/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/180831.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, August 31, 2018, Vol. 21, No. 173 Headlines A U S T R A L I A ATHESSA CONSTRUCTIONS: Second Creditors' Meeting Set for Sept. 6 HI VOLTAGE KARTS: Second Creditors' Meeting Set for Sept. 6 LSA PEOPLE: First Creditors' Meeting Set for Sept. 5 NIEDERTHAELER HOF: First Creditors' Meeting Set for Sept. 5 ORBITAL TRAFFIC: First Creditors' Meeting Set for Sept. 7 POWER CONCRETE: First Creditors' Meeting Set for Sept. 6 SAPPHIRE TRUST XIX 2018-2: Moody's Gives (P)B1 Rating to F Notes SPEEDCAST INTERNATIONAL: S&P Affirms 'BB-' ICR, Outlook Stable WEST PERTH FOOTBALL: DOCA to Save Football Club C H I N A CHINA AOYUAN: Fitch Rates New USD & SGD Senior Notes 'BB-(EXP)' GEELY AUTOMOBILE: Moody's Affirms Ba1 CFR, Alters Outlook to Pos. YESTAR HEALTHCARE: S&P Affirms 'BB-' ICR, Outlook Stable I N D I A AKAR CREATIONS: CRISIL Migrates D Rating to Not Cooperating C. K. VELU: CRISIL Migrates B+ Rating From Not Cooperating DINESH OILS: Ind-Ra Maintains D Issuer Rating in Non-Cooperating GEE EMM: Ind-Ra Maintains 'B+' Issuer Rating in Non-Cooperating HARO GOURI: CRISIL Migrates B Rating to Not Cooperating JAYACHANDRAN INDUSTRIES: CRISIL Withdraws B+ Loan Rating JBF INDUSTRIES: To Sell Petrochemical Unit to KKR and Co. JET AIRWAYS: Gets $300MM as Lease Incentives & Debt From Banks K G R POULTRY: CRISIL Migrates B+ Rating to Not Cooperating LANCY CONSTRUCTIONS: CRISIL Migrates D Rating to Non-Cooperating M. E. ENERGY: CRISIL Migrates B+ Rating to Not Cooperating MARS PLYWOOD: CRISIL Migrates D Rating to Not Cooperating NATIONAL AUTO: CRISIL Migrates B Rating to Not Cooperating NHS INDUSTRIES: CRISIL Migrates B- Rating to Not Cooperating P P RUBBER: CRISIL Migrates B+ Rating to Not Cooperating PLANET AUTOMOTIVE: CRISIL Migrates B- Rating to Not Cooperating POWER MAX: CRISIL Lowers Rating on INR23.15cr Loan to D PRAKASH DISTILLERY: CRISIL Assigns B Rating to INR16.68cr Loan PRUDENTIAL SUGAR: CRISIL Migrates C Rating to Not Cooperating PUDUCHERRY CANCER: CRISIL Migrates D Rating to Not Cooperating PUNJAB METAL: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating R.K. PULSES: CRISIL Migrates 'B' Rating to Not Cooperating RAJ RAJESHWARI: CRISIL Migrates B Rating to Not Cooperating RAJ POLY: CRISIL Lowers Rating on INR14cr Cash Loan to D RAJENDRAGURU GROUP: CRISIL Migrates B- Rating to Not Cooperating RAKESH TEXTILES: CRISIL Migrates B Rating to Not Cooperating RAMNIK POWER: CRISIL Migrates B- Rating to Not Cooperating SAKA EMBROIDERY: Ind-Ra Moves BB- Rating to Non-Cooperating SARA CREATION: Ind-Ra Maintains 'BB-' Rating in Non-Cooperating SHAKTI COMPONENT: Ind-Ra Maintains BB- Rating in Non-Cooperating SHIVA POLYTEX: CRISIL Assigns B+ Rating to INR7.3cr LT Loan SMART AGRO: CRISIL Migrates B Rating to Not Cooperating Category SRI ANNAPURNA: CRISIL Assigns B+ Rating to INR4.5cr LT Loan TRIDENT METAL: CRISIL Migrates B+ Rating to Not Cooperating USHA CUBALS: CRISIL Lowers Rating on INR12cr Cash Loan to D * INDIA: 20 New NPA Accounts to Go to NCLT as RBI Deadline Ends I N D O N E S I A DSSP POWER: Fitch Assigns 'B+(EXP)' Rating to New USD350MM Notes J A P A N OTSUKA KAGU: JPY2.03BB 1H Loss, Warns of Potential Insolvency N E W Z E A L A N D MERCER GROUP: Posts NZ$7.9MM Net Loss For Year Ended June 30 S I N G A P O R E GREAT HORIZON: Moody's Rates New $350MM Sr. Secured Notes 'B1' - - - - - ================= A U S T R A L I A ================= ATHESSA CONSTRUCTIONS: Second Creditors' Meeting Set for Sept. 6 ---------------------------------------------------------------- A second meeting of creditors in the proceedings of Athessa Constructions Pty Ltd has been set for Sept. 6, 2018, at 3:00 p.m. at boardroom of Servcorp, Level 26, 44 Market Street, in Sydney, NSW. 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. 5, 2018, at 4:00 p.m. Gavin Moss and Henry Kwok of Chifley Advisory were appointed as administrators of Athessa Constructions on Aug. 2, 2018. HI VOLTAGE KARTS: Second Creditors' Meeting Set for Sept. 6 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Hi Voltage Karts Pty Ltd has been set for Sept. 6, 2018, at 4:00 p.m. at the offices of Australian Institute of Company Directors, at Level 26, 367 Collins Street, in Melbourne, Victoria, on Sept. 6, 2018. 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. 5, 2018, at 4:00 p.m. Grahame Robert Ward and Thyge Trafford-Jones of Mackay Goodwin were appointed as administrators of Hi Voltage on Aug. 2, 2018. LSA PEOPLE: First Creditors' Meeting Set for Sept. 5 ---------------------------------------------------- A first meeting of the creditors in the proceedings of LSA People Pty. Ltd. will be held at the offices of Veritas Advisory, at Suite 2, Level 5, 123 Pitt Street, in Sydney, NSW, on Sept. 5, 2018, at 10:00 a.m. Steve Naidenov and Vincent Pirina of Veritas Advisory were appointed as administrators of LSA People on Aug. 24, 2018. NIEDERTHAELER HOF: First Creditors' Meeting Set for Sept. 5 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of: -- Niederthaeler Hof German Rhine Wines Pty Limited -- Vicomte Bernard De Romanet Pty Limited -- Golden Grape Estate Pty Limited will be held at the offices of Level 22, 19 Martin Place, in Sydney, NSW, on Sept. 5, 2018, at 11:00 a.m. Paul Gerard Weston of Pitcher Partners was appointed as administrator of Niederthaeler Hof on Aug. 24, 2018. ORBITAL TRAFFIC: First Creditors' Meeting Set for Sept. 7 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Orbital Traffic Management (Aust.) Pty Limited will be held at the offices of Woodgate & Co., Level 8, 6-10 O'Connell Street, in Sydney, NSW, on Sept. 7, 2018, at 10:00 a.m. Giles Geoffrey Woodgate of Woodgate & Co was appointed as administrator of Orbital Traffic on Aug. 28, 2018. POWER CONCRETE: First Creditors' Meeting Set for Sept. 6 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Power Concrete Pty Ltd will be held at the offices of Cor Cordis One Wharf Lane, Level 20, 171 Sussex Street, in Sydney, NSW, on Sept. 6, 2018, at 10:00 a.m. Jason Tang and Ozem Kassem of Cor Cordis were appointed as administrators of Power Concrete on Aug. 27, 2018. SAPPHIRE TRUST XIX 2018-2: Moody's Gives (P)B1 Rating to F Notes ---------------------------------------------------------------- Moody's Investors Service has assigned the following provisional ratings to the notes to be issued by Permanent Custodians Limited as trustee of Sapphire XIX Series 2018-2 Trust. Issuer: Sapphire XIX Series 2018-2 Trust AUD135.0 million Class A1 Notes, Assigned (P)Aaa (sf) AUD75.0 million Class A2a Notes, Assigned (P)Aaa (sf) AUD38.1 million Class A2b Notes, Assigned (P)Aaa (sf) AUD29.7 million Class B Notes, Assigned (P)Aa2 (sf) AUD6.9 million Class C Notes, Assigned (P)A2 (sf) AUD6.0 million Class D Notes, Assigned (P)Baa2 (sf) AUD4.8 million Class E Notes, Assigned (P)Ba2 (sf) AUD2.1 million Class F Notes, Assigned (P)B1 (sf) The AUD2.4 million Class G Notes is not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity. The deal is an Australian non-conforming residential mortgage- backed securities (RMBS) transaction secured by a portfolio of near prime and non-conforming residential mortgage loans. All receivables were originated by Bluestone Group Pty Limited or Bluestone Mortgages Pty Limited (Bluestone) and are serviced by Bluestone Servicing Pty Limited (Bluestone Servicing). RATINGS RATIONALE The provisional ratings take into account, among other factors, the evaluation of the underlying receivables and their expected performance, the evaluation of the capital structure and credit enhancement provided to the notes, the availability of excess spread over the life of the transaction, the liquidity facility in the amount of 2.0% of the note balance, the legal structure, and the credit strength and experience of Bluestone Servicing as the servicer. - Moody's MILAN CE - representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario - is 17.3%. Moody's expected loss for this transaction is 2.0%. Key transactional features are as follows: - Whilst the Class A1 and Class A2 Notes rank sequentially in relation to interest and charge-offs, they rank pari passu in relation to principal throughout the life of the transaction (albeit, Class A2a and A2b rank sequentially in relation to principal). Principal repayments will be allocated pro-rata, based on the stated amount of the notes. This feature reduces the absolute amount of credit enhancement available to the Class A Notes. - Class B to Class F notes will start receiving their pro-rata share of principal if step-down conditions are met. - Permitted further advances can be funded within the trust, which could lead to a deterioration in the credit quality of the pool. Further advances are subject to certain conditions. Further advances will be funded through principal collections. - A retention mechanism will be used to divert excess available income towards the repayment of the most junior class of rated notes outstanding. The retention amount will be up to 0.05% of the current outstanding pool balance per month, and up to a total captured amount of AUD750,000. At the same time, the trustee will issue Class RM Notes, equivalent to the retention amount allocated, leaving subordination levels unchanged. Key pool features are as follows: - While the portfolio has a reasonably high weighted-average scheduled loan-to-value (LTV) of 69.2%, there are no loans in the pool with a scheduled LTV above 85.0%. - Investment and interest-only loans represent 21.6% and 9.9% of the pool, respectively. - Based on Moody's classifications, the portfolio contains 30.7% exposure to borrowers with prior credit impairment (default, judgment or bankruptcy). Moody's assesses these borrowers as having a significantly higher default probability. - Based on Moody's classifications, the portfolio contains 59.3% of loans granted on the basis of alternative income documentation, with a further 2.6% granted on the basis of low income documentation. - Based on Moody's classifications, around 57.1% of the loans in the portfolio were extended to self-employed borrowers. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in September 2017. Factors That Would Lead to an Upgrade or Downgrade of the Ratings: Factors that could lead to an upgrade of the notes include a rapid build-up of credit enhancement, due to sequential amortization or better-than-expected collateral performance. The Australian jobs market and the housing market are primary drivers of performance. A factor that could lead to a downgrade of the notes is worse- than-expected collateral performance. Other reasons that could lead to a downgrade include poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties or lack of transactional governance and fraud. SPEEDCAST INTERNATIONAL: S&P Affirms 'BB-' ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' issuer long-term credit rating on Speedcast International Ltd. (Speedcast). S&P said, "The outlook is stable. At the same time, we affirmed the 'BB-' issue rating on the secured first-lien US$425 million term loan B (TLB) issued by Speedcast's subsidiary SpeedCast Communications Inc. We also revised the recovery rating on the TLB to '4' (45%) from '3' (50%) to reflect the upsized amount of the TLB to US$600 million." S&P affirmed the ratings on Speedcast to reflect its view that the company can debt fund its proposed acquisition of Globecomm Systems Inc. within the 'BB-' rating level. However, the acquisition will leave Speedcast with limited headroom over the next 12 months to withstand further deterioration in market conditions, which have worsened over the past six months ended June 30, 2018. In addition, the company has very limited rating buffer to accommodate any further debt-funded acquisitions. The rating reflects Speedcast's leading position in the niche remote satellite services market, the industry's modest barriers to entry, and variable end-market demand. Other rating factors include the company's capital-light operating model, limited track record in its current business configuration, likelihood of ongoing corporate activity, and supportive financial policies at the 'BB-' level. S&P said, "We view the acquisition of Globecomm as consistent with Speedcast's existing operating strategy. Globecomm is the seventh- largest independent teleport operator globally, with 18 teleport facilities across 10 countries, servicing commercial and government clients equally. Globecomm is broadly aligned with Speedcast's government business, which was bolstered by the acquisition of Ultisat in November 2017. "In our view, Globecomm's forecast earnings contribution is somewhat small at US$16 million, although material synergies could potentially occur over the next 18 months. In addition, recent earnings volatility suggests that Globecomm's business model is somewhat challenged. The acquisition is subject to regulatory approval. The consolidated group would increase Speedcast's revenues to US$746 million based on the results as of Dec. 31, 2017. Speedcast intends to grow its revenue to US$1 billion over the next three years." The estimated purchase price is about US$145 million on a cash and debt-free basis, net of purchase price adjustments. Globecomm's Hauppauge facility will be sold for US$20 million and leased back -- 50% of which will be payable to the vendors and the remaining 50% to be retained by Speedcast. Speedcast will fund the acquisition via a fully-underwritten U$175 million add-on to its existing US$425 million TLB. Some of the proceeds will also be used to partly repay the revolving facility. S&P estimates that Speedcast's debt-to-EBITDA ratio (after S&P Global Ratings' adjustments) will approach 4x on a pro-forma basis. Total adjusted debt will increase to about US$700 million, comprising the US$600 million term loan, US$25 million drawn revolving facility, and about US$75 million of operating lease adjustments and unamortized borrowing costs. The higher debt will leave Speedcast with limited buffer to withstand any further deterioration in market conditions. Speedcast's energy business (25% of the service revenue for the six months ended June 30, 2018) has experienced difficult trading conditions over the past few years with higher customer churn than the company expected, pricing pressures, and a delay in market recovery. That said, S&P believes infrastructure and project investments are showing signs of a recovery. Speedcast's maritime business (35% of service revenue) has a relatively more stable end-market exposure, albeit with lower margins and, in our opinion, lower barriers to entry. The company is also exposed to the government and defense market, which we view as having reasonable growth prospects as a result of the company's Ultisat and Globecomm acquisitions. S&P said, "We continue to believe that Speedcast intends to manage its adjusted debt-to-EBITDA ratio below 3.0x in the absence of a major corporate activity. The company is committed to future deleveraging and targets net debt to EBITDA between 2.5x and 3.0x on a like-for-like basis (company's measure) within 12 months of the acquisition. The company also expects to manage leverage within this range even with bolt-on acquisitions. "The stable outlook reflects our view that the stable performance of Speedcast's capital-light operating model should enable the company to deleverage to a debt-to-EBITDA ratio of below 3.0x in the absence of further corporate activity." The debt-funded acquisition of Globecomm provides Speedcast with very limited financial headroom to pursue additional debt-funded strategic acquisitions and limited buffer against variable end- market demand. S&P said, "We could lower the rating if the company's adjusted debt-to-EBITDA ratio exceeds 4.0x as a result of a major corporate activity, or sustains materially above 3.0x under normal operating conditions. A decision to increase leverage beyond this level would undermine our assessment of the company's future financial policy commitments. "We could also lower the rating if higher competition reduces Speedcast's market position in its energy or maritime segments. "We consider an upgrade to be unlikely over the next few years given the uncertain operating environment and relatively high debt level. Over time, upward rating action could occur if Speedcast were to materially increase its scale and earnings diversity. We could also consider rating the rating if the company committed to a robust set of financial policies that sustains a debt-to-EBITDA ratio of less than 3.0x, including during instances of major corporate activity." Speedcast is a global satellite service provider based in Australia. WEST PERTH FOOTBALL: DOCA to Save Football Club ----------------------------------------------- John Townsend at The West Australian reports that West Perth creditors will be paid four cents in the dollar if they accept an arrangement that will save WA's oldest football club from liquidation. West Perth Football Club, known as the Falcons, went into administration last month after reporting crippling debts of AUD790,000. But administrator Korda-Mentha has recommended creditors accept the return as part of a deed of company arrangement with the WA Football Commission that would see the club return to normal trading. The West Australian says creditors had been due to meet at West Perth on Aug. 27 to vote on the scheme before the meeting was adjourned to Sept. 3 at the request of the club's landlord VenuesWest. Under the proposed DOCA, the WAFC will: * loan AUD250,000 to West Perth; * be able to nominate the West Perth board; * write off a AUD58,500 emergency loan from earlier this year; and * ensure all West Perth employees are retained without loss of entitlements. The West Australian relates that creditors can accept the DOCA or wind up the 127-year-old club and get nothing back when they vote on the recommendations. They could also end the administration and return the club to its elected board and management but KordaMentha said that was "not a commercial proposition at this stage". Instead, the club is set to operate under a "creditors' trust" in which KordaMentha partners John Bumbak and Richard Tucker remain trustees and DOCA administrators, according to the report. December's annual elections, when president Scott Ballem and his board are due for re-election, may be held over until the club is financially sound, The West Australian states. Joondalup Arena landlord VenuesWest, the Australian Taxation Office and gear supplier ISC are the club's biggest creditors and account for about AUD500,000 of the outstanding debt, the report discloses. But the KordaMentha report provided to creditors on Aug. 26 identified AUD530,000 owed to unsecured creditors, with just AUD24,000 available for payment. "It is our opinion that it would be in creditors' best interests for (West Perth) to execute the DOCA proposed by the WAFC," the report cited KordaMentha as noting. "We do not expect there to be a dividend to creditors in a liquidation scenario." Creditors include coach Bill Monaghan and 27 players, the report discloses. According to The West Australian, the report to creditors showed that KordaMentha will be paid AUD85,000 for its work, or AUD127,000 if the club is liquidated. West Perth Football Club, known as the Falcons, is an Australian rules football club located in Joondalup, Western Australia. ========= C H I N A ========= CHINA AOYUAN: Fitch Rates New USD & SGD Senior Notes 'BB-(EXP)' --------------------------------------------------------------- Fitch Ratings has assigned China Aoyuan Property Group Limited's (BB-/Positive) proposed US dollar and Singapore dollar senior notes an expected 'BB-(EXP)' rating. The notes are rated at the same level as Aoyuan's senior unsecured rating because they constitute its direct and senior unsecured obligations. Aoyuan intends to use the net proceeds from the proposed notes to refinance its existing offshore indebtedness. The final rating is subject to the receipt of final documentation conforming to information already received. KEY RATING DRIVERS Strong Sales Momentum: Fitch expects Aoyuan's attributable contracted sales to exceed CNY60 billion in 2018 due to its fast- churn strategy and strong execution, which is backed by adequate total sellable resources of over CNY328 billion at end-1H18 and strong demand in its home markets of southern China's Guangdong- Hong Kong-Macau Greater Bay Area. Aoyuan is on track to meet its targeted total sales of CNY73 billion in 2018, with 7M18 total sales rising by 143% yoy to CNY46 billion. Total contracted sales have increased by more than 8.6x since 2012 - to CNY46 billion in 2017 - achieving a CAGR of 54%. Accelerated but Controlled Land Acquisition: Aoyuan accelerated land acquisitions in 2017 to accommodate its national expansion and enlarged scale. It spent around 70% of collected sales on land replenishment (based on cash land premium paid / contracted sales), compared with around 30% in 2014-2016. Fitch expects land premiums to account for 40%-45% of sales during the company's expansion over the next year or two, but to remain controlled under its fast-churn strategy. Aoyuan mainly acquires land via project acquisitions, which allow it to control average land acquisition costs. Its land bank enjoyed a low average cost of CNY2,131 per square metre (sqm) in 2017, or 20% of Fitch's estimated average selling price for 2018. Sufficient and Diversified Land Bank: Aoyuan's land bank had a total gross floor area (GFA) of 30 million sqm as at end-1H2018, sufficient for three to four years of development; with 51% of the land by GFA located in the Pearl River Delta, of which more than half was in the Greater Bay Area. The remainder was spread around central and western China, the Yangtze River Delta and the Bohai Economic Rim around Beijing as well as offshore markets. The company plans to continue implementing a balanced city layout during land replenishment, with a focus on southern China's Big Bay Area, which encompasses 11 cities. Healthy Financial Profile: Aoyuan's leverage, after adjusting for land premium receivables and payables in adjusted inventory, rose to 35.4% in 2017, from 32.6% in the previous year, due to accelerated land acquisition. Fitch expects Aoyuan to maintain its fast-churn model and disciplined land acquisition strategy. Cash outflow from construction costs is likely to rise to keep pace with increasing contracted sales, leading to higher leverage, but the company's financial profile should stay healthy for the next 12-18 months, as reflected in its Positive Outlook. Fitch also estimates sales efficiency, as measured by attributable contracted sales/gross debt, to improve to above 1.2x in 2018, from 0.9x in 2017. Aoyuan's EBITDA margin remained at around 25% (2017: 25%, 2016: 26%), underpinned by its low average land cost, which should support a healthy margin of around 25% for the next one to three years. Higher Business Risk: Aoyuan is more exposed to industry downside risk given its deeper penetration into lower-tier cities and higher commercial property exposure than 'BB-' peers. Its contracted average selling price of around CNY10,500 per sqm compares with CNY13,500-19,500 per sqm of peers, including Yuzhou Properties Company Limited (BB-/Stable) and Logan Property Holdings Company Limited (BB-/Stable). Most of Aoyuan's lower-tier cities are satellite cities, which benefit from spillover from Tier 1 cities with home-purchase restrictions. However, Fitch sees lower-tier city housing markets as more vulnerable than higher- tier cities to tighter-than-expected policies and industry downturn. Fitch views that Aoyuan's large exposure to commercial property sales, which have a lower sell-through rate than residential products and are more susceptible to economic cycles, leaves the company more vulnerable to operational risk than peers that sell only residential projects. Less than 25% of Aoyuan's annual sales came from commercial products in 2017 under its integrated project-development strategy. Fitch expects the product mix to remain stable in the short term, since commercial products accounted for 20% of 2018 saleable resources and 19% of land bank by GFA at end-2017. DERIVATION SUMMARY Aoyuan's sales scale is comparable with 'BB-' category peers, such as Yuzhou Properties Company Limited (BB-/Stable) and Times China Holdings Limited (BB-/Stable), which had a sales scale of around CNY30 billion on an attributable basis in 2017. Aoyuan maintains stronger sales momentum than peers, as evident from its stronger 1H18 sales and higher completion rate of its full-year sales target, which is also the highest among peers. The company kept a healthy financial profile during its expansion, with leverage of around 35% - the lowest among 'BB-' peers, which ranges from 38% to 48%. These factors support the Positive Outlook on Aoyuan. Aoyuan's scale is smaller than that of 'BB' peers, such as CIFI Holdings (Group) Co. Ltd. (BB/Stable) and Future Land Development Holdings Limited (BB/Stable), whose attributable sales scale was above CNY55 billion in 2017. Aoyuan's sales efficiency, of around 0.9x in 2017, was also lower than CIFI's 1.4x and Future Land's 1.9x. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Attributable sales to exceed CNY60 billion in 2018 and CNY80 billion-CNY90 billion in 2019-2020 - Land premium accounting for 50%-60% of contracted sales each year on a cash flow basis during 2018-2020 - Land bank life maintained at three to four years - Company to maintain its fast-churn business model RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Increasing scale and geographic diversification without compromising financial metrics, including: - Net debt/adjusted inventory sustained below 40% - Contracted sales/gross debt sustained above 1.2x - EBITDA margin sustained above 25% Developments that May, Individually or Collectively, Lead to Negative Rating Action - Failure to reach the positive guidelines in the next 12-18 months would lead to the Outlook reverting to Stable LIQUIDITY Adequate Liquidity: Aoyuan had CNY26.4 billion in available cash on hand and CNY16.9 in unutilised credit facilities at end-2017, sufficient to cover short-term debt of CNY21.1 billion. Smooth Refinancing; Lower Borrowing Cost: Aoyuan's short-term debt accounted for half of its total CNY42.5 billion debt at end-2017. The company has proven its ability to refinance through multiple channels, including the offshore and onshore bond markets this year. Fitch has also seen its average borrowing cost drop to 7.2% in 2017, from 11.4% in 2013, given its broad financing channels and improved credit profile. GEELY AUTOMOBILE: Moody's Affirms Ba1 CFR, Alters Outlook to Pos. ----------------------------------------------------------------- Moody's Investors Service has changed to positive from stable the outlook for Geely Automobile Holdings Limited. Moody's has also affirmed the company's Ba1 corporate family rating. RATINGS RATIONALE "The positive rating outlook reflects our expectation that Geely will continue to strengthen its business profile over the next 12- 18 months, with meaningful growth in its overall market share as a result of improvements in its product breadth and strength," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer. "At the same time, we expect the company's track record of maintaining a strong credit profile will accommodate its investment needs and continue to support its rating," adds Ho. Geely's unit sales grew 44% year-on-year in the first seven months of 2018, mainly reflecting robust demand for Geely-branded models. The company's growth rate far outpaced the 4% registered by China's auto industry over the same period, resulting in a further expansion of its market share, and positioning it as the third largest passenger vehicle brand and the seventh largest auto maker by unit sales in China. Moody's expects Lynk & Co -- which commenced sales in December 2017 and is a joint venture between Geely, its parent Zhejiang Geely Holding Group Company Limited and Volvo Car Corporation (VCC), a subsidiary of Volvo Car AB (Ba1 stable) -- will support Geely's growth in vehicle sales and improve its product breadth and strength in terms of price points and geography via its plan to sell vehicles in Europe and the US. Geely owns 50% of the registered capital of the joint venture, while VCC and Zhejiang Geely own 30% and 20% respectively. Moody's analysis of Geely's key credit metrics accounts for the 50%-owned Lynk & Co joint venture on a consolidated basis. Moody's expects that Geely's market share will continue to expand, with unit sales growing about 27% during full year 2018, versus about 63% in 2017. Moody's expects Geely's unit sales to reach about 1.9 million in 2019; which is comparable to some of its global peers. Geely's track record of adopting a prudent financial policy also supports its positive rating outlook. Geely's debt leverage was low in 2017, as represented by debt/EBITDA of 0.5x. While Moody's expects debt level to rise to fund capacity expansion and investment in product development, Moody's expects EBITDA to continue to grow and reach about RMB18 billion in the next 12-18 months. Moody's expects debt leverage to remain low at around 0.8x in the next 12-18 months, which is strong for the Ba rating category. Moody's forecasts Geely's profitability, in terms of EBITA margin, will reach about 9.0% in the next 12-18 months versus 6.3% in 2017, reflecting greater operating leverage as the company's revenue scale grows and its lower level of start-up expenses versus 2017. Geely's liquidity position also remains solid. At the end of June 2018, its reported net cash holdings totaled RMB13 billion. The company has maintained a net cash position since the end of 2012. Geely's Ba1 corporate family rating reflects Moody's expectation that the company will achieve robust unit sales growth, given its growing market share and the fact that it principally operates in China's (A1 stable) large and rapidly growing passenger vehicle market. Moreover, the company's sustained strong credit profile buffers it against industry cyclicality and supports its Ba1 rating. Geely's rating also factors in strong competition in China's auto market and the execution risks associated with its product and geographic diversification. Upgrade pressure on the rating could emerge if Geely: (1) improves its overall market share through the successful sales of new models, including those under the Lynk & Co joint venture; (2) expands its product breadth and enhances its geographic diversity to a level comparable with that of its global peers; and (3) maintains a prudent financial policy that includes low debt leverage and a solid liquidity profile on a sustained basis against the backdrop of its parent company's corporate activities. On the other hand, the rating outlook could return to stable if (1) the company does not grow its scale and gain market share; (2) Geely's profitability declines, such that its EBITA margin drops below 6.0-6.5% on a sustained basis; (3) its debt leverage (as measured by debt/EBITDA) increases, exceeding 2.0x on a sustained basis; or (4) its liquidity profile deteriorates. The principal methodology used in this rating was Automobile Manufacturer Industry published in June 2017. Geely Automobile Holdings Limited is one of the largest privately owned, local brand automakers in China. Geely develops, manufactures and sells passenger vehicles that are sold in China and globally. Its chairman and founder, Mr. Li Shufu, and his family, held a 45.7% stake in the company at the end of 2017. The company is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange. YESTAR HEALTHCARE: S&P Affirms 'BB-' ICR, Outlook Stable --------------------------------------------------------- S&P Global Ratings said it has affirmed its 'BB-' long-term issuer credit rating on Yestar Healthcare Holdings Co. Ltd., a distributor of in-vitro-diagnostic (IVD) products and photographic films. The outlook is stable. S&P affirmed the rating because it expects Yestar to maintain its credit metrics over the next 12-24 months and continue to deleverage while expanding its earnings through both organic and inorganic growth, particularly in the IVD distribution business. Yestar has a contingent obligation to pay Chinese renminbi (RMB) 675 million in the second half of 2018 for a remaining 30% stake in Shanghai Emphasis Group Companies. S&P said, "We believe the terms of the contract provide Yestar significant flexibility to satisfy its contractual obligations. Essentially, Yestar and the minority stake owner of Shanghai Emphasis will need to agree on the forms of consideration and timing of payments. We expect Yestar to exercise this flexibility to make sure it has sufficient liquidity to meet its ongoing obligations and maturities while ensuring a certain level of cushion. Furthermore, Mr. Li Bin, the minority shareholder of Shanghai Emphasis, has an aligned interest with Yestar as the second-largest shareholder in the firm (7.6%) outside of the controlling Hartono family. It is therefore likely, in our view, that both parties come to mutually agreeable terms." S&P said, "We see a low probability of Yestar settling the RMB675 million in cash in full in the coming year. Even if the company were to pay the amount in full with debt, it would not affect our liquidity assessment or its deleveraging trend. We expect the company's strong operating cash flow to support its liquidity and help maintain its debt-to-EBITDA ratio at below 4.0x." In addition, Yestar does not have any other contractual acquisition payments for the coming 12 months. Management indicated that it does not plan to pursue new acquisitions but instead focus on integration over the near term. Yestar's debt capital structure is weighted toward long-term debt and does not have large near-term maturities. S&P said, "The stable outlook on Yestar reflects our expectation that the company will maintain its good growth and profitability over the next 12 months. We expect the company to maintain its debt-to-EBITDA ratio at 4.0x or below including the impact of additional acquisitions over the next 12 months. We also expect the company to maintain good financial discipline and carefully manage its acquisitions and funding sources. "We may lower the rating if Yestar: (1) reduces its liquidity buffer by paying minority shareholders with cash on its balance sheet; (2) pursues debt-funded acquisitions in a more aggressive manner than we expect; or (3) has lower profitability or growth than we estimate, such that its debt-to-EBITDA ratio stays above 4.0x over the next 12 months without signs of significant improvement. "Rating upside is limited in the next 12 months. We could raise the rating if Yestar demonstrates a longer track record of prudent financial management and improves its leverage profile, such that its debt-to-EBITDA ratio decreases to below 3.0x on a sustained basis." ========= I N D I A ========= AKAR CREATIONS: CRISIL Migrates D Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Akar Creations Private Limited (ACPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Drop Line 25 CRISIL D (ISSUER NOT Overdraft COOPERATING; Rating Migrated) Facility Loan Against 3.5 CRISIL D (ISSUER NOT Property COOPERATING; Rating Migrated) Mortgage Loan 10.0 CRISIL D (ISSUER NOT Facility COOPERATING; Rating Migrated) Overdraft 20.0 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 4.2 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 2.3 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with ACPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Akar Creations Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Akar Creations Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Akar Creations Private Limited to 'CRISIL D Issuer not cooperating. ACPL, incorporated in 1993 by the Borkar family, develops real estate projects in Goa and Mumbai. The company's key promoters are Mr Avinash Borkar and Mr. Chinmai Borkar. C. K. VELU: CRISIL Migrates B+ Rating From Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on the bank facilities of C. K. Velu (CKV) from 'CRISIL B+/Stable; Issuer not cooperating' to 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 5 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Due to inadequate information, CRISIL, in line with Securities and Exchange Board of India guidelines, had migrated the rating on the bank facilities of CKV to 'CRISIL B+/Stable; Issuer not cooperating' through its rationale dated April 23, 2018. However, the management has subsequently started sharing the requisite information for carrying out a comprehensive review of the rating. Consequently, CRISIL is migrating the rating from 'CRISIL B+/Stable; Issuer not cooperating' to 'CRISIL B+/Stable'. The ratings continue to reflect the firm's modest scale of operations in the intensely competitive civil construction industry and subdued financial risk profile. These weaknesses are partially offset by the extensive industry experience of the firm's proprietor. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations in the intensely competitive civil construction industry, with geographic concentration in revenue: Revenue of INR21 crore in fiscal 2018 reflects the firm's small scale of operations. While revenue is expected to grow steadily due to healthy orders, it will remain small over the medium term. Given the low entry barriers and tender-based business, the civil construction industry is intensely competitive. Moreover, CKV undertakes projects mainly in Tamil Nadu, and revenue depends on local tenders. The firm is vulnerable to changes in government policies regarding investment in infrastructure. * Subdued financial risk profile: Gearing is high at 2.33 times as on March 31, 2018. Interest coverage ratio is also subdued at 1.9 times in fiscal 2018. Liquidity is marked by adequate cash accrual against repayment obligation, however, bank limit utilisation is high owing to working capital intensive operations. Financial risk profile is expected to remain modest over the medium term, on account of minimal accretion to reserves. Strength * Proprietor's extensive industry experience and funding support The proprietor's experience of close to two decades in the civil construction business has helped CKV win several tenders floated by Highways Dept, Public Works Department of Tamil Nadu, Railways and establish healthy relationships with suppliers. Outlook: Stable CRISIL believes CKV will continue to benefit from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' if there is a significant increase in revenue while working capital is efficiently managed. The outlook may be revised to 'Negative' if lower-than' expected cash accrual, increase in working capital requirement, or large, debt-funded capital expenditure weakens financial risk profile, particularly liquidity. Set up as a proprietorship firm in 1996, CKV is engaged in executing civil construction works for government entities. Mr C K Velu is the proprietor. DINESH OILS: Ind-Ra Maintains D Issuer Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Dinesh Oils Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR600 mil. Fund-based limit (long- and short-term) maintained in Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; -- INR1.082 bil. Non-fund-based limit (long- and short-term) maintained in Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; and -- INR10 mil. Long-term loans (long-term) maintained in Non- Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 27, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1986, Dinesh Oils primarily manufactures refined edible oils (mainly refined palm olein oil and refined palm oil) and vanaspati. The company has a manufacturing site with a capacity of 750 tons per day (vansapati: 125 tons per day; refined oil: 625 tons per day) in Kanpur. GEE EMM: Ind-Ra Maintains 'B+' Issuer Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Gee Emm Overseas' Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR60 mil. Fund-based working capital limit maintained in non-cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 22, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Gee Emm Overseas is a partnership firm engaged in the processing of basmati and non-basmati rice. HARO GOURI: CRISIL Migrates B Rating to Not Cooperating ------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Haro Gouri Agro Products (HGAP) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 3.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term .5 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 4.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with HGAP for obtaining information through letters and emails dated July 17, 2018 and July 23, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Haro Gouri Agro Products. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Haro Gouri Agro Products is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Haro Gouri Agro Products to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Set up as a partnership firm in February 2015 in Bankura, West Bengal, by Mr. Shyam Sunder Mandal and Ms. Anushi Mandal, HGAP is setting up a 43,200 tonne per annum paddy milling plant for three varieties of rice: miniket, ratna, and swarna. The rice mill was operational from January 2017. JAYACHANDRAN INDUSTRIES: CRISIL Withdraws B+ Loan Rating -------------------------------------------------------- CRISIL has migrated the ratings on the bank facilities of Jayachandran Industries Private Limited (JIPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 4 CRISIL B+/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Cash Credit 6.4 CRISIL B+/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Foreign Bill 3.0 CRISIL A4 (ISSUER NOT Negotiation COOPERATING; Migrated from 'CRISIL A4'; Rating Withdrawn) Proposed Fund- 9.77 CRISIL B+/Stable (ISSUER NOT Based Bank Limits COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Term Loan .38 CRISIL B+/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) CRISIL has been consistently following up with JIPL for obtaining information through letters and emails dated, July 18, 2018 and July 23, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of JIPL. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for JIPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Based on the last available information, CRISIL has migrated the ratings on the bank facilities of JIPL to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating' from 'CRISIL B+/Stable/CRISIL A4'. CRISIL has withdrawn its rating on the bank facilities of JIPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Established in 2009 in Coimbatore by Mr. Anbalagan and his family, JIPL manufactures lead-acid batteries for automotives and inverter systems. JBF INDUSTRIES: To Sell Petrochemical Unit to KKR and Co. --------------------------------------------------------- Livemint.com reports that JBF Industries Ltd has decided to sell its petrochemicals business to private equity firm KKR and Co. in a bid to stay the insolvency proceedings being initiated against it. According to Livemint, JBF Industries said it will be selling a 100% stake in JBF Petrochemicals Ltd to KKR Jupiter Advisors for an undisclosed amount. The Reserve Bank of India had referred the name of JBF Industries to the banks for resolution, Livemint says. According to the report, the central bank had fixed August 27 as the deadline for the account to be resolved outside the National Company Law Tribunal (NCLT), failing which the lenders would have initiated insolvency proceedings against the firm at the tribunal. "The board of directors of JBF Industries has approved a scheme of arrangement involving debt restructuring to secured and unsecured lenders. The proposed repayment for the outstanding amount is in line with prevailing Reserve Bank of India guidelines," the firm said in a stock exchange announcement, Livemint relays. As per the arrangement, the entire debt of $464 million on the books of JBF Petrochemicals will no longer be consolidated in the accounts of JBF Industries, Livemint states. "This will eliminate all contingent liabilities in the form of guarantees provided to the lenders of the PTA project for a loan of $464 million and interest thereon," the firm said. JBF's offerings include polyester chips, bottle grade PET and polyester textured yarn, among others. The petrochemicals business has a PTA (Purified Telephthalic Acid) project in Mangalore. PTA is used across industries such as paints, polyester fibre etc. JBF Petrochemicals will also be returning another INR450 crore to JBF Industries for settlement of inter corporate deposit provided by JBF Industries, Livemint discloses. "The funds will be used for repayment of debt (in part) to banks and the balance will be for working capital. The infusion of working capital funds . . . will help bolster the company's operations to full capacity over the next two quarters, and will result in added profitability, aided by strong margins in various polyester products of JBF Industries," the firm, as cited by Livemint, said. JBF group produces polyester and other related products in the polyester value chain. Its production capacity is about 1.9mtpa, which would increase to 3.2mtpa once the purified terephthalic acid plant commences operations. The group operates out of three domestic facilities, one in Gujarat and two in Silvassa, and three international facilities, one each in the UAE, Belgium and Bahrain. As reported in the Troubled Company Reporter-Asia Pacific on May 31, 2018, India Ratings and Research (Ind-Ra) has affirmed JBF Industries Limited's (JBF) Long-Term Issuer Rating at 'IND D' and migrated the rating to the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR4 bil. Fund-based working capital limits (Long-term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR16 bil. Non-fund-based working capital limits (Short- term) affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; -- INR2.8 bil. Term loan (Long-term) due on March 2020 affirmed and migrated to non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR200 mil. Proposed term loan (Long-term) affirmed and migrated to non-cooperating category with Provisional IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on the best available information JET AIRWAYS: Gets $300MM as Lease Incentives & Debt From Banks -------------------------------------------------------------- The Economic Times reports that Jet Airways said on Aug. 29 it has received a liquidity support of US$300 million in the form of advance lease incentives and borrowings from domestic banks. The airline also reiterated that both the airline and its auditors are on the same page, ET says. The company got a liquidity support of US$300 million towards lease incentives and bank borrowings, Jet Airways deputy chief executive and chief financial officer Amit Agarwal said in an analysts call on Aug. 29, ET relays. Agarwal did not give the breakdown but said, "A large proportion of it came from lease incentives," the report relates. According to ET, the airline reported a INR1,323 crore of net losses for the June quarter due to higher fuel cost, falling rupee and low fares. Total income marginally improved to INR6,066 crore, from INR5,953 crore a year ago. Jet Airways had reported a loss of INR1,036 crore in March quarter, the report adds. According to the report, the two back-to-back losses forced the airline to draw up a revival plan, which includes capital infusion, a cost reduction programme of more than INR2,000 crore over two years, a plan to improve pricing, better inventory management, monetising its JetPrivilege programme and wet leasing some of its small aircraft. Based in Mumbai, India, Jet Airways (India) Limited -- https://www.jetairways.com/EN/PH/Home.aspx -- provides passenger and cargo air transportation services. It operates through two segments, Air Transportation and Leasing of Aircraft. The company also leases aircrafts. It operates flights to 64 destinations in India and international countries, including Abu Dhabi, Amsterdam, Bahrain, Bangkok, Colombo, Dammam, Dhaka, Doha, Dubai, Hong Kong, Jeddah, Kathmandu, Kuwait, London Heathrow, Muscat, Paris, Riyadh, Sharjah, Singapore, and Toronto. As of August 31, 2017, the company had a fleet of 113 aircraft, which includes a mix of Boeing 777-300 ERs, Airbus A330-200/300 aircraft, Next Generation Boeing 737s, and ATR 72-500/600s. K G R POULTRY: CRISIL Migrates B+ Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of K G R Poultry (KGRP) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.9 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 0.55 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with KGRP for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of K G R Poultry. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on K G R Poultry is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of K G R Poultry to 'CRISIL B+/Stable Issuer not cooperating'. KGRP is in the poultry business and produces eggs. Its poultry farms are in East Godavari district of Andhra Pradesh and have a parent bird capacity of 2.8 lakh layer birds per annum. The firm was formed in 1991 and was taken over by Mr. Sri Kovvuri Vikash Reddy and his family in August 2014. LANCY CONSTRUCTIONS: CRISIL Migrates D Rating to Non-Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Lancy Constructions to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 13 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with LC for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Lancy Constructions. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Lancy Constructions is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Lancy Constructions to 'CRISIL D Issuer not cooperating'. Set up in 1973 in Mangalore as a proprietorship firm by Mr. Lancy Mascarenhas, LC manufactures RMC for the construction industry and also undertakes civil construction projects. M. E. ENERGY: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of M. E. Energy Private Limited (MEPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 10 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 8 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Foreign Letter of Credit 1.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with MEPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of M. E. Energy Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on M. E. Energy Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of M. E. Energy Private Limited to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. MEPL, established in 1998 and promoted by Mr K V Kartha, designs, manufactures and installs energy-saving projects, heating and cooling systems, and equipment. Its manufacturing facility is in Pune, Maharashtra. Helix Investment Company, a private equity firm, acquired a 36.36% stake in the company in 2012. MARS PLYWOOD: CRISIL Migrates D Rating to Not Cooperating --------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Mars Plywood Industries Private Limited (MPIL) to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .75 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Cash Credit 8.50 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Letter of Credit 31.0 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Standby Line of 6.0 CRISIL D (ISSUER NOT Credit COOPERATING; Rating Migrated) CRISIL has been consistently following up with MPIL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Mars Plywood Industries Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Mars Plywood Industries Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Mars Plywood Industries Private Limited to 'CRISIL D/CRISIL D Issuer not cooperating'. MPIL was established by Mr Roshan Lal Agarwal in 2001. The company has plywood manufacturing units in Kolkata and Mangaluru, with capacities of 20,000 square metre (sqm) and 12,000 sqm, per annum, respectively. The key product, premium-grade plywood, is sold under the Mars Ply brand. NATIONAL AUTO: CRISIL Migrates B Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of National Auto Wheels Private Limited (NAWPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Electronic Dealer 5 CRISIL B/Stable (ISSUER NOT Financing Scheme COOPERATING; Rating Migrated) (e-DFS) Proposed Long Term 7.5 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with NAWPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NAWPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NAWPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of NAWPL to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in March 2011 by the Nagpal family, NAWPL is an authorised dealer of TML's passenger cars in Pune. It also offers accessories and spare parts and, servicing at its showroom. The company currently operates one rented showroom in Pune. NHS INDUSTRIES: CRISIL Migrates B- Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the ratings on bank facilities of NHS Industries (NHS) to 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 2.5 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 8.4 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with NHS for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of NHS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on NHS is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the ratings on bank facilities of NHS to 'CRISIL B-/Stable/CRISIL A4 Issuer not cooperating'. NHS, based in Bengaluru, was established in November 2016 as a proprietorship firm by Mr Bhargava Reddy. The firm manufactures HDPE/PP (high-density polyethylene/polypropylene) woven sacks. P P RUBBER: CRISIL Migrates B+ Rating to Not Cooperating -------------------------------------------------------- CRISIL has migrated the rating on bank facilities of P P Rubber Products Private Limited (PRPPL) to CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PRPPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PRPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PRPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PRPPL to CRISIL B+/Stable Issuer not cooperating'. PRPPL, incorporated in October 1990, manufactures footwear. The company's manufacturing facilities are located at Jaipur (Rajasthan). The company was established by Mr. Premprakash Poddar, who has been in the business for more than two decades. PLANET AUTOMOTIVE: CRISIL Migrates B- Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Planet Automotive Private Limited (PAPL) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 7 CRISIL B-/Stable (ISSUER NOT Overdraft COOPERATING; Rating Migrated) Facility Channel Financing 3 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Drop Line Overdraft 4.25 CRISIL B-/Stable (ISSUER NOT Facility COOPERATING; Rating Migrated) Electronic Dealer 21.46 CRISIL B-/Stable (ISSUER NOT Financing Scheme COOPERATING; Rating Migrated) (e-DFS) Inventory Funding 6.00 CRISIL B-/Stable (ISSUER NOT Facility COOPERATING; Rating Migrated) Proposed Long Term 0.29 CRISIL B-/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with PAPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of PAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PAPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of PAPL to 'CRISIL B-/Stable Issuer not cooperating'. Incorporated in 2005 and promoted by Mr. Sukhbir Singh Bagga and Mr. Ishwar Singh Bagga, PAPL is a dealer of HMIL and Suzuki Motorcycle India Pvt Ltd (SMIPL) in Ahmedabad. POWER MAX: CRISIL Lowers Rating on INR23.15cr Loan to D ------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Power Max India Private Limited (Power Max) to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 23.15 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 20.00 CRISIL D (Downgraded from 'CRISIL C') Letter of Credit 5.00 CRISIL D (Downgraded from 'CRISIL A4') The downgrade reflects the company's overutilisation of its bank line for more than 30 days and devolvement of its letter of credit (LC) because of weak liquidity as a result of slow realisation of receivables. The company has a below-average financial risk profile, sizeable working capital requirement, and modest scale of operations in the intensely competitive engineering, procurement, and construction (EPC) industry. However, it benefits from its promoters' extensive experience and established relationships with clients. Key Rating Drivers & Detailed Description * Overutilisation of bank line: There has been multiple instance of overdrawing in cash credit account for more than 30 days and devolvement of letter of credit devolvement. This has been because of slow debtors realization along with sizable retention and security money with customers leading to liquidity mismatch. Weaknesses * Below-average financial risk profile: Modest cash accrual and large working capital requirement will, likely, keep the financial metrics weak. As on March 31, 2018, networth was modest, estimated at INR8 crore (INR7.6 crore as on March 31, 2017) and gearing high at 3.9 times (at a similar level a year earlier), following net losses in the two fiscals through 2016. Large working capital borrowings may keep the gearing high. Low cash accrual continues to constrain debt protection metrics which is marked by estimated interest coverage ratio of 0.8 time an net cash accruals to adjusted debt of 0.03 time in fiscal 2018. * Large working capital requirement: Working capital requirement remains sizeable, reflected in gross current assets of 401 days as on March 31, 2017[estimated at 550-600 as on 31.3.2018]. With most of the billing happening at the end of the fiscal, receivables were high at 248 days. Delays in realisation from clients, and accumulated retention money even on completed projects add to pressure on working capital. Liquidity may remain under pressure over the medium term, despite mobilisation advances from customers and ability to stretch payables. * Modest scale of operations in the intensely competitive EPC industry: Power Max's operations are restricted to the EPC industry, which is highly fragmented and competitive in India, and has several players executing small projects. Although there are large business opportunities in the sector, low entry barriers because of low capital investment, attracts new players, thereby continuously constraining the profitability of all players. The tender-based nature of the industry intensifies competition, which restricts any significant increase in Power Max's profit margin. The company remains a small player in the EPC industry with net revenue of INR25-55 crore in the four fiscals through 2018. Further in fiscal 2018 scale of operation has almost reduced by 35% to INR37.7 crore due to lack of orders in hand. It is believed that scale of operation will remain modest over the medium term. Strengths * Promoters' extensive experience and established relationships with clients: The promoters' experience of around four decades in the EPC industry, and healthy relationships with suppliers and lenders, and with reputed customers such as Bharat Heavy Electricals Ltd, NTPC Ltd, and Hindustan Unilever Ltd, should continue to support Power Max's business risk profile. Power Max undertakes erection, commissioning, testing, and maintenance of structural works and electrical equipment, and civil and mechanical construction. PRAKASH DISTILLERY: CRISIL Assigns B Rating to INR16.68cr Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Prakash Distillery and Chemical Co.Private Limited (PDCPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 16.68 CRISIL B/Stable (Assigned) Long Term Loan .52 CRISIL B/Stable (Assigned) Bank Guarantee .20 CRISIL A4 (Assigned) Cash Credit 2.60 CRISIL B/Stable (Assigned) The rating reflects PDCPL's modest scale of operations and susceptibility to volatile raw material prices and to regulatory changes and timely ramp up of operations of the distillery. These weaknesses are partially offset by the partners' extensive experience and prudent working capital management. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations: Scale of operations remains modest with operating income of INR15 crores in fiscal 2018. Going ahead scale of operations are expected to remain at modest levels despite the moderate growth expected. * Susceptibility to volatility in raw material prices: The prices of raw spirit, used for manufacturing country liquor are highly volatile. On account of modest scale of operations and intense competition in this industry, PDCPL has low bargaining power with its customers and is unable to pass on increases in prices * Timely ramp up of operations of Distillery:-The Company is in the process of setting up distillery in fiscal 2019 and the estimated cost for the same is expected to be around INR25 crore and the same shall be funded through term loan of INR20 crore and remaining from infusion of unsecured loans from promoters. Thus the timely ramp up of the same will remain a kay rating sensitivity factor. Strengths * Extensive experience of the promoters: Though PDCPL began operations only in 1971, key partner, Mr Baidyanath Biswas has experience of around two decades in trading in country liquor. Outlook: Stable CRISIL believes PDCPL will continue to benefit over the medium term from the partners' extensive experience in the liquor industry and prudent working capital management. The outlook may be revised to 'Positive' if ramp-up in scale of operations, profitability and accrual, and further improvement in working capital management strengthens credit metrics. Conversely, the outlook may be revised to 'Negative' if low revenue and profitability, large working capital requirement, or sizeable, debt-funded capital expenditure weakens financial risk profile. PDCPL incorporated in 1971 by Mr. Bijoy Saha is engaged in the bottling of country liquor for the brands 'Saki','Blu' and 'Royal Choice' The company has a production capacity of 100000 bottles per day. PRUDENTIAL SUGAR: CRISIL Migrates C Rating to Not Cooperating ------------------------------------------------------------- CRISIL has migrated the rating on bank facility of Prudential Sugar Corporation Limited (PSCL) to 'CRISIL C Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 20 CRISIL C (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with PSCL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Prudential Sugar Corporation Limited, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Prudential Sugar Corporation Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facility of Prudential Sugar Corporation Limited to 'CRISIL C Issuer not cooperating'. PSCL was set up in 1994 Mr Vinod Kumar Baid and his associates. The company manufactured sugar, and its by-products - molasses and bagasse. PUDUCHERRY CANCER: CRISIL Migrates D Rating to Not Cooperating --------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Puducherry Cancer Trust (PCT) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PCT for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Puducherry Cancer Trust which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Puducherry Cancer Trust is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Puducherry Cancer Trust to 'CRISIL D Issuer not cooperating. Established in April 2011, PCT is promoted by Dr M A S Subramaniam along with other trustees. The trust has set up a 30-bed cancer speciality hospital in Puducherry. PUNJAB METAL: Ind-Ra Migrates 'BB-' LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Punjab Metal Works Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR30 mil. Fund-based limits migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Non-fund based limits migrated to Non-Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 18, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Punjab Metal Works processes plywood and veneer, and trades timber logs, mainly hardwood. R.K. PULSES: CRISIL Migrates 'B' Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of with R.K. Pulses Private Limited (RKPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RKPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RKPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RKPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RKPL to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 2000 by Mr Rajiv Kumar Agarwal, RKPL processes pulses such as split and whole urad dal, masoor, soyabean and soyameal, and also trades in other pulses and sugar. The manufacturing unit is located at Bareilly, Uttar Pradesh. RAJ RAJESHWARI: CRISIL Migrates B Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Raj Rajeshwari Techno Fab Private Limited (RRTPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash Credit Limit 4 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Rupee Term Loan 15 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RRTPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RRTPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RRTPL is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RRTPL to 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 2005 and promoted by Mr. Vikas Agarwal and his wife, Ms. Barsha Agarwal, RRTPL manufactures zippers and fusibile interlining used in garments, bags, and shoes. Unit is in Roorkee, Uttarakhand. RAJ POLY: CRISIL Lowers Rating on INR14cr Cash Loan to D -------------------------------------------------------- CRISIL has downgraded the rating of Raj Poly Products Limited (RPPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as there has been overdrawals of more than 30 days on working capital facility. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with RPPL for obtaining information through letters and emails dated February 28, 2018 and July 31, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information and banker feedback, CRISIL has downgraded the rating of RPPL to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as there has been overdrawals of more than 30 days on working capital facility. Incorporated in 1992, RPPL trades in plastic granules such as low, linear low- and high-density polyethylene (LDPE, LLDPE & HDPE), polyvinyl chloride (PVC) etc. used in manufacturing buckets, pens, and pipes. Mr. Rajendra Salot, Ms. Hema Salot and Mr. Pankaj Salot are the promoters. RAJENDRAGURU GROUP: CRISIL Migrates B- Rating to Not Cooperating ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Rajendraguru Group (RG) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 24 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RG for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RG, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RG is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RG to 'CRISIL B-/Stable Issuer not cooperating'. RG was established in 2016 as a partnership firm by Mr. Rishabh Jain and Mr. Kishor Jain. The firm is setting up a cotton ginning unit in Vijayapura, Karnataka. RAKESH TEXTILES: CRISIL Migrates B Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Rakesh Textiles (RT) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 1.8 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RT for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RT, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RT is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RT to 'CRISIL B/Stable Issuer not cooperating'. Set up in 2004, RT is a partnership firm based in Panipat, Haryana. It began commercial operations in fiscal 2017, by manufacturing and selling polyester curtains. Daily operations are managed by the partners, Mr. Rakesh Khanna and his brother, Mr. Yogesh Khanna. RAMNIK POWER: CRISIL Migrates B- Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Ramnik Power and Alloys Private Limited (RPAPL) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Working 18.44 CRISIL B-/Stable (ISSUER NOT Capital Facility COOPERATING; Rating Migrated) Term Loan 3.56 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RPAPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RPAPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RPAPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of RPAPL to 'CRISIL B-/Stable Issuer not cooperating'. RPAPL was founded in 2006 by Mr. Vyomesh R Trivedi, based in Balaghat, Madhya Pradesh. The company manufactures silicon manganese which is a raw material additive for production of all grades of iron and steel. The capacity of the ferroalloy plant is 6 mega volt ampere and the company has a 6-megawatt, husk-based captive power plant. The company started operations in September 2009. SAKA EMBROIDERY: Ind-Ra Moves BB- Rating to Non-Cooperating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M/s Saka Embroidery Private Limited's Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR72.87 mil. Long-term loans due on June 2026 migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR62.5 mil. Fund-based working capital limits migrated to Non-Cooperating Category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 31, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1999 in Pune, M/s Saka Embroidery is a wholesaler and a retailer of textiles such as sarees, dress materials and readymade dresses. Mr. Fulchand Rathod started the business in 1988. The company is wholly owned by the Rathod family members. The company has three retail showrooms in Maharashtra. SARA CREATION: Ind-Ra Maintains 'BB-' Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Sara Creation Inc.'s Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Term loan maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; and -- INR60 mil. Fund-based working capital limit maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 27, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Sara Creation manufactures and exports garments to the US, Germany, the UK and Belgium. SHAKTI COMPONENT: Ind-Ra Maintains BB- Rating in Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Shakti Component Ventures Private Limited's Long-Term Issuer Rating in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR0.85 mil. Term loan maintained in non-cooperating category with IND BB- (ISSUER NOT COOPERATING) rating; -- INR70 mil. Fund-based facilities maintained in non- cooperating category with IND BB- (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR15 mil. Non-fund-based facilities maintained in non- cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May 6, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2006, Faridabad-based Shakti Component Ventures manufactures engine components at its 150 tons per month facility. SHIVA POLYTEX: CRISIL Assigns B+ Rating to INR7.3cr LT Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the proposed long term bank loan facilities of Shiva Polytex (SP). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash Credit Limit 2.5 CRISIL B+/Stable (Assigned) Proposed Term Loan 7.3 CRISIL B+/Stable (Assigned) The rating reflects SP's susceptibility risks in relation to its ongoing project implementation and expected average financial risk profile driven by debt funded project capex. These rating weaknesses are partially offset by the extensive experience of promoters in the packaging industry and its proximity to suppliers and customers in Gujarat. Key Rating Drivers & Detailed Description Weakness * Susceptibility to risks associated with ongoing project: SP is setting up a project for manufacturing of polypropylene (PP) Woven Rolls, Bags & Fabric at a total project cost estimated at INR12.86 crore, which is to be funded with a mix of debt and promoters' own funds. The project implementation is at nascent stage and firm remains susceptible to risks associated with timely project implementation and ramp-up in sales post commercialization of operations. * Expected average financial risk profile: With partial debt funding of project and debt contracted to fund working capital requirements, amid expected low cash accruals during initial phase of operations, the capital structure and overall financial risk profile is estimated to remain average. Strengths * Experience of promoters: Benefits from the promoters' industry experience of over a decade, their strong understanding of the local market dynamics, and healthy relations with customers and suppliers should support the ramp-up and business risk profile of firm. Outlook: Stable CRISIL believes that SP will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if firm demonstrates timely implementation of project and achieves better than expected ramp-up in sales and cash accrual during initial phase. Conversely, the outlook may be revised to 'Negative' in case of time or cost overrun in the project, or slower than expected ramp- up in sales weakens financial risk profile, and debt-servicing ability. Incorporated in May 2018, SP is setting up a unit to manufacture PP Woven Rolls, Bags & Fabric in Morbi Gujrat. SMART AGRO: CRISIL Migrates B Rating to Not Cooperating Category ---------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Smart Agro Food Park Private Limited (SAFPPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 27 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with SAFPPL for obtaining information through letters and emails dated May 31, 2018 and June 30, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Smart Agro Food Park Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Smart Agro Food Park Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Smart Agro Food Park Private Limited to 'CRISIL B/Stable Issuer not cooperating'. Smart Agro Food Park Pvt Ltd incorporated in the 26th May 2014 is a Special Purpose Vehicle that has been incorporated set up a Mega Food Park in the Nizamabad District of erstwhile Andhra Pradesh under the Ministry of Food Processing Industries' Mega Food Parks Scheme. SRI ANNAPURNA: CRISIL Assigns B+ Rating to INR4.5cr LT Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating for the bank facilities of Sri Annapurna Sai Saraswathi Industries (SASS). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working Capital Facility 4.5 CRISIL B+/Stable (Assigned) Cash Credit 4.0 CRISIL B+/Stable (Assigned) Long Term Loan 1.5 CRISIL B+/Stable (Assigned) The rating reflects modest scale of operation and exposure to volatility in raw material prices and average financial risk profile. These weaknesses are partially offset by extensive experience of the firm's partners in the cashew trading Industries. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations. With estimated turnover of INR7 crore for fiscal 2018, scale remains small in the competitive cashew processing industry, which has both organised and unorganised players. * Susceptibility to volatility in cashew prices: Due to insufficient supply and high rates of cashews in the domestic market, the nuts are increasingly being imported. Hence, the firm remains susceptible to changes in policies of cashew exporting nations. *Average financial risk profile: A small networth, low cash accrual and average debt protection metrics constrain financial risk profile. Strengths * Extensive experience of the partners in the cashew processing business: Presence of more than a decade in the cashew processing segment has enabled the partners to understand market dynamics and establish strong relationships with suppliers and customers. Outlook: Stable CRISIL believes SASS will continue to benefit from its partners' industry experience. The outlook may be revised to 'Positive' if considerable increase in revenue and improvement in profitability result in higher cash accrual. The outlook may be revised to 'Negative' if revenue and profitability are low, or if the firm undertakes large, debt-funded capital expenditure, or if partners withdraw substantial capital and weakens the financial risk profile especially liquidity. Sri Annapurna Sai Saraswathi industries, is a Andhra Pradesh based firm, establishes in 1999 is involved in processing of cashew Kernels. The company has processing facility based in Srikakulam District - Rajam. TRIDENT METAL: CRISIL Migrates B+ Rating to Not Cooperating ----------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Trident Metal Energy Private Limited (TMEPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.2 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Overdraft 3.6 CRISIL A4 (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term 3.2 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL has been consistently following up with TMEPL for obtaining information through letters and emails dated July 17, 2018 and July 23, 2018, 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Trident Metal Energy Private Limited. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Trident Metal Energy Private Limited is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL has migrated the rating on bank facilities of Trident Metal Energy Private Limited to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. TMEPL, set up in 2008 and promoted by the Jharkhand-based Agrawal family, manufactures refined lead cum battery. USHA CUBALS: CRISIL Lowers Rating on INR12cr Cash Loan to D ----------------------------------------------------------- CRISIL has downgraded the rating on bank facilities of Usha Cubals Private Limited (UCPL) to 'CRISIL D/ Issuer Not Cooperating' from 'CRISIL B-/Stable'. The downgrade reflects the confirmation of the fact that account was classified as NPA by the bank and is still irregular as per the latest information available. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable') Long Term Loan 8 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable') CRISIL has been consistently following up for information with UCPL for obtaining information through letters and emails dated June 30, 2018 and May 31, 2018 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 while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of UCPL. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes that the information available for UCPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has downgraded the rating to 'CRISIL D/ Issuer Not Cooperating' from 'CRISIL B- /Stable'. The downgrade reflects the confirmation of the fact that account was classified as NPA by the bank and is still irregular as per the latest information available. UCPL, set up in 2010 by Mr. S K Agarwal, trades in bullion and copper scrap, with bullion trading contributing most of its revenue. The company currently trades in gold jewellery. * INDIA: 20 New NPA Accounts to Go to NCLT as RBI Deadline Ends --------------------------------------------------------------- Livemint.com reports that as the deadline set by the Reserve Bank of India (RBI) for resolution of stressed assets ended Aug. 27, lenders have decided to refer 20 of at least 32 NPA accounts to bankruptcy courts, according to two bankers aware of the matter. For the remaining 12 NPA accounts, lenders will either restructure the debt or initiate sale proceedings, the bankers said on condition of anonymity, the report says. On February 12, RBI had set a 180-day timeline starting March 1 for resolving large corporate loan defaults, failing which banks have to refer these cases for insolvency proceedings, the report notes. Livemint discloses that among the 20 new accounts that will be referred to the National Company Law Tribunal (NCLT), a majority - including Essar Power, Korba West Power Co. Ltd, Jindal India Thermal Ltd and Sravant Energy Pvt. Ltd - are power projects. The list also has metal companies, including BMM Ispat Ltd, ISMT Ltd, BRG Iron and Steel and Splendid Metal Products Ltd. Reliance Naval is also among the companies that will be referred to bankruptcy courts, the report notes. Lenders have, however, decided to restructure the outstanding debt of Videocon Oil Ventures Ltd, GMR Rajahmundry Ltd and Jaiprakash Power Ventures Ltd, Livemint says. According to Livemint, banks have received bids from Edelweiss Asset Reconstruction Co. to acquire two accounts - Coastal Energen Pvt. Ltd and GTL Infrastructure Ltd. Edelweiss Asset has bid INR3,200 crore for Coastel Energen and INR2,400 crore for GTL Infra. Livemint notes that the asset reconstruction company is also exploring the option of teaming up with foreign lenders to bid for these assets. According to one of the two bankers cited earlier, lenders have decided to sell Prayagraj Power Generation Company to Tata group and ICICI Venture-backed Resurgent Power Ventures and SKS Power Generation (Chhattisgarh) Ltd to Singapore-based Agritrade Resources, Livemint adds. Livemint says lenders have agreed for a one-time settlement in the case of GMR Chhattisgarh Energy Ltd. A Bloomberg report on Aug. 27 said Adani Power Ltd is looking to acquire the 1,370-megawatt GMR Chhattisgarh Energy. The deal is likely to be announced in the next few weeks after lenders give a formal approval, the report, as cited by Livemint, said. Livemint relates that the central bank, through its February 12 circular, asked banks to craft resolution plans for defaulted accounts within 180 days in cases where the exposure is more than INR2,000 crore. The central bank also introduced the concept of a one-day default, under which banks have to identify incipient stress when repayments are overdue even by a day, Livemint notes. Last year, lenders referred a total of 40 large corporate accounts worth INR3.5 trillion to NCLT for initiating insolvency proceedings, Livemint recalls. ================= I N D O N E S I A ================= DSSP POWER: Fitch Assigns 'B+(EXP)' Rating to New USD350MM Notes ---------------------------------------------------------------- Fitch Ratings has assigned PT DSSP Power Sumsel's proposed USD350 million notes due 2023 an expected rating of 'B+(EXP)'. The Outlook is Stable. The notes will be issued by Great Horizon Capital Pte. Ltd., a Singapore-registered financing vehicle. The proposed notes are guaranteed by Sumsel, which operates a 300-MW coal-fired power plant in Indonesia. The final ratings are contingent upon the receipt of final documents conforming to information already received as well as the final pricing and financial close on the notes. Sumsel's power plant benefits from a favorable 25-year power purchase agreement (PPA) with PT Perusahaan Listrik Negara (Persero) (BBB/Stable), an electricity transmission and distribution company owned by the Indonesian government. The PPA provides capacity and energy payments to cover the plant's fixed and variable costs, respectively, as long as the power plant meets minimum contractually required levels for availability factor and heat rate. Fuel supply risk is mitigated via Sumsel's 25-year coal supply agreement with its sister company, PT Manggala Alam Lestari (MAL), and the pass-through of fuel costs to PLN. The rating is constrained by the financial profile after the assumed refinancing of the notes in 2023 as well as weaker PPA termination provisions than peers'. Fitch's rating case assumes that the proposed notes' USD280 million bullet repayment will be refinanced when the notes mature in 2023 by fully amortising debt until the end of the PPA. The amortising debt is assumed to have a higher interest rate to reflect the refinancing risk. Under Fitch's rating case, Sumsel will have average debt service coverage ratio (DSCR) of 1.18x in the refinancing period and a declining DSCR profile, which positions the rating at the higher end of 'B' category in line with Fitch's Thermal Power Project Rating Crtiteria. KEY RATING DRIVERS Revenue Risk - Midrange: Strong Long-Term PPA Sumsel's revenue from the PPA includes payments based on the available capacity of the plant that are intended to cover debt service, the plant's fixed operating costs and equity invested. As such, Sumsel is not exposed to electricity demand or merchant risks. The PPA also includes energy payments to cover the variable cost to generate energy, including fuel costs. Cash flows are moderately sensitive to dispatch levels, mainly because its achieved net plant heat rate is lower than the PPA target. The PPA foresees the pass-through to PLN of costs associated with changes in environmental legislation or permits. Also, 100% of the capacity payment is indexed to changes in US dollar-Indonesian rupiah exchange rate, which provides protection to the notes against foreign-currency fluctuations. The plant is contracted until 2041, implying a tail of 18 years for the proposed notes before PPA maturity. A portion of the capacity payment will reduce by 40% in 2027, which will result in an increase in the operating leverage of the company. In addition, the principal of the proposed notes will not be fully covered by PLN's purchase price in some years (e.g. if the PPA is terminated at PLN's discretion) under the Fitch rating case. Fitch considers this negative to the ratings under its criteria. Operation Risk - Midrange: Limited Operating Track Record Sumsel's coal-fired power units use circulating fluidised bed (CFB) combustion technology, which is a commercially proven technology. The plant is currently operated by Korea Western Electricity Power Co. Ltd (KOWEPO) under a fixed-price operation and maintenance (O&M) agreement that covers operations, maintenance and minor repairs of the plant. However, the current O&M agreement will end in 2023, ahead of the end of the PPA. Although the O&M agreement may be extended upon mutual agreement, Sumsel intends to operate the plant itself in the long run, which could expose it to potential cost overruns. The expense forecasts have been reviewed by an independent technical advisor, WorleyParsons, and are considered adequate. The plant started commercial operations in December 2016. During the 1.5 years of operation, the plant struggled to meet the PPA availability requirement of 80%, mainly due to refractory design failure. Nevertheless, Sumsel has made considerable changes to its design to mitigate the risk of such recurrence. WorleyParsons has reviewed these measures and confirmed that the 80% availability is achievable over the PPA term as long as proactive inspection and maintenance programmes are in place. Supply Risk - Midrange: Fuel Cost Pass-through Sumsel has a 25-year coal supply agreement under which its sister company MAL will supply all of its coal to Sumsel's mine-mouth power plant. The same shareholder controls both MAL and Sumsel and the two entities' business interests are aligned. The base coal price is adjusted annually for an escalating factor, in line with the PPA energy payment mechanism. Therefore, the fuel price risks are passed through to the offtaker. Under the coal supply agreement, if MAL fails to deliver the specified coal amount and quality, it will have to cover the additional costs incurred by Sumsel for buying coal from other sources. MAL maintains a dedicated reserve for Sumsel, which secures its long-term coal supply. Fitch sees Sumsel as operationally integrated with MAL as the coal mine supplies only Sumsel and MAL is a sister company. The rating of the notes is not constrained by MAL's credit quality because the coal miner has insignificant level of debt and its current cost of coal production is below the selling price under the coal supply agreement. If MAL defaults, Sumsel may be exposed to the risk of higher coal costs as these would not be passed through to PLN under the PPA. However, Fitch expects alternative coal supply in the South Sumatra region to be available to Sumsel at a similar cost if MAL's operation is disrupted. In addition, Sumsel's ultimate parent, PT Dian Swastatika Sentosa TBJ (DSS), operates other thermal power plants in Indonesia and holds mining business licences for mines near Sumsel and could provide coal for Sumsel's operation if needed. Debt Structure - Weaker: Partially Amortising, Refinancing Risk Remains Sumsel's proposed five-year bond carries a fixed rate. It is partially amortising, but has a bullet repayment of USD280 million in Year 5, which presents significant refinancing risk. Covenants include limits on additional indebtedness (pro-forma fixed-charge coverage ratio must be maintained at 2.5x or more, and debt/EBITDA at 5.0x or less), restricted payments, business activities, and asset acquisitions or disposals. The bond benefits from the six- month debt service reserve account (DSRA) and 12-month major maintenance reserve account (MMRA). The bond is secured by the capital stock in Great Horizon Capital, and PT DSSP Energi Sejahtera, the immediate parent of Sumsel. Financial Profile Fitch's financial analysis focuses on the financial profile after 2023 because of the mostly non-amortising debt structure before that. Fitch assumes the notes will be refinanced upon maturity in 2023 by another debt that is fully amortising over the remaining PPA term until 2041. Fitch assumes a higher refinancing interest rate of 11.5% to reflect the refinancing risk. Its refinancing interest rate incorporates the long-term US interest rate, country risk premium of Indonesia and the asset risk premium of the issuer as estimated by Fitch. Under Fitch's base case, Sumsel has an average DSCR of 1.29x with a minimum of 1.00x during the refinancing period. Fitch's rating case incorporates a number of stresses on availability, heat rate, operating costs and capex stresses, which result in an average DSCR of 1.18x with a minimum of 0.82x during the refinancing period. PEER GROUP The most relevant peer on international scale is PT Paiton Energy (Paiton), whose senior notes issued by Minejesa Capital BV are rated 'BBB-' with a Stable Outlook. Paiton is the second-largest independent power producer in eastern Java, Indonesia. Sumsel and Paiton both benefit from long-term PPAs. However, Paiton's PPA includes coal supply force majeure provisions that allow Paiton to access alternative sources of coal in the event of supply disruption and to be reimbursed by PLN for additional costs. Such a provision is absent for Sumsel. Paiton also benefits from stronger financial metrics and a longer operating history. Paiton's metrics under Fitch's rating case lead to an average and minimum DSCR of 1.55x and 1.21x, respectively. The differences in financial metrics as well as operating history are the key rating differentiators between the two projects. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Negative Rating Action: - Production declines or interruptions, operating difficulties, or additional debt resulting in the average DSCR during the refinancing period over the PPA term dropping below 1.10x in Fitch's rating case Future Developments That May, Individually or Collectively, Lead to Positive Rating Action: - Fitch does not anticipate upgrading the notes' rating in the medium term given the refinancing risk upon maturity of the proposed notes and weaker termination provisions of the PPA than peers'. TRANSACTION SUMMARY The transaction is the issuance of up to USD350 million of senior secured notes. The proceeds are to be used to repay Sumsel's existing loan facility from China Development Bank, fund reserves, pay transaction costs, and repay shareholder loans. FITCH CASES The Fitch base case assumes an availability factor of 80%, in line with the PPA requirement, and uses management's forecasts for heat rate, dispatch level, operating costs and capex. Fitch's rating case assumes 70% availability for 2018-2019 to reflect potential refractory issues and 80% afterwards. Fitch forecasts dispatch to improve from 80% for 2018-2019 to 85% afterwards to reflect improvement in PLN's grid. The rating case also incorporates 2.5% heat rate stress and 10% capex stress. Fitch stresses the operating costs by 12% until 2023 when the fixed-price O&M contract is still in place and 14% from 2024 onwards. ASSET DESCRIPTION Sumsel is an independent power producer in Sumatra, Indonesia with an installed capacity of 300MW (net). The project consists of two units and commenced operations in 2016. Sumsel benefits from a fully contracted PPA with PLN until 2041 (about 23 years remaining), which provides stable contracted cash flows with long- term visibility. Under the PPA, the project receives availability- based payments, in addition to compensation of fixed and variable O&M costs and fuel costs, subject to contractual performance requirements. Sumsel is ultimately majority-owned by PT Dian Swastatika Sentosa TBJ. ========= J A P A N ========= OTSUKA KAGU: JPY2.03BB 1H Loss, Warns of Potential Insolvency ------------------------------------------------------------- The Japan Times reports that Otsuka Kagu Ltd. warned on Aug. 28 of a possible major financial problem going forward as it reported a first-half loss. The Japan Times relates that the Tokyo-based company, which is looking for a business and capital partner, warned investors of potential insolvency in its January to June financial report, saying it has "events or circumstances that cast important doubt on the assumption of going concern." According to the report, Otsuka Kagu did not hold a news conference to report the six-month earnings, but it said in the financial statement, "Countermeasures are in the process of being implemented" to address financial concerns, without giving details. It has been in tie-up talks with companies including Taiwan's Abico Group, according to people familiar with the matter, the report relays. The Japan Times relates that the upscale furniture retailer, which has been bleeding red ink since the year ended in December 2016, said it posted a net loss of JPY2.03 billion ($18 million) in the six months to June. The company earlier revised downward its net earnings outlook for the full year to December to a loss of JPY3.4 billion from a previously estimated profit of JPY1.4 billion, adds the Japan Times. Headquartered in Tokyo, Japan, Otsuka Kagu, Ltd. engages in the furniture and interior retail business in Japan. It operates through Product Development, Purchasing, Store Sales, Out-of-Store Sales, and Contract Sales divisions. The company is also involved in the acquisition, repair, sale, and wholesale of used goods; and development and manufacture of light and durable bent wood furniture. It engages in the BtoB business, such as furniture and interior for hotel, welfare, and healthcare facilities, as well as companies' executive/drawing rooms. The company operates a network of directly managed and tie-up stores. ==================== N E W Z E A L A N D ==================== MERCER GROUP: Posts NZ$7.9MM Net Loss For Year Ended June 30 ------------------------------------------------------------ Gavin Evans at BusinessDesk reports that Mercer Group said its two major operating divisions have good work flows and delivered an operating profit last month. BusinessDesk relates that the group's Mercer Stainless business delivered operating earnings of NZ$1.1 million in the year through June, while the Haden & Custance machinery business is expected to sell its first system into the US red meat market by the end of 2018. "Current workflows in both Mercer Stainless and H&C are good, and the company generated an EBITDA profit in July, which was pleasing. We are looking to continue this momentum and have the workflows and operating structures to do so," the Christchurch- based business said in a statement filed through NZX, relays BusinessDesk. According to BusinessDesk, Mercer on Aug. 29 reported a net loss of NZ$7.9 million for the year ended June 30, from a NZ$6.98 million loss a year earlier. The latest result included NZ$3.2 million of write-downs against the Titan food slicer business. The group loss before interest, tax, depreciation and amortisation narrowed to NZ$1.42 million, from NZ$3.47 million a year earlier. Revenue rose to NZ$28.8 million, 8 percent more than a year earlier, BusinessDesk discloses. BusinessDesk relates that in June, the firm warned that it could report a full-year operating loss due to the failure of Haden & Custance to meet growth forecasts that had proven overly aggressive. The general manager was replaced earlier this year and a new sales manager appointed to lead the business in the US. Despite a 52 percent increase in revenue to NZ$12.5 million, Haden & Custance reported a loss before interest, tax, depreciation and amortisation of NZ$1.6 million, only marginally smaller than the year before. Mercer attributed the loss to costs from expanding in the US, a number of large projects there that were delayed and a sales strategy that was too narrowly focused on a small number of players in the cheese industry. Mercer said the business has now broadened its focus, including marketing to the red meat sector in the US. It has also re-entered the New Zealand and Australian markets with a view to offering greater automation options for the horticulture sector. "We want to stress that H&C is an established business with a strong, loyal customer base, excellent reputation and true growth opportunities with its proven technology," Mercer said. "The underperformance in the 2018 financial year was due to focus on too fewer customers coupled with increased costs. The refreshed, broader strategy is underway and the pipeline looks healthy with more breadth." About Mercer Group Mercer Group Limited (NZE:MGL) -- http://www.mercers.co.nz/-- engages in the designing and manufacturing of technology solutions and the fabrication of stainless steel products. The Company operates in segments, which include Stainless Fabrication; Mercer Technologies, and Corporate. The Stainless Fabrication segment includes the fabrication workshops in Christchurch and New Plymouth. The Stainless Fabrication segment designs and supplies food processing and packaging equipment, including Titan Slicers, Aico and Beta range. The Stainless Fabrication segment also undertakes fabrication for the dairy sector. The Mercer Technologies segment holds the S-clave technology, which the Company is commercializing. The Company offers various services, which include consultation; installation; commissioning; emergency; maintenance services; calibration; validation; auditing, and spares requirements. The Company's subsidiaries include Mercer Stainless Limited, Mercer Technologies Limited and Mercer Middle East Limited. Mercer Group reported net losses of NZ$6.96 million, NZ$6.47 million, NZ$6.72 million, for the year ended June 30, 2017, 2016, and 2015, respectively. ================= S I N G A P O R E ================= GREAT HORIZON: Moody's Rates New $350MM Sr. Secured Notes 'B1' -------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B1 rating to Great Horizon Capital Pte Ltd's (GHCap) proposed senior secured notes of up to USD350 million. The provisional status of the rating will be removed upon Moody's satisfactory review of the final documentation. The rating outlook is stable. Moody's expects that GHCap will transfer the proceeds from the proposed USD notes to Great Horizon Consulting Pte Ltd (GHCon), a wholly owned subsidiary, who will on-lend the funds to DSSP Power Sumsel (P.T.) (Sumsel) in the form of an intercompany loan. Sumsel is the owner and operator of the 300MW Sumsel-5 power station in Sumatra, Indonesia, and has a long term power purchase agreement (PPA) to sell electricity to Perusahaan Listrik Negara (P.T.) (PLN, Baa2 stable). Sumsel will use the proceeds of the intercompany loan to refinance existing borrowings, including expenses associated with the refinancing, and to repay some of the existing shareholder loans from Dian Swastatika Sentosa Tbk. (P.T.) (DSS). The proposed notes are guaranteed by a restricted group that includes Sumsel and its parent entity, DSSP Energi Sejahtera (P.T.). Both of the guarantors, Great Horizon Consulting and the issuer are ultimate subsidiaries of DSS, a listed subsidiary of the SinarMas group. Holders of the USD notes benefit from several structural features that establish a linkage between the credit profiles of GHCap and Sumsel. Because of these features, the rating of GHCap is underpinned by Sumsel's credit profile, which is consistent with a B1 rating. Given recent volatility in the capital markets, there is an element of uncertainty over the bond's final coupon which, in turn, could affect the group's projected financial profile. The (P)B1 rating considers a range of coupon scenarios under which the group's average DSCR over the term of the project bond would range between 1.5 and 1.7 times. Should there be a deviation in the projected average DSCR outside of this range, the final rating of the bond could change. RATINGS RATIONALE "The (P)B1 rating of the proposed notes reflects the uneven operating track record of the Sumsel-5 power station since commencement of operations in December 2016, the power station's concentrated exposure to coal supply from an adjacent mine, and the project's high financial leverage," says Spencer Ng, a Moody's Vice President and senior analyst. "At the same time, the (P)B1 rating considers Sumsel's long-term power purchase agreement with Perusahaan Listrik Negara (P.T.) (PLN, Baa2 stable) and its competitive cost position and importance in Sumatra's power grid," adds Ng. Sumsel's short and uneven operating track record creates uncertainty over the project's cashflow, given the potential deduction to revenue if the plant fails to achieve the contracted availability of 80%. Since start of operations in December 2016, the Sumsel-5 power station recorded availability of around 65%. Moody's expects Sumsel's availability performance to improve over time, given stabilization of the plant's performance following the latest remediation work completed in February 2018. Sumsel's boiler remediation work and ongoing maintenance plans have been independently reviewed by Worley Parsons and are considered to be supportive of the plant's capacity to meet the targeted availability level. Sumsel purchases all of its coal through a single supply contract with Manggala Alam Lestari (P.T.) (MAL), an affiliated entity ultimately owned by DSS. Although the coal supply contract is designed to protect Sumsel from coal cost volatility and to ensure sufficient fuel supply, effectiveness of the arrangement will depend heavily on MAL's long-term commercial viability and access to coal resources. In particular, MAL's ability to provide financial compensation to Sumsel in the event of supply shortage could be limited, given its single-mine operations. Over the five-year term of the proposed bond, Moody's expects the group's total debt service coverage ratio to average around 1.7 times, and its project cash from operations to total debt (CFO/debt) to average around 13.4%. Moody's considers such leverage level to be high, particularly considering the short and uneven operating track record of the plant. These projected financial metrics include Sumsel's subordinated shareholder loan from DSS and have not factored in any additional debt incurrence allowed under the terms and conditions of the bond. Sumsel has a robust tariff structure that supports its rating, and which includes capacity payments that provide recovery of capital costs and variable payments that are designed to cover its variable costs, including coal procurement cost. The tariff structure enhances Sumsel's cashflow profile, provided the plant is able to meet its targeted availability and efficiency levels. As such, failure to meet its targeted availability and efficiency levels will pressure the rating. The (P)B1 rating incorporates refinancing risk when the proposed bond falls due. Moody's considers the group's refinancing risk as mitigated by the long remaining tenor of the power purchase agreement with PLN, which will run until 2041. Nevertheless, refinancing risk could rise if the project fails to improve its operating performance on a sustained basis or if it incurs additional debt, or if market sentiment towards financing thermal coal weakens significantly. Moody's understands that disbursement of the proposed bond proceeds will be effected in two steps: (1) a portion of the proceeds will be on-lent to Sumsel to refinance its existing borrowing of around USD235 million, consistent with the terms of PLN's consent; and (2) the remaining proceeds will be disbursed to Sumsel once the refinancing in step 1 is completed. The stable rating outlook reflects Moody's expectation that Sumsel's performance will gradually improve over the next 12-18 months, which will help maintain its financial metrics at levels supportive of its rating. Upward momentum for the rating is not expected until the project establishes a track record of meeting its targeted level of availability on a sustained basis. Over time, the rating could be upgraded if there is a sustained improvement in the project's CFO/debt to above 18% and DSCR to above 2x, which will likely require deleveraging or plant dispatch being sustained at level above the contracted level. The rating could come under downward pressure if the projected financial metrics drop to levels that are below Moody's base case expectations, including DSCR falling consistently below 1.4x-1.5x, which could be caused by the incurrence of additional debt. Additionally, the rating could also be downgraded if there is a sustained interruption in the company's coal supply or recurrence of the boiler refractory issue. The (P)B1 rating could also be negatively pressured if disbursement of the proposed bond proceeds does not materialized in line with management's expectation. The principal methodology used in this rating was Power Generation Projects published in June 2018. DSSP Power Sumsel owns and operates a 300MW Sumsel-5 power station in Sumatra, Indonesia. Sumsel holds a long-term power purchase agreement to sell electricity to Perusahaan Listrik Negara (P.T.) through to 2041. Sumsel purchases all of its coal requirements from an adjacent mine owned and operated by MAL, an affiliated entity. Great Horizon Capital Pte Ltd is the issuer for the proposed USD notes. Both GHCap and Sumsel are ultimately owned Dian Swastatika Sentosa, a listed subsidiary of SinarMas Group. GHCap will transfer the proceeds to its wholly owned subsidiary, Great Horizon Consulting Pte Ltd, which will in turn on-lend the funds to Sumsel as an intercompany loan. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 2018. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***