/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/181116.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, November 16, 2018, Vol. 21, No. 228 Headlines A U S T R A L I A AGB GROUP: Second Creditors' Meeting Set for Nov. 22 BARENZ (NSW): Second Creditors' Meeting Set for Nov. 28 CATO GALILEE: Second Creditors' Meeting Set for Nov. 23 DIRECTION FUND: Second Creditors' Meeting Set for Nov. 27 GR CAPITAL: Second Creditors' Meeting Set for Nov. 22 ONE CAPITAL: Second Creditors' Meeting Set for Nov. 22 ROGER DAVID: Stores to Shut Down Before Christmas STRONGBUILD PTY: Goes Into Voluntary Administration THOMAS MILLICENT: Second Creditors' Meeting Set for Nov. 23 * AUSTRALIA: Number of SMEs Going Into Insolvency Up in 2017-18 C H I N A FUJIAN ZHENYUN: In Liquidation; First Meeting Set for Nov. 22 HUACHEN ENERGY: Moody's Lowers CFR to Ca, Outlook Negative I N D I A A.R. CHAINS: CRISIL Reaffirms B+ Rating on INR16cr Cash Loan CERATUNE CERAMIC: CRISIL Maintains 'B' Rating in Not Cooperating CHAUDHARY CONSTRUCTION: CRISIL Keeps B Rating in Not Cooperating D.R. THANGAMAALIGAI: CRISIL Maintains B Rating in Not Cooperating DAUJI AND CO: CRISIL Maintains 'D' Rating in Not Cooperating DERBY PLANTATIONS: CRISIL Reaffirms C Rating on INR5.2cr Loan DHARMANA MOTORS: CRISIL Maintains 'B' Rating in Not Cooperating DURGA CARRIERS: CRISIL Maintains B Rating in Not Cooperating EDIT GURU: CRISIL Maintains B Rating in Not Cooperating Category ELMEASURE INDIA: CRISIL Maintains B Rating in Not Cooperating ENTRACO BKS: CRISIL Maintains B+ Rating in Not Cooperating ETICA DEVELOPERS: CRISIL Maintains B Rating in Not Cooperating FUCON TECHNOLOGIES: CRISIL Maintains D Rating in Not Cooperating GARG INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating GLOBAL FOODS: CRISIL Maintains B- Rating in Not Cooperating GRAMEEN VIKAS: CRISIL Maintains 'B' Rating in Not Cooperating GREENBILT INDUSTRIES: CRISIL Retains B Rating in Not Cooperating GHANSHYAM FOODS: CRISIL Maintains B+ Rating in Not Cooperating GUJARAT GINNING: CRISIL Maintains B Rating in Not Cooperating HINDUSTAN REFRIGERATION: CRISIL Keeps B Rating in Not Cooperating INFRASTRUCTURE & LEASING: Fuels Default Worry on Rupee Bond Sales JAY DURGA: CRISIL Lowers Rating on INR10cr Loans to D LAGAN ENGINEERING: CRISIL Maintains D Rating in Not Cooperating MANTRI TEA: CRISIL Reaffirms 'C' Rating on INR9.74cr Loans MEHTA INTERTRADE: Ind-Ra Maintains BB Rating in Non-Cooperating OM FOODPROCESSING: CRISIL Assigns B+ Rating to INR7.5cr Loan PALLAVI MOTORS: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating PATANJALI DISTRIBUTORS: CRISIL Moves B+ Rating to Not Cooperating SHREE RENUKA: Two Sugar Mills in Brazil up for Auction SONA CHANDI: CRISIL Maintains 'D' Rating in Not Cooperating SOUTH INDIAN: CRISIL Lowers Rating on INR12.5cr Loan to D SPRING MERCHANDISERS: CRISIL Retains D Rating in Not Cooperating J A P A N SURUGA BANK: Posts $867MM Loss in 6 Mos. Ended September 30 M A L A Y S I A NAM CHEONG: Posts MYR396.01MM Net Profit in Q3 Ended Sept. 30 P H I L I P P I N E S COMMUNITY RURAL: Depositors Claims Deadline Set for November 19 - - - - - ================= A U S T R A L I A ================= AGB GROUP: Second Creditors' Meeting Set for Nov. 22 ---------------------------------------------------- A second meeting of creditors in the proceedings of AGB Group Pty Ltd has been set for Nov. 21, 2018, at 2:30 p.m. at Rydges Hotel (Geelong), Corner Gheringhap & Myers Street, in Geelong, Victoria. 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 Nov. 20, 2018, at 4:00 p.m. Nathan Deppeler and Matthew Jess of Worrells Solvency & Forensic Accountants were appointed as administrators of AGB Group on Oct. 17, 2018. BARENZ (NSW): Second Creditors' Meeting Set for Nov. 28 ------------------------------------------------------- A second meeting of creditors in the proceedings of Barenz (NSW) Pty Ltd and LEL 2570 Pty Ltd has been set for Nov. 28, 2018, at 10:00 a.m. at the offices of PKF, at Level 8, 1 O'Connell 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 Nov. 27, 2018, at 4:00 p.m. Geoffrey Trent Hancock of PKF was appointed as administrator of Barenz (NSW) on Oct. 24, 2018. CATO GALILEE: Second Creditors' Meeting Set for Nov. 23 ------------------------------------------------------- A second meeting of creditors in the proceedings of Cato Galilee Pty Ltd has been set for Nov. 23, 2018, at 10:00 a.m. at Regus Brisbane, at Level 22, 127 Creek Street, in Brisbane, Queensland. 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 Nov. 22, 2018, at 4:00 p.m. Christopher John Baskerville of Jirsch Sutherland was appointed as administrator of Cato Galilee on Oct. 19, 2018. DIRECTION FUND: Second Creditors' Meeting Set for Nov. 27 --------------------------------------------------------- A second meeting of creditors in the proceedings of Direction Fund Limited has been set for Nov. 27, 2018, at 10:00 a.m. at the offices of McLeod & Partners, at Level 9, 300 Adelaide Street, in Brisbane, Queensland. 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 Nov. 26, 2018, at 5:00 p.m. Jonathan Paul McLeod of McLeod & Partners was appointed as administrator of Direction Fund on Oct. 23, 2018. GR CAPITAL: Second Creditors' Meeting Set for Nov. 22 ----------------------------------------------------- A second meeting of creditors in the proceedings of GR Capital Group Pty Ltd has been set for Nov. 22, 2018, at 11:00 a.m. at the offices of BRI Ferrier, at Level 30, Australia Square, 264 George 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 Nov. 21, 2018, at 4:00 p.m. Peter Paul Krejci and Brian Raymond Silvia of BRI Ferrier were appointed as administrators of GR Capital on Oct. 18, 2018. ONE CAPITAL: Second Creditors' Meeting Set for Nov. 22 ------------------------------------------------------ A second meeting of creditors in the proceedings of The One Capital Group Pty Ltd has been set for Nov. 22, 2018, at 10:00 a.m. at the offices of BRI Ferrier, Level 30, Australia Square, 264 George 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 Nov. 21, 2018, at 4:00 p.m. Peter Paul Krejci and Brian Raymond Silvia of BRI Ferrier were appointed as administrators of One Capital on Oct. 18, 2018. ROGER DAVID: Stores to Shut Down Before Christmas ------------------------------------------------- Patrick Hatch at SmartCompany reports that Roger David will close its doors for good within weeks, after administrators were unable to find new owners for the collapsed retailer. The 76-year-old company called in administrators KordaMentha last month, saying its 57 stores could not compete with "the influx of multinational retailers and the rapid, global evolution of online shopping," SmartCompany says. According to SmartCompany, KordaMentha said last week there had been some interest from potential buyers, who recognised the strength of its brand and customer loyalty. But on Nov. 15, KordaMentha said the fashion retail environment was "too tough" to make any of the potential deals work, and that all stores would be closed by early to mid-December, SmartCompany relates. "Everyone recognised the strength and the affection for the brand, but it did not pass the viability test," the report quotes administrator Craig Shepard as saying. "Roger David was a victim of rising fixed costs, fierce competition from online and global competitors and cautious consumer demand." Craig Shepard and Leanne Chesser of KordaMentha Restructuring have been appointed Voluntary Administrators of Roger David, one of Australia's largest independent menswear fashion retailers. The Roger David network has 57 stores and approximately 300 employees around Australia. It was established in 1942 and became one of Australia's best-known clothing brands. STRONGBUILD PTY: Goes Into Voluntary Administration --------------------------------------------------- Michael Bleby at The Australian Financial Review reports that Strongbuild went into voluntary administration on Nov. 15 after developer Frasers Property Australia's cancellation of a AUD45 million contract left the builder unable to pay its bills. According to the report, BRI Ferrier administrator Brian Silvia said the family-owned company that two years ago was behind Australia's largest wooden building project - a 101-unit affordable housing project in south-western Sydney's Campbelltown - employed 150 staff in three divisions and had a turnover last year of AUD160 million, but had been suffering from a "lull" in work. AFR says the company is the latest in a string of east-coast builder failures that includes Melbourne's Bayside Construct, Project Group and Watersun Homes. AFR adds that Mr. Silvia said Strongbuild had made a claim against Frasers over the cancelled stage two of its Edmondson Park project in south-west Sydney of 104 townhouses, but he had not seen the documents. A spokeswoman for Frasers said it was a commercial matter and declined to comment, AFR states. According to the report, Mr. Silvia said he did not know the full extent of Strongbuild's debts. Bendigo Bank was owed AUD3.1 million for equipment financing and another lender was owed "maybe AUD3 million or so" but the extent of employee claims was unknown. AFR relates that the bulk of the subcontractor claims against the company were made against Strongbuild's Sydney-based commercial contracting business, which employed 60 people and was one of three separate entities that all went into administration, he said. "There would be significant subcontractor claims," AFR quotes Mr. Silvia as saying. "There would be progress claims." The prospects were brighter for the company's two other divisions, a Berry, NSW-based building business that also employs 60 and in the Bellavista prefabrication plant, employing 30 at Norwest Business Park, he said, AFR relays. AFT adds that Mr. Silvia said Strongbuild had already been in discussions with potential investors about expanding the manufacturing plant and it had potential buyers. But current clients may have to pay more to get their jobs finished, Mr. Silvia, as cited by AFR, said. Brian Raymond Silvia and Andrew John Cummins of BRI Ferrier were appointed as administrators of Strongbuild Pty Ltd, Strongbuild Manufacturing Pty Ltd, and Strongbuild Commercial Pty Ltd on Nov. 15, 2018. THOMAS MILLICENT: Second Creditors' Meeting Set for Nov. 23 ----------------------------------------------------------- A second meeting of the creditors in the proceedings of Thomas Millicent Property Pty Ltd, trading as Grand Hotel Millicent, will be held concurrently at the Grand Hotel, 55 George St, in Millicent, SA, and at the offices of MaC Insolvency, at Level 7, 91 Phillip St, in Parramatta, NSW, on Nov. 23, 2018, at 12:00 Noon (ACDT/Sth Aust Time) and 12:30 p.m. (AEDT/NSW Time), respectively. 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 Nov. 22, 2018, at 10:00 a.m. Trent McMillen of MaC Insolvency was appointed as administrator of Thomas Millicent on Oct. 31, 2018. * AUSTRALIA: Number of SMEs Going Into Insolvency Up in 2017-18 --------------------------------------------------------------- SmartCompany reports that the Australian Securities and Investments Commission has released its annual report on corporate insolvency, finding the number of SMEs going broke in the last financial year was broadly consistent with the 2016-17 year. However, there has been a jump in the number of accommodation and food services businesses becoming insolvent, amid ongoing difficulties for smaller retail and travel businesses, SmartCompany relays. Overall, there were 8,202 insolvencies in the 2017-18 year, 78% of which were businesses with less than 20 workers, down from 79% in the 2016-17 year, SmartCompany says. SmartCompany adds that while the number of firms going broke in the construction category and the broad 'other' category remained broadly consistent, accommodation and food services insolvencies jumped from 884 in the 2016-17 year to 1,064 in the 2017-18 year (or 11% of insolvencies to 14%). So far this year, a string of cafe businesses have collapsed, including Max Brenner, Oliver Brown and Nuts About Tella. Others, such as Retail Food Group-owned Gloria Jeans, have struggled. According to SmartCompany, accommodation businesses are also wrangling disruption, particularly in relation to an increasing reliance on online travel agencies, which often take large commissions for referrals. Motel and hotel owners SmartCompany spoke to earlier this year said they were being driven out of business by the platforms, which they were being forced to rely on for new business. ========= C H I N A ========= FUJIAN ZHENYUN: In Liquidation; First Meeting Set for Nov. 22 ------------------------------------------------------------- The Business Times reports that Fujian Zhenyun Plastics Industry Co has entered liquidation. Fujian Zenith Law Firm was appointed the administrator by the Fuqing People's Court of Fujian Province in September, the report says. The first meeting of creditors will take place on Nov. 22, 2018, at Fuqing Ruixin Hotel in Fuqing City, BT notes. Fujian Zhenyun Plastics Industry Co., Ltd engages in the research and development, design, manufacture, and sale of plastic pipes and fittings for water distribution, communication, gas, and electrical cable piping systems. HUACHEN ENERGY: Moody's Lowers CFR to Ca, Outlook Negative ---------------------------------------------------------- Moody's Investors Service has downgraded Huachen Energy Co., Ltd.'s corporate family rating to Ca from Caa1 and senior unsecured rating to Ca from Caa2. The ratings outlook remains negative. RATINGS RATIONALE "The downgrade of Huachen Energy's ratings to Ca has been prompted by heightened concern over its already weak liquidity position and our view that the company might have difficulty in meeting the upcoming interest coupon payment for its US$500 million senior unsecured notes," says Boris Kan, a Moody's Vice President and Senior Credit Officer. "Furthermore, Huachen Energy announced on November 12 that it had defaulted on one of its domestic bank loans, another sign of increasing challenges in repaying its maturing debt obligations," adds Kan. Huachen Energy is required to make interest coupon payments, amounting to about RMB200-230 million in total, for the US$500 million senior unsecured notes, and RMB2 billion in domestic bonds are due over the next 30 days. Moody's is concerned over its ability to meet these debt service obligations, as well as other short-term debt that falls due in the next few months. On November 12, 2018, Huachen Energy announced that the company had discussed with Xiamen International Bank (XIB) the possible extension of the maturity date of a loan with a principal amount of RMB48 million. Huachen Energy further stated that XIB was not able to complete the loan extension procedures on time, which lead to Huachen Energy's default on the loan. As explained in the company's announcement, Huachen Energy had lost its financing capabilities following the default by its parent, Wintime Energy Co. Ltd., in July 2018. The parent's default has created significant stress on Huachen's liquidity position, resulting in the default on the XIB loan. The negative ratings outlook reflects the high level of uncertainty around Huachen Energy's ability to meet its short-term debt obligations -- principal and interest -- including the upcoming interest payment on the US$ notes. The ratings could be downgraded further if there is a broad scale default and if there is little prospect for recovery of the principal or interest. Upward ratings momentum is unlikely, given the negative ratings outlook. However, the ratings could be upgraded if the company manages to service its debt and repay maturing debt, which could be achieved through asset sales. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in June 2017. Huachen Energy Co., Ltd. is a privately-owned power generating company headquartered in Beijing, with its core thermal power operations in Jiangsu and Henan provinces. At the end of June 2018, its total installed capacity amounted to 8.1GW, of which 89.6% were coal fired; 9.6% gas-fired and 0.75% solar power. At June 30, 2018, Huachen Energy was indirectly wholly-owned by Wintime Energy Co., Ltd, which is listed in Shanghai. Wintime Energy is a coal mining and trading company in China, and is 32.41% owned by Wintime Holding Group Co., Ltd, which is ultimately controlled by Mr. Wang Guangxi. ========= I N D I A ========= A.R. CHAINS: CRISIL Reaffirms B+ Rating on INR16cr Cash Loan ------------------------------------------------------------ CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long- term bank facility of A. R. Chains (ARC). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 16 CRISIL B+/Stable (Reaffirmed) The rating continues to reflect the firm's below-average financial risk profile and exposure to intense competition in the jewellery industry. These weaknesses are partially offset by its proprietor's extensive experience in the industry. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile: Financial risk profile is constrained by high gearing and subdued debt protection metrics. Gearing is estimated at 2.39 times as on March 31, 2018, and interest coverage ratio at 1.1 times in fiscal 2018. Liquidity is restrained by high bank limit utilisation due to large working capital requirement. Cash accrual is adequate, against nil debt obligation. * Exposure to intense competition: The gold jewellery industry in India is intensely competitive and has a few organised players and several unorganised players. New designs are introduced frequently to stay ahead of competition. ARC has large working capital requirement due to inventory of 60-100 days and credit of 20 days extended to customers, against limited credit from suppliers. Strength * Proprietor's extensive industry experience: ARC benefits from its proprietor's experience of over two decades in the gold jewellery segment. The firm is well-equipped, with an in-house team of goldsmiths and designers who are well aware of customer preferences. It has established strong relationships with customers. Outlook: Stable CRISIL believes ARC will continue to benefit from the proprietor's extensive industry experience. The outlook may be revised to 'Positive' if strong cash accrual substantially strengthens financial risk profile. The outlook may be revised to 'Negative' if low revenue or profitability, any large capital expenditure, or stretch in working capital cycle weakens key credit metrics. ARC was set up in 2013 as a sole proprietorship firm by Ms Rahumath S. The firm, based in Kollam (Kerala), manufactures gold jewellery. Mr M Hussain manages daily operations. CERATUNE CERAMIC: CRISIL Maintains 'B' Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ceratune Ceramic (CC) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.3 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 1 CRISIL B/Stable (ISSUER NOT COOPERATING) Long Term Loan 5.25 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CC for obtaining information through letters and emails dated April 30, 2018 and October 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 CC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CC 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, the ratings on bank facilities of CC continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. CC was established in 2015 at Thangadh, in Vakanaker, Gujarat, promoted by Mr. Labubhai Khodabhai Aai, Mr. Rajeshbhai Labubhai Aai, and Mr. Vijaybhai Labhubhai Aai. The firm manufactures sanitary ware such as wash basins, water closets, and urinals. The promoters have also been engaged in the stone crushing business. CC commenced commercial operations in February 2016. CHAUDHARY CONSTRUCTION: CRISIL Keeps B Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Chaudhary Construction Company Private Limited (CCPL) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5.3 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 2.2 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CCPL for obtaining information through letters and emails dated April 30, 2018 and October 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 CCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CCPL 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, the ratings on bank facilities of CCPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. CCPL was established as a proprietorship firm by Mr. Mohd Jaan; in December 2012, the firm was reconstituted as a private limited company owned and managed by Mr. Mohd Jaan. CCPL undertakes civil construction projects, mainly road construction (state and national highways) in Delhi/NCR. D.R. THANGAMAALIGAI: CRISIL Maintains B Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of D.R. Thangamaaligai (DRT) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 1 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with DRT for obtaining information through letters and emails dated April 30, 2018 and October 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 DRT, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DRT 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, the ratings on bank facilities of DRT continue to be 'CRISIL B/Stable Issuer not cooperating'. DRT was set up in 2014 as a sole proprietorship firm by Mr. D Rajappa. The firm, based in Chennai (Tamil Nadu) is engaged in gold jewellery retailing. The daily operations of the firm are managed by Mr. D Rajappa. DAUJI AND CO: CRISIL Maintains 'D' Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Dauji and Co. (DC) continue to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Packing Credit 1 CRISIL D (ISSUER NOT (pre-shipment COOPERATING) credit) Post Shipment 8 CRISIL D (ISSUER NOT Credit COOPERATING) Proposed Short Term 0.99 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with DC for obtaining information through letters and emails dated April 30, 2018 and October 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 DC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DC 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, the ratings on bank facilities of DC continue to be 'CRISIL D Issuer not cooperating'. DC was set up in 1976 as a partnership firm by Mr. Dauji Johari and his family members. The firm trades in polished diamonds, and is based in Mumbai. It currently has three partners: Mr. Dauji Johari, Mr. Sharad Johari, and Ms. Prabha Johari. DERBY PLANTATIONS: CRISIL Reaffirms C Rating on INR5.2cr Loan ------------------------------------------------------------- CRISIL has reaffirmed its rating on long-term bank facilities of Derby Plantations Private Limited (DPPL, Part of Mantri Group) at 'CRISIL C'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.2 CRISIL C (Reaffirmed) The rating continues to reflect the group's Exposure to seasonality of tea production and high operating leverage and weak financial risk profile. These rating strength get partially offset by extensive experience of promoters in the tea industry. Analytical Approach For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Mantri Tea Co. Pvt Ltd (MTCPL),DPPL, Ruttonpore Plantations Pvt Ltd (RPPL) and Manipur Tea Company Pvt Ltd (Manipur Tea), Mantri Tea Company Pvt Ltd (Mantri Tea) collectively referred to as the Mantri group. This is because these entities have a common management, and are in the same line of business, with operational and financial linkages. Key Rating Drivers & Detailed Description Weakness * Exposure to seasonality of tea production and high operating leverage: Being a seasonal product, production of tea depends on monsoon and remains susceptible to adverse weather conditions. Tea plantations also incur fixed cost, with labour alone accounting for nearly 40% of total cost. If tea production is lower-than- expected, the group could incur operating losses, as seen in the past. Limited pricing power further constrains the operating margin of small players like the Mantri group. * Weak financial risk profile: The weak financial risk profile is marked by below-average debt protection metrics, interest coverage and net cash accrual to total debt (NCATD) ratios at (0.04) time and (0.05) time, respectively, for fiscal 2018. Gearing and networth were moderate at 2 times and INR20 Cr, respectively, as on March 31, 2018. Strength * Extensive experience of promoters in the tea industry: The five- decade long experience of promoters in the tea plantation business has helped the group sustain its position, despite regular volatility in prices, and report stable revenue growth over the four years through March 2018. The Mantri group was formed in 1948 by Mr Govind Prasad Mantri. The Manipur Tea Estate, located in Assam, was its first acquisition in 1954. Subsequently, the group acquired three more tea gardens in Assam: Ruttonpore Tea Estate in 1986, Derby Tea Estate in 2005, and Pathini Tea Estate in 2006. Daily operations are now overseen by the second and third-generation members of the promoter's family, along with a professional management team. DHARMANA MOTORS: CRISIL Maintains 'B' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Dharmana Motors (DM) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.8 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with DM for obtaining information through letters and emails dated April 30, 2018 and October 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 DM, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DM 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, the ratings on bank facilities of DM continue to be 'CRISIL B/Stable Issuer not cooperating'. DM, established in 2002 as a partnership firm, is an authorised dealer and service centre for all two wheelers of TVS in Visakhapatnam and Srikakulam. Its operations are managed by Mr. Sasidhar Dharmana. DURGA CARRIERS: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Durga Carriers Private Limited (DCPL) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 6.5 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with DCPL for obtaining information through letters and emails dated April 30, 2018 and October 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 DCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DCPL 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, the ratings on bank facilities of DCPL continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating. DCPL, incorporated in 1994 and promoted by Mr. Shashi Bhushan Shukla and Mr. Sudhir Agarwal, undertakes transportation of cement, limestone, clinker, gypsum, and fly ash in Chhattisgarh. DCPL also operates a gasoline filling station for Indian Oil Corporation Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+') in Chhattisgarh, and trades in iron ore fines and flue dust. EDIT GURU: CRISIL Maintains B Rating in Not Cooperating Category ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Edit Guru (EG) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.75 CRISIL B/Stable (ISSUER NOT COOPERATING) Term Loan 6.25 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with EG for obtaining information through letters and emails dated April 30, 2018 and October 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 EG, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on EG 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, the ratings on bank facilities of EG continue to be 'CRISIL B/Stable Issuer not cooperating'. Setup in 2013, EG supplies cameras and related equipments on rental basis and provides infrastructure for post-production activity to various television broadcasters and production houses. The firm is based out of Mumbai, Maharashtra and is promoted by Mr. Satyajeet Sachdeva, Mr. Akshayajeet Sachdeva and Ms Mrinalini Singh. ELMEASURE INDIA: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Elmeasure India Private Limited (EIPL) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 5.18 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 5.32 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with EIPL for obtaining information through letters and emails dated April 30, 2018 and October 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 EIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on EIPL 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, the ratings on bank facilities of EIPL continue to be 'CRISIL B/Stable Issuer not cooperating'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of EIPL and Elecon Measurements Pvt Ltd (EMPL). This is because the two companies, together referred to as the Elmeasure group, operate in the same line of business and have significant business and financial linkages. CRISIL has treated unsecured loans from promoters as neither debt nor equity as they are subordinated to, and have lower interest than, bank debt. The Elmeasure group manufactures energy meters and provides energy management services. EMPL was set up in 2004 and EIPL in 2007. The group's operations are managed by Mr. T K Babu and Mr. Sam Cherian. ENTRACO BKS: CRISIL Maintains B+ Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Entraco BKS Busducts Private Limited (Entraco) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash 1 CRISIL B+/Stable (ISSUER NOT Credit Limit COOPERATING) Proposed Non Fund 2 CRISIL A4 (ISSUER NOT based limits COOPERATING) Proposed Term Loan 6.95 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with Entraco for obtaining information through letters and emails dated April 30, 2018 and October 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 Entraco, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Entraco 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, the ratings on bank facilities of Entraco continue to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating. Entraco, incorporated in 2008 and based in Nashik (Maharashtra), is a 50:50 joint venture between Switzerland-based Mr. Gerd Becker and Maharashtra-based Nasikkar family. The company manufactures electrical components such as Busducts, control panels, and switchboards. Operations are managed by director Mr. Rajesh Nasikka. ETICA DEVELOPERS: CRISIL Maintains B Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Etica Developers Private Limited (EDPL) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 0.65 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 4.35 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with EDPL for obtaining information through letters and emails dated April 30, 2018 and October 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 EDPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on EDPL 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, the ratings on bank facilities of EDPL continue to be 'CRISIL B/Stable Issuer not cooperating'. EDPL, set up in Chennai in 2012 by Mr. G Diliban and Mr. G Prakash, develops real estate. The company has completed Saptami and Avigna, premium residential apartments and is currently undertaking the construction of 2 other residential apartments ' Kalathmika and Sapthagiri. The company is also expected to launch 3 more residential projects in Chennai over the near to medium term. The company also operates a 1.16 MW solar power plant in Kurundamadam in Virudhunagar district. FUCON TECHNOLOGIES: CRISIL Maintains D Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Fucon Technologies Limited (FTL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft 2.9 CRISIL D (ISSUER NOT COOPERATING) Working Capital 11.6 CRISIL D (ISSUER NOT Demand Loan COOPERATING) CRISIL has been consistently following up with FTL for obtaining information through letters and emails dated April 30, 2018 and October 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 FTL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on FTL 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, the ratings on bank facilities of FTL continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. FTL, incorporated by Mr. Rahul Parikh in 1999, provides various anti-ageing car-care services such as anti-corrosive treatment, Teflon coating, car interior cleaning and engine coating and flushing. It is an authorised car-care services provider for Maruti Suzuki India Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra. Currently, its operations are ceased. GARG INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Garg Industries Limited (GIL) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 23 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 2.59 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GIL for obtaining information through letters and emails dated April 30, 2018 and October 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 GIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GIL 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, the ratings on bank facilities of GIL continue to be 'CRISIL B/Stable Issuer not cooperating. GIL, incorporated in 1991, manufactures wire rod, square, and thermomechanically treated bars. Its manufacturing facility comprises rolling mill (around100 tonne per day) in Ludhiana. It procures scrap and sponge iron from spot market. GIL's main customers are cycle manufacturers who require spokes for cycle wheels. GLOBAL FOODS: CRISIL Maintains B- Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Global Foods - Nagpur (GF) continues to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 9 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GF for obtaining information through letters and emails dated April 30, 2018 and October 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 GF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GF 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, the ratings on bank facilities of GF continue to be 'CRISIL B-/Stable Issuer not cooperating'. GF was set up in 2014 as a partnership firm in Nagpur for setting up a cold storage and frozen food processing unit for various vegetables, fruits, and spices. Mr. Ritesh Chelani, Mr. Umesh Jagwani, Mr. Akash Satija, Mr. Kamlesh Tejwani, Mr. Niyaz Ahmed, and Mr. Aqeel Ahmed are the partners of the firm. GRAMEEN VIKAS: CRISIL Maintains 'B' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Grameen Vikas Sanstha (GVS) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 2 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with GVS for obtaining information through letters and emails dated April 30, 2018 and October 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 GVS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GVS 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, the ratings on bank facilities of GVS continue to be 'CRISIL B/Stable Issuer not cooperating'. GVS is a Meerut, Uttar Pradesh-based not-for-profit society set up in 1989, and managed by the secretary, Mr. Prem Pal Singh Tomer. The society operates several educational, vocational, and training institutes under state and central government schemes for the under privileged. GREENBILT INDUSTRIES: CRISIL Retains B Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Greenbilt Industries Private Limited continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 21 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with Greenbilt for obtaining information through letters and emails dated April 30, 2018 and October 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 Greenbilt, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Greenbilt 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, the ratings on bank facilities of Greenbilt continue to be 'CRISIL B/Stable Issuer not cooperating'. Promoted by Mr. Aditya Agrawal, Greenbilt was incorporated on June 4, 2012. The company is setting up a manufacturing unit of AAC blocks, having installed capacity of 1,71,000 CBM per annum at Durg district in the state of Chhattisgarh. GHANSHYAM FOODS: CRISIL Maintains B+ Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ghanshyam Foods Private Limited (GFPL) continue to be 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.9 CRISIL B+/Stable (ISSUER NOT COOPERATING) Term Loan .19 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GFPL for obtaining information through letters and emails dated April 30, 2018 and October 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 GFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GFPL 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, the ratings on bank facilities of GFPL continue to be 'CRISIL B+/Stable Issuer not cooperating'. GFPL, incorporated in 1997, processes and trades in agricultural products such as toor dal, moong dal, and chana dal. Its processing unit is at Hoshangabad in Madhya Pradesh. GFPL is promoted by Mr. Ghanshyam Das Maheshwari, who has experience of over three decades in the business. GUJARAT GINNING: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Gujarat Ginning and Oil Industries (GGOI) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GGOI for obtaining information through letters and emails dated April 30, 2018 and October 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 GGOI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GGOI 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, the ratings on bank facilities of GGOI continue to be 'CRISIL B/Stable Issuer not cooperating'. GGOI, set up in 1994 as a partnership firm with nine partners, and based at Gondal in Rajkot. It engaged in ginning and pressing of cotton. The firm is currently managed by Mr. Maganbhai Parvadia (65 percent stake) and Mr. Chandubhai Parvardia (35 percent). HINDUSTAN REFRIGERATION: CRISIL Keeps B Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Hindustan Refrigeration Stores (HRS) continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter Of Guarantee 0.1 CRISIL A4 (ISSUER NOT COOPERATING) CRISIL has been consistently following up with HRS for obtaining information through letters and emails dated April 30, 2018 and October 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 HRS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on HRS 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, the ratings on bank facilities of HRS continue to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating. HRS, set up in 1947, trades in refrigeration and air-conditioning products. It is a distributor of brands such as Danfoss, Maneurop, Emerson Copeland, Emkarate, Chemplast, Bitzer, DuPont, and Rothenberger. Its product portfolio comprises compressors, refrigerant gases, and refrigeration components. It also sells consumer appliances in the retail market. INFRASTRUCTURE & LEASING: Fuels Default Worry on Rupee Bond Sales ----------------------------------------------------------------- Aashika Suresh and Anto Antony at Bloomberg News report that Indian developer rupee bond sales have slumped to the lowest in almost four years as investors become more cautious about default risks after the shock from non-payments by Infrastructure & Leasing Financial Services Ltd. With just two deals in October, issuance dropped to INR3.9 billion ($54 million), the least since November 2014. That was down from INR18.9 billion the previous month, according to Bloomberg data. No new bonds have priced this month. Dwindling sales may make it harder for developers to repay $4.9 billion of debt that comes due in 2019, Bloomberg discloses. It also adds to challenges for the Indian real-estate sector, already struggling to recover following market destabilization after the 2016 demonetization and real-estate act, as well as the roll-out of a national sales tax, Bloomberg relates. The problems have been exacerbated by a recent liquidity squeeze among non-bank financiers, triggered by defaults at shadow bank IL&FS, which was seized by the government last month. "If realty projects need funding or refinancing, there is no-one to go to," Bloomberg quotes Nachiket Naik, managing director of IREP Credit Capital, a non-bank lender, as saying. The drop in issuance will mean a hit for wealthy Indians who piled into real-estate bonds seeking higher returns than bank deposits, said Amit Goenka, managing director of Nisus Finance Services, Bloomberg relays. Coupons on real-estate bonds outstanding are 10.4 percent on average, Bloomberg data show. That compares with State Bank of India's two-year deposit rate of 6.95 percent. Goenka said the issuance slump is even more pronounced when it takes into account privately placed deals, which make up a sizable amount of sales, Bloomberg relays. The property sector needs to make it through to the end of the year without any news such as additional defaults that might prolong poor sentiment, IREP Credit's Naik said. Then, "you should see some stability returning," he said. Bloomberg says Indian real estate has been sluggish for two years. Between January and June, even though launches of new units grew 45 percent year-on-year, sales moved up only by 3 percent, Bloomberg discloses citing a Knight Frank report. With IL&FS, among the largest non-bank financiers, out in the cold, and corporates steering clear of mutual funds that have exposure to the non-bank lenders, developers are finding it harder to raise money, Bloomberg states. About IL&FS Infrastructure Leasing & Financial Services Limited (IL&FS) operates as an infrastructure development and finance company in India. It focuses on the development and commercialization of infrastructure projects, and creation of value added financial services. The company operates in Financial Services, Infrastructure Services, and Others segments. Its Financial Services segment engages in the commercialization of infrastructure; investment banking, including corporate finance, advisory, capital market, and other financial services; and securities trading, venture capital, and trusteeship operations. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 3, 2018, the Indian Express said that the government on Oct. 1 stepped in to take control of crisis-ridden IL&FS by moving the National Company Law Tribunal (NCLT) to supersede and reconstitute the board of the firm which has defaulted on a series of its debt payments over the last one month. This was said to be an attempt to restore the confidence of financial markets in the credibility and solvency of the infrastructure financing and development group. JAY DURGA: CRISIL Lowers Rating on INR10cr Loans to D ----------------------------------------------------- Due to inadequate information, CRISIL in line with SEBI guidelines, had migrated the rating of Jay Durga Enzymatic Private Limited (JDEPL) to 'CRISIL B+/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of rating. Consequently CRISIL is downgrading the rating on bank facilities of JDEPL from 'CRISIL B+/Stable Issuer Not Cooperating' to 'CRISIL D'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 4.41 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B+/Stable ISSUER NOT COOPERATING') Term Loan .59 CRISIL D (Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') The downgrade is driven by delay in debt repayment, which was due to insufficient net cash accrual against debt repayment obligation. Moreover, the financial risk profile is below average and the scale of operations is small. However, the company benefits from the extensive experience of the promoters in the cement industry. Key Rating Drivers & Detailed Description Weakness: * Delay in servicing debt: There are delays in repayment of term debt. Net cash accrual is insufficient to meet annual debt repayment obligation. * Weak financial risk profile: The networth was low at INR2.31crore as on March 31, 2018. Moreover, operations are working capital intensive as indicated by high gross current assets of 131 days as on March 31, 2018 (167 days a year earlier). The total outside liabilities to tangible networth ratio was also high at 3.47 times as on March 31, 2018. The interest coverage ratio was low at 1.3 times in fiscal 2018. The return on capital employed, though, was moderate at 8.6 times for the fiscal. * Modest scale of operations in a highly competitive industry: Revenue was modest at INR21.10 crore in fiscal 2018, against INR12.73 crore in the previous fiscal. The cement industry is dominated by many unorganised players catering to regional demand. Revenue is also susceptible to cyclicality inherent in the cement industry. Strengths * Extensive industry experience of the promoters: The promoters have four decades of experience in the cement industry. They have thus been able to develop a healthy and longstanding relationship with dealers and suppliers. JDEPL was incorporated in 2012; operations are handled by Mr Kailash Prusty and Mr Deepak Prusty. The company manufactures wall putty and cement paints, and trades in white cement. It is based in Cuttack, Odisha, and has a production capacity of 10 tonne per day of cement paints and 3 tonne per day of wall putty. LAGAN ENGINEERING: CRISIL Maintains D Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Lagan Engineering Company Limited (LECL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 5.5 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 0.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 4.58 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 7.50 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with LECL for obtaining information through letters and emails dated April 30, 2018 and October 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 LECL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on LECL 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, the ratings on bank facilities of LECL continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. LECL (formerly, The Lagan Jute Machinery Company Ltd) was acquired by the Kajaria family in 2000 following divestment by the Government of India. LECL is among a handful of jute mill machine manufacturers in the organised sector. Its product profile includes spreaders, carding and drawing machines, and spinning and twisting frames. Its manufacturing facilities are in Hooghly and it supplies largely to jute mills in West Bengal and Bangladesh. MANTRI TEA: CRISIL Reaffirms 'C' Rating on INR9.74cr Loans ---------------------------------------------------------- CRISIL has reaffirmed its rating on long-term bank facilities of Mantri Tea Company Private Limited (Mantri Tea:-Part of Mantri Group) at 'CRISIL C'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL C (Reaffirmed) Proposed Cash Credit Limit 3.53 CRISIL C (Reaffirmed) Term Loan 2.21 CRISIL C (Reaffirmed) The rating continues to reflect the group's Exposure to seasonality of tea production and high operating leverage and weak financial risk profile. These rating strength get partially offset by extensive experience of promoters in the tea industry. Analytical Approach For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Manipur Tea Co. Pvt Ltd (MTCPL), Derby Plantation Pvt Ltd (DPPL), Ruttonpore Plantations Pvt Ltd (RPPL) and Mantri Tea, collectively referred to as the Mantri group. This is because these entities have a common management, and are in the same line of business, with operational and financial linkages. Key Rating Drivers & Detailed Description Weakness * Exposure to seasonality of tea production and high operating leverage: Being a seasonal product, production of tea depends on monsoon and remains susceptible to adverse weather conditions. Tea plantations also incur fixed cost, with labour alone accounting for nearly 40% of total cost. If tea production is lower-than- expected, the group could incur operating losses, as seen in the past. Limited pricing power further constrains the operating margin of small players like the Mantri group. * Weak financial risk profile: The weak financial risk profile is marked by below-average debt protection metrics, interest coverage and net cash accrual to total debt (NCATD) ratios at (0.04) time and (0.05) time, respectively, for fiscal 2018. Gearing and networth were moderate at 2 times and INR20 Cr, respectively, as on March 31, 2018. Strengths * Extensive experience of promoters in the tea industry: The five- decade long experience of promoters in the tea plantation business has helped the group sustain its position, despite regular volatility in prices, and report stable revenue growth over the four years through March 2018. The Mantri group was formed in 1948 by Mr Govind Prasad Mantri. The Manipur Tea Estate, located in Assam, was its first acquisition in 1954. Subsequently, the group acquired three more tea gardens in Assam: Ruttonpore Tea Estate in 1986, Derby Tea Estate in 2005, and Pathini Tea Estate in 2006. Daily operations are now overseen by the second and third-generation members of the promoter's family, along with a professional management team. MEHTA INTERTRADE: Ind-Ra Maintains BB Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Mehta Intertrade Steels 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: -- INR100 mil. Fund-based limits maintained in Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR700 mil. Non-fund-based limits maintained in Non- Cooperating Category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR45 mil. Term loan maintained in Non-Cooperating Category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 23, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Mehta Intertrade Steels manufactures electric resistance welded pipes and cold-rolled precision tubes. Its products are primarily used in industries such as automobile, infrastructure and construction. OM FOODPROCESSING: CRISIL Assigns B+ Rating to INR7.5cr Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Om Foodprocessing Private Limited (OFPPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B+/Stable (Assigned) Proposed Long Term Bank Loan Facility 2.5 CRISIL B+/Stable (Assigned) The ratings reflect a modest scale of operations in the fragmented agriculture products industry and a weak financial risk profile. These weaknesses are partially offset by the industry experience of the promoters. Key Rating Drivers & Detailed Description Weakness * Modest scale of operations amid intense competition: Revenue was modest at around INR27 crore in fiscal 2018. Intense competition in the industry may continue to restrict the scalability of operations and limit pricing power with suppliers and customers, thereby constraining profitability. * Weak financial risk profile: The networth remained modest at INR2.11 crore as on March 31, 2018, with marginal improvement in recent years on account of limited accretion to reserves. The gearing was high at 3.46 times due to considerable reliance on external debt to fund working capital requirement. * Debt protection metrics are likely to remain modest: interest coverage and net cash accrual to total debt ratios were 1.51 times and 0.04 time, respectively, in fiscal 2018. The financial risk profile is expected to remain weak over the medium term due to a highly debt-funded capital expenditure (capex) plan. Strengths: * Experience of the promoters: The promoters have an experience of more than 15 years in the agro-related industry. This should help to scale up operations over the medium term and support he business risk profile. Outlook: Stable CRISIL believes OFPPL will continue to benefit from the extensive industry experience of the promoters. The outlook may be revised to 'Positive' if there is improvement in the scale of operations and the financial risk profile. The outlook may be revised to 'Negative' if the financial risk profile, particularly liquidity, deteriorates, most likely because of lower-than-anticipated profitability, larger-than-expected debt-funded capex, or stretch in the working capital cycle. OFPPL was incorporated in 2012, promoted by Mr Chandra Deep Kumar and Ms Savita Devi. The company mills flour products such as atta (whole-wheat flour), besan (gram flour), and dalia. Currently, it has a wheat grinding capacity of 135 tonne per day at its facility in the Begusarai district of Bihar. PALLAVI MOTORS: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Pallavi Motors 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: -- INR200 mil. Fund-based working capital limits migrated to Non-Cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; -- INR21.6 mil. Long-term loans due on March 2023 migrated to Non-Cooperating Category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR25 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 October 23, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Assam-based Pallavi Motors was incorporated in 1999 as an authorized dealer of the passenger cars manufactured by Maruti Suzuki India Limited. It has one showroom, four outlets and one service center. Pallavi Motors is a family-run business and promoted by Mr. Om Prakash Lahoty, Mr. Avadesh Lahoty and Mrs. Sita Devi Lahoty. PATANJALI DISTRIBUTORS: CRISIL Moves B+ Rating to Not Cooperating ----------------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Patanjali Distributors Private Limited (PDPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18.75 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Cash Credit Limit 11.25 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with PDPL for obtaining information through letters and emails dated October 11, 2018 and October 16, 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 PDPL. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on PDPL 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 PDPL to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in August 2009, by Mr Surendra Kumar Sharma, PDPL began operations only in December 2015. The company is one of the four super distributors of Patanjali products in West Bengal. SHREE RENUKA: Two Sugar Mills in Brazil up for Auction ------------------------------------------------------ Jose Roberto Gomes at Reuters, citing court documents, reports that two sugar mills in Brazil owned by India's Shree Renuka Sugars Ltd, which filed for bankruptcy protection three years ago, will be put up for sale in a judicial auction on Dec. 18. U.S.-based fund Castlelake is among the interested parties in the auction, two sources following Renuka's court case told Reuters. Brazil's Grupo Teston, which makes equipment for the sugar industry, is also a potential bidder, the sources said. According to Reuters, Shree Renuka was unable to service a debt near BRL4 billion (US$1.06 billion). It owns four mills in Brazil. The plants to be sold are the Revati mill in the municipality of Brejo Alegre, Sao Paulo state, and the Vale do Ivai mill, based in Sao Pedro do Ivai, Parana state, Reuters discloses. Reuters says the company entered Brazil in 2010 when many foreign companies bought assets in the sector lured by a promising market for ethanol that never materialized. In subsequent years, a long period of low ethanol and sugar prices led to closures and dozens of bankruptcies. It is not the first time Brazil's justice system has tried to sell assets from the Indian company to pay back some of the creditors. Three previous auctions failed, Reuters notes. Shree Renuka Sugars Limited -- http://www.renukasugars.com/en/-- operates as an agribusiness and bio-energy company in India and Brazil. The company operates through Sugar, Trading, Co- generation, and Ethanol segments. It provides white/refined sugar and very high polarized sugar; and ethyl alcohol from molasses and fuel grade ethanol from sugarcane juice. The company also produces power from bagasse, a sugarcane byproduct for industrial consumers or state grids; and provides organic manure. SONA CHANDI: CRISIL Maintains 'D' Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Sona Chandi Agro Processors (SCAP) continue to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 55 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SCAP for obtaining information through letters and emails dated April 30, 2018 and October 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 SCAP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SCAP 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, the ratings on bank facilities of SCAP continue to be 'CRISIL D Issuer not cooperating'. Established in year 1985, SCAP, promoted by the Arora family, mills and processes par-boiled basmati rice (Pusa 1121 quality). It has a processing unit at Tarn Taran in Amritsar (Punjab), with milling capacity of 8 tonne per hour. It commenced commercial production in October 2004. SOUTH INDIAN: CRISIL Lowers Rating on INR12.5cr Loan to D --------------------------------------------------------- CRISIL has downgraded the rating on bank facilities of South Indian Constructions (SIC) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as there have been delays in servicing debt. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') Cash Credit 12.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SIC for obtaining information through letters and emails dated July 17, 2017, August 17, 2017 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 SIC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SIC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on best available information, CRISIL has downgraded the rating to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as there have been delays in servicing debt. Set up in 1992, SIC undertakes civil construction contracts for various statutory bodies of the Kerala and Tamil Nadu governments. The operations of the firm are managed by the proprietor Mr. Vinod Kumar. SPRING MERCHANDISERS: CRISIL Retains D Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Spring Merchandisers Private Limited (SMPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.5 CRISIL D (ISSUER NOT COOPERATING) Inland/Import 6.5 CRISIL D (ISSUER NOT Letter of Credit COOPERATING) CRISIL has been consistently following up with SMPL for obtaining information through letters and emails dated April 30, 2018 and October 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 SMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SMPL 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, the ratings on bank facilities of SMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating. SMPL, incorporated in 1995, manufactures brass, zinc, copper, and aluminium ingots and trades in non-ferrous scrap. The operations are managed by Mr. Ajay Garg and his sons, Mr. Gaurav Garg and Mr. Anirudh Garg. The company is based in Mumbai and has a manufacturing unit in Daman. ========= J A P A N ========= SURUGA BANK: Posts $867MM Loss in 6 Mos. Ended September 30 ----------------------------------------------------------- Nikkei Asian Review reports that Suruga Bank posted a net loss of JPY98.5 billion (US$867 million) for the April-September half as it finally clears all its bad debt and charts its recovery from a damaging lending scandal. The loss marks a sharp turn from the JPY21.1 billion profit it booked for the same period last year, and its first red ink since April-September 2001, the Nikkei discloses. The regional bank now expects a JPY97.5 billion net loss for the fiscal year ending next March. Earlier this year, Suruga was discovered to have extended multiple loans based on improper documentation, including for properties leased to an operator of a women-only chain of shared houses. But the operator went bankrupt in April, and 30% of related loans are now delinquent in a massive hit to the bank's coffers, the Nikkei recalls. After re-examining risk factors in its lending, the bank decided to book another JPY90 billion in reserves tied to the share houses, and another JPY13.4 billion for loans related its founding family's other businesses, the Nikkei relates. Overall, Suruga now has JPY136.2 billion in allowances for bad loans, meaning it has essentially written off all its lending -- minus any collateral like real estate -- as a loss. The bank is eager to dispel concerns that the scandal will continue to squeeze its earnings, according to the Nikkei. "I apologize to our clients, shareholders and other parties involved for the concern and trouble caused in relation to the shared houses," the Nikkei quotes President Michio Arikuni said while announcing the six-month results on Nov. 15 as saying. He will forego 30% of his pay until an extraordinary shareholders meeting to be held early next year. The question now is how the Shizuoka Prefecture-based bank plans to rebuild its image and business. It faces a six-month ban on new loans for investment properties, one of its key sources of income, with no clear path to re-enter the field. Many observers believe it will seek outside assistance to get back on track, including by handing over the nearly 15% stake held by its founding family, the Nikkei says. Regarding a capital partnership, Mr. Arikuni said "nothing is set in stone at this point." But he added that, generally speaking, he is "looking to work with a partner that could take Suruga Bank's strength in retail operations even further," the Nikkei relays. The bank's outlook is relatively bright. Actual net operating profit, which represents how much the bank made through its core businesses, only fell 9% on the year to 30.1 billion yen in the first half, thanks to interest payments on past loans, the Nikkei adds. About Suruga Bank Headquartered in Numazu, Japan, Suruga Bank Ltd. engages in banking business and provides financial services. It operates through Banking and Others segments. The Banking segment provides deposits, loans, domestic and foreign exchange transactions, securities and investment trust, and credit card services. The Others segment offers loan, leasing, bank agency operations, credit card, and insurance services. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 8, 2018, Moody's Japan K.K. downgraded the short- and long- term bank deposit ratings, the baseline credit assessment, Adjusted BCA, and the Counterparty Risk Assessments of Suruga Bank, Ltd. At the same time, the BCA, Adjusted BCA, long-term bank deposit ratings, and long-term CRA for Suruga Bank remain on review for further downgrade. The affected ratings are: - Baseline credit assessment (BCA): downgraded to ba3 from baa3, review for further downgrade - Adjusted BCA: downgraded to ba3 from baa3, review for further downgrade - Long-term bank deposit rating (domestic and foreign currency): downgraded to Ba2 from Baa1, review for further downgrade - Short-term bank deposit rating (domestic and foreign currency): downgraded to Not Prime from P-2 - Long-term Counterparty Risk (CR) assessment: downgraded to Ba1(cr) from A3(cr), review for further downgrade - Short-term Counterparty Risk (CR) assessment: downgraded to Not Prime(cr) from P-2(cr) "The rating action reflects the risk of further material credit costs related to its real estate investment lending in the light of a recent independent investigative report," Moody's said. "This investigation revealed that the size of this portfolio was much larger than previously reported, as well as documenting widespread breaches of the bank's lending policies and document falsification. The downgrades also reflect a deterioration in the bank's liquidity. "The continuing review will continue to focus on the quality of the bank's loan portfolio and the impact on profitability, and its liquidity and funding positions." =============== M A L A Y S I A =============== NAM CHEONG: Posts MYR396.01MM Net Profit in Q3 Ended Sept. 30 ------------------------------------------------------------- The Strait Times reports that Nam Cheong turned profitable in the third quarter on a one-time gain from debt waiver and improved gross profit margins. Net profit for the three months ended Sept. 30 was MYR396.01 million (SGD130.38 million), reversing from a net loss of MYR48.79 million for the year-ago period, the report discloses. Earnings per share for Q3 was 17.6 Malaysian sen compared to loss per share of 2.32 Malaysian sen for the year before. Revenue jumped 20 per cent to MYR94.71 million on increased contributions from both the shipbuilding and vessel chartering divisions. Nine-month net profit was MYR953.32 million, reversing from a net loss of MYR2.12 billion, the Strait Times discloses. According to the Strait Times, Nam Cheong flagged a Q3 one-time gain of MYR353.8 million from waiver and extinguishment of its debts following its recently completed restructuring exercise. This lifted its other income to MYR388.4 million, allowing the group to reverse from a previous year's loss and turn in a Q3 profit after tax of MYR394.0 million. Also helping to bolster the group's bottomline is a more than five-fold increase in its Q3 gross profit, the report states. Gross profit for the three months to Sept 30 surged to MYR25.6 million, up from MYR3.9 million for the year before. Overall gross margins expanded to 27 per cent from 5 per cent mainly on increased revenue contributions from the vessel chartering division, adds the Strait Times. The report adds that the group recorded a Q3 finance income of MYR7.3 million after the adjustment of its interest expense resulting from the execution of the scheme of arrangements linked to its debt restructuring exercise. This compared favourably against MYR27.45 million in finance costs incurred in Q3 FY17. Net asset value per share was negative 7.3 Malaysian sen as at Sept 30, compared to negative 79.1 Malaysian sen a year ago, the report discloses. Total equity was negative MYR515.58 million as at the end of Q3 FY18, says the Strait Times. Malaysia-based Nam Cheong Limited operates as a global offshore marine group. The Company specializes in providing Offshore Support Vessels(OSVs), as well as owns and operates ship building yards for OSVs in Malaysia for use in the offshore oil and gas exploration and production and oil services industries. ===================== P H I L I P P I N E S ===================== COMMUNITY RURAL: Depositors Claims Deadline Set for November 19 --------------------------------------------------------------- The Philippine Deposit Insurance Corporation (PDIC) urged depositors of the closed Community Rural Bank of Magallon (Moises Padilla, Negros Occidental), Inc. to file their deposit insurance claims on or before the last day for filing of claims for insured deposits on November 19, 2018 either through mail addressed to the PDIC Public Assistance Department, 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino Street, Makati City, or personally during business hours at the PDIC Public Assistance Center, 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino Street, Makati City. The PDIC Charter provides that depositors have until two years from bank takeover to file their deposit insurance claims. Community Rural Bank of Magallon was ordered closed by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas on November 17, 2016. According to PDIC, deposit insurance claims for 264 deposit accounts with aggregate insured deposits amounting to PHP1.03 million have yet to be filed by depositors. Data show that as of September 30, 2018, PDIC had paid depositors of the closed Community Rural Bank of Magallon the total amount of PHP15.70 million, corresponding to 92.7% of the bank's total insured deposits amounting to PHP16.94 million. In filing claims personally, depositors are required to submit their original evidence of deposit and present one (1) valid photo-bearing ID with signature of the depositor. It is recommended, however, to bring at least two (2) valid IDs in case of discrepancies in signature. Depositors may also file claims through mail and enclose their original evidence of deposit and photocopy of one (1) valid photo-bearing ID with signature together with a duly accomplished Claim Form, which can be downloaded from the PDIC website, www.pdic.gov.ph Depositors who are below 18 years old should submit either a photocopy of their Birth Certificate issued by the Philippine Statistics Authority (PSA) or a duly certified copy issued by the Local Civil Registrar. Representatives of claimants are required to submit an original copy of a notarized Special Power of Attorney of the depositor or parent of a minor depositor. The Special Power of Attorney template may be downloaded from the PDIC website. Depositors who have been notified of their documentary deficiencies through official letters from PDIC are requested to comply with the indicated requirements. The procedures and requirements for the filing of deposit insurance claims are posted in the PDIC website, www.pdic.gov.ph Meanwhile, depositors with balances of more than the maximum deposit insurance coverage (MDIC) of PHP500,000 who were not able to file their claims on January 30, 2017, the deadline earlier set, should file their claims with the Liquidation Court (Regional Trial Court, 6th Judicial Region, Branch 63, La Carlota City, Negros Occidental) under Special Proceedings No. 2018-751. Likewise, depositors who will not be able to file their deposit insurance claims on November 19, 2018 should file their claims with the said Liquidation Court. Payment of these claims shall be subject to availability of assets of the closed bank, legal priority and approval of the Liquidation Court. Depositors who have outstanding loans or payables to the bank will be referred to the duly designated Loans Officer prior to the settlement of their deposit insurance claims. For more information, depositors and depositor-borrowers may contact the Public Assistance Department at telephone numbers (02) 841-4630 to 31, or e-mail at pad@pdic.gov.ph. Those outside Metro Manila may call the PDIC toll free at 1-800-1-888-PDIC or 1-800-1-888-7342. Inquiries may also be sent as private message at Facebook through www.facebook.com/OfficialPDIC ********* 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 ***