TCRAP_Public/170112.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Thursday, January 12, 2017, Vol. 20, No. 9

                            Headlines


A U S T R A L I A

A1 METALFAB: First Creditors' Meeting Set for Jan. 20
B B & M B PTY: First Creditors' Meeting Set for Jan. 18
FLEXI ABS 2016-1: Moody's Hikes Class E Notes Rating From Ba1
PALADIN ENERGY: Unveils Proposed Balance Sheet Restructuring


C H I N A

CHINA SOUTH: Moody's Withdraws B2 CFR, Outlook Negative
COUNTRY GARDEN: Fitch Retains BB+ Rating on Management Changes
GEELY AUTOMOBILE: Pos. Profit Expectation Backs Moody's Ba2 CFR
HENGDELI HOLDINGS: Fitch Puts 'B+' IDR on Rating Watch Negative


H O N G  K O N G

FWD LIMITED: Moody's Assigns Ba1(hyb) to Sub. Capital Securities


I N D I A

ABHINAV INDUSTRIES: ICRA Assigns 'B' Rating to INR.70cr Loan
AJAY TUBE: CARE Lowers Rating on INR9.50cr LT Loan to 'D'
ALLEPPEY COMPANY: CARE Hikes Rating on INR20.70cr Loan to BB-
ANOKHI PAHEL: CARE Reaffirms B+ Rating on INR15cr LT Loan
CORAL TELECOM: CARE Assigns B+ Rating to INR7.75cr LT Loan

GBJ HOTELS: ICRA Suspends B+ Rating on INR108cr Term Loan
H.B. RAVI: CARE Revises Rating on INR6cr LT Loan to BB
INDIA: Weak Asset Quality Pressure Banks' Prospects, Moody's Says
JAIPRAKASH ASSOCIATES: CARE Reaffirms 'D' Long Term Loan Rating
JALA SHAKTI: ICRA Reaffirms 'D' Rating on INR24.22cr LT Loan

JAMUJARA LUBRICANTS: Ind-Ra Withdraws B- Long Term Issuer Rating
JAYPEE INFRATECH: CARE Reaffirms 'D' Rating on INR6,550cr LT Loan
KABRA PLASTICS: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
KAYBEE ENTERPRISES: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
KERALA BALERS: CARE Upgrades Rating on INR12cr Bank Loan to BB-

KOMARLA HATCHERIES: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
KRISHNA ARJUNA: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms D Rating on INR200MM Loan
LAVASA CORPORATION: CARE Reaffirms 'D' Rating on INR547.81cr Loan
MAHATHI SOFTWARE: Ind-Ra Withdraws 'D' Long-Term Issuer Rating

MAKCUR LABORATORIES: Ind-Ra Withdraws B- Long-Term Issuer Rating
N.C. JOHN: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
NITASHA CONSTRUCTIONS: ICRA Reaffirms 'B' Rating on INR8cr Loan
ONE CAPITALL: Ind-Ra Withdraws 'BB' Rating on INR900MM Bank Loans
ORANGE INFRACON: ICRA Lowers Rating on INR38cr Term Loan to B+

PALIWAL MILK: ICRA Suspends 'B' Rating on INR7cr LT Loan
PAS TRADING: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
PEENANG INFRA: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
POWERLITE ELECTRICALS: CARE Rates INR5cr Long Term Loan at 'B'
PRIME CIVIL: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating

PRIME NEWLINE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
PRIVILEGE HEALTH: Ind-Ra Withdraws 'D' Long-Term Issuer Rating
RAJASTHAN VIKAS: ICRA Upgrades Rating on INR25cr Term Loan to B+
RAJESHWARA FORGINGS: Ind-Ra Withdraws B+ Long-Term Issuer Rating
RSH AGRO: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating

SALEM TOLLWAYS: Ind-Ra Affirms 'D' Rating on INR2.230BB Bank Loan
SANJOG SUGARS: ICRA Hikes Rating on INR41.12cr LT Loan to C+
SARJU IMPEX: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
SEVEN HILLS: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
SHIV SHAMBHU: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating

SHIVA CEMENT: CARE Lowers Rating on INR45.44cr LT Loan to 'D'
SHLOGAM AGRO: CARE Reaffirms 'D' Rating on INR30cr ST Loan
SHREE KANKESHWARI: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
SHRI KRISHNASHRAY: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
SIVA VAISHNAVI: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating

SLN TERMINUS: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
SOMNATH COLD: ICRA Suspends 'B' Rating on INR2.95cr Loan
SRI RAM TECHNOPACK: CARE Rates INR4.90cr Long Term Loan at B+
STATE TRADING: CARE Ups Rating on INR2,000cr LT Loan to BB+
SUZUKI TEXTILES: CARE Reaffirms 'C' Rating on INR143.87cr LT Loan

UNIVERSAL CONFECTIONERY: CARE Assigns B Rating to INR1.18cr Loan
UNIVERSAL STAINLESS: CARE Reaffirms 'B' Long Term Loan Rating
UTTAM VALUE: CARE Reaffirms 'D' Rating on INR1,390cr Bank Loan
VELOX CERAMIC: CARE Revises Rating on INR7.46cr LT Loan to B+
WELLCARE OIL: CARE Hikes Rating on INR2.89cr LT Loan to BB-

WEST INN: CARE Assigns B+ Rating to INR15cr Long Term Loan


J A P A N

TOSHIBA CORP: Biggest Lenders Maintain Conditional Support


M A L A Y S I A

LFE CORPORATION: Exits PN17 Status After Upliftment


N E W  Z E A L A N D

SIZZLEPOP LIMITED: Collapses Into Liquidation


S I N G A P O R E

EMAS OFFSHORE: Posts US$2.2 Million Net Loss for Q1 2017


S O U T H  K O R E A

HANJIN SHIPPING: Trading of Shares Temporarily Suspended
KUMHO TIRE: Creditors to Receive Final Bids This Week


X X X X X X X X

* Moody's 2017 Outlook for Asia Pacific Sovereigns Stable


                            - - - - -


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A U S T R A L I A
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A1 METALFAB: First Creditors' Meeting Set for Jan. 20
-----------------------------------------------------
A first meeting of the creditors in the proceedings of A1
Metalfab Pty Ltd will be held at the offices of McLeod &
Partners, Hermes Building, Level 1, 215 Elizabeth Street, in
Brisbane, Queensland, on Jan. 20, 2017, at 10:00 a.m.

Jonathan Paul McLeod of McLeod & Partners was appointed as
administrator of A1 Metalfab on Jan. 10, 2017.


B B & M B PTY: First Creditors' Meeting Set for Jan. 18
-------------------------------------------------------
A first meeting of the creditors in the proceedings of B B & M B
Pty Ltd will be held at SM Solvency Accountants, Level 8/490,
Upper Edward Street, in Spring Hill, Queensland, on Jan. 18,
2017, at 2:00 p.m.

Brendan Nixon and Leon Lee of SM Solvency were appointed as
administrators of B B & M B Pty on Jan. 10, 2017.


FLEXI ABS 2016-1: Moody's Hikes Class E Notes Rating From Ba1
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on four
classes of notes issued by Perpetual Corporate Trust Limited in
its capacity as the trustee of the Flexi ABS Trust 2016-1.

The affected ratings are as follow:

Issuer: Flexi ABS Trust 2016-1

AUD12.48M Class B Notes, Upgraded to Aa1 (sf); previously on
Apr 27, 2016 Definitive Rating Assigned Aa2 (sf)

AUD14.82M Class C Notes, Upgraded to A1 (sf); previously on
Apr 27, 2016 Definitive Rating Assigned A2 (sf)

AUD10.4M Class D Notes, Upgraded to A3 (sf); previously on
Apr 27, 2016 Definitive Rating Assigned Baa2 (sf)

AUD7.8M Class E Notes, Upgraded to Baa3 (sf); previously on
Apr 27, 2016 Definitive Rating Assigned Ba1 (sf)

RATINGS RATIONALE

The upgrade was prompted by an increase in credit enhancement
available for the affected notes. In addition, the transaction
portfolio has been performing within Moody's expectations.

The notes were repaid sequentially from closing in April 2016
until November 2016. During this period, the credit enhancement
available for the Class B, Class C, Class D and Class E notes
increased to 28.6%, 19.4% and 12.9% and 8.1% from 17.7%, 12.0 %,
8.0% and 5.0%.

The notes are now repaid on a pro-rata basis.

The performance of the transaction has been stable since closing.
Cumulative defaults were at 1.2% of the original pool balance as
at December 2016. This level is in line with Moody's expectation
based on historical timing of defaults.

Based on the observed performance and outlook, Moody's maintained
its expected default assumption at 2.7% as a percentage of the
original pool balance.

The transaction is a cash securitisation of a portfolio of
unsecured, retail, 'no interest ever' receivables extended to
obligors located in Australia.

Factors that would lead to an upgrade or downgrade of the
ratings:

Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectation, and (2) deleveraging of the capital
structure.

Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than
Moody's expectation, (2) decrease in the notes' available credit
enhancement, and (3) deterioration in the credit quality of the
transaction counterparties.


PALADIN ENERGY: Unveils Proposed Balance Sheet Restructuring
------------------------------------------------------------
Paladin Energy Limited announced on Jan. 9, 2017, that it has
resolved to enter into a proposal to restructure its balance
sheet (Restructure Proposal), which if implemented, will have the
effect of reducing its debt obligations and extending the
maturity of remaining debt. In the absence of further progress on
the potential sale of a 24% interest in Langer Heinrich Mine
(LHM) (the LHM Stake Sale), the purpose of the Restructure
Proposal is to address the upcoming maturity of Paladin's
outstanding US$212M 6.00% Convertible bonds due April 30, 2017
(the 2017 Convertible Bonds) with a holistic solution that
provides a stable and sustainable capital structure for the
benefit of all stakeholders and a platform for future growth when
the uranium market improves.

HIGHLIGHTS

The Restructure Proposal contemplates US$362M (comprising all
outstanding 2017 Convertible Bonds and 2020 Convertible Bonds) to
be exchanged into:US$115M of New Secured Bonds due 2022, with a
7% cash coupon;

US$115M of New Secured Bonds due 2022, with a 7% cash coupon;

US$102M of New 2024 Convertible Bonds, with a zero coupon and
conversion price of US$0.0512/share (i.e. approximately
A$0.07/share);

US$145M of Paladin shares at A$0.05/share; and

Any accrued unpaid interest to be exchanged 75%:25% into the New
Secured Bonds and the New 2024 Convertible Bonds respectively

Bondholders representing 57% of the 2017 Convertible Bonds and
41% of the 2020 Convertible Bonds have already signed binding
undertakings to support the Restructure Proposal

Key conditions to Restructure Proposal: EDF consent to amendments
to the long term off-take agreement allowing early deliveries
against the prepayment amount paid by EDF in 2012 and security
sharing arrangements with the New Secured Bonds and the New 2024
Convertible Bonds

EDF consent to amendments to the long term off-take agreement
allowing early deliveries against the prepayment amount paid by
EDF in 2012 and security sharing arrangements with the New
Secured Bonds and the New 2024 Convertible Bonds

Formal approval of holders of Existing Convertible Bonds

Approval of shareholders

Company to conduct an equity raising of a minimum of US$75M

Paladin continuing to hold 75% of LHM

There being no superior proposal

All necessary regulatory approvals, including Australia's Foreign
Investment Review Board

Consent of existing secured parties to the grant of subsequent
ranking security in favour of EDF, the New Secured Bonds and the
New 2024 Convertible Bonds

Company to propose a 10 for one share consolidation

Restructure Proposal

A number of holders of the Company's 2017 Convertible Bonds
(US$212M outstanding) and US$150M 7.00% Convertible bonds due 31
March 2020 (the 2020 Convertible Bonds) (together, the Existing
Convertible Bonds) have signed binding undertakings (Commitment
Deeds)pursuant to which those bondholders have agreed to support
the Restructure Proposal. The Restructure Proposal proposes that
the total US$362M of Existing Convertible Bonds will be exchanged
into:

US$115M (approximately 32%) of New Secured Bonds due 2022, with a
7.00% cash coupon;

US$102M (approximately 28%) of New 2024 Convertible Bonds, with a
zero coupon and conversion price of US$0.0512/share (i.e.,
approximately A$0.07/share);

US$145M (approximately 40%) of new Paladin Ordinary Shares to be
issued at A$0.05/share (see New Bondholder Share Issue below);
and

Any accrued unpaid interest on the Existing Convertible Bonds
outstanding at completion of the Restructure Proposal to be
exchanged 75%:25% into the New Secured Bonds and the New 2024
Convertible Bonds respectively.

The Restructure Proposal is the result of having had discussions
with a number of key stakeholders over the past few weeks. To
date, the bondholders that have entered into Commitment Deeds to
support the Restructure Proposal own bonds representing 57% of
the 2017 Convertible Bonds and 41% of the 2020 Convertible Bonds.
A number of other bondholders have been briefed on the
Restructure Proposal and are finalising their internal procedures
to execute undertakings as well. In order to implement the
Restructure Proposal, the Company will require the support of
bondholders representing up to 75% of each of the 2017
Convertible Bonds and the 2020 Convertible Bonds. Until
undertakings have been received from the requisite majority of
bondholders and the other conditions have been satisfied (set out
below), the Restructure Proposal remains highly conditional. In
the absence of further progress on the LHM Stake Sale, Paladin
intends to work towards completing the relevant conditions to
closing the Restructure Proposal with the aim of implementing it
in the second quarter of the 2017 calendar year.

Paladin believes the implementation of the Restructure Proposal
will be a positive outcome, which will enable it to address its
obligations in respect of the US$212M outstanding 2017
Convertible Bond whilst at the same time preserving value for
shareholders and positioning them to benefit when uranium prices
recover with a stable and sustainable debt structure.

Regarding the Restructure Proposal CEO, Alex Molyneux said: "In
the absence of the Langer Heinrich stake sale, I'm very happy
that our bondholders are supporting the company with a viable
restructure that preserves long-term value for all stakeholders"
and "Paladin will have a manageable debt load with a longer-term
repayment profile, which means the company is better positioned
to ride out the current poor uranium market conditions and
generate upside for shareholders when uranium prices have
recovered."

Regarding the uranium market CEO, Alex Molyneux said: "The
precipitous fall in uranium prices to 12-year lows in 2016 was
largely exacerbated by a lack of purchasing activity from US
nuclear utilities. However, we might just be seeing a reversal of
that now." He went on to say: "The price of natural gas, a key
competitor in the US, is up 50% from its lows of just over 12-
months ago and its becoming clearer that nuclear will enjoy more
policy support in the US as a clean and strategic energy source"
and "we have seen US buyers return to dip a toe in the market
with a couple of major tenders just prior to Christmas and
uranium spot has finally shown some positive momentum, which we
expect to continue if buyers continue to return to the market."

Benefits of the Restructure Proposal

Key benefits of the Restructure Proposal, if implemented,
include:

Ownership of LHM maintained - Paladin will continue to own 75% of
LHM meaning the Company's exposure to a unique strategic tier one
uranium mine will not be diluted as was proposed by the LHM Stake
Sale.

Exposure to uranium upside maintained - The Company will continue
to be positioned as the 'senior' uranium company with better
leverage to an improved uranium market, albeit with a lower risk
balance sheet to enable equity investors to benefit from such
upside in the event the uranium market takes longer to normalise
than expected.

Substantial reduction in total debt - Paladin's total debt of
US$382M (including US$20M drawn under the LHM Revolving Credit
Facility) will be immediately reduced by US$145M (approximately
38%) to US$237M.

Extension of maturity profile for debt - The New Secured Bonds
will be repayable in 2022 and the New 2024 Convertible Bonds two
years after that compared to the present position where all of
the Company's current debt is due within or before 2020.

Better positioned for growth- As the market improves, the lower
debt position will ensure Paladin is better positioned to
consider consolidation and growth opportunities in the future.

New Secured Bonds

For every US$1,000 in principal of the Existing Convertible
Bonds, bondholders will receive US$318 in New Secured Bonds,
i.e., approximately 32% of the principal of the Existing
Convertible Bonds, for a total outstanding amount of US$115M. In
addition, 75% of the accrued interest on the Existing Convertible
Bonds at completion of the Restructure Proposal will be exchanged
into the New Secured Bonds.

The New Secured Bonds will have a maturity date of approximately
April 2022 and carry a coupon rate of 7.00% per annum payable in
equal half-yearly instalments on 31 May and 30 November of each
year.

The New Secured Bonds will have second-ranking security over
certain assets currently subject to security in favour of Nedbank
Limited or other secured parties (Existing Security); and a
first-ranking security over other assets that are not subject to
the Existing Security or new material assets (Bond Security). The
Bond Security is proposed to rank equally with Electricite de
France (EDF) in respect of amounts owing by Paladin under a Long
Term Supply Contract dated Aug. 8, 2012 (LTSC) and a Prepayment
Agreement dated Aug. 28, 2012. Provision of such Bond Security
and other requirements of the bondholders will be conditional on
EDF's consent to amendments to the LTSC allowing early deliveries
against the prepayment amount paid by EDF in 2012, and security
sharing arrangements with the New Secured Bonds. Paladin will
have the right to redeem any of the New Secured Bonds at any time
at a redemption price equal to the outstanding principal amount
plus an additional early redemption fee calculated as a
percentage of the outstanding principal amount (initially 10% and
reducing by 2% on each anniversary of issuance).

No dividends can be payable to Paladin shareholders until New
Secured Bonds are repaid.

New 2024 Convertible Bonds

For every US$1,000 in principal of the Existing Convertible
Bonds, bondholders will receive US$282 in New 2024 Convertible
Bonds, i.e., approximately 28% of the value, for a total
outstanding amount of US$102M. In addition, 25% of the accrued
interest on the Existing Convertible Bonds at completion of the
Restructure Proposal will be exchanged into the New 2024
Convertibles Bonds.

The New 2024 Convertible Bonds will have a maturity date of
approximately April 2024, with zero coupon and be secured,
however subordinated to Existing Security and the Bond Security
(including EDF's interest in the Bond Security).

The New 2024 Convertible Bonds will initially be convertible into
Ordinary Shares at US$0.0512/share (Conversion Price) (i.e.
approximately A$0.07/share) at the option of bondholders.
However, the Conversion Price will be adjusted downwards if the
price of the New Equity Issue is less than certain thresholds.
Furthermore, if the volume weighted average price (VWAP) of
Paladin shares for the three months prior to 1 January 2020 is
less than US$0.0366/share, then the Conversion Price will be
adjusted to US$0.0366/share.

Paladin will have the right to redeem the New 2024 Convertible
Bonds at any time post the first anniversary of issuance if the
30-day VWAP is at least 130% of the Early Redemption Amount at
the time divided by the Exchange Ratio, where Early Redemption
Amount is calculated based on a 6% compound capitalisation rate
from the date of issuance and the Exchange Ratio is calculated by
dividing US$1,000 by the prevailing Conversion Price.

Bondholder Share Issue

For every US$1,000 in principal of the Existing Convertible
Bonds, bondholders will receive 10,929 Ordinary Shares (i.e. that
amount representing US$400, approximately 40%, of the value at an
issue price of A$0.05/share).

Bondholders will receive additional Ordinary Shares in the event
the New Equity Issue is below certain thresholds.

Restructure Proposal Key Conditions

The Restructure Proposal is subject to a number of conditions
being satisfied, including:

the holders of 2017 Convertible Bonds and 2020 Convertible Bonds
approving the Restructure Proposal by the requisite majorities;

EDF consent to amendments to the LTSC allowing early deliveries
against the prepayment amount paid by EDF in 2012, and security
sharing arrangements with the New Secured Bonds (and to the
extent necessary to the subordinated security on the New 2024
Convertible Bonds);

Paladin continuing to hold 75% of LHM. CNNC Overseas Uranium
Holdings Ltd (COUH) might be entitled to acquire Paladin's
interests in LHM in certain solvency-related scenarios, so that
it is a condition to the Restructure Proposal that this does not
materialise;

holders of Paladin's ordinary shares approving the Restructure
Proposal;

there being no superior proposal;

Paladin raising a minimum of US$75M via the New Equity Issue (see
below);

all necessary regulatory approvals, including Australia's Foreign
Investment Review Board; and

consent of existing secured parties to the grant of subsequent
ranking security in favour of EDF, the New Secured Bonds and the
New 2024 Convertible Bonds.

New Equity Issue

Prior to completion of the Restructure Proposal, Paladin will be
expected to raise a minimum of US$75M via a New Equity Issue. The
Company will consider structure and terms of the New Equity Issue
based on feedback from shareholders and potential new
shareholders. Given the clear benefits of the Restructure
Proposal, Paladin aims to consider a structure that enables
existing shareholders to maximise their participation.

Share Consolidation

The Company has resolved to undertake a 10 for one share
consolidation concurrent with the Restructuring Proposal and
associated transactions. All share prices and per-share metrics
in this announcement are presented on a pre-Share Consolidation
basis and would be adjusted accordingly for the Share
Consolidation.

Status of LHM Stake Sale

As noted in the Company's announcements of 10 November 2016 and 1
December 2016 discussions with COUH regarding the LHM Stake Sale
continue but definitive documents have as yet not been executed.
With the passage of time continuing and COUH still unable to
notify Paladin when it may be in a position to have the requisite
approval to execute the definitive documents, the Company now
believes there is a low likelihood that COUH will consummate the
LHM Stake Sale in a timely manner.

Restructure Proposal Indicative Milestones

The bondholders that have provided their support for the
Restructure Proposal have agreed a standstill on obligations
under the Existing Convertible Bonds until 30 June 2017 to
facilitate completion of the Restructure Proposal. The standstill
can lapse on certain events, for example an investor elects to
terminate the standstill where an insolvency event occurs that
results in there being no reasonable prospect of the successful
completion of the Restructure Proposal. Paladin is scheduled to
make a first presentation of the Restructure Proposal to EDF
shortly.

A timeline of indicative key milestones includes:

January 2017: Receive undertakings from a sufficient majority of
bondholders of the Existing Convertible Bonds by value or
proposing formal bondholder extraordinary general meetings.

March to early-April 2017: Complete conditions.

Late-March 2017 to late-April 2017: Close transaction, issue new
shares and bonds.

As reported in Troubled Company Reporter-Asia Pacific on Dec. 2,
2016, The Motley Fool said Paladin Energy Ltd faces the prospect
of being unable to repay US$212 million due in April 2017 and
being forced into liquidation.  Paladin also needs to raise
working capital as it struggles to generate positive cash flow
with uranium prices trading under US$20 per pound -- the lowest
prices in more than 12 years, related The Motley Fool.  As
Paladin admits, that's a level that no producer in the world can
sustainably break even, and most producers are experiencing
negative cash flows, The Motley Fool added.

                       About Paladin Energy

Headquartered in Subiaco, Australia, Paladin Energy Ltd --
http://www.paladinresources.com.au-- formerly Paladin
Resources, Ltd., operates in the resource industry, with a
principal business of evaluation and development of uranium
projects in Africa and Australia.


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C H I N A
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CHINA SOUTH: Moody's Withdraws B2 CFR, Outlook Negative
-------------------------------------------------------
Moody's Investors Service has withdrawn China South City Holdings
Limited (China South City)'s B2 corporate family rating with a
negative outlook.

RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.

Listed on the Hong Kong Stock Exchange, China South City develops
and operates large-scale integrated logistics and trade centers
in China. These developments incorporate ancillary residential
properties and commercial facilities.

China South City provides value-added services to the occupants
of its trade centers and facilities, including rental, e-
commerce, logistics, warehousing services, outlets and property
management.

At September 30, 2016, the company's attributable gross floor
area totaled 36.2 million square meters in eight major cities:
Shenzhen, Nanchang, Nanning, Xi'an, Harbin, Zhengzhou, Hefei and
Chongqing.


COUNTRY GARDEN: Fitch Retains BB+ Rating on Management Changes
--------------------------------------------------------------
Fitch Ratings believes the changes in Country Garden Holdings Co.
Ltd's (Country Garden, BB+/Stable) management and board will not
impact the rating on the China-based homebuilder.

Fitch believes the personnel changes that will come into effect
from April 1, 2017, will not materially affect Country Garden's
established management and operation teams, which have
demonstrated a solid track record of operational efficiency and
financial discipline over the past decade.  Country Garden has
maintained its leverage at between 30% and 40% even as its
contracted sales grew to CNY308 bil. in 2016 (or CNY234 bil. in
attributable sales) from CNY47 bil. in 2012.

Fitch expects Country Garden to continue to exercise reasonable
control of its financial profile.  It has demonstrated improving
funding flexibility and falling interest costs, with average
borrowing cost decreasing to 6.2% in 2015 from 7.6% in 2014.

The company on Jan. 4, 2017, said Ms Wu Bijun, who is the general
manager of the company's finance centre and is responsible for
finance in the China operations, has been appointed as chief
financial officer and chairman of the finance committee.  She
replaces Mr. Wu Jianbin who is also an executive director, in
these two roles.  The company also announced the resignation of
two other executive directors and an independent director.


GEELY AUTOMOBILE: Pos. Profit Expectation Backs Moody's Ba2 CFR
---------------------------------------------------------------
Moody's Investors Service says that Geely Automobile Holdings
Limited's positive alert for its consolidated net profit in 2016
supports its Ba2 corporate family and senior unsecured bond
ratings.

The ratings outlook remains positive.

"Geely's announcement of a positive profit alert for its results
for 2016 -- compared with 2015 -- is consistent with Moody's
expectations," says Gerwin Ho, a Moody's Vice President and
Senior Analyst.

On January 6, 2017, Geely announced that it expects its 2016
consolidated net profit to rise over 100% year-on-year from
RMB2.3 billion in 2015.

The expected profit will be mainly attributable to the
significant increase in sales revenue, a result stemming from the
large rise in overall sales volumes and the improvement in the
company's product mix during the year.

Geely's sales grew 50% year-on-year to 765,851 units in 2016.
Meanwhile, its domestic sales grew 54% to 744,142 units,
offsetting a 16% year-on-year decline in export sales to 21,709
units.

Its sales growth in 2016 reflected (1) a positive market response
to its new models and robust sales of existing models; and (2) an
improvement in its product mix, reflecting the introduction of
higher-end models in Geely's line-up and greater consumer
acceptance of such products.

Geely has also benefitted from stronger year-on-year sales growth
in auto market units since October 2015 because of China's cut in
the vehicle-purchase tax for passenger vehicles with engines
sized 1.6L and below to 5% from 10% effective during the period
spanning October 2015 to end-2016. The tax break will be extended
to end-2017 but the tax rate will rise to 7.5% in 2017 from 5% in
2016.

The positive ratings outlook reflects our expectation that
Geely's profitability and credit profile will continue to improve
over the next 12-18 months, with meaningful growth in its overall
market share and product breadth, and its expected display of
strength through industry cycles.

Moody's expects Geely's unit sales to grow about 20% year-on-year
in 2017, outpacing our expectation of a 2.7% year-on-year rise
for the industry's auto unit sales as a whole in China. As such,
Geely's share of China's auto market should expand in 2017.

Geely will launch new models, branded LYNK & CO, based on the
Compact Modular Architecture (CMA) platform, starting in 2017.
The CMA is a new passenger vehicle platform developed by Volvo
Car AB (Ba2 stable) and China-Euro Vehicle Technology AB (CEVT,
unrated), which is a Sweden-based subsidiary of Geely's parent,
Zhejiang Geely Holding Group Company Limited (unrated).

The introduction of CMA-based models will likely expand Geely's
product line-up and help the company achieve higher price points,
while enhancing its product breadth and strength in the medium
term. As a result, it will be able to expand its addressable
market.

Geely's low debt leverage -- as measured by debt/EBITDA --
supports its Ba2 ratings. Moody's says that debt leverage will
remain at about 0.4x over the next 12-18 months, which is strong
for its Ba ratings category.

Geely Automobile Holdings Limited is one of the largest privately
owned, local brand automakers in China. Geely develops,
manufactures and sells passenger vehicles sold in China and
globally. Its chairman and founder, Mr. Li Shufu, and his family,
held a 42.97% stake at end-June 2016. The company is incorporated
in the Cayman Islands and listed on the Hong Kong Stock Exchange.


HENGDELI HOLDINGS: Fitch Puts 'B+' IDR on Rating Watch Negative
---------------------------------------------------------------
Fitch Ratings has placed China-based watch retailer Hengdeli
Holdings Limited's Long-Term Issuer Default Rating (IDR) of 'B+'
on Rating Watch Negative (RWN).  The senior unsecured rating of
'B+' with Recovery Rating of 'RR4' has also been placed on RWN.

The rating actions follow Hengdeli's proposal to dispose its core
operations to its founder and chairman.  The company plans to use
most of the proceeds from the disposal to repay nearly all of the
remaining businesses' debt.  The operations that remain should
the disposal be completed will not warrant a 'B+' rating.

                      KEY RATING DRIVERS

Substantial Disposal Proposed: Hengdeli on Dec. 30, 2016,
announced it has agreed to sell wholly owned subsidiary Xinyu
Group and its 75.54%-owned equity interest in Harvest Max to the
company's founder and chairman Mr. Zhang Yuping.  Xinyu Group
represents the company's retail and wholesale operations in China
and Harvest Max is mainly engaged in selling jewellery and low-
to mid-end watches in Hong Kong.  The two subsidiaries accounted
for 80% of Hengdeli's revenue in 2015.

Bonds to be Redeemed: Hengdeli expects to receive a net cash
inflow of CNY5.8 bil. should the sale be completed.  The company
plans to use approximately 55% of the proceeds to repay the
CNY3.2 bil. of outstanding debt of the remaining businesses, and
the remainder for special dividend payouts, general working
capital and business development of the retail business in Hong
Kong and Taiwan, and potential expansion in overseas markets.
The company is expecting to be almost debt-free after the
disposal is completed.

Scale of Operations Diminished: If the proposed transaction is
completed, Hengdeli will be left with the Hong Kong and Taiwan
watch retail business and the China watch accessories
manufacturing operation, together accounted for just 20% of 2015
revenue.  The disposal will greatly reduce Hengdeli's interest
expense, but the operating scale will be much smaller.  In
addition, Hengdeli's market share in Swiss watch retailing in
Hong Kong and Taiwan is smaller than that in China (over 35%).

                          KEY ASSUMPTIONS

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

   -- Lower gross margins for different business segments
      in 2016-2019 compared with 2015 levels
   -- EBITDA margin of 5.3%-6.7% in 2016-2019
    -- Annual capex plus acquisition budget of about CNY150 mil.

                       RATING SENSITIVITIES

Fitch is likely to take negative rating action if the proposed
disposal of Xinyu Group and Harvest Max receives approval from
shareholders at an extraordinary general meeting and is
completed. If the disposal is not completed, Fitch will review
the rating after determining management's intentions for the
company's holding structure.

                             LIQUIDITY

Adequate Liquidity: Hengdeli maintains sufficient cash of CNY2.1
bil. and unutilized bank facilities of over CNY4 bil. to cover
its current borrowings of CNY2.2 bil. at end-June 2016.



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


FWD LIMITED: Moody's Assigns Ba1(hyb) to Sub. Capital Securities
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1(hyb) rating to FWD
Limited's subordinated perpetual capital securities.

Moody's currently carries a Baa2 issuer rating on FWD Limited
with a negative outlook, reflecting Moody's view that the
benefits to holding company creditors gained from diversification
from FWD General Insurance Company Limited (FWD GI, unrated), the
non-life insurance subsidiary of FWD Limited, through
contributions of dividends, have become less evident, relative to
the company's financial obligations.

RATINGS RATIONALE

The proposed subordinated perpetual hybrid securities will
constitute direct, unconditional, unsecured and subordinated
obligations of the issuer, ranking pari passu without any
preference or priority of payment among themselves and with any
preference shares of FWD Limited. The Ba1(hyb) rating is
positioned two notches below FWD Limited's issuer rating, to
reflect the fact that these securities will rank behind senior
and subordinated debt obligations, and is in line with our
standard notching guidance for preference shares. The rating also
reflects (i) the optional coupon deferral mechanisms and (ii) the
cumulative nature of deferred coupons, in case of deferral.

Based on FWD Limited's audited 2015 financial results, the
company's pro forma adjusted financial leverage -- including
operating lease debt equivalents and Moody's standard operating
lease adjustments -- will increase to around 25% from 22% prior
to the bond issuance. This is still within our current rating
expectations.

RATING DRIVERS

This issuance's rating is linked to the issuer rating of FWD
Limited. Given the negative rating outlook, upward rating
pressure on FWD Limited is unlikely. The rating outlook could
return to stable if: (1) the diversification benefit provided by
FWD GI becomes more evident, with FWD GI's remitted dividends
above 40% of the Group's total interest expense; and/or (2) its
financial leverage declines as a result of shareholder capital
injections.

FWD Limited's ratings could be downgraded if (1) the
diversification benefit provided by FWD GI weakens, with FWD GI's
remitted dividends falling below 40% of the Group's total
interest expense; (2) Mr. Richard Li significantly reduces his
ownership stake; (3) its earnings coverage remains below 2x; (4)
its financial leverage rises consistently above 30%; or (5) its
liquidity position further deteriorates, as a result of, for
example, significant capital injections into FWD Life Insurance
Company (Bermuda) Limited (FWD Life HK, insurance financial
strength A3 stable) or other subsidiaries.

FWD Limited's ratings could also be downgraded if FWD Life HK's
rating is downgraded.

RATING METHODOLOGY

The principal methodology used in this rating was Global Life
Insurers published in April 2016.

FWD Limited, is a holding company that owns FWD Life HK, which is
the ninth largest life insurer by premium income in Hong Kong,
offering term life, whole life, endowment, universal life,
accident and health insurance products. FWD Limited also owns
other subsidiaries, such as a life insurance operations in Macau,
as well as general insurance, pension and financial planning
businesses. FWD Limited held total assets and shareholders'
equity of USD9,620 million and USD1,883 million, respectively, at
end-2015, on an IFRS basis.



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


ABHINAV INDUSTRIES: ICRA Assigns 'B' Rating to INR.70cr Loan
------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR0.70-
crore term loan, INR0.50-crore cash-credit limit and INR0.30-
crore unallocated limits of Abhinav Industries. ICRA has also
assigned the short-term rating of [ICRA]A4 to the INR6.50-crore
non-fund based limits of AI. The ratings of the above unallocated
limits of INR0.30 crore have also been rated at [ICRA]A4 on the
short-term scale.

                            Amount
   Facilities            (INR crore)    Ratings
   ----------            -----------    -------
   Fund Based-Term Loan      0.70       [ICRA]B assigned
   Fund Based-Cash Credit    0.50       [ICRA]B assigned
   Non-fund Based-Bank
   Guarantee                 6.50       [ICRA]A4 assigned
   Unallocated Limits        0.30       [ICRA]B/[ICRA]A4 assigned

The assigned ratings take into account the entity's weak
financial risk profile characterised by leveraged capital
structure and modest coverage indicators as well as low entry
barrier in an intense competitive and highly fragmented rice-
milling industry. The ratings also factor in the risks inherent
in an agro-based business like rice milling, including the
vulnerability towards the changes in Government policies and raw
material supply risks as the level of harvest and the quality of
paddy depend on agro-climatic conditions. The ratings also
reflect the risk associated with the legal status of AI as a
proprietorship firm, including the risk of withdrawal of capital
by the proprietor.

The ratings, however, derive comfort from the proprietor's
experience in the rice-milling business and the healthy growth in
revenue in FY2016, supported primarily by increase in custom
milling and labour contract business.

In ICRA's opinion, the ability of the company to scale up its
operations while managing its working capital requirements
efficiently would be key rating sensitivities, going forward.

Abhinav Industries (AI), incorporated in 2005, is involved in
custom milling of paddy for Chhattisgarh Government agency from
its manufacturing facility at Balodabazar in the district of
Bhatapara, Chhattisgarh. The current installed capacity of the
plant is 45,000 metric tonne per annum (MTPA) of paddy for
milling rice. In addition to its own manufacturing, the firm is
also involved in labour-contract work. The firm is promoted by
Mr. Ashwini Kumar Sharma.

Recent Results
During FY2016, AI reported a profit after tax (PAT) of INR0.39
crore on an operating income (OI) of INR8.57 crore compared to a
PAT of INR0.13 crore on an OI of INR3.80 crore during FY2016.


AJAY TUBE: CARE Lowers Rating on INR9.50cr LT Loan to 'D'
---------------------------------------------------------
CARE revises and suspends the rating assigned to the bank
facilities of Ajay Tube Industries Private Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     9.50       CARE D Revised from
                                            CARE BB

Rating Rationale

Revision of the ratings assigned to the bank facilities of Ajay
Tube Industries Private Limited takes into account continued
stretch in the liquidity position of the company due to subdued
steel industry scenario. The stretch in liquidity has resulted in
frequent overdrawals of CC facility and non-payment of interest.

In the absence of the information required by CARE for monitoring
of the ratings, CARE is unable to assess and provide analytical
opinion on factual position of the company and consequent impact
on the credit profile. Consequently, CARE has suspended, with
immediate effect, the ratings assigned to the bank facilities of
Ajay Tube Industries Private Limited.

Ajay Tube Industries Pvt Ltd was promoted in 1988 by Mr. Bhajan
Lal Sharma and his brother Mr. Kanhaiya Lal Sharma of Kolkata. It
is in the business of trading in various kinds of value added
steel products such as M.S. Black (ERW) pipes, MS strips, M.S.
angles, M.S. Rounds, black steel pipes in Eastern India.  ATIPL
is a family managed business with the management being vested
with a two member Board of Directors, both from
the promoter's family.


ALLEPPEY COMPANY: CARE Hikes Rating on INR20.70cr Loan to BB-
-------------------------------------------------------------
CARE revises/reaffirms rating assigned to the bank facilities of
The Alleppey Company Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term/Short term          20.70      CARE BB-;Stable
   Bank Facilities                          Revised from
                                            CARE B+/A4

Rating Rationale

The revision in the ratings assigned to the bank facilities of
The Alleppey Company Limited (ACL) takes into account steady
growth in total operating income, increase in PBILDT margin,
achievement of net profit and improvement in capital structure
and debt coverage indicators in FY16 (refers to the period April
01 to March 31). The ratings also derive comfort from the long
experience of the promoters in the manufacturing of coir
products, established market position derived from long track
record of the company and the long association with renowned
customers. However, the ratings continue to be constrained by the
modest scale of operations, working capital intensive nature of
operations due to elongated
operating cycle, exposure to foreign currency risk and limited
pricing flexibility on account of competition from the
unorganized sector.

Going forward, the company's ability to increase the scale of
operation and improve profitability in the intensely competitive
industry, and manage its working capital borrowings effectively,
would be the key rating sensitivities.

ACL is the flagship company of the Karan Group (KG) which has
interests in the manufacturing of coir mats, mattings, rugs,
sisal, jute and sea grass. ACL was established in 1927 as coir
yarn traders. The installed capacity of the company is 15 lakh
square meters as of November 30, 2016. The other two companies in
the group are Kerala Balers Private Limited (rated 'CARE BB-/CARE
A4' reviewed on December 2016) and William Goodacre & Sons India
Limited which are also in the same line of business.

Mr Revi Karunakaran (S/o Mr. Keerthi Karunakaran), established
the first mechanical coir-based production unit in 1965.

In 1991, KG pioneered the making of PVC coir mats in India. KG
has its headquarters in Alleppey (Kerala) with 8 manufacturing
units (owned) and 6 ware housing facilities (rented) spread
across the states of Tamil Nadu and Kerala.

ACL has an integrated factory for weaving of natural fibre floor
coverings. The raw material, coir is purchased from dealers, who
in turn procure it from local farmers. The finished products are
sold predominantly in export market such as North America and
Western Europe.

ACL was promoted by Mr. Revi Karunakaran father in 1935, Mr. Revi
Karunakaran established.

As per the audited results, ACL has achieved a PAT of INR2.72
crore on a total operating income of INR64.36 crore in FY16
compared with the net loss of INR0.09 crore on a total operating
income of INR52.44 crore in FY15.In H1FY17 ACL has achieved
revenue of INR45 crore and PBT of INR2.5 crore.


ANOKHI PAHEL: CARE Reaffirms B+ Rating on INR15cr LT Loan
---------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Anokhi Pahel Enterprise.

                               Amount
   Facilities               (INR crore)    Ratings
   ----------               -----------    -------
   Long-term Bank Facilities    15.00      CARE B+; Stable
                                           Reaffirmed

Rating Rationale

The rating assigned to the bank facilities of Anokhi Pahel
Enterprise (APE) continues to remain constrained on account of
low advances received against booked units and risk associated
with timely receipt of remaining advances. The rating also
factors in the inherent risk associated with the cyclical and
fragmented real estate industry coupled with partnership
nature of its business operations.

The rating, however, takes comfort from the vast experience of
the partners in the real estate development business along with
moderate project implementation risk and high booking numbers.

The ability of APE to complete its ongoing project within
envisaged timeline along with timely receipt of the booking
advances and sale of balance units at envisaged prices are the
key rating sensitivities.

Anokhi Pahel Enterprise (Anokhi) is a partnership firm formed in
2014 by 6 partners viz Mr. Babubhai N Avaiya, Mr. Dipakkumar
Desai, Mr. Hiren Vakil, Mr. Naresh Dobariya, Mr. Dharmesh Patel,
Mr. Batukbhai. Anokhi is involved in construction of residential
and commercial complexes in Surat region.

Vrundavan Heights is a high-rise residential plus commercial
building. There will be 5 buildings in the project comprising
of 1 building of 3 BHK which will be a 10 Storey building and 4
buildings of 2 BHK each of 11 Storeys. There will be total 210
flats out of which 168 flats will be of 2 BHK and 36 flats of 3
BHK and remaining are shops and halls (office space) in the
project.

The 2 BHK flats offered are of size around 1,200 sq ft while 3
BHK have size of around 1437 sq ft. The shops have size of 400 sq
ft while halls have size of 1,746 sq ft.

The project is in advance stage of completion and APE has
received all clearances for this project. The entire project with
Residential flats and shops at Surat are ready and only 20% of
construction cost is to be incurred which is expected to be
completed by March 2017.


CORAL TELECOM: CARE Assigns B+ Rating to INR7.75cr LT Loan
----------------------------------------------------------
CARE assigns 'CARE B+/CARE A4' rating to the bank facilities of
Coral Telecom Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     7.75       CARE B+; Stable
                                            Assigned

   Short-term Bank Facilities    7.00       CARE A4 Assigned

Rating Rationale

The ratings assigned to Coral Telecom Limited (CTL) are primarily
constrained by small and fluctuating scale of operations, thin
profitability margins, leveraged capital structure and weak
coverage indicators. The ratings are further constrained by
working capital intensive nature of operations and intense
competition in the industry. The ratings, however, draw comfort
from experienced management.

Going forward, the ability of the company to increase its scale
of operations while improving its profitability margins and
capital structure shall be the key rating sensitivity.

CTL was incorporated in 1996. The company is currently being
managed by Mr. Rajesh Tuli, Mr. Vinod Kumar Pabreja, Mr. Raj
Kumar Sethi and Ms Poonam Tuli. CTL is primarily engaged in
designing and manufacturing of telecom equipment, development &
re-engineering of Internet Protocol (IP), Global System for
Mobile communication (GSM), and data switching products, etc. CTL
also develops associated embedded and application software
required for these communication networks. CTL has implemented
telecom projects both in the private and government sectors. The
key materials consumed are of varied nature such as resistors,
capacitors; printed circuit board, integrated circuit, etc, and
the same are procured domestically.

Maskat Coral Private Limited, Usha Informatics Private Limited
and VNK Merchandise Private Limited are group associates and
engaged in manufacturer of broadband wireless equipment,
telecommunication equipment trading company and rental income,
respectively.

In FY16 (refers to the period April 1 to March 31), CTL has
achieved a total operating income (TOI) of INR23.92 crore with
PAT of INR0.41 crore as against total operating income (TOI) of
INR23.08 crore with PAT of INR4.54 crore in FY15.


GBJ HOTELS: ICRA Suspends B+ Rating on INR108cr Term Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B+ assigned to
the INR108.00 Crore term loan facilities of GBJ Hotels Private
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the Company.

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


H.B. RAVI: CARE Revises Rating on INR6cr LT Loan to BB
------------------------------------------------------
CARE revises/reaffirmed the ratings assigned to the bank
facilities of H.B. Ravi Kumar.
                               Amount
   Facilities               (INR crore)    Ratings
   ----------               -----------    -------
   Long-term Bank Facilities    6.00      CARE BB; Stable Revised
                                          from CARE B+

   Short-term Bank Facilities   6.00       CARE A4 Reaffirmed

Rating Rationale

The revision in the ratings assigned to the bank facilities of
H.B. Ravi Kumar (HBR) take into account growth in total operating
income, satisfactory profit margin along with comfortable capital
structure, debt coverage indicators and working capital cycle in
FY16 (refers to period April 01 to March 31) and medium term
revenue visibility in the order book position. The ratings
continue to take into account reasonable track record and
experience of the proprietor for more than a decade in the civil
construction industry and long term relationship with clients.

The ratings are, however, constrained by the small scale of
operations, customer and geographical concentration risk,
presence in a highly fragmented and competitive industry,
volatility in input prices and absence of price escalation clause
and constitution of the entity as a proprietorship firm.

The ability of the firm to increase its scale of operations and
profitability margins, execute the projects in a timely manner
along with efficient management of working capital requirements
are the key rating sensitivities.

Mysore based H. B. Ravi Kumar (HBR) was established in 1996 as a
Proprietorship firm, promoted by Mr. H B Ravi Kumar. HBR is
registered as a Class I contractor with Public Works Department
(PWD) of Government of Karnataka. The firm gets all its contracts
through open bidding process. The firm is engaged in civil
construction works like laying off roads including state highways
and construction of buildings. HBR is primarily executing the
contract works for government departments.

During FY16 [refers to the period April 1 to March 31], HBR has
reported a total operating income of INR41.74 crore (INR32.43
crore in FY15) and a PAT of INR1.44 crore (INR1.70 crore in
FY15). Furthermore, the firm has achieved total operating income
of INR30 crore during 8MFY17 (Provisional).


INDIA: Weak Asset Quality Pressure Banks' Prospects, Moody's Says
-----------------------------------------------------------------
Moody's Investors Service and its Indian affiliate, ICRA Limited,
see subdued prospects for India's banks, with both identifying
asset deterioration as a key challenge over the medium term.

"Asset quality will remain a negative driver of the credit
profiles of most rated Indian banks and the stock of impaired
loans. Non-performing loans (NPLs) and standard restructured
loans will still rise during the horizon of our outlook," says
Alka Anbarasu, a Moody's Vice President and Senior Analyst.

According to Moody's, such pressure on asset quality largely
reflects the system's legacy problems, as relating to the strong
credit growth seen in 2009-2012, when the investment plans of
Indian corporates rose significantly.

Nevertheless, aside from these legacy issues, the underlying
asset trend for Indian banks will be stable because of a
generally supportive operating environment. While corporate
balance sheets stay weak, a further deterioration in key credit
metrics such as debt/equity and interest coverage ratios has been
arrested.

"We expect the pace of deterioration in asset quality over the
next 12-18 months should be lower than what was seen over the
last five years, and especially compared to FY2016, even as we
consider those remaining problem loans which have not been
recognized as such in several large accounts," says Anbarasu.

In this context, Moody's also considers the Reserve Bank of
India's (RBI) asset quality review (AQR) in 2015 as a
particularly important catalyst in pushing banks to recognize
some large accounts as being impaired. As a result, Moody's now
estimates that the "true" level of impaired loans for Indian
banks to be around 1-1.5 percentage points higher than the latest
reported numbers.

Given the magnitude of stressed assets in the system, Moody's
expects the banks to increase their focus on resolving some of
the large problem accounts.

"In this regard, we expect an increased pace of debt
restructuring under the various schemes offered by the RBI,
including the scheme for the sustainable structuring of stressed
assets (S4A), strategic debt restructuring (SDR) and the 5:25
scheme," says Anbarasu. "Nevertheless, weak reserving levels and
continued pressure on profitability will limit the ability of the
banks to proactively resolve problem assets under these schemes."

From ICRA's viewpoint, a muted level of credit off-take -- on the
back of weak demand, increasing competition and greater
disintermediation -- will continue to exert downward pressure on
lending rates.

"Such a development will be partly offset by the fall in the cost
of funds, but stubbornly high operating expense levels and
elevated credit costs will continue to dent profitability
matrices for the banks," says Karthik Srinivasan, an ICRA Senior
Vice President.

"And while bank profitability is not expected to be as weak as
the levels seen in FY2016, the weakness in asset quality will
continue to drag on profitability indicators, with return on
equity remaining in the single digits for FY2017 and FY2018,"
says Srinivasan.

ICRA further notes that, as of September 30, 2016, while all the
public sector banks had met the minimum common equity tier 1
(CET 1) requirement of 6.75% applicable by March 2017, six also
reported Tier 1 capital of less than 8.25%, the regulatory
minimum. Furthermore, the overall capitalization levels of most
of the public sector banks remains moderate to weak, given that
they need to attain the regulatory minimum Tier 1 requirement of
9.5% by March 2019.

The Indian government's current plan of infusing INR450 billion
during FY2017-FY2019 -- of which INR164.14 billion have been
already infused in the current year -- is below ICRA's estimates
of capital requirements of INR1,500-1,800 billion until FY2017-
FY2019.

According to ICRA, of this total of INR1,500-1,800 billion, the
banks can raise around INR800-950 billion by issuing AT1
instruments, with public sector banks having issued AT1
aggregating to around INR200 billion in the current year.

ICRA believes that the continued level of investor appetite will
remain the key factor determining future AT1 issuances, as the
risk of servicing the coupon payments on these bonds has
increased considerably, especially for the weaker public sector
banks. This is because substantial losses in this sector in the
last few quarters have significantly depleted revenue reserves.

In this context, the government may need to materially increase
the quantum of capital infusions into the public sector banks, in
view of the fact that investor appetite for common equity remains
subdued, as evidenced by weak share price multiples.


JAIPRAKASH ASSOCIATES: CARE Reaffirms 'D' Long Term Loan Rating
---------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities and
instruments of Jaiprakash Associates Ltd.
                                 Amount
   Facilities                 (INR crore)    Ratings
   ----------                 -----------    -------
   Long-term Bank Facilities   21,786.30     CARE D Reaffirmed

   Short-term Bank Facilities   2,776.31     CARE D Reaffirmed

   Long-term/Short-term Bank    5,387.97     CARE D/CARE D
   Facilities                                Reaffirmed

   Long-term Non-Convertible
   Debentures (aggregate) IV,
   VIII, X, XI, XII, XIII       2,713.33     CARE D Reaffirmed


Rating Rationale

The ratings of the bank facilities and instruments of Jaiprakash
Associates Ltd (JAL) continue to factor in delays in debt
servicing by the company due to its weak liquidity.

JAL is the flagship company of the Jaypee group and is engaged in
engineering and construction, cement, real estate and hospitality
businesses. JAL is one of the leading cement manufacturers with
an installed capacity of ~28 million tonnes per annum (mtpa) and
under implementation capacity of ~5 mtpa on a consolidated basis
as on March 31, 2016. JAL is also engaged in the construction
business in the field of civil engineering, design and
construction of hydro-power, river valley projects. JAL is also
undertaking power generation, power transmission, real estate,
road BOT, healthcare and fertilizer businesses through its
various subsidiaries/SPVs. On account of its weak liquidity, JAL
has entered into asset sale deal with Ultratech Cement Ltd for
sale of part of its cement business comprising of operating
cement plants of 12.2 mtpa capacity and also a 5 MTPA plant owned
by its subsidiary Jaypee Cement Corporation Ltd (JCCL, rated
'CARE D') for a total enterprise value of INR16,189 crore.

During FY16 (standalone; refers to the period April 1 to
March 31), the company's net loss stood at INR3,239.9 crore on
total operating income of INR8,852.06 crore as against net loss
of INR1,278.74 crore on total operating income of INR11,175.46
crore in FY15. During H1FY17 (UA), the company reported net loss
of INR1,386.15 crore on total operating income of INR3,236.5
crore. Decline in the operating income, decline in PBILDT margin,
writing off of expenses incurred on Oil & Gas exploration (in
FY17) and high interest cost were the key reasons for weak
financial performance.


JALA SHAKTI: ICRA Reaffirms 'D' Rating on INR24.22cr LT Loan
------------------------------------------------------------
ICRA has reaffirmed its long term rating at [ICRA]D on the
INR24.22 crore fund based bank facilities and INR0.68 crore
unallocated limits of Jala Shakti Ltd. ICRA has also reaffirmed
its short term rating at [ICRA]D on the INR1.60 crore non fund
based bank facilities of JSL.

                         Amount
   Facilities          (INR crore)      Ratings
   ----------          -----------      -------
   Long- Term Fund-
   Based Limits             24.22       [ICRA]D; reaffirmed

   Long-Term
   Unallocated Limits        0.68       [ICRA]D; reaffirmed

   Short-Term Non
   Fund-Based Limits         1.60       [ICRA]D; reaffirmed

ICRA's rating action continues to factor in the delays in debt
repayments on time. On the positive side, the company has a long
term PPA (Power Purchase Agreement) contract for sale of entire
power generated to Himachal Pradesh State Electricity Board
(HPSEBL), the regulatory risk is consequently lower. The demand
risk too is limited due to significant energy deficit in northern
India.

Going forward, the ability of the company to meet the designed
performance parameters and regularizing of debt servicing will be
the key rating drivers.

JSL, incorporated in 1996, has setup a 5 MW run of the river
hydro electric project (Dunali HEP) in Chamba, Himachal Pradesh.
The project has started commercial operations in May 2013 and has
been set up at a cost of INR62.5 crore.


JAMUJARA LUBRICANTS: Ind-Ra Withdraws B- Long Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Jamujara
Lubricants Private Limited's (JLPL) 'IND B-' Long term Issuer
Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for JLPL.

JLPL's ratings:

   -- Long-Term Issuer Rating: 'IND B-'; rating withdrawn
   -- INR25 million fund-based limits: 'IND B-'; rating withdrawn
   -- INR28.5 million term loan: 'IND B-'; rating withdrawn


JAYPEE INFRATECH: CARE Reaffirms 'D' Rating on INR6,550cr LT Loan
-----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities and
NCDS of Jaypee Infratech Ltd.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     6,550      CARE D Reaffirmed
   Long-term Non-Convertible
   Debenture - IV                  211.95   CARE D Reaffirmed

Rating Rationale

The ratings of the bank facilities and instruments of Jaypee
Infratech Ltd (JIL) continue to factor in delays in debt
servicing by the company due to its weak liquidity.

JIL is a special purpose vehicle promoted by Jaiprakash
Associates Ltd (JAL, rated 'CARE D'), holding 71.64% stake as on
September 30, 2016) to develop and operate a 165-km six-lane
(extendable to eight lanes) access-controlled toll expressway
between Noida and Agra in Uttar Pradesh (E'way project). The
E'way project achieved Commercial Operations Date (COD) and
commenced toll collection in August 2012, post receipt of
substantial completion certificate.

Also, JIL has been granted rights by Yamuna Expressway
Development Authority (YEA), a state government undertaking, for
the development of approximately 6,175 acres of land (443.30 mn
sq ft of real estate) along expressway in five different parcels
in Uttar Pradesh for residential, commercial, amusement,
industrial and institutional development. The land for real
estate development is provided on 90-year lease.

Slowdown in real estate segment and weak financial performance
resulted in weak liquidity position and delays in debt servicing
by the company.

During FY16 (refers to the period April 1 to March 31), JIL
reported net loss of INR242.93 crore on total operating income
of INR2,800.61 crore as against PAT of INR355.00 crore on total
operating income of INR3,251.83 crore in FY15. During H1FY17
(unaudited), the company reported net loss of INR167.44 crore on
total operating income of INR1,285.36 crore.


KABRA PLASTICS: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Kabra Plastics
Limited's (KPL) 'IND BB+' Long-Term Issuer Rating.  The Outlook
was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for KPL.

KPL's ratings are:

   -- Long-Term Issuer Rating: 'IND BB+'/Stable; rating withdrawn
   -- INR275 million fund-based limits: 'IND BB+'/Stable; rating
      withdrawn
   -- INR495 million long-term loans: 'IND BB+'/Stable; rating
      withdrawn


KAYBEE ENTERPRISES: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn M/s KayBee
Enterprises' (KE) 'IND B+' Long-Term Issuer Rating.  The Outlook
was Stable.  The agency has also withdrawn the 'IND B+' rating on
KE's INR54 million fund-based limits.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for KE.


KERALA BALERS: CARE Upgrades Rating on INR12cr Bank Loan to BB-
---------------------------------------------------------------
CARE revises/reaffirms rating assigned to the bank facilities of
Kerala Balers Private Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long/Short term term Bank      12        CARE BB-;Stable
   Facilities                               Revised from
                                            CARE B+/A4


   Short term Bank Facilities     12        CARE A4 Reaffirmed

Rating Rationale

The revision in the ratings assigned to the bank facilities of
Kerala Balers Private Limited (KBPL) takes into account steady
growth in the total operating income, increase in PBILDT margin,
achievement of net profit and improvement in capital structure
and debt coverage indicators in FY16 (refers to the period April
01 to March 31). However, the ratings continue to be constrained
by the modest scale of operations, working capital intensive
nature of operations due to elongated operating cycle, exposure
to foreign currency risk, and limited pricing flexibility on
account of competition from the unorganized sector.

Going forward, the company's ability to increase the scale of
operation and improve profitability in the intensely competitive
industry, and manage its working capital borrowings effectively,
would be the key rating sensitivities.

KBPL is the flagship company of the Karan Group which has
interests in manufacture of coir mats, mattings, rugs, sisal,
jute and sea grass. Karan group (KG) was established in late
1800s by Mr. Keerthi Karunakaran and was initially engaged in
coir yarn spinning. KBPL was established in 1948 with the
objective of spinning coir yarn. The other two companies in the
group are The Alleppey Company Limited (rated 'CARE BB-/CARE A4'
reviewed on December 2016) and William Goodacre & Sons India Ltd
are also in the same line of business.

Mr Revi Karunakaran (S/o Mr. Keerthi Karunakaran), established
the first mechanical coir-based production unit in 1965. In 1991,
KG pioneered the making of PVC coir mats in India. KG has its
headquarters in Alleppey (Kerala) with 8 manufacturing units
(owned) and 6 ware housing facilities (rented) spread across the
states of Tamil Nadu and Kerala.

ACL has an integrated factory for weaving of natural fibre floor
coverings. The raw material, coir, is purchased from dealers, who
in turn procure it from local farmers. The finished products are
sold predominantly in export market such as North America and
Western Europe.

As per audited results, KBPL has achieved a PAT of INR2.93 crore
on a total operating income of INR64.70 crore in FY16 compared
with the net loss of INR0.42 crore on a total operating income of
INR60.09 crore in FY15. In H1FY17, KBPL has achieved revenue of
INR34 crore and PBT of INR1.5 crore.


KOMARLA HATCHERIES: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Komarla
Hatcheries' (KH) 'IND B+' Long-Term Issuer Rating.  The Outlook
was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for KH.

KH's ratings are:

   -- Long-Term Issuer Rating: 'IND B+'/Stable; rating withdrawn
   -- INR75 million fund-based working capital limits:
      'IND B+'/Stable; rating withdrawn
   -- Proposed INR20 million fund-based working capital limits:
      'Provisional IND B+'/Stable; rating withdrawn
   -- INR96.6 million term loans: 'IND B+'/Stable; rating
      withdrawn


KRISHNA ARJUNA: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Krishna Arjuna
Enterprises' (KAE) 'IND B+' Long-Term Issuer Rating.  The Outlook
was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for KAE.

KAE's ratings are:

   -- Long-Term Issuer Rating: 'IND B+'/Stable; rating withdrawn
   -- INR30 million fund-based limits: 'IND B+'/Stable; rating
      withdrawn
   -- INR40 million non-fund-based limits: 'IND A4'; rating
      withdrawn


KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms D Rating on INR200MM Loan
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Kumarapalayam
Tollways Ltd's (KTL) INR2,836 million senior project bank loans
and INR200 million subordinate loans at Long-term 'ND D'.

                        KEY RATING DRIVERS

KTL has been servicing its debt in a timely manner; however; its
debt ratings are restricted at 'IND D' due to the presence of a
cross default clause in the loan agreement with its twin project
Salem Tollways Ltd (STL:IND D).  STL has delayed servicing its
debt, therefore it is deemed as a delay in KTL.  STL and KTL are
contiguous stretches of the road operated by IVRCL Limited
('IND D') under the National highway authority of India
(NHAI: 'IND AAA'; Outlook Stable) concession.

                       RATING SENSITIVITIES

Timely debt servicing for three consecutive months by STL would
trigger a rating upgrade.

                          COMPANY PROFILE

KTL is a special purpose company set up to widen, operate and
maintain a 48km road stretch on the NH-47 between Kumarapalayam
and Chengappalli, in Tamil Nadu.  KTL's ratings are equalized
with STL due to a cross-default clause in the financing
agreements of both projects.  STL is a project company set up to
undertake the upgradation and operation of the adjoining 53km of
the same highway.  KTL is wholly-owned by IVRCL Limited.


LAVASA CORPORATION: CARE Reaffirms 'D' Rating on INR547.81cr Loan
-----------------------------------------------------------------
CARE revises/reaffirms the ratings assigned to the bank
facilities/instruments of Lavasa Corporation Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities
   Term Loan                     396.33     CARE D Reaffirmed

   Long-term Bank Facilities
   Term Loan                     547.81     CARE D Reaffirmed

   Long-term Instruments-
   NCD I                          96.39     CARE D Reaffirmed

   Long-term Instruments-
   NCD IV                        250.00     CARE D Reaffirmed

   Long-term Instruments-
   NCD V                         114.45     CARE D Reaffirmed

   CCPS                          525.00     CARE C (SO); Negative
                                            Revised from
                                            CARE B (SO)

Rating Rationale

The reaffirmation in the rating assigned to Bank Facilities of
Lavasa Corporation Limited (LCL) factors in continuing delays
in debt servicing owing to stressed liquidity position.

The ratings continue to be constrained owing to deferment in
project commissioning from scheduled timelines and concomitant
stress on project cash flows resulting in delays in debt
servicing.

Timely servicing of debt obligations, additional infusion of
funds to complete project work as per revised schedule and
further scaling up of operations to improve the liquidity profile
of the company are the key rating sensitivities.

The revision in the rating assigned to the CCPS issue of Lavasa
Corporation Limited (LCL), factors slow moving real estate
projects of HCC Real Estate Limited (HREL) and delay in
compliance with the earlier envisaged structure and other terms
in the sanction letter of CCPS issue leading to further stress on
the cash flows and ability of LCL to meet the obligations of the
CCPS. The rating continues to be constrained by the weak
financial position of LCL and HREL, along with significantly
high corporate guarantees given to group companies. The rating
however, factors the presence of experienced senior management
and near completion of Phase I of the project of LCL.

Any further delay in the completion of the real estate projects
at HREL, hampering its ability to honor the repayment, if the put
option is exercised and ability of LCL to successfully revive
operations of its project-phase II and generate cash flows from
the same, are the key rating sensitivities.

Outlook: Negative

Negative Outlook is assigned to the CCPS issue as the Put option
trigger date is approaching in September 2017 and HREL's ability
to be able to meet the obligations if the Put Option is triggered
has further weakened due to its projects moving slow.

Lavasa Corporation Limited (LCL) was incorporated on February 11,
2000; on March 3, 2003, the company became a Public Limited
company. Effective from June 8, 2004, the company's name has been
changed to its current name- Lavasa Corporation Limited (LCL) -
previously known as The Lake City Corporation Private Limited.

The main business of the company was to establish and develop
townships, holiday resorts, and facilities such as recreational,
educational, and commercial amenities, hotels, guesthouses, etc.
LCL is promoted by Hindustan Construction Company Ltd (HCC)
through its wholly owned subsidiary company HCC Real Estate
Limited (HREL) and Hincon Finance Ltd. (HFL) contributing to a
shareholding of 68.72% in LCL. HREL was incorporated on June 15,
2005 as a public limited company as Hincon Realty Limited. The
name of the company was changed to HCC Real Estate Limited and a
fresh certificate of incorporation was issued on August 8, 2006.
The principal business of HREL is construction and development of
buildings, houses, halls, flats, office premises, shops,
residential/commercial complexes, shopping malls, entertainment
parks or any landed property.


MAHATHI SOFTWARE: Ind-Ra Withdraws 'D' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Mahathi
Software Private Limited's (MSPL) 'IND D' Long-Term Issuer
Rating.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for MSPL.

MSPL's ratings are:

   -- Long-Term Issuer Rating: 'IND D'; rating withdrawn
   -- INR70 million fund-based working capital limit: Long-term
      'IND C' and Short-term 'IND A4'; ratings withdrawn
   -- INR320.2 million Term loan limit: Long-term 'IND D'; rating
      withdrawn


MAKCUR LABORATORIES: Ind-Ra Withdraws B- Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Makcur
Laboratories Limited's 'IND B-' Long-Term Issuer Rating.  The
Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for Makcur.

Makcur's ratings are:

   -- Long-Term Issuer Rating: 'IND B-'; Outlook Stable; rating
      withdrawn
   -- INR80 million fund-based working capital limits: 'IND B-';
      Outlook Stable and 'IND A4'; ratings withdrawn
   -- INR69 million term loans: 'IND B-'; Outlook Stable; rating
      withdrawn
   -- INR22.5 million non-fund-based working capital limits:
      'IND A4'; rating withdrawn
   -- INR0.75million forward contract limits: 'INR A4'; rating
      withdrawn


N.C. JOHN: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn N.C. John &
Sons (P) Ltd.'s 'IND BB+' Long-Term Issuer Rating.  The Outlook
was Stable.  The agency has also withdrawn the Long-term 'IND
BB+' rating with a Stable Outlook and the Short-term 'IND A4+'
rating on the company's INR275 million fund-based working capital
limits.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for the company.


NITASHA CONSTRUCTIONS: ICRA Reaffirms 'B' Rating on INR8cr Loan
---------------------------------------------------------------
ICRA has reaffirmed its [ICRA]B rating on the INR8.0-crore fund-
based facilities of Nitasha Constructions. ICRA has also
reaffirmed the short-term rating of [ICRA] A4 on the INR5.0-crore
non-fund based facilities of NIC.

                         Amount
   Facilities          (INR crore)      Ratings
   ----------          -----------      -------
   Fund-based-Cash
   Credit                  8.00         [ICRA]B; Reaffirmed

   Non-fund Based-
   Bank Guarantee          5.00         [ICRA]A4; Reaffirmed

The ratings continue to remain constrained by the firm's
elongated working capital cycle (NWC/OI1 of 104% in FY2016) due
to its high inventory days and its consequent stretched liquidity
as evident from the high utilisation of its working capital
limits. While the firm's order book has a fair geographic
diversity, the firm remains dependent on Military Engineering
Services (MES) for its orders, leading to client concentration
risks. The ratings further factor in the firm's modest scale of
operations and the exposure to execution risk owing to right of
way and capital withdrawal risk due the firm's partnership
constitution.

The ratings, however, derive comfort from the extensive
experience of promoters in the field of civil construction and
the reputed clientele (majority of the contracts are from MES).
The ratings favorably factor in the moderate order book position
of the firm (Pending order book/FY2016 OI of 2.01 times), which
provides revenue visibility in the medium term. Furthermore, the
ratings are supported by the firm's moderate profitability and
its limited dependence on debt, despite the high working capital
requirements (Gearing of 1.34 times and TOL/TNW of 1.75 times as
on March 31, 2016).

Going forward, a sustained growth in the firm's operating income,
reduction in working capital intensity and improvement in its
liquidity position will be the key rating sensitivity.

Based in Chandigarh, Nitasha Constructions was established as a
proprietorship company in 1987 by Mr. Prakash Bhambhani. In April
2012, the firm was converted into a partnership company with Mr.
Prakash Bhambhani and Mr. Ashish Bhambhani as the partners. The
firm is listed as an 'S' class contractor with MES, enabling it
to bid for contracts with value up to INR15 crore. The core
operations of the firm involve setting up sewerage treatment
plant and air conditioning plants for MES and other bodies such
as the Central Public Works Department.

Recent Results
The firm, on an operating income (OI) of INR15.71 crore, reported
a net profit of INR0.87 crore in FY2016 as against an operating
income (OI) of INR11.39 crore, on which it reported a net profit
of INR0.54 crore in FY2015.


ONE CAPITALL: Ind-Ra Withdraws 'BB' Rating on INR900MM Bank Loans
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn One Capitall
Limited's INR900 million bank loans' Long-term rating of 'IND
BB'.

The rating has been withdrawn due to lack of adequate
information. Ind-Ra will no longer provide ratings or analytical
coverage for the company.


ORANGE INFRACON: ICRA Lowers Rating on INR38cr Term Loan to B+
--------------------------------------------------------------
ICRA has revised its long-term rating on the INR38.0-crore term
loan and the INR12.0-crore unallocated facilities of Orange
Infracon Private Limited to [ICRA]B+ from [ICRA]BB-.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Term Loan               38.00       [ICRA]B+; revised from
                                       [ICRA]BB-(Stable)

   Unallocated             12.00       [ICRA]B+; revised from
                                       [ICRA]BB-((Stable)

The rating revision takes into account the continued weak sales
velocity and the consequent high market and funding risks of
OIPL's ongoing project. Low customer advances have increased the
company's funding risk (Committed receivables to Committed
Outflows ratio was 0.26x as of August, 2016) given that the
advances comprise 44% of the project funding. The rating revision
also takes into consideration the project's moderate execution
pace in the last one year. Out of the total project cost of
INR107.7 crore, the company incurred INR53.9 crore as of Aug,
2016, funded by INR24.7 crore of promoter funds, INR23.0 crore
bank loan, INR1.1 crore of creditors and only INR5.2 crore of
customer advances.

The rating, however, draws comfort from the strong execution
track record of promoters in real estate development; the
established brand name of the BCM Group in Indore, Madhya Pradesh
and the low approval risk of the project. In the absence of
significant collections, the promoters have been supporting the
company's cash flow till now.

The ability of the company to ramp up bookings and collections,
increase its execution pace while ensuring timely funding support
from promoters would constitute the key rating sensitivity.

OIPL, incorporated in 1997, is a part of the Indore-based B.C.M.
Group, which was promoted by Late Mr. B.C. Mehta. It has presence
across diverse sectors such as snack foods manufacturing, food
processing and real estate development. OIPL is developing its
first project 'BCM Park' at Piplyakumar in Indore, Madhya
Pradesh, wherein 0.52 million square feet would be developed in
two phases at ~INR107.7 crore. The project would have a total of
230 flats in four towers with fourteen floors each. The project
is funded by INR38.0 crore of bank debt, INR22.0 crore of
promoter's contribution and INR47.7 crore of customer advances.
The land for the project is owned by the company and the
construction started in Q4 FY2014. The project completion is
scheduled in Q4FY2018.

Recent Results
In FY2016, the company reported a net loss of INR0.01 crore on an
operating income of INR0.08 crore, as compared to a net profit of
INR0.11 crore on an operating income of INR0.23 crore in the
previous year.


PALIWAL MILK: ICRA Suspends 'B' Rating on INR7cr LT Loan
--------------------------------------------------------
ICRA has suspended [ICRA]B rating assigned to the INR7.00 crore
Long Term fund based facilities of Paliwal Milk Products Private
Limited. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.

Incorporated on July 2011, Paliwal Milk Products Private Limited
(PMPPL) is a private limited company promoted by Mr. Umashankar
Paliwal. The company had taken over the proprietorship concern of
the promoter, "Paliwal Milk & Milk Products" from April 1, 2012.

The company is engaged in the process of pasteurizing raw milk.
The company has two processing facilities based out of Lunawada
in Gujarat with a capacity of 1 Lakh Litres per day (LPD) and at
Dewas in Madhya Pradesh with a pasteurizing capacity of 0.50 LPD.
The company procures milk from co-operative societies formed by
the local villagers. Other than distribution of milk, PMPPL is
also involved in trading of animal feed and processing of ghee
from spoilt milk.


PAS TRADING: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn PAS Trading
House's (PTH) 'IND B+' Long-Term Issuer Rating.  The Outlook was
Stable.  The agency has also withdrawn the Long-term 'IND B+'
rating with a Stable Outlook and the Short-term 'IND A4' rating
on the company's INR90 million fund-based working capital limit.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for PTH.


PEENANG INFRA: Ind-Ra Withdraws 'B' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Peenang Infra
Projects Private Limited's (PIPL) 'IND B' Long-Term Issuer
Rating. The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for PIPL.

PIPL's ratings are:

   -- Long-Term Issuer Rating: 'IND B'; Outlook Stable; rating
      withdrawn
   -- INR30 million fund-based working capital limits: 'IND B';
      Outlook Stable; rating withdrawn
   -- INR20 million non-fund-based working capital limits:
      'IND A4'; rating withdrawn
   -- Proposed INR50 million non-fund-based working capital
      limits: 'provisional IND A4'; rating withdrawn


POWERLITE ELECTRICALS: CARE Rates INR5cr Long Term Loan at 'B'
--------------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Powerlite
Electricals (India) Pvt Ltd.

                               Amount
   Facilities               (INR crore)    Ratings
   ----------               -----------    -------
   Long-term Bank Facilities      5       CARE B; Stable Assigned

Rating Rationale

The rating assigned to the bank facilities of Powerlite
Electricals (India) Private Limited (PEIPL) is primarily
constrained by its small & declining scale of operations with low
networth base, low profitability margins and leveraged capital
structure.

The rating is further constrained by elongated operating cycle
and highly competitive nature of the industry. The rating,
however, draws comfort from experienced promoters. Going forward,
the ability of the company to increase its scale of operations
while improving its profitability margins and capital structure
shall be the key rating sensitivities.

New Delhi-based PEIPL was incorporated in 1993 and is currently
being managed by Mr. Ankur Gupta and Mr. S. K Agarwal. The
company is engaged in the trading of electrical equipment
particularly in motor pumps of different usages. The company
majorly sells its products to wholesalers located in Delhi and
nearby regions. PEIPL primarily procures the traded goods
domestically from various manufacturers and traders. Also, the
company imports the product from China (import purchases stood
~30% during FY16 [refers to the period April 1 to March 31]).
Besides this, the company also purchases from its group concern
Rajan Electricals Pvt Ltd. Rajan Electricals Pvt Ltd is an
associate concerns engaged in trading of
electric equipment.

During FY16, PEIPL has achieved a total operating income (TOI) of
INR20.54 crore with PAT of INR1.24 crore, respectively, as
against TOI of INR26.28 crore with PAT of INR0.02 crore,
respectively, in FY15. The company has achieved total TOI of Rs 9
crore till 8MFY17 (refers to the period April 01 to November 30;
based on the provisional results).


PRIME CIVIL: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Prime Civil
Infrastructure Pvt. Ltd.'s (PCIPL) 'IND BB' Long-Term Issuer
Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for PCIPL.

PCIPL's ratings are:

   -- Long-Term Issuer Rating: 'IND BB'; Outlook Stable; rating
      withdrawn
   -- INR100 million fund-based working capital limits: 'IND BB';
      Outlook Stable; rating withdrawn
   -- INR90 million non-fund-based working capital limits:
      'IND A4+'; rating withdrawn


PRIME NEWLINE: Ind-Ra Withdraws 'BB' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Prime Newline
AO's 'IND BB' Long-Term Issuer Rating.  The Outlook was Stable.
The agency has also withdrawn the company's INR100 million fund-
based working capital limits' 'IND BB' rating, which had a Stable
Outlook, 'IND A4+' rating.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for the company.


PRIVILEGE HEALTH: Ind-Ra Withdraws 'D' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Privilege
Health Care Services Private Limited's 'IND D' Long-Term Issuer
Rating. The agency has also withdrawn the Long-term 'IND D'
rating on the company's INR280 million term loan.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for the company.


RAJASTHAN VIKAS: ICRA Upgrades Rating on INR25cr Term Loan to B+
----------------------------------------------------------------
ICRA has upgraded its long-term rating on the INR25.00-crore
fund-based bank facilities of Rajasthan Vikas Sansthan (company
u/s 25 of the Companies Act, 1956) to [ICRA]B+ from [ICRA] B.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Fund-based bank         25.0        [ICRA]B+; upgraded from
   facilities-Term                     [ICRA]B
   loans

The rating upgrade takes into account the healthy ramp up in the
company's student intake and enrolment base resulting in good
growth in revenue receipts. Moreover, the fee hike in AY32016-17
is further expected to support the revenue and surplus growth
going forward. The rating continues to draw comfort from the
school's association with Delhi Public School (DPS) society,
which apart from lending the school an established brand name
also provides operational expertise. The rating also favourably
factors in the school's proximity to key residential areas in the
city of Jodhpur. This apart, the rating also derives strength
from the extensive experience of the promoters in operating
educational institutions.

The rating, however, remains constrained by the modest scale and
single-asset operation of the company and the competition from
other institutions. Given the typical time period required for
ramp up of student strength, the revenue generation ability of
the company will remain constrained till students across all
standards are admitted. As the school will have to incur
continuous capital expenditure to meet the requirement of the
increased student base, the company's debt coverage indicators
are expected to remain moderate in the near term. As on Mar 31,
2016, the company's gearing and Debt/Operating surplus stood at
3.1x and 3.6x, respectively.

The ability of the company to maintain high enrolments and
generate adequate surplus going forward so as to improve its
scale and debt coverage will be the key rating sensitivity.

Incorporated in 2012, RVS Company is a single-asset company,
incorporated u/s of the Companies Act 1956, which runs and
operates the Delhi Public School (DPS) in Jodhpur, Rajasthan. The
school is located on a land parcel of 6.6 acres. The land for the
same has been taken on lease from Rajasthan Vikas Sansthan
Society, a group entity, which is also engaged in the education
sector. The school commenced operations in AY2015 and presently
caters to students from pre-primary to standard X. As of now,
four sections per standard are operational, an increase from
three sections per standard last year. The management commenced
classes for Standard X from AY16-17. The school received the
CBSE4 affiliation in December 2014.

Recent Results
RVS reported a net surplus of INR1.43 crore on revenue receipts
of INR7.25 crore in FY2016 as against a net surplus of INR0.22
crore on revenue receipts of INR4.03 crore in the previous year.


RAJESHWARA FORGINGS: Ind-Ra Withdraws B+ Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Rajeshwara
Forgings Private Limited's (RFPL) 'IND B+' Long-Term Issuer
Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for RFPL.

RFPL's ratings are:

   -- Long-Term Issuer Rating: 'IND B+'; Outlook Stable; rating
      withdrawn
   -- INR60 million fund-based working capital limits: 'IND B+';
      Outlook Stable and 'IND A4'; ratings withdrawn
   -- INR3.54 million long-term loan: 'IND B+'; Outlook Stable;
      rating withdrawn


RSH AGRO: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RSH Agro Product
Private Limited (RSHAPPL) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.

                         KEY RATING DRIVERS

The ratings reflect the short track record of RSHAPPL's
operations as they began only in April 2015.  The ratings also
reflect RSHAPPL's small scale of operations and moderate credit
profile. In FY16, revenue was INR383 million, net financial
leverage (total adjusted net debt/operating EBITDA) was 8.2x,
EBITDA interest coverage (operating EBITDA/gross interest
expense) was 2.4x and EBITDA margin was 9.5%.

RSHAPPL's liquidity profile remains moderate with its fund-based
facilities being utilized at an average of 92.6% over the 12
months ended November 2016.

The ratings, however, are supported by over three decades of
experience the company's promoters in the edible oil industry.

                      RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and liquidity
position will be positive for the ratings.

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

COMPANY PROFILE

Incorporated in 2012, RSHAPPL commenced its commercial production
from April 2015.  It manufactures mustard oil and oil cakes at
its unit in Guwahati, Assam, which has a crushing capacity of
21,000MTPA.

Anupriya Harlalka and Nobel Sangama are the directors of the
company and majorly look after the operations of the company,
supported by other members of the Harlalka family.

RSHAPPL's ratings:

   -- Long Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
   -- INR44.5 million long-term loan: assigned 'IND BB-'; Outlook
      Stable
   -- INR200 million fund-based facilities: assigned 'IND BB-';
      Outlook Stable
   -- INR20 million non-fund-based facilities: assigned 'IND A4+'


SALEM TOLLWAYS: Ind-Ra Affirms 'D' Rating on INR2.230BB Bank Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Salem Tollways
Ltd's (STL) INR 2,230 million long-term senior project bank loan
and INR200 million Subordinate Loan at long term 'IND D'.

                        KEY RATING DRIVERS

The affirmation reflects continued delays in debt servicing on
the bank loans by STL due to its stressed liquidity position.

                       RATING SENSITIVITIES

Timely debt servicing for three consecutive months would be
positive for the ratings.

COMPANY PROFILE

STL is a special purpose company set up to widen, operate and
maintain a 53km stretch on the NH-47 highway between
Kumarapalayam and Salem in Tamil Nadu.  Cross default clause
exists in the financing documents of both the twin projects STL
and Kumarapalyam Tollways Ltd (KTL :IND D); KTL is a special
purpose company set up to widen, operate and maintain a 48km
stretch on the NH-47 highway between Kumarapalayam and
Chengappalli in Tamil Nadu.  STL is wholly owned by IVRCL Limited
('IND D').


SANJOG SUGARS: ICRA Hikes Rating on INR41.12cr LT Loan to C+
------------------------------------------------------------
ICRA has revised its long term rating from [ICRA]D to [ICRA]C+ on
the INR41.12 crore fund based bank facilities of Sanjog Sugars &
Eco Power Pvt. Ltd.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long- Term Fund-        41.12       [ICRA]C+; revised from
   Based Limits                        [ICRA]D

ICRA's rating revision is driven by stabilized operations of the
plant after it resumed its operations in December 2015. This has
resulted in a robust growth in the operating income to INR19.16
crore and healthy PLF level of ~75% in H1FY2017. ICRA also notes
that 20 year Power Purchase Agreement (PPA) has been signed with
the Rajasthan DISCOMs which has largely mitigated the off-take
risk for the power plant. ICRA also notes that the average fuel
cost of the company has increased; however it remains below the
level factored in the tariff received as per the PPA with
Rajasthan state power distribution utilities. Nevertheless, the
ratings continues to be constrained by stretched liquidity of the
company due to large annual term debt repayments and hinges on
sufficient cash accruals generation from operations. The ratings
also notes exposure of the cash flows to volatility in prices of
bio-mass and risks related to availability of quality bio-mass.
Although the parent entity Orient Green Power Company Ltd. has an
established presence in the renewable energy industry however the
ratings are primarily constrained by OGPL's continued delays in
debt servicing. Further, the debt servicing and liquidity of the
company are exposed to counter party credit risk associated with
Rajasthan DISCOMs, given its moderate credit profile.

Going forward, SSEPL's ability to sustain its revenue growth and
profitability through reasonable PLFs and economical raw material
procurement along with timely debt servicing will be the key
rating sensitivities.

SSEPL was incorporated in 2004 by J.K. Sagar and Prahlad Singh
and their associates with the objective of setting up a 10 MW
bio-mass power plant in Sangaria Tehsil, Hanumangarh District
Rajasthan. Later during August, 2009, OGPL acquired 78.94% stake
in the company. SSEPL is presently a subsidiary of OGPL who
presently holds 83.92%of the equity share capital in the Company.
The 10.0 MW project was commissioned in November 2011 and was
funded by term loans of INR44.36 crore from Punjab National Bank.
However the operations were suspended in March 2013 as the
company had opted for sale of power through power exchange and
the net tariff realized was un-remunerative. The Company signed a
PPA with the Rajasthan state Discoms on July 8, 2014 and the
operations at the plant resumed on Dec. 15, 2015.

Recent Results
SSEPL reported a net loss of INR11.93 crore on an operating
income of INR10.17 crore for FY2016, as against a net loss of
INR14.61 crore on an operating income of INR2.08 crore for the
previous year.


SARJU IMPEX: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Sarju Impex
Limited's (SIL) 'IND B+' Long-Term Issuer Rating.  The Outlook
was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SIL.

SIL's ratings:

   -- Long-Term Issuer Rating: 'IND B+'; Outlook Stable; rating
      withdrawn
   -- INR90 million fund-based limits: 'IND B+'; Outlook Stable;
      rating withdrawn
   -- INR6.77 million term loans: 'IND B+'; Outlook Stable;
      rating withdrawn
   -- INR60 million non-fund-based working capital limits:
      'IND A4'; rating withdrawn


SEVEN HILLS: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Seven Hills
Paper Private Limited's (SHPPL) 'IND BB-' Long-Term Issuer
Rating. The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SHPPL.

SHPPL's ratings:

   -- Long-Term Issuer Rating: 'IND BB-'; Outlook Stable; rating
      withdrawn
   -- INR70 million fund-based working capital limits: 'IND BB-';
      Outlook Stable and 'IND A4+'; ratings withdrawn
   -- INR70 million term loans: 'IND BB-'; Outlook Stable; rating
      Withdrawn


SHIV SHAMBHU: Ind-Ra Withdraws 'BB-' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Shiv Shambhu
Iron & Steel Private Limited's (SSISPL) 'IND BB-' Long-Term
Issuer Rating.  The Outlook was Stable.  In addition, the agency
has withdrawn the 'IND BB-' rating, which had a Stable Outlook,
on SSISPL's INR145 million fund-based limits.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SSISPL.


SHIVA CEMENT: CARE Lowers Rating on INR45.44cr LT Loan to 'D'
-------------------------------------------------------------
CARE revises and suspends the ratings assigned to the bank
facilities of Shiva Cement Ltd.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     45.44      CARE D Revised from
                                            CARE BB

   Short-term Bank Facilities     2.00      CARE D Revised from
                                            CARE A4

Rating Rationale

Revision of the ratings assigned to the bank facilities of Shiva
Cement Ltd. takes into account the continued stretch in liquidity
position of the company resulting in ongoing delay in debt
servicing.

In the absence of the information required by CARE for monitoring
of the ratings, CARE is unable to assess and provide analytical
opinion on factual position of the company and consequent impact
on the credit profile. Consequently, CARE has suspended, with
immediate effect, the ratings assigned to the bank facilities of
Shiva Cement Ltd.

Shiva Cement Ltd, Incorporated in 1985, and promoted by Shri R.P.
Gupta of Rourkela, a qualified electrical engineer, commenced its
operations in 1986 and is currently engaged in manufacturing of
Portland Slag Cement (PSC) (the slag blending mix ranging between
35 to 45%). The company operates two cement plants with an
installed cement capacity of 1,32,000 tpa and clinkerisation
facility of 1,15,500 tpa located at Sundargarh, Odisha. The
company markets the cement under the brand name of 'Sumangal'.
Besides selling cement, the company is also involved in trading
of slag, coal, gypsum, etc on an order driven basis.


SHLOGAM AGRO: CARE Reaffirms 'D' Rating on INR30cr ST Loan
----------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shlogam Agro Private Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Short term Bank Facilities     30.00     CARE D Reaffirmed

Rating Rationale
The rating factors in the delays in servicing of debt obligation
owing to liquidity constraints.

Shlogam Agro Pvt. Ltd., incorporated in May 2008 is a closely
held family business engaged in trading of rice, millet,
maize, groundnut meal, soya bean meal, millet, barley and chick
peas among other agro commodities since inception. The company's
products are sourced from seed processing units, mandis and in
some cases directly from farmers which are then packed in
containers to be exported to various destinations from the
nearest port. The promoters have maintained long term
relationships with its customers and suppliers. SAPL is managed
by Mr. Rahul Bakliwal and Mr. Nikhil Bakliwal.

The promoter of SAPL, Mr. Rahul Bakliwal has a rich experience in
the business of commodity exports for over a decade.

Prior to setting up SAPL, he was associated with reputed
companies into exports and imports of agro products.

SAPL reported a PAT of INR0.18 crore on a total operating income
of INR86.19 crore in FY16 (refers to the period April 1 to
March 31).


SHREE KANKESHWARI: Ind-Ra Withdraws 'BB+' Long-Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Shree
Kankeshwari Agro Pvt. Ltd's (SKAPL) 'IND BB+' Long-Term Issuer
Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SKAPL

SKAPL's ratings are:

   -- Long-Term Issuer Rating: 'IND BB+'; Outlook Stable; rating
      withdrawn
   -- Proposed INR200 million fund-based working capital limits:
      'Provisional BB+'; Outlook Stable; rating withdrawn
   -- INR150 million fund-based working capital limits:
      'IND BB+';
      Outlook Stable; rating withdrawn
   -- Proposed INR75 million Term loans: 'Provisional IND BB+';
      Outlook Stable; rating withdrawn
   -- Proposed INR8.5 million non-fund-based working capital
      limits: 'Provisional A4+'; rating withdrawn


SHRI KRISHNASHRAY: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn M/s Shri
Krishnashray (India) Pvt. Ltd.'s (SKIPL) 'IND B-' Long-Term
Issuer Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SKIPL.

SKIPL's ratings are:

   -- Long-Term Issuer Rating: 'INDB-'/Stable; rating withdrawn
   -- INR95 million fund-based working capital limits:
      'IND B-'/Stable; rating withdrawn
   -- INR88 million term loans: 'IND B-'/Stable; rating withdrawn
   -- INR25 million non-fund-based working capital limits:
      'IND A4'; rating withdrawn


SIVA VAISHNAVI: Ind-Ra Withdraws 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Siva Vaishnavi
Marine Private Limited's 'IND B+' Long-Term Issuer Rating.  The
Outlook was Stable.  The agency has also withdrawn the Long-term
'Provisional IND B+' rating with a Stable Outlook and the Short-
term 'Provisional IND A4' rating on the company's proposed
INR300 million fund-based working capital limits.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for the company.


SLN TERMINUS: Ind-Ra Withdraws 'B-' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn SLN Terminus
Hotels & Resorts Private Limited's (SLN) 'IND B-' Long-Term
Issuer Rating.  The Outlook was Stable.

The ratings have been withdrawn due to lack of adequate
information.  Ind-Ra will no longer provide ratings or analytical
coverage for SLN.

SLN's ratings are:

   -- Long-Term Issuer Rating: 'IND B-'/Stable; rating withdrawn
   -- Proposed INR20 million fund-based working capital Limits:
      'Provisional IND B-'/Stable and 'Provisional IND A4'
      ratings withdrawn
   -- Proposed INR250 million term loans: 'IND B-'/Stable; rating
      withdrawn
   -- Proposed INR50 million non-fund-based working capital
      limits: 'IND A4'; rating withdrawn


SOMNATH COLD: ICRA Suspends 'B' Rating on INR2.95cr Loan
--------------------------------------------------------
ICRA has suspended the long term rating of [ICRA]B assigned to
the INR2.95 crore term loans, INR8.0 crore seasonal cash credit,
INR1.37 crore working capital loan and INR0.37 crore non-fund
based bank facilities of Somnath Cold Storage Private Limited.
The suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.

Incorporated in 1984, SCPL is a cold storage set up in Burdwan
district of West Bengal and is owned by the Nitin Agarwal family
of Kolkata, who have been in the business of managing cold
storages since 1963. SCPL is primarily engaged in the business of
storage and preservation of potatoes. Currently, SCPL has an
annual storage capacity of 38,000 tonnes. Besides SCPL, the
promoters own three more cold storage facilities namely,
Chinsurah Cold Storage, Hooghly (20,000 MT) and Shri Hazarilal
Cold Storage Private Limited, Jalpaiguri (14,000MT) and Himghar
Udyog Private Limited, Bankura (14,800 MT).


SRI RAM TECHNOPACK: CARE Rates INR4.90cr Long Term Loan at B+
-------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' rating to the bank
facilities of Sri Ram Technopack Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities      4.90      CARE B+; Stable
                                            Assigned

   Short term Bank Facilities     0.25      CARE A4 Assigned

Rating Rationale

The rating assigned to the bank facilities of Sri Ram Technopack
Private Limited (SRPL) is constrained by its small scale of
business, short track record of operations, volatility in raw
material prices, intense competition in the industry with
presence of many unorganized players and working capital
intensive nature of operations marked by elongated operating
cycle and. The aforesaid constraints are partially offset by the
experienced promoters and favourable industry scenario.
The ability of the company to increase the scale of operations
and improve profitability margins and ability to manage
working capital effectively would be the key rating
sensitivities.

Sri Ram Technopack Private Limited was incorporated in the year
2009 by Agarwal family. The company started its commercial
operations from April 2012 and is engaged in manufacturing
polypropylene (PP) woven sacks, laminated bags and fabric with
its manufacturing facility located at Burdwan, West Bengal with
an aggregate installed capacity of 4,800 MTPA.

Mr. Rajendra Prasad Agarwal, having around four decades of
experience in the packaging industry, looks after the overall
management of the company along with the other directors Mr.
Rakesh Agarwal and Mr. Rahul Agarwal and supported by the team of
experienced professionals.

As per the FY16, SRPL reported a PBILDT of INR1.73 crore (PBILDT
of INR2.01 crore in FY15) and PAT of INR0.23 crore (PAT of
INR0.31 crore in FY15), on a total operating income of INR12.73
crore (total operating income of INR10.55 crore in FY15).


STATE TRADING: CARE Ups Rating on INR2,000cr LT Loan to BB+
-----------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of the
State Trading Corporation of India Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     2,000      CARE BB+; Stable
                                            Revised to CARE D
                                            from CARE BB+ and
                                            upgraded to CARE BB+

   Short-term Bank Facilities    4,000      CARE A4+ Revised to
                                            CARE D from CARE A4+
                                            and upgraded to
                                            CARE A4+

The ratings assigned to the bank facilities of The State Trading
Corporation of India Limited (STC) continue to derive strength
from the long and established track record of operations and the
predominant ownership of the Government of India. The ratings
also factor in the new business initiatives undertaken by STC to
increase its scale of operations & strengthening of its internal
control systems.

The above rating strengths are, however, partially offset by its
weak financial profile characterized by volatile operating income
and high amount of outstanding trade receivables. CARE has taken
cognizance of the fact that there was a three day delay in
servicing of its debt obligation which was on account of certain
operational issues.

Going forward, the ability of the company to strengthen its risk
management policies, recovery of past dues and improvement in its
profitability and capital structure will be the key rating
sensitivities.

STC was set up in May 1956, primarily with a view to undertake
trade with East European Countries and to supplement the efforts
of private trade and industry in developing exports from the
country.
As a result of liberalization of foreign trade since 1991, all
export and import items earlier canalized through STC were
decanalised. Presently, it is primarily engaged in the exports to
Iran & trade of bullion, fertilisers, food grains, coal,
cardamom, edible oil & pulses. The Corporation functions under
the administrative control of the Ministry of Commerce &
Industry, Government of India. STC arranges import/ export of
mass consumption items including rice, wheat, edible oils, sugar
as per instructions of the Government. As on September 30, 2015,
the Government of India had approximately 90% shareholding in
STC.

The various new initiatives by the company during FY16 included
exports of rice (under WFP to Nepal) worth INR20 crore & export
of 96.5MT of red sanders yielding a turnover of INR29.5 crore and
further domestic sale of pulses valuing approximately INR108
crore to Tamil Nadu State Civil Supplies Corporation Ltd and gold
coins worth INR61 crore to Government of Tamil Nadu were made
during
the year. STC conducted cardamom auctions in the states of Tamil
Nadu and Kerala against the license obtained from Spices board.
They offer better margins that the other high selling items.
During FY16, STC achieved a turnover of INR104 crore from retail
sale and exports of cardamom and is projected to increase going
forward. The company shall continue to make efforts to enhance
business of existing areas of trade such as exports of steel
plates/coils and rice under World Food Program (WFP), imports of
bullion, fertiliser & domestic sale of coal, pulses, fertiliser,
cardamom, etc & proposes to take various new initiatives like
exports of steel rails to Iran Railways, export of cardamom,
tobacco to Iran & other countries to increase its turnover &
profitability.

Auditors have opined that the internal control procedure
regarding review, realization of advances and other claims and
reconciliation of balance of sundry debtors and creditors require
strengthening.

Auditors have also qualified an instance of three day delay on
repayment of debt. CARE has taken cognizance of the same, it was
though on account of certain operational issues at company's end
&
the repayment was however made good and there was no further
instance of any delay recorded post that. During the year,
Internal audit function of the company was suitable strengthened
& STC conducted internal Audit four times in a year as against
three times being conducted earlier. The corporation has
constituted risk management team called Functional Management
Committee of Directors (FMCOD) for buyer mapping and assessment
of their credit worthiness (including D&B report of the
associates) which enables it to decide the credit terms and the
maximum exposure to be capped for the buyers. Furthermore, while
STC has set guidelines and written policies and procedures for
risk management in each division, effective monitoring systems
and compliance remain crucial.

During FY16, STC's total income declined by 26.29% to
INR10,868.03 crore from INR14,744.10 crore in FY15 primarily on
account of 45% decline in import of bullions due to reduction of
INR3,882 crore in bullion imports because of lower demand
attributable to large imports of dore bars into the country (for
which STC does not hold the license)and decline in exports which
was partly attributable to general decline in exports of all
major world economies. During FY16, the PBILDT & PAT margins
remained almost at the same level being 1.40% (1.39% in previous
year) and 0.16% (0.18% in FY15).

The PBILDT remained at the same level as there was a major
decline in bullion sale where the company did not hold higher
margins, however the margins were to some extent maintained by
shift
in the sales model to sale of items like Cardamom, red sanders &
edible oil, etc. which though are small sale items as far as the
value is concerned but they hold good margins compared to
bullion.

As on March 31, 2016, STC had an overall gearing (including
acceptances) of 9.40x (PY: 9.52x). The marginal improvement in
overall gearing was on account of improved net worth base on the
back of accretion of profits.

As on March 31, 2016, STC had outstanding trade receivables of
INR2,640.98 crore of which INR 2,428.94 crore has been
outstanding for more than 6 months and further INR1,067.00 crore
long-term receivables has been outstanding for more than a year
against which there is a corresponding credit of Rs 910.62 crore.
Although in certain cases there are corresponding creditors under
back to back arrangement and pledge of stocks and are under
litigation for recovery of over dues, the overall receivables are
significantly high in comparison to the net worth of STC. Against
the outstanding receivable, STC had a net worth of only INR172.14
crore as on March 31, 2016.


SUZUKI TEXTILES: CARE Reaffirms 'C' Rating on INR143.87cr LT Loan
-----------------------------------------------------------------
CARE reaffirms the ratings assigned to bank facilities of
Suzuki Textiles Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities    143.87      CARE C; Stable
                                            Reaffirmed

   Short-term Bank Facilities    20.23      CARE A4 Reaffirmed

Rating Rationale

The ratings assigned to the bank facilities of Suzuki Textiles
Limited continue to be constrained by acute liquidity stress
faced by the company on account of operating losses reported in
FY16 (refers to the period April 1 to March 31) and disruption in
the operations subsequent to fire incidence in the company's
premises in March 2016.

The ratings further continue to remain constrained on account of
working capital intensive operations, susceptibility of
profitability to volatile raw material prices and inherent
cyclicality associated with the textile industry.

The ratings, however, continue to draw strength from its
experienced promoters, integrated operations and established
dealer network.

STL's ability to improve its liquidity position through receipt
of pending insurance claim within envisaged timeframe and improve
its operating profitability while efficiently managing working
capital requirements is the key rating sensitivity.

Suzuki Textiles Limited (STL) is a Bhilwara based closely held
public limited company incorporated in 1986 and has an
operational track record of more than two decades. STL also
enjoys location advantage being situated in Bhilwara, a hub for
the textile industry. STL operates in three basic segments -
suiting & shirting, yarn (polyester cotton & cotton) and
readymade garments with suiting and shirting contributes more
than 70% of total operating income. STL focuses on low to medium
segment of fabrics (catering the need based segment), mainly
through the dealer network entailing reduction in selling and
distribution expenses. Mr. R.P. Maheshwari, the chairman of STL
has more than 25 years of experience in the textile business.

As per audited results of FY16, STL has reported total operating
income of INR397.25 crore (FY15: INR 437.58 crore) with a
net loss of INR11.34 crore (FY15: Profit after tax of INR2.25
crore).


UNIVERSAL CONFECTIONERY: CARE Assigns B Rating to INR1.18cr Loan
----------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank
facilities of Universal Confectionery And Food Products Private
Limited.
                               Amount
   Facilities               (INR crore)   Ratings
   ----------               -----------   -------
   Long-term Bank Facilities    1.18      CARE B; Stable Assigned
   Short-term Bank Facilities   4.30      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Universal
Confectionery and Food Products Private Limited (Universal) is
constrained by its nascent stage and modest scale of operations
coupled with net losses incurred in the past three years
ending FY16 (refers to period April 1 to March 31) leading to
adverse net-worth, leveraged capital structure and weak
debt protection metrics. The ratings are further constrained by
its weak liquidity position and working capital intensive
nature of business as well as its presence in the highly
competitive and fragmented food products industry with
susceptibility of margins to raw material price and foreign
exchange fluctuation.

The above constraints are partially offset by the vast experience
and resourcefulness of the promoters in the food processing
industry and their demonstrated financial support as well as
operational synergies derived from group companies of its well
established Global Group.

Ability of the company to stabilize its operations and benefit
from Global Group's established presence to scale up its
operations as well as improve profitability amidst competition as
well as efficiently manage its working capital requirement thus
improving its liquidity position are the key rating
sensitivities.

Incorporated in the year 2007 and commencing its operations in
April 2013, Universal Confectionery and Food Products Pvt. Ltd.
(Universal) is promoted by Mr. Sureshkumar Bherwani and Mr.
Narayan J. Pagarani. The company is engaged in the business of
manufacturing bakery & confectionery items like biscuits,
candies, lollipops; catering to overseas markets
primarily African countries such as South Africa, Ghana, Nigeria,
Cameroon as well as to UAE, and Hong Kong under the brand name
'BEBO'.

During FY16 (refers to the period April 01 to March 31),
Universal posted total operating income of INR4.89 crore (vis-Ö-
vis INR6.93 crore in FY15) along with a net loss of INR0.69 crore
(vis-a-vis net loss of INR1.14 crore in FY15). Furthermore,
during 8MFY17, the company has achieved a turnover of INR5.61
crore.


UNIVERSAL STAINLESS: CARE Reaffirms 'B' Long Term Loan Rating
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Universal Stainless.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      8.75      CARE B; Stable
                                            Reaffirmed

Rating Rationale

The rating assigned to the bank facilities of Universal Stainless
(UNS) continues to remain constrained on account of its
presence in highly fragmented and competitive industry along with
its partnership nature of constitution, risk associated
with foreign exchange fluctuation coupled with susceptibility of
margins to volatility in prices in raw material. The rating
also factors in delay in commencement of operations, its nascent
stage of operation coupled with modest scale of operation and
leveraged capital structure during 7MFY17 (Provisional, refers to
the period April 1 to October 31).

However, the rating continues to derive strength from the wide
experience of the promoters in different industries albeit
no relevant experience in the steel industry. The rating also
factors in stabilization of operation during 7MFY17 (Provisional)
on back of successful completion of project.

The ability of UNS to increase its scale of operations along with
improvement in the overall financial risk profile amidst highly
competitive steel industry along with efficient working capital
management are the key rating sensitivities.

Ahmedabad-based (Gujarat) UNS was established as partnership firm
as Universal Stainless Suppliers in January 2015 by Mr. Jasmin J
Patel, Mr. Avtar R Patel and Mr. Bharatkumar M Patel. During
April 2015, Mr. Avtar R Patel withdrew his partnership and
another four partners entered as partners. During April 2016, the
name of the firm was changed to Universal Stainless from
Universal Stainless Suppliers. UNS completed a Greenfield project
for manufacturing of Stainless Steel Seamless and Welded Tubes &
Pipes with an installed capacity of 1,480 metric tonnes per annum
(MTPA) during
April 2016 and commenced production from the same month.

During 7MFY17 (Provisional), UNS reported TOI of INR2.40 crore,
PBILDT of INR0.63 crore and PBDT of INR0.10 crore.


UTTAM VALUE: CARE Reaffirms 'D' Rating on INR1,390cr Bank Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Uttam Value Steels Limited.
                                 Amount
   Facilities                 (INR crore)   Ratings
   ----------                 -----------   -------
   Long-term Bank Facilities     640.07     CARE D Reaffirmed
   Short-term Bank Facilities   1390.00     CARE D Reaffirmed

Rating Rationale

The reaffirmation in the ratings assigned to the bank facilities
of Uttam Value Steels Limited (UVSL) is on account of the
continuing delays in the servicing of debt. UVSL incurred heavy
losses in HFY17.

UVSL, previously known as Lloyds Steel Industries Ltd (LSIL), was
incorporated on April 27, 1970, under the name of Gupta Tubes and
Pipes. In July 2012, Uttam group entered into an investment
agreement with LSIL for allotment of 38 crore equity shares on
preferential basis to raise its shareholding to 51.99% and
provide the group with a controlling stake in LSIL for an
additional investment of INR380 crore. The name of the company
was consequently changed from Lloyds Steel Industries Limited
(LSIL) to Uttam Value Steels Limited (UVSL) on March 18, 2013.

UVSL is engaged in the manufacturing of steel products,
engineering equipment and executing turnkey projects. UVSL has
set up a rolling mill with an installed capacity of 1.00 Million
Tonnes Per Annum (MTPA) of Hot Rolled (HR) coil along with
Steel Melting Shop (SMS) to produce 1.08 MTPA of steel through
Electric Arc Furnace (EAF) route. The downstream facilities
include Cold Rolled (CR) coil mill (0.37 MTPA capacity) and
Galvanized Plain (GP)/Galvanized Corrugated (GC) sheets/coil line
(0.25 MTPA capacity). The engineering division located in Murbad,
Thane, Maharashtra, is engaged in steel fabrication, design and
manufacturing of heavy equipments for hydrocarbon, oil & gas,
steel and power plants as well as executing projects on turnkey
basis.

In FY16 (refers to the period April 1 to March 31), the company
reported net loss of INR520 crore (PY: net loss of INR34 crore)
on a total operating income of INR3,780 crore (PY: INR4,598
crore). During 6MFY17, net loss was reported at INR160 crore on a
total operating income of INR1,725 crore as compared with net
loss of INR308 crore on a total operating income of INR2,674
crore during 6MFY16.


VELOX CERAMIC: CARE Revises Rating on INR7.46cr LT Loan to B+
-------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of Velox
Ceramic.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     7.46       CARE B+; Stable
                                            Revised from CARE B

   Long-term Bank Facilities/    1.75       CARE B+; Stable/
   Shortterm Bank Facilities                CARE A4 Revised from
                                            CARE B/CARE A4

The revision in the rating is driven by successful completion of
its project along with stabilization of its operations. The
rating is, however, constrained by weak liquidity position,
leveraged capital structure and moderate debt coverage
indicators along with presence in highly fragmented and
competitive segment with vulnerability of profitability to
fluctuations in prices of raw material. The rating continues to
derive strength from vast experience of promoters in the
ceramic industry, location advantage. Increasing scale of
operations with improvement in profitability and maintaining
comfortable capital structure and debt coverage indicators would
be the key rating sensitivity.

Outlook: Stable
The firm reported total operating income (TOI) of INR10.89 crore
during FY16, while PBILDT margin stood at 17.49% However, due to
higher depreciation and interest costs, the firm reported net
loss of INR0.50 crore during FY16. The gross cash accruals of the
firm stood low at INR1.03 crore.

VLC's working capital cycle stood at 32 days during FY16. The
inventory days stood low at 17 days, the collection period
remained high at 78 days and the creditors period stood at 63
days during FY16. The gross current assets stood at 95 days which
was funded through creditors' and working capital borrowings.

The cash credit utilization remained at 95% for the past 12
months ended on November 30, 2016.

VLC's partners are qualified professionals with more than a
decade of experience in the ceramic industry. Mr. Jayendra
Kanjiya Partner, looks after the finance and marketing related
activities of the company and has experience of working with
ceramic industries in India, Mr. Jay Bhalodiya; Partner looks
after procurement and administration department.


WELLCARE OIL: CARE Hikes Rating on INR2.89cr LT Loan to BB-
-----------------------------------------------------------
CARE revises the LT rating and reaffirms the ST rating of
Wellcare Oil Tools Private Limited.
                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      2.89      CARE BB-; Stable
                                            Revised from B+

   Short-term Bank Facilities     2.00      CARE A4 Reaffirmed

   Long/Short-term Bank           1.00      CARE BB-; Stable/
   Facilities                               CARE A4 Revised/
                                            Reaffirmed from B+/A4

Rating Rationale

The revision in the long-term rating of Wellcare Oil Tools
Private Limited (WOT) factors in the growth in the total
operating income coupled with improvement in capital structure
and operating cycle during FY16 (refers to the period April 1 to
March 31). The ratings continue to draw comfort from the
experienced promoters, moderate profitability margins and WOT's
diversified geographical presence and likely recovery of the end-
user industry. The ratings are, however, constrained by small
scale of operations, working capital intensive nature of
operations and revenue concentration to the oil and gas industry.

Going forward, WOT's ability to scale-up its operations while
improving its profitability margins and capital structure
along with efficient working capital management shall be the key
rating sensitivities.

Established in 2010, WOT was initially incorporated as Wellcome
Oil Tools Private Limited (the name was changed to Wellcare Oil
Tools Private Limited in 2013) and was promoted by Mr. Surender
Yadav and his nephews Mr. Satish Yadav and Mr. Ravinder Yadav.
The company is engaged in the manufacturing oil field drilling
equipment such as liner hanger system, packer & bridge plug,
centralizer & stops collars, floats equipment with its setting
tools and has a total product portfolio of around 250 equipment.
The company sells its products directly to oil & petroleum
companies and to wholesalers. The manufacturing facilities of the
company are located in Alwar, Rajasthan and the product, designs
and processes are API (American Petroleum Institute)-Q1, ISO-
9001, ISO/TS-29001, ISO-14001 and OHSAS-18001 certified. The key
raw material used in manufacturing is solid steel rods, rubber,
etc, which company procures from domestic market.

During FY16 (refers to the period April 1 to March 31), WOT
achieved a total operating income (TOI) of INR26.61 crore with
net profit of INR0.74 crore as against TOI of INR5.83 crore with
net profit of INR0.17 crore for FY15. The company has achieved
TOI of INR12.00 crore for 7MFY16 (refer to the period April 01 to
October 31).


WEST INN: CARE Assigns B+ Rating to INR15cr Long Term Loan
----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of West Inn
Limited.
                              Amount
   Facilities              (INR crore)   Ratings
   ----------               -----------   -------
   Long-term Bank Facilities     15      CARE B+; Stable Assigned


The rating assigned to the bank facilities of West Inn Limited is
constrained on account of its modest scale of operations,
operating losses reported during FY16 (refers to the period
April 1 to March 31) owing high fixed overheads and change in
product mix, erosion in its networth owing to net losses which
resulted in high leverage. The rating also factors in the WIL's
dependence on one hotel and presence in cyclical and highly
competitive hospitality industry.

The rating, however, favorably takes into account WIL's
established track record and vast experience of the promoters in
the hospitality industry. The rating further takes into account
the strategic location of the hotel and its agreement with
Fortune Park Hotel Limited (FPHL) for management of hotel
operations.

WIL's ability to increase its scale of operations by increasing
the average occupancy ratio while maintaining the average room
rates along with efficiently managing its costs to improve its
profitability margins would be the key rating sensitivities.
Weak operating profit margins and erosion in networth led to high
leverage: WIL reported operational losses owing to high fixed
costs coupled with change in sales mix with increase in revenue
from food & beverages leading to higher cost of materials during
the period. Furthermore, tangible networth eroded owing to net
losses reported during FY16 which resulted in deterioration in
overall gearing to 2.66x as on March 31, 2016, as against 1.39x
as on March 31, 2015.

Resourceful promoters with strategically located hotel property:
the promoters have over two decades of experience in the hotel
industry and have been supporting the operations through
needbased infusion of unsecured loans. The hotel operates under
the brand name of "Fortune Landmark" and is located in central
Ahmedabad, thereby benefiting from consistent occupancy levels.



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


TOSHIBA CORP: Biggest Lenders Maintain Conditional Support
----------------------------------------------------------
Nikkei Asian Review reports that Toshiba's main lenders agreed on
Jan. 10 to maintain their financial backing despite the prospects
of a gigantic write-down on U.S. nuclear operations, but
additional capital support will depend on a feasible turnaround
plan.

Nikkei says the Japanese electronics company held an information
session Jan. 10 in Tokyo, explaining to Sumitomo Mitsui Banking
Corp. and other banks how American subsidiary Westinghouse
Electric incurred the crippling losses after acquiring a nuclear
construction business.

According to the report, Toshiba said it is calculating the total
losses from the deal, which the company estimates will run in the
hundreds of billions of yen (100 billion yen equals $863
million). But the group said it expects "no problem" regarding
funding for the fiscal year ending in March, Nikkei says.

After the charges came to light toward the end of December,
Rating and Investment Information downgraded Toshiba shares to
junk status, according to Nikkei. There is now concern that the
rating might violate restrictive covenants at some banks, which
could allow the lender to call loans or take other actions.
Toshiba asked those banks on Jan. 10 not to invoke those
covenants and to maintain their joint financing until the end of
February.  Lenders have until Jan. 23 to accept or reject the
request, Nikkei notes.

Nikkei relates that at the meeting, some smaller regional banks
questioned whether no problems would occur with fundraising or
bond redemptions. But SMBC, Mizuho Bank and Sumitomo Mitsui Trust
Bank -- Toshiba's core lenders -- all agreed to continue backing
the company. Toshiba will hold another information session for
banks after the company announces third-quarter numbers in mid-
February, Nikkei discloses.

Nikkei says deposits and other ready liquidity are projected to
exceed JPY1 trillion at the end of March. This healthy amount
includes the line of available credit from the main lenders,
which surpasses JPY400 billion.

But the huge losses in the U.S. nuclear business will pare the
company's capital base, the report notes. Shareholders' equity
totaled JPY363.2 billion at the end of September, and the
shareholder equity ratio -- a barometer of financial health --
was only a shade above 7%.

However, the prevalent view among the main lenders is that the
risk of Toshiba falling into excess liabilities is small, says
Nikkei.

                          About Toshiba

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 30, 2016, Moody's Japan K.K. downgraded Toshiba
Corporation's corporate family rating (CFR) and senior unsecured
rating to Caa1 from B3.  Moody's has also downgraded Toshiba's
subordinated debt rating to Ca from Caa3, and affirmed its
commercial paper rating of Not Prime. At the same time, Moody's
has placed Toshiba's Caa1 CFR and long-term senior unsecured bond
rating, as well as its Ca subordinated debt rating under review
for further downgrade.

The TCR-AP reported on Jan. 4, 2017, that S&P Global Ratings said
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Toshiba Corp. one notch each, to
'B-' from 'B' and 'B+' from 'BB-', respectively, and has placed
the ratings on CreditWatch with negative implications.  At the
same time, S&P has placed its 'B' short-term corporate credit and
commercial paper program ratings on Toshiba on CreditWatch
negative.



===============
M A L A Y S I A
===============


LFE CORPORATION: Exits PN17 Status After Upliftment
---------------------------------------------------
MIDF Investment announced on Jan. 5 that Bursa Securities vide
its letter dated Jan. 5, 2017, has approved LFE Corporation
Berhad's application for a modification of compliance with
Paragraph 5.2(C) of PN17 of the Main Market Listing Requirements
based on the net profit for the 3-months financial period ended
July 31, 2016, and 3-months FPE Oct. 31, 2016, after the
completion of the implementation of the Company's Regularisation
Plan.

In the same letter, Bursa Securities has noted that LFE has
regularised its financial condition and level of operations and
LFE no longer triggers any of the criteria under paragraph 2.1 of
PN17 of the Main Market Listing Requirements.

After due consideration of all facts and circumstances of the
application, Bursa Securities has decided to approve LFE's
application to Bursa Securities for an upliftment of its PN17
status and that the upliftment of LFE from being classified as a
PN17 company will be effective on Jan. 6, 2017.

LFE Corp slipped into PN17 status on Oct. 1, 2012 after its
shareholders' equity for the financial year ended July 31, 2012
was less than 25% of its issued capital.

Headquartered in Selangor Darul Ehsan, Malaysia, LFE Corporation
Berhad -- http://www.lfe.com.my/-- is an investment holding
company.  Through its subsidiaries, LFE provides general and
specialized electrical and mechanical engineering services and
maintenance works.  LFE also invests in properties and
manufactures electrical busbar trunking sysments, equipment,
components as well as other related electrical products.



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


SIZZLEPOP LIMITED: Collapses Into Liquidation
---------------------------------------------
BusinessDesk reports that Wellington's Habitual Fix on
Featherston Street has been placed into liquidation after seeing
a significant drop in turnover following November's earthquakes,
with the government's business support package not applicable as
it's not within cordoned-off areas of the capital city.

BusinessDesk, citing first report by liquidators ShephardDunphy,
discloses that the business had seen a recent downturn in sales
but the November earthquakes and subsequent office building
closures "had a significant negative impact on the turnover and
viability of the business".

The 67 Featherston St location is close to the 15-storey Asteron
Centre, which houses around 2,500 staff with tenants including
Inland Revenue, Callaghan Innovation and the Civil Aviation
Authority, all of whom were evacuated to temporary offices
following the Kaikoura earthquakes on Nov. 14. The liquidators
were appointed on Dec. 12, BusinessDesk notes.

On Nov. 28, the government had extended an employee support
subsidy for quake-affected businesses, which was provided to
Kaikoura businesses three days after the quake, to Wellington and
Hurunui district businesses which couldn't operate due to cordons
put in place, according to BusinessDesk.

At the time, Joyce said he expected the package to apply to
businesses on Molesworth Street, Tory Street and those in and
around Queensgate Mall in Lower Hutt. That package was extended
on Dec. 23, and is specifically for businesses which cannot move
their operations.

Sizzlepop has an estimated NZ$3,136 in funds available, with the
book value of its fixed assets at NZ$58,050 but the cost to
realise those assets undisclosed, BusinessDesk discloses. Subject
to confirmation, the business owes NZ$343 to secured creditors,
NZ$20,000 to Inland Revenue and NZ$128,493 to unsecured
creditors, with NZ$105,938 of that owed to the shareholders'
current account.

Sizzlepop Limited operated as Habitual Fix in the CBD, selling
salads, sandwiches, wraps, smoothies and juices to local central
business district employees.  Habitual Fix is franchised by the
Mad Group which also franchises the Mad Mex chain. The Habitual
chain has two other stores in Wellington.



=================
S I N G A P O R E
=================


EMAS OFFSHORE: Posts US$2.2 Million Net Loss for Q1 2017
--------------------------------------------------------
The Strait Times reports that Emas Offshore Ltd announced on Jan.
11 a net loss of US$2.2 million (SGD3.2 million) for the quarter
ended Nov. 30, 2016, on the back of lower revenues and flagged
the going concern risk for the company.

For the corresponding period a year ago, Emas made a net loss of
US$3.2 million, the report says.

The company said revenue for the quarter being reported was
15 per cent lower at US$42.5 million compared to revenue of
US$49.8 million a year ago due to continual weakness in the
offshore oil and gas industry leading to lower demand for
offshore support vessels, The Strait Times relates.

"The market is expected to remain extremely challenging for the
rest of FY2017. Daily charter rates are still expected to remain
depressed," the report quotes Emas CEO Captain Adarash Kumar as
saying.

According to the report, Emas said offshore oil and gas
activities have not increased significantly and this trend is
expected to continue and will have a negative impact on the
group's financial performance.

The group continues to execute its plans to improve operational
efficiency and overall fleet utilisation as well as dispose of
non-core assets, the company added.

"We continue to maintain focus on our key geographical markets
which are Asia Pacific and West Africa. This was reflected in the
US$61 million worth of contract awards during Q1FY2017 as
announced earlier," Captain Kumar added, the report relays.

The Strait Times adds that Emas on Jan. 11 also warned of a going
concern issue arising from delays in the settlement of disputes
relating to a US$43 million put option with its collapsed
Malaysian associate Perisai Petroleum Teknologi.

The report relates that Emas said due to uncertainties including
those surrounding PPT's developments, the completion of its
refinancing exercise and obtaining of additional working capital
facilities have been delayed.

"The completion dates of these agreements are currently targeted
to be concluded before the end of the second quarter of financial
year 2017," Emas, as cited by The Strait Times, said. "In the
event that these efforts do not achieve a favourable and timely
outcome, the group will be faced with a going concern issue."

Emas' parent, Ezra Holdings, has also announced recently that it
faces a going concern issue if discussions with various
stakeholders and consolidation of its funding requirements do not
reach a timely outcome. Emas said on Jan. 1 that as Ezra is a
guarantor to its various financial obligations, this development
may have a negative impact on Emas, adds The Strait Times.

Singapore-based EMAS Offshore Limited (SGX:UQ4) --
http://www.emasoffshore.com/home/-- engages in the offering of
offshore support, accommodation and offshore production services
to customers in the offshore oil and gas industry throughout the
oilfield lifecycle, spanning exploration, development, production
and decommissioning stages. It operates through two business
segments: Offshore Support and Accommodation Services division,
and Offshore Production Services division.



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


HANJIN SHIPPING: Trading of Shares Temporarily Suspended
--------------------------------------------------------
The Korea Times reports that Hanjin Shipping was temporarily
suspended from stock trading on Jan. 11.

The report says the brake on Korea's major container company
occurred after the company's stock price soared four days in a
row.

According to The Korea Times, the Korea Exchange warned Jan. 10
that if the rises continued it would push the company, now on a
warning list, off the trading platform.

"Because the company is now considered dangerous for investors,
the hike in its stock price could trigger a temporary suspension
in trading," the report quotes a Korea Exchange monitoring
official as saying.  "If the ascension continues, the company
will see more suspensions."

                      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 to Receive Final Bids This Week
-----------------------------------------------------
Kim Kwang-tae at Yonhap News Agency reports that creditor banks
will receive the final bids to sell Kumho Tire Co. this week, the
main creditor bank Korea Development Bank said on Jan. 11.

The tiremaker's creditors led by KDB are set to receive the final
bids from interested companies Jan. 12. One Indian and four
Chinese firms have submitted preliminary bids, Yonhap relates
citing a person with direct knowledge of the deal.

Nine creditors hold a combined 42.01 percent stake in Kumho Tire,
with Woori Bank and KDB holding 14 percent and 13.5 percent,
respectively, Yonhap discloses.

According to Yonhap, the final auction comes after Kumho Tire
graduated from a debt rescheduling program in 2014. The tire
company was placed under a creditors-led workout program five
years earlier because its parent Kumho Asiana Group was hit hard
by a severe liquidity crunch from the purchase of Daewoo
Engineering and Construction Co., says Yonhap.

Kumho Asiana Chairman Park Sam-koo holds a key in the stake sale
as he has the "right of first refusal," which gives its holder
the option to enter a business transaction with the owner of the
stake, according to specific terms cited by Yonhap.

Yonhap relates that Park holds the right in the capacity of an
individual. He can exercise the right should he accept the offer
price from the creditors, which could reach around KRW1 trillion
(US$833 million).

According to Yonhap, Park, who holds no stake in Kumho Tire, said
in his message for the new year that he wanted to take over Kumho
Tire in order to rebuild his business empire. He did not
elaborate on how he will finance the deal.

"Park plans to exercise his right of first refusal, though the
key is the price," Yonhap quotes a Kumho Asiana official as
saying.  He asked not to be identified, citing the issue's
sensitivity.

In the January-September period, Kumho Tire's net losses widened
to KRW54.9 billion from KRW32.97 billion a year earlier.
Operating profit also plunged to KRW65.3 billion from KRW93.2
billion during the same period, with sales down 4.4 percent year-
on-year to KRW2.16 trillion, Yonhap discloses.

Meanwhile, Yonhap News reports that the KDB plans to accept final
bids next month to sell creditors' stake in Hyundai Cement.
Creditors hold a combined 84.56 percent stake in the cement
company. KDB owns 17.47 percent of it.

About six companies reportedly joined the preliminary bid for
Hyundai Cement, whose debt workout program is scheduled to end at
the end of this year, adds Yonhap.

Yonhap adds that KDB also plans to begin the sale process of
Daewoo Engineering and Construction in March or April if auditors
accept the builder's annual earnings reports as proper.

The sale process to sell Daewoo E&C has been suspended as
auditors refused to give any view over the builder's third-
quarter results last year. Due diligence has yet to be conducted,
says Yonhap.

Kumho Tire Co. Ltd. manufactures tire.  The company's offerings
include tires for sports utility vehicles, passenger cars,
various sizes of trucks and buses and racing cars.  In addition,
the company provides batteries for automobiles.  The company is
part of the Kumho Asiana Group.



===============
X X X X X X X X
===============


* Moody's 2017 Outlook for Asia Pacific Sovereigns Stable
---------------------------------------------------------
Moody's Investors Service says that the 2017 outlook for the
creditworthiness of sovereigns in Asia Pacific is stable overall,
reflecting a mix of credit-supportive and credit-challenging
factors.

Rising income levels and strengthening institutions will offer
support to several sovereign credit profiles in the region.
However, although GDP growth in the region remains relatively
robust, lackluster growth in global trade and capital outflows
may weigh on the credit profiles of those more dependent on
external demand or financing. Given this context, credit outcomes
in 2017 will be determined by the effectiveness of ongoing reform
efforts and the evolution of political risks.

Moody's analysis is contained in its just-released report titled
"Sovereigns - Asia Pacific: 2017 Outlook - Stable Outlook
Balances External, Political Risks Against Economic,
Institutional Reforms".

The report explains that most Moody's-rated sovereigns in Asia
Pacific carry ratings with stable outlooks, but negatives
outlooks outnumber positive ones. Specifically, in terms of the
24 sovereigns that Moody's rates in Asia Pacific, there were 18
stable outlooks as of January 10, 2017, four negative and two
positive.

Moody's further points out that rating actions in 2016 were
overwhelmingly negative, with 10 negative and only one positive
over the course of the year. The sources of shock have varied,
but in 2016, 38% of rated Asia Pacific sovereigns experienced a
decline in their fiscal strength, while for 42%, Moody's sees a
higher susceptibility to event risk when compared with the
situation the year before.

Moody's GDP growth forecasts already take into account
expectations of slow global trade, which are particularly
relevant for export-reliant economies like Hong Kong (Aa1
negative), Korea (Aa2 stable), Singapore (Aaa stable) and Taiwan
(Aa3 stable).

The report points out that in the context of downside risks to
the global growth outlook and the possibility of faster increases
in US interest rates than investors currently assume, capital
inflows to emerging markets could taper abruptly.

Direct exposure to capital flows is highest when financing needs
are large to cover current account or external debt payments. In
Asia Pacific, Mongolia (Caa1 stable), and to a lesser extent, Sri
Lanka (B1 negative), Malaysia (A3 stable) and Indonesia (Baa3
stable), are among the most vulnerable.

In China (Aa3 negative), large official reserves provide ample
external liquidity. However, tighter external financing and
potentially increasing capital outflows could limit the
effectiveness of domestic financial policies.

In addition to external trade and financing pressures, a key
driver of sovereign credit trends will be the policy efforts of
governments themselves. Moody's points out that authorities are
formulating policies that range from those that address acute
near term challenges to those that set the stage for longer-term
improvements in credit profiles. However, capacities to implement
these policies differ across countries as evident in Moody's
scores for Institutional Strength, which vary greatly across the
region.

The capacity of governments to implement measures and the
effectiveness of policies in achieving the respective
governments' objectives will shape the sovereigns' credit
profiles over the coming year. In particular, in India (Baa3
positive), Indonesia (Baa3 stable) and the Philippines (Baa2
stable), ongoing implementation of reforms is likely to boost
medium-term growth.

Moody's notes political risk is unlikely to abate in 2017,
pointing out that latent political risk that prevailed in parts
of APAC has, in some cases, flared up. Were domestic or
geopolitical tensions to escalate, they would exacerbate the
negative credit drivers or derail credit-supportive factors in
the region. For instance, political developments could interfere
with the ability of governments to implement reforms and would
exacerbate the negative growth impact of slower global trade and
capital flow reversals.



                             *********

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 2017.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.



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