/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/230901.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, September 1, 2023, Vol. 26, No. 176 Headlines A U S T R A L I A ADHOLICS PTY: Second Creditors' Meeting Set for Sept. 5 ADMIKIRI PTY: Second Creditors' Meeting Set for Sept. 5 BODYGUARD LIFESCIENCES: First Creditors' Meeting Set for Sept. 5 BRIGHTE GREEN 2023-1: Moody's Gives B2 Rating to Class F-C Notes HALO FOODS: Wellness Food Company Goes Into Receivership ORGANICA GROUP: First Creditors' Meeting Set for Sept. 5 SK CAPITAL: Second Creditors' Meeting Set for Sept. 5 YOUPLA GROUP: ASIC Launches Proceedings Against Five Directors C H I N A CHINA AIRCRAFT: Moody's Affirms 'Ba1' CFR & 'Ba2' Issuer Ratings COUNTRY GARDEN: Posts Record Half-Year Loss Amid Default Fears ZHONGRONG INT'L: China Asks Citic to Examine Bank's Finances I N D I A BAASSFX: CRISIL Assigns B+ Rating to INR3.9cr Proposed LT Loan BHAGABATI STORE: CRISIL Lowers Rating on INR12.5cr Loan to D BHAGAT RAM: CRISIL Lowers Rating on INR6.0cr Cash Loan to D CALICO IMPEX: CRISIL Withdraws B Rating on INR8cr Export Loan CHUGH INDUSTRIES: CRISIL Lowers Rating on INR9cr Cash Loan to D DEEPAK COTTON: CRISIL Lowers Rating on INR14cr Cash Loan to D DEVKIRAN PAPER: CRISIL Lowers Long and Short Term Ratings to D GHOSE MUNDAL: CRISIL Withdraws B+ Rating on INR2.8cr LT Loan GURU KIRPA: CRISIL Lowers Rating on INR9.25cr Cash Loan to D INDIA: Promoters Clear Dues Faster Under the Threat of Insolvency INDRAYANI FERROCAST: CRISIL Withdraws B Rating on INR20cr Loan MAKS TECHNOLOGIES: CRISIL Lowers Long and Short Term Ratings to D NAVEEN FILTERS: CRISIL Moves B+ Debt Ratings to Not Cooperating NOBLE CASHEW: CRISIL Lowers Rating on INR12cr Cash Loan to D PINTU ENGINEERING: CRISIL Lowers Rating on INR8cr Loan to C RASHMI HOUSING: CRISIL Lowers Rating on INR10cr LT Loan to D RATNAM POULTRY: CRISIL Withdraws B Rating on INR15cr Loan RELIANCE CAPITAL: NCLT Reserves Order on Torrent Investment's Plea REMIRA MOTORS: CRISIL Moves B Debt Ratings to Not Cooperating REVA ENTERPRISE: CRISIL Keeps B- Debt Ratings in Not Cooperating SALASAR INDUSTRIES: CRISIL Withdraws D Rating on INR11cr Loan SHAKTI LIFESCIENCE: CRISIL Migrates B Rating from Not Cooperating SND INC: CRISIL Withdraws B Ratings on Long Term Debt THERDOSE PHARMA: CRISIL Lowers Rating on INR5.49cr LT Loan to D TIMES FERRO: CRISIL Lowers Rating on INR25.96cr Cash Loan to D TIRUPATI INDUSTRIES: CRISIL Lowers Rating on INR15cr Loan to D UNITED COKE: CRISIL Withdraws B Rating on INR5cr Cash Loan I N D O N E S I A ABM INVESTAMA: Fitch Affirms 'B+' Foreign Curr. IDR, Outlook Stable M A L A Y S I A ASPEN GROUP: Unit Gets MYR78MM Claim for Alleged Outstanding Debts M O N G O L I A MONGOLIAN MINING: Fitch Puts B Foreign Curr. IDR on Watch Negative N E W Z E A L A N D BEMA LIMITED: Creditors' Proofs of Debt Due on Oct. 2 CAHALITA TRADING: Creditors' Proofs of Debt Due on Sept. 29 HEIGHT-WORX LIMITED: Court to Hear Wind-Up Petition on Sept. 1 PP ENERGY: Court to Hear Wind-Up Petition on Sept. 1 RETAIL LINKS: PwC Appointed as Receivers and Managers S I N G A P O R E CEL-YISHUN (COMMERCIAL): Creditors' Proofs of Debt Due on Sept. 30 INDEX-EVERGREEN CARPENTRY: Court to Hear Wind-Up Bid on Sept. 15 POSH INVESTMENT: Creditors' Proofs of Debt Due on Oct. 2 TALENTX AI: Court Enters Wind-Up Order VODOKE PTE: Court to Hear Wind-Up Petition on Sept. 8 WINDER INVESTMENT: Creditors' Proofs of Debt Due on Sept. 30 - - - - - ================= A U S T R A L I A ================= ADHOLICS PTY: Second Creditors' Meeting Set for Sept. 5 ------------------------------------------------------- A second meeting of creditors in the proceedings of Adholics Pty Ltd has been set for Sept. 5, 2023 at 10:00 a.m. at the offices of SV Partners at 22 Market Street in Brisbane and via Microsoft Teams video conference. 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 Sept. 5, 2023 at 4:00 p.m. Terrence John Rose and Terry Grant van der Velde of SV Partners were appointed as administrators of the company on Aug. 1, 2023. ADMIKIRI PTY: Second Creditors' Meeting Set for Sept. 5 ------------------------------------------------------- A second meeting of creditors in the proceedings of Australian Managed Servicing Pty Ltd has been set for Sept. 5, 2023 at 10:00 a.m. via Zoom videoconferencing only. 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 Sept. 4, 2023 at 4:00 p.m. Bradd William Morelli and Trent Andrew Devine of Jirsch Sutherland were appointed as administrators of the company on Aug. 25, 2023. BODYGUARD LIFESCIENCES: First Creditors' Meeting Set for Sept. 5 ---------------------------------------------------------------- A first meeting of the creditors in the proceedings of Bodyguard Lifesciences Pty Ltd and International Scientific Pty Ltd will be held on Sept. 5, 2023, at 10:00 a.m. and 11:00 a.m. respectively, Level 11, 12 The Esplanade in Perth and via virtual meeting technology. Christopher James Pattinson and Bryan Kevin Hughes of Pitcher Partners were appointed as administrators of the company on Aug. 24, 2023. BRIGHTE GREEN 2023-1: Moody's Gives B2 Rating to Class F-C Notes ---------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to the notes to be issued by Perpetual Corporate Trust Limited in its capacity as the trustee of the Brighte Green Trust 2023-1. Issuer: Perpetual Corporate Trust Limited in its capacity as trustee of the Brighte Green Trust 2023-1 AUD146.60 million Class A-C Notes, Definitive Rating Assigned Aaa (sf) AUD12.00 million Class A-NC Notes, Definitive Rating Assigned Aaa (sf) AUD15.40 million Class B-C Notes, Definitive Rating Assigned Aa2 (sf) AUD8.20 million Class C-C Notes, Definitive Rating Assigned A2 (sf) AUD4.40 million Class D-C Notes, Definitive Rating Assigned Baa2 (sf) AUD8.00 million Class E-C Notes, Definitive Rating Assigned Ba2 (sf) AUD1.00 million Class F-C Notes, Definitive Rating Assigned B2 (sf) The AUD2.20 million Class G1-NC and AUD2.20 million Class G2-NC Notes are not rated by Moody's. The transaction is a securitization of a portfolio of Australian consumer Buy Now Pay Later (BNPL) and unsecured loan receivables originated by Brighte Capital Pty Ltd (Brighte, unrated). The majority of receivables are originated to homeowners to fund solar panel and home batteries installations. A smaller portion are originated to fund home improvement products and services, and to acquire energy efficient products. This is Brighte's fourth term securitization. RATINGS RATIONALE The definitive ratings take into account, among other factors: -- The evaluation of the underlying receivables and their expected performance. The portfolio is comprised of solar product-related and home improvement product-related loans extended to Australian consumer obligors. The vast majority of receivables have been extended to homeowners who have historically displayed lower default rates than non-home owners in comparable portfolios. In Moody's view, this is a significant credit strength of the transaction. -- The limited amount of historical data. Brighte was established in 2016, with significant origination growth beginning in 2018. The collateral performance data used in Moody's analysis reflects Brighte's short origination history — limited to the period between Q2 2017 and Q2 2022 — and does not cover a full economic cycle. -- The evaluation of the capital structure. The transaction features a sequential/pro rata paydown structure. The notes will be repaid on a sequential basis until the pro rata paydown conditions are satisfied, principal will be distributed pro rata among all Notes. Following the call date or if the pro rata conditions are otherwise not satisfied, the principal collections will be distributed sequentially starting with Class A-C and Class A-NC Notes. -- The availability of excess spread over the life of the transaction. The portfolio yield of 12.2% providing significant excess spread to cure portfolio losses. -- The liquidity facility in the amount of 2.00% of the rated note balance with a floor of AUD400,000. -- The interest rate swap provided by National Australia Bank Limited ("NAB", Aa3/P-1/Aa2(cr)/P-1(cr)). -- The experience of Brighte as servicer, and the back-up servicing arrangements with Perpetual Corporate Trust Limited. MAIN MODEL ASSUMPTIONS Moody's base case assumptions are a mean default rate of 3.25%, a recovery rate of 10.0% and a Aaa portfolio credit enhancement ("PCE") of 22.0%. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expect the portfolio to suffer in the event of a severe recession scenario. Expected defaults and PCE are parameters used by Moody's to calibrate its lognormal portfolio default distribution curve and to associate a probability with each potential future default scenario in its ABSROM cash flow model. Moody's assumed mean default rate is stressed compared to the extrapolated observed levels of default, estimated at 2.00%. The stress Moody's has applied in determining its mean default rate reflects the limited historical data available for Brighte's portfolio. It also reflects the current macroeconomic trends, and other similar transactions used as a benchmark. The PCE of 22.0% is broadly in line with other Australian consumer ABS deals and is based on Moody's assessment of the pool taking into account (i) historical data variability; (ii) the unsecured nature of the loans, (iii) the comparison with other Australian consumer loan and BNPL originators, and (iv) macroeconomic expectations. Methodology Underlying the Rating Action The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in December 2022. Factors that would lead to an upgrade or downgrade of the ratings: Up Levels of credit protection that are greater than necessary to protect investors against current expectations of loss could lead to an upgrade of the rating. Moody's current expectations of loss could be better than its original expectations because of fewer defaults by underlying obligors. The Australian job market is a primary driver of performance. Down Levels of credit protection that are insufficient to protect investors against current expectations of loss could lead to a downgrade of the ratings. Moody's current expectations of loss could be worse than its original expectations because of more defaults by underlying obligors. The Australian job market is a primary driver of performance. Other reasons for worse performance than Moody's expects include poor servicing, error on the part of transaction parties, a deterioration in credit quality of transaction counterparties, lack of transactional governance and fraud. HALO FOODS: Wellness Food Company Goes Into Receivership -------------------------------------------------------- News.com.au reports that an Australian company that produces wellness products for mums and a range of handcrafted fudge has gone into receivership. Halo Food Co Limited, trading on the ASX as HLF, has gone into administration with David Hardy, Ryan Eagle and Emily Seeckts from KMPG Australia appointed receivers on Aug. 25. A statement on the ASX on Aug. 25 also announced KordaMentha have been appointed as voluntary administrators. "The receivers have now assumed day-to-day control of the Halo Group," news.com.au quotes a KPMG spokesperson as saying. "An immediate sale campaign to recapitalise or acquire the assets of Halo Group has commenced." Halo Food is parent company to a number of entities, including Halo Manufacturing Pty Ltd, Halo Food Co. Trading Pty Ltd, and Omni Brands Pty Ltd. Brands under Halo Food include The Healthy Mummy, which produce wellness products for mums, "premium functional beverage brand" Tonik, powdered milk producers Key Dairy and Gran's luxury fudge makers. "Based in Sydney and Melbourne, Australia and Christchurch, New Zealand, Halo Food Co. is an established brand owner and manufacturer and exporter of formulated dairy and non-dairy nutritional products and health and wellness brands," reads the Halo Food website. Based in Sydney, Australia (ASX: HLF) -- https://halofoodco.com/ -- Halo Food Co. Limited, together with its subsidiaries, manufactures dairy, and health and wellness products in Australia, New Zealand, and internationally. It offers dairy and non-dairy nutritional based and formulated powdered products; healthy meal and snack solutions; protein beverages, including plant based beverages; and handcrafted fudges under the brands The Healthy Mummy, Tonik, KeyDairy, and Gran's. The company also provides contract manufacturing services for health and wellness blends, bottling, snacking, and dairy and sports nutrition powders. It offers its products through supermarkets and retail chains, as well as exports to international markets, including China, Hong Kong, Taiwan, Vietnam, and the Middle East. The company was formerly known as Keytone Dairy Corporation Limited and changed its name to Halo Food Co. Limited in November 2021. ORGANICA GROUP: First Creditors' Meeting Set for Sept. 5 -------------------------------------------------------- A first meeting of the creditors in the proceedings of Organica Group Pty Ltd will be held on Sept. 5, 2023, at 11:30 a.m. at St James Trust Building Meeting Room, Suite C5B, Ground Floor, St James Trust Building, 185 Elizabeth Street in Sydney and via virtual meeting technology. Angus Gordon of Macquarie Gordon & Co was appointed as administrator of the company on Aug. 24, 2023. SK CAPITAL: Second Creditors' Meeting Set for Sept. 5 ----------------------------------------------------- A second meeting of creditors in the proceedings of SK Capital Pty Ltd has been set for Sept. 5, 2023 at 11:00 a.m. via virtual meeting only. 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 Sept. 4, 2023 at 5:00 p.m. Rajiv Ghedia and Shumit Banerjee of Westburn Advisory were appointed as administrators of the company on Aug. 1, 2023. YOUPLA GROUP: ASIC Launches Proceedings Against Five Directors -------------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against five former directors and officers of the Youpla Group (formerly Aboriginal Community Benefit Fund) for breaches of their duties. The Youpla Group operated several funds providing funeral insurance, mostly marketed to indigenous Australians. ASIC Deputy Chair Sarah Court said, 'ASIC's case seeks to hold to account those involved in the alleged governance failures and director misconduct that impacted the First Nations people who were members of the Funds.' ASIC's case includes claims against Youpla Group directors and officers between September 2017 and November 2018, being directors Ronald Joseph Pattenden, Jonathan Glen Law, Michael Brendan Wilson, Bryn Elwyn Jones (CEO) and Geoffrey Peter Clayton (COO). ASIC alleges the directors and officers maintained insurance arrangements with Crown Insurance Services Limited (Crown), a Vanuatu-based company beneficially owned and controlled by Mr Pattenden and Mr. Law. ASIC alleges those arrangements were not in the interests of the Aboriginal Community Benefit Fund Entities (ACBF Entities) and stood to benefit Pattenden and Law.  ASIC further alleges that insuring with Crown left the ACBF Entities vulnerable to unaffordable premium increases (as occurred to ACBF 2 in September 2017). First Nations people continued to make premium payments to ACBF unaware of the risks to the viability of the funds and their ability to meet their commitments to members. 'First Nations people took up policies with ACBF to ensure their family members had cover for their funeral expenses. ASIC alleges the defendants maintained the arrangement with Crown which moved funds into an overseas company owned and controlled by two of the directors and did not act in the best interest of the ACBF Entities and members. 'The payments to Crown impacted the viability of the ACBF Entities and put at risk their ability to meet their commitments to members. 'Directors and officers must comply with their obligations, particularly when it comes to conflicts of interest,' concluded Ms Court. ASIC is seeking declarations of contraventions of s180, s181 and s182 of the Corporations Act, pecuniary penalty orders and orders disqualifying the defendants from managing corporations. The first case management hearing is listed for Sept. 7, 2023. In a separate proceeding, ASIC alleged ACBF caused substantial harm to First Nations people by falsely representing that it was owned or managed by Aboriginal persons and that its funeral insurance was approved by the First Nations community. The three ACBF companies relevant to today's proceedings were Aboriginal Community Benefit Fund No 2 Pty Ltd, ACBF Funeral Plans Pty Ltd and Community Funeral Plans Pty Ltd (ABCF Entities). ASIC has information on the Youpla Group and ACBF, including information on Government payments, making a complaint and ASIC court action. The Youpla Funeral Benefits Program looks to help the families of Fund members affected by the collapse. In October 2020, ASIC commenced proceedings in the Federal Court against ACBF Funeral Plans Pty Ltd and Youpla Group Pty Ltd for alleged misleading and deceptive conduct. The judgment has been reserved. In December 2022, ASIC took action to preserve the property of former ACBF director, Bryn Jones. Breaches of director's duties can attract a maximum penalty of AUD200,000 for each breach that occurred in the period 2017 to 12 March 2019. Seven Youpla Group entities went into liquidation between November 2021 and April 2022. Three of the Youpla Group entities in liquidation are registered funeral contribution funds under NSW State legislation and their winding up is regulated by NSW Fair Trading. ========= C H I N A ========= CHINA AIRCRAFT: Moody's Affirms 'Ba1' CFR & 'Ba2' Issuer Ratings ---------------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 corporate family rating and Ba2 foreign currency and local currency issuer ratings of China Aircraft Leasing Group Holdings Limited (CALC). The company's standalone assessment remains unchanged at ba3. In addition, Moody's has affirmed CALC Bonds Limited's backed long-term local currency and foreign currency senior unsecured medium-term note (MTN) program rating at (P)Ba2 and backed senior unsecured note rating at Ba2. Moody's has also affirmed CALC Bond 3 Limited's backed senior unsecured note rating at Ba2. The MTN program and notes are unconditionally and irrevocably guaranteed by CALC. CALC Bonds Limited and CALC Bond 3 Limited are incorporated in the British Virgin Islands and wholly-owned subsidiaries of CALC. Their principal activity is to act as fundraising vehicles for CALC. At the same time, Moody's has maintained the stable outlook for CALC, CALC Bonds Limited and CALC Bond 3 Limited. RATINGS RATIONALE The rating affirmation with a stable outlook reflects Moody's expectation that CALC's credit profile will remain stable over the next 12-18 months, supported by the recovery of the global aviation industry. The rating affirmation also reflects Moody's expectation that the company will remain important to China Everbright Group (CEG) and the Government of China (A1 stable), considering its ownership structure and role in the development of China's aviation and aircraft leasing sector. CALC's Ba1 CFR incorporates (1) the company's standalone assessment of ba3; (2) a one-notch uplift based on a moderate level of support from CEG and the group's largest subsidiary China Everbright Bank Company Limited (CEB, Baa2 stable, Baseline Credit Assessment: ba2); and (3) a one-notch uplift based on Moody's expectation of a moderate level of support from the Government of China, which Moody's expects to flow via CEG. CALC's standalone assessment of ba3 reflects the company's high leverage and refinancing needs. These weaknesses are mitigated by the recovery of the aviation market, the company's good client base supporting stable recurring profit and cash flow, and the continued liquidity support from CEG and its affiliates, which reduces liquidity risk. CALC's standalone credit profile is constrained by its high leverage financial policy. While the company's leverage will benefit from the sales of 64 aircraft in its order book, which was announced on August 14, 2023, Moody's forecasts its tangible common equity (TCE)/total managed assets (TMA) will stay at around 9% over the next 12-18 months, if the company is unable to further reduce its fleet size and absent an external capital injection. This ratio is still much lower than the average of more than 20% of the global peers that Moody's rates. Moody's expects CALC's financial performance to improve with a further recovery in air travel volumes and strengthening lease rates providing new lease opportunities and increasing aircraft valuation, which will in turn lift the company's revenue. However, its high leverage and high interest rate environment will continue to strain its profitability over the next 12-18 months. In the first half (1H) of 2023, the company's revenue and interest expenses increased 23% and 42% year on year, respectively, compared with those during 1H 2022. The company has a weak capital buffer to cover an inherent residual value risk to its aircraft. However, its China-focused client mix, narrow-body aircraft composition, aircraft aftermarket services and retirement solutions help it mitigate the credit risk and residual value risk of the aircraft. Due to fleet upgrade services, it acquired some mid to end-of life aircraft over the past three years. As a result, the average age of CALC's owned aircraft as of June 30, 2023 increased to 8.5 years from 7.8 years as of December 31, 2021. The fleet age will decrease over the next few years because the company will receive the delivery of a substantial number of aircraft from the order book and sell some from its existing fleet. While the company's high financing needs will be driven by its significant order book and pre-delivery payment, the sales of aircraft in the order book and liquidity support from CEG and its affiliates will continue to help CALC mitigate refinancing risk and liquidity pressure. The moderate level of affiliate support reflects China Everbright Limited (CEL, Baa3 negative)'s 38.1% ownership in CALC, CALC's strategic importance to CEG, as well as the track record of operational and financial support from CEL, CEB and CEG during the pandemic. The moderate level of government support reflects the importance of CALC's operations to CEG's "Four-Three-Three" strategy in developing a world-leading aircraft leasing company. CALC is the only platform within CEG that solely focuses on aviation and aircraft leasing, which is a core part of CEG's strategy. The one-notch difference between CALC's CFR and its issuer ratings reflects the fact that (1) some of CALC's assets reside at its fully owned onshore operating entity; and (2) a proportion of CALC's assets are encumbered for secured borrowings. CALC's senior unsecured debt is structurally subordinated to secured indebtedness and senior unsecured indebtedness at onshore level. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade CALC's CFR and issuer ratings if the company assumes greater strategic importance to CEG, indicating strengthening government support, or the company's standalone assessment significantly improves. CALC's standalone assessment could be upgraded if the company (1) significantly strengthens and maintains its TCE/TMA at around 12%; (2) improves its financial flexibility through increasing committed credit facilities and debt maturities coverage to more than 150%; (3) further reduces its secured debt to less than 30% of its total assets; and (4) maintains its solid profitability and asset quality metrics. Moody's could downgrade CALC's CFR and issuer ratings if (1) CEL is no longer the company's largest shareholder; (2) CALC's importance to and connection with CEG and its affiliates decline; (3) financial and liquidity support from CEG and its affiliates weaken; or (4) the company's financial metrics, including profitability, capital adequacy and debt maturities coverage, deteriorate materially. The principal methodology used in these ratings was Finance Companies Methodology published in November 2019. Headquartered in Hong Kong SAR, China, China Aircraft Leasing Group Holdings Limited is an aircraft lessor. It reported assets of HKD63 billion as of the end of June 2023. COUNTRY GARDEN: Posts Record Half-Year Loss Amid Default Fears -------------------------------------------------------------- Bloomberg News reports that Country Garden Holdings Co posted a record first-half loss, underscoring how China's real estate slump has brought the property giant to the brink of a debt default. The Foshan-based company posted a net loss of CNY48.9 billion in the six months ended June 30, compared with a profit of CNY612 million a year earlier, Bloomberg discloses. The developer warned of the loss - the biggest since its 2007 listing in Hong Kong - earlier this month. Once the country's biggest developer by sales, Country Garden is in a debt crisis that threatens to be worse than when peer China Evergrande Group defaulted because it has four times as many property projects, Bloomberg notes. In the latest sign of its cash crunch, the company announced plans earlier on Wednesday to pay down a loan by issuing US$34 million of shares. "With sales going downhill the earnings outlook is not going to have a significant turnaround," Bloomberg Intelligence analyst Kristy Hung said before the results were published. "It's going to suffer because of its exposure to lower cities where housing market sentiment is the weakest." About Country Garden Country Garden Holdings Company Limited is an investment holding company principally engaged in the sales of properties. The Company operates its business through five segments: Property Development segment, Construction Fitting and Decoration segment, Property Investment segment, Property Management segment and Hotel Operation segment. The Company's subsidiaries include Wuhan Country Garden Lianfa Investment Co., Ltd, Jurong Country Garden Property Development Co., Ltd and Chuzhou Country Garden Property Development Co., Ltd. As recently reported in the Troubled Company Reporter-Asia Pacific, Moody's Investors Service has downgraded Country Garden Holdings Company Limited's corporate family rating to Caa1 from B1 and its senior unsecured rating to Caa2 from B1. The rating outlook remains negative. The TCR-AP also reported that Fitch Ratings has downgraded Country Garden Services Holdings Company Limited's (CGS) Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and placed the rating on Rating Watch Negative (RWN). ZHONGRONG INT'L: China Asks Citic to Examine Bank's Finances ------------------------------------------------------------ Bloomberg News reports that China has asked two of the nation's biggest financial firms to examine the books of Zhongrong International Trust Co, potentially paving the way for a state-led rescue of the troubled shadow lender, according to people familiar with the matter. Bloomberg relates that Citic Trust Co, a unit of conglomerate Citic Group Corp, and CCB Trust Co, backed by China Construction Bank Corp, will lead the effort to stabilise operations at Zhongrong, said the people, who asked not to be identified discussing a private matter. It couldn't immediately be determined what might result from their involvement, though a similar examination by Citic of Huarong Asset Management Co led to a US$6.6 billion bailout of the bad-debt manager in 2021. According to Bloomberg, the plan underscores growing concern among policymakers about the US$2.9 trillion trust sector's impact on financial stability amid disappointing economic growth and a worsening property slump. It's also another sign of how Beijing is leaning on stronger state-owned companies to shore up the economy and keep risks in check. Shares of government-run banks slumped on Aug. 30 after Bloomberg reported they will cut rates on existing mortgages as part of official efforts to boost consumer spending. Zhongrong and closely linked wealth firm Zhongzhi Enterprise Group Co roiled markets earlier this month after halting payments on scores of investment products sold to wealthy individuals and companies, even sparking rare protests in Beijing, Bloomberg recalls. Prior to their troubles becoming public, the National Administration of Financial Regulation established a working group in July to examine risks at Zhongrong, people familiar with the matter said earlier, Bloomberg relays. Almost half of the funds raised by Zhongrong were funnelled to its parent or affiliated units, one of the people said. While losses have been building in the trust industry for years, Zhongzhi may pose the biggest challenge yet. According to Bloomberg, the private firm manages more than one trillion yuan and its interconnectedness with wealthy investors, struggling developers and other financial institutions has spurred concern that troubles are beginning to cascade across the financial industry. According to Bloomberg, China's trust industry is a key alternative funding source for weaker borrowers unable to get regular bank loans such as real estate developers and local government financing vehicles. Trusts pool money from clients and invest them into a variety of instruments and projects. The sector could face losses of the equivalent of US$38 billion, according to a Goldman Sachs Group Inc estimate, Bloomberg adds. About Zhongrong International Zhongrong International Trust Co Ltd provides financial services. The Company offers financial investment products screening, asset allocation, domestic and overseas investment, and other services. Zhongrong International Trust offers services in China. As reported in the Troubled Company Reporter-Asia Pacific in early June 2023, S&P Global Ratings withdrew its 'BB+/B' issuer credit rating on Zhongrong International Trust Co. Ltd. (Zhongrong Trust) and 'BB-/B' issuer credit rating on Zhongrong Trust's subsidiary, Zhongrong International Holdings Ltd. (ZRH), at the company's request. At the time of withdrawal, the outlook on the long-term issuer credit rating on Zhongrong Trust was stable. This reflected S&P's expectation that the China-based trust company will maintain its good market position and low leverage over the next 12-24 months. The ratings further reflect its contingent liabilities from implicit support of trust products. The outlook on the long-term issuer credit rating on ZRH was negative at the time of withdrawal. This reflected S&P's expectation of heightened investment risk and persistently weak liquidity for the company, and the possibility that its strategic link with its parent could weaken further. ========= I N D I A ========= BAASSFX: CRISIL Assigns B+ Rating to INR3.9cr Proposed LT Loan -------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Baassfx (Baassfx). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ Overdraft facility 1 CRISIL B+/Stable (Assigned) Proposed Long Term Bank Loan Facility 3.9 CRISIL B+/Stable (Assigned) Rupee Term Loan 0.1 CRISIL B+/Stable (Assigned) The ratings reflect the proprietor's long-standing experience in the audio industry and healthy financial risk profile. These strengths are partially offset by the firm's exposure to intense competition, volatile operating margins, and modest scale of operations. Analytical Approach Unsecured loans of INR32 lakhs outstanding as on 31st March 2023 is treated as debt and these loans are expected to be paid off in due course. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to intense competition: Due to the presence of a large number of organized & unorganized players in the segment driven by low barriers to entry, the industry is exposed to intense competition. Therefore, scale of operations determines the negotiating power with suppliers and customers, and ability to withstand business downturns. * Volatile operating margins: The EBITDA margins of the firm have remained volatile over the past 4 fiscals with a range of 9% to 14% since the firm's ability to pass on the fluctuations in material cost is limited, due to low negotiating power. Sustenance of healthy operating margins remains a key monitorable. * Modest scale of operations: The firm's business profile is constrained by its scale of operations in the intensely competitive audio service industry as reflected by its revenue of INR7.87 crores in fiscal 2023. The firm's scale of operations will continue to limit its operating flexibility over the medium term. Strengths: * Long standing experience of proprietor in the audio industry: Baassfx benefits from proprietor's extensive industry experience of over 15 years in audio industry. Backed by extensive industry experience and his understanding of industry dynamics, the firm has developed strong relations with customers and suppliers across various states of India such as Kerela, Kolkata, Delhi, Gujarat, Maharashtra, Goa, Andhra Pradesh, Odisha and other states. Extensive management experience and pan India presence should continue to support the business risk profile of the firm. * Healthy financial risk profile: The firm's capital structure is healthy due to moderate reliance on outside borrowings. The gearing and TOLANW ratios stand at 0.83 times and 1.6 times respectively as on March 31, 2023. Debt protection metrics are also adequate as reflected by interest coverage of 7.82 times and NCATD of 0.26 times. The debt protection metrics are sustainable on the account of moderate profitability. Liquidity: Stretched Bank limit utilisation has been high around 93% on an average basis for the last 12 months ending June 2023. Cash accruals are expected to be in the range of INR46-50 lakhs, which are tightly matched against annual repayment obligations of INR43-44 lakhs over the medium term. The firm has modest cash and bank balances of around INR2 lakhs as on 31st March 2023. Liquidity is further supported by timely and need-based support from promoters in the form of unsecured loans. Outlook: Stable CRISIL Ratings believes that Baassfx will benefit over the medium term from the promoter's extensive industry experience. Rating Sensitivity factors Upward factors: * Sustained improvement in the scale of operations along with healthy operating margins, leading to higher than expected cash accruals of above INR1 crore. * Improvement in working capital cycle. Downward factors: * Steady decline in scale of operations, or reduced operating margins, leading to lower cash accruals of below INR45 lakhs * Large debt funded capex leading to the weaking of financial risk profile. Baassfx was incorporated in 2007 by Mr Ranajit Patil. The firm manufactures and designs sound application products such as audio systems for cars, professional audio systems and enclosures. The manufacturing facility is located in Maharashtra, while assembly takes place in Goa. BHAGABATI STORE: CRISIL Lowers Rating on INR12.5cr Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded the ratings on the bank facilities of Bhagabati Store (BGS) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Cash Credit 12.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with BGS for obtaining information through letters and emails dated November 30, 2022 and January 30, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BGS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BGS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, CRISIL Ratings has downgraded the ratings on the bank facilities of BGS to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. BGS was set up as a proprietorship firm of Mr Ramesh Chandra Sahoo in 1986. The firm is an authorized distributor-cum-stockist of HUL in Puri (Odisha), and obtained the distributorship of Dabur for the same region in 2014. BHAGAT RAM: CRISIL Lowers Rating on INR6.0cr Cash Loan to D ----------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Bhagat Ram Motor Ways Private Limited (BRMPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' based on publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.0 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cooperating) Term Loan 4.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cooperating) CRISIL Ratings has been consistently following up with BRMPL for obtaining information through letters and emails dated May 10, 2022 and July 11, 2022 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of BRMPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on BRMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the publicly available information, CRISIL Ratings understands that the company has been classified as willful defaulter. Hence CRISIL Ratings has downgraded its rating on the bank facilities of BRMPL to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' based on publicly available information. BRMPL, incorporated in 2011, is an authorised dealer of GM's cars, spares, and accessories, and services GM's vehicles. BRMPL has three showrooms in Himachal Pradesh, at Una, Kangra, and Hamirpur. Its operations are managed by promoter Mr. Tushar Sharma. CALICO IMPEX: CRISIL Withdraws B Rating on INR8cr Export Loan ------------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of Calico Impex (Calico) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Export Packing Credit 8 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Foreign Bill Purchase 4 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Letter of Credit 3 CRISIL A4/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with Calico for obtaining information through letters and emails dated June 15, 2023, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of Calico. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Calico is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Calico continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. Calico was set up in 2005 by brothers Mr. Mohammad Ajmal and Mr. Ahmad Ahsan, and their sons, Mr. Rehan Ajmal, Mr. Farhan Ajmal, and Mr. Shahab Ahmad. The family has been in the leather business since 1960, when Mr. Mohammad Ajmal's father founded New Light Tannery Pvt Ltd. Calico manufactures finished leather and leather for upholstery and automotive. Its manufacturing plant is in Banthar, Uttar Pradesh. CHUGH INDUSTRIES: CRISIL Lowers Rating on INR9cr Cash Loan to D --------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Chugh Industries (CI) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as the entity has delayed servicing its debt obligation, as per publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Fund- Based Bank Limits 1.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Term Loan 1.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Warehouse Receipts 3 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with CI for obtaining information through letters and emails dated January 28, 2023, and March 13, 2023, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management of Chugh Industries, CRISIL Ratings did not receive any information on the financial performance or strategic intent of the entity. This restricts the ability of CRISIL Ratings to take a forward-looking view on the credit quality of the company. The rating action on CI is consistent with the criteria detailed in 'Assessing information adequacy risk'. Set up in 2013, CI, a proprietorship firm of Mr Sunny Chugh, mills, processes and packs basmati and non-basmati rice. The production facilities, at Jalalabad, Punjab, have a milling and sorting capacity of 4 tonne per hour. DEEPAK COTTON: CRISIL Lowers Rating on INR14cr Cash Loan to D ------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of Deepak Cotton Factory (DCF) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as the entity has delayed servicing its debt obligation, as per publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with DCF for obtaining information through letters and emails dated May 24, 2022, and July 11, 2022 among others, apart from telephonic communication. However, the issuer has remained non-cooperative. Investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'issuer not cooperating' as the rating has been arrived at without any interaction with the management and is based on best available, limited or dated information regarding the company. Such non-cooperation by a rated entity may be a result of weakening of its credit risk profile. Ratings with the 'issuer not cooperating' suffix lack a forward-looking component. Detailed Rationale Despite repeated attempts to engage with the management of DCF, CRISIL Ratings did not receive any information on the financial performance or strategic intent of the entity. This restricts the ability of CRISIL Ratings to take a forward-looking view on the credit quality of the company. The rating action on DCF is consistent with the criteria detailed in 'Assessing information adequacy risk'. DCF was set up in 2006, promoted by Mr. Tarsem Chand Bansal as a proprietorship firm. The firm operates a ginning unit for manufacturing cotton bales, and trades in cotton seeds. It also has an oil crushing unit. The manufacturing units are based in Mansa, Punjab, with an installed capacity of 250 bales per day, which is almost fully utilised. DEVKIRAN PAPER: CRISIL Lowers Long and Short Term Ratings to D -------------------------------------------------------------- CRISIL Ratings has downgraded the ratings on the bank facilities of Devkiran Paper Mills Private Limited (DPMPL) to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as there have been delays in the servicing of term debt obligations. As per information available in the public domain, there remains delinquency in company account. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Short Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with DPMPL for obtaining information through letters and emails dated August 24, 2022 and October 15, 2022 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of DPMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on DPMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the latest publicly available information, CRISIL Ratings has downgraded the ratings on the bank facilities of DPMPL to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating' as there have been delays in the servicing of term debt obligations. As per information available in the public domain, there remains delinquency in company account. Established in April 1985 in Bengaluru (Karnataka), DPMPL manufactures kraft paper. Its products are used for manufacturing corrugated boxes. Status of noncooperation with previous CRA DPMPL has not cooperated with Credit Analysis & Research Ltd.(CARE) which has classified it as non-cooperative vide release dated 10th April 2020. The reason provided by CARE Limited is non-furnishing of information for monitoring of ratings. GHOSE MUNDAL: CRISIL Withdraws B+ Rating on INR2.8cr LT Loan ------------------------------------------------------------ CRISIL Ratings has withdrawn the ratings on certain bank facilities of Ghose Mundal and Co (GMC), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.2 CRISIL B+/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) Proposed Long Term 2.8 CRISIL B+/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) CRISIL Ratings has been consistently following up with GMC for obtaining information through letter and email dated August 10, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of GMC. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on GMC is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of GMC to 'CRISIL B+/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of GMC on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. GMC was set up in 1904, by the late Mr Pulin Behari Mundal and his associate, the late Mr Dhiresh Chandra Ghosh; the firm, at that time, traded in sheet glass and plate glass. After the business was taken over by the late Mr Rash Behari Mundal and his family in 1935, the firm started trading in high-tensile fasteners. In addition to the branch in Kolkata, the firm set up another branch at Jamshedpur in 1998. Mr Samir Kumar Mundal, Mr Prashanta Kumar Mundal, Mr Sujit Kumar Mundal and Mr Abhishek Mundal are the current promoters. GURU KIRPA: CRISIL Lowers Rating on INR9.25cr Cash Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded its ratings on the bank facilities of Guru Kirpa Rice Mills (GKRM) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' as the entity has delayed servicing its debt obligation, as per publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.25 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cash Credit 4.75 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Inventory Funding 4.00 CRISIL D (ISSUER NOT Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GKRM for obtaining information through letters and emails dated October 21, 2022 and December 15, 2022 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management of GKRM, CRISIL Ratings did not receive any information on the financial performance or strategic intent of the entity. This restricts the ability of CRISIL Ratings to take a forward-looking view on the credit quality of the company. The rating action on GKRM is consistent with the criteria detailed in 'Assessing information adequacy risk'. GKRM, established in 2002, was set up as a partnership firm by Mr. Bhupinder Singh, Mr. Jatinder Singh, and Mr. Partap Singh. The firm is into milling and processing of basmati rice (Pusa 1121 quality). It has one processing unit at Jalalabad (Punjab), with milling and processing capacity of 30 tonnes per day. GKRM primarily sells rice and its byproducts in the domestic market. The majority of its customers are merchant exporters, who export the rice to the Middle East. Status of noncooperation with previous CRA: GKRM has not cooperated with Brickwork Ratings India Private Limited, which has classified it as issuer not cooperative through release dated May 8, 2020. The reason provided by Brickwork Ratings is non-furnishing of information for rating. INDIA: Promoters Clear Dues Faster Under the Threat of Insolvency ----------------------------------------------------------------- The Economic Times reports that just the threat of legal action has been pushing many promoters to pay their dues, according to Indian government data. Many companies' managements have reportedly paid back their dues shortly after lenders filed cases with the National Company Law Tribunal (NCLT), out of fear of losing control over their companies, ET relates. Creditors, banks and suppliers have recovered dues pretty much immediately after filing under the Insolvency & Bankruptcy Code (IBC), without even waiting for petitions to be admitted, according to ET. ET, citing data from the Insolvency & Bankruptcy Board of India (IBBI), discloses that NCLT benches have closed 6,811 cases after admission, while 25,565 cases were closed before they were ever admitted to the bench; a 3.7x difference. Once a petition is admitted to the NCLT, the tribunal appoints a resolution professional and a committee of creditors, leading to the ouster of promoters, the report notes. ET notes that since 2016 - when the law first came into force - settlements of over INR8.2 lakh crore have been paid out, as of May 2023. The government has seen claims of INR9.2 lakh crore, of which INR2.9 lakh crore has been recovered from 720 cases. Even after admission, around 1,900 cases saw a closure because of withdrawal, through appeals and reviews, or settlement. "A distressed asset has a life cycle. Its value gradually declines with time if distress is not addressed. The credible threat of the code, that a corporate debtor may change hands, has changed the behaviour of debtors. Thousands of debtors are resolving distress in the early stages," the IBBI said, according to a TOI report. There are also other factors at play in these rapid settlements, with a number of settlements coming after cases were filed by operational creditors, whose dues are smaller than those owed to big banks. Promoters often clear these dues - some of which may have been pending for years - due to their size, ET says. ET adds that around 80% of corporate insolvency resolution cases - with a default of under INR1 crore - were triggered by the operational creditors. In cases where the defaults were over INR10 crore, 80% of cases were intiated by financial creditors - banks, financial institutions and homebuyers in case of real estate. Among 6,811 cases admitted by NCLT up to June 2023, operational creditors triggered 49.5% or 3,369 cases, 44.6% was by financial creditors, with the rest coming from the corporate debtor or the company, ET notes. INDRAYANI FERROCAST: CRISIL Withdraws B Rating on INR20cr Loan -------------------------------------------------------------- CRISIL Ratings has withdrawn the ratings on certain bank facilities of Indrayani Ferrocast Private Limited (IFPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 5 CRISIL A4/Issuer Not Cooperating (Withdrawn) Cash Credit 20 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Letter of Credit 65 CRISIL A4/Issuer Not Cooperating (Withdrawn) Proposed Long Term 10 CRISIL B/Stable/Issuer Not Bank Loan Facility Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with IFPL for obtaining information through letters and emails dated March 25, 2023, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of IFPL. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on IFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of IFPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. CRISIL Ratings has withdrawn its ratings on the bank facilities of IFPL on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Established in 2002, IFPL manufactures steel billets at its unit in Pune (Maharashtra). The company is promoted by Goyal, Oswal and Poddar families. MAKS TECHNOLOGIES: CRISIL Lowers Long and Short Term Ratings to D ----------------------------------------------------------------- CRISIL Ratings has downgraded its ratings on the bank facilities of MT to 'CRISIL D/CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. The rating action is on the account of delays in debt servicing which came to CRISIL's ratings from external, public information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Short Term Rating - CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL A4 ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with MT for obtaining information through letter and email dated June 15, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of MT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MT is consistent with 'Assessing Information Adequacy Risk'. MT was established as a proprietorship firm in Pune (Maharashtra) in 2008, and reconstituted as a partnership firm in April 2013. It manufactures tin-copper wires and partners Mr Nilesh Jain and Mr Pradeep Jain, manage its operations. NAVEEN FILTERS: CRISIL Moves B+ Debt Ratings to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Naveen Filters Private Limited (NFPL) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 0.31 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Non-Fund Based Limit 2.5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with NFPL for obtaining information through letter and email dated July 31, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NFPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of NFPL to 'CRISIL B+/Stable Issuer not cooperating'. NFPL was set up by Mr B D Kataria as a proprietary concern, Naveen Filter Industries, in 1979; it was reconstituted as a private limited company with the current name in 2005. The company manufactures oil, gas and air filters, which are used in the auto industry. It has manufacturing units at Swaroop Nagar in New Delhi and Rai in Haryana. It is certified by Association of State Road Transport Undertakings. NOBLE CASHEW: CRISIL Lowers Rating on INR12cr Cash Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded its rating on the bank facilities Noble Cashew Industries (NCI) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable/Issuer Not Cooperating' due to delays in servicing debt obligation. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 1 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Buyer Credit Limit 2 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Cash Credit 12 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with NCI for obtaining information through letters and emails dated July 12, 2022, September 14, 2022 and 21st August 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of NCI, which restricts CRISIL Ratings ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that the rating action NCI consistent with 'Assessing Information Adequacy Risk'. Set up in 1982 by Mr. Jacob.C. Luke and Mr. Biju Luke Jacob, NCI is engaged in processing of raw cashew nuts and sale of cashew kernels. The firm is based out of Kollam, Kerala. PINTU ENGINEERING: CRISIL Lowers Rating on INR8cr Loan to C ----------------------------------------------------------- CRISIL Ratings has revised its rating on the long term bank facilities of Pintu Engineering Construction Private Limited (PECPL) to 'CRISIL C Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' while the rating on the short term bank facilities continues to be 'CRISIL A4 Issuer Not Cooperating' as there have been delay in repayments of interest and debt obligations. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Bank 2 CRISIL A4 (ISSUER NOT Guarantee COOPERATING) Proposed Cash 8 CRISIL C (ISSUER NOT Credit Limit COOPERATING; Revised from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with PECPL for obtaining information through letter and email dated March 25, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of PECPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PECPL is consistent with 'Assessing Information Adequacy Risk'. Incorporated in 1990, PECPL, promoted by Mr Sanjay Dalmia, constructs roads and bridges for the Public Works Department and Rural Works Department in Jharkhand and Orissa. RASHMI HOUSING: CRISIL Lowers Rating on INR10cr LT Loan to D ------------------------------------------------------------ CRISIL Ratings has downgraded its ratings on the bank facilities of Rashmi Housing Spv Private Limited (RHSPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'. The rating action is on the account of delays in debt servicing which came to CRISIL's ratings from external, public information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Long Term 1.25 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Term Loan 10.00 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with RHSPL for obtaining information through letters and emails dated May 10, 2022 and July 11, 2022 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RHSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RHSPL is consistent with 'Assessing Information Adequacy Risk'. RHSPL was set up in 2007 by the Bosmiya family of Mumbai. The promoter family has been undertaking residential and commercial real estate development, and broking and construction contracts since 1993, through the Rashmi group, which is managed by brothers Mr. Deepak Bosmiya, Mr. Yogesh Bosmiya, Mr. Hemendra Bosmiya, and Mr. Ashok Bosmiya. RHSPL is constructing a project in Vasai called Rashmi Lakeview, comprising eight residential and one commercial building with total saleable area of nearly 1 million square feet. RATNAM POULTRY: CRISIL Withdraws B Rating on INR15cr Loan --------------------------------------------------------- CRISIL Ratings has withdrawn the ratings on certain bank facilities of Ratnam Poultry Private Limited (RPPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Open Cash Credit 15 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Proposed Long Term Bank Loan Facility 2.2 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Working Capital Term Loan 2.8 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with RPPL for obtaining information through letter and email dated August 10, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RPPL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on RPPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the ratings on the bank facilities of RPPL to 'CRISIL B/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of RPPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL Rating's policy on withdrawal of its rating on bank loan facilities. RPPl was set up in 1986 by Mr M P Seshaiah and his family members. The company is engaged in poultry farming activities in Hyderabad. Revenue is mainly derived from the sale of commercial eggs, and sale of day-old chicks. RELIANCE CAPITAL: NCLT Reserves Order on Torrent Investment's Plea ------------------------------------------------------------------ The Economic Times reports that the National Company Law Tribunal (NCLT) on Aug. 30 reserved its order on Torrent Investment's plea against lenders accepting the resolution plan of Indusind International Holdings (IIHL), the investment arm of the Hinduja Group, to take over Anil Ambani-promoted Reliance Capital. In its appeal, Torrent Investment said the matter is pending with the Supreme Court and if the tribunal approves IIHL's INR9,650 crore resolution plan it will become infructuous if the apex court rules against the the Committee of Creditors (CoC) decision on the extended challenge mechanism. However, the counsel for the administrator said, the apex court did not stay the proceedings on NCLAT's order on the extended challenge mechanism, ET relates. After hearing both counsels, the NCLT bench consisting of Virendrasingh Bisht and Prabhat Kumar reserved the order on Torrent Group's appeal. NCLT on February 2, allowed Torrent Investments' plea challenging bankers' decision to hold a fresh round of auction for the takeover of Reliance Capital, ET recalls. However, in March, NCLAT allowed the CoC to hold an extended challenge mechanism or second round of auction in the insolvency case overturning the NCLT ruling, which had declared the extended challenge round proposed by Reliance Capital lenders illegal. ET relates that NCLAT ruled that the CoC reserved the power to renegotiate the bid amount, or to call for another round of auction in its commercial wisdom. Torrent Investments had emerged as the highest bidder with a resolution plan of INR8,640 crore. However, post the conclusion of the second round, IIHL sent lenders a revised bid of close to INR9,000 crore in net present value (NPV) terms, prompting the lenders to seek another round of bidding, which was challenged by Torrent in NCLT. However, lenders had subsequently moved the NCLAT against the ruling. Torrent Investment then filed a plea before the Supreme Court for an urgent hearing. On March 20, the apex court refused to stay the order by NCLAT on another round of auction for the debt-ridden Reliance Capital. About Reliance Capital Headquartered in Mumbai, India, Reliance Capital Limited -- https://www.reliancecapital.co.in/ -- a non-banking financial company, primarily engages in lending and investing activities in India, Singapore, and Mauritius. The company operates through Finance & Investment, General Insurance, Life Insurance, Commercial Finance, Home Finance, and Others segments. It offers life, health, and general insurance products; brokerage and distribution services, including stock broking, wealth management, and third party distribution; and commercial and home finance services, such SME, retail, microfinance, renewable, affordable housing, and home loans, as well as loans against property and construction finance. The company also provides asset reconstruction, institutional broking, and proprietary investments services, as well as other financial and allied services. The company was formerly known as Reliance Capital & Finance Trust Limited and changed its name to Reliance Capital Limited in January 1995. On Nov. 29, 2021, the Reserve Bank of India superseded Reliance Capital's board following payment defaults and governance issues, and appointed Nageswara Rao Y as the administrator for the bankruptcy process, Financial Express said. The regulator also filed an application for initiation of Corporate Insolvency Resolution Process (CIRP) against the company before the National Company Law Tribunal's (NCLT) Mumbai bench. In an order dated Dec. 6, 2021 of the National Company Law Tribunal, Mumbai (NCLT), corporate insolvency resolution process has been initiated against Reliance Capital as per the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. Reliance Capital owes its creditors over INR19,805 crore, majority of the amount through bonds under the trustee Vistra ITCL India, The Economic Times of India said. In February 2022, RBI appointed administrator invited EoIs for sale of Reliance Capital assets and subsidiaries. REMIRA MOTORS: CRISIL Moves B Debt Ratings to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Remira Motors Private Limited (RMPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Rating Migrated) Electronic Dealer 6.5 CRISIL B/Stable (ISSUER NOT Financing Scheme COOPERATING; Rating Migrated) (e-DFS) Proposed Long Term 9 CRISIL B/Stable (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with RMPL for obtaining information through letter and email dated July 19, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RMPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RMPL to 'CRISIL B/Stable Issuer not cooperating'. RMPL, incorporated in 2016, is an authorised dealer of the vehicles of Maruti Suzuki India Ltd. It also purchases and sells preowned cars. The company operates through showrooms and service centres in Moga, Punjab. Mr Amit Singh Brar and Mr Jagmohan Singh Brar are the promoters of the company. REVA ENTERPRISE: CRISIL Keeps B- Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Reva Enterprise (RE) continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.5 CRISIL B-/Stable (Issuer Not Cooperating) Term Loan 8 CRISIL B-/Stable (Issuer Not Cooperating) Working Capital 2.25 CRISIL B-/Stable (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with RE for obtaining information through letter and emails dated July 14, 2023 among others, apart from telephonic communication. However, the issuer has remained non cooperative and the ratings on bank facilities of RE continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. Earlier, the entity did not provide the No Default Statements (NDS) for the three consecutive months. Therefore, the issuer was classified as 'non cooperative' in line with Clause 11. 3 of SEBI CRA Operational Circular dated January 06, 2023. 'The investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of RE, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RE is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RE continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. RE manufactures optical whitening agents. Mr Pranesh M Maru and Mr Mahesh Chothani are the partners. The manufacturing facility is in Bharuch, Gujarat, with installed capacity of 2,400 tonne per annum. The firm was established in year 2015. SALASAR INDUSTRIES: CRISIL Withdraws D Rating on INR11cr Loan ------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Shree Salasar Industries Private Limited (SSIPL) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 11 CRISIL D/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with SSIPL for obtaining information through letters and emails dated November 24, 2022 and January 16, 2023, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of SSIPL. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of SSIPL continues to be 'CRISIL D Issuer Not Cooperating'. SSIPL, incorporated in September 2013, manufactures ferrosilicon. The manufacturing facility at Naharlagun, Arunachal Pradesh, has a capacity of 8800 tonne per annum. The company took over the operations of SSIPL (a partnership firm set up in 2008) with effect from September 10, 2013. SHAKTI LIFESCIENCE: CRISIL Migrates B Rating from Not Cooperating ----------------------------------------------------------------- Due to inadequate information and in line with the Securities and Exchange Board of India guidelines, CRISIL Ratings had migrated its rating on the bank facilities of Shakti Lifescience Pvt Ltd (SLPL) to 'CRISIL B/Stable Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information for a comprehensive review of the rating. Consequently, CRISIL Ratings has migrated its rating on the bank facilities of SLPL to 'CRISIL B/Stable' from 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.90 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') Term Loan 6.75 CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING') The rating continues to reflect modest scale of operations and below-average financial risk profile of SLPL. These weaknesses are partially offset by the extensive experience of the promoters in the bulk drugs industry. Analytical approach Unsecured loans (INR15.37 crore as on March 31, 2023) extended by the promoters have been treated as neither debt nor equity as the funds are likely to remain in the business over the medium term. Key rating drivers and detailed description Weaknesses: * Modest scale of operations: SLPL commenced commercial operations in December 2018; however, the company received all mandatory approvals and picked up pace in fiscal 2022. Revenue has been modest owing to the initial stage of the business but is likely to increase over the medium term, aided by expansion of facilities and the expectation to complete the stability procedures for drugs. * Below-average financial risk profile: Financial risk profile has been weak but will remain partially supported by the need-based funds extended by the promoters. Net worth (though modest) turned positive at INR1.24 crore as on March 31, 2023, and gearing was high at 5.44 times. Debt protection metrics were subdued, with interest coverage ratio of 1.71 times and net cash accrual to total debt ratio of 0.40 times in fiscal 2023. Strength: * Extensive experience of the promoters: The promoters have two decades of experience in the bulk drugs industry; their strong understanding of market dynamics, healthy relationships with suppliers and customers and timely, need-based funding support should boost the business. Liquidity: Stretched Bank limit utilization was high at 90% for the 12 months through July 2023.Cash accrual is projected at INR1.3-2.0 crore per annum, against yearly repayment obligation of INR0.6 crore over the medium term. Outlook: Stable SLPL will continue to benefit from the extensive experience of its promoters. Rating sensitivity factors Upward factors: * Substantial and sustainable increase in revenue and profitability, leading to cash accrual more than INR1.5 crore. * Improvement in the financial risk profile Downward factors: * Lower-than-expected margin, resulting in continued suppressed cash accrual * Weakening of financial and liquidity risk profiles; interest coverage ratio less than 1 time on continued basis SLPL was set up in 2015 as a partnership between Mr Dahyabhai Patel, Mr Babubhai Patel, Mr Milind Patel, Mr Jignesh Amin, and Mr Bhavin Shah. The firm commenced commercial operations from December 2018 and got reconstituted into a private-limited company in December 2021. SLPL manufactures active pharmaceutical ingredients at its facility in Boisar, Maharashtra. SND INC: CRISIL Withdraws B Ratings on Long Term Debt ----------------------------------------------------- Due to inadequate information, CRISIL Ratings, in line with SEBI guidelines, had migrated the ratings of SND Inc (SND) to 'CRISIL B/Stable/CRISIL A4/Issuer Not Cooperating'. CRISIL Ratings has withdrawn its ratings on bank facility of SND following a request from the company and on receipt of a 'no dues certificate' from the banker. Consequently, CRISIL Ratings is migrating the ratings on bank facilities of SND to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL B/Stable/CRISIL A4/Issuer Not Cooperating'. The rating action is in line with CRISIL Ratings' policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Rating - CRISIL B/Stable (Migrated from 'CRISIL B/Stable ISSUER NOT COOPERATING'; Rating Withdrawn) Short Term Rating - CRISIL A4 (Migrated from 'CRISIL A4 ISSUER NOT COOPERATING; Rating Withdrawn) SND was set up in 2005 as a proprietorship concern of Mr Vikas Gupta; it got reconstituted into a partnership firm from fiscal 2020 with Mr Gupta's wife, Ms Aparna Gupta, joining the business. The firm is based in Noida and manufactures and exports readymade garments for women to Spain, Italy, Mexico and Argentina. THERDOSE PHARMA: CRISIL Lowers Rating on INR5.49cr LT Loan to D --------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Therdose Pharma Private Limited (TPPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B/Stable Issuer Not Cooperating' based on publicly available information. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.6 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Cash Credit 3.5 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Long Term Loan 4.41 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') Proposed Long Term 5.49 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with TPPL for obtaining information through letter and email dated June 15, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of TPPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TPPL is consistent with 'Assessing Information Adequacy Risk'. Established in 2003 and based in Hyderabad (Telangana), TPPL is engaged in research, development and marketing in the oncology segment. TPPL is promoted by Dr. Teja Bulusu, Dr. Nagesh Palepu and Mrs. Lakshmi. TIMES FERRO: CRISIL Lowers Rating on INR25.96cr Cash Loan to D -------------------------------------------------------------- CRISIL Ratings has downgraded the rating of Times Ferro Alloys Private Limited (TFAPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating' as company has delayed servicing its debt obligation. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 25.96 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Corporate Loan 4.47 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Funded Interest 1.89 CRISIL D (ISSUER NOT Term Loan COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Term Loan 2.49 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') Working Capital 3.92 CRISIL D (ISSUER NOT Term Loan COOPERATING; Downgraded from 'CRISIL B-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with TFAPL for obtaining information through email dated March 31, 2023 and August 23, 2023 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the firm. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of the entity, which restricts its ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes the rating action on TFAPL is consistent with 'Assessing Information Adequacy Risk' Based on the best available information, CRISIL Ratings has downgraded the rating to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B-/Stable Issuer Not Cooperating' as company has delayed servicing its debt obligation. TFAL was set up in 2008 by Mr. T C Agarwal. It produces ferrous alloys such as silico manganese and Ferro manganese. The company's production facilities are in Durgapur (West Bengal). TIRUPATI INDUSTRIES: CRISIL Lowers Rating on INR15cr Loan to D -------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the bank facilities of Tirupati Industries - Rajkot (TI) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating.' Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 0.25 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 5.75 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Term Loan 4.75 CRISIL D (ISSUER NOT COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with TI for obtaining information, through letters and emails dated July 12 and September 14, 2022, among others, apart from telephonic communication. However, the issuer has remained non-cooperative. 'Investors, lenders and all other market participants should exercise due caution with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non-co-operation by a rated entity may be a result of deterioration in its credit risk profile. Ratings with 'ISSUER NOT COOPERATING' suffix lack a forward-looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings has not received any information on either the financial performance or strategic intent of TI, which restricts the ability of CRISIL Ratings to take a forward-looking view on the firm's credit quality. Based on the last available information, CRISIL Ratings has downgraded its rating on the bank facilities of TI to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating.' The downgrade reflects the fact that the firm has defaulted on its obligation and is in the willful defaulters list. CRISIL Ratings believes the rating action is consistent with the criteria listed in 'Assessing information adequacy risk'. TI was set up as a partnership firm in 2014 by brothers Mr Ashish Talaviya and Mr Ashwin Talaviya, and their family members. It is based in Rajkot, Gujarat, and extracts groundnut oil and produces de-oiled cakes. UNITED COKE: CRISIL Withdraws B Rating on INR5cr Cash Loan ---------------------------------------------------------- CRISIL Ratings has withdrawn its ratings on the bank facilities of United Coke Private Limited (UCPL; part of the UB Aggarwal group) on the request of the company and receipt of a no objection certificate from its bank. The rating action is in line with CRISIL Ratings' policy on withdrawal of its ratings on bank loans. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B/Stable/Issuer Not Cooperating (Withdrawn) Letter of Credit 30 CRISIL A4/Issuer Not Cooperating (Withdrawn) CRISIL Ratings has been consistently following up with UCPL for obtaining information through letters and emails dated February 25, 2023 and April 29, 2023, 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 with reference to the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived at without any management interaction and is based on best available or limited or dated information on the company. Such non co-operation by a rated entity may be a result of deterioration in its credit risk profile. These ratings with 'ISSUER NOT COOPERATING' suffix lack a forward looking component.' Detailed Rationale Despite repeated attempts to engage with the management, CRISIL Ratings failed to receive any information on either the financial performance or strategic intent of UCPL. This restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on UCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of UCPL continues to be 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'. AAC is owned and managed by Mr Balkrishna Aggarwal and his family members. It operates a steel rolling mill, which produces mild steel beams, channels, and angles, and trades coking coal (as per requirement of UCPL). GAS, set up in 1997, is owned and managed by Mr Sukesh Aggarwal (serving as the honorary joint secretary in Ship Recycling Industrial Association of Alang), and Mr Balkrishna Aggarwal. The entity is primarily involved in ship breaking. The business operations are carried out from Bhavnagar (Gujarat) and the ship-breaking activity is conducted at the plot leased by the Gujarat Maritime Board in the Alang Ship Recycling Yard. HIPL, acquired in fiscal 2007, is involved in steel rolling and manufacturing of mild steel beams, channels, and angles, at Ghangli in Bhavnagar. UCPL produces LAM coke. The business operations are carried out from Bhavnagar. The manufacturing unit is situated in Anjar, near Kandla port, in Gujarat Status of non cooperation with previous CRA: VCPL has not cooperated with Brickwork Ratings India Private Limited which has classified it as issuer not cooperative vide release dated Jan 18th, 2023. The reason provided by Brickwork Ratings is non-furnishing of information for monitoring of ratings. ================= I N D O N E S I A ================= ABM INVESTAMA: Fitch Affirms 'B+' Foreign Curr. IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed PT ABM Investama Tbk's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable. Fitch has also affirmed ABM's outstanding senior unsecured US dollar notes at 'B+' with a Recovery Rating of 'RR4'. The affirmation reflects its expectation that ABM's business profile will remain in line with its rating. ABM benefits from increasing overburden (OB) removal volumes at its coal-contracting subsidiary, PT Cipta Kridatama (CK), although this is partly offset by declining profitability of its coal mining segment. Fitch expects ABM's financial profile to remain strong for its rating, with net leverage, measured by net adjusted debt/EBITDAR, remaining below 2.0x (2022: 1.4x) over the medium term, based on its coal-price assumptions. KEY RATING DRIVERS Rising OB Volume: Fitch expects CK's OB volume to reach about 270 million bank cubic metres (mbcm) by 2024 (1H23: 131mbcm; 2022: 203mbcm), on clients' higher planned output and a potential new contract by end-2023. Fitch expects CK's OB volume to benefit from ABM's 30% stake in PT Golden Energy Mines Tbk (GEMS, BB-/Stable). GEMS' key mine, PT Borneo Indobara (BIB), has a competitive cost position and Fitch expects it to drive GEMS' annual coal output to 50 million tonnes (MT) by 2025 (1H23: 20.4MT; 2022: 38.4MT). Fitch expects BIB to make up 25% of CK's OB volume from 2024 (2022: 7%). ABM expects CK's OB volume to continue rising after reaching 300mbcm in 2024. Fitch's lower volume forecasts are based on expectations that as coal prices moderate, coal miners with higher cost positions will not be able to sustain the volume addition seen in the last two years, when commodity prices were at record highs. Some of CK's key customers, excluding GEMS, operate mines with relatively high costs. That said, miners may have flexibility to modify plans to manage costs when coal prices are weak. Strong Financial Profile Despite Expansion: Fitch expects ABM's cashflow to be adequate to support its investments and strong financial profile. ABM plans capex of USD360 million at CK in 2023-2024 (2022: USD240 million), including expansion and maintenance, for which it raised USD170 million of new debt in 1H23 and a USD125 million bank loan in 2022. Fitch believes ABM's expansion plan is supported by relationships with affiliates, including PT Trakindo Utama, a long-term distributor of Caterpillar Inc. (A+/Stable), which provides most of the equipment, spare parts and servicing for ABM's coal-contracting business. Weakening Coal-Mining Profitability: Fitch forecasts the profitability (EBITDA/ tonne) of the coal mining segment to plunge to around USD6 from a multi-year high of USD26 in 2022 due to falling coal prices and reserve depletion at ABM's PT Tunas Indi Abadi (TIA) mine by 2024. ABM's other mines - PT MIFA Bersaudara and PT Bara Energi Lestari (BEL) - have reserve lives of around 20 years, but produce lower calorific value coal, resulting in lower profitability. Fitch expects production volume to remain at about 12MT (1H23: 6MT, 2022: 12.7MT), with higher volume at MIFA and BEL offsetting TIA's decline. ABM's investment plans include acquisition of coal mines to augment its coal mining segment. Fitch will treat such acquisitions as event risk. Regulatory Risk Manageable: There are risks to growth in ABM's coal mining segment because MIFA and BEL may not be able to comply with domestic market obligations (DMO) to supply 25% of their coal locally given their low calorific value coal and remote geographic location, which results in poor domestic demand. However, Fitch believes the risk is manageable and ABM pays a penalty for non-compliance in line with the regulations. Consistent Dividends from GEMS: Fitch expects ABM to receive annual dividends of USD90 million-125 million from GEMS over the medium term. GEMS has consistently paid a minimum of 80% of its free cash flow as dividends. Fitch expects the dividend income from GEMS to comfortably cover servicing of the amortising bank loan raised by ABM to buy a 30% stake in GEMS in 3Q22. Integrated Business Model: ABM benefits from the synergies created by its integrated business model, with four businesses across the value chain: coal-mining contracting, coal mining, logistics and engineering. However, the majority of earning are linked to thermal coal, with the coal-contracting business and coal mines together accounting for more than 75% of EBITDA. DERIVATION SUMMARY ABM's closest peer is PT Bukit Makmur Mandiri Utama (BUMA, BB-/Stable). BUMA has a stronger business profile than ABM supported by its higher market share, stronger customer base, and greater geographic and commodity diversification. BUMA, as Indonesia's second-largest mining contractor, has an annual OB volume twice that of ABM. Scale is an important consideration in this industry, as larger coal players typically have a better ability to sustain operations through market downturns. ABM, however, benefits from diversification across business segments, including coal mining operations, and a stronger financial profile. Nevertheless, Fitch expects ABM to remain highly exposed to thermal coal over the foreseeable future while BUMA will likely benefit from a small but increasing contribution from its metallurgical coal contracting business in Australia. Also, ABM's core contracting business is expected to remain smaller than BUMA's despite its expansion, justifying a one-notch difference in its credit assessment. KEY ASSUMPTIONS - Newcastle coal price in line with Fitch's price deck: 2023: USD165/tonne; 2024: USD95/tonne, 2025: USD 85/tonne and 2026: USD75/tonne. ABM's coal prices are adjusted for calorific value - OB volume to reach 270mbcm by 2024 and decline by 5% in 2025 - Coal mining sales volume to remain around 12MT over the medium term - Cumulative capex of around USD410 million during 2023-2025 - Average annual dividend pay-out of 35% of previous year's net income until 2024 Recovery Rating Assumptions: The recovery analysis assumes that ABM would be re-organised as a going concern in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. - ABM's going-concern EBITDA is based on the average EBITDA Fitch expects during 2025-2026 derived using mid-cycle coal price assumptions of Fitch, which is stressed by 15% to reflect the operational risks that can mainly arise from a steep decline in OB removal volumes. - An enterprise value/EBITDA multiple of 3.0x is applied to the going-concern EBITDA to calculate a post-reorganisation enterprise value. - Fitch assumes net additional value from the minority stake in GEMS of around USD119 million, based on GEMS' 2025-2026 average EBITDA, 3.5x multiple, and 10% administrative claim, net of USD298 million of outstanding bank loans raised to acquire stake in GEMS. - There will be structural subordination for the notes as per Fitch's criteria, as the acquisition loan is secured by GEMS' shares and the dividend distribution waterfall under the loan agreement ensures dividend income from GEMS will first be utilised for servicing the acquisition loan before being accessible to ABM. - In the distribution waterfall, Fitch has assumed prior-ranking debt, including a short-term loan of USD55.6 million, USD45 million from tranche B of the syndicated facility, and USD54.5 million of loans at MIFA, as of end-June 2023 will be repaid before ABM's senior unsecured US dollar bonds. - The assumptions result in a recovery rate corresponding to a Recovery Rating of 'RR3'. However, ABM operates in Indonesia, which Fitch classifies as under Group D of jurisdictions, which means the Recovery Rating for ABM's senior debt is capped at 'RR4'. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - A sustained improvement in ABM's coal mining or contracting business driven by larger scale and better customer profile, while maintaining an appropriate financial profile, and - Evidence of access to diversified sources of funding on a sustainable basis. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Deterioration in the company's core operating segment, including failure to retain major customers. - Earning generation falling short of its expectations, leading to a sustained deterioration in credit metrics, including EBITDAR adjusted net leverage at above 3.0x (2022: 1.4x) or EBITDAR/interest + rent expense at below 2.0x (2022: 5.8x). - Evidence of weakened external funding access. LIQUIDITY AND DEBT STRUCTURE Near-Term Liquidity Comfortable; Tightening Funding Access: ABM's liquidity benefits from a well spread-out debt maturity from the amortising nature of most of its debt. Its annual debt maturity will remain below USD210 million until 2026, when its only US dollar note with outstanding balance of USD160 million matures. ABM's cash balance stood at about USD208 million at end-June 2023, and Fitch expects ABM to generate strong average annual cash flow from operations of USD300 million. The tightening funding access for coal companies due to rising ESG concerns is likely to affect ABM over the medium term, especially for refinancing its USD160 million bond due in 2026. Fitch expects ABM to rely on domestic banks for refinancing the US dollar bonds as the absence of an energy transition strategy limits ABM's funding diversity. ABM's funding, except the USD160 million offshore bond, is mainly from domestic banks, which, in its view, are likely to continue funding coal-related companies over the medium term as they are important to the economy. ISSUER PROFILE ABM is an Indonesian integrated company with businesses spanning coal mining, mining contracting, and logistics, engineering and fuel services. It is majority-owned and controlled by the Hamami family, with about 21% of its shares listed on the Jakarta Stock Exchange. Criteria Variation Fitch applied a variation from its Corporate Rating Criteria by using multiple-based lease-adjusted credit metrics to assess ABM's rating instead of unadjusted ratios, as defined in the criteria, to better reflect ABM's financial profile, given its strategy of using operating leases for core assets in its mining contracting business. ESG CONSIDERATIONS ABM's ESG Relevance Score for GHG Emissions & Air Quality was raised to '4' from '3' due to its revenue concentration in thermal coal. Thermal coal's heavy carbon footprint weakens demand growth in the medium term and diminishes the company's access to funding, which have negative impact on ABM's credit profile and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- PT ABM Investama Tbk LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ =============== M A L A Y S I A =============== ASPEN GROUP: Unit Gets MYR78MM Claim for Alleged Outstanding Debts ------------------------------------------------------------------ The Business Times reports that Aspen Group said its indirect subsidiary Aspen Glove received a writ of summons endorsed with a statement of claim filed by contractor Tialoc Malaysia in the Penang High Court. BT relates that the writ – received on Aug. 28 – named Aspen Group, Aspen Glove's directors, Aspen Vision All and KHTP Assets as co-defendants, the Catalist-listed Malaysian property developer said. According to BT, Tialoc has claimed that Aspen Gloves owes it MYR78.1 million in outstanding sums plus financing charges. It also alleged that the co-defendants are liable for fraudulent trading and the alleged debts owed by Aspen Gloves. It is seeking an order that the co-defendants, together with Aspen Glove on a joint and several basis, pay the alleged outstanding sum without any limitation of liability. BT relates that Aspen Group said that it "vehemently denies" any allegation of fraudulent trading and is seeking legal advice from its solicitors with a view to "vigorously resist and/or defend the suit". On July 28, Aspen Glove received an adjudication decision that required it to pay a separate MYR84.4 million claim by Tialoc Malaysia. In response, the subsidiary has filed applications to stay and set aside the legal decision, the group said in its update on legal proceedings. It does not expect the lawsuit to have any material financial impact on the group, pending the legal proceedings' outcome. Aspen (Group) Holdings Limited, an investment holding company, engages in property development activities in Malaysia. The company develops residential and commercial properties; sells food and beverages; and manufactures gloves. It is also involved in the provision of management and IT services. In addition, the company engages in the general construction and restaurant business. Aspen (Group) Holdings Limited was founded in 2013 and is headquartered in George Town, Malaysia. =============== M O N G O L I A =============== MONGOLIAN MINING: Fitch Puts B Foreign Curr. IDR on Watch Negative ------------------------------------------------------------------ Fitch Ratings has placed Mongolian Mining Corporation's (MMC) 'B' Long-Term Foreign-Currency Issuer Default Rating (IDR) and the rating on its US-dollar bond due April 2024 on Rating Watch Negative (RWN). At the same time, Fitch has assigned a 'B(EXP)' expected rating to MMC's proposed US-dollar senior exchange notes and new issuance with a Recovery Rating of 'RR4'. The final rating is contingent upon the receipt of final documents conforming to information already received. The proposed notes will mature on the third anniversary of the exchange settlement date and will be jointly and severally issued by MMC and its wholly owned subsidiary, Energy Resources LLC. Fitch does not consider the proposed debt exchange transaction as default avoidance, despite the maturity extension for MMC's existing USD350 million senior secured notes due April 2024, as Fitch believes MMC is able to accumulate sufficient cash to repay the notes, even without the proposed issuance. The RWN takes into consideration the low cash buffer that will be available after the repayment of the notes due 2024, should the exchange offer fail, to manage variances in the operating environment. The inherent volatility and lack of predictability of the post repayment cash position is more consistent with a rating level that is one notch lower. Fitch will remove the RWN and affirm the rating with a Stable Outlook if the exchange is completed at the terms communicated. KEY RATING DRIVERS Exchange to Address Refinancing Risk: The exchange offer is at par value, using a combination of cash and new notes, subject to a minimum acceptance of 75% of outstanding principal. A successful transaction would reduce the funding requirements for MMC's 2024 notes and would be credit positive, as it would improve the company's maturity profile. Sufficient Cash for Repayment: If the proposed exchange fails, Fitch expects that MMC would have the capacity to repay its 2024 notes with cash generated from operations, taking into consideration its forecast of a lower average selling price (ASP) in 2H23 and 1Q24. The outstanding balance of MMC's 2024 notes was USD350 million at mid-August 2023. The company had a cash balance of over USD200 million at end-June 2023, up from USD65 million at end-2022. Fitch expects MMC could generate over USD250 million in EBITDA between June 2023 to 1Q24, which, after taking into consideration other cash flow uses, such as interest, taxes and capex, together with the USD50 million in an unused committed facility, would leave the company with sufficient cash for the bond repayment and continued operation. Limited Cash Buffer Post Repayment: Fitch expects MMC to have over USD350 million of cash available as of end 1Q24 without the exchange offer, with an additional USD50 million in an unutilised committed facility. Fitch calculates that the company will have a cash buffer of around USD50 million after the USD350 million principal repayment after subtracting the minimum USD50 million of cash required to maintain its operation. However, the inherent variances of MMC's operating environment can result in the buffer varying widely, which is commensurate with a one-notch lower rating. Robust Operational Improvements: MMC's coking-coal operation has normalised, with Covid-19 pandemic-related disruption at the border with China having eased in 1Q23. Average daily throughput rose to about 800 trucks in 1H23, surpassing pre-pandemic and the 1H22 level of around 240 trucks. MMC ramped up processing volume to 6.8 million tonnes in 1H23, from 0.9 million tonnes in 1H22, ahead of its expectations. Meanwhile, the realised ASP for hard coking coal exceeded USD160/tonne, from a 2022 average of USD147/tonne. Fitch expects the ASP to fall in 2H23, but for average ASP in 2023 to remain above 2022 levels. Fitch also expects washed hard coking coal sales volume to reach 5.5 million tonnes, against its previous forecast of 5.0 million tonnes (2022: 3.5 million tonnes). As a result, the EBITDA margin should improve to over 40%, from around 24% in 2022, with greater free cash flow from the higher volume, stronger pricing assumptions and lower costs. Fitch also forecasts net leverage to drop to below 1.0x (2022: 3.0x), supported by a strong ASP and margin expansion. Small Scale, Single Product: MMC is small by revenue compared with Fitch-rated coal miners globally. Washed hard coking coal accounted for over 95% of its total revenue in 2022. Its latest coal reserve statements show total marketable coal reserves of just under 400 million tonnes, or a reserve life of around 35 years. MMC's small scale and product concentration constrain its business profile to the 'b' category. MMC is looking to diversify away from coking coal, but Fitch believes it will remain its dominant revenue contributor in the short to medium term. Regional Cost Advantage: MMC's cash costs, including royalties, are in the second quartile of the global coking-coal cost curve, but its cost advantage is only in the northern part of China due to the proximity of its mines to steel mills in the area. Land transportation costs to Chinese customers averaged at about USD13/tonne in 1H23, limiting MMC's cost competitiveness and putting it in the higher quartile of the global cost curve. Delivery beyond northern China would raise costs, limiting its customer-base to mainly northern China. DERIVATION SUMMARY The RWN reflects the narrow buffer provided by MMC's Fitch-estimated cash balance after the principal repayment on the 2024 notes, which may not protect MMC from volatile market conditions should the exchange offer not proceed. MMC has a smaller revenue scale compared with rated peers, such as Guangyang Antai Holdings Limited (B/Stable), PT Indika Energy Tbk (BB-/Stable) and PT Golden Energy Mines Tbk (GEMS, BB-/Stable). Guangyang Antai's revenue is more than 10x times that of MMC, while Indika's revenue scale is more than 7x larger and GEMS' 5x. However, MMC margin is much higher than that of Guangyang Antai and similar to that of Indika and GEM. MMC is a single-product coal miner, similar to the peers. Its operational profile in terms of mine life is similar to that of GEMS, whose mine life is over 25 years. Indika's mine life is shorter, at around 15 years. MMC's leverage and financial flexibility profile is weaker than that of GEMS. GEMS has more stable free cash flow generation ability, much lower leverage and well-distributed amortising debt. Both MMC and Indika have had choppy free cash flow generation in the past few years and concentrated debt maturities. Nevertheless, Indika has better interest coverage and much lower leverage. Fitch expects lower leverage at MMC compared with Guangyang Antai, but both companies have had weak FCF generation in the past few years. KEY ASSUMPTIONS Fitch's Key Assumptions within its Rating Case for the Issuer: - No exchange offer is considered - Hard coking coal ASP of USD150/tonne in 2023 and over USD140/tonne in 2024, consistent with Fitch's price deck assumptions - Total sales volume over 8.5 million tonnes in 2023, dropping to just under 7.0 million tonnes from 2024 - EBITDA margin to average at slightly below 40% in 2023-2025, supported by higher volume, a strong ASP and normalised costs - Capex at average at around 10% of revenue in 2023-2025 - No dividend payments in 2023-2025 RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Fitch will remove the RWN and affirm the ratings with a Stable Outlook upon completion of the exchange offer at the terms communicated. Factors that could, individually or collectively, lead to negative rating action/downgrade: - Failure to complete the exchange offer or secure other means of funding to reduce refinancing risk by end-3Q23 LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: MMC had USD208 million of cash on hand and USD50 million in unutilised credit facilities at end June 2023. However, this is insufficient to repay the notes due in April 2024, which had a face value of USD350 million in mid-August 2023. Nevertheless, Fitch expects that the company will be able to accumulate additional cash in 2H23 and 1Q24 to meet the principal repayment and retain a cash buffer to sustain its operation. ISSUER PROFILE MMC is the largest producer and exporter of high-quality hard coking coal in Mongolia. It owns and operates the Ukhaa Khudag and Baruun Naran open-pit coking coal mines in South Gobi province. MMC processed 6.6 million tonnes of run-of-mine coal in 2022, which yielded around 3.0 million tonnes of washed coking coal as a primary product and 1.2 million tonnes of washed thermal coal as a secondary product. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Mongolian Mining Corporation LT IDR B Rating Watch On B senior unsecured LT B(EXP) Expected Rating RR4 senior unsecured LT B Rating Watch On RR4 B Energy Resources LLC senior unsecured LT B(EXP) Expected Rating RR4 senior unsecured LT B Rating Watch On RR4 B ===================== N E W Z E A L A N D ===================== BEMA LIMITED: Creditors' Proofs of Debt Due on Oct. 2 ----------------------------------------------------- Creditors of Bema Limited, Game Kings Limited and Game Kings Studio Limited are required to file their proofs of debt by Oct. 2, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 28, 2023. The company's liquidator is: Jessica Kellow BDO Wellington Level 1 50 Customhouse Quay Wellington 6011 CAHALITA TRADING: Creditors' Proofs of Debt Due on Sept. 29 ----------------------------------------------------------- Creditors of Cahalita Trading Limited and J G Tory Limited are required to file their proofs of debt by Sept. 29, 2023, to be included in the company's dividend distribution. The companies commenced wind-up proceedings on Aug. 24, 2023. The company's liquidator is: Bryan Williams c/o BWA Insolvency Limited PO Box 609 Kumeu 0841 HEIGHT-WORX LIMITED: Court to Hear Wind-Up Petition on Sept. 1 -------------------------------------------------------------- A petition to wind up the operations of Height-Worx Limited will be heard before the High Court at Auckland on Sept. 1, 2023, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on July 18, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 PP ENERGY: Court to Hear Wind-Up Petition on Sept. 1 ---------------------------------------------------- A petition to wind up the operations of PP Energy Limited will be heard before the High Court at Auckland on Sept. 1, 2022, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on July 18, 2023. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 RETAIL LINKS: PwC Appointed as Receivers and Managers ----------------------------------------------------- Richard Nacey and John Fisk of PwC on Aug. 30, 2023, were appointed as receivers and managers of Retail Links Limited (trading as "4 Seasons"). The property in receivership comprises all of the assets, property and undertakings of the company. The receivers may be reached at: PwC Centre 10 Waterloo Quay (PO Box 243) Wellington 6140 ================= S I N G A P O R E ================= CEL-YISHUN (COMMERCIAL): Creditors' Proofs of Debt Due on Sept. 30 ------------------------------------------------------------------ Creditors of Cel-Yishun (Commercial) Pte. Ltd. are required to file their proofs of debt by Sept. 30, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 28, 2023. The company's liquidator is: Tan Chin Ren Tan, Chan & Partners 26 Eng Hoon Street Singapore 169776 INDEX-EVERGREEN CARPENTRY: Court to Hear Wind-Up Bid on Sept. 15 ---------------------------------------------------------------- A petition to wind up the operations of Index-Evergreen Carpentry & Marine Services Pte Ltd will be heard before the High Court of Singapore on Sept. 15, 2023, at 10:00 a.m. Vallianz Shipbuilding & Engineering Pte Ltd filed the petition against the company on Aug. 24, 2023. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 POSH INVESTMENT: Creditors' Proofs of Debt Due on Oct. 2 -------------------------------------------------------- Creditors of Posh Investment Holdings (Taiwan) Pte. Ltd. are required to file their proofs of debt by Oct. 2, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 28, 2023. The company's liquidators are: Victor Goh Khor Boon Hong Marie Lee C/o Baker Tilly 600 North Bridge Road #05-01 Parkview Square Singapore 188778 TALENTX AI: Court Enters Wind-Up Order -------------------------------------- The High Court of Singapore entered an order on Aug. 25, 2023, to wind up the operations of Talentx AI Pte Ltd. Saw Ze Chuen and Chua Chia Yei filed the petition against the company. The company's liquidators are: Don Ho Mun-Tuke Ho Chjuen Meng David Donald DHA + PAC 63 Market Street #05-01A Bank Of Singapore Centre Singapore 048942 VODOKE PTE: Court to Hear Wind-Up Petition on Sept. 8 ----------------------------------------------------- A petition to wind up the operations of Vodoke Pte Ltd will be heard before the High Court of Singapore on Sept. 8, 2023, at 10:00 a.m. TM Technology Services Sdn Bhd (successor-in-business to Telekom Malaysia Berhad) filed the petition against the company on Aug. 7, 2023. The Petitioner's solicitors are: Messrs Providence Law Asia LLC 1 Raffles Place #29-62 One Raffles Place Tower 2 Singapore 048616 WINDER INVESTMENT: Creditors' Proofs of Debt Due on Sept. 30 ------------------------------------------------------------ Creditors of Winder Investment Pte. Ltd. are required to file their proofs of debt by Sept. 30, 2023, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 24, 2023. The company's liquidators are: Sam Kok Weng Kam Chew Mun c/o 7 Straits View Marina One, East Tower, Level 12 Singapore 018936 ********* 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 2023. 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 ***