/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/191118.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, November 18, 2019, Vol. 22, No. 230 Headlines A U S T R A L I A ABC STUDY: Second Creditors' Meeting Set for Nov. 22 BRADBURY INDUSTRIAL: Second Creditors' Meeting Set for Nov. 26 GULF ENERGY: Second Creditors' Meeting Set for Nov. 25 KHMD PTY: Second Creditors' Meeting Set for Nov. 25 NOAHS ROSEHILL: Second Creditors' Meeting Set for Nov. 21 ZHINO PTY: First Creditors' Meeting Set for Nov. 25 C H I N A BAOSHANG BANK: Unlikely to Pay Interest on Bonds CENTRAL PLAZA: Fitch Assigns BB+ Sub. Perpetual Securities Rating MEINIAN ONEHEALTH: Fitch Lowers LT IDR to BB, Outlook Stable SHANDONG RUYI: S&P Cuts ICR to CCC+ on Heightened Liquidity Risks H O N G K O N G [] HONG KONG: Banks Worry About Risk of Easier Mortgage Rules I N D I A ADAMS MARKETING: CRISIL Maintains D Rating in Not Cooperating ADPRO CERAMICS: CRISIL Maintains 'B' Rating in Not Cooperating AGGARWAL INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating AGGARWAL STEEL: CRISIL Maintains 'B' Rating in Not Cooperating AISWARYA INFRASTRUCTURE: CRISIL Keeps C Rating in Not Cooperating AKS VENTURES: CRISIL Maintains 'B' Rating in Not Cooperating ALLEN REINFORCED: CRISIL Maintains 'B' Rating in Not Cooperating ALP NON WOVEN: CRISIL Maintains 'D' Rating in Not Cooperating AMARSAI SHRINK: Insolvency Resolution Process Case Summary AMBUJA FASHIONS: CRISIL Maintains 'B' Rating in Not Cooperating AMIT CAPACITORS: CRISIL Maintains 'B' Rating in Not Cooperating ANANDA BHARATHI: CRISIL Maintains 'B' Rating in Not Cooperating ANANT AGRO: CRISIL Lowers Rating on INR20cr Loans to B+ ANGELS PHARMA: CRISIL Maintains 'B+' Rating in Not Cooperating ANUJ GLOBAL: CRISIL Maintains 'B' Rating in Not Cooperating AOV EXPORTS: CRISIL Maintains 'B+' Rating in Not Cooperating AP INC: CRISIL Maintains 'B' Rating in Not Cooperating AQUEDUCT PLASTICS: CRISIL Cuts Rating on INR10.47cr Loan to B+ ARIHANT SYNCOTEX: CRISIL Lowers Rating on INR30cr Loan to B+ ARSHAD CASHEW: CRISIL Maintains 'D' Rating in Not Cooperating B K EDUCATIONAL: Insolvency Resolution Process Case Summary CHANDRA PRABHU: Ind-Ra Affirms 'B+' Long Term Issuer Rating CHUO SENKO: Insolvency Resolution Process Case Summary CRYSTAL SEA: Insolvency Resolution Process Case Summary DREAM MERCHANT: Insolvency Resolution Process Case Summary EKDANT BUILDTECH: Insolvency Resolution Process Case Summary FORTIS HEATHCARE: Supreme Court Ruling Halts IHH Takeover Bid GM AGRO ALLIED: Insolvency Resolution Process Case Summary GOLDEN PEACOCK: Insolvency Resolution Process Case Summary GUFIC BIOSCIENCE: Insolvency Resolution Process Case Summary HPMG SHARES: CRISIL Assigns B+ Rating to INR2.64cr Loan I.C.S.A (INDIA): Insolvency Resolution Process Case Summary KAYTEE CORPORATION: Ind-Ra Migrates BB Rating to Non-Cooperating KGS SUGAR AND INFRA: Insolvency Resolution Process Case Summary LAKE VIEW: Insolvency Resolution Process Case Summary NATH MOTORS: Insolvency Resolution Process Case Summary PAMI METALS: Ind-Ra Lowers LT Issuer Rating to 'D', Outlook Stable PRIME INSULATORS: Ind-Ra Moves to Non-Coop., Then Withdraws Ratings PSK TEXTILES: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating RAIPUR TREASURE: Insolvency Resolution Process Case Summary ROYALOAK STEELS: Insolvency Resolution Process Case Summary RVR MARINE PRODUCTS: Insolvency Resolution Process Case Summary SACHET INFRASTRUCUTRE: Insolvency Resolution Process Case Summary SHALIBHADRA COTTRADE: Insolvency Resolution Process Case Summary SHAM ELEKTROMECH: Insolvency Resolution Process Case Summary SONARCH INTERNATIONAL: Insolvency Resolution Process Case Summary SRI VISHNU: Ind-Ra Raises LT Issuer Rating to B+, Outlook Stable SUGANYA CONSTRUCTIONS: Ind-Ra Assigns 'BB' LT Issuer Rating TREND FLOORING: Insolvency Resolution Process Case Summary VODAFONE IDEA: Seeks Government Aid After Posting INR509BB Loss VS LIGNITE POWER: Insolvency Resolution Process Case Summary M A L A Y S I A LONDON BISCUITS: Defaults on MYR22.52MM Payments to RHB Bank N E W Z E A L A N D STANLEY GROUP: Receivers Report Shows Kiwibank is Largest Creditor S I N G A P O R E ACCRELIST LTD: Net Loss Widens to SGD2.1MM in H1 Ended Sept. 30 T H A I L A N D THAI AIRWAYS: Posts THB10.91BB Net Loss for 9 Mos. Ended Sept. 30 V I E T N A M NUTIFOOD NUTRITION: Fitch Assigns B LT IDR, Outlook Stable - - - - - ================= A U S T R A L I A ================= ABC STUDY: Second Creditors' Meeting Set for Nov. 22 ---------------------------------------------------- A second meeting of creditors in the proceedings of ABC Study Group Pty Ltd has been set for Nov. 22, 2019, at 10:45 a.m. at the offices of Australia Business Rescue Pty Ltd, G14, at 1-15 Barr Street, in Balmain, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 21, 2019, at 12:00 p.m. Mali Thaggard of Australia Business Rescue Pty Ltd was appointed as administrator of ABC Study Group on Oct. 18, 2019. BRADBURY INDUSTRIAL: Second Creditors' Meeting Set for Nov. 26 -------------------------------------------------------------- A second meeting of creditors in the proceedings of Bradbury Industrial Services Pty Ltd has been set for Nov. 26, 2019, at 11:00 a.m. at CQ Function Centre, at 113 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 Nov. 25, 2019, at 4:00 p.m. Geoffrey Trent Hancock of PKF was appointed as administrator of Bradbury Industrial on July 9, 2019. GULF ENERGY: Second Creditors' Meeting Set for Nov. 25 ------------------------------------------------------ A second meeting of creditors in the proceedings of Gulf Energy Limited has been set for Nov. 25, 2019, at 3:30 p.m. at the offices of Jones Partners, Level 13, at 189 Kent Street, in Sydney, NSW. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 22, 2019, at 4:00 p.m. Bruce Gleeson and Daniel Robert Soire of Jones Partners were appointed as administrators of Gulf Energy on Oct. 21, 2019. KHMD PTY: Second Creditors' Meeting Set for Nov. 25 --------------------------------------------------- A second meeting of creditors in the proceedings of KHMD Pty Ltd, trading as Meraki For Hair, has been set for Nov. 25, 2019, at 12:30 p.m. at the offices of Hamilton Murphy Advisory, Unit 18, At 28 Belmont Avenue, in Rivervale, Western Australia. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 22, 2019, at 4:00 p.m. Stephen Robert Dixon of Hamilton Murphy Advisory was appointed as administrator of KHMD Pty on Oct. 21, 2019. NOAHS ROSEHILL: Second Creditors' Meeting Set for Nov. 21 --------------------------------------------------------- A second meeting of creditors in the proceedings of Noahs Rosehill Waters Pty Ltd has been set for Nov. 21, 2019, at 10:00 a.m. at the offices of Chartered Accountants Australia and New Zealand, Level 11, at 2 Mill Street, in Perth, WA. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by Nov. 20, 2019, at 4:00 p.m. Clifford Stuart Rocke and Jeremy Joseph Nipps of Cor Cordis were appointed as administrators of Noahs Rosehill on Oct. 17, 2019. ZHINO PTY: First Creditors' Meeting Set for Nov. 25 --------------------------------------------------- A first meeting of the creditors in the proceedings of Zhino Pty Ltd will be held on Nov. 25, 2019, at 10:30 a.m. at the offices of Hall Chadwick Chartered Accountants, Level 4, at 240 Queen Street, in Brisbane, Queensland. Glenn Shannon of Hall Chadwick was appointed as administrator of Zhino Pty on Nov. 13, 2019. ========= C H I N A ========= BAOSHANG BANK: Unlikely to Pay Interest on Bonds ------------------------------------------------ South China Morning Post reports that Baoshang Bank, the first lender seized by Chinese regulators in two decades, could inflict further pain on investors as doubts remain on its ability to pay interest on its bonds, which could in turn lead to higher funding costs for struggling banks, analysts said. The Inner Mongolia-based lender may not pay in full the annual interest on its CNY6.5 billion (US$1 billion) tier two capital bonds due on December 28, the Post relates citing credit rating agency S&P Global Ratings published noted on Nov. 14. Creditors could also take a mild haircut of around 10 per cent of the principal if their wholesale obligations exceed CNY50 million in the bond maturing in 2025, according to the report cited by the Post. Regulators could restructure the subordinated bond as they did with the bank's senior wholesale debt in May, which will increase the credit premiums for similar instruments issued by other banks and widen the credit divergence between strong and struggling banks, the report said, the Post relays. "Investors of the bank's tier-2 capital bonds still face the possibility of less than full payment in December, the next interest due date post the takeover," the Post quotes Nicholas Zhu, senior credit officer at rating agency Moody's Investors Service, as saying. The bonds were issued in December 2015 with a conventional five-year non-call option and a write-down provision, he said. According to the Post, S&P analysts said the decision could be "a bellwether event" for China's reforms in the banking sector, where regulators are trying to let the market forces play a bigger role – by gradually removing the perception that the government will always bail out any repayment failures by banks – and at the same time maintain financial stability. "Baoshang Bank's upcoming interest-payment date will provide insights into the pace of sector-wide banking reforms that have in recent years instilled more market discipline in China," the Post quotes S&P Global Ratings credit analyst Harry Hu as saying. The Post says the one-year seizure of Baoshang Bank has sent shock waves across China's CNY95 trillion bond market. The market is worried about the health of thousands of small banks in the country, even as the China Banking and Insurance Regulatory Commission has stressed that the takeover is an individual case and that it does not intend to do the same to more banks, the Post states. The jittery sentiment is evident in the spate of recent runs on bank across the country, the report says. In late October, police arrested a woman in Henan province for spreading rumour that local lender Yichuan Rural Commercial Bank was going bust, the Post recalls. The rumour triggered "concentrated cash withdrawals" at the bank's branches, police said. A similar incident took place at Yingkou Coastal Bank based in the northern province of Liaoning last week, resulting in the arrest of nine people, the Post reports. About Baoshang Bank Baoshang Bank Co., Ltd. provides various commercial banking products services to individuals and corporate customers in China. As reported in the Troubled Company Reporter-Asia Pacific on May 27, 2019, Caixin Global said China's financial regulators took control of a small private bank as part of authorities' efforts to break up fallen tycoon Xiao Jianhua's business empire and contain financial risks. According to Caixin, the People's Bank of China (PBOC) and China Banking and Insurance Regulatory Commission (CBIRC) announced on May 24 the takeover of Baoshang Bank Co. for a year. The rare takeover came two years after Xiao, the billionaire founder of conglomerate Tomorrow Holding Group, went missing from a luxury Hong Kong hotel. He is reportedly to have been placed under graft investigation by Chinese authorities. The regulators said the takeover reflects the "severe credit risk" the bank poses and is intended to protect the interests of the bank's depositors and other clients. CENTRAL PLAZA: Fitch Assigns BB+ Sub. Perpetual Securities Rating ----------------------------------------------------------------- Fitch Ratings assigned a final rating of 'BB+' to the subordinated guaranteed perpetual securities issued by Central Plaza Development Ltd. The notes are unconditionally and irrevocably guaranteed by International Financial Center Property Ltd., a wholly owned subsidiary of Beijing Capital Land Ltd. (BCL; BB/Stable), which is a 54.5% directly owned listed subsidiary of Beijing Capital Group Company Limited (BCG; BBB/Stable). The assignment of the final rating follows the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on October 31, 2019. The notes are part of Central Plaza Development's medium-term note (MTN) programme. The programme is unconditionally and irrevocably guaranteed by BCL or International Finance Center Property Ltd with the benefit of a keepwell deed and deed of equity interest purchase by BCG or BCL. Central Plaza is also a wholly owned subsidiary of BCL. Fitch accords no equity credit to the subordinated perpetual capital securities and they are rated two notches below BCG's 'BBB' Issuer Default Rating (IDR) to reflect the incremental risk relative to the IDR in accordance with its Non-Financial Corporates Hybrids Treatment and Notching Criteria. BCG has granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure that the issuer and guarantor have sufficient assets and liquidity to meet their respective obligations for the senior notes. The proceeds of the securities will be mainly used to refinance existing indebtedness. KEY RATING DRIVERS Increased Government Uplift: BCG's IDR benefits from a three-notch uplift from its Standalone Credit Profile of 'bb'. A significant part of BCG's assets are infrastructure and water projects. These public projects require significant capex and are important to the municipal government. BCG has demonstrated a solid record in running its infrastructure and water projects. BCG has also undertaken non-commercial development projects on behalf of the government. Fitch assesses BCG's status, ownership and control as 'Strong' because it is wholly owned by the Beijing State-owned Assets Supervision and Administration Commission (Beijing SASAC) and is required to undertake government-directed activities for the benefit of the municipality. Fitch also assesses BCG's support record as 'Strong' because it has received direct tangible state support through equity and land injections. Implications of Default: Fitch regards the financial implications of a default by BCG as 'Moderate', as a default could harm access to capital markets for the government and its government-related entities (GREs). However, BCG's moderate size and market-driven operations may give investors the perception there is some level of financial independence from the government. Fitch has deemed the social-political implications of a default to be 'Weak', as BCG's development business is market-oriented and competitive, while Fitch believes the infrastructure and water projects will continue to operate in an event of BCG's default. High Leverage in Property Segment: BCL's leverage remained high in the past 18 months after active land acquisition and deterioration in cash collection amid a tightened liquidity environment. Fitch continues to assess BCG's property segment on a consolidated basis. Fitch used a conservative valuation for BCG's land not held under BCL to derive segment leverage (net debt/adjusted inventory) of around 50%, up from 38% in 2017. BCG owns 38 million sq m of land in Daxing, Beijing and Tianjin. BCG started selling the first batch of land in the Lightyear City Project in January 2019. Fitch has included the distribution from the development as BCG's sustainable income as the sales will be kicking in and the company will continue to be involved in the primary land development. Expansion in Environment Protection: Subsidiary Beijing Capital Co. Ltd. (BCC) continued to expand in public-private partnership (PPP) projects, which resulted in capex remaining high in 2018 and 1H19. BCC had a total of 15 water projects and 61 sewage projects under construction as of end-2018 (2017: 13 water projects and 49 sewage projects under construction). Fitch expects BCC to have CNY8 billion-10 billion capex a year in 2019-2022, funded by its constantly growing revenue, debts and its share placement plan announced in May 2019. Interest Coverage Improving: The cash income/gross interest coverage ratio is a key measure of the BCG holding company's financial strength. Fitch expect BCG's coverage ratio to improve to around 2.5x in 2019, from 0.7x in 2018, with the sales proceeds at its Lightyear City Project kicking in. Together with the stable dividend income from its core subsidiaries and significant amount of government subsidies for social housing projects expected to be received in 2020, Fitch believes its cash income/interest expense ratio will stay above 2x in 2019-2022. The BCG holding company keeping its net debt at CNY26 billion (2016: CNY28 billion) also helps to lower its interest expense. Infrastructure Investment Underway: BCG's infrastructure business consists mainly of Beijing MTR Corporation Limited and Tianjin Expressway. Beijing MTR operates three subway lines in the Chinese capital. It is building the new Beijing Line 16, which will continue to put pressure on its financial profile in 2019-2021. Fitch expects Beijing MTR's leverage to rise to 5.7x in 2021, from 4.1x in 2018, but will then drop to 4.9x in 2022 when Line 16 is fully operational. Fitch expects its fixed-charge coverage to stay above the healthy level of 5.0x in 2019-2021. Beijing MTR has unutilised committed bank facilities of CNY16 billion that will be sufficient for its capex needs. The FFO adjusted net leverage of Tianjin Expressway edged down to 11.2x in 2018, from 13.5x in 2017. The interest coverage ratio has improved as well, aided by a steady increase in revenue. BCG is looking to dispose Tianjin Expressway at a reasonable price. Structural Subordination Mitigated: Fitch adjusts BCG's aggregate profile with structural subordination, taking into account its core operations have material indebtedness and large minority interests. The presence of significant minority shareholders structurally restricts the group's access to the listed company's cash flow. This is offset by the benefits of diversification, as its major operations are distinct from one another and exhibit different industry cyclicality. Stable cash flow from the water utilities and transportation infrastructure businesses counterbalance the cyclical property development segment. DERIVATION SUMMARY BCG's SCP is assessed at 'bb', which is based on the weighted-average credit profile of BCG's three core business segments: property, infrastructure and environment protection. The SCP encompasses a 'bb' category for the consolidated property segment (including land in Daxing and Tianjin held via BCG's wholly owned subsidiaries, as well as BCL), a low 'bbb' category for the infrastructure segment, and a high 'b' category for the environment-protection segment. BCG's diversified businesses in property and utilities-type public services are comparable with those of the large Hong Kong conglomerates, such as Swire Pacific Limited (A-/Stable) and CK Hutchison Holdings Limited (A-/Stable). However, BCG lacks these peers' strong capital bases, built in mature and stable business environments over the long term. BCG's subsidiaries are generally rated in the 'BB' to 'BBB' range, unlike these peers, whose subsidiaries are rated in the 'A' category. BCG's IDR includes a three-notch uplift based on a bottom-up approach, in accordance with Fitch's Government-Related Entities Rating Criteria. This reflects its 'Strong' status, ownership and control, 'Strong' support record and expectations, 'Weak' socio-political and 'Moderate' financial implications of default. The group's assessment is similar to other GREs that operate in market-oriented and competitive industries, such as Beijing Capital Development Holding (Group) Co., Ltd. (BCDH, BBB-/Positive), which receives a two-notch uplift. However, further uplift on BCDH's IDR is dependent on the effect of the proposed injection of state-owned non-operational assets; it could be higher than the current level. BCG's three-notch uplift reflects its significant asset base outside its commercially operated property-development business, as well as its record in running those projects. BCL's business profile is in the 'BB' category but its financial profile is constrained at 'B' category because of its high leverage. However, the consolidated property segment of BCG has lower leverage as it includes its large land bank allocated by the government at zero cost. Compared with CIFI Holdings (Group) Co. Ltd. (BB/Stable), the consolidated leverage of BCG's property segment is only slightly higher, while the business profile of BCG's property segment is also stronger as the non-BCL projects are more profitable and its land bank is much larger. BCC's funds from operations (FFO) adjusted net leverage of 9.7x at end-2018 and its FFO fixed-charge coverage of 2.2x are broadly comparable with those of peers in the 'B' rating category, such as Gansu Province Electric Power Investment Group Co., Ltd. (BBB-/Stable; SCP: b-) and Yunnan Provincial Energy Investment Group Co., Ltd. (BBB/Stable; SCP: b-). However, BCG's water utility, sewage and waste-management businesses are generally more stable than the peers' power generation, especially as independent power producers are facing tariff pressure and high fuel costs. In addition, BCG's water and sewage services are essential to residents with low competition. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - Assumptions used in the rating case for BCL are used in BCG's rating case - Beijing MTR's revenue to increase by 10% a year in 2019-2022, and its capex will vary between CNY1.4 billion and CNY6.6 billion in 2019-2022 - BCC's revenue to increase by 17% a year in 2019-2022 and capex sustained at around CNY9 billion a year) RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Significant improvement in the credit profiles of BCG's three core subsidiaries - Stronger linkage with the Beijing SASAC Developments That May, Individually or Collectively, Lead to Negative Rating Action - BCG holding company's cash income/interest expense ratio below 2.0x for a sustained period - Deterioration of the credit profiles of BCG's three core subsidiaries - Weaker linkage with the Beijing SASAC LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: BCG had CNY56 billion cash on hand as of 1H19, well-exceeding its short-term debt of CNY37 billion. Fitch expects BCG to have sufficient liquidity to service its interest expense at the holding-company level in light of the CNY67 billion in undrawn committed bank facilities as of end-2018. The dividends it receives continue to be lower than the interest expense at the holding-company level. Sales proceeds from the selling of primary land in Tianjin by BCG's unlisted property arm started to be another cash income source for BCG in 2019. BCG also has bank facilities and lending to subsidiaries that it can recall to meet its liquidity needs. The major use of funds other than for debt servicing is for potential acquisitions. The acquisitions are usually discussed at length with its banks and the Beijing SASAC to ensure funding is in place before the plans go ahead. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of 3 - ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. MEINIAN ONEHEALTH: Fitch Lowers LT IDR to BB, Outlook Stable ------------------------------------------------------------ Fitch Ratings has downgraded China-based preventative health-examination services provider Meinian Onehealth Healthcare Holdings Co., Ltd.'s Long-Term Issuer Default Rating and senior unsecured rating to 'BB' from 'BB+'. The Outlook is Stable. Fitch has also downgraded the rating on Meinian's USD200 million 7.75% senior unsecured notes due 2021 issued by subsidiary Mei Nian Investment Limited to 'BB' from 'BB+'. The downgrade reflects its expectations of elevated leverage, measured by FFO adjusted gross leverage, over the next two years, stemming from high investment spending. Capex in 3Q19 reached CNY2 billion, which implies negative free cash flow (FCF) for full-year 2019 even after accounting for a continuation in revenue growth since 3Q19 and the seasonally high contributions in the fourth quarter. Fitch expects the negative FCF to persist despite a slower pace of capex from previous years, which limits Meinian's ability to deleverage. The completion of an equity placement, which Fitch expects in November 2019, could contribute to deleveraging but the impact will depend on the proportion of the proceeds that will be used for debt repayment. Slowing revenue growth and weaker EBITDA margins in the short term may also limit the pace of deleveraging following a strategy shift earlier this year towards improving customer-service quality. Fitch expects revenue to rise by low teens in 2019, significantly slower than the above-30% increase in the past three years. Growth in 3Q19 picked up from the low-single-digit increase in the first two quarters, but the company is unlikely to resume its earlier fast growth because of slower network expansion. KEY RATING DRIVERS Sustained High Leverage: Meinian's leverage will stay elevated in the next two years as Fitch expects negative FCF to persist amid slower revenue growth, which will weaken its ability to fund continued high investment spending. Fitch estimates FFO gross leverage will climb to around 5.5x by end-2019 from 4.8x at end-2018 and 4.5x at end-2017. The equity placement, once completed, may lower leverage but it would depend on the use of the proceeds between debt repayment and investments. High Capex: Fitch expects Meinian to continue investing to maintain its market position and capture growth opportunities. The company's total capex of CNY2.0 billion in the first three quarters of 2019 was lower than the previous year but exceeded its expectations. Capex for the purchase of equipment and acquisition of medical centres was CNY1.2 billion and CNY0.8 billion, respectively. Capex for the acquisition of medical centres is slowing, but Fitch expects the company to continue spending on buying and upgrading equipment to improve service quality, which is a key focus after the company changed its strategy earlier this year. Lower Utilisation Rates: Fitch expects the strategy change to help Meinian achieve more sustainable growth in the medium term. In the short term, the change has resulted in a decline in utilisation rates at its medical centres. This is a combined effect of Meinian actively controlling the number of customers at its medical centres to improve the service quality and the loss of price-sensitive customers due to a higher average package price. Nevertheless, revenue growth recovered gradually in 3Q19 from 1H19. Weaker Profitability: Fitch expects Meinian's EBITDA generation to be affected by slower revenue growth and weaker EBITDA margins. Fitch estimates the EBITDA margin will decrease in 2019 due to the medical centres' lower utilisation rates, despite the improvement in 3Q19, which Fitch expects will continue into 4Q19, a seasonally important contributor to the full-year results. Its FFO fixed-charge coverage will also decline to 2.0x in 2019 from 2.4x in 2018 based on its estimate. The EBIT margin in the first three quarters of the year fell to 11.1% from 13.2% a year earlier. Customer traffic has a very large impact on profitability and is subject to seasonality as staff costs, rental, depreciation and amortisation are fixed costs regardless of the traffic level. Profitability could improve if the company is able to expand its customer base to raise the utilisation while increasing the average package price. Alibaba as a Strategic Investor: Fitch expects Meinian's access to capital to be strengthened by a share transfer announced in October 2019, which will support the company's growth. Upon the completion of the share transfer, Alibaba (China) Technology Co, a wholly owned subsidiary of Alibaba Group Holding Limited (A+/Stable), and its affiliate will become the second-largest shareholder of Meinian, holding a 10.82% stake. An affiliate of Yunfeng Capital will hold another 5.34%. Alibaba will play a strategic role and cooperate with Meinian in healthcare, insurance and information systems, according to Meinian. The stake will increase further as Alibaba also participated in Meinian's equity placement. Market Leader in China: Fitch thinks Meinian's market leading position and strong portfolio of corporate customers will be maintained in the coming years. Meinian has been the country's largest medical-examination service provider for the past few years and solidified its market-share lead with last year's acquisition of Ciming Health Checkup Management Group Co., Ltd. Fitch estimates Meinian's market share at more than 20% in the private health check-up segment and expects its high brand recognition and comprehensive check-up centre network and service platform to support its leading market position in the medium term. DERIVATION SUMMARY Meinian's clear market leadership in China's private health check-up market and stable customer base generally compare favourably against peers and balance its financial profile, which is relatively weak in the 'BB' range. It has no other specific rated peers in this market, but Fitch benchmarks it against retail companies that also use leased operating premises, although Fitch recognises the private health check-up market in China is more stable and has higher growth visibility. Meinian presents a stronger business profile than China-based 361 Degrees International Limited (BB-/Stable) as Meinian is the leader in its market while 361 Degrees ranks lower in the sportswear market. Although the sportswear market is also likely to grow in China, Fitch thinks the less fragmented health check-up market and its strong base of corporate customers provide Meinian with more stable traffic and growth prospects. Meinian's stronger business profile justifies a rating above 361 Degrees despite a moderately weak financial profile due to rental expenses forming a big share of costs. Meinian's credit profile is more comparable with those of global retail issuers, such as Levi Strauss & Co. (Levi, BB+/Stable) as rental expenses are a large part of costs. Meinian has a smaller operational scale in terms of EBITDA than Levi and a weaker financial profile with higher gross leverage. However, Meinian's leading market position, good growth potential and positive industry dynamics slightly offset its much weaker financial profile. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: - Revenue growth of 13% in 2019, increasing to 17% in 2020 - EBITDA margin of 20%-21% in 2019-2022 - Rental expense-to-revenue ratio of 8%-9% in 2019-2022 - Capex of CNY2.5 billion-CNY2.7 billion in 2019-2022, including initial minority investments in new medical centres and investments for minority-to-majority stake centres RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - FFO adjusted gross leverage below 4.5x on a sustained basis - FCF trending towards neutral Developments That May, Individually or Collectively, Lead to Negative Rating Action - Significant loss of health check-up services market share - FFO adjusted gross leverage above 5.0x on a sustained basis (2018: 4.8x) - FFO fixed-charge coverage below 2.0x on a sustained basis (2018: 2.4x) - EBITDA margin below 18% for a sustained period - Failure to complete A-share private placement LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Meinian's available cash on hand of CNY1.4 billion as of end-September 2019 plus unused bank facilities were sufficient to cover its short-term debt of CNY2.4 billion. The equity placement, once completed, will improve Meinian's liquidity position. SUMMARY OF FINANCIAL ADJUSTMENTS Capex includes acquiring minority stakes in new centres and increasing investments in minority-interest centres to controlling interests. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of 3 - ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Meinian has an ESG relevance score of 4 for Labour Relations & Practices due to certain instances of doctors practising without multi-site licenses in 2018. SHANDONG RUYI: S&P Cuts ICR to CCC+ on Heightened Liquidity Risks ----------------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Shandong Ruyi Technology Group Co. Ltd. (Ruyi) to 'CCC+' from 'B-'. S&P also lowered the long-term issue rating on the senior unsecured notes that Ruyi guarantees to 'CCC' from 'CCC+'. The ratings have been removed from CreditWatch, where they were placed with negative implications on Sept. 19, 2019. S&P lowered the rating because Ruyi faces increasing refinancing risk for its upcoming debt maturities over the next two months and has a complex and unsustainable capital structure. Ruyi should be able to meet its upcoming maturities with the recent backing of Jining City Urban Construction Investment Co. Ltd. (JCCI), a state-owned enterprise. But we see meaningful execution risks, especially given the short time frame. Ruyi does not have sufficient internal funds on hand and needs additional cash proceeds from asset monetization to meet its debt maturities in November and December 2019. The short time frame leaves a very thin margin for any execution slippage. The company's dispute with its creditors on an offshore mezzanine credit facility has added to its liquidity pressure. Ruyi's cash balance dropped over the past three months even though the company received about Chinese renminbi (RMB) 1.0 billion in cash from land disposals during the period. Ruyi's unrestricted cash declined to about RMB3.9 billion as of Sept. 30, 2019, from RMB4.2 billion as of June 30, 2019. Unrestricted cash at the parent also dropped to about RMB1.1 billion, from about RMB2.0 billion. Compared to this, the aggregate amount of the company's bullet debt due in the rest of the year is about RMB2.8 billion. The debt includes RMB275 million of domestic puttable bonds, where bondholders have exercised their put options on Nov. 14, and US$345 million (equivalent to RMB2.5 billion) overseas bonds due on Dec. 19. Ruyi is executing several major asset monetization plans to raise funds to repay debt. These including land disposals, a REIT listing on the Singapore stock exchange, and sales of pre-IPO shares of its newly acquired Eagle Super Global Holding B.V. Such transactions come with uncertainties and execution risks, although Ruyi aims to complete the deals by end-November or mid-December. Any delay in asset monetization or prioritizing cash for purposes other than debt repayment could further jeopardize Ruyi's debt serviceability. JCCI's guarantee on Ruyi's puttable bonds and its equity investment in the company somewhat temper the refinancing risks. In October 2019, JCCI became Ruyi's second-largest shareholder, which helped investor sentiment. JCCI is a state-owned enterprise in Jining city, Shandong province, where Ruyi has its headquarters. Backed by JCCI, Ruyi was able to extend most of its RMB1.9 billion of domestic puttable bonds by one more year to Oct. 23, 2020. In addition, S&P expects Ruyi to receive some cash payment from JCCI over the next three to six months as part of the RMB3.5 billion of total consideration for 26% of Ruyi's shares or through participation in Ruyi's asset monetization plans. Nevertheless, Ruyi's access to credit markets, both onshore and offshore, remains constrained, despite JCCI's involvement. S&P still believes Ruyi will have to rely on its cash on hand and net proceeds from asset disposals to repay the upcoming debt maturities, given the limited time to put in place a concrete refinancing plan. S&P said, "Separately, there is a dispute between Ruyi and its creditors over a US$400 million mezzanine credit facility. We have limited information on this bilateral credit facility. We believe the company is in talks with the creditors and potential institutional investors to refinance the facility before the end of the year. Any escalation of the dispute could trigger immediate acceleration of repayment of the entire US$400 million. We do not believe Ruyi has sufficient cash to repay this credit facility unless it could find new investors." The negative outlook reflects the execution risk surrounding Ruyi's refinancing plans and the company's very limited margin for errors and delays. The involvement of JCCI should facilitate asset sales and any potential refinancing but it does not completely eliminate the risks. ================= H O N G K O N G ================= [] HONG KONG: Banks Worry About Risk of Easier Mortgage Rules ------------------------------------------------------------- Clare Jim and Sumeet Chatterjee at Reuters reports that even as Hong Kong has reduced down-payment requirements to help young professionals and families to buy homes, banks are beefing up mortgage application standards to ensure that a recession does not saddle them with bad loans, bankers and mortgage brokers said. Last month, Hong Kong Chief Executive Carrie Lam, struggling to restore confidence in her administration after five months of civil unrest, approved rules allowing first-time homebuyers to borrow as much as 90% of a HK$8 million ($1 million) home's cost, Reuters recalls. Earlier, such a high ratio was only permitted on properties worth half as much. The move increased sales of used homes, the report says. But as the protests take a heavy toll on the special administrative region's economy, banks fear a deepening recession, unemployment and bankruptcies, which could make it hard for borrowers to pay them back, two bankers said, Reuters relays. Historically, mortgage delinquency is rare in Hong Kong, with a rate of about 0.02%, Reuters notes. HSBC, one of the top mortgage lenders in Hong Kong, recently issued a guideline that buyers cannot have a mortgage payment that exceeds 65% of their monthly income, must hold a full-time job and own no other property, said two industry sources, according to Reuters. Reuters relates that lenders including HSBC, Standard Chartered and Bank of China Hong Kong also plan to increase interest rates for mortgages and reduce cash rebates to borrowers in the months ahead, two bankers said. The cash rebate - essentially a discount - has come down to as low as 0.5% now, compared with an average of 2% earlier this year. Some banks are planning to phase it out completely, they said. "We have to use all the tools . . . to protect our profitability and asset quality in this environment. You will see more measures in the next few months," Reuters quotes a Hong Kong-based banker with a European bank as saying. All of the bankers, industry sources and mortgage brokers declined to be named as they were not allowed to speak to the media, Reuters notes. According to Reuters, HSBC said in a statement that it had continued to accept new mortgage applications "as usual" since the announcement of the new easing initiatives, and applications are considered on a case-by-case basis. Standard Chartered said it would continue its "prudent approach to risk management and returns" and would closely monitor the market situation to review its strategy, adds Reuters. Reuters says some banks in Hong Kong have raised interest rates for new mortgages twice since August by a total of 25 basis points, even as they cut their best lending rates recently for the first time since the global financial crisis. A month after Ms. Lam's announcement, property agents said most buyers of small to medium-sized flats are borrowing more of the value of the home, while their financial power appears to be weaker than previous customers'. "We got more enquiries from clients who were not clear about their repayment capability," Reuters quotes Cookie Wong, a managing director of Ricacorp Mortgage Agency, as saying. "Some of their income only reaches the bottom line of the requirements, unlike before, when those buying the HK$10 million flats were much more cash sufficient." Hong Kong's home prices fell 4.1% from June to September, but are still up 5.9% this year, Reuters discloses. "The government measure is like giving a credit card to the primary school students, who shouldn't be buying homes. When they buy at this expensive level, they'll be trapped once prices fall," said a representative of a property developer, who declined to be named as he was not authorised to speak to the media, Reuters relays. Some analysts, however, said that as long as the banks keep stringent borrowing standards, there will be little systemic risk, and borrowing costs are unlikely to rise sharply in the near term, according to Reuters. "We do not expect the banking sector to materially relax its underwriting standards. We consider Hong Kong's banking industry risk to be the lowest among its peers," rating agency S&P said in a report on Oct. 29, Reuters adds. ========= I N D I A ========= ADAMS MARKETING: CRISIL Maintains D Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Adams Marketing Private Limited (AMPL) continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 2.5 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 21.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 3.5 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 1.0 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with AMPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AMPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. AMPL was incorporated in April 2007. It was formed through the merger of three proprietorship firms (Adams Motors, Adams Electronics, and Adams Paribar). The company, based in Howrah (West Bengal), is an authorised dealer of various brands of consumer durables. ADPRO CERAMICS: CRISIL Maintains 'B' Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Adpro Ceramics India Private Limited (ACIPL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .25 CRISIL A4 (ISSUER NOT COOPERATING) Bill Purchase 2.00 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 2.75 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit 1.20 CRISIL A4 (ISSUER NOT COOPERATING) Term Loan .80 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ACIPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ACIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ACIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ACIPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Established in 2006 by Mr. Manish Jalan and his mother Smt. Sita Devi Jalan, ACIPL manufactures transmission line and substation equipments such as post insulator, disc insulator, pin insulator, and transformer bushing. The manufacturing facility is in Jaipur. AGGARWAL INDUSTRIES: CRISIL Maintains B Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Aggarwal Industries (AI) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with AI for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AI continues to be 'CRISIL B/Stable Issuer not cooperating'. AI, a partnership firm set up in 1977, by Mr. Suresh Jain and Mr. Sudesh Jain, trades in writing and printing paper. AGGARWAL STEEL: CRISIL Maintains 'B' Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Aggarwal Steel Industries (ASI) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 4 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ASI for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ASI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ASI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ASI continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Set up in 2006, ASI is a partnership between Mr. Satish Kumar and Mr. Ved Prakash. The firm trades in materials used in distribution transformer. Also, it manufactures distribution transformers used for power supply and fabrication work. ASI is based in Bhatinda (Punjab). AISWARYA INFRASTRUCTURE: CRISIL Keeps C Rating in Not Cooperating ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Aiswarya Infrastructure and Services (AIS) continues to be 'CRISIL C Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 6 CRISIL C (ISSUER NOT COOPERATING) Proposed Long Term 2 CRISIL C (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with AIS for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AIS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AIS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AIS continues to be 'CRISIL C Issuer not cooperating'. Set up in 2007, AIS leases warehouses and commercial spaces in and around the industrial hub of Kakinada (Andhra Pradesh). Mr. M Venkata Sasidhar, Mr. M Gowtham, and Mr. M Naveen Krishna are partners in the firm. AKS VENTURES: CRISIL Maintains 'B' Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of AKS Ventures Private Limited (AKS) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5.9 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit .75 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Bank 7.10 CRISIL B/Stable (ISSUER NOT Guarantee COOPERATING) Proposed Cash 1.25 CRISIL B/Stable (ISSUER NOT Credit Limit COOPERATING) CRISIL has been consistently following up with AKS for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AKS, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AKS is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AKS continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2006, AKS is engaged in construction of roads, bridges, and certain irrigation projects. The company also constructs extra high voltage (EHV), high- and low-tension power transmission lines and substations. AKS is also engaged in design, engineering, construction, erection, project management, supervision and consultancy services for the power irrigation, survey, soil investigation and mapping and industrial engineering sectors. ALLEN REINFORCED: CRISIL Maintains 'B' Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Allen Reinforced Plastics Private Limited continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 7.7 CRISIL A4 (ISSUER NOT COOPERATING) Cash Credit 6.0 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term 41.3 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with Allen for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Allen, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Allen is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of Allen continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Allen was set up in 1987 by Mr. P V Rao, Mr. K Chandrashekhar, and Mr. N V Rao. The company designs and manufactures weapons and composite products, used in the defence industry. It is based in Hyderabad. ALP NON WOVEN: CRISIL Maintains 'D' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of ALP Non Woven Private Limited (ANWPL) continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee .4 CRISIL D (ISSUER NOT COOPERATING) Cash Credit 8.5 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term .15 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with ANWPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ANWPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ANWPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ANWPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. ANWPL, incorporated in 2012, is promoted by the Modasa (Gujarat)-based Mr. Hareshbhai D Patel and Mr. Mahendrabhai D Patel. The company manufactures technical textile fabric from polypropylene. The plant is located in Modasa and has a total installed capacity of 2400 tonnes per annum. AMARSAI SHRINK: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Amarsai Shrink Pack Private Limited F-35 Behind Hotel Annapurna MIDC Satpur, Nashik MH 422007 India Insolvency Commencement Date: October 10, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 7, 2020 (180 days from commencement) Insolvency professional: Vinodkumar Pukhraj Ambavat Interim Resolution Professional: Vinodkumar Pukhraj Ambavat Room No. 40 9/15 Morarji Velji Bldg 1st Floor, Dr M.B Velkar Street Kalbadevi Road, Mumbai Maharashtra 400002 E-mail: vinod.amabavat@ajallp.com - and - Ambavat Jain & Associates LLP 5B, Ground Floor Onlooker Building 14 Sir P.M Road Fort, Mumbai 400001 India E-mail: irp.amarsai@gmail.com Last date for submission of claims: November 14, 2019 AMBUJA FASHIONS: CRISIL Maintains 'B' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ambuja Fashions Private Limited (AFPL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with AFPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AFPL continues to be 'CRISIL B/Stable Issuer not cooperating'. AFPL, incorporated in 1989 as a proprietorship firm was reconstituted as a private limited company under the Directorship of Ms. Pinky Agarwal and Mr. Mukesh Agarwal. AFPL is a part of the Anjani group. The promoters have 5-10 years of relevant experience. The company trades grey clothes as well as sells bed sheets. The entire process of converting grey cloth into fabric is outsourced to local vendors. The company rents warehouse facility as and when required, because most of its goods are delivered directly to customers. AMIT CAPACITORS: CRISIL Maintains 'B' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Amit Capacitors Limited (ACL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 1.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Cash Credit 10.0 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit 6.0 CRISIL A4 (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ACL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ACL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ACL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ACL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. ACL was incorporated in 1982, promoted by Mr. Ashok Kumar Tibrewala. The company manufactures electric capacitors that are used in the electronics, electrical, and agricultural industries. It sells products under the Concap and Amcap brands. Manufacturing facilities are in Hyderabad and Goa. ANANDA BHARATHI: CRISIL Maintains 'B' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Ananda Bharathi Fertilizers (India) Private Limited (ABFPL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 1 CRISIL B/Stable (ISSUER NOT Overdraft COOPERATING) facility Long Term Loan 9 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ABFPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ABFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ABFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ABFPL continues to be 'CRISIL B/Stable Issuer not cooperating'. ABFPL, incorporated in January, 2011 is setting up a facility for manufacturing customized fertilizers. Based out of Hyderabad (Telangana), ABFPL is promoted by Mr Rajashekar Rao. ANANT AGRO: CRISIL Lowers Rating on INR20cr Loans to B+ ------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Anant Agro Industries (Jaivik Krishi Pariyojana) (AAI) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Proposed Long Term 2 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Warehouse Receipts 3 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with AAI for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AAI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AAI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AAI revised to be 'CRISIL B+/Stable Issuer not cooperating'. AAI, a proprietorship concern, was set up in 2009 by Mr. Ram Swaroop Aggarwal. The firm produces cotton bales by ginning kapas. AAI also has a seed-crushing unit in Bhikangaon (Madhya Pradesh) to extract cotton oil from cotton seeds. ANGELS PHARMA: CRISIL Maintains 'B+' Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Angels Pharma India Private Limited (APIPL) continues to be 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 CRISIL B+/Stable (ISSUER NOT COOPERATING) Long Term Loan 23 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with APIPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of APIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on APIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of APIPL continues to be 'CRISIL B+/Stable Issuer not cooperating'. Established in March, 2016 as a private limited company, Angels Pharma India Pvt Ltd (APIPL) is a setting up an Active Pharmaceutical intermediates (APIs) plant in Visakhapatnam, Andhra Pradesh. The company is promoted and managed by Mr. K Srinivasa Rao. ANUJ GLOBAL: CRISIL Maintains 'B' Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Anuj Global Corporation (ACL) continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT COOPERATING) Letter of Credit 4.0 CRISIL A4 (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ACL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ACL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ACL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ACL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'. AGC is a Rajasthan based proprietorship firm, was set in 2001 by Mr. Kamlesh Garg. The firm is engaged in the trading of MS Scrap and Thermo-Mechanically- Treated steel (TMT) majorly in Rajasthan and Gujarat. AOV EXPORTS: CRISIL Maintains 'B+' Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of AOV Exports Private Limited (AOV) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 1.25 CRISIL A4 (ISSUER NOT COOPERATING) Bill Discounting 3.00 CRISIL A4 (ISSUER NOT under Letter of COOPERATING) Credit Foreign Currency 3.34 CRISIL B+/Stable (ISSUER NOT Term Loan COOPERATING) Post Shipment 25 CRISIL A4 (ISSUER NOT Credit COOPERATING) Pre Shipment 55 CRISIL A4 (ISSUER NOT Credit COOPERATING) Proposed Long Term 5.36 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING) Term Loan 7.05 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with AOV for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of AOV, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AOV is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of AOV continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Incorporated in 2001, AEPL is based in Noida (Uttar Pradesh) and is the flagship entity of the AOV group. The company processes and exports frozen boneless buffalo meat. The key promoter, Mr. O P Arora, has around 18 years of experience in the meat products industry. AEPL has one manufacturing facility in Unnao in (Uttar Pradesh). AP INC: CRISIL Maintains 'B' Rating in Not Cooperating ------------------------------------------------------ CRISIL said the ratings on bank facilities of AP Inc Lic (APIL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 26 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with APIL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of APIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on APIL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of APIL continues to be 'CRISIL B/Stable Issuer not cooperating'. APIL was established as a partnership firm by Mr. Ashok Saxena and Met Brass Plasssim India Limited (a unit of the MMG group) in September 2006. The firm operates a 4 star hotel under the name 'Fortune Landmark' in Ahmedabad. AQUEDUCT PLASTICS: CRISIL Cuts Rating on INR10.47cr Loan to B+ -------------------------------------------------------------- CRISIL has revised the ratings on bank facilities of Aqueduct Plastics Private Limited (APPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 12 CRISIL A4 (ISSUER NOT COOPERATING; Revised from 'CRISIL A4+ ISSUER NOT COOPERATING') Cash Credit 0.81 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Proposed Long Term 10.47 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with APPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of APPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on APPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of APPL revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'. AIPL and APPL, incorporated in 2009 and 2004, respectively, are promoted by Mr. Anjan Kumar Mazumdar of Kolkata. The group executes civil construction work for the Public Health Engineering Department of West Bengal; the work primarily involves digging; erection of tube wells, pump houses, water filters, and overhead reservoirs, and laying pipelines. The Anjan group also has a poly vinyl chloride (PVC)-pipe manufacturing facility. ARIHANT SYNCOTEX: CRISIL Lowers Rating on INR30cr Loan to B+ ------------------------------------------------------------ CRISIL has revised the ratings on bank facilities of Arihant Syncotex Mills Private Limited (ASMPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL has been consistently following up with ASMPL for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ASMPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ASMPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ASMPL revised to be 'CRISIL B+/Stable Issuer not cooperating'. Incorporated in 2008 at Ichalkaranji, Maharashtra, and promoted by Mr. Arunkumar M Lalwani, Mr. Makankchand V Lalwani, and Mr. Vivekkumar M Lalwani, ASMPL manufactures and trades in grey shirting fabrics. ARSHAD CASHEW: CRISIL Maintains 'D' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Arshad Cashew Industry (ACI) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.95 CRISIL D (ISSUER NOT COOPERATING) Proposed Long Term 5.55 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with ACI for obtaining information through letters and emails dated April 23, 2019 and October 11, 2019 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of ACI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ACI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' category or lower'. Based on the last available information, the ratings on bank facilities of ACI continues to be 'CRISIL D Issuer not cooperating'. ACI is a partnership firm of Mr Ruknuddin Mohammad Ibrahim and his wife Ms Nadima Misbah. It was started as a proprietorship concern in December 2011 and was reconstituted as a partnership firm in October 2015. The firm processes and sells cashew kernels. B K EDUCATIONAL: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: B K Educational Services Private Limited Shop No. 123, First Floor Vardhman Market C.S.C.Ram Vihar Delhi East Delhi 110092 Insolvency Commencement Date: October 10, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 7, 2020 (180 days from commencement) Insolvency professional: Debashis Nanda Interim Resolution Professional: Debashis Nanda CS-14, C-Floor Ansal Plaza Vaishali Ghaziabad Uttar Pradesh 201010 E-mail: dnanda.cma@gmail.com ip.bkeducation@gmail.com Last date for submission of claims: October 24, 2019 CHANDRA PRABHU: Ind-Ra Affirms 'B+' Long Term Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Chandra Prabhu International Limited's (CPIL) Long-Term Issuer Rating at 'IND B+ (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 the rating. The rating will now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR10 mil. Fund-based working capital limits affirmed with IND B+ (ISSUER NOT COOPERATING) / IND A4 (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based working capital limits affirmed with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best-available information. KEY RATING DRIVERS The affirmation reflects CPIL's continued modest scale of operations, as reflected by revenue of INR904.25 million in FY19 (FY18: INR595.28 million). Revenue grew on the back of an increase in the share of agro products in total sales. The ratings also factor in the company's moderate credit metrics. Gross interest coverage (operating EBITDA/gross interest expense) improved to 6.00x in FY19 (FY18: negative 3.98x) and net leverage (total adjusted net debt/operating EBITDAR) to 1.97x (negative 3.32x). The metrics improved due to a rise in absolute EBITDA, as the company turned EBITDA positive at INR52.52 million in FY19 (FY18: negative INR43.53 million) due to deterioration in raw material, personnel, and other expense. Liquidity Indicator – Poor: The company had liquid cash and cash equivalents of INR0.80 million at FYE19 (FYE18: INR0.96 million) against the total outstanding debt of INR104.09million (INR145.57 million). Cash flow from operations improved to INR32.20 million (FY18: Negative INR47.22 million) owing to favorable changes in working capital. The ratings, however, are supported by CPIL's moderate margins, which stood at 5.81% in FY19. The ratings are also supported by the promoter's experience of over two decades in the trading business. The ratings have been migrated to the non-cooperating category as the company did not provide Ind-Ra with revised projections data, latest banker details, updated management certificate and working capital utilization in a timely manner. RATING SENSITIVITIES Negative: A decline in the EBITDA margins leading to deterioration in the interest coverage ratio below 2.5x on a sustained basis could lead to negative rating action. Positive: Significant revenue growth along with improved credit metrics could lead to positive rating action. COMPANY PROFILE Incorporated in 1984, CPIL is engaged in the trading of coal and synthetic rubber. It's head office is in New Delhi, with branch offices in Chandasi in Mughal Sarai (Uttar Pradesh), Guwahati (Assam), Bhatinda (Punjab) and Gurugram (Haryana). CHUO SENKO: Insolvency Resolution Process Case Summary ------------------------------------------------------ Debtor: Chuo Senko Advertising India Private Limited Eco House 401/402/403 Vishweshwar Nagar Off Aarey Road Goregaon East Mumbai City MH 400063 Insolvency Commencement Date: September 24, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: March 23, 2020 Insolvency professional: Deepak Kumar Agarwal Interim Resolution Professional: Deepak Kumar Agarwal Flat No. 2, Plot No. B-4 Paryatan Vihar, Vasundhra Enclave National Capital Territory of Delhi 110096 E-mail: dkagarwal.ip@gmail.com ip.chuosenko@gmail.com Last date for submission of claims: October 24, 2019 CRYSTAL SEA: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: M/s Crystal Sea Foods Private Limited S.No. 233/3B, 234/2 261/IB, 261/3B, 261/3A Nayanapalli, Near Potti Subbaiah Palem, Challareddypalem Panchayat Vetapalem Mandal, Prakasam District Andhra Pradesh 523187 Insolvency Commencement Date: October 29, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: April 20, 2020 Insolvency professional: Gaddam Sritha Shireen Interim Resolution Professional: Gaddam Sritha Shireen Gaddam Satyanarayana and Co. D No. 23-38-1, 1a Sivaraman Street Satyanarayanapuram Vijayawada, Krishna District Andhra Pradesh 520011 E-mail: gsshrieen@yahoo.co.in - and - 301, 3rd Floor, Bhavya's Fantastika D.No. 8-2-684/A, Road No. 12 Banjara Hills, Hyderabad 500034 Last date for submission of claims: November 6, 2019 DREAM MERCHANT: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Dream Merchant Content Pvt Ltd Registered office: Shop no. 187, 1st Floor Citi Mall, New Link Road Andheri West, Mumbai 400053 Insolvency Commencement Date: October 24, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 21, 2020 Insolvency professional: Mukesh Verma Interim Resolution Professional: Mukesh Verma A-504, Manish Garden CHS Manish Nagar, JP Road Andheri West, Mumbai 400058 E-mail: ip.mukheshverma@gmail.com - and - Nucleus House, Saki Vihar Road Andheri East, Mumbai 400072 E-mail: dmcpl.ip.mv@gmail.com Last date for submission of claims: November 13, 2019 EKDANT BUILDTECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Ekdant Buildtech Private Limited 2B-1/46, Lane No. 3 New Ashok Nagar Delhi 96 Insolvency Commencement Date: November 4, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: May 5, 2020 (180 days from commencement) Insolvency professional: Satish Joshi Interim Resolution Professional: Satish Joshi F-207, Aditya Trade Tower Plot No. 4 Local Shopping Complex Pocket O & P Dilshad Garden Delhi 110095 E-mail: recourse2018@gmail.com Classes of creditors: Allotees/Home Buyers Insolvency Professionals Representative of Creditors in a class: Radhey Shyam Yadav Flat No. 2 Aakriti Aptts 62, IP Extn Delhi 110092 Rajesh Gupta F-43 Dilshad Colony Delhi 110095 R.S. Kathuria A-215/55 & 67 Chawla Complex Vikas Marg Shakarpur Delhi 92 Last date for submission of claims: November 21, 2019 FORTIS HEATHCARE: Supreme Court Ruling Halts IHH Takeover Bid ------------------------------------------------------------- Ari Altstedter and Upmanyu Trivedi at Livemint.com reports that the Supreme Court has refused to lift the block on completion of the takeover of embattled hospital chain Fortis Healthcare Ltd. by Malaysian operator IHH Healthcare Bhd, the latest twist in one of the country's most contentious and long drawn out corporate battles. The court held Fortis' founders -- Malvinder Singh and Shivinder Singh -- guilty of contempt of court and said it could start similar proceedings against the company, Livemint.com discloses citing a judgment on Nov. 15. This effectively halts IHH's open offer to Fortis shareholders that would have brought its holdings in India's second largest hospital company above 50%. IHH is already Fortis' largest shareholder with a 31% stake. Fortis shares plunged as much as 17.4%, the biggest intra-day drop since February 2018, after the verdict was read out, the report notes. According to Livemint.com, the block comes just as IHH's efforts to turn around Fortis' fortunes through cost-cutting was starting to show results. It will hobble the company's attempt to move past a scandal in which it was allegedly defrauded of millions of dollars by its founders, the Singh brothers, the report states. IHH's attempt to become Fortis' controlling shareholder was halted last year, when Japanese drugmaker Daiichi Sankyo Co. contested the deal as part of its efforts to recover $500 million from the Singh brothers, Livemint.com notes. Livemint.com relates that Daiichi Sankyo said that it had been promised some Fortis shares by the Singhs in a decade-old fraud claim, before the shares were seized by the brothers' creditors. Livemint.com says the takeover fight for Fortis has seen as many as four separate bids, two scrapped deals, and the replacement of most of the company's board. Shareholders finally approved Malaysian hospital operator IHH's takeover offer in August 2018, and the company has since embarked on a thorough revamp, Livemint.com states. New Chief Executive Officer Ashutosh Raghuvanshi's cost cutting campaign has already begun to show in the company's results. Daiichi is also pursuing the Singh brothers directly for the money it says it is owed in another court case, Livemint.com adds. Fortis Hospitals Limited provides health care services. The Hospital offers cardiology, andrology, vascular surgery, dentistry, dermatology, diabetes, metabolic disorders, geriatrics, haematology, liver transplant, neurology, oncology, radiology, urology, and rehabilitation services. Fortis Hospitals serves patients in India. GM AGRO ALLIED: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: GM Agro Allied Private Limited Vill: Muidhara PO: Uchalan PS: Khandaghosh DIST: Burdwan Khandahosh WB 713427 IN Insolvency Commencement Date: November 8, 2019 Court: National Company Law Tribunal, Kolkata Bench Estimated date of closure of insolvency resolution process: May 6, 2020 Insolvency professional: Ajay Kumar Agarwal Interim Resolution Professional: Ajay Kumar Agarwal 9 Mangoe Lane 2nd Floor, Room No. 12 Kolkata, West Bengal 700001 E-mail: cs.aaa.2014@gmail.com irp.gmagro@gmail.com Last date for submission of claims: November 22, 2019 GOLDEN PEACOCK: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: M/s. Golden Peacock Residence Private Limited Registered office: Unit No. 502, Building D Mall Netaji Subhash Place Pitampura New Delhi 110034 Insolvency Commencement Date: November 6, 2019 Court: National Company Law Tribunal, Delhi Bench Estimated date of closure of insolvency resolution process: May 9, 2020 Insolvency professional: Mr. Jitesh Gupta Interim Resolution Professional: Mr. Jitesh Gupta 257, Vardhman City Center Near Shakti Nagar Under Bridge Gulabi Bagh, Delhi 110052 E-mail: jitesh@jkgupta.com cirp.goldenpeacock@gmail.com - and - Insolvency and Bankruptcy Board of India (IBBI) 7th Floor, Mayur Bhawan Shankar Market, Connaught Circus New Delhi 110001 Classes of creditors: Allotee under the Real Estate Project (Financial Creditor in class) of the Corporate Debtor Insolvency Professionals Representative of Creditors in a class: Mr. Parveen Kumar Garg 105-B/2, Pal Mohan Plaza D.B. Gupta Road, Karol Bagh New Delhi 110005 E-mail: pkgcosec@rediffmail.com Mr. Gyaneshwar Sahai Second Floor, O S-2 The Next Door, Sector-76 Faridabad, Haryana 121004 E-mail: gyaneshwar.sahai@gmail.com Ms. Mukul Kumar D-3/1304, The Legend Sushant Lok Phase 3 Sector 57, Gurgaon Haryana 122011 E-mail: adv.mksingh@gmail.com Last date for submission of claims: November 25, 2019 GUFIC BIOSCIENCE: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Gufic Bioscience Limited Registered address: Shop #37, First Floor Kamala Bhavan II Swami Nityanand Road Andheri East Mumbai 400069 Maharashtra Insolvency Commencement Date: November 1, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 29, 2020 (180 days from commencement) Insolvency professional: Mr. Indrajit Mukherjee Interim Resolution Professional: Mr. Indrajit Mukherjee 705 A Wing Deep CHS D N Nagar Andheri (W), Mumbai Maharashtra PIN 400053 E-mail: indrajitmukherjee15@yahoo.com - and - Sumedha Management Solutions Private Limited C-703, Marathon Innova Off Ganpatrao Kadam Marg Opp. Peninsula Corporate Park Lower Parel (West) Mumbai 400013 E-mail: indrajit_mukherjee@ sumedhamanagement.com Last date for submission of claims: November 15, 2019 HPMG SHARES: CRISIL Assigns B+ Rating to INR2.64cr Loan ------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of HPMG Shares and Securities Private Limited (HSSPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term Bank Loan Facility 2.36 CRISIL B+/Stable (Assigned) Bank Guarantee 5.00 CRISIL A4 (Assigned) Overdraft 2.64 CRISIL B+/Stable (Assigned) The rating factors in company's modest market position. The company primarily carries out broking business in Mumbai, Calcutta, Delhi and Gujarat. The rating also factors in exposure to volatilities inherent in capital market related business. These weaknesses are partially offset by the company's adequate capital position and extensive experience of the promoter in capital market business. The promoters have been managing the company for more than a decade and have been associated in the capital market business since its inception. Analytical Approach CRISIL has evaluated the standalone financial and business risk profile of HSSPL. Key Rating Drivers & Detailed Description Weaknesses *Modest market position The company's market position is modest marked by a small overall market share of around 0.03% in fiscal 2019. The company is involved in retail broking business and has around 2500 active retail clients. Further the company has 55 registered franchise and operates out of single office in Mumbai. Over the medium term, the company is expected to operate as a small scaled broking entity. *Exposure to volatilities inherent in capital market-related business Operations are concentrated primarily in the retail broking market space through making available the platform for clients. Trading volumes and earnings are heavily dependent on level of activity in capital markets, which are inherently volatile, driven by economic and political factors as well as investor sentiments. CRISIL believes HPMG business will continue to be driven by the state of capital markets, given its focus on its core business of retail broking. Therefore, its revenue dependence on the capital market will continue over the medium term. Strength *Adequate capitalisation Adequate capitalization with networth of INR4.95 crores and a gearing of 0.3 times as on March 31, 2019. The gearing continues to remain low because the borrowing requirement in the broking business is minimal. The company's networth coverage for its debtor outstanding for more than 6 months is around 23 times. *Extensive experience of promoter in capital market business Promoter of the company namely, Mr Hasit Pandya and Mr Mehul Gandhi are acting as promoter cum directors in the company since the date of its incorporation , the directors of the company are engaged in the capital market since year 1995, having potential experience of more than 24 years in securities market. Directors do have the absolute knowledge of broking business in BSE, NSE, and Depository participant with Central Depository Services India Limited (CDSL). Liquidity: Stretched The company has stretched liquidity marked by marginal cash and cash equivalent of INR5.39 crore as on March 31, 2019. As the company engaged in the broking business where overall fund based requirement are low hence the company's bank utilisation was low at 60 to 65% (of sanction limit of INR5 crore) over 12 months as on March 31, 2019. Outlook: Stable CRISIL believes that HSSPL will remain a small broking firm over the medium term. The outlook may be revised to 'Positive' if market position, and capitalisation improves significantly. The outlook may be revised to 'Negative' if profitability and capitalisation weakens considerably. Rating Sensitivity Factor Upward factors * Significant improvement in earnings profile with company reporting of return on networth in the range of 5-6% over the medium term. * Significant improvement in capital position Downward factors * Impact of the low accruals on the capital position * Decline in the networth coverage to debtors outstanding for more than 6 months below 10 times. HSSPL, promoted by Mr. Hasit Pandya and Mr. Mehul Gandhi, was incorporated in December 2007. The promoters have been associated with the broking business for more than two decades and have been engaged in the business since its inception. The company is a member broker with BSE, NSE and CDSL. Apart from broking activities, the company is a registered mutual fund distributor and also falls under SEBI registered category I merchant banker which is headed by Mr Amol Dhariya. I.C.S.A (INDIA): Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: M/s I.C.S.A (India) Limited Registered office: Plot No. 1091 Khanamet, Madhapur Serilingampally Mandal Hyderabad, Rangareddy T.G. 500081 IN Insolvency Commencement Date: October 21, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: April 18, 2020 Insolvency professional: Gonugunta Murali Interim Resolution Professional: Gonugunta Murali H.No. 16-11-19/4 G-1, Sri LaxmiNilayam Saleem Nagar Colony Malakpet, Hyderabad Telangana 500036 E-mail: gmurali34@gmail.com icsaindip@gmail.com Last date for submission of claims: November 13, 2019 KAYTEE CORPORATION: Ind-Ra Migrates BB Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Kaytee Corporation Private Limited's (KCPL) 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: -- INR242 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating; -- INR35 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR17.3 mil. Term loan due on March 2022 migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 5, 2018. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE KCPL was established in 1944 as a trading concern with interests in cotton and yarns. It started manufacturing garments in 1974. It was registered as a private limited company in June 1994. At present, it is dealing with yarn, fabrics (trading) and garments (manufacturing). KGS SUGAR AND INFRA: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: KGS Sugar And Infra Corporation Ltd Gat. No. 147/4, 148/1/2/A. 148/1/B Pimpalgaon Nipani, Niphad Nashik Nashik Insolvency Commencement Date: October 10, 2019 Court: National Company Law Tribunal, Bengaluru Bench Estimated date of closure of insolvency resolution process: May 2, 2020 Insolvency professional: Mr. Balady Shekar Shetty Interim Resolution Professional: Mr. Balady Shekar Shetty E-98, 7A Cross Manyata Residency Nagavara, Bengaluru 560045 E-mail: bss.balady@gmail.com ip.kgssugar@gmail.com Last date for submission of claims: November 18, 2019 LAKE VIEW: Insolvency Resolution Process Case Summary ----------------------------------------------------- Debtor: Lake View Ayurvedic Resort and Research Centre Private Limited Door No.T.P.V/79 Ottakal P.O. Thenmala Kollam Kl 691308 - and - Jeeva Bhavan, Kalayanadu Plachey P.O Punalur Kollam, Kerala 691308 Insolvency Commencement Date: November 6, 2019 Court: National Company Law Tribunal, Trivandrum Bench Estimated date of closure of insolvency resolution process: May 4, 2020 Insolvency professional: Aravindakshan Nair R Interim Resolution Professional: Aravindakshan Nair R Ashadha (Kuttara) Cheruthana P.O. Karthikappally Taluk Allepey Dist Pin 690517 E-mail: kuttara@yahoo.co.in - and - Saras, TC 26/204, TRA 119 Thekkummoodu, Kunnukuzhy Vanchiyoor P.O., Trivandrum Kerala Pin 695035 Last date for submission of claims: November 22, 2019 NATH MOTORS: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Nath Motors Private Limited Registered office: 1187/7 Nai Walla Karol Bagh New Delhi 110005 Insolvency Commencement Date: October 16, 2019 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: April 13, 2020 (180 days from commencement) Insolvency professional: Mr. Anil Goel Interim Resolution Professional: Mr. Anil Goel AAA Insolvency Professionals LLP E-10A, Kailash Colony Greater Kailash-1 New Delhi 110048 E-mail: anilgoel@aaainsolvency.com nath.motors@aaainsolvency Last date for submission of claims: November 21, 2019 PAMI METALS: Ind-Ra Lowers LT Issuer Rating to 'D', Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has downgraded Pami Metals Pvt. Ltd.'s Long-Term Issuer Rating to 'IND D' from 'IND BBB-'. The Outlook was Stable. The instrument-wise rating actions are: -- INR340 mil. Fund-based limit (Long-term/Short-term) downgraded with IND D rating; -- INR23 mil. Term loan (Long-term) due on January 2022 downgraded with IND D rating; and -- INR10 mil. Non-fund-based limit (Short-term) downgraded with IND D rating. KEY RATING DRIVERS The downgrade reflects Pami Metals' irregularities in the term loan repayments during the 12 months ended October 2019, due to stretched liquidity position. RATING SENSITIVITIES Positive: A positive rating action may result from timely debt servicing for three consecutive months. COMPANY PROFILE Incorporated in 1989, Kolkata-based Pami Metals is managed by Mr. Gopi Kishan Damani and Mr. Rajesh Kumar Damani. It manufactures copper components, copper extrusions and fabricated sheet metals for companies in the power and infrastructure sectors. It also undertakes to assemble of high-tension panels. It has a manufacturing unit and an assembly unit in Kolkata (West Bengal) and Vadodara (Gujarat), respectively. PRIME INSULATORS: Ind-Ra Moves to Non-Coop., Then Withdraws Ratings ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Prime Insulators Private Limited's (PIPL) Long-Term Issuer Rating to the non-cooperating category and simultaneously withdrawn it. The instrument-wise rating actions are: -- The 'IND BB-' rating on the INR40 mil. Term loan# due on August 2025 migrated in the non-cooperating category and withdrawn; -- The 'IND BB-' rating on the INR40 mil. Fund-based facilities* migrated in the non-cooperating category and withdrawn; -- The 'IND A4+' rating on the INR50 mil. Non-fund-based facilities** migrated in the non-cooperating category and withdrawn; -- The 'Provisional IND BB-' rating on the INR10 mil. Proposed fund-based facilities*** migrated in the non-cooperating category and withdrawn; and -- The 'Provisional IND A4+' rating on the INR10 mil. Proposed non-fund based facilities**** migrated in the non-cooperating category and withdrawn. #Migrated to 'IND BB- (ISSUER NOT COOPERATING)' before being withdrawn *Migrated to 'IND BB- (ISSUER NOT COOPERATING)' / 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn **Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn ***Migrated to 'Provisional IND BB- (ISSUER NOT COOPERATING)' / 'Provisional IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn ****Migrated to 'Provisional IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS PIPL did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Ind-Ra is no longer required to maintain the ratings, as it has received a no-objection certificate from the rated facilities' lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017, for credit rating agencies. COMPANY PROFILE Incorporated in May 2006, PIPL manufactures electro porcelain and polymer insulators for high-extension wires at its facility in Dalpur, Taluka, Prantij, District, Sabarkantha, Gujarat. The facility has a porcelain insulator manufacturing capacity of 7,000 tons per annum and a polymer insulator production capacity of 3.888 million per annum. PSK TEXTILES: Ind-Ra Migrates BB+ Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated PSK Textiles India Private Limited's (PSK) 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: -- INR50 mil. Term loan due on May 2024 migrated to non- cooperating category with IND BB+ (ISSUER NOT COOPERATING) rating; and -- INR50 mil. Fund-based facilities 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 November 20, 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 2005 by KS Shekar, Namakkal (Tamil Nadu)-based PSK primarily weaves fabrics on a job work basis. RAIPUR TREASURE: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Raipur Treasure Island Private Limited Registered office: Shop No. 118 1st Floor V Mall Thakur Complex Kandivali East Mumbai 101 Other address: Treasure Island 6th Floor, 11 Tukoganj Main Road Indore 452001 Insolvency Commencement Date: October 22, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: May 6, 2020 (180 days from commencement) Insolvency professional: Rajesh Jhunjhunwala Interim Resolution Professional: Rajesh Jhunjhunwala A51, Aashit Chs Azad Road H B Gawde Marg Stanburg Estate Juhu Koliwada Mumbai 400049 E-mail: jhunjhunwala.rajesh@gmail.com cirp.rtipltd@gmail.com Classes of creditors: Allottees and/or other, if any Insolvency Professionals Representative of Creditors in a class: Mr. Gajesh Labhchand Jain Mr. Ravi Bagri Mr. Sachin Rajendra Singhvi Last date for submission of claims: November 22, 2019 ROYALOAK STEELS: Insolvency Resolution Process Case Summary ----------------------------------------------------------- Debtor: Royaloak Steels Private Limited 406 B, South East United Avenue Apartments Ameerpet Hyderabad Telangana 500038 Insolvency Commencement Date: October 15, 2019 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: April 14, 2020 Insolvency professional: Rajkumar Mahto Interim Resolution Professional: Rajkumar Mahto Krishna Kewal Housing Society Flat No. 0/16, Kondhwa Khurd Near Domino Pizza Pune 411048 E-mail: mahrajkumar@gmail.com - and - Office No. 18, 3rd Floor 84, Dholakwala Building Janmabhoomi Marg, Fort Mumbai 400001 E-mail: rp.royaloak@gmail.com Last date for submission of claims: November 14, 2019 RVR MARINE PRODUCTS: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: RVR Marine Products Limited D.No. 26-8-6, Balusumudi Bhimavaram, West Godavari Andhra Pradesh AP 534201 India Insolvency Commencement Date: October 30, 2019 Court: National Company Law Tribunal, Amaravathi Bench Estimated date of closure of insolvency resolution process: April 27, 2020 (180 days from commencement) Insolvency professional: Rajesh Chhaparia Interim Resolution Professional: Rajesh Chhaparia B-3, Magadha Empire 8-6-42/7, 2nd Floor Pedawaltair Visakhapatnam 530017 E-mail: rajesh_chhaparia@yahoo.co.in - and - C/o R Chhaparia & Associates Chartered Accountants 1st Floor, 46-18-20 Sri Sai Nilayam, Mandavaripeta Dondaparthi, Visakhapatnam Andhra Pradesh 530016 Last date for submission of claims: November 17, 2019 SACHET INFRASTRUCUTRE: Insolvency Resolution Process Case Summary ----------------------------------------------------------------- Debtor: Sachet Infrastructure Private Limited Registered address: B 292, Chandra Kanta Complex Shop No. 8 Near Metro Pillar No. 161 New Ashok Nagar New Delhi 110096 IN Insolvency Commencement Date: November 6, 2019 Court: National Company Law Tribunal, Principal Bench Estimated date of closure of insolvency resolution process: May 4, 2020 (180 days from commencement) Insolvency professional: Mr. Udayraj Patwardhan Interim Resolution Professional: Mr. Udayraj Patwardhan Sumedha Management Solutions Private Limited C703, Marathon Innova Off Ganapatrao Kadam Marg Lower Parel West, Mumbai Maharashtra 400013 E-mail: udayraj_patwardhan@ sumedhamanagement.com sachet@sumedhamanagement.com Last date for submission of claims: November 20, 2019 SHALIBHADRA COTTRADE: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: Shalibhadra Cottrade Private Limited B/81, Cotton Exchange Building Cotton Green Mumbai 400033 Insolvency Commencement Date: October 22, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 28, 2020 Insolvency professional: Mr. Vikas Prakash Gupta Interim Resolution Professional: Mr. Vikas Prakash Gupta 16 B, Flat 301 Padmanabh Apartment TilakNagar, Nagpur 440010 E-mail: vikas.gupta@bngca.com - and - 405, K.P. Aurum, 4th Floor MarolMaroshi Road Marol Naka, Andheri (E) Mumbai 400059 E-mail: cirp.shalibhadracottrade@ gmail.com Last date for submission of claims: November 14, 2019 SHAM ELEKTROMECH: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: Sham Elektromech Private Limited 201 Anantraj CHS Capts Chandaverkar Lane Dahanukar Wadi Kandivili (W) Mumbai 400067 Insolvency Commencement Date: November 5, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: May 2, 2020 Insolvency professional: CA Naren Sheth Interim Resolution Professional: CA Naren Sheth 1014-1015, Prasad Chamber Tata Road No. 1 Opera House Charni Road (East) Mumbai 400004 Mobile: 09821133426 Tel.: 022 66322870 E-mail: mkindia58@gmail.com nvsheth@mkindia.com Last date for submission of claims: November 19, 2019 SONARCH INTERNATIONAL: Insolvency Resolution Process Case Summary ----------------------------------------------------------------- Debtor: Sonarch International Private Ltd B-112, Hind Saurashtra Industrial Estate Marol Naka, Andheri (East) Mumbai MH 400059 India Insolvency Commencement Date: October 29, 2019 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: April 26, 2020 Insolvency professional: Mr. Vimal Kumar Agrawal Interim Resolution Professional: Mr. Vimal Kumar Agrawal Office No. 11-12, Krishna Kunj Above HDFC Bank Ltd. Near East-West Flyover Bhyander West Thane 401101 Maharashtra E-mail: vimalpagarwal@rediffmail.com cirp.sonarch@gmail.com Last date for submission of claims: November 12, 2019 SRI VISHNU: Ind-Ra Raises LT Issuer Rating to B+, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Sri Vishnu Granites Limited's (SVGL) Long-Term Issuer Rating to 'IND B+' from 'IND B'. The Outlook is Stable. The instrument-wise rating actions are: -- INR47.5 mil. (reduce from INR64 mil.) Fund-based limits upgraded with IND B+/Stable rating; and -- INR6 mil. Non-fund-based limits affirmed with the IND A4 rating. KEY RATING DRIVERS The upgrade reflects an improvement in SVGL's credit metrics due to a decline in net borrowings. In FY19, the company reported interest coverage ratio (EBITDA/gross interest) of 2.2x (FY18: 1.9x) and net leverage (net debt/EBITDA) of 3.0x (4.2x). EBITDA margin also improved marginally to a modest 11.7% in FY19 (FY18: 11.6%) due to a decline in the overall cost of raw material consumed. The RoCE came in at 11% in FY19 (FY18: 9%). SVGL's networking capital remained stretched even though it improved to 111 days (FY18: 130 days) due to fewer debtor days of 69 (96). The scale of operations remained small with revenue of INR179 million in FY19 (FY18: INR180 million). The marginal decline in FY19 revenue was due to lower sales, driven by raw material shortage during monsoons. Liquidity Indicator – Stretched: SVGL's maximum average use of the fund-based facility was 102.0% in the 12 months ended September 2019. The cash flow from operations improved to INR27.18 million in FY19 (FY18: INR7.67 million) and free cash flow turned positive to INR25.04 million (negative INR1.93 million) due to the improved working capital cycle. The company's cash and cash equivalent amounted to INR0.50 million in FY19 (FY18: INR0.53 million). RATING SENSITIVITIES Positive: An increase in the scale of operations along with an improvement in the liquidity profile and the maintenance of the credit metrics will be positive for the ratings. Negative: Further weakening of the liquidity profile and a decline in the interest coverage ratio below 1.2x will be negative for the ratings. COMPANY PROFILE SVGL was incorporated in 1986 as a private limited company and reconstituted as a limited company in 1994 in Secunderabad, Telangana. SVGL processes rough granite blocks into granite slabs and exports them. The company is promoted by Kishan Agarwal, Kiran Agarwal, and Naman Agarwal. SUGANYA CONSTRUCTIONS: Ind-Ra Assigns 'BB' LT Issuer Rating ----------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Suganya Constructions (SC) a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR200 mil. Fund-based facilities assigned with IND BB/Stable/IND A4+ rating; and -- INR80 mil. Non-fund-based facilities assigned with IND A4+ rating. KEY RATING DRIVERS The ratings reflect SC's medium scale of operations and moderate credit metrics. In FY19, revenue remained almost unchanged year-on-year at INR1,038 million, after increasing to INR1,061 million in FY18 from INR688 million in FY17. The revenue remained stagnant in FY19 due to the execution of bridgework that generally has a longer execution period than that for road works. For 5MFY20, SC achieved revenue of around INR320 million. On April 1, 2019, SC had an order book worth INR1,607.39 million (1.5x of FY19 revenue), of which orders worth INR420 million were executed by August 31, 2019, and the rest is likely to be executed by FYE21. In FY19, interest coverage (operating EBITDA/gross interest expense) was 3.9x (FY18: 3.6x) and net leverage (adjusted net debt/operating EBITDAR) was 1.3x (2.3x). The credit metrics improved in FY19 on account of a reduction in the total debt due to the lower utilization of the fund-based limits resulting in lower interest expenses. Liquidity Indicator - Stretched: The firm's average maximum use of its fund-based limits was around 83.9% during the 12 months ended September 2019. SC's cash and cash equivalent remained low at INR0.9 million in FY19 (FY18: INR0.9 million). The cash flow from operations, which was negative in FY18, turned positive to INR136 million in FY19 due to a favorable change in a working capital cycle (FY19: six days; FY18: 22 days) on reduced debtor days at 27 (38) and increased creditor days of 24 (18). However, Ind-Ra expects the cash flow from operations to again turn negative in FY20 on account of the stressed working capital cycle. The ratings are constrained by the partnership nature of SC's business. The firm faces customer concentration risk as its top four customers contributed around 56% of the total revenue in FY19. The firm undertakes only government projects including central, state and semi-state government in Tamil Nadu and Andhra Pradesh. The ratings, however, are supported by SC's healthy EBITDA margins of 8.9% in FY19 (FY18: 8.5%) with a return on capital employed of 24% (25%). The margins improved marginally in FY19 on account of a reduction in the cost of raw material consumed. The ratings are also supported by SC's promoter's experience of almost a decade into civil construction work including roads, bridges, etc. RATING SENSITIVITIES Negative: A decline in the revenue or EBITDA margins, leading to net leverage above 3.5x or any delay in getting mobilization advance or retention money resulting in delays in order execution, with stretched liquidity, on a sustained basis, could be negative for the ratings. Positive: A significant increase in the revenue with a rise in EBITDA margins leading to an improvement in the credit metrics, on a sustained basis, could be positive for the ratings. COMPANY PROFILE SC is a partnership firm, incorporated in 2010. It is engaged in civil construction work including roads, bridges, etc. It is located at Aruppukottai (Tamil Nadu). TREND FLOORING: Insolvency Resolution Process Case Summary ---------------------------------------------------------- Debtor: Trend Flooring Private Limited Registered office: 411, 4th Floor 43 Chiranjiv Tower Nehru Place, New Delhi DL 110019 Insolvency Commencement Date: October 9, 2019 Court: National Company Law Tribunal, Delhi Bench Estimated date of closure of insolvency resolution process: May 3, 2020 (180 days from commencement) Insolvency professional: Mr. Rajeev Saxena Interim Resolution Professional: Mr. Rajeev Saxena 102, Manas Bhawan Extension 11, RNT Marg Indore 452001 E-mail: rsaxenaca@gmail.com Last date for submission of claims: November 19, 2019 VODAFONE IDEA: Seeks Government Aid After Posting INR509BB Loss --------------------------------------------------------------- Bloomberg News reports that after posting the worst quarterly loss in India's corporate history, Vodafone Group Plc's besieged local venture is appealing for urgent relief from the government to help avert a collapse. Vodafone Idea Ltd. took a one-time charge related to a $4 billion demand from the government for overdue fees, leading to a net loss of INR509 billion ($7.1 billion) in the three months through September, the company reported Nov. 14 after the market closed, Bloomberg relays. Formed by the merger of the U.K.-based firm's local unit with billionaire Kumar Mangalam Birla's Idea Cellular Ltd., hasn't reported a profit since the deal was announced in 2017, Bloomberg notes. "The company's ability to continue as going concern is dependent on obtaining the reliefs from the government," Vodafone Idea, as cited by Bloomberg, said in a statement on Nov. 14. It is "in active discussions with the government seeking financial relief," it said. Saddled with $14 billion of net debt, Vodafone Idea is fighting for survival after India's top court last month ordered it to pay fees the government said were due from prior years, according to Bloomberg. Vodafone Chief Executive Officer Nick Read told reporters last week in London that the situation was "critical" and unless India eases off on its demands, the venture may be headed for liquidation, according to Bloomberg. Bloomberg says rival Bharti Airtel Ltd. also posted a record net loss on Nov. 14 after market hours, highlighting the financial stress of Indian operators stuck with high levels of debt while facing a price war unleashed by billionaire Mukesh Ambani's Reliance Jio Infocomm Ltd. and more recently, the adverse court verdict on fees. Bloomberg notes that Bharti Airtel and Vodafone Idea shares gained Nov. 15 in Mumbai trading on optimism the government may provide help for the companies and as operating results showed some strength. A government panel is considering deferring payments due by March 2021 and March 2022, an official said last month, Bloomberg recalls. It will also consider cutting spectrum fees and other charges, said another official, who asked not to be identified, citing disclosure rules. In its Oct. 24 verdict, the Supreme Court of India ruled in favor of the government's method of calculating operators' revenue, a decision that means carriers must pay about $13 billion combined -- mostly license and spectrum fees built up over years, Bloomberg notes. Bharti Airtel owes $3 billion, while Reliance Jio needs to pay INR130 million, the least, since it has only been in business since 2016, says Bloomberg. The finance ministry won't back down from collecting the amount, which needs to be paid within three months as per the court order, an official with knowledge of the matter said this month, recalls Bloomberg. Vodafone Idea Limited operates as a telecom service provider. The Company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment. Vodafone Idea serves customers in India. VS LIGNITE POWER: Insolvency Resolution Process Case Summary ------------------------------------------------------------ Debtor: VS Lignite Power Private Limited 8-2-293/82/A/431/A Road No. 22 Jubilee Hills Hyderabad 500033 Telangana, India Insolvency Commencement Date: September 18, 2019 Court: National Company Law Tribunal, Hyderbad Bench Estimated date of closure of insolvency resolution process: March 16, 2020 (180 days from commencement) Insolvency professional: Dr. Govindarajula Venkata Narasimha Rao Interim Resolution Professional: Dr. Govindarajula Venkata Narasimha Rao 301, Alekhya Raindrops Gautami Enclave Kondapur Hyderabad 500084 E-mail: raogvn@gmail.com - and - C/o EY Restructuring LLP Oval Office, 18, iLabs Centre Hitech City, Madhapur Hyderabad, Telangana 500081 E-mail: vslclaims@in.ey.com ip.vsl@in.ey.com Last date for submission of claims: October 2, 2019 =============== M A L A Y S I A =============== LONDON BISCUITS: Defaults on MYR22.52MM Payments to RHB Bank ------------------------------------------------------------ Justin Lim at theedgemarkets.com reports that Practice Note 17 (PN17) company London Biscuits Bhd has again defaulted - this time on principal payments to RHB Bank that amounted to MYR22.52 million. In a bourse filling, the confectionery manufacturer said the default, dated Oct. 2, was due to "cash flow constraint," theedgemarkets.com relates. "The company is currently assessing the significant impact of the default in payment on the business, financial and operations of the remaining business of the group," it added. According to theedgemarkets.com, the group previously announced that it had defaulted on payments amounting to RM89.19 million to seven banks between June 19 and Sept 20 this year. The seven banks are: Bank Islam Malaysia Bhd, Bank of China (Malaysia) Bhd, Malayan Bank Bhd, United Overseas Bank Bhd, OCBC Bank (Malaysia) Bhd, OCBC Al-Amin Bank Bhd and HSBC Bank Malaysia Bhd. The latest announcement brings its default tally to RM111.71 million, theedgemarkets.com notes. The report says the group is currently facing a winding-up petition. Lim San Peen of PricewaterhouseCoopers Advisory Services Sdn Bhd has been appointed the interim liquidator, theedgemarkets.com discloses. About London Biscuits Based in Ulu Tiram, Malaysia, London Biscuits Berhad, together with its subsidiaries, manufactures and trades in confectionary and other related foodstuffs in Malaysia, Singapore, Hong Kong, Vietnam, and internationally. It offers cake confectioneries, such as roll cakes, pie cakes, layer cakes, and novelty shaped cakes. The company also provides potato chips; and snack confectioneries, such as corn snacks, jellies and puddings, and chocolate dip biscuits under the London, Hiro, Mizu, Kinos Potato Bites, CaCa, Sumi, NiNi, and BOBO brand names. It sells its products through wholesale and retail channels. The company exports its products to approximately 35 countries. London Biscuits Bhd slipped into Practice Note 17 (PN17) status in July 2019, following its payment default amounting to MYR9.83 million to Bank of Nova Scotia Bhd. ===================== N E W Z E A L A N D ===================== STANLEY GROUP: Receivers Report Shows Kiwibank is Largest Creditor ------------------------------------------------------------------ Rob Stock at Stuff.co.nz reports that the first receivers' report for the failed Stanley Group construction company showed Kiwibank was the biggest creditor. Stuff relates that the report, published on Nov. 14, also said none of the retention money belonging to sub-contractors was held in trust by Stanley Group. According to Stuff, the collapse of the Stanley Group, which was placed into liquidation on September 5, left many subcontractors, including carpenters, plumbers, electricians and labour hire companies, facing losses from work they had done on Housing New Zealand (HNZ) projects run by Stanley, though HNZ worked closely with subbies to ensure they were paid for their work. Receivers Tony Maginness and Jared Booth from Baker Tilly Staples Rodway, who were named receivers by Kiwibank on September 6, said the bank was owed a "net" NZD482,477, Stuff discloses. Stuff says directors told liquidator Damien Grant in September they believed they had under-priced a flagship Housing New Zealand (HNZ) project by as much as NZD2 million, prompting the group's failure. When Grant published his first liquidator's report, he estimated a shortfall for creditors of the Stanley Group of companies to be just under NZD13.5 million, including NZD9.5 million owed to sub-contractors and other external creditors, relays Stuff. Assets of Stanley Group comprised mostly debts owed by related companies, and "income tax assets", the receivers said in their first report, according to Stuff. The assets had a "book value" of just over NZD11 million on the date the company was placed into liquidation. The sum included NZD2.567 million of fixed assets including vehicles, tools and office equipment, they said, Stuff relays. Sales of the fixed assets by Turners Auctions would yield around NZD700,000, the receivers, as cited by Stuff, said. While Kiwibank was the first-ranking creditor, other creditors included Fletcher Building, HNZ, Allied Concrete, and Steel and Tube Holdings, they revealed. Stuff adds that he receivers said "no monies were held in trust by the Companies for subcontractors in relation to retentions payable". The first liquidator's report into Stanley Group showed owed NZD10 million to staff and external creditors when it went into liquidation. In the Stanley Group the top 10 creditors, mostly sub-contractors, are owed NZD3,143,610, Stuff discloses. Retentions are funds subcontractors pay to the companies they work for, which the main contractor releases after their work is proved sound, and there are no faults to fix, Stuff notes. Stuff recalls that Grant said in September that the sub-contractors' retention money was not held in segregated accounts, but directors believed the retentions were covered by a NZD1.2m project completion bond they deposited with HNZ. The Auckland and Waikato-based building company Stanley Group, and related company Tallwood, had about 100 staff and was headquartered in Takapuna with a factory and office in Matamata. Stanley Group and Tallwood were placed into liquidation on Aug. 29, 2019. ================= S I N G A P O R E ================= ACCRELIST LTD: Net Loss Widens to SGD2.1MM in H1 Ended Sept. 30 --------------------------------------------------------------- Rachel Mui at The Business Times reports that Accrelist Ltd has sunk deeper into the red, with a half-year net loss of SGD2.1 million, from a loss of SGD629,000 in the year-ago period, dragged down by higher costs and losses from its subsidiary, Jubilee Industries Holdings. For the six months ended Sept 30, loss per share deepened to 0.74 Singapore cent from 0.01 cent last year, Accrelist said on Nov. 14, BT relays. Revenue fell 8 per cent to SGD81.6 million, from SGD88.4 million a year earlier, BT discloses. This was mainly due to a 12 per cent fall in earnings from its electronics and mechanical business unit, which was partially offset by new contributions from its AM aesthetics segment, acquired last October. No dividend was declared for the half-year period, the report notes. In a separate statement on Nov. 14, Accrelist noted that it intends to conduct a "strategic review" to evaluate the group's positioning into a "pure medical aesthetics player in the region". BT relates that Terence Tea, executive chairman and managing director of Accrelist, said: "We are encouraged by the continued growth of our medical aesthetics business, and are confident that the medical aesthetics segment has significant future growth potential. Therefore, we plan to conduct a strategic review to consider the evolution of the group into the first SGX-listed pure medical aesthetics player." According to the report, Accrelist said the group's medical aesthetics segment has gained "significant momentum" since it first acquired the Refresh Laser Clinic network in October 2018, after which clinics in the network were renamed under the newly established AM Aesthetics brand. The group has plans for a second clinic in Kuala Lumpur, as well as new clinics in Ipoh, Johor Bahru and Vietnam. The proposed acquisition of The Wellness Clinic at Wheelock Place for SGD17 million is set to boost AM Aesthetics' efforts to target the affluent clientele, the company said. Accrelist also noted that it is widening its revenue stream by including clinical skin care products through its subsidiary, A Skin Products, adds BT. Accrelist Ltd. operates as a distributor and manufacturers' representative of test equipment for the disk drive industry. It operates through four segments: Financial Technology, Electronic Components Distribution Business Unit (EBU), Mechanical Business Unit (MBU), and Aesthetic Medical Services (AMS). It has operations in Singapore, Malaysia, the People's Republic of China, India, Indonesia, Thailand, Vietnam, the United States, and other countries. =============== T H A I L A N D =============== THAI AIRWAYS: Posts THB10.91BB Net Loss for 9 Mos. Ended Sept. 30 ----------------------------------------------------------------- Bangkok Post reports that Thai Airways International and its subsidiaries reported a THB4.68 billion net loss in the third quarter of this year and THB10.91 billion net loss for the first nine months, THAI president Sumeth Damrongchaitham said on Nov. 15. He said such losses were normal for airlines amid fierce competition and price dumping to win customers. "More than 20 airlines worldwide have shut down, including large ones," the report quotes Mr. Sumeth as saying. THAI and its subsidiaries posted overall revenue of THB45.02 billion in the third quarter of 2019. The figure dropped by 6.1% from the same period last year, he said. For expenditure, THAI revealed only its own figure at THB47.86 billion, 7.8% less than last year, Bangkok Post discloses. Bangkok Post says the cabin factor of THAI and its subsidiaries was 80.0% compared with 77.5% in the same period last year. The airline served 6.06 million passengers, up by 0.8%. Mr Sumeth predicted the national airline would post a loss of less than THB3 billion in the last quarter of this year, which is the high season. Just a few days ago, he said he hoped the airline could reduce its full-year loss to THB2.2 billion, from an expected THB10 billion, Bangkok Post relates. He said he expected the airline to make a profit next year, adds Bangkok Post. 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. ============= V I E T N A M ============= NUTIFOOD NUTRITION: Fitch Assigns B LT IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings assigned Vietnamese dairy product producer Nutifood Nutrition Food Joint Stock Company a final Long-Term Issuer Default Rating of 'B'. The Outlook is Stable. The final IDR is one notch lower than its expected rating of 'B+(EXP)' assigned on October 3, 2019 following the postponement of the company's proposed US-dollar bonds. Fitch believes the postponement reduces the company's financial flexibility as it has fewer funding options. Fitch also believes that the improvement in the company's financial transparency, which would have been required if the bonds were issued, will no longer eventuate. As a result, the final rating on Nutifood is one notch lower than its expected rating. At the same time, Fitch is withdrawing the IDR of Nutifood because the rating has been taken private and withdrawing the expected rating of 'B+(EXP)' with Recovery Rating of 'RR4' on its proposed US dollar unsecured notes as its forthcoming debt issuance is no longer expected to convert to a final rating. KEY RATING DRIVERS Weak Transparency Affects Corporate Governance : Fitch has reassessed Nutifood's management and corporate governance score at 'b', from 'bb', following the postponement of the proposed US-dollar bond issuance to reflect weak transparency, given the company's private-company status, which is limited compared with global peers. Fitch had previously incorporated an improvement in transparency into its rating from the proposed public bond issuance. Its score also reflects Nutifood's high ownership concentration and limited board independence. Small Size: Nutifood's small scale, measured by EBITDA, compared with global packaged food companies constrains its rating. The company reported EBITDA of USD50 million in 2018. Fitch believes Nutifood will be able to capitalise on the expected growth in the Vietnamese economy, particularly as it continues to expand its production and distribution facilities, and increase its EBITDA to around USD100 million by 2022. Despite this, the company is likely to remain small by global standard, which will continue to constrain its rating. Leading Domestic Dairy Producer: Nutifood is one of Vietnam's top-five milk-formula companies by volume and value. The company has differentiated itself from other domestic dairy producers by offering innovative products that are tailored to the nutritional needs and taste preferences of the Vietnamese population. Partnerships Reinforce Market Position: Nutifood continues to build on this leading position by partnering with the Vietnamese government and collaborating with global companies to bring quality products to Vietnam. For example, the company supplies milk for government health initiatives; partnered with BASF SE (A+/Negative) and Sweden's Backahill Group and Skanemejerier Ekonomisk Forening to enhance its products; distributes Asahi Group's premium 'Wakodo' brand (the number one infant food brand in Japan) baby formula; and obtained US Food and Drug Administration approval to export to the US market. Fitch believes these collaborations highlight Nutifood's knowledge and distribution channels in Vietnam and its strong position in various categories of nutrition products in the country. They also put the company in a good position to take advantage of rising incomes in Vietnam. Strong Growth Fundamentals: Vietnam is one of the largest consumer markets in south-east Asia, with a population of 96.5 million in 2018 and rising consumer spending. Fitch expects growth in the Vietnamese dairy market to be supported by greater health consciousness. The government has introduced initiatives to address malnutrition and stunting, whose levels remain high by global standards. Fitch also expects a high birth-rate and consumers increasingly seeking convenience with nutrition to continue to drive demand for Nutifood's products, particularly its ready-to-drink products. The company's revenue rose by a CAGR of 11.2% for 2016-2018, and Fitch expects this to accelerate over the next five years as it completes new production and distribution facilities. Nutifood's involvement in several government initiatives to improve national nutrition and health, its approval to export to the US and partnerships with several international companies will bolster its reputation in Vietnam and support its continued growth. The promising outlook for the dairy sector, however, comes with increased competition, both domestic and international. Extensive Distribution Network: Nutifood's distribution network spans all 58 provinces and five municipalities in Vietnam, with its products available in around 100,000 outlets through 193 distributors. This gives the company a competitive advantage in reaching customers, particularly in rural areas, where demand is rising faster than in urban areas but is still underpenetrated. Fitch believes Nutifood is strongly placed to continue to tap this rising rural demand, with rural sales making up around 80% of its revenue in 2018 and most of its products priced to target rural consumers. Strong R&D Supports Premiumisation: Fitch believes Nutifood's prioritisation of R&D will help it shift towards premium products, which the company expects to drive growth, especially in higher-income urban areas, and diversify its product range. Its main brand, GrowPlus+, accounted for 44% of 2018 gross revenue. Its R&D focus is supported by 24 staff, collaboration with local and international organisations, and increasing investments each year. Fitch believes this commitment to R&D will improve margins and help Nutifood capture new customers and strengthen its position in premium products, such as liquid and milk alternatives, which contribute 26% of revenue after their launch in 2015. Strong Financial Structure: Nutifood's leverage is strong for its rating and was below 1.5x from 2015 to 2017, before increasing to 2.9x in 2018 due to higher debt to finance its expansion. Fitch expects leverage to fall by around 0.5x in 2019 and to below 2.0x by 2021 as profitability increases due to higher revenue and lower costs following an expansion in capacity and a shift towards premium products. Leverage is also likely to decline due to a lower dividend payout ratio at a maximum of 30% of net profit as Nutifood prioritises the strength of its balance sheet. DERIVATION SUMMARY Nutifood's rating is constrained by its small scale relative to global packaged-food peers - particularly those rated in the 'B' rating category, which typically generate two to three times Nutifood's 2018 EBITDA, and its weaker access to capital - which Fitch has now included in Nutifood's rating - as highlighted by the postponement of its proposed US-dollar bond. This is partially offset by Nutifood's stronger financial profile - particularly lower leverage - than peers rated in the mid-to-low 'B' category, including Grupo Embotellador Atic, S.A. (Atic, B/Stable) and Yasar Holding A.S. (B-/Negative). Nutifood has a better governance structure than Atic; and this, combined with its stronger financial profile, offsets Nutifood's weaker access to capital and underscores the two issuers having the same rating. Nutifood's better governance structure is also a key differentiator from Russian peer, JSC Holding Company United Confectioners (UC, B/Stable). This offsets Nutifood's weaker access to capital, and both companies having similar financial profiles, but Nutifood's is likely to improve over the next two to three years, as its forecast growth and ability to pass on cost inflation to consumers should protect its margins, compared with UC, which is exposed to a declining market and higher competition. These factors lead us to rating Nutifood at the same level as UC. The one-notch differential with Yasar's rating is explained by the Turkish company's significantly weaker financial profile and cash generation ability, high foreign-currency risk exposure, thinner margins and exposure to more cyclical businesses than Nutifood, despite it being around double the size of Nutifood. Mastellone Hermanos Sociedad Anonima (CCC) has weaker margins and its rating is constrained by the Country Ceiling on Argentina, while Nutifood has lower leverage. These factors explain the three-notch rating differential between Mastellone and Nutifood. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenue growth of between 10% and 15% a year from 2019 to 2021, before moderating to the high single digits in 2022 - EBITDA margins to return to around 15% from 2020 (2018: 13%) - Capex of VND650 billion in 2019, VND862 billion in 2020, VND464 billion in 2021 and VND242 billion in 2022 - Dividend payout ratio to be a maximum of 30% of net profit (2018: 41%) RATING SENSITIVITIES Rating sensitivities are not applicable as the rating has been withdrawn. LIQUIDITY AND DEBT STRUCTURE Capital Access Limited; Liquidity Sound: Nutifood had VND438 billion of cash on hand at end-2018, in line with its policy to have a minimum of VND300 billon on hand. Some of its cash is held in bank deposits with maturities of up to 12 months. Of its total cash on hand, VND134 billion was pledged to obtain short-term loans from commercial banks. Nutifood is reliant on local and some international banks for capital. The postponement of its proposed US-dollar bond highlights the limited diversification of its funding sources. ********* 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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