/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/200226.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, February 26, 2020, Vol. 23, No. 41 Headlines A U S T R A L I A ACCESS TRAINING: First Creditors' Meeting Set for March 4 BIG UN: Former Investment Analyst Pleads Guilty to Insider Trading INTACT PROJECTS: Second Creditors' Meeting Set for March 3 JEANSWEST CORP: Former Owner Buys Company Back KP SERVICES: First Creditors' Meeting Set for March 4 LEEDERVILLE 139: Second Creditors' Meeting Set for March 4 PERSONALISED POWER: First Creditors' Meeting Set for March 5 STS HOLDINGS: Second Creditors' Meeting Set for March 4 TDAB PROJECTS: Second Creditors' Meeting Set for March 5 WOODY EMU: Second Creditors' Meeting Set for March 3 C H I N A [*] CHINA: May Set Up Bad-Debt Managers for Failed P2P Lenders [*] CHINA: Millions of Firms Face Collapse if Banks Don't Act Fast H O N G K O N G HONG KONG: Companies Have No Safety Net in Fight for Survival I N D I A A TO Z LOGISTICS: CRISIL Keeps 'B' Rating in Not Cooperating AL-AYAAN FOODS: CRISIL Maintains D Rating in Not Cooperating ALFA DEAL: CRISIL Reaffirms B+ Rating on INR1.5cr Cash Loan ANANT INTERCONTINENTAL: CRISIL Keeps B Rating in Not Cooperating ARROW TEXTILES: CRISIL Lowers Rating on INR2.5cr Loan to B+ BAPASHREE INFRA: CRISIL Keeps 'D' Rating in Not Cooperating BHARAT CARBON: CRISIL Keeps B- Rating in Not Cooperating Category BHUSHAN POWER: JSW Steel's $2.7BB Purchase Faces Fresh Legal Test CALL EXPRESS: CRISIL Maintains 'B+' Rating in Not Cooperating CAPITOL HILL: CRISIL Maintains 'D' Rating in Not Cooperating CELEBRITY CORPORATE: CRISIL Keeps 'D' Rating in Not Cooperating CHALLA CHLORIDES: CRISIL Keeps 'B-' Rating in Not Cooperating CHARMS CHEM: CRISIL Maintains 'D' Rating in Not Cooperating CORE JEWELLERY: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating CRACKERS INDIA: CRISIL Maintains 'C' Rating in Not Cooperating CREST PROMOTERS: CRISIL Keeps B+ Rating in Not Cooperating DAWER SONS: CRISIL Maintains 'B' Rating in Not Cooperating DOOTERIAH & KALEJ: CRISIL Keeps B- Rating in Not Cooperating G N R C LIMITED: CRISIL Maintains 'B' Rating in Not Cooperating GAMA INFRAPROP: Ind-Ra Affirms B- Loan Rating, Moves to Non- Coop. GREENBILT INDUSTRIES: CRISIL Keeps 'B' Rating in Not Cooperating GURUKUL FOUNDATION: CRISIL Keeps B Rating in Not Cooperating GVRMP WHAGDHARI: CRISIL Maintains D Rating in Not Cooperating HANUMAN RICE: CRISIL Maintains B- Rating in Not Cooperating HUGHES NETWORK: India Unit Faces Closure Over Unpaid Fees INRHYTHM ENERGY: Ind-Ra Migrates BB- LT Rating to Non-Cooperating MANI EXPORT: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating PETRON ENGINEERING: Ind-Ra Affirms 'D' Long Term Issuer Rating SHREE HANUMAN: CRISIL Lowers Rating on INR59.5cr Loan to 'D' SHRI KESHAV: Ind-Ra Lowers Long Term Issuer Rating to 'D' VIL INTERNATIONAL: CRISIL Keeps 'D' Rating in Not Cooperating WOCKHARDT LIMITED: Ind-Ra Puts BB+ LT Rating on RWE, Outlook Neg. - - - - - ================= A U S T R A L I A ================= ACCESS TRAINING: First Creditors' Meeting Set for March 4 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Access Training Institute Pty Ltd will be held on March 4, 2020, at 12:00 p.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, at 171 Sussex Street, in Sydney, NSW. Jason Tang and Andre Lakomy of Cor Cordis were appointed as administrators of Access Training on Feb. 21, 2020. BIG UN: Former Investment Analyst Pleads Guilty to Insider Trading ------------------------------------------------------------------ The Australian Securities and Investments Commission (ASIC) said Mr. Michael Ming Jinn Ho, 32, of Lilyfield, New South Wales, on Feb. 25, 2019, appeared in the Downing Centre Local Court and has pleaded guilty to insider trading and communicating inside information. Mr. Ho has pleaded guilty to: * five counts of insider trading contrary to sections 1043A(1) and 1311(1) of the Corporations Act 2001 (Cth); And * one count of communicating inside information contrary to section 1043A(2) and 1311(1) of the Corporations Act 2001 (Cth). The charges relate to Mr. Ho's purchase and sale of Big Un Limited shares and options between July 18, 2016 and February 10, 2018. Mr. Ho and the associates procured invested a total of approximately AUD1.6 million in Big Un securities over this period. Mr. Ho has cooperated with ASIC's investigation. He has made a formal statement admitting to the offences he has been charged with and the facts concerning them. Mr. Ho has admitted to trading while in possession of inside information relating to Big Un and to one occasion of communicating inside information to an associate. The inside information was communicated to Mr. Ho during a series of meetings and telephone conversations between Mr. Ho and Big Un's CEO Richard Evertz throughout 2016 and 2017. Big Un was placed in trading halt and suspended from quotation in February 2018. It was removed from the official ASX list in August 2018. It is now in liquidation. Mr. Ho is scheduled to appear in the Downing Centre District Court for a mention on March 6, 2020. The Commonwealth Director of Public Prosecutions is prosecuting the matter. ASIC's investigation concerning Big Un Limited and its officers and executives continues. INTACT PROJECTS: Second Creditors' Meeting Set for March 3 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Intact Projects Pty Ltd has been set for March 3, 2020, at 11:00 a.m. at the offices of Mackay Goodwin, Level 2, at 10 Bridge 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 March 2, 2020, at 4:00 p.m. Grahame Robert Ward and Domenico Alessandro Calabretta of Mackay Goodwin were appointed as administrators of Intact Projects on Jan. 28, 2020. JEANSWEST CORP: Former Owner Buys Company Back ---------------------------------------------- Dominic Powell at The Sydney Morning Herald reports that fashion brand Jeanswest has been saved from the executioner's axe, with the company's former owners buying the business back following the closure of 37 stores. SMH relates that administrators from KPMG announced on Feb. 25 a sale contract was signed on Feb. 24 with Harbour Guidance Pty Ltd, the Australian subsidiary of Hong Kong-based company Harbour Guide Pty Ltd, owned by Mr. Chun Fan Yeung. Mr. Yeung's family investment vehicle, Howsea Ltd, was the former parent company of Jeanswest, having bought the company from its previous owner Glorious Sun Enterprises in 2017 in a AUD41 million deal. Mr. Yeung was also a former director of Jeanswest prior to its collapse. Jeanswest owes AUD20 million to related party creditors, which include Howsea. SMH says the sale will be completed in mid-March and will include 106 Jeanswest stores, saving 680 jobs. Thirty-seven unprofitable stores were closed earlier this year and 260 jobs lost as part of a restructure to make the company more appealing to buyers. The purchase price was not disclosed, the report notes. According to SMH, George Yeung, the managing director of Harbour Guidance, said the company was committed to the Jeanswest brand. "The acquisition of Jeanswest business will present an opportunity to rejuvenate this iconic brand well known to the Australian community," the report quotes Mr. Yeung as saying. "We are committed to continue servicing Australian communities and grow the Jeanswest brand organically through an omnichannel service offering," Mr. Yeung said. SMH adds that administrator James Stewart said it was relatively uncommon for related parties or former owners to buy businesses out of administration, but said it was a good thing for the company. "Often the owner of the business doesn't have the financial capability to buy it back, so we're fortunate in this situation that parties related to the owner of the business, do have the ability to take it back," SMH quotes Mr. Stewart as saying . "And that's a positive thing for the business because they know the business. They believe in where the business can go, but it needed to be right-sized, which we did as part of the restructuring process." SMH says final confirmation of the deal is subject to Jeanswest's landlords agreeing the newly negotiated lease terms with Harbour Guidance. The company had been negotiating discounted rents with landlords in the months leading up to its collapse, but it was not enough to save the business from falling into administration. SMH relates that Mr. Stewart said he expects landlords will be forthcoming in agreeing to the new lease agreements, noting the "bar is not very high". Other interested parties had expressed interest throughout the sale process, Mr. Stewart said, but the administrators went with Howsea due to the reduced due diligence process and the former owner's "certainty of outcome," SMH relays. About Jeanswest Established in 1972, Jeanswest is one of Australia's most well-known retail brands. Jeanswest is currently owned by the Hong-Kong-based Yeung family's investment vehicle, HOWSEA Limited, which acquired the business as part of an HK$220 million deal with publicly-listed Glorious Sun Enterprises in 2017. On Jan. 15, 2020, James Stewart and Peter Gothard of KPMG were appointed as Joint and Several Administrators of Glorious Sun (Australia) Pty Ltd, Glorious Sun Corporate Services Pty Ltd, Jeanswest Investments (Australia) Pty Ltd, Jeanswest Wholesale Pty Ltd and Jeanswest Corporation Pty Ltd (trading as "Jeanswest") (collectively "the Companies") by the respective boards of directors. KP SERVICES: First Creditors' Meeting Set for March 4 ----------------------------------------------------- A first meeting of the creditors in the proceedings of KP Services Management Pty Ltd will be held on March 4, 2020, at 12:30 p.m. at the offices of Cor Cordis, One Wharf Lane, Level 20, at 171 Sussex Street, in Sydney, NSW. Jason Tang and Andre Lakomy of Cor Cordis were appointed as administrators of KP Services on Feb. 21, 2020. LEEDERVILLE 139: Second Creditors' Meeting Set for March 4 ---------------------------------------------------------- A second meeting of creditors in the proceedings of Leederville 139 News Pty Ltd, trading as Oxford News, has been set for March 4, 2020, at 11:00 a.m. at the offices of Hamilton Murphy Advisory (WA), Unit 18, at 28 Belmont Avenue, in Rivervale, 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 March 3, 2020, at 4:00 p.m. Stephen Robert Dixon of Hamilton Murphy Advisory was appointed as administrator of Leederville 139 on Jan. 7, 2020. PERSONALISED POWER: First Creditors' Meeting Set for March 5 ------------------------------------------------------------ A first meeting of the creditors in the proceedings of Personalised Power Solutions Pty Ltd, trading as Solar By Design, will be held on March 5, 2020, at 11:30 a.m. at the offices of Hall Chadwick, Level 21, at 25 Grenfell Street, in Adelaide, SA. Brent Kijurina and Joanne Keating of Hall Chadwick were appointed as administrators of Personalised Power on March 5, 2020. STS HOLDINGS: Second Creditors' Meeting Set for March 4 ------------------------------------------------------- A second meeting of creditors in the proceedings of STS Holdings No.1 Pty Ltd and STS Operations Ltd has been set for March 4, 2020, at 11:00 a.m. and 12:00 p.m. at the offices of Mackay Goodwin, Level 2, at 10 Bridge 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 March 3, 2020, at 4:00 p.m. Domenico Alessandro Calabretta and Thyge Trafford-Jones of Mackay Goodwin were appointed as administrators of STS Holdings on Jan. 29, 2020. TDAB PROJECTS: Second Creditors' Meeting Set for March 5 -------------------------------------------------------- A second meeting of creditors in the proceedings of TDAB Projects Pty Ltd has been set for March 5, 2020, at 11:00 a.m. at the offices of Rodgers Reidy, Level 9, at 46 Edward Street, in Brisbane, Queensland. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by March 4, 2020, at 5:00 p.m. David James Hambleton and James Marc Imray of Rodgers Reidy were appointed as administrators of TDAB Projects on Feb. 10, 2020. WOODY EMU: Second Creditors' Meeting Set for March 3 ---------------------------------------------------- A second meeting of creditors in the proceedings of Woody Emu Investments Pty Ltd has been set for March 3, 2020, at 3:00 p.m. at the offices of Worrells Solvency & Forensic Accountants at: -- Level 8, 102 Adelaide Street, Brisbane, QLD -- Suite 601B, Level 6, 91 Phillip Street, Parramatta, 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 March 2, 2020, at 5:00 p.m. Graeme Robert Beattie of Worrells was appointed as administrator of Woody Emu on Jan. 28, 2020. ========= C H I N A ========= [*] CHINA: May Set Up Bad-Debt Managers for Failed P2P Lenders -------------------------------------------------------------- Bloomberg News reports that China's banking regulator is considering setting up new regional bad-debt managers to help clean up risks after the failure of thousands of peer-to-peer lending platforms, according to people with knowledge of the matter. Bloomberg relates that companies in Shanghai, Zhejiang and Shenzhen have submitted applications to set up local asset managers dealing with bad loans, especially those from online lending platforms, said the people, asking not to be identified discussing a private matter. The China Banking and Insurance Regulatory Commission has yet to approve the applications, the people said, Bloomberg relays. According to Bloomberg, a two-year push to clean up China's P2P sector, plagued by fraud and defaults, has led to the failure of more than 2,000 online platforms. At their peak, they had almost 50 million investors and $150 billion in debt outstanding. Policy makers now have added impetus to clean up the bad debt as the outbreak of the deadly coronavirus threatens to further depress economic growth, the report says. The plan comes as the nation's four largest bad-debt managers balked at bailing out online lenders, the people, as cited by Bloomberg, said. The new regional asset managers, once approved, will initially focus on P2P bad loans before gradually extending their business scope to other distressed assets, they said. Bloomberg says China's online lending sector was born during a wave of deregulation. It was meant to provide small borrowers more access to the financial system while allowing savers to collect double-digit yields. But as news of fraud and defaults spread and the market became ensnared in President Xi Jinping's crackdown on financial risk, the industry began to shrink. Outstanding loans tumbled 48% during the first nine months of 2019, while cities including Shanghai ordered shutdowns of even the biggest players in recent months, adds Bloomberg. [*] CHINA: Millions of Firms Face Collapse if Banks Don't Act Fast ------------------------------------------------------------------ Bloomberg News reports that Brigita, a director at one of China's largest car dealers, is running out of options. Her firm's 100 outlets have been closed for about a month because of the coronavirus, cash reserves are dwindling and banks are reluctant to extend deadlines on billions of yuan in debt coming due over the next few months. There are also other creditors to think about. "If we can't pay back the bonds, it will be very, very bad," said Brigita, whose company has 10,000 employees and sells mid- to high-end car brands such as BMWs, Bloomberg relays. She asked that only her first name be used and that her firm not be identified because she isn't authorized to speak to the press. With much of China's economy still idled as authorities try to contain an epidemic that has infected more than 75,000 people, millions of companies across the country are in a race against the clock to stay afloat, Bloomberg notes. According to Bloomberg, a survey of small- and medium-sized Chinese companies conducted this month showed that a third of respondents only had enough cash to cover fixed expenses for a month, with another third running out within two months. Only 30% of such firms have managed to resume operations due to a complicated local government approval procedure as well as a lack of employees and financing, a government official said at a press conference on Feb. 24, Bloomberg relates. While China's government has cut interest rates, ordered banks to boost lending and loosened criteria for companies to restart operations, many of the nation's private businesses say they've been unable to access the funding they need to meet upcoming deadlines for debt and salary payments, Bloomberg says. Without more financial support or a sudden rebound in China's economy, some may have to shut for good, the report states. "If China fails to contain the virus in the first quarter, I expect a vast number of small businesses would go under," Bloomberg quotes Lv Changshun, an analyst at Beijing Zhonghe Yingtai Management Consultant Co., as saying. Bloomberg says despite accounting for 60% of the economy and 80% of jobs in China, private businesses have long struggled to tap funding to help them expand during booms and survive crises. About two-thirds of the country's 80 million small businesses, including many mom-and-pop shops, lacked access to loans as of 2018, Bloomberg discloses citing China's National Institution for Finance & Development. President Xi Jinping over the weekend pledged a greater focus on reviving the economy, with a more proactive fiscal policy, accelerated construction projects and freer reserves for commercial lenders to unleash more funding, Bloomberg relays. Support from China's banking giants in response to the outbreak has so far been piecemeal, mostly earmarked for directly combating the virus. Industrial & Commercial Bank of China Ltd., the nation's largest lender, has offered relief to about 5% of its small business clients, says Bloomberg. In an emailed response to questions from Bloomberg News, ICBC said it has allocated CNY5.4 billion ($770 million) to help companies fight the virus. "We approve qualified small businesses' loan applications as soon as they arrive," the bank said. As a group, Chinese banks had offered about CNY794 billion in loans related to the containment effort as of Feb. 20, according to the banking industry association, with foreign lenders such as Citigroup Inc. also lowering rates, Bloomberg relays. To put that into perspective, China's small businesses typically face interest payments on about CNY36.9 trillion of loans every quarter. Stringent requirements and shortlists restrict who can access special loans earmarked by the central bank for virus-related businesses, while local governments and banks have imposed caps on the amounts, Bloomberg report citing people familiar with the matter. A debt banker at one of China's largest brokerages said his firm opened a fast lane to ease debt sales by businesses involved in the containment effort, with borrowers required to prove they will use at least 10% of the proceeds to fight the disease. That's of little help to a car dealership. Brigita, whose firm owes money to dozens of banks, said she has so far only reached an agreement with a handful to extend payment deadlines by two months. For now, the company is still paying salaries, Bloomberg adds. ================= H O N G K O N G ================= HONG KONG: Companies Have No Safety Net in Fight for Survival ------------------------------------------------------------- Bloomberg News reports that Hong Kong is being threatened by a "Tsunami-like" cataclysm, the city's finance chief has warned, as the new coronavirus devastates businesses already hobbled by months of anti-government protests. The financial hub's lack of a bankruptcy process will only exacerbate the pain, Bloomberg says. Unlike in the U.S., Australia and rival Singapore, businesses in Hong Kong don't have recourse to any corporate rescue procedure when in difficulties, according to Bloomberg. The lack of a proper legal framework for seeking bankruptcy protection, which has been deliberated on for a quarter century, means companies are forced into liquidation, according to Johnson Kong, the president of the Hong Kong Institute of Certified Public Accountants, Bloomberg relates. "If we had the laws in place earlier, companies could have a better chance to survive this hit," Bloomberg quotes Mr. Kong as saying in an interview last week. Formal procedures give cash-strapped companies the opportunity to turn around, instead of immediately winding up and leaving employees and creditors unpaid, the report states. In the U.S., for example, Chapter 11 protection helped the once troubled toy chain Toys 'R' Us come back. Bloomberg says Mr. Kong expects a wave of failures with the virus outbreak keeping consumers indoors. Last year's list of casualties was already the highest in two years as Chinese tourists deserted the protest-hit city and pushed it into recession, Bloomberg notes. The government has pledged HK$25 billion ($3.2 billion) for relief measures and banks have been waiving some fees and extending loan payments. Bloomberg relates that the retail and food and beverage sectors are most vulnerable to liquidations, said Mr. Kong, who's been involved in restructuring and insolvencies for more than 35 years. According to Bloomberg, Hong Kong has been discussing a new legal framework since as early as 1996 and proposed legislation was submitted in 2014, but never dealt with by lawmakers. A spokesman for the Financial Services and Treasury Bureau said that a new bill is now in an "advance stage," but any debate on it won't happen until later this year, or early next year, Bloomberg relates. "Given the complexity and technicalities of the bill as well as the concerns expressed by various stakeholders in previous exercises, we will organize a fresh round of engagement with stakeholders on specific areas in the draft bill in the next few months," the spokesman said. Bloomberg adds that Mr. Kong, who was on the Standing Committee on Company Law Reform from 2009 to 2015, said that the government pushed for a rescue procedure after Lehman Brothers Holdings Inc. collapsed, but the economy recovered swiftly and the plan was "put on the back burner." January was the worst start to a year since 2015 with 703 failures, Bloomberg discloses citing the latest statistics from the Hong Kong government. The city's unemployment rate also rose for a fourth straight month, reaching its highest level since 2016. The data does not reflect the full impact of shutdowns from the outbreak, which emerged toward the end of January, Bloomberg notes. Mr. Kong said that the pain for many Hong Kongers facing unemployment will also be worsened by a failure to adjust jobless benefits for inflation, Bloomberg relates. These benefits, paid out by the Hong Kong Protection of Wages on Insolvency Fund, are still based on the median wage back in 1995, which is about half the current level, adds Bloomberg. ========= I N D I A ========= A TO Z LOGISTICS: CRISIL Keeps 'B' Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of A to Z Logistics Limited (ATZL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with ATZL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 ATZL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on ATZL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of ATZL continues to be 'CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Established in 2004 as a private limited company and reconstituted as a closely held public limited company with the current name on April 4, 2013, ATZL provides logistic services (on a contract basis) such as cargo transportation to customers across India. Operations are managed by Mr. Sanjeev Jindal, Mr. Sita Ram Jindal, and Ms. Sunita Jindal. AL-AYAAN FOODS: CRISIL Maintains D Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Al-Ayaan Foods Private Limited (AAFPL) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with AAFPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 AAFPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AAFPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of AAFPL continues to be 'CRISIL D Issuer not cooperating'. Incorporated in 2014 by Mr. Naushad Elahi and Ms. Mumtaz Elahi, AAFPL trades in livestock (buffalo). The company commenced operations in December 2014. The company was acquired by Mr. Mohammed Elahi Qureshi and Mr. Dilshad in 2015. ALFA DEAL: CRISIL Reaffirms B+ Rating on INR1.5cr Cash Loan ----------------------------------------------------------- CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on the bank facilities of Alfa Deal Private Limited (ADPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 6.5 CRISIL A4 (Reaffirmed) Cash Credit 1.5 CRISIL B+/Stable (Reaffirmed) The ratings continue to reflect ADPL's modest scale and working capital intense operations and its exposure to intense competition in the business. These weaknesses are partially offset by the extensive experience of the promoters in electrical contracting. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: Revenue below INR14 crore, over the three fiscals through 2019, reflects the company's subdued scale, which will continue to limit its operating flexibility. * Working capital intense operations: Gross Current Assets (GCA) of 226 days were driven by debtors and inventory of 114 days and 115 days, respectively as on March 31, 2019. Debtors are high due to delay in receipts from customers. Inventory was high as a result of large orders received during year end. Inventory averaged 23 days for the last three fiscals through 2018. These parameters are supported by stretched creditors at 228 days as on March 31, 2019. * Exposure to intense competition: The electrical contracting sector has several small and unorganised players, catering to regional demand, which has kept the scale of operations small, and limited the bargaining power with suppliers and customers. Thus, the operating margin remained low (below 5% for the three fiscals through 2019), and profitability remains susceptible to stiff competition. Strength: * Extensive experience of the promoters: Benefits from the extensive experience of the promoters, their strong understanding of the market dynamics, and healthy relationships with customers and suppliers will continue to support the business over the medium term. Liquidity Stretched Cash accrual is expected to remain moderate at over INR35 lakhs annually, against nil debt obligation. Bank limit utilisation averaged 94% for the 12 months through December 2019. Need-based unsecured loans, extended by the promoters, is expected to support liquidity. Outlook: Stable CRISIL believes ADPL will continue to benefit from the extensive experience of its promoters and healthy order book. Rating sensitivity factors Upward factors * Sustained revenue growth of 20% while maintaining profitability, leading to higher cash accrual * Improvement in working capital cycle Downward factors * De-growth in revenue or profitability by 25% * Further stretch in working capital cycle, weakening the financial and liquidity profiles ADPL was incorporated in 2009, and is promoted by Mr Fauziya Zainab Masood Ahmed Ishkay and Mr Muddassar Suhail Ahmed Ishkay. The company is an electrical service contractor for commercial and residential premises. It is based in Mumbai. ANANT INTERCONTINENTAL: CRISIL Keeps B Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Anant Intercontinental Private Limited (AIPL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing 10 CRISIL B/Stable (ISSUER NOT Credit COOPERATING) CRISIL has been consistently following up with AIPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 AIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on AIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of AIPL continues to be 'CRISIL B/Stable Issuer not cooperating'. Incorporated in 2012, AIPL exports basmati and non-basmati rice, to Singapore and Middle East. The company began commercial operations from August 2014 and is based in Raipur (Chhattisgarh). The operations are managed by promoters, Mr Umesh Jain and Mr Mukesh Jain. ARROW TEXTILES: CRISIL Lowers Rating on INR2.5cr Loan to B+ ----------------------------------------------------------- CRISIL has revised the rating on the bank facilities of Arrow Textiles Limited (ATL) to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+ Issuer Not Cooperating' while removing rating placed on 'Watch Negative'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+ ISSUER NOT COOPERATING'; Removed from 'Rating Watch with Negative Implications') Proposed Fund- 2.5 CRISIL B+/Stable (ISSUER NOT Based Bank Limits COOPERATING; Revised from 'CRISIL BB+ ISSUER NOT COOPERATING'; Removed from 'Rating Watch with Negative Implications') Term Loan 2.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+ ISSUER NOT COOPERATING'; Removed from 'Rating Watch with Negative Implications') CRISIL has been consistently following up with ATL for getting information through letters and email dated January 21, 2020, January 27, 2020 and January 30, 2020, respectively, apart from telephonic communication. However, the issuer has continued to be non-cooperative. This led CRISIL to carry out rating surveillance with the best available information. '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 they are arrived at without any management interaction and are based on best available or limited or dated information on the company'. Detailed Rationale CRISIL had, on March 27, 2019, placed the ratings on watch following the ATL's announcement regarding amalgamation of ATL and MMG India Private Limited (MMG) with Delta Magnets Limited (DML). Despite repeated attempts to engage with the management, CRISIL has not received any information on strategic intent of ATL. This restricts CRISIL's ability to take a forward-looking view on the credit quality of the entity. CRISIL believes the information available for ATL is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information'. Based on the available information, CRISIL has revised the rating on the bank facilities of ATL to 'CRISIL B+/Stable Issuer Not Cooperating' from 'CRISIL BB+ Issuer Not Cooperating' while removing rating placed on 'Watch Negative'. Analytical Approach For arriving at its ratings, CRISIL has combined the business and financial risk profiles of ATL, MMG India Private Limited (MMG) and Delta Magnets Limited (DML) since ATL & MMG will be amalgamated with DML. ATL (formerly, Arrow Webtex Ltd) was de-merged from Delta Corp Ltd with effect from April 1, 2008. It manufactures woven tapes and labels and fabric-printed labels for hosiery and garment manufacturers. DML was incorporated as GP Electronics Pvt Ltd on September 23, 1982. It was converted into a public limited company on July 16, 1984. Subsequently, its name was changed to Delta Magnets Ltd on October 31, 2008. DML manufactures ring magnets for Loudspeakers, arc magnets for automobiles, flat rectangular shaped magnets for various other applications and isotropic rings for DC motors, dynamos, and so on. DML is chiefly engaged in manufacturing and supplying segment magnets catering to the automobile industry, with installed capacity of 3600 tonne per annum. MMG was incorporated as Neosid (India) Pvt Ltd on June 5, 1996. Its name was changed to MMG Neosid (India) Pvt Ltd on September 18, 2000, and to MMG India Pvt Ltd on April 2, 2002. It manufactures soft ferrites for a wide range of cores: POT, RM, E, ETD, EP, Balun and Toroidal, as well as beads and rods. MMG was acquired by DML in 2010, thus becoming its wholly owned subsidiary. BAPASHREE INFRA: CRISIL Keeps 'D' Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Bapashree Infrastructure Private Limited (BIPL) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 20 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with BIPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 BIPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on BIPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of BIPL continues to be 'CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. BIPL, set up in 2007 by Mr. Jagdish Patel and Mr. Ketan Patel, is engaged in residential real estate development in Ahmedabad. It has two ongoing projects. BHARAT CARBON: CRISIL Keeps B- Rating in Not Cooperating Category ----------------------------------------------------------------- CRISIL said the ratings on bank facilities of Bharat Carbon and Oil Industries (BCOI) continues to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1 CRISIL B-/Stable (ISSUER NOT COOPERATING) Mortgage Loan 1.2 CRISIL B-/Stable (ISSUER NOT Facility COOPERATING) Proposed Term Loan 0.1 CRISIL B-/Stable (ISSUER NOT COOPERATING) Term Loan 5.2 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with BCOI for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 BCOI, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on BCOI is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of BCOI continues to be 'CRISIL B-/Stable Issuer not cooperating'. Established in 2013 as a partnership firm by Mr. Sudesh Kotian and his wife, Ms. Sunila Kotian, BCOI is engaged in manufacturing pyrolysis oil and carbon black by recycling scrap tyres. The manufacturing facility is in Mangaon, Maharashtra. BHUSHAN POWER: JSW Steel's $2.7BB Purchase Faces Fresh Legal Test ----------------------------------------------------------------- Bloomberg News reports that JSW Steel Ltd.'s $2.7 billion purchase of a bankrupt steel mill is facing a fresh hurdle after a former chairman of Bhushan Power & Steel Ltd. challenged the deal in the country's top court. Sanjay Singal filed a petition on Feb. 24 against a ruling by a bankruptcy tribunal that had approved the deal earlier this month, Bloomberg relates citing the Supreme Court's website. The petition hasn't yet been allotted a date for a hearing, the report says. According to Bloomberg, bidders for India's bankrupt steel mills have faced repeated delays in their attempts to buy indebted assets. Bloomberg says the Sajjan Jindal-led mill has been caught in legal tangles since its 197 billion-rupee ($2.7 billion) bid for Bhushan Power was first approved last year, while ArcelorMittal faced more than a year-long battle for its takeover of Essar Steel India Ltd. Singal's petition threatens to further delay or derail the takeover, the report relates. An adverse ruling could also be a setback for lenders, which led by Punjab National Bank are seeking a speedy resolution, Bloomberg says. About Bhushan Power Bhushan Power and Steel Limited manufactures and markets steel products. It offers flat products, such as coated products, galvanized/galvalume, color coated products, cable tapes, and cold rolled products; and long products, including iron making and sponge iron products. The company also provides steel pipes, hollow steel sections, grooved pipes, and carbon steel tubes. Mahendra Kumar Khandelwal was appointed as the IRP in the case under an order passed by the National Company Law Tribunal (NCLT) on July 26, 2017. Bhushan Power, which owes over INR37,000 crore to a consortium of lenders led by Punjab National Bank, was among 12 large companies identified by the Reserve Bank of India against which banks were directed to initiate insolvency proceedings, according to LiveMint.com. Barring Era Infra Engineering Ltd, petitions have been admitted in all other cases, LiveMint.com noted. CALL EXPRESS: CRISIL Maintains 'B+' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Call Express Construction India Private Limited (CECPL) continues to be 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 50 CRISIL B+/Stable (ISSUER NOT COOPERATING) Proposed Term Loan 5 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CECPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 CECPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CECPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CECPL continues to be 'CRISIL B+/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Set up in 2006, CECPL is currently developing a residential real estate project at Chennai. The company is promoted by Mr. Ramesh and his family. CAPITOL HILL: CRISIL Maintains 'D' Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Capitol Hill Hotels Private Limited (CHHPL) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 45 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CHHPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 CHHPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CHHPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CHHPL continues to be 'CRISIL D Issuer not cooperating'. Incorporated in 2012, CHHPL is developing a four-star deluxe hotel in Bistupur, Jamshedpur (Jharkhand). The company is promoted by Mr. Ashwani Bhatia and Mr. Sanjay Bhatia. CELEBRITY CORPORATE: CRISIL Keeps 'D' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of Celebrity Corporate Club (CCC) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 7 CRISIL D (ISSUER NOT COOPERATING) Overdraft 1 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CCC for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 CCC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CCC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CCC continues to be 'CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Set up in 2010 by Mr Kangeyan, CCC runs a club in Chennai which has three branches in Tamil Nadu. CHALLA CHLORIDES: CRISIL Keeps 'B-' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of Challa Chlorides Private Limited (CCPL) continues to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B-/Stable (ISSUER NOT COOPERATING) Long Term Loan 2.43 CRISIL B-/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 1.57 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CCPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of CCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CCPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CCPL continues to be 'CRISIL B-/Stable Issuer not cooperating'. CCPL was incorporated in 1994 and is promoted by Mr C.R.K. Chowdhary and Mr. C Karuna Sree. Based in Telangana it manufactures bulk drugs. CHARMS CHEM: CRISIL Maintains 'D' Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Charms Chem Private Limited (CCPL) continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (ISSUER NOT COOPERATING) Inland/Import 0.5 CRISIL D (ISSUER NOT Letter of Credit COOPERATING) Proposed Fund- 1.09 CRISIL D (ISSUER NOT Based Bank Limits COOPERATING) Term Loan .55 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CCPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of CCPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CCPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CCPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 2001, CCPL manufactures herbal extracts and phytochemicals which find application in oncology drugs and nutraceutical products. The company is promoted by Mr. Milind Honavar and Mrs. Sangeeta Honavar, and its manufacturing units are located in Kurkumbh and Jejuri near Pune (Maharashtra). CORE JEWELLERY: Ind-Ra Moves 'BB' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Core Jewellery Private Limited's (CJPL) 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: -- INR110 mil. Term loan due on February 2022 migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR450 mil. Fund-based working capital 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 February 21, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1999, Mumbai-based CJPL manufactures and exports diamond-studded gold jewelry. CRACKERS INDIA: CRISIL Maintains 'C' Rating in Not Cooperating -------------------------------------------------------------- CRISIL said the ratings on bank facilities of Crackers India Infrastructure Limited (CIIL) continues to be 'CRISIL C Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 65 CRISIL C (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CIIL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 CIIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CIIL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CIIL continues to be 'CRISIL C Issuer not cooperating'. CIIL, incorporated in 2007, started operations in the retail and the hotel segments. However, over time, it transferred its retail operations to group entity The World Retail Pvt Ltd, and now has two hotels: The World Business Hotel at Barbil in Odisha, and The World Backwaters at Allepey in Kerala. CIIL is constructing an 11-storied hotel in Bhubaneswar, which is expected to commence operations in June 2016. CREST PROMOTERS: CRISIL Keeps B+ Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Crest Promoters Private Limited (CPPL) continues to be 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term 5 CRISIL B+/Stable (ISSUER NOT Loan COOPERATING) Term Loan 95 CRISIL B+/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with CPPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 CPPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on CPPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of CPPL continues to be 'CRISIL B+/Stable Issuer not cooperating'. CPPL was incorporated by Mr. Ajay Kumar, Mr. Jagdeep Singh Gill, Mr. Pratap Singh Rathi and Mr. Dushyant Malik. The company develops residential real estate and currently is developing a residential project, Ace City, in Greater Noida West (Uttar Pradesh). DAWER SONS: CRISIL Maintains 'B' Rating in Not Cooperating ---------------------------------------------------------- CRISIL said the ratings on bank facilities of Dawer Sons Private Limited (DSPL) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Cash 3 CRISIL B/Stable (ISSUER NOT Credit Limit COOPERATING) CRISIL has been consistently following up with DSPL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 DSPL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DSPL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of DSPL continues to be 'CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. DSPL, incorporated in 1993, manufactures coated textile products. Its manufacturing facility is located at Mayapuri, New Delhi. DOOTERIAH & KALEJ: CRISIL Keeps B- Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Dooteriah & Kalej Valley Tea Estates Private Limited (DKVTE) continues to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B-/Stable (ISSUER NOT COOPERATING) Long Term Loan 8.1 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with DKVTE for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of DKVTE, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on DKVTE is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of DKVTE continues to be 'CRISIL B-/Stable Issuer not cooperating'. Dooteriah & Kalej Valley Tea Estates Pvt Ltd (DKVTE), incorporated in January 1983 is engaged in manufacture, supply and export of various kinds of tea, including green tea, and black tea. The company has three tea estates, Dooteriah, Kalej Valley and Pashok in Darjeeling. G N R C LIMITED: CRISIL Maintains 'B' Rating in Not Cooperating --------------------------------------------------------------- CRISIL said the ratings on bank facilities of G N R C Limited (GNRC) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 0.45 CRISIL B/Stable (ISSUER NOT COOPERATING) Term Loan 60.76 CRISIL B/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GNRC for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 GNRC, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GNRC is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of GNRC continues to be 'CRISIL B/Stable Issuer not cooperating'. Furthermore, the company has not paid the fee for conducting rating surveillance as agreed to in the rating agreement. Incorporated in 1986, GNRC operates a chain of multi-speciality hospitals in Guwahati, Assam. The company established its first hospital in Dispur, Guwahati, in 1986; in 2008, it commercially opened its second multi-speciality hospital at Six Mile, Guwahati. GNRC commenced commercial operations of its third multi-speciality in North Guwahati in January 2014. The newly started North Guwahati hospital is eligible for central subsidy, which represents 30 percent of the total project cost. The hospital has also received a grant from World Bank. GAMA INFRAPROP: Ind-Ra Affirms B- Loan Rating, Moves to Non- Coop. ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Gama Infraprop Private Limited's (GIPL) bank loan ratings at IND B- and has simultaneously migrated the ratings to the non-cooperating category. 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 ratings. The rating will now appear as 'IND B-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR3,016.42 bil. Senior project bank loans affirmed and migrated to non-cooperating category with IND B- (ISSUER NOT COOPERATING) rating; -- INR299.8 mil. Cash credit facility affirmed and migrated to non-cooperating category with IND B- (ISSUER NOT COOPERATING) rating; -- INR651.8 mil. Letter of credit affirmed and migrated to non- cooperating category with IND B- (ISSUER NOT COOPERATING) rating; -- INR175.8 mil. Bank guarantee affirmed and migrated to non- cooperating category with IND B- (ISSUER NOT COOPERATING) rating; and -- INR40.0 mil. Performance bank guarantee affirmed and migrated to non-cooperating category with IND B- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The affirmation reflects the continued risk associated with gas availability as the amount of gas required by GIPL's power plant is not being met fully due to the prevailing deficit in the country. The company's fuel supply agreement with Indian Oil Corporation Ltd (IOC: 'IND AAA'/Stable) is short-term, on a take-or-pay basis and valid from October 1, 2019, to April 1, 2020. Furthermore, GIPL continues to have tie-ups for only 50% of capacity (107MW) of the power plant with Uttarakhand Power Corporation Limited (UPCL). The power purchase agreement is valid for 25 years from the commercial operations date. The average plant load factor for the 12 months ended December 2019 was 55.6%, (34.01% for the 12 months ended November 2018), with no generation recorded in October 2019 and November 2019. Liquidity indicator- Poor: GIPL's cash and bank balance amounted to just INR2.89 million as of January 22, 2020. Moreover, the company does not maintain any debt service reserve. The ratings are also constrained by operational risk, as GIPL's O&M agreement with M/s STEAG Energy Services India Private Limited, which provides O&M services to over 5000MW of thermal power plants (both gas-fired and coal-fired) across the country, will expire in March 31, 2020, and there is no clarity regarding renewal. The ratings have been migrated to the non-cooperating category as GIPL did not provide information related to its latest financial performance, billing and receivable cycle, monthly working capital utilization, sponsor financial profile and any support received despite continuous requests and follow-ups by the agency. COMPANY PROFILE GIPL is promoted by M/s RLG group, which is engaged in chemical manufacturing, pharmaceutical manufacturing, and power generation. It was incorporated under the Companies Act, 1956, to develop and operate a 225MW (nameplate capacity) combined-cycle gas-fired power plant in Udhamsinghnagar, Uttarakhand. The project is designed to use natural gas/re-gasified liquefied natural gas as the main fuel for power generation. The power plant achieved commercial operations date on March 16, 2016. GREENBILT INDUSTRIES: CRISIL Keeps 'B' Rating in Not Cooperating ---------------------------------------------------------------- CRISIL said the ratings on bank facilities of Greenbilt Industries Private Limited (Greenbilt) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 21 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with Greenbilt for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Greenbilt, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on Greenbilt is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of Greenbilt continues to be 'CRISIL B/Stable Issuer not cooperating'. Promoted by Mr. Aditya Agrawal, Greenbilt was incorporated on June 4, 2012. The company is setting up a manufacturing unit of AAC blocks, having installed capacity of 1,71,000 CBM per annum at Durg district in the state of Chhattisgarh. GURUKUL FOUNDATION: CRISIL Keeps B Rating in Not Cooperating ------------------------------------------------------------ CRISIL said the ratings on bank facilities of Gurukul Foundation (GF) continues to be 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 18 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING) CRISIL has been consistently following up with GF for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 among others, apart from telephonic communication. However, the issuer has remained non cooperative. 'The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of GF, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GF is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of GF continues to be 'CRISIL B/Stable Issuer not cooperating'. GF is a trust, formed in June 2016, by four trustees - Mr. Piyush Agarwal, Mr. Niraj Kumar, Mr.Ashok Kumar and Mr. Shailendra Kumar Gupta with an objective to impart education and conduct other charitable activities. Its operations are expected to start by April 2018. GVRMP WHAGDHARI: CRISIL Maintains D Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of GVRMP Whagdhari Ribbanpally Tollway Private Limited (GVRMP) continues to be 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 202 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with GVRMP for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 GVRMP, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on GVRMP is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of GVRMP continues to be 'CRISIL D Issuer not cooperating'. GVRMP is a special purpose vehicle (SPV) set up as a joint venture in 2010 by GVR Infra Projects Ltd, RMN Infrastructures Ltd, and the Prathyusha group (51:25:24) to improve and widen a 141.2-kilometre stretch (from Maharashtra border to Andhra Pradesh [Whagdhari-Ribbanpally]) of State Highway-10 on build-operate-transfer toll basis. Commercial operations began in September 2012. HANUMAN RICE: CRISIL Maintains B- Rating in Not Cooperating ----------------------------------------------------------- CRISIL said the ratings on bank facilities of Hanuman Rice Traders (HRT) continues to be 'CRISIL B-/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B-/Stable (ISSUER NOT COOPERATING) Proposed Long Term Bank Loan Facility 0.6 CRISIL B-/Stable (ISSUER NOT COOPERATING) SME Credit .25 CRISIL B-/Stable (ISSUER NOT COOPERATING) Term Loan 1.65 CRISIL B-/Stable (ISSUER NOT COOPERATING) CRISIL has been consistently following up with HRT for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 HRT, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on HRT is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of HRT continues to be 'CRISIL B-/Stable Issuer not cooperating'. HRT, set up in 2004, mills and processes paddy into rice, and generates by-products such as broken rice, bran, and husk. Its rice mill is in Krishna. Mr. Potluri Krishna Kumari, Mr. Potluri Sita Rama Prasad, and Mr. Potluri Pavan Kumar are partners in the firm. HUGHES NETWORK: India Unit Faces Closure Over Unpaid Fees --------------------------------------------------------- Reuters reports that U.S. satellite broadband provider Hughes Network Systems may have to shut its Indian operations due to unpaid levies owed to the government, which could put thousands of banking services at risk, a company letter seen by Reuters showed. India's Supreme Court late last year ordered a number of telecom companies, including Hughes and larger firms like Vodafone, to pay billions of dollars owed to the government, Reuters recalls. According to Reuters, Hughes' India unit provides services to defence, education and banking sectors in the country and told India's telecoms minister in a letter dated Feb. 20 that it faces bankruptcy as it can't pay the INR6 billion ($84 million) it owes. The closure of the company could disrupt connectivity at more than 70,000 banking locations and many critical satellite networks in the Indian navy, army and railways, Hughes' India President Partho Banerjee said in the letter, which was seen by Reuters. "We are facing a huge demand . . . which by no means is serviceable by us and is in fact pushing our company towards bankruptcy & closure," Banerjee wrote in the letter, Reuters relays. "This is an SOS request," he added. The company said the government's telecoms department had made an incorrect calculation of the dues more than a decade ago which has ballooned to $84 million with interest and penalties, Reuters relates. Hughes, when approached by Reuters for comment, would not comment on the substance of the letter but said in a statement it "remains committed to India" and would continue to provide services to its customers. Vodafone Idea, which owes $3.9 billion in dues, interest and penalties, has already warned of a potential exit, putting at risk 13,000 employees and billions of dollars in bank loans, Reuters says. According to Reuters, India's claim for unpaid dues followed a dispute with companies over how adjusted gross revenue, a percentage of which companies need to pay to the government as fee, was calculated. While the $84 million Hughes owes is significantly smaller than the sums owed by larger peers, a company document from December showed it was still more than three times its net worth in India, Reuters relays. "This, if not resolved, will make the operation unviable thus rendering many customers like banks, other enterprises and critical government networks without any connectivity," the company said in a separate December letter to the government. Hughes, which is part of U.S.-based satellite group Echostar Corp, said in December 2018 it had been chosen to provide high-performance satellite broadband system for India's naval communications network, recalls Reuters. The company also provides communication services to more than 30 public and private banks in India, according to its website. INRHYTHM ENERGY: Ind-Ra Migrates BB- LT Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated InRhythm Energy Limited's (IEL) 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 action is: -- INR240 mil. Non-fund-based working capital facilities migrated to non-cooperating category with IND A4+ rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 8, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1992, IEL is engaged in coal trading. It imports coal from Indonesia and Australia and sells to domestic customers. MANI EXPORT: Ind-Ra Migrates 'BB' Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Mani Export Private Limited's (MEPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the ratings. The rating will now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR300 mil. Fund-based working capital limits migrated to non- cooperating category with IND BB (ISSUER NOT COOPERATING) rating; and -- INR4 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 5, 2019. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE MEPL was converted into a private limited company form a partnership firm in 2014. It was set up by Mr. Nagjibhai B. Sojitra and other family members in 1987. The company engaged in the cutting and processing of rough diamonds and exporting of polished diamonds of various sizes and shapes. PETRON ENGINEERING: Ind-Ra Affirms 'D' Long Term Issuer Rating -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Petron Engineering Construction Limited's (PECL) Long-Term Issuer Rating at 'IND D (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. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR121.6 mil. Term loan (long-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; -- INR845 mil. Fund-based limits (long-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; -- INR4.12 bil. Non-fund-based limits (short-term) affirmed with IND D (ISSUER NOT COOPERATING) rating; -- INR200 mil. Proposed term loan (long-term) affirmed with Provisional IND D (ISSUER NOT COOPERATING) rating; -- INR350 mil. Proposed fund-based limits (long-term) affirmed with Provisional IND D (ISSUER NOT COOPERATING) rating; and -- INR650 mil. Proposed non-fund-based limits (short-term) affirmed with Provisional IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The affirmation reflects the National Company Law Tribunal's order to commence the liquidation of PECL. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could result in an upgrade. COMPANY PROFILE Incorporated in 1976, PECL provides turnkey engineering, procurement, construction and composite construction solutions to power, oil and gas, petrochemical, cement, and other sectors. SHREE HANUMAN: CRISIL Lowers Rating on INR59.5cr Loan to 'D' ------------------------------------------------------------ CRISIL has downgraded its rating on the bank facilities of Shree Hanuman Trust (SHNMT) to 'CRISIL D' from 'CRISIL BB-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 59.5 CRISIL D (Downgraded from 'CRISIL BB-/Stable') The downgrade reflects the delays by SHNMT in repaying the principal and interest obligation on the term loan. This is on account of delay in receipt of lease rent income. SHNMT is exposed to risks related to timely renewal of contract and receipt of arrears, and has assured revenue with strong counterparty. Key Rating Drivers & Detailed Description Weaknesses * Delays in debt repayment: On account of delay in rent income from counterparty, there have been delays by SHNMT in servicing the EMI payment on the term loan. * Exposure to risks related to timely renewal of lease contracts There have been delays by the counterparty in revising the rental rates and providing the arrears thus resulting in a mismatch in the rental income and the loan repayment amount. The trust funds this shortfall in debt servicing by the interest received on the investment made in the group company. Strengths * Assured revenue and strong counterparty The trust has lease agreement with The Income Tax Department, Govt. of India. The agreement is being renewed every three years, from the last 33 years. Further, the property is located in the prime location of Mumbai i.e. Nariman Point. Liquidity Poor SHNMT has weak liquidity reflected by delay in servicing of debt obligations due to delay in debtor realisation. Rating Sensitivity Factors Upward Factors *Track record of timely debt servicing for at least over 90 days *Improvement in lease rent rate, leading to higher DSCR and timely realisation of debtors. SHNMT, setup in 1982, owns an office in Nariman Point Mumbai, which is given on lease basis. The trust is owned by Mittal Group, who have interest in real estate development. SHRI KESHAV: Ind-Ra Lowers Long Term Issuer Rating to 'D' --------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shri Keshav Cements and Infra Limited's (SKCIL) Long-Term Issuer Rating to 'IND D' from 'IND BB'. The instrument-wise rating actions are: -- INR413 mil. Long-term loans (Long-term) due on January 2030 downgrade with IND D rating; and -- INR267 mil. Fund-based limits (Long-term/Short-term) downgrade with an IND D rating. KEY RATING DRIVERS The ratings reflect SKCIL's delays in term loan servicing in February 2020 due to operational delays in realization from its debtors. RATING SENSITIVITIES Positive: Timely debt servicing for three consecutive months could be positive for the ratings. COMPANY PROFILE Incorporated in 1993, SKCIL is manufactured ordinary Portland cement. VIL INTERNATIONAL: CRISIL Keeps 'D' Rating in Not Cooperating ------------------------------------------------------------- CRISIL said the ratings on bank facilities of VIL International Private Limited (VIL) continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (ISSUER NOT COOPERATING) Letter of Credit 10 CRISIL D (ISSUER NOT COOPERATING) CRISIL has been consistently following up with VIL for obtaining information through letters and emails dated July 29, 2019 and January 10, 2020 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 VIL, which restricts CRISIL's ability to take a forward looking view on the entity's credit quality. CRISIL believes information available on VIL is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower'. Based on the last available information, the ratings on bank facilities of VIL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. VIL, based in Chennai, trades in timber and medium-density fibre boards. It was set up by Mr. Venkat Immanni and Mr. Satya Rao in 2001. WOCKHARDT LIMITED: Ind-Ra Puts BB+ LT Rating on RWE, Outlook Neg. ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has placed Wockhardt Limited's Long-Term Issuer Rating of 'IND BB+' on Rating Watch Evolving (RWE). The outlook was Negative. The instrument-wise rating actions are: -- INR2.0 bil. Term loans due on March 2024 placed on RWE with IND BB+/RWE rating; -- INR4.0 bil. Fund-based limits placed on RWE with IND BB+/RWE rating; -- INR3,588.0 bil. Non-fund-based limits placed on RWE with IND A4+/RWE rating; -- INR1.663 bil. Fund-based/ non-fund-based interchangeable Limits placed on RWE with IND BB+/RWE/IND A4+/RWE rating; -- USD380 mil. Term loans due on December 2021 - January 2022 placed on RWE with IND BB+/RWE rating; -- INR4,750.0 bil. Term loans due on June-October 2022 placed on RWE with IND BB+/RWE rating; -- INR2.0 bil. Commercial paper/short-term debt programmes* due on 90-180 days is withdrawn; and -- INR5,087.5 bil. Proposed working capital facilities# placed on RWE with Provisional IND BB+/RWE/Provisional IND A4+/RWE rating. *The CP will be carved out of fund-based working capital limits. Ind-Ra has withdrawn the rating as Wockhardt did not proceed with the instrument as envisaged. #The final rating will be assigned following the final issuance and the receipt of the final documentation, conforming to the information already received by Ind-Ra. Analytical Approach: The agency continues to take a consolidated view of Wockhardt and its 31 subsidiaries while arriving at the ratings since the subsidiaries also manufacture and sell pharmaceutical formulations. KEY RATING DRIVERS Divestment of Domestic Branded Business: The RWE follows Wockhardt's divestment of a portion of its domestic branded business to Dr. Reddy's Laboratories Limited ('IND AA+'/Stable) for INR18.50 billion. The divested business comprises 62 products in multiple therapy areas such as respiratory, neurology, vitamins, minerals and supplements, dermatology, gastroenterology, pain and vaccines along with the related sales and marketing teams, assets and liabilities, including a manufacturing facility at Baddi, Himachal Pradesh. The business being transferred had reported revenue of around INR3.77 billion (about 15% of the consolidated revenue) in 9MFY20. This transaction is likely to be completed by end-1QFY21 subject to the receipt of approvals from shareholders, lenders, and others under the applicable statutes. As per the management, the deal is in line with Wockhardt's strategic plan to shift from acute therapeutic areas to more chronic businesses such as anti-diabetes, central nervous system, etc. and also focus on its antibiotic portfolio of new chemical entities (NCEs). The company has also indicated that the divestment will ensure the availability of adequate liquidity to stimulate growth in the chronic domestic branded business, international operations, investments in biosimilars for the US market and in the company's global clinical trials of anti-infectives (new chemical entities approved under the coveted QIDP program of the United States Food & Drug Administration) and research & development (R&D) activities. Ease Immediate Liquidity Requirement: Wockhardt has a total debt repayment of INR8.4 billion in FY21, with around INR4.12 billion falling due over 1Q-2QFY21. As per the management, out of the total deal proceeds of INR18.5 billion (before taxes and expenses), INR4.12 billion is likely to be utilized for the repayment of term debt over 1Q-2QFY21 The remaining proceeds are likely to be utilized towards the following purposes: 1) working capital requirement to scale up the India business; 2) redemption of promoters' preference shares; 3) the balance amount to be used for conducting clinical trials molecules of Phase-II and III stages. Ind-Ra believes the proceeds would help the company to manage its debt repayment obligation over 1QFY21-2QFY21. However, the agency will continue to monitor timely debt repayments that would be due in the remaining part of FY21. Strong Improvement in Operating Profitability in 9MFY20: Wockhardt's consolidated domestic revenue fell by 42% YoY to INR7.06 billion in 9MFY20, due to lower sales in the quality generics division and in some of the therapeutic areas. The Indian business accounted for 28% of the company's total revenue during the period. Revenue from the US and EU businesses fell by 11% YoY and 10% YoY, respectively, during 9MFY20. Wockhardt's emerging markets business grew 7% YoY in 9MFY20. The company reported consolidated revenue and PAT loss of INR25.3 billion (down 20% YoY) and INR1.17 billion, respectively, in 9MFY20. However, the consolidated EBITDA grew by 108% YoY to INR2.08 billion in 9MFY20, with EBITDA margin of 8.2%. The company's R&D expenditure amounted to INR1.65 billion (7% of the sales; 11% if the capital expenditure of INR1.90 billion is included) during 9MFY20. During 9MFY20, Wockhardt repaid various long-term debt obligations worth INR7.68 billion (FY19: INR7.50 billion) as per the schedule. In 3QFY20, for the first time since 2QFY17, the company reported PAT of INR96 million due to a marked improvement in operational performance and cost rationalization. RATING SENSITIVITIES The RWE indicates that the ratings may be affirmed, downgraded or upgraded upon resolution. Ind-Ra will resolve the RWE within six months or upon evaluating the impact of the scheme of arrangement on the business and credit profile of Wockhardt, whichever is earlier. COMPANY PROFILE Incorporated in 1960, Wockhardt has operations in India, the US, the UK, Ireland, and France. Apart from finished dosage formulations, the company produces injectables, biopharmaceuticals, orals (tablets and liquids) and topical (creams and ointments). ********* 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 2020. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***