TCRAP_Public/170303.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

            Friday, March 3, 2017, Vol. 20, No. 45

                            Headlines


A U S T R A L I A

BRANDPOINT DISTRIBUTORS: First Creditors' Meeting Set March 14
COMTEX CORPORATE: First Creditors' Meeting Set for March 10
HOVAN PTY: First Creditors' Meeting Set for March 10
STOCKLAND ROCKHAMPTON: Forced Into Involuntary Administration
WSH GROUP: First Creditors' Meeting Scheduled for March 10


C H I N A

CHINA SCE: Moody's Revises Outlook to Stable; Affirms B1 CFR
GOME ELECTRICAL: S&P Assigns 'BB' CCR; Outlook Stable
XINHU (BVI): Fitch Assigns 'B' Rating to USD700MM Sr. Notes
XINYUAN REAL: Fitch Assigns 'B' Rating to USD300MM Sr. Notes
YINGDE GASES: Air Products Vows to Continue with Buyout Bid

* Chinese Auto ABS Delinquencies Decline in Q4 2016, Moody's Says


H O N G  K O N G

CHINA SOUTH: Fitch Assigns 'B(EXP)' Rating to Proposed USD Notes
CLSA LTD: To Close US Equities Business; 90 Jobs Affected


I N D I A

ANG LIFE: CRISIL Downgrades Rating on INR7MM Cash Loan to 'D'
BALLARPUR INDUSTRIES: Ind-Ra Lowers Rating on INR2.47 CP to 'D'
DNH PROJECTS: ICRA Reaffirms 'C' Rating on INR12cr Loan
G.D. METSTEEL: ICRA Reaffirms 'B' Rating on INR18cr LT Loan
GENESYS BIOLOGICS: CRISIL Assigns B+ Rating to INR60MM LT Loan

GMR INFRASTRUCTURE: Unit Allots Shares to Lenders Under SDR
HALDIA NIRMAN: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
HALLMARK AQUAEQUIPMENT: CRISIL Reaffirms B+ INR6.6MM Loan Rating
HANUMAN IMPEX: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
HEMRAJ DEVKARANDAS: CRISIL Assigns B+ Rating to INR10MM Loan

HILLWOOD FURNITURE: CRISIL Lowers Rating on INR3MM Loan to 'B'
HILLWOOD IMPORTS: CRISIL Lowers Rating on INR1MM Cash Loan to B
HIMALAYAN ROAD: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
ICOMM TELE: ICRA Reaffirms 'D' Rating on INR793.96cr Loan
JANARDHAN PLYBOARD: CRISIL Cuts Rating on INR4.5MM Loan to 'D'

K P BUILDCON: ICRA Reaffirms B+ Rating on INR15.55cr LT Loan
KAIZEN INDUSTRIES: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
KISHORE G: CRISIL Reaffirms B+ Rating on INR5.5MM Cash Loan
LILY REALTY: CRISIL Lowers Rating on INR310MM Term Loan to D
LIVINGSTONES: ICRA Reaffirms 'B+' Rating on INR48cr LT Loan

MAC STEEL: CRISIL Assigns 'B+' Rating to INR4.5MM Cash Loan
MAHITECHS: Ind-Ra Affirms 'B+' Long-Term Issuer Rating
MANDOVI MINERALS: CRISIL Reaffirms 'B' Rating on INR12.31MM Loan
MEGAMILES BEARING: CRISIL Upgrades Rating on INR5MM Loan to BB-
MONNET ISPAT: JSW Steel Offers to Buy Controlling Stake

NATRAJ HOME: CRISIL Assigns B+ Rating to INR5MM Foreign Loan
PILOT 2 WHEELERS: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
PRAGATI SPINNERS: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
RAGHUNATH LAXMINARAYAN: CRISIL Cuts Rating on INR10MM Loan to D
RAJEEV KUMAR: CRISIL Assigns B+ Rating to INR0.2MM LT Loan

S.B. SYSCON: CRISIL Reaffirms B+ Rating on INR10.5MM Cash Loan
SAFE-TRONICS AUTOMATION: ICRA Reaffirms B+ Rating INR4cr Loan
SAI INFRACONSTRUCTIONS: Ind-Ra Assigns 'BB-' LT Issuer Rating
SHIV MAHIMA: CRISIL Reaffirms 'B' Rating on INR6.0MM Cash Loan
SHRILEKHA TRADING: CRISIL Lowers Rating on INR10MM Loan to 'C'

SIDDHI GANESH: CRISIL Reaffirms B+ Rating on INR20MM Loan
SONI GINNING: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
SOUTHERN COOLING: CRISIL Reaffirms B- Rating on INR12MM Loan
SRC LABORATORIES: CRISIL Upgrades Rating on INR9.75MM Loan to B
SRI SRINIVASA: CRISIL Raises Rating on INR6MM Cash Loan to B+

STATE BANK: Moody's Rates MTN Capital Securities Component (P)B1
SUBHKARAN AND SONS: CRISIL Cuts Rating on INR50MM Loan to 'D'
SUBRAHMANYESWARA SWAMY: CRISIL Puts B- Rating on INR5.79MM Loan
SUPERWAYS ENTERPRISES: CRISIL Cuts Rating on INR100MM Loan to D
T C COMMUNICATION: Ind-Ra Assigns 'B+' Long-Term Issuer Rating

TERRA ENERGY: ICRA Raises Rating on INR20.16cr Loan to B+
THIRU AROORAN: ICRA Assigns B+ Rating to INR235.03cr Loan
TRUWOODS PRIVATE: ICRA Reaffirms B+ Rating on INR7.0cr Loan
UJALA MINERALS: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
VAKRANGEE FOUNDATION: Ind-Ra Affirms 'B+' Rating on INR35.3M Loan

VIKAS TRANSPORT: CRISIL Reaffirms B+ Rating on INR3.8MM Loan
VIRAJ SYNTEX: CRISIL Reaffirms B+ Rating on INR4.15MM Loan


J A P A N

TOSHIBA CORP: Seeks Advise on Potential US Unit Bankruptcy Cost
TOSHIBA CORP: Foxconn Confirms Plan to Buy Chip Business


S I N G A P O R E

EMAS CHIYODA: Case Summary & 30 Largest Unsecured Creditors
EMAS CHIYODA: Will Implement Revised Business Plan Thru Ch. 11


                            - - - - -


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


BRANDPOINT DISTRIBUTORS: First Creditors' Meeting Set March 14
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of
BrandPoint Distributors Pty Ltd will be held at the offices of
FTI Consulting, 22 Marketing Street, in Brisbane, Queensland, on
March 14, 2017, at 1:30 p.m.

John Park and Kelly-Anne Trenfield of FTI Consulting were
appointed as administrators of BrandPoint Distributors on
March 2, 2017.


COMTEX CORPORATE: First Creditors' Meeting Set for March 10
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Comtex
Corporate Services Pty Limited will be held at the offices of BPS
Recovery, Level 18, 201 Kent Street, in Sydney, on March 10,
2017, at 11:00 a.m.

Mitchell Ball of BPS Recovery was appointed as administrator of
Comtex Corporate on Feb. 28, 2017.


HOVAN PTY: First Creditors' Meeting Set for March 10
----------------------------------------------------
A first meeting of the creditors in the proceedings of Hovan Pty
Ltd, trading as Grandma Moses Bakery and Deli, will be held at
Level 2, 151 Macquarie Street, in Sydney, NSW, on March 10, 2017,
at 11:30 a.m.

Antony Resnick and David Solomons of de Vries Tayeh were
appointed as administrators of Hovan Pty on Feb. 3, 2017.


STOCKLAND ROCKHAMPTON: Forced Into Involuntary Administration
-------------------------------------------------------------
Chloe Lyons at The Morning Bulletin reports that creditors met to
discuss debts owed by former mayoral candidate Michael McMillan's
business.

Mr. McMillan, who is now working in North Queensland in public
relations, purchased the Stockland Rockhampton Coffee Club
franchise back in 2009, but sold late last year, according to The
Morning Bulletin.

The creditors met with liquidators Deloitte in Brisbane on
February 28.

Deloitte's lead partner for restructuring services, Richard
Hughes, said the business was forced into involuntary
administration due to unpaid taxes, the report relays.

"The company was wound up by the Australian Taxation Office
(ATO), on the petition of the ATO in court so, it wasn't
voluntary," the report quoted Mr. Hughes as saying.

"There was a debt owing, the debts owing under GST hadn't been
paid and PAYG hadn't been paid.

"As part of the normal ATO debt collection practices they pursued
the debt and ended up in a winding up and we were contacted."

The report notes Mr. Hughes said in spite of the "difficult
situation", a positive outcome was achieved.

"Ultimately I think it's a good outcome. We were able to sell the
business as a going concern, staff were able to retain their
jobs," Mr. Hughes said.

"The creditors are going to receive, or at least the bank
involved, is going to receive some recompense for the debt they
had in there," Mr. Hughes added.

The report discloses Mr. McMillan said he was in negotiations
with the ATO for six months before the liquidation was triggered
by a technicality and not a lot of money was owed to about eight
creditors who would be at next week's meeting.

Mr. McMillan also said he chose to leave the business and he and
his family had moved on since the sale, but endeavoured to look
after their financial commitments in a timely manner, the report
ntoes.

"It was probably time to move it on to someone who was in a
better position to take the business moving forward, so that's
what we endeavoured to do - we sold the business," Mr. McMillan
said.

"It's not that we had high debt at all."

The report says the business was sold as a going concern and
continued to trade throughout the process.

The report discloses the amount owing has not been disclosed.


WSH GROUP: First Creditors' Meeting Scheduled for March 10
----------------------------------------------------------
A first meeting of the creditors in the proceedings of WSH Group
Pty Ltd, formerly trading as Watersun Homes, will be held at
'Chartered Accountants of Australia and New Zealand', Level 18,
600 Bourke Street, in Melbourne, Victoria, on March 10, 2017, at
10:00 a.m.

Mathew Terence Gollant and Neil Stewart Mclean of Rodgers Reidy
were appointed as administrators WSH Group on Feb. 28, 2017.



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


CHINA SCE: Moody's Revises Outlook to Stable; Affirms B1 CFR
------------------------------------------------------------
Moody's Investors Service has revised the ratings outlook on
China SCE Property Holdings Limited to stable from negative.

Moody's has also affirmed China SCE's B1 corporate family rating
and the B2 senior unsecured ratings for the bonds issued by the
company.

RATINGS RATIONALE

"The change in China SCE's ratings outlook to stable from
negative reflects Moody's expectations that the company will show
a sustained improvement in its credit metrics, supported by
strong revenue growth, improved gross profit margins, as well as
prudent land acquisitions and debt management over the next 12-18
months," says Franco Leung, a Moody's Vice President and Senior
Credit Officer, and who is also the International Lead Analyst
for China SCE.

"The company's robust liquidity position also supports its stable
ratings outlook," says Cindy Yang, a Moody's Assistant Vice
President and Analyst, and who is also the Local Market Analyst
for China SCE.

Moody's expects that China SCE's revenue will grow 20%-25% year-
on-year over the next 12-18 months, supported by the company's
strong contracted sales of RMB23.5 billion in 2016, including
contributions from joint ventures and associates. The result in
2016 represented a 62% year-on-year growth. At end-2016, the
company indicated that it had locked in around 70% of the target
revenue in 2017.

China SCE is increasing its focus on Tier 1 and major Tier 2
cities in China, where its projects represented 37% of its total
land bank at end-2016 from 23% at 30 June 2016. Its quality land
bank will support the company's contracted sales growth momentum
over the next 1-2 years.

Moody's expects that around 60%-70% of China SCE's total sales in
2017 will come from Shanghai, Beijing and Tianjin. Moody's
therefore estimates that the company's contracted sales will grow
10%-15% in 2017.

Moody's notes that China SCE's average selling price in terms of
its contracted sales grew 22% year-on-year to RMB14,172 per
square meters in 2016. This situation will result in better gross
profit margins when the presold properties in Shenzhen, Shanghai
and around Beijing are delivered over the next two years.

Moody's also expects that China SCE's gross profit margins will
improve to around 28% in 2017 compared with 25% in 2016.

The aforementioned positive developments will result in turn in
improved credit metrics that support the company's B1 corporate
family rating. Specifically, Moody's expects that China SCE's
interest coverage - as measured by adjusted EBIT/interest - will
rise to around 3.0x over the next 12-18 months compared to 2.7x
for 2016. Its debt leverage - as measured by adjusted
revenue/debt - will likely rise to around 65%-70% from 63% at
end-2016.

The above credit metrics are also based on Moody's expectation
that China SCE will continue to exercise prudence in its land
acquisitions and debt management. In particular, Moody's assumes
that the company will not invest more than 50% of its total
contracted sales in land acquisitions, and will control debt
growth within 10%-20% year-on-year over the next 12-18 months.

China SCE's liquidity position is strong, as evidenced by its
cash to short-term debt rising to around 2.5x at end-2016 from
around 1.6x at 30 June 2016. The increase was driven mainly by
improved cash collections from contracted sales.

China SCE's B1 corporate family rating reflects its track record
and strong market position in Quanzhou, Fujian, growing operating
scale, good liquidity position, and recovering strong profit
margins from its expansion in Tier 1 and Tier 2 cities outside
Fujian Province.

On the other hand, its corporate family rating is constrained by
the company's moderate debt leverage and execution risk
associated with its expansion.

China SCE's ratings could be under upgrade pressure, if the
company: (1) demonstrates stable sales growth and grows its
scale; (2) maintains its prudent approach to land acquisitions;
and (3) maintains EBIT/interest coverage in excess of 3.0x and
adjusted revenue/gross debt in excess of 75%-80% on a sustained
basis.

On the other hand, the company's ratings could come under
downward pressure if China SCE: (1) generates weak contracted
sales; (2) suffers from a material decline in its profit margins;
(3) experiences an impairment of its liquidity position, such
that cash/short-term debt falls below 1.0x; and/or (4) materially
increases its debt leverage.

Credit metrics indicative of a ratings downgrade include
EBIT/interest coverage below 2.0x, and/or adjusted revenue/debt
below 65% on a sustained basis.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.

Founded in 1996, China SCE Property Holdings Limited is a leading
property developer in Fujian Province. The company listed on the
Hong Kong Stock Exchange in February 2010, and is 57.6% owned by
its chairman, Mr. Wong Chiu Yeung.

The company has also expanded to first- and second-tier Chinese
cities, including Shanghai, Shenzhen, Beijing, Tianjin, Xiamen,
Nanchang, Hangzhou, Nanjing and Suzhou, but still around one
third of its land bank comprise plots in Quanzhou in Fujian
Province at end 2016.


GOME ELECTRICAL: S&P Assigns 'BB' CCR; Outlook Stable
-----------------------------------------------------
S&P Global Ratings said it assigned its 'BB' long-term corporate
credit rating and 'cnBBB-' long-term Greater China regional scale
rating to GOME Electrical Appliances Holdings Ltd.  The outlook
is stable.

At the same time, S&P assigned its 'BB-' long-term issue rating
and 'cnBB+' long-term Greater China regional scale issue rating
to the company's proposed U.S. dollar-denominated senior
unsecured notes.  The issue ratings are subject to S&P's review
of the final issuance documentation. GOME is a leading electrical
appliance and consumer electronics retailer based in China.

"The ratings on GOME reflect the company's operations in the
highly competitive electronics and appliance retail industry in
China and its moderate product differentiation, which has
resulted in weak profitability.  The company's satisfactory
market position, strong brand name, and extensive distribution
network temper these weaknesses," said S&P Global Ratings credit
analyst Shalynn Teo.

Intense competition from Internet-based retailers and other
specialty retailers will weigh on GOME's profitability, in S&P's
view.  An increasing contribution of lower-margin online sales
may also constrain overall profitability.  The company's gross
margin for online sales was about 3.0% in the first half ended
June 30, 2016, against 18.3% for offline sales, and the overall
consolidated gross profit margin was 16.4%.

S&P expects GOME's plan to upgrade its stores to "lifestyle
experience centers" over 2016-2018 to drive revenue gains over
the longer term, despite volatility in sales and gross margins
over the next 12 months.  S&P also expects the contribution of
lower-margin online sales to increase to 15%-20% over the next
two years compared with 10% in 2015.  As a result, S&P expects
EBITDA margins to drop to 5.7%-6.1% over the next 12 months,
tempered by better merchandising in addition to continued prudent
cost control.

In S&P's view, GOME's effective merchandizing strategy can
partially alleviate its exposure to largely standardized and
homogenous products, where it encounters challenges in pricing
power.  S&P expects the company to continue to increase the
contribution of higher-margin differentiated products, which
should support overall margins.  These differentiated products
include original design manufacturer (ODM) and original equipment
manufacturer (OEM) products, exclusive products, and a guaranteed
lowest price for 3C (computing, communication, and consumer) and
small appliances.  Differentiated products accounted for 38% of
sales in the first half of 2016, up from about 20.0% in 2012.

S&P anticipates the acquisition of Artway Development Ltd., which
was completed in March 2016, will further enhance GOME's scale
and competitive positioning, and increase the store network in
lower-tier cities in China.  After consolidating Artway's stores,
GOME has the largest store network in China's electronics and
appliance retail sector.  Total stores under operation increased
to 1,727, and the company has a presence in 428 cities in China
as of  June 30, 2016, from 1,049 (247 cities) in 2012.  In
addition, S&P expects GOME to benefit from higher growth
prospects and stronger pricing power from Artway's stores in
lower-tier cities, where penetration of household appliances is
lower and competition is less intensive.  The company has 45.5%
of stores in lower-tier cities as of the first half of 2016, up
from 36.9% in 2012, while revenue contribution continued to rise
to 24.5% from 18.3% over the same period.  The gross margin for
Artway alone was about 19.0%, compared with GOME's 16.4% in the
first half of 2016.

In S&P's view, GOME's competitiveness and scale in online
retailing remain limited and a more aggressive expansion in
online revenues than S&P's expectation could weigh on the
company's overall margins.  As of end 2015, GOME's share of
online direct sales market by gross merchandise value (GMV) was
4.1%, lagging JD.com Inc. (57.0%) and Suning Appliance Co. Ltd.
(9.9%).  This is despite GOME growing its GMV at a compound
annual rate of 100% over 2013-2015.  S&P expects GOME to increase
the GMV of its online segment by 70%-100% over the next one to
two years, given strong customer demand online, and the company's
offline-to-online integration.

S&P expects GOME's debt-to-EBITDA ratio to increase to 3.4x-3.8x
over the next 12 months, from S&P's estimate of 3.2x in 2016 and
1.4x in 2015, reflecting the company's increasingly aggressive
debt-funded expansion appetite and near-term margin pressures.
GOME is likely to continue to incur significant capital
expenditures for store upgrades and for opening new stores, which
its operating cash flows are unlikely to fully offset.
Nevertheless, S&P expects the company to maintain disciplined
financial management and not pursue material acquisitions or
shareholder-friendly capital investments.

The issue rating is one notch lower than the long-term corporate
rating on GOME to reflect structural subordination risk.  The
ratings on the notes are subject to S&P's review of the final
issuance documentation.  GOME intends to use the proceeds from
the proposed bond to expand the company's business operations
overseas and for other general corporate purposes.

The stable outlook reflects S&P's expectation that GOME will
sustain its good market position, modest sales growth, stable
margins, and disciplined capital management over the next 12
months, despite intense competition in China.  S&P expects the
company's profitability to stay low and that it will raise more
debt to fund its store investment plans.

S&P could lower the rating if GOME's debt-to-EBITDA ratio
increases above 4.0x.  This may happen if the company: (1) takes
on more aggressive debt-funded expansion than S&P expects; (2)
pursues shareholder-friendly investments; or (3) has difficulty
executing its expansion strategy or faces more severe competition
than S&P expects, resulting in a significant deterioration in its
profitability.

S&P may raise the rating if GOME can maintain a debt-to-EBITDA
ratio of below 3.0x and FFO-to-debt ratio of above 30% on a
sustained basis.  This could happen if the company can: (1)
improve profitability through successful product differentiation
or good cost control despite intense market competition and a
slowing economy; and (2) implement disciplined financial
management to control debt-funded expansion.


XINHU (BVI): Fitch Assigns 'B' Rating to USD700MM Sr. Notes
-----------------------------------------------------------
Fitch Ratings has assigned Xinhu (BVI) Holding Company Limited's
proposed USD700m 6% senior notes due 2020 a final rating of 'B'
and a Recovery Rating of 'RR4'.

Xinhu (BVI) is a fully owned subsidiary of Xinhu Zhongbao Co.,
Ltd., which will unconditionally and irrevocably guarantee the
notes. The notes are rated at the same level as Xinhu Zhongbao's
senior unsecured rating because they constitute the company's
direct and senior unsecured obligations. The assignment of the
final rating follows the receipt of documents conforming to
information already received. The final rating is in line with
the expected rating assigned on 17 February 2017.

KEY RATING DRIVERS

High Leverage Constrains Ratings: Xinhu Zhongbao has reported
persistently high leverage of 60%-70%, as measured by net
debt/adjusted inventory, if including financial joint venture
investments. However, the high leverage is due to its 'primary
land development and secondary property development' business
model, which helps keep land costs low. This gives the company
room to deleverage by lowering pressure for new land acquisitions
or by introducing partners to its existing Shanghai projects.
Furthermore, Xinhu Zhongbao's significant investment in financial
institutions means its leverage is higher than most other
homebuilders that solely focus on the property development
business.

Slower Turnover than Peers: Xinhu Zhongbao's project churn of
0.3x in 2015, as measured by contracted sales/net inventory, is
low compared with the 0.6x average of 'B' rated peers. Fitch
expects most of the primary land development costs to occur in
the next year or two, which will push up inventory levels, while
contracted sales will kick in and cover property development
costs from late 2018.

Quality Land Bank: The majority of the land Xinhu Zhongbao has
for secondary developments are in key cities around the Yangtze
River Delta, with 25% of its sellable resources by value located
within the Shanghai inner-ring that benefits from limited supply.
This supports an increase of Xinhu Zhongbao's future average
selling prices (ASP) by more than 50% when the Shanghai projects
are launched in 2018 or 2019, from CNY11,061 per square metre in
2015.

Sales Growth and Margin Improvement: Fitch expects Xinhu
Zhongbao's high land quality to support robust contracted sales
growth and higher margins. Fitch forecasts increase in ASP will
drive the company's gross profit margin above 30% when the
Shanghai project sales are recognised in 2019, from its 2015
EBITDA margin of 23%. However, Fitch foresee a lower EBITDA
margin for 2016 and 2017 due to higher construction, land and
selling, general and administrative expenses, as the economies of
scale arising from increased sales from its better-quality
projects will not kick in until 2018.

Financial Investments Given Credit: Xinhu Zhongbao has been
building up its portfolio of long-term equity investments in
financial institutions, mainly in Xiangcai Securities Co., Ltd.,
Shengjing Bank, Bank of Wenzhou Co Ltd and China CITIC Bank
Corporation Limited (BBB/Stable). Fitch has included these long-
term investments into Fitch leverages calculation as part of
adjusted inventories. Fitch also adjusted Xinhu Zhongbao's net
debt to include a cash credit from its marketable equity
investments. The company has consistently made large marketable
equity investments in the Chinese and Hong Kong equity markets.

DERIVATION SUMMARY

Xinhu Zhongbao's ratings are supported by its high land quality,
which will drive robust contracted sales growth and higher
margins. Its ratings are mainly constrained by high leverage.

Xinhu Zhongbao has a similar business model and contracted sales
scale to Oceanwide Holdings Co. Ltd. (B/Stable). Both companies
have slow churn as measured by contracted sales/total debt. Xinhu
Zhongbao has lower leverage, while Oceanwide has a stronger
EBITDA margin and higher equity investment in financial
intuitions.

Xinhu Zhongbao has a larger and better-quality land bank compared
with Chinese property peers rated at 'B-', such as Jingrui
Holdings Limited (B-/Negative) and Sunshine 100 China Holdings
Ltd (B-/Negative).

KEY ASSUMPTIONS

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

- No new land acquisitions in 2017 or 2018 and limited new land
   acquisition thereafter.

- Contracted sales in terms of gross floor area increasing by
   20% in 2016-2017, then slowing once sales from the new
   Shanghai projects begin in 2018-2019.

- A mild increase in ASPs in 2016-2017, then sharp increase in
   2018-2019 as the contribution of contracted sales from
   Shanghai increases.

- A 90% cash collection ratio for property contracted sales.

- A lower EBITDA margin in 2016-2017 due to higher construction
   and land costs, followed by a margin rebound in 2018 when
   better-quality projects are recognised.

RATING SENSITIVITIES

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

- contracted sales/net inventory sustained below 0.3x or
   contracted sales sustained below CNY10bn and failing to
   support property business expansion and lower debt repayment
   capacity; and

- EBITDA margin sustained below 20%.

Positive: Developments that may, individually or collectively,
lead to positive rating action include:

- net debt/adjusted inventory, including financial joint venture
   assets, sustained below 50%;

- contracted sales/net inventory sustained above 0.5x; and

- EBITDA margin sustained above 30%.

LIQUIDITY

Xinhu Zhongbao has tight liquidity, but Fitch do not foresee a
liquidity shortage in 2017. The company's cash and marketable
securities totalled CNY20bn in 1H16 after Fitch's took a 60%
haircut to its CNY9bn marketable equity investments based on the
agency's rating methodology. Xinhu Zhongbao can cover short-term
debt of around CNY22bn plus the CNY6bn negative FCF forecast,
with support from the CNY9bn available from an undrawn bank
facility. In addition, the company's high quality and sufficient
land reserve provides an adequate pledge for financing if
necessary.


XINYUAN REAL: Fitch Assigns 'B' Rating to USD300MM Sr. Notes
------------------------------------------------------------
Fitch Ratings has assigned Xinyuan Real Estate Co., Ltd.'s
(Xinyuan; B/Stable) USD300m 7.75% senior notes due 2021 a final
rating of 'B' and a Recovery Rating of 'RR4'.

The notes are rated at the same level as Xinyuan's senior
unsecured rating because they constitute the company's direct and
senior unsecured obligations of the company. The assignment of
the final rating follows the receipt of documents conforming to
information already received. The final rating is in line with
the expected rating assigned on 15 February 2017.

KEY RATING DRIVERS

Solid Contracted Sales: Xinyuan's contracted sales increased by
35% to CNY12bn in 2016, following a 35% increase in 2015. The
strong growth was driven by robust market sentiment in its core
Tier 2 cities as well as satellite cities surrounding Tier 1
cities, namely Zhengzhou, Jinan, Suzhou and Kunshan. Tier 2
cities contributed 61% of contracted sales in 1H16 (2015: 62%).

Small Land Bank Constrains Ratings: Xinyuan's total sellable
gross floor area decreased to 2.2 million square metres (sqm) at
end-2016, from 2.3 million sqm at end-2015. Its land bank will
last for two years - based on 2016 sales - which is low compared
with 'B' rated peers. Xinyuan pays advance deposits to local
government and industry partners to secure a large part of its
land bank, excluding normal public auctions. This acquisition
strategy creates uncertainty about its land bank, as it
constrains scale and sales.

Land Replenishment Pressures Leverage: Xinyuan has accelerated
acquisitions after not purchasing any new land in 2015. It
announced acquisitions of CNY3.6bn in China and the US in 2016,
with cash outlay of around CNY2.6bn after considering returned
land deposits and prepayments for certain land parcels. With its
low land bank and fast asset-churn model, Xinyuan's high land
replenishment needs will continue to pressure leverage, which
Fitch expects to hover at around 45%-50% in 2016-2017. This is
made worse by surging land prices in higher-tier cities amid
fierce competition and a moderate acquisition pace with cash-
land-premium-paid/contracted-sales at 40%-45%.

Margin Recovery Sustainable: Fitch expects Xinyuan's gross margin
to continue improving in 2017, with a rising average selling
price (ASP) trend for most of its top-10 projects on sale in
2016. Xinyuan's contracted sales ASP of USD1,564 per sqm in 2016
was also higher than the aggregate price of USD1,387 per sqm
recognised in its 2016 revenue. The higher ASPs in core cities
and recognition of the Oosten project in the US helped the
homebuilder's gross margin recover in 2H16. This follows a slight
fall to 27% in 1H16 after adding back capitalised interest, from
28% in 2015 when the homebuilder recognised its low-margin
projects in Suzhou, Jinan and Kunshan. However, this improvement
may reverse for projects it will be acquiring in 2017 if land
acquisition costs sprint ahead of the rising ASP.

The homebuilder's EBITDA margin will likely improve faster than
the gross margin, as the 6% increase in selling, general and
administration costs lagged the compared with the 35% increase in
contracted sales, which suggests operational costs are under
control. Xinyuan's selling, general and administration costs will
also be spread over a wider base and boost its EBITDA margin, as
its 2016 revenue of USD1.6bn catches up to its contracted sales
of USD1.8bn.

DERIVATION SUMMARY

Xinyuan's rating is supported by its solid sales and constrained
by its tight liquidity and low land bank. Xinyuan has a larger
scale measured by EBITDA, higher contract sales and greater
leverage compared with 'B' rated Chinese property peers, such as
Redco Properties Group Ltd (B/Stable). Furthermore, Xinyuan has
more stable profitability and lower leverage than 'B-' peers,
such as Jingrui Holdings Limited (B-/Negative).

KEY ASSUMPTIONS

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

- Contracted sales in terms of gross floor area to increase by
   40%-50% in 2016 and 5% in 2017-2018 due to improved churn in
   Tier 1 and 2 cities.

- Contracted sales ASP to increase by around 5% between 2016 and
   2018 due to price increases in Tier 1 and 2 cities.

- Moderate acquisition pace with cash-land-premium-
   paid/contracted-sales at 40%-45% in 2016-2018.

- Construction cost per sqm declining to around USD650-700 in
   2016-2018, due to cheaper construction costs in Tier 2 cities.

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

RATING SENSITIVITIES

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

- Net debt/adjusted inventory rising above 60% on a sustained
   basis (2015: 45%).

- Contracted sales/total debt falling below 0.6x on a sustained
   basis (last 12 months to June 2016: 0.8x).

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

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

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

- Net debt/adjusted inventory sustained below 40%.

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

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

LIQUIDITY

Tight but Sustainable Liquidity: The company's liquidity position
is stable, with a ratio of cash/short-term debt of 90% at end-
June 2016 (end-2015: 92%). Xinyuan's total cash of USD931m and
undrawn credit facilities of USD306m are insufficient to cover
its short-term borrowings of USD1.036bn and acquisition costs,
although active fundraising in the onshore bond market has
alleviated refinancing pressure. The company issued two five-year
bonds of USD107m and USD77m at 7.47% and 7.09%, respectively, in
2016. These issuances brought down Xinyuan's average borrowing
cost to 8.5% at end-June 2016, from 9.5% at end-2015.


YINGDE GASES: Air Products Vows to Continue with Buyout Bid
-----------------------------------------------------------
South China Morning Post reports that US-based Air Products &
Chemicals insists it will continue to fight for control of
embattled Yingde Gases Group after its non-binding offer was
matched on March 1 by PAG Asia Capital, one of Asia's largest
buyout funds.

"Air Products is aware of the latest developments," the company
said in an emailed statement obtained by SCMP.  "Air Products
plans to continue to participate in the sale process being
conducted by Yingde.  We believe that the combination of Yingde
and Air Products makes significant strategic and financial sense
and would be of great benefit to investors, customers and
employees of both companies."

PAG Asia Capital offered HK$6 per share to Yingde's three
founding shareholders who have a combined 41.9% stake in the
business, on the condition that it can eventually own more than
50% of the gas company, according to SCMP.

SCMP says the offer price is at the top end of the HK$5.50 to
HK$6 price range offered on January 20 by Air Products, in what
could potentially have been the largest US takeover of a Chinese
company in a decade.

Both Yingde and Air Products supply oxygen and other industrial
gases to steel mills and chemical plants, the report notes.

                        About Yingde Gases

Yingde Gases Group Company Limited --
http://www.yingdegases.com/html/index.php-- is principally
engaged in the production and sales of industrial gases in the
People's Republic of China (the PRC). The Company engages in the
sales of industrial gases to on-site customers and merchant
customers. The products include Oxygen, Nitrogen, Argon and some
specialty gases. The Company's customers are mainly from iron and
steel, chemical, non-ferrous metals, electronics and energy
industries.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 3, 2017, S&P Global Ratings lowered its long-term corporate
credit rating on Yingde Gases Group Co. Ltd. to 'CCC-' from 'B-'.
S&P also lowered the issue rating on the outstanding senior
unsecured notes that Yingde guarantees to 'CC' from 'CCC+'.  In
addition, S&P lowered its long-term Greater China regional scale
rating on Yingde to 'cnCCC-' from 'cnB-', and on the notes to
'cnCC' from 'cnCCC+'.  All the ratings remain on CreditWatch,
where they were first placed with negative implications on Dec.
15, 2016.

The downgrade reflects S&P's view of an increased likelihood that
Yingde will not make a timely payment of its Hong Kong dollar
(HK$) 820 million offshore bank loan due Jan. 3, 2017, if it
fails to secure new funding alternatives.

The TCR-AP reported on Jan. 9, 2017, Fitch Ratings has affirmed
Yingde Gases Group Company Limited's Long-Term Foreign-Currency
Issuer Default Rating at 'B+' and removed it from Rating Watch
Negative (RWN), on which it was placed on Dec. 15, 2016.  The
Outlook is Negative.

The rating actions follow the company's refinancing of its
HKD820 mil. offshore loan due on Jan. 3, 2017, with a new one-
year loan.  Fitch do not foresee similar refinancing risk for
both its onshore and offshore loans in the next 6-12 months.

The Negative Outlook reflects Fitch's view that the ongoing
shareholder dispute may have adverse impact on the company's
business and financial profile.


* Chinese Auto ABS Delinquencies Decline in Q4 2016, Moody's Says
-----------------------------------------------------------------
Moody's Investors Service says that delinquency rates for Chinese
auto loan asset-backed securities (ABS) declined slightly in Q4
2016, and will remain low through 2017, reflecting the generally
supportive economic backdrop in China.

"The cumulative default rates of most individual auto ABS
transactions increased moderately in Q4 2016 and at a rate
similar to prior quarters," says Kan Leung, a Moody's Assistant
Vice President and Analyst.

Leung was speaking on the release of Moody's quarterly update on
the performance of auto ABS in China, titled "Auto ABS -- China:
Delinquencies Will Remain Low Through 2017 After Declining in Q4
2016."

"Although Moody's forecast that China's economic growth will
decelerate to 6.3% in 2017, Moody's believes this level of growth
will continue to support auto loan performance," adds Leung.

Moody's report notes that the average 30-day+ and 60-day+
delinquency rates of China's outstanding auto loan ABS
transactions were low at 0.14% and 0.06%, respectively, as of
end-December 2016.

The average constant prepayment rate of outstanding Chinese auto
ABS transactions was 7.4% at end-Q4 2016, up slightly from the
previous quarter.

Although prepayments increased slightly over Q4 2016, they
remained broadly steady for most of 2016, reflecting the stable
interest rate environment in China. Moody's expects the
prepayment rate to decline in Q1 2017, owing to the effects of
the Chinese New Year in January.

In addition, Q4 2016 was the most active quarter for Chinese auto
ABS issuance on record. Seven auto ABS transactions with
portfolios worth a total of RMB24.5 billion were issued in the
quarter.

Subscribers can access the report at
http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1060687

For PRC only: Neither MCO nor any of its majority-owned
affiliates is a qualified credit rating agency within the PRC.
Any rating assigned by MCO or any of its majority-owned
affiliates: (1) does not constitute a rating as required under
any relevant PRC laws or regulations; and (2) cannot be used
within the PRC for any regulatory purpose or for any other
purpose which is not permitted under relevant PRC laws or
regulations. For the purposes of this disclaimer, "PRC" refers to
the mainland of the People's Republic of China, excluding
Hong Kong, Macau and Taiwan.



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


CHINA SOUTH: Fitch Assigns 'B(EXP)' Rating to Proposed USD Notes
----------------------------------------------------------------
Fitch Ratings has assigned China South City Holdings Limited's
(CSC; B/Stable) proposed US dollar senior notes a 'B(EXP)'
expected rating and a Recovery Rating of 'RR4'.

The notes are rated at the same level as CSC's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. The final rating is subject to the receipt of final
documentation conforming to information already received.

CSC's ratings are supported by well-located projects, growing
non-development income, close collaboration with local
governments, a long record in integrated trade centre development
and sufficient liquidity. The ratings are constrained by CSC's
rising leverage and weak industry outlook.

KEY RATING DRIVERS

Rising Non-Development Income: Income from CSC's non-development
business increased by 22% yoy in the first half of the financial
year ending March 2017 (FY17) to HKD736m, driven by growth across
the rental, property management, logistics and warehousing
segments as well as the outlets and e-commerce businesses. Fitch
believes CSC's diversification will enhance internal cash flow
and smooth sales volatility, and expects non-development
income/interest coverage to exceed 1.0x in the next year or two
(last 12 months (LTM) to 1H17: 0.8x).

Higher Leverage: CSC's leverage, measured by net debt/adjusted
inventory, rose to 48% at end-September 2016, from 38% at end-
March 2015, due to increasing construction activities for
saleable residential products and investment properties. The
company has 15.4 million square metres (sq m) of properties under
development and unsold completed properties, including investment
properties, as at end-September 2016, compared with 13.3 million
sq m a year earlier.

Fitch expects leverage to be around 50% in FY17 then remain
between 50%-60% for the next two to three years if CSC continues
with capex of HKD8.5bn-9bn a year in Fitch estimates, taking into
consideration the construction expenditure to build up saleable
residential resources and the company's strong emphasis on the
recurring business segment. Fitch believes the developer's rising
leverage is mitigated by its growing recurring income. However,
CSC's ratings will come under pressure if the non-development
segment fails to grow despite continued investment.

Residential Sales Support Performance: Contracted sales rose 32%
yoy to HKD6.7bn in the first nine months of FY17, buoyed by
strong sales in three Tier 2 cities - Nanchang, Hefei and
Nanning. Residential sales accounted for more than 70% of total
contracted value. Average selling prices decreased by 12% over
the same period in FY16, to HKD7,800 per sq m, due to product-mix
changes. Fitch expects contracted sales to reach HKD7.5bn-8.0bn
in FY17 as residential markets in the above-mentioned three
cities remain strong and the company had 4.5 million sq m of
saleable resources as at end-September 2016.

Weak Demand for Trade Centres: Demand in the trade and logistics
centre sector has been weak since late 2014 as small and medium-
sized enterprises withhold investment amid weaker economic
growth, while relocation demand has slowed, local governments
delay completing transportation networks and investor appetite
has declined. Fitch does not see any signs of recovery in demand
for trade centre space in the next 12-18 months.

Sustained EBITDA Margin: CSC's EBITDA margin remained
satisfactory at 33.6% in the last 12 months to September 2016,
given low weighted-average land costs of CNY301 (HKD350) per sq m
in 1HFY17, increasing government grants due to the market
downturn, which totalled HKD741m (FY16: HKD1bn), and larger
recurring EBITDA from the non-development segment. CSC also has
the flexibility of cutting selling, general and administrative
expenses to maintain a healthy margin. Fitch expects CSC's EBITDA
margin to remain above 30% in the next year or two, providing a
buffer to absorb average selling price volatility.

DERIVATION SUMMARY

CSC's projects are located in Tier 1 and 2 cities in China, which
are better located than those of the other two Fitch-rated trade
centre developers - Hydoo International Holding Limited (B-
/Stable) and Wuzhou International Holdings Limited (CCC), whose
projects are mainly in Tier 3 and 4 cities. This translates into
larger scale and better EBITDA margins for CSC compared with its
peers in the same industry. CSC's leverage is higher than that of
Hydoo and Wuzhou, given part of its cash is tied up in the
construction of investment properties. Fitch expects its
diversification into the non-development segment to generate
stable operational cash flow for the company.

KEY ASSUMPTIONS

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

- Contracted sales to remain weak, at HKD7.5bn-8.0bn each year
   in FY17-FY19.

- Non-development income to increase to HKD1.8bn in FY17 and
   HKD2bn in FY18.

- Capital expenditure at HKD8.5bn-9.0bn per year in FY17-FY19.

- Land replenishment ratio (land acquired/gross floor area
   presold) at 2x in FY17-FY19 (FY16: 2.2x).

RATING SENSITIVITIES

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

- EBITDA margin sustained below 20% (FY16: 32.5%; LTM1H17:
   33.6%);

- net debt/adjusted inventory sustained above 50% (FY16: 48.3%;
   1HFY17: 48%) if non-development income/interest is below 1.0x
   (FY16: 0.8x; LTM1HFY17: 0.8x); and

- net debt/adjusted inventory sustained above 60% if non-
   development income/interest is above 1.0x.

No positive rating action is expected in the next 12-18 months
given persistent weak demand for trade and logistic centres.

LIQUIDITY

CSC had cash and cash equivalents, including restricted cash, of
around HKD8.3bn and unutilised banking facilities of HKD5.4bn as
at end-September 2016, covering short-term debt of HKD7.3bn.
CSC's successful issuance in the onshore bond market has also
alleviated refinancing pressure and lowered its average borrowing
cost to 6.2% at end-September 2016, from 6.8% at FYE15.


CLSA LTD: To Close US Equities Business; 90 Jobs Affected
---------------------------------------------------------
The Financial Times reports that CLSA has pulled down the
shutters on its US equities business, becoming one of the
highest-profile victims of a big squeeze on research.

FT relates that the Hong Kong-based brokerage, wholly owned by
China's Citic Securities, on March 1 said it would cut more than
half of its staff in the US.  About 90 positions are to go from
US equity research, sales and trading, corporate access and
associated support functions, while the remainder - about 85 -
will continue to focus on offering Asian stocks to American
clients.

CLSA said it was still "fully committed" to its equity business
in Asia, where it consistently tops polls of investors, and noted
that it continues to offer the biggest dedicated Asia-markets
sales desk in North America, FT relays.

According to the report, Rick Gould, chief executive of CLSA's
Americas business, said that while the company had succeeded in
providing "differentiated insights" on US stocks, "the economics
of providing US equity research [had] become increasingly
challenged. Our focus now is to continue to provide our clients
access to liquidity and best execution".

FT says profits in the research business have been falling pretty
steadily since the dotcom bust, when allegations of biased
recommendations led to tighter use on the rules around using
analysts to drum up investment-banking mandates. Then, after the
financial crisis, newly cost-conscious banks started cutting
economists, strategists and stock pickers because they made
little direct contribution to earnings.

The number of analysts working at the world's 12 biggest
investment banks fell to 5,981 last year, according to numbers
prepared for the Financial Times by Coalition, a data provider on
the industry. That is down from 6,282 at the end of 2015, and
6,634 at the end of 2012, when Coalition began to collect the
numbers.

CLSA planted a flag in the US in 1986, when the young business -
newly started by a couple of former journalists - opened an
office to serve fund managers investing into Asia, the FT
recalls.  In 2009, in the wake of the crisis, it saw an
opportunity to bulk up in US equities, picking up big names
including Mike Mayo, perhaps the best known of all analysts
covering big banks on Wall Street.

But in recent years the business had been struggling through lack
of name recognition in a "highly competitive" market, said a
person familiar with the business, the FT relates. Staff learnt
their fate at a town-hall meeting at the brokerage's Sixth Avenue
headquarters on March 1, according to the FT.

According to the FT, Shenzhen-based Citic bought CLSA from
France's Credit Agricole for $1.25bn in 2012, in the first big
acquisition by a Chinese broker of a foreign competitor.

Citic's parent company was established in 1979 at the behest of
Deng Xiaoping and was a pioneer in China's experiments with
capitalism. Its businesses now span banking to real estate and
mining, and the group reports directly to China's cabinet, the FT
notes.

Headquartered in Hong Kong, CLSA Ltd. is a brokerage and
investment firm focused on institutional brokerage, investment
banking and asset management for corporate and institutional
clients.


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


ANG LIFE: CRISIL Downgrades Rating on INR7MM Cash Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
ANG Life Sciences India Private Limited to 'CRISIL D/CRISIL D'
from 'CRISIL B-/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee           2        CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

   Cash Credit              7        CRISIL D (Downgraded from
                                     'CRISIL A4')

   Letter of Credit         4        CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

   Proposed Long Term       1.4      CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B-/Stable')

   Term Loan                3.6      CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

The downgrade reflect instances of delay in servicing its debt
due to stretched liquidity because of delay in receipts from
customers.

Key Rating Drivers & Detailed Description
Weaknesses
* Weak financial risk profile: This is driven by high total
outside liabilities to tangible networth ratio, however,
supported by comfortable debt protection metrics. The financial
risk profile will remain weak over the medium term owing to large
working capital borrowing.

* Large working capital requirement: This is because of a longer
cycle for collection from the customers and high stocking. Though
part of the working requirement is met by negotiating with
suppliers for longer credit periods, the working capital
requirement will remain dependent on external debt over the
medium term.

Strength
* Extensive experience of promoters: The promoters have been in
the formulations industry for over a decade and developed deep
understanding of the dynamics of the industry and local market
over the years. Owing to the promoters' expertise, ANG has
established relationship with various corporates in the
pharmaceutical industry which in turn has helped scale up
operations. Benefits from the promoters' experience will continue
to support the business.

Incorporated in 2006, ANG manufactures dry powder injectables at
its plant in Baddi, Himachal Pradesh. Its operations are
currently being managed by Mr Rajesh Gupta.

Profit after tax and net sales stood at INR1.58 crore and
INR54.78 crore, respectively, for fiscal 2016, as against INR34
lakhs and INR36.82 crore, respectively, for the previous fiscal.


BALLARPUR INDUSTRIES: Ind-Ra Lowers Rating on INR2.47 CP to 'D'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Ballarpur
Industries Limited's (BILT) commercial paper (CP) as:

   -- INR2.47* bil. CP rating lowered to 'IND D'

* Outstanding amount is INR1.100 billion

                        KEY RATING DRIVERS

The downgrade reflects delays in debt servicing by the company.
BILT continues to face delays in the necessary deleveraging, as
efforts to monetize its assets have not fructified within planned
timelines.  The company has also been unable to refinance its
debt or elongate the maturity profile of its near-term debt
obligations fully.

Cash flows inadequacy has reduced BILT's ability to fund debt
obligations through internal accruals, creating an immediate need
for refinancing.  In 9MFY17, BILT reported consolidated revenue
of INR16.9 billion (down 44.8% yoy) and consolidated EBITDA
losses of INR744 million (INR5.6 billion) with net loss of
INR9,037 million (negative INR781 million).  BILT reported EBIT
margin of negative 12.1% in 9MFY17 in the key paper segment
(9MFY16: 16.1%).

According to the management, BILT raised working capital limits
of INR500 million in January 2017, due to which capacity
utilization has improved at its existing facilities.  However, it
will require significant deleveraging through asset sales to
improve the credit profile.  At FYE16, BILT had a consolidated
balance sheet debt of around INR72.3 billion (excluding perpetual
bonds).  According to the management, it is in the advanced
stages of raising more working capital lines for operations as
well as equity and debt infusion through asset sales.

In FY16, BILT reported consolidated revenue of INR42.7 billion
(FY15: INR32.4 billion; FY14: INR52.8 billion) and EBITDA margin
of 16.6% (21%; 17.8%).  The company has classified its subsidiary
Sabah Forest Industries as discontinued operations for FY15 and
FY16, which resulted in lower revenue and higher EBITDA margins
for these years when compared with FY14 financials.

Ind-Ra continues to take a consolidated view of BILT's business
and financial profiles for the ratings.  BILT Graphic Paper
Products Limited ('IND D') has strong operational and strategic
linkages with its ultimate parent, BILT, due to their similar
business profiles, common treasury and management team.

                        RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.

Negative: Delay in servicing of NCD obligations would lead to a
negative rating action on the instruments.

COMPANY PROFILE

BILT, on a consolidated basis, has one production facility in
Malaysia and six production facilities across India, of which
Ballarpur, Bhigwan, Sewa and Ashti units are under BILT Graphic
Paper Products, while Kamplapuram and Shree Gopal units are under
BILT.  Overall, the company has a paper capacity of around 1
million MT and a pulp capacity of around 0.8 million MT
(including rayon grade pulp capacity).


DNH PROJECTS: ICRA Reaffirms 'C' Rating on INR12cr Loan
-------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]C assigned to
the INR12.00 crore fund based bank limit of DNH Projects Limited.
ICRA has also re-affirmed the short-term rating of [ICRA]A4 for
the INR6.00 crore non-fund based limit of the company.  ICRA has
also re-affirmed the [ICRA]C and [ICRA]A4 ratings for the
INR10.00 crore unallocated limits of the company.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund Based Limit       12.00       [ICRA]C; re-affirmed

  Non-Fund Based Limit    6.00       [ICRA]A4; re-affirmed

  Unallocated Limits     10.00       [ICRA]C/[ICRA]A4;
                                     re-affirmed

Rationale
The ratings re-affirmation factors in DNH's financial profile,
which is characterised by the modest scale of operations, highly
leveraged capital structure and weak debt coverage indicators.
The company has witnessed delays in executing its projects for
certain Government entities since the past few years and has also
been penalised for the same. Moreover, DNH has not been awarded
any new contracts in the recent past by third parties and its
current orders largely consist of projects to be executed for
group companies. The ratings are further constrained by the
company's stretched liquidity position arising from the high
inventory holdings and delayed collections from customers, which
has necessitated high reliance on external borrowings.
Furthermore, the ratings continue to factor in the high
competitive intensity in the construction space resulting in
pressure on profitability margins. ICRA notes the geographical
concentration risks due to the concentration of most ongoing and
future projects in Silvassa, and the vulnerability of profits to
raw material price variations in the absence of price variation
clauses in most orders.

The ratings, however, continue to favourably factor in the
established experience of the directors in the construction
industry. The company's clientele mainly consists of Government
and semi-Government bodies leading to limited counter-party
risks.

Key rating drivers
Credit Strengths
   * Experience of over two decades in the construction and
     real estate sector

   * Clientele of Government and semi-Government bodies leads
     to limited counter-party credit risks.

Credit Weakness
   * Financial profile characterised by modest scale of
     operations, highly leveraged capital structure and weak debt
     coverage indicators.

   * Execution delays have resulted in penalties; no new orders
     received in recent past and current orders mainly from group
     companies.

   * Stretched liquidity position on account of high inventory
     holdings and delayed collection from customers

   * High geographical concentration risk as the company
     undertakes projects largely in Silvassa (Dadra and Nagar
     Haveli)

   * Profitability margins remain vulnerable to steel and cement
     price fluctuation risks, because of absence of price
     variation clause in most orders.

   * Highly competitive business environment, characterised by
     the presence of a large number of players and a tender-based
     contract award system, both of which keep profitability
     under check.

Description of key rating drivers highlighted:

DNH has been facing delays in the execution of projects for
certain Government entities since FY2014. The company has not
received any new orders during FY2016 and H1 FY2017 from third
parties and ~74% of its outstanding orders comprise projects to
be executed for group companies. Thus, the delays in project
execution, coupled with the lack of new orders have suppressed
DNH's operating income, resulting in a modest scale of
operations. The projects of the company are largely concentrated
in Silvassa, leading to geographic concentration risks. The
company has been penalised for the delayed execution, and its
inventory levels also remain high due to the work continuing to
remain in progress. The high inventory levels, coupled with the
slow collection from customers have stretched its liquidity
position, necessitating high reliance on external borrowings for
funding the working capital requirements. This has resulted in a
highly leveraged capital structure as depicted by a gearing of
2.57 times as on March 31, 2016. Furthermore, on account of the
low profitability, the company's debt coverage indicators remain
weak. Owing to the long duration of the projects and delays in
execution, coupled with the fixed price nature of contracts,
DNH's profitability remains vulnerable to fluctuations in the
prices of the key inputs as depicted by a decline in the
profitability in FY2015 and FY2016. Moreover, since the projects
are largely being executed for Government entities where
contracts are awarded to the lowest bidder, the company's pricing
flexibility is limited further.
Nevertheless, the promoters of the company have an experience of
over two decades in the industry, which coupled with limited
counter-party credit risk arising from the company's reputed
clientele, lend some comfort.

DNH Projects Ltd. (DNH) was initially incorporated as a private
limited company - Nagar Haveli Real Estate Private Limited -
engaged in real estate development in 1996. It was subsequently
renamed and converted to a closely held public limited company in
2009. The operations of the company are collectively managed by
Mr. Vijay and Mr. Ajay Desai who have an experience of over two
decades in the construction industry. The company is registered
as a 'AA' Class contractor (valid till December 31, 2018) with
the Roads & Buildings division of the State Government of Gujarat
and undertakes the construction of industrial units, factories,
corporate and institutional buildings.

DNH has two group companies- Morai Infrastructure Pvt. Ltd. and
Drexel Pharma Pvt. Ltd. Mr. Vijay and Mr. Ajay Desai are the
common directors for all the three firms. Morai Infrastructure is
currently developing an industrial park in Gujarat, while Drexel
Pharma is developing industrial galas for sale. Both these
projects have been awarded to DNH by the group companies.
DNH reported a net profit after tax and depreciation of INR0.01
crore on an operating income of INR17.79 crore for the period
ended March 31, 2016.


G.D. METSTEEL: ICRA Reaffirms 'B' Rating on INR18cr LT Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B for the
INR15.00 crore cash credit facility, INR3.00 crore term loan and
INR5.00 crore unallocated limits of G.D. Metsteel Private
Limited.  The outlook on the long term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long term: Fund
  based limits            18.0       [ICRA]B (stable)/reaffirmed

  Unallocated Limits       5.0       [ICRA]B (stable)/ reaffirmed

Rationale
The rating reaffirmation takes into account the continued healthy
capacity utilisations in current fiscal as in FY'2016 along with
the financial support extended by the promoters through infusion
of interest free unsecured loans. Further, ICRA continues to take
comfort from the long standing experience of the promoters in the
steel industry.

The ratings however remained constrained by the stretched
financial position of the company as indicated by leveraged
capital structure, weak accruals and high working capital
intensity. Further, given the suppressed demand and subdued
finished products realisations, operating income also has
demonstrated a y-o-y limited growth in the current fiscal. The
operating margins of the company also remain vulnerable to the
movement in raw material prices (billets).

Going forward, managing raw material prices which have a material
impact in the profitability of the company as well as debtor and
inventory management will remain the key rating sensitivities.
Further, maintaining current healthy capacity utilisations will
remain crucial to support the volume growth of the company.
Key rating drivers

Credit Strengths
   * Long standing experience of the promoters in the
     steel industry

   * Healthy capacity utilisations in the 9M'2017 and FY'2016 as
     compared to past fiscals.

   * Promoter support in the form of ~ INR2.58 crore interest
     free unsecured loans.

Credit Weakness
   * Stretched financial profile marked by leveraged capital
     structure, weak accruals and high working capital intensity.

   * Limited growth in operating income in the current fiscal
     primarily due to weak demand coupled with subdued finished
     product realisations.

   * Profitability levels vulnerable to movement in raw material
     prices, thin operating margins due to limited value
     addition.

   * Competition from organised and unorganised sector,
     especially given the commoditised nature of the products
     manufactured.

Description of key rating drivers highlighted:

The company in the past fiscals has focussed on volume based
growth in a subdued finished products realization scenario. The
capacity utilization has increased to > 75 % in FY'2016 and
9MFY'2017 as compared to 66% in FY'2015 and 46% in FY'2014. The
volume sold increased by ~25% y-o-y in FY'2016 however given the
weak demand scenario, the volume growth has remained subdued in
the current fiscal (on a pro rata basis). Corresponding to the
subdued demand, the finished product realizations also have
remained low in the current fiscal as compared to FY'2016.Going
forward, the company intends to continue its emphasis on volume
backed growth with addition of new clientele.

The company procures majority of its raw requirement- steel
billets from group company, Sohn Steel Private Limited. Steel
prices being volatile given the cyclical nature of the industry,
the company margins remain vulnerable to fluctuation in raw
material prices OI remained at INR109.58 crore in FY'2016 as
compared to INR103.70 crore in FY'2015.The y-o-y growth in
FY'2016 remained guided by volume growth over realization growth.
Whereas the volume growth y-o-y in FY'2016 remained at 25%, the
average realizations dipped ~17% in FY'2016 to ~Rs.35000/ton.
.Continued weak demand scenario has suppressed the volume growth
and realizations in the current fiscal. The realizations are
likely to remain range bound in the near term on weak demand from
the end user industries. The company in 9M'FY2017 has recorded a
revenue of INR68.26 crore and intends to close the fiscal at a
top line of ~ INR100.00 crore.

Operating Profit Margins remained almost in line with the past at
3.50 % given the low additive nature of operations and
commoditized nature of the products manufactured. High interest
costs chiefly working capital interest resulted in thin net
margins in FY'2016 as in the past. The net margins remained at
around 0.6% in FY'2015 and FY'2016.

The debt profile remained dominated by working capital loans and
term loans in FY'2016 and H1FY'2017 in line with FY'2015.
The inter corporate deposits from the promoter family members are
interest free and do not have a specified timeline for
withdrawal. Capital structure continued to be leveraged in
FY'2016 as in past mainly due to low net worth base and almost
full utilization of working limits. Gearing remained at 8.64
times in FY'2016 as compared to the projected 7.55 times in
FY'2016.

Coverage indicators continued to remain weak on back of low cash
accruals and higher debt levels. OPBIDTA/Interest remained at
1.54 times in FY'2016 as compared to 1.40 times in FY'2015.Total
Debt/OPBIDTA remained at 6.06 times in FY'2016 as compared to
5.88 times in FY'2015.

Working Capital intensity continued to remain moderately high in
FY'2016 as in the past. Inventory days remained at 57 days in
FY'2016 almost in line with 59 days FY'2015. Given the continued
challenging operating environment in the end user industries, the
receivables also remained slow with the same at 42 days in
FY'2016 as compared to 37 days in FY'2015.

Incorporated in 1984, G.D. Metsteel Private Limited (GDM) is
engaged in the manufacturing of rolled steel products like
angles, channels, flat and beams which find end usage in auto,
electrical manufacturing and construction companies. The company
has an installed capacity of 42,000 TPA for the manufacturing of
rolled products. The promoters of the company have over two
decades of experience in the steel industry.


GENESYS BIOLOGICS: CRISIL Assigns B+ Rating to INR60MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' on the long term bank
loan facility of Genesys Biologics Private Limited.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Proposed Long Term
   Bank Loan Facility      60         CRISIL B+/Stable

The rating reflects the susceptibility of GBPL to risks
associated with development and commercialization of generic
insulin Biosimilars, and regulatory uncertainties related to the
biopharma in the domestic market. These ratings weaknesses are
partially offset by the benefits derived from the extensive
experience of its promoters, need based fund support from
promoters and the strong growth prospects in Biosimilars industry
for players with proven track record of research and development.

Key Rating Drivers & Detailed Description
Weaknesses
* Risks associated with development and commercialization of its
generic insulin bio similar: The Company is focused on Research,
Deployment and Commercial Manufacture Insulin Biosimilars.
Approvals for biosimilars have a long gestation period relative
to chemical generics. Any larger than expected delay in receipt
of regulatory approvals would adversely impact the credit risk
profile.

*Regulatory uncertainties related to the biopharmaceutical in the
domestic and global market: GBPL is exposed to the regulatory
changes in the Indian as well as in the global market by
regulatory authorities.

Strengths
* Extensive industry experience of the promoters: Relevant
biotech education, vast industry experiences in US, Singapore and
India-cumulatively GBPL management possesses cumulative 100 years
of biotech industry experience.

* Need based fund support from promoters: The promoters have
already brought-in equity of INR22.61 Cr (As on Jan 16, 2017) and
the balance portion of equity will be brought-in by March 2017
thus ensuring the timely completion of capex.

* Biosimilars provide huge Opportunity to players with proven
track record research and development: The growing biosimilars
market offers huge potential for companies involved in
manufacturing, research and development
Outlook: Stable

CRISIL believes the GBPL will remain exposed to timely completion
of development of molecules under R&D and receipt of approvals
from relevant authorities. It is also exposed to project-related
risks, including cost and time overruns, during implementation.
The rating may be upgraded in case of timely completion of
development of molecules and successful stabilisation of
operations leading to improvement in business risk profile.
Conversely, the rating outlook may be downgraded if there are
delays in project implementation leading to a cost overrun and
necessitating additional debt funding, or if the offtake from the
new capacity is lower than expected thereby adversely affecting
liquidity.

GeneSys Biologics Private Limited was incorporated in November
2014 at Hyderabad. The company is promoted by Rajender Rao,
Venkat Reddy, Krishna Rao and Tulasi Ramu. The Company is focused
on R&D and Commercial Manufacture of Insulin Biosimilars.

GBPL is currently setting-up a 1 Kilo Litre (KL) manufacturing
facility in Biotech Park, Lalgadimalakpet Panchayat,
R.R.District, Telangana. The facility is expected to commence
operations from July 2017.


GMR INFRASTRUCTURE: Unit Allots Shares to Lenders Under SDR
-----------------------------------------------------------
GMR Infrastructure on Feb. 24 said its subsidiary GMR
Chhattisgarh Energy Ltd has completed strategic debt
restructuring plan (SDR) by allotting shares to all the lenders
in question.

"GMR Chhattisgarh Energy Ltd (GCEL), a subsidiary of GMR
Infrastructure Ltd (GIL), has announced that the consortium of
lenders of GCEL has adopted strategic debt restructuring plan
(SDR), as provided under the scheme permitted by the RBI," GMR
Infrastructure said in a BSE filing.

Elaborating, GMR said, "Accordingly, GCEL has allotted shares to
all the lenders. As per the SDR scheme, out of the total
outstanding debt (including accrued interest) of Rs8,800 crore,
debt to the extent of Rs2,992 crore have been converted into
equity by which the consortium lenders would have 52.4%
shareholding and the balance 47.6% would be held by GMR."

Post conversion, the balance project debt stands at INR5,800
crore with INR2,992 crore equity held by lenders and INR2,721
crore equity held by the GMR Group, resulting in the debt-to-
equity ratio of 1.0x.

"The lower debt levels would result in improving the long-term
viability of the project," the company added. The stock of GMR
Infrastructure was trading 4.91% higher at Rs15.61 on BSE.

GMR Chhattisgarh (100% held by GMR Energy Limited) is developing
a 1370 MW (2 X 685 MW) supercritical unit at Raipur District,
Chhattisgarh, for which the land has been acquired and most major
approvals are in place. The GMR Group is an infrastructure
developer active in the power, roads and airports segments.


HALDIA NIRMAN: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Haldia Nirman
Projects Private Limited (HNPPL) a Long-Term Issuer Rating of
'IND BB-'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR56.5 mil. Fund-based limit assigned with IND BB-/Stable
      rating; and

   -- INR20 mil. Non-fund-based Limit assigned with IND A4+
      rating

                         KEY RATING DRIVERS

The ratings reflect HNPPL's small scale of operations along with
moderate credit metrics as reflected in its revenue of INR127
million in FY16 (FY15: INR58 million), gross interest coverage
(EBITDA/interest) of 1.8x (1.3x) and net leverage (net
debt/EBITDA) of 6.7x (9.2x).  The operating EBITDA margin has
been fluctuating for the past three years (FY16: 10.7%, FY15:
17.2%, FY14: 10.3%) mainly on account of fluctuation in the raw
materials costs.

The ratings are constrained by the weak liquidity profile of the
company as evidenced by the 97% average utilization of its
working capital limits during the 12 months ended January 2017.

The ratings, however, derive support from more than a decade of
experience of the company's directors in the engineering
industry.

                       RATING SENSITIVITIES

Positive: An improvement in the scale of operations along with
improvement in the credit metrics could be positive for the
ratings

Negative:  Deterioration of the credit metrics could be negative
for the ratings.

COMPANY PROFILE

HNPPL, incorporated in 2004, is a small-sized West Bengal-based
company engaged in providing different types of construction
services which include construction of buildings, pipelines,
electrical works, etc, for both private and government entities.
The company is involved in different engineering activities such
as fabrication and erection of equipment, electrical and civil
works.  It is managed by Mr Saroj Kumar Bera.


HALLMARK AQUAEQUIPMENT: CRISIL Reaffirms B+ INR6.6MM Loan Rating
----------------------------------------------------------------
CRISIL has reaffirmed 'CRISIL B+/Stable/CRISIL A4' ratings on the
bank facilities of Hallmark Aquaequipment Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          1        CRISIL A4 (Reaffirmed)

   Cash Credit             6.6      CRISIL B+/Stable (Reaffirmed)

   Letter of Credit        2        CRISIL A4 (Reaffirmed)

   Proposed Short Term
   Bank Loan Facility      0.11     CRISIL A4 (Reaffirmed)

   Term Loan               0.51     CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the modest scale of operations
and low operating profitability and moderate return on capital
employed (RoCE). The weakness gets offset by the extensive
experience of promoters in the pipe and pipe fittings business
and diversified clientele.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: HAPL's scale of operations
continues to remain modest as reflected in revenue of INR42.58
crore in fiscal 2016. The Indian pipe industry is fragmented with
the presence of a number of small and medium sized companies. The
company remains exposed to stiff competition from large players
such as Jain Irrigation Systems Ltd, Finolex Industries Ltd, and
Supreme Industries Ltd; as well as from players manufacturing
steel pipes. Modest scale of operations along with intense
competition restricts the pricing flexibility of HAPL resulting
in low operating margin at 4.8-7.3% over the three years through
fiscal 2016. The modest scale of operations amid intense
competition should constrain HAPL's pricing and bargaining power
over the medium term.

* Low operating profitability and moderate return on capital
employed (RoCE): On account of intense competition and low
bargaining power with customers, the operating margin has
remained low. Further operating profitability declined to 4.8% in
fiscal 2016 from 6.1% in fiscal 2015, on account of considerable
increase in wages and selling expense due to higher incentive to
channel partners for improving market share. Operating
profitability should remain low over the medium term. Despite low
profitability, RoCE has been moderate at 12.2-14.7% over the
three years through fiscal 2016. RoCE is expected to remain
moderate over the medium term.

Strengths
* Extensive experience of promoters: Backed by the three-decade
long experience of the promoters, HAPL has been able to set-up a
distributorship network for HDPE (high density poly ethylene)
pipes in India, from which HAPL generates 60% of its total
revenue. The promoters have also diversified into project-based
sales of pipes to large corporates wherein orders are obtained
from them regularly; and sales of drip irrigation systems and
rainwater harvesting projects. Products are sold under the
'Hallmark' brand, which is a renowned name in HDPE pipe and
fittings. Benefits from the experience of promoters should
continue to support business risk profile.

* Diversified clientele: The products cater to varied industries
comprising steel, mining, cement, tea, and coffee and a large and
diversified clientele, with large players such as Tata Iron and
Steel Co Ltd, Lafarge India Pvt Ltd and Steel Authority of India
Ltd. It also has a large retail network spread across India.
HAPL's business risk profile is expected to remain supported by
varied application of its products and diversified clientele,
over the medium term.
Outlook: Stable

CRISIL believes HAPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if increase in scale of operations and accrual along
with efficient working capital management improves financial risk
profile. The outlook may be revised to 'Negative' if increasing
working capital requirement, low operating income and accrual or
any large, debt-funded capital expenditure plans weakens
liquidity.

Incorporated in 1993, HAPL manufactures HDPE pipes and pipe
fittings. The products are sold to large corporates directly and
through its retail network. Mr Pranab Ghosh and Mrs Nandinee
Ghosh are the directors.

Profit after tax was INR23 lakh on revenue of INR42.58 crore in
fiscal 2016, against INR62 lakh and INR37.95 crore in fiscal
2015.


HANUMAN IMPEX: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Hanuman Impex
(HI) a Long-Term Issuer Rating of 'IND BB'.  The Outlook is
Stable.  Instrument-wise rating action is:

   -- INR99 mil. Fund-based working capital limit assigned with
      IND BB/Stable rating

                         KEY RATING DRIVERS

The ratings reflect HI's moderate scale of operations, low EBITDA
margins and moderate credit metrics. Revenue was INR853 million
in FY16, (FY15: INR938 million), EBITDA margins were 2.7% (1.8%),
net leverage (total Ind-Ra adjusted net debt/operating EBITDAR)
was 0.4x (4.5x) and interest cover (operating EBITDA/gross
interest expense) was 2.2x (1.4x).  The improvement in the net
leverage resulted from low utilization of fund-based limits.

The ratings are also constrained by the firm's moderate liquidity
position as reflected by 82.6% average utilization of fund-based
limits during the 12 months ended January 2017.

The ratings, however, are supported by HI's strong relationship
with customers and suppliers, and the promoter's more than two
decades of experience in the animal feed industry.

                       RATING SENSITIVITIES

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

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

COMPANY PROFILE

HI is a proprietorship firm incorporated in 2004.  The firm sells
animal feed products such as soya bean de-oiled cakes and maize
to farmers and other users in Bihar, Uttar Pradesh and Jharkhand,
and exports to Nepal.  It mainly purchases soya bean from Madhya
Pradesh and Rajasthan, and maize from Bihar and Maharashtra.
Mr. Rajeev Gupta is the proprietor of the firm.


HEMRAJ DEVKARANDAS: CRISIL Assigns B+ Rating to INR10MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Hemraj Devkarandas Metals And Minerals
Limited.

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

   Cash Credit             10         CRISIL B+/Stable

   Letter of Credit         8         CRISIL A4

The rating reflects Hemraj's modest financial risk profile marked
by high gearing and modest debt protection metrics. This rating
weakness is partially offset by promoter's extensive expertise in
the steel trading industry.

Key Rating Drivers & Detailed Description
Weakness
* Modest financial risk profile marked by low net worth and high
gearing: The financial risk profile of the company is modest as
reflected in its low net worth of INR 4 crores in fiscal 2016 and
high TOL/ TNW of 3.5 times. However, due to retention of future
profits and no major debt funded capex plans the capital
structure of the firm is expected to improve.

Strengths
* Extensive experience of the promoters: The promoters have
extensive experience of more than one decade in the steel
industry which is expected to benefit the business risk profile
of the firm over the medium term.

* Established relation with the customers and suppliers: Over the
years the firm has established a healthy relation with its
customers and suppliers thereby enabling it to report healthy
revenues in a short span of time. However, sustainability of
profitability margins will remain a key rating sensitivity
factor.
Outlook: Stable

CRISIL believes that the company will benefit over the medium
term from the extensive experience of the promoter and
established relations with the customers and suppliers. The
outlook may be revised to 'Positive' if the company reports more
than expected profitability margins and cash accruals leading to
improvement in the financial risk profile of the company. The
outlook may be revised to 'Negative' if the company reports lower
than expected cash accruals deteriorating its working capital
management or undertakes significant debt funded capex plans
leading to weakening of its financial risk profile.

Established in 2012 as a closely held public limited company,
Hemraj is into trading of iron and steel products such as HR and
CR coils, sheets, plates, and various customised steel products.

Hemraj reported a profit after tax (PAT) of INR64 lacs on net
sales of INR 44 Crores for fiscal 2016, vis-a -vis INR 25 lacs
and INR 68.9 crores, respectively in fiscal 2015.


HILLWOOD FURNITURE: CRISIL Lowers Rating on INR3MM Loan to 'B'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Hillwood Furniture Private Limited (HFPL; part of the Hillwood
group) to 'CRISIL B/Stable' from 'CRISIL B+/Stable', and
reaffirmed its 'CRISIL A4' rating on the short-term bank
facility.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          0.5       CRISIL A4 (Reaffirmed)

   Cash Credit             3.0       CRISIL B/Stable (Downgraded
                                     from 'CRISIL B+/Stable')

   Letter of Credit       35.0       CRISIL A4 (Reaffirmed)

The downgrade reflects the 17% fall in the group's revenue in
fiscal 2016 over the previous fiscal, to INR87.39 crore. The
revenue is likely to decline 40% to INR52 crore in fiscal 2017.
The downgrade also factors in stretched liquidity, reflected in
fully utilised cash credit facility because of large working
capital requirement and negative cash accrual. The debt servicing
was supported by unsecured loans of INR5.04 crore from its
promoter in fiscal 2016.

The ratings reflect the group's below-average capital structure
because of high gearing on account of fully utilised working
capital limit, modest scale of operations, and exposure to
intense competition in the timber industry. These weaknesses are
partially offset by its promoter's extensive industry experience.
Analytical Approach

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of HFPL and Hillwood Imports and Exports
Pvt Ltd (HIEPL) as both the companies, together referred to as
the Hillwood group, are in similar businesses, share a common
management team, and have fungible cash flow.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: The Hillwood group's
operating margin fluctuated from 0.9 to 9.5% in the four fiscals
through 2016. Gearing was high, at 3.15 times as on March 31,
2016. Debt protection metrics were weak, with interest coverage
and net cash accrual to total debt ratios at 1.29 times and 0.05
time, respectively, in fiscal 2016. The financial risk profile
will improve, but will remain weak, over the medium term.

* Modest scale of operations and exposure to intense competition
in the timber industry: The Hillwood group's small scale in the
fragmented and competitive timber industry constrains its
profitability.

Strengths
* Promoter's extensive experience and established position in
timber trading: The promoter's experience of over 25 years in the
plywood and timber industry, and established relationships with
customers, have resulted in repeat orders from clients
Outlook: Stable

CRISIL believes the Hillwood group will continue to benefit from
its promoter's industry experience. The outlook may be revised to
'Positive' if its financial risk profile improves significantly,
supported by increase in revenue and operating margin. The
outlook may be revised to 'Negative' if the financial risk
profile, particularly liquidity, weakens because of large, debt-
funded capital expenditure, or decline in operating margin, or
increase in working capital requirement.

HFPL and HIEPL, based in Kerala, were incorporated in fiscal 2002
and process timber logs. HFPL also manufactures building
materials such as windows, doors, and kitchen frames. HFPL
primarily deals in teakwood, while HIEPL deals mostly in
hardwood.

Hillwood group had a book losses of INR0.75 crore on sales of
INR87.4 crore in fiscal 2016, against profit of INR1.08 crore and
INR105.29 crore, respectively, in fiscal 2015.


HILLWOOD IMPORTS: CRISIL Lowers Rating on INR1MM Cash Loan to B
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Hillwood Imports and Exports Private Limited (HIEPL; part of
the Hillwood group) to 'CRISIL B/Stable' from 'CRISIL B+/Stable',
and reaffirmed its 'CRISIL A4' rating on the short-term bank
facility.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             1        CRISIL B/Stable (Downgraded
                                    from 'CRISIL B+/Stable')

   Letter of Credit       20        CRISIL A4 (Downgraded from
                                    'CRISIL B+/Stable')

The downgrade reflects the 17% fall in the group's revenue in
fiscal 2016 over the previous fiscal, to INR87.39 crore. The
revenue is likely to decline 40% to INR52 crore in fiscal 2017.
The downgrade also factors in stretched liquidity, reflected in
fully utilised cash credit facility because of large working
capital requirement and negative cash accrual. The debt servicing
was supported by unsecured loans of INR5.04 crore from its
promoter in fiscal 2016.

The ratings reflect the group's below-average capital structure
because of high gearing on account of fully utilised working
capital limit, modest scale of operations, and exposure to
intense competition in the timber industry. These weaknesses are
partially offset by its promoter's extensive industry experience.
Analytical Approach

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of HIEPL and Hillwood Furniture Pvt Ltd
(HFPL) as both the companies, together referred to as the
Hillwood group, are in similar businesses, share a common
management team, and have fungible cash flow.
Key Rating Drivers & Detailed Description
Weaknesses
* Below-average financial risk profile: The Hillwood group's
operating margin fluctuated from 0.9 to 9.5% in the four fiscals
through 2016. Gearing was high, at 3.15 times as on March 31,
2016. Debt protection metrics were weak, with interest coverage
and net cash accrual to total debt ratios at 1.29 times and 0.05
time, respectively, in fiscal 2016. The financial risk profile
will improve, but will remain weak, over the medium term.

* Modest scale of operations and exposure to intense competition
in the timber industry: The Hillwood group's small scale in the
fragmented and competitive timber industry constrains its
profitability.

Strengths
* Promoter's extensive experience and established position in
timber trading: The promoter's experience of over 25 years in the
plywood and timber industry, and established relationships with
customers, have resulted in repeat orders from clients
Outlook: Stable

CRISIL believes the Hillwood group will continue to benefit from
its promoter's industry experience. The outlook may be revised to
'Positive' if its financial risk profile improves significantly,
supported by increase in revenue and operating margin. The
outlook may be revised to 'Negative' if the financial risk
profile, particularly liquidity, weakens because of large, debt-
funded capital expenditure, or decline in operating margin, or
increase in working capital requirement.

HFPL and HIEPL, based in Kerala, were incorporated in fiscal 2002
and process timber logs. HFPL also manufactures building
materials such as windows, doors, and kitchen frames. HFPL
primarily deals in teakwood, while HIEPL deals mostly in
hardwood.

Hillwood group had a book losses of INR0.75 crore on sales of
INR87.4 crore in fiscal 2016, against profit of INR1.08 crore and
INR105.29 crore, respectively, in fiscal 2015.


HIMALAYAN ROAD: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Himalayan Road
Construction Private Limited (HRCPL) a Long-Term Issuer Rating of
'IND BB'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR60 mil. Fund-based limit assigned with
      IND BB/Stable/IND A4+ rating

   -- INR170 mil. Non- fund-based limit assigned with IND A4+
      rating

                         KEY RATING DRIVERS

The ratings reflect HRCPL's small scale of operations and
moderate profitability.  Its revenue was INR308 million in FY16
(FY15: INR212 million) and operating margin was 8.6% (10%); the
operating margin declined due increase in the raw material
expenses

The ratings are constrained by the high geographical
concentration risk since the company executes contracts in West
Bengal.

HRCPL has, however, strong liquidity position as reflected in its
26.46% average utilization of its working capital limits during
the 12 months ended January 2017.

The ratings benefit from HRCPL's strong credit metrics with net
leverage (total adjusted net debt/ operating EBITDAR) of 0.6x in
FY16 (FY15: 0.1x) and interest coverage (operating EBITDA/ gross
interest expense) of 6.6X (3.2x).

                        RATING SENSITIVITIES

Positive: Increase in revenue along with maintenance of the
credit metrics could be positive for the ratings.

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

COMPANY PROFILE

HRCPL is based in Siliguri, West Bengal.  It is engaged in the
construction, improvement, and widening of roads.  It was formed
as a partnership firm in 1992 which was converted into a private
limited company in 2009.  HRCPL executes only government
contracts in West Bengal.

HRCPL entered into a joint venture in 2013 with Sunil Kumar
Agarwal for the electrification work of villages under Darjeeling
Pulbazar Rabgli.


ICOMM TELE: ICRA Reaffirms 'D' Rating on INR793.96cr Loan
---------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the
INR452.50 crore (revised from INR277.00 crore) term loan and
INR347.17 crore (revised from INR190.60 crore) fund based limits
of Icomm Tele Limited at [ICRA]D. ICRA has also reaffirmed the
short term rating assigned to the INR963.53 crore(revised from
1305.65 crore) non-fund based facilities of ITL at [ICRA]D. ICRA
has also reaffirmed the rating of [ICRA]D assigned to INR627.44
crore unallocated limits of ITL.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Term Loan              452.50      [ICRA]D reaffirmed
  Cash Credit            347.17      [ICRA]D reaffirmed
  Bank Guarantee         169.57      [ICRA]D reaffirmed
  Letter of Credit       793.96      [ICRA]D reaffirmed
  Unallocated Limits     627.44      [ICRA]D reaffirmed

Rationale
The reaffirmation of ratings factors in continued delays in debt
servicing by ITL towards working capital and term debt
obligations. Stretched liquidity position owing to delay in
realization of receivables in the telecom and rural
electrification distribution projects and inability to secure
additional funding for the same coupled with delays in receipt of
retention money led to irregularities in debt servicing by the
company in the past. ICRA notes that strategic debt restructuring
is under-way for the company and that it is in discussion with
the lenders for approval for bifurcation into two new entities
for the transmission towers and defence divisions. The ratings
continue to factor in the track record of ITL as an EPC
(Engineering, Procurement & Construction) contractor in the
telecommunications and power transmission & distribution sectors;
its reputed client base and diversified operations as well as its
status as a PGCIL approved vendor.

Key rating drivers
Credit Strengths
   * Long standing presence as an EPC contractor in the
     telecommunications and power transmission & distribution
     sectors

   * Diversified operational profile with a reputed client base

Credit Weakness
   * On-going delays in debt servicing towards existing working
     capital and term debt obligations

Description of key rating drivers highlighted:

ITL is an EPC company catering to telecommunications and power
transmission & distribution segments. In the past, the company
was faced with liquidity pressures owing to built up of
receivables and negative free cash flows as a result of high
finance costs thus leading to continued delays with respect to
servicing of debt repayment obligations. Currently, the company
is undergoing strategic debt restructuring (SDR) with a reference
date of January 28, 2016. Going forward, the company is expected
to be carved out into two successor entities - for power
transmission towers and defence units respectively.

The company's ability to repay its debt obligations in a timely
manner, by improving its overall operational and financial risk
profiles through securing a healthy order book and timely
realization of receivables remains a key rating sensitivity going
forward. Further, progress on the carve-out of the company into
two successor entities will also remain a key rating monitorable.
Analytical approach: Rating action is based on standalone
fundamentals.

ICOMM Tele Limited is primarily an EPC company providing
infrastructure solutions in power transmission & distribution,
telecom, defense, solar and water and waste water sectors. The
company has one of the largest manufacturing plants for power
transmission towers with a production capacity of 250,000 metric
tons per annum. The plants are located at Hyderabad, Andhra
Pradesh and Yanam, Pondicherry. In addition to towers, the
company also manufactures products for transmission conductors &
distribution products, telecommunications equipments, solar
modules, defense communications equipment and defense shelters.


JANARDHAN PLYBOARD: CRISIL Cuts Rating on INR4.5MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Janardhan Plyboard Industries Limited to 'CRISIL D' from
'CRISIL B-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             4.5       CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

   Proposed Fund-
   Based Bank Limits       1.35      CRISIL D (Downgraded from
                                      'CRISIL B-/Stable')

   Term Loan               0.80      CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

The downgrade reflects the company's irregularity in meeting
obligation on term loan and interest on cash credit facility, due
to stretched liquidity.

JPIL has a modest scale of operations in a fragmented industry,
and constrained financial flexibility due to large, though
smaller-than-before, working capital requirement, and weak debt
protection metrics. However, it benefits from its promoters'
experience in the wood panel industry.

Key Rating Drivers & Detailed Description
Weakness
* Working capital-intensive operations, resulting in stretched
liquidity
Liquidity was constrained by large working capital requirement on
account of substantial receivables and inventory, and reduced
demand which lowered cash generation. Consequently, the company
delayed servicing its term loan and in meeting interest
obligation on its cash credit facility.

* Vulnerability to changes in regulations on timber export:
Prices of main raw material, soft wood, are influenced by
policies of both the Indian government and those of exporting
countries. In 1996, the Supreme Court of India banned cutting and
felling of tress in North-East India. With increasing
environmental consciousness, non-governmental organisations are
raising concerns over the fast-depleting green cover. Supply of
wood is also affected by constrains in a particular region. For
instance, reduced supply from Uttar Pradesh due to depleting wood
cover and long gestation required to grow wood impacted sales in
2013-14.

Strength
Promoters' extensive experience in the wood panel industry:
Before acquiring JPIL, the promoters traded in wood panels for
six years. The company has been operating in the wood panel
industry for more than two decades, and has established
relationships with suppliers and customers.

JPIL, incorporated in 1987 by Mr Anil Goel, manufactures and
trades different grades of plyboard. It was taken over by Mr
Gaurav Singhal, Mr Vijender Shah, Mr Sanjay Taneja, and Mr Deepak
Sudheja in 2011. Its manufacturing facility is in Dehradun,
Uttarakhand.

The company's profit after tax was INR0.11 crore on net sales of
INR21.70 crore in fiscal 2015.


K P BUILDCON: ICRA Reaffirms B+ Rating on INR15.55cr LT Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the INR15.551-crore fund-based limits and the short-term rating
of [ICRA]A4 assigned to the INR1.50-crore non-fund based limit of
K P Buildcon Private Limited. The outlook on the long-term rating
is Stable. ICRA has also assigned the [ICRA]B+/A4 ratings to
unallocated limits of KPBPL.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long-term fund-
  based Limit            15.55      [ICRA]B+ (Stable); Reaffirmed

  Short-term Non-
  fund Based Limit        1.50      [ICRA]A4; Reaffirmed

  Unallocated             0.20      [ICRA]B+ (Stable)/A4;
                                    Assigned

Rationale
The ratings reaffirmation takes into account the stretched
liquidity position of K P Buildcon Private Limited owing to
stretched receivables, resulting in elongated utilisation of
working capital borrowings in the last two fiscals. The ratings
also continues to be constrained by KPBPL's weak financial
profile, characterised by low profitability, leveraged capital
structure and modest coverage indicators, along with the
company's modest order book profile (the pending order book/OI
ratio was 0.36 times as on February 2017). While reaffirming the
ratings, ICRA also takes note of KPBPL's limited bargaining power
with its reputed customers, forcing it to extend longer credit
period.

The ratings, however, positively consider the vast experience of
the promoters in the tower fabrication business. The company
continues to benefit from the favourable demand outlook for solar
and wind farm projects, driven by the increasing Government
spending on solar projects.

Going forward, the profitability of the company would remain
vulnerable to fluctuations in raw material prices as the
manufacturing contracts are fixed-value contracts. The ability of
the company to scale up operation while maintaining profitability
and manage working capital requirements efficiently would remain
important from the credit perspective. Availability of fund-based
limits to scale up operations would remain a key concern.

Key rating drivers
Credit strengths
   * Long experience of the promoters in the tower fabrication
     Business

   * Favourable demand outlook of the company's products from
     solar and wind farm projects

Credit weaknesses
   * Significant stretch on liquidity because of high receivable
     as evident from consistently full utilisation of working
     capital limits over the last one year

   * Modest revenue visibility; the Order book/Operating Income
     ratio in FY2016 was 0.36 times

   * Weak financial profile characterised by low profitability
     levels, leveraged capital structure and modest coverage
     indicators

   * Limited bargaining power with its customers

Description of key rating drivers highlighted:

The revenue of the company reduced by ~28% in 2015 to INR51.98
crore (Rs.72.19 crore in FY2013-14) because of lower revenue from
telecom tower business due to passive sharing by telecom
companies, thereby forcing the company to rely on windmill tower
business and solar power projects. However, again the OI reported
growth of 4.74% in FY2016 fromFY2015 with successful execution of
various orders in different fields. KPBPL's capital structure
improved in FY2016 as reflected in the reduced gearing of 1.76
times as on FY2016 end compared to 2.00 times as on FY2015 end.
Low profitability coupled with high debt levels has resulted in
weak coverage indicators, with net cash accruals/total debt of 5%
and OPBIDTA/Interest charges of 1.42 times in FY2016. The debtor
days increased in 2016, resulting in high working capital
intensity, which stood at 44% in FY2016.

KPBPL is a registered approved vendor of GETCO- Gujarat Energy
Transmission Corporation Limited for supply and manufacture of GI
substation structures up to 66 KV and transmission line towers up
to 66 kv in September 2016. KPBPL has a long and healthy
relationship with all its customers, resulting in repeat orders
from its customers. However, the company has limited bargaining
power with most of its customers, resulting in the need to extend
longer credit period. The manufacturing contracts executed by the
company are fixed-value contracts, resulting in vulnerability of
the company's profitability to adverse fluctuation in raw
material prices.

Incorporated in 2001, K P Buildcon Pvt. Ltd. (KPBPL) is involved
in fabrication and galvanising for erection of various towers
such as telecom towers, wind mill towers, transmission tower and
metal structures used in solar power projects on which solar
panels are mounted. The erection of telecom towers includes
assembling galvanised plates, making required concrete base and
generator room. The company is also engaged in fault
rectification, patrolling of optical fiber cables, road and site
clearance work.
KPBPL is part of the KP Group of companies that was established
in 1994 by Mr. Faruk Patel. It is an infrastructure focused group
and operates in Gujarat and has interests in businesses of
utility scale renewable energy projects in wind and solar sector,
construction projects, telecom infrastructure, fabrication,
galvanizing. The other entities in the group are K.P.I. Global
Infrastructure Pvt. Ltd. and K.P. Energy Ltd.


KAIZEN INDUSTRIES: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kaizen
Industries a Long-Term Issuer Rating of 'IND B+'.  The Outlook is
Stable.
Instrument-wise rating actions are:

  -- INR45 mil. Fund-based limits assigned with IND B+/Stable
     rating; and

  -- INR25 mil. Non-fund-based limits assigned with IND A4 rating

                          KEY RATING DRIVERS

The ratings reflect Kaizen's small scale of operations and weak
credit metrics.  Revenue was INR234.19 million in FY16 (FY15:
INR181.24 million), gross interest coverage (operating
EBITDA/gross interest expense) was 1.38x (1.39x) and net leverage
(total adjusted net debt/operating EBITDAR) was 5.20x (5.69x).

The ratings are also constrained by the firm's tight liquidity
position as reflected by nearly full utilization of working
capital limits during the 12 months ended October 2016.

However, the ratings benefit from the partners' decade-long
experience in the manufacturing of prefabricated steel
structures.

                       RATING SENSITIVITIES

Positive: An improvement in the overall credit metrics will be
positive for the ratings.

Negative: Deterioration in the overall credit metrics, along with
the liquidity profile will be negative for the ratings.

COMPANY PROFILE

Kaizen was incorporated in 2004 as a partnership firm in Kolkata.
It is engaged in manufacturing and installation of prefabricated
and pre-engineered steel structures for buildings and shelters.


KISHORE G: CRISIL Reaffirms B+ Rating on INR5.5MM Cash Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Kishore G Lund
continue to reflect KGL's exposure to risks related to
saleability of its ongoing projects and its susceptibility to
risks inherent in the real estate industry. These rating
weaknesses are partially offset by its promoters' extensive
experience in the real estate development business and proven
project-execution capabilities.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           5.5        CRISIL B+/Stable (Reaffirmed)


Key Rating Drivers & Detailed Description
Weakness
* Susceptibility to risks related to demand and saleability of
on-going project: Srivari group remains susceptible to inherent
risks related to demand and the saleability of its on-going
projects. Any significant delay in the saleability and
realisations of Srivari group's projects could affect the group's
credit risk profile over the medium term.

Strengths
* Promoters' extensive experience in real estate development:
Srivari group benefits from the extensive experience of its
promoters in real estate development; the promoters have been
engaged in this segment for close to 30 years. The group has an
established presence in the Coimbatore (Tamil Nadu) real estate
market and has executed over 20 projects in the region backed by
strong domain experience and an established operational team. The
group is currently executing three projects in Coimbatore in
various stages of completion. The projects are named Ananya,
Saarang and Vaibhav.
Outlook: Stable

CRISIL believes that KGL will benefit over the medium term from
its promoters' extensive experience in the real estate
development business. The outlook may be revised to 'Positive' if
the projects are completed without any significant cost or time
overruns and registers more than expected sales realizations from
ongoing projects leading to larger-than-expected cash flows.
Conversely, the outlook may be revised to 'Negative' if there are
delays in the execution of the project or in the receipt of
advances from customers, or if the firm undertakes any large,
debt-funded project, impacting its financial risk profile.

Set up as a proprietorship firm by Mr. Kishore G Lund, KGL
operates a commercial complex in Coimbatore and derives rental
income from the same. KGL is part of the Srivari group of
companies which is engaged in residential real estate development
in Coimbatore. The firm has availed bank facilities for onward
lending to group companies for development of the Srivari
Ananyaa, Srivari Saarang and Srivari Vaibhav projects.

PAT was INR0.41 crore on total revenue of INR0.55 crore in fiscal
2016, against INR0.44 crore and INR0.45 crore, respectively, in
fiscal 2015.


LILY REALTY: CRISIL Lowers Rating on INR310MM Term Loan to D
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Lily Realty Private Limited to 'CRISIL D' from 'CRISIL BBB-
(SO)/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Overdraft                20       CRISIL D (Downgraded from
                                     'CRISIL BBB-(SO)/Stable')

   Term Loan               310       CRISIL D (Downgraded from
                                     'CRISIL BBB-(SO)/Stable')

The downgrade reflects delays in debt servicing due to weak
liquidity following lower-than-expected sales in its residential
project. Slowdown in sales was mainly on account of reduced
demand faced by Bengaluru's residential real estate market given
weak consumer sentiment and demonetisation. The company's credit
risk profile was also affected as promoter support was not
extended in a timely manner to meet debt obligation.
Analytical Approach

For arriving at its rating, CRISIL has taken a standalone view on
Lily Realty as there is tight escrow mechanism with ring-fencing
of the project's cash flow, which restricts financial fungibility
with other companies of the Pashmina group.

Key Rating Drivers & Detailed Description
Weaknesses
* Delays in debt servicing due to weak sales
Lily Realty witnessed delays in servicing its debt obligation
following muted sales of its residential real estate project.
Sales velocity declined to under 5 units a month in fiscal 2017
from over 10 units in fiscal 2016 because of slowdown in
Bengaluru's residential real estate market and weak consumer
sentiment following demonetization. Consequently, the cash
generation ability of the project was impacted and promoter funds
were used to support debt servicing. While outstanding dues have
been cleared as on date, the support was not extended in a timely
manner in the past.

* Exposure to project implementation risk and receipt of
approvals
Phase I of the project is in advanced stages of completion, with
structural work for all buildings complete as on December 31,
2016. The company plans to start handing over possession from
July 2017.

However, Lily Realty remains exposed to project implementation
risks given the nascent stage of construction of Phase II of its
Pashmina Waterfront project. The company is yet to receive
requisite approvals for Phase II of the project. Although the
project is being executed in phases, it remains exposed to risks
related to timely receipt of approvals, and time and cost
overruns. However, Lily Realty's association with a reputed EPC
contractor partially offsets the project implementation risks.

* Susceptibility of sales to cyclicality inherent in the real
estate sector
Although the project is being partly funded through bank
borrowings, Lily Realty is expected to be highly dependent on
customer advances to fund the remaining cost of Phase II.
Consequently, the company is susceptible to cyclicality inherent
in the real estate sector, whereby any volatility in realisations
and saleability could result in fluctuations in customer
advances.

Strength
* Tie-up with reputed project associates
The project benefits from association with experienced
engineering, procurement and construction contractor, Shapoorji
Pallonji & Co. Ltd, to ensure quality construction. Furthermore,
Lily Realty uses the advanced Mivan technology (reinforced cement
concrete structure using aluminium forms) to ensure better
quality and speedy construction of towers.

Incorporated in March 2007 and promoted by Mr. Asit Koticha
(founder of ASK Investment Holdings Pvt Ltd), Lily Realty is a
special-purpose vehicle set up by the Pashmina group to develop a
premium residential project, Pashmina Waterfront, with a total
saleable area of around 3.0 million square feet. The property is
being developed in two phases with four towers each. Total
project cost is INR1450 Crore. Phase I of the project was
launched in November 2011 and is in advanced stages of
completion. Phase II of the project is still in early stages and
the company is awaiting approvals to commence construction.


LIVINGSTONES: ICRA Reaffirms 'B+' Rating on INR48cr LT Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on the
INR48.00 crore fund based limits and INR0.82 crore unallocated
limits of Livingstones at [ICRA]B+. The long term rating carries
a stable outlook.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long term: fund
  based limits           48.00       [ICRA]B+ (Stable)/reaffirmed

  Long term:
  Unallocated             0.82       [ICRA]B+ (Stable)/reaffirmed

Rationale
The rating reaffirmation takes into account the promoters'
experience and operating track record in the Cut & Polished
Diamonds (CPD) business spanning over four decades, leading to
established relationships with its clients and suppliers; and
benefits accruing from forward integration into jewellery through
its group concern, Livingstones Jewellery Private Limited (LJPL).
The rating however, is constrained by the firm's modest financial
profile as reflected by its leveraged capital structure, weak
coverage indicators, and tight liquidity position arising out of
stretched receivables and high inventory levels. The rating also
factors in the high customer and supplier concentration with
majority of sales and purchases coming from a single entity, high
competitive intensity in the industry, and vulnerability of the
firm's profitability to volatility in prices of cut & diamonds
and exposure to fluctuations in foreign exchange rates. Further,
the ratings also take into account the risk of withdrawals owing
to the partnership nature of the entity.

The firm's operating profits remain vulnerable to adverse
movements in prices of rough diamonds and demand conditions in
the industry. The ability to scale up its operations while
managing its working capital intensity would remain the key
rating sensitivities, going forward.

Key rating drivers
Credit Strengths
   * Promoters' experience and operating track record of more
     than four decades in the gems and jewellery business

   * Advantages derived from integrated operations with presence
     across the value chain, through group concern

Credit Weakness
   * Modest financial profile as reflected by leveraged capital
     structure and weak coverage indicators

   * CPD business characterised by high competitive pressures,
     inherently low value addition and correspondingly modest
     margins

   * Concentration of sales on a single buyer who is also major
     supplier of rough diamonds

   * Stretched receivables and high inventory levels resulting
     in weak liquidity position as reflected by high utilization
     of working capital limits

   * Vulnerability of profitability to adverse movements in
     foreign exchange rates and volatility in prices of cut and
     polished diamonds

   * Risk of withdrawals from the capital account on account of
     the entity being in the nature of a partnership firm

Sensitivities
   * Improvement in working capital cycle through reduction in
     debtors and inventory levels

   * Scaling up of revenues while maintaining profitability
     margins

Description of key rating drivers highlighted:

Traditionally, the revenues of LS have been dominated by exports
to Belgium which accounted for nearly 62% of the total revenues
for FY2016 (67% in FY2015). Majority of its sales in Belgium are
to Diamstones BVBA, which remains its primary customer. The firm
has an ongoing sales arrangement with the entity whereby they
procure the raw material from them, process it and sell to them.
The sales to USA and UAE have also remained in line with the
previous year and account for 10% and 4% of the total sales
respectively in FY2016. The firm has also started exports to
several new export destinations like Italy, Japan, New Zealand in
the current year. In the domestic market, the sales are primarily
made to its group concern, Livingstones Jewellery Private
Limited, which is engaged in the manufacture and retail of
diamond studded jewellery. Local sales accounted for 14% of the
total revenue of the firm in FY2016 as compared to 16% in FY2015.

Livingstone's debt profile is mainly short term in nature for the
purpose of meeting its high working capital requirements. The
total debt of the firm stood at INR49.67 crore as on March 31,
2016 as against INR47.50 crore as on March 31, 2015; and
comprised of 95% of working capital borrowing and 5% of unsecured
loans from partners. The outstanding unsecured loan is a 12%
interest bearing promoter loan and is subordinate to bank debt
and does not have a fixed repayment schedule. In the backdrop of
the high working capital intensity and modest accruals, the
gearing of the firm remained high at 1.83 times as on March 31,
2016 as against 1.82 times as on March 31, 2015. Overall the
coverage indicators with NCA/Debt of 3%, TD/OPBDITA of 7.61 times
and OPBDITA/I&F of 1.36 times as on March 31, 2016 continued to
remain weak.

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. The firm has a group company;
Livingstones Jewellery Private Limited rated [ICRA]B as on
September 2016.

Livingstones was established as a proprietary concern by Mr.
Pankaj N. Kothari in 1976 and was subsequently converted into a
partnership firm in 1982 with the admission of Mr. Sandip Kothari
and other family members. In April 2006, with the retirement of
its key promoters, Mr. Pankaj Kothari and his wife, Mrs. Shilpa
Kothari; Mr. Sanket Kothari, the son of Mr. Sandip Kothari, was
inducted into the business as a partner. LS deals in diamonds of
mainly round brilliant cut in whites and extra whites, ranging
from 2 cents to 20 cents. It specializes in low carat diamonds,
i.e., in USD 50-250. It has two manufacturing units, one each in
Mumbai and Surat.

The LS group also has two showrooms in Juhu and Opera House in
Mumbai operated though the group company Livingstones Jewellery
Private Limited.


MAC STEEL: CRISIL Assigns 'B+' Rating to INR4.5MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Mac Steel Pvt Ltd.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan               1.4       CRISIL B+/Stable
   Cash Credit             4.5       CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility      0.6       CRISIL B+/Stable

The rating reflects the company's modest scale of operations,
below-average financial risk profile, and stretched working
capital cycle. These weaknesses are partially offset by the
extensive experience of its promoters and established
relationship with customers.

Key Rating Drivers & Detailed Description
Weakness
* Modest scale of operations: Despite presence of over 20 years,
scale of operations remains small, reflected in turnover of INR15
crore in fiscal 2016. Though expected to improve, scale will
remain subdued over the medium term.

* Below-average financial risk profile: Networth is likely to be
small at INR1.3-1.7 crore as on March 31, 2017, and gearing high
at above 2 times. Debt protection metrics are expected to be
average, with an interest coverage ratio of 1.7-1.8 times for
fiscal 2017.

* Large working capital cycle: Gross current assets have remained
in the 140-170 days range since 2015 due to stretched receivables
and sizeable inventory.

Strengths
* Extensive experience of promoters: Presence of more than two
decades has enabled the promoters to establish strong
relationship with large clients such as Mahindra & Mahindra (M&M)
('CRISIL AAA/Stable/CRISIL A1+') and Larsen and Toubro Ltd
(CRISIL AAA/FAAA/Stable/CRISIL A1+).

* Strong relationship with customers: The company has been
supplying its products to M&M for over 20 years and will continue
to benefit from healthy client relationship.
Outlook: Stable

CRISIL believes MSPL will continue to benefit over the medium
term from the extensive experience of its promoters, sound
technical knowledge, and established relationship with customers.
The outlook may be revised to 'Positive' if sustained growth in
revenue and profitability and reduction in customer concentration
lead to better-than-expected cash accrual and hence financial
risk profile. The outlook may be revised to 'Negative' if decline
in cash accrual, stretched working capital cycle, or large, debt-
funded capital expenditure further weakens financial risk
profile.

Incorporated in 1997 and promoted by Nashik-based Rajput family,
MSPL manufactures sheet metal pressed and tubular components used
across the automotive and electrical industries. Facility is in
Nashik.

For 2015-16, MSPL reported a net loss of INR0.08 crore on total
income of INR14.7 crore, against a net loss of INR0.04 crore on
total income of INR17.3 crore for 2014-15.


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

   -- INR27.5 mil. Fund-based working capital affirmed with
      IND B+/Stable rating;

   -- INR70 mil. Non-fund-based working capital affirmed with
      IND A4 rating

                         KEY RATING DRIVERS

The affirmation reflects Mahitechs' continued small scale of
operations and moderate credit metrics.  Revenue remained stable
at INR82 million in FY16 (FY15: INR84 million), while EBITDA
margin improved to 15% (11.3%) because of a fall in
subcontractor's expenses to 39% of revenue (52%).  The firm has
indicated revenue of INR70 million for 10MFY17.  It has an
outstanding order book of INR70 million, which will be executed
by 9MFY18.

Net leverage deteriorated to 3.7x in FY16 (FY15: 2.6x) on account
of an increase in the dependence on both fund-based facilities to
INR22 million (INR12.21 million) and unsecured loan to INR30.76
million (INR12.21 million).  EBITDA interest coverage (operating
EBITDA/gross interest expense) also deteriorated to 1.8x in FY16
(FY15: 2.4x) due to an increase in interest expenses.

The ratings factor in Mahitechs' proprietorship form of business.

The ratings, however, are supported by the company's founder's
around two decades of experience in the engineering, procurement,
construction segment.  The ratings also reflect Mahitechs'
comfortable liquidity, with the average maximum cash credit
utilization during the 12 months ended January 2017 being 32.5%.

                       RATING SENSITIVITIES

Positive: Substantial growth in the top line and margins leading
to an improvement in the credit metrics could lead to a positive
rating action.

Negative: A negative rating action could result from lower
visibility of growth underpinned by a weak order book position or
a decline in the margins resulting in deterioration in the credit
metrics.

COMPANY PROFILE

Established in 2010, Mahitechs is a Mumbai-based firm, engaged in
the execution of civil construction work for semi-government
authority and non-government authorities.  The firm also takes
job work as sub-contractor.


MANDOVI MINERALS: CRISIL Reaffirms 'B' Rating on INR12.31MM Loan
----------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Mandovi Minerals Private Limited at 'CRISIL B-/Stable

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              2        CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility       2.69     CRISIL B/Stable (Reaffirmed)

   Term Loan               12.31     CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect the group's above-average
financial risk profile, marked by low gearing, moderate networth
and adequate debt protection metrics. The ratings also factor in
the extensive experience of promoters. These strengths are
partially offset by exposure to risks related to intense
competition in the highly regulated and fragmented industrial
sands market.
Analytical Approach

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Mangalore Minerals Pvt Ltd (MMPL) and
Mandovi Minerals, together referred to as the MMPL group. This is
because both these entities are in similar line of business, have
a common management, and fungible cash flows.
Key Rating Drivers & Detailed Description
Strengths
* Extensive experience of promoters: The group is managed by Mr
Shivaji Mendon, who has over five decades of experience in the
silica industry. This has helped the group to establish
relationship with key customers mostly original equipment
manufacturers (OEMs) and set up facilities in strategic locations
with proximity to silica supply'unwashed silica sand available at
low prices.

* Above-average financial risk profile
Financial risk profile is above-average marked by moderate
gearing, healthy networth, and comfortable debt protection
metrics. The gearing and networth were at 0.68 times and INR62
crore as on March 31, 2016. Financial risk profile should remain
above-average over the medium term.

Weakness
* Exposure to risks related to intense competition in the highly
regulated and fragmented industrial sands market
There have been a number of restrictions on sand mining,
especially in Karnataka and Maharashtra, in the recent past
because of environmental issues resulting in an increase in
unwashed silica prices. Sand miners in Mangalore have been
severely affected after the Government of Karnataka passed the
Uniform Sand Mining Policy in April 2011, which does not allow
sand mining in Coastal Regulation Zones and prohibits the use of
machinery to mine sand from rivers. Consequently, the price of
sand in Mangalore has increased by over four times. However, this
risk is mitigated by the group's presence in different
geographies. Furthermore, the group has passed on increases in
raw material costs to customers, as reflected in healthy
operating margin of 30% over the past three years. Though
operating margin has not been affected by intensifying
competition, the working capital cycle remains stretched.
Intensifying competition and the economic slowdown have led to
delays in realisation of payments from customers recently. Thus
business risk profile should remain exposed to political and
regulatory risks.
Outlook: Stable

CRISIL believes MMPL group's business risk profile will continue
to be supported by the extensive experience of its promoters. The
outlook may be revised to 'Positive' if working capital
management is efficient or if increase in scale of operations
improves business risk profile. The outlook may be revised to
'Negative' if stretch in working capital cycle or large, debt-
funded capital expenditure weakens financial risk profile or if
adverse regulatory changes affect business volumes.

The MMPL group, promoted by Mr Shivaji Mendon and Mrs Rama
Mendon, is headquartered in Mangalore. Incorporated in 1987,
MMPL, the flagship entity of the group, produces industrial
sands.

Mandovi Minerals is also promoted by the Mendons. Incorporated in
2004, it manufactures washed and dry silica sand.

In fiscal 2016, MMPL group reported net sales of INR82 crore and
profit after tax of INR13 crore against net sales and profit
after tax of Rs98 crore and INR10 crore, respectively, for fiscal
2015.


MEGAMILES BEARING: CRISIL Upgrades Rating on INR5MM Loan to BB-
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Megamiles Bearing Cups Pvt. Ltd to 'CRISIL BB-/Stable/CRISIL A4+'
from 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             5         CRISIL BB-/Stable (Upgraded
                                     from 'CRISIL B+/Stable')

   Letter of Credit        1.5       CRISIL A4+ (Upgraded from
                                      'CRISIL A4')

The upgrade was driven by sustained improvement in MBCPL business
risk profile reflected in continuous growth in topline followed
by addition of new customers in the export market and stable
operating margin resulting in high cash accrual.

The ratings continue to reflect the extensive industry experience
of its promoter, average financial risk profile marked by
moderate capital structure and comfortable debt protection
metrics. However, the rating has been constrained by customer
concentration in revenue profile and working capital intensive
operations.

Key Rating Drivers & Detailed Description
Strengths
* Extensive experience of promoters: The promoters have technical
expertise and two decades of experience in the auto component
industry. This has helped in establishing long-standing
relationships with customers and key suppliers.

Weakness
* Working-capital-intensive operations: Operations are working
capital intensive as reflected in gross current assets of 160
days primarily due to high debtor and inventory levels owing to
long process time as most of the inventory is work in progress.
However, working capital requirements are supported by a credit
period of 180 days from its suppliers, as most of the raw
materials are procured under letters of credit. The bank limits
have been optimally utilised at 84% during the 12 months through
November, 2016.

* Exposure to volatility in foreign exchange rates: Exports
account for 50% of revenue, and hence margins are vulnerable to
any sharp appreciation in the rupee against the US dollar.
Outlook: Stable

CRISIL believes MBCPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if scale and cash accrual increase, or if equity
infusion improves capital structure. The outlook may be revised
to 'Negative' if decline in profitability, lowers accrual, or
working capital cycle lengthens, or sizeable debt-funded capital
expenditure is incurred.

MBCPL, incorporated in 1990 and promoted by Mr Y S Mahadev, Mr S
Rudra Prasad, and Mr B S Divakar, manufactures cold forged and
computer numerical control (CNC) machined components for
automotive applications.

In fiscal 2016, MBCPL reported net sales of INR22.72 crore and
profit after tax of INR0.61 crore against INR20.7 crore and
INR0.23 crore, respectively, for fiscal 2015.


MONNET ISPAT: JSW Steel Offers to Buy Controlling Stake
-------------------------------------------------------
LiveMint reports that JSW Steel has made an offer to buy a
controlling stake in Monnet Ispat and Energy Ltd through the
strategic debt restructuring (SDR) route.

According to LiveMint, the firm is undergoing SDR and lenders,
who own a 51% stake, are exploring the option of handing over its
control and management to outside investors.

LiveMint relates that a person close to the development said,
"JSW Steel has put in final bid and the bankers are considering
the offer submitted by JSW Steel. It is the only firm which
submitted the final bid. The bid was submitted on February 22."

Queries sent to the companies remained unanswered, LiveMint
notes. The company had earlier said talks with the investor are
confined to lenders and the management is not involved at this
stage, says LiveMint.

Monnet Ispat & Energy Limited engages in the production and sale
of sponge iron, structural steel, and ferro alloys. The company
also engages in the generation and sale of power; and provides
consultancy services in the fields of exploration, exploitation,
and beneficiation coal and other minerals.


NATRAJ HOME: CRISIL Assigns B+ Rating to INR5MM Foreign Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Natraj Home Furnishings Pvt Ltd.

                              Amount
   Facilities                (INR Mln)     Ratings
   ----------                ---------     -------
   Packing Credit                3         CRISIL A4
   Foreign Bill Discounting      5         CRISIL B+/Stable
   Foreign Exchange Forward      0.5       CRISIL A4

The ratings reflect the company's small scale of operations,
geographic and customer concentration in its revenue, and its
weak financial risk profile because of high gearing. These
weaknesses are partially offset by its promoters' extensive
experience in the textile industry and their funding support, and
its established customer relationships.
Analytical Approach

CRISIL has treated unsecured loans extended to NHFPL by its
promoters as neither debt nor equity because these loans will
continue to remain in the business for a long-term and are in
personal capacity of the promoters.

Key Rating Drivers & Detailed Description
Weakness
*Small scale of operations in a fragmented industry: Intense
competition in a fragmented industry because of low entry
barriers has kept the company's scale of operations small,
indicated by net sales at INR36.3 crore in fiscal 2016.

*Weak financial risk profile: The company has a weak capital
structure, reflected in high gearing of 4.77 times as on March
31, 2016, because of expansion done in the past 2-3 years.

Strengths
*Extensive industry experience of the promoters: The promoters'
experience of more than four decades in the textiles and home
furnishing segment through other firm has helped NHFPL establish
strong relationships with customers abroad.

*Funding support from promoters: The promoters have extended
unsecured loans-Rs 2.76 crore as on March 31, 2016, against
INR0.7 crore a year earlier-to support working capital management
and expansion, and will continue to do so.
Outlook: Stable

CRISIL believes NHFPL will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company scales up operations and
generates higher-than-expected cash accrual, or if its capital
structure improves supported by equity infusion. The outlook may
be revised to 'Negative' if financial risk profile weakens on
account of decline in revenue and profitability, or larger-than-
expected, debt-funded capital expenditure.

NHFPL, incorporated in 2004, manufactures and exports home
furnishing items, such as curtains, cushions, and table cloth.
The company was set up as a proprietorship firm, Natraj Exports,
by Wadhwani family in 2000, and was reconstituted as a private
limited company in 2004. It has four manufacturing units, at
Barhi in Jharkhand and at Kundli in Haryana, with weaving,
dyeing, and printing capabilities.

NHFPL's net profit was INR0.38 crore on operating income of
INR36.29 crore for fiscal 2016, against a net profit of INR0.33
crore on operating income of INR32.84 crore for fiscal 2015.

Status of non-cooperation with previous CRA: NHFPL has not
cooperated with ICRA Ltd, which suspended its ratings vide
release dated April 12, 2016. Reason provided by ICRA Ltd was
non-furnishing of information by NHFPL for monitoring ratings.


PILOT 2 WHEELERS: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Pilot 2 Wheelers
Private Limited a Long-Term Issuer Rating of 'IND BB+'.  The
Outlook is Stable.  Instrument-wise rating actions are:

   -- INR200 mil. Fund-based working capital assigned with
      IND BB+/Stable/IND A4+ rating

   -- INR50 mil. Proposed fund-based working capital* assigned
      with Provisional IND BB+/Stable/Provisional IND A4+ rating

* The ratings are provisional and the final ratings will be
assigned subject to execution of sanction letter for the above
facilities to the satisfaction of Ind-Ra.

                        KEY RATING DRIVERS

The ratings reflect a steady improvement in top line with a CAGR
of 20.53% over FY13-FY16 (FY16: INR1,054.47 million, FY15:
INR873.46 million).  Vehicle sale volumes increased 22% yoy to
around 22,000 in FY16, driven largely by the sale of Honda Activa
series (Honda Active 3G, Honda Activa 125 and Honda Activa i).
Management expects revenue growth to continue over the medium
term on account of increased contribution from a third dealership
outlet, opened in Byculla, Mumbai, in August 2015 and its recent
contract with the Canteen Stores Department to sell vehicles in
Mumbai until November 2017.  Management expects to sell 2,000-
2,500 (10% of FY16 volume) vehicles under the contract. Pilot 2
Wheelers reported revenue of INR989 million in 10MFY17.

The ratings also factor in the company's moderate credit metrics
as indicated by interest coverage (operating EBITDA/gross
interest expense) of 1.7x in FY16 (FY15: 1.8x) and net leverage
(total debt net of cash/operating EBITDA) of 5.8x (4.8x).  The
deterioration in the credit metrics was due to an increase in
short-term debt to INR196 million at FYE16 (FYE15: INR117
million), given increased inventory requirement arising from the
opening of its third showroom.

EBITDA margin was volatile and remained in the range of 3.1%-4.1%
over FY13-FY16 (FY16: 3.75x, FY15: 3.95x), attributed to highly
competitive two-wheeler market with the presence of four other
Honda two-wheeler dealerships in Mumbai.  Ind-Ra expects EBITDA
margins to improve over the medium term on account of an increase
in direct sales to customers, leading to an increase in spare
part sales and vehicle servicing.

The ratings are constrained by Pilot 2 Wheelers tight liquidity
position with 97.5% of average peak utilization of working
capital facilities during the 12 months ended January 2017.

However, the ratings draw support from the promoters' combined
experience of more than five decades in automotive dealership.

                       RATING SENSITIVITIES

Positive: A significant increase in the scale of operations and
profitability margins, leading to an improvement in the credit
metrics will be positive for the ratings.

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

COMPANY PROFILE

Established in 2001, Pilot 2 Wheelers is an authorized dealer of
Honda Motorcycle and Scooter India Private Limited.  The company
is engaged in the sale of new vehicles and spare parts, as well
as servicing of vehicles.  It has three showrooms and service
centres in and around Mumbai.


PRAGATI SPINNERS: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Pragati Spinners
Private Limited (PSPL) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR237.828 mil. term loans assigned with IND BB+/Stable
      rating;

   -- INR180 mil. Fund-based facilities - cash credit assigned
      with IND BB+/Stable/IND A4+ rating

   -- INR6 mil. Non-fund-based facilities assigned with IND A4+
      rating

                         KEY RATING DRIVERS

The ratings reflect Ind-Ra's expectations of a substantial
improvement in PSPL's credit profile by FYE18, on the economies
of scale as it strives to achieve optimum capacity utilization.
The revenue grew at a CAGR of 45.60% over FY13-FY16 to INR764
million (FY15: INR669 million) while EBITDA margin improved 140bp
yoy to 8.7%, on account of an increase in the receipt of orders
from longstanding customers.  The company achieved revenue of
INR546.42 million and EBITDA margin of around 10.7% during
9MFY17, and has a current order book of INR70 million which is to
be executed by February 2017.  PSPL interest coverage (operating
EBITDA/gross interest expense) was 1.1x in FY16 (FY15: 0.8x) and
net financial leverage (total adjusted net debt/operating EBITDA)
was 7.2x (10.5x).

Revenue growth is likely to moderate over the next few years as
the capacity utilization reaches its optimum levels and existing
relationships increase business.  The company generates more than
90% of its revenue from the top five customers with whom the
company has more than six years of relationships.

Ind-Ra expects PSPL to end FY18 with interest coverage of 2.3x
and net leverage of 3.9x in FY18. Scheduled repayment of term
loans and margin expansion are likely to aid the credit metric
improvement.

The ratings also factor in PSPL's moderate liquidity profile with
the working capital limits being utilized at an average of 90.3%
during the 12 months ended January 2017.  Net working capital
cycle improved to 125 days in FY16 and 141 days in FY15 from 165
days in FY14.

The ratings are supported by the company's promoters' six years
of experience in producing cotton yarn.

                      RATING SENSITIVITIES

Positive: A significant increase in the top line and
profitability margins leading to a sustained improvement in the
credit metrics would be positive for the ratings.

Negative:  A decline in the revenue and operating profitability
margins resulting in significant deterioration in the credit
metrics will be negative for the ratings.

COMPANY PROFILE

PSPL was incorporated in October 2010 as a private limited
company in Andhra Pradesh.  The company started its commercial
operations in August 2012.

PSPL processes cotton lint to produce cotton yarn of various
counts.  The company mainly sells cotton yarn to merchant
exporters.  About 95% its revenue is generated through merchant
exports.  Domestic customers are mainly located in Telangana.


RAGHUNATH LAXMINARAYAN: CRISIL Cuts Rating on INR10MM Loan to D
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Raghunath Laxminarayan Spices Private Limited (RLN; part of
the RL Masala group) to 'CRISIL D' from 'CRISILB+/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              10       CRISIL D (Downgraded from
                                    'CRISIL B+/Stable')

The downgrade reflects instances of delay in interest payment on
working capital borrowing. These delays were due to weak
liquidity driven by high bank limit utilisation, low cash accrual
because of lower-than-anticipated turnover, and higher-than-
expected debt because of increased working capital requirement.
This also led to marginal increase in the gearing to 2.5 times as
on March 31, 2016. Improvement in turnover, and hence in cash
accrual, will a remain key rating sensitivity factor.

The rating reflects the group's below-average financial risk
profile because of weak liquidity, high gearing, and weak debt
protection metrics, low operating margin, and working capital-
intensive operations. These rating weaknesses are mitigated by a
moderate scale of operations and diversified product and customer
profiles. The rating also factors in the extensive experience of
the promoters in the spice trading and manufacturing business,
and their funding support.
Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of RLN and Kumar Audyogik Vikas Private
Limited (KAV). This is because both the two companies, together
referred to as the RL Masala group, are owned and managed by the
same promoter family and deal in similar products.

Key Rating Drivers & Detailed Description
Weaknesses
* Delay in serving of debt: The company has been delaying
interest payment on its working capital limit. This is mainly on
account of weak liquidity.

* Below-average financial risk profile:  The gearing of the group
was high at 2.33 times as on March 31, 2016. Debt protection
metrics remained subdued, with interest coverage ratio at 1.44
times in fiscal 2016, owing to low profitability.

* Working capital-intensive operations: Gross current assets were
at 129 days as on March 31, 2016, with receivables of 30 days and
inventory of 68 days.

* Low operating margin: Group's operating margin was 3 times in
fiscal 2016.

Strengths
* Moderate scale of operations: Revenue grew at a healthy pace
over the three fiscals through 2015. However, revenue growth in
fiscal 2016 has remained stagnant on account of subdued demand.

* Diversified product and customer profiles: The customer base is
diversified across both wholesale and retail segments. The group
has established its RL Masala brand in semi-urban and rural areas
through a network of 1800 distributors in North India spread
across Uttar Pradesh, Bihar, West Bengal, Jharkhand, Assam, and
Madhya Pradesh; and 600 distributors in Andhra Pradesh, Tamil
Nadu, Maharashtra, and Karnataka.

* Extensive experience of the promoters in the spice trading and
manufacturing business: The promoters, members of the Maheshwari
family, have been trading in spices and dry fruits since 1965.
The business was started by Mr Raghunath Laxminarayan, and is
currently being handled by his sons, Mr Omkar Nath Maheshwari and
Mr Krishna Gopal Maheshwari, and his grandsons.

* Funding support from the promoters: The promoters extended
unsecured loans (Rs 9.66 crore as of March 2016) and infused
equity (Rs 2 crore) to fund working capital requirement.
About the Group

RLN, set up in 1994, is a wholesale trader in dry fruits and
spices. Its operations are based at Sangli in Maharashtra, and
Varanasi in Uttar Pradesh. The company is owned and managed by
the Varanasi-based Maheshwari family.

The Maheshwari family acquired KAV in 2002, and this company
started spice manufacturing in Varanasi in 2008 under its own
brand, RL Masala.

RLN reported net profit of INR0.42 Crores on net sales of
INR178.62 crores in FY 2015-16 against net profit of INR0.36
crores on net sales of INR173 crores in FY 2014-15


RAJEEV KUMAR: CRISIL Assigns B+ Rating to INR0.2MM LT Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank loan facilities of Rajeev Kumar - Patna (RKP).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Proposed Long Term
   Bank Loan Facility      0.2        CRISIL B+/Stable

   Bank Guarantee          5.0        CRISIL A4

   Overdraft               0.8        CRISIL A4

The ratings reflect the firm's small scale of operations in a
fragmented industry, with intense competition exerting pressure
on revenue visibility and profitability, and large working
capital requirement. These weaknesses are partially offset by the
extensive experience of the firm's promoter in the civil
construction industry, and its above-average financial risk
profile because of low total outside liabilities to adjusted
networth (TOLANW) ratio and healthy debt protection metrics,
despite small networth.

Key Rating Drivers & Detailed Description
Weaknesses
* Small scale of operations in a fragmented industry, with
intense competition exerting pressure on revenue visibility and
profitability: RKP operates in a tender-based business, and faces
competition from companies in Jharkhand and Bihar, and from large
pan-India players. Small scale of operations restricts ability to
bid for large orders. Also, large number of companies bidding for
small tenders leads to pressure on revenue and profitability.

* Large working capital requirement: The firm had gross current
assets of 176 days as on March 31 2016, primarily on account of
security deposits, retention money, and other deposits that it
has to maintain with customers.

Strengths
* Extensive experience of promoter in civil construction: The
firm is promoted by Bihar-based Mr Rajeev Kumar, who has been in
the civil construction business for over a decade. RKP has
executed a large number of projects for state and central
government bodies.

* Above-average financial risk profile: The financial risk
profile is supported by low TOLANW ratio of 1.6 times as on March
31, 2016, and healthy interest coverage ratio of 7.75 times for
fiscal 2016. Networth was small, at INR5.06 crore, as on March
31, 2016.
Outlook: Stable

CRISIL believes RKP will continue to benefit from its promoter's
extensive experience in the civil construction industry. The
outlook may be revised to 'Positive' if there is a significant
increase in revenue and operating profitability, leading to
higher-than expected cash accrual. The outlook maybe revised to
'Negative' if operating margin and revenue decline, or if the
financial risk profile weakens because of a stretch in working
capital cycle, leading to pressure on liquidity.

Set up in 2005 as a proprietary firm and based in Patna, RKP
undertakes civil construction, mainly related to roads, for the
governments of Bihar and Jharkhand. The firm is managed by Mr
Rajeev Kumar, who has been in civil construction business for
over a decade.

For fiscal 2016, RKP's profit after tax (PAT) was INR1.09 crore
on net sales of INR23.68 crore, against a PAT of INR0.15 crore on
net sales of INR14.61 crore for fiscal 2015.

Status of non-cooperation with previous CRA:RKP has not
cooperated with CARE Ratings which was suspended its rating vide
release dated March 28, 2016. The reason provided by CARE Ratings
is non-furnishing of information required for monitoring of
ratings.


S.B. SYSCON: CRISIL Reaffirms B+ Rating on INR10.5MM Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of S.B. Syscon Private Limited at 'CRISIL B+/Stable'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            10.5      CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      2.0      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect a small scale of operations in
the highly fragmented electrical equipment industry, and weak
financial risk profile because of a high total outside
liabilities to tangible networth (TOLTNW) ratio and low cash
accrual. These rating weaknesses are partially offset by the
extensive experience of the promoter in the trading business and
the funding support received from him.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations in a highly fragmented industry:-
Revenue was INR38 crore in fiscal 2016, and INR30 crore in the
nine months through December 2016. The company is an authorised
dealer of switchgears, motors and cables for reputed companies
such as Siemens, GE, Legrand, finolex and socomec.  However, the
market is highly fragmented. A modest scale of operations
restricts the bargaining power with suppliers and can have an
adverse impact on operations and profitability. Furthermore,
operations are exposed to economic cycles as the company caters
to contractors, and engineering, procurement and construction
players.

* Weak Financial Risk Profile:
The total outside liabilities to tangible networth (TOLTNW) ratio
was about 5 times as on fiscal 2016. That's due to a modest
networth and large working capital requirement. The capital
structure is expected to improve gradually over the medium term
in the absence of significant debt-funded capital expenditure
(capex) plans and modest accretion to reserves.

Strength
* Extensive industry experience of the promoter
The promoter, Mr R P Pandey, has been trading in power
distribution equipment since 1992 through a proprietorship firm,
SB Electricals. In 2008, the business were transferred to SBSPL.
Over the years, the promoter has established strong relationship
with suppliers and customers as reflected in a regular clientele
and extended credit period by the principals. The promoter's
experience has helped him gain an understanding of the market and
identify potential untapped markets and segments. Furthermore,
the experience has helped the company establish its presence in
North India, thus facilitating addition of new customers and
forging a strong relationship with prominent customers. The
company has been associated with some of its prominent customers
for over a decade, enabling it to grow in scale.
Outlook: Stable

CRISIL believes SBSPL will continue to benefit from the extensive
industry experience of its promoter. The outlook may be revised
to 'Positive' in case of significant improvement in the financial
risk profile, most likely on account of better-than-expected cash
accrual or equity infusion, along with efficient working capital
management. The outlook may be revised to 'Negative' if liquidity
weakens due to lower-than-expected cash accrual or a substantial
increase in working capital requirement or debt funded capex.

SBSPL was originally established as a proprietorship concern by
Mr R Pandey; the firm was reconstituted as a private limited
company in 2008. The company is a distributor of switchgears,
motors, conductors, and cables for reputed companies such as
Siemens, GE, Pierlite, and others. It has offices at Faridabad in
Haryana, and Mumbai.

SBSPL reported a profit after tax (PAT) of INR0.25 Crores on net
sales of INR37.53 Crores for fiscal 2016, vis-a -vis INR0.18
Crores and INR30.16 Crores, respectively in fiscal 2015, on a
standalone basis.


SAFE-TRONICS AUTOMATION: ICRA Reaffirms B+ Rating INR4cr Loan
-------------------------------------------------------------
ICRA has re-affirmed the long-term rating assigned to the INR4.00
crore fund based bank limits of Safe-tronics Automation Private
Limited. ICRA re-affirmed the short-term rating of [ICRA]A4 for
the INR9.00 crore non-fund based limits of the company.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund Based Limits       4.00      [ICRA]B+ (Stable);
                                    re-affirmed

  Non-Fund Based Limits   9.00      [ICRA]A4; re-affirmed

  Unallocated Limits      1.00      [ICRA]B+ (Stable)/[ICRA]A4;
                                    re-affirmed

ICRA has also re-affirmed the [ICRA]B+ and [ICRA]A4 ratings for
the INR1.00 crore unallocated limits of the company. The outlook
on the long-term rating is 'Stable'.

Rationale
The ratings re-affirmation factors in the modest scale of SAPL's
operations. Furthermore, as the company caters largely to the oil
and gas industry, its operations remain dependent on the
investments in the industry. Evidently, the operating income of
the company had registered de-growth of 28% during FY2016
following a decline in the capital investments in the oil and gas
sector. The rating further factors the absence of price
escalation clauses in majority of the company's contracts, which
exposes SAPL's profitability to variation in raw material and
labour costs. The company's pricing flexibility is also impacted
by the tender-based competitive bidding process for the contracts
of Public Sector Units (PSUs) where contracts are awarded to the
lowest bidder (L1). Furthermore, with more than 50% of the
procurement being met through imports, SAPL's profitability
remains vulnerable to any adverse fluctuations in foreign
exchange in the absence of any hedging undertaken by the company.
The ratings, however, continue to favourably factor the long
experience of SAPL's promoters in the execution of turnkey
projects for the installation of F&G detection equipments for the
oil and gas industry. Moreover, the company's exclusive supply
arrangement with Detector Electronics Corporation, USA, which has
a leading position in F&G detection systems, provides comfort.

Key rating drivers
Credit Strengths
   * Long experience of promoters in execution of turnkey
     projects related to F&G detection system for the oil and gas
     industry

   * Exclusive supply arrangement with Detector Electronics
     Corporation (Det-Tronics), USA, which is an established
     manufacturer of F&G detection systems.

Credit Weakness
   * Modest scale of operation

   * Order book position largely dependent on investment in oil
     and gas industry, exposing the company to revenue volatility
     risk.

   * Absence of price escalation clause in majority of the
     contracts exposes the profitability to variation in raw
     material and labour costs; competitive bidding for contracts
     limits the pricing flexibility further.

   * Susceptibility of margins to foreign exchange fluctuations,
     given the significant dependence on imports.

Description of key rating drivers highlighted:

The operations of SAPL are modest with the company registering
revenues of INR15.61 crore in FY2016 and INR15.98 crore in 9M
FY2017. Although the company has orders-in-hand of INR17.60 crore
as on December 30, 2016, which are to be completed by FY2018 the
scale of operations is expected to continue to remain modest.
Moreover, the orders are mainly from the oil and gas industry,
and thus the company's operations remain contingent to the
cyclicality and capital investments in the industry. Furthermore,
the company also caters to various PSUs where the contracts are
awarded to the lowest bidder (L1). Thus, the company has to
competitively bid for these tenders which impacts its pricing
flexibility. These contracts generally do not have price
escalation clauses, which further expose the company's
profitability to any adverse fluctuations in the raw material and
labour costs. Being the exclusive distributor of 'Det-Tronics' in
India and due to its collaborations with international companies
for the supply of components, imports form a significant portion
of the company's procurement. Imports contributed to ~54% and
~62% of the total procurement in FY2016 and H1 FY2017,
respectively. With sales being made entirely in the domestic
markets, the margins of the company, thus remain vulnerable to
any adverse fluctuations in the foreign currency in the absence
of any hedging undertaken.

Nevertheless, the promoters of the company have an experience of
over a decade in the industry, which coupled with its exclusive
supply arrangement with Det-Tronics lend some comfort.

Analytical approach:
ICRA has assigned the ratings following a detailed evaluation of
the issuer's business and financial risks.

Incorporated in 2007, Safe-Tronics Automation Private Limited
provides turnkey solutions for Fire & Gas (F&G) detection systems
mainly for the oil and gas industry. The company is headed by Mr.
Avinash Pol who has an experience of over a decade in the
industry. SAPL is an exclusive representative for products of
Detector Electronics Corporation (part of United Technologies
Corporation, USA) in India. SAPL also has supply arrangements
with entities like Norriseal (part of Dover Corporation, USA) for
control valves, Rockwell Automation for supply of control systems
and with MEDC (UK) for supply of hooters, alarms, beacons, etc.
During FY2017, SAPL collaborated with GE, USA, for the exclusive
distribution of their oil-on-water detection systems in India.
SAPL reported a net profit after tax and depreciation of INR0.95
crore and INR0.70 crore on an operating income of INR21.61 crore
and INR12.12 crore for the period ended March 31, 2016 and
September 30, 2016, respectively.


SAI INFRACONSTRUCTIONS: Ind-Ra Assigns 'BB-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sai
Infraconstructions Private Limited (SICPL) a Long-Term Issuer
Rating of 'IND BB-'.  The Outlook is Stable.  The instrument-wise
rating actions are:

   -- INR65 mil. Fund-based working capital limits assigned with
      IND BB-/Stable/IND A4+ rating;

   -- INR70 mil. Non-fund-based limits assigned with IND A4+
      rating

                         KEY RATING DRIVERS

The ratings reflect SICPL's small scale of operations.  In FY16,
revenue was INR197.12 million (FY15: INR245.98 million).  The
ratings further reflect tight liquidity position of the company
with overutilization (average 101.49%) of its working capital
facilities during the 12 months ended December 2016

The ratings factor in SICPL's moderate credit metrics with gross
interest coverage (operating EBITDA/gross interest expense) of
2.04x in FY16 (FY15: 2.85x) and net financial leverage (total
adjusted net debt/ operating EBITDAR) of 3.55x (2.26x).

The ratings, however, are supported by a decade-long experience
of SICPL's promoters in the construction business, the company's
strong relationship with its customers and suppliers, and strong
and improved operating EBITDA margins of 14.30% in FY16 (FY15:
11.29%) due to execution of profitable projects..

The ratings are further supported by SICPL's moderate order book
of around INR500 million for FY17, providing revenue visibility
in the short-term.  The company has indicated revenue of INR290
million in 9MFY17.

                        RATING SENSITIVITIES

Positive: A significant improvement in the scale of operations,
along with improvement in the liquidity profile of the company
could be positive for the ratings.

Negative: Any further deterioration in the liquidity profile of
the company could be negative for the ratings.

COMPANY PROFILE

SICPL was incorporated in 2009.  It is engaged in EPC works and
undertakes contracts for construction of roads, highways and
bridges for various government departments.


SHIV MAHIMA: CRISIL Reaffirms 'B' Rating on INR6.0MM Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on long-term
bank facilities of Shiv Mahima Milk Products Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             6.0       CRISIL B/Stable (Reaffirmed)
   Long Term Loan          6.6       CRISIL B/Stable (Reaffirmed)

The rating reflects an early stage of operations with exposure to
offtake risks, and susceptibility to volatility in raw material
prices. These weaknesses are mitigated by the extensive
experience of the promoters in the wheat processing industry.

Key Rating Drivers & Detailed Description
Weaknesses
* Early stage of operations with exposure to offtake risks:
Commercial operations commenced in November 2015, with a capacity
to process 63,000 tonnes per annum (tpa) of wheat and gram flour,
at Shahapur, Rajasthan. Hence, revenue was modest in fiscal 2016.

* Susceptibility to volatility in raw material prices: The
operating profitability will remain highly susceptible to
fluctuations in raw material prices and to changes in government
policies, over the medium term.

Strength
* Extensive industry experience of the promoters: The promoters
have been engaged in the agriculture-based industry for over two
decades through their other group concern.
Outlook: Stable

CRISIL believes SMPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if the financial risk profile improves, driven by
equity infusion, or increase in operating income and margin
resulting in a substantial rise in cash accrual. The outlook may
be revised to 'Negative' if the financial risk profile;
particularly liquidity weakens due to lower-than-expected revenue
or profitability or stretch in working capital or debt funded
capex.

SMPL was incorporated in 2013 in Jaipur, promoted by the Mittal
family. The company set-up a wheat-processing unit with a
grinding capacity of 63,000 tpa at Shahapur to manufacture maida,
wheat, and bran. The key promoter, Mr Bharat Mittal manages
operations along with his wife, Ms Mukta Mittal.

There was a net loss on net sales of INR3.9 crore or fiscal 2016.


SHRILEKHA TRADING: CRISIL Lowers Rating on INR10MM Loan to 'C'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shrilekha Trading Private Limited to 'CRISIL C/CRISIL A4' from
'CRISIL BB/Stable/CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Letter of Credit        120       CRISIL A4 (Downgraded from
                                     'CRISIL BB/Stable')

   Letter of Credit         10       CRISIL C (Downgraded from
                                     'CRISIL A4+')

The downgrade reflects weakening of the company's financial risk
profile, because of stretched receivables due to weak market
conditions. CRISIL expects the liquidity to remain stretched over
the medium term. Furthermore, on account of revised analytical
approach to standalone basis, the company is expected to generate
modest cash accrual, which will provide a weak cushion of 0.07
time against debt. Bank limit utilisation was high at 98.4% in
the 12 months ended October 2016.
Analytical Approach

For arriving at the ratings, CRISIL has now rated STPL on a
standalone basis, against the previously consolidated approach.
The revision in analytical approach is because of track record of
no financial fungibility with the associates, despite common
promoters.

Key Rating Drivers & Detailed Description
Weaknesses
* Large working capital requirement: Average receivables are
expected to be stretched against previous average level of 100
days till fiscal 2016. Inventory continues to be intraday. Though
liquidity is backed by letter of credit (LC) availed of 180 days,
any delay in realisations can lead to crystallisation of LC debt
as the company has low unencumbered cash against debt obligation.

* Modest operating margin: Profitability was 0.09% for fiscal
2016 and will remain low over medium term on account of trading
nature of operations.

* Weak financial risk profile: Due to large working capital
requirement and expected stretch in realisation of receivables,
liquidity is expected to be weak over medium term. Debt
protection metrics were also weak, with expected interest
coverage ratio of 1.2 times over the medium term.

Strength
* Large scale of operations: Turnover was INR513 crore in fiscal
2016 against INR508 crore in fiscal 2015. Promoters have
experience of over two decades and established relationship with
key buyers and suppliers.

Incorporated in 2002 and promoted by Mr. Vinod Jatia and his
family members, STPL primarily trades in iron and steel products
such as hot- and cold-rolled coils, sheets, and plates, sponge
iron lumps, and fines.

Profit after tax was INR2.44 crore on trading income of INR513.49
crore in fiscal 2016, against INR3.64 crore and INR512.31 crore,
respectively, for fiscal 2015.


SIDDHI GANESH: CRISIL Reaffirms B+ Rating on INR20MM Loan
---------------------------------------------------------
CRISIL has reaffirmed its rating on the INR17 crore long-term
bank loan facilities of Siddhi Ganesh Metal Private Limited to
'CRISIL B+/Stable'.

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

   Electronic Dealer
   Financing Scheme
   (e-DFS)                 20       CRISIL B+/Stable (Reaffirmed)

The rating reflects below average financial risk profile,
exposure to intense competition in the industry, resulting in low
profitability margin.These weaknesses are mitigated by the to the
extensive experience of promoters in the steel trading industry
and their established relations with suppliers.

CRISIL had downgraded its rating on the INR17 crore long-term
bank loan facilities of Siddhi Ganesh Metal Pvt Ltd (SGMPL) to
'CRISIL B+/Stable' from 'CRISIL BB-/Stable' on January 13,2017.

Key Rating Drivers & Detailed Description
Weaknesses
* Exposure to intense competition, resulting in low
profitability: Profitability continues to be constrained by
intense competition among steel traders due to low value addition
involved in trading.

* Below-average financial risk profile
The financial risk profile is weak, with modest networth of
INR7.8 crore, high total outside liabilities to tangible networth
(TOLTNW) ratio of 4.5 times, and average debt protection metrics
as reflected in interest coverage and net cash accrual to total
debt (NCATD) ratios at around 1.3 times and 2% in fiscal 2016.

Strength
* Extensive experience of the promoters in the steel trading
industry
Benefits from the promoters' experience of more than a decade,
and their established relationships with key customers and
suppliers, especially with principal, Jindal Stainless Ltd (JSL),
should continue to support business risk profile.
Outlook: Stable

CRISIL believes SGMPL will continue to benefit over the medium
term from the extensive industry experience of promoters and
their established relations with customers. The outlook may be
revised to 'Positive' in case of a substantial and sustained
improvement in revenue and profitability margin, efficient
working capital management, or sizeable equity infusion by the
promoters. Conversely, the outlook may be revised to 'Negative'
in case of a steep decline in profitability margin, or
significant deterioration in capital structure caused most likely
by a stretched working capital cycle.

SGMPL was set up in 2003 as a partnership between Mr Sudhershan
Singh Rathore and his family; it was reconstituted as a private
limited company in 2006. The company trades in stainless steel
products in the form of sheets, plates, and coils. It is based in
Secunderabad, Telangana.

Profit after tax (PAT) stood at INR0.6 crore on net sales of INR
101.1 crore for fiscal 2016, vis-a-vis INR 0.6 crore and INR 97.9
crore, respectively, for fiscal 2015.


SONI GINNING: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Soni Ginning
Factory (SGF) a Long-Term Issuer Rating of 'IND B+'.  The Outlook
is Stable.  The agency has taken this rating action on its fund-
based limits:

   -- INR60 mil. Fund based working capital limit assigned with
      IND B+/Stable rating

                         KEY RATING DRIVERS

The ratings reflect SGF's small scale of operations and weak
credit metrics.  Revenue reported by the company in FY16 was
INR147 million (FY15: INR233 million).  EBITDA margin was 2.8% in
FY16 (FY15: 4.4%), gross interest coverage (EBITDA/interest) was
1.4x (1.4x) and net leverage (net debt/EBITDA) was 7.4x (7.5x).

The liquidity of the company, however, was comfortable with the
average utilization of its fund-based limits being around 15%
during the six months ended December 2016.

The ratings benefit from its founders' experience of more than
three decades in the cotton ginning business.

                       RATING SENSITIVITIES

Positive: A positive rating action may result from substantial
improvement in the scale of operations along with improvement in
the credit metrics of the company.

Negative: A negative rating action may result from deterioration
in the credit metrics.

COMPANY PROFILE

SGF is a Sendhwa-based cotton ginning factory, manufacturing raw
cotton seeds and lint with a daily production capacity of 200
bales.


SOUTHERN COOLING: CRISIL Reaffirms B- Rating on INR12MM Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on
the bank facilities of Southern Cooling Towers Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          13       CRISIL A4 (Reaffirmed)
   Cash Credit             12       CRISIL B-/Stable (Reaffirmed)
   Long Term Loan           0.9     CRISIL B-/Stable (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility       4.1     CRISIL B-/Stable (Reaffirmed)

The ratings continue to reflect the company's stretched liquidity
and large working capital requirement. These weaknesses are
partially offset by its established presence and its promoter's
extensive experience in the cooling tower industry.

Key Rating Drivers & Detailed Description
Weaknesses
* Working capital-intensive operations: SCTPL had gross current
assets of 417 days as on March 31, 2016. Low bargaining power
with major customers leads to stretched payments. However, a part
of the working capital requirement was funded through payables,
at 201 days as on March 31, 2016. The company imports PVC
(polyvinyl chloride) and other plastic products directly from
Malaysia and Indonesia against usance letters of credit (LCs). It
had substantial inventory of 180 days as on March 31, 2016 as it
has to stock a variety of products, such as fan assembly, drive
shafts, gear boxes, nozzles, grids, and neoprene rubber inserts,
to assist customers during emergency.

* Stretched liquidity: On account of elongated collection period
the, bank limits of the company remained almost fully utilised
with instances of overutilization, which is generally regularised
in 7-10 days. The company was unable to take up contracts in
fiscal 2016 because of stretched liquidity, resulting in a drop
in revenue to INR27.54 crore in from INR32.67 crore in fiscal
2015.

Strength
* Established presence and promoter's extensive experience in the
cooling tower industry: SCTPL, incorporated in 1982, is the first
Indian multinational cooling tower company having an overseas
manufacturing unit (in Thailand). Its chairman Mr S K Mitra has
industry experience of 42 years and worked with Marley-USA for 14
years, which has helped the company obtain contracts from
established public sector undertakings such as National Thermal
Power Corporation (NTPC), Hindustan Petroleum Corporation Ltd
(HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil
Corporation Ltd (IOCL), Indian Oxygen Ltd (IOL), and Hindalco
Industries Ltd. The company also has a large number of mid-sized
and small customers. SCTPL designs its products with the help of
MRL software approved by Cooling Technology Institute ' Texas,
USA, and has start-of-the-art CAD facilities. The company has a
wide geographical reach with six marketing offices in India, and
overseas associates. It has two manufacturing units in Kolkata,
one in Vadodara, Gujarat, and one in Bangkok. Its strong presence
in the Asia Pacific, the Middle East, and Africa keeps it ahead
of many competitors.
Outlook: Stable

CRISIL believes SCTPL will benefit from its established presence
in the cooling tower industry. The outlook may be revised to
'Positive' if there is more than expected increase in revenue and
profitability, or better working capital management, leading to
an improvement in liquidity. The outlook may be revised to
'Negative' if the financial risk profile weakens because of low
revenue and profitability, or sizeable, debt-funded capital
expenditure.

SCTPL, incorporated in 1982, is India's first ISO 9001:2008
certified company in cooling towers. It manufactures and sells a
variety of wet industrial cooling towers and spare parts. It is
promoted by the Mr S K Mitra (chairman), who has industry
experience of 42 years.

Profit after tax (PAT) was INR34 lakh on revenue of INR27.54
crore in fiscal 2016, against a PAT of INR41 lakh on revenue of
INR32.67 crore in fiscal 2015.

Status of non-cooperation with previous CRA: SCTPL has not
cooperated with ICRA Ratings which was suspended its rating vide
release dated May 09, 2016. The reason provided by ICRA Ratings
is non-furnishing of information required for monitoring of
ratings.


SRC LABORATORIES: CRISIL Upgrades Rating on INR9.75MM Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating to 'CRISIL B/Stable' from 'CRISIL
B-/Stable' rating to the long-term bank facilities of SRC
Laboratories Private Limited.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Proposed Long Term      2.4        CRISIL B/Stable (Upgraded
   Bank Loan Facility                 from 'CRISIL B-/Stable')

   Term Loan               9.75       CRISIL B/Stable (Upgraded
                                      from 'CRISIL B-/Stable')

The rating upgrade reflects improvement in the scale of
operations of the company backed by ramp up in its scale of
operations on account of healthy orders from its customers. The
rating upgrade also reflects SLPL's exposure to risks related to
initial stages of operations for the company and to intense
competition in the API manufacturing segment. These rating
weaknesses are partially offset by the extensive industry
experience of the promoters.

Key Rating Drivers & Detailed Description
Weakness
* Intense competition in the API manufacturing segment: SLPL, as
an API supplier for the generics industry, is exposed to intense
competition, price erosion, and commoditisation in regulated
markets. Rapid growth in the global generics markets, coupled
with a focus on cost-containment by healthcare authorities in
individual countries, has attracted numerous pharmaceutical
players to the market. The revenue growth in the global generics
market is, however, constrained by several factors, such as
intense competition, especially related to blockbuster drugs
going off-patent, and aggressive defence tactics by innovator
companies through the introduction of authorised generics. In
addition, players in the regulated generics markets in the US and
Europe are vulnerable to pricing pressures because of the entry
of several cost-competitive Indian players. CRISIL believes that
SLPL continues to remain exposed to intense competition in the
API manufacturing segment.

Strength
Promoter's experience in the pharmaceutical segment: SLPL was
incorporated by its managing director, Dr. R C Reddy Yeluri, who
holds a doctorate degree from S K University (Anantapur). At a
very young age he started SRC Labs with all modern equipment,
satisfying all industry norms. Prior to that, he had a long
career in Mylan Laboratories Ltd and in Dr. Reddys Laboratories
Ltd.'s research and development division. Based on the extensive
experience he gained while working in these organisations,
Mr.Reddy started the company.  Dr. RC Reddy Yeluri started SLPL
in 2009 and was into manufacturing of fine and specialty
chemicals used for R&D, for pharma companies like Biocon and
Adventium on trial run basis to gain expertise in manufacturing
of chemicals for the pharma industry. Subsequently, he started
the API manufacturing unit in Raichur.

SLPL is expected to benefit over the medium term from the
promoter's extensive industry experience.
Outlook: Stable

CRISIL believes that SLPL will continue to benefit from the
promoter's extensive experience in the fine chemicals and bulk
drugs manufacturing segment. The outlook may be revised to
'Positive', in case of better than expected accrual on the back
of earlier-than-expected project stabilisation. Conversely, the
outlook may be revised to 'Negative' if there is a sizeable cost
overrun in the project or delays in stabilising the project,
impacting the company's financial risk profile.

SLPL was established by Dr. R C Reddy Yeluri in 2009 with a
research and development facility in Hyderabad. It was engaged in
manufacturing of fine and specialty chemicals until 2015. The
company stopped manufacture of fine chemicals during 2014-15 and
has set up an API manufacturing unit, which has commenced
commercial production from February 2016.

During 2015-16 (refers to financial year April 1 to March 31),
SLPL reported revenues of INR1.82 crore with negative PAT.


SRI SRINIVASA: CRISIL Raises Rating on INR6MM Cash Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Sri
Srinivasa Agro Products to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              6        CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Proposed Long Term       1        CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

The rating upgrade reflects improvement in the company's
liquidity, backed by its increasing cash accruals and cushion in
the bank lines. SSAP is expected to generate net cash accrual of
INR 47 lacs in FY 2016-17 against which there is no fixed debt
repayment obligation. The bank lines was moderately used at 51
per cent for the trailing 10 months ending January 2017.

The rating reflects SSAP's modest scale of operations, exposure
to customer concentration risk, and below-average financial risk
profile because of high gearing. These weaknesses are partially
offset by promoters' extensive experience in the rice industry.
Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations and intense competition
SSAP has a modest scale of operations with expected revenues of
around INR36 cr.in 2016-17 (refers to financial year, April 1 to
March 31). Though the firm has been in existence for more than 20
years, the size has remained modest.

* Customer concentration risk:
About 50.0 percent of the rice is sold to Metro cash and Carry.
The firm has no formal contract for the same, and in case of any
future dissolvement of the relationship with the customer, the
revenues would be impacted. Hence customer concentration risk in
the modest scale of operations remains a key rating sensitive
factor.

* Below-average financial risk profile:
SSAP's financial risk profile is marked by high gearing and low
net worth. The firm's net worth is low expected at around INR 60
lakhs as on March 31, 2017.

Strength
* Extensive experience of promoter
SSAP is promoted by Mr. Shekar who has been in the trading of
rice since 1991. The promoter started a rice trading firm in 1991
on a small scale and subsequently went on to establish a rice
milling firm.
Outlook: Stable

CRISIL believes SSAP will benefit over the medium term from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if financial risk profile improves because
of higher-than-expected cash accruals or significant capital
infusion resulting in a better capital structure. Conversely, the
outlook may be revised to 'Negative' in case of aggressive, debt-
funded expansion, or steep decline in revenue and profitability,
or substantial capital withdrawal, leading to deterioration in
financial risk profile.

SSAP was set up in 1991 as a proprietorship firm by Mr. S. Shekar
and was reconstituted as a partnership firm in 2015. The firm is
into trading and processing of non-basmati 'Kolam' rice. It sells
its products under various brands, including S, Keerti, Colours,
and Sky.

For fiscal 2016, the SSAP reported a profit after tax of INR
13.22 lakhs on net sales of INR31.29 crore, as against a profit
after tax of INR 13.29 lakhs on net sales of INR30.83 cr for
fiscal 2015.


STATE BANK: Moody's Rates MTN Capital Securities Component (P)B1
----------------------------------------------------------------
Moody's Investors Service announced that on September 6, 2016, it
assigned a (P)B1 rating to the perpetual capital securities
component of the existing USD10 billion Medium Term Note (MTN)
program of State Bank of India (SBI, deposits Baa3 positive, BCA
ba1).

Prior to September 2016, Moody's had assigned a (P)Baa3 rating to
the senior unsecured component, a (P)Ba1 rating to the
subordinated component, a (P)Ba2 rating to the junior
subordinated component, and a (P)Prime-3 rating to the short-term
component of the MTN programme.

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

The securities can be issued by SBI directly, or by any of its
branches outside India.

RATINGS RATIONALE

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

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

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

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

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

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

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

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

WHAT COULD CHANGE THE RATINGS UP/DOWN

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

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

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

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

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

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

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

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


SUBHKARAN AND SONS: CRISIL Cuts Rating on INR50MM Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank facility
of Subhkaran and Sons to 'CRISIL D' from 'CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Letter of Credit         50       CRISIL D (Downgraded from
                                     'CRISIL A4+')

The downgrade reflects recent instances of letter of credit
devolvement due to cash flow mismatches, leading to stretched
liquidity.
Analytical Approach

For arriving at the rating, CRISIL has now rated SAS on
standalone basis against previous approach to rate on
consolidation with its associates. The revision in approach is
following track record of no funds fungibility within the
associates, despite common promoters.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Due to significant stretch in
realisation of payments from key customers, liquidity has
stretched. Furthermore, the operating margin dipped to 0.98% in
fiscal 2016 from 1.1% in fiscal 2015 and 2.5% in fiscal 2014.
Thus, weakening the debt protection metrics.

Strength
* Moderate scale of operations: The company has moderate scale of
operations, reflected in revenue INR106 crore in fiscal 2016. Its
promoters' have experience of over two decades in the steel
industry, and have established relationships with key buyers and
suppliers.

Incorporated in 1981 by Mr Vinod Jatia and Mr Prateek Jatia, SAS
trades in iron and steel products such as hot- and cold-rolled
coils, sheets, and plates, sponge iron lumps, and fines.

Profit after tax was INR0.43 crore on trading income of INR106.18
crore in fiscal 2016, vis-a-vis INR1.91 crore and INR107.74
crore, respectively, in fiscal 2015.


SUBRAHMANYESWARA SWAMY: CRISIL Puts B- Rating on INR5.79MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-
term bank facilities of Subrahmanyeswara Swamy Rice Mill (SSRM).

                           Amount
   Facilities            (INR Mln)      Ratings
   ----------            ---------      -------
   Proposed Long Term
   Bank Loan Facility        3.21       CRISIL B-/Stable

   Cash Credit               1.00       CRISIL B-/Stable

   Long Term Loan            5.79       CRISIL B-/Stable

The rating reflects a small scale of operations in the intensely
competitive rice-milling industry, and susceptibility to changes
in government regulations and to volatility in raw material
prices. The rating also factors in a weak financial risk profile
because of a small networth, high gearing, and low debt
protection metrics. These weaknesses are mitigated by the
extensive industry experience of the promoters, and an
established relationship with customers and suppliers.

Key Rating Drivers & Detailed Description
Weaknesses

* Small scale of operations in an intensely competitive industry:
Revenue was INR3.85 crore in fiscal 2016; the small scale of
operations constrains the bargaining power of the firm and
exposes it to pricing pressure.

* Susceptibility to changes in regulations and to volatility in
raw material prices: For a rice-milling company, raw material
accounts for 90% of the total revenue, which exposes the firm to
risks relating to volatility in raw material prices. Moreover,
the domestic rice industry is highly regulated in terms of paddy
prices, export/import policies, and rice release mechanism, which
affects the credit quality of players.

* Below-average financial risk profile: The networth was low at
INR0.2 crore as on March 31, 2016. The debt protection metrics
were weak with interest coverage ratio of 1.4 times for fiscal
2016.

Strength
* Extensive industry experience of the promoters: The promoters
have an experience of more than three decades in the rice-milling
industry. This has enabled the firm to establish a strong
relationship with customers and suppliers.
Outlook: Stable

CRISIL believes SSRM will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if substantial increase in revenue and
profitability or significant infusion of capital leads to a
stronger financial risk profile, particularly capital structure.
The outlook may be revised to 'Negative' if any large debt-funded
capital expenditure or withdrawal of capital by the promoters
weakens the financial risk profile.

SSRM was established in 1983, promoted by Mr V Peddanna , Mr V
Rajendra Prasad, and their family members. The firm mills and
processes paddy into rice, rice bran, broken rice, and husk. It
has an installed paddy milling capacity of 4 tonne per hour (tph)
at its mill in Guntur, Andhra Pradesh.

Profit after tax was INR0.1 crore on revenue of INR3.9 crore in
fiscal 2016, vis-a-vis INR0.1 crore and INR5.1 crore,
respectively, in fiscal 2015.


SUPERWAYS ENTERPRISES: CRISIL Cuts Rating on INR100MM Loan to D
---------------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank
facilities of Superways Enterprises Private Limited to 'CRISIL D'
from 'CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Letter of Credit        100       CRISIL D (Downgraded from
                                     'CRISIL A4+')

The downgrade reflects recent instances of letter of credit
devolvement due to cash flow mismatches; leading to stretched
liquidity.
Analytical Approach

For arriving at rating, CRISIL has now rated SEPL on standalone
basis against previous approach to rate on consolidation with its
associates. The revision in approach is following track record of
no funds fungibility within the associates, despite common
promoters.
Key Rating Drivers & Detailed Description
Weakness
* Weak financial risk profile: Due to significant stretch in
realisation of payments from key customers, liquidity has
stretched. Furthermore, the operating margin declined to 0.3% in
fiscal 2016 from 1.4% in fiscal 2015 and 1.8% in fiscal 2014.
Thus, weakening the debt protection metrics.

Strength
* Moderate scale of operations: Revenue increased to INR251 crore
in fiscal 2016 from INR226 crore in fiscal 2015, reflecting
moderate scale of operations. Its promoters' have experience of
over two decades in the steel industry, and have established
relationships with key buyers and suppliers.

Incorporated in 1989 by Mr Vinod Jatia and his family, SEPL
trades in iron and steel products such as hot- and cold-rolled
coils, sheets, and plates, sponge iron lumps, and fines.

Profit after tax was INR1.09 crore on trading income of INR251.53
crore in fiscal 2016, vis-a-vis INR1.63 crore and INR226.37
crore, respectively, in fiscal 2015.


T C COMMUNICATION: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned T C
Communication Private Limited (TCCPL) a Long-Term Issuer Rating
of 'IND B+'.  The Outlook is Stable.  The instrument-wise rating
actions are:

   -- INR120 mil. Fund-based limit assigned with
      IND B+/Stable/IND A4 rating; and

   -- INR30 mil. Non-fund-based limit assigned with IND A4 rating

                        KEY RATING DRIVERS

The ratings reflect TCCPL's moderate scale of operations and weak
credit metrics.  Revenue was INR392.57 million in FY16 (FY15:
INR415.64 million; FY14: INR362.07 million).  The decline in FY16
revenue was largely due to a slowdown in the power and
infrastructure sectors.  In FY16, net leverage (total adjusted
net debt/operating EBITDAR) was 6.87x (FY15: 6.42x; FY14: 7.55x)
and interest coverage (operating EBITDA/gross interest expense)
was 1.41x (FY15: 1.36x; FY14: 1.48x).

The ratings also reflect the working capital intensive nature of
its business and competitive intensity in the wire and cable
industry.  TCCPL's working capital cycle was elongated at 173
days in FY16 (FY15: 150 days, FY14: 161 days), mainly due to
elevated inventory levels and high debtor days.  However, its
liquidity position was comfortable, indicated by a working
capital utilization of 81.92% during the 12 months ended January
2017, as it has unsecured loans from directors and related
parties.

The ratings, however, are supported by a satisfactory EBITDA
margin of 6.57% (FY15: 6.53%; FY14: 6.39%), its promoters' more
than 15 years of experience in cable and wire manufacturing, and
an established client base.

                       RATING SENSITIVITIES

Negative: Any decline in revenue or deterioration in EBITDA
margin/working capital cycle leading to a sustained deterioration
in credit metrics will be negative for the ratings.

Positive: Substantial revenue growth, along with an improvement
in EBITDA margin, leading to a sustained improvement in credit
metrics will lead to a positive rating action.

COMPANY PROFILE

Established in 2000, TCCPL manufactures a wide range of wires and
cables.  It provides power, control, instrumentation,
compensating and extension, telephone and elastomer cables.

TCCPL is an ISO 9001: 2008 certified company. Its manufacturing
plant is in Ghaziabad.  The plant has a production capacity of
7.5 million metres per annum and a utilization level of 58.66%.


TERRA ENERGY: ICRA Raises Rating on INR20.16cr Loan to B+
---------------------------------------------------------
ICRA has upgraded the long term rating assigned to INR9.89 crore
term loans (revised from INR28.65 crore), INR8.95 crore long term
fund based facilities (revised from INR7.0 crore) and INR20.16
crore proposed long term fund based limits (revised from INR3.35)
of Terra Energy Limited from [ICRA]D to [ICRA]B+. ICRA has also
upgraded the short term rating outstanding on INR1.50 crore
(revised from INR7.67 crore) from [ICRA]D to [ICRA]A4. The long
term rating carries stable outlook.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Term Loans             9.89        [ICRA]B+(stable); upgraded
                                     from [ICRA]D

  Long term fund
  based                  8.95        [ICRA]B+(stable); upgraded
                                     from [ICRA]D

  Proposed Fund
  Based Limits          20.16        [ICRA]B+(stable); upgraded
                                     from [ICRA]D

  Short Term Non
  Fund Based Limits     11.00        [ICRA]A4; upgraded from
                                     [ICRA]D

Rationale
ICRA's rating action follows regularisation of debt servicing
obligations by the company. ICRA has taken a consolidated view of
the Company - along with group entities - Shree Ambika Sugars
Limited (rated [ICRA]B) and Thiru Arooran Sugars Limited (rated
[ICRA]B+/[ICRA]A4), due to operational and financial linkages and
corporate guarantees extended. TEL has barter arrangement with
the parent company - Thiru Arooran Sugars Limited for bagasse,
steam and power. While the company has healthy capital structure
with moderate gearing (0.78x as on March 31, 2016), it has
witnessed moderation in revenue and top-line in the last few
years, although there was some improvement during FY16. Moreover
ICRA takes note of the continued dispute with TANGEDCO over the
billing rate, with the Company recognizing revenues at a higher
rate than the rate at which TANGEDCO is settling the bills. This
coupled with general delays in settling the receivables by
TANGEDCO, has resulted in high receivable position for the
Company, putting pressure on the liquidity profile. The disputes
are being heard at the appropriate authorities and any adverse
outcome may have impact on company's financial position and is a
rating sensitivity factor.

Key rating drivers:
Credit Strengths
   * Operational power purchase agreement (PPA) with TANGEDCO
     for sale of generated power which is valid till 2019.

   * Bagasse sharing agreement with its holding company, Thiru
     Arooran Sugars Limited (TASL) mitigates the raw material
     risk for the company to some extent. Moreover, in case of
     low availability of bagasse from TASL, TEL can use coal
     as fuel.

   * Moderately geared capital structure

Credit Weakness
   * Delays in payments by TANGEDCO coupled with settling of
     bills at a lower rate than invoice rate have resulted in
     built-up of debtors in TEL's books, and tight liquidity
     conditions.

   * Fixed tariff model makes the company's profitability
     vulnerable to fuel availability at competitive prices

   * Corporate guarantees extended to the group company- Thiru
     Arooran Sugars Limited.

Sensitivities
   * Outcome of the dispute with TANGEDCO being heard at
     appropriate authorities

Description of Key Rating Drivers Highlighted:

Terra Energy Limited was incorporated in March 2000, following
the demerger of the cogeneration plants of TASL. It has installed
capacity of 47.1 MW, which includes both the cogeneration plants
located at Cuddalore and Thanjavur districts. The primary
customer of the company is TASL, to which the company supplies
electrical power and steam for meeting the requirements of sugar
operations. The excess power over and above the sugar unit's
requirements is sold to TANGEDCO, which accounts for ~40-45% of
total power generated.

TEL primarily uses bagasse (supplied by TASL) as its fuel to
generate power and hence the operational performance of TASL in
terms of cane crushing volumes has a direct impact on the
company's turnover and profitability. During the years of low
cane crushing, TEL has resorted to power generation through coal
to meet the power and steam requirements of the sugar units. As a
result, of significant operational and financial dependence of
TEL on TASL, the credit risk profile of TEL is significantly
governed by credit profile of TASL. Further both companies have
given cross guarantees to each other.

TEL has entered into 15 year PPA arrangement with TANGDECO, which
is valid till 2019 and sale to TANGEDCO accounts for ~70% of its
operating income. However, there is a dispute between TANGEDCO
and TEL over the power purchase price and the former is settling
the power purchase price at a lower rate than the invoiced rate,
which coupled with delays in payment by TANGEDCO has resulted in
buildup of receivables and pressure on liquidity. The company has
also witnessed moderation in revenue and profitability in the
last few years, although there has been improvement in FY16. The
capital structure of the Company also remains healthy with
gearing of 0.78x as on March 31, 2016. Nonetheless, the outcome
of the disputes with TANGDECO being heard at the appropriate
authorities is a rating sensitivity factor.

Terra Energy Limited was incorporated in March 2000, following
the demerger of the cogeneration plants of TASL. It has installed
capacity of 47.1 MW. TASL is the holding company of TEL with 66%
shareholding. These cogeneration plants are located adjacent to
the sugar plants of TASL and TEL has barter arrangement with TASL
for supply of steam and power in lieu of bagasse. TEL exports
surplus power to TANGEDCO.


THIRU AROORAN: ICRA Assigns B+ Rating to INR235.03cr Loan
---------------------------------------------------------
ICRA has upgraded/assigned the long term rating assigned to
INR29.70 crore term loans (revised from INR101.7 crore), INR56.84
crore long term fund based facilities (revised from INR200.3
crore), INR16.11 crore proposed long term fund based limits
(revised from INR29.5 crore) and INR235.03 crore long term non
fund based facilities of Thiru Arooran Sugars Limited from
[ICRA]D to [ICRA]B+. ICRA has also upgraded the short term rating
outstanding on INR1.50 crore (revised from INR7.67 crore) from
[ICRA]D to [ICRA]A4. The long term rating carries stable outlook.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Term Loans             29.70      [ICRA]B+(stable); upgraded
                                    from [ICRA]D

  Long term fund
  Based                  56.84      [ICRA]B+(stable); upgraded
                                    from [ICRA]D

  Proposed Fund
  Based Limits           16.11      [ICRA]B+(stable); upgraded
                                    from [ICRA]D

  Long Term Non
  Fund Based Limits     235.03      [ICRA]B+(stable) assigned

  Short Term Non
  Fund Based Limits       1.50      [ICRA]A4; upgraded from
                                    [ICRA]D

Rationale
ICRA's rating action follows the regularisation of servicing of
debt obligations by the company. ICRA has taken a consolidated
view of the Company- along with group entities - Shree Ambika
Sugars Limited (rated [ICRA]B) and Terra Energy Limited (rated
[ICRA]B+/[ICRA]A4), due to operational and financial linkages and
corporate guarantees extended. ICRA takes note of the improvement
in outlook for the Company's core sugar business operations on
the back of increase in the domestic sugar realizations supported
by lower domestic sugar production during SY2016, exports of 1.6
million MT and the expectations of further decline in the
domestic sugar production in SY2017. This is expected to support
the contribution margins from sugar produce in the near term.
Further, TASL has also benefited from gain on the closing sugar
inventory as on March 31, 2016 during H1 FY2017 with the average
sugar prices prevailing around INR33,500-35,000/MT. TASL has
replaced part of the high cost term loans and the working capital
facilities by low cost trade advances (backed by export
performance bank guarantee against future sugar export
obligation) which is expected to result in reduction in the
interest expenses. While ICRA takes note of the improved sugar
realizations and hence improvement in financial performance
during H1 2016-17, any further increase in the profitability and
debt coverage metrics of TASL is linked to the quantum of
increase in the cane crushing volumes, from a low level of 5.45
lakh MT in FY2016 in relation to the company's crushing capacity.
Further, the cash accruals are expected to be lower than the debt
repayment along with the trade advance obligation during FY2017.
However, upfront interest and commission payment for FY2017 (for
trade advance) and ability to liquidate stocks with reduced
drawing power restrictions, offer some comfort from the debt
servicing perspective. ICRA also draws some comfort from TASL's
past track record in sugar exports, which will help it in meeting
the commitments under the trade advance arrangement. The ratings
continue to factor in TASL's fully integrated nature of
operations with cogeneration and distillery units which provide
alternate revenue streams and some cushion against cyclicality in
sugar business. The ratings also take into consideration TASL's
experienced management, the dominant position of the company in
its command area and proximity of the plants of the company to
ports which it has used favorably to export sugar in the recent
past. ICRA also takes note of the Company's plans to enter into
contract manufacturing to mitigate the impact of cyclicality in
the sugar sector and early firming up of contract will be a key
rating sensitivity factor.

The ratings remain constrained by the weak capital structure of
the Company on the back of steep erosion of net worth witnessed
due to continued losses during FY2014-FY2016, which coupled with
high outside liabilities (which include total debt, trade
advances and creditors) has resulted in high total outside
liabilities/ tangible net worth of 8.15 times as on March 31,
2016. The ratings are also constrained by the company's exposure
to forex fluctuation on the trade advance availed against future
sugar exports given that the equivalent amount must be repaid in
USD in the event of the company not honouring the sugar export
obligation. The ratings also consider the vulnerability of sugar
operations to agro climatic variations and government policies
relating to cane pricing and exports.

Key rating drivers:
Credit Strengths
   * Long operating history in sugar business, experienced
     management and proximity of the plants of the company to
     ports which it has used favorably to export sugar in the
     recent past

   * TASL's integrated operations into distillery provides
     cushion to profitability against the cyclicality in sugar
     business

   * Improvement in the domestic sugar realizations to support
     the profitability from the sugar division when compared to
     the previous years

   * Replacement of large part of high cost term loans and
     Working capital facilities by low cost trade advances
     (backed by export performance bank guarantee against future
     sugar export obligation) to result in reduction of interest
     expenses and mitigate liquidity pressure to some extent.

Credit Weakness
   * Weak contribution margins from sugar division on account
     of relatively high cane cost of production and low sugar
     realizations, have resulted in continued losses at the net
     level since FY2014, leading to erosion of net worth. This
     coupled with high outside liabilities (which majorly include
     total debt, trade advance and creditors) has resulted in
     high TOL/TNW of 8.15 times as on March 31, 2016

   * While sugar realizations have improved, improvement in
     profitability will depend on the quantum of cane crushed
     which have been subdued in the recent past.

   * Pressure on coverage metrics;however interest and commission
     payment for FY2017 (for trade advance) and ability of the
     company to meet trade advance obligation through exports
     (based on its past track record), mitigate the impact in
     near term.

   * Company's financial performance remains vulnerable to
     cyclicality inherent in the business, agro-climatic risks,
     forex risks and Gov't policies relating to cane pricing and
     export/import of sugars.

   * Corporate guarantees extended to group companies namely-
     Terra Energy Limited and Shree Ambika Sugars Limited

Sensitivities
   * Early firming up of the contract manufacturing agreement and
     quantum of potential income from the same

   * Quantum of cane crushed during the current season

Description of Key Rating Drivers Highlighted:

Thiru Arooran Sugars Limited operates two sugar plants, one each
in Cuddalore and Thanjavur districts of Tamil Nadu (TN). It has a
total of 8,500 TCD of cane crushing capacity and a 60 klpd
distillery. Its units are also integrated with 47.10 MW
cogeneration units of its subsidiary Terra Energy Limited, with
which it has barter arrangement for supply of steam and power.
TASL and its associate company SASL, with their large crushing
capacity form one of the dominant players in their command area,
and have also regularly used their proximity to port in importing
raw sugar or in exporting sugar.

During the past few years, the company had witnessed moderation
in financial performance on account of subdued sugar prices
relative to cane cost, low cane availability impacting capacity
utilization resulting in net losses since FY14 and operating
losses during FY16. The continued losses and the subsequent
erosion in net worth coupled with high outside liabilities (which
include total debt, trade advances and creditors) had resulted in
weakening of capital structure, with high total outside
liabilities/ tangible net worth of 8.15 times as on March 31,
2016. The weak performance and the resultant liquidity pressure
also resulted in delays in debt servicing by the Company during
FY16. However, the Company managed to raise ~Rs. 235.0 crore (USD
35 million) as trade advance from Cargill Inc. against staggered
export commitments spread over nine years. The trade advance is
backed by export performance guarantees extended by banks. The
proceeds from the advance were used to replace high cost term
loan and working capital facilities, which is expected to result
in reduction in overall interest expenses.

The Company has subsequently regularised its debt servicing.
While ICRA takes note of the improved sugar realizations and
improvement in financial performance during H1 2016-17, any
further increase in the profitability and debt coverage metrics
of TASL is linked to the quantum of increase in the cane crushing
volumes, from a low level of 5.45 lakh MT in FY2016 in relation
to the company's crushing capacity. Further, the cash accruals
are expected to be lower than the debt repayment along with the
trade advance obligation during FY2017. However, upfront interest
and commission payment for FY2017 (for trade advance) and ability
to liquidate stocks with reduced drawing power restrictions,
offer some comfort from the debt servicing perspective. ICRA also
draws some comfort from TASL's past track record in sugar
exports, which will help it in meeting the commitments under the
trade advance arrangement.
The ratings also factor in the susceptibility of company's
performance to cyclicality inherent in the business, agro-
climatic risks, forex risks and Gov't policies relating to cane
pricing and export/import of sugars.

ICRA also takes note of the company's efforts to enter into
contract manufacturing to mitigate the impact of cyclicality in
the sugar business. Early firming up of the contract and quantum
of potential income from the same remain a key rating sensitivity
factor.

Analytical approach:
ICRA has taken a consolidated view of the Company - along with
group entities - Shree Ambika Sugars Limited (rated [ICRA]B) and
Terra Energy Limited (rated [ICRA]B+/[ICRA]A4), due to
operational and financial linkages and corporate guarantees
extended.

Thiru Arooran Sugars Limited is one of the oldest sugar companies
in India and was incorporated in 1954. Its sugar plants are based
in Cuddalore and Thanjavur districts of Tamil Nadu. It has 8500
TCD of cane crushing capacity in its two plants, and a 60 klpd
distillery. Its units are also integrated with 47.10 MW
cogeneration units of its subsidiary Terra Energy Limited (TASL
holds 66.19% stake in Terra Energy Limited), with which it has
barter arrangement for supply of steam and power.


TRUWOODS PRIVATE: ICRA Reaffirms B+ Rating on INR7.0cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
INR7.00 crore fund based limits and also reaffirmed the short
term rating of [ICRA]A4 assigned to INR13.00 crore non fund based
limits of Truwoods Private Limited. The outlook on the long term
rating is stable.

                          Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Fund Based Limits        7.00      [ICRA]B+ (Stable) Reaffirmed

  Non Fund Based Limits   13.00      [ICRA]A4 Reaffirmed

Rationale
The reaffirmation of the ratings is constrained by the weak
financial profile of the company with thin operating
profitability of ~2.75% for the past two years and modest
coverage metrics with interest coverage ratio of 1.68 times and
NCA/Debt of 4% for FY2016; moderate scale of operations with
revenues of INR62 crore in FY2016 driven by increased timber
trading and high sea sales; and vulnerability of profitability to
raw material and exchange rate fluctuations. The ratings are
further constrained by the weak outlook for the timber and
plywood industry due to lower availability of quality timber
after the imposition of ban by Myanmar; company's presence in a
highly competitive timber and plywood industry with numerous
reputed and unorganized players and the threat from upcoming
substitutes such as like Medium Density Fibre (MDF) and particle
boards.

The ratings, however, favourably factor in the vast experience of
the promoter in the timber plywood industry; and proximity to the
Visakhapatnam port which results in the easy access of imported
timber.

Going forward, the ability of the company to increase its scale
of operations, improve profit margins and managing its working
capital requirements effectively will be the key rating
sensitivities from credit perspective.

Key rating drivers
Credit Strengths
   * Experienced management with more than two decades of
     experience in the plywood industry with well established
     relations with suppliers and customers

   * Proximity to Visakhapatnam port reduces transportation costs
     for import of raw materials

Credit Weakness
   * Weak financial profile reflected in thin profitability,
     modest coverage indicators with interest coverage ratio of
     1.68 times and NCA/TD of 4% for FY2016

   * Small scale of operations with low profitability metrics
     owing to the limited value addition and trading business

   * Exposure of the products of the company to competition from
     upcoming substitutes like Medium Density Fibre (MDF) and
     particle boards

   * Vulnerability of profitability margins to raw material price
     and exchange rate fluctuations

   * Highly fragmented nature of plywood manufacturing industry
     resulting in stiff competition with presence of numerous
     players in both the organized and unorganized market

Description of key rating drivers highlighted:

TPL is part of the Deccan Group, which has a history of about two
decades in the timber and plywood business. It has a plywood and
veneer manufacturing facility in Visakhapatnam which results in
reduced logistic costs involved in purchase of raw material which
is largely imported. The company markets their plywood and other
timber products through a network of more than 300 dealers across
the country.

The company's financial profile has continued to remain weak due
to thin profitability resulting in weak debt coverage metrics in
FY2016. The company's production and sales of veneer have
steadily declined over the past three years with increased
restrictions on import of Myanmar timber besides lower demand for
the weaker quality logs and veneer of other countries. However,
the growth in turnover over the past 2-3 years was supported by
the increase in trading income derived from increase in high sea
sales and timber log sales during this period. The company's
profitability is also exposed to raw material and exchange rate
fluctuation risks in the absence of hedging its payments for
imports. Further, the company, like all other players in the
industry, faces threat from emerging substitutes such as Medium
Density Fibre (MDF) and particle boards and competition from
numerous other players in the plywood industry.

Incorporated in 2001 as a private limited company, Truwoods Pvt.
Ltd. is engaged in manufacturing of decorative plywood and
veneers. The company is part of the Deccan Group, which has a
history of about two decades in the plywood business. The other
group companies include Deccan Veneers Pvt. Ltd., Maxworth
Plywoods Pvt. Ltd. (rated [ICRA]B+/[ICRA]A4), Alpine Panels Pvt.
Ltd. (rated [ICRA]B/[ICRA]A4), Indus Tropics Ltd, etc.; all
involved in the plywood and veneer related business. TPL has its
veneer and plywood manufacturing facility in Visakhapatnam,
Andhra Pradesh.

Recent Results:
As per the audited results for FY2016, the company reported
operating profit of INR1.71 crore on turnover of INR62.63 crore
as against operating profit of INR1.48 crore on turnover of
INR53.33 crore during FY2015. As per the provisionals for
9mFY2017, the company reported an operating income of INR60.84
crore and profit after tax of INR0.69 crore.


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

   -- INR100 mil. Fund-based limits assigned with IND BB-/Stable
      rating;

   -- INR150 mil. Proposed non fund-based limits* assigned with
       Provisional IND A4+ rating

* The rating is provisional and the final rating will be assigned
subject to execution of sanction letter for the above facilities
to the satisfaction of Ind-Ra.

                          KEY RATING DRIVERS

The ratings reflect Ujala's small scale of operations and
moderate credit metrics.  During FY16, revenue declined to INR150
million (FY15: INR343 million) owing to a decline in iron ore
prices. However, operating margins increased to 7.9% in FY16
(FY15: 6.0%) as the company was able to increase the gap between
its procurement and selling price.  Interest coverage was 1.3x in
FY16 (FY15: 1.4x), while net leverage deteriorated to 5.2x (2.7x)
due to a decline in the top line.

The company expects revenue to increase substantially in FY17,
with around INR310 million already booked until January 2017.

The ratings are constrained by Ujala's tight liquidity position
with full utilization of fund-based working capital limits during
the 12 months ended December 2016.

However, the ratings benefit from the partners' over a decade-
long experience in the iron ore fines trading business.

                       RATING SENSITIVITIES

Positive: An improvement in the scale of operations and the
overall credit metrics will be positive for the ratings.
Negative: Deterioration in the overall credit profile will be
negative for the ratings.

COMPANY PROFILE

Incorporated on March 15, 2004, Ujala is a partnership firm
engaged in the trading of iron ore and iron ore fines.  Mr.
Ramesh Chandra Moharana and Mr. Anil Jaiswal are the partners.


VAKRANGEE FOUNDATION: Ind-Ra Affirms 'B+' Rating on INR35.3M Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed the rating on
Vakrangee Foundation's (VF) term loan at 'IND B+'.  The Outlook
is Stable.  Instrument-wise rating action is:

   -- INR35.3 mil. Term loans affirmed with IND B+/Stable rating

                         KEY RATING DRIVERS

Modest Scale of Operations: The rating reflects VF's small scale
of operations and financial performance basis operational tract
record of only five years.  In FY16 (Provisional), the society
recorded income of INR77.60 million (INR44.80 million in FY15)
and total expenses of INR76.95 million (INR51.24 million in
FY15); VF's tuition fee contributed on average 99.19% to the
total income during FY12-FY16.  Ind-Ra expects the income to grow
steadily in coming years.  VF reported INR0.65 million of net
surplus in FY16(P) as against the net deficit of INR6.44 million
in FY15.

Weak Liquidity Profile: The rating further reflects the society's
weak liquidity profile reflected in low balance sheet resources.
Available funds (cash and unrestricted investments) fell to
INR7.22 million in FY16 (P) from INR12.42 million in FY15.
Available funds covered only 14.32% operating expenditure and
9.43% debt in FY16 (P).  The society's balance sheet resources
provide moderate cushion relative to operating expenses and debt.

Debt Burden: VF's debt burden, - measured as debt/ current
balance before interest and depreciation (CBBID) - reduced to
2.81x in FY16(P) from 4.19x in FY14 on the back of an improvement
of CBBID to INR27.23 million from INR8.91 million.  However, Ind-
Ra expects the debt/CBBID to decrease further in coming years on
account of repayment of the existing loans and absence of any
major capital expenditure in the near future.

Growing Headcount: VF's student strength increased at a CAGR of
63.39% over FY12-FY16(P) to 1,575 students in FY16.  The
headcount increased 63.04% yoy in FY16 (FY15: 39.64%) and the
acceptance rate declined to 96.87% in FY16 from 100% in FY15.

Improved Coverage:  In FY16(P), debt service and CBBID increased
which resulted in improved debt service coverage ratio to 1.93x
from 0.88x in FY15.

                       RATING SENSITIVITIES

Positive: A substantial increase in the revenue base along with
improvement in liquidity ratios and debt service coverage ratio
could trigger a positive rating action.

Negative: Any unexpected fall in student demand, leading to fall
in the operating profitability, resulting in strained liquidity,
could trigger a negative rating action.

SOCIETY PROFILE

VF was established in July 2010, and is incorporated under the
Societies Registration Act, 1973.  The society was founded by
Mr. Manish Bohra and Mrs. Bhawna Bohra.  The society is running a
school by the name Academic World School in Bemetara in
Chhattisgarh.  The school curriculum is affiliated to Central
Board of Secondary Education, Delhi and has classes from Nursery
to XII.


VIKAS TRANSPORT: CRISIL Reaffirms B+ Rating on INR3.8MM Loan
------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of Vikas
Transport Co. at 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee         12        CRISIL A4 (Reaffirmed)
   Cash Credit             3.8      CRISIL B+/Stable (Reaffirmed)

The ratings reflect the firm's modest scale of operations in the
intensely competitive road transport business, and customer and
geographical concentration in revenue. These weaknesses are
partially offset by the extensive experience of its promoters.

Key Rating Drivers & Detailed Description
Weaknesses
*Modest scale of operations in competitive segment: Limited
value-added services and tender-based operations in an intensely
competitive industry have led to a small scale of operations.

*Customer and geographical concentration in revenue: Majority of
projects are from Jammu & Kashmir State Road Transport
Corporation and Food Corporation of India. Also, operations are
mainly confined to Jammu & Kashmir and Punjab.

Strength
*Extensive experience of promoters: With presence of more than 10
years in the transport segment, the promoters have been able to
win tenders and stabilise revenue.
Outlook: Stable

CRISIL believes VTC will benefit over the medium term from the
extensive experience of its promoters. The outlook may be revised
to 'Positive' in case of larger-than-expected topline,
diversification in customer profile, and improvement in
profitability. The outlook may be revised to 'Negative' if
increase in receivables, substantial debt-funded expansion, or
lower-than-expected cash accruals weakens financial risk profile.

Set up in 2000 in Jammu as a partnership firm by Mr. Paramjeet
Singh and his wife, Ms. Harvinder Kaur, VTC is engaged in bulk
road transport services.

Profit after tax (PAT) was INR1.49 crore on an operating income
of INR54.89 crore in fiscal 2016, vis-a' -vis a PAT of INR1.05
crore on an operating income of INR47.67 crore in fiscal 2015.


VIRAJ SYNTEX: CRISIL Reaffirms B+ Rating on INR4.15MM Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Viraj Syntex Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            4.15      CRISIL B+/Stable (Reaffirmed)

   Inland Guarantees      0.50      CRISIL A4 (Reaffirmed)

   Inland/Import
   Letter of Credit       1.00      CRISIL A4 (Reaffirmed)

   Packing Credit         1.35      CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     1.94      CRISIL B+/Stable (Reaffirmed)

   Term Loan              2.06      CRISIL B+/Stable (Reaffirmed)

The ratings reflect VSPL's modest scale of operations, average
financial risk profile marked by high gearing and large working
capital requirements. These weaknesses are partially offset by
the extensive industry experience of VSPL's promoters.

Key Rating Drivers & Detailed Description
Weaknesses
* Modest scale of operations: VSPL's business risk profile is
constrained by its modest scale of operations in the intensely
competitive industry with turnover of around INR15.77 crores for
2014-15.

* Average financial risk profile: Financial risk profile remain
average marked by high gearing of 2.5 times as on March 31, 2016
and comfortable debt protection metrics with interest coverage of
2.05 times and net cash accruals to total debt of 0.1 times for
fiscal 2016.

* Large working capital requirements: Operations are working
capital intensive as reflected in high gross current assets of
285 days as on March 31, 2016 This is due to the high debtors and
high inventory levels which stood at 171 and 105 days
respectively as on March 31, 2016.

Strengths
* Promoters' extensive industry experience: Mr Rahul Kohli and Ms
Ruchi Kohli have experience of 21 years in the infrastructure and
defence industry. The promoter family has diversified presence
through group concerns. VSPL benefits from its promoters'
extensive experience, their understanding of the local market
dynamics, and established relationships with suppliers and
customers.
Outlook: Stable

CRISIL believes VSPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if capital structure improves because of equity
infusion or higher-than-expected cash accrual driven by revenue
growth and prudent working capital management. The outlook may be
revised to 'Negative' if the financial risk profile deteriorates
on account of decline in revenue and profitability, or larger-
than-expected, debt-funded capital expenditure, or if liquidity
weakens significantly due to increase in working capital
requirement.

VSPL, incorporated in 1994 by the Kanpur based Kohli family,
manufactures braided cords/ropes, personal protective equipment,
material handling equipment, and load strapping equipment for the
infrastructure, automotive, airforce, and defence industries.

VSPL reported a net profit of INR 0.36 crore on net sales of
INR15.77 crore for fiscal 2016 against a net profit of INR0.24
crore on net sales of INR18.45 crore for fiscal 2015.

Any other information: The net sales of VSPL has decreased to INR
15.77 cr. in fiscal 2016 from INR18.45 cr. a year earlier on
account of decline in demand from customers. The company has
already recorded top line of INR 15.0 crore till January, 2017.
The company is estimated to report revenues of INR19.0 crores in
FY17. Operating margin remains at 13.06% which is higher than
CRISIL's expectations.

Operations remained working capital intensive with gross current
assets (GCA) of 285 days for the twelve months ended on March 31,
2016.

Financial risk profile remains average marked by high gearing of
2.5 times and comfortable debt protection metric with interest
coverage of 2.05 times and net cash accruals to total debt of 0.1
times for fiscal 2016. Liquidity is marked by high limit
utilisation and sufficient cash accruals against debt obligation.



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


TOSHIBA CORP: Seeks Advise on Potential US Unit Bankruptcy Cost
---------------------------------------------------------------
Reuters reports that Toshiba Corp has asked a Japanese law firm
to help estimate the potential financial impact if it decides its
U.S. nuclear unit Westinghouse should file for Chapter 11
protection from creditors, sources with knowledge of the matter
said.

Toshiba is looking at a potential Chapter 11 filing as one of
several options for Westinghouse as a means to limit future
losses from the Pittsburgh-based company, the two sources said,
Reuters relates.

The sources declined to be identified as they were not authorized
to speak to the media, Reuters notes.

Last week, responding to media reports on a potential Chapter 11
filing, Toshiba said it was not aware Westinghouse was
considering the step, Reuters recounts.

According to Reuters, a spokesman on March 1 said the company had
no immediate comment on whether a law firm had been approached
about the matter.

Reuters says the TVs-to-construction conglomerate has been
plunged into crisis after it emerged that cost overruns at two
U.S. nuclear power plant construction projects would result in a
$6.3 billion writedown - forcing it to put a majority stake in
its prized chips business up for sale.

Reuters relates that analysts and sources with knowledge of the
matter have previously said that even under a Chapter 11 filing,
Toshiba could still be on the hook for up to $7 billion in
contingent liabilities as it has guaranteed Westinghouse's
contractual commitments - an arrangement typical for the nuclear
industry.

Toshiba dispatched a group of experts, including lawyers, to
Westinghouse in mid-February to assess the U.S. unit's assets,
the two sources, as cited by Reuters, said.

Preliminary estimates from that group show a Westinghouse
bankruptcy filing would result in Toshiba having to take a fresh
charge of at least JPY300 billion ($2.6 billion), the sources
said, Reuters relays.

That figure is narrower in scope than the $7 billion Toshiba has
in contingent liabilities, as it does not include damages that
Westinghouse's customers may seek from Toshiba, including damages
that the owners of the two projects could claim if they were not
completed, according to Reuters.

A Chapter 11 filing would still yield benefits, however, as
Westinghouse would come off Toshiba's consolidated accounts. That
could offset some of the charge, the sources said, adds Reuters.

                          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.


TOSHIBA CORP: Foxconn Confirms Plan to Buy Chip Business
--------------------------------------------------------
Lauly Li at Taipei Times reports that Foxconn Technology Group on
March 1 acknowledged that it intends to buy Toshiba Corp's loss-
making chip business.

Foxconn chairman Terry Gou announced the plan during a
groudbreaking ceremony for a factory in China, the report says.

"We have the experience of [buying] Sharp Corp. We are sincere
and confident about [investing in] Toshiba," Gou told a media
briefing after the ceremony at Sakai Display Production Corp's
(SDP) 10.5-generation display factory in Guangzhou, China,
according to Taipei Times.

The briefing was live-streamed on the Internet, the report notes.

It was the first time Gou publicly confirmed the company's
interests in purchasing Toshiba's memorychip business, after the
Japanese firm last month said it plans to sell stakes in its
memorychip unit and other businesses, in a bid to alleviate its
financial troubles, says Taipei Times.

After South Korea's Samsung Electronics Co, Toshiba is the
second-largest NAND flash memory chip manufacturer in the world,
the report notes.

According to Taipei Times, the Japanese firm is reportedly to
send letters soliciting offers for the memory chip business this
week and is seeking bids valued at JPY1.5 trillion (US$13.19
billion), Bloomberg reported on March 1, citing people familiar
with the matter.

Potential bidders include Foxconn, South Korea's SK Hynix Inc,
Micron Technology Inc and Western Digital Corp, the report, as
cited by Taipei Times, said.

Gou said Foxconn is a client and a partner of Toshiba's, relays
Taipei Times.

Gou did not say if Foxconn has officially submitted a bid or how
many of Toshiba's businesses it is willing to buy, however he
said: "Money should not be the only thing [for Toshiba] to
consider," adds Taipei Times.

                          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.



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


EMAS CHIYODA: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor affiliates filing separate Chapter 11 bankruptcy
petitions:

     Debtor                                         Case No.
     ------                                         --------
     EMAS CHIYODA Subsea Limited                    17-31146
     2 Snowhill
     Birmingham 846WR
     United Kingdom

     EMAS Chiyoda Subsea Inc.                       17-31139
     EMAS-AMC Pte. Ltd.                             17-31141
     EMAS Chiyoda Subsea Services Pte. Ltd.         17-31142
     Lewek Falcon Shipping Pte. Ltd.                17-31143
     Lewek Constellation Pte. Ltd.                  17-31144
     EMAS CHIYODA ROV Pte. Ltd.                     17-31145
     EMAS CHIYODA Subsea Marine Base LLC            17-31147
     EMAS CHIYODA Marine Base Holding Co., LLC      17-31149
     Gallatin Marine Management, LLC                17-31150
     EMAS CHIYODA Subsea Services LLC               17-31151
     EMAS CHIYODA Subsea Services (UK) Limited      17-31152
     EMAS CHIYODA Subsea Services B.V.              17-31153
     EMAS Saudi Arabia Ltd.                         17-31154
     EMAS CHIYODA Subsea (Thailand) Co., Ltd.       17-31155

Type of Business: The Company is an international heavy lift
                  subsea, offshore and onshore contractor
                  offering engineering, procurement,
                  construction, transportation, installation, and
                  commissioning services at every stage of the
                  project lifecycle to deliver complex
                  construction projects for customers.

Chapter 11 Petition Date: February 27, 2017

Court: United States Bankruptcy Court
       Southern District of Texas (Houston)

Judge: Hon. Marvin Isgur

Debtors' Counsel:  George N. Panagakis, Esq.
                   Justin M. Winerman, Esq.
                   Roy Leaf, Esq.
                   SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
                   155 N. Wacker Dr.
                   Chicago, Illinois 60606-1720
                   Tel: (312) 407-0700
                   Fax: (312) 407-0411
                   E-mail: george.panagakis@skadden.com
                           justin.winerman@skadden.com
                           roy.leaf@skadden.com

                      - and -

                   Dominic McCahill, Esq.
                   Kathlene Burke, Esq.
                   SKADDEN, ARPS, SLATE, MEAGHER & FLOM (UK) LLP
                   40 Bank Street
                   Canary Wharf
                   London, E14 5DS
                   Tel: 44-20-7519-7000
                   Fax: 44-20-7516-7070
                   E-mail: dominic.mccahill@skadden.com
                           kathlene.burke@skadden.com

Debtors' Co-Counsel: John F. Higgins, Esq.
                     Joshua W. Wolfshohl, Esq.
                     Aaron J. Power, Esq.
                     Brandon J. Tittle, Esq.
                     Eric M. English, Esq.
                     PORTER HEDGES LLP
                     1000 Main Street, 36th Floor
                     Houston, Texas 77002
                     Tel: (713) 226-6000
                     Fax: (713) 228-1331
                     E-mail: jhiggins@porterhedges.com
                             jwolfshohl@porterhedges.com
                             apower@porterhedges.com
                             btittle@porterhedges.com
                             eenglish@porterhedges.com

Debtors'             KPMG SERVICES PTE. LTD.
Managerial
Services
Provider:

Debtors'
Claims and
Noticing
Agent:               EPIQ BANKRUPTCY SOLUTIONS, LLC

Estimated Assets: $500 million to $1 billion

Estimated Liabilities: $100 million to $500 million

The petitions were signed by Teraoka Takahiro, director.

Debtor's List of 30 Largest Unsecured Creditors:


   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
DBS Bank                           Working Capital    $40,000,000
12 Marina Boulevard, Level 3            Loan
Marina Bay Financial Centre
Tower 3
Singapore, 018982
Singapore
Tel: +65 6878 2024
Fax: 64451267
Email: pat.chiam@dbs.com

DBS Bank                           Working Capital    $30,000,000
12 Marina Boulevard, Level 3             Loan
Marina Bay Financial Centre,
Tower 3
Singapore, 018982
Singapore
Tel: +65 6878 2024
Fax: 64451267
Email: pat.chiam@dbs.com

DBS Bank Limited                    Bank Guaranty     $14,636,231
12 Marina Boulevard #46-04               Claims
DBS Asia Central@MBFC Tower 3
Singapore, 018982
Singapore
Tel: 6878 2024
Fax: 64451267
Email: patchiam@dbs.com

DNB Bank ASA, Singapore Branch     Bank Guarantee     $14,636,231
8 Shenton Way, Temasek Tower            Claims
Singapore, 068811
Singapore
Tel: 6212 0710
Fax: 65 6225 7007
Email: ian.thia@dnbnor.no

Overseas-Chinese Banking           Bank Guarantee     $13,118,982
Corporation Ltd.                        Claims
63 Chulia Street
#06-00 OCBC Centre East
Singapore, 049514
Singapore
Tel: 65 9694 1264, 65 6318 7222
Fax: 65 6534 3986
Email: saswiral@ocbc.com

Internal Revenue Service Center       Tax Claim        $8,591,376
1111 Constitution Avenue NW
Washington, DC 20224
Tel: 202-283-1710

London Marine Consultants Ltd.          Trade          $8,322,894
Pinnacle House
23-26 St Dunstan's Hill
London EC3R 8HN
United Kingdom
Tel: 44 0 20 7621 0050
Fax: 44 0 20 7220 7730
Email: lmc@londonmarine.co.uk

Coastal Trade Limited               Trade/Non-Trade    $7,613,516
3 Cromwell Place
London, SW7 2JE
England

Bibby Offshore Limited                   Trade         $6,074,057

Atmosphere One
Prospect Road, Westhill
Aberdeen, AB32 6FJ
Scotland
Tel: 44 0 1224 857755
Fax: 44 0 1224 284444
Email: info@bibbyoffshore.com

Standard Chartered Bank             Bank Guarantee     $5,626,880
8 Marina Boulevard #27-01                Claims
Marina Bay Financial Centre,
Tower 1
Singapore, 018982
Singapore
Tel: 65 6596 7064
Fax: 66348119
Email: vivien.lhlow@sc.com

Serimax North America, LLC               Trade         $4,451,357
11315 West Little York Rd. Bldg 3
Houston, Texas 77041
Tel: +350 20051777/8, 832-230-2700
Fax: +350 20051779
Email: operations@gacgibraltar.com

Tigermar Global Pte Limited          Trade/No-Trade    $3,185,595
8 Marina View, Asia Square
Tower 1
#07-04
Singapore, SG
Tel: 6744 7055, 65 6715 8760
Fax: 6744 7066, 65 6532 0194
Email: info@tigermar.com

Keppel Shipyard Limited                  Trade         $2,764,580
51 Pioneer Sector 1
Singapore, 628437
Singapore
Tel: 47-403095350, 65-6861-4141
Fax: 65-6861-7767
Email: brokers@f3offshore.com,
       ks@keppelshipyard.com

Canyon Offshore, Inc.                    Trade         $2,761,372
400 N. Sam Houston Pkwy East
Suite 400
Houston, Texas 77060 US
Tel: 281-618-0400
Fax: 281-618-0500

Rana Diving S.P.A.                       Trade         $2,439,336
Via Del Trabaaccolo 16-48122
Ravenna Italy
Tel: 39 0544 530742
Fax: 39 0544 531015
Email: account@benline.com.sg,
       rana@ranadiving.it

Kuiper International Pte Ltd.            Trade         $2,353,435
14 Robinson Road #07-10
Far East Finance Building
Singapore, SGP
Tel: 65 6224 4510
Fax: 65 6224 4511
Email: info@ki.sg

Chengxi Shipyard (Guangzhou)             Trade         $2,187,728
Co. Ltd.
No. 10 Qihang Road, Longxue
Street, Nansha
Guangzhou, China
Tel: 86 510 8166 8160
Email: jasentchow@chengxi.com

Crowley Marine Services Inc.             Trade         $1,886,707
15894 Diplomatic Plaza DR
Houston, Texas 77032 US
Tel: 832-850-4100
Fax: 832-850-4141

Technip Far East SDN BHD                 Trade         $1,837,396
Wisma Technip, No 241, 2nd
Floor, Jalan Tun Razak, Wilayah
Persekutuan 50400 Kuala
Lumpur Malaysia
Tel: 603 2116 7888
Fax: + 603 2116 7999

BAE System Australia Ltd.                Trade         $1,804,987
Edinburgh Parks Taranaki Road
Edinburgh SA 5111
Tel: 61 8 8480 8888
Email: auswebinfo@baesystem.com.au

Gulfmark Americas Inc.                   Trade         $1,691,280
842 W Sam Houston PKWY North
Suite 400
Houston, TX 77024
Tel: 713-369-7300

IHC SAS BV                               Trade         $1,319,273
Bedrijfsweg 23 2404 CB Alphen
AAN Den RIJN
Tel: +31 88 015 61 00
Email: info.sas@royalihc.com

Huisman Equipment BV                     Trade         $1,230,924
Admiraal Trompstraat 2, 3115 HH
PO Box 150 3100 AS Schiedam
Harbour No. 561
The Netherlands
Tel: 832-487-7300, 33 88 070 2222
Email: etta.chatterjee@emaschiyoda.com
       ap@hisman-nl.com

Worleyparsons PTE Limited                Trade         $1,089,200
111 Somerset Road, #12-05
Tripleone Somerset, Singapore
238164
Tel: +65 6735 8444
Fax: +65 6735 7444

Horizon Survery Company (FZC)            Trade         $1,021,183
P.O. Box 68785, SAIF Zone,
Sharjah
Tel: + 971 6 557 3045
Fax: + 971 6 557 3047

James Fisher Subsea Excavation           Trade           $978,374
PTE. Limited
Paya Lebar Square
#08-07, 60 Paya Lebar Road
Singapore, 409051
Singapore
Tel: 65-6225-1163
     65 6887 3613
Fax: 65-6225-4945
Email: weitung.lim@jitsun.com

SAL Heavy Lift GMBH                      Trade           $953,505
Brooktorkai 20
20457 Hamburg
Germany
Tel: 6467 3923/6468 8776 49 40
     380380-0
Fax: 6469 6330, 49 40 380380-600
Email: Elinkspare@yahoo.com

H.J. Stauble Limited                     Trade           $949,123
3-5 Maharaj Avenue By-Pass
San Fernando
Trinidad and Tobago, WI
Tel: 868-653-1870
Fax: 868-657-2810
Email: stauble@tstt.net.tt

Shin Yang Shipping Co., Ltd.             Trade           $936,845
88-1 Songjong-dong Tonghae-shi
Tonghae-SHI
Gangwon, South Korea
Tel: +234 808 313 1138
     033-522-3422
Fax: 033-522-2907
Email: info@gulfships.net

C&C Technologies Inc.                    Trade           $911,742
730 East Kaliste Saloom Road
Lafayette, LA 70508
Tel: 337-210-0000
Fax: 337-210-0003


EMAS CHIYODA: Will Implement Revised Business Plan Thru Ch. 11
--------------------------------------------------------------
Having insufficient cash to meet its day-to-day operating needs,
EMAS CHIYODA Subsea Limited, together with 14 affiliated
companies, has filed a voluntary petition under Chapter 11 of the
Bankruptcy Code blaming deteriorating market conditions and
intense competition in the deep-sea construction business for its
financial troubles.

EMAS Chiyoda Subsea (ECS) is a joint-venture run by the SGX-
listed Ezra Holdings (40 percent) and the Japanese listed firms
Chiyoda Corporation (35 percent) and NYK (25 percent), according
to CNBC.

According to the bankruptcy filing, the Company's revenue and
cash flows have come under significant strain due to, among other
things, falling demand for its services as a result of the
depressed market conditions in the offshore and subsea
construction market it serves; significant vessel operating
costs; and a tightening of credit conditions, which ultimately
led to its banks freezing various credit lines.

"As a result of the global slowdown in the oil and gas industry,
there has been low growth and limited new deep water exploration
and production leading to low vessel utilization, which has had a
negative impact on the Company's financial situation," said
Stephen H. McGuire, the Company's general counsel. "Moreover, the
deepsea offshore markets in which the Company operates are highly
competitive."

With U.S. headquarters in Houston, Texas, the Company provides
services for subsea inspection, maintenance and repair, well
intervention, drilling, and decommission work primarily to the
oil and gas sector. Its domestic and foreign Debtor and non-
Debtor subsidiaries operate throughout the world, including in
the United States, Singapore, Norway, Saudi Arabia, Australia,
the Netherlands, Scotland, Thailand, and Africa.

As of the Petition Date, the Company's funded debt consists of
approximately $480 million of secured debt and approximately $175
million of unsecured debt. In addition, the Company estimates
contingent debt under Bank Guarantees of approximately $58
million, more than $150 million of remaining lease amounts under
certain charters (not including those owed by non-Debtor
affiliates), and $103 million in trade debt as of the Petition
Date.

Mr. McGuire related that the Company has taken numerous actions
to mitigate the effects of the decline in activity levels,
especially given the substantial fixed cost pressure. In
particular, management has made steady efforts to reduce
operating costs, including the vessel operating costs, by, among
other things, attempting to renegotiate vessel repayments,
reducing fixed costs, and reducing variable costs via staff
reductions and relocations.  However, Mr. McGuire maintained,
these cost saving maneuvers have had mixed success.

As a result of the deteriorating market conditions in the oil and
gas sector coupled with the Company's financial difficulties, the
Company's lenders have frozen borrowing availability under the
Company's prepetition facilities, limiting the cash available to
meet its operating needs. This led to the Company and its
financial advisors developing a revised business plan. The
Business Plan, which showed a need for substantial additional
funding, was shown to the Company's shareholders, along with a
request for additional funding to support the Business Plan.

Subsea 7 S.A. and equityholder Chiyoda Corporation have agreed to
provide up to $90 million debtor-in-possession financing
necessary for the Debtors to operate their businesses, preserve
value, and pursue their restructuring goals, subject to the
Court's approval.

To minimize the adverse effects of filing for Chapter 11 on their
business and their international operations, the Debtors have
filed motions and pleadings seeking various types of "first day"
relief including, among other things, authority to pay employee
obligations and authority to prohibit utility companies from
discontinuing services.

The Debtors' cases have been assigned to U.S. Bankruptcy Judge
Marvin Isgur. The Debtors are seeking to have their cases jointly
administered for procedural purposes under the main case docket
of EMAS CHIYODA Subsea Limited Case No. 17-31146.

Skadden, Arps, Slate, Meagher & Flom LLP serves as counsel to the
Debtors. Porter Hedges LLP serves as the Debtors' co-counsel.
KPMG Services Pte. Ltd. provides managerial services to the
Debtors. Epiq Bankruptcy Solutions, LLC, acts as the Debtors'
claims and noticing agent.



                             *********

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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