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        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

         Thursday, September 22, 2016, Vol. 19, No. 188

                            Headlines


A U S T R A L I A

BLUESCOPE STEEL: S&P Revises Outlook to Pos. & Affirms 'BB' CCR
KALLIAK PTY: First Creditors' Meeting Set For Sept. 29
KIMBERLEY DIAMONDS: Court Rejects KDL Bid to Probe Liquidators
KURTZ TRANSPORT: Administrators Get Strong Interest From Buyers
LATITUDE DEVELOPMENT: Receivers Sell Peppers Airlie Beach Resort

SHERPA SYSTEMS: First Creditors' Meeting Set For Sept. 29


C H I N A

GUANGXI NONFERROUS: Court Formally Declares Firm Bankrupt


I N D I A

ABHISHEK ISPAT: ICRA Suspends B+ Rating on INR7cr Loan
AL-FAS TRADING: CRISIL Reaffirms B+ Rating on INR35MM Cash Loan
ANPRAS FOOD: CRISIL Reaffirms B+ Rating on INR42.5MM Cash Loan
ARAN MOTORS: CRISIL Reaffirms 'B' Rating on INR100MM Cash Loan
ASHWANI KUMAR: CRISIL Lowers Rating on INR62MM Cash Loan to 'B'

BHUPINDER ALLOYS: ICRA Suspends 'D' Rating on INR7.5cr Loan
DAKSHIN EXPORTS: CRISIL Reaffirms B+ Rating on INR2MM LT Loan
DASMESH MECHANICAL: CRISIL Ups Rating on INR70MM Loan to 'B'
DELHI INTERNATIONAL: S&P Assigns 'BB' Rating to Proposed Bonds
DURGESHWARI INDUSTRIES: CARE Assigns B+ Rating to INR15cr LT Loan

FALCON GLASS: CRISIL Reaffirms 'B' Rating on INR32.5MM Cash Loan
GIRIVARYA NON-WOVEN: CRISIL Suspends B+ Rating on INR42.9MM Loan
GOPAL SHIVHARE: CARE Lowers Rating on INR5.0cr LT Loan to 'D'
H R BUILDERS: ICRA Reaffirms B+ Rating on INR8.0cr Bank Loan
ISKCON METALS: ICRA Upgrades Rating on INR8.0cr Loan to B+

JAIHIND AUTOMATION: CRISIL Assigns B+ Rating to INR50MM Cash Loan
KAMLA SHIVHARE: CARE Lowers Rating on INR4.70cr LT Loan to 'D'
L R AUTOMOBILES: CRISIL Reaffirms B+ Rating on INR120MM Loan
LARSON CERAMIC: CRISIL Assigns 'B' Rating to INR70MM Term Loan
MALLEMAALA AGRO: CRISIL Reaffirms B Rating on INR250MM LT Loan

MARIGOLD PAINTS: ICRA Assigns B+ Rating to INR7.0cr Cash Loan
MATHURA AGRO: CRISIL Assigns B- Rating to INR180MM Cash Loan
MICRON PHARMACEUTICALS: CRISIL Suspends B+ Rating on INR60MM Loan
N.S.K. FRUITS: CRISIL Reaffirms B+ Rating on INR80MM Cash Loan
RADHARAMAN COTGIN: CRISIL Assigns B+ Rating to INR70MM Cash Loan

SDR POLYMERS: CRISIL Reaffirms 'D' Rating on INR32.5MM Cash Loan
SHREE RAM: CRISIL Lowers Rating on INR97.5MM Cash Loan to 'D'
SHREE RAM: ICRA Reaffirms 'B' Rating on INR5.0cr Cash Loan
SRI AUROBINDO: ICRA Suspends B+ Rating to INR63.21cr LT Loan
STATE BANK: Moody's Says AT1 Issuance Sets Pricing Benchmark

STATE BANK: Moody's Puts B1 Perpetual Capital Securities Rating
SUMANGLAM WOOD: ICRA Reaffirms B- Rating on INR6.0cr LT Loan
VVV CONSTRUCTION: CRISIL Hikes Rating on INR85MM Loan to B+
ZF ELECTRONICS: CRISIL Assigns B+ Rating to INR45MM Term Loan


J A P A N

TAKATA CORP: Bidders Said to Mull Bankruptcy Option
TAKATA CORP: Receives 5 Bids from Potential Buyers


N E W  Z E A L A N D

LOVETT & SONS: Placed Into Liquidation


S O U T H  K O R E A
HANJIN SHIPPING: Court Says Plan "Realistically Impossible"
HANJIN SHIPPING: South Korea Seeks Diplomatic Help for Firm
HANJIN SHIPPING: Vessels To Be Returned to Owners, Judge Says
KUMHO TIRE: Creditors Seek Buyer for Controlling Stake in Firm


                            - - - - -


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


BLUESCOPE STEEL: S&P Revises Outlook to Pos. & Affirms 'BB' CCR
---------------------------------------------------------------
S&P Global Ratings said that it had revised the rating outlook on
BlueScope Steel Ltd. to positive from stable.  At the same time,
S&P affirmed the 'BB' corporate credit and issue ratings on the
company and its US$110 million and US500 million senior-unsecured
debt issues.

The recovery rating on the debt issues is '4H', indicating S&P's
expectation of average recovery (40%-50%) in the event of a
payment default.

"The outlook revision reflects our expectation that BlueScope
would continue to cut costs and deleverage," said S&P Global
Ratings credit analyst May Zhong.  "This should maintain the
company's strong credit metrics and strengthen its resilience if
trading condition were to weaken."

S&P forecasts the company to generate adjusted funds from
operations (FFO)-to-debt higher than 45% and adjusted debt to
EBITDA well below 2x over the next two years.

S&P considers BlueScope has a solid position in the Australian
flat steel market and high-margin, branded, painted products.
However, the company has a small scale in a global context, and
exposure to volatile steel prices and raw material costs.

BlueScope's Australian Steel Products (ASP) segment has turned
around its operating losses due to cost cuts.  S&P expects
BlueScope to comfortably exceed downside rating triggers amid
supportive conditions in the industry.  S&P also notes that
BlueScope is publically committed to deleveraging and has a sound
track record of executing its strategy.  In S&P's opinion, its
U.S. subsidiary North Star's relatively strong and stable cash
flow generation, as well as progress on domestic restructuring
initiatives, support the generation of free cash flow and further
debt reduction.

However, the glut in global steel supply could soften spreads
from current levels if Chinese demand dips.  BlueScope's cash
flows remain sensitive to weakening spreads; deterioration in
domestic residential renovation and alteration activity, in
particular any reduction in demand for high-margin painted
products; or an appreciation of the Australian dollar.

"Our base-case scenario assumes that BlueScope's sales would
increase in the low-to-mid-single digits in 2017," said Ms.
Zhong. "We expect demand for premium painted products in the
domestic Australian market and the start of additional painting
facilities in Thailand to support BlueScope's growth.  We also
expect benign trading conditions and a bottoming out of steel
spreads in North Asia, sustaining BlueScope's profitable
operations in Australian steel products."

The positive outlook reflects S&P's view that BlueScope's
improving cost profile and commitment to its forecast
deleveraging could maintain its strong credit metrics.

S&P could raise the rating within the next 12 months if the
company maintains a track record of strong credit metrics, such
as adjusted funds from operation to debt at more than 45% and
adjusted free operating cash flow to debt at more than 25%.  This
level could result from sustained profitability in the company's
Australian business operations, or further debt reduction.

S&P could revise the outlook back to stable if the company's
adjusted FFO to debt falls below 45% and debt to EBITDA rises
above 2x.  This scenario could occur if trading conditions were
to weaken materially due to, for example, a significant drop in
Asia hot rolled coil spreads without an offsetting impact from a
depreciating Australian dollar; or a large acquisition that the
company funds with debt.


KALLIAK PTY: First Creditors' Meeting Set For Sept. 29
------------------------------------------------------
A first meeting of the creditors in the proceedings of Kalliak
Pty Ltd, trading as Exclusive World, will be held at Level 2,
180 Queen Street, in Melbourne, on Sept. 29, 2016, at 3:00 p.m.

Andrew Poulter of IRT Advisory was appointed as administrator of
Kalliak Pty on Sept. 19, 2016.


KIMBERLEY DIAMONDS: Court Rejects KDL Bid to Probe Liquidators
---------------------------------------------------------------
The West Australian reports that the Federal Court has rejected a
bid by ASX-listed Kimberley Diamonds to examine the liquidators
of its failed Ellendale diamond mine in the West Kimberley,
slamming the move as an "abuse of process".

Kimberley Diamonds sought to haul liquidators Jirsch Sutherland
into court to quiz them about the decision to abandon Ellendale
last October through the issue of a "disclaimer of onerous
property", having failed to find a buyer for the mine as a going
concern, according to The West Australian.

However, Justice Jacqueline Gleeson rejected the bid, describing
it as an abuse of process, saying it would be a "substantial
intrusion into the liquidation" that would have no benefit to
creditors, the report notes.

"I am not satisfied that the material relied upon by KDL provides
reason to believe that the mandatory examination of the
liquidator may provide a benefit to the company, its creditors,
its members or the public generally," the report quoted Justice
Gleeson as saying.

Ellendale, 2000km north of Perth, was the world's biggest
producer of yellow diamonds when Kimberley Diamonds closed the
mine in late June last year and put its operating company into
administration, the report recalls.

Jirsch Sutherland received more than 20 expressions of interest
from potential buyers of the project but instead decided a sale
of Ellendale's plant and equipment offered a better return to
creditors, the report relates.

The move to abandon the mine outraged the Department of Mines and
Petroleum because it meant responsibility for the AUD28 million
environmental clean-up bill for Ellendale was transferred to the
State Government's Mining Rehabilitation Fund, the report notes.

Neither DMP or Kimberley Diamonds challenged the move legally at
the time, but in May the company moved to seek a court
examination of Jirsch Sutherland's decision, the report relays.

Kimberley Diamonds said it believed the liquidators failed to
take all reasonable steps to find a buyer for Ellendale, which
was valued at up to AUD41.4 million in the company's 2014
accounts, the report relays.

In June, Jirsch Sutherland launched action in the NSW Supreme
Court to recover AUD22.7 million from Kimberley Diamonds,
chairman Alex Alexander and fellow directors Noel Halgreen and
Rod Sainty over allegations the Ellendale operating subsidiary
was insolvent for at least five months before it went into
administration, the report recalls.

All have denied the claims and are defending the action, the
report adds.


KURTZ TRANSPORT: Administrators Get Strong Interest From Buyers
---------------------------------------------------------------
Emma Koehn at SmartCompany reports that there's been strong
interest from buyers for Kurtz Transport after the business was
placed in voluntary administration this month.

Administrators from Ernst & Young were appointed to manage the
company on September 12, with Justin Walsh and Duncan Clubb
acting as joint administrators of Kurtz Transport Pty Ltd and
Kurtz Holdings Pty Ltd, SmartCompany discloses.

The business, which traces its origins back as far as 1922, has
branches in a number of locations across Queensland and provides
line-haul services to regional areas across the state, turning
over approximately AUD20 million a year.

It is continuing to trade while under administration, while
urgent expressions of interest in the business are sought,
SmartCompany notes.  The administrators told SmartCompany the
business has around 100 employees and other subcontractors that
vary in number at different times throughout the year.

"Like many companies in the state, the company is exposed to oil
and gas," SmartCompany quotes administrator Justin Walsh as
saying.  "If you couple that with a fairly high cost base - it's
a fairly consistent theme in Queensland."

The Kurtz fleet includes 16 prime movers, 25 rigid trucks and 63
trailers as well as a pre-existing network of clients and
branches, which administrators pointed to as "highlights" of the
purchase in an advertisement for the company's assets in the
Australian Financial Review last week, according to SmartCompany.

Expressions of interest in the business are sought by 4:00 p.m.,
on September 23.  Mr. Walsh said several potential buyers have
already been in contact, SmartCompany relates.

"There has been strong interest -- it's early days but there are
a reasonable number of parties," Mr. Walsh, as cited by
SmartCompany, said.

Prospective buyers will then be reviewed and contacted by
administrators for further discussion, adds SmartCompany.

Kurtz Transport Pty Ltd is a Queensland-based regional trucking
business.


LATITUDE DEVELOPMENT: Receivers Sell Peppers Airlie Beach Resort
----------------------------------------------------------------
Larry Schlesinger at Australian Financial Review reports that the
Peppers Airlie Beach resort on Queensland's Whitsunday Coast
operated by Mantra Group has been listed for sale by receivers
with expectations of about AUD15 million.

Up for sale are 59 of the 106 strata apartments in the complex,
the resort's facilities including reception, restaurant, meeting
and conferencing venue and a day spa leased to and operated by
Endota, as well as the management rights, according to AFR.

AFR says the AUD80 million resort was developed in 2009 by Josh
Thompson's Latitude Development Group, which has undertaken of
tourism projects in the Whitsundays that include The Whitsundays
Resort and Peppers Coral Coast Resort.

Latitude was placed in the hands of receivers McGrathNicol in
March, with CBRE Hotels' agents Wayne Bunz, Paul Fraser and
Hayley Manvell, in conjunction with PRD Nationwide Airlie Beach
recently appointed to manage the sale of the Peppers Airlie Beach
hotel, AFR discloses.

AFR notes that the 4.5-star resort is on a 1.8-hectare, north-
facing site, with views across the Port of Airlie Marina and the
Coral Sea Coast.  It is managed under an agreement with Mantra
Group under its luxury brand, Peppers.  Mr. Bunz said Mantra
might choose to continue as managers.

He declined to comment on price expectations. Local insiders said
the resort could fetch about AUD15 million, the report says.

According to AFR, Mr. Bunz said appetite was strong for North
Queensland leisure assets after several prominent sales,
including the Club Crocodile Resort Airlie Beach, acquired by
Well Smart Investment Holdings Singapore, and Daydream Island and
South Molle Island bought by China Capital Investment Group.

"We have been inundated with inquiries for leisure assets of
late, particularly from mainland China. Investors are looking to
enter key leisure markets and capitalize on their potential for
further growth, particularly in light of the softening Australian
dollar, which is creating favorable market conditions for the
local tourism market," the report quotes Mr. Bunz as saying.

Also driving investor appetite is the improved performance of the
local tourism market, with the Whitsunday Coast Airport becoming
Australia's fastest-growing airport in January, adds AFR.


SHERPA SYSTEMS: First Creditors' Meeting Set For Sept. 29
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Sherpa
Systems Pty Ltd will be held at Bedfords Corporate Recovery &
Advisory, Ground Floor, 685 Burke Road, in Camberwell, on
Sept. 29, 2016, at 10:00 a.m.

Michael Wesley McCann -- mmccann@bedfords.com.au -- of Bedfords
Corporate Recovery & Advisory was appointed as administrator of
Sherpa Systems on Sept. 19, 2016.



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C H I N A
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GUANGXI NONFERROUS: Court Formally Declares Firm Bankrupt
---------------------------------------------------------
Reuters reports that a court in southern China has formally
declared bankrupt Guangxi Nonferrous Metals Group Co Ltd, an
unlisted state-run metals producer that defaulted on a bond in
February and missed a payment in April.

The firm, which is owned by the Guangxi regional government, had
failed to propose a court-ordered reorganization plan within a
six-month window, the intermediate court in Guangxi's capital
Nanning ruled on Sept. 12 according to a statement posted online
on Sept. 19, Reuters relates.

As such, the restructuring period was brought to a close and the
company was declared bankrupt, it said, relays Reuters.

According to Reuters, steel producers and metals smelters have
been among the hardest hit of China's industrial firms amid a
slowing economy and extended real estate downturn, which bottomed
out in the second half of 2015 bolstered by government support
measures.

In April it missed a payment on a CNY500 million ($77 million)
three-year private placement note with a 5.56% coupon rated BB,
the report notes.

The metals producer cited in the notice "consecutive losses and
the fact that it has already entered bankruptcy reorganization
procedures" as reasons for the missed payment, Reuters states.

Guangxi Non-ferrous Metals Group Co., Ltd. engages in mineral
exploration business in China. It explores for tin, zinc,
antimony, indium, tungsten trioxide, rubidium, and other
resources. The company is also involved in mining development,
engineering and construction, property investment, trading, and
land development businesses.



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I N D I A
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ABHISHEK ISPAT: ICRA Suspends B+ Rating on INR7cr Loan
------------------------------------------------------
ICRA has suspended the long-term rating of [ICRA]B+ assigned to
the INR7.00 crore fund based limit of Abhishek Ispat Private
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.

Abhishek Ispat Private Limited was originally promoted by Mr.
Hari Om Garg and Mr. Ramesh Agarwal in 1997 at Surat.
Subsequently in 2001, AIPL was taken over by present promoters
Mr. Atul Mehta and Mrs. Rita Mehta. Currently it has 2 directors
i.e. Mr. Atul Mehta and Mrs. Rita Mehta.

The company is mainly engaged in the business of trading of iron
and steel products. The product profile mainly comprises of
trading and supplying Iron and Steel Plates Sheets, HR Coil, CR
Coil, HR Plates, Beam, Channel, Angel, Chequered plate, CTD Bars,
Round Bars, Square bars, Section and other structured items of
steel, etc. The company has its registered office and
manufacturing unit in Surat, Gujarat. The company also has a
warehouse at Mumbai.


AL-FAS TRADING: CRISIL Reaffirms B+ Rating on INR35MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Al-Fas Trading
International Pvt Ltd continues to reflect ATIPL's modest scale
of operations in the fragmented glass and plywood trading segment
and the company's below-average financial risk profile, marked by
modest net worth and high gearing. These rating weaknesses are
partially offset by the promoters' extensive industry experience.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit            35       CRISIL B+/Stable (Reaffirmed)

   Inland/Import
   Letter of Credit       20       CRISIL A4 (Reaffirmed)

Outlook: Stable

CRISIL believes that ATIPL will continue to benefit from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company reports significant growth
in its revenue accompanied by improvement in profitability,
resulting in sizeable cash accruals, thereby improving its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if ATIPL's  revenue or profitability declines, or if
its working capital management  deteriorates, leading to
weakening of its financial risk profile, particularly its
liquidity.

Set up in 2013, ATIPL is a dealer/distributor of medium density
fibre board (MDF), glass, and plywood. The company is based in
Trivandrum (Kerala) and the day-to-day operations are managed by
Mr. Shibhu Aboobacker.


ANPRAS FOOD: CRISIL Reaffirms B+ Rating on INR42.5MM Cash Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Anpras Food Products
Private Limited continue to reflect the company's modest scale of
operations, and susceptibility to volatility in raw material
prices and to regulatory changes.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            42.5      CRISIL B+/Stable (Reaffirmed)

   Import Letter of
   Credit Limit            6.0      CRISIL A4 (Reaffirmed)

   Term Loan              26.0      CRISIL B+/Stable (Reaffirmed)

The ratings also factor in its below-average financial risk
profile because of small networth and subdued debt protection
metrics. These weaknesses are partially offset by its diversified
customer base, and benefits derived from stable demand for rice
in India.

Outlook: Stable

CRISIL believes AFPPL will benefit over the medium term from the
stable demand for rice in the country, and its diversified
customer base. The outlook may be revised to 'Positive' if the
financial risk profile improves due to substantial increase in
revenue, improved working capital management, or capital
infusion. The outlook may be revised to 'Negative' if the
financial risk profile, particularly liquidity, weakens on
account of low accrual or stretch in working capital cycle.

CRISIL believes AFPPL will benefit over the medium term from the
stable demand for rice in the country, and its diversified
customer base. The outlook may be revised to 'Positive' if the
financial risk profile improves due to substantial increase in
revenue, improved working capital management, or capital
infusion. The outlook may be revised to 'Negative' if the
financial risk profile, particularly liquidity, weakens on
account of low accrual or stretch in working capital cycle.


ARAN MOTORS: CRISIL Reaffirms 'B' Rating on INR100MM Cash Loan
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Aran Motors continue to
reflect AM's below-average financial risk profile, marked by high
leverage, and its exposure to intense competition in the
automobile industry. These rating weaknesses are partially offset
by the extensive experience of the firm's promoters in the
automobile dealership segment, and their established relationship
with its principal, Mahindra & Mahindra Ltd.

                       Amount
   Facilities         (INR Mln)   Ratings
   ----------         ---------   -------
   Cash Credit           100      CRISIL B/Stable (Reaffirmed)
   Long Term Loan         23      CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that AM will continue to benefit over the medium
term from its established relationship with M&M and fund support
from its promoters. The outlook may be revised to 'Positive' in
case of substantial improvement in the firm's cash accruals due
to higher-than-expected revenue and profitability, or in case of
fresh equity infusion, further improving its capital structure
and liquidity. Conversely the outlook may be revised to
'Negative' if AM's financial risk profile, particularly its
liquidity, deteriorates, most likely because of lower-than-
anticipated cash accruals, a stretch in its working capital
management, or substantial debt-funded capital expenditure.

AM, incorporated in 2010, is a dealer for M&M's passenger and
commercial vehicles. The firm's day to day operations are managed
by Mr. P.A.Paranthaman.


ASHWANI KUMAR: CRISIL Lowers Rating on INR62MM Cash Loan to 'B'
---------------------------------------------------------------
CRISIL has downgraded its rating on long-term bank facilities of
Ashwani Kumar and Company Private Limited to 'CRISIL B/Stable'
from 'CRISIL B+/Stable'.

                      Amount
   Facilities        (INR Mln)    Ratings
   ----------        ---------    -------
   Cash Credit           62       CRISIL B/Stable (Downgraded
                                  from 'CRISIL B+/Stable')

   Proposed Long Term    22.1     CRISIL B/Stable (Downgraded
   Bank Loan Facility             from 'CRISIL B+/Stable')

The downgrade reflects muted growth in the topline and stretched
liquidity of AKCPL. The topline grew at a modest rate to reach
INR130.1 million in fiscal 2016 from INR121.9 million in fiscal
2015. However, the topline is estimated to remain sluggish at the
current level over the medium term. Liquidity is also stretched
with large working capital requirement due to large inventory
level at more than 500 days. The bank limit utilization has
remained fully utilized to fund the high working capital
requirement leading to stretched liquidity profile. The financial
risk profile remains moderate, with low total outside liabilities
to tangible networth ratio at 1.6 times as on March 31, 2016. The
gearing is expected to remain at similar levels over the medium
term due to absence of any capital expenditure.

The rating also reflects large working capital requirement,
modest scale of operations, and susceptibility to slowdown in
end-user industries. These rating weaknesses are partially offset
by the industry experience of promoters and a moderate financial
risk profile, with average financial risk profile.
Outlook: Stable

CRISIL believes AKCPL's business risk profile will continue to
benefit from the extensive experience of promoters. The outlook
may be revised to 'Positive' if significantly large net cash
accrual and better working capital cycle strengthen liquidity.
Conversely, the outlook may be revised to 'Negative' if a
significant decline in profitability, or further stretch in
liquidity, or sizeable term debt contracted to acquire large
assets weakens its capital structure.

Incorporated in 1962, AKCPL trades in used industrial machinery.
The company deals in more than 600 sizes and types of machines,
including lathes, and milling, grinding, drilling, boring,
shearing, moulding, and welding machines. The products find
application in industries such as automotive ancillaries, and
heavy and general engineering.

AKCPL reported a profit after tax of INR2.7 million on an
operating income of INR130.1 million for fiscal 2016, against a
profit after tax of INR0.7 million on an operating income of
INR121.9 million for fiscal 2015.


BHUPINDER ALLOYS: ICRA Suspends 'D' Rating on INR7.5cr Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]D ratings assigned to the INR7.5 Crores
fund based and non fund based facilities of Bhupinder Alloys
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the cooperation from
the company.


DAKSHIN EXPORTS: CRISIL Reaffirms B+ Rating on INR2MM LT Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Dakshin Exports
continue to reflect the firm's modest financial risk profile
because of modest networth and total outside liabilities to
tangible net worth ratio and working capital-intensive
operations. These weaknesses are partially offset by extensive
experience of DE's promoters.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Long Term Loan           2       CRISIL B+/Stable (Reaffirmed)

   Packing Credit in
   Foreign Currency       173       CRISIL A4 (Reaffirmed)

Outlook: Stable

CRISIL believes DE will continue to benefit over the medium term
from promoters' extensive experience. The outlook may be revised
to 'Positive' if higher-than-expected revenue and profitability
lead to sustained and significant improvement in cash accruals
and capital structure. Conversely, the outlook may be revised to
'Negative' if working capital requirement increases significantly
or accrual declines sharply, resulting in deterioration in
liquidity.

Set up in 1996 as a partnership firm by Mr. Rajendra Babu and his
wife, Ms. R Vinitha, DE processes and trades in granite slabs.


DASMESH MECHANICAL: CRISIL Ups Rating on INR70MM Loan to 'B'
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Dasmesh Mechanical Works Private Limited to 'CRISIL B/Stable'
from 'CRISIL B-/Stable' and reaffirmed the company's short-term
facility at 'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             70        CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Letter of Credit         2.5      CRISIL A4 (Reaffirmed)

   Term Loan               14.5      CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The upgrade reflects CRISIL's belief that DMWPL's liquidity will
remain adequate over the medium term, driven by steady increase
in cash accrual against negligible term debt obligation, and
moderate bank line utilization because of efficient working
capital management. Cash accrual is backed by steady improvement
in operating revenue which grew by around 25% in fiscal 2016,
primarily driven by increased offtake from its customers. CRISIL
believes DMWPL will sustain its improved business risk profile
and achieve revenue growth of 8-10% over the medium term.

The ratings reflect the company's modest scale of operations,
large working capital requirement, and susceptibility to
cyclicality inherent in the agricultural industry and to changes
in government policies. These weaknesses are partly offset by its
promoters' extensive industry experience, benefits expected from
the sound growth prospects for the agricultural implements
industry, and the company's healthy financial risk profile
because of comfortable total outside liabilities to tangible
networth ratio and adequate debt protection metrics.
Outlook: Stable

CRISIL believes DMWPL will continue to benefit from its
promoters' extensive experience in the agricultural implements
industry. The outlook may be revised to 'Positive' if there is a
significant growth in turnover and profitability, resulting in
more-than-expected cash accrual and a better financial risk
profile, particularly liquidity. The outlook may be revised to
'Negative' in case of a steep decline in revenue or
profitability, leading to lower-than-expected cash accrual, or
stretch in working capital cycle, or significant, debt-funded
capital expenditure, weakening the financial risk profile,
particularly liquidity.

DMWPL was incorporated by Mr. Amar Singh and his family members
in 2010, to take over the business of their partnership firm,
Dasmesh Mechanical Works. The company manufactures harvester
combines and other farm equipment. Its manufacturing facility is
in Malerkotla, Punjab.


DELHI INTERNATIONAL: S&P Assigns 'BB' Rating to Proposed Bonds
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term issue rating to
proposed rupee-denominated offshore bonds, commonly known as
"masala" bonds, and U.S. dollar bonds by Delhi International
Airport Pte. Ltd. (DIAL; BB/Stable/--).  The company will use the
proceeds from the proposed bonds to refinance existing rupee
loans and external commercial borrowings.  The issue rating is
subject to S&P's review of the final issuance documentation.

The proposed refinancing will help lengthen DIAL's debt maturity
profile and remove existing maintenance covenants.  S&P also
expects the company's planned hedging and earnings in foreign
currency to mitigate currency risk. DIAL intends to refinance in
part or in full its existing amortizing debt with bullet bonds
with a maturity of more than five years.  The company also
intends to hedge the entire principal on the foreign currency
borrowings and 25% of the interest payment.

"We expect DIAL's financial position to materially weaken in the
fiscal year ending March 2018, from the current strong levels,
before recovering.  The extent of the weakening and the recovery
will significantly depend on the tariff cuts by the regulator,
DIAL's capital expenditure (capex) for the next phase of growth,
and the company's payment structure for commercial property
development.  We expect greater clarity on DIAL's aero revenues,
capex, and property development plans by June 2018.  We believe
that cash accumulation due to over-recoveries will support DIAL's
financial strength and liquidity even though the company's
commercial property development is slower than we expected and
there is a possibility of a sharp cut in tariffs," S&P said.

S&P expects DIAL to maintain its good market position and
operating efficiency over the next two years at least.  The
company's higher regulatory risk than that of its peers in Asia-
Pacific, concentrated revenue base, and weak profitability are
likely to temper these strengths.


DURGESHWARI INDUSTRIES: CARE Assigns B+ Rating to INR15cr LT Loan
-----------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of
Durgeshwari Industries Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      15        CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Durgeshwari
Industries Limited is constrained by weak financial risk profile
of the company marked by modest scale of operations, low profit
margins, weak debt coverage indicators and leveraged capital
structure. The rating is further constrained by the its presence
in the highly competitive and fragmented industry and working
capital intensive nature of operations with limited
value addition, along with susceptibility of its profit margins
to cotton price fluctuation and seasonal nature of industry.

The rating, however, derives strength from satisfactory
experience of the promoters, long track record of operations of
the company and diversified customer base of the company.

The ability of company to increase its scale of operations and
improve profitability and capitals structure along with efficient
management of its working capital requirement are the key rating
sensitivities.

Parbhani-based (Maharashtra) DIL was founded by Mr. Vijay Agrawal
(Director) in the year 1994, as a seed processing company under
the name Durgeshwari Seeds Private Limited. The company later on
diversified its business into cotton ginning and pressing in the
year 2007-08 and oil extraction in 2009-10. It was further
converted into Public Limited Company under the current name in
the year 2011.

DIL has an installed capacity of ginning and pressing 400 quintal
of cotton per day and to extract 10 tons of cotton oil per day as
on March 31, 2016. Furthermore, being into the seasonal industry
the company operates for nine months in a year. The company
procures cotton directly from the farmers based in Parbhani
(Maharashtra) region and sells cotton bales and cotton seed oil
to companies located in Maharashtra, Gujarat and Tamil Nadu.
Furthermore, the company also sells the by-product (i.e. cotton
cake) in the domestic market.

In FY16 (prov.) (refers to the period April 1 to March 31), DIL
achieved an income from operations of INR40.88 crore with PAT
amounting to INR0.17 crore, as compared with income from
operations of INR49.67 crore with PAT of INR0.13 crore in FY15.


FALCON GLASS: CRISIL Reaffirms 'B' Rating on INR32.5MM Cash Loan
----------------------------------------------------------------
CRISIL'S ratings on to the bank facilities of Falcon Glass Palace
continues to reflect FGP's modest scale of operations in the
fragmented glass and plywood trading segment and the company's
below-average financial risk profile, marked by modest net worth
and high gearing.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            32.5      CRISIL B/Stable (Reaffirmed)
   Letter of Credit       32.5      CRISIL A4 (Reaffirmed)

These rating weaknesses are partially offset by the promoters'
extensive industry experience.
Outlook: Stable

CRISIL believes that FGP will continue to benefit from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company reports significant growth
in its revenue accompanied by improvement in profitability,
resulting in sizeable cash accruals, thereby improving its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if FGP's  revenue or profitability declines, or if its
working capital management  deteriorates, leading to weakening of
its financial risk profile, particularly its liquidity.

Set up in 1998 as proprietorship firm FGP is a dealer/distributor
of medium density fibre board (MDF), glass, and plywood. The firm
is based in Trivandrum (Kerala) and the day-to-day operations are
managed by Mr. Shibhu Abubacker.


GIRIVARYA NON-WOVEN: CRISIL Suspends B+ Rating on INR42.9MM Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Girivarya Non-Woven Fabrics Pvt Ltd.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             40        CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility      42.9      CRISIL B+/Stable
   Term Loan               17.1      CRISIL B+/Stable

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

GNFPL, incorporated in 2011, manufactures non-woven fabrics and
products. The company is promoted by Mr. Harilal Baldha, Mr.
Dhansukhlal Vekariya, Mr. Navneetbhai Gajera and Mr. Hareshbhai
Gajera. The day-to-day operations are managed by the promoters.
The company's manufacturing unit is in Rajkot (Gujarat).


GOPAL SHIVHARE: CARE Lowers Rating on INR5.0cr LT Loan to 'D'
-------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Gopal Shivhare.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities       5        CARE D Revised from
                                            CARE C

   Long-term/Short term Bank       3        CARE D Revised from
   Facilities                               CARE C/CARE A4

Rating Rationale

The revision in the rating assigned to the bank facilities of
Gopal Shivhare is primarily driven by delay in debt repayment due
to weak liquidity position.

Establishing a clear debt servicing track record with an
improvement in the liquidity position are the key rating
sensitivities.

Established in 2006, GSH is a proprietorship firm which is into
the business of retailing of alcohol. GSH is part of Shivhare
liquor group based in Madhya Pradesh (MP). GSH holds retail
liquor supplier license in MP and undertakes retail trade of
Indian Made Foreign Liquor (IMFL), beer, country liquor (CL),
wine etc. The firm enters into open tendering process every year
to avail license for the retailing of the liquor. Depending upon
the allotment of shops during tendering, the number of shops held
by the firm varies every year. The shops are allotted in MP by
the state government through a competitive bidding process and
for FY15 (refers to the period April 1 to March 31), the firm had
received license for three shops. Of these three shops, two were
of IMFL and one of CL.


H R BUILDERS: ICRA Reaffirms B+ Rating on INR8.0cr Bank Loan
------------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B+ to H R
Builders' INR8.00-crore fund-based bank facility. It has also
reaffirmed its short-term rating of [ICRA]A4 to HRB's INR23.81-
crore (reduced from INR46.00 crore including INR18.00 crore
unallocated bank facilities) bank facility.

                            Amount
   Facilities            (INR crore)    Ratings
   ----------            -----------    -------
   Fund based bank
   facilities-Overdraft       8.00      [ICRA]B+; reaffirmed

   Non-fund based
   bank facilities-
   Bank Guarantee            23.81      [ICRA]A4; reaffirmed

ICRA's ratings are constrained by the continuously stretched
liquidity position of the company, as reflected in the
consistently high utilization of its working capital limits. The
liquidity stretch is due to the company's high receivable days
and security deposits extended to its contracting agencies. ICRA
also takes note of the significant capital withdrawal in FY2016,
accompanied by write off of investments in group firms. However,
the ratings draw comfort from the improved order book position of
INR141.08 crore, which will enable the firm to ramp up its
operating scale. This improved order book is crucial as the firm
has witnessed continuous decline in operating scale over the last
few years.

The rating takes support from the improvement in HRB's
profitability margins (OPBDITA margin of 22.21% in FY2016 up from
14.87% in FY2015 and PAT margins of 6.17% in FY2016 up from 5.17%
in FY2015) and the firm's light leverage capital structure, which
resulted in moderate coverage indicators.

The firm's ability to revive the revenue growth and complete the
current order book in a timely manner while maintaining its
profitability will be the key rating sensitivities. Further, the
firm's ability to improve its working capital cycle and liquidity
position will continue to be the key monitorables. Any further
withdrawal of capital will be a key rating sensitivity.

Incorporated in January 1981 by Mr. Hansraj Dhankar, HRB is a
proprietorship concern and is involved in the construction of
roads and buildings. The firm's scope of work under the roads
segment includes repair, maintenance and rehabilitation of
existing roads as well as construction of new roads. Under the
building construction segment, the services offered by the firm
include structural work for buildings, furniture and fixtures
fittings as well as provision of plumbing, electrical and fire
fighting works. The firm's clientele includes public sector
clients such as Delhi State Industrial and Infrastructure
Development Corporation, Public Works Department, Delhi Metro
Rail Corporation and National Highways Authority of India.

Recent Results
On provisional basis, HRB reported an Operating income (OI) of
INR27.02 crore, on which it earned a net profit of INR1.67 crore
in FY2016, as compared to an OI of INR48.66 crore and a net
profit of INR2.52 crore in the previous year.


ISKCON METALS: ICRA Upgrades Rating on INR8.0cr Loan to B+
----------------------------------------------------------
ICRA has revised the long term rating from [ICRA]B to [ICRA]B+
for the INR8.00 crore cash credit facility and INR4.50 crore term
loan facility of Iskcon Metals.

                         Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Cash Credit             8.00       Revised to [ICRA]B+
                                      from [ICRA]B

   Term Loan               4.50       Revised to [ICRA]B+
                                      from [ICRA]B

The rating revision takes into account the stabilization of
operations coupled with healthy increase in capacity utilization
level which translates into ~19% growth in sales volumes during
FY2016 compared to FY2015. The rating upgrade also considers the
improvement in profitability during FY2016 due to decline in raw
material cost, which also led to improvement in coverage metrics
during FY2016. The rating continues to positively factor in the
longstanding experience of the promoters in the secondary steel
industry and their established relationships with clients on
account of their association with other group concerns.

The rating is however constrained by the relatively modest scale
of operations and adverse capital structure, though the same has
improved in FY2016 due to capital infusion and accruals. The
rating also considers the relatively low value additive nature of
operations coupled with intense competition on account of the
fragmented industry structure exerting pressure on operating
margins and the vulnerability of the firm's profitability to
fluctuations in raw material prices which are linked to global
prices. Further the rating also takes note of the cyclicality
associated with the steel sector and the fact that IM is a
partnership firm and any significant withdrawals from the capital
account could affect its net worth and thereby its capital
structure.

Established in August 2012 as a partnership firm by Patel family,
Iskcon Metals started commercial operations in November 2013.It
is currently engaged in manufacturing of steel structural
products, largely Mild Steel (MS) angles and channels. The
manufacturing facility of the firm is located at Vijapur, Gujarat
with manufacturing capacity of 29,500 tons per annum of steel.

Recent Results
For the year ended March 31, 2016, IM has reported operating
income of INR58.40 crore and profit after tax (PAT) of INR0.78
crore as against operating income of INR58.79 crore and net loss
of INR0.41 crore for the year ended March 31, 2015.


JAIHIND AUTOMATION: CRISIL Assigns B+ Rating to INR50MM Cash Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Jaihind Automation Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Rupee Term Loan         35       CRISIL B+/Stable
   Cash Credit             50       CRISIL B+/Stable
   Letter of Credit        10       CRISIL A4

The ratings reflect subdued operating performance, average
financial risk profile, large working capital requirement, and
modest scale of operations amid intense competition. These rating
weaknesses are partially offset by the extensive experience of
the company's promoters in manufacturing injection-moulded
components, and established relationship with clients.

Outlook: Stable

CRISIL believes JAPL will continue to benefit from the extensive
experience of its promoters and established association with its
client Tata Motors Ltd. The outlook may be revised to 'Positive'
in case of significant increase in cash accrual, resulting in
improvement in financial risk profile, particularly liquidity.
The outlook may be revised to 'Negative' if there is lower-than-
expected cash accrual or substantial working capital requirement,
adversely impacting liquidity.

JAPL was established 1990 as a proprietorship concern by Mr. V
Sugathan; the firm was reconstituted as a private limited company
in 2003. It manufactures injection-moulded plastic components for
the automotive industry. The company is based in Pune,
Maharashtra, and has two units, with one in Pune and the other in
Sanand, Gujarat.


KAMLA SHIVHARE: CARE Lowers Rating on INR4.70cr LT Loan to 'D'
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Kamla
Shivhare.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      4.70      CARE D Revised from
                                            CARE C

   Long-term /Short-term Bank     3.00      CARE D Revised from
   Facilities                               CARE C/CARE A4

Rating Rationale

The revision in the rating assigned to the bank facilities of
Kamla Shivhare is primarily driven by delay in debt repayment due
to weak liquidity position.

Establishing a clear debt servicing track record with an
improvement in the liquidity position are the key rating
sensitivities.

Established in 1995, KSH is a sole proprietorship firm which is
into the business of retailing of alcohol. KSH is part of
Shivhare liquor group based in Madhya Pradesh (MP). KSH holds
retail liquor supplier license in MP and undertakes retail trade
of Indian made foreign liquor (IMFL), beer, country liquor (CL),
wine etc. The firm enters into open tendering process every year
to avail license for the retailing of the liquor. Depending upon
the allotment of shops during tendering, the number of shops held
by the firm varies every year. The shops are allotted in MP by
the state government through a competitive bidding process and
for FY15 (refers to the period April 1 to March 31), the firm has
received license for six shops. Of these six shops, two are of
IMFL and four of CL.


L R AUTOMOBILES: CRISIL Reaffirms B+ Rating on INR120MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of L R
Automobiles continues to reflect the firm's below-average
financial risk profile because of subdued capital structure and
weak debt protection metrics, and its low profitability.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            120       CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility       3.5     CRISIL B+/Stable (Reaffirmed)

The rating also factors in the firm's exposure to intense
competition in the automobile dealership market, and its limited
bargaining power with its principal supplier Hyundai Motor India
Ltd (Hyundai; 'CRISIL A1+'). These weaknesses are partially
offset by its established market position as a dealer of
Hyundai's passenger vehicles in its area of operations.
Outlook: Stable

CRISIL believes LRA will continue to benefit from its established
position in the automobile dealership business and its strong
relationship with Hyundai. The outlook may be revised to
'Positive' if the firm's financial risk profile improves because
of more-than-expected cash accrual or equity infusion. The
outlook may be revised to 'Negative' in case of low operating
margin or revenue, or large, debt-funded capital expenditure,
resulting in deterioration in the financial risk profile.

LRA was established by members of the Miglani family in 2008. The
firm is an authorized dealer of Hyundai's vehicles in Haryana. It
has two showrooms-cum-workshops, at Kaithal and Jind.


LARSON CERAMIC: CRISIL Assigns 'B' Rating to INR70MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to bank loan
facilities of Larson Ceramic.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            27.5       CRISIL B/Stable
   Term Loan              70.0       CRISIL B/Stable

The rating reflects exposure to implementation risks, as the firm
is still in the start-up phase, the modest scale of operations
amidst intense competition and below-average financial risk
profile, because of a leveraged capital structure. These rating
weaknesses are partially offset by extensive experience of
partners in the ceramic tile industry and favorable location of
the manufacturing facility at Morbi (Gujarat).
Outlook: Stable

CRISIL believes that LC will benefit from extensive experience of
its partners. The outlook may be revised to 'Positive' if
sizeable ramp-up in sales, leads to better cash accrual in the
initial phase. The outlook may be revised to 'Negative' if slower
ramp-up in scale of operations adversely affects cash accrual or
if stretch in working capital cycle weakens the financial risk
profile, especially liquidity.

LC was set up in 2016, by partners, Mr. Jagdish Patoilya, Mr.
Bharatbhai Detroja and Mr. Diwij Gami and their family members.
The wall tile manufacturing plant, at Morbi, is likely to
commence operations in October 2016.


MALLEMAALA AGRO: CRISIL Reaffirms B Rating on INR250MM LT Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Mallemaala
Agro Private Limited continues to reflect the company's large
working capital requirement and exposure to inherent risks in the
poultry industry. The rating also factors in MAPL's weak
financial profile because of modest networth, high gearing, and
subdued debt protection metrics. These weaknesses are partially
offset by the extensive entrepreneurial experience of its
promoters.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            47.5       CRISIL B/Stable (Reaffirmed)

   Long Term Loan        250.0       CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      2.5       CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes MAPL will continue to benefit from its promoters'
extensive entrepreneurial experience. The outlook may be revised
to 'Positive' if revenue and profitability increase significantly
on a sustainable basis, while working capital management
improves. The outlook may be revised to 'Negative' in case of
lower-than-expected revenue and operating profitability, or
sizeable, debt-funded capital expenditure, leading to
deterioration in the financial risk profile.

MAPL, incorporated in 2013, produces commercial eggs. Based in
Hyderabad, the company commenced operations in January 2015. It
is promoted by Mr. M Shyam Prasad Reddy and his family.

MARIGOLD PAINTS: ICRA Assigns B+ Rating to INR7.0cr Cash Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR7.00
crore cash credit facility of Marigold Paints Private Limited.
ICRA has also assigned a short-term rating of [ICRA]A4 to the
INR1.00 crore letter of credit facility of MPPL.

                         Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Cash Credit Facility     7.00      [ICRA]B+ assigned
   Letter of Credit         1.00      [ICRA]A4 assigned
   Bank Guarantee          (0.50)     [ICRA]A4 assigned

The assigned ratings take into account the company's financial
profile which is characterized by its working capital intensive
nature of operations, arising out of high credit period extended
to its customers as well as high inventory maintained by the
company, and its relatively small and stagnant scale of
operations. The maintenance of high inventory also makes the
profitability of the company vulnerable to volatility in raw
material costs, majority of which are crude oil derivatives. The
assigned ratings also remain constrained by the vulnerability of
profitability and cash flows to cyclicality inherent in the auto
industry, which is one of the key consuming sectors, and the
dominant presence of a few large players who also exercise price
control.

The assigned ratings, however, take comfort from the longstanding
experience of the company and its management in the paint
industry and its moderately established distribution network with
synergies derived from association with Snowcem Paints Private
Limited.

Incorporated in April 1987, Marigold Paints Private Limited is
engaged in manufacture of industrial paints as well as ancillary
products such as primer, resin, putty, thinner etc. It has also
integrated backwards to manufacture resins, such as alkyd, amino,
poly vinyl butyral resins, which are consumed captively for
manufacture of paints as well as sold to other players. The
company was erstwhile managed by Mr. Bhanu Patel from whom Mr.
Davinder Mittal took over in 2001. In April 2015, Snowcem Paints
Private Limited acquired 51% stake in the company and became a
majority stakeholder. Snowcem Paints Private Limited has an
experience of over a decade in manufacture of cement paints and
decorative paints.


MATHURA AGRO: CRISIL Assigns B- Rating to INR180MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-
term bank facilities of Mathura Agro Industries.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Proposed Long Term
   Bank Loan Facility      50        CRISIL B-/Stable
   Cash Credit            180        CRISIL B-/Stable
   Long Term Loan          70        CRISIL B-/Stable

The rating reflects the MAI's tight liquidity, marked by low
current ratio and its exposure to intense competition in the
agriculture industry leading to low operating profitability.
These rating weaknesses are partially offset by the extensive
experience of MAI's promoters and its moderate financial risk
profile.
Outlook: Stable

CRISIL believes that MAI will benefit from efficient working
capital management over the medium term. The outlook may be
revised to 'Positive' if the firm reports substantial improvement
in liquidity, backed by efficient working capital management and
healthy growth in cash accruals maintains the capital structure.
The outlook may be revised to 'Negative' if a stretch in the
working capital cycle or any debt-funded capital expenditure,
weakens the financial risk profile.

MAI was incorporated by Mr. Venugopal Karwa and his wife, Mrs. N
V Karwa in 2008. The firm processes products such as toor dal and
chana dal, and has its processing facility at Solapur, with
capacity of 125 and 150 tonnes per day for toor dal and chana
dal, respectively.


MICRON PHARMACEUTICALS: CRISIL Suspends B+ Rating on INR60MM Loan
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Micron
Pharmaceuticals.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          50        CRISIL A4
   Cash Credit             60        CRISIL B+/Stable
   Inland/Import Letter
   of Credit               50        CRISIL A4
   Term Loan                5.4      CRISIL B+/Stable

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

Established in 1982 as a partnership firm, MP manufactures
antibiotics and anti-bacterial and anti-malarial formulations in
various dosage forms such as tablets, capsules, ointments, liquid
injectibles, and powder. The firm is managed by Mr. Naresh Jain.
Its manufacturing facility is in Vapi (Gujarat).


N.S.K. FRUITS: CRISIL Reaffirms B+ Rating on INR80MM Cash Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facility of N.S.K. Fruits
continues to reflect its modest scale of operations in the highly
fragmented and competitive fruits trading industry and below
average financial risk profile marked by modest net worth and a
high gearing. These rating weakness are partially offset by the
promoters' extensive industry experience.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           80        CRISIL B+/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that NSK would benefit from the extensive
experience of its promoters and its established relationship with
customers over the medium term. The outlook may be revised to
Positive' if the firm increases its scale of operations and
profitability on a sustained basis resulting in improvement in
financial risk profile. Conversely, the outlook may be revised to
'Negative' if there is considerable decline in revenues or
profitability or in case of deterioration in working capital
management resulting in stretched liquidity or if the firm
undertakes any major debt funded capex, resulting in
deterioration in financial risk profile.

Established in 1985, as proprietorship concern, N.S.K fruits is
engaged in trading of various fruits. The firm is based out of
Attingal (Kerala) and is promoted by Mr. Aji S.


RADHARAMAN COTGIN: CRISIL Assigns B+ Rating to INR70MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Radharaman Cotgin Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          20       CRISIL A4
   Cash Credit             70       CRISIL B+/Stable

The rating factors in the modest scale of operations and low
profitability, and exposure to volatility in raw material prices
and change in government regulations. The rating also factors in
the weak financial risk profile, marked by small networth. These
rating weaknesses are partially offset by extensive experience of
promoters in the cotton ginning industry.
Outlook: Stable

CRISIL believes that RCPL will continue to benefit from extensive
experience of promoters. The outlook may be revised to 'Positive'
if significant growth in revenue, profitability and cash accrual,
strengthens the business and financial risk profiles. The outlook
may be revised to 'Negative' in case of considerable decline in
revenue and profitability or if an aggressive, debt-funded
expansion weakens the financial risk profile.

RCPL, incorporated in 2012, is engaged in ginning and pressing of
cotton, and also undertakes jobwork for Cotton Corporation of
India. The manufacturing unit is located at Bolangir, Odisha.


SDR POLYMERS: CRISIL Reaffirms 'D' Rating on INR32.5MM Cash Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of SDR Polymers Private
Limited continue to reflect instances of delay by SDR in
servicing its debt; the delays have been caused by the company's
weak liquidity, owing to its working-capital-intensive nature of
operations.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bill Discounting        15        CRISIL D (Reaffirmed)
   Cash Credit             32.5      CRISIL D (Reaffirmed)
   Letter of Credit        29.5      CRISIL D (Reaffirmed)
   Long Term Loan          24.0      CRISIL D (Reaffirmed)

SDR also has a weak financial risk profile, marked by high
gearing and a small net worth. However, the company benefits from
its promoters' extensive entrepreneurial experience.

SDR, incorporated in May 2010, is promoted by Mr. S D R Vijay
Seelan and his wife, Ms. Reena Seelan. It manufactures high-
density polyethylene and polypropylene circular woven sacks and
flexible intermediate bulk carrier bags.


SHREE RAM: CRISIL Lowers Rating on INR97.5MM Cash Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shree Ram Industries (Harij) to 'CRISIL D' from 'CRISIL
B+/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             97.5      CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Proposed Long Term       2.5      CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B+/Stable')

The downgrade reflects SRI's' delays in servicing its debt on
account of stretch in working capital cycle and liquidity.

The firm has small scale of operations in the competitive cotton-
ginning industry, and has a below-average financial risk profile
because of high gearing and weak debt protection metrics.
However, it benefits from its partners' industry experience.

RI, formed in 2007, is promoted by Patan, Gujarat-based Mr.
Jaydev Thakkar and his family members. The firm gins cotton.


SHREE RAM: ICRA Reaffirms 'B' Rating on INR5.0cr Cash Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B to the
INR5.00 crore cash credit facility of Shree Ram Pulse Mills.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Cash Credit             5.00        [ICRA]B reaffirmed

The rating reaffirmation takes into account the firm's modest
scale of operations and its weak financial risk profile marked by
low profitability, adverse capital structure and weak debt-
coverage indicators. The rating is further constrained by the
vulnerability of the company's profitability to agro-climatic
risks, the inherently low value-adding pulse processing business,
which also has high fragmentation and competitive pressures with
numerous small and unorganized as well as established players in
the industry. ICRA further notes the risks inherent in the
partnership form of business; any significant withdrawals from
capital account could adversely impact the net worth of the firm
and thereby its capital structure.

The rating, however, continues to positively consider the long
experience of the promoters in the pulse processing industry and
the favourable outlook for the entity's products in the domestic
market, given the growing consumption of pulses in India.

Established in 2003, Shree Ram Pulse Mills trades and processes
pigeon peas (tuvar dal), black gram pulse (urad dal) and gram
pulse (chana dal). The firm is promoted by Mr. Dhruv Parekh who
has a long experience in the pulse processing industry. SRPM's
plant is located at Gondal in the Rajkot district of Gujarat and
currently has a combined capacity to produce 9,000 Metric Tonnes
Per Annum (MTPA) of pigeon peas, black gram and gram pulse. The
firm markets its black gram under "Rose" and "Om" brands, pigeon
peas under "Gulab" brand, whereas gram pulse is sold under "VIP",
"Shakti", and "Jumbo" brands to differentiate the various grades.

Recent Results
During FY2015, SRPM reported an operating income of INR30.69
crore and profit after tax of INR0.23 crore as against the
operating income of INR32.05 crore and profit after tax of
INR0.04 crore during FY2014. As per provisional financials, the
firm reported an operating income of INR48.08 crore and profit
after tax of INR0.55 crore during FY2016.


SRI AUROBINDO: ICRA Suspends B+ Rating to INR63.21cr LT Loan
------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR63.21 crore
long term bank facilities of Sri Aurobindo Institute of Medical
Sciences. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.

According to the suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information
to access such rating during the surveillance exercise.

Sri Aurobindo Institute of Medical Sciences runs and operates 6
colleges and a hospital in an integrated campus of 50 acres in
Indore (Madhya Pradesh). The society started its operations in
2004 by offering graduate medical course (MBBS) with an initial
capacity of 100 students and the related hospital operations.
Gradually over the years, courses in dentistry, nursing,
paramedical sciences and post graduate medical courses were also
introduced. Further over the past five years or so, the society
has also diversified into engineering and management courses.

The institute reported an operating income of INR114.52 crore, an
operating profit of INR48.03 crore and a PAT of INR24.73 crore in
FY2015 (provisional numbers) as against an operating income of
INR128.16 crore, an operating profit of INR38.71 crore and a PAT
of INR13.42 crore in FY2014.


STATE BANK: Moody's Says AT1 Issuance Sets Pricing Benchmark
------------------------------------------------------------
Moody's Investors Service says that State Bank of India's (SBI,
Baa3 positive, ba1) issuance of additional tier 1 (AT1), Basel
III-compliance capital securities -- the first international
issuance of such securities by an Indian bank -- will set a
pricing benchmark for other issuers, and provide Indian banks
with an alternative funding option.

"We expect more Indian banks will look to raise capital via this
route to overcome some of the limitations of the domestic bond
market," says Alka Anbarusa, a Moody's Vice President and Senior
Analyst. "In particular, most Basel III securities issued by the
banks domestically have been privately placed, thereby offering
limited liquidity for investors."

Moody's conclusions are contained in its just-released report
"State Bank of India: Frequently Asked Questions about the Basel
III-Compliant AT1 Issuance." The Moody's report highlights the
key features of the issuance and Moody's approach to rating AT1
capital securities.

Moody's on 14 September 2016 assigned a B1(hyb) rating to the
perpetual non-cumulative capital securities issued by SBI, DIFC
branch. The terms and conditions of the capital securities
incorporate Basel III-compliant non-viability language in
accordance with Reserve Bank of India (RBI) guidelines, and will
qualify as Additional Tier 1 (AT1) capital securities.

Coupled with other recent measures to strengthen its
capitalization, including a capital infusion from the Indian
government (Baa3 positive) announced in July, the issuance will
boost SBI's loss-absorbing capacity and help it manage its legacy
problem assets -- a challenge also faced by many of the country's
other banks.

The key terms of the issuance are broadly in line with the
standards adopted by the Basel committee. However, the trigger
threshold for loss absorption is set at a level higher than the
5.125% recommended by the Basel committee, namely at 5.5% until
31 March 2019, and at 6.125% on or from 31 March 2019.

Nevertheless, Moody's does not consider the securities as "high
trigger" capital securities. This is because even though the
trigger threshold is above the Basel recommended level, Indian
AT1 securities will not absorb losses prior to the trigger events
as defined by the RBI. Their loss absorption is at the point of
non-viability and not in advance of a bank failure.

This contrasts Moody's interpretation high trigger capital
securities are designed to absorb losses prior to a bank-wide
failure.

This consideration results in Moody's rating the securities three
notches below the bank's adjusted baseline credit assessment
(BCA) of ba1, in accordance with Moody's standard notching
guidance for contractual non-viability preferred securities with
an option, non-cumulative distribution-skip mechanism.

Finally, while SBI is majority owned by the Indian government,
Moody's does not assume that the AT1 securities -- which are
designed to absorb losses -- will receive extraordinary
government support.

India adopted the use of AT1 securities on 1 April 2013. Since
then, Indian banks have issued about INR106 billion (USD1.6
trillion) of Basel III-compliant AT1 securities in the domestic
market.


STATE BANK: Moody's Puts B1 Perpetual Capital Securities Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a B1 (hyb) rating to State
Bank of India's (SBI) USD-denominated non-cumulative, non-
convertible perpetual capital securities.

The securities are issued under SBI's USD10 billion Medium Term
Note (MTN) program, via the bank's Dubai International Financial
Centre Branch.

The terms and conditions of the capital securities incorporate
Basel III-compliant non-viability language in accordance with
Reserve Bank of India (RBI) guidelines, and will qualify as
regulatory Additional Tier 1 (AT1) capital securities.

The rating is subject to the receipt of final documentation, the
terms and conditions of which are not expected to change in any
material way from the draft documents that Moody's has reviewed.

RATINGS RATIONALE

The rating is positioned three notches below the bank's adjusted
baseline credit assessment (BCA) of ba1, in accordance with
Moody's standard notching guidance for contractual non-viability
preferred securities with an optional, non-cumulative
distribution-skip mechanism.

The three-notch difference from the adjusted BCA reflects the
probability of impairment associated with non-cumulative coupon
suspension, as well as the likelihood of high loss severity when
the bank reaches the point of non-viability.

Under the terms and conditions, the principal and any accrued but
unpaid distributions on these capital securities would be written
down, partially or in full, when SBI's group or solo common
equity tier 1 (CET1) ratio is at or below the 5.5% prior to
March 31, 2019, and 6.125% from and including March 31, 2019. In
such a scenario, the write-off may be temporary and the amount
written-off could be reinstated subject to RBI's conditions.

While the CET1 trigger event threshold is higher than the global
standard, Moody's does not consider these securities to be 'high
trigger' contingent capital securities, as the broad principle of
loss absorption is at the point of non-viability and not in
advance of a bank failure. In this regard, the ratings of the AT1
securities are notched from SBI's adjusted BCA.

Loss absorption will also be triggered in the event that the RBI
notifies the bank that without such write-off, the bank would
become non-viable, or if the RBI decides to make a public sector
capital injection without which the bank would become nonviable.
Additionally, such loss absorption will be triggered if RBI or
any other relevant authority decides to reconstitute or
amalgamate the bank with another bank. In such scenarios, the
write-down will be permanent.

Furthermore, SBI, as a going concern, may choose not to pay
interest on these securities on a non-cumulative basis. As such,
the distributions on these capital securities are fully
discretionary. However, a common share dividend stopper applies
if a distribution is missed.

These securities are senior to common shareholders and perpetual
non-cumulative preference shareholders, but junior to all
depositors, general creditors, and holders of subordinated debt
of SBI, other than any subordinated debt that qualifies as
Additional Tier 1 capital. These securities rank pari passu with
any other debt instruments classified as Additional Tier 1
Capital under the RBI Guidelines and with any subordinated
obligation that was eligible for inclusion in hybrid Tier 1
capital under the then prevailing Basel II guidelines.

While SBI is majority owned by the Indian government (Baa3
Positive), we do not assume that AT1 securities will receive
extraordinary government support, as these are designed to absorb
losses at the point of nonviability.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The ratings of the AT1 securities are notched from SBI's adjusted
BCA. As such, the ratings of the securities will be upgraded or
downgraded if SBI's BCA is revised upwards or downwards.

SBI's BCA is unlikely to be revised upwards in the next 12-18
months, because asset quality deterioration in recent years has
put pressure on its credit profile.

SBI's BCA could face downward pressure if: (1) its NPL ratio
increases substantially from current levels; and/or (2) if its
core earnings fall, impacting its ability to support an increase
in credit costs.

SBI's deposit ratings and ratings of senior unsecured debt could
be upgraded if India's sovereign rating of Baa3 is upgraded.

Additionally, any indications that support from the Government of
India (Baa3 positive) has diminished or that additional capital
requirements may arise beyond the government's budgeted amount
could put the bank's ratings under pressure.

Any downward changes in the sovereign's ceilings could also
affect the bank's ratings.

The principal methodology used in this rating was Banks published
in January 2016.

State Bank of India, headquartered in Mumbai, held total assets
of INR22.7 trillion at end-June 2016.


SUMANGLAM WOOD: ICRA Reaffirms B- Rating on INR6.0cr LT Loan
------------------------------------------------------------
ICRA has reaffirmed its long-term rating on the INR6.00 crore
fund based bank facilities of Sumanglam Wood Products (India)
Private Limited at [ICRA]B-. ICRA has also reaffirmed its short-
term rating at [ICRA]A4 on the INR10.00 crore non fund based bank
facilities of SWPL.

                         Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Fund Based Limits-
   Long Term                6.00      [ICRA]B-; reaffirmed

   Non Fund Based
   Limits-Short Term       10.00      [ICRA]A4; reaffirmed

ICRA's rating reaffirmation takes into account the decline in the
company's operating and net profit margins in FY2016 on account
of the highly competitive nature of the timber industry. ICRA's
ratings also factor in the vulnerability of the company's
profitability to changes in raw material prices and adverse
foreign exchange fluctuations, in the absence of any firm hedging
mechanism. ICRA's ratings also take into account the working
capital intensive nature of SWPL's operations, and the company's
reliance on bank borrowings for funding the working capital
requirements. Heavy reliance on external debt and declining
profitability have resulted in a highly leveraged capital
structure, with gearing of 3.55 times in FY2016, and weak
coverage indicators with interest coverage of 1.21 times.
Nevertheless, the ratings derives comfort from significant
experience of the management in the timber industry and the
company's diverse client base, consisting of a large number of
clients including government entities and players from industries
such as real estate, packaging, construction, etc.

Going forward, the company's ability to register growth in
revenues, improve its profitability and optimally manage its
working capital cycle will be the key rating sensitivities.

SWPL trades in lumber and chemicals like Ethyl Vinyl Accetate
(EVA), and manufactures packing boxes and pallets, with trading
of timber contributing to ~90% of its total revenues. SWPL
primarily imports timber from New Zealand and South Asian and
African countries.

Recent Results
SWPL, reported a net profit of INR0.24 crore on an operating
income of INR29.34 crore for FY2016, as compared to a net profit
of INR0.15 crore on an operating income of INR19.66 crore for the
previous year.


VVV CONSTRUCTION: CRISIL Hikes Rating on INR85MM Loan to B+
-----------------------------------------------------------
CRISIL has upgraded its long-term rating on the bank facilities
of VVV Construction Private Limited to 'CRISIL B+/Stable' from
'CRISIL B/Stable', while reaffirming its short-term rating at
'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          65       CRISIL A4 (Reaffirmed)
   Overdraft Facility      85       CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

The rating upgrade reflects improvement in VVVCPL's operating
performance, marked by better-than-expected revenues in fiscal
2016, while maintaining its profitability. The revenues are
estimated at INR340 million for fiscal 2016, better than CRISIL's
expectation of INR250 million. The growth in revenue was aided by
healthy order book position and better execution of orders.
CRISIL believes that VVVCPL's business risk profile will continue
to improve over the medium term supported by its healthy
unexecuted order book.

The ratings also reflect VVVCPL's modest scale of, and working
capital intensive operations, geographical concentration in its
revenue profile and its small net worth. These weaknesses are
partially offset by the extensive experience of its promoters in
the civil construction industry.
Outlook: Stable

CRISIL believes that VVVCPL will continue to benefit over the
medium term from the industry experience of its promoters and its
healthy order book position. The outlook may be revised to
'Positive' if VVVCPL scales up its operations significantly while
maintaining its profitability, resulting in improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in the company's
revenues and profitability, or deterioration in its working
capital management, resulting in stretched liquidity, or if it
undertakes a large debt-funded capital expenditure programme,
leading to weakening of its financial risk profile.

VVVCPL was set up in 1987 as a partnership; the firm was
reconstituted as a private limited company in 2005. VVVCPL is
engaged in execution of civil contracts for Tamil Nadu Water
Supply and Drainage Board and Metro Water. Its day-to-day
operations are managed by Mr. Venkata Vijayan.


ZF ELECTRONICS: CRISIL Assigns B+ Rating to INR45MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of ZF Electronics Tvs India Private Limited.

                          Amount
   Facilities            (INR Mln)     Ratings
   ----------            ---------     -------
   Proposed Long Term
   Bank Loan Facility        20        CRISIL B+/Stable
   Export Packing Credit     25        CRISIL B+/Stable
   Bank Guarantee             2        CRISIL A4
   Cash Credit               45        CRISIL B+/Stable
   Standby Line of Credit    10        CRISIL B+/Stable
   Term Loan                 45        CRISIL B+/Stable
   Letter of Credit           3        CRISIL A4

The ratings reflect ZFTVS's modest scale of operations in the
intensely competitive automotive component industry and its
modest financial risk profile marked by a modest net worth and
below average debt protection metrics. These weaknesses are
partially offset by the promoter's long standing presence in the
automotive component industry and its association with the TVS
group.

Outlook: Stable

CRISIL believes ZFTVS will continue to benefit over the medium
term from the promoter's long standing presence in the automotive
component industry. The outlook may be revised to 'Positive' in
case of significant growth in revenue and operating margin. The
outlook may be revised to 'Negative' in case of a decline in
revenue or operating margin or larger-than-expected debt-funded
capital expenditure, resulting in weakening of the financial risk
profile, particularly liquidity.

Set up in 1993, ZFTVS is an equal joint venture between TVS
Srichakra Investments Ltd (100% subsidiary of TVS Srichakra Ltd,
rated 'CRISIL AA-/Stable/CRISIL A1+') and ZF India Pvt Ltd. The
company manufactures electro-magnetic switches for consumer
durables, and automotive components. The company is based out of
Madurai (Tamil Nadu).



=========
J A P A N
=========


TAKATA CORP: Bidders Said to Mull Bankruptcy Option
---------------------------------------------------
Craig Trudell and Masatsugu Horie, writing for Bloomberg News,
reported on Sept. 20 that Takata Corp. shares fell 12 percent in
Tokyo trading as bidders for the air-bag maker were said to
consider the possibility of some form of bankruptcy proceedings
for the Japanese company behind the auto industry's biggest ever
safety recall.

According to the report, the shares posted their biggest decline
since March 30 to 374 yen on Sept. 20.  The drop was the biggest
on the benchmark Topix index and reduced the company's market
value to 31.1 billion yen ($305 million), the report related.

Bidders for Tokyo-based Takata have been asked to submit their
proposals by early this week, and suitors include Carlyle Group
LP, which is working with Chinese-owned air-bag manufacturer Key
Safety Systems Inc.; Daicel Corp., a Japanese manufacturer of
air-bag inflators that's jointly bidding with Bain Capital; and
KKR & Co., the report further related, citing people familiar
with the matter.  Some of the bidders are considering the
possibility of bankruptcy proceedings for Takata as an option to
mitigate liabilities, the people said, asking not to be
identified because the deliberations are confidential, the report
said.

The company aims to shortlist two to three candidates by October,
said the people, who asked not to be identified because the
information is confidential, the report added.

Pursuing bankruptcy could result in very low repayment to debt
holders, Nobuhiko Anbiru, a senior credit analyst at Mitsubishi
UFJ Morgan Stanley, said, Bloomberg cited.  While bondholders
have been repaid about 10 percent in recent bankruptcy cases in
Japan, Takata's car-making customers and sponsors may agree to
support Takata and the notes could be redeemed at maturity, the
report further cited Mr. Anbiru as saying.

                      About Takata Corp.

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/--develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts. The Company
has subsidiaries located in Japan, the United States, Brazil,
Germany, Thailand, Philippines, Romania, Singapore, Korea, China
and other countries.


TAKATA CORP: Receives 5 Bids from Potential Buyers
--------------------------------------------------
David Welch and Masatsugu Horie at Bloomberg News report that
Takata Corp. has received bids from potential suitors including
buyout firm KKR & Co. and Japanese peer Daicel Corp. as it faces
mounting liabilities related to its record recalls, according to
people familiar with the matter.

Bloomberg relates that the Japanese safety supplier has taken
bids from KKR, auto-parts supplier Flex-N-Gate Corp. and air-bag
makers Autoliv Inc. and Key Safety Systems Inc., said one of the
people, who asked not to be identified because the deliberations
are confidential. Air-bag inflator maker Daicel teamed with Bain
Capital for a fifth bid, the person said. Takata spokesman
Toyohiro Hishikawa declined to comment, Bloomberg notes.

Bloomberg says Takata fell the most in almost six months on
Sept. 20 as bidders were said to consider the possibility of some
form of bankruptcy proceedings as an option to mitigate
liabilities. Almost 70 million Takata air-bag inflators are
scheduled for replacement in the U.S. alone through 2019 and as
many as 15 deaths worldwide have been linked to the components,
which can rupture and shoot deadly shards at vehicle occupants,
according to Bloomberg.

A person with knowledge of the restructuring process said in May
that Takata would seek to avoid bankruptcy and instead look for
buyers that could take a controlling stake and carry the company
through its crisis, Bloomberg notes.

Bidders were asked to submit proposals covering multiple
potential scenarios for how Takata's recall costs and legal
liabilities will be handled, according to one of the people, says
Bloomberg.  Takata has scheduled meetings to discuss the bids
with its carmaker customers from Sept. 27 through 29, one of the
people said, Bloomberg relays. Automakers' role in covering a
share of the air bag-related costs will be discussed as part of
the process, the people, as cited by Bloomberg, said.

The Nikkei newspaper reported the bids earlier on Sept. 21, adds
Bloomberg.

As reported in the Troubled Company Reporter-Asia Pacific on
May 27, 2016, The Wall Street Journal said Takata hired
investment bankers to seek a cash infusion and negotiate with
auto makers over the ballooning costs it faces for rupture-prone
air bags linked to 11 deaths and more than 100 injuries world-
wide.

Takata tapped Lazard to help craft a restructuring plan to help
it deal with what are expected to be billions of dollars in
liabilities stemming from the faulty air bags, a steering
committee for the Japanese company said on May 25, confirming an
earlier report from the Journal.

The steering committee, made up of business, financial and legal
experts in Japan, retained Lazard in April 2016, the report said,
citing people familiar with the matter.

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/--develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts. The Company
has subsidiaries located in Japan, the United States, Brazil,
Germany, Thailand, Philippines, Romania, Singapore, Korea, China
and other countries.



====================
N E W  Z E A L A N D
====================


LOVETT & SONS: Placed Into Liquidation
--------------------------------------
NZ Herald reports that the owner of the Silverdale Mad Butcher
has been put into liquidation, adding to a string of business
failures in the meat chain.

A spokesman for the Ministry of Business, Innovation and
Employment confirmed that the Official Assignee was appointed
liquidator of Lovett & Sons -- the operator of the Silverdale
outlet -- by order of the High Court, according to NZ Herald.

The appointment followed an application by the Inland Revenue
Department to liquidate the company for failure to pay tax, the
report notes.

The Silverdale store is at least the 11th Mad Butcher outlet to
have gone into liquidation, receivership or been closed down in
recent years, the report says.

The original Mad Butcher store, established by Sir Peter Leitch
in the 1970s, went into liquidation in July.

NZX-listed Veritas Investments, which acquired the butchery chain
in 2013, closed three company-owned Mad Butcher stores during the
second half of its last financial year, the report recalls.

When reporting its full-year result in August, Veritas said that
despite the "challenging environment" the majority of Mad Butcher
stores were trading profitably, the report relates.

The report says that a Veritas spokeswoman said the firm wasn't
able to comment on the Silverdale liquidation given the matter
was "personal to the company's owners".

"The Mad Butcher will consider options for the future of the
store once the Official Assignee has been in contact," the
company said, the report notes.

There are 33 stores in the Mad Butcher chain, two of which are
owned by Veritas.



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


HANJIN SHIPPING: Court Says Plan "Realistically Impossible"
-----------------------------------------------------------
Joyce Lee at Reuters, citing Yonhap News Agency, reports that the
South Korean court overseeing Hanjin Shipping's receivership said
a rehabilitation plan is "realistically impossible" if top
priority debt such as backlogged charter fees exceed KRW1
trillion ($896 million).

Hanjin Shipping, the world's seventh-largest container carrier,
filed for receivership late last month in a South Korean court
and must submit a rehabilitation plan in December, according to
Reuters.

With debt of about KRW6 trillion ($5.4 billion) at the end of
June and the South Korean government's unwillingness to mount a
rescue, expectations are low that Hanjin Shipping will be able to
survive, Reuters relates.

Top priority debt means claims for public interests, which are
paid first to creditors and include cargo owners' damages and
unpaid charter fees, Yonhap reported citing the Seoul Central
District Court, Reuters relates.

Backlogged charter fees that occurred after Hanjin Shipping's
court receivership have topped KRW40 billion, while cargo owners'
claims for damages are expected to begin in earnest after 3-4
weeks have passed from original delivery schedules, the report,
as cited by Reuters, said.

Reuters says Hanjin has begun returning chartered ships to their
owners and is trying to secure enough funds to help unload an
estimated $14 billion in cargo initially trapped on its ships
around the world.

Reuters relates that the company had a total of 141 vessels,
including 97 container ships as of early September. Out of the 97
container ships, 60 were chartered and 37 owned by Hanjin.

Dozens of ships remained anchored off ports while Hanjin tries to
secure funds to unload them and to arrange court protection from
creditors seizing them for unpaid bills, Reuters says. Some face
other challenges to unload their cargos as thousands of
containers pile up, creating havoc ahead of the crucial holiday
shopping season.

Reuters notes that shares in Hanjin plunged more than 20% to a
record low after the report, which lent support to the view the
company will slide into liquidation.

                      About Hanjin Shipping

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000.  Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year.  It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world.  The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016.  On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016.  Tai-Soo Suk was appointed as the Debtor's
custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.


HANJIN SHIPPING: South Korea Seeks Diplomatic Help for Firm
-----------------------------------------------------------
Yonhap News Agency reports that South Korea on Sept. 20 sought
diplomatic help for the near-bankrupt South Korean shipper,
Hanjin Shipping Co., as the government stepped up efforts to prop
up the country's biggest shipper.

Having failed to repay snowballing debts, Hanjin entered a court-
guaranteed self-restructuring plan in early September, but this
move stranded its container vessels bound for foreign
destinations, Yonhap says.

Yonhap relates that a U.S. court allowed Hanjin vessels to unload
their cargo without being seized by creditors, but many other
Hanjin container vessels have been stranded due to the lack of
court-issued stay orders.

According to Yonhap, Lee Tae-ho, the deputy foreign minister for
economic affairs at the Ministry of Foreign Affairs, called in
diplomats from 16 countries which have been affected by the debt-
ridden Hanjin's filing for court receivership earlier in the day
to ask for their assistance in resolving the logistical crisis
facing the shipper.

"I wanted to assure you by meeting you directly and giving you
detailed briefing on the current situation," Mr. Lee told the
foreign diplomats, Yonhap relays.  "We wanted to assure you that
the situation is more or less under control and . . . we wanted
to ask your home governments for cooperation," he said, outlining
what efforts Seoul conducted so far for Hanjin.

Yonhap says the countries invited to the gathering included
Britain as well as the European Union, which accounts for a
majority of the Hanjin-carried cargo containers. Other diplomats
present were those from the United States, Spain, Mexico,
Germany, China, Japan, Australia and India.

                      About Hanjin Shipping

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000.  Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year.  It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world.  The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016.  On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016.  Tai-Soo Suk was appointed as the Debtor's
custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.


HANJIN SHIPPING: Vessels To Be Returned to Owners, Judge Says
-------------------------------------------------------------
The American Bankruptcy Institute, citing Joyce Lee of Reuters,
reported that a South Korean judge said all Hanjin Shipping Co
Ltd (117930.KS) chartered vessels that have completed unloading
their cargo have been told to cancel their charter agreements and
return the ships to the shipowners.

Hanjin, the world's seventh-largest container line, filed for
receivership last month, leaving more than 100 ships and their
cargo at sea and threatening to snarl U.S. freight traffic as the
year-end shopping season approaches, according to the report.

Dozens of Hanjin's ships have been blocked from docking with
ports and lashing firms fearing they won't be paid. Some vessels
have also been seized and some sold, the report related.

The company had a total of 141 vessels, including 97 container
ships as of early September. Out of the 97 container ships, 60
were chartered and 37 owned by Hanjin, the report further
related.

The company returned three bulk carriers earlier this month, a
Hanjin Shipping spokeswoman said, the report cited.

In addition, four container ships have been returned to the
shipowners, while Hanjin has received shipowners' notifications
to return 13 more container ships, another Hanjin spokeswoman
said, the report added.

                      About Hanjin Shipping

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000.  Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year.  It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world.  The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016.  On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on Sept.
1, 2016.  Tai-Soo Suk was appointed as the Debtor's custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin
Shipping.


KUMHO TIRE: Creditors Seek Buyer for Controlling Stake in Firm
--------------------------------------------------------------
The Korea Herald reports that creditors of Kumho Tire, Korea's
second-largest tire-maker by revenue, are seeking a buyer for
their combined controlling stake -- a sale that former owner
Kumho Asiana Group Chairman Park Sam-koo would love to see fail.

The Korea Herald says eight financial institutions, including
Woori Bank and Korea Development Bank, on Sept. 20 put out a
public notice of the stake sale. Credit Suisse is arranging the
deal, the report relates.

According to The Korea Herald, the announcement said the shares,
worth about KRW750 billion ($670 million) based on the firm's
current share price, will be sold in an open auction, with
preliminary bidding scheduled for November. The final round of
bidding and the selection of a preferred bidder could take place
in January, The Korea Herald notes.  With management premiums,
the price tag could be somewhere around KRW1 trillion, local
reports said, The Korea Herald relays.

The Korea Herald says Chairman Park can preempt any sale to a
third party by exercising his right of first refusal, which
allows him to repurchase the stake under the same terms as the
highest bidder.

"I will make that happen," he said earlier this year, when asked
about his intention to buy the creditors-held shares of Kumho
Tire, relates The Korea Herald.

According to The Korea Herald, deal observers said taking Kumho
Tire back under his control, however, may be not as easy as it
sounds.

The Korea Herald relates that a key issue is whether the tycoon
is capable of bankrolling the reacquisition, after raising KRW723
billion earlier this year to buy back Kumho Industrial, another
former Kumho Asiana Group unit, from the hand of its creditors.

Furthermore, Kumho Tire is likely to garner interest from a range
of potential buyers, including its global tire rivals. Private
equity funds, which have been waiting for investment
opportunities in this year's low buyout market, could find Kumho
Tire attractive too, watchers said, relays The Korea Herald.

Mindful that Park's preemptive right and strong resolve to use it
can be a turnoff for those interested, the state-run KDB is
trying to have the seller side shoulder some of the costs of due
diligence incurred by potential buyers, notes the report.

"The proposal has been presented to the creditors' council," a
KDB official said, the report says.

Kumho Tire has graduated from a four-year debt workout program
led by creditors at the end of 2014, The Korea Herald discloses.
For the first six months of this year, the firm logged KRW1.45
trillion in revenue and KRW55.8 billion.

Globally, it ranks 12th by sales, with production bases in Korea,
China and elsewhere. This May, the tire-maker opened its first
plant in the US state of Georgia, expanding its presence in the
world's largest tire market, notes the report.

For Kumho Asiana Group, Kumho Tire is much more than just a tire-
maker. It will be a trophy, symbolic of the group's comeback from
a crisis six years ago which saw the 70-year-old conglomerate's
chaebol ranking plunge to 29th from seventh, the report says.

The Korea Herald relates that prior to the creditor receivership,
the firm was one of the three cores of the group's business
portfolio, along with Asiana Airlines and Kumho Industrial.

Park lost control over Kumho Tire and Kumho Industrial to their
respective creditors in 2010 in the height of a group-wide debt
crisis, The Korea Herald notes.



                             *********

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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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mail.  Additional e-mail subscriptions for members of the same
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thereof are US$25 each.  For subscription information, contact
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