/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/181212.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, December 12, 2018, Vol. 21, No. 246 Headlines A U S T R A L I A CAMBRIDGE LAW: Second Creditors' Meeting Set for Dec. 20 CLOCK TOWER: Second Creditors' Meeting Set for Dec. 14 FORSYTH HOLDINGS: First Creditors' Meeting Set for Dec. 19 FRASER TAGGART: First Creditors' Meeting Set for Dec. 19 HILARY HOLMES: Second Creditors' Meeting Set for Dec. 19 HMR EXCHANGE: First Creditors' Meeting Set for Dec. 18 LIBERTY SERIES 2016-1: S&P Raises Class F Notes Rating to B+ (sf) OAS GROUP: SA Homebuilder Collapses Into Liquidation QUALITY ESTATE: Second Creditors' Meeting Set for Dec. 19 TST & SONS: First Creditors' Meeting Set for Dec. 19 C H I N A DR. PENG TELECOM: Moody's Lowers CFR to B2, Outlook Negative LEECO GROUP: Court Freezes Jia Yueting's Faraday Future Assets REWARD SCIENCE: Moody's Lowers CFR to Ca, Outlook Negative SHANGRAO CITY: Fitch Affirms BB+ LT IDR, Outlook Stable SHARING ECONOMY: Reports Sales of Unregistered Securities YANGZHOU SLENDER: Fitch Assigns BB+ LT IDR, Outlook Stable I N D I A ACQUA PEARL: CRISIL Assigns B+ Rating to INR5.15cr Term Loan ASHA RAM: CRISIL Assigns 'D' Rating to INR5cr Term Loan BARODA AGRO: ICRA Maintains B+ Rating in Not Cooperating BIOP STEELS: ICRA Maintains B+ Rating in Not Cooperating Category CLASSIC AGENCIES: CRISIL Assigns B+ Rating to INR6.36cr Loan DEEP POULTRY: CRISIL Migrates 'B-' Rating to Not Cooperating DOOTERIAH & KALEJ: CRISIL Moves B- Rating to Not Cooperating G. SATHYANARAYANA: Ind-Ra Affirms 'BB-' LT Rating, Outlook Stable HARIOM AQUA: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable HI-CAN INDUSTRIES: CRISIL Reaffirms B Rating on INR15cr Cash Loan HINDUSTHAN CALCINED: ICRA Maintains B- Rating in Not Cooperating LAGU BANDHU: Ind-Ra Withdraws 'BB' Long Term Issuer Rating LUCKNOW MEDICAL: ICRA Maintains B Rating in Not Cooperating MOMENTUM TECHSYS: Ind-Ra Moves BB+ LT Rating to Non-Cooperating NSL SUGARS: ICRA Assigns D Rating to INR219.18cr Term Loan R.E.C. ISPAT: CRISIL Maintains B Rating in Not Cooperating RAVI INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating RELIANCE INFRA: CARE Ratings Off from Watch w/ Dev. Implications ROY APPARELS: CRISIL Migrates B+ Rating to Not Cooperating SARASWATI UDYOG: CRISIL Lowers Rating on INR40cr Term Loan to D SHIV SHAKTI: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating SHREE DATTA: CRISIL Maintains 'B' Rating in Not Cooperating SHREE SAI: CRISIL Migrates 'B+' Rating from Not Cooperating SHREEJI COTTON: ICRA Lowers Rating on INR10.50cr Loan to D SIDDHI VINAYAK: CRISIL Lowers Rating on INR4.6cr Term Loan to D SIDWIN FABRIC: ICRA Reaffirms B+ Rating on INR5.0cr Loan SIGNATURE CERAMIC: ICRA Maintains B+ Rating in Not Cooperating SP SUPERFINE: ICRA Migrates D Rating to Not Cooperating SRI THAI: CRISIL Maintains B Rating in Not Cooperating Category SSS HI-TECH: CRISIL Withdraws D Rating on INR11.5cr Bank Loan SUNSHINE INFRA: CRISIL Lowers Rating on INR105cr LT Loan to D T.K. INTERNATIONAL: ICRA Maintains B- Rating in Not Cooperating TULSIANI CONSTRUCTIONS: ICRA Retains D Rating in Not Cooperating VEMPARALA VENKAT: CRISIL Hikes Rating on INR5.4cr Cash Loan to B+ VICEROY HOTELS: Deadline for Insolvency Process Extended M A L A Y S I A 1MDB: Arul Kanda Arrested by MACC Over Report Tampering S I N G A P O R E NOBLE GROUP: To Seek Court-Ordered Administration in Bermuda S O U T H K O R E A * SOUTH KOREA: Banks' Loan Delinquency Rate Edges Up in October V I E T N A M VIETNAM NATIONAL COAL: S&P Affirms 'B' ICR on Growing Earnings - - - - - ================= A U S T R A L I A ================= CAMBRIDGE LAW: Second Creditors' Meeting Set for Dec. 20 -------------------------------------------------------- A second meeting of creditors in the proceedings of Cambridge Law Group Pty has been set for Dec. 20, 2018, at 10:30 a.m. at the offices of CPA Australia, Level 3, 111 Harrington Street, 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 Dec. 19, 2018, at 4:00 p.m. Nicarson Natkunarajah of Roger and Carson was appointed as administrator of Cambridge Law on Nov. 15, 2018. CLOCK TOWER: Second Creditors' Meeting Set for Dec. 14 ------------------------------------------------------ A second meeting of creditors in the proceedings of Clock Tower Systems Pty Limited has been set for Dec. 14, 2018, at 9:00 a.m. at the offices of DW Advisory, at Level 2, 32 Martin Place, 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 Dec. 13, 2018, at 5:00 p.m. Anthony Elkerton and Cameron Gray of DW Advisory were appointed as administrators of Clock Tower on Nov. 9, 2018. FORSYTH HOLDINGS: First Creditors' Meeting Set for Dec. 19 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Forsyth Holdings Group Pty Ltd will be held at the offices of Level 1, Suite 5, 443 Little Collins Street, in Melbourne, Victoria, on Dec. 19, 2018, at 10:00 a.m. Mathew Gollant of Courtney Jones was appointed as administrator of Forsyth Holdings on Dec. 10, 2018. FRASER TAGGART: First Creditors' Meeting Set for Dec. 19 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Fraser Taggart Motor Engineers Proprietary Limited will be held at the offices of Level 15 114 William Street, in Melbourne, Victoria, on Dec. 19, 2018, at 11:00 a.m. Con Kokkinos & Ivan Glavas of Worrells Solvency were appointed as administrators of Fraser Taggart on Dec. 10, 2018. HILARY HOLMES: Second Creditors' Meeting Set for Dec. 19 -------------------------------------------------------- A second meeting of creditors in the proceedings of Hilary Holmes Makeup Pty Ltd has been set for Dec. 19, 2018, at 10:30 a.m. at Level 1, 5 Everage Street, in Moonee Ponds, 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 Dec. 18, 2018, at 4:00 p.m. Altan Djenab of Wild Apricot Corporate Insolvency was appointed as administrator of Hilary Holmes on Nov. 27, 2018. HMR EXCHANGE: First Creditors' Meeting Set for Dec. 18 ------------------------------------------------------ A first meeting of the creditors in the proceedings of HMR Exchange Pty Ltd ATF HMR Exchange Unit Trust, trading as HMR Referrals, will be held at the offices of Hamilton Murphy, at Level 1, 255 Mary Street, in Richmond, Victoria, on Dec. 18, 2018, at 11:00 a.m. Stephen Robert Dixon and Richard Rohrt of Hamilton Murphy were appointed as administrators of HMR Exchange on Dec. 6, 2018. LIBERTY SERIES 2016-1: S&P Raises Class F Notes Rating to B+ (sf) ----------------------------------------------------------------- S&P Global Ratings raised its ratings on five classes of small- ticket commercial mortgage-backed, floating-rate, pass-through notes issued by Perpetual Trustee Co. Ltd. as trustee of Liberty Series 2016-1 SME. At the same time, S&P affirmed its ratings on two classes of notes. Liberty Series 2016-1 SME is a securitization of loans to commercial borrowers, secured by first-registered mortgages over Australian commercial or residential properties originated by Liberty Financial Pty Ltd. The ratings reflect: -- S&P said, "Our view of the credit risk of the underlying collateral portfolio and the credit support provided for the rated notes, which is commensurate with that credit risk. Our analysis of credit risk is based on our "Principles Of Credit Ratings" criteria; however, where factors that affect borrower performance are similar to those for residential mortgage loans, we have applied similar assumptions." Credit support for the rated notes is provided in the form of subordination. -- The underlying pool of assets has a weighted-average seasoning of 32 months and a weighted-average current loan- to-value ratio of 65.4%. The asset pool consists of 831 consolidated loans as of Sept. 30, 2018. -- The transaction has continued to pay down sequentially since close, increasing the level of subordination to all rated note classes. The outstanding asset balance is AUD262.5 million as of Sept. 30, 2018. -- Asset performance has been stable since inception, with a moderate level of loans in arrears and only minor losses to date. S&P has assumed that loans more than 90 days in arrears have defaulted, in line with its "Australian RMBS Rating Methodology And Assumptions" criteria, published Sept. 1, 2011. -- Exposure to self-managed superannuation funds (SMSFs) loans has increased since transaction close to 48% from 36%. Although SMSF loans are limited-recourse lending, the risk of this affecting borrowers' payment behavior is somewhat mitigated by features such as personal guarantees being provided by SMSF members for every loan to an SMSF in the asset pool. In the absence of a substantial track record and performance data on SMSF loans, S&P Global Ratings has applied an additional adjustment in its credit-support calculation. -- The transaction benefits from a number of structural mechanisms, including an amortizing liquidity facility equal to 3.0% of the outstanding balance of the rated notes, and principal draws, which are sufficient under our stress assumptions to ensure timely payment of interest. In addition, a cash reserve of A$2.65 million, which has built up from excess spread, provides additional support to the transaction. S&P's cash-flow analysis also reflects that a minimum margin will be maintained on the assets. -- The transaction passes our stressed cash-flow modeling scenarios at their respective rating levels, having the ability to make timely interest and ultimate payment of principal. RATINGS RAISED Liberty Series 2016-1 SME Class To From B AAA (sf) AA (sf) C A+ (sf) A (sf) D BBB+ (sf) BBB (sf) E BB+ (sf) BB (sf) F B+ (sf) B (sf) RATINGS AFFIRMED Liberty Series 2016-1 SME Class Rating A1 AAA (sf) A2 AAA (sf) OAS GROUP: SA Homebuilder Collapses Into Liquidation ---------------------------------------------------- Bension Siebert at InDaily reports that OAS Group has gone under, leaving 40 suburban houses unfinished and AUD2.4 million in debt to dozens of creditors. Liquidator Tim Clifton, of Clifton Hall, told InDaily his firm was yet to establish whether or not insurance had been taken out that would ensure those houses do eventually get built. The company owes 80 unsecured creditors an estimated total of AUD2.27 million, according to a document registered with the Australian Securities and Investments Commission (ASIC) and obtained by InDaily. All unsecured creditors are South Australian except for four Victorian and one Western Australian company, and the Australian Tax Office. The ATO is owed an estimated AUD10,000. The creditor most out of pocket is AJV Pty Ltd, owed AUD500,000. A total of AUD137,000 is owed to the only secured creditor, Westpac bank, InDaily. According to the document cited by InDaily, the company has AUD316,400 worth of assets and AUD141,000 worth of realisable values. InDaily understands the company had applied to become an H2 member of the Master Builders' Association, suggesting that it builds between 10 and 49 houses a year, and that the membership application had not been ratified. According to InDaily, Clifton Hall said in a statement that the directors of OAS Group had blamed a downturn in the housing industry for its collapse. "The company's directors have highlighted the continued downturn in the housing industry, increased competition and low margins as the cause of the company's demise," Clifton Hall said. Liquidator Timothy Clifton stated that it was disappointing to see a further building company unable to continue in the marketplace. Mr. Clifton added that he is considering the full financial position of the company and will report to creditors in due course, InDaily relays. OAS Group is a South Australian construction company. It has been operating since 2013. QUALITY ESTATE: Second Creditors' Meeting Set for Dec. 19 --------------------------------------------------------- A second meeting of creditors in the proceedings of Quality Estate Distributors NSW Pty Ltd has been set for Dec. 19, 2018, at 9:30 a.m. at the offices of Worrells Solvency & Forensic Accountants, Suite 1, Level 15, 9 Castlereagh 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 Dec. 18, 2018, at 5:00 p.m. Simon Cathro of Worrells was appointed as administrator of Quality Estate on Nov. 20, 2018. TST & SONS: First Creditors' Meeting Set for Dec. 19 ---------------------------------------------------- A first meeting of the creditors in the proceedings of TST & Sons Retail Marketing Pty Ltd, trading as Golden Banana Fruit Market, will be held at the offices of One Wharf Lane, Level 20, 171 Sussex Street, in Sydney, NSW, on Dec. 19, 2018, at 3:00 p.m. Alan Walker and Andre Lakomy of Cor Cordis were appointed as administrators of TST & Sons on Dec. 7, 2018. ========= C H I N A ========= DR. PENG TELECOM: Moody's Lowers CFR to B2, Outlook Negative ------------------------------------------------------------ Moody's Investors Service has downgraded Dr. Peng Telecom & Media Group Co., Ltd.'s corporate family rating to B2 from Ba3. At the same time, Moody's has downgraded Dr. Peng Holding Hongkong Limited's senior unsecured rating to B2 from Ba3. The notes are unconditionally and irrevocably guaranteed by Dr. Peng Telecom. The outlook on the ratings remains negative. RATINGS RATIONALE "The downgrade and negative outlook reflect Dr. Peng Telecom's pressured operating performance and significantly weakened liquidity; both factors of which have made it more challenging for the company to refinance the bulk of its maturities in 2020, considering its limited long-term sources of financing," says Danny Chan, a Moody's Analyst. "The downgrade also reflects Dr. Peng Telecom's weakening cash flow generation, amid intense competition and ongoing investment needs," adds Chan who is also Moody's Lead Analyst for Dr. Peng Telecom. "These factors position the company in the B rating category." Dr. Peng Telecom's refinancing risk will remain high over the next 18 months, as its offshore bond approaches maturity in June 2020. The company will face repayment needs of RMB5.1 billion in 1H 2020, mainly comprising the USD454.35 million worth of outstanding offshore bonds and the two onshore bonds puttable in April 2020 and June 2020. At the same time, the company's liquidity has weakened substantially over the past six months, owing to weakened operating cash flow generation and high capital expenditure and share repurchases in 2018, resulting in a sharp reduction in its cash balance to RMB1.9 billion at September 30, 2018 from RMB3.3 billion at the end of 2017. If the company continues its share repurchase plan, such a strategy could further reduce its cash buffer. In the 11 months between January and November 2018, Dr. Peng Telecom purchased up to RMB402 millions of its own shares. Moody's points out that the stabilization of Dr. Peng Telecom's operating performance remains uncertain. Moody's anticipates that Dr. Peng Telecom will continue to show a decline in its broadband revenue over the next one to two years, given the aggressive pricing strategies of its competitors and the increasing usage of mobile network over fixed broadband, which have posed structural threats to the company's core-broadband business. While its broadband business remains sluggish, contribution from other businesses will be limited in the near term. Moody's notes that the company is gradually shifting to internet data center operation. However, heavy capital requirements and a long back- pay cycle for its data center business will limit the pace of expansion. As such, the company will likely report a mid-high single digit decline in revenue over the next 12-18 months, following a 17% year-on-year fall in revenue in the nine months to September 30, 2018, based on Moody's estimates. Moody's expects that the company will report operating cash flow (OCF) of around RMB1.5-RMB2.0 billion per annum over the next 12- 18 months; a result which is significantly lower than the RMB3.0- RMB4.0 billion per annum registered during 2014-2017. Meaningful recovery in OCF will be unlikely over the next one to two years, against the backdrop of strong competition in broadband services in China. While Moody's expects that Dr. Peng Telecom will reduce its capital expenditure after paying down the outstanding construction cost for its broadband business in 2018, its likely OCF in the next one to two years would be insufficient to meet its reduced capital requirement; thereby resulting in sustained negative free cash flow. Moody's will continue to monitor the company's progress on the refinancing and expansion of its onshore and offshore funding channels. Moody's notes that Dr. Peng Telecom obtained certain facilities in the past nine months. Access to long-term committed funding will be crucial in sustaining its credit quality, as its outstanding bonds approach maturity in 2020. Dr. Peng Telecom's B2 CFR reflects the company's ownership of a last mile broadband network, early entrant advantage and established network coverage. These credit positives are balanced against the rapid changes in the industry, increasing competition and more aggressive financial policy that has included a series of acquisitions and will likely include capital distributions. The negative ratings outlook continues to incorporate Moody's concern over the intense competition from well-sourced and large- sized rivals in a market with significant regulatory risk, as well as the heightening refinancing risks. Moody's points out that the ratings do not face upward pressure, given the negative ratings outlook. Nevertheless, Moody's could revise the outlook to stable if Dr. Peng Telecom: (1) demonstrates meaningful progress on refinancing its upcoming maturities; (2) develops a sustainable business plan to stop the decline in its sales and operating cash flow; and (3) generates free cash flow. But Moody's could downgrade the ratings if: (1) Dr. Peng Telecom makes little or no progress on refinancing its upcoming maturities or pursues other corporate activities that further weaken its liquidity; (2) the company's revenue and cash flow further weaken; and/or (3) its credit metrics weaken further or free cash flow remains negative over a prolonged period. The principal methodology used in these ratings was Telecommunications Service Providers published in January 2017. Dr. Peng Telecom & Media Group Co., Ltd. is the fourth-largest telecommunications operator in China by revenue. It is also the largest private telecommunications operator in the country by the same measure, offering broadband internet access and application services across 26 provinces and 212 cities. Headquartered in Beijing, the company was founded in 1985 and listed on the Shanghai Stock Exchange (600804.CH) in 1994. At December 31, 2017, Chairman Yang Xue Ping and his spouse held an approximate 11.4% stake in the company. LEECO GROUP: Court Freezes Jia Yueting's Faraday Future Assets -------------------------------------------------------------- South China Morning Post reports that China's heavily indebted businessman Jia Yueting is set to lose control of the electric car start-up Faraday Future, after a court in the British Virgin Islands ordered freezing his shareholding in the wannabe Tesla killer. SCMP relates that the Eastern Caribbean Supreme Court in the BVI last week ruled in favor of Jia's creditor, To-Win Capital, and allowed it to proceed with freezing his 33 per cent stake in Faraday Future controlled through his nominees and various layers of offshore holding companies. According to the report, the ruling vindicates an arbitration award given by the Beijing Arbitration Commission in favor of To- Win Capital against Jia in January. "This is significant because it is the first known success by Jia Yueting's creditors to freeze and enforce rulings against his assets outside China, particularly in the offshore jurisdictions," the report quotes Shaun Wu, a partner at the law firm Kobre & Kim in Shanghai, which represents To-Win Capital, as saying. "We know that many creditors are queuing at Jia's gates to get their money back, but the domestic assets under Jia are mostly already frozen, and so we are setting out to seize his most important offshore assets, namely his shareholdings in Faraday Future held through BVI structures," he added. Jason Kang, another lead lawyer at Kobre & Kim based in Hong Kong, said that the ruling now means that Jia cannot freely deal with his 33 per cent stake in the company or transfer it to someone else, the report relays. According to SCMP, Kang said that to enforce a judgment or award given in the BVI, the first step that a creditor has to take is make an application to the court to obtain ownership of the stake. Jia is one of China's most high-profile entrepreneurs who once openly challenged Apple and Tesla for being outdated. The founder of the internet conglomerate LeEco Group ran into trouble as his business crumbled under the weight of heavy debt last year, SCMP discloses. Leshi, the Shenzhen-listed arm of LeEco Group, is also owed billions of yuan by companies related to the LeEco Group. SCMP says Jia went into self-exile in the US after missing a deadline set by the Beijing Securities Regulatory Bureau, which ordered him to return to China before the end of 2017. In an open letter published last year, Jia had asked his wife and younger brother to represent him and handle regulatory issues relating to the billions owed in China, the report recalls. However, he insisted that he would "do everything he could to solve any debt problems with both the listed and unlisted companies", from the US. He stressed that the only hope to turn things around was "to guarantee volume production and to ensure the delivery of the FF91," referring to the luxury electric car that LeEco was developing with Faraday Future in California, according to SCMP. However, as Faraday Future's financial condition deteriorated it closed down a plant and laid off people, the report states. But in a dramatic turn of events in June, Evergrande Health Industry Group, a subsidiary of China's second largest developer China Evergrande, announced that it would acquire a 45 per cent stake in Faraday Future for US$2 billion through a network of offshore holding companies, the report says. But that relationship turned sour in October as Evergrande Health and Faraday Future were embroiled in a lawsuit regarding the investment. This has triggered lay-offs, furloughs and people leaving since October, as the financial situation has worsened, Faraday Future said a statement issued this month, adds SCMP. REWARD SCIENCE: Moody's Lowers CFR to Ca, Outlook Negative ---------------------------------------------------------- Moody's Investors Service has downgraded Reward Science and Tech. Industry Grp. Co Ltd's corporate family rating to Ca from B3. At the same time, Moody's has downgraded to Ca from B3 the rating on the 7.25% 3-year senior unsecured notes issued by Reward International Investment Limited and guaranteed by Reward. The outlook on the ratings remains negative. RATINGS RATIONALE The change in the ratings follows Reward's announcement of the default on its domestic commercial paper issued in 2017 and due on December 6, 2018. The defaulted amount totaled RMB322.5 million (around $47 million), and will likely trigger cross default on its US-dollar senior unsecured notes. Moody's is concerned about the amount of recovery for bondholders. According to the company's announcement, the reason for the failure to pay was because of insufficient funds. Moody's notes that the company reported a cash balance of RMB4.2 billion at September 30, 2018 and short-term debt - including bills payable - of RMB2.1 billion as of the same date. In addition, Reward issued RMB300 million in 3-year medium term notes on August 1, 2018. The company was cited in December 2017 for regulatory violations by the China Securities Regulatory Commission, including the misappropriation of funds from onshore bond proceeds, inadequacies on information disclosure, and weak financial management and poor accounting quality. The negative ratings outlook reflects the uncertainty of the recovery. The principal methodology used in these ratings was Global Packaged Goods published in January 2017. Headquartered in Beijing, Reward Science and Tech. Industry Grp. Co Ltd engages in the production and marketing of dairy and other food products, as well as daily consumer products (mainly cleaning products), and other businesses, such as the leasing of commercial property and hotels. SHANGRAO CITY: Fitch Affirms BB+ LT IDR, Outlook Stable ------------------------------------------------------- Fitch Ratings has affirmed Shangrao City Construction Investment Development Group Co., Ltd.'s (SCID) Long-Term Foreign- and Local-Currency Issuer Default Ratings of 'BB+' with a Stable Outlook. Fitch has also affirmed the rating on SCID's USD300 million senior unsecured bonds due 2020 at 'BB+'. SCID is a China-based government-related entity established in 2002 to construct and invest in public works such as roads, bridges, social housing, parks, and water treatment facilities, in Shangrao. Agent construction for infrastructure and social housing accounted for 92% of total revenue, followed by land development at 2% in 2017. Fitch expects the local government's development and investment plan to be a catalyst for SCID's revenue growth as the majority of the company's revenue is associated with public works. KEY RATING DRIVERS 'Very Strong' Status, Ownership and Control: Under SCID's legal status, the local government does not bear the ultimate liability for its debt if it defaults. Nevertheless, de facto government ownership and the government's significant influence on the overall operation of SCID reinforce Fitch's expectation that the government has a high propensity to extend SCID support. The State-owned Assets Supervision and Administration Commission of Shangrao, the only de-facto shareholder of SCID, appoints the company's senior management and assesses the company's performance. The majority of projects that SCID carries out are awarded by the local government, with the project budgets, financing practices and progress to be reported to the local government. 'Strong' Support Track Record and Expectations: The local government has a track record of supporting SCID by awarding it public works. In addition, the government provided financial support, including fund contributions and injections of paid-in capital, to compensate for the weak profitability of the public works and strengthen SCID's capital base. Subsidies were also provided to help SCID service its debt. Fitch expects the support to continue as SCID's public works are important, but are capital intensive and require financial support to be viable. 'Moderate' Socio-Political Implications of Default: Fitch expects a default by SCID to adversely impact the municipality's urban development and the local economy indirectly due to the strategic importance of the infrastructure projects and other public welfare-related business, such as public transportation. However, SCID's default would not necessarily lead to substantial disruption in service provision as other GREs and private-sector companies may provide substitutes. 'Very Strong' Financial Implications of Default: SCID is the primary financing and investment platform that the government uses to facilitate urban development projects. Most of the company's debt is related to public works in the city, which gives the local government incentive to avoid insolvency at SCID. In addition, various financial institutions, including policy banks and commercial banks, are involved in the entity's financing, and the institutions' willingness and capacity to lend to other GREs could be reduced should SCID default. High Leverage Constrains Standalone Profile: Total revenue rose 95% to CNY4.1 billion in 2017 from CNY2.1 billion in 2016 due to solid growth in agent construction. However, cost overruns due to construction delays led the gross profit margin to shrink to 3.8% from 14.5%. The margin is likely to return to normal from 2018 as the contractual framework should support a stable margin (11% in 9M18). Constant investment in public works led to a rise in Fitch- adjusted net debt to EBITDA to 38x in 2017 (2016: 20x). Fitch expects liquidity to continue to be reliant on external financing and leverage to remain high in the medium term, which constrain SCID's standalone credit profile to the 'B' category under Fitch's Rating Criteria for Public-Sector, Revenue-Supported Debt. RATING SENSITIVITIES Triggers for Upgrade: A revision in Fitch's perception of Shangrao Municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would lead to a change in ratings. Positive rating action may be triggered by a revised assessment of the socio- political implications of a default that enhances the municipality's incentive to provide legitimate support. An improved standalone credit profile may also result in positive rating action. Triggers for Downgrade: A downgrade may result from a weakening of the socio-political and/or financial implications of a default, or deterioration in its assessment of the municipality's support record, or a dilution of the government's shareholding. SHARING ECONOMY: Reports Sales of Unregistered Securities --------------------------------------------------------- Sharing Economy International Inc. has filed a Form 8-K with the Securities and Exchange Commission attaching an exhibit setting forth all of the sales of the Company's securities not registered under the Securities Act of 1933, as amended from Sept. 30, 2017 to date. The Shares were issued in consideration for, among other things, human resource services, consulting services, marketing and advertising services, investor relations advisory services, business development, financial advisory services, accounting services, director bonuses, staff bonuses, software development services, and IT support services. As at Nov. 13, 2018, the Company had 7,537,925 shares of common stock issued and outstanding. The full-text copy of the Exhibit is available at no charge at https://is.gd/IfCIJp About Sharing Economy Headquartered in Jiangsu Province, China, Sharing Economy International Inc. -- http://www.seii.com/-- through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry. The Company's latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. Throughout 2017, the Company made significant changes in the overall direction of the Company. Given the headwinds affecting its manufacturing business, the Company is targeting high growth opportunities and has established new business divisions to focus on the development of sharing economy platforms and related rental businesses within the company. These initiatives are still in an early stage. The Company did not generate significant revenues from its sharing economy business initiatives in 2017. RBSM LLP's audit opinion included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2017 contains a going concern explanatory paragraph stating that the Company had a loss from continuing operations for the year ended Dec. 31, 2017 and expects continuing future losses, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. RBSM has served as the Company's auditor since 2012. Sharing Economy incurred a net loss of $12.92 million in 2017 and a net loss of $11.67 million in 2016. As of Sept. 30, 2018, the Company had $59.80 million in total assets, $9.46 million in total liabilities and $50.33 million in total equity. YANGZHOU SLENDER: Fitch Assigns BB+ LT IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has assigned China-based Yangzhou Slender West Lake Tourism & Development Group Co., Ltd. Long-Term Foreign- and Local-Currency Issuer Default Ratings of 'BB+'. The Outlook is Stable. SWL's ratings are credit-linked to, but not equalised with, Fitch's internal assessment of Yangzhou municipality in eastern China. The link is reflected in SWL's very strong status, ownership and control by the government, its moderate level of support and the weak socio-political and strong financial implications of a default. SWL is rated under Fitch's Government- Related Entities Rating Criteria with a top-down approach. KEY RATING DRIVERS 'Very Strong' Status, Ownership, and Control: SWL is registered as a limited liability company under China's company law and it is 100% directly owned by the municipality via Administration Committee of Yangzhou Shugang-Slender Westlake Scenic Spot. Its group strategy and mission are largely supervised and monitored by SWLAC, which ultimately reports to the municipal government. The 'Very Strong' attribute reflects the full ownership by government. 'Moderate' Support Track Record, Expectations: SWL has been granted the concession rights, which have no expiration, to operate and charge admission fees for the Slender West Lake Park, a scenic lake and garden with traditional Chinese architecture in the centre of Yangzhou. The company has received consistent subsidies since 2013 although the amounts have been declining since 2015, mainly due to the absence of interest expense and general tourism subsidies. Capital injections, through rebates on land sale revenue and exemptions on debt, made up around 4% of total assets at end-2014 and end-2015. The issuer reported another CNY1 billion in capital injection in 2017. SWL also had CNY1.54 billion of debt due to the government after a debt-swap programme as of 1H18, which Fitch expects to be written off as a capital injection in the next few years although the timing is uncertain. SWL also had CNY1.8 billion of debt the municipality has pledged to repay. The 'Moderate' factor assessment reflects the irregularity of the capital injections compared with peers with stronger attributes. 'Weaker' Socio-Political Implications: SWL is tasked with upgrading the tourist assets within Yangzhou, which are crucial for boosting the regional economy and its fiscal status. The sector is considered an unusual development sector for traditional Chinese local urban infrastructure developers, and is more vulnerable to social or political changes and economic cycles. Yangzhou's tourism industry contributed 7.7% of its gross domestic product in 2017, an increase from 0.2% in 2016, according to the issuer. Despite the material contribution to the local economy, the industry SWL operates in has private and public competitors and the availability of existing tourism infrastructure in neighbouring regions would also offset the social impact should SWL fail. The socio-political implications of a default were therefore assessed at 'Weaker' in comparison with GREs in other business sectors that are more closely linked with social-wellbeing or daily necessities. 'Stronger' Financial Implications: SWL is one of the larger GREs under the Yangzhou municipal government with total assets of around CNY23.8 billion at end-1H18. SWL borrows from local commercial banks, often from their municipal branches. Around 20% of SWL's total debt at end-August 2018 was long term in nature due to the local government debt-swap programme and other government-funded programmes. A default by SWL would significantly increase the funding constraints of other GREs under the municipality as the failure would be seen as closely related to the fiscal situation of the local government. Poor Standalone Credit Profile: Fitch sees SWL's standalone credit profile in the 'B' category at best, based on its assessment of a weaker financial profile, and mid-range revenue defensibility and operating risk, weighed down by SWL's high leverage both historically and in its forecast period of 2018- 2020. SWL's financial profile is constrained by decreasing profitability in core business segments and surging debt growth, accompanied by a decline in government subsidies with irregular capital injections. The EBITDA margin dropped from above 21% in 2014 to 15.81% in 2017, and under Fitch's rating-case scenario the trend will continue, with the margin eventually sliding to 10.39% by 2020. As a result, its interest coverage ratio, or EBITDA/gross interest rate, will probably continue to remain under 1x up to 2020 (0.3x in 2017). Fitch expects net debt/EBITDA to jump to 80x-100x from 67x at end-2017 under Fitch's rating- case scenario, which is slightly stressed based on a through-the- cycle rating methodology. 'Mid-Range' Revenue Defensibility: SWL's operating revenue has been decreasing since 2015 as a result of a slowdown in the completion of tourism projects and a recent drop in the admission price for SWL Park. Fitch believes demand for SWL's business will be generally stable due to the constant upgrade of tourism infrastructure in the city and the increasing popularity of domestic tourism. However, the benefits are offset by the lack of pricing power for SWL as the markup for its tourism construction business fell from 20% to 5% starting 2017, the government's introduction of discounts for admission to SWL Park in April 2017, and the intense competition in SWL's other business segments, including garden construction and property development, which have all constrained SWL's revenue defensibility. 'Mid-Range' Operating Risk: SWL can recover part of its operating costs related to tourism construction and operation through government support, including occasional cost overruns, which occurred in about 5% of the construction projects SWL undertook, according to the company. The still-robust domestic labour market and the easy availability of the raw materials needed for construction contribute to a 'Stronger' resource management attribute. However, its capital planning and management are assessed at 'Neutral' based on a record of generally efficient behaviour, leading to an overall 'Mid-Range' assessment of its operations. RATING SENSITIVITIES A revision of Fitch's perception of Yangzhou's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would lead to a change in ratings. A downgrade may result from a significant weakening of its assessment of the status, ownership and control, support track record and expectations and financial implications of a default by SWL. An upgrade may result from a significantly improved support track record and expectations, a change in business scope that leads to a higher assessment of the social-political implications or any strengthening in the financial implications of a default by SWL. A significant improvement in the standalone credit profile of SWL may result in a rating change under the GRE criteria. ========= I N D I A ========= ACQUA PEARL: CRISIL Assigns B+ Rating to INR5.15cr Term Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating on the long- term bank facility of Acqua Pearl Properties (India) Private Limited (APPIPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 5.15 CRISIL B+/Stable (Assigned) The rating reflects the company's exposure to initial phase of operation amid intense competition in the warehouse industry in Kerala, and its below-average financial risk profile. These rating weaknesses are partially offset by the extensive experience of APPIPL's promoters. Key Rating Drivers & Detailed Description Weaknesses * Initial phase of operation and exposure to intense competition in the warehouse industry in Kerala: The warehouse industry in Kerala is regulated by the government. Rental rates, fixed by the Department of Agricultural Marketing, limit the scope for players to leverage their strengths and geographical advantages. Furthermore, the industry is highly fragmented, with presence of many players. The company has commenced commercial operations from June 2018, adequate capacity utilization and ramp-up in sales remain a key rating sensitivity. * Below-average financial risk profile: Financial risk profile is expected to be below-avrage due to a small networth and debt funded project capex. Networth is expected to be small and gearing high at INR0.7 crore and 11.57 times, respectively, as on March 31, 2019. Though low accretion to reserves will keep networth subdued, gradual term debt repayment will help improve the gearing. Strength: * Extensive experience of the promoters: The decade-long experience of the promoters in the warehouse business, and their healthy relationships with traders and farmers, will support the ramp-up and business risk profile. Outlook: Stable CRISIL believes APPIPL will benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if higher than expected cash accruals because of strong ramp-up in sales or infusion of capital, strengthens the financial risk profile and risk absorption capacity. The outlook may be revised to 'Negative' if lower cash accruals or stretch in receivables, or any large capital expenditure, weakens liquidity. APPIPL was set up in 2018, by Mr Salim. The company provides warehouse facilities to shrimp growers. ASHA RAM: CRISIL Assigns 'D' Rating to INR5cr Term Loan ------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Asha Ram Tek Ram Educational Trust (ARTRET). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 5 CRISIL D (Assigned) The rating reflects delays by the trust in servicing its term debt. Rating also factors in weak financial risk profile and small scale of operations. These ratings weaknesses are partially offset by the trustees experience in the industry. Key Rating Drivers & Detailed Description Weakness * Delays in servicing term debt: Servicing of the term loans of INR5.00 crore has been irregular, because net cash accruals are insufficient for the purpose. There are delays of 40-60 days in the repayment of principal and interest by the trust. * High gearing and low net-worth: ARTRET has a hHigh gearing as on March 31, 2018 on account of low networth, constrain financial risk profile as of March 2018. Accumulated losses and high debt keep debt protection metrics weak. * Small scale of operations: With operations commencing only in fiscal 2015, scale remains modest, with an operating income of INR1.25 crore in fiscal 2018. However, the trust has incurred losses due to high interest cost. Strength: * Extensive experience of the trustees: The trustees have experience of more than a decade in diversified businesses. ARTRET, registered in 2011, operates Asha Jyoti Vidyapeeth School in Faridabad (Haryana). The school is affiliated to the Central Board of Secondary Education. Mr Satyavir Dagar and Mrs Prem Lamba are the key promoters. BARODA AGRO: ICRA Maintains B+ Rating in Not Cooperating -------------------------------------------------------- ICRA said the long term and the short term rating for the bank facilities of Baroda Agro Chemicals Limited (BACL) continues to remain under the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable)/A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 10.30 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund based- 14.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non-Fund Based 1.50 [ICRA]A4 ISSUER NOT Limits COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non fund based (5.75) [ICRA]A4 ISSUER NOT Short term COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Baroda Agro Chemicals Limited (BACL) was incorporated in 1996 by Mr. K.V Rao. BACL is engaged in the manufacture of insecticide, pesticide and fungicide formulations. The company operates from its manufacturing facility located at Halol near Vadodara city with an installed capacity of ~265 KL/per day. BACL enters into contract manufacturing as well as job work with respect to generic pesticide formulation and can produce formulations in varying forms like Emulsifiable Concentrates (EC), Dusting Powders (DP), Granules (G), Wettable Powders (WP), Soluble Powders (SP), Suspension Concentrates (SC), Flowables Slurries (FS), Water Disbursable Granules (WDG), Dry Flowables (DF) and Soluble Granules (SG). BIOP STEELS: ICRA Maintains B+ Rating in Not Cooperating Category ----------------------------------------------------------------- ICRA said the ratings for the INR33.50-crore bank facilities of BIOP Steels & Power Private Limited (BSPPL) continue to remain in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B+ (Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 19.00 [ICRA]B+ (Stable); ISSUER NOT Based facilities COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Short Term-Non 14.50 [ICRA]A4; ISSUER NOT Fund based COOPERATING; Rating continues facilities to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. BIOP Steels & Power Private Limited (BSPPL) is part of the "Modi Group of Companies" headed by Mr. Santosh Kumar Modi. BSPPL was incorporated in the year 2010 and is engaged in the manufacture of sponge iron. The plant is located in Bellary district of Karnataka and has its own sponge iron manufacturing unit in Belagal (near Bellary) with the capacity of 200 MT per day using iron ore and coal as the basic raw materials. CLASSIC AGENCIES: CRISIL Assigns B+ Rating to INR6.36cr Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Classic Agencies (CA). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working Capital Facility .64 CRISIL B+/Stable (Assigned) Cash Credit 6.36 CRISIL B+/Stable (Assigned) Long Term Loan 1.00 CRISIL B+/Stable (Assigned) The rating reflects a modest scale and working capital intensive nature of operations, and a below-average financial risk profile. These weaknesses are partially offset by the experience of more than 20 years of the partners in the home appliances dealership industry and an established relationship with customers and principals. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Revenue was INR14.16 crore in fiscal 2018. The scale has also declined marginally over past three years through 2018. The business is restricted to limited geographies and intense competition rstrict the scale of operation. * Working capital-intensive nature of operations: Gross current assets and debtors were high at 254 and 168 days, respectively, as on March 31, 2018, resulting in substantial dependence on external debt and high bank line. Operations are likely to remain working capital intensive over medium term. * Below-average financial risk profile: The networth was modest and the gearing high at INR2.57 crore and 2.74 times, respectively, as on March 31, 2018. Debt protection metrics were average: the interest coverage ratio was 1.6 times in fiscal 2018. The financial risk profile is likely to remain below average over medium term. Strengths * Industry experience of the partners: The partners have an experience of 20 years in the home appliances distribution business in Kerala. This has enabled them to establish a healthy relationship with customers and shop owners in the region and maintain stable business operations. Outlook: Stable CRISIL believes CA will continue to benefit from the extensive industry experience of its partners. The outlook may be revised to 'Positive' if there is significant improvement in operating profitability, leading to higher cash accrual and a healthy capital structure. The outlook may be revised to 'Negative' in case of lower-than-expected revenue or profitability, or a stretch in the working capital cycle, resulting in deterioration in the financial risk profile, particularly liquidity. CA is a partnership firm of Mr. Jayaprakashan, Mr Obaidullah Khan, Mr. Unnikrishnan and Mr. V. Mani. The firm, based in Kozhikode, is a dealer in electrical home appliances of Bajaj Home Appliances, Bosch and Crompton Greaves Ltd etc. DEEP POULTRY: CRISIL Migrates 'B-' Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Deep Poultry Farm (DPF) to 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 4.5 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with DPF for obtaining information through letters and emails dated August 27, 2018, October 26, 2018 and October 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 DPF. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DPF 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 DPF to 'CRISIL B-/Stable Issuer not cooperating'. Deep Poultry Farm (DPF) was established in 2016, to purchase poultry unit for 100,000 commercial layer birds along with feed mill. The total estimated cost of the project is Rs.7.57 Crore. DOOTERIAH & KALEJ: CRISIL Moves B- Rating to Not Cooperating ------------------------------------------------------------ CRISIL has migrated the rating on bank facilities of Dooteriah & Kalej Valley Tea Estates Private Limited (DKVTE) to 'CRISIL B- /Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 8.1 CRISIL B-/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with DKVTE for obtaining information through letters and emails dated August 28, 2018 and September 28, 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 DKVTE. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DKVTE 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 DKVTE to 'CRISIL B-/Stable Issuer not cooperating'. Dooteriah & Kalej Valley Tea Estates Pvt Ltd (DKVTE), incorporated in January 1983 is engaged in manufacture, supply and export of various kinds of tea, including green tea, and black tea. The company has three tea estates, Dooteriah, Kalej Valley and Pashok in Darjeeling. G. SATHYANARAYANA: Ind-Ra Affirms 'BB-' LT Rating, Outlook Stable ----------------------------------------------------------------- India Rating and Research (Ind-Ra) has affirmed G. Sathyanarayana Reddy Transport's (G. Sathya) Long-Term Issuer Rating at 'IND BB- '. The Outlook is Stable. The instrument-wise rating actions are: -- INR30 mil. (increased from INR25 mil.) Fund-based working capital limits affirmed with IND BB-/Stable/IND A4+ rating; and -- INR55 mil. (increased from INR50 mil.) Non-fund-based working capital limits affirmed with IND A4+ rating. KEY RATING DRIVERS The affirmation reflects G. Sathya's continued small scale of operations. In FY18, the revenue increased to INR149 million (FY17: INR88 million) on account of a stable order book. The company booked revenue of INR97 million for April-November 2018. The ratings continue to reflect G. Sathya's modest liquidity, indicated by an average maximum working capital utilization of 83% for the 12 months ended November 2018. At end-FY18, the company had a cash balance of INR0.26 million (end-FY17: INR4.77 million). Cash flow from operations remained negative at INR3.94 million in FY18 (FY17: negative INR16.69 million), mainly because of a change in working capital. The ratings also remain constrained by G. Sathya's modest credit metrics due to average operating profitability. The EBITDA margin rose to 8.3% in FY18 (FY17: 6.2%), with return on capital employed of 14% (8%), because of the execution of high-margin work orders. However, interest coverage (operating EBITDA/gross interest expense) deteriorated to 2.25x in FY18 (FY17: 2.74x) as net expenses increased to INR5.48 million (INR2 million). Additionally, net leverage (adjusted net debt/operating EBITDAR) remained high, though it improved to 3.54x (5.82x) due to an increase in absolute EBITDA. The ratings, however, are supported by the proprietor's experience of over two decades in providing transportation services. RATING SENSITIVITIES Negative: A substantial decline in the revenue and operating profitability, leading to deterioration in the overall credit metrics, all on a sustained basis, will lead to a negative rating action. Positive: A significant increase in the scale of operations and operating profitability, leading to an improvement in the credit metrics, all on a sustained basis, could be positive for the ratings. COMPANY PROFILE G. Sathya, based in Warangal (Dist), was incorporated in 2011 as a proprietor ship firm by Mr. Gandra Sathya Narayana Reddy. The firm is engaged in the transportation of coal, oil and sand. HARIOM AQUA: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Hariom Aqua Culture Private Limited (HAPL) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR106 mil. Fund-based facilities assigned with IND BB/Stable/IND A4+ rating; and -- INR18.95 mil. Long-term loans due on December 2021 assigned with IND BB/Stable rating. KEY RATING DRIVERS The ratings reflect HAPL's medium scale of operations as indicated by revenue of INR871 million in FY18 (FY17: INR572 million). The growth in revenue was on account of a rise in contract farming and an increase in production due to a change in shrimp species. The ratings also factor in by the company's modest credit metrics as reflected by gross interest coverage (operating EBITDA/gross interest expenses) of 2.41x in FY18 (FY17: 2.41x) and net leverage (adjusted net debt/operating EBITDA) of 3.27x (2.46x). The deterioration in the credit metrics was on account of an increase in debt to fund its working capital requirements. The ratings are also constrained by HAPL's tight liquidity position with 98% average utilization of the fund-based limits during the 12 months ended October 2018. At FYE18, the company had a cash balance of INR12 million (FY17: INR31 million). Cash flow from operations turned negative to INR45 million in FY18 from positive INR37 million in FY17 due to mainly an increase in working capital. However, the ratings benefit from the company's healthy EBITDA margin of 4.2% in FY18 (FY17: 3.9%) with a return on capital employed of 21% (20%). The increase in margins was attributed to a reduction in cost of goods sold. The ratings are also supported by HAPL's promoters' over two decades of experience in shrimp farming, leading to longstanding relationships with customers and suppliers. RATING SENSITIVITIES Positive: A sustained increase in the revenue and operating profitability margins, leading to an improvement in the credit metrics on a sustained basis would be positive for the ratings. Negative: Any deterioration in the revenue and operating profitability margins leading to a sustained deterioration in the credit metrics would be negative for the ratings. COMPANY PROFILE Incorporated in January 2010 by Mr. Suresh Patel and Mr. Hitesh Patel, HAPL is engaged in shrimp farming and trading of products related farming such as feeds, seeds, probiotics and aerator. HI-CAN INDUSTRIES: CRISIL Reaffirms B Rating on INR15cr Cash Loan ----------------------------------------------------------------- CRISIL reaffirmed its rating on the long-term bank facilities of Hi-Can Industries Private Limited (HIPL) at 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B/Stable (Reaffirmed) Term Loan 1 CRISIL B/Stable (Reaffirmed) The rating continues to reflect its weak financial risk profile because of stretched liquidity and subdued debt protection metrics, and working capital-intensive and small scale of operations. These weaknesses are partially offset by the extensive experience of its promoters and established relationship with customers and suppliers. Analytical Approach For arriving at the rating, unsecured loans of INR3.92 crore (as on March 31, 2018) from promoters have been treated as neither debt nor equity as these are expected to remain in business over the medium term. Key Rating Drivers & Detailed Description Weakness * Weak financial risk profile: Debt protection metrics were average, with net cash accrual to total debt and interest coverage ratios of 0.03 time and 1.3 times, respectively, in fiscal 2018. Also, liquidity is stretched, as reflected in high bank limit utilisation and modest cash accrual, which was, however, sufficient to repay term debt. * Working capital-intensive operations: Gross current assets were high at 367 days as on March 31, 2018, due to large inventory of 282 days and receivables of 108 days. * Modest scale of operations in competitive segment: The tin can industry is fragmented because of low entry barrier following limited capital and technology requirements, short gestation period, and easy availability of raw materials. This limits pricing pressure, leading to a small scale of INR19.26 crore in fiscal 2018. Strengths * Extensive experience of promoters: Key promoter, Mr Shailesh Makadia, has about a decade's experience in the tin can industry. Focus on delivering high-quality cans has resulted in a strong clientele. Promoters have also supported operations by extending interest-free unsecured loans. * Established clientele: The company deals with reputed customers such as includes established names such as Himalya International Ltd, Patson Foods (India) Pvt Ltd, Gujarat Co-operative Milk Marketing Federation Ltd and others. Outlook: Stable CRISIL believes HIPL will continue to benefit from the extensive experience of its promoters. The outlook may be revised to 'Positive' if improvement in revenue and profitability leads to higher-than-expected cash accrual, along with better working capital management. The outlook may be revised to 'Negative' if substantially low cash accrual, further deterioration in working capital management, or sizeable debt-funded capital expenditure leads to deterioration in financial risk profile, especially liquidity. Incorporated in 2009 and promoted by Mr Shailesh Makadia and his brother, Mr Nilesh Makadia, HIPL manufactures metal tin cans that are used to package food products. Facility in Vadodara, Gujarat, has capacity of about 9,200 can per hour. HINDUSTHAN CALCINED: ICRA Maintains B- Rating in Not Cooperating ---------------------------------------------------------------- ICRA said the ratings for the INR12.0-crore bank facilities of Hindusthan Calcined Metals Private Limited (HCMPL) continue to remain in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]B- (Stable)/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 8.0 [ICRA]B- (Stable); ISSUER NOT Based facilities COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Short Term-Fund 4.0 [ICRA]A4; ISSUER NOT based facilities COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Hindusthan Calcined Metals Private Limited (HCMPL) was incorporated in the year 2003 and is engaged in the manufacturing of sponge iron. The company is promoted by Mr S.K Modi and his family members. The manufacturing unit is located in Bellary district of Karnataka with an installed capacity of 200 MT per day. Other group companies of HCMPL are involved in mining and related businesses. LAGU BANDHU: Ind-Ra Withdraws 'BB' Long Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has withdrawn Lagu Bandhu Motiwale Private Limited's (LBMPL) Long-Term Issuer Rating of 'IND BB (ISSUER NOT COOPERATING)'. The instrument-wise rating action is: -- The IND BB rating on the INR200 mil. Fund-based facilities are withdrawn. KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings based on the receipt of a no dues certificate from the rated facilities' lender. Ind-Ra will no longer provide analytical and rating coverage for LBMPL. COMPANY PROFILE LBMPL is engaged in the retailing of gold and diamond jewelry. LUCKNOW MEDICAL: ICRA Maintains B Rating in Not Cooperating ----------------------------------------------------------- ICRA said the rating for the INR6.5 crore bank facilities of Lucknow Medical Agencies (LMA) continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] B (Stable), ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 6.5 [ICRA]B (Stable) ISSUER NOT based/Cash COOPERATING, Rating continues Credit to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Established in 1999 as a partnership firm, LMA has been engaged in the wholesaling and distribution of pharmaceutical drugs in the domestic market for more than a decade in Delhi. The firm's product portfolio consists of more than 9,000 branded drugs, which are procured directly through the pharma manufacturers. Some of the key suppliers include Cipla Ltd., Sun Pharma Limited, Sanofi India Ltd., Abbott India Ltd. Etc. LMA's operating income has witnessed steady growth over the years aided by deeper penetration in the existing markets. Further, addition of new suppliers thereby resulting in enhanced product portfolio has also supported volume growth for the firm. Post FY13, LMA's revenues have witnessed significant growth in the operating income owing to increasing volume along with marginal increase in the realizations which have been transferred by the pharmaceutical companies to the distributors. Going forward, the firm's revenues are expected to derive support from the management's increasing focus on expanding its presence and adding new suppliers. MOMENTUM TECHSYS: Ind-Ra Moves BB+ LT Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Momentum Techsys Private Limited's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR125 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR75 mil. Proposed non-fund-based limits migrated to non- cooperating category with Provisional IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 28, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Momentum Techsys is an IT distribution and services provider specializing in IT infrastructure development, unified communication networks, electronic security and surveillance devices, and audio-visual systems. NSL SUGARS: ICRA Assigns D Rating to INR219.18cr Term Loan ---------------------------------------------------------- ICRA has assigned [ICRA]D ratings to the bank facilities of NSL Sugars Limited (NSL). Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- Term Loan 219.18 [ICRA]D; Assigned Fund-based- Working Capital Facilities 99.49 [ICRA]D; Assigned Rationale The assigned rating factors in the delay in the debt servicing obligations owing to the company's stretched liquidity position. NSL's financial profile is weak as is evident from losses at net level, weak capital structure and weak debt coverage metrics in FY2016-FY2018. Further, in the absence of adequate working capital facilities, NSL Sugars Limited (NSL) and its subsidiary, NSL Krishnaveni Sugars Limited (KSL), are dependent on timely infusion of promoter funds to meet their working capital requirements. The rating is also constrained by the risks associated with the inherent cyclicality in the sugar business; the agro-climactic conditions related to cane production; the Government policies on import duties; the pricing and offtake of cogeneration power and ethanol; and the counterparty credit risk associated with sale of power to the utilities in Karnataka and Maharashtra. In addition, the tenure mismatch between the power purchase agreement (PPA) of the co-generation units and the debt repayment period (PPA is ending in FY2021 for Koppa and Aland while repayment is till FY2027) would expose these co-generation units to demand and tariff risks post FY2021. However, ICRA takes note of the significant experience of the promoters in the sugar industry; and the forward integrated operations with cogeneration and distillery units, which provide additional revenue stream and cushions profitability during sugar downturn. Also, the expected improvement in cane crushing activity in SY2019 is likely to support the by-products' profitability performance. Key rating drivers Credit strengths Significant experience of promoters in sugar industry: NSL was incorporated in 1999 and the promoters have extensive experience of over 15 years in the sugar industry. Forward-integrated operations: NSL's sugar operations, with a capacity of 20,000 TCD, are forward integrated with a 94-MW cogeneration unit and a 60-KLPD distillery unit. The forward integrated profile of sugar operations (with cogeneration and distillery units) cushions profitability during sugar downturn Expected improvement in cane crushing in SY2019: Cane crushing is expected to increase to around 24 lakh MT in SY2019 from around 18 lakh MT in SY2018, supported by good monsoons. Also, the forward integrated units - cogeneration and distillery - are likely to benefit from this increase in cane crushing. Credit challenges Delays in debt servicing: Delays in debt servicing owing to NSL's stretched liquidity position. Weak financial profile: NSL's financial profile is weak as is evident from the decline in operating income over the last two years (majorly due to significant decline in the cane crushing activity in SY2017), moderate operating profitability, losses at net level, weak capital structure and debt coverage metrics. Dependence on promoter funds due to inadequate working capital facilities: The absence of adequate working capital facilities for NSL and its subsidiary, KSL, could constrain the cane crushing activity. These companies are dependent on timely infusion of promoter funds to meet their working capital requirements. Exposure of co-generation unit to demand and tariff risk: Tenure mismatch between the power purchase agreement (PPA) of the co- generation units and the debt repayment period (PPA is ending in FY2021 for Koppa and Aland while repayment extends till FY2027) would expose these units to demand and tariff risks post FY2021. Vulnerability of profitability to agro-climatic and regulatory risks: Profitability of sugar mills remains exposed to the cyclicality of the sugar industry, agro-climatic risks related to cane production, and Government policies related to sugar trade. Liquidity Position: Continuous losses since FY2016 have adversely impacted the company's liquidity position. In addition, NSL's working capital facilities have been completely utilised, resulting in stretched liquidity. Incorporated in 1999, NSL Sugars Limited (NSL) was promoted by Nuziveedu Seeds Group. The company manufactures and markets sugar, generates power and produces ethanol. The company has three units, two at Koppa and Aland in Karnataka and the third at Pawarwadi in Maharashtra. NSL has a 6000-TCD sugar plant along with a 30-MW cogeneration plant and a 60-KLPD distillery at Koppa in the Mandya district of Karnataka and a 7000-TCD sugar plant along with a 34-MW cogneration plant in Aland, Karnataka. Jay Mahesh Sugar Industries Limited (JMSIL) was took over by NSLSL in FY2012 and amalgamated into NSLSL. Currently, JMSIL is operational with a 7000-TCD sugar unit and a 30-MW cogen unit. NSL has two subsidiaries, NSL Sugars (Tungabhadra) Ltd, (fully owned) and NSL Krishnaveni Sugars Ltd. The latter is 74% owned by NSL. The Group Holding Company is Mandava Holdings Pvt Ltd. In FY2018, on a provisional basis, the company reported a net loss of INR54.01 crore on an operating income of INR541.71 crore, as compared to a net loss of INR150.97 crore on an operating income of INR536.49 crore in the previous year. R.E.C. ISPAT: CRISIL Maintains B Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the rating on bank facilities of R.E.C. Ispat Private Limited (REC) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with REC 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 REC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on REC, is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL BB' category or lower'. Based on the last available information, the rating on bank facilities of REC, continues to be 'CRISIL B/Stable Issuer not cooperating'. Set up in 2004, by Mr. Subhash Bhararia, REC is engaged in trading of iron and steel products. The company is based out of Vishakhapatnam in Andhra Pradesh. RAVI INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ravi Industries - Harij (RI) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 1.89 CRISIL B/Stable (ISSUER NOT COOPERATING) Term Loan 2.11 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with RI 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 RI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RI, is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL BB' category or lower'. Based on the last available information, the rating on bank facilities of RI, continues to be 'CRISIL B/Stable Issuer not cooperating'. RI was founded as a partnership firm by the Hiraj (Gujarat)-based Thakker family in 2012. The firm undertakes the extraction of oil and production of de-oiled cakes from cotton seeds. RELIANCE INFRA: CARE Ratings Off from Watch w/ Dev. Implications ---------------------------------------------------------------- CARE said the ratings on the bank facilities/instruments of Reliance Infrastructure Ltd (R-Infra) have been put on 'Credit Watch with Developing Implications' in view of announcement by R- Infra entering into a definitive agreement with Adani Transmission Limited for 100% sale of its integrated Mumbai power business. The rating has been removed from 'Credit Watch with Developing Implications' on account of completion of sale of R- Infra's integrated Mumbai power business and receipt of updates form the company with regards to the expected receipt of money from arbitration awards and regulatory assets. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 2,489.60 CARE B; Stable Removed from Facilities Credit Watch with Developing Implications and assigned Stable Outlook Short-term Bank 700.00 CARE A4; Removed from Credit Facilities Watch with Developing Implications Long-term Non- 295.00 CARE B; Stable Removed from Convertible Credit Watch with Developing Debenture-1 Implications and assigned Stable Outlook Long-term Non- 600.00 CARE B; Stable Removed from Convertible Credit Watch with Developing Debenture-2 Implications and assigned Stable Outlook Detailed Rationale & Key Rating Drivers The ratings on the bank facilities/instruments of R-Infra continues to be tempered by exposure to group/associate entities in the form of loans and advances extended by R-Infra, delay in the receipt of money from arbitration awards and regulatory assets which has impacted the financial profile and liquidity profile of R-Infra. The ratings factor in the substantial increase in the order book position in the EPC (Engineering Procurement and Construction) business thereby providing revenue visibility in the near term. Timely receipt of money from the arbitration awards and regulatory assets and realization of funds extended to group companies (loans and advances and investments) are key rating sensitivities. CARE has withdrawn the rating assigned to the NCD issues of INR365 crore of R-Infra with immediate effect, as the company has repaid the aforementioned NCD issues in full and there is no amount outstanding under the issue as on date. Detailed description of the key rating drivers Key Rating Weaknesses Continued support extended to group/associate companies impacting the coverage indicators: Financial support extended to group companies/associates in the form of loans & advances continued to remain high at around INR13,558 crore as on March 31, 2018 which has impacted the liquidity profile and financial risk profile of R-Infra. Timely and complete recovery of the same is a key rating sensitivity. Delay in receipt of arbitration award and regulatory assets: R- Infra had won Delhi Metro arbitration award against DMRC (Delhi Metro Rail Corporation) worth INR 5,300 crore including interest of which R-Infra received INR306 crore as immediate relief to ensure than no account of lenders of DAMEPL (Delhi Airport Metro Express Private Limited) turns NPA. Hon'ble Delhi HC has directed DMRC to service entire debt of DAMEPL worth INR 1,618 crore. The timely receipt of DMRC award is a key rating moniterable. Also, the company had claims with regards to regulatory assets from the power business and arbitration money expected from the road projects, Mumbai Metro project and EPC business. Key Rating Strengths Improved revenue visibility in EPC business segment: During FY18, The EPC business segment contributed around 15.52% of the total revenues and 18.83% of the total PBIT (allocable Income/Expenses among segments) of R-Infra. However, as on September 30, 2018, R- Infra has an order book position exceeding INR27,800 crore as on September 30, 2018. The improvement in the order book position provides revenue visibility in the EPC segment in the near term. Reliance Infrastructure Limited (R-Infra) is the flagship company of the Reliance ADAG (controlled by Mr. Anil D Ambani). Reliance Infrastructure Ltd. is into developing projects through various Special Purpose Vehicles (SPVs) in sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector. R-Infra through its SPV/Associates has presence in the power businesses. Also, R-Infra Ltd through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; eleven road projects with total length of about 1,000 kms on build, operate and transfer (BOT) basis. Reliance Infrastructure Ltd. also provides Engineering, Procurement and Construction (EPC) services for developing power and road projects. The Company has entered into the defence sector. The Maharashtra Government has allotted land at Mihan near Nagpur for the development of smart city for the defence sector known as Dhirubhai Ambani Aerospace Park (DAAP). Reliance Infrastructure Ltd. associate Reliance Naval and Engineering Ltd. (RNEL), houses dry dock facility to build warships and other naval vessels. ROY APPARELS: CRISIL Migrates B+ Rating to Not Cooperating ---------------------------------------------------------- CRISIL has migrated the rating on bank facilities of Roy Apparels Private Limited (RAPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.95 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 6.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Proposed Long Term Bank Loan Facility .55 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL has been consistently following up with RAPL for obtaining information through letters and emails dated October 24, 2018 and October 29, 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 RAPL. Which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on RAPL 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 RAPL to 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 1992 and promoted by Mr. ND Roy RAPL manufactures garments such as T-shirts, caps, jerseys, hoodle jackets, and track paints for large corporates. SARASWATI UDYOG: CRISIL Lowers Rating on INR40cr Term Loan to D --------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Saraswati Udyog India Limited (SUIL) to 'CRISIL D/CRISIL D' from 'CRISIL BB-/Stable/CRISIL A4+'. The ratings reflect delay in the servicing of debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 38 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Cash Term Loan 40 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Inland/Import 10 CRISIL D (Downgraded from Letter of Credit 'CRISIL A4+') Long Term Loan 2 CRISIL D (Downgraded from 'CRISIL BB-/Stable') Proposed Long Term 13 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL A4+') Working Capital 2 CRISIL D (Downgraded from Demand Loan 'CRISIL BB-/Stable') The rating continues to reflect below-average financial risk profile and working capital intensive nature of operations. The weaknesses is partially offset by promoters' extensive experience in paper industry. Key Rating Drivers & Detailed Description Weaknesses: * Below-average financial risk profile: SUIL has a below average financial risk profile, marked by weak capital structure and average debt protection metrics. The gearing level stood at 7.9 times in fiscal 2018. Further, interest coverage and net cash accruals to total debt was 1.8 and 0.09 times respectively in fiscal 2018. * Working capital intensive operations: The Company has intense working capital operations, reflected in gross current assets (GCA) days of 283 days as on 31 March, 2018. GCA is high on account of high inventory holding days and stretched in receivables. Strength: * Promoter's extensive experience in paper business: The promoters have an experience of more than 25 years in the paper and paper board industry. CRISIL believes that SUIL will continue to benefit from its promoter's extensive experience in this industry. SUIL, incorporated in 1991, is engaged in manufacturing of coated duplex board which are used in packaging. The company manufactures these boards at its facility located in Namakkal, Tamil Nadu. The company is being managed by Mr. Balusamy.Anandan. SHIV SHAKTI: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Shiv Shakti Wahan 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 action is: -- INR113.9 mil. Fund-based limits migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 14, 2017. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Shiv Shakti Wahan is an authorized dealer of Mahindra & Mahindra Limited's (IND AAA/Stable) vehicles in Darbhanga, Bihar and also provides sales, service and spares facilities. SHREE DATTA: CRISIL Maintains 'B' Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the rating on bank facilities of Shree Datta Fertilizers and Chemical Private Limited (SDFCPL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Cash Credit Limit 1.0 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with SDFCPL 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 SDFCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on SDFCPL, is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL BB' category or lower'. Based on the last available information, the rating on bank facilities of SDFCPL, continues to be 'CRISIL B/Stable Issuer not cooperating'. SDFCPL was set up by Mr. Ashok Ratanlal Soni in 1999. It manufactures nitrogen, phosphorous, and potassium (NPK) granulated mixed fertilisers. The company sells these primarily through a network of dealers in and around Vidarbha. SHREE SAI: CRISIL Migrates 'B+' Rating from Not Cooperating ----------------------------------------------------------- Due to inadequate information, CRISIL, in line with SEBI guidelines, had migrated the rating of Shree Sai Hasti Agro (SSHA) to 'CRISIL B+/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, CRISIL is migrating the rating on bank facilities of SSHA from 'CRISIL B+/Stable Issuer Not Cooperating' to 'CRISIL B+/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.35 CRISIL B+/Stable (Migrated from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 8.25 CRISIL B+/Stable (Migrated Bank Loan Facility from 'CRISIL B+/Stable ISSUER NOT COOPERATING') The rating reflects the working capital-intensive nature, and small scale, of SSHA's operations in the intensely competitive rice milling industry, and the firm's average financial risk profile. These rating weaknesses are partially offset by the extensive experience of the proprietor. Analytical Approach Unsecured loans received from the proprietor have been treated as neither debt nor equity as the loans carry interest that is lower than the market rate, and will remain in the business over the medium term. Key Rating Drivers & Detailed Description Weaknesses * Modest scale of operations: Turnover was a modest INR45.73 crore in fiscal 2018. While large players have better efficiencies and pricing power, the smaller players have lower pricing flexibility and profitability. * Working capital-intensive operations: Gross current assets and inventory were sizeable at 170 and 160 days, respectively, as of March 2018. Creditors of 80-90 days relieve some of the pressure on working capital. Bank limit of INR9.35 crore has been almost fully utilized. Operations will, likely, remain working capital intensive over the medium term as well. * Average financial risk profile: Capital structure remains average, with high gearing and total outside liabilities to tangible networth (TOLTNW) ratios of around 6.02 and 14.09 times, respectively, and low networth of INR1.63 crore, as of March 2018. Debt protection metrics are average, with interest coverage and net cash accrual to total debt (NCATD) ratios of around 1.70 times and 0.03 time, respectively, for fiscal 2018. Strengths * Experience of the proprietor and established relationship with customers and suppliers: Benefits from the proprietor's experience of more than a decade, and strong relationships with stakeholders in the rice industry, should continue to support the business. Outlook: Stable CRISIL believes SSHA will continue to benefit from the proprietor's extensive experience and established relationships with suppliers and customers. The outlook may be revised to 'Positive' if revenue, profitability and cash accrual increase, leading to a stronger financial risk profile. The outlook may be revised to 'Negative' in case of any large, debt-funded expansion, a substantial decline in revenue and profitability, or stretch in working capital cycle, leading to weakening in the financial risk profile. SSHA, set up as a proprietorship firm in 2007 by Mr Pragnesh Kumar R Naik, initially traded in paddy. From December 2012, it started manufacturing rice flakes. Operations are managed by Mr Naik. Its manufacturing facility is in Navsari, Gujarat. SHREEJI COTTON: ICRA Lowers Rating on INR10.50cr Loan to D ---------------------------------------------------------- ICRA has revised the long-term rating for the bank facilities of Shreeji Cotton Industries (SCI) to [ICRA]D ISSUER NOT COOPERATING from [ICRA]B+ ISSUER NOT COOPERATING. The rating continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING" for the bank facilities of the company. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based- 10.50 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Revised from [ICRA]B+(Stable); Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Rationale The rating downgrade follows the delays in debt servicing by SCI to the lender(s), as confirmed by them to ICRA. Established in 2006, Shreeji Cotton Industries (SCI) is a partnership concern managed by Mr. Ravji Ramani and Mr. Jiva Ramani. The company is engaged in ginning and pressing of raw cotton to produce cotton bales and cottonseeds. SCI's manufacturing facility is located at Jasdan, Rajkot District, Gujarat and is currently equipped with 24 ginning machines and 1 pressing machine having an installed capacity to produce 220 cotton bales per day (24 hours operation). SIDDHI VINAYAK: CRISIL Lowers Rating on INR4.6cr Term Loan to D --------------------------------------------------------------- CRISIL has downgraded the rating on bank facilities of Siddhi Vinayak Alloys (SVA) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as the company has defaulted in term loan repayment as per the feedback received from its banker. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.4 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Term Loan 4.6 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with SVA for obtaining information, through letter and email, dated December 31, 2017 and June 29, 2018 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Investors, lenders, and all other market participants should exercise due caution while using ratings assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as they are arrived at without any management interaction and are based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL has not obtained any information on either the financial performance or strategic intent of SVA. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for the company is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL B' rating category or lower.' Based on the best available information, CRISIL has downgraded the rating to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as the company has defaulted in term loan repayment as per the feedback received from its banker. SVA was set up as a partnership firm of Mr Jigar Patel and his family, in September 2014. The Mehsana (Gujarat)-based firm has been formed to manufacture mild steel castings for engineering companies. SIDWIN FABRIC: ICRA Reaffirms B+ Rating on INR5.0cr Loan -------------------------------------------------------- ICRA has reaffirmed the long-term rating of [ICRA]B+ for the INR5.00-crore1 fund-based facilities of Sidwin Fabric Private limited. ICRA has also reaffirmed the ratings of [ICRA]B+(Stable)/[ICRA]A4 for the INR5.03-crore unallocated limits of SFPL. The outlook on the long-term rating is Stable. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based limit 5.00 [ICRA]B+ (Stable); Reaffirmed Unallocated Limits 5.03 [ICRA]B+ (Stable)/A4; Reaffirmed Rationale The rating reaffirmation continues to remain constrained by the moderate scale of operations and the stretched working capital position, leading to full utilisation of working capital limits. The rating also factors in the vulnerability of the company's profitability to fluctuations in raw material prices, low bargaining power with suppliers, and intense competitive pressure in the technical textile industry. ICRA also notes that the company is undertaking a debt-funded capex to enhance its capacity and add new products, thus exposing it to project risk. The debt towards the said capex, along with the high working capital requirement, is expected to keep the credit profile constrained in near to medium term. The rating reaffirmation, however, continues to favourably factor in the experience of the promoters in non-woven textile segment. ICRA also notes the stable demand outlook for the non-woven fabric and its multiple applications across various industries. Outlook: Stable ICRA believes that SFPL will continue to benefit from the experience of the promoters and the favourable demand prospects for the non-woven fabric. The outlook may be revised to Positive if substantial growth in revenue and profitability leads to higher-than-expected net cash accruals, or infusion of equity and better working capital management ease the liquidity situation. Conversely, the outlook may be revised to Negative if lower-than- expected sales and profitability results in lower-than-expected cash accruals; or in case higher-than-expected debt-funded capex or stretch in the working capital cycle stretches the capital structure and overall liquidity. Key rating drivers Credit strengths Stable demand and multiple application of non-woven fabric: The company manufactures non-woven fabric ranging from 8 GSM to 200 GSM. Non-woven fabrics are characterised by some unique features, such as absorbency, liquid repellence, resilience, stretchable, softness and bacterial barrier, which find varied application in healthcare and hygiene products, surgical products, agro commodities packaging, apparel. The benefits associated with these fabrics are likely to result in favourable demand prospects. Extensive experience of management in non-woven textile segment: Sidwin Fabric Private Limited was incorporated in 2012 and the promoters have five-year long experience in the non-woven textile segment. Credit challenges Average financial risk profile: The company's operating income witnessed a 22% growth to INR31.39 crore in FY2018 from INR25.76 crore in FY2017 with increase in sales volume. The operating profitability stood modest at 8.37% in FY2018 (compared to 8.74% in FY2017). The net margin stood at 3.34% in FY2018. The gearing of the company stood at 1.36 times as on March 31, 2018, which is expected to moderate in the near to medium term due to the proposed debt-funded capex towards capacity enhancement. The debt protection metrics remained moderate with TD/OPBITDA of 2.76 times, interest coverage of 2.20 times and an NCA/TD of 20% as on March 31, 2018. The liquidity position remained tight due to stretch in receivable days and relatively low credit period received from suppliers. Consequently, the working capital limit was fully utilised during the 15-month period, from August 2017 to October 2018; additionally, the bridge financing was done from time to time. Risk associated with brownfield debt-funded capex and successful scale up of operations: The company remains exposed to risks associated with debt-funded capex and successful scale up of operations as per the expected parameters. Moreover, the debt- funded nature of the project is likely to keep the credit profile constrained in the medium term. Vulnerability of profitability to fluctuations in raw material prices; limited bargaining power with suppliers: The key raw material required for manufacturing non-woven fabric is polypropylene (PP), which is a crude oil derivative. Hence, the company's profitability remains vulnerable to adverse fluctuations in raw material prices as its ability to pass on the price increase is limited. The company procures its raw material from distributors of Indian Oil Corporation Ltd. (IOCL) and Reliance Industries Ltd. (RIL). Due to its relatively small-scale operations, SFPL's bargaining power with suppliers remains low. Margins subject to pressure from intense competition: The domestic non-woven industry is highly fragmented and dominated by the unorganised sector because of low capital requirements and low techno intensive sector. Thus, modest-scale players such as SFPL face stiff competition that leads to pricing pressure. Incorporated in the 2011, Sidwin Fabric Private Limited (SFPL) manufactures non-woven polypropylene fabrics. The company commenced commercial production from June 2012 from its manufacturing facility in Himatnagar. The annual installed capacity of the unit is dependent on the linear density, expressed in GSM (gram per square metre) of the fabric being manufactured, which is around 2,700 MTPA. With the existing machinery, the company can manufacture non-woven fabrics of GSM ranging from 8-200 and having width of 3.2 metres. The company's products find application in various industries such as agriculture, medical and hygiene and packaging. In FY2018, the company reported a net profit of INR1.05 crore on an operating income (OI) of INR31.39 crore as against a net profit of INR0.47 crore on an OI of INR25.76 crore in FY2017. In 6MFY2019 (provisional unaudited financial statements), the company reported a net profit of INR0.52 crore on an OI of INR16.62 crore. SIGNATURE CERAMIC: ICRA Maintains B+ Rating in Not Cooperating -------------------------------------------------------------- ICRA said the long term and the short term rating for the bank facilities of Signature Ceramic Pvt. Ltd. (SCPL) continues to remain under the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable)/A4 ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 1.79 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Fund based- 3.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Non Fund based- 1.40 [ICRA]A4 ISSUER NOT Bank Guarantee COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Signature Ceramic Pvt. Ltd. (SCPL) is a walltiles manufacturer with its plant situated at Morbi, Gujarat. The company was established in October 2009, while the company commenced its operations in July 2010. Signature Ceramics is managed by Mr. Pravin Kundariya and Mr. Girish Loriya along with other directors. The plant has an installed capacity to produce 18 lacs boxes of wall tiles per annum. Signature Ceramics currently manufactures wall tiles of size 12" X 12", 12" X 18" and 12"X 24 with the current set of machineries at its production facilities. SP SUPERFINE: ICRA Migrates D Rating to Not Cooperating ------------------------------------------------------- ICRA has moved the long-term ratings for the bank facilities of SP Superfine Cotton Mills Private Limited (SSCMPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 66.94 [ICRA]D ISSUER NOT COOPERATING; Term Loan Rating moved to the 'Issuer Not Cooperating' category Fund based 8.00 [ICRA]D ISSUER NOT COOPERATING; Limits Rating moved to the 'Issuer Not Cooperating' category Unallocated 28.52 [ICRA]D ISSUER NOT COOPERATING; Limits Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity to monitor its performance. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA on the basis of best available information about the issuer's performance. Accordingly, lenders, investors and other market participants are advised to exercise appropriate caution as the rating may not adequately reflect the credit risk profile of the entity. Promoted by Mr. Velusamy in 1995, SSCMPL manufactures cotton yarn in the count range of 40s to 80s, with 40-50s forming a major share of the production. The company has an installed capacity of 28,224 spindles and its spinning unit is located in Attur, Tamil Nadu. SRI THAI: CRISIL Maintains B Rating in Not Cooperating Category --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Sri Thai Moogambigai Enterprises (STME) continue to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 1 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with STME 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 STME, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on STME 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 STME continue to be 'CRISIL B/Stable Issuer not cooperating'. For arriving at its rating, CRISIL has combined the business and financial risk profiles of STME and Sri Andal Azhagar Enterprises (SAAE) together referred to as the 'Thai Andal' group. The consolidated approach is because both the entities are engaged in similar line of business, belong to the same promoter group and derive considerable operational and business synergies from each other. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Established in 2012 as a proprietorship firm, Sri Thai Moogambigai Enterprises (STME) is engaged in granite quarrying and trading. Based in Chennai, Tamil Nadu, the firm is promoted by Mr. M. P. Balaji Established in 2012 as a proprietorship firm, SAAE is engaged in granite quarrying and trading. Based in Chennai, Tamil Nadu, the firm is promoted by Mr. A.M. Babu. SSS HI-TECH: CRISIL Withdraws D Rating on INR11.5cr Bank Loan ------------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities of SSS Hi-Tech Constructions Private Limited (SSS) and subsequently withdrawn the ratings at the company's request and on receipt of a no-objection certificate from the bankers. The withdrawal is in line with CRISIL's policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 11.5 CRISIL D (Reaffirmed and Withdrawn) Cash Credit 3.0 CRISIL D (Reaffirmed and Withdrawn) Standby Fund Based Working Capital 3.5 CRISIL D (Reaffirmed and Withdrawn) SSS, promoted by Mr P M Srinivasan, undertakes civil construction contracts in Tamil Nadu. SUNSHINE INFRA: CRISIL Lowers Rating on INR105cr LT Loan to D ------------------------------------------------------------- CRISIL has downgraded the ratings on bank facilities of Sunshine Infra Engineers India Private Limited (SIPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+' on account of current delays in debt servicing. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 70 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4+') Proposed Long Term 105 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL BB+/Stable) Secured Overdraft 35 CRISIL D/Issuer Not Facility Cooperating (ISSUER NOT COOPERATING; Downgraded from 'CRISIL BB+/Stable) CRISIL has been consistently following up with SIPL for obtaining information through letters and emails dated August 27, 2018, October 26, 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 has not obtained any information on either the financial performance or strategic intent of SIPL. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for the company is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with 'CRISIL B' rating category or lower.' Based on the best available information, CRISIL has downgraded the ratings to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+' on account of current delays in debt servicing. SIPL was set up in 2010 by Smt. Lalitha Kumari and her business associates. The company undertakes integrated projects for construction of concrete and asphalt roads, including installation of streetlights. It also undertakes projects involving resurfacing of roads. The company is based in Hyderabad (Telangana), and caters to state government entities in South India. T.K. INTERNATIONAL: ICRA Maintains B- Rating in Not Cooperating --------------------------------------------------------------- ICRA said the rating for the INR12.50 crore bank facilities of T.K. International Limited continues to remain in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA] B- (Stable)/A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term/Fund- 2.75 [ICRA] B-(Stable); ISSUER NOT based/Cash Credit COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Long Term/Fund- 9.25 [ICRA] B-(Stable); ISSUER NOT based/Term Loan COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Short Term/Non 0.50 [ICRA] A4; ISSUER NOT Fund Based COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. TK, incorporated in 1982, is engaged in the development and management of hotels and resorts and is currently managing two owned hotels and three leased hotels. The company's first hotel started operations in 1985 in Puri, and in 1999, it commenced the operations of its resort in Shimla. The company also operates three leased properties in Ratnagiri, Odisha, awarded by the Department of Tourism under the PPP model, with an aggregate of 43 rooms. TK also has additional revenue streams from time share customers and ticketing business. In FY2016, the company reported a net profit of INR0.36 crore on an operating income of INR25.31 crore, as compared to a net profit of INR1.00 crore on an operating income of INR25.38 crore in the previous year. TULSIANI CONSTRUCTIONS: ICRA Retains D Rating in Not Cooperating ---------------------------------------------------------------- ICRA said the rating for the INR30.0 crore bank facilities of Tulsiani Constructions & Developers Limited (TCDL) continues to remain in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA] D, ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term Fund 30.0 [ICRA]D ISSUER NOT COOPERATING; based/Term Loan Rating continues to remain in the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Tulsiani Constructions & Developers Limited (TCDL) is a flagship company of the Tulsiani Group which has several companies undertaking real estate project in Lucknow, Allahabad and other regions of Uttar Pradesh. TCDL is promoted by Allahabad based Tulsiani family and is engaged in the business of construction of residential and commercial building in Allahabad for last 14 years. TCDL is currently undertaking three residential projects in Lucknow and Aallahabad region. VEMPARALA VENKAT: CRISIL Hikes Rating on INR5.4cr Cash Loan to B+ ----------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Vemparala Venkat Rao Cotton Industries (VVR) to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.4 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Long Term Loan .65 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Proposed Long Term 1.95 CRISIL B+/Stable (Upgraded from Bank Loan Facility 'CRISIL B/Stable') The upgrade reflects improvement in VRR's financial risk profile, particularly liquidity. The firm is expected to generate net cash accruals which would adequate to service repayment obligations over the medium term. Moreover, the bank limits have been utilized at an average of 90% over the 12 months through August 2018 providing moderate cushion. The rating reflects to reflect the firm's below-average financial risk profile because of small networth, high gearing, and subdued debt protection metrics. The rating also factors in large working capital requirement, susceptibility of profitability to volatility in cotton prices, and vulnerability to regulatory changes and intense competition in the cotton ginning industry. These weaknesses are partially offset by partners' extensive experience in the cotton industry. Key Rating Drivers & Detailed Description Weakness * Below average financial risk profile: Financial risk profile is below average marked by small net worth, high gearing and below average debt protection metrics. Debt protection metrics is characterized by estimated interest coverage ratio and NCATD of 1.72 times and 6% respectively for the Fiscal 2018. * Large working Capital requirement and susceptibility of profitability to volatility in cotton prices: Large working capital requirement is reflected in GCA of around 117 days, estimated as on March 31 2018. High GCA days emanate from moderate debtor cycle and high inventory requirement of the company. Also, cotton prices are volatile, as the crop is vulnerable to rainfall or even a pest attack. Volatility in cotton prices will continue to impact profitability over the medium term. * Vulnerability to regulatory changes and intense competition in the cotton ginning industry: Cotton industry is highly regulated by Government of India (GOI) in terms of minimum support prices and export conditions resulting in Vulnerability to any adverse regulatory changes. Also, the industry is highly fragmented with intense competition among the players. Strengths * Extensive industry experience of the promoter, and established relationships with customers and suppliers: Though VVR was incorporated in 2012, Mr. Ram Babu, the promoter has prior experience in the industry of over 2 decades in the cotton industry by way of trading of cotton and bales in his personal capacity which has helped it successfully maintain its business risk profile. Outlook: Stable CRISIL believes VVR will benefit over the medium term from the extensive industry experience of its partners. The outlook may be revised to 'Positive' if there is increase in revenues and profitability coupled with sustained working capital management, and improvement in capital structure with sizeable capital infusion. The outlook may be revised to 'Negative' if revenues or profitability declines steeply, or capital structure weakens due to large debt-funded capital expenditure or stretch in working capital cycle. VVR was established in 2012 as a partnership firm by Mr. V Ram Babu and his family members. The firm gins and presses raw cotton. Its facility is in Guntur, Andhra Pradesh. VICEROY HOTELS: Deadline for Insolvency Process Extended -------------------------------------------------------- The Hindu BusinessLine reports that in a move that could potentially enable in finding a suitor under the corporate insolvency resolution process (CIRP), the National Company Law Tribunal-Hyderabad has extended the deadline to evaluate some plans. The Hyderabad-based hospitality chain Viceroy Hotels Limited may perhaps find a suitor, with the NCLT extending the deadline for resolving the case, the report says. According to the report, the Judicial Member Ratakonda Murali, while allowing a petition to permit extension of period by exuding 45 days for counting the CIRP process, allowed Resolution Professional (RP) and the Committee of Creditors additional time. The time period was extended to enable the Resolution Professional and CoC to review the Resolutions Plans which have been already filed. The Hindu BusinessLine says the NCLT felt that since the time extension was required to enable the CoC to consider the Resolutions Plans which have already been received by the RP, this was fit case to allow the extend deadline. The CoC will now be able to examine five plans and take an appropriate decision. After admitting a petition moved by Asset Reconstruction Company (India) Limited, who is the financial creditor, the NCLT had appointed K Koteswara Rao as Interim Resolution Professional and later had extended the period of resolution by 90 days beyond the 180 days permitted for the process, the report discloses. Since the CIRP period ended on December 6, a separate petition was moved by the debtor to extend the deadline and facilitate in finding an appropriate resolution plan, The Hindu BusinessLine relates. Among the suitors are Mahal Hotels, which had submitted a revised resolution Plan. All the five resolution plans were sent to BDO for certification of eligibility criterion, the report adds. =============== M A L A Y S I A =============== 1MDB: Arul Kanda Arrested by MACC Over Report Tampering ------------------------------------------------------- The Star reports that former 1Malaysia Development Berhad (1MDB) group president and chief executive officer Arul Kanda Kandasamy has been arrested and will be charged today, Dec. 12 over the 1MDB audit report tampering case. His lawyer Datuk N. Sivananthan confirmed that Arul Kanda was formally arrested by the Malaysian Anti-Corruption Commission (MACC) at on Dec. 11, The Star relates. "They (MACC) will be producing him in court on Dec. 12 to be charged along with (former Prime Minister) Datuk Seri Najib (Tun Razak)," Sivananthan told reporters at the MACC headquarters, the report relays. Sivananthan said Arul Kanda is likely to face a single charge under Section 23 of the MACC Act, the report adds. "As far as we know, it is only Datuk Seri Najib and Arul. I'm not sure if there's any other person who is going to be charged tomorrow," the lawyer, as cited by The Star, said. Najib was arrested on at 11:00 a.m. on Dec. 10 after being questioned by the MACC but was released on bail at 1:00 p.m. on the same day. On Nov. 25, Auditor-General Tan Sri Dr Madinah Mohamad had said that one of the changes made to the 1MDB final audit report was the removal of a paragraph or paragraphs mentioning the presence of fugitive businessman Low Taek Jho or Jho Low, The Star recalls. She revealed that the directive to make the changes had come from Tan Sri Shukry Salleh, who had served as the principal private secretary to Najib when he was prime minister, the report notes. About 1MDB Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a government agency. The Company offers financial assistance, analysis, and advice through investors, corporations, and consultants to startups and growth companies. 1MDB focuses on investments with strategic value and high multiplier effects on the economy, particularly in energy, real estate, tourism, and agribusiness. As reported in the Troubled Company Reporter-Asia Pacific in June 2015, Reuters relayed that Singapore Police Force has frozen two bank accounts to help with an investigation in to Malaysia's troubled state-owned investment fund 1Malaysia Development Bhd (1MDB), which is being probed by authorities in Malaysia for financial mismanagement and graft. Reuters said the freezing of the Singapore bank accounts follows a similar move in Malaysia where a task force investigating 1MDB said earlier in July that it had frozen half a dozen bank accounts following a media report that nearly $700 million had been transferred to an account of Malaysia's Prime Minister Najib Razak. The Wall Street Journal reported in July 2015 that investigators looking into 1MDB had traced close to US$700 million of deposits moving through Falcon Bank in Singapore into personal bank accounts in Malaysia belonging to Najib. The TCR-AP, citing Bloomberg News, reported in November 2015, that 1MDB agreed to sell its power assets to China General Nuclear Power Corp. for MYR9.83 billion (US$2.3 billion) as the state investment company moved one step closer to winding down operations after its mounting debt raised investor concern. Bloomberg, citing President Arul Kanda in October 2015, related that the company faced cash-flow problems after a planned initial public offering of Edra faced delays amid unfavorable market conditions. The listing plan was later canceled as the company opted for a sale of the assets, Bloomberg noted. The TCR-AP, citing The Wall Street Journal, reported in April 2016, that the company defaulted on a $1.75 billion bond issue, triggering cross defaults on two other Islamic notes totaling MYR7.4 billion ($1.9 billion). Asian Nikkei Review reported in June 2016 that Malaysia has replaced the board of 1Malaysia Development Berhad with treasury officials, paving the way for the dissolution of the troubled state investment fund. ================= S I N G A P O R E ================= NOBLE GROUP: To Seek Court-Ordered Administration in Bermuda ------------------------------------------------------------ Navin Sregantan at The Business Times reports that Noble Group said that it will apply to the Bermudian court for a hearing on Dec. 14 for a court-ordered administration in Bermuda to complete the restructuring of the company into New Noble. In a filing with the Singapore Exchange on Dec. 11, Noble said: "This approach is intended to preserve the underlying business and operations for the benefit of its stakeholders," the report relays. As a result of the restructuring of Noble, existing shareholders of the company would still have a total of 20 per cent of shares in New Noble allocated to them under the current restructuring plan even though Singapore regulators have not permitted for Noble's listing status to be transferred to New Noble, according to the Business Times. The report relates that the board of the commodity trader said that such a course of action is "the only means available to it" to implement restructuring that is in the interests of all stakeholders of the company. If the company cannot be restructured in this manner, Noble said that it will have to enter a full liquidation process. This will result in no recovery for shareholders and holders of the company's perpetual capital securities, and also materially lesser recoveries for creditors, the report relays. "The board anticipates that, subject to the order being made by the Bermuda court on Dec. 14, the restructuring effective date will occur on Dec. 18 and the perpetual capital securities exchange will be implemented as planned," Noble, as cited by The Business Times, said. Therefore, the company has agreed to an extension of the long- stop date under both the English and Bermuda schemes from Dec. 11 to Dec. 31, 8:59 a.m. London time to allow further time to complete the restructuring, the report says. The Business Times adds that Noble also expects to agree to an extension of the original long-stop date under the restructuring support agreement to Dec. 31, 8:59 a.m. London time. "The board remains of the strong view that the restructuring is in the best interests of all of the company's stakeholders, including its creditors and shareholders, and has taken steps so that the restructuring may be implemented save for the transfer of the listing," Noble said, the report relays. Day-to-day operations of the group remains unaffected and business should continue as usual, The Business Times adds. About Noble Group Noble Group has been in operation since 1986 and, today, is one of the world's largest commodity traders by volume. Noble maintains its corporate office in London, England, and is listed on the Singapore Exchange Limited (SGX: CGP). Though its registered office is located in Bermuda, Noble engages in no activities or operations there. Noble Group Limited functions as the ultimate holding company of Noble Group, holding shares in a number of intermediate holding companies incorporated in several jurisdictions including Bermuda, the British Virgin Islands, Singapore, and Hong Kong, which in turn own shares in additional holding companies and operating companies in various jurisdictions. In March 2018, Noble reached terms of a restructuring plan that will hand over a bulk or 70 per cent of the equity to senior creditors, 10 per cent to management and the rest to existing shareholders. In August, 99.96 percent of shareholders approved the plan, and as of October 2018, 88% of the holders of existing senior debt instruments have acceded to the RSA. To effectuate the restructuring, the restructuring support agreement contemplates two inter-conditional schemes of arrangement under section 99 of the Companies Act 1981 of Bermuda (the "Bermudan Scheme") and Part 26 of the Companies Act 2006 of England and Wales. The English Scheme will be the primary proceeding to restructure Noble's funded debt. On Sept. 21, 2018, Noble notified its creditors of its intention to propose the English Scheme. The English Court conducted the English Scheme Sanction Hearing on Nov. 12, 2018 to consider approving the English Scheme. Noble has obtained an order from the Supreme Court of Bermuda, pursuant to section 99 of the Companies Act 1981 of Bermuda granting leave to convene meetings of the Scheme Creditors of Bermuda to consider and approve a Bermudan scheme of arrangement for Noble. Noble Group on Oct. 17, 2018, filed a Chapter 15 bankruptcy petition in New York to seek U.S. recognition of its restructuring (Bankr S.D.N.Y. Case No. 18-13133). Kirkland & Ellis LLP serves as U.S. counsel ==================== S O U T H K O R E A ==================== * SOUTH KOREA: Banks' Loan Delinquency Rate Edges Up in October --------------------------------------------------------------- Yonhap News Agency reports that the delinquency rate for South Korean banks' won-denominated loans edged up in October due to a slight rise in the number of firms that failed to repay their debts, government data showed. The rate for bank loans more than 30 days overdue stood at 0.58 percent at the end of October, up 0.03 percentage point from a month earlier, Yonhap discloses citing data from the Financial Supervisory Service. Compared with a year ago, the rate was up 0.1 percentage point, the FSS said, Yonhap relays. According to Yonhap, the delinquency rate for loans extended to firms fell 0.06 percentage point on-month to 0.85 percent in October. The delinquency rate for loans to households also rose 0.01 percentage point on-month to 0.27 percent at the end of October, according to the data. The FSS said it will keep close tabs on loan delinquency trends to prevent rising market interest rates from leading to more overdue loans, adds Yonhap. ============= V I E T N A M ============= VIETNAM NATIONAL COAL: S&P Affirms 'B' ICR on Growing Earnings -------------------------------------------------------------- S&P Global Ratings said it has affirmed its 'B' long-term issuer credit rating on Vietnam-based coal producer Vietnam National Coal and Mineral Industries Holding Corp. Ltd. (Vinacomin). The outlook remains stable. The rating recognizes Vinacomin's improving earnings performance, backed by steady operations, cost management, and supportive market conditions. It also reflects S&P's view that reducing capital spending will also strengthen the company's financial position. However, Vinacomin has yet to demonstrate plans to improve its liquidity management. Steady operations at Vinacomin's coalmines and contribution from the new alumina mines, Nhan Co and Tan Rai, will continue to underpin steady EBITDA generation. The company's coal sales volume reached 31.0 million tons in the first nine months of 2018, compared with 33.6 million tons in full-year 2017. S&P estimates EBITDA from its coal business will account for about 53% of total EBITDA, which it forecasts at about Vietnamese dong (VND) 20 trillion in 2018. The company's coal sales volume will rise toward 38.0 million tons per year by 2020, supported by sale to domestic power producers. Vietnam Electricity Corp. (EVN), Vinacomin's key customer, announced on Oct. 23, 2018, that it will need about 29.0 million tons of coal for power generation in 2019. S&P estimates that Vinacomin will supply at least 75% of that amount. S&P said, "We expect production at Vinacomin's alumina mines to reach full capacities of 1.3 million ton a year in 2019 and alumina prices to remain favorable at US$400 per ton due to undersupply. Tan Rai reached full capacity of 650,000 tons this year while the utilization rate at Nhan Co was about 89% as of Sept. 30, 2018. In our estimates, the alumina business will account for 25%-28% of total EBITDA over the next one to two years, a significant increase from 10% in 2017. In particular, we expect the export of alumina (assumed at two-thirds of total production) will double the U.S. dollar-denominated EBITDA, consequently strengthening the company's servicing capability for debt denominated in the same currency. "Vinacomin's state-mandated cost management initiatives will continue to reduce operating costs, in our opinion. A cut of 20,000 jobs in 2018 reduced selling, general, and administrative expenses to VND5.7 trillion, or 7.7% of total sales, as of Sept. 30, 2018, from 11%-12% historically. The company also plans to enhance efficiency through use of technology over the next two to three years. "In our view, heavy reliance on short-term debts caps Vinacomin's credit quality. We estimate that about 30% of the company's debt consists of short-term financial liabilities, which are subject to three- to six-month rollover. Significantly lower cash flow from operations, driven by volatility in commodity prices, or substantial working capital requirements could threaten the company's ability to manage its liquidity. "We do not foresee an increase in debt, given Vinacomin is unlikely to pursue any large investment at least over the next one to two years. The government of Vietnam no longer guarantees offshore loans for state-owned enterprises if the loans are to fund projects that are not on its priority. "We expect Vinacomin to prioritize debt repayment over capital spending. Actual debt repayment is critical to the sustainable improvement in Vinacomin's credit quality, as a lower debt load would reduce the sensitivity of credit metrics to changing commodity prices. "The stable outlook reflects our view that Vinacomin will maintain stable operations over the next 12 months, with an ability to roll over its short-term debts and without sizable capital spending. "We may lower the rating if Vinacomin's EBITDA interest coverage declines to below 2.5x." This could be due to rising cost of borrowing or higher debt on sizable negative free operating cash flows amid a deteriorating pricing environment. If the price of coal sold to EVN declines below US$65 per ton, it would likely threaten the company's earnings quality. S&P said, "We may also lower the rating if Vinacomin's U.S. dollar income fails to cover its dollar-denominated expenses. This could materialize if lower hard currency-denominated export revenues coincide with Vinacomin's taking on more U.S.-dollar debt, or higher interest rates. The scenario could also stem from severe disruption at alumina mines resulting in less than 50% utilization rate together with the alumina price falling below US$250 per ton. "We would raise the rating on Vinacomin if the company reduces permanently its reliance on short-term debt and improves its liquidity position. An upgrade would also require the company to maintain disciplined capital spending, with a ratio of FFO to debt remaining above 20%. This could happen if supportive trading conditions and more disciplined capital spending translate into excess cash flow, which the company allocates to debt reduction, while raising longer-dated debts." ********* 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 ***