TCRAP_Public/170215.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

          Wednesday, February 15, 2017, Vol. 20, No. 33

                            Headlines


A U S T R A L I A

FLEXI ABS 2017-1: Moody's Assigns (P)Ba1 Rating to E Notes
QUEENSLAND NICKEL: Palmer to Sue Malcolm Turnbull, Michaelia Cash
STEP FORWARD: First Creditors' Meeting Slated for Feb. 21
INSTITUTE PTY: First Creditors' Meeting Set for Feb. 20


C H I N A

FUJIAN ZHANGLONG: Fitch Assigns BB+ Rating to USD150MM Notes
HUA HAN: S&P Lowers CCR to 'CCC-' then Withdraws Rating
RONSHINE CHINA: Bond Tap No Impact on Fitch B+ Rating
UNITED PHOTOVOLTAICS: Green Certs. No Impact on Moody's Ratings


H O N G  K O N G

NOBLE GROUP: Confirms Strategic Stake Talks with Investor
ROAD KING: Moody's Assigns B1 Rating to USD Sr. Perpetual Notes


I N D I A

ACHIEVERS BUILDERS: CRISIL Lowers Rating on INR21.82MM Loan to D
B.D TEXTILE: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
B.N. INDUSTRIES: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
BALLARPUR INDUSTRIES: In Advanced Talks With Banks for Funding
BALLARPUR INDUSTRIES: Lenders Plan Debt Recast of Flagship unit

BENCHMARK IT: CRISIL Assigns B+ Rating to INR10MM Term Loan
BHARTIA YARNS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
BHAVYA CONSTRUCTIONS: Ind-Ra Assigns BB- Long-Term Issuer Rating
BHOLA NATH: CRISIL Raises Rating on INR6.02MM Cash Loan to 'B'
BHOLA NATH NARESH: CRISIL Ups Rating on INR3.85MM Cash Loan to B

CRACKERS INDIA: CRISIL Assigns 'C' Rating to INR4.0MM Cash Loan
DEV PRAYAG: CRISIL Upgrades Rating on INR7MM Term Loan to 'B'
DIWANKA ENERGY: CRISIL Reaffirms 'B' Rating on INR7MM Cash Loan
FINE YARNS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'
GARVIT HOSPITALITY: CRISIL Assigns B- Rating to INR13.25MM Loan

HARSHNA FRUITS: CRISIL Upgrades Rating on INR7MM Cash Loan to B
HARSHNA ICE: CRISIL Raises Rating on INR10MM Term Loan to 'B'
IDBI BANK: S&P Lowers ICR to 'BB' on Very Weak Asset Quality
JAI KUMAR: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
KAIZEN COLD: Ind-Ra Assigns 'B' Long-Term Issuer Rating

KHANDELWAL GINNING: CRISIL Reaffirms B+ Rating on INR4.5MM Loan
M K PINE: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
M.R. GUPTA: Ind-Ra Affirms 'BB-' Long-Term Issuer Rating
MADHURI P. RURAL: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
MALHOTRA CONSTRUCTIONS: CRISIL Reaffirms B+ Cash Credit Rating

MANDAR ROLLER: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
MANJEET FIBERS: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
N.S.K. BUILDERS: CRISIL Lowers Rating on INR27MM Bank Loan to D
NEOLITE ZKW: Ind-Ra Raises Long-Term Issuer Rating to 'BB+'
NIMISH SYNTEX: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'

PROGRESS TRADERS: CRISIL Reaffirms B+ Rating on INR5MM Loan
RAMANUJ COTTON: CRISIL Upgrades Rating on INR7.4MM Loan to B+
SERA EXPORTS: CRISIL Reaffirms B+ Rating on INR6MM Pack Loan
SHREYAS INDIA: CRISIL Lowers Rating on INR9.2MM Loan to 'B'
SJP GLOBAL: CRISIL Lowers Rating on INR24MM Term Loan to D

S.G.N. CHARITABLE: CRISIL Reaffirms B Rating on INR7.5MM LT Loan
VIJAYNATH ROOF: CRISIL Upgrades Rating on INR12.8MM Loan to 'B'


I N D O N E S I A

BUKIT MAKMUR: Fitch Assigns BB- Rating to USD350MM Sr. Notes
PAKUWON JATI: Fitch Assigns BB- Final Rating to USD250MM Notes


J A P A N

TOSHIBA CORP: Delays Quarterly Earnings Announcement


M A L A Y S I A

KUANTAN FLOUR: Auditors Raise 'Going Concern' Doubt


S O U T H  K O R E A

MAGNACHIP SEMICON: Moody's Says Improved 2016 Results Credit Pos.


                            - - - - -


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


FLEXI ABS 2017-1: Moody's Assigns (P)Ba1 Rating to E Notes
----------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
notes to be issued by Perpetual Corporate Trust Limited in its
capacity as the trustee of the Flexi ABS Trust 2017-1.

Issuer: Flexi ABS Trust 2017-1

-- AUD 92.00 million A1 Notes, Assigned (P)P-1 (sf)

-- AUD 63.37 million A2 Notes, Assigned (P)Aaa (sf)

-- AUD 50.00 million A2-G Notes, Assigned (P)Aaa (sf)

-- AUD 13.51 million B Notes, Assigned (P)Aa2 (sf)

-- AUD 15.63 million C Notes, Assigned (P)A2 (sf)

-- AUD 10.60 million D Notes, Assigned (P)Baa2 (sf)

-- AUD 6.64 million E Notes, Assigned (P)Ba1 (sf)

The AUD 13.25 million F Notes are not rated by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity.

The transaction is a cash securitisation of a portfolio of
Australian unsecured, retail, 'no interest ever' payment plans,
originated by Certegy Ezi-Pay Pty Ltd, a subsidiary of FlexiGroup
Ltd.

This is FlexiGroup's seventh term-securitisation of Certegy
assets.

RATINGS RATIONALE

The provisional ratings take into account, among other factors,
evaluation of the underlying receivables and their expected
performance, the evaluation of the capital structure, the
availability of excess spread over the life of the transaction,
the liquidity reserve in the amount of 1.50% of the note balance,
the interest rate swaps provided by Commonwealth Bank of
Australia ('CBA', Aa2/P-1/Aa1(cr)/P-1(cr)) and National Australia
Bank Limited ('NAB', Aa2/P-1/Aa1(cr)/P-1(cr)), the experience of
Flexirent Capital Pty Limited as servicer and the back-up
servicing arrangements with Dun & Bradstreet (Australia) Pty
Limited.

Initially, Class A notes (which include Class A1, Class A2 and
A2-G), Class B, Class C, Class D and Class E notes benefit from
22.5%, 17.4%, 11.5%, 7.5% and 5.0% of note subordination,
respectively. The notes will be repaid on a sequential basis
until the later of: (1) repayment of the Class A1 short-term
tranche, and (2) increase in the subordination to Class A notes
to 25% from 22.5%.

The notes will also be repaid on a sequential basis if there are
any unreimbursed charge-offs or the pool amortises to below 10%
of the original balance. At all other times, the structure will
follow a pro-rata repayment profile (assuming pro-rata conditions
are still satisfied).

The transaction features a short-term (P)P-1 (sf) rated tranche,
with a legal final maturity of 12 months from issuance. The
tranche represents 34.7% of the total issuance. Key factors
supporting the (P)P-1 (sf) rating include:

- Principal cashflows -- which will be allocated to the short-
term tranche in priority to other tranches until it is fully
repaid -- will be sufficient to amortise the tranche within the
12-month period. The amortisation is tested with no prepayment
and assuming a P-1-commensurate level of defaults and
delinquencies occurring during the amortisation period.

- The corporate administration and insolvency regime in
Australia and the hot back-up servicing arrangements with Dun &
Bradstreet (Australia) Pty Limited mitigate the risk of a
prolonged servicer disruption. Dun & Bradstreet (Australia) Pty
Limited carries out servicing in parallel with Certegy, providing
near 'hot' levels of support and mitigating risks of a prolonged
servicing disruption.

These two factors are relevant in the context of assigning the
(P)P-1 (sf) rating because FlexiGroup and Certegy are unrated.

MAIN MODEL ASSUMPTIONS

Moody's base case assumptions are a mean default rate of 2.80%,
coefficient of variation (CoV) of 60.0% and a recovery rate of
0.0%. Moody's assumed mean default rate is stressed compared to
the historical levels of 2.38%. The stress addresses lack of
economic stress during the historical data period (2004-2016).

Methodology Underlying the Rating Action

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in
September 2015.

Factors That Would Lead to an Upgrade or Downgrade of the
Ratings:

Up

Levels of credit protection that are greater than necessary to
protect investors against current expectations of loss could lead
to an upgrade of the rating. Moody's current expectations of loss
could be better than its original expectations because of fewer
defaults by underlying obligors. The Australian job market is a
primary driver of performance.

Down

Levels of credit protection that are insufficient to protect
investors against current expectations of loss could lead to a
downgrade of the ratings. Moody's current expectations of loss
could be worse than its original expectations because of more
defaults by underlying obligors. The Australian job market is a
primary driver of performance. Other reasons for worse
performance than Moody's expects include poor servicing, error on
the part of transaction parties, a deterioration in credit
quality of transaction counterparties, lack of transactional
governance and fraud.

Moody's Parameter Sensitivities

If the default rate rises to 4% (1.4 times Moody's assumption of
2.8%) then the model-indicated rating for the Class A2 Notes
drops two notches to Aa2. Similarly, the model-indicated rating
for the Class B Notes, Class C Notes, Class D Notes and E Notes
drop four, three, three and three notches to A3, Baa2, Ba2 and B1
respectively under this scenario.


QUEENSLAND NICKEL: Palmer to Sue Malcolm Turnbull, Michaelia Cash
-----------------------------------------------------------------
Tracey Ferrier at the Australian Associated Press reports that
Clive Palmer said he will sue Prime Minister Malcolm Turnbull and
Employment Minister Michaelia Cash for defamation over "lies"
about his role in the collapse of Queensland Nickel.

AAP relates that the former federal MP said he is seeking AUD10
million in damages from the prime minister.

He is also pursuing a defamation case against Employment Minister
Michaelia Cash for allegedly besmirching his reputation over
Queensland Nickel, which collapsed last year with debts of about
AUD300 million and the loss of 800 Townsville refinery jobs, AAP
says.

According to the report, Mr. Palmer is seeking AUD250,000 in
damages from Senator Cash, but has offered to shave AUD100,000
off that if she publicly apologizes to him for assassinating his
character.

AAP relates that Mr. Palmer - who'll face a court grilling today,
Feb. 15 about the collapse - said he won't let his former
political foes get away with dragging down his reputation as a
businessman who saved the nickel company back in 2009, at the
request of the Queensland government.

"They've lied to people about Queensland Nickel and my role in
it. They've said things designed to damage me, personally, in the
public's eyes, which were not true and they did that for
political reasons," Mr. Palmer told AAP on Feb. 14.

He said he'd been the victim of "the biggest political witch hunt
Australia has ever seen", and that the public attacks on him were
designed to destroy him and his party as players on the political
landscape, says the report. "Ms Cash will have her day in court,
and the prime minister will too, unless he thinks he's above the
law."

The report says a search of civil proceedings lodged with
Queensland's courts showed Mr. Palmer's lawyers have not yet
submitted any paperwork for the promised law suits. AAP has
sought comment from the prime minister and Senator Cash.

AAP states that Mr. Palmer opted not to recontest his Sunshine
Coast seat of Fairfax at the last election, after opinion polls
suggested support for him was almost non-existent in the
aftermath of Queensland Nickel's demise in January 2016.

According to the report, the former MP is due in the Federal
Court today, where the nickel company's liquidators will quiz him
about how the company was run.  The report relates that Mr.
Palmer has denied acting as a shadow director, and he's defended
himself against claims he raided Queensland Nickel's bank
accounts to fund his other businesses and even his political
party.

During his first court examination last year, Mr. Palmer admitted
he had the authority to direct Queensland Nickel to make
political donations, support his other companies, and even
forgive loans, AAP recalls.  But he said there was nothing
untoward about any of that, given Queensland Nickel was owned by
companies that belonged entirely to him.

                      About Queensland Nickel

Queensland Nickel operates the Palmer Nickel and Cobalt Refinery
in Queensland, Australia.  Queensland Nickel directors appointed
John Park, Stefan Dopking, Kelly-Anne Trenfield and Quentin Olde
of FTI Consulting as voluntary administrators on Jan. 18, 2016.

FTI went from being administrators to liquidators at the second
creditors meeting in April, after issuing a damning report into
Queensland Nickel's finances, The Courier-Mail reported.


STEP FORWARD: First Creditors' Meeting Slated for Feb. 21
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Step
Forward Investments (Australia) Pty Ltd will be held at the
offices of Jirsch Sutherland, Level 12, 460 Lonsdale Street, in
Melbourne, on Feb. 21, 2017, at 11:00 a.m.

Malcolm Kimbal Howell of Jirsch Sutherland was appointed as
administrator of Step Forward on Feb. 9, 2017.


INSTITUTE PTY: First Creditors' Meeting Set for Feb. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of The
Institute Pty Ltd will be held at Level 43, 600 Bourke Street, in
Melbourne, Victoria, on Feb. 20, 2017, at 11:00 a.m.

George Georges and John Lindholm of Ferrier Hodgson were
appointed as administrators of The Institute Pty on Feb. 10,
2017.



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C H I N A
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FUJIAN ZHANGLONG: Fitch Assigns BB+ Rating to USD150MM Notes
------------------------------------------------------------
Fitch Ratings has assigned Fujian Zhanglong Group Co., Ltd.'s
(Zhanglong, BB+/Stable) USD150 million tap of its 4.5% senior
unsecured notes due 2019 a final rating of 'BB+'.

The tap issuance will carry the same terms and conditions as the
earlier USD150m issuance of notes.

KEY RATING DRIVERS
The notes are issued directly by Zhanglong and are rated at the
same level as its Issuer Default Rating. The notes constitute
Zhanglong's direct, unconditional, unsubordinated and unsecured
obligations and rank at least pari passu with all its other
present and future unsecured obligations.

The assignment of the final rating follows the receipt of
documents conforming to information already received and the
final rating is in line with the expected rating assigned on 24
January 2017.

Zhanglong is wholly owned by the Zhangzhou State-Owned Assets
Supervision and Administration Commission (SASAC) and is
supervised by Zhangzhou municipality.

Zhanglong's ratings are credit-linked with, but not equalised to,
Fitch's internal credit assessment of Zhanglong municipality.
This link reflects strong municipal control and oversight, mid-
range assessment of Zhanglong's strategic importance to the
municipality, integration with the government budget and legal
status. These factors result in a high likelihood of
extraordinary support, if needed, from the municipality.

The municipality monitors Zhanglong's major project investments
and financing plans. The company has also been receiving
subsidies from the municipality and more than CNY800m in other
receivables were due from government entities as at end-2015.

As one of the municipality's largest investment and financing
vehicles, Zhanglong plays an important role in the city's daily
operations and development. It is the city's sewage treatment
service provider and its major water supplier to urban areas. It
is also a designated agency for sourcing building materials for
certain local government-owned housing and infrastructure
projects.

RATING SENSITIVITIES
Any rating action on Zhanglong's Issuer Default Rating would
result in similar rating action on the US dollar notes.


HUA HAN: S&P Lowers CCR to 'CCC-' then Withdraws Rating
-------------------------------------------------------
S&P Global Ratings said it lowered the long-term corporate credit
rating on Hua Han Health Industry Holdings Ltd. to 'CCC-' from
'CCC' with a negative outlook.  At the same time, S&P lowered the
long-term issue rating on China-based pharmaceutical and hospital
services provider's senior unsecured notes to 'CCC-' from 'CCC'.
In addition, S&P lowered the long-term Greater China regional
scale ratings on Hua Han and the notes to 'cnCCC-' from 'cnCCC'.
S&P also removed the ratings from CreditWatch, where they were
placed with negative implications on Aug. 17, 2016.

"We subsequently withdraw all the ratings on Hua Han Health
Industry due to heightened information risks," said S&P Global
Ratings credit analyst Clifford Kurz.

"We lowered the ratings because we are still unclear about Hua
Han's capacity to make its near-term debt repayments on time.
The impact of a suspension of audit work on the company last year
is also uncertain," S&P noted.

The ratings withdrawal reflects S&P Global Ratings' view that
information risk remains high, given the company's unknown and
unverified financial position.  S&P no longer believes it has
access to timely, reliable, and sufficient information for
maintaining the rating.

At the time of the rating withdrawal, the negative outlook
reflected S&P's view that the company's operations and liquidity
could deteriorate further.


RONSHINE CHINA: Bond Tap No Impact on Fitch B+ Rating
-----------------------------------------------------
Fitch Ratings says Ronshine China Holdings Limited's (B+/Stable)
proposed tap of its existing USD175 million 6.95% senior notes
due 2019 will not affect the 'B+' rating and Recovery Rating of
'RR4' on the bond.

The proposed and existing notes will carry the same terms and
conditions, and they are rated at the same level as Ronshine's
senior unsecured rating because they constitute its direct and
senior unsecured obligations.

China-based Ronshine's ratings are supported by its quality land
bank that drives its expanding scale, with strong contracted
sales growth and better margin relative to its rated peers. Its
recent land acquisitions in Hangzhou and Shanghai have further
strengthened its land quality.

However, Fitch expects leverage to remain high at 50%-55%, as
Ronshine will need to use about 50%-60% of its contracted sales
proceeds each year to acquire new land to sustain its contracted
sales scale of about CNY20bn-30bn a year in the next three years.
Leverage declined to 45% at end-June 2016, from 65% at end-
December 2015, following its IPO and strong sales in 1H16.

Ronshine's ratings are constrained by its aggressive financial
strategy and uncertain government policy that Fitch believes may
affect the profitability of projects built on its more expensive
recently-acquired land.

Ronshine's land bank is of high quality, focusing on first- and
second-tier cities such as Fuzhou, Hangzhou, Shanghai and Xiamen,
which together make up 88% of its land bank by value and 82% by
gross floor area (GFA) as of end-June 2016. Fitch believes
Ronshine can sustain contracted sales of CNY20bn-30bn a year
given the strong housing market conditions in these cities, and
achieve satisfactory EBITDA margin of over 20% in the next two
years.

Ronshine has attributable land bank of 6 million square metres as
at end-June 2016, sufficient for development in the next three to
four years based on its development schedule. Fitch believes
Ronshine will need to constantly replenish its land bank at
market prices, mainly from land auctions. It acquired 14 parcels
of land at attributable costs of about CNY20bn during 2016. Sharp
increases in housing prices for most projects Ronshine acquired
on or before June 2016 mitigate the effects that uncertain
government policy may have on the pace at which it sells these
projects.


UNITED PHOTOVOLTAICS: Green Certs. No Impact on Moody's Ratings
---------------------------------------------------------------
Moody's Investors Service says that the introduction of green
certificates in China's (Aa3 negative) renewable energy sector
will likely lower the tariffs on wind and solar power in the near
term, but support the further development of the sector in the
longer term by easing curtailment.

The new measures will have no immediate impact on the ratings and
outlook of the two wind and solar power producers rated by
Moody's, China Longyuan Power Group Corporation Ltd. (A3 stable)
and United Photovoltaics Group Limited (United PV, Ba3 stable).

On February 3, China's National Development and Reform Commission
(NDRC) announced a pilot program for issuance of green
certificates to solar and wind power producers, each certificate
representing 1MWh of electricity output.

Power producers can sell the certificates to buyers such as coal-
fired power producers, grid operators, and corporates to evidence
their use of clean energy. The price for the certificates will be
determined by bilateral negotiation or competitive bidding, and
is capped at the level of the subsidy currently received by power
producers.

Solar and wind power producers who sell their green certificates
will no longer receive government subsidies for the renewable
energy generation that is linked to the green certificate. Wind
and solar producers currently receive a benchmark tariff and a
subsidy to cover the difference between this higher tariff and
the tariff for coal-fired power generation.

However, because renewable energy companies may need to sell the
certificates at prices below the current subsidy in order to
attract demand, the certificates could effectively result in a
tariff reduction. Nevertheless, price volatility from speculation
is unlikely for the green certificates because resale of the
certificates will be not permitted.

The scheme will commence on voluntary basis on 1 July, and the
NDRC has indicated it may make the scheme mandatory from 2018.
However, Moody's does not expect an active trading volume during
the pilot period, in the absence of clear incentives for both
sellers and buyers.

Renewable energy companies -- the sellers -- lack incentive to
sell the green certificates, as the lower prices compared to the
subsidy could reduce their revenue. This may be different for
companies exposed to lengthy collection periods of up to 12
months for renewable subsidies, and who may opt to sell green
certificates to improve their liquidity.

At the same time, coal-fired power producers - likely the major
buyers of green certificates - lack incentive to incur additional
expenses to acquire the green certificates, amid margin pressure
following the rally in coal prices and reduced utilization hours
at power plants.

Despite these near-term challenges, Moody's believes the green
certificates will support the development of the renewable energy
sector in the longer term, in particular by addressing
curtailment.

The new mechanism provides an alternative to improving the share
of renewable energy in the country's total power generation mix
without increasing installed capacity, which avoid further
pressure on existing overcapacity.

Demand for green certificates will over time be supported by the
requirement for coal-fired power producers to increase their
exposure to clean energy in the medium term. According to
guidelines issued by the National Energy Administration in April
2016, power producers are required to increase the share of non-
hydro clean energy in their power generation to at least 9% by
2020. In addition, individual consumption targets are also set
for each of the 31 provinces at levels ranging from 5% to 13%.

Moody's will monitor the implementation of the green certificate
mechanism, and assess the potential impact on the rated power
companies as more details on the execution mechanism become
available.



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


NOBLE GROUP: Confirms Strategic Stake Talks with Investor
---------------------------------------------------------
Javier Blas and Livia Yap at Bloomberg News report that Noble
Group Ltd. surged the most in over a year after it said it's in
discussions with a strategic investor, which people familiar with
the talks identified as China's Sinochem Group.

Noble rose as much as 17 percent in Singapore, its biggest gain
since October 2015, says Bloomberg. The company is discussing a
strategic investment, Bloomberg relates citing a Feb. 13
statement that didn't refer to Sinochem.

Bloomberg notes that any tie-up would deepen Noble's relationship
with the world's biggest consumer of resources. China Investment
Corp, the nation's sovereign wealth fund, is already one of
Noble's largest shareholders, while food company Cofco Corp.
agreed to buy Noble's remaining stake in its agriculture unit in
2015, Bloomberg discloses. Cofco's former chairman, Frank Ning,
now holds the same post at Sinochem, a state-owned oil and
chemicals group.

"I think it makes sense for the Chinese 'deep pocket buyers' to
try to take this opportunity to gain exposure to the global
supply chain," Bloomberg quotes Margaret Yang, a market analyst
at CMC Markets in Singapore, as saying by e-mail. Noble is
"deeply trapped in both internal and external challenges" and a
Sinochem purchase "would not only alleviate its liquidity
problem, but also enhance the company's credit profile and
reinstate investors' confidence," she said.

Bloomberg relates that the conversations between Sinochem and the
Hong Kong-based trading house are still at an early stage, the
people familiar with the talks said on Feb. 13, asking not to be
named because the discussions are private. The Chinese group is
interested in the international energy trading business of Noble,
which includes oil, coal and natural gas.

"No binding arrangements have as yet been entered into with
respect to this possible transaction and, accordingly, there can
be no assurance that this transaction will be concluded," Noble
said in its statement.

Noble Chairman Richard Elman told Bloomberg last year that the
company was looking for a strategic investor after it raised
AUD500 million in fresh equity in June.

"A strategic partner is still very possible," Mr. Elman, who is
due to stand down later this year, said in an interview at the
company's headquarters in September. "But it has to be at the
right time and the right candidate."

Noble feels it's now in a stronger position to negotiate a deal
for a strategic investor, with its equity price stabilizing and
bond prices rising strongly, according to one of the people cited
by Bloomberg.

The yield of Noble's bond maturing in 2020, which moves inversely
to its price, fell last week below the key 10 percent level for
the first time in more than a year, compared with an all-time
high of more than 35 percent in January 2016, Bloomberg says.

                         About Noble Group

Hong Kong-based Noble Group Limited (SGX:N21) --
http://www.thisisnoble.com/-- engages in supply of agricultural,
industrial and energy products. The Company supplies agricultural
and energy products, metals, minerals and ores .Agriculture
products include grains, oilseeds and sugar to palm oil, coffee,
and cocoa. Energy business includes coal, gas and liquid energy
products. In metals, minerals and ores (MMO), it supplies iron
ore, aluminum, special ores and alloys. The Company operates
nearly in 140 locations. It supplies growth demand markets in
Asia and Middle East. Alcoa World Alumina and Chemicals is the
subsidiary of this company.

As reported in the Troubled Company Reporter-Asia Pacific on
on Oct. 13, 2016, Moody's Investors Service said that Noble Group
Limited's announced sale of its Noble Americas Energy Solutions
business (NAES, unrated) to Calpine Corporation (Ba3 stable) is
credit positive.

At the same time, the proposed transaction has no immediate
effect on Noble's B2 corporate family rating and senior unsecured
bond ratings, or the (P)B2 provisional rating on its senior
unsecured medium-term note (MTN) program.  The rating outlook
remains negative.


ROAD KING: Moody's Assigns B1 Rating to USD Sr. Perpetual Notes
---------------------------------------------------------------
Moody's Investors Services has assigned a B1 senior debt rating
to the proposed USD senior perpetual capital securities to be
issued by RKP Overseas Finance 2016 (A) Limited and guaranteed by
Road King Infrastructure Limited (B1 stable) and some of its
subsidiaries

The outlook on the rating is stable.

Road King plans to use the proceeds from the proposed USD senior
perpetual securities primarily for general corporate purposes.

RATINGS RATIONALE

"Although the proposed USD senior perpetual securities will
increase Road King's debt level in 2017, Moody's expects its
credit metrics will remain supportive of its B1 ratings in the
next 12-18 months," says Anthony Lee, a Moody's Analyst and the
Lead Analyst for Road King.

Moody's expects Road King to recognize better revenue and profit
in the next 12-18 months, reflecting the strong growth in
contracted sales and higher average selling prices it recorded in
2016.

As a result, Road King is expected to attain adjusted
revenue/debt and EBIT interest coverage ratios of around 70%-80%
and 3.0x-3.5x, respectively. Such levels will support its B1
rating level.

Moody's views the proposed perpetual securities as pure debt
instruments and accordingly does not apply any equity treatment
to these securities.

The B1 rating for the perpetual securities reflects the following
factors:

(1) the perpetual securities will be irrevocably and
unconditionally guaranteed by Road King, which implies that the
rating on the perpetual securities is closely linked to Road
King's rating; and

(2) the securities will at all times rank pari passu with all
other present and future unsecured and unsubordinated obligations
of Road King.

However, the rating on the perpetual securities could be lowered-
relative to the company's senior unsecured rating-if debt with
deferral features becomes a substantial portion of its capital
structure, or if Moody's expects the company will defer many
payments in advance of default.

Road King's B1 corporate family rating reflects its track record
in property development and cautious approach to land
acquisitions and financial management. As a result, the company
has maintained adequate liquidity throughout the cycles.

The rating also factors in the stable cash flow from its toll
road investments and stable debt leverage.

On the other hand, the rating is constrained by the company's
small scale and the geographic concentration of its land bank.

The outlook on Road King's corporate family rating is stable,
reflecting Moody's expectation that Road King will maintain its
prudent financial management while growing its property
development and toll road businesses, thereby preserving stable
credit metrics and an adequate liquidity position.

Upward rating pressure could emerge if Road King: (1) grows in
scale without sacrificing its profit margins; (2) grows its toll
road dividends and improves interest coverage through recurring
income, such that its interest coverage exceeds 0.5x-0.6x on a
sustained basis; (3) maintains stable credit metrics, with
EBIT/interest above 3.0x and revenue-to-debt at or above 80%; and
(4) maintains its adequate liquidity position, with cash/short-
term debt above 1.0x on a sustained basis.

On the other hand, Road King's rating could face downward
pressure if: (1) its liquidity position deteriorates due to
weaker sales, aggressive land acquisitions, or delays in its
refinancing plans; (2) dividends from its toll roads fall, such
that interest coverage from recurring income falls below 0.35x;
or (3) the operating performance of its property segment
deteriorates, such that its gross margin falls below 20% on a
sustained basis.

Credit metrics indicative of downward pressure include
EBIT/interest below 2.5x or revenue/debt below 65% on a sustained
basis.

The principal methodology used in this rating was Homebuilding
And Property Development Industry published in April 2015.

Listed in Hong Kong, Road King Infrastructure Limited invests in
toll road projects comprising eight major expressways and
highways across five provinces in China: Anhui, Hebei, Hunan,
Jiangsu and Shanxi. In addition, it had a property development
portfolio with a land bank of 5.5 million square meters at 30
June 2016 across the eight provinces and municipalities of
Beijing, Shanghai, Tianjin, Henan, Hebei, Shandong, Jiangsu and
Guangdong.



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


ACHIEVERS BUILDERS: CRISIL Lowers Rating on INR21.82MM Loan to D
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Achievers Builders Private Limited to 'CRISIL D' from 'CRISIL
BB-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan              21.82      CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

The downgrade reflects delays in servicing instalments on term
loan on account of slow booking of flats and delay in receiving
customer advances.

Key Rating Drivers & Detailed Description
Weaknesses
* Delay in Debt servicing
The rating downgrade reflects instances of delay in debt
servicing by ABPL. The delays have been caused on account of weak
liquidity caused by lower booking of flats and slower receipt of
customer advances

* Exposure to demand-related risks: On average, the company
receives two bookings per month. However, overall slowdown in the
real estate industry has limited booking flow. Also, projects are
exposed to intense competition.

* Susceptibility to risks and cyclicality inherent in the Indian
real estate industry: The real estate sector in India is cyclical
and marked by volatile prices, opaque transactions, and a highly
fragmented market structure because of many regional players.
Moreover, multiplicity of property laws and non-standardised
regulations across states are likely to affect tenure of project
implementation. The risk is compounded by aggressive completion
timelines and shortage of manpower (project engineers and skilled
labour). Absence of regulatory certifications on land titles also
exposes real estate developers to legal risks. Moreover, high
transaction costs discourage development of a robust secondary
market, leading to liquidity risks.

Strengths
* Extensive experience of promoters and established track record:
The promoters have been in the real estate business for 25 years
and have completed both residential and commercial projects in
Faridabad.

* Limited exposure to implementation and funding risks: ABPL is
constructing three residential projects - Status Enclave,
Gardenia, and Low Rise - and one commercial project, Center
Point. Construction for all the projects is completed and there
is no major funding requirement, apart from servicing term debt.
Funding risk is also mitigated by financial support from
promoters.

Incorporated in March 1999 and promoted by Mr. J L Bhatia and Mr.
Vijay Bhardwaj and their family members, ABPL undertakes real
estate development in Faridabad.


B.D TEXTILE: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed B.D Textile
Mills Pvt Ltd's (BDT) Long-Term Issuer Rating at 'IND BB'.  The
Outlook is Stable.  The instrument-wise rating action is:

   -- INR230 mil. Fund-based facilities affirmed at IND
      BB/Stable/IND A4+ rating

                        KEY RATING DRIVERS

Ind-Ra has taken a consolidated view of the business and
financials of the two group companies BDT and Bachraj Weaving &
Manufacturing Mills Private Limited for the rating review, since
Bachraj had given a corporate guarantee to BDT for the rated
loan.

The affirmation reflects the group's moderate credit profile.  On
a consolidated basis, revenue was INR1.554 billion in FY16 (FY15:
INR1.577 billion) and INR1.161 billion in 9MFY17.  Net financial
leverage (total adjusted debt net of cash/EBITDA) deteriorated to
5x in FY16 (FY15: 4.5x) on account of an increase in other debt
while interest coverage (operating EBITDA/gross interest expense)
remained stable at 1.6x (1.6x) because the debt was non-interest
bearing.  The other debts were loans borrowed from shareholders
and relatives of INR83 million in FY16 for the completion of
capex for an effluent treatment plant.  EBITDA margin improved
marginally to 4.5% in FY16 (FY15: 4.3%) on account of an
improvement in the variable cost.

The ratings also factor in the group's moderate net cash
conversion cycle (FY16: 110 days, FY15: 106 days) mainly due to a
decline in creditor days.

The ratings, however, are supported by the promoters' four-
decade-long experience in the textile manufacturing business.
Furthermore, Group use of the working capital limits was
comfortable at 81% for the 12 months ended January 2017.

                       RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and EBITDA
margin leading to a sustained improvement in the credit metrics
will be positive for the ratings.

Negative: Any deterioration in the EBITDA margin leading to
sustained deterioration in the credit metrics could be negative
for the ratings.

COMPANY PROFILE

BDT was incorporated in 1988 and is a promoter-driven company.
It is engaged in the processing and marketing of woven fabric.
The company has a manufacturing unit in Rajasthan with an
installed capacity of mercerising 100,000m of cotton and cotton
blended fabric per day.

Bachraj was incorporated in 2003 as a major step towards the
group's strategy of backward integration.  Its core activity is
weaving. Bachraj has a 25,000m per day plant in Bhiwandi.  The
unit spread over a floor space of 100,000sf and is the latest in
technology.

BDT reported revenue of INR1.017 billion in FY16 (FY15: INR1.050
billion) with EBITDA margin of 5.6% (4.8%) and revenue of INR783
million in 9MFY17.  It has an order book of INR48.09 million,
which will be executed by March 2017.


B.N. INDUSTRIES: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed B.N. Industries'
(BNI) Long-Term Issuer Rating at 'IND B+'.  The Outlook is
Stable. The instrument-wise rating actions are:

   -- INR65 mil. Fund-based limits affirmed at IND B+/Stable/IND
      A4 rating; and

   -- INR30 mil. Non-fund-based limits affirmed at IND A4 rating

                        KEY RATING DRIVERS

The affirmation reflects BNI's continued low revenue base and
weak credit metrics.  In FY16, revenue was INR135 million (FY15:
INR221 million), interest coverage (operating EBITDA/gross
interest expenses) was 1.3x (1.1x) and net financial leverage
(total adjusted net debt/operating EBITDAR) was 6.7x (3.9x).
EBITDA margin improved to 15.7% in FY16 (FY15: 13.4%) on account
of a decrease in raw material cost.  As of December 2016, BNI
achieved revenue of INR142 million.

The ratings are constrained by the firm's weak liquidity position
as reflected by the average use of working capital limits of
101.26% during the 12 months ended January 2017, with few
instances of overutilization which were regularized within five
days.  BNI had a long net working capital cycle of 339 days in
FY16 (FY15: 180 days), mainly on account of high inventory period
of 449 days (235 days) resulting from high work-in-progress and
finished goods inventory.

The ratings are, however, supported by BNI's promoters' over 25
years of experience in the industrial chemicals manufacturing
business.

                        RATING SENSITIVITIES

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

Negative: Deterioration in the liquidity position will be
negative for the ratings.

COMPANY PROFILE

Incorporated in 1989, BNI is a partnership firm engaged in
manufacturing of zinc oxide, zinc sulphate, copper ingots, brass
metallic/ingots and zinc powder at its Daman facility.

The firm is promoted by Ashwani Kumar Singhal, Animesh Singhal,
Abhishek Singhal and Ritesh Singhal.


BALLARPUR INDUSTRIES: In Advanced Talks With Banks for Funding
--------------------------------------------------------------
LiveMint reports that the debt-laden Ballarpur Industries Ltd
(BILT) is in advanced stage of talks with banks for various
options, including infusion of private equity funding, for itself
and its subsidiaries.

"The company is in discussions with banks for various options,
including infusion of private equity funding, at the levels of
the company and/or its subsidiaries which are in advanced
stages," the company said in a regulatory filing.

LiveMint relates that clarifying on reports that banks are
planning to take over its flagship unit by invoking strategic
debt restructuring, it said: "There are no firm proposals or
decisions so far." The company, which manufactures paper and
paper products, said it will "make appropriate disclosure of the
same once discussions are crystalised and the board of directors
confirms a decision".

LiveMint says BILT is reported to be saddled with an estimated
consolidated debt of over INR6,000 crore.

For the third quarter ended December 2016, BILT had reported a
net loss of INR327.5 crore, the report discloses. Its net sales
were also down at INR347.56 crore, from INR1,066.06 crore
previously. In July last year, Ballarpur Industries had reported
that its $500 million deal to sell 98.08% stake in Malaysia's
Sabah Forest Industries (SFI) to Pandawa Sakti has fallen
through, recalls LiveMint.

                     About Ballarpur Industries

Ballarpur Industries Limited (BILT) is engaged primarily in the
business of manufacturing of writing and printing (W&P) paper,
pulp and paper products. The Company operates through two
business blocks: one under BILT and one under its step-down
subsidiary Bilt Paper. Under the standalone entity, BILT, the
direct assets include Specialty paper business operating from the
Shree Gopal facility in Haryana; Rayon Grade Pulp business
operating from Kamalapuram in Andhra Pradesh, and Tissue paper
business operated through its subsidiary, Premier Tissues (India)
Limited. The Company's other block of businesses comes under Bilt
Paper BV, which focuses on the woodfree printing and writing
paper, coated and uncoated. The Company's manufactured products
are sold primarily within India. Its writing and printing paper
manufacturing operations has over four production units across
India, including Ballarpur (Maharashtra), Bhigwan (Maharashtra),
Sewa (Odisha) and Ashti (Maharashtra).

As reported in Troubled Company Reporter-Asia Pacific on
Feb. 2, 2017, Fitch Ratings has downgraded the Long-Term Issuer
Default Ratings on India-based paper maker Ballarpur Industries
Limited and its subsidiary Bilt Paper B.V. to 'CCC', from 'B-'
and maintained the ratings on Rating Watch Negative (RWN).

Fitch downgraded BILT and placed it on RWN on 29 July 2016, based
on its deteriorating credit profile and significant refinancing
risks for upcoming debt maturities. BILT said in July 2016 it was
in talks to sell two of its Indian units, which would improve
liquidity, but the company has not made material progress on the
transaction. BILT's liquidity has worsened since Fitch's previous
downgrade, and operations were curbed due to inadequate working
capital, In addition, without an asset sale, there is greater
risk it will not be able to address debt maturities, resulting in
the downgrade to 'CCC'.

The company is aggressively pursuing several options to secure
funding and monetise assets to meet its repayment obligations.
The RWN reflects the risk that the company would have exhausted
almost all possible remedies to avoid a debt default or
restructuring if the current negotiations are delayed or fail. If
BILT's latest efforts do not conclude favorably within six
months, Fitch will take further negative rating action.


BALLARPUR INDUSTRIES: Lenders Plan Debt Recast of Flagship unit
---------------------------------------------------------------
The Economic Times reports that lenders to Ballarpur Industries
have proposed to invoke strategic debt restructuring (SDR) and
seize control of the flagship unit of the company that
contributes as much as 85% of the operating profits of its
publicly traded parent, said officials in the know.

A consortium of lenders led by Axis Bank have proposed to invoke
the SDR at BILT Graphic Paper Products, a stepdown subsidiary of
BILT, which has loans amounting to over INR4,000 crore as the
paper manufacturer struggles to operate manufacturing plants due
to a working capital crisis, ET discloses.

According to ET, the SDR, if approved, could give the lender
consortium that includes ICICI Bank, Standard Chartered, Rabo,
Goldman Sachs and IndusInd Bank among others a majority stake in
the company. Axis Bank leads the consortium. The proposal for the
SDR was discussed at a meeting of the joint lenders forum (JLF)
in the last week of December and subsequently at a meeting of the
board of directors of BILT on Feb. 8, said people directly aware
of the matter.

A spokesperson for BILT did not respond to emailed queries till
press-time, while a spokesperson for Axis Bank declined to
comment when contacted by ET.  The report notes that the Reserve
Bank of India's guidelines for strategic debt restructuring
stipulate that 75% of creditors by value and 60% of creditors by
number must approve an SDR before it is invoked. The guidelines
further state that lenders may convert a part or the entire
portion of their debt into equity of at least 51% in the borrower
company and that the JLF lenders should divest their holdings as
soon as possible, ET adds.

Ballarpur Industries Limited (BILT) is engaged primarily in the
business of manufacturing of writing and printing (W&P) paper,
pulp and paper products. The Company operates through two
business blocks: one under BILT and one under its step-down
subsidiary Bilt Paper. Under the standalone entity, BILT, the
direct assets include Specialty paper business operating from the
Shree Gopal facility in Haryana; Rayon Grade Pulp business
operating from Kamalapuram in Andhra Pradesh, and Tissue paper
business operated through its subsidiary, Premier Tissues (India)
Limited. The Company's other block of businesses comes under Bilt
Paper BV, which focuses on the woodfree printing and writing
paper, coated and uncoated. The Company's manufactured products
are sold primarily within India. Its writing and printing paper
manufacturing operations has over four production units across
India, including Ballarpur (Maharashtra), Bhigwan (Maharashtra),
Sewa (Odisha) and Ashti (Maharashtra).

                     About Ballarpur Industries

Ballarpur Industries Limited (BILT) is engaged primarily in the
business of manufacturing of writing and printing (W&P) paper,
pulp and paper products. The Company operates through two
business blocks: one under BILT and one under its step-down
subsidiary Bilt Paper. Under the standalone entity, BILT, the
direct assets include Specialty paper business operating from the
Shree Gopal facility in Haryana; Rayon Grade Pulp business
operating from Kamalapuram in Andhra Pradesh, and Tissue paper
business operated through its subsidiary, Premier Tissues (India)
Limited. The Company's other block of businesses comes under Bilt
Paper BV, which focuses on the woodfree printing and writing
paper, coated and uncoated. The Company's manufactured products
are sold primarily within India. Its writing and printing paper
manufacturing operations has over four production units across
India, including Ballarpur (Maharashtra), Bhigwan (Maharashtra),
Sewa (Odisha) and Ashti (Maharashtra).

As reported in Troubled Company Reporter-Asia Pacific on
Feb. 2, 2017, Fitch Ratings has downgraded the Long-Term Issuer
Default Ratings on India-based paper maker Ballarpur Industries
Limited and its subsidiary Bilt Paper B.V. to 'CCC', from 'B-'
and maintained the ratings on Rating Watch Negative (RWN).

Fitch downgraded BILT and placed it on RWN on 29 July 2016, based
on its deteriorating credit profile and significant refinancing
risks for upcoming debt maturities. BILT said in July 2016 it was
in talks to sell two of its Indian units, which would improve
liquidity, but the company has not made material progress on the
transaction. BILT's liquidity has worsened since Fitch's previous
downgrade, and operations were curbed due to inadequate working
capital, In addition, without an asset sale, there is greater
risk it will not be able to address debt maturities, resulting in
the downgrade to 'CCC'.

The company is aggressively pursuing several options to secure
funding and monetise assets to meet its repayment obligations.
The RWN reflects the risk that the company would have exhausted
almost all possible remedies to avoid a debt default or
restructuring if the current negotiations are delayed or fail. If
BILT's latest efforts do not conclude favourably within six
months, Fitch will take further negative rating action.


BENCHMARK IT: CRISIL Assigns B+ Rating to INR10MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facility of Benchmark IT Solutions India Private
Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Rupee Term Loan         10        CRISIL B+/Stable

The rating reflects a modest, though improving, scale of
operations, and expected deterioration in the financial risk
profile on account of an ongoing capital expenditure. These
weaknesses are partially offset by the extensive experience of
promoters in the software development industry, and their funding
support.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations, and exposure in the fragmented
software development industry: Turnover was INR6.1 crore in
fiscal 2016. Though the company is expected to report about 50%
growth in fiscal 2017, the turnover will remain modest.
Successful receipt of new work orders in the fragmented software
development industry remains critical for maintaining the scale
of operations.

* Average financial risk profile: Networth is expected to be at
INR3.13 crore as on March 31, 2017. Gearing should be at 3 time
because of debt-funded capital expenditure undertaken in fiscal
2017. Debt protection metrics, however, will be moderate, with
interest coverage and net cash accrual to total debt ratios
expected to be at 2.12 times and 0.08 time, respectively, in
fiscal 2017.

Strengths
* Extensive experience of promoters: The promoters have been
actively engaged in the software development industry for about
20 years. Since inception, the company has successfully executed
several projects for its clients.
Outlook: Stable

CRISIL believes BSIPL will maintain its business risk profile
over the medium term driven by its promoters' extensive
experience and established market position. The outlook may be
revised to 'Positive' if significant improvement in revenue,
along with better operating profitability, leads to higher-than-
expected cash accrual. Conversely, the outlook may be revised to
'Negative' if stagnant revenue or decrease in profitability
results in lower-than-expected cash accrual and larger-than-
expected working capital requirement.

Established in 2003, BSIPL, promoted by technocrats Mr. Ganesh
Patil and Mr. Rahul Asanikar, provides information technology
services to its clients, including application development,
enterprise integration solutions, and mobile-based custom
applications. BSIPL derives 95% of revenue through overseas
projects.


BHARTIA YARNS: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Bhartia Yarns
Private Limited's (BYPL) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR10 mil. Fund-based working capital facility affirmed at
      IND BB/Stable/IND A4 rating; and

   -- INR90 mil. Non-fund-based working capital facility affirmed
      at IND A4+ rating

                        KEY RATING DRIVERS

The affirmation reflects BYPL's small scale of operations and
moderate credit metrics.  In FY16, the first year of operation
for the company, it reported revenue of INR356 million with
EBITDA margin of 1.1%.  The management attributes its low
profitability during FY16 to foreign exchange fluctuation as BYPL
imports all its raw material.  Consequently, net leverage
(adjusted debt net of cash/EBITDA) for FY16 was 7.7x and EBITDA
interest coverage (operating EBITDA/gross interest expense) was
2.92x.

The ratings are constrained by the commodity-trading nature of
business and exposure to foreign exchange fluctuations.

The ratings, however, are supported by the promoters' experience
of over three decades in the yarn trading business.  The company
has a comfortable liquidity position as the fund-based working
capital facility of INR10 million remained unutilized during the
12 months ended December 2016.

                        RATING SENSITIVITIES

Negative: Decline in EBITDA margin and revenue leading to
stressed credit metrics could lead to negative rating action.

Positive: Increased scale of operations along with sustained
improvement in credit metrics could lead to a positive rating
action.

COMPANY PROFILE

BYPL was started by Mr. Arun Bhartia in 1999 as a private limited
company.  BYPL sells imported yarns to local textiles
manufacturers and wholesalers.  BYPL is a part of Bhartia Yarns
Group which also includes Fine Yarns ('IND BB-'/Stable) and
Nimish Syntex ('IND BB-'/Stable).  All the entities trade yarn.


BHAVYA CONSTRUCTIONS: Ind-Ra Assigns BB- Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Bhavya
Constructions Private Limited a Long-Term Issuer Rating of 'IND
BB-'.  The Outlook is Stable.  The instrument-wise rating action
is:

   -- INR150 mil. Fund-based working capital limits assigned with
      IND BB- /Stable IND A4 rating

                         KEY RATING DRIVERS

The ratings reflect the execution risks, funding risk and
saleability risk associated with Bhavya's ongoing project Sri
Surya and the upcoming project Tulasivanam Phase II for which
construction is likely to start in 1QFY18.  Tulasivanam project
is scheduled to be completed by end-FY21and the funding risk, as
the booking is yet to start, will lead to the cash flow
mismatches as customer advances are the major source (66%) of
income for the project (total project cost: INR581.00 million).

The ratings factor in the execution and saleability risks
attached to Sri Surya which is a five-floor joint development
project with 70 residential units out of which 40 units for the
developers and 30 units for the land owners is being constructed
in Hyderabad. The company has sold 20 units worth INR94 million
and collected 35% of the total sale value.  The company claims
30% completion on the construction and incurred INR53 million out
of the project cost of INR161 million.  The management expects
the project to be completed by September 2018.

Bhavya has another project Aditya Hills (plot layout) which is a
joint venture project among 17 parties including Bhavya.  The
project has 18 acres (49,932sqyards) consisting of 217 plots out
of which 2 acres (16 plots and amenities with 5,548sq yard)
belonging to Bhavya is being sold at INR7,000/sq yard.  Bhavya
has incurred total development cost of INR115.8 million for the
project.  Whenever the other 16 parties sell their plot, Bhavya
will get INR2000/sq yard towards the development charges.

Bhavya has already completed Tulasivanam phase I project which
consists of 939 units out of which 612 units belong to the
builder and 327 units belongs to the land owners.  The company
has already sold 563 units at INR3,900 per square feet.  The
company claims pending 59 units (69,630 Sq ft) with total
consideration of INR295.8 million is likely to be sold during
FY18 will support the cash flow requirement.

The liquidity is comfortable with the fund-based facility being
utilized at an average of 81.2% during the three month ended
December 2016.

The ratings benefit from the promoters' track record of 66
completed projects in Andhra and Telengana, and their experience
of around more than two decades in the real estate business.

                       RATING SENSITIVITIES

Positive: Successful Sale of new projects as planned and strong
sale of the under construction project (Sri Surya) leading to
strong cash inflow to support debt-service could be positive for
the ratings.

Negative: Delays or weak sales of new projects leading to less
than expected cash in-flow and cost overruns in the ongoing
projects stressing cash flows for debt service could be negative
for the ratings.

COMPANY PROFILE

Bhavya, incorporated in 1991, is in the business of housing
construction and real estate development activity.  Most of the
projects are middle income group oriented housing and is
concentrated in the city of Hyderabad.  Bhavya has completed
construction of over 4.5 million sq. ft.

The company has recorded revenue of INR51 million during FY16
(FY15: INR216 million).  Net leverage (Total adjusted net
debt/operating EBITDAR) was 3.0x in FY16 (FY15:3.56x) and
interest coverage (gross interest cover Operating EBITDA/gross
interest expense) was 4.4x (3.12x).

Bhavys holds 52% share of Bhavya Cements Limited
('IND BBB-'/Stable) which was incorporated in April 2007 and
operates a cement plant in Dachepally Mandal, Guntur district in
Andhra Pradesh.  The plant's capacity is 1.4mtpa.  The company
has received the required approvals for a 4mtpa cement plant.


BHOLA NATH: CRISIL Raises Rating on INR6.02MM Cash Loan to 'B'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Bhola Nath Rakesh Kumar (BNRK; part of the Harshna group) to
'CRISIL B/Stable' from 'CRISIL B-/Stable.'

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            6.02       CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The upgrade reflects expectation of steady improvement in the
business risk profile and liquidity. The business risk profile is
likely to improve, with healthy revenue growth of around 20%
expected in fiscal 2017, driven by a continuous increase in
offtake from existing customers.  Operating profitability is
likely remain healthy at 19-20% over the medium term.

Liquidity will remain adequate over the medium term on account of
sufficient cushion between net cash accrual and debt obligation,
supported by healthy operating profitability. Annual net cash
accrual is expected to be at INR3-4 crore against debt obligation
of INR1.9 crore annually over the medium term. Further bank limit
utilized at an average of 77% over 6 months ended through
December 2016.
Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Bhola Nath Naresh Kumar (BNNK),
Harshna Fruits (HF), Harshna Ice & Cold Storage (HICS), and BNRK.
This is because all these entities, collectively referred to as
the Harshna group, are in the same line of business, have close
intra-group operational and financial linkages, including
fungible cash flows, and are under a common management.

Key Rating Drivers & Detailed Description
Weaknesses
* Below average financial risk profile:
The financial risk profile remains below average, with total
outside liability to tangible networth ratio of 4.01 times as on
March 31, 2016, and nil debt-funded capex plan should improve the
ratio to 3.6-3.0 times. Debt protection metrics should remain
average, with interest coverage and net cash accrual to adjusted
debt ratios (2.15 times and 0.08 time, respectively, in fiscal
2016) expected to remain in above 2.5-2.8 times and 0.09-0.12
time, respectively, over the medium term.

* Large working capital requirement
Operations are working capital intensive as reflected in gross
current assets (GCAs) of over 500 days due to large receivables
of over 112 days and inventory of 110 days as on March 31, 2016.
GCA days are high mainly due to increasing current assets related
to operations over the last year, including loans and advance to
suppliers. Payables stood at 192 days as on March 31, 2016. The
receivables and payables are high since the group does not book
gross sales in its commission agent activity; however, the full
amount of the sale once made, is classified as a receivable and
the sale amount less expenses and commissions is classified as a
payable. CRISIL believes the Harshna group's working capital
requirement will remain large over the medium term, with GCAs of
over 300 days.

Strength
* Extensive experience of promoters in the industry and
established relationships with suppliers and customers:
The promoters have been active in the apple industry for over
three decades. It has recorded 100% capacity utilisation at its
cold storage facilities due to established relations with
producers, and marketing efforts of promoters to add large
customers, including retail chains such as Reliance Fresh Ltd,
Mahindra Subh Labh, Adani Agri Fresh Ltd, GSK Ltd, and Field
Fresh Foods Pvt Ltd.

The Harshna group has also forward-integrated its operations by
selling fruits through its group concern HF, which primarily
sells to large customers and retail chains. The Harshna group
operates in the agriculture segment which receives high attention
and priority from the Government of India (GoI). To encourage the
industry, GoI through the Ministry of Agriculture, has introduced
various capital investment subsidy schemes for construction,
expansion and/or modification of cold-storage units catering to
horticulture produce.

CRISIL believes the extensive experience of promoters and their
established relationships with customers and suppliers will
continue to support the business risk profile.
Outlook: Stable

CRISIL believes the Harshna group will continue to benefit over
the medium term from the extensive experience of its promoters as
commission agents in the apple trading business and from demand
for cold storage services in the domestic market. The outlook may
be revised to 'Positive' in case of an increase in scale of
operations and improvement in profitability, leading to larger-
than-expected cash accrual and better liquidity. Conversely, the
outlook may be revised to 'Negative' in case of a significant
increase in receivables, leading to further deterioration in
liquidity, or if revenue or profitability declines.

The Harshna group was established in 1993 by Mr. Rakesh Bhola
Nath Kohli and Mr. Naresh Bhola Nath Kohli, with the
establishment of BNRK and BNNK. Both the firms are commission
agents for trading in apples in Delhi's Azadpur mandi. In 1999,
the group decided to establish its own cold storage facility in
Sonipat (Haryana), for which it set up HICS in the same year.
HICS currently has a multi-product cold-storage facility, with
capacity of 11,500 tonne, along with ripening chambers. In 2004,
the group set up HF, which supplies fruits to retail stores.

The Harshna group had a profit after tax of INR0.73 crore on net
sales of INR28.46 crore in fiscal 2016, vis-a-vis INR0.68 crore
and INR30.14 crore, respectively, in fiscal 2015.


BHOLA NATH NARESH: CRISIL Ups Rating on INR3.85MM Cash Loan to B
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Bhola Nath Naresh Kumar (BNNK; part of the Harshna group) to
'CRISIL B/Stable' from 'CRISIL B-/Stable.'

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            3.85       CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

    Proposed Long Term    0.15       CRISIL B/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

The upgrade reflects expectation of steady improvement in the
business risk profile and liquidity. The business risk profile is
likely to improve, with healthy revenue growth of around 20%
expected in fiscal 2017, driven by a continuous increase in
offtake from existing customers.  Operating profitability is
likely remain healthy at 19-20% over the medium term.

Liquidity will remain adequate over the medium term on account of
sufficient cushion between net cash accrual and debt obligation,
supported by healthy operating profitability. Annual net cash
accrual is expected to be at INR3-4 crore against debt obligation
of INR1.9 crore annually over the medium term.  Further bank
limit utilized at an average of 77% over 6 months ended through
December 2016.
Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of BNNK, Harshna Fruits (HF), Harshna Ice
& Cold Storage (HICS), and Bhola Nath Rakesh Kumar (BNRK). This
is because all these entities, collectively referred to as the
Harshna group, are in the same line of business, have close
intra-group operational and financial linkages, including
fungible cash flows, and are under a common management
Key Rating Drivers & Detailed Description
Weaknesses
* Below average financial risk profile:
The financial risk profile remains below average, with total
outside liability to tangible networth ratio of 4.01 times as on
March 31, 2016, and nil debt-funded capex plan should improve the
ratio to 3.6-3.0 times. Debt protection metrics should remain
average, with interest coverage and net cash accrual to adjusted
debt ratios (2.15 times and 0.08 time, respectively, in fiscal
2016) expected to remain in above 2.5-2.8 times and 0.09-0.12
time, respectively, over the medium term.

* Large working capital requirement
Operations are working capital intensive as reflected in gross
current assets (GCAs) of over 500 days due to large receivables
of over 112 days and inventory of 110 days as on March 31, 2016.
GCA days are high mainly due to increasing current assets related
to operations over the last year, including loans and advance to
suppliers. Payables stood at 192 days as on March 31, 2016. The
receivables and payables are high since the group does not book
gross sales in its commission agent activity; however, the full
amount of the sale once made, is classified as a receivable and
the sale amount less expenses and commissions is classified as a
payable. CRISIL believes the Harshna group's working capital
requirement will remain large over the medium term, with GCAs of
over 300 days.

Strength
* Extensive experience of promoters in the industry and
established relationships with suppliers and customers:
The promoters have been active in the apple industry for over
three decades. It has recorded 100% capacity utilisation at its
cold storage facilities due to established relations with
producers, and marketing efforts of promoters to add large
customers, including retail chains such as Reliance Fresh Ltd,
Mahindra Subh Labh, Adani Agri Fresh Ltd, GSK Ltd, and Field
Fresh Foods Pvt Ltd.

The Harshna group has also forward-integrated its operations by
selling fruits through its group concern HF, which primarily
sells to large customers and retail chains. The Harshna group
operates in the agriculture segment which receives high attention
and priority from the Government of India (GoI). To encourage the
industry, GoI through the Ministry of Agriculture, has introduced
various capital investment subsidy schemes for construction,
expansion and/or modification of cold-storage units catering to
horticulture produce.

CRISIL believes the extensive experience of promoters and their
established relationships with customers and suppliers will
continue to support the business risk profile.
Outlook: Stable

CRISIL believes the Harshna group will continue to benefit over
the medium term from the extensive experience of its promoters as
commission agents in the apple trading business and from demand
for cold storage services in the domestic market. The outlook may
be revised to 'Positive' in case of an increase in scale of
operations and improvement in profitability, leading to larger-
than-expected cash accrual and better liquidity. Conversely, the
outlook may be revised to 'Negative' in case of a significant
increase in receivables, leading to further deterioration in
liquidity, or if revenue or profitability declines.

The Harshna group was established in 1993 by Mr. Rakesh Bhola
Nath Kohli and Mr. Naresh Bhola Nath Kohli, with the
establishment of BNRK and BNNK. Both the firms are commission
agents for trading in apples in Delhi's Azadpur mandi. In 1999,
the group decided to establish its own cold storage facility in
Sonipat (Haryana), for which it set up HICS in the same year.
HICS currently has a multi-product cold-storage facility, with
capacity of 11,500 tonne, along with ripening chambers. In 2004,
the group set up HF, which supplies fruits to retail stores.

The Harshna group had a profit after tax of INR0.73 crore on net
sales of INR28.46 crore in fiscal 2016, vis-a-vis INR0.68 crore
and INR30.14 crore, respectively, in fiscal 2015.


CRACKERS INDIA: CRISIL Assigns 'C' Rating to INR4.0MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL C' rating to long-term bank
facilities of Crackers India (Alloys) Limited.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Working Capital
   Term Loan               2.02       CRISIL C
   Cash Credit             4.00       CRISIL C
   Proposed Long Term
   Bank Loan Facility      3.98       CRISIL C

The ratings reflect instances of delay in servicing its debt (not
rated by CRISIL); the delays have been caused by the company's
weak liquidity. The ratings factor in CIAL's large working
capital requirements leading to fully utilised fund based bank
lines and its modest scale of operations. These rating weaknesses
are partially offset by the promoter's extensive experience in
the sponge iron industry and their funding support.
Analytical Approach

CRISIL has treated unsecured loans of INR14.65 crore as neither
debt nor equity since the same is from the promoters and is
expected to continue to remain in the business.
Key Rating Drivers & Detailed Description
Weaknesses
* Delay in servicing its debt (not rated by CRISIL): The Company
has been delaying payment of interest and instalment of term loan
on account of stretched liquidity.

* Modest scale of operations: Despite being in operations since
2005, the company operates on a modest scale, at INR52.6 crore in
fiscal 2016 due to intense competition in the sponge iron
industry, with the presence of several players. Consequently,
CIAL's ability to significantly scale up its operations is
restricted.

* Large working capital requirements: CIAL has large working
capital requirements which leads to fully utilised bank limits.

Strength
* Promoters' extensive experience in sponge iron industry and
their funding support: CIAL's business risk profile benefits from
the extensive industry experience of its promoter of over 25
years in the industry. The promoters own The World group which
caters to diverse businesses such as mining, retailing,
hospitality, agriculture, and steel. The promoters have also
supported the business by extending unsecured loans of INR14.65
crore which is expected to continue to remain in the business.
CRISIL believes that CIAIL will continue to benefit from the
experience and financial support of its promoters over the medium
term.

Established in 2005 by Mr. Srinibash Sahoo, CIAL manufactures
sponge iron, stone chips, iron fines, fly ash bricks, and coal
fines. Since January 2016, the company has also started trading
in high speed diesel, motor spirit, and lubricants of Reliance
Industries Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+').

Profit after tax (PAT) was INR92.9 lakhs on net sales of INR52.6
crore in fiscal 2016, vis-a vis net loss of INR1.8 crore and
INR31.7 crore, respectively, in fiscal 2015.


DEV PRAYAG: CRISIL Upgrades Rating on INR7MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Dev Prayag Paper Mill Private Limited to 'CRISIL B/Stable'
from 'CRISIL B-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              2        CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Term Loan                7        CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The upgrade reflects improvement in the business risk profile and
liquidity, supported by steady net cash accrual, improved working
capital cycle along with moderate dependency on bank debt, and
promoters' financial support in the form of unsecured loans and
equity infusion.

Liquidity will remain adequate over the medium term on account of
sufficient cushion between net cash accrual and debt obligation.
Net cash accrual is expected to be at INR1.2-1.5 crore against
debt obligation of INR1.17 crore annually over the medium term.
The upgrade also factors in improvement in the working capital
cycle, which is expected to be sustained primarily  driven by a
focus on debtor collection; receivables stood at 65 days as on
March 31, 2016, against 92 days a year earlier, leading to a
moderate bank limit utilisation. Utilisation averaged 78% over
the 12 months through September 2016, against 99% over the 12
months through August 2015.

Furthermore, promoters continuously provide funding support in
the form of unsecured loans and equity infusion (equity stood at
INR1.21 crore and unsecured loans at INR3.40 crore as on March
31, 2016); these are expected to remain in the business over the
medium term. DPML has adequate financial flexibility due to
comfortable capital structure, with total outside liabilities to
tangible networth (TOLTNW) ratio expected to remain at 2 times
over the medium term and nil sizeable capital expenditure plan
for the medium term.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the intensely competitive
industry:
DPML commenced operations in September 2015, and had modest
operating revenue of INR25.11 crore in fiscal 2016. Over the nine
months through December 2016, operating revenue was INR28.72
crore, and is expected to grow 10-20%. CRISIL believes the scale
will remain modest owing to intense competition in the fragmented
paper industry.

* Limited track record of operations in the fragmented paper
industry:
DPML commenced operations in September 2015, to manufacture kraft
paper and light-weight coated duplex board and is in its early
stage. Although it has a readily available dealer network through
other group entity, KK Duplex Paper Mill Pvt Ltd (KK Duplex),
ramp-up in operations will remain a key rating sensitivity
factor.

* Moderate working capital requirement: Gross current assets were
at 157 days as on March 31, 2016, owing to large debtors and
inventory of 92 and 56 days, respectively. Working capital
requirement will remain moderate over the medium term with
increase in scale of operations.

Strengths
* Promoters' extensive experience and established dealership
network in the paper industry:
One of the promoters, Mr. Bharat Agarwal, has an experience of
over 20 years in the paper industry. Revenue grew year-on-year to
INR25.11 crore in fiscal 2016 from INR9.85 crore in fiscal 2015;
it is expected to grow 10-20%, albeit on a small base, over the
medium term, backed by its promoters' extensive experience and
established network of around 40 dealers.

* Moderate financial risk profile: The financial risk profile
remains moderate with total outside liability to tangible net
worth (TOLTNW) ratio of 3 times as on March 31, 2016 and with
equity infusion of INR1.21 crore in 2016-17, it is expected to
improve and be in the range of 1.5-2 times. Debt protection
metrics should remain average, with interest coverage and net
cash accrual to adjusted debt ratios (2.28 times and 0.11 time,
respectively, in fiscal 2016) expected to be at similar levels
over medium term.
Outlook: Stable

CRISIL believes DPML will continue to benefit over the medium
term from its promoters' extensive experience and established
dealer network through group entities. The outlook may be revised
to 'Positive' in case of a significant increase in scale of
operations while working capital requirement is prudently
managed, thereby improving the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
financial risk profile, particularly liquidity, deteriorates,
most likely because of a substantial increase in working capital
requirement or low cash accrual.

Established in 2013, promoted by Mr. Bharat Agarwal, Mr. Sandeep
Agarwal, and Mr. Mahesh Chand Agarwal, DPML manufactures kraft
paper and light-weight coated duplex board. It commenced
operations at its facility in Allahabad (Uttar Pradesh) in
September 2015.

DPML reported a net profit of INR0.54 crore on net sales of
INR25.11 crore for fiscal 2016, as against a loss of INR0.32
crore on net sales of INR9.82 crore for fiscal 2015.


DIWANKA ENERGY: CRISIL Reaffirms 'B' Rating on INR7MM Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Diwanka Energy Private Limited at 'CRISIL B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             7         CRISIL B/Stable (Reaffirmed)
   Letter of Credit        1.5       CRISIL A4 (Reaffirmed)

The ratings continue to reflect the below-average financial risk
profile, marked by a small networth, high gearing and weak debt
protection metrics, and exposure to intense competition in the
steel industry, and cyclicality in demand from end-user
industries. These rating weaknesses are partially offset by the
extensive experience of the promoters and established customer
relationships.
Analytical Approach

For arriving at the ratings, CRISIL has treated unsecured loans
of INR7.97 crore extended by the promoter, as neither debt nor
equity because these loans are likely to be retained in business
in the medium term.
Key Rating Drivers & Detailed Description
Weakness
* Below-average debt protection metrics: Debt protection metrics
are below-average, with interest coverage and net cash accrual to
total debt ratios expected to be 1.99 times and 0.07 time,
respectively, in fiscal 2017, mainly led by higher reliance on
working capital debt.

Strength
* Extensive experience of the promoters and established customer
relationship: Benefits from the two decade-long presence of the
promoter, Mr. Priyank Diwanka, in the steel trading business, and
his experience in manufacturing of ingots, billets, and thermo-
mechanically treated (TMT) bars through other entities, will
continue. Due to its wide product profile, company had been able
to establish a diversified network of customers consisting of
brokers, dealers and traders. The diversified customer base also
helps mitigate the cyclical risk of various industries to an
extent.
Outlook: Stable

CRISIL believes DEPL will continue to benefit from the extensive
experience of its promoter, and the established customer
relationships. The outlook may be revised to 'Positive' if
substantial growth in revenue and profitability, leads to higher
cash accrual and moderate liquidity. The outlook may be revised
to 'Negative' if decline in profitability or revenue, or stretch
in the working capital cycle results in lower-than-expected cash
accrual, thus constraining the financial risk profile.

Incorporated in 2009, DEPL trades in a variety of steel products,
including hot- and cold-rolled coils and plates, angles,
channels, sponge iron, and TMT bars. The Nagpur-based company has
also started manufacturing billets, strips and pipes since July
2015, and has total capacity of 75,000 tonne per annum.
Operations are managed by Mr. Priyank Diwanka.

For fiscal 2016, DEPL reported a net loss of INR1.84 crore on an
operating income of INR118 crore as against a PAT of INR0.24
crore on an operating income of INR193 crore the previous fiscal.


FINE YARNS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Fine Yarns'
Long-Term Issuer Rating to 'IND BB-' from 'IND BB'.  The Outlook
is Stable.  The instrument-wise rating actions are:

   -- INR10 mil. Fund-based working Capital facility assigned
      with IND BB-/Stable/IND A4+ rating; and

   -- INR130 (reduced from INR 138.5) mil. Non-fund-based working
      Capital facility affirmed at IND A4+ rating

                        KEY RATING DRIVERS

The downgrade reflects Fine Yarn's substantial decline in revenue
and profitability resulting in weak credit metrics.  The entity's
revenue deteriorated to INR390 million in FY16 (INR572 million in
FY15) due to unfavorable market conditions, with a decline in
EBITDA margin to negative 0.2% in FY16 (FY15: 0.3%) on account of
increase in the variable cost.

The ratings continue to factor in the risks associated with
commodity-trading business and exposure to foreign exchange
fluctuations.

The ratings, however, are supported by the promoters' experience
of over three decades in the yarn trading business.  Fine Yarns'
liquidity position is comfortable as its fund-based working
capital facility of INR10 million remained unutilized during the
12 months ended December 2016.

                        RATING SENSITIVITIES

Negative: Further deterioration in revenue and EBITDA margin
leading to stressed credit metrics could result in negative
rating action.

Positive: Substantial increase in scale of operation and EBITDA
margin along with improvement in credit metrics would lead to
positive rating action.

COMPANY PROFILE

Fine Yarns was started by Mr. Arun Bhartia in 1999 as a
proprietary concern.  Fine Yarns sells imported yarns to local
textiles manufacturers and wholesalers.  The firm is a part of
Bhartia Yarns Group which also includes Nimish Syntex
('IND BB-'/Stable) and Bhartia Yarns Private Limited
('IND BB'/Stable).  All the entities trade yarn.


GARVIT HOSPITALITY: CRISIL Assigns B- Rating to INR13.25MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' ratings to the bank
facilities of Garvit Hospitality & Infracon Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            1.75       CRISIL B-/Stable
   Term Loan             13.25       CRISIL B-/Stable

The ratings reflects project related risks and expected below
average financial risk profile due to initial stage of operations
in the capital intensive industry. These rating weaknesses are
partially mitigated by the long standing experience and strong
understanding of construction industry by promoters and expected
healthy demand of Autoclaved aerated concrete (AAC).

Key Rating Drivers & Detailed Description
Weaknesses
* Project related risks
Funding Risk: Low
The project has an overall funding requirement of INR23 cr, which
is being funded by term loans of INR13.25 cr and promoter's
contribution of INR9.75 cr. Entire promoter contribution has
already come for the project, while only INR7.7 cr of term loans
has been taken. Hence the remaining portion of the expense for
project is to be funded through loan disbursal, hence funding
risk is low.

Implementation Risk: Low
Currently, company has expensed about INR17.5 cr, which includes
land purchase, building construction and entire electrical as
well other installation. Only machine installation is pending,
which is expected to be completed in the last quarter of 2016-17,
order for the same has already been placed. Hence implementation
risk is also low.

Demand Risk: Moderate
Demand risk is moderate, as it is a Greenfield project for the
promoters and that there are no firm tie-up with the customers.
However, the region has deficit in supply compared to demand,
which till now are fulfilled by manufacturers located in Delhi or
Agra. Hence, the newer capacity by Garvit will be able to fulfill
this demand due to lower transportation costs compared to its
counterparts in Delhi or Agra. Furthermore, part of the
capacities will be used by its group company Ghanaram
Infraengineers Pvt Ltd.

* Average financial risk profile
The project's total cost is estimated to be at INR23 cr to be
funded in DER of 1.36:1 and hence the company is expected to have
moderate capital structure with economical gearing of 1 times to
1.5 times over the medium term, going forward. However,
promoter's contribution will be a mix of unsecured loans and
equity capital. Hence, company will have gearing in the range of
2 to 3 times. CRISIL expects the capital structure of the company
to remain moderate on account debt funded capex and bank
borrowings.

Strengths
* Long standing experience and strong understanding of
construction industry by promoters
The promoters of Garvit have experience of more than around 20
years in the construction industry through their association with
an associate concern, Ghanaram Infraengineers Pvt Ltd. The
promoter's extensive experience in the construction and AAC block
industry has led to established customer and supplier
relationships. The established customer and supplier
relationships will help the company to stabilise the capacities
of the plant and reduce the off-take risk of the company. Also
the promoters have experience of construction industry which will
help them in implementation of the project and help in timely
stabilisation of capacities. Hence, CRISIL believes the company
to benefit from the extensive experience of the promoters in the
construction industry.

* Healthy growth prospects of the industry
Autoclaved Aerated Concrete (AAC) is a relatively new concept in
India and is currently one of the many building products
considered environment friendly. AAC is a precast product
manufactured by combining silica (either in the form of sand or
recycled fly ash) cement, lime, water, and an expansion agent -
aluminium powder and by pouring the slurry into a mould and
curing the block in autoclaves. The Government of India is
encouraging the AAC technology as the technology is environment
friendly. There is high demand for this product due to better
insulation and heat rejection as compared to the conventional
clay bricks. With the healthy growth in house stock and strong
growth in the income of urban households, the AAC technology has
healthy industry growth prospects.
Outlook: Stable

CRISIL believes that Garvit Hospitality & Infracon Private
Limited (GHIPL) may benefit from the promoters' experience in the
construction industry. The outlook may be revised to 'Positive'
in case of faster than expected stabilization of project leading
to higher than expected scale and profitability. Conversely, the
outlook may be revised to 'Negative' in case GHIPL faces
significant delay in project completion or achieving break-even,
or suffers any cost overrun.

Set up in October 18, 2011, M/S. Garvit Hospitality & Infracon
Private Limited (GHIPL) is setting up a plant to manufacture
Autoclaved Aerated Concrete blocks to be used in building and
civil construction. It is based out of Jhansi, Uttar Pradesh and
is by Mr. Parvindar Singh and his father Mr. Bishan Singh.


HARSHNA FRUITS: CRISIL Upgrades Rating on INR7MM Cash Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Harshna Fruits (HF; part of the Harshna group) to 'CRISIL
B/Stable' from 'CRISIL B-/Stable.'

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              7        CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The upgrade reflects expectation of steady improvement in the
business risk profile and liquidity. The business risk profile is
likely to improve, with healthy revenue growth of around 20%
expected in fiscal 2017, driven by a continuous increase in
offtake from existing customers.  Operating profitability is
likely remain healthy at 19-20% over the medium term.

Liquidity will remain adequate over the medium term on account of
sufficient cushion between net cash accrual and debt obligation,
supported by healthy operating profitability. Annual net cash
accrual is expected to be at INR3-4 crore against debt obligation
of INR1.9 crore annually over the medium term. Further bank limit
utilized at an average of 77% over 6 months ended through
December 2016.
Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of HF, Bhola Nath Naresh Kumar (BNNK),
Harshna Ice & Cold Storage (HICS), and Bhola Nath Rakesh Kumar
(BNRK). This is because all these entities, collectively referred
to as the Harshna group, are in the same line of business, have
close intra-group operational and financial linkages, including
fungible cash flows, and are under a common management.

Key Rating Drivers & Detailed Description
Weaknesses
* Below average financial risk profile:
The financial risk profile remains below average, with total
outside liability to tangible networth ratio of 4.01 times as on
March 31, 2016, and nil debt-funded capex plan should improve the
ratio to 3.6-3.0 times. Debt protection metrics should remain
average, with interest coverage and net cash accrual to adjusted
debt ratios (2.15 times and 0.08 time, respectively, in fiscal
2016) expected to remain in above 2.5-2.8 times and 0.09-0.12
time, respectively, over the medium term.

* Large working capital requirement
Operations are working capital intensive as reflected in gross
current assets (GCAs) of over 500 days due to large receivables
of over 112 days and inventory of 110 days as on March 31, 2016.
GCA days are high mainly due to increasing current assets related
to operations over the last year, including loans and advance to
suppliers. Payables stood at 192 days as on March 31, 2016. The
receivables and payables are high since the group does not book
gross sales in its commission agent activity; however, the full
amount of the sale once made, is classified as a receivable and
the sale amount less expenses and commissions is classified as a
payable. CRISIL believes the Harshna group's working capital
requirement will remain large over the medium term, with GCAs of
over 300 days.

Strength
* Extensive experience of promoters in the industry and
established relationships with suppliers and customers:
The promoters have been active in the apple industry for over
three decades. It has recorded 100% capacity utilisation at its
cold storage facilities due to established relations with
producers, and marketing efforts of promoters to add large
customers, including retail chains such as Reliance Fresh Ltd,
Mahindra Subh Labh, Adani Agri Fresh Ltd, GSK Ltd, and Field
Fresh Foods Pvt Ltd.

The Harshna group has also forward-integrated its operations by
selling fruits through its group concern HF, which primarily
sells to large customers and retail chains. The Harshna group
operates in the agriculture segment which receives high attention
and priority from the Government of India (GoI). To encourage the
industry, GoI through the Ministry of Agriculture, has introduced
various capital investment subsidy schemes for construction,
expansion and/or modification of cold-storage units catering to
horticulture produce.

CRISIL believes the extensive experience of promoters and their
established relationships with customers and suppliers will
continue to support the business risk profile.
Outlook: Stable

CRISIL believes the Harshna group will continue to benefit over
the medium term from the extensive experience of its promoters as
commission agents in the apple trading business and from demand
for cold storage services in the domestic market. The outlook may
be revised to 'Positive' in case of an increase in scale of
operations and improvement in profitability, leading to larger-
than-expected cash accrual and better liquidity. Conversely, the
outlook may be revised to 'Negative' in case of a significant
increase in receivables, leading to further deterioration in
liquidity, or if revenue or profitability declines.

The Harshna group was established in 1993 by Mr. Rakesh Bhola
Nath Kohli and Mr. Naresh Bhola Nath Kohli, with the
establishment of BNRK and BNNK. Both the firms are commission
agents for trading in apples in Delhi's Azadpur mandi. In 1999,
the group decided to establish its own cold storage facility in
Sonipat (Haryana), for which it set up HICS in the same year.
HICS currently has a multi-product cold-storage facility, with
capacity of 11,500 tonne, along with ripening chambers. In 2004,
the group set up HF, which supplies fruits to retail stores.

The Harshna group had a profit after tax of INR0.73 crore on net
sales of INR28.46 crore in fiscal 2016, vis-a-vis INR0.68 crore
and INR30.14 crore, respectively, in fiscal 2015.


HARSHNA ICE: CRISIL Raises Rating on INR10MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Harshna Ice and Cold Storage Private Limited (HICS; part of the
Harshna group) to 'CRISIL B/Stable' from 'CRISIL B-/Stable.'

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Term Loan               10         CRISIL B/Stable (Upgraded
                                      from 'CRISIL B-/Stable')

The upgrade reflects expectation of steady improvement in the
business risk profile and liquidity. The business risk profile is
likely to improve, with healthy revenue growth of around 20%
expected in fiscal 2017, driven by a continuous increase in
offtake from existing customers.  Operating profitability is
likely remain healthy at 19-20% over the medium term.

Liquidity will remain adequate over the medium term on account of
sufficient cushion between net cash accrual and debt obligation,
supported by healthy operating profitability. Annual net cash
accrual is expected to be at INR3-4 crore against debt obligation
of INR1.9 crore annually over the medium term. Further bank limit
utilized at an average of 77% over 6 months ended through
December 2016.
Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of BNNK, Harshna Fruits (HF), Harshna Ice
& Cold Storage (HICS), and Bhola Nath Rakesh Kumar (BNRK). This
is because all these entities, collectively referred to as the
Harshna group, are in the same line of business, have close
intra-group operational and financial linkages, including
fungible cash flows, and are under a common management.

Key Rating Drivers & Detailed Description
Weaknesses
* Below average financial risk profile:
The financial risk profile remains below average, with total
outside liability to tangible networth ratio of 4.01 times as on
March 31, 2016, and nil debt-funded capex plan should improve the
ratio to 3.6-3.0 times. Debt protection metrics should remain
average, with interest coverage and net cash accrual to adjusted
debt ratios (2.15 times and 0.08 time, respectively, in fiscal
2016) expected to remain in above 2.5-2.8 times and 0.09-0.12
time, respectively, over the medium term.

* Large working capital requirement
Operations are working capital intensive as reflected in gross
current assets (GCAs) of over 500 days due to large receivables
of over 112 days and inventory of 110 days as on March 31, 2016.
GCA days are high mainly due to increasing current assets related
to operations over the last year, including loans and advance to
suppliers. Payables stood at 192 days as on March 31, 2016. The
receivables and payables are high since the group does not book
gross sales in its commission agent activity; however, the full
amount of the sale once made, is classified as a receivable and
the sale amount less expenses and commissions is classified as a
payable. CRISIL believes the Harshna group's working capital
requirement will remain large over the medium term, with GCAs of
over 300 days.

Strength
* Extensive experience of promoters in the industry and
established relationships with suppliers and customers:
The promoters have been active in the apple industry for over
three decades. It has recorded 100% capacity utilisation at its
cold storage facilities due to established relations with
producers, and marketing efforts of promoters to add large
customers, including retail chains such as Reliance Fresh Ltd,
Mahindra Subh Labh, Adani Agri Fresh Ltd, GSK Ltd, and Field
Fresh Foods Pvt Ltd.

The Harshna group has also forward-integrated its operations by
selling fruits through its group concern HF, which primarily
sells to large customers and retail chains. The Harshna group
operates in the agriculture segment which receives high attention
and priority from the Government of India (GoI). To encourage the
industry, GoI through the Ministry of Agriculture, has introduced
various capital investment subsidy schemes for construction,
expansion and/or modification of cold-storage units catering to
horticulture produce.

CRISIL believes the extensive experience of promoters and their
established relationships with customers and suppliers will
continue to support the business risk profile.
Outlook: Stable

CRISIL believes the Harshna group will continue to benefit over
the medium term from the extensive experience of its promoters as
commission agents in the apple trading business and from demand
for cold storage services in the domestic market. The outlook may
be revised to 'Positive' in case of an increase in scale of
operations and improvement in profitability, leading to larger-
than-expected cash accrual and better liquidity. Conversely, the
outlook may be revised to 'Negative' in case of a significant
increase in receivables, leading to further deterioration in
liquidity, or if revenue or profitability declines.

The Harshna group was established in 1993 by Mr. Rakesh Bhola
Nath Kohli and Mr. Naresh Bhola Nath Kohli, with the
establishment of BNRK and BNNK. Both the firms are commission
agents for trading in apples in Delhi's Azadpur mandi. In 1999,
the group decided to establish its own cold storage facility in
Sonipat (Haryana), for which it set up HICS in the same year.
HICS currently has a multi-product cold-storage facility, with
capacity of 11,500 tonne, along with ripening chambers. In 2004,
the group set up HF, which supplies fruits to retail stores.

The Harshna group had a profit after tax of INR0.73 crore on net
sales of INR28.46 crore in fiscal 2016, vis-a-vis INR0.68 crore
and INR30.14 crore, respectively, in fiscal 2015.


IDBI BANK: S&P Lowers ICR to 'BB' on Very Weak Asset Quality
------------------------------------------------------------
S&P Global Ratings said that it had lowered its long-term foreign
currency issuer credit rating on IDBI Bank Ltd. to 'BB' from
'BB+'.  The outlook is stable.  At the same time, S&P lowered its
issue ratings on the India-based bank's senior unsecured notes to
'BB' from 'BB+'.  S&P affirmed the 'B' short-term rating on IDBI.

"We downgraded IDBI because we expect the bank's asset quality to
remain very weak over the next 12 months," said S&P Global
Ratings credit analyst Nikita Anand.  "Our view is based on the
bank's customer concentration and a sizable exposure to the
highly vulnerable corporate and infrastructure segments."

S&P has therefore reassessed the bank's risk position score to
very weak from weak.  Accordingly, S&P lowered IDBI's stand-alone
credit profile (SACP) to 'b-' from 'bb-'.

IDBI has high single-name concentration.  Exposure to the top 20
customers was about 222% of the bank's equity as of March 31,
2016, higher than the peer average (168% for the top five Indian
public sector banks).  Moreover, IDBI has high exposure to the
troubled infrastructure segment (25.7% as of Dec. 31, 2016)
making the bank more vulnerable than peers.  The current
downcycle in India has been protracted and S&P expects only a
gradual improvement in the corporate sector.

S&P expects IDBI's reported stressed assets to continue to
increase as the recognition norms in India improve.  The bank's
nonperforming loan (NPL) ratio rose sharply to 15.2% as of
Dec. 31, 2016, from 10.9% as of March 31, 2016.  The
deterioration was greater than we had expected.  The bank has a
large amount of strategic debt restructuring.  IDBI's standard
restructured loans, at 7.2% of total loans, also remain higher
than its peers'.  All these factors reflect a significant
weakness in the bank's asset quality.

Stressed asset quality and resultant high credit costs have
strained IDBI's earnings.  The bank reported a loss of Indian
rupee (INR) 36.6 billion in fiscal 2016 (year ended March 31,
2016) and INR19.6 billion in the first nine months of fiscal
2017. Moreover, S&P expects IDBI's earnings to remain weak over
the next 12-18 months largely because of high credit costs and
lower net interest margins, making the bank dependent on external
capital infusions to meet its regulatory capital requirement.

Negative retained earnings have caused the bank's regulatory
capital ratios to decline.  The bank's Tier 1 ratio was 8.5% as
of Dec. 31, 2016 (before factoring in the loss in that quarter).
This ratio is slightly higher than the current regulatory
requirement.  The regulatory requirement for Tier 1 capital
(including capital conservation buffer) is set to increase to
8.25% from March 31, 2017.  Nevertheless, our base-case
expectation is that IDBI will meet the minimum regulatory capital
requirements.  S&P believes that the bank may receive capital
from the government or public sector entities to meet the minimum
regulatory capital requirement.  The bank may also tap the market
to raise additional Tier 1 capital or sell down loans.  Any sale
of stake to a strategic shareholder would also support
capitalization.

The ratings on IDBI reflect S&P's expectation of a very high
likelihood that the government of India will continue to support
the bank, including through ongoing capital infusions, and help
the bank maintain its regulatory minimum capital requirements.

"The stable outlook reflects our expectation that the likelihood
of support to IDBI from the government of India will remain very
high at least for the next 12 months," said Ms. Anand.

The rating on IDBI currently benefits from four notches of uplift
because of a very high likelihood of government support.  The
rating on the bank may no longer benefit from this uplift,
leading to a downgrade, if S&P believes this support has
weakened.  This could happen if the government considers
privatizing IDBI.  The risk of privatization will increase if the
government decides to lower its stake in IDBI.

S&P will lower the rating on IDBI if S&P believes that the bank
could breach the regulatory capital requirement, a scenario which
S&P currently views as remote.

IDBI's SACP will need to rise three notches to 'bb-' for an
upgrade, a scenario that S&P views as unlikely for the next 12
months.


JAI KUMAR: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jai Kumar Arun
Kumar Private Limited (MAPL) a Long-Term Issuer Rating of
'IND BB'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR87 mil. Fund-based limit assigned with IND BB/Stable/IND
      A4+ rating; and

   -- INR0.52 mil. Long-term loan assigned with IND BB/Stable
      rating

                          KEY RATING DRIVERS

The ratings reflect JKAKPL's weak credit metrics.  FY16
financials indicate net financial leverage (total adjusted net
debt/operating EBITDAR) of 3.04x (FY15: 3.59x) and interest
coverage (operating EBITDA/gross interest expense) of 1.44x
(FY15: 1.41x).

The ratings factor in JKAKPL's moderate liquidity position as
evident from average peak utilization of 92.70% of working
capital facility during the 12 months ended January 2017.

The ratings further reflect JKAKPL's moderate scale of operations
with revenue of INR1,059.03 million in FY16 (FY15: INR960.81
million).  The ratings also factor in the moderate EBITDA margin
of 3.13% in FY16 (FY15: 3.21%).

The ratings, however, are supported by more than two and a half
decades of promoters' experience in the automobile industry.

                        RATING SENSITIVITIES

Positive: Revenue growth being sustained with improvement in
operating profitability leading to improvement in credit metrics
could be positive for the ratings.

Negative: Any decline in operating profitability leading to
deterioration in credit metrics could be negative for the
ratings.

COMPANY PROFILE

Incorporated in 1979, JKAKPL is a Meerut-based authorised dealer
for Mahindra & Mahindra Ltd.(IND AAA'/Stable) and Hero MotoCorp
Limited.  The firm is managed by Praveen Jain and Jai Kumar Jain.


KAIZEN COLD: Ind-Ra Assigns 'B' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kaizen Cold
Formed Steel Private Limited a Long-Term Issuer Rating of 'IND
B'. The Outlook is Stable.  The instrument-wise rating actions
are:

   -- INR50 mil. Fund-based facilities assigned with
      IND B/ Stable/IND A4 rating; and

   -- INR60.7 mil. Non-fund-based facilities assigned with IND A4
      rating

                          KEY RATING DRIVERS

The ratings reflect Kaizen's liquidity stress along with the weak
credit profile.  There had been over-utilization (of up to 5
days) of its working capital facilities during the six months
ended October 2016 on stretched cash conversion cycle which
deteriorated in FY16 to 201 days (FY15: 171 days).  In FY16
revenue was
INR684 million (FY15: INR420 million), net leverage (total Ind-Ra
adjusted net debt/operating EBITDAR) was 10.7x (6.5x) and gross
interest cover (operating EBITDA/gross interest expense) was 1.1x
(1.3x).

EBITDA margins were low at 3.7% in FY16 and remained volatile
between 2.4%-5.3% during FY13-FY16 on account the trading nature
of business.

The company has a current order book of INR100 million to be
executed within the next two months.  The company has indicated
revenue of INR727 million in 10MFY17 (interim numbers).

The ratings, however, draw support from promoter's combined
experience of more than three decades in the steel trading
business.

                       RATING SENSITIVITIES

Positive: Sustained improvement in liquidity position could lead
to a positive rating action.

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

COMPANY PROFILE

Set up in 2009, Kaizen trades in steel products.  The company's
day-to-day operations are managed by Mr. Raghav Saraf and his
brother Mr. Rahul Saraf.  Kaizen deals with wide range of
products steels such as HR coils/Sheets and CR Coils / Sheets
other steels TMT Bars, channels etc.


KHANDELWAL GINNING: CRISIL Reaffirms B+ Rating on INR4.5MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of
Khandelwal Ginning and Pressing at 'CRISIL B+/Stable'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             4.5      CRISIL B+/Stable (Reaffirmed)
   Proposed Cash
   Credit Limit            3.0      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the firm's modest scale of
operations with low profitability, in the fragmented cotton
ginning and pressing industry. The rating also factors in below
average financial risk profile marked by modest net worth and
subdued debt protection metrics. These rating weaknesses are
partially offset by the extensive industry experience of the
firm's partners.

Key Rating Drivers & Detailed Description
Strengths
* Extensive industry experience of the firm's partners
KGP's partner, Mr. Kailas Khandelwal, has experience of more than
eight years in the cotton ginning and pressing industry. Prior to
setting up the firm, the partners were engaged in cotton broking
and trading. Over the years, Mr. Khandelwal has gained a sound
understanding of the market dynamics and has established a
presence in the Maharashtra cotton market. CRISIL believes that
KGP will continue to benefit from the partners' extensive
industry experience.

Weaknesses
* Modest scale of operations with low profitability, in the
fragmented cotton ginning and pressing industry
KGP has a modest scale of operations as reflected in its sales of
around INR39 crore for 2015-16 (refers to financial year, April 1
to March 31). It has reported operating margin of about 3 percent
during FY 2015-16. The cotton ginning and pressing industry is
marked by low entry barriers in terms of capital investment and
technological requirements.

CRISIL believes that KGP's scale of operations will remain modest
over the medium term.

* Below average financial risk profile
The firm has a below average financial risk profile marked by
modest net worth and subdued debt protection metrics. It has
reported net worth of about INR3.8 crore as on March 2016 which
is expected to improve marginally on account of low accretion to
reserve. However in the absence of term loan, it has reported
moderate capital structure of about 1.4 times and expected to
remain in the rane of about 1.2 times 1.3 times supported by
absence of any debt funded capex plan over the medium term. The
debt protection metrics with interest coverage and net cash
accruals to total debt is about 2 times and 10 percent
respectively during 2015-16 which is expected to deteriorate on
account of low profitability.
Outlook: Stable

CRISIL believes KGP will continue to benefit over the medium term
from its partners' extensive industry experience. The outlook may
be revised to 'Positive' in case of significant improvement in
revenue and profitability leading to sizable cash accrual, or
substantial infusion of fresh capital. Conversely, the outlook
may be revised to 'Negative' in case of low cash accrual,
stretched working capital cycle, or any debt-funded capital
expenditure, weakening the firm's financial risk profile,
particularly liquidity.

Established in 2009, KGP gins and presses raw cotton and extracts
oil from cotton seeds. The firm is owned and managed by Mr.
Kailas Khandelwal and family; its manufacturing facility is in
Bodwad near Jalgaon (Maharashtra).

Profit after tax (PAT) was INR0.21 crore on net sales of INR39.23
crore in fiscal 2016, vis-a-vis INR0.06 crore and INR39.62,
respectively, in fiscal 2015.


M K PINE: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M K Pine Wood
LLP (MKPW) a Long-Term Issuer Rating of 'IND B+'.  The Outlook is
Stable.  Instrument-wise rating actions are:

   -- INR20 mil. Fund-based facilities assigned with
      IND B+/Stable/IND A4 rating; and

   -- INR90 mil. Non-fund-based limit assigned with IND A4 rating

                       KEY RATING DRIVERS

The ratings reflect MKPW's small scale of operations and weak
credit metrics, as well as lack of operational track record and
the partnership nature of the business.  Revenue was INR149.16
million in FY16, EBITDA margins was 0.99%, net interest coverage
(operating EBITDAR/net interest expense + rents) was 1.73x and
net leverage (total adjusted debt/operating EBITDAR) was 3.37x.
The EBITDA margins are vulnerable to any adverse movement in the
exchange rates.

The ratings, however, are supported by the firm's comfortable
liquidity position as reflected by 30.42% of average peak
utilization of its working capital facilities during the 12
months ended January 2017 and the partners' over a decade of
experience in the timber trading business.

                        RATING SENSITIVITIES

Positive: A substantial growth in revenue, along with an
improvement in the EBITDA margins, leading to an improvement in
the credit metrics will be positive for the ratings.

Negative: Any decline in the EBITDA margins leading to
deterioration in the credit metrics will be negative for the
ratings.

COMPANY PROFILE

Incorporated in October 2014, MKPW is a limited liability
partnership firm engaged in the trading of timber.  The firm
imports timber from Malaysia, Ghana, Canada, New Zealand,
Germany, Dubai, China and Taiwan. The designated partners are
Sanjay Kumar Gupta and Shipra Bansal.


M.R. GUPTA: Ind-Ra Affirms 'BB-' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed M.R. Gupta &
Company Private Limited's (MRGPL) Long-Term Issuer Rating at
'IND BB-'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR488.50 mil. (increased from INR272.50) Bank overdraft
      affirmed with IND BB-/Stable/IND A4+ rating;

   -- INR50 mil. (increased from INR40) Bank guarantee affirmed
      at IND A4+ rating; and

   -- INR216 mil. Letter of credit withdrawn with IND A4+ rating

                         KEY RATING DRIVERS

The affirmation reflects MRGPL's weak credit metrics and margins,
inherent in the trading nature of business.  In FY16, net
interest coverage (operating EBITDAR/net interest expense) was
1.18x (FY15: 1.21x), net leverage (adjusted net debt/operating
EBITDAR) was 7.5x (6.9x) and operating profitability margin was
2.61% (2.09%).

The ratings further reflect the company's weak liquidity position
as reflected by the overdraft facilities remaining fully utilized
during the 12 months ended January 2017.

However, the ratings are supported by MRGPL's moderate scale of
operations and its promoters' experience of more than 23 years of
in trading plastic raw materials and polymer products.  Revenue
fell to INR1,512.38 million in FY16 (FY15: INR1,685.50 million)
because of MRGPL's decision to reduce its exposure in the polymer
products division where the company imports polymers and faces
price fluctuations in their prices.

                        RATING SENSITIVITIES

Positive: An improvement in the overall credit metrics on a
sustained basis will be positive for the ratings.

Negative: Any decline in the operating profit margins leading to
sustained deterioration in the credit metrics will be negative
for the ratings.

COMPANY PROFILE

MRGPL was established in 1992 and is engaged in trading plastic
raw materials and polymer products such as high-density
polyethylene, linear low-density polyethylene, low-density
polyethylene and polyvinyl chloride resins.  MRGP has a presence
in Delhi, Haryana and Uttar Pradesh.


MADHURI P. RURAL: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Madhuri P. Rural
Godowns (Madhuri P.) a Long-Term Issuer Rating of 'IND B+'.  The
Outlook is Stable.  The instrument-wise rating action is:

   -- INR96.9 mil. Term loan which matures on February 2028
      assigned with IND B+/Stable rating

                        KEY RATING DRIVERS

The ratings reflect Madhuri P.'s small scale of operations as
reflected by revenue of INR5.1 million in FY16.  The ratings also
factor in the firm's short operating track record as FY16 was the
first full year of operations.

The ratings also take into account completion risk for the firm,
stemming from its ongoing expansion programmes, which include
construction of another godown with a capacity of 11,000MTs for
the storage of food grains, and railway sidings.  The total
project cost is INR103.1 million, which is being funded through a
mix of debt and equity in the ratio of 2.5:1.  The firm expects
to complete the construction of the godown by May 2018.

However, the ratings are supported by its proprietor's experience
of around five years in the trading and storage of agricultural
commodities.

                       RATING SENSITIVITIES

Negative: Any delay in the expansion project completion which
might impact the debt servicing ability of the firm might be
negative for the ratings.

Positive: Timely completion of the expansion project enabling the
generation of revenue and cash flow required for debt servicing
as projected by the management would be positive for the ratings.

COMPANY PROFILE

Established in 2013, Madhuri P.  owns an 11,000MT  godown at
Nagireddy Pally, Telangana.  It provides a godown rental services
to Food Corporation of India and Telangana State Warehousing
Corporation.


MALHOTRA CONSTRUCTIONS: CRISIL Reaffirms B+ Cash Credit Rating
--------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Malhotra Constructions Pvt. Ltd. at 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          11       CRISIL A4 (Reaffirmed)
   Cash Credit              3       CRISIL B+/Stable (Reaffirmed)

With an operating income of INR13 crore in fiscal 2016, scale
remains small. Though revenue will remain susceptible to tender-
driven business, order book of INR69 crore as of December 2016 is
expected to provide moderate revenue visibility in the near term.
However, operating margin will remain in the 12-13% range over
the medium term due to intense competition.

Financial risk profile is moderate and is expected to remain at a
similar level over the medium term in the absence of any debt-
funded capital expenditure (capex) and sustained operating
margin. Moderate bank limit utilisation and sufficient net cash
accrual against term debt obligation will support liquidity.

Analytical Approach

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in the highly fragmented civil
construction industry: Small scale restricts ability to bid for
large projects. Moreover, given low entry barrier and tender-
based business, the company faces intense competition in the
civil construction segment. Also, revenue is susceptible to the
quantum of tenders floated and ability to bid successfully.

* High geographical and customer concentration in revenue: Entire
revenue comes from contracts floated by Public Works Departments
in Haryana and Delhi, which exposes the company to changes in
civil infrastructure policies and to socio-economic and political
conditions.

Strength
* Extensive experience of promoter: Presence of over 25 years in
the construction business has enabled the promoter to
successfully bid for tenders and efficiently execute orders.
Outlook: Stable

CRISIL believes MCPL will continue to benefit over the medium
term from the extensive experience of its promoter. The outlook
may be revised to 'Positive' if significant and sustained
increase in scale of operations and profitability, while
efficiently managing working capital requirement, improves credit
risk profile. The outlook may be revised to 'Negative' if low
cash accrual, or large working capital requirement or debt-funded
capex constrains liquidity.

Incorporated in 1989 and promoted by Mr. Rajesh Malhotra MCPL is
engaged in civil construction.

MCPL reported a net profit of INR0.33 crore on net sales of
INR13.38 crore for Fiscal 2016, as against a net profit of
INR0.19 crore on net sales of Rs7.90 crore for fiscal 2015.

Status of non-cooperation with previous CRA: ICRA has suspended
ratings of Malhotra Constructions Private Limited (MCPL) on 11
July 2016. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.


MANDAR ROLLER: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Mandar Roller
Flour Mills Private Limited (MRFM) a Long-Term Issuer Rating of
'IND B+'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR15 mil. Fund-based facility assigned with
      IND B+/Stable/IND A4 rating; and

   -- INR175 mil. Non-fund-based facility assigned with IND A4
      rating

                         KEY RATING DRIVERS

The ratings reflect MRFM's small scale of operations and moderate
credit metrics.  According to the FY16 financials, revenue was
INR245 million (FY15: INR134 million).  Interest Coverage
(operating EBITDA/gross interest expense) decreased to 2.1x in
FY16 (FY15:3.3x) on account of decline in EBITDA margin and net
financial leverage (total adjusted net debt/operating EBITDA)
deteriorated to 2.2x  (4.1x) due to reduction in debt.  EBITDA
margin was in the range of 0.9%-8.6% during FY13-FY16 on account
of raw material price fluctuations and trading nature of
business.

The company has high customer concentration in both the trading
and manufacturing business.

The ratings, however, are supported by the promoter's two decades
of experience in cattle feed manufacturing and three years of
experience in the trading activities.

Liquidity position of MRFM is comfortable as reflected by 31.67%
average utilization of fund-based working capital during the 12
months ended December 2016.

                      RATING SENSITIVITIES

Positive:  Any substantial growth in top-line with improvement in
EBITDA margin leading to sustained improvement in credit metrics
could lead to a positive rating action.

Negative: Any deterioration in EBITDA margin leading to sustained
deterioration in credit metrics could be negative for the rating

COMPANY PROFILE

MRFM was incorporated in 1988 as a private limited company under
the Companies' Act 1956 with a prime objective of manufacturing
of cattle feed.  In 2014 MRFM also started the trading business
of wheat, peas and pulses.  The company is located in Shirwal in
Satara district (Maharashtra) with 20 employees and has daily
installed capacity of 50 tonne for manufacturing activities.


MANJEET FIBERS: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Manjeet Fibers
Private Limited's (MFPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable.  Instrument-wise rating actions are:

   -- INR380 mil. (increased from INR200) Fund-based limits
      affirmed at IND BB+/Stable/IND A4+ rating;

   -- INR81.1 mil. (increased from INR66.7) Term loan affirmed at
      IND BB+/Stable rating; and

   -- INR120 mil. Proposed-fund-based limits* assigned with
      Provisional IND BB+/Stable rating

* The above rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by MFPL to the satisfaction of Ind-Ra.

                         KEY RATING DRIVERS

The affirmation reflects MFPL's continued moderate scale of
operations and moderate credit profile, due to the seasonal
nature of operations and the inherent risk of operating in a
commodity market, which is characterized by volatile cotton
prices and competitive pressures.  While revenue increased to
INR2,387.4 million in FY16 (FY15: INR1,559.4 million), operating
EBITDA margin fell to 3.3% (4.1%), on account of an increase in
the raw material cost.  Consequently, interest coverage
(operating EBITDA/gross interest expense) increased to 2.2x in
FY16 (FY15:1.8x) and net leverage (Ind-Ra total adjusted net
debt/operating EBITDAR) also increased to 6.1x (4.4x).

The company has a strong liquidity position as reflected by its
around 49.2% average use of the working capital limits during the
12 months ended November 2016.

The ratings, however, are supported by more than two decades of
experience of MFPL's founders in the cotton industry and the
company's proximity to the cotton producing belt of the country.

                         RATING SENSITIVITIES

Negative:  Further deterioration in the operating profitability
margins leading to deterioration in the credit profile will be
negative for the ratings.

Positive: A significant increase in the profitability margins
leading to an improvement in the credit profile will be positive
for the ratings.

COMPANY PROFILE

Incorporated in June 2012, MFPL is engaged in agro-processing,
ginning and pressing of cotton, and allied activities.  Its
annual installed capacity for processing raw cotton is 1152,000
quintals.


N.S.K. BUILDERS: CRISIL Lowers Rating on INR27MM Bank Loan to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
N.S.K. Builders Private Limited to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          27        CRISIL D (Downgraded from
                                     'CRISIL A4')
   Cash Credit             15        CRISIL D (Downgraded from
                                     'CRISIL B/Stable')
   Open Cash Credit         8        CRISIL D (Downgraded from
                                     'CRISIL B/Stable')

The downgrade reflects over-utilisation in the working capital
facility for more than 30 days due to weak liquidity. The weak
liquidity is caused by a stretch in the working capital cycle as
indicated by gross current assets of 368 days as on March 31,
2016.

The ratings also factor in a moderate scale of operations in an
intensely competitive industry and its working capital-intensive
operations. However, NBPL benefits from the extensive experience
of its promoters.

Key Rating Drivers & Detailed Description
Weaknesses
* Moderate scale of operations in an intensely competitive
industry
Scale of operations is moderate, with revenue of INR104.5 crores
for fiscal 2016, in the intensely competitive and fragmented
civil construction industry, with the presence of large organised
players and several unorganised players, owing to low entry
barriers.

* Working capital-intensive operations
Operations are working capital intensive as indicated by gross
current assets of 368 days of sales as on March 31, 2016. Though
it gives customers credit of three months, receivables are
stretched at 250 days as on March 31, 2016.

Strength
* Extensive experience of promoters
The extensive experience of promoters, Mr. NSK Kalairaja and Mr.
NSK Karunairaja, who have been associated with the civil
construction industry over the past two decades, should continue
to support the business risk profile.

Formed in 1996 as a partnership entity, and later incorporated as
a private limited company in 2010, NBPL, promoted by Mr. NSK
Kalairaja and Mr. NSK Karunairaja, undertakes large
infrastructure projects such as roads and building construction.

For fiscal 2016, NBPL made a profit after tax (PAT) of INR0.92
crore on total income of INR104.53 crore, against a PAT of
INR1.31 crore on total income of INR104.54 crore for the previous
fiscal


NEOLITE ZKW: Ind-Ra Raises Long-Term Issuer Rating to 'BB+'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Neolite ZKW
Lightings Private Limited's (NZKWL) Long-Term Issuer Rating to
'IND BB+' from 'IND BB'.  The Outlook is Positive.  The
instrument-wise rating actions are.

   -- INR185.90 mil. (reduced from INR340.40) Term loan upgraded
      to IND BB+/Positive rating;

   -- INR320 mil. (increased from INR280) Fund-based limits
      upgraded to IND BB+/Positive rating;

   -- INR320 mil. (increased from INR280) Fund-based limits
      affirmed at IND A4+ rating; and

   -- INR97.50 mil. (increased from INR87.50) Non-fund-based
      limits affirmed at IND A4+ rating

                        KEY RATING DRIVERS

The upgrade reflects a significant improvement in NZKWL's top
line, EBITDA margin and credit metrics in FY16.  In FY16, the top
line increased to INR1,715.45 million (FY15: INR1,188.19
million), EBITDA margin improved to 10.34% (6.77%), net financial
leverage (total adjusted net debt/operating EBITDAR) enhanced to
4.58x (8.40x) and interest coverage (operating EBITDA/gross
interest expense) rose to 1.91x (1.03x).

The Positive Outlook reflects Ind-Ra's expectation of an
improvement in NZKWL's top line and credit profile in FY17,
driven by an increase in work orders and demand for passenger
vehicles in India.

The ratings are constrained by NZKWL's moderate liquidity
position, indicated by a 94.71% average working capital
utilization during the 12 months ended December 2016.

The ratings continue to draw support from the promoter's over
two-decade experience in manufacturing automotive lighting and
strong clientele.

                       RATING SENSITIVITIES

Negative: A decline in EBITDA margin leading to weak credit
metrics will be negative for the ratings.

Positive: An increase in revenue, along with an improvement in
credit metrics (with net leverage below 4x), will be positive for
the ratings.

COMPANY PROFILE

Incorporated in October 1992, NZWKL is a leading manufacturer of
automotive lighting systems.  The company's head office and new
plant are based in Bahadurgarh (Haryana).  The new plant is a
state-of-the-art facility that manufactures supplies for its
large original equipment manufacturer customer segment.  The
facility is equipped to meet the specifications of high-end
passenger cars and has an in-house R&D facility to increase the
speed of prototype development.  NZWKL has an aftermarket in
Gurugram (Haryana), which provides supplies for nearly all makes
and models in the retail market.


NIMISH SYNTEX: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Nimish
Syntex's (NS) Long-Term Issuer Rating to 'IND BB-' from 'IND BB'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR10 Fund-based working Capital facility assigned with IND
      BB-/Stable/IND A4+ rating; and

   -- INR140 mil. (reduced from INR150) Non-fund-based working
      Capital facility affirmed with IND A4+

                         KEY RATING DRIVERS

The downgrade reflects NS' substantial decline in revenue and
profitability resulting in weak credit metrics.  The entity's
revenue deteriorated to INR425 million in FY16 (FY15: INR1,058
million) on account of unfavorable market condition, with a
sustained decline in the EBITDA margin to negative 2.3% (0.1%) on
account of  increase in the variable cost.

The ratings continue to factor in the risks associated with the
commodity-trading business and exposure to foreign exchange
fluctuations.

The ratings, however, are supported by the promoters' experience
of over three decades in the yarn trading business.  NS'
liquidity position is comfortable as the fund-based working
capital facility of INR10 million remained unutilized during the
12 months ended December 2016.

                            RATING SENSITIVITIES

Negative: Further deterioration in revenue and EBITDA margin
leading to stressed credit metrics could result in negative
rating action.

Positive: Substantial increase in scale of operation and EBITDA
margin along with improvement in credit metrics could lead to
positive rating action.

COMPANY PROFILE

NS was started by Mr. Arun Bhartia in 1999 as a partnership
concern.  NS sells imported yarns to local textiles manufacturers
and wholesalers.  NS is a part of Bharti Yarn Group which also
includes Fine Yarns ('IND BB-'/Stable) and Bhartia Yarns Private
Limited ('IND BB'/Stable).  All the entities trade yarn.


PROGRESS TRADERS: CRISIL Reaffirms B+ Rating on INR5MM Loan
-----------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility
of Progress Traders (PT) at 'CRISIL B+/Stable' and reassigned its
'CRISIL A4' rating for the short-term bank facility.

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

The rating continues to reflect the firm's moderate scale of
operations in the competitive steel trading industry, customer
concentration in revenues, and below-average financial risk
profile because of small net worth and highly leveraged capital
structure. These weaknesses are partially offset by the extensive
experience of its proprietor.

Key Rating Drivers & Detailed Description
Weaknesses
* Moderate scale of operations in the competitive steel trading
industry
Revenue remained moderate, although it increased to INR86.7 crore
in fiscal 2016 from INR76.7 crore in the previous year.
Furthermore, the scrap trading industry is highly fragmented,
with intense competition from numerous small and medium-sized
players owing to low entry barriers and minimal capital
requirement. Modest scale coupled with intense competition limits
pricing power, reflected in modest operating margin of 1.8% in
fiscal 2016. Scale is expected to remain modest over the medium
term.

* Customer concentration in revenues:
The firm is exposed to customer concentration in revenue as it
derives 70% of its total revenue from Jeppiar Furnace and Steel
Pvt Ltd. Any decline in sales from this company will affect PT's
business risk profile.

* Below average financial risk profile:
The firm has a below average financial risk profile marked by
modest networth, weak total outside liabilities to tangible net
worth (TOLTNW) and weak debt-protection metrics. Though the net
worth is expected to improve over the medium term on account of
moderate accretions, TOLTNW expected to remain weak, while debt
protection metrics are expected to remain weak.

Strength
* Proprietor's extensive experience and established customer
relationships
The proprietor has been in the steel industry for over a decade;
over the years, he established strong relations with suppliers
and customers, resulting in easy procurement of raw materials and
repeat orders, respectively. Further, owing to the proprietor's
foresight and ability to forge business relationships, the firm
seamlessly migrated from its import model to domestic procurement
model in a reasonably short time. Benefits from the proprietor's
longstanding experience and established relationships with
principals and customers will continue to support the business.
Outlook: Stable

CRISIL believes PT will continue to benefit over the medium term
from the extensive experience of its proprietor. The outlook may
be revised to 'Positive' if higher-than-expected revenue and
profits lead to better business risk profile. Conversely, the
outlook may be revised to 'Negative' if the financial risk
profile, particularly liquidity, weakens, most likely due to a
decline in cash accrual, poor working capital management, or
large, debt-funded capital expenditure.

PT, based in Cuddalore (Tamil Nadu), trades in steel scrap, steel
billets and thermo-mechanically treated bars. The firm's
operations are managed by its proprietor, Mr. Habibur Rahman.

PT's profit after tax (PAT) was INR0.4 crore on revenue of
INR86.75 crore in fiscal 2016, vis-a-vis PAT of INR0.4 crore on
revenue of INR76.75 crore, for fiscal 2015.


RAMANUJ COTTON: CRISIL Upgrades Rating on INR7.4MM Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Ramanuj Cotton Corporation to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             7.4       CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Proposed Long Term      0.6       CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

The rating upgrade reflects CRISIL's belief that RCC's business
risk profile will improve over the medium term. The firm's
topline has registered a sizeable increase reflected in
expectation of over INR130 crore in FY 2017, as against INR46
crore in the FY 2015 due to increase in trading of cotton bales.
The topline of the firm is expected to grow at a similar momentum
going forward. Furthermore, its expected cash accruals of INR0.5-
0.6 crore, with no term debt obligations and the absence of any
debt-funded capital expenditure, will support its liquidity over
the medium term.

The rating also factors the below average financial risk profile
marked by a modest networth, high gearing and subdued interest
coverage ratio coupled with low operating profitability. These
weaknesses are partially offset by the extensive experience of
partners in the cotton industry and efficient working capital
management.

Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: The networth is expected
to be modest at INR4.0-4.5 crore while the gearing would remain
high at 2 times, as on March 31, 2017. Debt protection metrics
are expected to be subdued: interest coverage and net cash
accrual to total debt ratios at 1.7 times and 0.08 time,
respectively, in fiscal 2017. The financial risk profile is
expected to improve, yet remain below average, over the medium
term.

* Low operating margin due to trading nature of business: The
firm is expected to operate at low profitability levels of 1.5-2
percent in 2017 due to increase in trading nature of business.

Strengths
* Extensive experience of the partners in the cotton industry:
The partners have been in the business of cotton ginning and
pressing for the past eight years. The firm benefits from the
experience of the partners, their understanding of the dynamics
of the local market, and established relationship with farmers
and customers.

* Efficient working capital management: Low receivables and
moderate inventory are expected to keep operations efficiently
managed with expected gross current assets ranging between 50-60
days going forward.
Outlook: Stable

CRISIL believes RCC will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' in case of higher-than-expected sales along with
improvement in profitability, resulting in a better-than-expected
financial risk profile. The outlook may be revised to 'Negative'
if liquidity weakens further, most likely because of operational
losses or a sharp increase in working capital requirement.

RCC was established in September 2013 as a partnership firm by
Mr. Shyam Agrawal and Mr. Gopal Agrawal, who continue to manage
operations. Based in Aurangabad, Maharashtra, the firm gins and
presses cotton. It has subcontracted manufacturing facilities
with a capacity of 450 bales per day in Khammam, Telangana. To
cater to offseason demand, the firm also trades in cotton bales.

For 2015-16, RCC reported net profit of INR0.48 crore on total
income of INR102.7 crore, against net profit of INR0.48 crore on
total income of INR46 crore for 2014-15.


SERA EXPORTS: CRISIL Reaffirms B+ Rating on INR6MM Pack Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of Sera Exports.

                         Amount
   Facilities           (INR Mln)   Ratings
   ----------           ---------   -------
   Bill Discounting          4      CRISIL B+/Stable (Reaffirmed)

   Export Packing Credit     6      CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility        1      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect a modest scale of operations as
reflected in operating revenue of INR18 crore in fiscal 2016.
This may decline in fiscal 2017 on account of subdued demand and
impact of demonetisation.

Liquidity is adequate because of sufficient net cash accrual to
meet term debt obligation. Liquidity is also supported by
moderate bank limit utilisation, at an average of around 70% over
10 months through January 2017.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations:
The scale of operation remains modest though net sales increased
to INR18 crore in fiscal 2016 from INR13 crore in fiscal 2015.
The modest scale is because of the fragmented nature of the
fittings and accessories industry, and intense competition from
domestic and foreign (mostly Chinese) players. The scale of
operations is expected to remain modest over the medium term.

* Working capital-intensive operations
Gross current assets were high (316 days as on March 31, 2016)
primarily driven by large debtors (121 days) and substantial
inventory (113 days). As a result, working capital requirement is
sizeable. Significant credit of three to four months is offered
to customers while no credit is received from suppliers because
of intense market competition.

Strengths
* Extensive industry experience of the promoter, and established
customer relationship: The promoter have an industry experience
of over 30 years. Mr. Harbhajan Singh Sachdeva, has maintained a
healthy customer relationship in the global market, mainly in the
UK and New Zealand, leading to healthy sales growth. Benefits
from the extensive experience of the partners and established
customer relationship are expected to continue over the medium
term.

* Moderate financial risk profile
The networth was around INR7.61 crore as on March 31, 2016.  The
total outside liabilities to tangible networth ratio was around
1.37 times as on this date, and is expected to remain at a
similar level over the medium term in the absence of any debt-
funded capital expenditure (capex) plan. Debt protection metrics
were moderate: interest coverage and net cash accrual to adjusted
debt ratios were around 2.14 times and 0.07 time, respectively,
in fiscal 2016.
Outlook: Stable

CRISIL believes SE will continue to benefit from the extensive
industry experience of its partners and established relationship
with customers. The outlook may be revised to 'Positive' in case
of an increase in scale of operations while the financial risk
profile improves. The outlook may be revised to 'Negative' if
revenue declines, or if the financial risk profile weakens
because of a stretched working capital cycle or large, debt-
funded capex.

SE, established in 1999, is owned and managed by Mr. Harbhajan
Singh Sachdeva and his family. The firm manufactures
architectural hardware, which includes door fittings and window
fittings, at its facility in Aligarh, Uttar Pradesh.

SE reported a net profit of INR0.50 crore on net sales of
INR17.29 crore for Fiscal 2016, as against a net profit of
INR0.21 crore on net sales of INR12.53 crore for fiscal 2015.


SHREYAS INDIA: CRISIL Lowers Rating on INR9.2MM Loan to 'B'
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shreyas India Private Limited to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee           4       CRISIL A4 (Downgraded from
                                    'CRISIL A4+')

   Cash Credit              4       CRISIL B/Stable (Downgraded
                                    from 'CRISIL BB-/Stable')

   Proposed Long Term       9.2     CRISIL B/Stable (Downgraded
   Bank Loan Facility               from 'CRISIL BB-/Stable')

The downgrade reflects expected weakening of business and
financial risk profiles over the medium term. Operating income
and margin declined to INR19 crore and 2.5% in fiscal 2016 from
INR29 crore and 4.1%, respectively, in the previous fiscal due to
weak demand and are expected to decline further in fiscal 2017.
Furthermore, working capital cycle is stretched, with gross
current assets of 245 days as on March 31, 2016 (192 days in the
previous year), due to increase in receivables to 150 days as on
March 31, 2016 (from 96 days in previous year).
Key Rating Drivers & Detailed Description
Weaknesses
* Weak operating income: Operating income declined to around
INR19 crore in fiscal 2016 from INR29 crore in fiscal 2015 and is
expected to be INR13 crore in fiscal 2017.

* Large working capital requirement: Receivables have been in the
59-150 days range in the three years ended March 31, 2016.
Operations are expected to remain working capital-intensive with
expected gross current asset of over 280 days over the medium
term.

Strength
* Extensive experience of promoters: Presence of more than two
decades in the plastic polymers segment has enabled the promoters
to establish strong relationship with customers and suppliers.
Outlook: Stable

CRISIL believes SIPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if improvement in revenue,
profitability, or working capital cycle leads to a better
liquidity. The outlook may be revised to 'Negative' if any
further stretch in working capital cycle, debt-funded capital
expenditure, or decline in profitability deteriorates liquidity.

Incorporated in 1997 by Mr. Sanjay Jain and Ms. Manisha Jain,
SIPL was dormant until 1999, when Mr. K D Agarwal and his wife,
Ms. Asha Agarwal, took over its ownership. The company
manufactures master batches and woven sacks and is a consignment
agent of Indian Oil Corporation Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+') for high density polyethylene and ploy
propylene in Rajasthan.

Profit after tax (PAT) was INR0.70 crore on net sales of INR17
crore for fiscal 2016, against negative PAT on net sales of INR27
crore for fiscal 2015.


SJP GLOBAL: CRISIL Lowers Rating on INR24MM Term Loan to D
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of SJP Global Limited to 'CRISIL D' from 'CRISIL BB-/Stable'. The
downgrade reflects significant delays in servicing debt
obligations in the recent past; the delays were due to stretched
liquidity.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Rupee Term Loan         24        CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

The weak demand and cyclicality in industries has resulted in
stretch liquidity & hence delay in repayment of term loan.
Key Rating Drivers & Detailed Description
Weakness
Risks and cyclicality inherent in Indian real estate industry:
The real estate sector in India is cyclical, and marked by
volatile prices, opaque transactions, and a highly fragmented
market structure because of the presence of a large number of
regional players.

Strengths
Promoter's longstanding experience and funding support: The
promoters have extensive experience in the real estate industry.
The company is an affiliate of the SHRI group which was set up in
1931 by the Late Mr. Shri Nath Prasad and his family.

Set up in 2010, SJP is currently executing residential real
estate project in Vrindavan and Mathura (Uttar Pradesh). The
projects are marketed under the brand Shri Radha Florance, Shri
Radha Valley and Shri Radha Avenue.

Company's promoters are Mr. Pradeep Kumar Aggarwal and Mr. Sudeep
Kumar Aggarwal. The SHRI group was established in 1931 by the
late Shri Shri Nath Prasad and his family members. The group has
a track record of over 20 years in the real estate sector.

For fiscal 2016, SJP reported a profit after tax (PAT) of INR2.8
crore on net sales of INR115.80 crore, as against a PAT of
INR4.89 crore on net sales of INR34.01 crore for the previous
period.


S.G.N. CHARITABLE: CRISIL Reaffirms B Rating on INR7.5MM LT Loan
---------------------------------------------------------------
CRISIL rating on the long-term bank facility of S.G.N. Charitable
Trust (R) (SGNCT) continue to reflect SGNCT's modest scale of
operations, limited revenue diversity, susceptibility to
regulatory change and exposure to intense competition in the
technical education segment. These rating weaknesses are
partially offset by the trustees' extensive experience in the
education sector.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Long Term Loan          7.5       CRISIL B/Stable (Reaffirmed)

Key Rating Drivers & Detailed Description
Weaknesses
* Susceptible to regulations by governmental agencies: High
degree of regulation by governmental agencies in all areas
including fee structure The establishment and running of higher
educational institutions are governed by various governmental and
quasi-governmental agencies like the UGC, MCI, AICTE,
universities, state governments, etc. Each body has detailed
procedures for granting permission to setup new institutions and
the approval needs to be renewed every 3 or 5 years. Even
enhancing the number of seats would require prior approval. The
agencies conduct detailed study on the facilities, technology,
faculty, track record, etc. before granting approvals. Various
courses offered by Society have to comply with specific
operational and infrastructure norms as laid down by regulatory
bodies like AICTE and affiliated universities like Visveshvariya
Technological University (VTU). Thus the society needs to
regularly invest for its workforce and infrastructural
requirements. Also the course fee that can be charged from the
students is not decided by the Society. The fee to be charged and
any increase in the fee structure are decided by the affiliating
universities. According to a Supreme Court ruling, while
educational institutions cannot indulge in profiteering, a
reasonable surplus may be made. Approximately 10-15 per cent
annually is considered to be reasonable surplus (equivalent to
OPBIT margins). Therefore, CRISIL believes that the regulated
nature of the industry restricts any substantial increase in the
revenues of the trust as both the number of seats offered and the
fee structure is controlled AICTE and affiliated universities
respectively.

* Geographic concentration in revenue profile; exposure to
intense competition
SGNCT derives its revenues from its only college EIT in Mysore
region, and the students belong mainly to this region. This leads
to a geographic concentration in its revenue profile. Besides,
EIT, like other colleges in the area, faces competition from many
reputed universities and colleges in other parts of Karnataka.
Furthermore, professional education in India is intensely
competitive with many small and niche colleges competing with
large colleges and universities. Engineering, medical, dental,
and other professional education in Karnataka are especially
marked with a wide choice of courses and colleges offering them.
Also, in recent years, with the global slowdown impacting the key
sectors like Information technology (IT) and IT enabled services
(ITES), there has been a significant change in student
preferences. CRISIL believes that any increase in competition
and/or slowdown in student intake because of shift in student
preference to other competing institutes can impact the trust's
business risk profile.

Strengths
* Moderate financial risk profile: The trust had modest net worth
of around INR5.69 crore with debt of around INR5.4 crore as on
March 31, 2016. Consequently, the trust's capital structure was
moderate with a gearing of around 0.95 times as on March 31,
2016. The debt protection metrics were also moderate with net
cash accrual to total debt (NCATD) of around 13 per cent as on
March 31, 2016. The moderate financial risk profile aids the
trusts refinancing ability.

* Healthy demand prospects for education segment: SGNCT's
business risk profile benefits from the healthy demand prospects
for the education sector. According to National Council of
Educational Research and Training, at least 200,000 schools are
required to meet the school-level demand. There is a growing
preference for private schools because of the inefficient public
school system and growing awareness about the importance of
quality education. With the increasing thrust on education by the
government, the enrolment in higher education is expected to
increase to 15 per cent of the total population by 2016 from the
present 8 per cent. The private sector is playing a significant
role in higher education, especially professional education, in
India. CRISIL believes that private institutions, such as the
engineering collge of SGNCT, will have healthy enrolment of
students over the medium term on the back of the expected strong
demand for education in India.
Outlook: Stable

CRISIL believes that SGNCT will continue to benefit over the
medium term from the extensive experience of its trustees in the
education sector. The outlook may be revised to 'Positive' if the
trust significantly increases its scale of operations, most
likely by improving its occupancy levels or increasing its course
offerings leading to better financial risk profile. Conversely,
the outlook may be revised to 'Negative' if there is a decline in
the admission levels of the college or if the trust undertakes a
larger-than-expected debt funded capital expenditure leading to
deterioration of its financial risk profile.

Established in 2008 as a charitable trust, SGNCT is operating an
engineering college, Ekalavya Institute of Technology (EIT) at T.
Narasipur (Karnataka).

During 2015-16 (refers to financial year April 1 to March 31),
SGNCT reported revenues of INR3.6 crore with PAT of negative
INR0.73 crore.


VIJAYNATH ROOF: CRISIL Upgrades Rating on INR12.8MM Loan to 'B'
---------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank loan
facilities of Vijaynath Roof And Wall Cladding Systems Private
Limited to 'CRISIL B/Stable' from 'CRISIL B-/Stable', while
reaffirming the ratings on the short-term bank loan facilities at
'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee           15       CRISIL A4 (Reaffirmed)

   Cash Credit               2       CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Letter of Credit          5.25    CRISIL A4 (Reaffirmed)

   Proposed Long Term       12.80    CRISIL B/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

   Term Loan                 2.70    CRISIL B/Stable (Upgraded
                                      from 'CRISIL B-/Stable')

The rating upgrade reflects improvement in VRWC's credit profile
with increase in cash accruals, negligible long-term debt
obligations and improving operating profitability. While VRWC's
revenues are expected to remain stable at about INR50 crores for
fiscal 2017, the company's operating profitability is expected to
improve to about 10 per cent during fiscal 2017 against 7.3 per
cent in fiscal 2016 backed by healthy orders and improving
operating efficiencies. Consequently, VRWC's cash accruals are
expected to increase to over INR2 crores during fiscal 2017
against INR0.46 crores during fiscal 2016, leading to an
improvement in liquidity. CRISIL believes that VRWC's established
customer relationships and improving operating efficiencies will
continue to support its business risk profile over the medium
term.

The ratings continue to reflect continue to reflect VRWC's modest
scale of operations with limited value addition in the roofing
systems business, and large working capital requirements. These
weaknesses are partially offset by its promoter's extensive
industry experience and its strong customer base.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations with limited value addition in the
roofing systems business
VIEPL continues to exhibit modest scale of operations with an
operating income of about INR55.8 crores during fiscal 2016.
While the company has been operating for about 15 years and has
an established track record, the industry is becoming competitive
with the presence of a few large players and entry of several
small players over the past five years. CRISIL believes that
VIEPL's modest scale will limit its bargaining power with
customers, especially because of the extent of competition in the
sector. The level of value addition is limited to drawing,
designing, and the necessary fabrication.

*Large working capital requirements
VIEPL's receivables typically range around 100 days. The
company's receivables, however, continue to be stretched on
account of low bargaining power and long project gestation
periods with receivables greater than six months at about INR4.96
crores as on October 31, 2016.  Further, the company inventory is
at about 40 to 50 days.

CRISIL believes that debtor cycle is also impacted by the extent
of competition in the sector, and VIEPL's relatively modest size
vis-a-vis its customers, which limits its bargaining power.
CRISIL believes that delays in realisations, if sustained, could
further stretch VIEPL's already high working capital cycle.

Strength
* Established customer relationships and promoter's expertise in
roofing systems industry
VIEPL's promoter, Mr. Vijaynath Shetty, has been engaged in the
roofing systems business of more than 15 years. He is assisted by
a strong execution team. As the business is human resource-
intensive, VIEPL's strong execution team provides the company
with a competitive advantage over new entrants. VIEPL has a
strong customer base that has included Tata Motors Ltd (rated
'CRISIL AA/Positive/CRISIL A1+'), Bajaj Auto Ltd (rated 'CRISIL
AAA/FAAA/Stable/CRISIL A1+'), Larsen & Toubro Ltd (rated 'CRISIL
AAA/FAAA/Stable/CRISIL A1+'), and Whirlpool of India Ltd (rated
'CRISIL AA/Stable/CRISIL A1+'). VIEPL's products find application
in power and infrastructure industries, commercial buildings,
manufacturing facilities, warehouses, educational institutions,
hospitals, auditoriums, residential buildings, and multiplexes.

During the past five years, VIEPL executed several roofing
systems projects all over India, including for landmark
infrastructural projects such as the Delhi and Hyderabad
airports.

CRISIL believes that VIEPL will continue to tap emerging
opportunities and maintain its moderate business risk profile
over the medium term.
Outlook: Stable

CRISIL believes VRWC will continue to benefit over the medium
term from its promoter's extensive industry experience and its
strong clientele. The outlook may be revised to 'Positive' if
working capital management improves significantly and
sustainably, leading to better liquidity. Conversely, the outlook
may be revised to 'Negative' if liquidity deteriorates because of
increased working capital requirement or large debt-funded
capital expenditure (capex). The extent of debtors greater than
six months along with bad debts written-off will continue to
remain key monitorables over the medium term.

VRWC, based in Mumbai and incorporated in 2003, was set up by Mr.
Vijaynath Shetty. The company provides consultancy and
installation services for aluminium, steel, copper, and zinc
roofing systems.

VRWC reported a net loss of about INR0.2 crores on an operating
income of INR55.8 crores for fiscal 2016 against a profit after
tax (PAT) of INR0.01 crores on an operating income of INR42.02
crores for fiscal 2015.



=================
I N D O N E S I A
=================


BUKIT MAKMUR: Fitch Assigns BB- Rating to USD350MM Sr. Notes
------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based mining contractor PT
Bukit Makmur Mandiri Utama's (BUMA, BB-/Stable) USD350m 7.75%
senior notes due in 2022 a final rating of 'BB-'.

The final rating follows the receipt of documents conforming to
the information already received, and is in line with the
expected rating assigned on Jan. 16, 2017. BUMA will use the
proceeds from the new notes and from a new USD100m secured bank
loan to refinance its existing amortising bank debt.

KEY RATING DRIVERS

Leading, Established Coal Contractor: BUMA has 17% market share
in Indonesia's mining sector and a proven record in winning and
renewing customer contracts: its top three customers are
Indonesia's major and lowest-cost producers, PT Berau Coal,
PTAdaro Indonesia and PT Kideco Jaya Agung. BUMA's secured and
potential contracted revenue backlog over the next decade, with
an average contract length of five years (including life of mine
contracts), provides some earnings and cash flow visibility.

Volume Driven Growth: In the last two years, BUMA has signed
contracts with three new customers PT Sungai Danau Jaya, PT
Angsana Jaya Energi and PT Tadjahan Antang Mineral whose
operations have already started. In 2016 BUMA signed a contract
extension with PT Berau Coal in Lati (adding the PQRT pit for the
life of the mine), which will result in significant volume
increase in 2017, and in Binungan 7. The company also signed
contracts with PT Adaro Indonesia and PT Tadjahan Antang Mineral
to extend the contract duration to reflect the life of the mines,
which have started operations. These contracts have helped BUMA
offset volume loss from discontinued customers due to the
downturn over the previous three years. Fitch expects rising
volumes notably from PQRT to boost BUMA's overall volume by 30%
in 2017.

Stable and Resilient Margins: BUMA benefits from implemented cost
efficiency initiatives. This has kept its EBITDA margin between
27%-34%, even during the commodity downturn. BUMA's market
position enables it to achieve favourable equipment supply terms,
including extended warranties. Fitch expects such benefits to
remain available during industry downturns, particularly given
the flexibility BUMA's large scale provides compared with its
smaller peers. The company's foreign-exchange risk is mitigated
by US dollar-denominated cash flows.

High Customer Concentration: BUMA's revenues depend on only six
counterparties, escalating its customer concentration risk.
However, the risk of a major contract not being renewed is
mitigated by high customer switching costs and long transition
periods. In addition, BUMA has a strong record of meeting
customer expectations, leading to long relationships and high
contract renewal rates. Fitch recognises that BUMA's strategy is
to have a small number of quality customers with long-term
contracts.

Demonstrated Operational Flexibility: BUMA's ability to preserve
cash flow in the last commodity down-cycle by optimising its
existing fleet and reducing capex in the three years to 2016
helped it manage its finances significantly better than most
other mining contractors, although the lower capex decreased its
capex flexibility. However, higher capex from 2016 especially on
BUMA's medium-size fleet, which Fitch expects to continue over
the next 5-6 years, will rebuild the company's operating
flexibility to a level comfortable for its 'BB' rating.

Deleveraging Despite High Capex: Fitch expects BUMA's
deleveraging momentum to continue, despite planned high capex in
the next four years to meet cyclical maintenance requirements.
Robust cash flow should help FFO net leverage trend below 3.0x
from 2017 under its base-case scenario. The refinancing of BUMA's
amortising debt through the bond issue and new secured bank loan
should also help the company manage its increased capex
requirements in the medium-term.

Strong Management and Shareholders: BUMA benefits from a strong
management team with extensive mining sector experience as well
as previous experience working for large, internationally
renowned multinationals. BUMA is wholly owned by PT Delta Dunia
Makmur Tbk., which is 39.3%-owned by Northstar Tambang Persada
Ltd, comprising TPG Capital, Northstar PacificPartners, GIC
Private Limited and China Investment Corporation. The remainder
is owned by the public.

DERIVATION SUMMARY

BUMA does not have a direct-rated peer in the coal-services
industry. However, BUMA's BB-'rating is well-positioned compared
to companies in the oilfield series industry, and other
Indonesian high-yield peers. Its smaller scale against major
oilfield services peers, notably Eurasia Drilling Company Limited
(BB/Negative) and China Oilfield Services Limited (A/Stable; 'BB'
Standalone credit profile) is offset by its improving industry
conditions and financial profile.

No country-ceiling, parent/subsidiary linkage or operating
environment aspects impacts the rating.

KEY ASSUMPTIONS

Fitch's key assumptions within its  rating case for the issuer
include:
- Volume growth of around 30% in 2017 following the execution of
its contract extensions and new contracts and 2%-3% in 2018-2020;
- Contract pricing reflecting Newcastle coal prices as per Fitch
price deck (USD57 in 2017 and USD60 in 2018); and
- Average annual capex of USD110m in 2016-2020 (2015: USD46m
excluding financial leases)

RATING SENSITIVITIES

Developments that may, individually or collectively, lead to
negative rating action include:
- Weakening of BUMA's market position, including a failure to
retain major customers, contract volumes falling short of Fitch's
expectations or weaker-than-expected cash flow generation leading
to deteriorating credit metrics.
- FFO-adjusted net leverage above 3.0x on a sustainable basis
due to higher capex or adverse industry conditions.

Fitch does not expect positive rating action in the near-term due
to BUMA's exposure to the cyclical coal industry, customer
concentration and counterparty credit quality.

LIQUIDITY

Adequate Liquidity, Long-Term Debt Maturity: BUMA has adequate
liquidity from internal cash flow generation and its long-term
debt profile. Following its new note issue and the company's new
secured bank loan, BUMA will have modest annual debt repayments
and no major debt repayments due before 2021-2022.


PAKUWON JATI: Fitch Assigns BB- Final Rating to USD250MM Notes
--------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based property developer PT
Pakuwon Jati Tbk's (Pakuwon, BB-/Stable) USD250 million 5% senior
unsecured notes due in 2024 a final rating of 'BB-'. The notes
will be issued by Pakuwon's wholly owned subsidiary Pakuwon Prima
Pte Ltd, and guaranteed by Pakuwon and certain subsidiaries.

Pakuwon intends to use the net proceeds of the proposed notes to
redeem its existing USD200m 7.125% senior unsecured notes, which
are due in 2019, and for general corporate purposes. Fitch
expects Pakuwon's financial profile to remain within the
parameters of its 'BB-' Long-Term Issuer Default Rating as the
new notes will be used mainly for refinancing and to extend the
maturity profile of the company's debt, allowing more flexibility
to manage cash flows.

The final rating follows the receipt of documents conforming to
the information already received and is in line with the expected
rating assigned on 6 February 2017. The notes are rated at the
same level as Pakuwon's senior unsecured rating as they represent
the company's unconditional, unsecured and unsubordinated
obligations.

KEY RATING DRIVERS

Solid Investment Property Portfolio: Pakuwon's ratings reflect
its strong investment property (IP) portfolio, which is driven
mainly by its mall operations and generated around 80% of its
total recurring revenue in 2015. Pakuwon's malls have an average
occupancy rate of over 90%, and have lease expiry profiles of
over five years on average, with most of the leases on a fixed-
rent basis. Fitch expects Pakuwon's recurring EBITDA/interest
coverage ratio to remain above 2x and for recurring EBITDA to
comfortably cover loan amortisation and dividend payments in
2016-2018.

More Volatile Development Business: Pakuwon also has significant
exposure to development properties, where cash flows are
inherently cyclical and more volatile. Pakuwon reported
contracted sales of IDR1.6trn in 9M16, down by 36% yoy, and
accounting for about 75% of management's 2016 contracted sales
forecast. Pakuwon's IP portfolio moderates this exposure;
recurring income from the IP portfolio contributed around 50% of
total cash inflow in the past three years. Pakuwon also benefits
from its market leadership in Surabaya and its ability to create
value from its large integrated mixed-use developments, despite
being a smaller developer than its similarly rated peers.

Limited Scale and Diversification: Pakuwon's rating also reflects
its relatively small development property scale and limited
project diversification compared with higher-rated international
peers. Pakuwon's current land bank of around 450 hectares still
allows for over 10 years of development, but the relatively low
number of projects, modest contracted sales and lack of
geographical diversification will remain a constraining factor
for the medium term.

Conservative Financial Policy, Leverage: Pakuwon has maintained a
conservative financial profile and has a record of low leverage.
The company has managed to keep its leverage (net debt/adjusted
inventory ratio) below 30% over the past three years and Fitch
expects its leverage to fall to around 20% by 2018, as demand and
the cash-collection cycle improve. Fitch believes Pakuwon's
leverage remains appropriate for its 'BB-' rating.

Manageable US Dollar Exposure: Fitch believes Pakuwon's solid
recurring EBITDA generation provides a comfortable buffer against
depreciation of the Indonesian rupiah versus the US dollar. Fitch
estimates that Pakuwon's recurring EBITDA/interest coverage ratio
will remain above 2x should the rupiah depreciate to 15,000 per
dollar, all else remaining equal. Furthermore, Pakuwon has hedged
the principal of its US dollar bond against depreciation of the
rupiah using a number of call spread agreements, with an overall
upper-lower strike range of 13,000-17,500 per dollar.

DERIVATION SUMMARY

Pakuwon's rating is well-positioned relative to other Fitch-rated
property developers, such as PT Bumi Serpong Damai Tbk (BSD, BB-
/Stable), and PT Lippo Karawaci Tbk (Lippo, BB-/Stable). Fitch
believes that BSD's larger property development scale and larger
land bank relative to Pakuwon is compensated for by the latter's
higher recurring EBITDA interest coverage. Lippo has high
leverage but greater financing flexibility, whereas Pakuwon has
lower leverage and higher recurring EBITDA interest coverage.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:
- Contracted sales of around IDR2trn in 2017
- Recurring EBITDA margin of around 55% in 2017
- Average IP rental charge growth of around 5% yoy in 2017 and
2018
- Construction capex of around IDR2trn in 2017

RATING SENSITIVITIES

Fitch does not foresee positive rating action in the next two
years. However, an upgrade might be considered if the IP assets
increase to above USD1bn and its top-three IP assets generate
less than 60% of recurring revenue (2015: 78.2%).

Developments that may, individually or collectively, lead to
negative rating action include:
- Sustained deterioration in the ratio of recurring EBITDA from
investment properties to interest to below 2.0x (2016F: 2.5x)
- Net debt/adjusted inventory (adjusted inventory defined as
investment properties + inventory + landbank + advances for land
acquisitions - advances from customers) rising above 35% on a
sustained basis (2016F: 26%)
- Weakening of the business profile that would be reflected in a
significant rise in vacancy rates or a sustained fall in rentals
- Share of cash flows generated from investment property falls
to less than 40% (2016F: 53%)

LIQUIDITY

As of September 2016, Pakuwon had cash balance of IDR2.3trn and
unused credit facilities of around IDR1.5trn, which are adequate
to cover outstanding short-term debt of IDR700bn, forecast
construction capex of IDR1.7trn in 2017 and planned land
acquisition capex of IDR250bn in 2017, part of which is
discretionary. There is also flexibility around the forecasted
construction capex as it is partly driven by the level of new
properties sold during the year.



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


TOSHIBA CORP: Delays Quarterly Earnings Announcement
----------------------------------------------------
Asian Nikkei Review reports that Toshiba Corp. on Feb. 14
announced that it will postpone its quarterly earnings
announcement by up to a month. The company submitted the
necessary application to the financial authority and awaiting
approval, the report says.

A new date for the announcement will need to be scheduled by
March 14, Nikkei says.

According to the report, the company explained it had received
internal information about inadequate governance during the
acquisition process of a U.S. nuclear construction company, from
which Toshiba will book significant losses.

"We concluded on Monday afternoon [Feb. 13] that we need further
research on the internal reporting and its impact on financial
results," the company said in a statement, Nikkei relays.

Toshiba was originally scheduled to deliver its results at noon
on Feb. 13. Shortly after midday, however, investors were
informed via the company website that it was "unable to disclose
earnings" on time, the report says.

Nikkei notes that the market is bracing for Toshiba's results for
the April-December period, with the company poised to book a huge
loss on its U.S. nuclear business.

The Tokyo Stock Exchange requires listed companies to announce
earnings within 45 days of the end of a reporting period. Tuesday
[Feb. 13] was the 45th day for Toshiba, Nikkei notes.

                          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. 26, 2017, that S&P Global Ratings
said it has lowered its long-term corporate credit rating on
Toshiba Corp. to 'CCC+' and its short-term corporate credit and
commercial paper program ratings on the company to 'C', all by
one notch.  All of these ratings remain on CreditWatch with
negative implications.  S&P also lowered its senior unsecured
debt rating on Toshiba two notches to 'B-' from 'B+' and kept the
rating on CreditWatch negative.  On Dec. 28, 2016, S&P placed the
long- and short-term ratings on Toshiba on CreditWatch with
negative implications at the same time as lowering the long-term
ratings, in response to Toshiba's announcement that it might
recognize several JPY100 billion in impairment losses related to
goodwill arising from its acquisition of a nuclear power business
through U.S.-based Westinghouse Electric Co. LLC, because the
goodwill far exceeded the company's initial estimates.



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


KUANTAN FLOUR: Auditors Raise 'Going Concern' Doubt
---------------------------------------------------
The Star Online reports that Kuantan Flour Mills Bhd's (KFM)
external auditors have issued a qualified opinion on the
company's latest annual financial statements, pointing to
material uncertainty that may cast doubt on KFM's ability to
continue as a going concern.

In its report that was posted on Bursa Malaysia on Feb. 3, the
audit firm, McMillan Woods Thomas, said the KFM group and the
company both incurred net losses during the financial year ended
Sept. 30, 2016.

It said the group recorded a net loss of RM12.09mil while the
company showed a net loss of RM12.04mil.

At the same time, both had net current liabilities of nearly
RM18mil and negative shareholders' funds of RM10.8mil.

The Star says McMillan Woods Thomas noted that KFM had not
finalised any business plan to revive the group since it
announced on Dec. 28, 2015, its status as an affected issuer
under Practice Note No 17 (PN17).

As the group or company may not be able to remain in business, it
may be unable to realise its assets and discharge its liabilities
in the normal course of business, the auditors said, The Star
relays.

KFM temporary ceased its flour milling operations at the end of
September 2016 to focus its effort on its regularisation and
restructuring plans to uplift its PN17 status, according to the
Star.

On Dec. 9 last year, Felcra Bhd expressed its interest to explore
and possibility to participate in KFM's equity, the Star recalls.
However, Felcra retracted its register of interest a week later.

The Star relates that later in December, KFM signed a memorandum
of understanding with Lotus Essential Sdn Bhd, a trader of steam
coal, corn starch and tapioca starch, to collaborate in carrying
out flour milling activities and trading of flour and food-
related products.

Currently, KFM is awaiting Bursa Malaysia Securities' decision on
its application for an extension of time to summit its
regularisation plan, the Star notes.

Kuantan Flour Mills Berhad is a Malaysia-based company engaged in
flour milling and trading in its related products.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 8, 2016, theedgemarkets.com said Kuantan Flour Mills Bhd, a
PN17 company since Dec 12, 2015, is still looking into the
formulation of its regularization plan of its financial
conditions.



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


MAGNACHIP SEMICON: Moody's Says Improved 2016 Results Credit Pos.
----------------------------------------------------------------
Moody's Investors Service says that MagnaChip Semiconductor
Corporation's improved results for the fiscal year ended Dec. 31,
2016 (FY2016) were credit positive and consistent with its Caa1
corporate family rating. The rating outlook remains stable.

"MagnaChip's business turnaround continued in 2016, with its
reported operating loss narrowing to $5 million, excluding an
asset disposal gain, compared with a $43 million loss in 2015,"
says Gloria Tsuen, a Moody's Vice President and Senior Analyst.

Cash flow from operations also turned positive in 2016, reaching
$8 million compared with an outflow of $10 million in 2015.

"Moody's expect the improvement to continue in 2017, and
operating income excluding restructuring charges will turn
positive, driven by continued improvement in the foundry, power
and display businesses, renewed growth in 2H 2017 of the AMOLED
product line, product mix upgrades, and cost controls," adds
Tsuen.

MagnaChip's revenue grew 9% year-on-year to $688 million in 2016,
and its gross margins rose 1.4 percentage points to 22.7%, driven
by the AMOLED product line, new products, customers and a
favorable product mix in foundry services.

However, despite the improvement, its profitability remained weak
in 2016, which resulted in turn in its adjusted debt/EBITDA
remaining high at about 8x.

MagnaChip's debt will increase in 2017 to around $307 million,
following the issuance in January 2017 of about $86 million in
exchangeable notes.

The funding will, however, improve the company's liquidity.
Proceeds from the offering will be used for a cost reduction
program (approximately $30-$40 million), capital expenditures
($15-$20 million), share buyback (up to $15 million), and for
general corporate purposes.

MagnaChip's liquidity remains adequate. It had $83 million in
cash and equivalents and no short-term debt at the end of 2016.

The principal methodology used in these ratings was Semiconductor
Industry Methodology published in December 2015.

MagnaChip Semiconductor Corporation is a Korea-based designer and
manufacturer of analog and mixed signal semiconductor products
for consumer, communication, industrial and computing
applications.


                             *********

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.



                 *** End of Transmission ***