TCRAP_Public/160523.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Monday, May 23, 2016, Vol. 19, No. 100


                            Headlines


A U S T R A L I A

ATLAS IRON: S&P Raises CCR to 'CCC'; Outlook Developing
BRAND NEW: Goes into Administration
EMECO HOLDINGS: S&P Lowers CCR to 'CCC'; Outlook Negative
QUALIBUILT CONSTRUCTIONS: 1st Creditors' Meeting Set For May 30
TOP END: First Creditors' Meeting Slated For May 30

WEBSTER COMPUTER: Fourier Buys Firm Out of Liquidation

* AUSTRALIA: Corporate Collapses Up by 18% Over Past 12 months


C H I N A

BAIDU INC: Must Change Culture or Risk Bankruptcy
OCEANWIDE HOLDINGS: Fitch Assigns B Rating to Proposed US$ Notes
OCEANWIDE HOLDINGS: S&P Rates Proposed US$200M Sr. Note Retap 'B'
XINYUAN REAL: Fitch Affirms 'B' IDR; Outlook Stable


H O N G  K O N G

HANERGY THIN: Eyes Home Solar to Move Past $19 Billion Collapse


I N D I A

AMAR PLASTIC: Ind-Ra Raises Long-Term Issuer Rating to 'IND BB-'
ASHOK BRICKS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
AUCKLAND INTERNATIONAL: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
BAREILLY HIGHWAYS: CARE Reaffirms B+ Rating on INR1,350cr Loan
BHUPTANI ASSOCIATES: Ind-Ra Assigns 'IND BB-' LT Issuer Rating

COMMERCIAL CARRIERS: CARE Assigns B+ Rating to INR5.99cr LT Loan
DERBY CLOTHING: CRISIL Reaffirms B- Rating on INR80MM Cash Loan
EMBOSS EDUCATION: CRISIL Assigns 'B' Rating to INR85MM Term Loan
G.S. MAJESTIC: CRISIL Suspends 'B' Rating on INR300MM Cash Loan
GOMATHI STEELS: CRISIL Reaffirms B+ Rating on INR10MM Loan

GOURANGA COLD: CRISIL Reaffirms B- Rating on INR98.5MM Loan
HARIDWAR HIGHWAYS: CARE Lowers Rating on INR981.09cr Loan to B+
HYDERABAD RING: CARE Lowers Rating on INR265.13cr LT Loan to 'D'
INDIAN YARN: CARE Reaffirms 'D' Rating on INR67.25cr LT Loan
KARNATAKA NUTRACEUTICALS: CRISIL Rates INR20MM Cash Loan at 'B'

KISAN AGRO: CARE Assigns B+ Rating to INR9.50cr LT Loan
KRISHNA PAPER: CRISIL Cuts Rating on INR64.2MM Cash Loan to B+
L. K. AND SONS: CRISIL Suspends 'B' Rating on INR60MM Cash Loan
M J K MERCANTILES: CRISIL Cuts Rating on INR41.1MM Loan to 'B+'
MODERN DAIRIES: CARE Reaffirms 'D' Rating on INR121.25cr LT Loan

N SWARNA: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
POWERWIND LIMITED: CRISIL Suspends B- Rating on INR580MM Loan
PRADEEP UDYOG: CARE Assigns 'B' Rating to INR10cr LT Loan
R.K. RICE: CRISIL Reaffirms 'B' Rating on INR130MM Cash Loan
SANDWOOD INFRATECH: Ind-Ra Affirms 'IND BB' LT Issuer Rating

SHREE BALAJI: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
SHREE MAHALAXMI: CRISIL Reaffirms 'B' Rating on INR130MM Loan
SHYAM & COMPANY: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
SILVERSTONE ELASTOMER: Ind-Ra Assigns 'IND B-' LT Issuer Rating
SKC TRADING: Ind-Ra Raises Long-Term Issuer Rating to 'IND BB+'

SMS LABS: CRISIL Assigns B- Rating to INR62.5MM Cash Term Loan
SRI BALAJI: CARE Assigns 'B' Rating to INR7.63cr LT Loan
SRS LIMITED: Ind-Ra Lowers Long-Term Issuer Rating to 'IND BB+'
SUBIR DIAMONDS: Ind-Ra Raises Long-Term Issuer Rating to 'IND B'
TAKEDA IFMR 2016: Ind-Ra Rates INR22.6M Series A2 PTCs IND B+(SO)

TARA FINVEST: CRISIL Cuts Rating on INR124MM Cash Loan to B+
TASHKENT OIL: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
VIDHATA EDUCATIONAL: CRISIL Assigns 'B' Rating to INR190MM Loan
VISHNU COTTON: CARE Reaffirms B+ Rating on INR13.46cr LT Loan


S O U T H  K O R E A

DAEWOO SHIPBUILDING: Submits Additional Restructuring Measures


T A I W A N

CONCORD SECURITIES: Fitch Affirms LT Foreign Currency IDR at BB+


V I E T N A M

VIETNAM: Fitch Affirms BB- Issuer Default Rating; Outlook Stable


                            - - - - -


=================
A U S T R A L I A
=================


ATLAS IRON: S&P Raises CCR to 'CCC'; Outlook Developing
-------------------------------------------------------
S&P Global Ratings said that it had raised its long-term
corporate credit rating on Atlas Iron Ltd. to 'CCC' from 'SD'.
The rating outlook is developing.  At the same time, S&P raised
the rating on the company's senior secured notes to 'CCC' from
'D'.  The recovery rating remains unchanged at '4'.

The rating actions follow the completion of S&P's review of Atlas
Iron's operations and new capital structure post the
implementation of a creditors' scheme of arrangement which S&P
considered at the time to be a distressed exchange.  The
implementation of this arrangement has improved Atlas Iron's
capital structure due to the reduction of the company's principal
loan amount to US$135 million from US$267 million in December
2015, and an extension of its term loan B maturity to April 2021
from December 2017.  In addition, the term loan's lower interest
rate and outstanding amount have resulted in A$20 million of
interest savings per annum.

"Notwithstanding the company's improved capital structure, we
continue to view Atlas Iron's financial risk profile as highly
leveraged, reflecting its high sensitivity to volatile iron ore
prices.  Its credit metrics could swing significantly even with a
small change in iron ore prices of a few dollars," said S&P
Global Ratings credit analyst May Zhong.

S&P forecasts that Atlas Iron's debt to EBITDA in fiscal 2016
would likely improve to below 5x, due to a reduction in costs and
debt.

S&P's base-case assumptions include iron ore prices of US$40 per
dry metric ton (dmt) for the rest of calendar year 2016 and 2017
and Australian dollar-to-U.S. dollar exchange rates of US$0.72
and US$0.71 respectively.  Under these assumptions, Atlas Iron's
debt to EBITDA is likely to increase materially in the year
ending June 30, 2017, due to its modest margin.  Conversely, if
iron ore prices can sustain above US$45 per dmt in fiscal 2017,
Atlas Iron's credit metrics should improve significantly.

S&P views Atlas Iron's business risk profile as vulnerable,
reflecting its small scale and short reserve life compared
globally, relative high production costs (albeit improving), and
exposure to volatile iron ore prices and foreign exchange rates.
At June 30, 2015, the remaining mine life for Atlas Iron's Abydos
and Wodgina mines was about 2 years, and 8-9 years for Mt Webber.
Compared with the top-three iron ore miners in Australia, Atlas
Iron's scale is relatively small at 14 million tons per annum.
Furthermore, it uses trucks to transport its ore from pit to
port.

The smaller scale and lack of integrated rail and port
infrastructure lead to its cash production costs being higher
than large producers.  S&P estimates that Atlas Iron's break-even
cash costs are about the low iron ore price of US$40 per dmt,
which is much higher than the big-three iron ore producers in
Australia, whose break-even costs are all below US$30 per dmt.
These costs include interest expense, sustaining capital
expenditure, freight, mining costs, royalty fees, and after
converting the figure based on S&P Global Platts benchmark 62%
iron (Fe) ore price.

To improve its viability, Atlas Iron has made initiatives to cut
costs.  It recently executed an innovative collaboration
agreement with contactors for its Abydos and Wodgina operations.
Its revised agreement with its contractor BGC Australia Pty Ltd.
will also reduce its mining costs, by 10%-12% from what it
previously paid for the Mt Webber mine.  Because of these
agreements and the recent debt restructure, S&P estimates that
Atlas Iron could reduce its all-in break-even costs (converted to
S&P Global Platts benchmark 62% Fe cost and freight [CFR] China)
from above US$50 per dmt to the low US$40 per dmt.

In S&P's view, there is limited room for further cuts in rates
from the mining contractors.  Additional savings are likely to
come from productivity gains or efficiency improvement.  Like
other iron ore players, Atlas Iron's reduction in cash costs may
not be sustainable if there is a renewed spike in oil prices or
if the Australian dollar appreciates strongly against the U.S.
dollar.

Although iron ore prices have recovered strongly in the past two
months from its record lows in early 2016, S&P remainS cautious
about the prospects of current prices remaining at about US$55
per dmt.  In S&P's view, the recent improvement in prices could
be short-lived, and is vulnerable to uncertain demand from China.

The developing outlook reflects Atlas Iron's extreme sensitivity
to movement in iron ore prices and the Australian dollar-to-U.S.
dollar exchange rate.  In S&P's view, a small change in either of
these variables could push the company to either breach its
covenant, or accumulate cash and materially reduce its net debt.

Ms. Zhong added: "We could lower the ratings if we forecast that
Atlas Iron's cash holdings are likely to fall below the covenant
level of A$35 million."

This would likely occur if benchmark iron prices were sustained
below the low level of US$40 per dmt based on an exchange rate of
US$0.71 per Australian dollar (all else remaining equal).  Under
this scenario, S&P believeS Atlas Iron would struggle to generate
positive free cash flows.  S&P could also lower the ratings if it
regards the company's overall viability is at risk, such that S&P
considered the prospect of another distressed exchange to be
likely.

S&P could consider raising the rating if Atlas Iron develops a
track record of producing iron ore at lower production costs and
accumulates sufficient free cash flows.  S&P would also need to
see an increasing likelihood that benchmark iron ore prices would
sustain at above US$45 per dry metric ton (and not being offset
by a stronger Australian dollar-to-U.S. dollar exchange rate).


BRAND NEW: Goes into Administration
-----------------------------------
Cliff Sanderson at Dissolve.com.au reports that Brand New Media
Pty Limited has gone into administration.  Ronald John Dean-
Willcocks and Anthony Wayne Elkerton of Dean-Willcocks Advisory
have been appointed administrators of the company on April 27,
2016, the report discloses.

The assets of the content marketing company are currently up for
sale, according to the report. Following the appointment of
administrators, it stopped broadcasting 4Me, a teleshopping
network in regional areas, Dissolve.com.au notes.

According to the report, the sale of the assets includes
equipment like audio recording equipment and cameras as well as
intellectual property including a video content library and video
play-out systems. Brand New Media was a successful video-focused
content marketing company that set up joint ventures such as IPTV
channel HealthyMeTV and 4Me.


EMECO HOLDINGS: S&P Lowers CCR to 'CCC'; Outlook Negative
---------------------------------------------------------
S&P Global Ratings said that it had lowered its corporate credit
rating on Australia-based mining equipment rental company EMECO
Holdings Ltd. to 'CCC', from 'CCC+'.  S&P also lowered the senior
secured debt issue rating to 'CCC', from 'CCC+'.  The outlook is
negative.  The recovery rating on the senior secured debt issue
remains at '3'.

"The downgrades reflect our view that difficult trading
conditions will continue to challenge Emeco's ability to improve
its earnings over the medium term, and that its operating cash
flow will remain negative," said S&P Global Ratings credit
analyst Sam Heffernan.

Although S&P still believes the company would have sufficient
funds to meet its next two interest payments, S&P cannot rule out
the possibility of a distressed exchange over the next 12 months,
in the absence of any positive developments.  In S&P's view, the
company's current capital structure is unsustainable under
present trading conditions.

S&P believes the company is likely to face negative operating
cash flows to 2017.  Indeed, if S&P assumes Emeco's earnings are
at the lower end of the company's guidance at A$53 million and
remain stable into 2017, the combination of maintenance capital
expenditure of A$30 million and debt interest of approximately
A$35 million would reduce Emeco's cash balance by about A$10
million.  This is despite the company's efforts to manage its
cash flows and reduce costs.

In that context, the company's ability to sell its assets is
critical to supporting its ongoing solvency.  In the absence of
material new contracts that would uplift Emeco's earnings, S&P
views Emeco's capital structure as unsustainable in the medium
term.

Additional sources of funds, beyond operating cash flow and cash
balances, are available for Emeco to meet its fixed obligations.
These include capacity to draw down about A$25 million of its
asset-backed loan (ABL) facility, and its "in the money" swap
position with an approximate value of A$20 million.  While S&P
acknowledges that these proceeds could support liquidity in the
near term, it do not view their availability as fundamentally
improving the sustainability of Emeco's capital structure.
Further, closing out the swap would increase its interest costs,
thereby providing only temporary relief.

S&P continues to assess Emeco's business risk profile as
vulnerable due to its significant exposure to the downturn in the
mining sector and its small size relative to other more-
diversified equipment rental providers.

The negative outlook reflects S&P's view that under current
operating conditions Emeco's margins and operating cash flows
will remain under pressure.  And in the absence of any positive
developments, it's increasingly likely that Emeco would need to
address its unsustainable capital structure.

Mr. Heffernan added: "We could lower the ratings if the company
fails to arrest the current downward trend in earnings, and
Emeco's cash holdings were to deteriorate to a level where a
default scenario would become highly likely within a six-month
period."

A revision of the outlook to stable is unlikely in the near term
given the continued difficult operating conditions, S&P's
projection of its cash position, and the company's reliance on
asset sales to generate positive cash flows.


QUALIBUILT CONSTRUCTIONS: 1st Creditors' Meeting Set For May 30
---------------------------------------------------------------
David Ross and David Ingram of Hall Chadwick were appointed as
administrators of Qualibuilt Constructions Pty Ltd on May 18,
2016.

A first meeting of the creditors of the Company will be held at
Quest Tamworth, 337 Armidale Road, in Tamworth, on May 30, 2016,
at 11:30 a.m.


TOP END: First Creditors' Meeting Slated For May 30
---------------------------------------------------
Ann Fordyce and Nigel Markey of Pilot Partners were appointed as
administrators of Top End Commercial Interiors Pty Ltd on May 18,
2016.

A first meeting of the creditors of the Company will be held at
Pilot Partners, Level 10, 1 Eagle Street, in Brisbane,
Queensland, on May 30, 2016, at 2:00 p.m.


WEBSTER COMPUTER: Fourier Buys Firm Out of Liquidation
------------------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Webster Computer
Systems Pty. Ltd has been purchased out of liquidation by Fourier
Technologies.  Christopher Palmer of O'Brien Palmer was appointed
liquidator of the company on Oct. 8, 2016, Dissolve.com.au
discloses.

Webster Computer Systems started to operate in 1970 as a
manufacturer of DEC/MicroVAX. They then evolved into a system
distributor and integrator.


* AUSTRALIA: Corporate Collapses Up by 18% Over Past 12 months
--------------------------------------------------------------
Eloise Keating at SmartCompany reports that the number of
Australian companies entering voluntary administration increased
by 18% in the 12 months ending March, according to an analysis of
data completed by FTI Consulting.

SmartCompany relates that FTI Consulting analysed data from the
Australian Securities and Investments Commission and found 10,299
companies entered voluntary administration in the 12 months from
March 2015 to March 2016.

This is an 18% increase on the period from March 2014 to March
2015, when external administrators were appointed to 8,751
companies, SmartCompany.

According to the report, FTI Consulting said insolvencies during
the period were dominated by large corporates, particularly in
the retail and mining sectors. Among the high-profile companies
to collapse in recent months were retailers Dick Smith and Laura
Ashley, coal miner Peabody, steelmaker and miner Arrium and Clive
Palmer's Queensland Nickel, SmartCompany discloses.

SmartCompany relates that Quentin Olde, senior managing director
of corporate finance and restructuring at FTI Consulting, said in
a statement low commodity prices appear to be continuing to place
strain on miners and companies that offer related services.
Likewise, insolvencies and profit downgrades in the retail
industry indicate "noticeable signs of strain" on companies in
that sector, he said.

"In recent profit announcements, all the big four banks have
indicated that they have increased provisions for bad debts on
specific clients including Dick Smith, Arrium [and] Peabody and
also on a portfolio basis for SMEs and corporate-related debt
portfolios," the report quotes Mr. Olde as saying.

On a state-by-state analysis, FTI Consulting found the largest
increases in insolvencies in Western Australia (up 36%) and
Queensland (up 23%) for the same 12-month period. The only state
to record an decline in the number of insolvencies was Tasmania,
where the number of appointments declined by 6%, SmartCompany
relays.

Colin Porter, founder and managing director of CreditorWatch,
told SmartCompany it can be difficult to identify the flow-on
effects of large insolvency events on smaller businesses within a
given sector, saying it will often depend on the type of
appointments, as opposed to the volume. The total volume of
insolvency appointments is made of up voluntary administrations,
as well as wind-ups initiated by the Australian Tax Office,
courts and creditors, the report states.

However, Mr. Porter said CreditorWatch has witnessed an increase
in both the volume and value of payment defaults over the past 12
months.

Year-to-date, CreditorWatch data shows the volume of payment
defaults has increased by six percent and the volume of payment
defaults has increased by 12%, SmartCompany discloses.

"What that potentially shows is that while people are still
growing their businesses, they are taking on more risk," Mr.
Porter, as cited by SmartCompany, said. This can increase the
exposure of smaller businesses to the effects of insolvency
events in their sector, he added.  "When it does wrong, it's
worse," Mr. Porter said.



=========
C H I N A
=========


BAIDU INC: Must Change Culture or Risk Bankruptcy
-------------------------------------------------
South China Morning Post reports that with the threat of
bankruptcy and ruin looming for his company, Baidu founder and
chief executive Robin Li Yanhong on May 9 rallied employees to
help change the culture inside the online search giant as it
takes responsibility for a university student's death last month.

According to the report, government regulators have ordered
Nasdaq-listed Baidu, which controls more than 80% share of
China's online search market, to implement stringent new measures
that include limiting the amount of advertisements per page to
less than 30% and cleaning up the company's medical-related paid-
search business.

SCMP relates that a task force set up by the Cyberspace
Administration of China, the State Administration for Industry
and Commerce and the National Health and Family Planning
Commission announced on May 9 the results of its week-long
investigation of Baidu, following public outrage over the death
of 21-year-old computer science student Wei Zexi, which was
linked to a cancer treatment he found in an online search.

It concluded that the objectivity of Baidu's search results was
compromised by the paid-search listings, the report says. It
found that Baidu put a premium on high bidding prices from online
advertisers and did not indicate sponsored links, both of which
had affected the objectivity of its search results.

"The management and employees' obsession of KPI (key performance
indicators) has twisted our values . . . and distanced ourselves
from users," the report quotes Li as saying in an internal memo
sent to Baidu staff on May 10. "If we lose the support of users,
we lose hold of our values, and Baidu will truly go bankrupt in
just 30 days."

SCMP notes that Baidu has taken down the majority of paid-search
links for major medical-related keywords and announced that it
would stop working with all military-related medical
institutions.

"There are countless numbers of people making decisions based on
Baidu's search results," said Li, who announced the creation of a
CNY1 billion (HK$1.19 billion) fund to compensate users misled by
paid ads, SCMP relays. "It requires us to make better products
and stick to stricter principles.

"These measures may be negative to company revenue, but we are
determined to face sacrifices because we believe this is the
right thing to do."

SCMP notes that apart from its tarnished reputation, analysts
expect Baidu's core search engine business to take a near-term
hit as medical-related advertising was estimated to be as high as
30% of its total advertising revenue.

"We would not rule out the possibility of Baidu revising down its
recent second-quarter revenue guidance in the coming weeks,"
SCMP quotes Daiwa Capital Markets analyst John Choi as saying in
a report.

Baidu last month estimated its second-quarter revenue at between
CNY20.11 billion and CNY20.58 billion, the report discloses.

According to SCMP, Nomura analyst Shi Jialong said in a report
that the impact of the regulators' measures was worse than
expected.

"We thought . . . that this incident might only affect Baidu's
healthcare-related ads, but it turns out the regulators want
Baidu to overhaul its entire ad system," the report quotes Shi as
saying. "We heard . . . that the highest ad load rate [per page]
used to be 60 per cent [in Baidu search]."

Competitors have responded quickly to the Baidu scandal. Software
company Qihoo 360 Technology stopped all medical-services-related
advertising on its search engine earlier this month, adds SCMP.

                           About Baidu

Baidu, Inc. (ADR)(NASDAQ:BIDU) is a Chinese-language Internet
search provider (ISP). Baidu serves three types of online
participants, which include users, customers and Baidu Union
Members. The Company offers a Chinese-language search platform on
its Website, Baidu.com. It provides Chinese-language Internet
search services to enable users to find relevant information
online, including Web pages, news, images, documents and
multimedia files, through links provided on its Websites. It
designs and delivers its online marketing services primarily on
its Baidu.com Website to its online marketing customers. As of
December 31, 2014 the Company had approximately 813,000 active
online marketing customers. Its online marketing customers
consist of small and medium enterprises (SMEs) throughout China,
domestic companies and Chinese divisions or subsidiaries of
multinational companies.


OCEANWIDE HOLDINGS: Fitch Assigns B Rating to Proposed US$ Notes
----------------------------------------------------------------
Fitch Ratings has assigned China-based property developer
Oceanwide Holdings Co. Ltd.'s (Oceanwide; B/Stable) proposed US
dollar senior notes a 'B(EXP)' expected rating and a Recovery
Rating of 'RR4'.

The notes will be issued by Oceanwide Holdings International 2015
Co., Limited, a wholly owned subsidiary of Oceanwide.  The notes,
which will be guaranteed by Oceanwide, are rated at the same
level as Oceanwide's senior unsecured rating because they
represent direct and senior unsecured obligations of the company.
The final rating is subject to the receipt of final documentation
conforming to information already received.

Oceanwide intends to use the proceeds from the issuance for
overseas general corporate purposes, including, but not limited
to, the development of the First & Mission Project in San
Francisco in the United States.

Oceanwide's rating is supported by its strong sales momentum and
solid asset value.  It remains on track to generate cash from the
sale of development properties to fund its expansion into the
financial sector.  The rating is constrained by the rapid
increase in net debt to CNY68 bil. in 1Q16 from CNY35bn in 2014.
The trend is likely to continue in 2016 as the company ramps up
development expenditure to support sales growth and continues to
invest in its finance business.

                          KEY RATING DRIVERS

Higher Debt, Reducing Financing Costs: Oceanwide's consolidated
net debt had jumped to CNY68 bil. by end-March 2016 from
CNY35 bil. in 2014, mainly driven by the rapid expansion of its
finance business, financial assets investment and overseas
acquisitions.  Excluding the finance business, Oceanwide's net
debt would have increased by CNY17bn over the same period.
Oceanwide has more than CNY35 bil. in cash on hand as of the end
of March 2016 following aggressive fund raising, and it is in the
process of raising another CNY15bn through a private share
placement.  Part of the cash will be used to repay more expensive
debt and for property development expenditure, but this will
still leave Oceanwide with substantial funds to make
acquisitions.

Oceanwide issued CNY9 bil. via bonds in 1Q16 at an average
interest rate of 5.5%, which is significantly lower than its
historical funding cost of approximately 9%.  The funds will be
used to replace expensive trust loans.

Strong Sales Momentum Maintained: Fitch expects the company's
contracted sales to increase strongly in 2016 due to accelerated
project launches in Wuhan and substantial sales from new premium
projects in Beijing.  Contracted sales rose 55% in 2015 to
CNY15.1 bil., and Fitch expects it is on track to hit around
CNY18bn this year.  This will support positive operating cash
flow generation of its property development business, which has
low land-replenishment needs.  As Oceanwide's large land bank,
most of which was acquired many years ago, is sufficient for more
than 10 years for development.  The positive cash generation will
also help to lower Oceanwide's leverage, as measured by net
debt/adjusted inventory, after deconsolidating the debt of the
finance business, to below 85% in next 12 months from 90.3% at
end-1Q16.

Solid Asset Value: One of Oceanwide's projects in Beijing is
located within the 4th Ring Road, and it is one of only a few
projects with over 1.1 million square metres of saleable gross
floor area (GFA) close to the Chinese capital's central business
district.  The rare prime location and relatively low land
premium paid for the site supported overall EBITDA margin of over
35% in the past three years and Fitch expects Oceanwide's margin
to stay above 30% over the next 24 months, a level that is one of
the highest among Chinese developers.

Ratios Used Reflect Transformation: Fitch measures Oceanwide's
financial soundness based on its CFO and its inventory turnover
(ratio of contracted sales to net inventory).  Oceanwide's
inventory turnover improved to 0.29x in 2015 from 0.23x in 2014,
and we expect this to further improve to 0.4x in 2016 as sales
from its large pool of properties under development increase
while land replenishment remains minimal.  The improved inventory
turnover and likely generation of positive CFO will provide
Oceanwide with funds to expand its financial businesses.

                          KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

   -- Limited new land acquisitions at 0.1x-0.4x of contracted
      sales GFA

   -- Contracted sales growth mainly driven by growth in average
      selling prices to CNY35,000/sq m in 2016-2018 from
      CNY32,000/sq m in 2015

   -- Property development gross margin of 50%-53% in 2016-2018
      (lower than in previous years due to higher construction
      cost)

   -- Lower dividend payout ratio than in previous years

                      RATING SENSITIVITIES

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

   -- Failure to achieve positive operating cash flow in 2016
   -- EBITDA margin sustained below 35%
   -- Contracted sales/net inventory sustained below 0.5x
   -- Substantial weakening of in the credit profile of Minsheng
      Securities, in which Oceanwide acquired a majority stake in
      2014

Positive: Positive rating action is not expected in the next 12-
18 months due to Oceanwide's high leverage.


OCEANWIDE HOLDINGS: S&P Rates Proposed US$200M Sr. Note Retap 'B'
-----------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B' long-term
issue rating and 'cnB+' long-term Greater China regional scale
rating to a proposed up to US$200 million retap of the U.S.
dollar denominated senior unsecured notes due 2020 that Oceanwide
Holdings Co. Ltd. and its offshore subsidiary China Oceanwide
Group Ltd. guarantee.  Oceanwide's fully owned special-purpose
vehicle Oceanwide Holdings International 2015 Co. Ltd. will issue
the notes, which will be consolidated and form a single series
with the US$400 million notes issued in August 2015.

The issue rating is subject to our review of the final issuance
documentation and the meeting of the registration requirements of
China's State Administration of Foreign Exchange.  S&P
anticipates that Oceanwide will use the proceeds from the
proposed notes for overseas general corporate purposes, including
the development of a project located in the U.S.

The negative outlook on the company reflects S&P's expectation
that Oceanwide's cash flow and leverage ratios will remain weak
over the next 12 months due to the company's continued aggressive
growth and acquisition appetite.  This is despite S&P's
expectation that property sales will grow and profitability will
remain above average during that time.  S&P also expects the
financial sector's business performance and dividend contribution
to Oceanwide to improve.  At the same time, S&P expects the
company to maintain its liquidity through good access to banks
and capital markets.


XINYUAN REAL: Fitch Affirms 'B' IDR; Outlook Stable
---------------------------------------------------
Fitch Ratings has affirmed Chinese homebuilder Xinyuan Real
Estate Co., Ltd.'s Long-Term Foreign-Currency Issuer Default
Rating at 'B' with Stable Outlook.  The agency has also affirmed
Xinyuan's senior unsecured rating at 'B', with Recovery Rating at
'RR4'.  The full list of rating actions is at the end of this
commentary.

                        KEY RATING DRIVERS

Strong Contracted Sales: Xinyuan's strong contracted sales in
2015 and 1Q16 were mainly driven by robust market sentiment in
its core Tier 2 and Tier 3 cities, namely Zhengzhou, Jinan,
Suzhou and Kunshan.  Tier 2 cities contributed 75% and 62% of
contracted sales in 1Q2016 and 2015, respectively.  Tier 1
cities' contribution was lower due to less saleable resources in
Beijing and the delayed launch of the Shanghai project, which
also drove average selling price (ASP) 12% lower in 2015.

Low Land-Bank Constrains Ratings: Xinyuan's total sellable gross
floor area (GFA) increased to 2.7 million sq m at end-March 2016,
from 2.3 million sq m at end-2015.  Its land-bank will last 3.1
years, based on 2015 sales, which remains low compared to 'B'-
rated peers.  Apart from normal public auctions, Xinyuan pays
advance deposits to local government or industry partners to
secure a large part of its future land-bank.  There is greater
uncertainty about its land-bank as a result of this acquisition
strategy, which continues to constrain scale and sales.

Land Replenishment Pressuring Leverage: Xinyuan has sped up
acquisitions after not purchasing any new land in 2015, so far
announcing acquisitions of CNY3.1 bil., almost filling its whole
2016 budget.  Xinyuan's leverage, measured by net-debt-to-
adjusted-inventory, climbed to 49% at end-1Q16, from 45% at end-
2015.  Even with a prudent strategy, Fitch expects Xinyuan to
overrun budget by around 20% for new land acquisition GFA to
cover contracted sales GFA.

With its low land-bank, fast asset-churn model, the company's
high land replenishment needs will continue to pressure leverage.
Fitch expects leverage to hover around 50%-55% in 2016-2018, in
view of surging land prices in higher-tier cities amid fierce
competition and limited upside for ASPs in the current policy
environment.

Margin Recovery Under Pressure: Xinyuan's gross margin further
declined to 21% in 1Q16, from 23% in 2015 and 26% in 2014, due to
recognition of low-margin projects in Suzhou, Zhengzhou, and
Kunshan - cities where land costs formed 25%-35% of ASP.
However, EBITDA margin (after adding back capitalised interest)
improved from 14.7% in 2015 to 15.7% in 1Q16, mainly due
management's efforts to reduce selling, general and
administration costs.  Fitch expects gross margin to slowly
recover in 2016, in line with surging ASPs in Suzhou and Kunshan
in 2H15 and stable ASPs in Jinan and Zhengzhou.  However, this
improvement could be jeopardized from 2017 if land acquisition
costs sprint ahead of the ASP rise.  The average cost of land
acquired in Tier 1 and Tier 2 cities increased 58% to USD610 per
square metre (sq m) so far in 2016, from USD387 per sq m in 2014.

Tight But Sustainable Liquidity: The company's liquidity position
has slightly improved, with its ratio of cash- to short-term debt
rising to 92% at end-2015, from 58% a year earlier.  Xinyuan's
total cash of USD751 mil. and undrawn credit facilities of
USD24 mil. at end-2015 are still insufficient to cover its short-
term borrowings of USD817 mil. and acquisition costs.  Xinyuan's
active fundraising in the onshore bond market has alleviated its
refinancing pressure.  The company issued two five-year bonds of
USD107 mil. and USD77 mil. at 7.47% and 7.09% in 2016.  These
issuances will bring down Xinyuan's average borrowing cost from
9.5% at end-2015.

                          KEY ASSUMPTIONS

   -- Contracted sales GFA to increase 5% between 2016 and 2018
      due to improved churn in Tier 1 and Tier 2 cities

   -- Contracted sales ASP to increase around 5% between 2016 and
      2018 due to price increases in Tier 1 and Tier 2 cities and
      Xinyuan's shift to higher-tier cities

   -- Land purchase pace to pick up in 2016, but remain prudent.
      New land acquisition GFA/contracted sales GFA maintained
      around 1x-1.1x in 2016-2018

   -- Land cost per sq m increasing to USD610 in 2016, then down
      to USD480-500 in 2017-2018, assuming less acquisitions in
      Tier 1 cities and prudent expansion in US

   -- Construction cost per sq m declining to around USD650-700
      in 2016-2018, due to cheaper construction cost in Tier 2
      cities

   -- Selling, general and administration costs as percentage of
      contracted sales will gradually decrease to between 12%-13%
      as Xinyuan plans to cut internal costs

                        RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to negative rating action include:

   -- net debt/adjusted inventory rising above 60% on a sustained
      Basis

   -- contracted sales/total debt falling below 0.6x on a
      sustained basis

   -- EBITDA margin falling below 15% on a sustained basis

Future developments that may, individually or collectively, lead
to positive rating action include:

   -- significant increase in scale, as reflected by contracted
      sales exceeding CNY15bn

   -- net debt/adjusted inventory sustained below 40%

   -- contracted sales/total debt improving to above 1.0x on a
      sustained basis

   -- EBITDA margin improving to above 20% on a sustained basis

The list of rating actions is:

  Long-Term Foreign-Currency IDR affirmed at 'B', Outlook Stable
  Senior unsecured rating affirmed at 'B', with a Recovery Rating
   of 'RR4'
  Rating on USD200 mil. 13.00% senior unsecured bond due 2019
   affirmed at 'B', with a Recovery Rating of 'RR4'
  Rating on USD200 mil. 13.25% senior unsecured bond due 2018
   affirmed at 'B', with a Recovery Rating of 'RR4'



================
H O N G  K O N G
================


HANERGY THIN: Eyes Home Solar to Move Past $19 Billion Collapse
---------------------------------------------------------------
Bloomberg News reports that Hanergy Thin Film Power Group Ltd. is
developing new products and sales channels as the solar-equipment
maker tries to distance itself from a share suspension and
investigation by Hong Kong's stock market regulator that are
nearing the 12-month mark.

Bloomberg relates that almost a year has passed since Hanergy's
Hong Kong-listed shares were suspended on May 20 after about
$19 billion was gouged off the company's market value in one day.
According to Bloomberg, the collapse capped a tumultuous ride for
Hanergy that made the solar power group a symbol of the froth in
Chinese stock markets and turned its chairman, Li Hejun, into a
celebrity.

The company is pressing ahead with efforts to sell solar power
systems for residential use through a dealership model similar to
that used by automobile makers and has signed agreements with
more than 1,300 dealers since 2015, Hanergy's parent, Hanergy
Holding Group Ltd., said in an e-mail obtained by Bloomberg.
Hanergy Holding also plans to hold a news conference on June 5 to
unveil a solar-powered car, the report relays.

"Using dealerships for solar system sales is rare in China," the
report quotes Wang Xiaoting, a Hong Kong-based analyst from
Bloomberg New Energy Finance, as saying. "Silicon-based panel
makers usually sell products to big customers directly as they
are predictable."

Since Hanergy's shares were suspended, several existing or
potential customers have expressed an intention to reduce, stop
or delay cooperation, Hanergy Holding said in the e-mail,
Bloomberg relays. At the same time, Hanergy has received 7,100
orders through its dealer network in China as of the end of
March, it said.

Bloomberg notes that residential comprises a small portion of the
photovoltaic power market in China, where land is state-owned and
single-family houses are still relatively rare. The major market
for the kind of systems Hanergy is now promoting through dealers
is in rural areas where rooftops are in more abundance and where
property is individually held, Bloomberg says.

Hanergy Thin Film is also targeting commercial use of solar
systems by big industrial and commercial customers -- including
those combined with agriculture -- and expects to generate
"considerable income" from systems to be sold for agriculture in
2016, the parent, as cited by Bloomberg, said.

Since March 18, the company has targeted the rooftop market
through a campaign called "Golden Rooftop Action," Hanergy
Holding said, Bloomberg relays. The company is also continuing to
push for a wider adoption of solar cells on a range of products
from furniture to bags and umbrellas as part of an effort long
spearheaded by Li, adds Bloomberg.

Bloomberg meanwhile reports that Hanergy Thin Film has been
communicating with Hong Kong's securities regulator, though the
company hasn't been told when the investigation will be concluded
or when the shares can resume trading, the parent said.

According to Bloomberg, Hanergy Holding said in the e-mail that
it secured a CNY636 million ($97 million) loan last year from
China Development Bank Corp. to fund construction of a plant that
will produce 600 megawatts of solar cells a year in Zibo in
China's eastern province of Shandong.

The parent will accelerate the pace of building production lines
using copper, indium, gallium and selenide or gallium arsenide,
it said. Its production line based on technology acquired from
MiaSole in 2013 has started trial operations in Heyuan in China's
southern province of Guangdong, the company added.

Even before the share collapse, some investors and analysts had
questioned a business model at Hanergy that relied mainly on
sales of solar production equipment to the parent.
About 61% of the revenue for the listed unit came from Beijing-
based Hanergy Holding and its affiliates in 2014, Bloomberg
notes.

Earlier this year, Hanergy Thin Film reported its first annual
loss since 2009 as revenue plunged and auditors expressed doubts
about its ability to stay in business, according to Bloomberg.

Based in Hong Kong, Hanergy Thin Film Power Group Limited,
formerly Hanergy Solar Group Limited, is an investment holding
company. The Company, along with its subsidiaries, is engaged in
producing equipment and turnkey production lines for manufacture
of amorphous silicon based thin film solar photovoltaic modules,
as well as the design, manufacture and sale of toys. The Company
operates in one segment: manufacture of equipment and turnkey
production lines, which includes the manufacture of equipment and
turnkey production lines for the manufacture of amorphous silicon
based thin film solar photovoltaic modules.



=========
I N D I A
=========


AMAR PLASTIC: Ind-Ra Raises Long-Term Issuer Rating to 'IND BB-'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Amar Plastic
Industries' (APIS) Long-Term Issuer Rating to 'IND BB-' from
'IND B+'.  The Outlook is Stable.  The agency has also upgraded
APIS' non-fund based working capital limits of INR60m to 'IND
A4+' from 'IND A4'.

KEY RATING DRIVERS

The upgrade reflects the improvement in APIS' overall credit
metrics in FY15, as reflected in its interest coverage of 1.8x
(FY14: 1.4x) and net leverage (total adjusted net debt/operating
EBITDAR) of 3.5x (4.7x).  This improvement resulted from an
improvement in its operating EBITDA margins to 2.9% in FY15
(FY14: 2.2%) on account of a decline in raw material prices.

However, the scale of operations remains small, with revenue of
INR192 mil. in FY15 (FY14: INR195 mil.).  According to FY16
provisional financials, APIS' revenue was INR180 mil., interest
coverage was 2.3x and net leverage was 3.3x.

The ratings also remain constrained by APIS' partnership nature
of constitution.

The ratings, however, continue to be supported by one of APIS
founders' experience of close to four decades in the plastics
industry.

                         RATING SENSITIVITIES

Positive: An improvement in the scale of operations along with an
overall improvement in the credit metrics will be positive for
the ratings.

Negative: Any deterioration in the overall credit metrics will be
negative for the ratings.

                         COMPANY PROFILE

APIS is a partnership firm established in June 1979.  The firm
imports and trades plastic raw materials including polypropylene
which constitutes 75%-80% of the turnover.  It also manufactures
plastic articles.


ASHOK BRICKS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ashok Bricks
Industries Private Limited (Ashok) a Long-Term Issuer Rating of
'IND BB+'.  The Outlook is Stable.

                       KEY RATING DRIVERS

The ratings reflect Ashok's moderate scale of operations and
credit profile.  Provisional FY16 financials indicate revenue of
INR859 mil. (FY15: INR556 mil.), interest coverage of 3.7x
(2.8x), net financial leverage of 2.4x (2.5x) and EBITDA margins
of 12.5% (11.1%).

The ratings also reflect Ashok's moderate liquidity profile with
its average peak utilization of the fund-based limits being
around 97% during the 12 months ended March 2016.

The ratings are constrained by the company's high geographical
concentration, with its operations being restricted to Western
Odisha.

The ratings, however, are supported by Ashok's healthy order book
size of around INR1,500m.

                        RATING SENSITIVITIES

Positive: A substantial improvement in the scale of operations
and credit profile will be positive for the ratings.

Negative: Any deterioration in the credit profile will be
negative for the ratings.

                          COMPANY PROFILE

Ashok was established in 1992 as a partnership firm by Pramod
Agarwal and Ashok Agarwal.  In 1999, the firm was converted into
a private limited company and entered the construction industry.

Ashok's ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
   -- INR140 mil. fund-based limits: assigned 'IND BB+'; Outlook
      Stable
   -- INR100 mil. term loan: assigned 'IND BB+' Outlook Stable
   -- INR200 mil. non-fund-based limits: assigned 'IND A4+'


AUCKLAND INTERNATIONAL: Ind-Ra Assigns 'IND BB+' LT Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Auckland
International Ltd. (AIL) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable.

                         KEY RATING DRIVERS

The ratings reflect AIL's moderate scale of operations and
moderate credit metrics as indicated by its revenue of INR958
mil. in FY15 (FY14: INR1,208 mil.), interest coverage (operating
EBITDA/gross interest expense) of 0.9x (4.4x)  and net leverage
(total adjusted net debt/operating EBITDAR) of 14.8x (2.2x).
According to the provisional financials of FY16, the company
reported revenue INR1,597 mil. (up 66.7% yoy).

The ratings factor in the company's presence in the labour
intensive and highly regulated jute industry.  Since jute is an
agricultural product, its supply depends on weather conditions
which lead to volatility in its prices and quality.

The ratings, however, are supported by AIL's strong liquidity
profile as reflected by its average maximum working capital limit
utilization of 27% during the 12 months ended April 2016.  The
ratings also consider more than five decades of operating
experience of its promoter in the jute manufacturing business.

                       RATING SENSITIVITIES

Positive: A substantial improvement in the overall credit metrics
could be positive for the ratings.

Negative: Any deterioration in the overall liquidity profile
along with the credit metrics could lead to a negative rating
action.

                        COMPANY PROFILE

Incorporated in 1977, AIL manufactures various jute products at
its 25820mtpa plant in Jagatdal, West Bengal.

AIL's ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
   -- INR82.5 mil. fund-based facilities: assigned 'IND BB+';
      Outlook Stable
   -- INR15 mil. non-fund-based facilities: assigned 'IND A4+'


BAREILLY HIGHWAYS: CARE Reaffirms B+ Rating on INR1,350cr Loan
--------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Bareilly Highways Project Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities
   (Senior Debt)                  1,350     CARE B+ Reaffirmed

   Long-term Bank Facilities
   (Subordinate Debt)                50     CARE B+ Reaffirmed

Rating Rationale

The rating assigned to the bank facilities of Bareilly Highways
Project Limited (BHPL) continues to factor in slow execution
of the project, project implementation risk, inherent risks
associated with a toll-based project and weak financial risk
profile of the parent company. The rating draws support from the
expertise of the promoters in road segment, receipt of partial
grant from NHAI and proposed extension in Scheduled Commercial
Operation Date (SCOD) by the Independent Engineer (IE).

Going forward, handing over of the balance land from NHAI, timely
receipt of balance grant, successful mobilization of funds,
completion of the project as envisaged and level of toll
collection shall be the key rating sensitivities.

BHPL is a special purpose vehicle (SPV) promoted by Era Infra
Engineering Ltd (EIEL, rated 'CARE D') and OJSC Sibmost (Sibmost)
to undertake 4-laning of the existing 2-lane road from Km 262.0
to Km 413.2 (total project length of 156.57 km) on NH-24 from
Bareilly to Sitapur in state of Uttar Pradesh under National
Highways Development Programme (NHDP) Phase III of NHAI (rated
'CARE AAA') on Design, Build, Finance, Operate & Transfer (Toll)
basis. As per the concession agreement (CA) signed between NHAI &
BHPL in June 2010, the concession period is for 20 years
(including a construction period of 2.5 years) from the Appointed
Date (March 01, 2011). The original scheduled project completion
date (SPCD) was Aug. 28, 2013, which had been earlier revised to
December 31, 2016, by NHAI (subject to certain conditions). The
IE has further recommended extension in SCOD till May 14, 2017.

The total project cost is estimated at INR2,601.89 crore to be
funded through promoter contribution of INR550.75 crore, grant of
INR255 crore from NHAI, term loans of INR1,746.14 crore and
subordinate debt (from banks) of INR50 crore. As of Dec. 31,
2015, the company has spent INR1,377.53 crore on the project,
funded through promoter contribution of INR297.38 crore, debt of
INR967.04 crore, grant of INR60.57 crore and current liabilities
of INR52.54 crore. The company has received three tranches of
grant from NHAI amounting to INR95.99 crore till January 2016.


BHUPTANI ASSOCIATES: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Bhuptani
Associates (BA) a Long-Term Issuer Rating of 'IND BB-'.  The
Outlook is Stable.

                        KEY RATING DRIVERS

The ratings reflect BA's small scale of operations, moderate
credit metrics and weak order book position.  FY15 revenue was
INR384 mil. (FY14: INR351 mil.), net leverage (total adjusted net
debt/operating EBITDAR) was 1.4x (0.2x) and EBITDA interest
coverage (operating EBITDA/gross interest expense) was 1.6x
(1.6x). Its EBITDA margins ranged between 3.1%-4.2% during FY12-
FY15.

Ind-Ra expects the company to have ended FY16 with the net
leverage below 3.0x and EBITDA interest coverage over 3.86x based
on its 11MFY16 provisional financials, which show revenue of
around INR286.3 mil. with the EBITDA margins of around 5.3%.

The ratings, however, are supported by the company's comfortable
liquidity profile with its average 79% utilization of the working
capital facility for the 12 months ended March 2016.

The ratings are further supported the firm's promoter's operating
experience of more than 25 years in the engineering, procurement
and construction segment.  The ratings also factor in the
partnership form of organization.

                      RATING SENSITIVITIES

Positive: A substantial growth in the top line and improvement in
the profitability leading to a sustained improvement in the
credit metrics could lead to a positive rating action.

Negative: Any decline in the profitability resulting in a further
stress on the liquidity position and sustained deterioration in
the credit profile could lead to a negative rating action.

                          COMPANY PROFILE

BA was established in 1971 as Sorath Construction and was renamed
in 1993.  Based in Junagadh (Gujarat), the firm specializes in
executing civil construction projects.

BA ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
   -- INR30 mil. fund-based working capital facilities: assigned
      'IND BB-'/Stable/'IND A4+'
   -- INR70 mil. non-fund-based working capital facilities:
      assigned 'IND A4+'


COMMERCIAL CARRIERS: CARE Assigns B+ Rating to INR5.99cr LT Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of
Commercial Carriers Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities     5.99       CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Commercial Carriers
Ltd (CCL) is constrained by its small size of operations with
thin profit margins, volatility in fuel prices, high average
collection period leading to high working capital cycle, customer
concentration risk, leveraged capital structure with weak debt
protection metrics and its presence in a growing yet highly
competitive and fragmented nature of the industry. The aforesaid
constraints are partially offset by the experience of the
promoters with long track record of operation and diversified
sectoral base.

The ability of the company to increase its scale of operations
along with improvement in profit margins and its ability to
manage working capital effectively will be the key rating
sensitivities.

CCL was started as a partnership firm in 1978 by Mr D.N. Mallick
and Mrs Supti Mallick of Guwahati. In March 1993, the
company was incorporated as a private limited company and
subsequently, in April 2012, it was reconstituted as public
limited company with its name changed to the current one. The
company is engaged in the business of surface transportation
& logistics. It offers services like transportation of various
regular consignments; containerize transportation, transportation
of various types of odd size consignment, etc, for different
major industrial houses. Currently, about 80% of business is
generated through own fleet of vehicles and for balance, the
company resorts to hired vehicles. Furthermore, it has developed
strong client relationship with many reputed private and public
sector entities over the years. The Company operates through a
fleet of 174 vehicles.

Mr Indrajeet Mallick (Son of Mr D.N. Mallick), aged about 24
years, is the Managing Director of CCL, having around six years
of
experience in this trade. He monitors the overall functioning of
the company with adequate support from other directors: Mr
D.K. Roy and Mr K.K. Sinha who are having more than two decades
of experience in this business.

In FY15 (refers to the period April 1 to March 31), the company
achieved a PAT of INR0.16 crore (INR0.42 crore in FY14) on
total operating income of INR30.00 crore (INR28.68 crore in
FY14).


DERBY CLOTHING: CRISIL Reaffirms B- Rating on INR80MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Derby Clothing Private
Limited (Derby) continues to reflect its below-average financial
risk profile, marked by weak debt protection metrics, its large
working capital requirements, and its modest scale of operations.
These rating weaknesses are partially offset by the extensive
experience of the company's promoters in the ready-made garments
industry.

                         Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             80       CRISIL B-/Stable (Reaffirmed)
   Letter of Credit         5       CRISIL A4 (Reaffirmed)

Outlook: Stable

CRISIL believes that Derby will continue to benefit over the
medium term from its promoters' extensive experience. The outlook
may be revised to 'Positive' if the company's revenue and
profitability improve significantly leading to better than
expected cash accruals or its working capital management improves
thereby improving its financial risk profile particularly its
liquidity. Conversely, the outlook may be revised to 'Negative'
if Derby's scale of operations reduces or if its financial risk
profile deteriorates further, most likely because of increased
working capital borrowings, large debt-funded capital
expenditure, or lower-than-expected cash accruals.

DCPL was incorporated in Chennai in 1999. The company
manufactures and retails men's ready-made garments. It is
promoted by Mr. Vijay Kapoor.


EMBOSS EDUCATION: CRISIL Assigns 'B' Rating to INR85MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Emboss Education LLP (EEL).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Rupee Term Loan           85       CRISIL B/Stable

The rating reflects EEL's expected small scale from operating a
kindergarten school, exposure to quantum and timeliness of cash
inflows from property given to Apple Global School, and firm's
constrained financial risk profile because of large debt funded
capital expenditure. These rating weaknesses are partly mitigated
by the extensive entrepreneurial and education sector experience
of the promoters and their fund support.
Outlook: Stable

CRISIL believes the firm will continue to benefit from the
extensive experience of the promoters. The outlook may be revised
to 'Positive' if cash inflows are higher than expected leading to
easing of liquidity pressure. Conversely, the outlook may be
revised to 'Negative' if lower cash inflows partly reduces firm's
debt servicing ability.

EEL is a limited liability partnership firm set up in 2014.
Promoted by Ms. Liza Shah and Mr. Jigish Shah, the firm provides
infrastructure services to group entity, Apple Global School
(AGS).


G.S. MAJESTIC: CRISIL Suspends 'B' Rating on INR300MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
G.S. Majestic Developers Private Limited (GSMD).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              300       CRISIL B/Stable

The suspension of rating is on account of non-cooperation by GSMD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GSMD is yet to
provide adequate information to enable CRISIL to assess GSMD's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'

Incorporated in 2010, GSMD is setting up a shopping mall in
Ludhiana (Punjab). The total project cost is estimated at INR1300
million and is expected to be funded in a debt-to-equity ratio of
3:10. The construction has been completed and the mall is
expected to begin operations by November 2014.


GOMATHI STEELS: CRISIL Reaffirms B+ Rating on INR10MM Loan
----------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Gomathi Steels
(GS) continue to reflect GS's modest scale of operations in the
highly-competitive steel products industry, and its below-average
financial risk profile, marked by a modest net worth, high
gearing, and weak debt protection metrics.

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Bank Guarantee           20      CRISIL A4 (Reaffirmed)
   Bill Discounting         20      CRISIL A4 (Reaffirmed)
   Bill Discounting         10      CRISIL B+/Stable (Reaffirmed)
   Bill Discounting
   under Letter of
   Credit                   15      CRISIL A4 (Reaffirmed)
   Cash Credit             140      CRISIL B+/Stable (Reaffirmed)
   Intraday Limit            1      CRISIL A4  (Reaffirmed)
   Term Loan                20      CRISIL B+/Stable (Reaffirmed)

These rating weaknesses are partially offset by the extensive
experience of the firm's proprietor in the steel products
industry.
Outlook: Stable

CRISIL believes that GS will continue to benefit over the medium
term from the industry experience of its proprietor. The outlook
may be revised to 'Positive' if the firm substantially increases
its scale of operations while improving its margins and capital
structure. Conversely, the outlook may be revised to 'Negative'
in case of a significant decline in GS's revenue and margins or
lengthening of its working capital cycle, leading to further
deterioration in its financial risk profile.

GS is a proprietorship concern of Mr. Govindasamy established in
2003. The firm manufactures various steel products such as nails,
bolts, couplers, and mild steel wires, and also trades in steel
wire rods. Its manufacturing units are near Chennai (Tamil Nadu).


GOURANGA COLD: CRISIL Reaffirms B- Rating on INR98.5MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Gouranga Cold Storage
Private Limited (GCSPL) continue to reflect GCSPL's small scale
of operations and below-average financial risk marked by a low
net worth, high gearing and weak debt protection metrics. The
ratings also factor in the company's susceptibility to regulatory
changes and intense competition in the cold storage industry in
West Bengal (WB). These rating weaknesses are partially offset by
the benefits GCSPL derives from the extensive industry experience
of its promoters.

                        Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit           98.5       CRISIL B-/Stable (Reaffirmed)
   Term Loan              8.0       CRISIL B-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes GCSPL will continue to benefit over the medium
term from the extensive industry experience of promoters. The
outlook may be revised to 'Positive' if an increase in cash
accrual, or infusion of capital by promoters leads to improvement
in the financial risk profile, particularly liquidity.
Conversely, the outlook may be revised to 'Negative' in case of
pressure on liquidity on account of delays in repayment by
farmers, considerably low cash accrual, or significant, debt-
funded capital expenditure.

GCSPL, incorporated in 1987, provides cold-storage facility to
potato farmers and traders. The company is owned by the WB-based
Dolui family, which has experience of over two decades in the
same line of business. GCSPL's cold storage, with capacity of
about 42,960 tonnes divided into five chambers, is in Paschim
Medinipur, WB. Average capacity utilisation during 2015-16(refers
to financial year, April 1 to March 31) was over 95 percent.


HARIDWAR HIGHWAYS: CARE Lowers Rating on INR981.09cr Loan to B+
---------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Haridwar Highways Project Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities    981.09      CARE B+ Revised from
                                            CARE BB-

Rating Rationale

The revision in the rating assigned to the bank facilities of
Haridwar Highways Project Limited (HHPL) factors in the slow
progress of the project compared to envisaged timelines. The
rating is constrained by the risk of additional equity funding
requirement on account of time and cost over runs, project
implementation risk, inherent risks associated with a tollbased
project and weak financial risk profile of the promoter. However,
the rating draws support from the experience of the promoters in
the road segment.

Going forward, handing over of balance land from NHAI, timely
receipt of grant and successful mobilization of funds, completion
of the project as envisaged and level of toll collection shall be
the key rating sensitivities.

HHPL is a special purpose vehicle (SPV) promoted by Era Infra
Engineering Ltd (EIEL, rated 'CARE D') and OJSC- Sibmost
(Sibmost) for augmentation of 2-lane carriageway of the existing
section of NH-58 from km 131.0 to km 211.0 to a 4-lane
dual carriageway from Muzaffarnagar to Haridwar in the state of
Uttar Pradesh & Uttarakhand under National Highways Development
Programme (NHDP) Phase III of NHAI on Design, Build, Finance,
Operate & Transfer (Toll) basis. As per the concession agreement
(CA) signed between NHAI and HHPL in February 2010, the
concession period is 25 years (including a construction period of
2.5 years) from the Appointed Date (September 3, 2010). The
original SPCD was March 1, 2013, which has been revised to June
30, 2016, by NHAI (subject to certain conditions).

The total project cost was originally envisaged at INR1,100.60
crore to be funded through promoter contribution of INR200
crore, grant of INR210 crore from NHAI, term loans of INR690.60
crore. The project cost had been revised to INR1,563.55
crore to be funded through promoter contribution of INR372.46
crore, grant of INR210 crore from NHAI, term loans of
Rs.981.09 crore. As of December 31, 2015, the company has spent
INR1,146.07 crore on the project, funded through
promoter contribution of INR286.85 crore, debt of INR712.09
crore, grant of INR123.59 crore and current liabilities of
INR23.55 crore. The company has received three tranches of grant
from NHAI amounting to INR169.46 crore till February 2016.


HYDERABAD RING: CARE Lowers Rating on INR265.13cr LT Loan to 'D'
----------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Hyderabad Ring Road Project Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities    265.13      CARE D Revised from
                                            CARE BB

Rating Rationale

The revision in the rating assigned to the bank facilities of
Hyderabad Ring Road Project Pvt Ltd (HRRP) takes into account
delays in debt servicing due to delays in receipt of annuity from
the authority.

Hyderabad Ring Road Project Private Limited (HRRP) is a special
purpose vehicle (SPV) promoted by the consortium of Era Infra
Engineering Limited (EIEL, rated CARE D) and Induni CIE SA
(Induni), for executing and operating a 8-lane expressway
(Narsingi to Kollur from km 0 to km 12 package) under Phase-II of
outer ring road project of Hyderabad Growth Corridor Limited
(HGCL, in which 74% stake is held by Hyderabad Metropolitan
Development Authority (HMDA)) on Build Operate Transfer (BOT -
Annuity) basis.

The project, initially envisaged to be completed in June 2010,
was delayed significantly primarily due to land acquisition
issues and provisional COD was received with effect from March
30, 2012. The delays, in turn, resulted in cost overrun and
INR600.33 crore had been incurred on the project as on March 31,
2015 as against the initially envisaged cost of INR390.02 crore.
The concession period of the project is of 15 years from the
appointed date, which is December 12, 2007.

During FY15 (refers to the period April 1 to March 31), the
company reported a total operating income of INR62.28 crore
and net loss of INR52.12 crore as compared to a total operating
income of INR65.45 crore and net loss of INR29.35 crore in
FY14.


INDIAN YARN: CARE Reaffirms 'D' Rating on INR67.25cr LT Loan
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Indian Yarn Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     67.25      CARE D Reaffirmed
   Short-term Bank Facilities     3.36      CARE D Reaffirmed

Rating Rationale

The reaffirmation of the ratings assigned to the bank facilities
of Indian Yarn Limited (IYL) take into account the ongoing delays
in debt servicing due to stressed liquidity position of the
company.

IYL incorporated in 1992 was promoted by Mr V K Indrayan. The
company is engaged in the manufacturing of synthetic yarn with
its manufacturing facilities in Ludhiana, Punjab, and has an
installed capacity of 38,616 spindles. During H1FY13, the
promoters of Shiva Texfabs Limited (Ludhiana-based group) have
entered into an agreement with the erstwhile promoters of IYL to
acquire 100% stake in IYL. The transaction was completed at the
end of FY13 (refers to the period April 1 to March 31).

IYL registered a total operating income of INR120.97 crore with a
net loss of INR13.71 crore in FY15 as against a total operating
income of INR142.78 crore with a net loss of INR7.94 crore in
FY14.


KARNATAKA NUTRACEUTICALS: CRISIL Rates INR20MM Cash Loan at 'B'
---------------------------------------------------------------
CRISIL has assigned the 'CRISIL B/Stable/CRISIL A4' ratings to
the bank loan facilities of Karnataka Nutraceuticals India
Limited (KNIL).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Packing Credit           50        CRISIL A4
   Cash Credit              20        CRISIL B/Stable
   Letter of Credit         30        CRISIL A4

The ratings reflect the modest scale of operations, exposure to
competitive pressures in both domestic and international markets,
and working capital-intensive operations. These weaknesses are
partially offset by the extensive experience of promoters in the
drug manufacturing industry, geographical diversification in
revenue profile and comfortable gearing.

Outlook: Stable

CRISIL believes KNIL will benefit over the medium term from its
promoters' extensive industry experience in nutraceutical
industry and its geographical diversification in revenue. The
outlook may be revised to 'Positive' in case of improvement in
scale of operations and cash accruals leading to improvement in
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case KNIL records significantly lower than expected
cash accruals or undertakes large capex or if working capital
management deteriorates leading to weak financial risk profile.

Established in 2005, KNIL manufactures Halquinol B.P-80 and the
related range of products, supplied as veterinary feed additives
or supplements.

It has bulk drug manufacturing facilities in the special economic
zone at Hassan, Karnataka and is capable of producing specialised
active pharmaceutical ingredients for veterinary usage.

For 2015-16 (refers to financial year April 1 to March 31), on a
provisional basis, the company reported a loss of INR7.69 million
on a net sales of INR60.7 million, against loss of INR 1.57
million on net sales of INR 123.1 million posted in 2014-15.


KISAN AGRO: CARE Assigns B+ Rating to INR9.50cr LT Loan
-------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Kisan
Agro.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities      9.50      CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Kisan Agro (KA) is
constrained on account of the project execution and stabilization
risk, vulnerability to fluctuations in prices of raw material,
working capital intensive nature of operations and presence in a
fragmented industry which depends heavily on the vagaries of
nature.

The above weaknesses are partially offset by the extensive
experience of the promoters in the cattle feed business along
with their established relations with customers and suppliers.
Furthermore, the firm has an established market network through
its group entities' association with Govind Milk and Milk
Products Private Limited.

The ability of the company to complete the project as per the
scheduled timeline and without any cost overrun is a key rating
sensitivity.

KA was established in October 2015 by Mr Chandrashakhar Jagtap
along with Mr Shripad Jagtap, Mrs Malti Jagtap and Mrs Sita
Jagtap as a partnership firm. The Kisan group consists of two
other entities M/s. Vasant Krushi Seva Kendra & M/s. Jyoti Krushi
Seva Kendra that are engaged in the trading of cattle feed.

KA is proposed to set up a unit at Phaltan (District: Satara,
Maharashtra) with the primary objective to manufacture, process
and sell cattle feed. The installed capacity of the unit is
expected to be 100 tonnes/ day.

Furthermore, the products are proposed to be sold entirely in the
local market in and around Phaltan, Baramati, SataraLonand,
Khandala, Solapur and Pune.

The major raw materials required for the production of cattle
feed are cereals and grains (maize, sorghum & bajra), cakes and
meals (soybean, groundnut, rapeseed, sesame and sunflower,
cottonseed and copra are also used as premium ingredients). The
major application of the products of KA is industries like dairy
and poultry.

Project details:

The total cost of the cattle feed manufacture project at Phaltan
is estimated at INR14.18 crore which is proposed to be funded by
a promoters' contribution in the form of partner's capital of
INR1.00 crore, unsecured loan of INR2.68 crore, term loan from
bank of INR5.50 crore and working capital borrowing of INR5.00
crore. Furthermore, the project is expected to receive a capital
subsidiary of INR0.50 crore under the I Venture capital
assistance. The commercial production of the project is expected
to begin in December 2016.


KRISHNA PAPER: CRISIL Cuts Rating on INR64.2MM Cash Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Krishna Paper Projects Private Limited (KPPPL; part of the
Krishna group) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
BB/Stable/CRISIL A4+'.

                         Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             64.2      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB/Stable')

   Proposed Short Term    110.8      CRISIL A4 (Downgraded from
   Bank Loan Facility                'CRISIL A4+')


The downgrade reflects deterioration in group's financial risk
profile due to ongoing capital expenditure (capex) of around INR3
billion in Krishna Tissues Pvt Ltd (KTPL; part of the Krishna
group) to enhance its kraft paper manufacturing capacity. The
capex is being funded with term loan of INR2080 million and the
rest through own funds or internal accrual, and the project is
likely to be commissioned in October-November 2016. Debt-funded
capex has weakened gearing, estimated to be around 2 times as on
March 31, 2016, from 1 time in 2014-15 and 0.79 time in 2013-14.
The gearing is likely to remain above 2 times over the medium
term. Further the ongoing capex has also constrained the group's
liquidity since a significant portion of the group's cash accrual
shall be utilised towards the capex. CRISIL believes that timely
commissioning of the project, ramp up in scale of operations and
generation of adequate cash accruals shall continue to be key
rating sensitivity factors over the medium term on account of the
significant repayment obligations in the group for the debt
contracted post commencement of project.

The rating reflects exposure of Krishna group to risks associated
with timely completion, commissioning and stabilisation of its
ongoing project. The rating also reflects its working capital
intensive operations and susceptibility of the group's
profitability to volatility in raw material prices and foreign
exchange rates. These weaknesses are partially offset by its
established clientele and extensive industry experience of
promoters.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of KPPPL, M J K Mercantiles Pvt Ltd, Tara
Finvest Pvt Ltd and KTPL. This is because all these companies,
together referred to as the Krishna group, have a common
management and significant operational linkages.
Outlook: Stable

CRISIL believes the Krishna group will continue to benefit over
the medium term from the extensive experience of its promoters.
The outlook may be revised to 'Positive' in case of timely
implementation and stabilisation of ongoing project along with
generation of adequate cash accruals and efficient working
capital management. The outlook may be revised to 'Negative' if
time or cost overrun in project, lower than expected operating
income or accrual, stretch in working capital cycle, or any other
significant capex plans, further weakens the financial risk
profile, particularly liquidity.

The Krishna group manufactures duplex paper board and kraft
paper. KPPPL, TFPL, and MJK trade in waste paper and chemicals
used in the paper industry, and also procure waste paper for the
group's manufacturing unit, which is set up in KTPL. The group is
promoted by Kolkata based Bajaj family and has its existing
manufacturing unit located at Ghoraghata near Bagnan (West
Bengal). The upcoming unit is located in Burdwan, West Bengal.


L. K. AND SONS: CRISIL Suspends 'B' Rating on INR60MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
L. K. and Sons (LK).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Bank Guarantee           10        CRISIL A4
   Cash Credit              60        CRISIL B/Stable

The suspension of ratings is on account of non-cooperation by LK
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, LK is yet to
provide adequate information to enable CRISIL to assess LK's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'

Established in 1999, LK undertakes civil construction work,
mainly related to construction of roads and bridges for the
government. Its daily operations are being managed by Mr.
Laishram Kadamjit Singh.


M J K MERCANTILES: CRISIL Cuts Rating on INR41.1MM Loan to 'B+'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
M J K Mercantiles Private Limited (MJK; part of the Krishna
group) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
BB/Stable/CRISIL A4+'.

                         Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             41.1      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB/Stable')

   Letter of Credit        25.0      CRISIL A4 (Downgraded from
                                      'CRISIL A4+')

   Proposed Short Term     63.9      CRISIL A4 (Downgraded from
   Bank Loan Facility                'CRISIL A4+')

The downgrade reflects deterioration in group's financial risk
profile due to ongoing capital expenditure (capex) of around INR3
billion in Krishna Tissues Pvt Ltd (KTPL; part of the Krishna
group) to enhance its kraft paper manufacturing capacity. The
capex is being funded with term loan of INR2080 million and the
rest through own funds or internal accrual, and the project is
likely to be commissioned in October-November 2016. Debt-funded
capex has weakened gearing, estimated to be around 2 times as on
March 31, 2016, from 1 time in 2014-15 and 0.79 time in 2013-14.
The gearing is likely to remain above 2 times over the medium
term. Further the ongoing capex has also constrained the group's
liquidity since a significant portion of the group's cash accrual
shall be utilised towards the capex. CRISIL believes that timely
commissioning of the project, ramp up in scale of operations and
generation of adequate cash accruals shall continue to be key
rating sensitivity factors over the medium term on account of the
significant repayment obligations in the group for the debt
contracted post commencement of project.

The rating reflects exposure of Krishna group to risks associated
with timely completion, commissioning and stabilisation of its
ongoing project. The rating also reflects its working capital
intensive operations and susceptibility of the group's
profitability to volatility in raw material prices and foreign
exchange rates. These weaknesses are partially offset by its
established clientele and extensive industry experience of
promoters.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of MJK, Tara Finvest Pvt Ltd, Krishna
Paper Projects Pvt Ltd (KPPPL), and KTPL. This is because all
these companies, together referred to as the Krishna group, have
a common management and significant operational linkages.
Outlook: Stable

CRISIL believes the Krishna group will continue to benefit over
the medium term from the extensive experience of its promoters.
The outlook may be revised to 'Positive' in case of timely
implementation and stabilisation of ongoing project along with
generation of adequate cash accruals and efficient working
capital management. The outlook may be revised to 'Negative' if
time or cost overrun in project, lower than expected operating
income or accrual, stretch in working capital cycle, or any other
significant capex plans, further weakens the financial risk
profile, particularly liquidity.

The Krishna group manufactures duplex paper board and kraft
paper. KPPPL, TFPL, and MJK trade in waste paper and chemicals
used in the paper industry, and also procure waste paper for the
group's manufacturing unit, which is set up in KTPL. The group is
promoted by Kolkata based Bajaj family and has its existing
manufacturing unit located at Ghoraghata near Bagnan (West
Bengal). The upcoming unit is located in Burdwan, West Bengal.


MODERN DAIRIES: CARE Reaffirms 'D' Rating on INR121.25cr LT Loan
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Modern Dairies Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities    121.25      CARE D Reaffirmed
   Short-term Bank Facilities     4.10      CARE D Reaffirmed

Rating Rationale

The ratings assigned to the bank facilities of Modern Dairies
Limited (MDL) continue to factor in the ongoing delays in debt
servicing due to stressed liquidity position.

MDL was setup by Mr Krishan Kumar Goyal in 1992 with an initial
milk processing capacity of 3.25 lakh litre of milk per day
(LLPD). For liquid milk, the company has a tie-up with Mother
Dairy for complete off-take of 2 LLPD. Ghee is sold through the
company's own retail channel and through bulk sales under the
brand name of "SHWETA". The company supplies products like
skimmed milk powder (SMP) and other milk products like whole milk
powder, mozzarella cheese, casein to various institutional
buyers. The company is currently focusing on sale of Fresh dairy
products, cheese, ghee etc. in the domestic market under its own
brand name 'Modern Dairies', owing to the downtrend in prices of
milk and milk products in the export market. MDL has also
recently started supplying milk and various milk products in and
around the National Capital Region (NCR).

MDL registered a total operating income of INR626.99 crore with a
net loss of INR22.25 crore in FY15 (refers to the period April 1
to March 31) as against total operating income of INR640.56 crore
and a PAT of INR9.44 crore in FY14. In 9MFY16 (Provisional), the
company reported a total operating income of INR360.99 crore with
a net loss of INR19.85 crore


N SWARNA: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned N Swarna
Electricals & Contractors a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.

                         KEY RATING DRIVERS

The ratings reflect N Swarna's small scale of operations and its
declining profitability.  In FY15, revenue was INR230.69 mil.
while EBITDA margins declined to 9.7% from 13.3% in FY13 on
account of an increase in raw material prices, which could not be
passed on to customers.

The ratings also factor in the proprietorship form of
organization.

The ratings are supported by N Swarna's comfortable credit
metrics with EBITDA interest coverage of 3.11x and net leverage
(adjusted net debt/operating EBITDAR) of 1.65x in FY15.

Provisional FY16 financials indicate an improvement in the credit
metrics, despite a decline in profitability, on the back of a
higher absolute EBITDA and lower outstanding debt.  In FY16,
revenue was INR361 mil., EBITDA interest coverage was 5.53x, net
leverage was 0.8x and EBITDA margin were 6.9%.

The ratings are also supported by the nearly two-decade-long
operating record of the company's proprietor in electrical and
civil construction works.

                        RATING SENSITIVITIES

Positive: A sustained improvement in the scale of operations and
profitability with an improvement in the credit metrics will be
positive for the ratings.

Negative: A negative rating action could result from a decline in
the profitability resulting in deteriorated credit metrics.

                          COMPANY PROFILE

Incorporated in 2000, N Swarna executes electrical engineering
projects and civil construction projects.  It is headquartered at
Hanamakonda in Telangana.

The total outstanding debt at FYE16 was INR21.04 mil., which
comprised only unsecured loans.  The firm discontinued its fund-
based limit of INR35m in October-end 2015 and has been relying on
unsecured loans to meet its working capital requirements.

N Swarna's ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook
      Stable
   -- Proposed INR50 mil. fund-based working capital limits:
      assigned 'Provisional IND BB-'/Stable
   -- Proposed INR50 mil. non-fund-based working capital limits:
      assigned 'Provisional IND A4+'


POWERWIND LIMITED: CRISIL Suspends B- Rating on INR580MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Powerwind Limited (Powerwind).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              580       CRISIL B-/Stable

   Letter of credit &
   Bank Guarantee          1400       CRISIL A4

   Term Loan                520       CRISIL B-/Stable

The suspension of ratings is on account of non-cooperation by
Powerwind with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL,
Powerwind is yet to provide adequate information to enable CRISIL
to assess Powerwind's ability to service its debt. The suspension
reflects CRISIL's inability to maintain a valid rating in the
absence of adequate information. CRISIL considers information
availability risk as a key factor in its rating process as
outlined in its criteria 'Information Availability - a key risk
factor in credit ratings'

Powerwind manufactures wind turbine blades, and assembles wind
turbine generators at its plant in Bawal (Haryana). It is a part
of the New Delhi based RS India group, which has diverse business
interests such as real estate, infrastructure, and wind energy;
wind energy is one of the group's key business divisions. The RS
India group is promoted by Mr. Rajkumar Yadav, who also manages
the company along with a team of professionals.

Powerwind was established as Chettinad Energy Pvt Ltd (CEPL), in
2004 and was later renamed as RK Wind Pvt. Ltd in 2008-09. RK
Wind acquired the materials and intellectual property (IP) rights
of PowerWind gmbH in 2012-13, and was subsequently renamed as
Powerwind Ltd.


PRADEEP UDYOG: CARE Assigns 'B' Rating to INR10cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Pradeep
Udyog.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities       10       CARE B Assigned

Rating Rationale

The rating assigned to the bank facilities of Pradeep Udyog (PU)
is constrained on account of the nascent stage of operations,
vulnerability to fluctuations in prices of steel, working capital
intensive nature of operations, presence in a highly fragmented
industry and proprietorship nature of business leading to limited
financial flexibility.

The above weaknesses are partially offset by the extensive
experience of the promoters in trading of steel products along
with their established relations with customers and supplier.
Furthermore, the rating takes into account the support from the
group companies in terms of marketing and technical aspects.

The ability of the company to establish itself and manage working
capital requirements efficiently is the key rating sensitivity.

PU, based in Nagpur (Maharashtra), is promoted by Mr Pradeep
Agarwal and commenced operation in January 2016. PU is engaged in
trading of iron &steel products such as Thermo Mechanically
Treated (TMT) bars, round bars, angles, channels, beams, flats,
etc, which find application in various industries like
construction, infrastructure and engineering, amongst others. The
entity has its registered office and servicing facility based
in Nagpur. The servicing facility is owned by the entity and has
an area of 6,000 square feet (sq. ft.). The entity procures
materials from local and domestic suppliers based in Nagpur and
Raipur and sells its products in the state of Maharashtra.

PU is an associate concern of Miltech Industries Private Limited
(MIPL; erstwhile Miltech Metals Private Limited) (rated 'CARE
B+') in March 2016, promoted by Mr Govindlal Nityanand Agarwal in
1982. MIPL is engaged in plastic injection moulding and mainly
caters to the requirements of the defence ordnance factories and
has an in-house accredited laboratory by National Accreditation
Board for Testing and Calibration Laboratories (NABL).


R.K. RICE: CRISIL Reaffirms 'B' Rating on INR130MM Cash Loan
------------------------------------------------------------

CRISIL's rating on the long-term bank facilities of R.K. Rice and
General Mills (RKRG) continues to reflect its weak financial risk
profile, with small networth, high gearing, and below-average
debt protection metrics.

                        Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit           130         CRISIL B/Stable (Reaffirmed)
   Proposed Term Loan      7         CRISIL B/Stable (Reaffirmed)
   Term Loan               8         CRISIL B/Stable (Reaffirmed)

The rating also factors in small scale of operations, high
dependence on the monsoons, and susceptibility to changes in raw
material prices. These rating weaknesses are partially offset by
the extensive experience of the partners in the rice milling
industry.
Outlook: Stable

CRISIL believes RKRG will continue to benefit over the medium
term from its partners' extensive industry experience; however,
financial risk profile may remain constrained by low cash
accrual. The outlook may be revised to 'Positive' if a sizeable
capital infusion, efficient working capital management, or a
considerable increase in cash accrual strengthens financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
lower cash accrual, large working capital requirement, or
substantial debt-funded capital expenditure weakens credit
metrics.

Update
Revenue declined around 17 percent to INR442.4 million in 2015-16
(refers to financial year, April 1 to March 31) over the previous
year, due to unfavourable rise prices. However, operating margin
was stable at 6.7 percent. Revenue per annum and operating margin
should be INR450-500 million and 6.5-7.0 percent over the medium
term.

Financial risk profile remains weak because of estimated small
networth of INR30-33 million ,high gearing of around 5.5 times as
on March 31, 2016, and weak interest coverage at around 1.4 times
in 2015-16. The financial risk profile may remain constrained by
sizeable working capital requirement, low cash accrual, and,
therefore, larger debt.  The inventory days are expected to be in
the range of 140-160 days over the medium term. The creditors are
expected to remain in the range of 25-35 days over the medium
term as the firm receives credit from the local grain merchants .

Sizeable working capital debt and low networth will continue to
constrain liquidity and financial flexibility. Bank limit
utilisation was high'at 96 percent in 12 months through March
2016'on account of large working capital requirement. Annual cash
accrual of INR8-9 million should, however, be adequate to cover
maturing debt of INR3 million per annum. Inventory and creditors
are expected at 140-160 and 25-35 days, respectively, over the
medium term. Unsecured loans from promoters (Rs.52.7 million as
of March 2016) continue to support liquidity. CRISIL expects
RKRG's liquidity to remain weak on account of continued high
reliance on bank limit to meet working capital requirement and
small net worth.

RKRG was set up as a partnership firm in 2001 by Mr. Ram Karan
Goyal and Mr. Sanjeev Bansal. In 2008, the partnership was
reconstituted, with Mrs. Monica Goyal, daughter-in-law of Mr. Ram
Karan Goyal, taking over the stake of Mr. Sanjeev Bansal. RKRG's
daily operations are looked after by Mr. Ram Karan Goyal and his
son, Mr. Nitin Goyal. The firm mills basmati rice at its unit in
Cheeka (Haryana).


SANDWOOD INFRATECH: Ind-Ra Affirms 'IND BB' LT Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sandwood
Infratech Projects Pvt. Ltd.'s (SIPPL) Long-Term Issuer Rating at
'IND BB' with a Stable Outlook.

KEY RATING DRIVERS

The ratings continue to be constrained by SIPPL's limited
operating record in the real estate sector.  The company started
operations in 2004.  The ratings are also constrained by the
execution risk stemming from the company's three ongoing
projects. The company has achieved only 47% project completion
cumulatively. As per management discussions, SIPPL recorded
revenue of
INR390.7 mil. for FY16.

The ratings also factor in SIPPL's small scale of operations and
weak credit metrics, as evident in its top line of INR372 mil. in
FY15 (FY14: INR218 mil.),  financial leverage (total adjusted
debt/operating EBITDAR) of 3.5x (3.5x) and interest coverage
(operating EBITDA/gross interest expense) of 1.2x (1.4x).

The ratings, however, are supported SIPPL's managing director
S.K. Baagolia's experience of over 30 years in the real estate
sector.

                      RATING SENSITIVITIES

Positive: The timely completion of the projects and the sale of a
substantial number of housing units leading to strong visibility
of cash flow will be positive for the ratings.

Negative: Any slowing down of flat booking leading to a cash flow
shortfall will be negative for the ratings.

                         COMPANY PROFILE

Established in 2004, SIPPL is engaged in property development in
Delhi and the NCR region with a focus on luxury residences.  It
is among those few developers who have delivered projects in
Himachal Pradesh.

The company has completed four projects, (Spangle Heights,
Spangle Condos, Campton Estate and Spangle Lok Vihar) till date.
It is promoted by S.K. Baagolia, Uma Bagolia and Prateek Bagolia.

SIPPL's ratings:

   -- Long-Term Issuer Rating: affirmed at 'IND BB'/Stable
   -- INR304.3 mil. long-term loans (increased from INR138.5
      mil.): affirmed at 'IND BB'/Stable
   -- Proposed INR217.2 mil. long-term loans: 'Provisional IND
      BB'/Stable; rating withdrawn as the issuer did not proceed
      with the instrument as envisaged
   -- Proposed INR150 mil. long-term loans: assigned 'Provisional
      IND BB'/Stable


SHREE BALAJI: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shree Balaji
Alumnicast Private Limited (SBAPL) a Long-Term Issuer Rating of
'IND BB+'.  The Outlook is Stable.

                       KEY RATING DRIVERS

The ratings are constrained by SBAPL's weak credit metrics.  The
company's net leverage (total adjusted debt/operating EBITDAR)
was 10.68x in FY15 (FY14: 8.34x) and interest coverage
(EBIDTA/gross interest) was 1.65x (1.84x).  SABPL is slated to
incur INR120 mil. of new capex to enhance its production capacity
(an estimated increase of 24,000mtpa), which Ind-Ra expects to
largely be debt-funded, resulting in its credit profile remaining
elevated until FY19.  The debt-funded capex is also likely to
expose the company to execution risks.

The ratings also note the low-value-additive nature of SABPL's
business, as reflected in its thin EBITDA margins of 2.8% for
FY15 (FY12: 4.0%).  The business is largely dependent on demand
from end users; in this case the auto industry, which is
inherently cyclical in nature.

However, the ratings are supported by its founders' experience of
two decades in the metal industry as well as its reputed clients
such as RICO Auto Industries Limited, Rockman Industries Limited
and Alicon Cast Alloys Ltd.  The ratings also factor in the
company's CAGR of about 20% during FY12-FY15 on account of
increased sales volume and sales realization, aided by capacity
expansion.

                       RATING SENSITIVITIES

Positive: An improvement in the company's overall credit metrics
would lead to a positive rating action.

Negative: A decline in operating profitability or an increase in
debt levels, leading to significant deterioration of coverage
indicators, will be negative for the ratings.

                         COMPANY PROFILE

Incorporated in 2007 by Mr. Sunil Aggarwal, SBAPL supplies
aluminum alloy ingots to major die cast component producers.  It
has a head office in Gurgaon and its manufacturing facilities are
located in Dharuhera, Gurgaon, Ludhiana and Binola.  The company
is commissioning a new manufacturing facility in Bangalore and
management plans to commence operations by June 2016.  In FY15,
its revenue grew by almost 50% yoy to INR5,063 mil..  As at
9MFY16 SBAPL recorded revenue of INR3,810 mil., which has been
largely accounted for by its manufacturing business.

SBAPL's ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
   -- INR150 mil. fund-based limits: assigned 'IND BB+'/Stable
   -- INR120 mil. term loan limits: assigned 'IND BB+'/Stable
   -- INR1,050 mil. non-fund-based limits: assigned 'IND A4+'


SHREE MAHALAXMI: CRISIL Reaffirms 'B' Rating on INR130MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shree Mahalaxmi
Himghar Private Limited (SMHPL) continue to reflect weak
financial risk profile, capital structure and debt protection
metrics.


                          Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Bank Guarantee            4       CRISIL A4 (Reaffirmed)
   Cash Credit             130       CRISIL B/Stable (Reaffirmed)

The ratings also factor in exposure to risks relating to revision
in government policies and volatility in product prices. These
weaknesses are partially offset by the extensive experience of
the promoters in the cold storage industry.
Outlook: Stable

CRISIL believes SMHPL will continue to benefit over the medium
term from the extensive experience of the promoters. The outlook
may be revised to 'Positive' if increase in scale of operations
and profitability improves cash accrual significantly. The
outlook may be revised to 'Negative' if lower-than-expected cash
accrual, delay in receipt from farmers, or large debt-funded
capital expenditure weakens financial risk profile, especially
liquidity.

SMHPL was incorporated in 1979 by Mr. Madan Dolui and his family.
The company provides cold storage facilities for potato
manufacturers. It also trades in potatoes, although the portion
of revenue from this business is minimal. It is based in West
Bengal.


SHYAM & COMPANY: Ind-Ra Assigns 'IND B+' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shyam & Company
a Long-Term Issuer Rating of 'IND B+'.  The Outlook is Stable.
The agency has also assigned Shyam's INR150 mil. fund-based
limits an 'IND B+' rating with a Stable Outlook.

                         KEY RATING DRIVERS

The ratings are constrained by the company's weak EBITDA margin
of 2.0% according to the provisional FY16 financials (FY15: 1.1%)
on account of the trading-based nature of the business.  The
ratings are further constrained by the agency's expectation of a
rise in the company's financial cost as it had raised a debt of
INR150 mil. in FY16.

The ratings reflect Shyam's limited operational track record as
it commenced operations in FY14 and the partnership nature of
business.

The ratings, however, are supported by the firm's strong revenue
growth of 33.6% yoy to INR622 mil. in FY16.  The ratings are
further supported by the promoters' operating experience of
around a decade in the steel industry.

                      RATING SENSITIVITIES

Negative: Any deterioration in the EBITDA margins could be
negative for the ratings.

Positive: A substantial improvement in the scale of operations
along with an improvement in the EBITDA margins could be positive
for the ratings.

                          COMPANY PROFILE

Established in 2013, Shyam trades coal and different kinds of
iron and steel products.  The firm is managed by its directors
Sharad Kumar Sarawgi (associated with Atibir Hi-Tech Private
Limited ('IND BBB-'/Stable) and Arpit Sarawgi (associated with
Bir Steels Pvt Ltd ('IND BB+'/Stable).  In FY16, Shyam's interest
coverage stood at 11.2x along with the net leverage of 8.2x.


SILVERSTONE ELASTOMER: Ind-Ra Assigns 'IND B-' LT Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Silverstone
Elastomer Private Limited (SEPL) a Long-Term Issuer Rating of
'IND B-'.  The Outlook is Stable.

                        KEY RATING DRIVERS

SEPL's ratings reflect the liquidity pressures the agency
believes the company could face in relation to its newly set-up
rubber manufacturing and mixing facility in Palakkad, Kerala.
Although the plant commenced trial production in March 2016, it
is subject to uncertainties around project stabilization.
Currently, the company is servicing its term debt with the help
of unsecured loans from its promoters.

SEPL has been trading in tread rubber, and plans to do so until
its rubber facility commences commercial production.  The ratings
reflect SEPL's small scale of operations, weak credit profile and
low profitability due to the trading nature of its business.  In
FY15, its revenue was INR7.42 mil., EBITDA margin was 0.81%,
interest coverage was 0.67x and net leverage was 513x.  As per
FY16 provisional financials, its revenue is INR22.17 mil. and
interest coverage is likely to be below 1x.

The ratings are supported by SEPL's promoter's experience of over
two decades in the rubber manufacturing business.

                      RATING SENSITIVITIES

Positive: A substantial improvement in the scale of operations
along with the stabilization of its new operations could lead to
a positive rating action.

Negative: Failure to stabilize its new operations could lead to a
negative rating action.

                          COMPANY PROFILE

Incorporated in May 2013, SEPL is in the process of setting up a
facility for the manufacture of tread rubber (2400 mtpa) and the
mixing of rubber compounds (12,000 mtpa).  The cost of this
project was INR190.12 mil. and is being funded by debt of
INR102 mil. and promoters' contribution of INR88 mil.

SEPL's ratings:

   -- Long-term Issuer Rating: assigned Long-term 'IND B-';
      Outlook Stable

   -- Proposed INR100 mil. term loan: assigned 'Provisional IND
      B-': Outlook Stable

   -- Proposed INR20 mil. fund-based limits: assigned
      'Provisional IND B-'; Outlook Stable


SKC TRADING: Ind-Ra Raises Long-Term Issuer Rating to 'IND BB+'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded SKC Trading
Building Materials Pvt Ltd's (SKC) Long-Term Issuer Rating to
'IND BB+' from 'IND BB'.  The Outlook is Stable.

                         KEY RATING DRIVERS

The upgrades reflect an improvement in SKC's overall financial
and credit metrics.  Provisional FY16 financials indicate revenue
of INR2,500 mil. (FY15: INR1,948.2 mil.; FY14: INR1,441.0 mil.),
net leverage (Ind-Ra total adjusted net debt/operating EBITDAR)
of 3.1x (4.4x; 5.6x) and EBITDA interest cover of 2.6x (1.8x;
1.9x).

The ratings, however, continue to be constrained by SKC's weak
EBITDA margin (FY16: 1.8%; FY15: 1.7%; FY14: 1.7%) inherent to
the trading nature of business, intense industry competition and
cyclical demand.  The ratings also factor in SKC's stretched
liquidity position as evident from its near-full working capital
use during the 12 months ended March 2016.

The ratings are supported by SKC's strong operational and
strategic linkages with its group entities.  SKC belongs to
Skyway Group, which has a large scale of operations (FY15
revenue: INR6,149.9 mil.) and reported an order book position of
INR23.4 bil. at end-March 2016.  SKC's sales are entirely made to
the customers of a sister concern, Skyway RMC Plants Pvt Ltd.,
for the manufacturing of ready mix concrete (RMC).  Also, SKC
sources most of its aggregate supplies, including stones and
sand, from sister concerns M/s.  RSK Construction and M/s. Kholi
Stone.

Though the group operates in a competitive landscape dominated by
large cement players, it has been able to endure due to its
extensive presence in the Mumbai Metropolitan Region.  The
extensive presence helps SKC in swift distribution of RMC, which
has a short shelf life, and acts as a barrier to entry for
smaller players.

                        RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and/or
improvement in the EBITDA margins while maintaining the credit
metrics could result in a positive rating action.

Negative: A decline in the revenue and/or EBITDA margin leading
to deterioration in the credit metrics could result in a negative
rating action.

                          COMPANY PROFILE

Incorporated in 2005, SKC started as a partnership firm and was
converted into a private limited company in 2012.  It mainly
trades building materials including cement, sand, chemicals and
aggregates.

The key business of the group (SKC along with other promoter-
owned entities) is manufacturing RMC.  In FY15, the consolidated
financials of Skyway Group indicate EBITDA margin of 5.8%, net
financial leverage of 4.0x and EBITDA interest cover of 2.1x.

SKC's ratings:

   -- Long-Term Issuer Rating: upgraded to 'IND BB+' from
      'IND BB'; Outlook Stable
   -- INR100 mil. fund-based limits: upgraded to 'IND BB+'/Stable
      from 'IND BB'
   -- INR50 mil. non-fund-based limits: affirmed at 'IND A4+'


SMS LABS: CRISIL Assigns B- Rating to INR62.5MM Cash Term Loan
--------------------------------------------------------------
CRISIL has assigned the 'CRISIL B-/Stable' rating to the bank
facilities of SMS Labs Services Private limited (SMS).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              7.5       CRISIL B-/Stable
   Cash Term Loan          62.5       CRISIL B-/Stable

The rating reflects the weak financial profile, tightly-matched
accrual versus repayment and modest scale of operations. These
weaknesses are partially offset by the comfortable operating
margin, backed by presence in a niche industry with limited
competition and funding support from promoters via unsecured
loans.
Outlook: Stable

CRISIL believes the company will continue to benefit over the
medium term from the comfortable operating margin, given the
presence in a niche industry. The outlook may be revised to
'Positive' if improvement in scale of operations or working
capital management strengthens the financial risk profile,
especially liquidity. The outlook may be revised to 'Negative' if
lower profitability, poor working capital management or a large,
debt-funded capital expenditure programme weakens liquidity.

SMS was established in January 2011 in Thiruvallur (Tamil Nadu)
and started operations in 2013. The company is involved in
chemical and biological testing of environmental (air and stack,
all types of water, effluents/waste water, soil, sludge and solid
waste, VOC analysis, PAH, PCB analysis), food and agriculture
products, pesticides and antibiotic residues, salt spray, oils,
container testing, and trace metal analysis. Mrs. Sharadha Murali
manages the daily operations.

The company reported a net loss of INR9 million on sales of INR34
million for 2014-15 (refers to financial year, April 1 to
March 31), against a net loss of INR30 million on sales of INR2
million for 2013-14. It is expected to report a turnover of INR65
million for 2015-16.


SRI BALAJI: CARE Assigns 'B' Rating to INR7.63cr LT Loan
--------------------------------------------------------
CARE assigns 'CARE B' rating to bank facilities of Sri Balaji
Industries.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities      7.63      CARE B Assigned

Rating Rationale

The rating assigned to the bank facilities of Sri Balaji
Industries (SBI) is constrained by limited track record and small
scale of operations, constitution of the entity as a
proprietorship concern, leveraged capital structure, weak debt
coverage indicators and working capital intensive nature of
business. The rating, however, derives comfort from the
experienced promoter, growth in the operating income, moderate
PBILDT margin albeit decline in FY15 (refers to the period
April 1 to March 31) and established relationship with clients
and suppliers. The ability of the firm to increase its scale of
operations and improvement in gearing levels of the firm will
remain the key rating sensitivity.

SBI is a proprietorship concern, established in 2011 by Mr M. R.
Subrahmanyam. The firm is engaged in distillation of solvents
used by petrochemical and other chemical manufacturing companies.

During FY15, SBI reported a PAT of INR0.27 crore (Rs.0.27 crore
in FY14) on a total operating income of INR 13.45 crore (Rs.7.78
crore in FY14).


SRS LIMITED: Ind-Ra Lowers Long-Term Issuer Rating to 'IND BB+'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded SRS Limited's
(SRS) Long-Term Issuer Rating to 'IND BB+' from 'IND A-'.  The
Outlook is Negative.

                        KEY RATING DRIVERS

The downgrade reflects Ind-Ra's expectation of deterioration in
SRS' financial profile in 4QFY16 due to the country-wide strike
by the gems and jewelry industry in protest of the imposition of
1% excise duty on jewelry sales and the resulting impact on the
company's liquidity.  Throughout the strike, which lasted during
March-April 2016, the company had to incur fixed costs such as
showroom rent, interest on inventory and labor, despite the
business having virtually stopped.  In 9MFY16, SRS reported
revenues of INR32.2 bil. (9MFY15: INR28.2 bil.), EBITDA margins
of 3.5% (3.6%) and gross interest coverage of 1.9x (2.0x).
However, the strike in the fourth quarter is likely to have a
negative impact on the company's financial profile for FY16
overall.  This, along with the accumulation of debtors,
particularly for exports, is likely to negatively impact the
company's liquidity.  SRS' working capital cycle remained long at
86 days in FY15
(FY14: 73 days).

Ind-Ra notes that SRS faces a high customer concentration risk in
its wholesale gold jewelry business (93% of its jewelry
business), with the top 10 customers accounting for around 70% of
sales in FY15.  However, this risk is partly mitigated by SRS'
established customer relationships in the wholesale gold jewelry
business. Additionally, the company reported negligible bad debt
over FY12-FY15.

The ratings are, however, supported by SRS being a part of the
larger SRS Group and having access to the Group's resources.  SRS
itself operates across several business lines such as
multiplexes, retail and jewelry.  These diversified businesses
help the company cross sell its products.  The company has a
moderate brand recall among retail customers in North India and
has been able to leverage the Group's strong brand awareness in
the National Capital Region.

The Indian jewelry industry continues to be highly fragmented and
competitive, resulting in low profit margins.  Regulatory
restrictions to dampen gold demand in India have negatively
impacted the domestic jewelry industry in the past.  The latest
imposition of 1% excise duty on jewelry sales from March 2015
could bring long-term structural changes in the jewelry industry,
as organized retailers are likely to change the sourcing mix in
favor of larger, organized sector manufacturers, as against the
current practice of sourcing primarily from the unorganized
sector.

                         RATING SENSITIVITIES

Positive: Improvement in operational performance, leading to an
improvement in its financial profile as well as liquidity, will
result in the Outlook being revised back to Stable.

Negative: Higher-than-expected deterioration in the financial
profile as well as worsening of the liquidity situation could
lead to a negative rating action.

                          COMPANY PROFILE

SRS was incorporated in 2000 as SRS Commercial Company Limited.
It was renamed SRS Limited in 2009 and primarily has three
business verticals: jewelry, retail and multiplexes.  The company
is engaged in the manufacture, retail and wholesale of gold and
diamond jewelry.  It has a chain of modern format retail stores
and operates a chain of cinemas across North India. The company
also owns a shopping mall in Faridabad, apart from various
restaurants, food courts.

In FY15, SRS reported revenue of INR38.2 bil. (FY14: INR38.4
bil.) and net income of INR388 mil. (INR428 mil.).

SRS' ratings:

   -- Long-Term Issuer Rating: downgraded to 'IND BB+' from
      'IND A-': Outlook Negative

   -- INR100 mil. term loan: downgraded to 'IND BB+'/Negative
      from 'IND A-'/Stable

   -- INR3,500 mil. fund-based working capital limits :
      downgraded to 'IND BB+'/Negative from 'IND A-/Stable' and
      'IND A4+' from 'IND A2+'

   -- INR4,750 mil. non-fund-based working capital limits:
      downgraded to 'IND A4+' from 'IND A2+'

   -- INR2250 mil. term deposit: downgraded to 'IND tB/Negative'
      from 'IND tA/stable'


SUBIR DIAMONDS: Ind-Ra Raises Long-Term Issuer Rating to 'IND B'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Subir Diamonds
Pvt Ltd's Long-Term Issuer Rating to 'IND B' from 'IND B-'.  The
Outlook is Stable.  The agency has also upgraded the company's
INR90 mil. fund-based working capital limits to 'IND B'/Stable
from 'IND B-'.

                        KEY RATING DRIVERS

The upgrade reflects the overall improvement in Subir Diamonds'
credit profile in FY15, with operating margins turning positive.
The company reported positive EBITDA margins of 1.1% as against
EBITDA losses of negative 0.1% during FY14.  Consequently,
interest coverage improved to 1.7x in FY15 (FY14: negative 0.2x)
and net financial leverage was 2.4x (negative 50.8x).
Additionally, FY16 provisional financials also indicate positive
operating EBITDA margins of 0.7%.

According to provisional FY16 numbers, the company maintained its
moderate credit profile, with interest coverage of 1.7x and net
financial leverage of 6.8x.  It also reported healthy revenue
growth of 19.6% during FY16, with total revenue of INR910 mil.,
as against INR761 mil. in FY15.

The ratings are constrained by the volatility in the price of
diamonds (its end product) as well as foreign currency
fluctuations, since its revenue is derived mainly from exports to
countries in Europe, along with Singapore and Hong Kong.

The ratings also consider its moderate liquidity profile, as
reflected in the 27% utilization of its working capital limits
over the 12 months ended March 2016 and its net cash cycle of 49
days during FY16.  However, to support liquidity, Subir Diamonds
has availed of working capital debts, due to which its net
financial leverage at FYE16 went up, as explained above.

However, the ratings are supported by the company's founders'
experience of over three decades in the import, polishing and
export of rock diamonds.

                       RATING SENSITIVITIES

Positive: Improvement in the operating EBITDA margin, leading to
an improvement in overall credit metrics, will be positive for
the ratings.

Negative: Deterioration in the credit metrics will be negative
for the ratings.

                         COMPANY PROFILE

Incorporated in 1982, Subir Diamonds is a private limited company
with a registered office in Mumbai.  It imports, polishes and
exports rock diamonds.


TAKEDA IFMR 2016: Ind-Ra Rates INR22.6M Series A2 PTCs IND B+(SO)
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Takeda IFMR
Capital 2016 (an ABS transaction) final ratings as:

   -- INR254.2 mil. Series A1 pass through certificates (PTCs):
      assigned 'IND BBB+(SO)'; Outlook Stable

   -- INR22.6 mil. Series A2 PTCs: assigned 'IND B+(SO)'; Outlook
      Stable

The micro finance loan pool assigned to the trust has been
originated by Future Financial Services Private Limited.

                       KEY RATING DRIVERS

The final ratings are based on the origination, servicing,
collection and recovery expertise of FFSPL, the legal and
financial structure of the transaction and the credit enhancement
(CE) provided in the transaction.  The final rating of Series A1
PTCs addresses the timely payment of interest on monthly payment
dates and ultimate payment of principal by the final maturity
date on Dec. 21, 2017, in accordance with the transaction
documentation.

The final rating of Series A2 PTCs addresses the timely payment
of interest on monthly payment dates only after the complete
redemption of Series A1 PTCs and ultimate payment of principal by
the final maturity date on Dec. 21, 2017, in accordance with the
transaction documentation.

The transaction benefits from the internal CE on account of
excess interest spread, subordination and over-collateralisation.
The levels of overcollateralisation available to Series A1 and
Series A2 are 10% and 2% of the initial pool principal
outstanding (POS), respectively.  The total excess cash flow or
the internal CE available to Series A1 and A2 PTCs is 26.8% and
16.9%, respectively, of the initial POS.  The transaction also
benefits from an external CE of 4.0% of the initial POS in the
form of fixed deposits with IDBI Bank Limited in the name of the
originator with a lien marked in favour of the trustee.  The
collateral pool assigned to the trust at par had the initial POS
of INR282.5 mil., as of the pool cut-off date of Feb. 29, 2016.

The external CE will be used in case of a shortfall in a) the
complete redemption of all Series of PTCs on the final maturity
date, b) monthly interest payment to Series A1 investors c)
monthly interest payment of Series A2 investors after the
complete redemption of Series A1 investors and d) any shortfall
in Series A2 maximum payout on the Series A2 final maturity date.

                       RATING SENSITIVITIES

As part of its analysis, Ind-Ra built a pool cash flow model
based on the transaction's financial structure.  The agency also
analyzed historical data to determine the base values of key
variables that would influence the level of expected losses in
this transaction.  The base values of the default rate, recovery
rate, time to recovery, collection efficiency, prepayment rate
and pool yield were stressed to assess whether the level of CE
was sufficient for the current rating levels.

Ind-Ra also conducted rating sensitivity tests. If the
assumptions of the base case default rate worsen by 30%, the
model-implied rating sensitivity suggests that the rating of both
Series A1 and Series A2 PTCs will be downgraded by two notches.


TARA FINVEST: CRISIL Cuts Rating on INR124MM Cash Loan to B+
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Tara Finvest Private Limited (TFPL; part of the Krishna group)
to 'CRISIL B+/Stable' from 'CRISIL BB/Stable'.

                        Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            124       CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB/Stable')

The downgrade reflects deterioration in group's financial risk
profile due to ongoing capital expenditure (capex) of around INR3
billion in Krishna Tissues Pvt Ltd (KTPL; part of the Krishna
group) to enhance its kraft paper manufacturing capacity. The
capex is being funded with term loan of INR2080 million and the
rest through own funds or internal accrual, and the project is
likely to be commissioned in October-November 2016. Debt-funded
capex has weakened gearing, estimated to be around 2 times as on
March 31, 2016, from 1 time in 2014-15 and 0.79 time in 2013-14.
The gearing is likely to remain above 2 times over the medium
term. Further the ongoing capex has also constrained the group's
liquidity since a significant portion of the group's cash accrual
shall be utilised towards the capex. CRISIL believes that timely
commissioning of the project, ramp up in scale of operations and
generation of adequate cash accruals shall continue to be key
rating sensitivity factors over the medium term on account of the
significant repayment obligations in the group for the debt
contracted post commencement of project.

The rating reflects exposure of Krishna group to risks associated
with timely completion, commissioning and stabilisation of its
ongoing project. The rating also reflects its working capital
intensive operations and susceptibility of the group's
profitability to volatility in raw material prices and foreign
exchange rates. These weaknesses are partially offset by its
established clientele and extensive industry experience of
promoters.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of TFPL, MJK Mercantiles Pvt Ltd (MJK),
Krishna Paper Projects Pvt Ltd (KPPPL), and KTPL. This is because
all these companies, together referred to as the Krishna group,
have a common management and significant operational linkages.
Outlook: Stable

CRISIL believes the Krishna group will continue to benefit over
the medium term from the extensive experience of its promoters.
The outlook may be revised to 'Positive' in case of timely
implementation and stabilisation of ongoing project along with
generation of adequate cash accruals and efficient working
capital management. The outlook may be revised to 'Negative' if
time or cost overrun in project, lower than expected operating
income or accrual, stretch in working capital cycle, or any other
significant capex plans, further weakens the financial risk
profile, particularly liquidity.

The Krishna group manufactures duplex paper board and kraft
paper. KPPPL, TFPL, and MJK trade in waste paper and chemicals
used in the paper industry, and also procure waste paper for the
group's manufacturing unit, which is set up in KTPL. The group is
promoted by Kolkata based Bajaj family and has its existing
manufacturing unit located at Ghoraghata near Bagnan (West
Bengal). The upcoming unit is located in Burdwan, West Bengal.


TASHKENT OIL: Ind-Ra Assigns 'IND BB' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Tashkent Oil
Company Private Limited (TOCPL) a Long-Term Issuer Rating of
'IND BB' with a Stable Outlook.

                         KEY RATING DRIVERS

The ratings are constrained by TOCPL's small scale of operations,
as evident from its top line of INR285.69 mil. in FY16, as per
provisional numbers (FY15: INR356.90 mil.).  Additionally, its
EBITDA margins fluctuated over FY14-FY16 (FY16 provisional: 8.6%;
FY15: 6.35%; FY14: 7.99%).  TOCPL is highly susceptible to
volatility in raw material prices and any adverse change in
government policies may hamper its operations severely.

However, the ratings are supported by TOCPL's moderate credit
metrics in FY15, with interest coverage (operating EBITDA/gross
interest expense) of 1.87x (FY14: 2.73x) and financial leverage
(total adjusted debt/operating EBITDAR) of 3.73x (3.49x).

The ratings also draw comfort from the company's established
track record of more than three decades in the manufacture of oil
and lubricants.

                       RATING SENSITIVITIES

Negative: A decline in revenue and operating profitability,
leading to deterioration in the overall credit metrics, will be
negative for the ratings.

Positive: A significant improvement in revenue and operating
profitability, leading to an improvement in the overall credit
metrics, will be positive for the ratings.

                          COMPANY PROFILE

TOCPL was incorporated as a private limited company in 1980 and
is engaged in manufacture of a wide range of lubricants and oils
such as gear oil, transformer oil and grease.  The company sells
its product under the brand name 'Tashoil' to various government
and private organizations.  Its manufacturing facility is located
in Nandesari, Gujarat and has a total installed capacity of 6m
litres per annum.

TOCPL's ratings:

   -- Long-Term Issuer Rating: assigned 'IND BB'; Outlook Stable

   -- INR70.00 mil. fund-based working capital limits: assigned
      'IND BB'/Stable/'IND A4+'

   -- INR8.00 mil. non-fund-based limits: assigned 'IND A4+'


VIDHATA EDUCATIONAL: CRISIL Assigns 'B' Rating to INR190MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Vidhata Educational and Welfare Trust (VEWT).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan                190       CRISIL B/Stable

The rating reflects risks relating to execution of project,
optimal student in-take level, exposure to intense competition in
the education sector and susceptibility of revenue to regulatory
changes. These weaknesses are partially offset by management's
extensive experience in the education sector and comfortable
capital structure of the project.
Outlook: Stable

CRISIL believes VEWT will benefit from promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the trust commissions its project on time and has higher-than-
expected student intake leading to significant revenue.
Conversely, the outlook may be revised to 'Negative' in case of
significant time and cost overruns, weakening the trust's
liquidity profile.

VEWT is a charitable society formed in June 2010 by Mr. Pradeep
Kumar and his family. It is setting up a school, Pragaya
International School, in Panipat, which will offer education from
Pre-nursery to Class XII. The school will have infrastructure
such as library, auditorium, swimming pool, and cafeteria.

The school is expected to start its operations from FY 2016-17.


VISHNU COTTON: CARE Reaffirms B+ Rating on INR13.46cr LT Loan
-------------------------------------------------------------
CARE revokes suspension and reaffirms the ratings assigned to the
bank facilities of Vishnu Cotton Mills Limited.

                                Amount
   Facilities                (INR crore)   Ratings
   ----------                -----------   -------
   Long term Bank Facilities    13.46      CARE B+ Suspension
                                           revoked and Reaffirmed

   Short term Bank Facilities    6.16      CARE A4 Suspension
                                           revoked and Reaffirmed


Rating Rationale

The ratings assigned to the bank facilities of Vishnu Cotton
Mills Limited (VCML) continue to remain constrained by its
moderate scale of operations with low PAT margin, raw material
prices dependent on government policies and exposure to agro-
climatic risks, presence in a highly labour-intensive nature of
the industry and working capital intensive nature of operations
marked by high inventory period. The aforesaid constraints are
partially offset by its satisfactory track record of operation,
experience management team, part of four star group and promoters
support in terms of continuous fund infusion in the business.

Increase in the scale of operations and ability to earn profits
as well as effective working capital management remains the key
rating sensitivities.

Kolkata-based VCML, incorporated on April 21, 1994, by Mr Pran
Krishna Dey has commenced operations since May 1994.

Since its inception, VCML has been engaged in manufacturing of
cotton yarn with its manufacturing facility located at Barasat,
West Bengal, with an aggregate installed capacity of 4,200 metric
ton per annum (MTPA). Presently, the company has 36,864 spindles
in its manufacturing unit and manufactures 30s to 40s count yarn.
The company caters to domestic as well as international markets.
Apart from this, VCML is also engaged in fabric dyeing and
bleaching services which accounted for 19.04% of the total
operating income for 9MFY16 (13.71% in FY15 [refers to the period
April 1 to March 31]).

VCML was taken over by the Four Star Group of Kolkata in
June 2013. The group was set up by Mr Samir Kumar Saha and his
brother, Mr Ashish Kumar Saha, in 1997. The group has various
companies or firm which are engaged in manufacturing of knitted
fabric, dyeing and bleaching services, export of cotton and yarn
and redistribution stockiest business of Hindustan Unilever Ltd.
Presently, VCML is managed by Mr Samir Kumar Saha (Director)
having about two decades of experience in the same line
of business. He is also supported by Ashish Kumar Saha and other
three directors who are also having about two decades of
experience in this business.



====================
S O U T H  K O R E A
====================


DAEWOO SHIPBUILDING: Submits Additional Restructuring Measures
--------------------------------------------------------------
Yonhap New Agency reports that Daewoo Shipbuilding & Marine
Engineering Co., a troubled South Korean shipyard, presented a
set of additional restructuring measures on May 20 as the
government and its creditors pressed it to map out stronger self-
rescue plans, industry sources said May 20.

Yonhap relates that the measures, submitted to its creditors led
by the state-run Korea Development Bank, reportedly included a
further cut in the workforce and wages, temporary closure of
docks and the sale of noncore assets.

According to the report, sources said Daewoo Shipbuilding plans
to spin off its profitable defense-related business. The shipyard
constructs submarines and other naval ships.

"We are mulling over a variety of options to improve our
financial health. (The planned spin-off) is part of our self-
rescue plans," Yonhap quotes a company official as saying.  "It
is likely that the defense division is separated into a
subsidiary before being listed on the stock market," the official
said, ruling out the possibility of its sell-off.

Last year, the shipyard, faced with an extended slump in new
orders and increased costs, announced a series of self-rescue
measures, which the shipyard claims will save around
KRW1.8 trillion, Yonhap recalls.

According to the report, Daewoo Shipbuilding has been working to
lay off some 2,300 workers and sell assets in return for
financial assistance from its creditors.

Yonhap notes that the second batch of self-rehabilitation steps
comes as a drop in new orders is expected to continue down the
road.

Other local rivals, such as Hyundai Heavy Industries Co., also
promised to implement self-rescue schemes to stay afloat, the
report notes.

According to Yonhap, Hyundai Heavy is moving to cut 10% of its
workforce and sell noncore assets, and Samsung Heavy Industries
Co. also submitted a self-rescue plan to its creditors last week.

Yonhap relates that the country's top three shipyards suffered a
combined operating loss of KRW8.5 trillion (US$7.21 billion) last
year, due largely to increased costs stemming from a delay in the
construction of offshore facilities and an industrywide slump.

But a huge chunk of the loss, some KRW5.5 trillion, came from
Daewoo Shipbuilding, the report says.

Also, Hyundai Heavy and Samsung Heavy swung to an operating
income during the first quarter of the year, while Daewoo
Shipbuilding suffered an operating loss of KRW26.3 billion, adds
Yonhap.

Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures.  Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.



===========
T A I W A N
===========


CONCORD SECURITIES: Fitch Affirms LT Foreign Currency IDR at BB+
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings on six Taiwanese
securities companies, namely Oriental Securities Corporation
(Oriental), Concord Securities Corporation (Concord), Ta Chong
Securities Co., Ltd., Ta Ching Securities Co., Ltd., Tachan
Securities Co., Ltd (Tachan), and Horizon Securities Co., Ltd.
At the same time, Fitch has maintained Concord's ratings on
Negative Outlook.  The Outlooks of other five entities are
Stable.

Fitch has placed the ratings of Jih Sun Securities Corp., Ltd on
Rating Watch Negative (RWN), and affirmed most of the ratings of
Jih Sun Financial Holding Co., Ltd (JSFH) and Jih Sun
International Bank (JSIB).

                          KEY RATING DRIVERS

IDRS and NATIONAL RATINGS

Oriental, Concord, Ta Chong, Ta Ching, Tachan and Horizon are the
smaller securities firms in Taiwan.  They face bigger challenges
than their larger domestic peers from negative structural change
in Taiwan's brokerage market.  This is because they lack
economies of scale in brokerage, and rely on proprietary trading
for profit.

Fitch expects the smaller firms to report net losses more
frequently. Pressure on brokerage-related revenue continues due
to a sustained decline in market turnover and commission rates.
Trading profits are challenging against heightened, unexpected
market volatility. That said, we believe the overall credit
profile of the smaller firms rated by Fitch remains generally in
check, underpinned by their healthy balance sheets that exhibit
strong loss-absorption and adequate liquidity.

Oriental, rated highest among the smaller companies at 'BBB-',
demonstrates consistently strong capital strength, an intention
to limit use of debt borrowing, and a restrained appetite for
trading.  Nevertheless, the company has a trading-focused
business model and a weaker risk-adjusted return among local
peers.

Concord is rated 'BB+', reflecting its relatively diversified
franchise among similarly sized local peers, although it has
below-average capital and liquidity positions due to higher
reliance on short-term repos to fund its larger, long-term bond
investments.  This has left its credit profile more vulnerable to
stock-market volatility and to market and liquidity risks, as
reflected in the Negative Outlook.

The ratings affirmations of Ta Chong, Ta Ching and Tachan at 'BB'
or 'BBB+(twn)' and Horizon at 'BBB(twn) are based on their
generally stable credit profiles, which are underpinned by their
consistently low leverage and Fitch's expectation of their
ability to maintain sound capital buffers, liquid portfolios and
high-quality collateral backing repo funding.  That said, Horizon
is rated lower, taking into account its weaker and more volatile
earnings, and higher market risk appetite.

Jih Sun's ratings are placed on RWN because the agency is re-
assessing the group's credit profile.  It is highly likely that
Fitch would shift its approach to analyze the group's
consolidated profile and assign common ratings to all group
entities - including Jih Sun, JSFH and JSIB - instead of
currently using Jih Sun as an anchor to the ratings of JSFH and
JSIB.  This is based on our belief that all three entities have a
high correlation of default, considering that they are likely to
extend support to one another.  The downward pressure on Jih Sun
comes from JSIB being a potential drag on the group's overall
profile, particularly in terms of JSIB's weaker franchise -
despite adequate asset quality and capitalization.

VR: only for JSIB

JSIB's VR would be driven by the consolidated profile of the
group, based on the potential new approach mentioned earlier.
JSIB's VR is on Rating Watch Positive (RWP) as Fitch expects the
bank to benefit from ordinary support from the group.  The bank
is likely to benefit in particular from the group's overall
capital and funding fungibility and sharing of the Jih Sun's
stronger franchise and better internal capital generation.

SUBORDINATED DEBT
JSIB's non-Basel III-compliant subordinated bond is rated one
notch below the issuer's National Long-Term Rating to reflect its
subordinated status and the absence of going-concern loss-
absorption features.  JSIB's Taiwanese Basel III Tier 2 (B3T2)
capital is rated two notches below the issuer's anchor rating,
comprising zero notching for non-performance risk and two notches
for loss severity.  Wider notching than Fitch's base case of one
notch reflects the poor recovery prospects for Taiwanese B3T2
debt at the point of non-viability or government receivership.
Taiwan's authorities would only move a bank into insolvency
administration when it reaches a very low capital level or a 2%
capital adequacy ratio, reducing the recovery prospects for B3T2
debt.  The above notching practices are in accordance with
Fitch's criteria on rating bank regulatory capital and similar
securities.

                         RATING SENSITIVITIES

IDRS AND NATIONAL RATINGS

For Concord, triggers for a ratings downgrade include rising risk
appetite for stock trading and further significant expansion in
bond investments, which lead to a weakened capital profile.  An
Outlook revision to Stable is likely if Concord could manage to
moderate its appetite for trading, reduce its leverage and
strengthen its capitalisation.

Ratings upside for the other smaller securities firms is limited,
unless they demonstrate a sustained improvement in earnings
quality - most likely through a larger and more diversified
franchise - which is unlikely in the short to medium term.
Conversely, sustained weak earnings and a sharp increase in risk
appetite resulting in significant deterioration in capitalisation
may trigger negative rating action.

Under the common rating approach that is to be taken, the IDRs
and National Ratings of Jih Sun, JSFH and JSIB would be most
sensitive to the group's ability to maintain its securities
franchise to underpin the group's overall credit profile.

VR: only for JSIB
Under the new approach, JSIB's VR would move in tandem with the
group's overall long-term IDR.  Any change in the assessment of
the consolidated profile of the group is to trigger similar
rating action.

SUBORDINATED DEBT
Any rating action on JSIB could trigger a similar move on its
debt ratings.

The rating actions are:

Jih Sun
  Long-Term Foreign Currency IDR at 'BBB-'; placed on RWN
  Short-Term Foreign Currency IDR at'F3'; placed on RWN
  National Long-Term Rating at 'A(twn)'; placed on RWN
  National Short-Term Rating at 'F1(twn)'; placed on RWN

JSFH:
  Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook
Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
  National Short-Term Rating affirmed at 'F2(twn)'

JSIB:
  Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook
Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
  National Short-Term Rating affirmed at 'F2(twn)'
  Viability Rating at 'bb'; placed on RWP
  Subordinated debt (non-Basel III-compliant) rating affirmed at
   'BBB+(twn)'
  Subordinated debt (Basel III Tier 2 capital) rating affirmed at
   'BBB(twn)'

Oriental:
  Long-Term Foreign-Currency IDR affirmed at 'BBB-'; Outlook
   Stable
  Short-Term Foreign-Currency IDR affirmed at 'F3'
  National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable
  National Short-Term Rating affirmed at 'F1(twn)'

Concord:
  Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook
   maintained on Negative
  Short-Term Foreign-Currency IDR affirmed at 'B'
  National Long-Term Rating affirmed at 'A-(twn)'; Outlook
   maintained on Negative
  National Short-Term Rating affirmed at 'F2(twn)'

Horizon:
  National Long-Term Rating affirmed at 'BBB(twn)'; Outlook
Stable
  National Short-Term Rating affirmed at 'F3(twn)'

Ta Chong:
  National Long-Term Rating affirmed at 'BBB+(twn)'; Outlook
   Stable
  National Short-Term Rating affirmed at 'F2(twn)'

Ta Ching:
  National Long-Term Rating affirmed at 'BBB+(twn)'; Outlook
   Stable
  National Short-Term Rating affirmed at 'F2(twn)'

Tachan:
  Long-Term Foreign-Currency IDR affirmed at 'BB'; Outlook Stable
  Short-Term Foreign-Currency IDR affirmed at 'B'
  National Long-Term Rating affirmed at 'BBB+(twn)'; Outlook
   Stable
  National Short-Term Rating affirmed at 'F2(twn)'



=============
V I E T N A M
=============


VIETNAM: Fitch Affirms BB- Issuer Default Rating; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Vietnam's Long-Term Foreign- and
Local-Currency IDRs at 'BB-' with a Stable Outlook.  The issue
ratings on Vietnam's senior unsecured Foreign- and Local-Currency
bonds are also affirmed at 'BB-'.  The Country Ceiling is
affirmed at 'BB-' and the Short-Term Foreign-Currency IDR at 'B'.

                        KEY RATING DRIVERS

The affirmation of Vietnam's IDRs with a Stable Outlook reflects
these key rating drivers:

The ratings reflect its strong macroeconomic performance and
favorable medium-term growth prospects against high public debt,
low foreign-reserve buffers, and relatively weak structural
indicators.

Fitch estimates the 2015 budget deficit to have fallen to 5.8% of
GDP, down from 6.2% in 2014, based on the agency's adjusted
measure that more closely aligns fiscal accounts with the
Government Finance Statistics (GFS) standard.  Fiscal revenues
outperformed by approximately 2.0% of GDP in 2015 due to strong
growth in domestic tax collection.  Fitch anticipates the
majority of the 2015 revenue outperformance to be carried forward
and spent in the current fiscal year, which suggests the 2016
adjusted fiscal deficit could rise to about 6.5% of GDP.  Fitch
expects the authorities efforts to reduce the budget deficit to
below 4.0% of GDP over 2016-2020 will prove challenging in light
of upcoming enhancements to fiscal reporting standards starting
in 2017, which will bring more off-budget capital expenditure
into the official State Budget.

General government gross debt (GGGD) continued to rise in 2015 to
an estimated 51.1% of GDP, up from 47.3% in 2014, and higher than
the 'BB' median of 43.6%.  Fitch forecasts GGGD to rise to 53.7%
in 2016 and rise over the medium-term without a tightening of
fiscal policy settings.  A broader measure of public debt,
including government guarantees, reached 62.2% of GDP at end-2015
and is near the National Assembly's approved limit of 65%.  The
authorities reaffirmed commitments to the limit and articulated
plans that include reducing the use of guarantees and cutting
current expenditures in order to avoid a future limit breach.

Vietnam's sovereign funding profile remains stable, but has
increasingly pivoted toward domestic marketable debt in order to
prepare for reduced access to concessionary financing resulting
from the country's forthcoming graduation from the World Bank's
International Development Association.  Efforts to lengthen the
average term to maturity of domestic debt have largely proved
successful, with the average term of issuance increasing to seven
years in 1Q16, from five years in 2014.  Five-year domestic
government bond yields were 6.3% in May 2016, up by 40bp since
last year, but have broadly been on a declining trend over the
past five years.

Real GDP grew by 5.6% in 1Q16, below the 2015 figure of 6.7%, but
still higher than the 'BB' median of 4.0%.  The significant
deceleration is largely attributable to a severe drought and
saltwater intrusion across key agricultural production regions,
which have contributed to a 2.6% year-on-year contraction in
agricultural output.  Mining and quarrying also reported a modest
decline of 0.9% year-on-year, which is likely to be linked to the
oil and gas industry downturn.  Other sectors of the economy,
including manufacturing and services, continued to report strong
growth and are a key driver of our full-year GDP forecast of 6.2%
in 2016.

Fitch forecasts Vietnam's current account to post a surplus of
about 1% of GDP in 2016, which reflects resilient export
performance and depressed prices across nearly all primary
commodity imports.  The trade balance grew to USD1.5 bil. in
April 2016 versus a deficit of USD3bn a year prior.  FDI
disbursements remain strong at 12% growth yoy, providing a
foundation for continued growth in the country's export oriented
manufacturing sector over the medium term.

Foreign reserves were eroded significantly during 2H15 following
efforts to stabilize the exchange rate amidst market pressures
across Asian currencies and a pick-up in dollarization.  However,
the agency believes the recent introduction of a more flexible
exchange-rate mechanism, policies to discourage US dollar
hoarding, and improved trade performance have alleviated balance-
of-payment pressures and contributed to more than USD4bn in
foreign-reserve replenishment during 1Q16.  Fitch forecasts
foreign-reserve coverage will rise to 2.2x current account
payments by end-2016, still well below the 'BB' median of 4.3x.

Fitch's sector outlook for Vietnam banks was moved to stable
(from negative) in December 2015 due to preliminary signs of
stabilization in asset quality and improving liquidity and
funding conditions.  Strong economic growth and a recovery in the
property market will lead to slower NPL formation, but a rapid
acceleration in credit growth poses a potential risk to medium-
term financial stability.  Fitch estimates credit growth
accelerated to 17.3% in 2015, about 2.7x nominal GDP growth of
6.5%.  The official credit growth target of 18%-20% for 2016
suggests that a broader re-leveraging of the economy will
continue over the forecast period.

The authorities have continued to prioritize a structural reform
agenda with a focus on market liberalisation, equitisation of
state-owned enterprises, and enhancements to the broader business
climate.  Fitch believes Vietnam will be one of the largest
beneficiaries of the Trans-Pacific Partnership (TPP), should it
be successfully ratified by participating countries, through both
enhanced medium-term growth prospects and by providing a key
policy anchor for continued structural reforms and
liberalisation.

                       RATING SENSITIVITIES

The Stable Outlook reflects Fitch's assessment that upside and
downside risks to the rating are currently balanced.

The main factors that could lead to positive action, individually
or collectively, are:

   -- A commitment to rein in fiscal deficits, contributing to an
      improved outlook for government debt ratios

   -- An increase in foreign reserve buffers to a level more in
      line with peers

   -- Sustainable resolution of some of the structural issues in
      the banking sector

The main factors that could lead to negative rating action,
individually or collectively, are:

   -- A move away from a macroeconomic policy mix aimed at
      achieving macroeconomic stability, low and stable
inflation,
      and external equilibrium

   -- Depletion of foreign reserves in a sufficient scale to
      destabilize the economy.

                          KEY ASSUMPTIONS

   -- No escalation of regional or geopolitical disputes to a
      level that disrupts trade and financial flows.

   -- Global economic conditions remain broadly in line with
      Fitch's recent "Global Economic Outlook".



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


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.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.

Copyright 2016.  All rights reserved.  ISSN: 1520-9482.

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