion and $6.07 billion, respectively.

The Honorable Shelley C. Chapman is the case judge.

The Debtor tapped Debevoise & Plimpton LLP as general bankruptcy
counsel; Norton Rose Fulbright as aircraft counsel; and Seabury
Securities LLC and Seabury International Corporate Finance LLC as
restructuring advisor and investment banker. Angara Abello
Concepcion Regala & Cruz (ACCRA) is acting as legal advisor in the
Philippines.  Kurtzman Carson Consultants LLC is the claims agent.


PHILIPPINE AIRLINES: Lucio Tan Promises Full Support
----------------------------------------------------
Miguel R. Camus, writing for the Philippine Daily Inquirer, reports
that Philippine Airlines is hoping for a swift comeback from
corporate restructuring as billionaire Lucio Tan, the controlling
shareholder of the airline since 1993, said his family would fully
back the flag carrier amid heavy financial losses.

The airline had won the support of most of its creditors and
aircraft lessors to forgo debts worth over PHP100 billion,
formalized over the weekend through a Chapter 11 plea in the United
States.

PAL chief financial officer Nilo Thaddeus P. Rodriguez said in a
video message explaining the restructuring they expected to exit
the Chapter 11 process "in a few months."

Tan, who is PAL chair and CEO appeared later in the video beside
his grandson and PAL director, Lucio Tan, III.

The son of the late Lucio Tan Jr., who was at the helm of the flag
carrier when he died in 2019, the younger Tan delivered his
87-year-old grandfather's message assuring all stakeholders,
passengers, and employees that PAL will "keep flying, now and long
into the future."

"It became my commitment of a lifetime to build the airline into a
flag carrier that all Filipinos could look up to with pride," Tan
said.

"On the 80th anniversary of the Philippine Airlines, my family and
I make this renewed commitment to you: We will complete the
recovery of the Philippine Airlines," he said.

"We firmly support the management and employees of the Philippine
Airlines as they undergo the restructuring process. Together, we
will deliver an airline with a reorganized balance sheet, a
streamlined workforce and a renewed sense of mission," he added.

Tan said that PAL, which has Japan's ANA Holdings as a minority
shareholder, would also continue to support jobs and livelihoods
apart from its crucial mission to link the Philippines to the rest
of the world.

Saddled with growing financial losses before the pandemic, PAL was
forced into survival nmode when the COVID-19 arrived in early 2020,
disrupting tens of thousands of flights that affected over a
million passengers.

Recounting the extraordinary measures PAL took to stretch dwindling
finances, company president Gilbert Santa Maria said lessors agreed
to defer $360 million in obligations while Tan provided $130
million in "emergency liquidity."

The company also raised $70 million after selling a non-core asset
and employees pitched in $60 million through voluntary pay cuts and
extended leaves without pay.

Dexter Lee, PAL senior vice president for strategy and planning,
said they also plan to boost domestic flights and add China and
Australia trips once restrictions ease. The airline will also
continue to offer codeshare and interline partnerships with other
commercial carriers.

                        About Philippine Airlines

Philippine Airlines, Inc., is the flag carrier of the Philippines
and the country's only full-service network airline. PAL was the
first commercial airline in Asia and marked its 80th anniversary in
March 2021. PAL's young fleet of Boeing 777s, Airbus A350s, Airbus
A330s, Airbus A321s and De Havilland DHC Q400 aircraft operate out
of hubs in Manila, Cebu and Davao to 29 destinations in the
Philippines and 32 destinations in Asia, North America, Australia,
Europe and the Middle East. PAL was rated a 4-Star Global Airline
by Skytrax in 2018 and a 5-Star Major Airline by the Association of
Airline Passengers (APEX) in 2020, and was likewise voted the
World's Most Improved Airline in the 2019 Skytrax worldwide
passenger survey with a ranking of 30th best airline in the world
On Sept. 3, 2021, Philippine Airlines, Inc. (PAL) filed a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code
(Bankr. S.D.N.Y. Case No. 21-11569).

As of July 31, 2021, the Debtor's overall assets and liabilities
were approximately $4.1 billion and $6.07 billion, respectively.

The Honorable Shelley C. Chapman is the case judge.

The Debtor tapped Debevoise & Plimpton LLP as general bankruptcy
counsel; Norton Rose Fulbright as aircraft counsel; and Seabury
Securities LLC and Seabury International Corporate Finance LLC as
restructuring advisor and investment banker. Angara Abello
Concepcion Regala & Cruz (ACCRA) is acting as legal advisor in the
Philippines.  Kurtzman Carson Consultants LLC is the claims agent.




=================
S I N G A P O R E
=================

ATZ INTERNATIONAL: Creditors' Proofs of Debt Due on Oct. 13
-----------------------------------------------------------
Creditors of ATZ International Private Limited and OGX Solution (S)
Pte. Ltd., which is in voluntary liquidation, are required to file
their proofs of debt by Oct. 13, 2021, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 31, 2021.

The company's liquidators are:

         Don M Ho
         David Ho Chjuen Meng
         Avery Corporate Advisory Pte. Ltd.
         63 Market Street
         #05-01A Bank of Singapore Centre
         Singapore 048942


NANO PRESS: Court to Hear Wind-Up Petition on Sept. 24
------------------------------------------------------
A petition to wind up the operations of Nano Press Pte Ltd will be
heard before the High Court of Singapore on Sept. 24, 2021, at
10:00 a.m.

Maybank Singapore Limited filed the petition against the company on
Sept. 3, 2021.

The Petitioner's solicitors are:

         M/s Advent Law Corporation
         111 North Bridge Road
         #25-03 Peninsula Plaza
         Singapore 179098


VIRTUAL OVERSEAS: Court to Hear Wind-Up Petition on Sept. 17
------------------------------------------------------------
A petition to wind up the operations of Virtual Overseas Pte Ltd
will be heard before the High Court of Singapore on Sept. 17, 2021,
at 10:00 a.m.

Union Bank of India (Hong Kong Branch) filed the petition against
the company on Aug. 26, 2021.

The Petitioner's solicitors are:

         Oon & Bazul LLP
         36 Robinson Road
         #08-01/06, City House
         Singapore 068877




=================
S R I   L A N K A
=================

SRI LANKA: Faces Severe Foreign Exchange Crisis, Minister Says
--------------------------------------------------------------
The Times of India reports that Sri Lanka is facing a severe
foreign exchange crisis as the island nation, which heavily depends
on tourism and tea exports, was battered by the coronavirus
pandemic, finance minister Basil Rajapaksa has said.

Rajapaksa said state coffers also suffered huge revenue losses due
to the Covid-19 outbreak, TOI relates.

According to the report, Rajapaksa told Parliament on Sept. 7 that
Sri Lanka was facing a severe external crisis as well as a domestic
crisis with revenues falling and expenses continuing to rise.

"Our country is facing a severe foreign exchange crisis," he said,
adding that data from the central bank shows the country's net
foreign exchange reserves are close to zero, which means almost all
of its reserves are borrowed.

"Due to Covid-19, the government's revenue so far for this year has
fallen between 1500-1600 billion rupees from the estimated amount,"
the younger brother of President Gotabaya Rajapaksa and Prime
Minister Mahinda Rajapaksa, told the House.

The Sri Lankan economy - which depends heavily on tourism and
exports of commercial crops like tea - was battered by the
pandemic, as travel restrictions hit tourism, according to the
report.

Its GDP contracted by a record 3.6 per cent in 2020 and its foreign
exchange reserves plunged by over a half in one year through July
to just $2.8 billion, the report discloses. This has led to a 9 per
cent depreciation of the Sri Lankan rupee against the dollar over
the past one year, making imports more expensive.

The government faces accusations that it was printing money to keep
interest rates low.

TOI adds that Rajapaksa said the revenues from customs had fallen
sharply.

"The main source of government income has been from vehicle
imports," the report quotes Rajapaksa as saying. "We have banned
importing vehicles for the past one and half years.  

"Because of difficulties in finding foreign exchange. So the
revenue from the customs dropped to a low level this year," he
said.

He said the pandemic lockdowns caused reduced Excise Department and
Value Added Tax from the Department of Inland Revenue.

"When there is a lockdown, the revenue from direct and indirect
taxes reduced by 75-80 per cent on a daily basis," the finance
minister said.

"From the expenditure side, the government spending has increased
because we did not cut any allowances or salaries of state sector
employees.

He said the government had paid for 80 per cent of the Covid-19
vaccines so far, the report relays.

He said the external sector is "also facing a similar crisis".

The drop in tourism revenue could be between $4 billion to
$5 billion.

Despite receiving $800 million special drawing rights allocation
from the International Monetary Fund (IMF), Rajapaksa did not say
if the government would look for an IMF bailout, TOI discloses.

He said the government would approach the World Bank and the Asian
Development Bank (ADB) for support.

"The World Bank and Asian Development Bank have been particularly
helpful, the government will continue to borrow from them," he
said.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.

Copyright 2021.  All rights reserved.  ISSN: 1520-9482.

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