/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/190812.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 Monday, August 12, 2019, Vol. 22, No. 160 Headlines A U S T R A L I A A & A LAWYERS: Second Creditors' Meeting Set for Aug. 16 ALBATROSS BREWING: Second Creditors' Meeting Set for Aug. 20 ANALIZ PTY: Second Creditors' Meeting Set for Aug. 21 AUS GOLD: First Creditors' Meeting Set for Aug. 19 BIOMETRIC IDENTITY: First Creditors' Meeting Set for Aug. 19 CIVIL BRIDGE: Second Creditors' Meeting Set for Aug. 15 ETHIUMLIVE GROUP: Second Creditors' Meeting Set for Aug. 15 GRAINPRO: Boss Tells of His Personal 'Hell' as Company Struggles HEAVENLY BALINESE: Second Creditors' Meeting Set for Aug. 16 ROBUST CONSTRUCTION: Second Creditors' Meeting Set for Aug. 16 C H I N A BEIJING CAPITAL LAND: S&P Alters Outlook to Neg. & Affirms BB+ ICR HENGFENG BANK: To Receive CNY30 Billion State Lifeline ZHENJIANG TRANSPORTATION: S&P Cuts ICR to 'B+', Outlook Negative ZHONGLIANG HOLDINGS: Moody's Assigns B1 CFR, Outlook Stable I N D I A ACUITY INDIA: CARE Keep D on INR8.3cr Loans in Non-Cooperating AZAFRAN INNOVACION: Ind-Ra Affirms 'B-' Long Term Issuer Rating BAJAJ HINDUSTHAN: CARE Removes D Ratings From Not Cooperating BHAI INDUSTRIES: CARE Withdraws D Rating on LongTerm Cash Credit BRIJ ENGINEERING: ICRA Maintains 'B+' Rating in Not Cooperating CARRYCON INDIA: ICRA Withdraws 'B' Ratings on INR10.10cr Loans CHADHA SUGARS: ICRA Lowers Rating on INR109.80cr Loan to D CORPORATE FASHION: CARE Keeps D on INR5.96 Loans in Not Cooperating DECO EQUIPMENTS: ICRA Keeps B- on INR8.19 Loans in Non-Cooperating DEWAN HOUSING: May Not Repay Debt While Revamp Talks Continue GVR AJMER: Ind-Ra Migrates 'D' Bank Loan Rating to Non-Cooperating HANUMAN FOODS: ICRA Keeps D on INR15cr Loans in Non-Cooperating HINDUSTHAN NATIONAL: CARE Maintains D Ratings in Not Cooperating INDO GERMAN: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable KIRATPUR NER: ICRA Keeps D on INR1,474cr Loan in Non-Cooperating KSK MAHANADI: ICRA Keeps D Loan Ratings in Non-Cooperating LORDS ORIENTAL: CARE Moves D on INR13cr Loans to Not Cooperating MINING ASSOCIATES: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating PATEL PHOSCHEM: CARE Lowers Rating on INR14.75cr Bank Loans to D PNG TOLLWAY: ICRA Withdraws D Rating on INR1,198.91cr Loans PUSHPAK BULLIONS: ICRA Keeps D on INR150cr Loans in Non-Cooperating SAVIDHA MEDICAL: ICRA Keeps B on INR10cr Loan in Non-Cooperating SHRI VAIJANATH: CARE Keeps D on INR6.41cr Loans in Not Cooperating SRI SAI LEELA: ICRA Keeps B+on INR12cr Loans in Non-Cooperating SRS LIMITED: ICRA Maintains 'D' Debt Ratings in Non-Cooperating SUBHASH KABINI: CARE Keeps D on INR53cr Loans in Not Cooperating UNDAVALLI CONSTRUCTIONS: ICRA Withdraws B+ Rating on INR15cr Loan UNITED COLD: CARE Assigns 'D' Rating to INR6.80cr LT Bank Loans VARDHMAN POLYTEX: ICRA Maintains D Ratings in Non-Cooperating WINNING EDGE: ICRA Withdraws B+ Ratings on INR9.75cr Loans ZEE KNITS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' J A P A N JAPAN DISPLAY: Posts JPY83.27-Bil. Net Loss in Q1 Ended June 30 N E W Z E A L A N D FINANCIAL PLANNING: NZ$8 Million of Clients' Funds Unaccounted For SOCIAL MEDIA: Customer Database Illegally Used, Liquidator Warns S I N G A P O R E NO SIGNBOARD: Shuts Hawker-Themed Fast Food Outlets Due to Losses T H A I L A N D THAI AIRWAYS: 2nd Quarter Loss Widens to THB6.88 Billion - - - - - ================= A U S T R A L I A ================= A & A LAWYERS: Second Creditors' Meeting Set for Aug. 16 -------------------------------------------------------- A second meeting of creditors in the proceedings of A & A Lawyers Pty Ltd, trading as "AHA Taylor Lawyers", has been set for Aug. 16, 2019, at 3:00 p.m. at the offices of Boardroom of Chifley Advisory, Suite 1903, Level 19, at 31 Market Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Aug. 15, 2019, at 4:00 p.m. Gavin Moss of Chifley Advisory Pty Ltd was appointed as administrator of A & A Lawyers on May 10, 2019. ALBATROSS BREWING: Second Creditors' Meeting Set for Aug. 20 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Albatross Brewing Pty Ltd has been set for Aug. 20, 2019, at 11:00 a.m. at 39 De Havilland Road, in Mordialloc, 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 Aug. 19 2019, at 4:00 p.m. Philip Raymond Hosking of Helm Advisory was appointed as administrator of Albatross Brewing on June 18, 2019. ANALIZ PTY: Second Creditors' Meeting Set for Aug. 21 ----------------------------------------------------- A second meeting of creditors in the proceedings of: -- Analiz Pty Ltd -- Birelos Development Pty Ltd -- Viluti Homes Pty Ltd -- VLT 2 Pty Ltd has been set for Aug. 21, 2019, at 10:00 a.m. at Adina Apartment Hotel, at 189 Queen Street, in Melbourne, 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 Aug. 19, 2019, at 4:00 p.m. Claudio Trimboli of Charles and Co was appointed as administrator of Analiz Pty on July 17, 2019. AUS GOLD: First Creditors' Meeting Set for Aug. 19 -------------------------------------------------- A first meeting of the creditors in the proceedings of Aus Gold Mining Group Pty Ltd will be held on Aug. 19, 2019, at 10:00 a.m. at the offices of Hall Chadwick, Level 40, at 2 Park Street, in Sydney, NSW. John Vouris, Richard Albarran and Kathleen Vouris of Hall Chadwick were appointed as administrators of Aus Gold on Aug. 8, 2019. BIOMETRIC IDENTITY: First Creditors' Meeting Set for Aug. 19 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Biometric Identity Systems Pty Ltd will be held on Aug. 19, 2019, at 10:30 a.m. at the offices of Deloitte Financial Advisory Pty Ltd Riverside Centre, Level 23, at 123 Eagle Street, in Brisbane, Queensland. Michael Billingsley and David Ian Mansfield of Deloitte Financial Advisory were appointed as administrators of Biometric Identity on Aug. 8, 2019. CIVIL BRIDGE: Second Creditors' Meeting Set for Aug. 15 ------------------------------------------------------- A second meeting of creditors in the proceedings of Civil Bridge & Wharf Pty Ltd has been set for Aug. 15, 2019, at 11:00 a.m. at the offices of APL Insolvency, Level 5, at 150 Albert Road, in South Melbourne, 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 Aug. 14, 2019, at 5:00 p.m. Jeremy Robert Abeyratne of APL Insolvency was appointed as administrator of Civil Bridge on July 12, 2019. ETHIUMLIVE GROUP: Second Creditors' Meeting Set for Aug. 15 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Ethiumlive Group Pty Ltd, trading as Ethium Partners & Associates, has been set for Aug. 15, 2019, at 10:00 a.m. at the offices of Hall Chadwick Chartered Accountants, Level 40, at 2 Park 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 Aug. 14, 2019, at 5:00 p.m. Blair Pleash of Hall Chadwick was appointed as administrator of Ethiumlive Group on July 11, 2019. GRAINPRO: Boss Tells of His Personal 'Hell' as Company Struggles ---------------------------------------------------------------- ABC News reports that the boss of grain and hay company GrainPro, which was placed into administration last month, said he is "in hell at the moment". According to the report, Dr. Mario Bonfante said the situation with the company, based in Wagga Wagga, New South Wales, had left him "devastated." "I am pledging my own personal assets to pay every cent back to farmer creditors," the report quotes Dr. Bonfante as saying. Dr. Bonfante was speaking to the ABC after the first meeting of creditors was held in Wagga. The ABC says drought-stricken farmers are calling for GrainPro to be wound up in a bid to receive some of the AUD6 million dollars they are owed. The meeting was told by administrators that GrainPro owed the money to about 250 people, the report relates. The ABC has been told this includes 15 growers who are owed AUD100,000 each. According to the ABC, administrator Adam Shepard said he would know more about how much creditors would receive in a fortnight after he had established the value of assets and investigated the company's affairs. A deed of company arrangement will be voted on at a second meeting later this month, the report notes. Based in Dubbo, New South Wales, Grainpro Pty Limited is a grain marketing company. Adam Shepard of Setter Shepard was appointed administrator of Grainpro on July 27, 2019. HEAVENLY BALINESE: Second Creditors' Meeting Set for Aug. 16 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Heavenly Balinese Group Pty Ltd, trading as Naughty Nuri's, has been set for Aug. 16, 2019, at 10:00 a.m. at the offices of BRI Ferrier at Level 10, at 45 William Street, in Melbourne, 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 Aug. 15, 2019, at 4:00 p.m. David Coyne and James Koutsoukos of BRI Ferrier were appointed as administrators of Heavenly Balinese on July 12, 2019. ROBUST CONSTRUCTION: Second Creditors' Meeting Set for Aug. 16 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Robust Construction Services Pty Ltd has been set for Aug. 16, 2019, at 11:00 a.m. at Level 27, at 259 George Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Sule Arnautovic and Trent Andrew Devine of Jirsch Sutherland were appointed as administrators of Robust Construction on July 11, 2019. ========= C H I N A ========= BEIJING CAPITAL LAND: S&P Alters Outlook to Neg. & Affirms BB+ ICR ------------------------------------------------------------------ S&P Global Ratings revised the outlook on Beijing Capital Group Co. Ltd.'s (BCG) and on its Hong Kong-listed property development arm, Beijing Capital Land Ltd. (BCL) to negative from stable. S&P also affirming the issuer credit ratings on these entities at 'BBB-' and 'BB+', respectively. S&P said, "We revised the outlook because we expect Beijing Capital Group Co. Ltd.'s (BCG) leverage to stay elevated with risk of further deterioration, mainly driven by the expansion of its property development business, but also because of increasing capital expenditure (capex) to grow nonproperty segments such as the environmental business. Despite the group's strategic emphasis on the environmental segment, BCG's profit and cash flow are increasingly dependent on the development segment. S&P expects BCG's total adjusted debt to reach Chinese renminbi (RMB) 200 billion by 2019 year-end, and the group's leverage ratio to remain at the current elevated level at about 13x-14x for the next two years. This follows a 23% debt growth (including perpetual instruments and corporate guarantees) in the past 18 months. Despite moderate revenue growth, the group's EBITDA stayed relatively flat in 2018, pushing the debt-to-EBITDA ratio to 14x at 2018 year-end. BCG's equity issuance plan of raising RMB6 billion-RMB8 billion at Beijing Capital Land Ltd. (BCL) and Beijing Capital Co. Ltd. (BCC) this year may alleviate some pressure on its leverage and help the group to meet the State‑Owned Assets Supervision and Administration Commission's asset-liability ratio target. However, it may not be sufficient to provide meaningful leverage improvement given the group's expansion plans. Nonetheless, S&P believes BCG will maintain diversified funding channels and low funding costs due to its state-owned enterprise (SOE) status. This will support its EBITDA-to-interest coverage ratio at about 1.5x in the next 18-24 months. S&P believes BCG's current debt-funded expansion is driven by two major spending pushes: the growth of its core environmental business at BCC, and the ramp-up of BCL to maintain its market position and competitiveness amid a scaling up of social housing and primary land development at the group level. BCG is building its market leadership for its environmental business at BCC and is investing and acquiring new water/waste processing capacities. In particular water and sewage engineering business in the form of large build-operate-transfer and private-public partnership projects, which require large upfront investment, are growing rapidly. S&P estimates annual capex will exceed RMB10 billion in 2019, with further increases in the next two years. As a result, BCC's net operating cash flow may only cover about one-third of its capex needs. This means the company will continue to rely on external financing. S&P said, "We also expect BCL's leverage to stay elevated at 15x-16x in 2019-2020 as the property developer accelerates its scale expansion in the next two years with contracted sales targeted to surpass RMB100 billion in 2020, reaching RMB140 billion in 2021, to increase its market share and maintain its ranking against peers. "We believe the company will continue to budget land spending of over 50% of contracted sales to support growth. In addition, BCL is spending more heavily on its primary land development projects in Beijing and Tianjin, which require significant upfront financing for a lengthy period, adding to leverage. "We expect the social housing development and primary land development activities at the group's unlisted subsidiary, Beijing Capital Jingzhong (Tianjin) Investment Co. Ltd. (Capital Jingzhong), will start to become a significant source of leverage and profit in the next two to three years." These projects involve long project cycles, and sizable multiyear capital outlays before net cash flow can turn positive and profit can be realized. Therefore S&P expects the group to use its internal capital in the near term to support its investment needs for those activities, which S&P estimates could generate more than RMB15 billion of cash inflow and RMB10 billion of EBITDA over the next three years. At the same time, the increasing contribution from the property segment may heighten its exposure to property market cyclicality and add volatility to earnings, as well as weaken the group's business diversification profile. With the expansion of BCL and the Capital Jingzhong business, S&P projects primary and secondary development to account for about 60% of group EBITDA in the next two to three years, from just under 55% in 2018. BCG S&P said, "The negative outlook on BCG reflects our view that BCG's leverage may rise from the current elevated level during the next 18-24 months. It also reflects the rising business concentration risk as the group relies more heavily on the development segment for profit and cash flow contributions, while proportional contributions from the environmental and infrastructure segments decrease. "We could lower the rating if BCG's equity issuance and growth execution falter, its debt expansion is faster than we anticipate, or its social housing and primary land development businesses do not generate the desired level of profit and cash flow, such that its debt-to-EBITDA ratio deteriorates from the current 13x-14x." Moreover, if EBITDA contributions from nonproperty segments with stable cash flows do not contribute at least 40% of total group EBITDA, then a downgrade is also possible on the basis of higher earnings volatility and materially weaker diversification. S&P said, "We may also lower the rating if our assessment of the likelihood of extraordinary governmental support to BCG weakens, which may occur if the company's strategic importance to the Beijing municipal government weakens. "We could revise the outlook back to stable if BCG achieves stronger operating performance and EBITDA growth compared to our base case, while prudently managing debt expansion such that its debt-to-EBITDA ratio demonstrates a clear improving trend towards 10x." BCL S&P said, "The negative outlook on BCL mirrors that on parent BCG and our expectation that the company's leverage will stay high with EBITDA growth slower than that of debt. "We could downgrade BCL if we lower the rating on BCG. In a less likely scenario, we may lower the rating on BCL if we believe the company's importance to the group slips, or the group's control of BCL weakens." Upside scenario S&P could revise the outlook back to stable if BCG's outlook stabilizes. BCG was established in 1994 as one of the largest and most profitable SOEs under the Beijing government. BCG has four major business lines: water and environment services, real estate development, transportation infrastructure, and financial services. BCG has two flagship subsidiaries in its water treatment and property development business segments. BCG owns 46.1% of BCC, which is listed on the Shanghai Stock Exchange and completed a RMB2.7 billion private rights offering in November 2018. The subsidiary is the group's platform for the water, sewage, and solid waste treatment businesses, as well as the parent of Hong Kong-listed Capital Environment Holdings Ltd. BCG engages in residential and commercial property development mainly through BCL. BCG owns 54.5% of BCL, which is listed on the Hong Kong stock exchange. It also conducts social housing and primary land development through its unlisted subsidiary, Capital Jingzhong. HENGFENG BANK: To Receive CNY30 Billion State Lifeline ------------------------------------------------------ Wu Hongyuran and Timmy Shen at Caixin Global report that troubled Hengfeng Bank Co. Ltd. has received official approval for a restructuring plan that involves investments from a provincial government and a unit of China's sovereign wealth fund. Hengfeng Bank, one of China's 12 national joint-stock lenders, will receive a CNY30 billion (US$4.3 billion) investment from an entity controlled by the Shandong provincial government, making the entity the biggest shareholder of the Shandong-based bank once the deal is done, multiple sources told Caixin. Meanwhile, Central Huijin Investment Ltd., a domestic arm of China's sovereign wealth fund, China Investment Corp., will also become a strategic investor, Caixin relates. Central Huijin has yet to do its due diligence on the bank, a senior Hengfeng Bank executive told Caixin. HengFeng Bank Co., Limited operates as a commercial bank. The Company offers deposits, loans, settlement, bill discounting, government bonds underwriting, trade finance, investment banking, wealth management, and other services. HengFeng Bank provides services for enterprises and individuals. ZHENJIANG TRANSPORTATION: S&P Cuts ICR to 'B+', Outlook Negative ---------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Zhenjiang Transportation to 'B+' from 'BB-'. S&P also lowered its long-term issue rating on the company's senior unsecured notes to 'B+' from 'BB-'. S&P downgraded Zhenjiang Transportation Industry Group Co. Ltd. to reflect its view of the company's rising refinancing risk over the next 12 months and unsustainable capital structure. While Zhenjiang Transportation did reduce debt in 2018 as part of the nationwide financial deleveraging push, this dented its liquidity position. As of March 31, 2019, the company's unrestricted cash fell substantially to just Chinese renminbi (RMB) 2.8 billion, compared with outstanding short-term debt of RMB24.9 billion and likely annual interest expenses of RMB4 billion-RMB5 billion. Its weak liquidity profile makes Zhenjiang Transportation vulnerable to nonpayment of its debt obligations, consistent with S&P's negative view on the sustainability of its capital structure. The company's low cash level and negative funds from operations (FFO) mean it will increasingly depend on favorable financing market and policy conditions to meet its obligations to creditors. Zhenjiang Transportation's vulnerable financial position means its refinancing efforts could be susceptible to other unforeseeable shocks in the market. S&P continues to consider Zhenjiang Transportation's likelihood of receiving extraordinary support from the Zhenjiang municipal government as very high. As directed by the central government, local governments including Zhenjiang recently started facilitating the hidden debt replacement by commercial banks. The move could alleviate Zhenjiang Transportation's refinancing pressure as some high-cost short-term debt is converted into longer-tenor lower-cost bank loans. Nevertheless, the scale and effectiveness of such support is unproven especially given the sheer size of the company's outstanding debt. The negative outlook on Zhenjiang Transport reflects S&P's negative view on the credit profile of the Zhenjiang government and the company's heightened refinancing risks over the next six to 12 months. S&P could downgrade Zhenjiang Transportation if any of the following occurs: -- The company does not formulate a concrete plan to address the refinancing of its U.S.-dollar bond due in December 2019, which will further expose it to market disruptions. -- The credit profile of the Zhenjiang municipal government materially weakens. This could occur if: (1) its capital spending accelerates, leading to a larger budgetary deficit and higher government debt burden than our base case; or (2) the city's tax-supported debt increases beyond 600% of operating revenues due to an unexpected surge in local government financing vehicles (LGFV) or government debt. -- S&P expects the likelihood of Zhenjiang Transportation receiving extraordinary government support to diminish due to a change in government policies, strategies, or priorities for the company. Heightened policy risk on LGFVs that could affect timely extraordinary local government support, weakened government control, reduction in government ownership, or a significant increase in LGFVs' involvement in market competitive segments could indicate such a scenario. -- S&P reassesses the likelihood of extraordinary government support if Zhenjiang's credit profile materially weakens. -- S&P could upgrade Zhenjiang Transportation if it believes the credit profile of the Zhenjiang municipal government has improved. This could occur if the city manages to stabilize its debt burden, by slowing down debt growth or boosting operating revenues. -- S&P could also raise the rating if the company completes the refinancing of its short-term maturities, notably its U.S.-dollar bond due in December 2019. -- In another less likely scenario, S&P could upgrade the company if it expects its likelihood of receiving government extraordinary support will increase. Zhenjiang Transportation is an LGFV wholly owned by the Zhenjiang municipal government. The company's main businesses are investments and operation of the city's transportation assets and primary land development. ZHONGLIANG HOLDINGS: Moody's Assigns B1 CFR, Outlook Stable ----------------------------------------------------------- Moody's Investors Service has assigned a first-time B1 corporate family rating to Zhongliang Holdings Group Company Limited. The outlook for the rating is stable. RATINGS RATIONALE "Zhongliang's B1 CFR reflects the company's strong brand name in second-tier and lower-tier cities in the Yangtze River Delta region, and robust track record of contracted sales growth," says Cedric Lai, a Moody's Vice President and Senior Analyst. Zhongliang, a Shanghai-based property developer, has a strong market position and well-recognized brand name in second-tier and lower-tier cities in the Yangtze River Delta region, where there is good demand for residential properties. The Yangtze River Delta region contributed around 59.4% of the company's contracted sales in 2018. However, Moody's expects Zhongliang will continue to expand to other regions, such as Central and Western China, the Bohai Rim Region, and Pearl River Delta, to reduce its exposure to local regulatory measures and regional economy volatilities. The company has a track record of robust contracted sales growth, underpinned by strong housing demand in lower-tier cities over the past two years and strong sales execution. As a result, the company's contracted sales rose 56% year-on-year to RMB101.5 billion in 2018, following 242% year-on-year growth in 2017. Looking ahead, Moody's expects Zhongliang's contracted sales will grow 10%-15% per annum to reach around RMB120-140 billion in the next 12-18 months. Such a situation will support growth in both revenue and cash flow generation over the same period. Moody's expectations considers the company's high level of saleable resources, which totaled 36.1 million square meters of gross floor area across 334 residential projects at the end of 2018. Zhongliang's land bank as of December 2018 could support around three years of property development. Although the company's scale is large in terms of contracted sales value, its debt leverage -- as measured by revenue/adjusted debt -- shows some cyclicality, in line with its B1-rated peers. The company's debt leverage improved to 89% in 2018 from 56% in 2017, Moody's expects it will slightly weaken to around 75%-85% over the next 12-18 months as Zhongliang takes on debt to fund land replenishment. Zhongliang's interest coverage -- as measured by adjusted EBIT/interest -- improved to 2.5x in 2018 from 1.5x in 2017. Moody's expects that its interest coverage will be maintained at 2.6x over the next 12-18 months, after factoring in the expected lower finance cost following its listing on the Hong Kong Stock Exchange and improved access to onshore and offshore funding. "Zhongliang's B1 CFR is constrained by the concentration of its land bank in second-tier and lower-tier cities, and by its reliance on expensive non-bank financing," adds Lai, who is also Moody's Lead Analyst for Zhongliang. At the end of 2018, 83% of the company's land bank was located in lower-tier cities and the remaining 17% in second-tier cities. Moody's expects demand in lower-tier cities to weaken over the next 12-18 months, given that the Chinese government has scaled back its funding for the resettlement of shantytown residents. This change in policy will negatively affect Zhongliang's operating performance, and is already incorporated in Moody's forecast for the company's contracted sales growth for the next 12-18 months. Zhongliang's B1 CFR is also constrained by the company's reliance on expensive non-bank financing. Onshore trust loans and loans from asset management companies accounted for around 58% of its total reported debt at end 2018. However, the company's listing on the Hong Kong Stock Exchange in July 2019 could help broaden its funding channels in the future. Zhongliang's liquidity position is good. The company's cash balance of RMB23.1 billion at the end of 2018 covered 160% of its short-term debt. Such cash holdings, together with the company's operating cash flow, should be sufficient to cover its short-term debt and estimated committed land payments over the next 12-18 months. With respect to governance risks, Moody's has considered the risk associated with the concentration of the company's ownership in its controlling shareholders, Mr. Yang Jian and his spouse, who held a 84.2% stake in the company at 18 July 2019. The financial risk associated with this ownership concentration is partly mitigated by (1) the presence of three independent non-executive directors on a board of seven directors, and of two independent non-executive directors chaired the audit and remuneration committees, and (2) the application of the Listing Rules of the Hong Kong Stock Exchange and the Securities and Futures Ordinance in Hong Kong. The stable rating outlook reflects Moody's expectation that Zhongliang will continue to grow its contracted sales, maintain its good liquidity position, and remain prudent in its land acquisitions. Moody's could upgrade the CFR if Zhongliang (1) achieves strong contracted sales growth; (2) strengthens its financial profile, with revenue/adjusted debt above 80% and EBIT/interest above 3.0x on a sustained basis; (3) maintains its good liquidity position; and (4) reduces its trust financing and borrowings from asset management companies. Moody's could downgrade the CFR in case of a deterioration in Zhongliang's contracted sales growth, liquidity position, or credit metrics. Credit metrics that could trigger a rating downgrade include (1) revenue/adjusted debt below 50%-55%; or (2) adjusted EBIT/interest coverage below 2.0x, both on a sustained basis. ========= I N D I A ========= ACUITY INDIA: CARE Keep D on INR8.3cr Loans in Non-Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Acuity India Resorts Private Limited (AIRPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 8.37 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 26, 2018, placed the rating of AIRPL under the 'issuer non-cooperating' category as AIRPL had failed to provide information for monitoring of the rating for the rating exercise as agreed to in its Rating Agreement. AIRPL continues to be non-cooperative despite repeated requests for submission of information through phone calls and an email dated July 2, 2019 and July 22, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of key rating drivers Key Rating Weaknesses Ongoing delays in debt servicing: AIRPL has been irregular in servicing its debt obligation owing to weak liquidity position of the company. Liquidity Analysis: The liquidity position remained weak owing to cash flow mismatch from operations. Cash and bank balance remained low at INR0.17 crore as on March 31, 2016 while net cash flow from operating activities remained negative at INR0.77 crore during FY16. Incorporated in August, 2012, Acuity India Resorts Private Limited (AIRPL) is engaged into hospitality business in the name of '7 Seasons Resorts & Spa' which is operating a Resort, banquet, restaurant and Spa. It is located at KhambhaliyaDwarka highway, Lakhabawal, Jamnagar, Gujarat. AZAFRAN INNOVACION: Ind-Ra Affirms 'B-' Long Term Issuer Rating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Azafran Innovacion Limited's (AIL) Long-Term Issuer Rating at 'IND B-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR33.6 mil. (reduced from INR37.78 million mil.) Term loan due on June 2021 affirmed with IND B-/Stable rating; and -- INR20.00 mil. Fund-based limits affirmed with IND B- /Stable/INDA4 rating. KEY RATING DRIVERS The affirmation reflects AIL's continued weak credit metrics. According to the provisional financials of FY19, AIL reported operating losses of INR121.94 million (FY18: INR125.44 million) due to substantial expenditure on the selling and promotional activities for the launch of new products and customer base expansion. Revenue improved marginally year-on-year to INR113 million in FY19 on high sales due to increased market penetration (FY18: INR106 million). The revenue booked in the first quarter of FY20 was INR65 million. However, the scale of operations remains small. AIL's liquidity is modest as indicated by the maximum average fund-based facility use of 93% over the 12 months ended June 2019. The cash flow from operations remained negative at INR123.65 million in FY19 (FY18: INR166.74 million) with a year-end cash balance of INR0.57 million (INR0.49 million). AIL's current debt obligations continue to be serviced by promoters' funds. The working capital cycle remained elongated even though it improved to 369 days in FY19 (FY18: 413 days) due to business stabilization, driven by the improved creditor and inventory days. The ratings continue to derive support from over two decades of experience of the promoters in the manufacturing industry. RATING SENSITIVITIES Positive: Turnaround in profitability and the ability to service debt will lead to positive rating action. COMPANY PROFILE AIL, a closely held public limited company, mainly produces organic cosmetic products under the brand Azafran Organics at its facility in Ahmedabad, Gujarat. BAJAJ HINDUSTHAN: CARE Removes D Ratings From Not Cooperating ------------------------------------------------------------- CARE Ratings has removed the rating on bank facilities of Bajaj Hindusthan Sugar Limited (BHSL) from Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 7227.13 CARE D; Remove from Issuer Not Facilities Cooperating Long-term/short 329.04 CARE D; Remove from Issuer Not Term Bank Cooperating Facilities Detailed Rationale & Key Rating Drivers The ratings of BHSL takes into account the ongoing delays in the repayment of its debt obligations. Going forward, company's ability to service its debt obligations in a timely manner and improve its overall financial profile together with its capital structure shall be the key rating sensitivities. Detailed description of the key rating drivers Key Rating Weaknesses Stretched liquidity & Delays in servicing of debt obligations: Weak financial performance on account of low sugar realisations in the past due to excess sugar supply in the market has led to stress on the liquidity position of the company and eventually led to delays in servicing of some of its debt obligations. Based on the information available and assessment made by the statutory auditors, the company has delayed in repayments of dues to various financial institutions, bank and government during FY19. BHSL is making continuous efforts to regularise its repayment obligations. BHSL is carrying a large stock of sugar inventory on account of impositions by the government on the monthly sales by the sugar companies to protect the interest of the sector on account of surplus production in the past sugar seasons. Further, BHSL is expecting claim amount & interest from UP government totalling to approximately Rs 1500 crore (after Allahabad high court termed UP State's suspension of incentives under policy in 2004 to attract investments in Sugar sector "arbitrary") which will be utilized for the operations of the company. Substantial investment in group companies: The group has implemented a power project under Bajaj Energy Ltd (BEL) and commissioned a 1,980 MW project under Lalitpur Power Generation Company Limited (LPGCL). BHSL has invested a substantial amount in its group companies by way of investments or loans and advances. Inability of BHSL to recover these advances in a timely manner in the past has led to its stretched liquidity position. The management is however planning to recoup the said advances by planning an IPO in Bajaj Energy limited (BEL) for which a DRHP has already been filed with SEBI on April 5, 2019. The funds raised through the said issue will partly be utilized by BEL to purchase the stake of LPGCL from BHSL. The said fund infusion in BHSL will be entirely be utilized for de-leveraging its balance sheet which shall aid in the improvement in its capital structure going ahead. The exact issue size & funds infusion shall however depend on factors like market conditions, valuations, etc. Regulated nature of sugar business: The industry is cyclical by nature and is vulnerable to the government policies for various reasons like its importance in the Wholesale Price Index (WPI) as it classifies as an essential commodity. The government on its part resorts to various regulations like fixing the raw material prices in the form of State Advised Prices (SAP) and Fair & Remunerative Prices (FRP). All these factors impact the cultivation patterns of sugarcane in the country and thus affect the profitability of the sugar companies. Key Rating Strengths Long track record of operations and experienced promoters The company was incorporated in 1931 under the name - The Hindusthan Sugar Mills Limited (HSML) by Mr Jamnalal Bajaj. Subsequently HSML was renamed as Bajaj Hindusthan Limited in 1988 and changed to the present one in January 2015. The company gradually increased its capacity over the years to become one of the largest sugar producers in the country. Mr. Kushagra Nayan Bajaj has considerable experience in the sugar industry and is assisted by a team of professionals having significant experience in the industry. The promoter & management team of BHSL is resourceful and they have plans to deleverage its balance sheet by undertaking a right issue in BEL as detailed above. BHSL, a part of the 'Shishir Bajaj Group', is one of the largest sugar manufacturing companies in the country and also the largest industrial alcohol manufacturer in India. BHSL has 14 sugar factories with an aggregate capacity of 1.36 lakh tonne of sugarcane crushed per day (TCD). It has six distilleries with capacity to produce 800 kilo litre per day (KLPD) of industrial alcohol and owns co-generation plants having power generating capacity of 449 MW. The company also has two Medium Density Fiber Board manufacturing plants with capacity of 1.60 MtCu per annum and one particle board plant of 0.50 lac Mt Cu per annum. BHAI INDUSTRIES: CARE Withdraws D Rating on LongTerm Cash Credit ---------------------------------------------------------------- CARE has withdrawn the outstanding rating of 'CARE D; Issuer Not Cooperating' assigned to the Fund-based - LT Cash Credit bank facilities of Bhai Industries Private Limited with immediate effect. The action has been taken at the request of Bhai Industries Private Limited and 'No Objection Certificate' received from the bank that has extended the facilities rated by CARE. Bhai Industries Private Limited (BIP) incorporated in 1996 as a private limited company and is currently being managed by Mr. Sukhpal Singh, Mr. Surinder Singh and Mr. Sahibjit Singh as its directors. The company is engaged in the processing of wheat with an installed capacity of 46,000 tonne of wheat per annum as on June 30, 2018 at its manufacturing facility located in Moga, Punjab. Besides BIP, the promoters are engaged in another group concern namely, Bhai Filling Station (BSF), established as a proprietorship firm in 2007 and is operating a petrol filling station. BRIJ ENGINEERING: ICRA Maintains 'B+' Rating in Not Cooperating --------------------------------------------------------------- ICRA said the ratings for the INR7.50-crore bank facility of Brij Engineering Works continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B+(Stable)/A4, ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 0.50 [ICRA]B+(Stable), ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 7.00 [ICRA]A4, ISSUER NOT Non-Fund Based 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. BEW was established as a partnership firm in 1978 and was reconstituted in 2004. The current partners of the firm are Mr. Brij Kishore Gupta, Mrs. Sheela Gupta, Mr. Swapnil Gupta and Mrs. Shweta Gupta. The firm undertakes various civil construction projects like construction of overhead tanks, sewerage pipelines and many others, primarily for government clients. The firm is located in Kanpur, Uttar Pradesh and is a registered Class-A contractor with Uttar Pradesh Jal Nigam. The firm has largely focused on projects within Uttar Pradesh. CARRYCON INDIA: ICRA Withdraws 'B' Ratings on INR10.10cr Loans -------------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of Carrycon India Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- 6.50 [ICRA]B (Stable); ISSUER NOT based/Cash Credit COOPERATING; withdrawn Long-term Bank 3.30 [ICRA]B (Stable); ISSUER NOT Guarantee COOPERATING; withdrawn Long-Term 0.30 [ICRA]B (Stable); ISSUER NOT Unallocated COOPERATING; withdrawn Rationale The ratings assigned to Carrycon India Limited have been withdrawn at the request of the company, based on the no-objection certificate provided by its banker. Incorporated in 1995, CIL is promoted by Mr. G. D. Rao, Mr. Prakash Bhanu, and Mrs. Sadhana Rao. It provides civil contractor/engineering services including telecom infrastructure support services, telecom network maintenance services, and installation of telecom towers, water supply, sewerage, de-silting, trunk sewer lines and civil construction work. CIL has offices in two locations – Delhi and Chennai. In the northern region (Delhi) CIL is involved in laying cables and water pipelines, whereas in the southern region (Chennai) it is engaged in erecting telecom towers and civil construction work. In FY2017, the company reported a net profit of INR0.20 crore on an OI of INR17.12 crore compared with a net profit of INR0.26 crore on an OI of INR16.84 crore in the previous year. CHADHA SUGARS: ICRA Lowers Rating on INR109.80cr Loan to D ---------------------------------------------------------- ICRA has downgraded the rating of long-term bank facilities of Chadha Sugars & Industries Limited (CSIL) to [ICRA]D from [ICRA]B and short-term bank facilities to [ICRA]D from [ICRA]A4. The ratings continue to remain in the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 109.80 [ICRA]D; ISSUER NOT COOPERATING; downgraded from [ICRA]B (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Term Loan 168.33 [ICRA]D; ISSUER NOT COOPERATING; downgraded from [ICRA]B (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Long-term Unallocated 40.46 [ICRA]D; ISSUER NOT COOPERATING; downgraded from [ICRA]B (Stable); Rating continues to remain in the 'Issuer Not Cooperating' category Short-term Non Fund Based 6.00 [ICRA]D; ISSUER NOT COOPERATING; downgraded from [ICRA]A4; 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 CSIL to the lender(s), as confirmed by them to ICRA. Key rating drivers Credit strengths Experienced management with established track record in footwear industry: The management of ARPL is well qualified and the promoters have over three decades of experience in the footwear industry. Credit challenges Stretched liquidity position resulted in delays in debt servicing: There have been delays in debt servicing owing to the stretched liquidity position of the company. Liquidity Position: There have been delay in debt servicing owing to the stretched liquidity position of the company. CSIL was incorporated in 2004. The company is a part of the Late Mr. Hardeep Chadha Group which has business interests in diverse areas such as real estate, sugar, liquor, paper etc. CSIL has set up a 4500 TCD sugar plant (expanded to 5000 TCD), 26 MW co-generation unit, 30 KLPD grain based distillery and 30 KLPD molasses based distillery. The plant is located at village Teri Afghana in Gurdaspur district of Punjab. CORPORATE FASHION: CARE Keeps D on INR5.96 Loans in Not Cooperating ------------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Corporate Fashion Private Limited (CFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 5.46 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Short-term Bank 0.50 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Detailed Rationale & Key rating Drivers CARE had, vide its press release dated November 16, 2018 placed the rating of CFPL under the 'issuer non-cooperating' category as CFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. CFPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated July 24, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of last rating on November 16, 2018, the following were the rating strengths and weaknesses. Key Rating Weakness Irregularities in Debt Servicing: There are on-going delays in debt servicing in the Past Bhilwara (Rajasthan) based Corporate Fashion Private Limited (CFPL) was incorporated in 2011 by Mr. Vijay Pal Singh and Mr. Prateek Sharma. CFPL is engaged in the business of manufacturing of readymade garments mainly men's wear as well as trading of synthetic grey and finished fabrics and other clothing accessories. The company also does manufacturing of readymade garments on job work basis and also gets manufactured grey and finished fabrics on job work basis. The company markets its products under the brand name of "Corporate Fashion". The plant of CFPL is located at Bhilwara, Rajasthan which is a textile cluster and has 175-200 stitching machines. DECO EQUIPMENTS: ICRA Keeps B- on INR8.19 Loans in Non-Cooperating ------------------------------------------------------------------ ICRA said the rating for the INR12.19 crore bank facilities of Deco Equipments Private Limited rating continue to be in 'Issuer Not Cooperating' category under information and fees. The rating is now denoted as "[ICRA]B- (Stable); ISSUER NOT COOPERATING on information and fees". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 4.00 [ICRA]B- (Stable); ISSUER NOT Fund Based/CC COOPERATING; Rating continues to be under 'Issuer Not Cooperating' category Long Term- 8.19 [ICRA]B- (Stable); ISSUER NOT Fund Based TL COOPERATING; Rating continues to be 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 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. Incorporated in 1989, Deco Equipments Private Limited manufactures custom-made axel parts, break assembly related parts, engine & transmission components, earth moving components etc., which finds its application in commercial vehicles and construction equipments. DEPL is a closely held company and managed by Mr. Deric Fernandis, Managing Director who served as an Engineer at Machinery Manufactures Corporation – textile division for 8 years before starting DEPL in 1989. DEPL's manufacturing facility is located in Hebbal industrial area at Mysore in Karnataka and presently employs around 160 workers (85 permanent employees and the rest on contractual basis). DEWAN HOUSING: May Not Repay Debt While Revamp Talks Continue ------------------------------------------------------------- Reuters reports that Dewan Housing Finance Corp Ltd (DHFL), one of India's so-called shadow banks, on August 8 said it might not be able to fulfill its debt obligations due in the near future while banks review its restructuring plan. Reuters relates that DHFL, one of the largest housing finance companies in India, has roughly INR1 trillion of debt and is in the process of seeking lender approval on a restructuring plan designed to help it to ride out a liquidity crunch and restart its lending business. Earlier last week, the company had said its creditors would not have to take any haircut on principal payments under its resolution plan, Reuters says. According to Reuters, DHFL said in its statement that while banks are considering its resolution plan, it may not be able to make the repayments due in the near future. The company also said that since September 2018, it has repaid INR410 billion (US$5.82 billion) to its creditors, adds Reuters. About Dewan Housing Dewan Housing Finance Corporation Limited (DHFL) operates as a housing finance company in India. The company's deposit products include fixed deposit products for individuals, and trusts and institutions; and corporate, recurring, and Wealth2Health deposits products. It also offers home loans, which include home improvement loans, home construction loans, home extension loans, plot loans/land loans, plot and construction loans, and balance transfer of home loans, as well as home loans for the self-employed; small and medium enterprise loans, including property term, plant and machinery, medical equipment, and business loans; mortgage loans, such as loans against property, loan for purchase of commercial premises, and loan through lease rental discounting; and NRI home loans. As of March 31, 2018, the company operates through a network of 347 locations, including 187 branches, 135 micro branches, 20 zonal/regional/CPU offices, 2 disbursement hubs, and 1 collection center in India, as well as overseas representative offices in London and Dubai. As reported in the Troubled Company Reporter-Asia Pacific on June 21, 2019, ICRA downgraded the rating on the 850-crore commercial paper programme of Dewan Housing Finance Corporation Limited (DHFL) to [ICRA]D from [ICRA]A4. The rating has been removed from Watch with Negative Implications. GVR AJMER: Ind-Ra Migrates 'D' Bank Loan Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated GVR Ajmer Nagaur Tollway Private Limited's (GANTPL) bank loan ratings 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 ratings. The ratings will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR3,187.5 mil. Bank loan (long-term) migrated to non- cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 20, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. Ind-Ra has received the tripartite agreement which states that the loan will be settled through a one-time settlement and the project will be handed over to the authority. However, Ind-Ra has not received any loan closure certificate required to withdraw the ratings. COMPANY PROFILE GANTPL, a special purpose vehicle owned by GVR Infra Projects Limited, has been established to construct, operate and maintain the two-laned Ajmer-Nagaur section of NH-89 in Rajasthan under a 21-year concession from the Public Works Department, Rajasthan, on a design, build, finance, operate and transfer basis. HANUMAN FOODS: ICRA Keeps D on INR15cr Loans in Non-Cooperating --------------------------------------------------------------- ICRA said the ratings for the INR15.00-crore bank facility of Hanuman Foods continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]B(Stable)/A4, ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 12.00 [ICRA]B(Stable), ISSUER NOT Fund Based/CC COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category Short Term- 3.00 [ICRA]A4, ISSUER NOT Fund Based 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. Hanuman Foods was established in the year 1998 as a partnership firm with Mr. Sanjeev Kumar & Mr. Surender Kumar as partners in equal ratio. As per the management it has a milling capacity of 6 tonnes/hr for paddy. Hanuman Foods is engaged in the business of processing and trading of basmati rice in domestic market as well as exporting to countries in Middle East, Saudi Arabia, Dubai, Europe and Kuwait. Firm sells its product under the brand name of "Good luck". Company is having its manufacturing unit at Nadana Road, Taraori, Karnal. HINDUSTHAN NATIONAL: CARE Maintains D Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Hindusthan National Glass Industries Ltd (HNG) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 2063.00 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Long-term/short 600.00 CARE D; Issuer Not Cooperating; Term Bank On the basis of best available Facilities Information NCD- Series-III 200.00 CARE D; Issuer not cooperating; Based on best available Information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated February 7, 2018, placed the ratings of HNG under the 'issuer non-cooperating' category as HNG had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HNG continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter dated May 21, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. The ratings take into account the ongoing delays in debt servicing by the company due to continuous losses. Detailed Description of the Key Rating Drivers At the time of last rating on February 7, 2018, the following were the rating strengths and weaknesses (updated for the information available from Stock Exchange filings): Key Rating Weaknesses Ongoing delays in debt servicing: There are continuing delays in servicing of debt by the company. Continued losses resulting in stressed liquidity position: The company's total operating income increased by about 25% y-o-y to INR2403.52 crore in FY19. PBILDT margin remained stable at 5.66% in FY19 (5.68% in FY18). However, the PBILDT level was not sufficient to cover the interest cost and depreciation and the company continued to incur losses. It reported loss of INR172.96 crore in FY19 (loss of INR294.51 crore in FY18) after considering income of INR95.17 crore from disinvestment in a joint venture. The interest coverage continued to remain below unity. The company incurred cash loss of INR14.43 crore in FY19. Accordingly, the liquidity is stressed. Key Rating Strength Long track record of the company with established market presence: HNG, having market presence of over six decades, is an established manufacturer of container glass and has a pan India presence. The promoters have an experience of over two decades in the container glass industry. HNG, incorporated in February 1946, was promoted by late Mr. C. K. Somany of the Kolkata-based Somany family. The company is a leading manufacturer of container glass with seven manufacturing units, spread across the country having an aggregate installed capacity of 1,569,500 tpa (tonne per annum), the largest in the country. INDO GERMAN: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has revised Indo German International Private Limited's (IGIPL) Outlook to Stable from Negative while affirming its Long-Term Issuer Rating at 'IND BB-'. The instrument-wise rating actions are: -- INR150 mil. Fund-based working capital limits rating affirmed; Outlook revised to Stable from Negative with IND BB- /Stable/IND A4+ rating; and -- INR200 mil. Non-fund-based working capital limits affirmed with IND A4+ rating. The Outlook revision reflects an improvement in IGIPL's revenue in FY19 on account of customer addition and the company's order book of INR3,767.8 million, providing revenue visibility for one year. KEY RATING DRIVERS The affirmation reflects IGIPL's continued weak credit metrics with net leverage (adjusted net debt/operating EBITDAR) of 12.66x, according to the provisional financials for FY19 (FY18: 0.29x) and interest coverage of 1.20x. The leverage deteriorated in FY19 due to an increase in the short-term borrowings while the coverage turned positive on improved operating profitability. The ratings are constrained by the company's tight liquidity with negative cash flow from operations. The average working capital utilization was around 76% during the 12 months ended June 2019; however, in the four months ended July 2019, the limits were fully utilized. Cash and cash equivalents came in at around INR45 million in FY19 (FY18: INR1.71 million). The ratings factor in the improvement in IGIPL's revenue to INR4,989 million in FY19 (FY18: INR418 million) on the back of a rise in the orders received as well as the addition of new customers However, IGIPL faces customer concentration with 89% of its revenue is contributed by the top five customers in FY19. IGIPL recorded comfortable EBITDA margins of 0.67% in FY19 after reporting operating losses in FY18 (FY17: 0.49%, FY16: 0.14%). However, the margins remain susceptible to volatility due to the trading nature of operations. ROCE was around 23% in FY19. The ratings, however, are supported by more than four decades of experience of IGIPL's promoters in the steel trading business, which has resulted in the company's long-standing relationships with its clientele and suppliers. The ratings also continue to be supported by the interest income generated from IGIPL's fixed deposits that provided cushion for interest obligations. RATING SENSITIVITIES Positive: A substantial improvement in the operating profitability leading to an increase in the interest coverage above 1.50x and an improvement in the liquidity profile could be positive for the ratings. Negative: Deterioration in the operating profitability leading to deterioration in the interest coverage below 1.20x and/or further liquidity stretch could be negative for the ratings. COMPANY PROFILE IGIPL, incorporated in 1995 by its promoter T.K. Somani, trades coking coal, anthracite coal, hot rolled coils, iron and steel, their alloys and other allied products. The company has its head office in New Delhi. KIRATPUR NER: ICRA Keeps D on INR1,474cr Loan in Non-Cooperating ---------------------------------------------------------------- ICRA said the long-term rating for the bank facilities of Kiratpur Ner Chowk Expressway Limited (KNCEL) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 1,474.86 [ICRA]D ISSUER NOT COOPERATING; Term Loan 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. Incorporated on February 12, 2012, Kiratpur Ner Chowk Expressway Limited (KNCEL) is a wholly-owned subsidiary of IL&FS Transportation Networks Limited (ITNL) undertaking the widening and realignment from existing two lanes to four lanes of Kiratpur to Ner-Chowk Section of NH-21 from kilometre (km) 73.200 to km 186.500 in Himachal Pradesh with a total project stretch of 84.38 km. The project was awarded by the National Highway Authority of India (NHAI) in FY2012 through a competitive bidding process under National Highway Development Programme (NHDP) Phase III on Design, Build, Finance, Operate, Transfer (DBFOT) basis. The project stretch connects Northern and Southern Himachal Pradesh and acts as a key connection for the passenger and freight traffic passing through a number of major districts like Rupanagar, Mandi and Bilaspur in Punjab and Himachal Pradesh. KSK MAHANADI: ICRA Keeps D Loan Ratings in Non-Cooperating ---------------------------------------------------------- ICRA notes that the long-term and short-term rating for the bank loan facilities of KSK Mahanadi Power Company Limited (KMPCL) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". The rating factors in the continued delays in debt servicing by the entity. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Term 12,952.00 [ICRA]D ISSUER NOT loan (Long-term) COOPERATING; Rating continues to be under 'Issuer Not Cooperating' category Fund-based-Cash 1,120.00 [ICRA]D ISSUER NOT credit (Long-term) COOPERATING; Rating continues to be under 'Issuer Not Cooperating' category Non-fund-based 857.00 [ICRA]D ISSUER NOT Facility COOPERATING; Rating (Short-term) continues to be under 'Issuer Not Cooperating' category Non-fund-based 773.00 [ICRA]D ISSUER NOT facility COOPERATING; Rating (Long-term/ continues to be under Short-term) 'Issuer Not Cooperating' category As part of its process and in accordance with its rating agreement with KMPCL, ICRA has been trying to seek information from the entity 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 based on the 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. KMPCL promoted by KSK Energy Ventures Limited (KSKEVL), is developing a 3600 MW (6 x 600 MW) domestic coal-based power project at Nariyara village, Janjgir-Champa District of Chhattisgarh. The project has received required approvals and has commissioned three 600 MW units so far. The project cost has been revised to INR27080 crore from the initial appraised cost of INR16190 crore. The project cost including the cost of ancillary infrastructure such as water intake system and railway siding stands at INR28430 crore. KSK Group promoted by Mr. K.A. Sastry and Mr. S. Kishore, is involved in development and operation of power projects. LORDS ORIENTAL: CARE Moves D on INR13cr Loans to Not Cooperating ---------------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Lords Oriental Resorts Developers (Silvassa) Private Limited (LORDSPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 13.16 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated January 10, 2019 placed the ratings of LORDSPL under the 'issuer non-cooperating' category as LORDSPL had failed to provide information for monitoring of the ratings as agreed to in its Rating Agreement. LORDSPL continues to be non-cooperative despite repeated requests for submission of information through phone calls and emails dated July 18, 2019, July 19, 2019, July 22, 2019, and July 23, 2019. In line with the extant SEBI guidelines, CARE has reviewed the ratings on the basis of best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. The ratings on LORDSPL bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above ratings. Detailed description of the key rating drivers At the time of last rating on January 10, 2019, the following were the rating strengths and weaknesses: Key Rating Weaknesses Ongoing delay in debt servicing: LORDSPL has been irregular in servicing its debt obligation owing to weak liquidity position of the company. Liquidity Analysis The liquidity position remained weak marked by below unity current ratio as on March 31, 2015. The Cash and bank balance remained low at INR0.32 crore as on March 31, 2015 while net cash flow from operating activities remained at INR2.62 crore during FY15. LORDSPL was incorporated in 2011 as a Private Limited Company by Mr. Pushpendra Bansal, Mr. Sanjeev Gupta and Mr. Brijesh Chauhan. The company is engaged into hospitality business and it operates one resort, Lords Resorts Silvassa, at Silvassa which has 76 rooms of different categories. The resort has a restaurant which can accommodate around 60 people and a coffee shop which can accommodate around 25 people. The resort also has two banquet halls having capacity of 500 people and 250 people respectively. Other amenities in the resort include swimming pool, spa, health club etc. MINING ASSOCIATES: Ind-Ra Migrates 'BB+' Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Mining Associates Private Limited's (MAPL) 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: -- INR100 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR180 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND BB+ (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 30, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in April 2004, MAPL is engaged in drilling activities for geotechnical investigations for minerals and gases. PATEL PHOSCHEM: CARE Lowers Rating on INR14.75cr Bank Loans to D ---------------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Patel Phoschem Limited (PPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 14.75 CARE D; Issuer Not Cooperating; Facilities revised from CARE B+; Stable; ISSUER NOT COOPERATING based on best available information Detailed Rationale, Key Rating Drivers and Detailed description of the key rating drivers CARE had, vide its press release dated April 1, 2019, placed the rating of PPL under the 'issuer non-cooperating' category as PPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. PPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of publically available information regarding delays in debt servicing. Detailed Description of the Key Rating Drivers At the time of last rating on April 1, 2019, the following were the rating strengths and weaknesses. Key Rating Weakness Decline in TOI and profitability margins: Total Operating Income (TOI) of the company has declined by 33.19% in FY18 over FY17 and stood at INR38.12 crore. Profitability of the company stood moderate with PBILDT margin of 12.46%, however, it has registered net loss of INR0.59 crore owing to higher interst and finance cost. Weak solvency position: The capital structure of the company stood moderate and stagnant with an overall gearing ratio of 1.08 times as on March 31, 2018. However, total debt to GCA increased from 8.61 times as on March 2015 to 10.31 times as on March 2017. Stressed liquidity position: Liquidity position of PPL stood moderate with negative operating cycle period in FY18 mainly on account of increase in creditor's period. Further, current ratio and quick ratio of the company stood below unity level with 0.95 times and 0.73 times respectively as on March 31, 2018. It has cash and bank balance of INR0.19 crore as on March 31, 2018. Key Rating Strengths Experienced management and established marketing network: Mr. Roop Lal Patel, Managing Director, is a graduate by qualification and has more than two decade of work experience in the fertilizer industry through its group concern M/s Patel Enterprises and M/s Rajasthan Enterprises which are engaged in execution of turnkey projects related to fertilizer plants and provides operations and maintenance services. He looks after the overall affairs of the company along with his son, Mr. Jitendra Patel who is an engineer and looks after the engineering division of the company. Further, PPL has appointed 40 distributors in Rajasthan, Haryana, Punjab, Gujarat, Maharashtra and Madhya Pradesh for sale of SSP and GSSP. Udaipur (Rajasthan) based Patel Phoschem Private Limited (PPL) was incorporated in 2006 by Mr. Roop Lal Patel along with his family members. In April, 2014, the company changed its constitution from private limited to public limited. Initially, PPL was engaged in the business of executing turnkey projects related to installation of fertiliser plants which includes construction of plant to supply of machineries. Later, from September, 2012, PPL started production of SSP, GSSP and PA. It has total installed capacity of 100,000 Metric Tonnes Per Annum (MTPA) of SSP, 50,000 MTPA of GSSP and 21,000 MTPA of PA as on March 31, 2017. PNG TOLLWAY: ICRA Withdraws D Rating on INR1,198.91cr Loans ----------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of PNG Tollway Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 1,198.91 [ICRA]D ISSUER NOT COOPERATING; Withdrawn Rationale: The company has submitted the no-dues certificate provided by the bankers following the final settlement amount received from National Highways Authority of India and requested the withdrawal of the rating. The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension. PNG Tollway Private Limited is a SPV promoted jointly by L&T group (L&T Infrastructure Development Projects Ltd. – 61% shareholding and L&T Limited - 13% shareholding) and Ashoka Buildcon Limited (Ashoka Concessions Limited - 26% shareholding) for the six-laning of National Highway 3 from Pimpalgaon to Gonde in Maharashtra. The Project Highway, with a total length of 60.0 kms, was awarded on the Design-Build-Finance-Operate-Transfer (DBFOT) model under the NHDP phase III. L&T Infrastructure Development Projects Ltd. (L&T IDPL) is a subsidiary company of Larsen & Toubro Limited and is the holding company of various infrastructure projects being developed under the public private partnership (PPP) model. ABL undertakes EPC contracts in segments like road, bridges, commercial buildings, power transmission and distribution, etc. and has strong presence in states of Maharashtra and Madhya Pradesh. PUSHPAK BULLIONS: ICRA Keeps D on INR150cr Loans in Non-Cooperating ------------------------------------------------------------------- ICRA said the ratings for the INR150.00 crore bank facilities of Pushpak Bullions Pvt. Ltd. continue to remain in the 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term-Fund 140.00 [ICRA]D ISSUER NOT based Limits COOPERATING; Rating continues to remain in the 'Issuer Not Cooperating' category Long term- 10.00 [ICRA]D ISSUER NOT Unallocated COOPERATING; Rating continues limits to remain in the 'Issuer Not Cooperating' category The rating is based on limited information on the entity's performance since the time it was last rated in October 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Pushpak, 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. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Incorporated on December 17, 1999 and promoted by Mr. Chandrakant Patel, Pushpak trades in gold and silver bullion. The company is also involved in manufacturing and wholesale trading and export of plain gold jewellery, diamond studded jewellery, gold and silver coins, medallions, bullion bars and precious stones. SAVIDHA MEDICAL: ICRA Keeps B on INR10cr Loan in Non-Cooperating ---------------------------------------------------------------- ICRA said the rating of INR10.00 crore bank facilities of Savidha Medical Centre and Hospital continue to remain under the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B(Stable); ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-Term 5.00 [ICRA]B (Stable); ISSUER NOT Term Loan COOPERATING; Rating continues to remain under the 'Issuer Not Cooperating' category Long-Term 5.00 [ICRA]B (Stable); ISSUER NOT Unallocated COOPERATING; Rating continues to remain under 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. Savidha Medical Center and Hospital has been established by Dr. Sasithra and Mr. Dhamod haran as a partnership firm in the year 2015. The firm had proposed establish a multi - speciality hospital under the name Savidha Medical Center and Hospital in Mettupalayam, Coimbatore with specialties including Paediatrics, Orthopaedics, Dermatology, Obstetrics, Gynaecology and General medicine. SHRI VAIJANATH: CARE Keeps D on INR6.41cr Loans in Not Cooperating ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Shri Vaijanath Industries Private Limited continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 2.00 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Long-term Bank Facilities 4.10 CARE D; Issuer Not cooperating; Revised from CARE C; ISSUER NOT COOPERATING on the basis of best available information Short-term Bank Facilities 0.31 CARE D; Issuer Not cooperating; Revised from CARE A4; ISSUER NOT COOPERATING on the basis of best available information Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated September 11, 2018, placed the rating(s) of Shri Vaijanath Industries Private Limited under the 'issuer non-cooperating' category as the company had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The company continues to be non-cooperative despite repeated requests for submission of information through e-mails dated July 12, 2019 and July 15, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed description of the key rating drivers The ratings assigned to the bank facilities of SVIPL takes into account ongoing delays in servicing the interest in term loan facility and over-drawings in cash credit account. Key Rating Weakness Delays in debt servicing The financial risk profile of the company is marked by declining total operating income and stretched liquidity position evidenced by persistent over-drawls in CC account and delays in debt servicing. Modest and small scale of operations with continuous losses. The total operating income of the company decreased from INR12.09 crore in FY16 to INR11.54 crore in FY18. The PAT has decreased and stood at INR -0.36 crores in FY18. Weak financial risk profile marked by decline in operating margins and adverse capital structure. The debt equity ratio and overall gearing ratio of the SVIPL remained highly leveraged as on March 31, 2018, due to erosion of net worth on account of accumulated losses. Elongated Operating cycle: The operating cycle of the company increased from 91 days in FY16 to 110 days in FY18 due to increase in average inventory days, average collection period and average creditors period. Key Rating Strengths Experienced promoters and management team: SVIPL was incorporated in the year 2008 by the Huddar family. The promoters of the company Mr. Parashram, Mr. Girish and Mr. Namdev have 30yrs experience each supported by professionals with adequate experience. Shri Vaijanath Industries Pvt. Ltd was incorporated on July 13, 2008, it is involved in the business of forging. It started its commercial production in 2010. The company has its own manufacturing unit in Kolhapur. Total installed capacity of the unit is 3000MTPA. It has 2 Induction Machines, heat treatment furnace, ISO furnace, 2-Tons hammer and 1-Ton hammer installed in its Kolhapur unit. The products of the company find their application in automobiles and CNC machines. SRI SAI LEELA: ICRA Keeps B+on INR12cr Loans in Non-Cooperating --------------------------------------------------------------- ICRA said the rating on INR12.00 crore bank facilities of Sri Sai Leela Electrical Projects (SSLEP) continues to remain under 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]B+/Stable ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term-Fund 3.50 [ICRA]B+(Stable) ISSUER NOT Based/ CC COOPERATING; continues to remain under Issuer Non- cooperating category Long Term-Non 8.50 [ICRA]B+(Stable) ISSUER NOT Fund Based COOPERATING; continues to remain under Issuer Non- cooperating category The rating is based on limited or no updated information on the entity's performance since the time it was last rated in April 2018. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with PMCPL, 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. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Sri Sai Leela Electrical Projects (SSLEP) was set up in the year 2007 as a partnership firm by Mr. Ravi Gummadi. The firm is a class-I electrical and civil contractor in Telangana, Andhra Pradesh, and Maharashtra & Karnataka executing projects involved in construction of EHT, HT & LT substations, transmission lines, internal & external electrification and underground cabling works for private and government clients. SRS LIMITED: ICRA Maintains 'D' Debt Ratings in Non-Cooperating --------------------------------------------------------------- ICRA said the ratings for the INR835.00-crore bank facilities and INR225.0-crore Fixed Deposit (FD) programme of SRS Limited continue to be under 'Issuer Not Cooperating' category. The ratings are now denoted as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING" and "MD ISSUER NOT COOPERATING" for the bank facilities and FD programme, respectively. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Fund 350.00 [ICRA]D ISSUER NOT COOPERATING; based-Cash Rating continues to be under Credit 'Issuer Not Cooperating' category Long Term Fund 10.00 [ICRA]D ISSUER NOT COOPERATING; based-Term Loan Rating continues to be under 'Issuer Not Cooperating' category Short Term Non 238.00 [ICRA]D ISSUER NOT COOPERATING; Fund Based Rating continues to be under 'Issuer Not Cooperating' category Long term/short 237.00 [ICRA]D/[ICRA]D ISSUER NOT Term Fund Based/ COOPERATING; Rating continues Non Fund Based to be under 'Issuer Not Cooperating' category The rating takes into account continued delays in debt servicing by the entity. As part of its process and in accordance with its rating agreement with SRS Limited, 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. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. SRS Limited was incorporated as SRS Commercial Company Limited in August 2000. It was renamed to SRS Limited in July 2009. The company manufactures as well as undertakes retail/ wholesale sale of jewellery, besides operating a chain of modern format retail stores and a chain of cinemas. SUBHASH KABINI: CARE Keeps D on INR53cr Loans in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Subhash Kabini Power Corporation Limited (SKPCL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank 53.76 CARE D; Issuer Not Cooperating; Facilities On the basis of best available Information Detailed Rationale CARE had, vide its press release dated March 19, 2018, placed the rating of SKPCL under the 'issuer non-cooperating' category as SKPCL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SKCPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and an email dated July 22, 2019. In line with the extant SEBI guidelines, CARE has reviewed the rating on the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. Detailed Description of the Key Rating Drivers At the time of last rating on March 19, 2018, the following were the rating strengths and weaknesses (updated for the information available from Registrar of Companies): Key Rating Weakness Ongoing delays in debt servicing: There are ongoing delays in servicing the principal and interest on term loans availed by the company. Vulnerability of cash flows to availability of water: SKPCL owns and operates a 20 MW dam-based (without pumped-storage) hydro power plant over the River Kabini near Mysore in Karnataka. Given the low storage capacity of the reservoir, power generation is largely concentrated within the monsoon season (June – September). Hence, SKPCL witnesses variability in hydro power generation as the same is dependent on the extent of rainfall received during the year. Substantial exposure to group companies: SKPCL's fund based exposure to the group companies as on Mar. 31, 2018 stood at INR101.42 crore (accounting for 113% of its tangible net worth) as compared to INR189.65 crore as on March 31, 2016 (accounting for 144% of its tangible net worth). It has also extended corporate guarantee of INR157.01 crore as on March 31, 2016 to its group companies. These companies are setting up hydro power projects and yet to generate significant revenue. Ongoing exposure to group companies which are not generating revenue restricts the free cash flow of the company. UNDAVALLI CONSTRUCTIONS: ICRA Withdraws B+ Rating on INR15cr Loan ----------------------------------------------------------------- ICRA has withdrawn the ratings on certain bank facilities of Undavalli Constructions, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Unallocated 15.00 [ICRA]B+ (Stable); withdrawn Rationale The rating is withdrawn in accordance with ICRA's policy on withdrawal and suspension and as desired by the company. Outlook: Not Applicable Key rating drivers Key Rating drivers has not been captured as the rated instruments are being withdrawn. Liquidity position Key Rating drivers has not been captured as the rated instruments are being withdrawn. Undavalli Constructions was started in the year 2010 to undertake real estate development and construction works in Eluru, Andhra Pradesh. It has previously developed a residential project, Sri Valli Palace in Eluru with a total saleable area of 1.21 lakh sft. The firm is currently engaged in providing construction services including supplying of raw materials to real estate customers in the Andhra Pradesh capital region. The promoters have more than two decades of experience in real estate industry. UNITED COLD: CARE Assigns 'D' Rating to INR6.80cr LT Bank Loans --------------------------------------------------------------- CARE Ratings has assigned rating to the bank facilities of United Cold Storage (UCS), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 6.80 CARE D Assigned Detailed Rationale & Key Rating Drivers The rating assigned to the bank facilities of UCS factors in the on-going delays in the servicing of the debt obligations. The rating is further constrained by limited track record of operations, weak financial risk profile, constitution of the entity being a partnership firm, seasonality of business with susceptibility of margins to vagaries of nature and highly competitive and fragmented nature of the industry with high level of government regulation. The rating, however, takes comfort from experienced partners. Going forward, the ability of the firm to pay its debt obligations in timely manner will remain the key rating sensitivity. Detailed description of the key rating drivers Key Rating Weaknesses On-going delay in debt servicing: There are on-going delays in the servicing of the debt obligations. The delays are on account of weak liquidity position as the firm is unable to generate sufficient funds in a timely manner. Limited track record and weak financial risk profile: UCS was established in the year 2006 while the commercial operations started from March, 2016. The scale of operations remained small marked by total operating income of INR1.78 crore in FY19 (Prov.) with losses at the net level. The capital structure stood leveraged marked by overall gearing ratio of INR5.21x as on March 31, 2019(Prov.). Furthermore, the debt coverage indicators of the firm also remained weak characterized by interest coverage ratio of 1.14x in FY19 (Prov.) and total debt to GCA ratio of 75.27x for FY19(Prov.). Weak Liquidity Position: The operating cycle of the firm stood elongated at 92 days in FY19(Prov.). The current ratio and quick ratio stood at 5.25x on March 31, 2019(Prov.). The firm had free cash and bank balance of INR1.38 crore as on March 31, 2019(Prov.). Constitution of the entity being a partnership firm: UCS's constitution as a partnership firm has the inherent risk of possibility of withdrawal of the partners' capital at the time of personal contingency and firm being dissolved upon the death/retirement/insolvency of partners. Moreover, partnership firms have restricted access to external borrowing as credit worthiness of partners would be the key factor affecting credit decision of the lenders. Seasonality of business with susceptibility of margins to vagaries of nature: UCS's operations are seasonal in nature as the firm is in agro-based business which is inherently dependent on the vagaries of nature. Lower agricultural output may have an adverse impact on the available raw material and leads to volatility in prices that may have adverse impact on firm's profitability margins. Highly competitive and fragmented nature of the industry with high level of government regulation: The cold storage industry in a highly fragmented industry wherein there is presence of a large number of players in the unorganized and organized sectors. There are number of small and regional players catering to the same market which has limits the bargaining power of the entity and exerts pressure on its margins. Also, the government intervenes in the market to keep a check on the prices to safeguard the interest of farmers, which in turn limits the bargaining power of the buyers. However, the Government also provides subsidies to the companies to encourage demand in the industry. Key Rating Strengths Experienced partners: Mr. Jaideep Singh and Navdeep Singh, both have two decades of industry experience through their association with UCS and others group concerns namely, Kapoor Group (engaged in similar business operations). The partners have adequate acumen about various aspects of business which is likely to benefit UCS in the long run. VARDHMAN POLYTEX: ICRA Maintains D Ratings in Non-Cooperating ------------------------------------------------------------- ICRA said the rating for the INR514.00 crore bank facilities of Vardhman Polytex Limited (VPL) continues to be under Issuer Not Cooperating category, and is now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Fund- 159.31 [ICRA]D ISSUER NOT based Facilities- COOPERATING; Rating continues Cash Credit to be under 'Issuer Not Cooperating' category Long-term Fund- 232.31 [ICRA]D ISSUER NOT based Facilities- COOPERATING; Rating continues Term Loan to be under 'Issuer Not Cooperating' category Short-term Non- 50.00 [ICRA]D ISSUER NOT fund Based COOPERATING; Rating continues Facilities to be under 'Issuer Not Cooperating' category Long-term Fund- 72.38 [ICRA]D ISSUER NOT based Facilities- COOPERATING; Rating continues Unallocated to be under 'Issuer Not Cooperating' category The entity continues to default on payment of its debt obligations. As part of its process and in accordance with its rating agreement with VPL, 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. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Accordingly, 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. Incorporated in 1981, Vardhman Polytex Limited (VPL) primarily manufactures cotton and cotton-polyester blended spun yarn with an installed capacity of 1.95 lakh spindles across its manufacturing facilities in Ludhiana, Bathinda (both in Punjab) and Nalagarh (Himachal Pradesh). VPL also has a yarn dyeing unit in Ludhiana with an installed capacity of 15.0 tonne per day (tpd), and has a limited presence in garmenting with an installed capacity of manufacturing 7 lakh pieces per annum. WINNING EDGE: ICRA Withdraws B+ Ratings on INR9.75cr Loans ---------------------------------------------------------- ICRA has withdrawn the long-term rating of [ICRA]B+ (Stable); ISSUER NOT COOPERATING assigned to the INR9.75 crore bank facilities of The Winning Edge Agro Products. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based- 6.00 [ICRA]B+ (Stable) ISSUER NOT Cash Credit COOPERATING; Withdrawn Fund based- 3.55 [ICRA]B+ (Stable) ISSUER NOT Term Loan COOPERATING; Withdrawn Unallocated 0.20 [ICRA]B+ (Stable) ISSUER NOT Limits COOPERATING; Withdrawn Rationale The rating assigned to The Winning Edge Agro Products has been withdrawn at its request based on the receipt of the bank's no objection certificate. Established in 2011 by the Vidhani family, as a partnership firm, The Winning Edge Agro Products (WEAP) manufactures flattened rice (poha) from paddy at its manufacturing facility located at Navsari, Gujarat, with a production capacity of 9200 MTPA per annum. WEAP sells its product in a packing of 500gm/1000gm under "Vishalta" brand and in loose form to bulk dealers. The firm currently caters to Maharashtra and Gujarat Region through appointed dealers' network. WEAP also provides warehousing facility to store farm produce like paddy, wheat, pulses, and agro inputs like fertilizers and pesticides. ZEE KNITS: Ind-Ra Lowers LongTerm Issuer Rating to 'D' ------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Zee Knits & Weavers Private Limited's (ZKWPL) Long-Term Issuer Rating to 'IND D (ISSUER NOT COOPERATING)' from 'IND BB (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating actions are: -- INR150 mil. Fund-based working capital limits (Long- term/Short-term) downgraded with IND D (ISSUER NOT COOPERATING) rating; and -- INR4 mil. Term loan (Long-term) downgraded with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information. KEY RATING DRIVERS The downgrade reflects delays in debt servicing by ZKWPL, the details of which are not available. RATING SENSITIVITIES Positive: Timely debt servicing for at least three consecutive months would be positive for the ratings. COMPANY PROFILE ZKWPL manufactures readymade garments at its 12,000 pieces per day facility in Ludhiana, Punjab. It exports garments to the Middle East and South America. The company has its registered office in Delhi. ========= J A P A N ========= JAPAN DISPLAY: Posts JPY83.27-Bil. Net Loss in Q1 Ended June 30 --------------------------------------------------------------- The Japan Times reports that Japan Display Inc. said on August 9 it had developed a negative net worth following a group net loss of JPY83.27 billion (US$786 million) for the April-June quarter due to restructuring costs and falling demand for smartphone displays. The company also posted an operating loss of JPY27.48 billion on sales of JPY90.42 billion for the first quarter, down 12.5 percent from a year earlier, the report discloses. Japan Display's capital adequacy ratio stood at minus 19.3 percent at the end of June. The Japan Times relates that on August 7 the company said it had agreed to an JPY80 billion capital injection from China's Harvest Tech Investment Management Co. and Hong Kong's Oasis Management Co., as well as financial support from major client Apple Inc. But it canceled a joint news conference with its Chinese backers scheduled for August 9 at which they were expected to announce the details of the bailout. The deadline for the capital injection has been extended to August 28 next year instead of December 30 because it might take some time to win the approvals necessary for the bailout plan from authorities in Japan and China, the report says. According to the report, the rescue plan was created after Taiwanese panel maker TPK Holding Co. and Taiwanese private equity fund CGL group withdrew plans for throwing the company a lifeline following months of negotiations. About Japan Display Japan Display Inc. is engaged in the development, design, manufacture and sale of small and medium-size displays and related products. The Mobile Field provides displays for mobile equipment, such as smart phone and tab terminals. The In-Vehicle Consumer and Industry (C&I) and Others Field provides in-vehicle equipment, including automobile dashboard and car navigation systems, consumer equipment, such as digital cameras, video cameras and mobile game machine, medical equipment such as x-ray photo interpretation monitors, as well as industrial machinery. Japan Display was established in 2012 following the merger of the display operations of Sony Corp., Hitachi Ltd. and Toshiba Corp., with support from state-backed INCJ Ltd. The display company incurred a group net loss of JPY109.43 billion in the last fiscal year ended March 2019, the fifth straight year of loss, Japan Today disclosed. ===================== N E W Z E A L A N D ===================== FINANCIAL PLANNING: NZ$8 Million of Clients' Funds Unaccounted For ------------------------------------------------------------------ Mike Houlahan at Otago Daily Times reports that at least NZ$8 million of funds belonging to clients of Dunedin financial adviser Barry Kloogh are unaccounted for, a court judgement said. Two companies of which Kloogh was the sole director, Financial Planning Ltd and Impact Enterprises Ltd, were placed into interim liquidation four weeks ago by Associate Judge Dale Lester, ODT says. The judge's reasons, released to the Otago Daily Times on August 6, reveal that between May 1, 2012, and April 16 this year, NZ$15.7 million of client funds was deposited into accounts held by the defendant's companies, and a further NZ$450,000 of client funds was deposited directly into Kloogh's personal bank account. "Clients' funds were paid . . . on the understanding that they would then be held by FNZ Custodians Ltd and invested through either Consilium NZ Ltd or its predecessor Discovery Portfolio Services Ltd," the judgement said. However, only NZ$7.4 million of those funds was passed on by FPL and Impact, the report says. "While a full analysis of what became of the funds not deposited with Discovery Portfolio Services Ltd or Consilium NZ Ltd has not been completed, it appears that substantial funds have been used for personal expenditure by Mr Kloogh." The Financial Markets Authority, which brought the interim liquidation application, had obtained bank balances and financial statements of the defendant companies and some details of Kloogh's personal financial position, the judgement, as cited by ODT, said. "Each of the defendant companies is at best in a relatively modest financial position based on their statement of financial position. "The financial statements for the defendant companies give no hint as to what has become of the in excess of NZ$8 million of client funds unaccounted for." Consilium is a conduit to a custodial service offered by FNZ. It has previously said it was assisting clients of Mr. Kloogh where it could, according to ODT. An affidavit filed by the authority detailed the case of "Client A", who in February 2014 deposited NZ$101,000 into Impact's account. Of that, only NZ$41,000 was paid to Discovery, when the full amount should have been forwarded, the judge said, ODT relays. "Just over NZ$35,000 went to pay credit card debts or financing relating to Mr Kloogh personally, NZ$9000 was used to repay other investors, and other amounts were used to pay accounts associated with Mr Kloogh or to unrelated entities," the report quotes Judge Lester as saying. For 30 months, Client A made monthly payments totalling just over NZ$54,000. A further NZ$37,000 invested in February 2016 was instead paid to other investors, or went on Mr. Kloogh's credit card or into his business account. When that November Client A asked for NZ$100,000, "an analysis undertaken by the FMA shows that amounts drip-fed to Client A were withdrawn from accounts held for other investors," the judge said, ODT relays. When Client A invested a further NZ$300,000 with Impact in June 2017, "the funds received . . . were used to pay other investors, credit cards related to Mr Kloogh, and other accounts controlled by him," the judge said. "The evidence provided by the FMA in relation to the misapplication of Client A's funds is comprehensive and compelling." According to ODT, the authority referred the matter to the Serious Fraud Office on May 13, and the SFO subsequently executed search warrants at Mr. Kloogh's home and business premises. No charges have been laid against Mr. Kloogh, the report notes. Associate Judge Lester said the threshold for the appointment of interim liquidators "is met, and is met by a wide margin . . . given that there is clear evidence that Mr. Kloogh has inappropriately used investors' funds for personal expenses there is a need to safeguard the interests of investors, ODT adds. "The need to maintain the value of assets managed by the two defendant companies is a compelling, indeed an overwhelming factor." A report from the interim liquidators is due to be delivered next week, ODT notes. SOCIAL MEDIA: Customer Database Illegally Used, Liquidator Warns ---------------------------------------------------------------- NZ Herald reports that Corporate Restructuring Ltd, the liquidator of Social Media Consultants Ltd., the business behind Cameron Slater's failed social media website Whale Oil, has posted a notice on its site saying the customer database has been "illegally used". "It is the liquidator's opinion that the director of Social Media Consultants Ltd, Juana Atkins or someone directed by her has illegally used the customer database for the benefit of another business entity," the notice says, according to the Herald. Juana Atkins is a creditor of the company and Mr. Slater's wife. "This appears on the face of it to have been done for the purpose of misappropriating the company's goodwill and causing the company loss, therefore breaching the duties as a director to preserve the assets of the company for the benefit of creditors. "The Whale Oil blog and everything associated with the blog remains the property of Social Media Consultants Limited, in liquidation," the notice, as cited by the Herald, said. Social Media Consultants was put into voluntary liquidation on March 25, 2019. Victoria Toon of CRL is the company's liquidator. Her first report listed Juana Atkins as the sole shareholder and director of the business, the Herald cites. Creditors included Spark NZ, Vodafone, Voyager Internet, Colin Craig, Brian Henry's Chambers, Accident Compensation Corporation, 2Talk, Frog Rock Trust, Howard Taylor, Graeme Little, Inland Revenue, Legal Street and Juana Atkins, the Herald discloses. ================= S I N G A P O R E ================= NO SIGNBOARD: Shuts Hawker-Themed Fast Food Outlets Due to Losses ----------------------------------------------------------------- Lynette Tan at The Business Times reports that seafood restaurant operator No Signboard is closing its hawker-themed fast food outlets due to "continuing losses". The Hawker QSR outlets are located at Esplanade Mall, Jewel at Changi Airport and Kent Ridge, the report says. According to the report, the group said it expects an impairment loss of approximately SGD500,000, which were incurred for the outlets' renovation, as a result of closing these restaurants for the financial year ending September 30. BT relates that No Signboard said it is currently looking for replacement tenants and will make the necessary announcements as and when there are material updates on the matter. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 4, 2019, the Strait Times said No Signboard Holdings sank deeper in the red with a net loss of SGD573,643 for the first quarter ended Dec 31, 2018, from a restated loss of SGD416,366 a year ago. This comes as the numbers from a year ago were significantly restated after the company adopted the latest accounting rules. Under the new accounting framework, the group reported a restated net loss of SGD416,366 for the fiscal first quarter ended December 2017, a marked difference from the SGD1.4 million net profit it had initially reported under the old accounting rules. No Signboard Holdings Ltd., an investment holding company, manages and operates food and beverage outlets in Singapore. The company operates a chain of seafood restaurants under the No Signboard Seafood brand that serve various seafood cuisine prepared in Chinese and Singapore styles. It owns and operates three restaurants, as well as operates one restaurant under a franchise agreement. The company also produces, promotes, and distributes beer under the Draft Denmark brand; and distributes various third party brands of beer, as well as operates as an OEM beer supplier for third party brands. In addition, it produces and distributes ready meals through a network of vending machines. Further, the company engages in leasing financial intangible assets, such as patents, trademarks, brand names, etc. =============== T H A I L A N D =============== THAI AIRWAYS: 2nd Quarter Loss Widens to THB6.88 Billion -------------------------------------------------------- Suttinee Yuvejwattana at Bloomberg News reports that Thai Airways International's second-quarter loss more than doubled as the global economic slowdown, fierce competition and a strengthened baht took their toll on revenue. The company reported a THB6.88 billion (US$223.7 million) loss in the second quarter, compared with a THB3.1 billion deficit a year earlier, Bloomberg discloses citing a filing to Thai exchange on August 9. Revenue fell 10% to THB42.5 billion, Bloomberg relays. According to Bloomberg, the national carrier has faced mounting pressure on its revenue as it struggles to operate with aging aircraft, declining tourist arrivals and a stronger currency. The baht's 8% appreciation against the dollar in the past year is the strongest in a basket of emerging-market currencies tracked by Bloomberg. "The baht appreciation greatly affected the Thai tourism situation," the company, as cited by Bloomberg, said. Bloomberg adds that newly appointed Transport Minister Saksiam Chidchob said earlier this month he supported Thai Airways' plan to buy new aircraft to improve its services. In the current quarter, the company had total of 103 active aircraft, two fewer than a year earlier after the airline decommissioned a pair of Boeing B737-400s, the report says. Thai Airways's total expenses dropped 0.8% to THB49.6 billion on lower fuel prices, Bloomberg notes. Thai Airways International PCL (BAK:THAI) -- http://www.thaiairways.co.th/-- is the national carrier of Thailand. The company provides air transportation, freight and mail services on domestic and international routes including Asia, Europe, North America, Africa and South West Pacific. The Company is a state enterprise which is controlled by the government and partly owned by the public. ********* 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 2019. 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. 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