TCRAP_Public/170222.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 22, 2017, Vol. 20, No. 38

                            Headlines


A U S T R A L I A

ANKEI CONSTRUCTION: First Creditors' Meeting Set for March 2
BUILTON GROUP: Fitzgerald Plan to Finish Projects Left in Limbo
MESOBLAST LIMITED: Capital Research Reports 7.9% Equity Stake
PEPPER RESIDENTIAL: Moody's Ups Rating on Cl. F Notes to Ba3(sf)
QUEENSLAND NICKEL: Liquidators May Ask Arrest Warrant for Mensink


C H I N A

OKCOIN EXCHANGE: Investor Seeks to Liquidate Firm in HK Court


I N D I A

ALTAIR POWER: Ind-Ra Assigns 'B-' Long-Term Issuer Rating
AMBEY METALLIC: ICRA Reaffirms B+ Rating on INR5.65cr Loan
ATLANTIC PROJECTS: CARE Assigns D Rating on Debt Servicing Delays
BHAVANI CONSTRUCTIONS: Ind-Ra Assigns BB+ Long-Term Issuer Rating
CIMECHEL ELECTRIC: Ind-Ra Raises Long-Term Issuer Rating to 'BB-'

DABRA AGRO: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
DSM SOFT: ICRA Reaffirms B+ Rating on INR14cr LT Loan
ELASTOCHEMIE IMPEX: Ind-Ra Assigns 'B' Long-Term Issuer Rating
FACOR ALLOYS: ICRA Reaffirms 'D' Rating on INR33.53cr Loan
FERRO ALLOYS: ICRA Raises Rating on INR60.49cr Loan from 'D'

GARG CASTEELS: CARE Reaffirms 'B' Rating on INR.20cr LT Loan
GEETANJALI AGRO: ICRA Reaffirms B+ Rating on INR9.25cr Cash Loan
GOLDSTAR METAL: ICRA Reaffirms 'D' Rating on INR10cr Loan
H D MOTORS: Ind-Ra Assigns 'B-' Long-Term Issuer Rating
JAI BHAGWATI: Ind-Ra Assigns 'B+' Long-Term Issuer Rating

JAIPRAKASH ASSOCIATES: Net Loss Widens to INR1,095cr in Q3
JAIPRAKASH POWER: Allocates 305.80cr Shares to Lenders
KSP INC: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
KUNA IMPEX: ICRA Reaffirms B+ Rating on INR5.48cr Loan
LORD SHIVA: CARE Lowers Rating on INR10.5cr Loan to B+

MANOJ TRADING: ICRA Reaffirms B+ Rating on INR30cr Cash Loan
MEERA GLASS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
MGI INDIA: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
NARESH SINGHAL: CARE Reaffirms B+ Rating on INR2.5cr Bank Loan
NAVDURGA ISPAT: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating

NMC INDUSTRIES: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
ORIGIN FORMULATIONS: CARE Reaffirms B Rating on INR27.4cr LT Loan
PANACHE EXPORTS: ICRA Lowers Rating on INR7cr LT Loan to B+
PIYUSH COLONIZERS: ICRA Lowers Rating on INR30cr LT Loan to D
PREM INDUSTRIES: CARE Reaffirms B+ Rating on INR9.11cr LT Loan

ROYAL TYRES: ICRA Lowers Rating on INR6.21cr Loan to 'B'
SANT FOODS: ICRA Reaffirms B Rating INR15cr Fund Based Loan
SANTOSH PULSE: CARE Reaffirms B+ Rating on INR6cr LT Bank Loan
SHIV SHAKTI: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
SRI SRINIVASA: Ind-Ra Assigns 'B+' Long-Term Issuer Rating

SUNTANA TEXTILE: ICRA Reaffirms B-/A4 Rating on INR12.95cr Loan
SVM CERA: ICRA Reaffirms 'D' Rating on INR5.50cr Cash Loan
THETIS CV: Ind-Ra Assigns Provisional BB Rating on INR51.3MM PTC
VELMURUGAN HEAVY: ICRA Reaffirms B+ Rating on INR15cr LT Loan
VIPUL LIMITED: ICRA Withdraws B+ Rating on INR70cr LT Loan


J A P A N

TOSHIBA CORP: Seeks at Least $8.8 Billion in Chip Stake Sale


M O N G O L I A

MONGOLIA: S&P Assigns 'B-' LT Issue Rating to US$-Denom. Notes


N E W  Z E A L A N D

BLUE CHIP: Commercial Factors Chases Liquidator Over Unpaid Bill
PINNACLE LIFE: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
QUEST INSURANCE: A.M. Best Affirms B(Fair) Fin. Strength Rating
TENON LIMITED: Remaining Assets Sold for US$55 Million


P H I L I P P I N E S

* PHILIPPINES: LGUs to Face PHP821-Mil. Losses from Mine Closures


                            - - - - -


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


ANKEI CONSTRUCTION: First Creditors' Meeting Set for March 2
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Ankei
Construction Pty Ltd will be held at the offices of Romanis Cant,
Level 2, 106 Hardware Street, in Melbourne, Victoria, on March 2,
2017, at 11:00 a.m.

Anthony Robert Cant and John Stuart Potts of Romanis Cant were
appointed as administrators of Ankei Construction on Feb. 20,
2017.


BUILTON GROUP: Fitzgerald Plan to Finish Projects Left in Limbo
---------------------------------------------------------------
Helen Shield and Nick Butterly at The West Australian report that
Laurie Fitzgerald, cited by Builton Group managing director Troy
Felt as a mentor and "very influential", has distanced himself
from the collapsed construction company and his former protege.

Mr. Fitzgerald has never been a director of Builton Group nor any
of the Builton companies under administration, according to The
West Australian.

The report notes that Mr. Fitzgerald said he was working "as
quickly as I can" to complete big apartment projects left in
limbo by Builton's collapse and had engaged two former Builton
employees to help with this.  "I am not a director of Builton nor
have I ever been," the report quoted Mr. Fitzgerald as saying.

The report notes four Builton companies including Builton Group
and Builton Corp, which traded as Platinum Homes, Aspireon, Multi
Living by Design and Investwise, were placed under external
administration on January 23 owing creditors more than $30
million.  Many subcontractors hit by the collapse now face ruin,
the report relays.

Several of Builton Group's bigger projects, including the almost
finished Quattro apartments in Burswood and Vue in Maylands, were
not owned by Builton, but by syndicate companies linked to Mr
Fitzgerald, the report notes.

"Quattro and Vue . . .  are (owned by) independent companies
which contracted Builton Corp as the builder," Mr. Fitzgerald
told WestBusiness, says the report.  "These companies were
therefore clients of Builton . . . and its investors are equally
impacted . . . in the same way that homeowners are."

Australian Securities and Investments Commission records show
Quattro and Vue were controlled by syndicate companies based in
the Builton head office that listed Mr Fitzgerald as a director
and shareholder, the report discloses.  The syndicates'
registered address was shifted to Mr. Fitzgerald's home address
in Hillarys after Builton companies went into administration, the
report relays.

The report notes that Mr. Fitzgerald said Mr. Felt had been
"requested to resign" as a director of the syndicate companies
and ASIC records confirm this occurred on January 23, the day Cor
Cordis were appointed external administrators.

According to the report, the Building Commission, under fire for
giving Builton Group a clean bill of health weeks before it
collapsed, last week responded to reports that former Builton
Group employee Darren Alexander, now a director of Buildplex, had
approached subcontractors to finish work on Quattro and Vue, the
report relays.  Director of compliance Sandy Randall said
Buildplex was not a registered builder.

The report says adding to the confusion, Mr. Alexander used a
Builton syndicate shell company, BPS Holdings No 22 Pty Ltd, to
launch his Buildplex business. ASIC records reveal Mr Alexander
became a director on January 18, five days before Cor Cordis was
appointed external administrator.

On February 10, Mr. Fitzgerald confirmed he had engaged Mr.
Alexander and another former Builton employee for advice on how
to get the projects finished as quickly as possible, the report
says.  The duo were seeking registered builders to complete the
projects, he added.

"My job now is to fulfil my director's duties in the best
interests of the (syndicate) companies that I am a director of
and to get the projects finished as quickly as I can to pay the
banks, deliver various products to our customers and repay the
investors," Mr. Fitzgerald said, notes the report.

Mr. Fitzgerald and Mr. Alexander declined to explain the
relationship between Mr. Fitzgerald's current company Land
Investors Finance and the Builton group, the report notes.

They declined to answer questions about Mr Felt or the syndicate
companies that own the former Builton group projects.

Mr. Fitzgerald said that "with Builton going into administration
there's a lot of work to be done to get everything going again,"
the report relays.

When asked about how apartment owners who had paid a deposit
could contact the syndicates, Mr. Fitzgerald said he would
advertise in the next few weeks, the report relays.


MESOBLAST LIMITED: Capital Research Reports 7.9% Equity Stake
-------------------------------------------------------------
Capital Research Global Investors disclosed in an amended
Schedule 13G filed with the Securities and Exchange Commission
that as of Dec. 30, 2016, it beneficially owns 30,364,000
ordinary shares of Mesoblast Limited representing 7.9% of the
shares outstanding. A full-text copy of the regulatory filing is
available for free at https://is.gd/fIOWFq

                       About Mesoblast Ltd.

Melbourne, Australia-based Mesoblast Limited (ASX:MSB;
Nasdaq:MESO) develops cell-based medicines. The Company has
leveraged its proprietary technology platform, which is based on
specialized cells known as mesenchymal lineage adult stem cells,
to establish a broad portfolio of late-stage product candidates.
Mesoblast's allogeneic, 'off-the-shelf' cell product candidates
target advanced stages of diseases with high, unmet medical needs
including cardiovascular diseases, immune-mediated and
inflammatory disorders, orthopedic disorders, and
oncologic/hematologic conditions.

Mesoblast reported a loss before income tax of $90.82 million for
the year ended June 30, 2016, compared to a loss before income
tax of $96.24 million for the year ended June 30, 2015. As of
Sept. 30, 2016, Mesoblast had $665.4 million in total assets,
$155.6 million in total liabilities and $509.9 million in
total equity.

PricewaterhouseCoopers, in Melbourne, Australia, issued a "going
concern" qualification on the consolidated financial statements
for the year ended June 30, 2016, citing that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.


PEPPER RESIDENTIAL: Moody's Ups Rating on Cl. F Notes to Ba3(sf)
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on 5 classes
of notes issued by Pepper Residential Securities Trust No. 16.

The affected ratings are:

Issuer: Pepper Residential Securities Trust No. 16

-- Class B Notes, Upgraded to Aa1 (sf); previously on Apr 5,
2016 Definitive Rating Assigned Aa2 (sf)

-- Class C Notes, Upgraded to Aa3 (sf); previously on Apr 5,
2016 Definitive Rating Assigned A2 (sf)

-- Class D Notes, Upgraded to A3 (sf); previously on Apr 5, 2016
Definitive Rating Assigned Baa2 (sf)

-- Class E, Notes Upgraded to Baa3 (sf); previously on Apr 5,
2016 Definitive Rating Assigned Ba1 (sf)

-- Class F Notes, Upgraded to Ba3 (sf); previously on Apr 5,
2016 Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

The upgrade was primarily prompted by an increase in credit
enhancement (from note subordination, the yield enhancement
reserve and the retention ledger) available for the affected
notes and performance that is within expectations.

The rating action also reflects the correction of an error. In
prior rating actions, at closing, the interest rate for the USD
denominated notes was set incorrectly in the model. The latest
cash flow model reflects the corrected USD swap rate, which
partially reduced the positive impact of the build-up in credit
enhancement, in particular for the Class F Notes.

The sequential amortization of the notes since closing led to the
increase in note subordination. The note subordination available
for the Class B, Class C, Class D, Class E and Class F notes has
increased to 11.1%, 8.3%, 5.7%, 4.1% and 2.3% from 7.8%, 5.8%,
4.0%, 2.9% and 1.6%.

The yield enhancement reserve captures up to 0.3% of excess
spread per annum and a maximum amount of AUD2.5 million. It can
be used to pay senior expenses and interest on the Class A Notes.
Once the Class A Notes are repaid in full, the amounts standing
to the credit of the yield enhancement reserve will be used to
repay the notes in reverse sequential order, starting with the
Class F, followed by the Class E, Class D, Class C and then Class
B notes.

The retention amount captures up to 0.05% of excess spread per
annum and is also used to repay notes in reverse sequential order
starting with Class F.

The yield enhancement reserve and the retention ledger have
accumulated AUD1.3 million and AUD0.2 million respectively.

In addition, the transaction portfolio has been performing within
Moody's expectations. As of January 2017, cumulative loss amounts
totaled AUD61,224.

Based on the observed performance and outlook, Moody's maintained
its expected loss assumption at 1.5% as a percentage of the
original pool balance.

The decrease in both scheduled and indexed loan to value ratios
since deal closed in April 2016 has led to lower MILAN CE for the
transaction. Moody's decreased its MILAN CE assumption to 13.6%
from 15.2% since the deal closed in April 2016, based on the
current portfolio characteristics.

The MILAN CE and expected loss assumptions are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into the cash-flow model.

The transaction is an Australian RMBS secured by a portfolio of
prime and non-conforming residential mortgage loans. A portion of
the portfolio consists of loans extended to borrowers with
impaired credit histories, or made on a limited documentation
basis.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

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

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

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


QUEENSLAND NICKEL: Liquidators May Ask Arrest Warrant for Mensink
-----------------------------------------------------------------
Joshua Robertson at The Guardian reports that Queensland Nickel
liquidators may apply for an arrest warrant for Clive Mensink
after the sole director of the collapsed company failed to appear
for questioning in the federal court.

Lawyers for Mr. Mensink, who was summonsed to appear before a
liquidator's hearing on Feb. 21, sought to postpone his
appearance on medical grounds, explaining to reporters he had not
returned from overseas, The Guardian says.

The Guardian relates that Mr. Mensink, the nephew of QN's owner
Clive Palmer, has been on an around-the-world holiday since last
year, shortly after the company's collapse left almost 800
jobless and debts of AUD300 million.

According to The Guardian, Mr. Palmer told the court last
September that Mr. Mensink was on an Arctic cruise from Helsinki
to St Petersburg. He has also been spotted by Australian tourists
on a cruise off the coast of South America, The Guardian reports
citing the Australian.

The Guardian says Barrister Walter Sofronoff, for liquidator FTI
Consulting, asked the court on Feb. 21 to adjourn Mr. Mensink's
examination after being 'informed Mr. Mensink will not appear
today".

The Guardian relates that Mr. Sofronoff said liquidators would
consider seeking an arrest warrant for Mr. Mensink to secure his
appearance.

Federal court registrar Murray Belcher, who is overseeing the
hearing, said he would have to refer an application to a judge as
he didn't have the power to issue a warrant under corporations
law, the report relays.

Mr. Mensink's solicitor, Sam Iskander, later told reporters that
his client was overseas but he did not know what country he was
in.

The date of Mr. Mensink's appearance is yet to be fixed, the
report notes.

Mr. Mensink, the sole registered director of Queensland Nickel
faces the possibility of civil or criminal penalties if the
company is shown to have traded while insolvent, The Guardian
discloses.

The Guardian says liquidators allege his uncle, Mr. Palmer, acted
as a 'shadow director" who could be liable for breaches of
corporation law but Mr. Palmer has consistently denied any
wrongdoing.

                       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.



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C H I N A
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OKCOIN EXCHANGE: Investor Seeks to Liquidate Firm in HK Court
-------------------------------------------------------------
CoinDesk reports that Roger Ver's fight against Chinese bitcoin
exchange OKCoin is intensifying as the noted bitcoin investor
attempts to have the business liquidated in a Hong Kong court.

CoinDesk relates that the move comes after months of legal
wranglings that have already seen the exchange lose one court
case.  OKCoin's alleged lack of response to the judgment has now
prompted Mr. Ver to take further action that could ultimately see
the company closed, the report says.

According to CoinDesk, Mr. Ver first sued OKCoin in September,
seeking $570,000 plus unspecified damages in a breach-of-contract
suit tied to a dispute over the Bitcoin.com domain.

That conflict deepened amid accusations of forgery, as well as
impropriety on the part of OKCoin -- allegations that exchange
representatives swiftly denied, CoinDesk says.

In the end, Mr. Ver went to court, suing OKCoin's Hong Kong
entity. At the same time, Mr. Ver and attorney Daniel Kelman
prepared a suit against the exchange, as well as its chief
executive, Star Xu, over the alleged forgery of Mr. Ver's
signature. That suit is pending trial, CoinDesk relates.

According to court documents obtained by CoinDesk, OKCoin never
responded in court to the breach-of-contract suit. On
November 17, the court handed down a final and interlocutory
judgment awarding the HK$570,000 to Mr. Ver.

Yet, according to Messrs. Ver and Kelman, OKCoin has yet to
respond to both the court's decision, as well as further
entreaties, says CoinDesk.

As such, the two said they intend to go ahead with a request for
the Hong Kong court to liquidate OKCoin's local entity in a bid
to obtain the funds. According to the report, Mr. Kelman said a
liquidation petition is currently being drawn up.

"OKCoin just stopped responding. It became a one-sided
discussion, which basically means sue us. Sue us and stop
talking, so they didn't really give us much of a choice," the
report quotes Mr. Kelman as saying.

Documents provided to CoinDesk indicate that, after the November
judgment, OKCoin's legal representation in Hong Kong responded by
letter on December 23, asking that they set aside the original
court decision.  Mr. Kelman said they sent a response in turn,
requesting an offer -- which they never received.

A statutory demand letter was later served to OKCoin's Hong Kong
office on January 24, reiterating the $570,000 judgment handed
down by the court along with $13,867 in accrued interest,
CoinDesk relates.

According to CoinDesk, Mr. Ver said the exchange never responded
to that letter, which was also sent to its legal representatives
in Hong Kong.

The delivery of that letter triggered a 21-day notice period,
which ended on February 13, CoinDesk notes.

OKCoin said in a statement: "This case is still under legal
proceedings. There is no result in the matter to discuss,"
CoinDesk relays.

OKCoin owns business entities in China and Singapore, which could
be impacted by the outcome in Hong Kong should the judge approve
the liquidation. OKCoin may request that the suit be moved to
China, where it keeps its headquarters, CoinDesk reports.



=========
I N D I A
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ALTAIR POWER: Ind-Ra Assigns 'B-' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Altair Power
Private Limited (APPL) a Long-Term Issuer Rating of 'IND B-'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR60.00 mil. Fund-based working capital limit assigned
      IND B-/Stable/IND A4 rating;

   -- INR30.00 mil. Non-fund-based working capital limit assigned
      IND A4 rating; and

   -- INR20.00 mil. Proposed non-fund-based working capital
      limit* assigned IND A4 rating

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

                        KEY RATING DRIVERS

The ratings reflect fluctuating revenue, and weak credit metrics.
In FY16, revenue was INR140 million (FY15: INR49.24 million;
FY14: INR73.6 million).  Moreover, in FY16, net financial
leverage (total adjusted net debt/operating EBITDAR) was 4.63x
(FY15: 13.15x) and EBITDA gross interest coverage (operating
EBITDAR/gross interest expense + rents) was 1.12x (0.74x).  The
ratings also reflect APPL's short track record, considering it
commenced operations in 2013.

The ratings are constrained by a long operating cycle of 112 days
in FY16 (FY15: 252 days) and a tight liquidity position,
indicated by a 97.34% utilization of working capital limits
during the 12 months ended December 2016.

However, the ratings are supported by an improved operating
profitability (FY16: 7.56%; FY15: 5.85%) and an experienced
management.  The management has about seven years of experience.

                        RATING SENSITIVITIES

Positive:  An improvement in the liquidity position will be
positive for the ratings.

COMPANY PROFILE

Incorporated on Feb. 11, 2013, APPL is a private company engaged
in the manufacture of electric power cables (such as XLPE, PVC
and aerial bunched) that are used in the power transmission
industry. Its manufacturing facility, which has an annual
production capacity of 8.5 million meters of cables, is located
in New Delhi. Its directors are Mr Bhavesh Jain and Mr Sandeep
Jain.

APPL registered INR65 million in revenue for 9MFY17.


AMBEY METALLIC: ICRA Reaffirms B+ Rating on INR5.65cr Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ and the
short-term rating of [ICRA]A4 for INR30.00 crore bank facilities
of Ambey Metallic Limited. The outlook on the long-term rating is
'Stable'.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund-based limits      5.65       [ICRA]B+ (Stable); Reaffirmed

  Non-fund based
  limits                24.35       [ICRA]A4; Reaffirmed

Rationale
The ratings reaffirmation continues to take into account the
extensive experience of AML's promoters in the sponge iron
manufacturing business, and its presence in Goa, providing it
locational advantage of its proximity to key customers, ports and
raw material sources. The ratings, however, continue to remain
constrained by AML's weak financial profile characterised by
modest net profitability and coverage indicators and high working
capital intensity of operations arising out of high inventory
levels necessitating high reliance on external working capital
borrowings and additional funding through unsecured loans.
Further, due to the commoditised nature of the key raw materials
(iron-ore) and high inventory maintained, profitability remains
vulnerable to raw material price fluctuations. In light of the
sharply increasing imports since FY2016, there is increased
vulnerability to foreign exchange fluctuations in the absence of
active hedging. ICRA also takes note of the stiff competi tion in
the domestic and international markets, which restrict the
pricing flexibility of the company.

ICRA expects AML to report muted growth in FY2017 after a de-
growth recorded in FY2016 on the back of improving iron-ore
prices supported by fairly high capacity utilisation levels.
Going forward, the company's ability to improve its scale of
operations by maintaining profitability along with efficiently
managing a working capital profile by optimising inventory
holding would be critical to trim external working capital debt
and reduce reliance on unsecured loan funding.

Key rating drivers
Credit strengths
* Extensive experience of the management in sponge iron
manufacturing business
* Locational advantage backed by proximity to the customers,
source of raw materials and ports
Credit weaknesses
* Modest net profitability and weak coverage indicators
* High working capital intensity of operations due to escalating
inventory levels
* Margins vulnerability to price fluctuation risks due to
commoditised nature of products
* Forex risk owing to increasing imports and lack of active
hedging
* High customer concentration as top five customers account for
70% of total sales in FY2016;
* Stiff competition from other manufacturers in the sponge iron
industry restricts the pricing flexibility
Sensitivities
* Inability to liquidate inventory at favourable prices
* Adverse Government policies towards mining activities
affecting procurements and pricing;
* Ability to scale up its operations while improving
profitability levels and efficiency in working capital management

AML manufactures sponge iron from iron ore and coal at its
manufacturing facility in Goa. Sponge iron along with melting
scrap is the key raw materials utilised in the manufacturing of
mild steel ingots. Mr Sunil Garg, Mr Vinod Agarwal and Mr Pawan
Bansal are the promoters and the key management personal of the
company have an experience of more than two decades in iron and
steel industry.The customer base of AML includes producers of MS
ingots present in the state of Goa. Less than 5% of sponge iron
is supplied outside the state of Goa. The average sales
realisations of sponge iron have been continuously decreasing
since FY2013 primarily due to the overcapacity in China and the
overall sluggishness in the international as well as the domestic
market.

The company maintains a high stock of iron ore (three months at
any point of time) owing to the scarcity and irregular
availability of the same in the domestic market and the transit
time involved in imports, which exposes it to price fluctuation
risks. In the light of the significant inventory, managing
profitability in processing the iron ore and selling the finished
products at the prevailing market prices by effectively managing
the cost of procurement and production and forex risk is
critical.

The inventory levels of the company have significantly risen,
leading to high working capital intensity in the current fiscal.
The company's ability to liquidate the inventory while
maintaining profitability will be a key monitorable. Timely
infusion of unsecured loans will remain critical to fund working
capital requirements. Further, to maintain the capacity
utilisation levels in the manufacturing facility, in times of
mining restrictions and other policy measures such as high export
duty will be critical from the credit perspective.

Analytical approach: To arrive at the ratings ICRA has taken into
account the standalone financials of the firm along with key
operational developments in the recent past.

Incorporated in 2001, Ambey Metallic Limited manufactures sponge
iron using iron ore and coal as the key raw materials. Mr. Sunil
Garg, Mr. Vinod Agarwal and Mr. Pawan Bansal are the promoters
and the key management personnel of the company having an
experience of more than two decades in the iron and steel
industry. AML has an installed capacity of 36,000 Metric Tonnes
Per Annum (MTPA) at its manufacturing facility in Pissurlem, Goa.
The promoters have an experience of more than two decades in the
iron and steel industry.


ATLANTIC PROJECTS: CARE Assigns D Rating on Debt Servicing Delays
-----------------------------------------------------------------
CARE has been seeking information from Atlantic Projects Limited
to monitor the rating vide e-mail communications/letters dated
Oct. 14, 2016, Oct. 24, 2016, Dec. 19, 2016, Jan. 10, 2017 and
Feb. 8, 2017 and numerous phone calls. However, despite our
repeated requests, the company has not provided the requisite
information for monitoring the rating. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            123.45      CARE D; Issuer not
                                     cooperating; Revised from
                                     CARE BB+ on the basis
                                     of best available
                                     information

The rating on APL's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

The rating has been revised on account of the ongoing delays in
debt servicing by the company.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.

Detailed description of the key rating drivers

The rating has been revised on account of ongoing delays in debt
servicing by the company.

APL was incorporated in October, 1999, promoted by Mr. Siddharth
Mehra and his brother Mr. Kapil Mehra. The company commenced
commercial operation in 2005 by venturing into the cotton trading
business. The company trades in raw cotton, cotton yarn and
fabrics and it caters to both the domestic and export market. In
FY13, the company forayed into executing civil construction work
for public sector enterprises and was awarded contracts for
construction of multipurpose cyclone shelters and food godowns.

In FY15 (refers to the period April 1 to March 31), APL reported
a net profit of INR3.94 crore on a total operating income of
INR311.24 crore. In 9MFY16, the company reported total operating
income of INR198.48 crore.


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

   -- INR50 mil. Fund-based working capital limits assigned
      IND BB+/Stable/IND A4+ rating

                        KEY RATING DRIVERS

The ratings reflect BC's moderate scale of operations and order
book position.  Revenue was INR919.3 million in FY16 (FY15:
INR891.2 million) and EBITDA margin was 4.1%-6.2% during FY13-
FY16.  As of April 2016, it had orders worth INR1,140.3 million
pending for execution in FY17, providing revenue visibility.

The ratings also reflect the partnership structure of the firm.

The ratings, however, are supported by BC's comfortable credit
metrics and liquidity position.  Net leverage (Ind-Ra adjusted
net debt/operating EBITDA) was 0.5x in FY16 (FY15: 0.6x) and
interest coverage (operating EBITDA/gross interest expense) was
8.5x (12.0x).  Its average peak utilization of fund-based limits
during the 12 months ended December 2016 was about 82%.
Moreover, its managing partner has about two decades of
operational experience in the engineering, procurement and
construction (EPC) business.

                       RATING SENSITIVITIES

Negative: A decline in revenue and/or EBITDA margin leading to a
sustained deterioration in credit metrics and/or liquidity
position could lead to a negative rating action.

Positive: A substantial rise in revenue and an improvement in
order book position while maintaining credit metrics could lead
to a positive rating action.

COMPANY PROFILE

Established in 1998, BC is a partnership firm that is engaged in
EPC works, especially roads.  It registered INR700 million in
revenue for 9MFY17.


CIMECHEL ELECTRIC: Ind-Ra Raises Long-Term Issuer Rating to 'BB-'
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Cimechel
Electric Company's (CEC) Long-Term Issuer Rating to 'IND BB-'
from 'IND B+'.  The Outlook is Stable.  The instrument-wise
rating actions are:

   -- INR120 mil. Fund-based limits raised to IND BB-/Stable
      rating;

   -- INR200 mil. Non-fund-based limits raised to IND A4+ rating;

   -- INR60 mil. Fund-based limits assigned with IND BB-/Stable
      rating;

   -- INR150 mil. Non-fund-based limits assigned IND A4+ rating;

   -- INR70 mil. *Proposed-fund-based limits assigned with
      provisional IND A4+ rating;

   -- INR100 mil. *Proposed non-fund-based limits assigned with
      provisional IND A4+ rating

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

                         KEY RATING DRIVERS

The upgrades reflect CEC's improvement in scale of operations and
its credit metrics.  According to FY16 financials revenue was
INR618.9 million (FY15: INR262.5 million).  Revenue improved on
account of improvement in the work order execution.  CEC's gross
interest coverage (operating EBIDA/gross interest expenses) was
2.1x in FY16 (FY15: 1.6x) and net leverage (total adjusted net
debt/operating EBITDA) was 3.2x during FY16 (FY15: 5.3x).  The
improvement in credit metrics was backed by improvement in
revenue.  Working capital days also improved to 91 days in FY16
(FY15:280 days) as inventory days improved to 5 days (FY15: 280
days) and receivable days improved to 108 days (214 days).

The company's liquidity position is strong as reflected by its
around 60% use of the working capital limits on average during
the 12 months ended January 2017.

The ratings are also supported by CEC's founder's experience of
over three decades in the electric contract business.

The ratings, however, reflect CEC's decrease in operating margin
to 9.2% during FY16 (FY15: 16.1%) on account of increase in
operating cost.  The ratings are constrained on account of CEC's
partnership nature of business.

                      RATING SENSITIVITIES

Negative:  Any deterioration in credit metrics could be negative
for ratings.

Positive: An improvement in operating margin along with credit
metrics could be positive for ratings.

COMPANY PROFILE

CEC was incorporated in October 1992 as a partnership entity.
CEC is a licensed contractor for Central Railways in Maharashtra.
The firm undertakes overhead electrification activities and other
electrical activities on tender basis.


DABRA AGRO: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Dabra Agro Pvt.
Ltd. (DAPL) a Long-Term Issuer Rating of 'IND B+'.  The Outlook
is Stable.  The instrument-wise rating actions are.

   -- INR112.5 mil. Fund-based limit assigned with IND B+/Stable
      rating;

   -- INR31.36 mil. Term loan assigned with IND B+/Stable rating

                         KEY RATING DRIVERS

The ratings reflect moderate scale of operations and moderate
credit metrics.  Revenue declined to INR596 million in FY16 from
INR695 million in FY15 due to a fall in overall sales volume.
Gross interest coverage (operating EBITDAR/gross interest
expense) was 2.3x (FY15: 2.1x) and net leverage (total adjusted
net debt/operating EBITDAR) was 5.9x (4.7x).

The ratings are constrained by DAPL's tight liquidity position,
indicated by a 94% utilization of fund-based limits during the 12
months ended December 2016a, and limited operational track
record. Its rice processing unit commenced commercial operations
from FY14.

The ratings, however, are supported by an improvement in EBITDA
margin to 4.3% in FY16 from 3.9% in FY15, driven by a decline in
cost of materials.

                      RATING SENSITIVITIES

Negative: A sustained deterioration in credit metrics could be
negative for the ratings.

Positive: A sustained improvement in credit metrics could be
positive for ratings.

COMPANY PROFILE

DAPL set up a rice processing unit in Dabra, Madhya Pradesh,
which has operating since FY14.  Before FY14, DAPL was engaged in
the trading of food grains and paddy.


DSM SOFT: ICRA Reaffirms B+ Rating on INR14cr LT Loan
-----------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ outstanding
on the INR14.00 crore (revised from INR10 crore) long term fund
based facilities of DSM Soft Private Limited.  The outlook of the
long term rating is Stable. ICRA has withdrawn the short-term
rating of [ICRA]A4 assigned to the INR4.00 crore fund based
limits of the company as there is no amount outstanding against
the rated instrument.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term: Fund
  based limits            14.0      [ICRA]B+(Stable)/reaffirmed

Rationale
The rating reaffirmation factors in the long standing experience
and track record of the company in providing software services in
the geospatial and engineering domains. The ratings are also
supported by diversified customer base of the company across
geographies. Rating also factors in the improvement in financial
risk profile in FY2016 marked by higher net profit margin and
lower gearing. The rating, however, continues to be constrained
by the modest scale of operations, high working capital
intensity, high gearing on an absolute level and the
susceptibility of company's revenues to fluctuations in the order
flow. The ratings also take note of vulnerability of margins to
forex risk.

Going forward, the company's ability to increase its scale of
operations, improve the gearing level, and maintain optimal
working capital intensity will be the key rating sensitivity.

Key rating drivers
Credit Strengths
* Track record of the company in providing geospatial services
for more than a decade
* Reputed customers in several geographic locations; Marketing
in overseas location aided by subsidiary company
* Improvement in financial risk profile in FY2016 marked by
higher net profit margin and lower gearing
Credit Weakness
* Modest scale of operations
* Financial performance susceptible to forex fluctuations
* Weak Financial risk profile marked by high gearing and high
working capital intensive operations
Description of key rating drivers highlighted above:
The company derives most of its revenues from the services
segment; mainly in Geospatial and Engineering domains. The
company has established relationships with clients like national
mapping agencies in U.K and Australia and also caters to
customers in other regions like South Africa, Canada and Oman.
The sales and marketing for overseas locations is also supported
by its subsidiary - DSM Geodata Limited in Scotland and the
company has received repeat orders from several customers. The
company has tied up contracts to provide vehicle tracking and
fuel tracking service on a subscription based business model.
This subscription based revenue has supported the top line of the
company in FY 2016 and is also expected to aid the revenue growth
for the company in the near to medium term. The company's order
book as on date is healthy and comparable to historical levels.
Moreover, some of the orders are recurring in nature due to
subscription based revenue model. The geographic concentration is
also moderate compared to previous year with orders from regions
like UK, Australia, Oman, India, USA. The project to provide
vehicle tracking and fuel tracking service has started bearing
steady revenue in the current fiscal and going forward this
project will be the major revenue earner on a recurring basis.

The company's scale of operations remains modest which in turn
restricts operational and financial flexibility to an extent. The
revenue declined in FY2016 as some of the projects were delayed
and also WIP remained high as on March 31, 2016. Margins also
remain susceptible to forex fluctuations as the clientele are
located in variety of countries across the globe. The company
continues to have high working capital on account of high
inventory days, mainly due to work in progress projects. The
receivable days though improved in March 2016 on the back of
improvement in collections still remains high on account of
lumpiness in order execution towards the year end. Additionally,
in some cases, due to stringent quality checks employed by
clients the receivables period tends to be on higher side. As on
March 31, 2016, the company had gearing of 2.1 and it had also
availed INR5.2 crore of unsecured loans from the directors and
shareholders out of total debt of INR19.1 crore. In FY2016,
despite lower interest costs, the coverage indicators remained at
the same level as of FY2015 due to decline in operating profit.
Going forward, with repayments of loans and expected positive
accretion to reserves the gearing is set to improve.

DSM Soft Private Limited was incorporated in 1991. DSM Soft is a
service provider in the Geospatial, Engineering and Publishing
domains. It has over 17 years of experience in the industry and
established relationship with its clients over the years. The
company is operating in 3 different domains: Geospatial,
Engineering and Publishing.

It has production centers in Chennai, Tiruchirapalli and
Pondicherry in India and an office in Bo'ness in UK. The company
also has wholly owned subsidiary based out of Scotland, DSM
Geodata Ltd. It currently has an employee base of around 350 and
provides services to clients in various regions; predominantly in
Europe, Australia and India. In addition to working directly with
customers, the company also works through business partners in
various regions of the world, who have strong technical expertise
and access in local markets.

In FY2016, the company had reported a net profit of INR1.6 crore
on an operating income of INR13.9 crore.


ELASTOCHEMIE IMPEX: Ind-Ra Assigns 'B' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Elastochemie
Impex Private Limited a Long-Term Issuer Rating of 'IND B'.  The
Outlook is Stable.  The instrument-wise rating actions are:

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

   -- INR4 mil. Non-fund-based limits assigned with INR4 rating

                            KEY RATING DRIVERS

The ratings reflect Elasto's weak credit profile.  In FY16
revenue was INR386 million (FY15: INR302 million); Elasto has a
current order book of INR13.5 million to be executed by end of
February 2017 and the company has indicated revenue of INR324.5
million in 10MFY17 (interim).  Net leverage (total Ind-Ra
adjusted net debt/operating EBITDAR) was 10.5x in FY16 (FY15:
15.4x) and gross interest cover (operating EBITDAR/gross interest
expense) was 0.8x (1.0x).  EBITDAR margins were thin at 3.5%-4.2%
during FY13-FY16 on account the trading nature of business.

The ratings factor in the company's comfortable liquidity
position with the average utilization of its fund-based
facilities being around 77% over the 12 months ended January
2017.

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

                        RATING SENSITIVITIES

Positive: A significant increase in the scale and profitability
leading to sustained improvement in the credit metrics could be
positive for the ratings

Negative: Substantial decline in revenue and profitability
resulting in a sustained deterioration in the credit metrics
could be negative for the ratings.

COMPANY PROFILE

Set up in 1988, Elasto is engaged in the distribution of rubber
products.  The company is a distributor for US-based Dow Corning
for silicone rubber and Germany-based Lanxess AG for EPDM1 rubber
in the western India.

The company distributes around 171 products out of which 138 is
silicone rubber, 18 is Nitrile Rubber and 15 is Peroxides which
are used in the automotive and non- automotive industry.


FACOR ALLOYS: ICRA Reaffirms 'D' Rating on INR33.53cr Loan
----------------------------------------------------------
ICRA has reaffirmed the long term rating for the INR28.16 crore
fund-based and assigned for INR1.21 crore unallocated bank
facilities of FACOR Alloys Limited at [ICRA]D. Further, ICRA has
also reaffirmed the short term rating for the INR33.53 crore non
fund based bank facilities of the company at [ICRA]D.

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  Fund Based
  Facilities
  (Working Capital)      28.16        Reaffirmed at [ICRA]D

  Non-fund based
  bank facilities
  (Working Capital)      33.53        Reaffirmed at [ICRA]D

  Unallocated             1.21        Assigned [ICRA]D

Rationale
The ratings continue to reflect sustained irregularities in debt-
servicing by the company as well as continued failure by the
company to honour its financial obligation arising from
invocation of a SBLC (stand-by letter of credit) owing to
liquidity issues. The SBLC had been issued by the lender for
granting loan to its overseas subsidiary- M/s Facor Minerals
(Netherlands) B.V. The company had no cash accruals during
FY2015, FY2016 and H1'FY2017 as its operations remained suspended
for ~30 months due to labour unrest, shortage of chrome ore
supply at competitive rates as well as pressure on Ferro chrome
realisations which made operations unviable. Although the labour
issues got resolved in December 2014, increase in tariff on power
supply from Andhra Pradesh State Electricity Board kept the
company's operations uneconomical. Suspension of operations
together with presence of fixed expenses resulted in sizeable
losses, partial erosion of net-worth of the company as well as
depletion of its cash reserves. With reduction in power tariff
and increase in Ferro-chrome realisations, company's operations
have revived from October 2016 onwards. Nevertheless, company's
ability to streamline production, achieve healthy capacity
utilisation and achieve operational and cost efficiencies will be
critical determinants of its profitability metrics going forward
and hence would be the key rating sensitivity. In this context,
buoyancy in Ferro-chrome prices as well as company's ability to
procure chrome ore at competitive rates will also be key
determinants of its profitability going forward. Further,
restructuring of the SBLC liability at favourable terms, which
will help the company align its repayment obligations with
expected cash flows will also be a key rating sensitivity.

Key rating drivers
Credit Strengths
* Experienced promoters with long track record in the Ferro
alloys industry
Credit Weakness
* Irregularities in debt-servicing as well as failure to honour
financial obligation arising from invocation of SBLC issued by
the lender for granting loan to its overseas subsidiary owing to
liquidity issues
* Closure of operations during the past 2.5 years (March 2014-
October 2016), which together with presence of fixed expenses
resulted in sizeable losses, erosion in net-worth and depletion
in cash reserves
* Issues in procurement of chrome ore at competitive rates from
group company, owing to suspension of operations in two of its
four mines because of delay in mining lease renewals and pending
litigation
* Non return generating investments in subsidiaries
* Susceptibility of profitability to cyclicality inherent in the
Ferro-chrome industry

Description of key rating drivers highlighted:

FAL was a part of FACOR till 2004 before the trifurcation of the
FACOR as per BIFR package. As such the promoters of the company
have six decades of experience in the Ferro Chrome manufacturing
industry, which lends comfort as is also reflected in the
satisfactory performance of the company till FY2013. However the
Ferro chrome manufacturing plant of the company was shut down in
Feb'2014 due to labour unrest. Though the issue was resolved in
Dec'2014, the operations didn't resume due to shortage of chrome
ore supply owing to mining issues in a group company as well as
pressure on Ferro chrome realisations, which made the operations
unviable. Despite the suspension of operations, the company
continued to incur operating expenses on account of fixed Fuel
Supply Arrangement charges and employee costs. Additionally the
company was also incurring fixed financial expenses, resulting in
the company making cash losses in FY2014-FY2016, which in turn
led to depletion of cash balances and partial erosion of
networth.

Further, Bank of India (Vishakhapatnam Branch) had issued a SBLC
to its Jersey branch for sanctioning USD 10 million loan to FAL's
overseas subsidiary - M/s Facor Minerals (Netherlands) B.V. for
an overseas mines acquisition. Subsequently, delays in
commencement of operations at subsidiary level and ensuing losses
resulted in invocation of SBLC and devolvement of liability in
company's books during FY2016. As there have been no cash
accruals in FAL, the company has failed to honour its financial
obligation and continues to remain in default because of which
the account has turned NPA.

Analytical approach: Standalone operational and financial profile
has been considered to arrive at the issuer's rating. Further,
the rating factors in the company's financial obligation arising
from invocation of a SBLC issued by lender for granting loan to
its overseas subsidiary- M/s Facor Minerals (Netherlands) B.V.

Facor Alloys Limited was incorporated in May 2004, as a part of a
restructuring scheme sanctioned to Ferro Alloys Corporation
Limited. FAL is engaged in manufacturing of Ferro-Chrome. Its
manufacturing unit, having an installed capacity of 72,500 tonnes
per annum (TPA), is located in Garividi, District Vizag (Andhra
Pradesh). The operations at FAL have recently resumed in Oct'2016
after a halt of nearly 30 months on account of labour unrest and
shortage of chrome ore supply from the group company FACOR.

Ferro Alloys Corporation Limited (FACOR) was incorporated in 1957
by Mr. Uma Shankar Agarwal & the Saraf family. Company's
performance was satisfactory till early 1990s. However, certain
factors such as debt-funded Diesel-Generator (DG) based power
plants, adverse foreign-exchange fluctuations and decline in
Ferro-chrome realizations affected the company's ability to repay
the debt in its books. Subsequently, as a part of a restructuring
scheme approved by all the lenders, FACOR was trifurcated into
three separate companies namely FACOR, Facor Alloys Limited (FAL)
and Facor Steels Limited (FSL) w.e.f April 1, 2004 based on
division of operations and manufacturing facilities.


FERRO ALLOYS: ICRA Raises Rating on INR60.49cr Loan from 'D'
------------------------------------------------------------
ICRA has upgraded the long-term rating for the INR49.40-crore
(reduced from INR65 crore), fund-based (term loan and working
capital) bank facilities of Ferro Alloys Corporation Limited
(FACOR) to [ICRA]C from [ICRA]D earlier. ICRA has also upgraded
the short-term rating for the INR60.49-crore (increased from
INR54 crore) non-fund based bank facilities of the company to
[ICRA]A4 from [ICRA]D earlier.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund Based bank         5.50      Upgraded to [ICRA]C
  Facilities                        from [ICRA]D
  (Term Loan)

  Fund Based              43.90      Upgraded to [ICRA]C
  Facilities                         from [ICRA]D
  (Working Capital)

  Non-fund based          60.49      Upgraded to [ICRA]A4
  bank facilities                    from [ICRA]D
  (Working Capital)

Detailed rationale
The rating action takes into account regularisation of debt
servicing by the company. With significant decline in the
company's term debt obligations and expected improvement in
profitability supported by improving ferro-chrome realisations
during the current financial year, the company's standalone
coverage indicators are expected to improve in the near term.
Nevertheless, the ratings continue to remain constrained due to
the company's inability to honour its financial obligation
arising from invocation of a corporate guarantee issued in favour
of its subsidiary's (Facor Power Limited) lender. Although
efforts are being made for restructuring the debt under
subsidiary, timely conclusion of the same together with quantum
of further funding requirements from FACOR to support operations
of the subsidiary, remains to be seen and will be crucial
determinant of FACOR's credit profile going forward.

Operationally, the company continues to operate at consistently
healthy capacity utilisation in its ferro chrome manufacturing
division, supported by access to captive chrome ore mines and
captive power plant under subsidiary. Nevertheless, its external
sales of chrome ore declined and reliance on external procurement
of costlier chrome ore (as a percentage of total requirement)
increased to 18% in FY2016 and 26% in H1FY2017 from 6% in FY2015
due to temporary disruption in operations at Ostapal mines caused
by heavy rains. Further, Kathpal and Boula mines of the company
have been inoperative since FY2013 due to pending renewal of
mining leases as well as pending litigation with the forest
department for Boula mines. Although with revival in mining from
Ostapal mines, the reliance on external procurement is expected
to decline, renewal of mining leases for Boula and Kathpal mines
would be crucial for its operating performance and meeting the
group's chrome ore requirements in the longer run and remains a
key rating concern.

In ICRA's view, the company's ability to maintain volumes at
healthy levels and achieve sustainable improvement in
profitability and debt-protection metrics supported by timely
renewal of mining leases, improved operational and cost
efficiencies as well as buoyancy in ferro-chrome prices will
determine the extent of improvement in its profitability and
coverage indicators and hence would be the key rating
considerations. Further, restructuring of debt in subsidiary at
favourable terms together with the extent of further financial
commitment of FACOR towards the subsidiary would also be
important rating sensitivities.

Key rating drivers
Credit strengths
* Experienced promoters with long track record in the ferro-
alloys industry
* Fully integrated operations with access to captive chrome ore
mines and operational power plant, which avoid disruption,
thereby facilitating consistently healthy capacity utilization in
Ferro Chrome manufacturing division
Credit weaknesses
* Failure of the company in honouring its financial obligation
arising from invocation of a corporate guarantee issued in favour
of its subsidiary's (Facor Power Limited) lender
* Issues faced during renewal of mining licences for Boula and
Kathpal mines, which together with temporary disruptions in
operations in Ostapal mines resulted in increased reliance on
external purchases of costlier chrome ore, thereby affecting
operating profitability
* Susceptibility of profitability to cyclicality inherent in the
ferro-chrome industry
* Costly power, despite captive operations (power is available
at a marginal discount of 5% vis-a-vis grid rates)

Description of key rating drivers:

Established in 1957, FACOR has a long track record of operations
with its promoters having significant experience in the ferro-
chrome industry. The company has backward integrated operations
with four captive mines in Orissa and a 100-MW power plant under
its wholly-owned subsidiary FACOR Power Limited (FPL). Access to
captive chrome ore and power has enabled the company get regular
supply without disruptions, thereby facilitating consistently
healthy utilisation of the installed capacities over the years.
However, mining operations of the company have been partially
affected since 2012 because of a pending litigation with the
forest department over the allocated land for Boula mines as well
as expiry of the mining lease for Kathpal and Boula mines since
October 2012 and January 2014, respectively. The mining leases
are pending renewal at present. Though this did not affect
company's operations significantly, as chrome ore extracted from
the other two mines were adequate to support the company's
operations to a large extent (~85-95%), it resulted in a decline
in external sales of chrome ore. Nevertheless, temporary
disruption in Ostapal mines during FY2016 owing to waterlogging
issues increased reliance on external procurement. This together
with pressure on realisations owing to cyclicality inherent in
the ferro-chrome industry, resulted in a significant decline in
the company's operating profitability during the year. Despite
captive power generation capacity, company derives only limited
benefit as power is available at a marginal discount of 5% vis-a-
vis grid rates.

With increase in realisations during the current financial year,
the company's profitability and hence debt coverage metrics have
improved from Q2FY2017. Further, the company has limited term
repayment obligations, which provides comfort. Nevertheless,
besides favourable movement in realisations, sustained
improvement in the company's profitability is contingent on its
ability to get the mining leases renewed as well as to improve
cost efficiency to withstand cyclical pressures.

Although the company has limited term obligations on its books,
it had extended a corporate guarantee in favour of lenders of its
subsidiary - Facor Power Limited, which got invoked during
FY2016. Given the large quantum of liability and inadequacy of
its accruals vis-a-vis the quantum of debt, FACOR failed to
honour its financial obligation towards the lenders of FPL and
the debt continues to be in default.


GARG CASTEELS: CARE Reaffirms 'B' Rating on INR.20cr LT Loan
------------------------------------------------------------
The ratings assigned to the bank facilities of Garg Casteels
Private Limited continues to remain constrained on account of its
thin profitability, moderately leveraged capital structure, weak
debt coverage indicators and working capital intensive nature of
operations.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long-term Bank
   Facilities               0.20       CARE B; Stable Reaffirmed

   Long-term/Short-
   term Bank Facilities    12.00       CARE B; Stable/CARE A4
                                       Reaffirmed
   Short-term Bank
   Facilities               3.00       CARE A4 Reaffirmed

The ratings further continue to remain constrained on account of
susceptibility of GCPL's profit margins to volatility in prices
of raw material and its presence in the highly fragmented and
competitive steel industry. The reaffirmation of the ratings also
takes into consideration the decline in the total operating
income (TOI) during FY16 (refers to the period April 1 to
March 31).

The ratings, however, continue to derive benefits from the long
operational track record and experience of the promoters
in the steel industry.

The ability of GCPL to increase its scale of operations along
with improvement in profitability, capital structure and debt
coverage indicators would remain the key rating sensitivities.
Furthermore, efficient working capital management would
also remain crucial.

Detailed description of the key rating drivers

GCPL's total operating income (TOI) witnessed a y-o-y decline of
about 28.90% mainly on account of decline in prices of steel
prices. The PBILDT margin improved by 219bps and remained at
9.85% during FY16 as against 7.66% during FY15.

However, the PAT margin declined marginally and remained low at
0.18% (0.25% during FY15) on account of high depreciation and
finance cost. GCPL's overall gearing stood moderately leveraged
as on March 31, 2016. With thin profitability and marginal
deterioration in capital structure, debt coverage indicators also
declined during FY16 and remained weak. Liquidity position of
GCPL remained weak marked by moderate current ratio but below
unity quick ratio, elongated working capital cycle of 211 days
and high average working capital utilization at 95% during the 12
months ended December 2016.

GCPL has an established track record of more than two decades
with the established presence in the steel industry. Mr Arun
Jain, Chairman, is a qualified cost accountant and has experience
of more than three decades in the steel industry. He is assisted
by his two sons Mr. Bineet Kumar Jain and Mr. Mantresh Kumar Jain
who have experience of 10 years and 5 years respectively in the
steel industry. With the long standing industry experience, the
promoters have established good relationship with the customers.

Incorporated in 1991 as a private limited company, GCPL is
engaged in the business of manufacturing of Mild Steel billets,
MS Angles, MS channels, MS Beams and other such steel structural
products. The company is promoted by Mr Arun Jain, Mr. Bineet
Kumar Jain and Mr. Mantresh Kumar Jain. GCPL is also engaged in
the manufacturing of investment castings which are which finds
application in automotive parts, compressor parts, textile
machinery parts, agriculture parts and other engineering parts.

GCPL's plant, located in Bhavnagar, is equipped to manufacture
30,000 Metric Tonnes Per Annum of billets, 18,000 MTPA of rolling
mill and 240 MTPA of manufacturing investment castings as on
March 31, 2016.

During FY16 (A),GCPL reported PAT of INR0.06 crore on a TOI of
INR32.02 crore as against PAT of INR0.11 crore on a TOI of
INR45.04 crore during FY15. During 9MFY17 (Provisional), GCPL has
achieved a turnover of INR21.01 crore.


GEETANJALI AGRO: ICRA Reaffirms B+ Rating on INR9.25cr Cash Loan
----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to
the INR13.00 crore bank line of Geetanjali Agro Industries. The
outlook assigned on the long-term rating is 'Stable'.

                      Amount
  Facilities        (INR crore)    Ratings
  ----------        -----------    -------
  Long Term-Cash
  Credit                9.25       [ICRA]B+ (Stable); Re-affirmed

  Long Term-Term
  Loan                  0.66       [ICRA]B+ (Stable); Re-affirmed

  Long Term-
  Unallocated Limit     3.09       [ICRA]B+ (Stable); Re-affirmed

Rationale
The rating remains constrained by the firm's dip in revenues
during FY 2016, moderate scale of operations and vulnerability of
raw material (paddy) availability to the agro-climatic
conditions. The rating considers the limited value additive
nature of the business and the high competitive intensity owing
to the fragmented nature of the industry which exerts pressure on
the firm's profitability. The rating also takes note of the risk
inherent in the partnership nature of the firm such as limited
ability to raise funds, funds withdrawal etc. The rating,
however, favourably considers the promoter's long standing
experience in the rice milling and processing industry, its
established distribution channel across domestic market,
proximity to paddy growing areas in Raichur (Karnataka)
facilitating easy procurement of raw materials and favourable
demand outlook with rice being an important part of the staple
Indian diet. The rating positively takes note of the improvement
in the capital structure and debt coverage indicators in FY2016
on account of the low working capital utilization and term loan
repayment. Going forward, the firm's ability to scale up its
operations, along with maintaining the profitability and
efficient working capital management would be the key rating
sensitivities.

Key rating drivers
Credit Strengths
* Long experience of the promoters in the rice milling industry
* Proximity to raw material sources through presence in major
paddy cultivation area of Karnataka
* Stable demand outlook with rice being an important part of the
staple Indian diet
* Improvement in capital structure and coverage indicators in
FY2016 owing to low working capital utilization and repayment of
term loan
Credit Weakness
* Moderate scale of operations limits economies of scale
* Limited value addition exerts pressure on profitability
* Intense competition marked by presence of large number of
players on account of low entry barriers
* Raw material availability risk due to agro climatic conditions
such as failure of monsoons, epidemics in paddy crop and shift of
farmers to other cash crops
* Risk inherent in the partnership status of the firm such as
limited ability to raise funds, funds withdrawal, dissolution
etc.

Description of key rating drivers highlighted:

The rice milling industry remains highly fragmented and
competitive in nature owing to presence of large number of
unorganized and organized players on account of low entry
barriers in terms of technology and investments. Intense
competition among industry players combined with limited value
addition and working capital intensive nature of business has
resulted in thin profit margins for the industry players over the
years. The firm's plant is located in Raichur which is surrounded
by areas where majority of paddy is cultivated. Paddy is mainly
procured from farmers via brokers. The quantity of procurement
primarily depends upon the availability and quality of paddy with
them. GAI is majorly a domestic player with rice being the major
contributor to the firm's revenues (~85%), followed by broken
rice, bran and husk. The firm's products are mainly sold through
brokers in Tamil Nadu, Karnataka Pondicherry, Maharashtra and
Gujarat. The firm has moderately diversified customer profile
with top 10 customers constituting only 46% of total sales during
FY 2016. Being a seasonal product, profitability of the firm
remains exposed to the fluctuations in the prices which further
depends on the seasonality and crop harvest. The price of paddy
has increased during last two years on account of drought in
North Karnataka and no second crop during the year, in turn,
affecting the entire agro food industry such as rice mills,
cotton ginning units etc in the region. With the increase in
price of rice in North Karnataka due to higher paddy prices,
distributors have procured rice from North India, in turn,
reducing the demand for rice mills in North Karnataka and
impacting their sales during FY 2016 and the current fiscal.

Established in 2011 by Mr. B. Srinivas, Mr. B. Vasanth, Mrs. B.
Prasanna and Mrs. Suchitra, GAI is engaged in the milling and
processing of rice/paddy. The firm's major products include
boiled rice, raw rice, bran, broken rice and husk. The firm
commenced its operations from November, 2013 with a new plant
set-up over an area of five acres in Raichur district of
Karnataka with a capacity to process eight tonnes of paddy per
hour. Although, the firm's operations have commenced only
recently, the promoter group has been engaged in similar business
for more than 15 years.

For FY 2015-16, the company reported a net profit of INR0.51
crore on an operating income of INR30.02 crore against a net
profit of INR0.53 crore on an operating income of INR43.57 crore
for FY 2014-15.


GOLDSTAR METAL: ICRA Reaffirms 'D' Rating on INR10cr Loan
---------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR10.00
crore fund based facilities (cash Credit facility - sub limit of
packing credit) of Goldstar Metal Solutions Private Limited at
[ICRA]D. ICRA has also reaffirmed its short term rating assigned
to the INR10.00 crore non fund based limits at [ICRA]D.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Cash Credit           (10.00)      Reaffirmed at [ICRA]D
  Packing Credit         10.00       Reaffirmed at [ICRA]D

The rating action is based on the ongoing delay in debt servicing
by the firm. As part of its process and in accordance with its
rating agreement with GMSPL, ICRA had sent repeated reminders to
the company for payment of surveillance fee that became overdue;
however despite multiple requests; the company's management has
remained non-cooperative. ICRA's Rating Committee has taken a
rating view based on best available information. In line with
SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1,
2016, the company's rating is now denoted as: '[ICRA] D ISSUER
NOT COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Incorporated in 2005, Goldstar Metal Solutions Pvt. Ltd. (GMSPL)
is promoted by Mr. Prem Prakash Saraogi. The firm was earlier
involved in trading of iron ore in domestic and international
markets from three mines located in Satheli village in
Sinddhudurg district of Maharashtra. However, in December 2013,
Samruddha Resources Limited acquired the iron ore trading
business of GMSPL. SRL paid sales consideration of INR5.01 crore
via slump sale and acquired excess of liabilities over assets to
the tune of INR29.73 crore. Currently, the company is involved in
trading of TMT bars.


H D MOTORS: Ind-Ra Assigns 'B-' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned H D Motors (HDM)
a Long-Term Issuer Rating of 'IND B-'.  The Outlook is Stable.
The instrument-wise rating actions are:

   -- INR30 mil. Long term loan assigned with IND B- /Stable
      rating;

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

                        KEY RATING DRIVERS

The ratings reflect HDM's small scale of operations and weak
credit metrics.  The firm started operations from the 3rd week of
February in 2016.  Revenue was INR52 million in FY16, EBITDA
interest coverage (operating EBITDA/gross interest expense) was
negative 1.8x and net financial leverage (adjusted net
debt/operating EBITDAR) was negative 16.8x.  EBITDA margin was
negative 11.3% in FY16.

The ratings factor in the firm's tight liquidity position with
the fund-based facilities being utilized at an average of 95.3%
over the 12 months ended December 2016.

The company's promoters have five years of experience in the
automobile industry.

                       RATING SENSITIVITIES

Positive: Substantial growth in top-line and profitability
improvement leading to a sustained improvement in the overall
credit metrics could be positive rating action

COMPANY PROFILE

Incorporated in 2015, HDM is an authorised Mahindra and Mahindra
Limited's ('IND AAA'/Stable) car dealer in Tumkur, Karnataka. The
firm is engaged in sales and also service of both new and old
cars.  The firm is owned and promoted by Mr. Sunil Gawda and
Mr. Lakshmikant.


JAI BHAGWATI: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jai Bhagwati Tex
Print Private Limited (JBTPL) a Long-Term Issuer Rating of
'IND B+'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR50 mil. Fund-based limits assigned with IND B+/Stable
      Rating

                        KEY RATING DRIVERS

The ratings reflect JBTPL's small scale of operations and weak
credit metrics.  In FY16, revenue was INR173 million (FY15:
INR195 million), EBITDA margin was 5.7% (3.9%), net leverage
(Ind-Ra adjusted net debt/operating EBITDAR) was 7.6x (FY15:
6.1x) and interest coverage (operating EBITDA/gross interest
expense) was 1.3x (1.2x).

The ratings also reflect its tight liquidity profile.  Its use of
working capital limits was over 97% during the 12 months ended
January 2017.

The ratings are, however, supported by over 20 years of
experience of JBTPL's promoters in dyeing and printing on
synthetic fabrics.

                       RATING SENSITIVITIES

Negative: Further deterioration in the liquidity profile will be
negative for the ratings.

Positive: A substantial improvement in scale of operations and
credit metrics on a sustained basis will be positive for the
ratings.

COMPANY PROFILE

Incorporated in 1997, Gujarat-based JBTPL has a fabric dyeing and
printing in Surat.  Its promoters are Mr Vinay Kumar Choudhary
and Mr Arun Kumar Choudhary.


JAIPRAKASH ASSOCIATES: Net Loss Widens to INR1,095cr in Q3
----------------------------------------------------------
The Economic Times' Realty reports that Jaiprakash Associates on
Feb. 20 reported widening of standalone net loss to INR1,095.02
crore for the third quarter ended December of 2016-17.  The
company's net loss in corresponding period of last fiscal was at
INR827.26 crore.

"Total income has decreased to Rs 1,648.87 crore during the
quarter as against Rs 2,121.59 crore for same period year ago,"
JP Associates said in a regulatory filing, Realty relays.

Realty says the dismal performance of the company is mainly
because of losses from cement, construction, sports events and
real estate businesses.

Its Board of Directors during the quarter under review approved a
scheme of arrangement between the company and UltraTech Cement
for sale of part of its cement business, including that of its
100% subsidiary Jaypee Cement Corporation, according to Realty.

Besides, the company said the Board at the meeting held on
Feb. 21 authorized the Finance Committee to consider and approve
the realignment of remaining debt of the company subject to
consents and approvals required including that from shareholders
and lenders of the company, the report relates.

According to the report, the company has been reeling under
substantial financial stress and has defaulted on loans and other
payments running over multi-crore rupees, besides overdue
interest on loans.

Sale of its cement business to Kumarmangalam owned Birla Group is
touted as the biggest deals for the sector in India and it is
expected to fetch the JP group INR15,900 crore, Realty notes.

The power business was also sold off to JSW Energy in early 2016
for INR3,500 crore, adds Realty.

Jaiprakash Associates Ltd is the flagship company of the Jaypee
group and is engaged in engineering and construction, cement,
real estate and hospitality businesses. JAL is one of the leading
cement manufacturers with an installed capacity of ~28 million
tonnes per annum (mtpa) and under implementation capacity of ~5
mtpa on a consolidated basis as on March 31, 2016. JAL is also
engaged in the construction business in the field of civil
engineering, design and construction of hydro-power, river valley
projects. JAL is also undertaking power generation, power
transmission, real estate, road BOT, healthcare and fertilizer
businesses through its various subsidiaries/SPVs.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2017, CARE reaffirmed the ratings assigned to the bank
facilities and instruments of Jaiprakash Associates Ltd.

                                 Amount
   Facilities                 (INR crore)    Ratings
   ----------                 -----------    -------
   Long-term Bank Facilities   21,786.30     CARE D Reaffirmed

   Short-term Bank Facilities   2,776.31     CARE D Reaffirmed

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

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

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


JAIPRAKASH POWER: Allocates 305.80cr Shares to Lenders
------------------------------------------------------
LiveMint reports that Jaiprakash Power Ventures Ltd (JPVL) on
Feb. 18 alloted 305.80 crore equity shares to its lenders as part
of debt restructuring scheme, which would reduce the debt of
INR3,058 crore.

LiveMint relates that following the allotment, financial
institutions would have 51% equity share in the Jaypee group
firm. Stakeholders Relationship Committee of the company at its
meeting held on Feb. 18, alloted 305.80 crore equity shares of
INR10 each at a price of INR10 to its 23 lenders.

"We wish to inform that upon approval of allocation of conversion
of part of outstanding debt amount into equity shares amongst
banks and financial institutions, the stakeholders relationship
committee at its meeting held today has alloted 305.80 crore
equity shares of Rs 10 each at a price of Rs 10," LiveMint quotes
JPVL as saying in a Bombay Stock Exchange (BSE) filing.

It further added: "Subsequent to allotment of above equity
shares, these lenders shall collectively hold 51 per cent of post
issue equity share capital and accordingly the outstanding loan
amount of the company would stand reduced by the equal amount i'e
INR3,058 crore."

The major lenders are ICICI Bank, IDBI Bank, Punjab National
Bank, Central Bank of India, State Bank of India, United Bank of
India, Canara Bank, Oriental Bank of Commerce, UCO Bank, IDFC,
LIC, Syndicate Bank, Corporation Bank, Indian Overseas Bank,
Allahabad Bank, and Bank of India, LiveMint discloses.

On February 11, JPVL had informed that it has received
shareholders' nod through postal and electronic ballot for debt
restructuring. Owing to various factors such as lack of
visibility of new power purchase agreement (PPA) for 1,320 MW
Jaypee Nigrie Power Plant, delay in signing of PPA, low off-take
by discoms, abnormal decline in merchant tariffs and lower
generation of power, Jaypee Bina thermal power plant has
adversely impacted operations of the company, leading to decline
in operating profits and liquidity constraints, it had said.

According to LiveMint, the company could not pay the outstanding
overdues to lenders in a timely manner due to the aforesaid
reasons.  LiveMint says the lenders had formed a joint lenders'
forum (JLF) and formulated a corrective action plan (CAP) for the
company in order to resolve the financial stress.

However, it stated that the company could not perform
satisfactorily under CAP due to various factors. Therefore, JLF
had finally decided to invoke the provisions of strategic debt
restructuring (SDR) on July 25, 2016.

At the JLF meeting on December 21, it was decided that the banks
and financial institutions will convert a portion of respective
debt of each of such bank or financial institution into equity so
that they will, post conversion, collectively hold 51% of the
fully paid-up share capital, adds LiveMint.

                       About Jaiprakash Power

Jaiprakash Power Ventures Ltd (JPVL), a 60.69% subsidiary of
Jaiprakash Associates Ltd, is engaged in power generation
business and currently has one operational hydro power project of
400 MW (Vishnuprayag in Uttarakhand), and two thermal power
projects of having 1,820 MW capacity (500 MW Bina and 1,320 MW
Nigrie, Madhya Pradesh). JPVL has a presence in the power
transmission business through its 74% subsidiary Jaypee Powergrid
Ltd, which has set up a 214-km transmission line. The company,
through its subsidiary Prayagraj Power Generation Ltd, has 1,980-
MW thermal power project in Bara, Uttar Pradesh, of which 660-MW
capacity is operational and rest is under implementation. JPVL
has also commissioned 2 MTPA cement grinding unit at Nigrie in
June 2015.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 2, 2016, CARE revises and reaffirms the ratings assigned to
the long-term bank facilities of Jaiprakash Power Ventures Ltd.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities  12,241.53     CARE D Reaffirmed
   Long-term Bank Facilities     656.50     CARE D Revised from
                                            CARE B
   Long-term Bank Facilities   2,272.46     CARE D Revised from
                                            CARE B Removed from
                                            Credit Watch

The revision in the ratings of the bank facilities of Jaiprakash
Power Ventures Ltd (JPVL) factors in delays in debt servicing by
the company due to its weak liquidity.


KSP INC: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned KSP Inc. a Long-
Term Issuer Rating of 'IND BB'.  The Outlook is Stable.
Instrument-wise rating actions are:

   -- INR105 mil. Fund-based export related limits assigned with
      IND BB/Stable/A4+ rating;

   -- INR3 mil. Non-fund-based bank guarantee assigned with
      IND A4+ rating

                         KEY RATING DRIVERS

The ratings reflect KSP's relatively small scale of operations
with revenue of INR337.24 million in FY16 (FY15: INR334.81
million), and presence in a highly fragmented and competitive
market.

The ratings are also constrained by the firm's volatile net
working capital cycle, despite an improvement to 47 days in FY16
(FY15: 81 days) on account of high receivable days.

However, the ratings are supported by healthy EBITDA margins of
10.04% in FY16 (FY15: 9.22%), strong gross interest coverage
ratio of 10.2x (8.95x) and net leverage of 1.52x (2.63x).

The ratings also draw support from KSP's comfortable liquidity
position as reflected by 38.07% of average utilization of fund-
based facilities during the 12 months ended January 2017, and the
promoters' more than two decades of experience in the trading of
lawn and garden decorative items.

                       RATING SENSITIVITIES

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

Positive: An increase in the scale of operations, along with a
sustained improvement in the credit metrics will be positive for
the ratings.

COMPANY PROFILE

Incorporated in 1992, KSP is a Delhi-based partnership firm
engaged in the trading of lawn and garden decorative items.  The
firm exports products to Europe and North America.  It is
promoted by Mr. Puneet Berry and his family.


KUNA IMPEX: ICRA Reaffirms B+ Rating on INR5.48cr Loan
------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ on the
INR4.75-crore cash credit facility and the INR0.73-crore working
capital term loans of Kuna Impex Private Limited. ICRA has also
reaffirmed the short-term rating of [ICRA]A4 on the INR4.50-crore
non-fund based bank facilities of KIPL.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Non-fund Based
  Limits                  4.50       Reaffirmed at [ICRA]A4

  Fund-based Limits       5.48       Reaffirmed at [ICRA]B+
                                    (Stable)

Detailed rationale
The rating reaffirmation continues to take into account the
moderate operating profitability of the company, though it
marginally declined in FY2016, owing to the increase in
automation and electrical component prices. The ratings are
further constrained by the modest coverage indicators as well as
the leveraged capital structure of the company, characterised by
high debt, majorly in the form of working capital borrowings. The
ratings also take into account the working capital intensive
operations (38% in 9MFY2017) on account of stretched receivable
and high stock levels. The ratings, however, continue to
favourably factor in the extensive experience of the promoters in
the field of industrial automation as well as the continuous
growth in the top line since FY2011 because of the increased
demand for automation and energy saving in the industrial
machinery as well as the diversification in the electrical and
lighting equipment.

KIPL's ability to increase the scale of operations with increase
in orders and improve the operating profit margins will remain
the key rating sensitivity. The decline in profitability due to
increased automation component prices is further exacerbated by
foreign exchange currency fluctuation risk, because of the
absence of any hedging policy.

Key rating drivers
Credit Strengths
* Established track record of the company in the industrial
automation segment
* Steady revenue growth over the years on account of increased
demand for industrial automation equipment coupled with
diversification in electrical and lighting products
Credit Weaknesses
* Moderate operating margins due to volatility in component
prices in FY2016 and 9MFY2017
* Debt laden capital structure resulting in high gearing level
and modest coverage indicators
* High working capital intensity in the past two years due to
elongated receivable days and high inventory holding

Detailed description of key rating drivers highlighted:

KIPL provides industrial automation solutions depending on the
customer requirement; particularly it modifies products and
software according to the specifications provided. Components of
industrial automations are imported from China and the
programming in the related software is done in-house. From July
2017 onwards, the company has started selling PLCs, SCADA systems
and HMI in the own brand name of 'K-Verter' by getting them
manufactured on job work basis. The total time, including
testing, is around 7 days for small panels and 15-30 days for
large and customised panels. Long standing presence in the market
as well as the marketing efforts undertaken by the company is the
major reason for rise in sales. KIPL participates in exhibitions
and also advertises through different media.

KIPL registered a top-line growth of 35.0%, which increased from
INR14.8 crore in FY2015 to INR20.0 crore in FY2016. The company
has an established presence in the domestic market, a key factor
in generating orders and driving sales in the domestic market. As
the products have several variants and take long time to be
imported, the company needs to keep large amount of stock to
cater to customer requirements, which results in significant
inventory level and consequently high working capital.
Analytical approach: For arriving at the ratings, ICRA has taken
into account; inter alia, the positive verbal feedback from the
banker, stating regularity in the account conduct, as well as the
increase in top line on a year-on-year basis.

Kuna Impex Private Limited was incorporated in December 1998. It
provides customised solutions in the field of industrial
automation. Later, in FY2015 it diversified into electrical and
lighting products. It is an authorised dealer of four companies
to source AC drives, servo drives, PLCs and switchgears from
China.
The company is managed by Mr. Ved Naithani and Mr. Palak Shah.
Mr. Ved Naithani has 30 years of experience and Mr. Plalak Shah
has 20 years of experience in the field of engineering and
industrial automation products.

KIPL recorded a net profit of INR0.3 crore on an operating income
of INR20.0 crore in the year ending March 31, 2016. It has
achieved a net profit (before depreciation and taxes) of INR0.7
crore on an operating income of INR16.7 crore in 9MFY2017
(unaudited provisional financials).


LORD SHIVA: CARE Lowers Rating on INR10.5cr Loan to B+
------------------------------------------------------
The revision in the ratings of Lord Shiva Construction Company
Private Limited (LSC) factors in the growth in the scale of
operations, improvement in overall gearing and coverage
indicators and improvement in operating cycle. The ratings
continue to draw comfort from moderate profitability margins, the
experienced promoters and healthy order book.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            10.50       CARE B+; Stable Revised
                                     from CARE B

   Short-term Bank
   Facilities             1.38       CARE A4 Reaffirmed

   Long-term Bank         7.50       CARE B+; Stable Revised
   Facilities/Short-                 from CARE B/Reaffirmed
   term Bank Facilities

The ratings, however, continue to remain constrained on account
of small and fluctuating scale of operations, geographical and
customer concentration risks coupled with competitive nature of
the construction industry and business risk associated with
tender-based orders.

Going forward, the ability of the company to profitability scale
up its operations along with improvement in its capital
structure, and efficient management of working capital
requirements shall be the key rating sensitivities.

Detailed description of the key rating drivers

The total operating income of the company grew significantly in
FY16 (refers to the period April 1 to March 31) on account of
higher contracts executed. Despite increase in scale of
operations the scale has remained small given the competitive
nature of industry which limits the pricing power and benefits of
economies of scale for the company. The profitability margins
remained fluctuating owing to tender driven nature of business
wherein margins largely depend on nature of contract executed.
The profitability margins of the company stood moderate though
fluctuating. Capital structure continued to remain leveraged
though registered improvement in FY16 over previous year on
account of higher net worth base owing to accretion of profits to
reserves. The interest coverage ratio stood modest and improved
in Fy16 over previous year owing to improvement in PBILDT coupled
with lower interest cost. Also, Total debt to GCA improved
on account of higher gross cash accruals. The operating cycle of
the company improved significantly in FY16 on account of decline
in inventory holding period. The company has high inventory
holding as it has to execute orders at different sites and
billing for the same is done the same is approved by the
respective client. The company's customers are government
departments of various states which have longer payment periods
attributable to varying inspection and approval timelines.

The company is exposed to the risk associated with the tender-
based business, which is characterized by intense competition.
LSC faces direct competition from various organized and
unorganized players in the market. There are number of small and
regional players in the segment.

Haryana based, Lord Shiva Construction Co. Pvt. Ltd. was
incorporated in July 1992 and is currently being managed
by Mr. Anil Jain and his wife Mrs Sunita Jain. The company is
engaged in construction works which involve construction of
roads and civil construction (buildings). In road segment, LSC
executes contracts mainly for PWD (Public Work Department),
Haryana, and in civil construction the company had constructed
buildings for government colleges based out of Haryana. For FY16
(refers to the period April 1 to March 31), LSC achieved a total
operating income (TOI) of Rs.35.31 crore with net profit of
INR0.75 crore as against TOI of INR14.64 crore with net profit of
INR0.15 crore in FY15. In 9MFY17 (refers to the period April 1 to
December 31; based on provisional results), the company has
achieved TOI of around INR25.00 crore.

Status of non-cooperation with previous CRA: CRISIL has suspended
the rating of LSC in February 2013 on account of
non-cooperation by client


MANOJ TRADING: ICRA Reaffirms B+ Rating on INR30cr Cash Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ and the
short-term rating of [ICRA]A4 for the INR30.00 crore bank
facilities (reduced from INR32.00 crore) of Manoj Trading
Company. The outlook on the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based-Cash
  Credit limits           30.00     [ICRA]B+ (Stable); Reaffirmed

  Fund-based- Cheques/
  DD purchases (Sublimit) (1.00)    [ICRA]A4; Reaffirmed

Rationale
The ratings reaffirmation continues to takes into account
stretched capital structure and consequent weak coverage
indicators arising from the interest burden on high reliance on
working capital borrowings. The working capital intensity has
increased following slower debtor's collection and increasing
inventory levels in FY2016, partly attributable to the lead-time
in job-works. The rating also factors in the de-growth in the OI
in FY2016 and vulnerability of the net worth to capital
withdrawals due to the proprietorship pattern. Further, the
profitability continues to remain susceptible to raw material
price fluctuations in light of the increasing inventory levels in
business. ICRA also takes note of the vulnerability of the
business operations to the cyclicality in the textile industry
and stiff competition in the market due to low entry barriers
leading to a large number of players in similar operations in
domestic and international markets. This restricts the pricing
flexibility of the firm.

The ratings, however, favorably factors in the long experience of
the proprietor in the textile industry and the diversified
customer base and the advantage due to its location in Mumbai's
wholesale textile market.

Key rating drivers
Credit strengths
* Established experience of the proprietor in the textile
industry
* Locational advantage due to close proximity to customers and
suppliers
Credit weakness
* Financial profile characterised by de-growth in operating
income, highly leveraged capital structure and weak coverage
indicators
* High working capital intensity of operations due to stretch in
receivables position and high inventory levels leading to high
reliance on external working capital borrowings
* Reliance on job workers increases inventory holding and
renders vulnerability of profit margins to price fluctuation
risks
* Exposure to cyclicality inherent in the textile industry
* Highly competitive industry due to low entry barriers,
restricts the pricing flexibility
Sensitivities
* Further strain on receivables position or inventory levels
* Withdrawal of capital leading to deterioration in capital
structure
* The company's ability to scale up its operations while
improving profitability levels and strengthen coverage indicators

Description of key rating drivers:

Manoj Trading Co. sells cotton and polyester-based fancy saris
under the proprietorship of Mr. Manoj Jain who has an experience
of more than three decades in the textile industry. Customer
profile of the company consists of wholesaler and retailer of
saris spread across India. The customer base of the company
remains well diversified as the top ten customers contribute to
~20% of the total revenues during the last two years. The firm
operates from Mumbai, proximity to customers and suppliers leads
to locational advantage due to the lower transit cost, which in
turn supports the profitability of the firm.

The operating income of the firm declined by ~23% from ~133.82
crore in FY2015 to ~Rs. 103.46 crore in FY2016 due to weak demand
for its products. The external job work nature of its operation
as well as the stiff competition pressurises the profitability of
the firm. Further, the profitability remains susceptible to raw
material price fluctuations due to the high level of inventory
maintained by the firm. MTC needs to maintain an inventory level
of at least three to four months due to high lead term involved
in manufacturing of saris on a job work basis. Working capital
intensity was significantly high as indicated by NWC/OI of ~48%
during FY2016 due to its stretched receivable position and high
inventory levels. The capital structure further deteriorated in
FY2016 due to the modest net worth base, which was vulnerable to
capital by the proprietor in FY2016.

The company is expected to report de-growth in FY2017 backed by
sluggish demand as indicated by the ~58% of FY2016 sales achieved
till January 2017. Going forward, its ability to improve its
scale of operations while maintaining its profit margins and
efficiently manage its working capital requirements by improving
its debtors and inventory position from current levels will be a
key monitorable. Efficiently managing the working capital profile
will help in limiting external working capital borrowings and
interest outflows, thus improving the capital structure and
profitability metrics.

Analytical approach: To arrive at the ratings ICRA has taken into
account the standalone financials of the firm along with key
operational developments in the recent past.

Manoj Trading Company is a proprietorship concern which is into
selling of cotton and polyester based saris which are
manufactured on an external job work basis. Mr. Manoj Jain is the
proprietor of the firm who is in this line of business since
1983. The firm has its registered office at Kalbadevi, Mumbai.


MEERA GLASS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Meera Glass
Industries (MGI) a Long-Term Issuer Rating of 'IND B+'.  The
Outlook is Stable.  The instrument-wise rating actions are:

   -- INR38 mil. Fund-based working capital assigned with
      IND B+/Stable/IND A4 rating; and

   -- INR24.4 mil. Non-fund-based limits assigned with IND A4
      rating

                        KEY RATING DRIVERS

The ratings are constrained by MGI's small scale of operations as
evident from its top line of INR377.37 million in FY16 due to its
presence in a competitive industry.  The ratings also reflect the
company's tight liquidity position, as evident from its average
utilization of around 97.78% of the fund-based limit over the 12
months ended December 2016.

The ratings further reflect MGI's moderate credit metrics, as
reflected by its gross interest coverage (operating EBITDA/gross
interest expense) of 1.90x in FY16 (FY15: 1.89x) and financial
leverage (total adjusted debt/Operating EBITDAR) of 4.61x
(4.88x).

The ratings are supported by the four-decade-long experience of
MGI's promoters in the glass manufacturing industry, the
company's strong relationships with its customers and suppliers,
and its strong operating EBITDA margins, which improved to 6.91%
in FY16 (FY15: 6.08%) because of a decline in the raw material
prices.

                       RATING SENSITIVITIES

Negative: A negative rating action could result from a decline in
the top line and operating profitability margins, leading to
deterioration of the credit metrics.

Positive: A positive rating action could result from a
substantial increase in the top line and an improvement in the
operating profitability margins, leading to an improvement in the
credit metrics.

COMPANY PROFILE

MGI was incorporated in 1986 by Mr Narendra Prakash Mittal.  The
company manufactures glass, glassware, bangles, chimneys and
other items made of glass.  The registered office of the company
is situated at Firozabad, Uttar Pradesh.


MGI INDIA: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed MGI India
Private Limited's (MGIIPL) Long-Term Issuer Rating at 'IND B+'.
The Outlook is Stable.  Instrument-wise rating actions are:

   -- INR3.54 mil. (reduced from INR7.8) Long-term loan affirmed
      with IND B+/Stable rating;

   -- INR40 mil. Fund-based working capital limits affirmed with
      IND B+/Stable rating;

   -- INR50 mil. Non-fund-based working capital limits affirmed
      with IND A4 rating

                        KEY RATING DRIVERS

The affirmation reflects MGIIPL's moderate scale of operations
and credit metrics, despite an improvement in the credit profile.
In FY16, revenue grew to INR218 million (FY15: INR172 million)
due to strong order book and quick execution. Interest coverage
improved to 1.7x in FY16 (FY15: 1.6x) and net financial leverage
to 7.4x (12.9x) on account of debt reduction.

The ratings are also constrained by the company's tight liquidity
position with almost full utilization of its fund-based working
capital facilities during the 12 months ended January 2017.

However, the ratings continue to be supported by MGIIPL's
directors' around two decades of experience in the hospital
equipment manufacturing industry.

                       RATING SENSITIVITIES

Positive: An increase in the revenue while maintaining the credit
metrics could result in a positive rating action.

Negative: Deterioration in the credit metrics could result in a
negative rating action.

COMPANY PROFILE

Incorporated in 2001, MGIIPL manufactures and installs operation
theatres, medical gas pipeline systems and other equipment used
in hospitals.  It has two manufacturing facilities one each in
Baddi (Himachal Pradesh) and Faridabad (Haryana).

The company is promoted by Shri Ashok Chandra, Shri Vidur
Chandra, Smt. Meena Chandra and Shri Vishal Kumar Gulati.


NARESH SINGHAL: CARE Reaffirms B+ Rating on INR2.5cr Bank Loan
--------------------------------------------------------------
The ratings assigned to the bank facilities of Naresh Singhal &
Company continue to remain constrained by its small scale of
operations, leveraged capital structure and weak coverage
indicators. The ratings are further constrained by proprietorship
nature of constitution and its presence in the highly fragmented
and competitive industry.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             2.50       CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities             4.50       CARE A4 Reaffirmed

The rating also takes cognizance of decline in Total Operating
income during FY16 (refers to the period April 01 to March 31)
The ratings, however, continue to draw strength from the
experienced proprietor in execution of civil contracts and long
track record of operations of the firm, moderate profitability
margins and operating cycle.

Going forward, NSC's ability to profitably scale-up its
operations while improving its capital structure along with
successful execution of projects within the estimated time and
costs would be the key rating sensitivities.

Detailed description of the key rating drivers

The firm's business is tender driven and the lowest bidder gets
the order. Since NSC did not get major tender/orders to execute
in FY16 (refers to the period April 1 to March 31), the total
operating income of the firm declined. Small scale of operations
and low net worth base restricts the ability of the firm to scale
up and bid for larger sized contracts having better operating
margins. Despite decline in scale of operations profitability
margins of the company improved on account of execution of
projections with better profitability margins. Furthermore,
capital structure continued to remain leveraged with
deterioration registered in FY16 over previous year on account of
increase in term debt owing to coupled with higher utilization of
the working capital borrowings as on the balance sheet date. This
apart, there were delays in getting approvals for billing from
customer and the average inventory holding days elongated mainly
due to dispute with the Noida Development Authority on account of
getting approvals for billing from customer.

NSC operates in a highly competitive industry with competition
from both organized and unorganized players established in the
vicinity of the company.

Naresh Singhal & Company was established as a proprietorship firm
in 1992 by Mr. Naresh Singhal having an experience of more than
two decades through association with this entity. The firm is
engaged execution of civil contracts viz. execution of sewage
water pipelines, overhead tanks and water treatment facilities
mainly in Delhi-NCR region. The majority of the contracts are
obtained from Public Works Department (PWD) and Municipal
Corporation through competitive bidding process.

For FY16 (refers to the period April 01 to March 31), NSC
achieved a total operating income (TOI) of INR10.90 crore with
profit after tax (PAT) of and INR0.57 crore, respectively, as
against TOI of INR18.12 crore with PAT of INR0.99 crore, in FY15.
Furthermore, the company has achieved total TOI of INR12 crore
till 9MFY17 (refers to the period April 1 to Dec. 31, based on
provisional results).


NAVDURGA ISPAT: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Navdurga Ispat
(P) Ltd (NIPL) a Long-Term Issuer Rating of 'IND BB+'.  The
Outlook is Stable.  The instrument-wise rating action is:

   -- INR160 mil. Fund-based limit assigned with IND BB+/Stable
      rating

                         KEY RATING DRIVERS

The ratings reflect NIPL's moderate scale of operations and
credit profile.  In FY16, its revenue was INR766 million (FY15:
INR967 million), interest coverage was 1.5x (1.5x), net financial
leverage was 4.3x (4.7x), and operating EBITDA margins were 4.1%
(3.4%).

The ratings also factor in the company's moderate liquidity
position with average 95.49% utilization of its working capital
limits during the 12 months ended January 2017.

However, the ratings are supported by over a decade-long
experience of the company's directors in the steel manufacturing
business.

                        RATING SENSITIVITIES

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

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

COMPANY PROFILE

NIPL was formed in 2004, by taking over Rank Vinyl Pvt Ltd.  NIPL
manufactures a wide range of steel-rolled structures, including
beams, joists, channels, angles, round bars, and flats.  It has
the capacity to produce 30,000tpa of structural steel items.  In
December 2009, the company commissioned a 30,000tpa induction
furnace to manufacture ingots.


NMC INDUSTRIES: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned NMC Industries
Private Limited (NMCIPL) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.  Instrument-wise rating action is:

   -- INR200 mil. Non-fund-based facility assigned with IND A4+
      Rating

                          KEY RATING DRIVERS

The ratings reflect NMCIPL's moderate credit profile.  Revenue
grew to INR656 million in FY16 (FY15: INR407 million) and EBITDA
margins to 9.2% (4.4%) on account of execution of higher margin
projects.  Consequently, net leverage improved to 2.4x in FY16
(FY15: 8.2x) and EBITDA interest cover to 2.9x (1.6x).  As of
December 2016, the company has an order book of INR550 million,
which will be executed within six months.  NMCIPL recorded
revenue of INR280 million during 8MFY17.

The company had a net cash conversion cycle of 99 days in FY16
(FY15: 189 days).  However, Ind-Ra expects the cash cycle to
elongate to around 150-170 days in the medium term on account of
longer receivable days.

The ratings are, however, supported by the company's comfortable
liquidity position with an average utilization of fund-based
facilities of 41% during the 12 months ended January 2017.

The ratings also benefit from the promoters' more than three
decades of experience in the construction of railway tracks and
manufacturing of railway components.

                         RATING SENSITIVITIES

Positive: A significant increase in the revenue and profitability
margins, leading to a sustained improvement in the credit metrics
could be positive for the ratings.

Negative: A sustained decline in the revenue and profitability
margins and deterioration in the working capital cycle, leading
to a stress on the liquidity will be negative for the ratings.

COMPANY PROFILE

Incorporated in 1949, NMCIPL is primarily engaged in the
construction of rail tracks and manufacturing of railway
components such as rail switches, fish plates, joggled fish
plates, bolts and nuts, check rails, curved tracks, points and
crossings, rubber pads, GFN liners and wooden sleepers.  The
company caters to railways, thermal, fertilizer and cement
sectors, among others.


ORIGIN FORMULATIONS: CARE Reaffirms B Rating on INR27.4cr LT Loan
-----------------------------------------------------------------
The ratings assigned to the bank facilities of Origin
Formulations Private Limited continues to remain constrained on
account of its loss making operations, leveraged capital
structure and weak liquidity profile which necessitates promoter
support for the uninterrupted operations of the company. The
rating is further constrains by its relatively short track record
of manufacturing operations and high regulatory risk associated
with the pharmaceutical industry.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Term Bank
   Facilities            27.40       CARE B; Stable Suspension
                                     Revoked and rating
                                     reaffirmed

The ratings, however, continues to derive strength from wide
experience of the promoters along with infusion of unsecured
loans from them.

The ability of OFPL to turnaround its operations while managing
working capital requirements and promoter's needbased support are
the key rating sensitivities.

Detailed description of the key rating drivers

Loss making operations: During FY16 (refers to the period of
April 1 to March 31), company reported cash loss of INR5.69 crore
(FY15: cash loss of INR5.79 crore) on the back of high
competition in the domestic market and limited value addition.

Continued operating losses have resulted in complete erosion of
networth and turned negative to INR -4.70 crore as on March 31,
2016.

Weak financial risk profile: The financial risk profile of OFPL
is weak as marked by continued operating losses leading to weak
debt protection metrics. The company has stretched liquidity as
marked by cash losses. Also, bank limit of INR24.50 crore was
fully utilization in the trailing 12 months ended December 31,
2016. However, liquidity is supported by unsecured loans from
promoters.

Key Rating Strength
Experienced promoters: The promoters of OFPL have vast industrial
experience. Also, Promoters have periodically infused unsecured
loans for the uninterrupted operations of the company.

Incorporated in 2010, OFPL is engaged in trading of formulation
and in FY14 it had started manufacturing of pharmaceutical
formulation in various dosage forms i.e. Tablets, Capsules,
Ointments, Injections, and Syrups at its facility at Kotdwar,
Uttrakhand. For exports, the company has received the
certification from WHO-GMP for Betalactum section of
manufacturing.

During FY16 (Audited), OFPL reported total operating income of
INR154.99 crore (FY15: INR152.02 crore) with net loss of
INR5.11 crore (FY15: net loss of INR6.92 crore).


PANACHE EXPORTS: ICRA Lowers Rating on INR7cr LT Loan to B+
-----------------------------------------------------------
ICRA has revised the rating to [ICRA]B+ from [ICRA]BB- for the
INR7.00 crore1 long-term fund based facilities of Panache Exports
Private Limited. ICRA has also re-affirmed the short-term rating
of [ICRA]A4 assigned to the INR21.00 crore (enhanced from
INR18.00 crore) fund based bank facilities and the INR5.50 crore
(enhanced from INR5.00 crore) non-fund based facilities of PEPL.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long-term: Fund
  Based Limit             7.00      [ICRA]B+(Stable)/revised
                                    from [ICRA]BB-(Stable)

  Short-term: Fund
  Based Limits           21.00      [ICRA]A4, reaffirmed/assigned

  Short-term: Non-
  fund Based Limits       5.50      [ICRA]A4, reaffirmed/assigned

Detailed Rationale
The long term rating downgrade and short-term rating re-
affirmation takes into account the weak financial risk profile
characterised by low profitability, leveraged capital structure
and weak coverage indicators. The ratings also take into account
PEPL's high working capital intensive nature of operations led by
slow debtors realisations and high inventory levels. The rating
is, moreover, constrained by the exposure of the company's
margins to the intense competition from organised as well as
unorganised players in the industry, along with high geographic
concentration risks. The ratings however, take into account the
established track record of the promoters in the jewellery
business. ICRA notes the marketing support PEPL enjoys from its
wholly-owned subsidiary in the UK, as well as the fiscal benefits
from the location of one of its units being in an export
promotion zone. ICRA also notes the diversified product profile,
coupled with the reputed client base in the domestic market.
Going forward, the company's ability to improve its profitability
and efficiently manage the working capital requirements would
constitute the key rating sensitivity factors.

Key rating drivers
Credit Strengths
* Experienced promoters and long track record in the gems and
jewellery business;
* Fiscals benefits availed from its presence in a Special
Economic Zone (SEZ);
* Diversified product profile and reputed clientele base,
marketing support from its wholly owned subsidiary.

Credit Weaknesses
* Deteriorated financial profile characterised by decline in
profit levels, following change in product mix, leveraged capital
structure and weak coverage indicators;
* High working capital intensive nature of operations due to
slow debtor realisations and high inventory levels;
* Industry characterised by strong competition from unorganised
as well as organised players, which limit the pricing power of
the company to an extent.

Description of key rating drivers highlighted:

PEPL had undertaken trading of diamonds along with manufacturing
of diamond studded gold jewellery in FY2016, which led to a
decline in its profitability. The company's liquidity position
continues to remain stretched, following sluggishness in
receivables, coupled with high inventory levels necessitating
increased utilisation of working capital limits. Consequently,
PEPL's capital structure was leveraged at a gearing of 2.38 times
as on March 31, 2016. The coverage indicators measured by OPBDITA
/ Interest and Finance Charges and Total Debt/OPBDITA have
deteriorated further to 0.93 time and 13.97 times as on March 31,
2016, over 1.09 times and 8.06 times as on March 31, 2015,
because of the decline in profit levels and increase in debt
levels.

Nonetheless, the management's vast experience of more than two
decades in the industry has enabled the company to leverage its
established relationships with suppliers as well as some well
reputed customers. In addition, the company receives marketing
support from its associate concern in the UK, 'House of Panache
UK Limited". It also derives various fiscal benefits from the
presence of one of its units in the export promotion zone.

Analytical approach
To arrive at the ratings, ICRA has performed a detailed
evaluation of the issuer's business and financial risks.

Panache Exports Private Limited, incorporated in 1991, is
promoted by Mr. Puneet Kapur. PEPL is engaged in designing and
manufacturing diamond studded gold jewellery ranging from 9-18
carats. The product profile includes a variety of fine jewellery
such as earrings, rings, pendants, bracelets, chains, necklaces
etc. The company has two manufacturing units at Lower Parel and
at the Santacruz Electronic Exports Processing Zone in Andheri,
Mumbai. From FY2016, the company has also ventured into trading
of diamonds in the local markets.

The company has a subsidiary unit in London, 'House of Panache
(UK) Ltd.', to carry out marketing operations in the European
market.

PEPL recorded a net profit of INR0.17 crore on an operating
income of INR66.76 crore for the year ending March 31, 2016.


PIYUSH COLONIZERS: ICRA Lowers Rating on INR30cr LT Loan to D
-------------------------------------------------------------
ICRA has revised the long-term rating to [ICRA]D from [ICRA]BB
(Stable) to the INR30.00-crore fund-based facility of Piyush
Colonizers Limited.

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  Long-term Fund-
  based Limits           30.00        [ICRA]D revised from
                                      [ICRA] BB (Stable)
Detailed rationale
The key driver of the rating revision is the delay in servicing
the debt obligations due to the stretched liquidity position. The
rating remains constrained by the weak market scenario in the
real estate sector, particularly in the National Capital Region
(NCR) where all the company's projects are located. This, along
with the funding commitments towards construction and repayments,
has resulted in a tight liquidity position of the company. Going
forward, a track record of the timely debt servicing will be the
key rating sensitivity.

Key rating drivers
Credit Weaknesses
* Delay in debt servicing due to strained liquidity
* Weak sales velocity owing to the market slowdown as well as
the recent demonetisation, also a high level of debtors in one
particular project
Strengths
* Promoter's execution track record of more than 15 years in
developing residential projects in the NCR

Description of key rating drivers:
The key driver of the revision in rating is the delay in
servicing the debt obligations due to the stretched liquidity
position. There have been substantial delays in the company's
loan repayments. While the company did have healthy committed
receivables in its projects, which were in advance stages, the
continued weakness in market resulted in cash flow mismatches.
Moreover, with other ongoing projects, the company remained
exposed to funding risks towards execution in addition to loan
repayments

PCL was incorporated in 2004 as a private limited company. This
flagship company of the Piyush Group and is managed by Mr. Anil
Goel and his two sons Mr. Puneet Goel and Mr. Amit Goel. The
company has completed several group housing projects in the NCR
and is currently developing ten projects, namely 'Piyush Horizon'
(1st phase completed) in Dharuhera, 'Piyush City', 'SCO' and
'Elite' in Palwal, 'Piyush Rosette, Square and Galleria' in
Bhiwadi and 'Piyush Height' (possession given in 11 towers out of
17) in Faridabad. Apart from these projects the company has
launched two projects 'Piyush Epitome' in Palwal and 'Piyush
Pranakutti' in Bhiwadi.

In the financial year ending March 2015, PCL, on standalone
basis, had an operating income of INR119.64 crore on which it
earned a Profit after Tax (PAT) of INR5.25 crore, compared to an
operating income of INR121.99 crore and a PAT of INR7.92 crore in
FY2014. Further, Piyush Buildwell India Ltd. which is a 100%
subsidiary of PCL, had an operating income of INR33.55 crore on
which it earned a Profit after Tax (PAT) of INR2.61 crore
compared to an operating income of INR34.54 crore and a PAT of
INR3.57 crore in FY2014.


PREM INDUSTRIES: CARE Reaffirms B+ Rating on INR9.11cr LT Loan
--------------------------------------------------------------
The ratings assigned to the bank facilities of Prem Industries
continue to remain constrained by small scale of operations with
low capital base, declining profitability margins and leveraged
capital structure. The ratings are further constrained by
fragmented and competitive nature of the industry, business
susceptible to the vagaries of nature and partnership nature of
its constitution.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.11       CARE B+; Stable Reaffirmed

   Long-term Bank
   Facilities/Short-
   term Bank Facilities   0.05       CARE A4 Reaffirmed

The rating, however, continues to draws comfort from the
experienced partners, moderate operating cycle and favorable
manufacturing location.

Going forward, the ability of the firm to Increase in scale of
operations and improve its capital structure while efficiently
managing its working capital requirements will be the key rating
sensitivities.

Detailed description of the key rating drivers

Despite the significant growth registered in Total operating
income (TOI) on y-o-y basis in last 3 financial years (FY 14 to
FY16), the scale continues to remain small which inherently
limits the firm's financial flexibility in times of stress and
deprives it from scale benefit. Despite increase in scale of
operations; PBILDT margin declined on y-o-y basis as the firm
compromised on its margins to garner the market share. Capital
structure continued to remain moderate and shown improvement on a
y-o-y basis on the balance sheet date of last 3 financial years
(FY14-FY16) owing to infusion by the partners. The coverage
indicators also stood moderate owing to limited debt levels. The
operating operations of the firm are moderately working capital
intensive as reflected from the moderate operating cycle and
average utilization of working capital borrowings.

Agro-based industry is characterized by seasonality, as it is
dependent on the availability of raw materials, which varies
with different harvesting periods. The commodity nature of the
product makes the industry highly fragmented, with numerous
players operating in the unorganized sector with very less
product differentiation.

The firm's processing facility is situated in Karnal, Haryana
which is one of the highest producers of paddy in India. Its
presence in the region gives additional advantage over the
competitors.

Karnal-based (Haryana) Prem Industries (PID) was established in
April 2013 as partnership concern by Mr. Prem Lal and his brother
Sham Lal. They both have an experience of more than two decades
through their association with this entity.

The firm was initially established as a proprietorship firm in
1995 by Prem Lal. The firm is engaged in milling, processing
and trading of both basmati and non-basmati rice with an
installed capacity of 150 tonnes per day as on March 31, 2016.

The processing unit is located at Karnal, Haryana. The firm
procures the raw material (paddy) from the grain market located
in Haryana, Madhya Pradesh, U.P. etc through commission agents
and sells its product to export houses in Haryana and Punjab.

For FY16 (refers to the period April 1 to March 31), PID achieved
a total operating income (TOI) of INR38.40 crore with profit
after tax (PAT) of INR0.07 crore, respectively, as against TOI of
INR20.59 crore with PAT of INR0.05 crore, in FY15.  Furthermore,
the company has achieved total TOI of INR29.08 crore till 9MFY17
(refers to the period April 1 to December 31, based on
provisional results).


ROYAL TYRES: ICRA Lowers Rating on INR6.21cr Loan to 'B'
--------------------------------------------------------
ICRA has downgraded the long term rating from [ICRA]B+ to [ICRA]B
for the INR0.40 crore cash credit facility and the INR6.21 crore
(revised from INR5.63 crore) term loan facilities of Royal Tyres
Private Limited. ICRA has reaffirmed the short-term rating of
[ICRA]A4 assigned to the INR0.80 crore short-term fund based
facilities and the INR0.30 crore short-term non-fund based
facilities of RTPL. ICRA has also downgraded the long term rating
from [ICRA]B+ to [ICRA]B and reaffirmed the short term rating of
[ICRA]A4 for the INR2.29 crore (revised from INR2.87 crore)
unallocated limits of RTPL. The outlook on the long term rating
is Stable.

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  Long term: Fund         0.40        Downgraded from [ICRA]B+
  based facilities-                   to [ICRA]B (Stable)
  CC

  Long term: Fund         6.21        Downgraded from [ICRA]B+
  based facilities-                   to [ICRA]B (Stable)
  TL

  Short term: Fund
  based facilities        0.80        Reaffirmed at [ICRA]A4

  Short term: Non-
  fund based facilities   0.30        Reaffirmed at [ICRA]A4

  Long term/ Short        2.29        Downgraded from [ICRA]B+
  term: Unallocated                   to [ICRA]B (Stable);
  limits                              Reaffirmed at [ICRA]A4

Rationale
The rating downgrade takes into consideration the weakening of
the financial profile of the company marked by continuous decline
in revenues over the last four years mainly on account of the
weak demand in the export market primarily in the European
countries. The rating downgrade also factor in the stretched
capital structure and deteriorated coverage indicators resulting
from the recently completed debt funded capital expenditure, and
the moderate working capital intensity due to significant
inventory holdings as at the end of FY2016. In addition, the
ratings take into account the exposure of the company's revenues
to the inherent cyclicality in the company's end-user industries
and the company's modest scale of operations which restrict the
operational and financial flexibility. Furthermore, the ratings
also factor in the susceptibility of the margins to adverse
fluctuation in input commodities, including natural and synthetic
rubber and other rubber chemicals, since such input costs
constitute a sizable portion of its cost structure.

However, the ratings favourably factor in the extensive
experience of the promoters spanning four decades in the business
of rubber compounding and manufacturing solid tyres. The ratings
also take into account the recently completed capital expansion,
which will significantly increase production capacity. The
process improvements undertaken in RTPL's new manufacturing
facility, moreover, is expected to aid in improving the
production cost structure and thus enabling shoring up of
operating margins in the coming years.

Key rating drivers
Credit Strengths
* Longstanding experience of the promoters in the solid tyre
industry spanning three decades
* Process changes undertaken in the new factory expected to
reduce electricity and labour costs leading to improvement in the
firm's cost structure
* Adequate capacity availability to cater to large export orders

Credit Weakness
* Modest scale of operations limiting the operational and
financial flexibility
* Declining revenues owing to weak demand in the export market;
revenues remain susceptible to cyclicality in the end user
industries
* Weak financial profile characterized by high gearing, weak
coverage indicators and stretched cash flow position
* High competition for solid tyres in the export and domestic
markets
* Margins exposed to adverse fluctuation in the raw material
prices

Description of key rating drivers highlighted:

Royal Tyres was founded in 1972 as Royal Rubber & Plastic
products by Mr. M Mani, which was later incorporated as a company
in 1992. T The promoters of the company have vast experience
spanning three decades in the rubber compounding and manufacture
of Rubber Molded products & Solid tyres. They are assisted by Mr.
Sendil Kumaran, executive director, a former Customs Officer and
a Foreign Trade Professional, with strong grounding in Commercial
functions and International Sales & Marketing.

The company sells in both domestic and export markets. There has
been a decline in off-take from its existing export customers
during FY2015 and FY2016 due to the slowdown in the European
economies. As a result, the exports declined drastically over the
last two years and the revenue contribution from export sales
declined to 45% during FY2016 as against 74% in FY2013 and 70% in
FY2014.The company also faced difficulties in acquiring new
export customers, as the company was in the process of setting up
an enhanced production facility to cater to the new customer
requirements. Though it was able to compensate to an extent
through a moderate increase in domestic sales, the scale of
operations remained low due to weak order book position.
The new manufacturing facility commissioned in February 2016 has
an installed capacity to manufacture around 40,000 solid tyres a
year. Increased mechanization and improved efficiency is expected
to result in reduction in labour, power and fuel costs as well as
in production time, which is expected to aid in improving RTPL's
operational cost structure. However, the raw material cost, which
forms the major portion of the operational cost, is exposed to
the adverse fluctuations in the prices of rubber, the major raw
material required in the production process.

The financial profile of the company is weak on account of the
significant increase in the debt position of the company owing to
the term loan availed for the capital expansion project. The low
margins of the firm and the small scale of operations have
resulted in stagnant accretion to reserves resulting in low net
worth base. As a result, there has been a sharp increase in
gearing of the company from 1.5 times as at March 31, 2014 to 2.9
times as at March 31 2016. The interest coverage and DSCR, though
remained healthy as the repayment for the term loans commenced
only from April 2016, the same is expected to be stretched in the
near term due to the heavy repayment obligations in the near to
medium term.

Analytical Approach:

ICRA has taken into account the debt servicing track record of
RTPL, its business risk profile, financial risk drivers and
management profile.

Incorporated in 1992, Royal Tyres Private Limited is engaged in
the manufacturing of solid tyres catering to various end user
industries including automobile, logistics, railway and airport.
Solid tyres are used as consumables in these industries where it
primarily finds application as tyres of the fork lifters. The
company has two manufacturing facilities in Chennai (Ambathur and
Sriperumbdur) with a capacity to manufacture around 40,000 solid
tyres a year and it caters to both export and domestic markets.
Royal Tyres was founded in 1972 as Royal Rubber & Plastic
products by Mr. M Mani, which was later incorporated as a company
in 1992. The firm was engaged in Rubber compounding (mixing)
during the initial years. Later, the company became a rubber
product supplier to leading automobile giants like Leyland group.
In 1985, the company ventured into solid tyre manufacturing,
mainly press on tyres (metal to rubber bonded). The company is
actively managed by Mr M. Mani who has a vast experience spanning
three decades in the rubber compounding and manufacture of Rubber
Molded products & Solid tyres. He is assisted by Mr. Sendil
Kumaran, executive director, a former Customs Officer and a
Foreign Trade Professional, with strong grounding in Commercial
functions and International Sales & Marketing.

In FY2016, RTPL achieved a net profit of INR0.1 crore on a total
operating income of INR4.7 crore as compared to net profit of
INR0.1 crore on a total operating income of INR5.6 crore during
the previous financial year.


SANT FOODS: ICRA Reaffirms B Rating INR15cr Fund Based Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B on the
INR15.00-crore fund-based limits of Sant Foods Private Limited.
The rating has been assigned a 'Stable' outlook.

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  Fund-based Limits       15.00       [ICRA]B; reaffirmed
                                      (Stable outlook assigned)
Rationale
The rating action factors in the improvement in the working
capital intensity as well as the gearing levels in FY2016; partly
offset by stagnant sales revenues and decline in interest
coverage.

The rating also factors in SFPL's weak financial profile as
evident from the low profitability metrics, the high gearing and
consequently the weak debt coverage indicators as majority of the
working capital requirements were funded through debt. The rating
also reflects the high industry competition and the agro climatic
risks. The rating however, continues to favourably take into
account the long standing experience of the promoters in the rice
industry and the proximity of the mill to major rice growing
area, which ensures easy availability of paddy.

Going forward, the firm's ability to increase its scale of
operations in a profitable manner, maintain healthy capital
structure and optimal working capital intensity will be the key
rating sensitivity.

Key Rating Drivers
Credit Strengths
* Experienced promoters with long industry presence
* Presence in a major rice growing area ensures easy
availability of paddy
* Good demand prospects as rice is a staple food grain and India
is world's second largest producer and consumer
Credit Weaknesses
* Weak financial profile characterised by low profitability,
high gearing and weak coverage indicators
* Given low-entry barriers, the industry has numerous
established players and a large base of unorganised small
players, resulting in stiff competition
* Agro climatic risks affect paddy availability

Description of key rating drivers highlighted:

The promoters and their family members have been involved in the
business of rice milling from more than a decade. The management
has a long track record in this business, which helps the firm in
adding customers and provides an edge against its competitors.

The company mainly procures traditional basmati, Pusa 1121,
Sharbati, varieties of paddy which differ in length, breadth,
aroma etc. The procurement is done through Aadhti firms from
different mandis located nearby. As the basmati variety is grown
only in the foothills of the Himalayas in India, the location of
the manufacturing facility ensures easy access to the basmati
paddy.

Given that majority of the basmati paddy is procured during
October-December (procurement season) and is held for 6-12 months
for ageing purposes (which fetches higher realisations), the
business is inherently working capital intensive. Also, given
that the company operates in the agro- based industry, it remains
exposed to the inherent cyclicality, volatility in prices, and
changes in government regulations, not just domestically but also
the regulations of the export destinations.

Sant Foods Private Limited (SFPL) was established in 2008. The
company mills rice at an installed capacity of 6 tons per hour.
The company has two sortex machines with the capacity of 5
tons/hour and 2 tons/hour. The company is managed by Mr. Pradeep
Wadhwa.

In FY2016, the company reported a profit after tax (PAT) of
INR1.043 crore on an operating income of INR33.94 crore as
against a PAT of INR0.22 crore on an operating income of 34.30
crore in FY2015.


SANTOSH PULSE: CARE Reaffirms B+ Rating on INR6cr LT Bank Loan
--------------------------------------------------------------
The rating assigned to the bank facilities of Santosh Pulse Mill
continues to remain constrained on account of its thin profit
margins, leveraged capital structure, weak debt coverage
indicators and working capital intensive nature of operations.
The rating further continues to remain constrained on account of
susceptibility of SPM's profit margins to the raw material price
fluctuations and its presence in the highly fragmented and
competitive agro processing industry.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               6        CARE B+; Stable Reaffirmed

The rating, however, continues to derive benefits from the
experience of the promoter in agro processing industry.
The ability of SPM to increase its scale of operations along with
improvement in profit margins, capital structure and debt
coverage indicators would remain the key rating sensitivities.
Furthermore, efficient working capital management would
also remain crucial.

Detailed description of the key rating drivers

Key Rating Weaknesses
Thin profit margins, leveraged capital structure, weak debt
coverage indicators PBILDT margin of SPM declined by 216 bps
during FY16 on the back of high procurement costs of material.
Subsequently, PAT margin also declined and remained thin owing to
low value addition nature of operations.

SPM's capital structure stood leveraged marked by high overall
gearing as on March 31, 2016 on the back of low net worth base
and high debt level. Further, with thin profitability and
deterioration in capital structure, debt coverage indicators also
declined during FY16 and remained weak.

Working capital intensive nature of operations
SPM's operations remained working capital intensive in nature
marked by long operating cycle of 94 days in FY16 as well
as full working capital utilization for last 12 months period
ended December 2016.

Susceptibility of profit margins to raw material price
fluctuations and its presence in the highly fragmented and
competitive agro processing industry The prices and regulations
related to the export and import of various agro-commodities are
regulated by government through MEP (Minimum Export Price) and
export-import quota fixed by the government. Hence, any adverse
change in the government policy may negatively impact the
turnover and profitability of SPM.

Agro commodity industry is highly fragmented with large number of
organized and unorganized players in India operating at regional
levels. There is high level of competition within the industry
due to low entry barriers.

Key Rating Strength
Experienced proprietor in agro processing industry Mr Ashok
Jethwani (Proprietor) possesses an experience of more than 15
years in the agro processing industry. With the long-standing
industry experience, the proprietor has established strong
relationship with customers and suppliers over the years.

Dabhoi-based (Vadodara) SPM is a proprietorship firm engaged
mainly in processing and trading of pigeon pea (Tur Dal).

Established in the year 1998, the main product of SPM is pigeon
pea (Tur Dal) and is sold under the brand name of 'SHIVAM TUR
DAL". SPM is promoted by Mr. Ashok Brijlal Jethwani having an
experience of more than 15 years in the agro industry. Earlier in
1970, Mr. Brijlal Jethwani along with his father and two brothers
established the business of trading of paddy and pulses and other
food grains. Later on in 1998, three brothers were separated and
Mr. Ashok Jethwani started his own business of processing and
trading of pulses. SPM operates from its sole manufacturing
facilities located at Vadodara with installed processing capacity
of 20 MTPA as on March 31, 2016.

During FY16 (A), SPM reported PAT of INR0.13 crore on a TOI of
INR30.42 crore as against PAT of INR0.15 crore on a TOI of
INR19.46 crore during FY15. During 9MFY17 (Prov.), SPM has
achieved a turnover of INR19.00 crore.


SHIV SHAKTI: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shiv Shakti
Industries Private Limited (SSIPL) a Long-Term Issuer Rating of
'IND BB+'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR101.7 mil. Fund-based working capital limit assigned
      with IND BB+/Stable rating; and

   -- INR15.5 mil. Long-term loans assigned with IND BB+/Stable
      rating

                         KEY RATING DRIVERS

The ratings reflect SSIPL's moderate scale of operations,
moderate credit metrics and weak EBITDA margins.  The company's
FY16 financials indicate revenue of INR1,010 million (FY15:
INR669 million), net leverage (total Ind-Ra adjusted net
debt/operating EBITDAR) of 3.4x ( 3.2x), interest cover
(operating EBITDA/gross interest expense) of 2.9x (2.3x) and
EBITDA margins of 3.1% (4.2%).

The ratings factor in SSIPL's moderate liquidity as evident from
its 98.4% average utilization of the working capital limits
during the 12 months ended January 2017.

The ratings, however, are supported by a decade-long experience
of SSIPL's promoters in manufacturing poultry feed.  The ratings
are further supported by the company's strong relationships with
customers and suppliers.

                        RATING SENSITIVITIES

Positive: A significant improvement in the operating
profitability margins leading to an improvement in the overall
credit metrics could be positive for the ratings.

Negative: Deterioration in the operating profitability margins
leading to weaker credit metrics could be negative for the
ratings.

COMPANY PROFILE

Incorporated in August 2006, SSIPL started its operations in
January 2014.  SSIPL manufactures poultry feed product and
renders services to farmers and other users.  It has production
facilities in east Champaran, Bihar.

SSIPL's directors are Rajeev Kumar Gupta and Ananta More.


SRI SRINIVASA: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sri Srinivasa
Delinters (SSD) a Long-Term Issuer Rating of 'IND B+'.  The
Outlook is Stable.  A summary of rating actions on the company's
instruments is:

   -- INR70 mil. Fund-based facility assigned with
      IND B+/Stable/IND A4 rating

                        KEY RATING DRIVERS

The ratings reflect SSD's small scale of operations and moderate
credit profile.  SSD's FY16 financials indicate revenue of
INR345 million (FY15: INR389 million), net leverage (total
adjusted net debt/operating EBITDAR) of 3.6x (3.8x) and interest
coverage (operating EBITDA/gross interest expense) of 7.5x
(4.5x). EBITDA margin declined to 2.6% in FY16 (FY15: 2.8%) on
account of raw material price volatility.  The firm achieved
revenue of INR210 million in 9MFY17.

The ratings, however, are supported by promoters' experience of
more than three decades in the ginning and pressing of cotton.

Also, SSD's liquidity remains comfortable with its fund-based
facilities being utilized at an average of 56% over the 12 months
ended January 2017.

                       RATING SENSITIVITIES

Positive: A significant increase in the revenue and profitability
leading to a sustained improvement in the credit metrics could be
positive for the ratings.

Negative: A sustained decline in the revenue and profitability
and deterioration in the credit metrics will be negative for the
ratings.

COMPANY PROFILE

SSD was incorporated in 1985 as a partnership firm.  SSD
processes cotton seed, cotton linters, cotton cellulose, chemical
cotton, cotton bales, raw cotton, cotton seeds oil, seed oils,
cotton ore, cattle feed etc and obtains linters and hulls as by-
products.  Its 100 tonnes per day manufacturing unit is located
in Chowdavaram in Guntur district.  SSD's promotors are K
Ravindra Babu, Ragunatha Rao, Y V Prasad and Y. Sridevi.


SUNTANA TEXTILE: ICRA Reaffirms B-/A4 Rating on INR12.95cr Loan
---------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B- and the
short-term rating of [ICRA]A4 for the INR12.95 crore1 bank
facilities of Suntana Textile Mills Private Limited. The outlook
on the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund Based Limits      12.95       [ICRA]B- (Stable)/[ICRA]A4;
                                      Re-affirmed

Detailed Rationale
The rating re-affirmation takes into account STMPL's declining
scale of operations along with the weak financial risk profile as
depicted by modest profitability, highly stretched capital
structure and weak coverage indicators. Furthermore, the
profitability continues to remain susceptible to raw material
price fluctuations due to the high level of inventory maintained
and to foreign exchange fluctuations from significant export
revenues in the absence of any active hedging mechanism. The
ratings also take into account the tight liquidity position as
indicated by the increasing working capital intensity following
strain on the receivables position and high inventory level
maintained. ICRA notes the stiff competition in the market due to
low entry barriers leading to a large number of players in
similar operations in domestic and international markets, which
restrict the pricing flexibility of the company.

The ratings, however, favorably factor in the established
experience of STMPL's promoters in the textile industry, the easy
availability of key raw materials, and its proximity to ports for
export purposes.

Key rating drivers
Credit Strengths
* Established experience of the promoters in the textile
industry;
* Location advantage from presence in Bhiwandi, which is a major
textile hub of Maharashtra.
Credit Weakness
* Financial profile characterised by de-growth in operations,
modest profitability, highly leveraged capital structure and
modest coverage indicators;
* High working capital intensity of operations due to stretched
receivables and high levels of inventory maintained;
* Margins vulnerability to price fluctuation risks as high level
of inventory is maintained;
* Exposure to forex risk in absence of an active hedging
mechanism as significant revenues are derived through exports;
* Low entry barriers leading to stiff competition that restricts
pricing flexibility.
Sensitivities
* Increase in receivable position and inventory levels
stretching the working capital cycle further;
* Ability to scale up its operations, while improving
profitability levels and strengthening coverage indicators.

Description of key rating drivers:

STMPL is engaged in the selling of fabrics for formal suitings
and shirting, uniform fabrics, readymade garments (particularly
uniforms), and kandora fabrics for West Asian Markets. Domestic
market contributes upto ~30-40% of total revenues during last two
year while exports are majorly concentrated within West Asian
countries namely Dubai, Saudi Arabia, Egypt and Qatar. Mr
Chiranjilal Agarwal, Mrs Bharti Agarwal and Mr Sunil Agarwal, who
have experience of more than two decades in the textile industry,
are the promoters and key management personnel of the company.
The company operates from Bhiwandi, a major textile processing
hub of Maharashtra, leading to easy availability of key raw
materials and ease of getting job works done as the same is
outsourced to companies right there in Bhiwandi leading to lower
transit costs.

Operating Income of the company declined by ~18% in FY2015 and
further by ~21% in FY2016 owing to weak demand for its products
as well as by its focus on customer consolidation due to
considerable stretch witnessed in the receivable period. This in
turn lead to inconsistent customer base. The external job work
nature of STMPL's manufacturing operation as well as stiff
competition in the market led to overall modest profitability.
Furthermore, the profitability remained susceptible to raw
material price fluctuation risks due to the high level of
inventory maintained by the firm. STMPL needs to maintain an
inventory level of 3-4 months due to the high lead term involved
in manufacturing products as per customer requirements on an
external job work basis. Working capital intensity increased over
the last three years and remained high as indicated by NWC/OI of
~66.81% during FY2016 due to significant stretch in receivable
position and high inventory levels in business. The capital
structure remained weak with gearing levels from ~4.00 times on
due to low net-worth and high debt levels to fund working capital
requirements of the company. The company is expected to report a
modest growth in FY2017 due to weak domestic and international
markets. Going forward, its ability to improve its scale of
operations by managing a reliable and consistent client, and
improve its overall receivable position, remains to be seen.
Managing an efficient working capital profile would remain
important from a credit perspective, which will led to lesser
reliance on external borrowings and limit interest outflows,
improving profitability from current levels.

Analytical approach: To arrive at the ratings ICRA has taken into
account the standalone financials of the firm along with key
operational developments in the recent past.

Suntana Textile Mills Private Limited came into existence in 2006
by merging 'Sunil Textile Industries' and 'Sushil Textile
Industries', which were incorporated in 1979 and 1985,
respectively as a proprietorship concern of Mr Chirnajilal
Agarwal and Mrs Bharti Agarwal. Sunil Textile Industry and Sushil
Textile Industry were engaged in manufacturing grey cloth.
However, since 1995, both the firms gradually ceased its in-house
fabric manufacturing operations and commenced manufacturing
fabrics for formal suitings by assigning job works to various
companies located in Bhilwara (Rajasthan) and Bhiwandi
(Maharashtra). Mr Sunil Agarwal, Mr Chiranjilal Agrawal and Mrs
Bharti Agrawal are the directors of the company handling its
overall operations. The company's administrative office and
factory are located at Bhiwandi in Maharashtra.


SVM CERA: ICRA Reaffirms 'D' Rating on INR5.50cr Cash Loan
----------------------------------------------------------
ICRA has reaffirmed its long-term rating on the INR5.50-crore
cash credit facilities of SVM Cera Limited at [ICRA]D ICRA has
also reaffirmed its short-term rating on the INR2.80-crore letter
of credit and the INR0.50-crore bank guarantee (sublimit of
letter of credit) at [ICRA]D.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Cash Credit             5.50       Reaffirmed at [ICRA]D
  Letter of Credit        2.80       Reaffirmed at [ICRA]D
  Bank Guarantee         (0.50)      Reaffirmed at [ICRA]D

The rating action is based on the continued delay in the
company's debt servicing. As part of its process and in
accordance with its rating agreement with SCL, ICRA had sent
repeated reminders to the company for payment of surveillance fee
that became overdue; however despite multiple requests; the
company's management has remained non-cooperative. ICRA's Rating
Committee has taken a rating view based on the best available
information. In line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1, 2016, the company's
rating is now denoted as: '[ICRA] D ISSUER NOT COOPERATING". The
lenders, investors and other market participants may exercise
appropriate caution while using this rating, given that it is
based on limited or no updated information on the company's
performance since the time it was last rated.

SVM Cera Limited (formerly known as M/s. Matalvuoto Films
(India)) was incorporated in January 1986. With effect from April
1, 2014, the name of the company was changed from the erstwhile
SVM Cera Tea Limited to SVM Cera Limited. The registered office
of the company is located at 2, Biplabi Tarilokya Maharaj Sarani,
Kolkata. The management of the company is handled by Mr. K.M.
Bhanderi, under the leadership of Chairman Mr. S.V. Mohta and
other professional directors. Initially the company was engaged
in real estate business. In 1994, the company diversified its
operations by entering into the manufacturing of ceramic glaze
frit (CGF) by setting up a unit in Ankleshwar, with a total
installed capacity of 14490 MTPA. However, because of the rising
fuel prices and intense competition, the in-house production
capacity has remained idle and the company has been relying
entirely on job work-based production of CGF in the last two
years.


THETIS CV: Ind-Ra Assigns Provisional BB Rating on INR51.3MM PTC
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Thetis CV IFMR
Capital 2017 (an ABS transaction) these provisional ratings:

   -- INR425.6 mil. Series A1 pass-through certificates (PTCs)
      assigned with Provisional IND A-(SO)/Stable rating;

   -- INR51.3 mil. Series A2 PTCs assigned with Provisional IND
      BB(SO)/Stable rating

The final ratings are contingent upon the receipt of final
documents conforming to the information already received.

The used and new commercial vehicles loan, multi-utility vehicle
loan, car loan and construction equipment loan pool to be
assigned to the trust has been originated by Ess Kay  Fincorp
Private Limited.

                          KEY RATING DRIVERS

The provisional ratings are based on the origination, servicing,
collection and recovery expertise of Ess Kay Fincorp, the legal
and financial structure of the transaction, and the credit
enhancement (CE) provided in the transaction.  The provisional
rating of Series A1 PTCs addresses the timely payment of interest
on monthly payment dates and the ultimate payment of principal by
the final maturity date on Aug. 18, 2021, in accordance with
transaction documentation.

The provisional rating of Series A2 PTCs addresses the timely
payment of interest on monthly payment dates only after the
complete redemption of Series A1 PTCs and ultimate payment of
principal by the final maturity date on Aug. 18, 2021, in
accordance with the transaction documentation.

The transaction benefits from the internal CE on account of
excess interest spread, subordination and over-collateralisation.
The levels of over-collateralisation available to Series A1 and
A2 PTCs are 17.0% and 7.0% of the initial pool principal
outstanding (POS), respectively.  The total excess cash flow or
the internal CE available, including over-collateralisation, to
Series A1 and A2 PTCs is 34.17% and 20.73%, respectively, of the
initial POS. The transaction also benefits from the external CE
of 3.5% of the initial POS in the form of fixed deposits in the
name of the originator, with a lien marked in favour of the
trustee.  The collateral pool to be assigned to the trust at par
had the initial POS of INR512.7 million, as of the pool cutoff
date of Jan. 17. 2017.

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

                       RATING SENSITIVITIES

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

Ind-Ra also conducted rating sensitivity tests.  If the
assumptions about the base case default rate worsen by 20%, the
model-implied rating sensitivity suggests that the ratings of
Series A1 and Series A2 PTCs will not be impacted.

                          COMPANY PROFILE

Incorporated in 1994, EKFPL is a Jaipur-based non-banking
financial company with a track record of over 22 years.  EKFPL is
promoted by Mr Rajendra Kumar Setia.  It primarily provides
vehicle loans, including light commercial vehicle and multi-
utility vehicles, tractor loan, car, three-wheeler and SME loans,
in Rajasthan, Gujarat, Madhya Pradesh Punjab and Maharashtra.
Its corporate and registered office is located in Jaipur,
Rajasthan.

As of March 2016, EKFPL had INR5,256.3 million worth of assets
under management.  Its network base stood at 207 branches as of
December 2017.  As of March 2016, gross non-performing assets
(defined as loans that are more than 150dpd) were 1.78% (March
2015: 1.37%; defined as loans that are more than 180dpd) and net
non-performing assets were 1.37% (0.88%).


VELMURUGAN HEAVY: ICRA Reaffirms B+ Rating on INR15cr LT Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ for the
INR15.00 crore fund based facilities, INR10.62 crore (enhanced
from INR5.33 crore) term loan facilities of Velmurugan Heavy
Engineering Industries Private Limited. ICRA has also re-affirmed
the short-term rating of [ICRA]A4 to the INR4.00 crore Bank
guarantee facilities of VHEI. The outlook on the long term rating
is positive.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long term: Fund
  Based facilities        15.00      Reaffirmed at [ICRA]B+
                                     (Positive)

  Long term: Term Loan    10.62      Reaffirmed at [ICRA]B+
                                     (Positive)

  Short-term, Bank
  Guarantee                4.00      Reaffirmed at [ICRA]A4

Rationale
Ratings reaffirmation positively takes into consideration the
improved order inflows in FY2016 and reputed clientele comprising
large players in the engineering and wind energy sector, from
whom the company has been obtaining repeat orders. The ratings
also consider the healthy growth witnessed in order inflows in
FY2017, providing revenue visibility in near term. Rating also
factors in improvement in debt protection metrics on the back of
healthy accruals. The rating continues to draw comfort from the
considerable experience of the management spanning over three
decades in the heavy engineering industry.

However, the ratings are constrained by VHEI's modest scale of
operations, high working capital intensity and the moderate
capital structure with low equity base, in spite of the
improvement in gearing levels during FY2016. The ratings continue
to be constrained by high customer concentration risk with Gamesa
Reneawble Private Ltd contributing to major portion of revenue in
FY2016. The ratings also factors in the cyclical as well as
highly fragmented nature of the industry, which limits the
pricing flexibility.

Positive Outlook on the rating reflects ICRA's expectation of
further scaling up of operations in FY2017 coupled with
improvement in coverage indicators and gearing notwithstanding
proposed debt funded capex plans.

Key rating drivers
Credit Strengths
* Experience of the promoters for over three decades in the
heavy engineering industry
* Reputed customer base which includes some of the largest
players in the engineering
* Healthy debt coverage indicators and improvement in gearing in
FY2016 owing to healthy accruals and repayment of existing loans
* Healthy growth witnessed in order inflows providing revenue
visibility in near term
Credit Weakness
* Modest scale of operations coupled with high customer
concentration restricts pricing power in a fragmented industry
marked by high competition
* Moderate capital structure with low equity base, in spite of
the improvement in gearing levels in FY2016
* High working capital intensity owing to stretched receivables

* Vulnerability to capex cyclicality especially in wind energy
sector; partly mitigated by exposure across end-user industries
like cement, steel, infrastructure, power, etc

Description of key rating drivers highlighted:

The company over the last two fiscals had registered robust
revenue growth on the back of good demand in the wind energy
sector with repeat orders from its major customers, FLSmidth
Private Limited, Gamesa Reneawble private ltd, Vestas Wind
Technology India Private Limited  etc. With the established track
record of the company in securing significant orders from Gamesa
and Vestas Wind Technology India Pvt Ltd over the last two
fiscals, ICRA further expects VHEI to register consistent income
from wind turbine tower manufacturing sector and thereby maintain
the healthy operating margins to a large extent. VHEI's capital
structure had witnessed significant improvement from a gearing of
5.5x in FY2015 to 2.9x in FY2016 owing to consistent repayments
of the term loans and healthy accruals to reserve. Higher working
capital intensity is primarily due to stretched payments from
customers and high lead time in manufacturing.

In FY2016, Velmurugan Heavy Engineering Industries Private
Limited reported net profit of INR1.95 crore on an operating
income of INR116.76 crore as against net profit of INR1.13 crore
on an operating income of INR33.79 crore in FY2015. In FY2016,
due to change in contract terms, VHEI had included total contract
value (raw material price and job work charged) while accounting
for revenue from Gamesa unlike in previous years where only job
work income was charged on Gamesa. In FY2016, income from selling
of materials to Gamesa was INR78.9 crore out of total income of
INR116.76 crore.

Velmurugan Heavy Engineering Industries Private Limited , founded
in 1989 by the late Mr R Srinivasan, undertakes fabrication,
machining and assembly works to manufacture components for heavy
engineering products like boilers, earthmoving equipment, wind
turbine towers, machine bases, cooling systems, cement and steel
plants, oil field equipments, etc. VHEI is a subcontractor for
many reputed companies in the heavy engineering sector, including
Bharat Heavy Electricals Limited (BHEL), Larsen & Toubro Limited
(L&T), FLSmidth Private Limited, SMS India Private Limited
(subsidiary of SMS Siemag AG), Gamesa Reneawble private ltd, and
Vestas Wind Technology India Private Limited. VHEI has
manufacturing facilities located in Trichy, Tamil Nadu, close to
the BHEL factory.


VIPUL LIMITED: ICRA Withdraws B+ Rating on INR70cr LT Loan
----------------------------------------------------------
ICRA has withdrawn the long term rating of [ICRA]B+ assigned to
the INR72.00 crore NCD programme and INR70.00 crore long term
debt programme of Vipul Limited, as the company had issued
INR47.00 crore (out of INR72.00 crore amount being rated)
debentures and has redeemed the same, with the balance amount
remaining unplaced. There is no amount outstanding against the
rated instrument (NCD and long term debt). ICRA has placed the
rating of [ICRA]B+ (Stable) assigned to the INR75.12 crore bank
lines and INR4.88 crore unallocated limits of Vipul Limited on
notice for withdrawal for 90 days. As per ICRA's 'Policy on
Withdrawal of Credit Rating', the aforesaid rating will be
withdrawn after 90 days from the date of this withdrawal notice.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long term: Fund
  based                  30.00       [ICRA]B+ (Stable); Notice
                                     for withdrawal for 90 days

  Long term debt         70.00       [ICRA]B+; Withdrawn

  Non convertible
  debenture (NCD)        72.00       [ICRA]B+; Withdrawn

  Non fund based         45.12       [ICRA]B+ (Stable); Notice
                                     For withdrawal for 90 days

  Unallocated limits      4.88       [ICRA]B+ (Stable); Notice
                                     for withdrawal for 90 days

Vipul Limited, formerly known as Vipul Infrastructure Developers
limited, has completed various residential and commercial
projects in the National Capital Region (NCR), Bhubaneswar,
Ludhiana and Dharuhera region. The company was incorporated in
1991 and is listed on Bombay Stock Exchange and National Stock
Exchange. Vipul is promoted by Mr. Punit Beriwala, who has more
than 25 years of experience in the Indian Real Estate.



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


TOSHIBA CORP: Seeks at Least $8.8 Billion in Chip Stake Sale
------------------------------------------------------------
Yuji Nakamura and Takashi Amano at Bloomberg News report that
Toshiba Corp. is looking to raise at least JPY1 trillion
($8.8 billion) from the sale of its memory chip business and will
aim to complete the transaction by March 2018, according to a
person familiar with the matter.

The deal will likely result in Toshiba relinquishing majority
control over the unit, which could be valued as high as
JPY2 trillion, the person said, asking not to be identified as
the matter is private, Bloomberg relates. The company wants to
take time negotiating the best price possible without setting a
concrete deadline, although it aims to reach an agreement before
the end of the next fiscal year, according to the person. A
Toshiba spokesman declined to comment, Bloomberg notes.

According to Bloomberg, Toshiba is grappling with a $6.3 billion
writedown at its nuclear division, which is suffering massive
cost overruns in the construction of nuclear power plants in the
U.S. and China. Last week, President Satoshi Tsunakawa said
selling a majority stake in the company's highly-prized flash
memory chips business may be inevitable to shore up its balance
sheet. Local media including the Sankei newspaper reported the
fundraising target earlier on Fe. 21, the report notes.

Bloomberg says the icon of Japanese business is likely to be
demoted from the first tier of the Tokyo Stock Exchange to the
second section as a result of its deteriorating finances. A
person familiar with the matter told Bloomberg last week the
company sees no way of avoiding demotion since liabilities
already exceed assets. Rather than trying to meet exchange
requirements by the end of the current fiscal year in March,
Toshiba will instead take its time in negotiating the best deal
possible for its shareholders and employees, according to the
person.

According to Bloomberg, South Korea's SK Hynix Inc. has publicly
expressed interest in the Toshiba chip business. Other potential
bidders include Micron Technology Inc. and Western Digital Corp.,
which already partners with Toshiba on manufacturing. Samsung
Electronics Co. is the market leader in flash-memory chips with
about a third of the $30 billion market, followed by Toshiba with
about 20 percent and then Western Digital, Micron and Hynix.

In the Toshiba chip sale, foreign buyers are under consideration,
but will have to abide by requirements to maintain employment and
keep production in Japan, said the person, Bloomberg relays. So
far the Japanese government has not taken any concrete steps
involving the deal, according to the person.

                          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 O N G O L I A
===============


MONGOLIA: S&P Assigns 'B-' LT Issue Rating to US$-Denom. Notes
--------------------------------------------------------------
S&P Global Ratings assigned its 'B-' long-term issue rating to
Mongolia's benchmark-size U.S. dollar-denominated notes.  The
notes will constitute the direct, unconditional, unsubordinated,
and unsecured obligations of Mongolia (B-/Stable/B).

S&P's sovereign credit ratings on Mongolia reflect S&P's
assessment of the country's low-income economy and the
government's sizable fiscal deficits.  The deficits are the
result of shortfalls in revenues and the budget's inclusion of
spending on the country's price stabilization and public private
partnership programs and by the Development Bank of Mongolia.
S&P expects the elevated deficits to continue to push Mongolia's
borrowings markedly higher over 2017-2020.  Additional weaknesses
reflect the country's lower growth prospects and developing
institutional effectiveness, which together hamper policy
responses.

The rating outlook on Mongolia is stable.  A higher rating is
unlikely over S&P's two-year rating horizon.  Upward pressure
could build on the rating if the development of the Oyu Tolgoi
and Tavan Tolgoi mines accelerates economic growth and improves
fiscal and external performances more than S&P currently expects.
Downward pressure could emerge on the ratings if Mongolia's
external liquidity weakens markedly.  This outlook also assumes
that official creditor support is imminent to contain balance-of-
payment and fiscal pressures.



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


BLUE CHIP: Commercial Factors Chases Liquidator Over Unpaid Bill
----------------------------------------------------------------
Paul McBeth at BusinessDesk reports that debt factoring firm and
financier Commercial Factors is chasing Blue Chip liquidator
Meltzer Mason over an unpaid bill from the aborted litigation
against the failed property investment group's former directors
and auditors.

In the High Court in Auckland, Associate Judge Roger Bell
dismissed an application by the Blue Chip liquidators to strike
out the claim, saying they failed to satisfy him that the action
was bound to fail, BusinessDesk relates. The January 27 judgment
was recently published on the justice ministry website.

In 2009, Commercial Factors, owned by Cashflow Funding co-founder
Terry Haydon, put up $67,750 for the liquidators to get a legal
opinion about pursuing proceedings against Blue Chip's directors,
covering the costs of obtaining the opinion and preparing the
argument, BusinessDesk recalls. The lawyer's opinion indicated
there were "available claims against a number of directors of
Blue Chip and related companies and against auditors", however
Commercial Factors indicated it wasn't interested in funding the
proceeding.

According to BusinessDesk, the liquidators filed a $40 million
civil suit without financial backing to avoid a time-bar and show
the defendants "they were serious about the claim". However, when
some creditors lobbied to change liquidator and a potential
funder lost interest the proceeding was discontinued in February
2013.

Of the NZ$525,350.44 of funds realised, none has gone toward
repaying Commercial Factors, with the bulk going to the
liquidators' remuneration, expenses and legal fees, and Associate
Judge Bell found it was arguable that the liquidators either had
or received funds that could have been used to repay Commercial
Factors, says BusinessDesk.

BusinessDesk relates that the judgment showed if proceedings had
gone ahead, Commercial Factors would have been in line for 2.5%
of net proceeds, irrespective of who funded the litigation.

According to BusinessDesk, the Blue Chip group of companies
failed in 2008 owing NZ$84 million to more than 2,000 investors
and became a pin-up for regulatory failures of the time when the
Securities Commission said property investment schemes fell
outside the law requiring an offer document.

The Supreme Court later rejected that view in ruling the
investment scheme marketing between 2005 and 2007 required a
prospectus, however, the Financial Markets Authority didn't go
further than reviewing the case, instead deciding it wasn't in
the public interest because Blue Chip-funded developers reached a
settlement with investors, BusinessDesk relates.

Separately, Blue Chip was investigated by the Serious Fraud
Office, which decided there was insufficient evidence to pursue a
prosecution while saying the firm operated in a "moral vacuum,"
says BusinessDesk.

BusinessDesk relates that in 2015, former Blue Chip boss Mark
Bryers was discharged from his five-and-a-half year bankruptcy,
although he was banned from acting as a manager or director in
New Zealand for another seven years because of the risk he posed
to the public.

Mr. Bryers escaped a prison sentence in 2010 when he pleaded
guilty to 34 charges relating to the company's mismanagement and
improper accounting. He received a NZ$33,750 fine and 75 hours'
community work, the report notes.

                          About Blue Chip

Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand.  It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments.  Northern Crest operates in two divisions: financial
services and leasing services.  The financial services division
is engaged in the provision of financial structuring services and
investment product to a variety of clients.  The leasing
activities division is engaged in rental of residential property.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.

Northern Crest Investments, the last surviving business of Mark
Bryers' failed Blue Chip group, also went into liquidation in
June 2011.


PINNACLE LIFE: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
---------------------------------------------------------------
A.M. Best has affirmed the Financial Strength Rating of B (Fair)
and the Long-Term Issuer Credit Rating of "bb+" of Pinnacle Life
Limited (Pinnacle Life) (New Zealand). The outlook of these
Credit Ratings (ratings) is stable.

The ratings reflect Pinnacle Life's low product risk profile,
direct distribution capabilities and a lapse ratio consistently
below the market average.

Pinnacle Life mainly underwrites simple life insurance in New
Zealand's term life market, relying primarily on the direct-to-
consumer channel. In addition, the company continues to hold a
stable market position in its targeted market.

Major offsetting rating factors include Pinnacle Life's small
tangible capital base and relatively high reinsurance
utilization.

While not exposed to the adviser channel's high upfront
commissions, marketing through a direct-to-consumer channel
requires significant upfront advertising expenditures. This has
led to a sizable amount of net insurance contract assets
(deferred acquisition costs) on Pinnacle Life's balance sheet. In
addition, the company's small tangible capital base has
restricted its ability to grow rapidly. As a result, Pinnacle
Life has ceded a large portion of gross premiums to its
reinsurer, which has prevented it from achieving economies of
scale.

A substantial improvement in Pinnacle Life's solvency capital and
financial flexibility could allow it to achieve those economies
of scale and may lead to positive rating actions. However, the
ratings could be downgraded if there are large impairments in net
insurance contract assets due to higher-than-expected lapses for
its in-force business. A rating downgrade could also result from
increased drain on the solvency margin due to higher-than-
budgeted operating expenses or greater-than-assumed claim
frequency.


QUEST INSURANCE: A.M. Best Affirms B(Fair) Fin. Strength Rating
---------------------------------------------------------------
A.M. Best has affirmed the Financial Strength Rating of B (Fair)
and the Long-Term Issuer Credit Rating of "bb" of Quest Insurance
Group Limited (Quest) (New Zealand). The outlook of these Credit
Ratings (ratings) remains stable.

The ratings reflect Quest's favorable risk-adjusted
capitalization, low product risk profile and positive operating
results. A.M. Best expects Quest's risk-adjusted capitalization,
as measured by Best's Capital Adequacy Ratio (BCAR), to remain
adequate in supporting its near-term business growth plans.
Overall operating results have been consistently positive,
stemming from contributions from Quest's large investment
portfolio, relative to its premium revenue.

Offsetting these positive rating factors are the company's
limited market profile and weak underwriting performance. Quest
provides loan protection and motor vehicle insurance to the loan
customers of its parent company, Geneva Finance Limited (GFL).
These policies have short terms of between one and three years.
Therefore, the company's premium revenue is largely dependent on
new business, which itself is driven by the volume of new lending
by GFL. At present, GFL is a small lender in providing vehicle
finance in the New Zealand market.

The insurance products that Quest underwrites have low claims
costs but a high commission expense structure, as represented by
a five-year average combined ratio in excess of 100%.
Consequently, underwriting profit margins are thin, and the
company generates most of its profits from investment earnings.

Positive rating actions may occur if the company can demonstrate
improved underwriting profitability and achieve its growth plans.
Negative rating actions could occur if there is a significant
deterioration in the company's risk-adjusted capitalization or
underwriting performance. In addition, the ratings may experience
downward pressure should there be a material decline in the
overall financial strength of GFL.


TENON LIMITED: Remaining Assets Sold for US$55 Million
------------------------------------------------------
Jonathan Underhill at NZ Herald reports that Rubicon, the NZX-
listed forestry biotech company that controls Tenon Limited, has
teamed with US and New Zealand investors to agree to buy the wood
processing company's remaining asset, the Clearwood manufacturing
business, for US$55 million (NZ$76.6 million), a deal that would
actually free up cash and reduce Rubicon's exposure.

The deal needs sign-off from Tenon shareholders before it can be
settled on the target date of April 28.  Tenon is tied to the
transaction by a US$1.65 million termination fee if it halts the
sale plus costs for the bidding group of up to US$500,000,
according to NZ Herald.

The report notes the offer amounts to $2.12 a share net of costs,
or $2.39 before costs, within the sale and liquidation range in
an assessment by Grant Samuel, they said, the report notes.  It
also exceeds the top end of value range if Tenon was to continue
with the business, the report relays.

"Deutsche-Craigs ran an exhaustive sales process for Tenon,
generating expressions of interest from eight parties, domestic
and international," but the Rubicon-led offer was deemed to be
the best by the two independent directors, the report relays.

Tenon's three directors linked to Rubicon weren't involved in
evaluating the offer, the report notes.

"Given an extensive investment bank-led process has been run,
Tenon's independent directors have accepted the consortium's
offer and signed the sale and purchase agreement as being in the
best interests of Tenon shareholders," the company said, notes
the report.

The report discloses that Grant Samuel valued Clearwood,
inclusive of costs, under a sale and subsequent liquidation of
Tenon, at US$45.8 million to US$56.3 million, or NZ$1.99 to
NZ$2.45 per share.

The report says net of transaction, wind-up and liquidation
costs, total cash to be returned to Tenon shareholders under the
sale of Clearwood and the subsequent liquidation of Tenon would
be about US$48.8 million, made up of a US$43 million capital
return and a further US$5.8 million distribution after
liquidation.

Rubicon owns about 60 percent of Tenon and also owns about one-
third of American seedling company ArborGen.

Hugh Fletcher, chair of Rubicon's independent committee managing
the deal, said there were several reasons why Rubicon was
involved, the report relays.

"Firstly, to ensure that Tenon's strategic review is completed
successfully, with an appropriate outcome for all shareholders,"
Mr. Fletcher said, the report relates.  "Secondly, we have
indirectly managed the Clearwood business for a long time and
know it well. We are a comfortable owner, but would rather own
our Clearwood investment directly through a private vehicle, than
via a public entity," he added.

The report discloses Mr. Fletcher said the investment vehicle
allowed new investors to come on in future.  Rubicon's own cash
position would lift by about US$10 million as a result of this
transaction, because it is effectively a selldown from its
holding through Tenon, of about 60 percent, and Rubicon will get
its share of the US$43 million to be returned, the report adds.



=====================
P H I L I P P I N E S
=====================



* PHILIPPINES: LGUs to Face PHP821-Mil. Losses from Mine Closures
-----------------------------------------------------------------
Ben O. de Vera and Ronnel W. Domingo at the Philippine Daily
Inquirer report that the orders to suspend or close down 28
mining operations could cost local governments a total of more
than PHP821.13 million a year, Finance Secretary Carlos G.
Dominguez III said Feb. 20.

The Inquirer relates that Mr. Dominguez noted of higher foregone
revenues based on an updated report of the Department of Finance-
attached agency Bureau of Local Government Finance (BLGF) from
the earlier estimate of PHP653.6 million.

According to the report, Mr. Dominguez said the suspension and
closure orders would affect 17 cities and municipalities in 10
provinces, namely Benguet, Bulacan, Cebu, Dinagat Islands,
Eastern Samar, Nueva Vizcaya, Palawan, Surigao del Norte, Surigao
del Sur and Zambales.

Mr. Dominguez said three municipalities were poised to lose
revenues from mining operations that were equivalent to more than
half of their current operating incomes due to the orders earlier
issued by the Department of Environment and Natural Resources
(DENR).

'One is the municipality of Carrascal [in Surigao del Sur], then
you have Tagana-an [in Surigao del Norte] and Tubajon [in Dinagat
Islands]," the report quotes Mr. Dominguez as saying.

Based on updated BLGF data, Carrascal would lose PHP198.3 million
of its mining revenues, equivalent to 62.3% of its total
operating income; Tagana-an would lose PHP70.3 million or 54% of
its total operating income, and Tubajon would lose PHP38 million
or 55.4% of its total operating income, the Inquirer discloses.

"Local collections of the affected local government units (LGUs)
from mining firms amounted to PHP340 million, comprising real
property taxes (RPTs) of PHP53.54 million, PHP263.13 million from
business tax, fees, charges and other local charges, and PHP23.29
million from provincial revenues. The share of the affected LGUs
from mining taxes collected by the national government account
for PHP481.17 million," the Inquirer quotes BLGF acting executive
director NiNo Raymond B. Alvina as saying.

"LGUs directly collect from mining firms operating in their
municipalities and cities the following taxes and fees: RPTs,
local business tax, mayor's permit fee, regulatory and
administrative fees and occupation fees. The provinces of the
affected component municipalities are also imposing governor's
clearance, verification fee, environmental fees, soil depletion
tax and processing permits for vessel.

"For the RPTs imposed by cities, the LGU gets a 70-percent share
while the remaining 30% is shared with the barangays, of which
half goes to the barangay directly affected and the other half
shared equally by component barangays. For the RPTs collected by
provinces, the province receives a 35-percent share while 40%
goes to the municipality and the remaining 25% to barangays where
the mining site is located," Mr. Alvina, as cited the Inquirer,
added.

The latest BLGF report has yet to include the impact on revenues
of LGUs that host the 75 mining sites whose mineral production
sharing agreements (MPSAs) were also ordered canceled by the DENR
last week, adds the Inquirer.



                             *********

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.


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.

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

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

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



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