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TMI Blog2020 (8) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... ting is accepted and published based whereon a party seeks financial facility, during the pendency of the said financial facility, the Credit Rating Agency is mandated to conduct periodic surveillance and even if subsequent rating opined by the Credit Rating Agency during the period of surveillance is not accepted by the party, the same will still be disseminated by press release on the website of the Credit Rating Agency as also intimated to the Stock Exchange/Debenture Trustees. Clause (B) of the agreement between JPL and ICRA clearly defines the scope of work and that once the initial credit rating is assigned and accepted, ICRA shall subject to clause (F) keep the rating under surveillance during the lifetime of the bank facility, that is, such time that any amount is outstanding against it or the sanction remains valid whichever is earlier. Once based on the credit rating a party seeks a bank facility it cannot thereafter want the Credit Rating Agency to not conduct periodic surveillance thereof and in case of a change therein not intimate the same to the concerned agency and the parties duly affected by the said Credit Rating. The interpretation as sought to be given by JP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year also from AAA to BBB+ when neither JPL filed no suit raising objection to the downgrading or to the publishing of the credit rating. Credit rating having been utilized by JPL for receiving the financial facility, till the subsistence of the financial facility, JPL can neither seek setting aside of the said rating unless the same is irrational, arbitrary or mala fide and also cannot seek a decree that the said rating be not disclosed/published - Evidentiary value of opinion of an expert has to be decided on the basis of the credibility of the expert and the relevant facts supporting the opinion. Therefore, the emphasis has to be on the data on the basis of which opinion is formed. Further, if the opinion is intelligible, convincing, and based on reasoning, no decree declaring the said opinion as null and void, unenforceable and ineffective cannot be passed as is prayed by the plaintiff in prayer (a) of para 66 of the suit in respect of the Credit Rating Rationales dated 24th April, 2020 and 30th April, 2020 passed by the defendant. As the impugned Credit Ratings are surveillance ratings even if JPL objects to the same, no mandatory injunction can be granted to the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for disposal of the suit. Thus, after hearing learned counsels for the parties on various dates the judgment in the suit and application was reserved on 19th June, 2020. 5. Case of the plaintiff is that the plaintiff and the defendant entered into an agreement dated 15th June, 2016 qua the credit rating of the plaintiff company. Thereafter the defendant was carrying out the credit rating of the plaintiff company and was bound to follow the SEBI (Credit Rating Agencies) Regulations, 1999 (in short the CRA Regulations). Despite the fact that all the parameters for the purposes of rating the plaintiff company, were same in the present year, as the preceding year, the defendant vide its communication dated 24th April, 2020 intimated to the plaintiff its proposal to downgrade the credit rating from BBB+ to BBB. Plaintiff objected to the same and filed its objections on 26th April, 2020 whereafter the defendant vide its letter dated 30th April, 2020 communicated that it has reviewed the credit rating of the plaintiff company and is maintaining the same at BBB. The defendant also published the downgraded credit rating of the company on its website. 6. Challenging the two letters of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have published the same on its website. The plea of the defendant that sub-clause (i) of Clause-G of the agreement between the parties only related to the initial rating and not the subsequent ones is palpably incorrect and without any basis. A perusal of sub-clauses (i) and (ii) of Clause-G brings out a distinction between the right of publication and the right of disclosure. 9. Learned counsel for JPL further submits that ICRA has perversely and irrationally utilized the negative effect of the previous ratings and has added COVID-19 as a reason to downgrade the credit rating for this year ignoring the improvements and the positive aspects of JPL s situation such as even during the national lock down when no industry was functional JPL s industry was fully functional and that the financial exposure of JPL in the previous year has come down drastically for this year. While arriving at a subjective satisfaction of JPL s rating, ICRA has not adopted an objective criteria nor was ICRA s action transparent. ICRA by citing COVID-19 which is irrelevant in the case of JPL as JPL is providing essential services, downgraded the rating. Reliance is placed on the decision reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Rating Committee, however, it is nothing more than an opinion as defined under CRA Regulation 2(q). 12. It is contended that ICRA has followed the rating process in compliance with the regulations and relevant circulars issued by SEBI from time to time and has not violated any of the rating methodologies or the CRA Regulations or the Master Circular. ICRA has been rating the instruments/debt facilities of JPL since 2008. Under the rating agreement entered into between JPL and ICRA in 2016 based on the initial rating JPL has already availed/raised funds and thus till the funds have been utilized and not repaid by JPL, ICRA would be bound to keep periodic watch/surveillance. 13. The Rating Committee after due deliberation accorded the rating on 24th April, 2020 and on the objection of JPL received, the same was put up before the Review Committee which comprises of different members/experts, who also decided to maintain the rating at BBB and informed the decision to JPL on 30th April, 2020. Subsequent to the institution of the present suit JPL sought withdrawal of the ratings of the Non-convertible Debentures (NCDs) since they have been repaid. Consequently, ICRA wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... References in this Agreement to rating or credit rating also encompass any revalidation of Rating and the terms of this Agreement will apply to any revalidation Rating. iii. Rating Fee refers to the initial fee payable in advance by your Company to ICRA in consideration for the Rating to be assigned by ICRA to the Bank Facility and shall be exclusive of the applicable service tax payable thereon. iv. Surveillance Fee refers to the fee payable in advance by your Company to ICRA for the continuous monitoring of the Rating by ICRA during the lifetime of the Bank Facility and shall be exclusive of the applicable service tax payable thereon. B. Scope of Work and Rating Fee I. ICRA shall, after due consideration, assign a Rating (accompanied, if necessary, by an outlook and/or other indicators) to the said Bank Facility of your Company. II. Upon acceptance of the Rating or notification of use of the Rating by your Company to ICRA in the manner set out in clause D (1) below, ICRA shall subject to clause F of this Agreement, keep the Rating under surveillance during the lifetime of the Bank Facility that is such time that any amount is outstanding aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such information or communication. III. We are an independent rating agency and may determine, apply and amend our methodologies and Rating in our sole discretion from time to time. D. Acceptance/non-acceptance and use of Rating I. After ICRA has informed your Company of the Rating it has assigned, your Company shall communicate its decision to ICRA regarding its acceptance of the Rating in writing, and intended use of the Rating, in any manner, within 7 (seven) days of the assignment of the Rating. In the event your Company fails to notify ICRA of its decision regarding its acceptance/non-acceptance of the Rating, such failure shall be treated by ICRA as non acceptance of the Rating. Notwithstanding the foregoing, any use by you of the Rating shall be deemed acceptance of the Rating. II. During such 7 (seven) days acceptance time period, and thereafter if the Rating is not accepted by your Company within the stipulated time, such Rating shall remain confidential subject to the terms of this Agreement, including without limitation, clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Bank Facility. Following surveillance, ICRA may reaffirm, upgrade, downgrade, suspend, or withdraw the Rating; further, it may assign an outlook, or change or withdraw the outlook previously assigned; it may also place the Rating (previously assigned) on rating watch (with or without specified implications) or remove it from rating watch. II. If at any stage during the lifetime of the Bank Facility, ICRA feels it is unable to carry out continuous monitoring of the Rating(s) assigned because of a lack of cooperation by your Company, ICRA will be entitled to carry out a review of the Rating(s) outstanding on the basis of the best available information. Further, ICRA shall also be entitled to disclose such Rating(s) or changes in the Rating(s) along with the rating rationale(s) in any manner and to anyone it may decide without any reference to your Company. III. At any stage, failure on your part to furnish such information as ICRA may require from time to time, or failure to properly answer queries in a timely manner that may be raised by ICRA or failure on your part to pay Surveillance Fee as and when due, could result in ICRA suspending, withdrawing, or revising the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective group companies or authorized agents in connection with ICRA's services accompanied by a written notice specifying the confidential nature of such information. The term Confidential Information does not, however, include (i) information that is or becomes publicly known other than by an act of ICRA in contravention of this Agreement; (ii) information in our possession prior to the execution of this Agreement; (iii) information that becomes available to ICRA from a third party; (iv) information developed independently by ICRA; (v) information that has been aggregated or transformed in such a way that it is no longer identifiable as relating to any individual; or (vi) information that is approved in writing by you for public disclosure. ICRA shall retain any Confidential Information and not disclose the same to third parties outside of ICRA, but such retained Confidential Information will remain subject to the confidentiality obligations contained in the Agreement. We may, however: (i) disclose Confidential Information as required by law, regulation, judicial or governmental order, subpoena or other legal process or requested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant entity on which a rating is requested or whose issuances are requested to be rated under this Agreement (each, a Rated Entity ) or its agents. ICRA's Confidential Information includes any rating and/or other opinion we deliver in connection with this Agreement that we do not also disclose to the general public at the time of delivery You agree to keep ICRA's Confidential Information confidential and treat it accordingly. You must refrain from direct or indirect communication or disclosure of ICRA's Confidential Information to any persons(s) other than: (i) your employees, officers and directors and those of any entities that are wholly owned, directly or indirectly, by your ultimate parent, whose functions reasonably require them to have knowledge of ICRA's Confidential Information in order to fulfill their professional duties as agents of the Rated Entity; and (ii) your financial and legal advisors, in their capacity as such with a need to know, for information purposes only and to whom we owe no duty or responsibility. You will ensure that all above persons listed in sub clauses 9i) and 9ii) comply with all of the provisions in this Agreement an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptance of the credit rating and use of the credit rating by the client . On a harmonious reading of Clauses D and G of the agreement, the only conclusion that can be arrived at is that ICRA could conduct its rating exercise any time and upon declaring its credit rating, it was upon the JPL to accept or reject the same, which JPL specifically refused on 30th April, 2020. Consequently, ICRA was not bound to publish the rating after the same had been refused to be accepted by JPL on 30th April, 2020. Reliance is placed on the decisions in ( 1973) 2 SCC 825 Delhi Development Authority Vs. Durga Chand Kaushish and (1991) 1 SCC 412, M.O.H.Udman and Ors. Vs. M.O.H. Aslam. 18. Refuting the arguments of learned counsel for JPL, learned counsel for ICRA submits that on a plain reading of the rating agreement, in conjunction with CRA regime as also the RBI circular, the only unambiguous conclusion that can be arrived at is that the publication of the rating under surveillance is not subject to the acceptance of JPL. Contingent on the circumstances and consideration of the factors which involve annulment of prognosis, ICRA has a right to change the ratings and consequentially bound to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r require publication of the rating irrespective of the non-cooperation of the issuer including non-payment of fee in terms of Regulation 16(3) read with Clauses 2.9, 3.3.3 and 3.3.7 of the Master Circular. Publication of the credit rating and rationale by the credit rating agency in a timely manner plays a critical role in protection of the interests of the investors in security markets. Reliance is placed on the decision of Bombay High Court in E.C.L. Finance Limited Vs. ICRA Ltd. and Another. 20. It is contended by learned counsel for the defendant that as per the CRA regulations and the circulars issued thereunder, ICRA as a responsible institute, is expected to pro-actively track all important changes which make an independent assessment and promptly disseminate timely and accurate ratings. The primary role of a credit rating agency is to bridge the information and raise symmetry between the company and shareholders. While extending loans on credit facilities, banks heavily rely upon the credit ratings given by the agencies including ICRA and in case the revised ratings pursuant to the surveillance is not published, the user of the rating will erroneously be relying upon pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng is utilized to avail the credit facility. However, even then it has been reviewed by a Review Committee comprising of other persons pursuant to the representation of JPL dated 26th April, 2020 and only after the Review Committee decided to maintain the downgraded rating that the letter dated 30th April, 2020 was communicated to JPL and the rating put up on the website. 24. For the purposes of ascertaining whether defendant has followed the CRA Regulations, it would be relevant to note the relevant provisions thereof as under: Monitoring of ratings 15. [(1) Every credit rating agency shall, during the lifetime of securities rated by it continuously monitor the rating of such securities, unless the rating is withdrawn, subject to the provisions of regulation 16(3).] (2) Every credit rating agency shall disseminate information regarding newly assigned ratings, and changes in earlier rating promptly through press releases and websites, and, in the case of securities issued by listed companies, such information shall also be provided simultaneously to the concerned regional stock exchange and to all the stock exchanges where the said securities are listed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting, a downgrade of an existing credit rating (including to a default category), an affirmation of an existing credit rating, or a withdrawal of a credit rating . Thus after the initial credit rating is assigned, the action of the credit rating agency in the form of credit rating action continues by upgrading or downgrading or maintaining the existing credit rating or withdrawal of the credit rating. 27. In this regard it would also be relevant to note clauses 2.9, 3.3.3, 3. 3.6, 3.3.7 and 3.3.9 of the Master Circular No.SEBI/ HO/ MIRSD/ DOP2/ CIR/P/2018/76 dated 2nd May, 2018 issued by SEBI which provide as under: 2.9 Policy in respect of non-co-operation by the issuer 22 2.9.1. In case of non-cooperation by the issuer (such as not providing information required for rating, non-payment of fees for conducting surveillance), in line with the existing Regulations, the CRA shall continue to review the instrument, on an ongoing basis throughout the instrument s lifetime, on the basis of best available information, in accordance with the rating process and policies set forth in its Operations Manual/ Internal governing document. 2.9.2. In such cases the credit rating s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing as non-accepted Rating In case rating is not accepted by the Issuer within a month of communication of rating by the CRA to the Issuer, the same shall be disclosed as Non-Accepted Rating on the CRA s website Dissemination of Press Release on CRA s website and intimation of same to Stock 2 working days of acceptance of Rating by the Issuer Exchange/ Debenture Trustee ii. Periodic Surveillance: Scenario Timeline - immediately but not later than Dissemination of Press Release on CRA s website and intimation of same to Stock Exchange/ Debenture Trustee 5 working days of Rating Committee Meeting iii. Dissemination of Press Release on CRA s website and intimation of same to Stock Exchange/ Debenture Trustee in case of event based review: Scenario Timeline- immediately but not later than Intimation from Issuer/ Debenture Trustee/Bankers of the Issuer regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within five working days of the Rating Committee Meeting the rating has to be disseminated by press release on Credit Rating Agency s website and duly intimated to stock exchange/debenture trustees. Clause 3.3.9 also provides that despite delay where credit rating is reviewed but not completed within the due date on completion thereof the same will be promptly disclosed on the website. 29. Thus the combined reading of SEBI CRA Regulations and RBI Master Circular clearly depict that as far as the initial rating is concerned, if the same is not accepted, then the same will not be published by the Credit Rating Agency however, once an initial credit rating is accepted and published based whereon a party seeks financial facility, during the pendency of the said financial facility, the Credit Rating Agency is mandated to conduct periodic surveillance and even if subsequent rating opined by the Credit Rating Agency during the period of surveillance is not accepted by the party, the same will still be disseminated by press release on the website of the Credit Rating Agency as also intimated to the Stock Exchange/Debenture Trustees. 30. The Madras High Court in First Leasing Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is raised. 33. Learned counsel for JPL further relied upon the decisions reported as 1973 (2) SCC 825 Delhi Development Authority vs. Durga Chand Kaushish (supra) and 1991 (1) SCC 412 M.O.H Udman Ors. vs. M.O.H Aslam (supra) to contend that if two constructions of the document are possible, the one which will not render a provision nugatory has to be adopted and that the intention of the parties must be gathered from the language used in the contract. As noted above, clause (B) of the agreement between JPL and ICRA clearly defines the scope of work and that once the initial credit rating is assigned and accepted, ICRA shall subject to clause (F) keep the rating under surveillance during the lifetime of the bank facility, that is, such time that any amount is outstanding against it or the sanction remains valid whichever is earlier. Once based on the credit rating a party seeks a bank facility it cannot thereafter want the Credit Rating Agency to not conduct periodic surveillance thereof and in case of a change therein not intimate the same to the concerned agency and the parties duly affected by the said Credit Rating. The interpretation as sought to be given by JPL would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er year from JSPL by way of interest on loans, w.e.f. the 1st quarter of 2019-2020, which gives a quantum jump to the loan serviceability by JPL; (ii) new short term PPA of 200 MW with OPJ Industrial Park at 3.90/kwh; (iii) although repayments increased from ₹497 crores in F.Y.2019 to ₹695 crores in F.Y. 2020 and are increasing to more than ₹800 crores from F.Y.2021 onwards, plaintiff has already served repayments of ₹695 crores in F.Y. 2020 which amount would increase to ₹800 crores in F.Y. 2021. Although repayment of principal is getting increased by ₹105 crores in F.Y. 2021 as compared with F.Y. 2020, however, due to repayment of ₹695 crores in F.Y. 2020, there will be reduced interest outgo by ₹75 crores in F.Y. 2021, thus the net increase on account of debt obligation is only by ₹30 crores; and (iv) out of ₹800 crores repayment in F.Y. 2021, and post the second moratorium provided by RBI now the revised repayment for F.Y. 2021 stands at ₹583 crores. The Plaintiff having already paid ₹56.8 crores to Templeton Mutual Fund towards NCD repayment, now the balance repayment for the F.Y. 2021 is ₹526.20 cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncial risk drivers, which includes: adequacy of future cash flows; profitability; leverage and coverage indicators; liquidity and financial flexibility; tenure mismatches and risks relating to interest rates and refinancing; foreign currency related risks; debt transaction structure; accounting quality and contingent liabilities/off balance-sheet exposures in addition to management quality and corporate governance and parentage. The financial risk assessment is not done in isolation but in conjunction with the business and industry risks that the entity is exposed to. Since the prime objective of the rating exercise is to assess the adequacy of the issuer s debt servicing capability, the defendant draws up projection on the likely financial position of the issuer under various scenarios. The extent of deterioration of credit profile on account of pandemic is being considered for all entities but the same is factored into depending upon their sector and their financial position. The limited exemption provided by SEBI under its circular dated 30th March, 2020 to the rating agencies on non-consideration of pandemic was that discretion was granted to the credit rating agency to determi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their past experience, to apply these various factors to the available information, in the specific context of that point in time and consider likely outcomes. 41. As per ICRA, the rating methodology used for rating the facilities of JPL were; Corporate Credit Rating Methodology, Rating Methodology for Thermal Power Producers and Liquidity analysis of the entities in nonfinancial sector. The risk analysis framework used by ICRA for thermal power producers requires balancing of various factors and can be broadly divided into the following: (i) Business risk drivers which include operating risk; demand and tariff risk; counter party credit risk and force majeure risk. (ii) Industry risk drivers which includes regulatory risk (iii) Financial risk drivers, which includes adequacy of future cash flows; profitability; leverage and coverage indicators; liquidity and financial flexibility; tenure mismatches and risks relating to interest rates and refinancing; foreign currency-related risks; debt transaction structure; accounting quality; and contingent liabilities/off-balance sheet exposures. Some of the other risks considered are management quality and corporate governance a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have a bearing on the Plaintiff s liquidity profile, which remains stretched, as reflected in consistently high working capital limit utilisation averaging at 93% in 9M FY2020 (over 95% in Q3 FY2020 and 96% as on April 1, 2020). (iii) In this context, even in the last rating rationale (dated July 29, 2019), it was duly highlighted that the Stable outlook on the ratings reflected an expected improvement in Plaintiff s receivables position by the end of FY2020. Additionally, Defendant had noted a revival in activity in medium/long-term PPAs in the industry and Plaintiff s favourable positioning in the tenders, which provided comfort on the Plaintiff s ability to secure incremental PPAs. Plaintiff s inability to achieve any of the above parameters was highlighted in July 2019 as a rating sensitivity. (iv) Further, while Plaintiff s repayments remained moderate at ₹ 367 crore and ₹ 497 crore in FY2018 and FY2019, respectively, these repayments increased to ₹ 830 crore in FY2020 (₹ 695 crore, excluding the March 2020 instalment which is under moratorium as per the RBI s Relief Package for Covide-19) and are estimated at ₹ 818 crore in FY2021. Give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down and the three month moratorium/deferment on payment permitted by RBI, a differentiation in treatment of default, on a case to case basis, needs to be made as to whether such default occurred solely due to the lockdown or loan moratorium. C. Accordingly, based on its assessment, if the CRA is of the view that the delay in payment of interest/principle has arisen solely due to the lockdown conditions creating temporary operational challenges in servicing debt, including due to procedural delays in approval of moratorium on loans by the lending institutions, CRAs may not consider the same as a default event and/or recognize default. Appropriate disclosures in this regard shall be made in the Press Release. D. The above shall also be applicable on any rescheduling in payment of debt obligation done by the issuer, prior to the due date, with the approval of the investors/lenders. E. The above relaxation is extended till the period of moratorium by the RBI. 3. Extension in timelines for press release and disclosures on website A. Considering that the CRAs are dependent on the issuers and third parties for information collection which is impaired due to curre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rease, the repayment would be stretched. Admittedly in this year there was no new agreement entered into by JPL to supply of further power. Further by clause (3) of the Circular dated 30th March, 2020 issued by SEBI the extension of time was granted to credit rating such as ICRA to complete the same in the extended period and issue a press release on the website thereafter. Hence JPL cannot derive any benefits from the Circular of SEBI dated 30th March, 2020. As against the plea of SEBI's Circular dated 30th March, 2020, the reasoning of ICRA to down grade as noted in para 42 above, inter alia being the inability to secure incremental PPAs and receivable position from TANGEDCO which a major client of JPL being uncertain; appear to be plausible and cannot be termed to be arbitrary or suffering from non-application of mind. 45. After the rating dated 24th April, 2020 was communicated to the JPL, JPL submitted its detailed representation dated 26nd April, 2020 relevant portion whereof is as under: The entire power sector has seen a lot of stress over the last few years. A large number of plants had to shut construction and about 10000MW of power plants have been abandoned. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year. (JPL emerged as the L1 bidder for 515 MW) (i) Inability of Jindal Power Limited (JPL) to secure long/ medium-term power purchase agreements (PPAs) for two-thirds of its 3,400- MW installed capacity (ii) Favourable steps being taken by the Government of India to address the issue of delayed payments by various State Electricity DISCOMS. (ii) Delay in realisation of receivables from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). (iii) JPL s competitive capital as well as cost-efficient operations supported by the location of its plant in proximity to various coal blocks and linkage for part capacity, which enables it to compete effectively on tariffs. (iv) The Stable outlook reflects ICRA s expectation of comfortable credit metrics in the near-term, supported by PPAs in place for ~32% of its installed capacity, increased interest income from JSPL, which is supplementing the company s operational cash flows, and an expected improvement in receivables position by the end of FY-2020. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 crores to the power sector under the Atam Nirbhar Scheme was after the review order dated 30th April, 2020 and a subsequent event which cannot be utilized to hold the earlier declaration as illegal. 51. Though learned counsel for JPL has also vehemently argued that repayments have increased in the financial year 2019 from ₹497 crores to ₹690 crores in the financial year 2020 which is likely to be increased by ₹800 crores in the financial year 2021 however, the opinion cannot be faulted merely on the basis that JPL was able to manage substantial repayments, as the reason given by ICRA is that despite increase in repayment obligations of JPL there were still high debt levels and suboptimal capacity utilization. As noted above, the credit rating of the company is based on the futuristic position of the company to clear its debt liability and the same is not dependent merely on the fact that in the preceding year, debts had been cleared. The opinion of ICRA as primarily based on the fact that though in the previous year there were increased repayments of debt, however, the debt liability was still high coupled with the fact that JPL could not procure contract ..... 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