TCRAP_Public/170327.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

            Monday, March 27, 2017, Vol. 20, No. 61

                            Headlines


A U S T R A L I A

AUSDRILL LTD: S&P Affirms 'B+' ICR & Revises Outlook to Positive
BARMINCO HOLDINGS: S&P Puts 'B-' ICR on CreditWatch Positive
CKP CONSTRUCTIONS: First Creditors' Meeting Set for April 4
ORTEGA PUBLISHING: First Creditors' Meeting Set for April 4
REBATE FINANCIAL: Fails to File Results; AFS Licenses Cancelled

ROSETT SCAFFOLDING: First Creditors' Meeting Set for April 4
SPEEDPANEL AUSTRALIA: First Creditors' Meeting Set for March 31


C H I N A

BINHAI INVESTMENT: 2016 Results Consistent With Moody's Ba1 CFR
CHINA EVERGRANDE: Fitch Rates US$500MM Sr. Unsec. Notes 'B-'
CHINA EVERGRANDE: Fitch Gives B-(EXP) Rating to New USD Notes
CHINA HUISHAN: Sudden Shares Plunge Erases $4.1BB in Company
COUNTRY GARDEN: Weak Credit Metrics No Impact on Moody's Ba1 CFR

GUANGZHOU R&F: Moody's Revises Outlook to Neg. & Affirms Ba3 CFR
KANGDE XIN: Fitch Rates US$300 Million Senior Notes 'BB'
KWG PROPERTY: Fitch Rates US$400MM Senior Notes Due 2022 'BB-'
NEXTEER AUTOMOTIVE: Moody's Alters Outlook Pos. & Affirms Ba1 CFR
* CHINA: Banks Sweat as Liquidity Crunch Looms, WSJ Reports


I N D I A

ALL KIND: CARE Assign B+ Rating to INR30.15cr LT Loan
ANGEL FIBERS: CARE Assigns B+ Rating to INR15cr LT Loan
ASSOCIATED COLOURS: CARE Lowers Rating on INR0.49cr Loan to B
BABA BISWANATH: CRISIL Assigns B+ Rating to INR4MM Cash Loan
CAPITAL ENTERPRISES: CARE Assigns 'D' Rating to INR12cr Loan

CONOR GRANITO: CRISIL Reaffirms B+ Rating on INR16.5MM Term Loan
DP BANSAL: CARE Assigns B+ Rating to INR7.35cr LT Loan
EASTERN SILK: CRISIL Reaffirms 'D' Rating on INR62.87MM Loan
FAZE THREE: CARE Hikes Rating on INR57.25cr Loan to BB
GARG STEELS: CARE Reaffirms B+ Rating on INR11cr LT Loan

GOOD MEDIA: CRISIL Assigns 'B-' Rating to INR8.15MM LT Loan
HAYATH FOODS: CARE Assigns 'B' Rating to INR10.41cr LT Loan
INDO PRODUCTS: CARE Assigns 'B' Rating to INR6cr LT Loan
KIA TEXTILES: CRISIL Reaffirms 'B+' Rating on INR9.5MM Cash Loan
MB SPONGE: CARE Assigns B+ Rating to INR11.60cr LT Loan

NATASHA AUTOMOBILES: CRISIL Assigns B+ Rating to INR10MM Loan
NEERAKKAL LATEX: CRISIL Cuts Rating on INR8MM Cash Loan to 'D'
OSWAL AGRIMPEX: CRISIL Hikes Rating on INR.44MM Loan to BB-
P K K CONSTRUCTIONS: CRISIL Assigns 'B' Rating to INR4.0MM Loan
PALAPARTHI SUPER: CARE Lowers Rating on INR70cr LT Loan to B+

PRATIROOP MUDRAN: CARE Reaffirms B+ Rating on INR8.97cr LT Loan
PROSTAR TEXTILE: CRISIL Assigns B+ Rating to INR13MM Term Loan
RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR12MM Loan
RICHA PETRO: CARE Assigns 'D' Rating to INR12.58cr LT Loan
S SATYANARAYANA: CARE Assigns B+ Rating to INR2.50cr LT Loan

SAISUDHIR ENERGY: CARE Reaffirms 'D' Rating on INR146.87cr Loan
SHITALPUR MOHINDER: CARE Assigns 'B' Rating to INR10.64cr LT Loan
SANJAY TRADE: CARE Reaffirms 'B' Rating on INR5cr LT Loan
SHREE HD: CARE Assigns 'B' Rating to INR6cr LT Loan
SILVERMOON MOTORS: CRISIL Assigns B+ Rating to INR5MM Overdraft

SITARA JEWELLERY: CRISIL Assigns 'B' Rating to INR7.5MM Loan
SREE SREE: CARE Reaffirms B+ Rating on INR3.85cr LT Loan
SUKH SAGAR: CARE Reaffirms B+ Rating on INR5.10cr LT Loan
SWASTIK OVERSEAS: CRISIL Reaffirms 'B' Rating on INR.5MM Loan
SYNDICATE IMPEX: CARE Assigns B+ Rating to INR1.16cr LT Loan

TRACK COMPONENTS: CRISIL Reaffirms 'D' Rating on INR77.5MM Loan
VIVEK AGROTECH: CARE Assigns B+ Rating to INR9.95cr LT Loan


I N D O N E S I A

PELABUHAN INDONESIA: S&P Affirms BB+ CCR, Revises Outlook to Dev.
SRI REJEKI: Fitch Assigns BB- Rating to USD150MM Sr. Unsec. Notes


J A P A N

TOKYO ELECTRIC: To Delay Seeking End to State Control by 2 Years
TOSHIBA CORP: Finalizing Westinghouse's Chapter 11 Plan


S O U T H  K O R E A

DAEWOO SHIPBUILDING: Deloitte Anjin Gets 1-Year Suspension
DAEWOO SHIPBUILDING: Expects Business Turnaround in 2017
SEAGATE KOREA: Plans to Lay Off 6,500 Workers Amidst Liquidation


                            - - - - -


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


AUSDRILL LTD: S&P Affirms 'B+' ICR & Revises Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings revised its rating outlook on Australian mining
services provider Ausdrill Ltd. to positive from stable.  At the
same time, S&P affirmed the issuer credit rating on the company at
'B+'.

S&P also affirmed the ratings on Ausdrill Finance Pty Ltd.'s
US$300 million, senior unsecured notes at 'B+', with a recovery
rating of '4'.  In addition, S&P affirmed its issue ratings on
Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd.'s
A$125 million, secured, syndicated bank loan at 'BB', with the
recovery rating remaining at '1'.

"We revised the outlook to positive because we consider Ausdrill's
proactive management of costs, reduced leverage, and recent new
contract wins have improved the company's credit metrics," said
S&P Global Ratings credit analyst Sam Heffernan.

S&P sees a one-in-three likelihood of an upgrade over the next 12
to 18 months if the company continues to prudently manage the
contract book and ramps up its new contracts in Africa as it
expects.  An upgrade could occur if Audrill sustains improved
credit metrics and operating performance such that its funds from
operations (FFO) to debt is greater than 30% and debt to EBITDA is
less than 3x, even if trading conditions were to weaken
moderately.

In S&P's view, trading conditions for the Australian mining
services industry have stabilized but remain soft.  The recent
rebound in commodity prices has moderated pressure on mining
services companies.  However, miners continue to be disciplined in
expanding supply and cautious in committing significant capital
expenditure to new greenfield projects, keeping conditions soft
over the next 12 months.

Despite the continued soft conditions, Ausdrill is likely to
maintain a relatively stable margin compared with previous years,
as it continues to manage its contracts and costs.  In addition,
Ausdrill has cut its leverage by paying down drawn facilities and
holding additional cash on the balance sheet.

S&P expects the company's newly secured contracts in Africa,
totaling about US$125 million of annual revenue, to boost its
earnings in the year ending June 30, 2018. Ausdrill's exposure to
revenues from contracts across Africa (approximately 60%) is
increasing, with Ghana (B-/Stable/B) comprising about 30% of total
revenues.

S&P considers the company has a long and successful track record
in operating on the African continent and manages these risks
prudently.  However, S&P do view these jurisdictions as being
inherently riskier to operate in when compared with the company's
Australian operations.

Furthermore, volatility in gold prices affecting the gold mining
sector can make industry conditions more difficult for mining
services companies.  Gold mining services comprise a significant
portion of Ausdrill's revenues.  S&P expects gold prices to remain
volatile and maintain an inverse correlation with U.S. interest-
rate expectations.

The interest rate hike of a quarter percentage point by the
Federal Reserve and the continued relative strength of the U.S.
dollar underpin S&P's subdued average gold price assumptions over
the next several years.  However, S&P believes that any
deterioration in gold prices from an improving global GDP would
offer business opportunities in base metals where Ausdrill also
has expertise.

Mr. Heffernan added: "The positive outlook reflects our view of a
one-in-three chance of an upgrade if Ausdrill maintains its
current contract book and ramps up new contracts in Africa as it
expected.  This would enable Ausdrill to sustain improved credit
metrics in line with a higher rating."

Further reduction in leverage would also support a higher rating.
Credit metrics supporting an upgrade include an FFO to debt
remaining greater than 30% and debt to EBITDA below 3x, even
during periods of moderate stress in the industry operating
environment.

S&P would revise outlook to stable if Ausdrill's credit quality
worsens due to gold prices significantly weakening and
subsequently pressuring the revenue of mining services companies,
business activity reducing, or existing mines closing with no work
from other base metals or bulk commodities offsetting the impact.
Such a scenario would include Ausdrill's FFO to debt remaining
below 20% or debt to EBITDA rising to greater than 4x.


BARMINCO HOLDINGS: S&P Puts 'B-' ICR on CreditWatch Positive
------------------------------------------------------------
S&P Global Ratings placed the 'B-' issuer credit rating on
Australian hard-rock contract mining company Barminco Holdings Pty
Ltd. on CreditWatch with positive implications.  At the same time,
S&P placed on CreditWatch with positive implications the 'B-'
rating on the company's senior unsecured notes with a recovery
rating of '3', and the 'B+' rating on the revolving facility with
a recovery rating of '1'.

"The CreditWatch placements reflect our view that the company is
proactively managing its refinancing task, having advanced its
preparations and clearly defined its refinancing options," said
S&P Global Ratings credit analyst Sam Heffernan.  "We consider the
progress increases the probability of a successful refinancing.
Should the company complete its refinancing, we would raise the
issuer credit rating on Barminco by one notch to 'B'."

The potential upgrade after the refinancing also reflects S&P's
view of Barminco's relatively stable profitability even during the
recent downturn in the mining industry and through a period of
challenging conditions for mining services companies.  Pressure on
mining services companies has moderated somewhat as commodity
prices rebounded, and some pipeline opportunities could supplement
the company's business.

S&P expects the soft trading conditions to prevail over the next
12 months, given that miners remain disciplined in committing
significant capital expenditure for expansion.

"We expect Barminco's earnings to increase modestly over the next
two to three years on the back of new and existing contracts,"
said Mr. Heffernan.

Barminco's order book continues to be stable as it rolls over
expiring contracts and wins new contracts to replace lost ones
(for example replacing the one lost contract over the past 12
months with two new ones).  Indeed, the company's EBITDA has been
relatively steady over the past few years.  Its new contracts at
Kundana and Rampura Agucha would ramp up and reach full earnings
potential over the next two years, modestly lifting earnings.

Barminco has offset the impact of the recent mining downturn
through proactive cost management, in addition to maintaining a
sufficient pipeline of contracts.  As a result, the company has
maintained relatively stable profitability, despite pressure on
revenues and margins.

Barminco's experience and track record in providing underground
hard-rock mining services partly offset the company's relatively
small scale and narrow business focus.  Nonetheless, in S&P's
view, the company's concentration in relatively short-term
contracts of three to five years is an inherent risk in its
business risk profile.

Barminco is proactively managing the refinancing of its senior
unsecured notes due in May 2018.  S&P acknowledges that through
the progressive buybacks, the company has somewhat reduced the
refinancing risk of the notes.

The CreditWatch with positive implications reflects S&P's view of
an increased likelihood of Barminco completing a refinancing of
the outstanding senior unsecured notes in the coming months.  S&P
would raise the issuer credit rating to 'B' once the refinancing
completes in the coming months.


CKP CONSTRUCTIONS: First Creditors' Meeting Set for April 4
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of CKP
Constructions Pty Ltd will be held at the offices of Worrells
Meeting Room, Level 8, 102 Adelaide Street, in Brisbane,
Queensland, on April 4, 2017, at 10:30 a.m.

Lee Crosthwaite and Chris Cook of Worrells Solvency were appointed
as administrators of CKP Constructions on March 23, 2017.


ORTEGA PUBLISHING: First Creditors' Meeting Set for April 4
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Ortega
Publishing Pty Ltd will be held at Level 15, 50 Pitt Street, on
April 4, 2017, at 11:00 a.m.

Joseph Ronald Hansell and Quentin James Olde of FTI Consulting
were appointed as administrators of Ortega Publishing on
March 23, 2017.


REBATE FINANCIAL: Fails to File Results; AFS Licenses Cancelled
---------------------------------------------------------------
Australian Securities and Investments Commission has cancelled the
Australian financial services (AFS) licences of Rebate Financial
Services Pty Ltd and Capstone Capital Pty Ltd for failing to
comply with a number of their key obligations as financial
services licensees.

In particular, ASIC has found that the two licensees failed to:

  -- lodge annual financial statements and auditor's reports;
     And

  -- maintain membership with an external dispute resolution
     (EDR) scheme approved by ASIC.

In addition to the cancellations, ASIC has suspended the AFS
license for KABM Pty Ltd for failing to lodge financial statements
and auditor's reports for three consecutive years. ASIC has
suspended KABM's licence until May 1, 2017. If KABM does not lodge
the required documents by this date, ASIC will consider whether
the license should be cancelled.

ASIC Deputy Chairman Peter Kell said, 'The annual lodgement of
audited accounts is an important part of a licensee demonstrating
it has adequate financial resources to provide the services
covered by its licence and to conduct the business lawfully.'

'Membership of an EDR scheme is also an important requirement for
licensees and ASIC will not hesitate to act against those who fail
to comply with their responsibilities.'

The cancellation of Capstone Capital and Rebate Financial
Services' AFS licence is part of ASIC's ongoing efforts to improve
standards across the financial services industry.

ASIC has cancelled two AFS licences and suspended one for failing
to comply with financial services laws. The cancelled and
suspended licensees are:

  * Capstone Capital Pty Ltd (AFS Licence 225522)
  * Rebate Financial Services Pty Ltd (AFS Licence 247381)
  * KABM Pty Ltd (AFS Licence 335696)

ASIC is empowered to suspend or cancel a licence if the licensee
has contravened its obligation to lodge its financial statements
or maintain membership with an approved EDR scheme.

The annual lodgment of financial statements and an auditor's
report is an important part of an AFS licensee demonstrating it
has adequate financial resources to provide the services covered
by its license and to conduct its business in compliance with the
Corporations Act 2001.

External dispute resolution gives consumers alternatives to legal
proceedings for resolving complaints. Compulsory EDR scheme
membership is an important feature of AFS licences.


ROSETT SCAFFOLDING: First Creditors' Meeting Set for April 4
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Rosett
Scaffolding and Access Pty. Ltd will be held at the offices of
Veritas Advisory, Level 5, 123 Pitt Street, in Sydney, on
April 4, 2017, at 10:00 a.m.

David Iannuzzi and Vincent Pirina of Veritas Advisory were
appointed as administrators of Rosett Scaffolding on March 23,
2017.


SPEEDPANEL AUSTRALIA: First Creditors' Meeting Set for March 31
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Speedpanel
Australia Ltd, Speedpanel (vic.) Pty ltd, and Speedpanel Corporate
Services Pty Ltd, will be held at the offices of
Chartered Accountants Australia and New Zealand, Level 18,
600 Bourke Street, in Melbourne, on March 31, 2017, at 2:00 p.m.

Sam Kaso & Bruno Secatore of Cor Cordis Chartered Accountants were
appointed as administrators of Speedpanel Australia on
March 21, 2017.



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C H I N A
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BINHAI INVESTMENT: 2016 Results Consistent With Moody's Ba1 CFR
---------------------------------------------------------------
Moody's Investors Service said that Binhai Investment Company
Limited's (BICL) 2016 results are in line with its expectations
and consistent with its Ba1 corporate family rating and senior
unsecured debt rating.

The ratings outlook remains negative.

"BICL's 2016 results are in line with Moody's expectations, but
the business risks associated with the reliance on connection
fees, significant related party transactions and delay in
execution of growth plan remain," says Osbert Tang, a Moody's Vice
President and Senior Analyst.

The company's revenue for 2016 declined by around 16% to HKD2.15
billion and gross profit by 0.5% to HKD540 million, mainly due to
(1) the average 28% reduction in non-residential gas tariffs in
November 2015; (2) its weaker performance in connection services;
and (3) the continuous depreciation of the RMB against the HKD --
the company's reporting currency.

Piped gas sales accounted for 78% and 39% of BICL's total revenue
and gross profits respectively for 2016. Piped gas sales volumes
grew 12.3% in 2016, but this growth was offset by the tariff cut,
resulting in a 17.8% drop in segment revenue. The gross margin for
this business segment increased to 12.7% in 2016, from 10.5% in
2015, indicating BICL's ability of cost pass through.

Furthermore, reported revenue and gross profit of its connection
services declined by 6.9% and 2.2% respectively. However,
connection services still contributed a significant 60% of the
company's 2016 gross profit.

Moody's views BICL's reliance on connection fees as a key rating
constraint, because the one-off and non-recurring nature of these
fees introduces volatility in its profitability and cash flow
generation.

However, Moody's expects BICL's operating environment will
somewhat benefit from the favorable policies for natural gas
distribution, with a track record of successful cost pass through.

BICL has also reduced its reliance on related party transactions,
with its gas sales volume to Tianjin Pipe decreased 28% year-on-
year to 108 million cubic meter in 2016. Tianjin Pipe and its
subsidiaries accounted for 19% of BICL's piped gas sales revenue
in 2016, down from 24.4% in 1H2016 and 28.2% in 2015.

"BICL is also expanding its customer base through signing up large
industrial customers and coal-to-gas projects, a strategy that may
help to gradually reduce its dependence on related party sales and
one-off connection fee; but its current related party transactions
remain significant," adds Tang, who is also the local market
analyst for BICL.

Moody's continues to have concerns on BICL's progress of executing
its growth plans. The delay in rolling out its gas supply
contracts to gas-fired power plants may weigh on its growth
prospects in the next two years.

The company's adjusted debt, after including the obligations under
the financial lease, amounted to HKD1.8 billion, at end-2016. As a
result, its adjusted funds from operations (FFO)/debt and
debt/capitalization remained within the range of 10%-13% to 59%-
61%, respectively, and within its current Ba1 ratings band.

The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in December 2013.

Binhai Investment Company Limited (BICL) is principally engaged in
city gas distribution and gas pipe connection businesses in China,
mainly in the Tianjin Municipality. Its gas sales volumes reached
630 million cubic meters in 2016.

BICL is listed on the Hong Kong Stock Exchange and is 63.19% owned
by Tianjin TEDA Investment Holding Co., Ltd., which is a wholly
owned conglomerate of the State-owned Assets Supervision and
Administration Commission of Tianjin Municipality.


CHINA EVERGRANDE: Fitch Rates US$500MM Sr. Unsec. Notes 'B-'
------------------------------------------------------------
Fitch Ratings has assigned China Evergrande Group's (B+/Negative)
US$500 million 7.0% senior unsecured notes due 2020 and USD1
billion 8.25% senior notes due 2022 a final 'B-' rating, with a
Recovery Rating of 'RR6'.

The notes are rated at the same level as Evergrande's senior
unsecured rating because they constitute its 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 March 16, 2017.

KEY RATING DRIVERS

Higher Leverage to Continue: Fitch expects Evergrande's net debt
to continue rising but at a slower pace in 2H16 than the 39%
increase in 1H16. This may have pushed up its leverage - measured
by net debt-to-adjusted inventory - to above 60% by end-2016, from
53% at end-2015 and 59.6% in 1H16. Sustained leverage of above 60%
may result in rating downgrades following Fitch reviews of its
2016 results, which will be announced by end-March 2017.

Evergrande's high leverage should be partially eased after it
receives the full proceeds from its CNY30 billion equity-raising
for its onshore subsidiary from new investors in 2017, as well as
its ongoing restructuring in the capital market. A major increase
in its adjusted inventory level in 2H16 from 1H16 may offset the
impact of its rising net debt and moderate its leverage increase.

The company added debt mainly to finance an increase in land
acquisitions and high property-development costs in 2H16, as well
as its CNY36.3 billion investment in China Vanke Co., Ltd.
(BBB+/Stable). Gross floor area (GFA) acquired in 1H16 was 2.6x of
the GFA sold and the company has almost 380 projects under
construction. The land-acquisition pace did not slow substantially
in 2H16, although Evergrande has enough land bank to support its
growth.

Strong Contracted Sales Momentum: Evergrande's business profile is
supported by its large scale and ongoing geographic
diversification into Tier 1 and Tier 2 cities. The company's
contracted sales almost doubled to CNY373 billion in 2016 from a
year earlier. This makes it the largest homebuilder in China. The
sales momentum continued in January 2017; contracted sales rose by
75.2% yoy to CNY37.2 billion, even amidst the current policy
headwinds. Evergrande has a strong cash-collection ratio of around
80% and the increased contracted sales provide liquidity to fuel
Evergrande's aggressive expansion.

Margin under Pressure: The company's high leverage requires high
turnover, which limits its profit margin. Besides, a large portion
of Evergrande's land was acquired in the last few years, after
land prices had increased in major cities, which would mean higher
land costs for projects it sells in the future. Evergrande has a
large sales team that runs frequent marketing campaigns to support
its sales growth nationwide. As a result, selling, general and
administrative costs were high, at over 10% of total revenue in
2011-2015 and 13.4% of total revenue in 1H16.

KEY ASSUMPTIONS

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

- Contracted sales continue to rise in 2017, with a mild
   increase in average selling prices
- Land purchases to slow in 2017, but the company to undertake
   enough land purchases to support future sales
- Higher unit land costs in 2017 and 2018, as the landbank
   acquired in the last few years was more expensive
- Development pace remaining high in 2017
- Margin under pressure, as the highly leveraged business
   requires a fast churn that undermines profitability

RATING SENSITIVITIES

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

- Net debt/adjusted inventory sustained above 60%
- Total payables/gross inventory sustained above 0.50x (2015:
   0.46x)
- Tighter liquidity position due to weaker access to financing
   channels

Positive: The current rating is on Negative Outlook. Fitch does
not anticipate developments with a significant likelihood,
individually or collectively, of leading to a rating upgrade.
However, the Outlook may revert to Stable if the negative factors
above do not materialise.


CHINA EVERGRANDE: Fitch Gives B-(EXP) Rating to New USD Notes
-------------------------------------------------------------
Fitch Ratings has assigned China Evergrande Group's (B+/Negative)
proposed US dollar senior notes a 'B-(EXP)' expected rating, with
a Recovery Rating of 'RR6'.

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

KEY RATING DRIVERS

Higher Leverage to Continue: Fitch expects Evergrande's net debt
to continue rising but at a slower pace in 2H16 than the 39%
increase in 1H16. This may have pushed up its leverage - measured
by net debt-to-adjusted inventory - to above 60% by end-2016, from
53% at end-2015 and 59.6% in 1H16. Sustained leverage of above 60%
may result in rating downgrades following Fitch reviews of its
2016 results which will be announced by end-March 2017.

Evergrande's high leverage should be partially eased after it
receives the full proceeds from its CNY30 billion equity-raising
for its onshore subsidiary from new investors in 2017, as well as
its ongoing restructuring in the capital market. A major increase
in its adjusted inventory level in 2H16 from 1H16 may offset the
impact of its rising net debt and moderate its leverage increase.

The company added debt mainly to finance an increase in land
acquisitions and high property-development costs in 2H16, as well
as its CNY36.3 billion investment in China Vanke Co., Ltd.
(BBB+/Stable). Gross floor area (GFA) acquired in 1H16 was 2.6x of
the GFA sold and the company has almost 380 projects under
construction. The land-acquisition pace did not slow substantially
in 2H16, although Evergrande has enough land bank to support its
growth.

Strong Contracted Sales Momentum: Evergrande's business profile is
supported by its large scale and ongoing geographic
diversification into tier 1 and 2 cities. The company's contracted
sales almost doubled to CNY373 billion in 2016 from a year
earlier. This makes it the largest homebuilder in China. The sales
momentum continued in January 2017; contracted sales rose by 75.2%
yoy to CNY37.2 billion even amidst the current policy headwinds.
Evergrande has a strong cash-collection ratio of around 80% and
the increased contracted sales provide liquidity to fuel
Evergrande's aggressive expansion.

Margin under Pressure: The company's high leverage requires high
turnover, which limits its profit margin. Besides, a large portion
of Evergrande's land was acquired in the last few years, after
land prices had increased in major cities, which would mean higher
land costs for projects it sells in the future. Evergrande has a
large sales team that runs frequent marketing campaigns to support
its sales growth nationwide. As a result, selling, general and
administrative costs were high at over 10% of total revenue in
2011-2015 and 13.4% of total revenue in 1H16.

KEY ASSUMPTIONS

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

- Contracted sales continue to rise in 2017, with a mild
   increase in average selling prices
- Land purchases to slow in 2017, but the company to undertake
   enough land purchases to support future sales
- Higher unit land costs in 2017 and 2018, as the land bank
   acquired in the last few years was more expensive
- Development pace remaining high in 2017
- Margin under pressure, as the highly leveraged business
   requires a fast churn that undermines profitability.

RATING SENSITIVITIES

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

- Net debt/adjusted inventory sustained above 60%
- Total payables/gross inventory sustained above 0.50x (2015:
   0.46x)
- Tighter liquidity position due to weaker access to financing
   channels.

Positive: The current rating is on Negative Outlook. Fitch does
not anticipate developments with a significant likelihood,
individually or collectively, of leading to a rating upgrade.
However, the Outlook may revert to Stable if the negative factors
above do not materialise.


CHINA HUISHAN: Sudden Shares Plunge Erases $4.1BB in Company
------------------------------------------------------------
Sofia Horta E Costa and Kana Nishizawa at Bloomberg News report
that shares of China Huishan Dairy Holdings Co. sank by a record
85% in Hong Kong before the company halted trading.

Bloomberg says the sudden crash wiped out about $4.1 billion in
market value in the stock, which was the worst performer on the
MSCI China Index. A record 779 million shares in the company
changed hands, the most on Hong Kong's exchange.

According to Bloomberg, the mysterious tumble will increase
concerns about the risks that can befall investors in Hong Kong,
after the 47% plunge by Hanergy Thin Film Power Group Ltd. in
2015.  Bloomberg says the move is also a vindication for Carson
Block, whose Muddy Waters Capital LLC said in December it was
shorting the stock in the conviction the company was "worth close
to zero."  Huishan said at the time allegations in the report were
groundless and contain misrepresentations, the report says.

Muddy Waters alleged in December that Huishan had been overstating
its spending on its cow farms by as much as
CNY1.6 billion to "support the company's income statement,"
Bloomberg recalls.  The report also alleged that the company made
an unannounced transfer of a subsidiary that owned at least four
cow farms to an undisclosed related party and Muddy Waters
concluded that Chairman Yang Kai controls the subsidiary and
farms, according to Bloomberg.

Speaking to Bloomberg News on March 24, Mr. Block said he was
surprised by the tumble.

Before the plunge, Huishan had been one of the most stable stocks
in Hong Kong, Bloomberg notes. It fluctuated in a narrow range
between HK$2.69 and HK$3.23 from the start of October 2015 through
March 24, never swinging more than 5.1% on a closing basis in a
single trading day during that period, says Bloomberg. In July and
August of 2015, the stock surged 60% amid a spate of open-market
purchases by CEO and controlling shareholder Yang.

About 73% of Huishan's shares are held by Champ Harvest Ltd., a
company that's controlled by Yang, Bloomberg discloses.

China Huishan Dairy Holdings Company Limited produces dairy
products. The Company grows and processes alfalfa and
supplementary feeds, processes concentrated feed, operates dairy
farms, and manufactures and sells dairy products, including milk
and whey power products.


COUNTRY GARDEN: Weak Credit Metrics No Impact on Moody's Ba1 CFR
----------------------------------------------------------------
Moody's Investors Service says that Country Garden Holdings
Company Limited's weakened credit metrics for 2016 were largely in
line with Moody's expectations and have no immediate impact on the
company's Ba1 corporate family or the stable rating outlook.

"Country Garden's gross debt leverage increased in 2016, driven by
a rapid rise in debt to fund large-scale land acquisitions. But
this concern is mitigated by its robust operating performance and
improved financial flexibility," says Franco Leung, a Moody's Vice
President and Senior Credit Officer.

Country Garden's debt leverage - as measured by revenue to
adjusted debt (including guarantees for joint ventures and
associates) - deteriorated to around 94% in 2016 from 102% in
2015, because of an increase in reported debt to RMB143 billion at
end-2016 from RMB90 billion a year ago that more than offset a 35%
year-on-year increase in revenue. Likewise, despite robust growth
in EBIT, adjusted EBIT/interest fell moderately to around 3.3x in
2016 from 3.8x in 2015.

However, the company generated strong operating cash flows as a
result of strong sales execution. It achieved sales growth of 145%
year-on-year growth in contracted sales for the first two months
of 2017, after robust 120% year-on-year growth to RMB309 billion
for the full year 2016. Its gross profit margin also improved
slightly to 21.1% in 2016 from 20.2% in 2015.

Consequently, its cash balance increased significantly to RMB96.5
billion at end-2016 from RMB48 billion at end 2015, which resulted
in a mild improvement in its net debt leverage. In addition, its
liquidity profile remained strong, with cash to short-term debt at
211%.

Moody's expects its gross profit margins to remain low at 21%-22%
in the next 12-18 months as the company will maintain a rapid
asset turnover model.

Moody's forecasts that its debt leverage - as measured by revenue
to adjusted debt (including guarantees for joint ventures and
associates) - will trend towards 105%-110% in the next 12-18
months, as revenue growth should outpace the expected increase in
debt.

The company's inability to curb a further deterioration in debt
leverage would heighten downward pressure on its rating.

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

Country Garden Holdings Company Limited, founded in 1997 and
listed on the Hong Kong Stock Exchange, is a leading Chinese
integrated property developer. It also owns hotels that are
located mainly in Guangdong Province and complement its township
development projects.


GUANGZHOU R&F: Moody's Revises Outlook to Neg. & Affirms Ba3 CFR
----------------------------------------------------------------
Moody's Investors Service has revised the ratings outlook of
Guangzhou R&F Properties Co., Ltd. (Guangzhou R&F) and R&F
Properties (HK) Company Limited (R&F HK) to negative from stable.

At the same time, Moody's has affirmed Guangzhou R&F's Ba3 and R&F
HK's B1 corporate family ratings.

R&F HK is a wholly-owned subsidiary of Guangzhou R&F.

RATINGS RATIONALE

"The negative outlook reflects Moody's concerns that Guangzhou
R&F's higher financial risk because of its high debt leverage will
continue in the near term," says Kaven Tsang, a Moody's Vice
President and Senior Analyst.

Moody's is concerned that the higher financial risk associated
with the company's higher debt leverage will add challenges to its
operations if the domestic credit market tightens and the property
market weakens in 2017.

Guangzhou R&F achieved a 12% year-on-year growth in contracted
sales to RMB60.9 billion and a 21% year-on-year growth in revenues
to RMB53.7 billion in 2016.

However, its debt leverage remained high, as measured by
revenue/adjusted debt, which fell to 43% at end-2016 from 47% at
end-2015. Most Ba3-rated peers showed levels of above 70% in 2016.

Moody's notes that the high debt leverage was partly due to its
prefunding arrangements for maturing debt. Its revenue/adjusted
net debt rose to 67% at end-2016 from 61% at end-2015. This level
is also weak when compared to most Ba3 peers, which showed more
than 90% in 2016.

Debt leverage measurement that factors in strength of operating
cash flow also points to relatively high levels of debt leverage.
Moody's estimates that Guangzhou R&F's operating cash flow before
land payment/adjusted debt was at 16% in 2016 which was a slight
improvement from 8% in 2015 but is still weaker than most Ba3
rated peers.

Guangzhou R&F's Ba3 corporate family rating continues to reflect
its sizeable scale and track record of operating through the
cycle. In addition, its good geographic diversification lowers its
exposure to volatility in local economies and the risk of
regulatory changes by local governments.

The Ba3 rating has also factored in the company's stable growth in
contracted sales, which are expected to reach RMB65-70 billion in
2017, supported by its fairly diversified and good quality
projects in first- and major second-tier cities.

Furthermore, the Ba3 rating considers the company's disciplined
approach to land acquisitions. It increased such acquisitions in
2H 2016, but its total land payment of RMB17.5 billion was less
than 30% of its contracted sales.

Its adequate liquidity profile also supports its Ba3 rating.
Cash/short-term debt improved to 136% as of December 2016 from 47%
as of December 2015, due to robust contracted sales and fund
raising from the onshore bond market in 2016.

Guangzhou R&F's high debt leverage has weakened its capacity to
support R&F HK. Therefore, Moody's has also revised the rating
outlook of R&F HK to negative.

R&F HK's B1 corporate family rating continues to reflect its
standalone credit strength and a one-notch rating uplift, based on
Moody's assessments of financial and operating support from its
parent, Guangzhou R&F.

R&F HK's standalone credit profile reflects the stable recurring
cash flows from its high quality investment property portfolio,
tempered by its small scale of operations and weak financial
metrics.

The one-notch rating uplift reflects Moody's expectations that
Guangzhou R&F will extend support to R&F HK for the following
reasons:

(1) Guangzhou R&F's full ownership of R&F HK and its intention to
maintain this stake;

(2) R&F HK's role as the primary platform for the Guangzhou R&F
group to raise funds from offshore banks and the capital markets
to invest in property projects in China, as well as for overseas
investments;

(3) Guangzhou R&F's track record of financial support to R&F HK;
and

(4) The reputational risks that Guangzhou R&F could face if R&F HK
defaults.

An upgrade of Guangzhou R&F's corporate family rating is unlikely
in the near term, given the negative rating outlook.

However, the rating outlook could return to stable if the company
reduces its debt leverage and continues to generate sales growth,
as well as maintain a strong liquidity position.

Moody's believes that Guangzhou R&F will take time to deleverage,
and expects that the company's revenue/adjusted debt to trend
towards 60%-70% by 2018.

On the other hand, downward rating pressure for Guangzhou R&F
could emerge if (1) the company's debt leverage is unlikely to
decline; (2) it suffers sales declines which weaken its liquidity
position and/or credit metrics; or (3) it embarks on aggressive
debt-funded acquisitions.

Upward rating pressure on R&F HK's corporate family rating is
limited in the near term, given the negative outlook.

However, the outlook could change to stable if Guangzhou R&F's
outlook is revised to stable.

On the other hand, downward rating pressure on R&F HK could emerge
if: (1) Guangzhou R&F is downgraded; (2) there is a reduction in
ownership or weakening in support from Guangzhou R&F; or (3) R&F
HK materially accelerates its development operations, and rolls
out an aggressive land acquisition plan, such that its debt
leverage and liquidity deteriorate materially.

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

Established in 1994 and listed on the Hong Kong Stock Exchange in
2005, Guangzhou R&F Properties Co., Ltd. is a large developer in
China's residential and commercial property sector. At end-2016,
the company's land bank totaled 38.5 million square meters (sqm)
in attributable saleable area, spread across 35 locations: 32 in
cities and areas in China, one in Malaysia, and two in Australia.
Mr. Li Sze Lim and Mr. Zhang Li are the company's co-founders and
own 33.52% and 32.02% in equity interests, respectively.

R&F Properties (HK) Company Limited (R&F HK) and its subsidiaries
are principally engaged in the development and sale of properties,
property investments and hotel operations in China. The company
was established in Hong Kong on August 25, 2005. It serves as an
offshore funding vehicle and a holding company for some of
Guangzhou R&F's property projects in China.


KANGDE XIN: Fitch Rates US$300 Million Senior Notes 'BB'
--------------------------------------------------------
Fitch Ratings has assigned Top Wise Excellent Enterprise Co.,
Ltd.'s USD300 million 6% senior notes due 2020 a final rating of
'BB'. Top Wise Excellent Enterprise is a fully owned subsidiary of
Kangde Xin Composite Material Group Co., Ltd. (KDX) and the
proposed notes are unconditionally and irrevocably guaranteed by
KDX.

The notes are rated as the same level as KDX's senior unsecured
debt rating as they represent direct, unconditional, unsecured and
unsubordinated 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 November 10, 2016.

KEY RATING DRIVERS

Low Cost Base: KDX's cost advantages have helped it to maintain
gross profit margin above 31% since 2012; with margin of 37% in
2015. KDX is completely self-sufficient in terms of raw materials
in its lamination film segment, and moderately self-sufficient in
the optical film segment. KDX has also invested heavily in
importing equipment and developing core technologies, such as
ultraprecision mould processing. In contrast, most of its domestic
competitors need to buy raw materials from overseas suppliers and
do not have plants that are able to produce at as high a standard
as those of KDX.

Moderate Market Position: KDX operates in fragmented markets and
has relatively small market shares. However, this is mitigated by
its focus on mid-to-high end products and strong relationships
with its customers, which result in moderate bargaining power with
its customers. KDX is the world's third-largest producer of
display optical film after LG Chemical and Toray Industries, Inc.
It accounted for about 9.4% of global output in 2015. KDX is also
a leading global producer of biaxially oriented polypropylene
(BOPP) lamination film, which is used in packaging.

Optical Film to Erode Margin: Fitch expects the company's
operating EBITDA margin to narrow to around 30% in 2016 from 32.7%
in 2015. KDX's display film revenue expanded over the past few
years to 29% of consolidated revenue in 2015, but gross profit
margin for this segment shrank to around 20% in 2015 from above
30% before 2013. This was mainly due to more supply of display
film in the market, the slowdown in flat panel shipments globally
and a decline in prices of LCD TV panels.

Weak Free Cash Generation: Fitch expects KDX's free cash flow to
continue to be negative in the medium term because of its long
trade receivable days, high capex, and weaker operating EBITDA
margin. KDX's trade receivable days has been very long over past
few years, and was above 130 in 2015. This was mainly driven by
the optical film business, where KDX gives customers a credit term
of 180 days, which is the industry norm, according to the company.
In addition, Fitch expects its 2016 capex to be CNY2.5 billion,
much higher than CNY215 million in 2015, to expand manufacturing
capacity for optical film and add capacity to modules that produce
naked-eye 3D film.

Low Leverage on Equity Funding: Fitch expects KDX to remain in a
net cash position, assuming there are no large debt-funded
acquisitions or investments. KDX's very aggressive capex plans for
the next three years (CNY2.5 billion per year) would be funded via
secondary equity offerings. It has raised a total of CNY4.7
billion from 2012 to 2015 in equity offerings after its IPO in
2010, which has kept leverage low, even after several acquisitions
and high capex over the past few years. It also has raised CNY4.8
billion via equity sales in September 2016.

KEY ASSUMPTIONS

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

- Gross profit margin erosion in 2017 and beyond
- Capex of CNY2.5 billion a year for 2016, 2017 and 2018
- No major M&A

RATING SENSITIVITIES

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

- Major improvement in KDX's market position
- Positive free cash flow on a sustained basis

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

- Operating EBITDA margin sustained below 25%
- Failure to sustain revenue growth; although this may be offset
   by free cash flow turning positive
- Failure to maintain a net cash position
- Sustained decrease in cash flow from operations


KWG PROPERTY: Fitch Rates US$400MM Senior Notes Due 2022 'BB-'
--------------------------------------------------------------
Fitch Ratings has assigned China-based KWG Property Holding
Limited's (BB-/Stable) USD400 million 6.00% senior notes due 2022
a final rating of 'BB-'.

The notes are rated at the same level as KWG's senior unsecured
rating because they constitute its 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
March 8, 2017.

KWG's ratings are supported by its established homebuilding
operations in Guangzhou, strong brand recognition in higher-tier
cities across China, consistently high margins, strong liquidity
and healthy maturity profile. KWG's ratings are constrained by the
small scale of its development and investment property business,
as well as the higher leverage after its land purchases in 2016.

KEY RATING DRIVERS

Established in Guangzhou; Diverse Coverage: KWG's land bank is
diversified across the Pearl River Delta, Yangtze River Delta,
Bohai Rim and southern China. The company ranked among the top 10
homebuilders by sales in 2015 in Guangzhou, the capital of China's
southern Guangdong province. KWG had 10.4 million square metres
(sq m) of good-quality land at end-June 2016 that was spread
across 11 cities in China. The land bank had average land cost of
CNY3,470/sq m and is sufficient for four to five years of
development.

Sites in Tier 1 cities made up 53% of the land bank by area, or
58% by value; while sites in Tier 1 and upper Tier 2 cities made
up 70% of the land bank by area or 73% by value. KWG has a prudent
approach when entering new cities - it conducts due diligence for
around three years before entering, usually with one or two
projects in partnership with reputable local developers.

Strong Brand Name: KWG has established strong brand recognition in
its core cities by focusing on first-time buyers and upgraders,
and appeals to these segments by engaging international architects
and designers and setting high building standards. KWG's high-
quality products enable it to attract affluent purchasers, and
command higher pricing than some nearby projects by reputable
developers. The company's sell-through rate has been high at 60%-
68% since 2012.

Diverse Property Products: KWG develops both residential and
commercial properties to meet demand from the market and respond
to changes in the property sector. Commercial properties accounted
for about 32% of its pre-sales in 1H16, with about one third of
the sales from office and retail units, and the remainder from
serviced apartments.

High Margin Through Cycles: KWG's EBITDA margin has remained at
30%-35% through different business cycles and is one of the
highest among Chinese homebuilders. The company has made
protecting the margin one of its key business objectives. To this
end, KWG strives to maintain higher-than-average selling prices
through its consistent, high-quality products. Its experienced
project teams also ensure strong execution capability and strict
cost controls. KWG's selling, general and administrative expenses
cost is lower than peers' at 6% of revenue.

Moreover, KWG has low unit land cost of 20%-25% of its average
selling price due to its strong foothold in Guangzhou, where land
prices have not increased as much as in other Tier 1 cities over
the years. However, KWG's EBITDA margin may decline from the high
30% range to the lower 30% range from 2H17 if growth in selling
prices lags the land price surge in 2016 in KWG's core cities.

Land Costs Drive Up Leverage: Fitch expects KWG's proportionate
consolidated leverage, measured by net debt-to-adjusted inventory,
to increase to 43% by the end of 2016 (2015: 35%, 1H16: 29%). The
increase will be driven by high land premiums, with around CNY10
billion scheduled to be paid in 2H16.

KWG acquired 12 land parcels in 2016 with attributable gross floor
area (GFA) of 2.37 million sq m and land premium of CNY23.6
billion. Some of the parcels were in Shanghai, Hangzhou and
Tianjin, where land costs have surged, resulting in an increase in
land cost to CNY4,030/sq m, compared with CNY3,819/sq m in 2015
and CNY3,300/sq m in 2014.

Leverage Reasonable, To Improve: The rise in KWG's leverage is
mitigated by the good quality of recent land purchases and that
the acquisitions maintain its land bank at four to five years of
development activity. Fitch expects leverage to gradually trend
down to 40% in 2017-2019, as KWG's presales grow and land
acquisition in higher-tier cities slows down.

JVs with Leading Industry Peers: As a result of KWG's prudent
expansion strategy, it has a long record of partnership with
leading industry peers, including Sun Hung Kai Properties Limited
(A/Stable), Hongkong Land Holdings Limited (A/Stable), Shimao
Property Holdings Limited (BBB-/Stable), China Vanke Co., Ltd.
(BBB+/Stable), China Resources Land Ltd (BBB+/Stable) and
Guangzhou R&F Properties Co. Ltd. (BB/Stable). These partnerships
helped KWG achieve lower financing costs, reduce competition in
land bidding and improve operational efficiency. JV presales made
up 48% and 45% of KWG's total attributable presales in 2015 and
1H16, respectively. JV cash flows are well-managed, and
investments in new JV investments are mainly funded by excess cash
from mature JVs. Leverage is also lower at the JV level because
land premiums are usually funded at the holding company level and
KWG pays construction costs only after cash is collected from
presales.

DERIVATION SUMMARY

KWG is well positioned among its peers with 'BB-' ratings.

KWG's contracted sales of CNY20 billion-25 billion are comparable
to Logan Property Holdings Company Limited's (BB-/Stable) around
CNY29 billion, Yuzhou Properties Company Limited's (BB-/Stable)
around CNY23 billion and China Aoyuan Property Group Limited's
(BB-/Stable) around CNY26 billion. However, KWG's EBITDA margin of
over 35% is one of the best within the 'BB-' peer group and is
better than that of 'BB' rated companies such as Guangzhou R&F
Properties and Sunac China Holdings Limited (BB/Negative). This is
offset by KWG's slower churn of around 0.7x, compared with around
1.5x for CIFI Holdings (Group) Co. Ltd. (BB-/Positive) and Future
Land Development Holdings Limited (BB-/Positive), both of which
have lower EBITDA margins of around 25% and 19%, respectively. In
addition, KWG's leverage of around 40% is slightly weaker than
CIFI's at around 35% and Aoyuan's at around 35%.

KEY ASSUMPTIONS

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

- Contracted sales GFA to remain flat in 2016, then grow at
   5% in 2017 and 8% in 2018.
- Average selling prices to increase 10% a year in 2016 and
   2017, then 1% a year from 2018.
- EBITDA margin (excluding capitalised interest) to slowly trend
   down to 32% from 35% for 2016-2019.
- Land replenishment rate at 0.8x contracted sales GFA
   (attributable), assuming KWG maintains a land bank at about
   five years of development activity.
- Land acquisition cost (attributable) at 60% of contracted
   sales in 2016, 40%-45% from 2017.
- Leverage to improve, but remain at about 40%-45% for
   2016-2019.

RATING SENSITIVITIES

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

- EBITDA margin sustained above 30%;
- net debt/adjusted inventory sustained below 35%; and
- attributable contracted sales sustained above CNY30 billion
   (2016: CNY22 billion).

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

- EBITDA margin sustained below 25%; and
- net debt/adjusted inventory sustained above 45%.

LIQUIDITY

KWG has well-established diversified funding channels and strong
relationships with most foreign, Hong Kong and Chinese banks. KWG
has strong access to both domestic and offshore bond markets, and
was among the first few companies to issue panda bonds. KWG's
funding cost fell to 6.8% in 1H16, from 7.4% in 2015, following a
series of refinancing activities.

At end-June 2016, KWG had available cash of CNY20.5 billion and
unutilised credit facilities (uncommitted) of CNY16 billion, which
were enough to cover the repayment of its short-term borrowing
(CNY5.5 billion) and outstanding land premium. The company repaid
most of its US dollar debt financing when the opportunity arose.
Fitch expects the group to maintain sufficient liquidity to fund
development costs, land premium payments and debt obligations
during 2016-2018 due to its diversified funding channels, healthy
maturity profile and flexible land acquisition strategy.


NEXTEER AUTOMOTIVE: Moody's Alters Outlook Pos. & Affirms Ba1 CFR
-----------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on Nexteer Automotive Group Limited's Ba1 corporate family
rating and senior unsecured debt rating.

At the same time, Moody's has affirmed the company's Ba1 corporate
family rating and senior unsecured debt rating.

RATINGS RATIONALE

"The positive ratings outlook reflects Nexteer's track record of
improving its credit and business profile in terms of scale,
geographic and customer diversification, profitability, and debt
leverage; as well as Moody's expectations that this trend will
continue over the next 12-18 months," says Gerwin Ho, a Moody's
Vice President and Senior Analyst.

Moody's further expects Nexteer's revenue growth to moderate to
about 5% year-on-year in the next 12-18 months, after growing 14%
year-on-year in 2016 to reach USD3.8 billion, reflecting Moody's
expectations of slower growth in global auto sales.

The Electric Power Steering (EPS) business, which made up 62% of
the company's revenue in 2016, will continue to push sales growth
in the next 12-18 months, because of strong demand for improved
fuel efficiency in vehicles and the increasing penetration of EPS
in developing auto markets, such as China (Aa3 negative) and
Brazil (Ba2 stable).

At the same time, Moody's expects Nexteer's profitability, as
measured by its adjusted EBITA margin -- to further improve to
about 9.8% in the next 12-18 months.

The company's growth in scale and increased contributions from the
higher margin EPS business have improved its adjusted EBITA margin
from 3.9% in 2013.

Nexteer's adjusted debt fell to about USD618 million at end-2016
from a high of USD784 million at end-2014. During the same period,
adjusted EBITDA rose to about USD470 million from USD267 million.

Accordingly, its debt leverage -- as measured by adjusted
debt/EBITDA -- declined to about 1.3x at end-2016 from 2.9x at
end-2014.

Moody's expects the company's debt leverage to further decline to
around 1.2x in the next 12-18 months, which is strong for its
standalone credit strength.

"Nexteer's growth in scale is accompanied by the diversification
of its customer and geographic exposures," says Ho who is also the
Lead Analyst for Nexteer.

Nexteer reduced its revenue concentration in General Motors
Company (GM, Baa3 stable) and subsidiaries to 42% in 2016 from 54%
in 2013 by expanding its customer base, especially in China.

In addition, it has shown a lower level of geographic
concentration, with revenue from North America declining to 65% in
2016 from 71% in 2013. Its exposure to the fast-growing China
market also rose to 22% from 11% during the same period. Moody's
expects the company's China revenue exposure to trend towards 25%
in the next 12-18 months.

Nexteer's Ba1 corporate family rating incorporates its standalone
credit strength and a one-notch uplift, based on Moody's
expectations of strong support from Aviation Industry Corporation
of China (AVIC, unrated), which holds an effective ownership of
32% in Nexteer and is the ultimate owner of AVIC Automotive
Systems Holding Co., Ltd. (AVIC Auto, unrated).

The strong support from AVIC includes operational support on
business development, customer introductions and access to funding
and financial support, in times of need.

AVIC has a track record of providing financial support, as
demonstrated by its guarantee on 51% of Nexteer's loan from The
Export-Import Bank of China (Aa3 negative). However, the
significance of the guarantee has diminished, as the amortizing
loan, which will mature in 2020, had fallen to represent about 43%
of Nexteer's total debt at end-2016 from 73% at end-2013.

Nexteer's standalone credit profile reflects (1) strong barriers
to entry; (2) the company's track record and global footprint; (3)
the good growth of its EPS product; and (4) an expectation that it
will maintain its sound credit metrics.

On the other hand, Nexteer's standalone credit profile is
constrained by (1) its concentration in terms of customer revenue;
and (2) its small scale and geographic concentration.

Nexteer's liquidity position is strong, as reflected in its cash
to short-term debt coverage of about 6.4x at end-2016.

The rating could be upgraded if Nexteer demonstrates the ability
to: (1) sustain its credit metrics, including maintaining
profitability, as measured by EBITA margins, and leverage, such
that adjusted debt/EBITDA stays below 1.5x-2.0x on a sustained
basis; (2) further improve its business profile, including
decreasing its customer and geographic concentration, and
expanding its business scale; and (3) maintain its prudent
financial policy, as characterized by low leverage, good
liquidity, and disciplined capital expenditures and acquisitions.

On the other hand, the ratings outlook could return to stable if
Nexteer (1) exhibits a decline in EBITA margins and a rise in debt
leverage above 2.0x debt/EBITDA; (2) lowers its customer and
geographic diversity and fails further to expand to its scale; or
(3) pursues an aggressive financial policy that leads to a
deterioration of its credit metrics.

Any weakening in support from its ultimate parent, AVIC, due to a
change in business strategy or regulatory reasons will be negative
for the ratings.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.

Headquartered in Auburn Hills, Michigan, and listed on the Hong
Kong Stock Exchange in October 2013, Nexteer Automotive Group
Limited manufactures steering and driveline systems. The company
had 23 manufacturing plants across North and South America, Europe
and Asia at end-2016.

At end-2016, Nexteer was 67%-owned by Pacific Century Motors, Inc.
(unrated), which is in turn 51%-owned by AVIC Automotive Systems
Holding Co., Ltd. (AVIC Auto, unrated), and 49% owned by Beijing
E-Town International Automotive Investment & Management Co. Ltd.
(unrated), which is controlled by Beijing's municipal government.

AVIC Auto is 93% owned by Aviation Industry Corporation of China
(unrated), a Chinese central government-owned enterprise.


* CHINA: Banks Sweat as Liquidity Crunch Looms, WSJ Reports
-----------------------------------------------------------
The Wall Street Journal reports that a new specter is haunting
China's financial system: the negotiable certificate of deposit.

An explosion in banks' use of the bondlike loans, whose durations
range from a month to a year, is testing Beijing's resolve to cure
the economy of its addiction to debt-fueled growth and investment
booms, the Journal says.

As authorities push up key short-term interest rates in their
campaign to deflate asset bubbles swelled by borrowed money, the
cost of these NCDs is rising so fast that it is starting to expose
banks to the risk of investment losses and abrupt funding
squeezes, the Journal relates. Beijing has raised the rates twice
since late January.

The scary prospect: a repeat of the crippling cash crunch of 2013,
the Journal says.

"NCDs carry a lot of risk, and if not handled properly they could
lead to a systemwide liquidity crisis," the Journal quotes Liu
Dongliang, senior analyst at China Merchants Bank, as saying.

According to the Journal, banks, mostly small or midsize, have
been raising record sums via NCDs, selling CNY4.4 trillion
($639 billion) worth this year, 65% more than in the same period
of 2016.  They use the proceeds to buy higher-yielding, longer-
term assets like corporate bonds or investment products issued by
fellow banks, the Journal states.

The new toy initially offered the attractions of low cost and no
collateral requirements, but since October the average cost of
issuing the AA-rated three-month NCDs has risen to 4.72% from
2.90% - in some cases exceeding yields on AA-rated one-year
corporate bonds, the report says.

"If the issuance cost rises further and exceeds your investment
returns, you'll have no choice but to dump your bonds, which will
further pressure an already-fragile bond market," Mr. Liu, as
cited by the Journal, said.

According to the Journal, China introduced the NCD in 2013 as part
of a broader overhaul to end a rigid interest-rate regime and let
banks set deposit and lending rates freely. The market took off
last year, when issuance hit CNY13 trillion, up from CNY5.3
trillion in 2015 and just CNY899 billion in 2014, the Journal
discloses.

This boom came just as Beijing scored an initial victory in
cutting down banks' use of another form of short-term loan -
repurchase agreements, or repos - for similar speculative
purposes, says the Journal.  According to the report, the total
transaction value of repos, which use bonds as collateral, fell to
CNY35.8 trillion in February from a record CNY59.8 trillion in
August, when the People's Bank of China began tightening. The PBOC
cut the fund supply for the most popular overnight and seven-day
repos, raised the borrowing costs and imposed restrictions on
leveraged investment using the tool.

The Journal says financial institutions ranging from banks to
brokerages to private-equity funds had borrowed enough via repos
to leverage their bets as much as four to five times, seeking to
maximize returns from dwindling bond yields.

"You could say that NCDs have replaced repos as the new toy for
banks to add leverage," the Journal quotes Wang Ming, a partner at
Shanghai Yaozhi Asset Management Co., a bond fund that manages
CNY2 billion in assets, as saying.

As issuance costs rise, more Chinese banks are being forced to
sell new NCDs just to repay old ones, the Journal notes.

"When your borrowing cost is getting close to 5% and your bond is
yielding only a little over 4%, you must be borrowing money to
prevent a liquidity crisis," Mr. Wang, as cited by the Journal,
said.

Even without the fresh pain of rising interest rates, the mismatch
between the NCDs' short lifespan and the bonds' long duration
leaves banks with a liquidity hole needing constant plugging, the
Journal states.

The Journal says anxiety among small banks, which have limited
access to funding, about redeeming maturing NCDs could only
intensify as China's money market shows fresh signs of stress. The
benchmark seven-day repo rate hit a 26-month high on Tuesday,
accompanied by talk that a couple of small, rural lenders had
defaulted on interbank loans.

The Journal adds that the pressure is imminent: According to the
Rhodium Group, CNY1.53 trillion in NCDs will mature this month,
while calculations by analysts at China International Capital
Corp. indicate that around half of the NCDs outstanding are
maturing between February and May.

The worry is that if one bank has trouble rolling over or defaults
on its NCDs, it could cause chaos like that of 2013, when
widespread panic pushed the cost of overnight loans to a record
25%, according to the Journal.

If rising interest rates further squeeze NCD issuers' profit
margin or cause investment losses, they may be able to survive for
a time, write the CICC analysts - but "if it persists for more
than two quarters, many banks won't be able to cope with it," adds
the Journal.



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


ALL KIND: CARE Assign B+ Rating to INR30.15cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of All
Kind Healthcare Unit-III (AKH), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            30.15       CARE B+;Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of All Kind Healthcare
Unit-III (AKH) is constrained by its small scale and short track
record of operations, weak financial risk profile characterised by
its with low net-worth base, leveraged capital structure and weak
debt coverage indicators. The rating is further constrained by the
partnership nature of constitution, the firm's exposure to
regulatory risk & raw material volatility risk and its presence in
a competitive nature of industry. The rating, however, derives
strength from the experienced partners along with favourable
demand outlook for pharmaceutical products.

Going forward, the ability of the firm to scale-up its operations
while improving profitability margins and overall solvency
position would remain the key rating sensitivities.
Detailed description of the key rating drivers

Key Rating Weaknesses
Small scale of operations coupled with low net-worth base.
The firm got established in December 2014, thus, the firm's scale
of operations has remained low marked by Total Operating Income
(TOI) of INR0.78 crore in FY16 (refers to the period April 01 to
March 31) and tangible net worth of INR0.52 crore as on March 31,
2016.

Weak financial risk profile
The capital structure stood highly leveraged marked by overall
gearing ratio of 65.69x as March 31, 2016, owing to debtfunded
capex undertaken by the firm in the past. Additionally, the debt
coverage indictors remained stressed as reflected by interest
coverage ratio of -0.18x in FY16 and total debt to GCA of -99.29x
for FY16.

Exposure to regulatory risk and raw material price volatility
Pharmaceutical industry is a closely monitored and regulated
industry and as such there are inherent risks and liabilities
associated with the products and their manufacturing. Furthermore,
the key raw materials required for the manufacturing primarily
include API (Active Pharmaceuticals Ingredients) that constitute
major cost of sales, hence the firm remains susceptible to
commodity price variation risks.

Presence in competitive industry
The competitive pressure in the domestic formulation market has
been rising steadily. While on one hand, this has been prompted by
significant increase in investments by domestic players in
marketing efforts through expansion in field force, on the other
hand, Multi-National Companies have also renewed their focus on
India.

Partnership nature of its constitution
AKH's constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the
time of personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners.

Key Rating strengths

Experienced promoters in pharmaceutical industry
The partners have work experience of more than one decade in
pharmaceutical industry and have accumulated this experience
through their association with Avenue Remedies Private Limited, an
associate concern engaged in manufacturing of formulations since
2004 (operations discontinued in 2010).

Positive outlook of Indian pharmaceutical industry
The Indian pharmaceutical formulation industry is set to benefit
from the impending patent expiry in the regulated markets. Patent
expiry of branded drugs will boost the demand for Indian generic
products. On the domestic front, the demand will be driven by
increasing per capita income, shift in disease profile from acute
to chronic diseases and huge potential for expanding lower health
insurance penetration in the country.

All Kind Healthcare Unit-III was established as a partnership firm
in December 2014 with Mr. Vivek Singh and Mr. Amit Kumar as its
partners sharing profit and loss equally. The entity was earlier
engaged in manufacturing of packaging material, however, commenced
manufacturing of pharmaceutical formulations (cosmetics) w.e.f.
March 2016 at its manufacturing facility located in Baddi,
Himachal Pradesh, having an installed capacity of manufacturing 12
crore tubes per annum as on June 30, 2016. The product profile of
the firm includes creams, face wash, hair gel etc. The firm
procures its main raw material i.e. Active Pharmaceutical
Ingredients (API) from wholesalers located across India. The
finished products are mainly supplied to Leeford group of
companies. Besides AKH, the partners are also engaged in another
group concerns, namely, All Kind Healthcare (AH) and Leeford
Healthcare Limited (LHL). AH was established in 2010 and is
engaged in manufacturing of pharmaceutical formulations
(medicines). LHL got incorporated in 2006 and is engaged in
trading of pharmaceutical formulations.

In FY16 (refers to the period of April 1 to March 31), AKH has
achieved a total operating income (TOI) of INR0.78 crore with net
loss of INR4.24 crore as against total operating income of INR0.01
crore with net loss of 0.03 crore in FY15. In 9MFY17
(Provisional), the firm has achieved TOI of INR65.59 crore with
PBILDT margin of 7.64%.


ANGEL FIBERS: CARE Assigns B+ Rating to INR15cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Angel
Fibers Private Limited (AFPL), as:

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

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Angel Fibers Private
Limited (AFPL) are constrained on account of high leverage on the
back of the recently concluded predominantly debt funded
Greenfield project, moderate debt coverage and working capital
intensive operations. The ratings are further constrained by
susceptibility of its profitability to volatile cotton prices and
presence in the highly fragmented and competitive cotton industry.

The weaknesses are partially offset by, experienced promoters and
strategic location of its manufacturing facilities in the cotton
producing cluster of Gujarat along with government's fiscal
benefits.

Increase in scale of operations along with generation of envisaged
cash accruals and reduction in debt levels are the key rating
sensitivity. AFPL's ability to pass on the volatility associated
with cotton prices to its customers and efficient management of
working capital requirements are also crucial from a credit
perspective.

Detailed description of the key rating drivers

Key Rating Weaknesses
High leverage and moderate debt coverage indictors: The Company
had leveraged capital structure as marked by high overall gearing
of 2.31 times as on March 31, 2016. The capital structure is
leveraged due to modest net-worth base on account of nascent stage
of operations, loans availed to fund capital expenditure of
manufacturing facility and working capital intensive nature of
operations. Furthermore, it had moderate debt coverage indicators
on account of high debt levels.

Working capital intensive nature of operations: The operations of
AFPL are working capital intensive as the company purchases most
of its raw material i.e. raw cotton in cash while it extends
credit period of 30-45 days to its customers and keeps inventory
of 40-60 days of raw materials The liquidity indicators of AFPL
were modest marked by high utilization of working capital limits
to fund its working capital requirements.

Susceptibility of profitability to volatile cotton prices and
presence in the highly fragmented and competitive industry:
AFPL's profitability margins are susceptible to volatility
associated with cotton prices. AFPL operates in a highly
fragmented and unorganized market of the textile industry marked
by a large number of small sized players. The industry is
characterized by low entry barrier due to minimal capital
requirement and easy access to customers and supplier.

Key Rating Strengths
Experienced promoters: The promoters of AFPL have over two decade
of experience in cotton ginning and pressing, which has helped it
in terms of raw material procurement, ease of managing day-to-day
operations and marketing.

Strategically located manufacturing unit along with government's
fiscal benefits: AFPL's presence in the cotton producing region
has geographical advantage in terms of lower logistics expenditure
(both on the transportation and storage) & ready availability of
raw materials. AFPL's spinning project is eligible for various
incentives by the state as well as central government.

Rajkot-based (Gujarat), AFPL is a private limited company
incorporated in February, 2014 by Mr. Ashok Dudhagara, Mr.
Kantilal Savalia, Mr. Parsotam Dudhagara, Mr. Bakulesh Jani and
Mr. Jaydeep Dobariya. AFPL manufactures carded, combed and compact
cotton yarn ranging between 20s to 50s counts. AFPL commenced its
operations in June, 2015 with manufacturing capacity of 19,584
spindles [4,400 metric tonne per annum (MTPA)] of cotton yarn. The
major raw material for manufacturing cotton yarn is ginned cotton
which is being procured from the local market of Rajkot.

As per audited financials of FY16 (refers to the period April 1 to
March 31), AFPL reported total operating income (TOI) of INR51.02
crore with net loss of INR1.05 crore. Based on provisional
financials of 9MFY17, AFPL reported TOI of INR67.47 crore with
profit before interest, lease, depreciation and tax (PBILDT) of
INR9.49 crore.


ASSOCIATED COLOURS: CARE Lowers Rating on INR0.49cr Loan to B
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Associated Colours Industries Private Limited (ACIPL), as:
                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             0.49       CARE B; Stable Revised
                                     from CARE BB-

   Short-term Bank
   Facilities            14.05       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in the long-term rating assigned to the bank
facilities of Associated Colours Industries Private Limited
(ACIPL) is primarily due to decline in its scale of operations and
profitability coupled with deterioration in capital structure,
debt coverage indicators and significant elongation in operating
cycle during FY16 (refers to the period April 1 to March 31).

The ratings further continue to remain constrained on account of
susceptibility of operating margins to volatility in input costs
and foreign exchange fluctuations and its overall financial risk
profile marked by leveraged capital structure, weak debt coverage
indicators and working capital intensive nature of operations.

The ratings, however, continue to derive strength from the vast
experience of the promoters in dyes and intermediaries business
along with location advantage due to presence in the chemical
cluster.

The ability of ACIPL to increase its scale of operations and
improve its overall financial risk profile by increasing profit
margins, improving its capital structure and debt coverage
indicators along with efficient working capital management are
the key rating sensitivities.

Detailed description of key rating drivers

Key Rating Weaknesses
Decline in scale of operations and profitability: There was a de-
growth in Total Operating Income (TOI) of ACIPL by 70.83% y-o-y to
INR10.94 crore in FY16 owing to decrease in demand from export
market. PBILDT in absolute terms also declined by 36.40% while PAT
also declined significantly to INR0.08 crore in FY16 from INR0.56
crore in FY15. Deterioration in capital structure and debt
coverage indicators along with elongation in operating cycle: An
increase in the total debt level, led to a deterioration in the
capital structure as marked by an overall gearing ratio which
stood leveraged at 5.32 times as on March 31, 2016 as against 4.91
times as on March 31, 2015, while the debt coverage indicators as
marked by total debt to GCA deteriorated and stood weak at 27.23
times as on March 31, 2016. The interest coverage ratio also stood
moderate in FY16. The operations are working capital intensive in
nature as marked by an elongation in working capital cycle that
remained at 423 days in FY16, while the average working capital
limit utilization remained full during the past 12 months ended
January 31, 2017. Susceptibility of operating margins to
volatility in input costs and foreign exchange fluctuations: Key
raw materials of dyes and intermediate are derivatives of crude
oil which are fluctuating in nature, while ACIPL is also engaged
in imports and exports which exposes it to foreign exchange
fluctuation risks; thus affecting the profit margins of ACIPL.

Key Rating Strengths
Vast experience of promoters: The key promoter Mr. Vishal Shah has
an experience of more than 15 years in the dye and intermediate
industry and hence is well-versed with the industry.

Location advantage: ACIPL is located in Gujarat which is the
chemical hub of India and benefits in terms of logistics and
raw material availability.

Ahmedabad-based ACIPL was formed consequent to de-merger of
Associated Dyestuff Private Ltd (ADPL) during January 2012. ADPL
was promoted by the late Mr. Hemendra Shah in 1977 under the name
of Associated Intermediates & Chemicals (AIC) as a partnership
firm by acquiring a reactive dye unit at Vatva, Ahmedabad. AIC was
subsequently converted into a proprietary concern in 1986 and
later on into private limited company as ADPL in 2000. ACIPL and
ADPL had filed petitions for demerger in Hon'ble Gujarat High
Court in March 2013 which got approved in September 2013 with
effect from April 01, 2012. The main products manufactured by
ACIPL are reactive dyes and reactive acid dyes which primarily
finds application in the textile industry.

During FY16, ACIPL reported a total operating income (TOI) of
INR10.94 crore with a PAT of INR0.08 crore as against TOI of
INR37.50 crore with a PAT of INR0.56 crore in FY15. During 9MFY17
(Provisional), ACIPL reported a TOI of INR11.36 crore.


BABA BISWANATH: CRISIL Assigns B+ Rating to INR4MM Cash Loan
------------------------------------------------------------
CRISIL Ratings has revoked the suspension of its ratings on the
bank facilities Baba Biswanath Agro Products Pvt Ltd (BBAPPL) and
assigned its 'CRISIL B+/Stable' rating to the long-term bank
facilities of BBAPPL. The ratings were previously 'Suspended' by
CRISIL vide Rating Rationale dated April 20, 2016, since BBAPPL
had not provided necessary information required for a rating
review. BBAPPL has now shared the requisite information enabling
CRISIL to assign ratings to its bank facilities.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Cash Credit            4           CRISIL B+/Stable (Assigned;
                                      Suspension Revoked)

   Long Term Loan         1.98        CRISIL B+/Stable (Assigned;
                                      Suspension Revoked)

The rating reflects the company's below average financial risk
profile marked by small networth and high gearing, small scale of
operations, and susceptibility to volatility in raw material
prices and changes in government regulations. These weaknesses are
partially offset by the extensive experience of its promoters in
the rice milling industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and exposure to intense competition:

With turnover of INR23.68 crore for fiscal 2016 and milling
capacity of 4 tonne per annum, scale remains small in the
competitive rice milling industry. This limits bargaining power
against suppliers and customers, thereby constraining
profitability.

* Susceptibility of operating margin to government regulations
  and raw material price volatility:

The domestic rice industry is highly regulated in terms of paddy
prices, export/import policy for rice, and rice release mechanism,
which affects the credit quality of players in the industry. Rice
prices also depend on supply, which in turn depends on the buffer
stock position of rice and availability of paddy, both of which
are regulated by the government.

* Below average financial risk profile:

Networth was small at INR3.06 crore and gearing high at 2.21 times
as on March 31, 2016. However, debt protection metrics were
moderate, with interest coverage and net cash accrual to total
debt ratios of 1.67 times and 0.09 time, respectively, for fiscal
2016.

Strength

* Extensive experience of promoters:

Mr. Susuanta Ghosh, who took over the company in December 2016 and
is presently managing the operations has a longstanding presence
in the rice milling industry which has enabled him develop good
industry insight and establish cordial relations with the farmers
and traders alike. The extensive industry experience of the
promoters is expected to support the business profile of BBAPPL.

Outlook: Stable

CRISIL believes BBAPPL will continue to benefit over the medium
term from management's extensive experience. The outlook may be
revised to 'Positive' if substantial and sustained increase in
revenue and accruals along with improved capital structure and
working capital management leads to a better financial risk
profile. The outlook may be revised to 'Negative' if aggressive
debt-funded capital expenditure, decline in accrual, or stretched
working capital leads to deterioration in the financial profile,
particularly liquidity.

Incorporated in 1996 and promoted by Mr. Samir Kundu, Mr. Chandan
Kundu, and Mr. Malay Kundu, BBAPPL mills and processes paddy into
rice, rice bran, broken rice, and husk. In December 2016 the
company was taken over by Mr. Susuanta Ghosh and currently he is
at the helm of affairs.

For fiscal 2016, BBAPPL reported a profit after tax (PAT) of
INR0.13 crore on an operating income of INR23.68 crore as against
a PAT of INR0.06 crore on an operating income of INR25.96 crore
the previous fiscal.


CAPITAL ENTERPRISES: CARE Assigns 'D' Rating to INR12cr Loan
------------------------------------------------------------
CARE Ratings has been seeking information from Capital Enterprises
(CE) to monitor the rating vide e-mail communications/letters
dated July 26, 2016, February 16, 2017, February 28, 2017 and
numerous phone calls. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the rating. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.

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

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            12.00       CARE D; ISSUER NOT
                                     COOPERATING; based on best
                                     Available information

The rating takes into account ongoing delay in the servicing of
the bank debt obligations on account of the stretch
liquidity position of the company.

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

Capital Enterprises (CE) was established in 2000 as a
proprietorship entity by Mrs. Senbom Taipodia under the guidance
of Mr. Dayanand Thakur (Husband of Mrs. Senbom Taipodia) of
Arunachal Pradesh. Since inception; the entity has been engaged in
electrical, mechanical, infrastructural works and civil
construction in the state of Arunachal Pradesh. The day-to-day
affairs of the entity are looked after by Mrs. Senbom Taipodia
with adequate support from her husband Mr. Dayanand Thakur. Both
are having more than one and a half decade of experience in the
relevant line of business.


CONOR GRANITO: CRISIL Reaffirms B+ Rating on INR16.5MM Term Loan
----------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank loan
facilities of Conor Granito Private Limited (CGPL) at 'CRISIL
B+/Stable' while reassigning its short term rating at 'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          4        CRISIL A4 (Reassigned)
   Cash Credit             8        CRISIL B+/Stable (Reaffirmed)
   Term Loan              16.5      CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the working capital intensity of
operations, average financial risk profile and modest scale of
operations in a competitive industry. These weaknesses are
partially offset by the quick stabilisation of operations driven
by the extensive experience of its promoters in the ceramic
industry and strategic location of plant at Morbi, Gujarat, which
ensures availability of raw materials and labour.

Key Rating Drivers & Detailed Description

Weaknesses

* Working-capital-intensive operations: CGPL is expected to
  have large working capital requirement, reflected in gross
  current assets of 211 days as on March 31, 2017, mainly because
  of large receivables and inventory. The company will have to
  maintain inventory of 100 days, in line with industry practice.
  Working capital requirement will be partly supported by credit
  from suppliers.

* Average financial risk profile: Financial risk profile is
  expected to remain average marked by moderate gearing of 1.4
  times as on March 31, 2017 and average debt protection metrics
  with interest coverage of 1.81 times and net cash accruals to
  total debt of 0.09 times for fiscal 2017.

* Modest scale of operations in a competitive industry: CGPL's
  scale of operations is modest as reflected in expected revenue
  of Rs.35.0 crore in FY17. The company has achieved revenues of
  around Rs. 29.04 crores till February 2017, its first year of
  operations. The modest scale of operations limits its
  bargaining power with suppliers as well as customers.

Strengths

* Extensive experience of promoters in the ceramic industry:
  Benefits from the promoters' experience of around three
  decades, and healthy relationships with dealers will continue
  to support the business risk profile. Prior to setting up CGPL,
  the promoters were in the vitrified and wall tiles industry
  through associate entities. The same has allowed the company
  to scale up its operations in a timely manner post
  operationalization in April 2016.

* Strategic location ensuring availability of raw materials and
  labor: The manufacturing facilities are in Morbi, which
  accounts for 65-70% of India's ceramic tile production. CGPL
  is likely to derive significant benefits from being present
  in Morbi; these include easy access to clay (main raw material)
  and availability of contractors and skilled labourers. Other
  critical infrastructure such as gas and power are also readily
  available in Morbi. Transportation cost is low since it is
  located close to the major ports of Kandla and Mundra (both in
  Gujarat).

Outlook: Stable

CRISIL believes CGPL will benefit over the medium term from the
extensive industry experience of its promoters. The outlook may be
revised to 'Positive' if working capital management is efficient
and increase in revenue and profitability, leads to substantial
cash accrual, leading to improvement in financial risk profile.
The outlook may be revised to 'Negative' if low revenue or
operating profitability or cash accrual weakens financial risk
profile, particularly liquidity.

Incorporated in 2015, CGPL is Morbi, Gujarat based company engaged
into manufacturing of vitrified tiles. The commercial operations
of the company started in April 2016.


DP BANSAL: CARE Assigns B+ Rating to INR7.35cr LT Loan
------------------------------------------------------
CARE Ratings has been seeking information from D.P Bansal
Commercial Company Private Limited (DBCPL) to monitor the rating
vide e-mail communications/letters dated July 28, 2016, February
16, 2017, February 28, 2017 and numerous phone calls. However,
despite our repeated requests, the company has not provided the
requisite information for monitoring the rating. In line with the
extant SEBI guidelines CARE has reviewed the rating on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             7.35       CARE B+; ISSUER NOT
                                     COOPERATING; based on best
                                     Available information

The rating on DBCPL's bank facilities will now be denoted as
CARE B+; ISSUER NOT COOPERATING.

The rating takes into account intensely competitive nature of the
industry and working capital nature of operations. Moreover, the
rating continues to derive strengths by the satisfactory
experience of the promoters and long track record of operations.
Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating.

Detailed Description of the Key Rating Drivers

At the time of last rating in April 6, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced promoters and long operational track record DBCPL
started trading of iron and steel products since 1984 and has more
than three decades of track record of operations. The company is
managed by Mr. Rajneesh Bansal and Mr. Rahul Dev Bansal who are
having about two decades of experience in iron and steel trading
business. Thereby the company benefits by its established presence
in the industry and the wide experience of the promoters.

Key Rating Weaknesses

Intense competition due to low entry barriers
The company is into trading of iron and steel products which is
highly fragmented and competitive in nature due to low entry
barriers. Further all the entities trading the same products with
a little product differentiation resulting into price driven
sales. Intense competition restricts the pricing flexibility of
the company in the bulk customer segment.

Working capital intensive nature of operations
The operation of DBCPL is working capital intensive in nature. The
company maintains stock of traded goods for timely meeting of its
clients demand as well as to mitigate the price volatility risk.
Accordingly the average inventory period remained on the higher
side at 53 days in FY15. Further the company allows credit of
around one and half months to its clients. Accordingly the average
utilization of fund based limit was around 90% during last twelve
months ended in February 2017.

D.P. Bansal Commercial Company Private Ltd (DBCPL) was
incorporated in September 1984 by Bansal family of Bhilai,
Chhattisgarh. Since its inception, DBCPL has been engaged in
trading of iron and steel products like mild steel angles, plate,
channels, TMT bars and beams etc. The company procures its trading
materials from Steel Authority of India Ltd , Mahamaya Steel
Industries Ltd, Top worth Steel & Power Pvt Ltd and other steel
manufactures and sells it to clients across India.

DBCPL is currently managed by Mr. Rajneesh Bansal and Mr. Rahul
Dev Bansal who have about two decades of experience
in this line of business.


EASTERN SILK: CRISIL Reaffirms 'D' Rating on INR62.87MM Loan
------------------------------------------------------------
CRISIL's rating on long-term bank facilities of Eastern Silk
Industries Ltd (ESIL) continues to reflect delays in servicing
debt due to weak liquidity following continued operating losses.
Net losses in the past five years have completely eroded networth,
thereby weakening financial risk profile.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Funded Interest
   Term Loan              54.57       CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      4.50       CRISIL D (Reaffirmed)

   Term Loan              53.57       CRISIL D (Reaffirmed)

   Working Capital
   Facility               62.87       CRISIL D (Reaffirmed)

   Working Capital
   Term Loan             295.99       CRISIL D (Reaffirmed)

Key Rating Drivers & Detailed Description

Weakness

* Weak financial risk profile: ESIL's financial risk profile is
  weak marked by a negative net worth, high debt levels, losses
  at the operating level, and weak debt protection metrics. The
  company has an adverse capital structure, with a negative net
  worth of INR91 crore and large debt of around INR399 crore as
  on March 31, 2016.

Strengths

* Extensive experience of promoter: Business risk profile is
  strengthened by the promoter's extensive experience in the
  textiles business.

Set up in 1946 by Mr. S S Shah and others, ESIL manufactures silk
yarn, made-ups, home furnishings, fashion fabrics, handloom
fabrics, double-width fabrics, and embroidered fabrics at its
facilities in Anekal, Hobli, and Nanjangud in Karnataka; and in
Falta Special Economic Zone, West Bengal.

Net loss was INR72 crore on net sales of INR66 crore for fiscal
2016, against a net loss of INR44 crore on net sales of INR58
crore for fiscal 2015. For the nine months ended December 31,2017
net loss was INR11.6 crore on net sales of INR43.2 crore, against
a net loss of INR17.6 crore on net sales of INR48.6 crore for the
corresponding period of the previous fiscal.


FAZE THREE: CARE Hikes Rating on INR57.25cr Loan to BB
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Faze Three Ltd. (FTL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             57.25      CARE BB; Stable Revised
                                     from CARE C

   Short-term Bank
   Facilities             12.50      CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in ratings assigned to the bank facilities of Faze
Three Ltd. (FTL) factors in the turnaround in the company's
networth as on December 31, 2016 due to improved financial
performance, fresh issue of equity capital, settlement of
corporate guarantee liability for its subsidiary (PANA Textil
GmbH) and part repayment of Foreign Currency Convertible Bond
(FCCB) obligation (as per settlement terms). The ratings further
derive strength from the promoters' experience in manufacturing
home furnishing products, integrated nature of operations and the
company's diversified customer base. The ratings are however
constrained by almost full utilisation of working capital limits,
pending part payment of FCCB liability, high level of gross
current assets and susceptibility to fluctuations in raw material
prices and foreign exchange rates.

The successful settlement of the FCCB liability, efficient
management of working capital requirements and growth in
operations remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths
Experienced promoters and long track record: FTL is promoted by
Mr. Ajay Anand, Chairman & Managing Director. He has about 30
years of experience in international marketing of home
interiors/furnishings fabrics and made ups. He is supported by Mr.
Sanjay Anand (Brother), whole time director of the company in
overall administration.

Strong and Diversified Customer Base: FTL is engaged in
manufacturing a wide range of home textiles right from bathmats
(including rubber backed), throws, blankets, cushions, curtains,
bed-sheets etc. catering to international retailers like Walmart,
Target, ASDA, Dollar General, LIDL, J C Penney, Marks and Spencer,
Sainsbury's, Next, Macy's, Mothercare, etc. More than 90% of the
company's revenue is from exports mainly to USA (55%), UK (35%)
and balance to Canada, Australia, Japan, Korea etc. The company
does not face customer concentration risk as the top 10 customers
account for 60% of sales for FY16 (refers to the period April 1 to
March 31).

Settlement of PANA Gmbh liability: Liability on account of German
subsidiary PANA Gmbh as of March 31, 2016 stood at INR46.06 crore
(Euro 4.4mn plus outstanding interest). During FY17, FTL entered
into a one-time settlement with the bank wherein it settled the
liability at INR33.23 crore. Partial repayment of FCCBs: FTL in
October 2016 entered into an agreement with the bondholders to
redeem the FCCBs for a maximum amount of USD 6.25 million in two
tranches of USD 2.25 million payable in October 2016 and USD 4
million in March 2017 (settlement proposed at 78% of principal
FCCB liability and 39% of total FCCB liability, contingent to
March 2017 payment). In case of default the whole agreement would
be voidable at the option of bondholders and the entire amount of
USD 15.90 million would be reinstated. The company in October 2016
has successfully repaid the first tranche and is in the process of
making necessary arrangements to repay the second tranche.

Improvement in capital structure with moderate gearing: In FY16,
FTL reported PAT of INR1.53 crore. Further, in FY17, the company
settled its corporate guarantee liability arising out of its PANA
subsidiary and entered into an agreement with its FCCB bondholders
to settle the entire liability. Furthermore, with the company
issuing shares to promoters and investors, FTL's networth turned
positive as of December 2016 and the company's debt coverage
metrics improved with the overall gearing, Total Debt/GCA and
PBILDT interest coverage at 1.18x, 3.06x and 4.03x respectively.

Key Rating Weaknesses

High gross current assets albeit consistent improvement: The
company's gross current assets have remained high given the nature
of its business. About 45% of the company's operations are
handloom, based in Panipat. The operations are highly working
capital intensive given the specific skill and limitation of
capacity of skill involved. Albeit the handloom enjoys premium in
pricing, preference from customers, supportive government
policies, etc. therefore the demand for the same remains steady
and sustainable. Furthermore, most overseas retailers have been
working on minimum credit period of 60 days going upto 120 days in
a few cases. However, due to management's sustained efforts to
reduce collection period as well as inventory levels the company
had been able to improve its average collection and average
inventory period to 83 days and 148 days as on March 31 2016 from
87 days and 163 days respectively as on March 31 2015. The average
collection and average inventory period has further improved to 81
days and 134 days as on December 31, 2016 respectively.

Volatility in input prices & Foreign exchange fluctuation risk:
The main raw material for the company is yarn, whose prices of the
yarn are volatile. In view of the volatility associated with the
yarn prices, FTL's PBILDT margin remains susceptible to any
adverse price movements.

Exports contribute to approximately 90% of the total income of the
company. The company hedges 60-65% of its export receivables and
is thus susceptible for the remaining 35-40%.   Faze Three Limited
(FTL), promoted by Mr. Ajay Anand in 1985, is an integrated
manufacturer and exporter of home furnishing textile products
mainly floor coverings i.e. bathmats, rugs and top of the bed i.e.
blankets and throws with six manufacturing facilities at Panipat,
Silvassa and Vapi. FTL exports its home furnishings mainly to USA,
UK, Germany, Mexico, Canada and other countries.

Originally promoted as a trading company, FTL came out with a
public issue during the year 1995, post which the company set up
its first plant for automotive textiles by entering into joint
Venture (JV) with Aunde Achter & Ebels GmBh, Germany, which was
later hived off in FY2000 as an independent unit and renamed as
Aunde India Limited.

For FY16, FTL, reported PAT of INR1.53 crore on total income of
INR242.24 crore as compared to a net loss of INR4.30 crore on
total income of INR219.37 crore in FY15. For 9MFY17 (refers to the
period April 01 to December 31), FTL reported a PAT of INR34.59
crore on total income of INR196.92 crore.


GARG STEELS: CARE Reaffirms B+ Rating on INR11cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Garg Steels (Jalandhar) (GS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               11       CARE B+;Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Garg Steels
(Jalandhar) (GS) continues to be constrained by the firm's modest
scale of operations, low profitability margins and weak solvency
position. The rating is further constrained by the working capital
intensive nature of operations, constitution of GS being a
partnership firm and cyclical nature of steel industry. The
rating, however, derives strength from the experienced promoters,
long track record of operations of the entity, its association
with a reputed brand and business synergy derived from the group
concern.  Going forward, the ability of the entity to profitably
scale up its operations, improve the overall solvency position and
manage the working capital requirements efficiently will remain
the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Modest scale of operations and low profitability margins: The
total operating income of GS stood modest at INR78.20 crore in
FY16 (refers to the period April 01 to March 31) accompanied with
low profitability margins characterized by PBILDT margin of 2.06%
in FY16 and PAT margin of 0.24% in FY16.

Leveraged capital structure and weak debt coverage indicators: The
capital structure continued to remain leveraged reflected by
overall gearing ratio of 3.10x as on March 31, 2016. Furthermore,
the debt coverage indicators of the firm stood weak as reflected
by interest coverage ratio of 1.15x in FY16 and total debt to GCA
of 65.11x for FY16.

Working capital intensive nature of operations: The operating
cycle stood same at 65 days for FY15 and FY16. The cash credit
limit remained fully utilized for 12 months period ended January
2017.

Constitution of the entity being a partnership firm: GS's
constitution as a partnership firm has an inherent risk of
possibility of withdrawal of the partners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partners.

Cyclical nature of steel industry: The steel industry is sensitive
to the shifting business cycles, including changes in the general
economy, interest rates and seasonal changes in the demand and
supply conditions in the market. Apart from the demand side
fluctuations, the highly capital intensive nature of steel
projects along-with the inordinate delays in the completion
hinders the responsiveness of supply side to demand movements.

Key Rating Strengths

Experienced partners with long track record of operations of the
firm and association with a reputed supplier: Mr. Suresh Garg has
an experience of more than three and half decades in the steel
industry through his association with SCS (established in 1982),
GS (since its inception) and other local entities engaged in
similar line of business. Mr. Amit Garg and Mrs Shruti Garg have
experience of five and seven years, respectively, through their
association with GS. GS is an authorized distributor of Steel
Authority of India Limited (SAIL). GS has been procuring almost
all of its traded goods from SAIL for the past 11 years.

GS, established in 2005, is a partnership firm being looked after
by Mr. Suresh Garg, Mr. Amit Garg and Mrs Shruti Garg who share
profit and loss equally. The firm is engaged in the trading of
steel products (CR coils, HR Coil, HR Sheets, HR Plates, GP
Sheets, etc), which find their application in steel and allied
products industry. The firm is an authorized dealer of Steel
Authority of India Limited (SAIL, rated 'CARE AA+/CARE A+') and
supplies products to the customers located in Punjab. Subhash
Chander & Sons (SCS), an associate concern of GS, established in
1982, is engaged in similar line of business as GS.

In FY16, GS has achieved a total operating income of INR78.20
crore with PAT of INR0.18 crore, as against the total operating
income of INR79.53 crore with PAT of INR0.12 crore in FY15.
Furthermore, GS has achieved a total operating income of INR93.00
crore in 10MFY17 (Provisional).


GOOD MEDIA: CRISIL Assigns 'B-' Rating to INR8.15MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating on the long-term
bank facilities of Good Media News Private Limited (GMN). The
rating reflects GMN's below average financial risk profile marked
by a high gearing and vulnerability to intense competition in the
cable television distribution industry and susceptibility to
adverse regulatory changes.These rating weaknesses are partially
offset by established market position in Himachal Pradesh,
supported by the extensive experience of the company's promoters.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Cash Credit            2.85        CRISIL B-/Stable
   Long Term Loan         8.15        CRISIL B-/Stable

Key Rating Drivers & Detailed Description

Weaknesses

* Below average financial risk profile

GMN's financial risk profile is below average marked by small
networth of INR2.13 Cr and high gearing of 4.78 times as on March
2016. Modest accretion and high dependence on external debt is
likely to keep the financial risk profile modest over the medium
term.

* Intense competition and susceptibility to adverse regulatory
  changes

The Indian cable television distribution industry is highly
fragmented and intensely competitive. Apart from large number of
unorganized cable operators, the company also faces competition
from Direct to Home (DTH) service providers. The Telecom
Regulatory Authority of India (TRAI) regulates the cable
television industry. The regulator has considered a number of
measures to deal with issues such as the rampant under-declaration
in subscriber base and poor quality of service. In case of changes
that require large capex, smaller players may not be able to
comply, leading to their exit from the industry.

Strength

* Established market position and extensive experience of the
  promoters:

GMN is an established cable television service provider, and the
largest multiple service operator, in Himachal Pradesh (with
market share of around 40 per cent), rest are all small
unorganised players and DTH players. The promoters of GMN have
over three decades of experience in the cable television industry.
Backed by the experience of the promoter, the company has expanded
its operations to newer geographies like rural and remote areas of
Himachal Pradesh apart from urban cities and towns.

Outlook: Stable

CRISIL believes that GMN will maintain its established market
position in Himachal Pradesh over the medium term, supported by
the extensive experience of its promoters in the cable television
distribution business. The outlook may be revised to 'Positive' if
GMN achieves and sustains higher-than-expected growth in its
revenues and profitability, and successfully expands its
operations to other geographies. Conversely, the outlook may be
revised to 'Negative' in case of weakening of the financial risk
profile, most likely because of large debt-funded capital
expenditure, low revenue and profitability, or deterioration in
working capital management.

GMN was formed in 2001 to carry out the operations of a multi
system operator in Himachal; the company was set up by Mr. Mukesh
Malhotra. GMN's registered office is in Himachal. The company has
around 150 local offices across Himachal Pradesh.

Profit after tax (PAT) was INR0.46 crore on total revenue of
INR15.1 crore in fiscal 2016, against PAT of INR0.57 crore on
total revenue of INR13.0 crore in fiscal 2015


HAYATH FOODS: CARE Assigns 'B' Rating to INR10.41cr LT Loan
-----------------------------------------------------------
CARE Ratings has been seeking information from Hayath Foods to
monitor the rating(s) vide e-mail communications dated December
30, 2016, February 20, 2017, February 21, 2017, and numerous phone
calls. However, despite our repeated requests, the firm has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Hayath Foods bank
facilities will now be denoted as CARE B; ISSUER NOT COOPERATING
and CARE A4; ISSUR NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            10.41       CARE B; ISSUER NOT
                                     COOPERATING

   Short-term Bank
   Facilities            24.00      CARE A4; ISSUER NOT
                                    COOPERATING

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

Detailed description of the key rating drivers

At the time of last rating in March 5, 2015, the following were
the rating strengths and weaknesses:

Key Rating weakness

Fluctuating profitability margins for the last two year ended FY15
(Prov)

The profitability margin of the firm declined from 29.09% in FY13
(refers to the period April 1 to March 31) to 13.97% in FY14 on
account of increase in processing charges, production expenses
coupled with increase in raw material consumption. But however,
PBILDT margin improved to 14.27% in FY15 (Prov), mainly on account
of increase in sales realization. Furthermore, PAT margin of the
firm improved from 0.81% in FY14 to 2.45% in FY15 on account of
increase in PBILDT.

Highly leveraged capital structure and weak debt coverage
indicators

Debt equity and overall gearing ratio of the firm stood weak at
23.90x and 90.16x as on March 31, 2014, on account of high term
loan, working capital facilities coupled with low net worth base.
Furthermore, there is a capital withdrawal of INR0.74 crore for
the business purpose for the said period. However, the firm has
infused capital of INR9.39 crore and quasi unsecured loans of
INR4.85 crore as on March 31, 2015, which resulted in improvement
in debt equity and overall gearing ratio to 0.39x and 1.96x as on
March 31, 2015, respectively. The debt protection metrics of the
firm are weak marked by total debt/GCA at 10.66x in FY15 on
account of high dependency on external borrowings. However,
interest coverage ratio stood moderate at 1.89x in FY15 with high
PBILDT and current ratio stood moderate at 1.23x as on March 31,
2015 on account of high short term debt.

Presence in the highly fragmented industry characterized by
intense competition

The firm is engaged in processing of pulps and tomato paste which
involves limited value addition and hence results in thin
profitability. Moreover, on account of large number of units
operating in similar business, the competition among the players
remains very high resulting in high fragmentation and further
restricts the profitability.

Seasonal availability of raw material (Mango) resulting into
working capital intensive nature of business

Prices of mango are highly volatile in nature and depend upon
factors like, area under production, yield for the year (4-5
months). The firm has to procure significantly higher volume of
mango to avail bulk discount from suppliers. Furthermore,
mango being seasonal crop, it is available mainly from April-July,
which results in a higher inventory holding period for the
business. The firm receives the payment from its customers within
60-120 days and makes the payment to its suppliers
within 30-40 days which further resulted in working capital

Intensive nature of business constitution as a partnership concern
and susceptible to fluctuation in currency.

HYF, being a partnership firm, is exposed to inherent risk of the
partner's capital being withdrawn at time of personal contingency
and firm being dissolved upon the death/retirement/insolvency of
the partners. Moreover, proprietorship business has restricted
avenues to raise capital which could prove a hindrance to its
growth. Furthermore, there is instances of capital withdrawal INR
0.74 crore for the business. HYF is exporting processed products
which constituted 25% to total sales. Due to export there is
possibility of susceptible to fluctuation in currency and which in
turn also affects the profitability margins and the firm does not
have any hedging mechanism to safeguard the same.

Key rating strengths

Experience of promoter for more than four decades in the industry
The promoters have been engaged in the food processing industry
for more than four decades. Mr. Syed Mateen Aga(Managing partner),
has more than four decades of experience in this industry through
other associate companies and is actively involved in the day-to-
day operations of the firm. Mr. Syed Tanzeem Aga , Mr. Syed Taheem
Aga and Mr. Syed Tanzil Aga, other three partners has more than 10
years of experience in the same line of business, and looks after
production and other operational activities. All of them belong to
same family. Apart firm is associated with more than fifty
(direct) and two hundred (contract) staff to assist the partners
in business operation of the firm. HYF established in 2007 and has
gained reasonable track record of the firm in term of business
operations.

Growth in total operating income during last two year ended FY14
Total operating income of the firm has registered a Compounded
Annual Growth Rate (CAGR) of 67% during FY13-FY15 and registered a
total operating income of INR48.04 crore in FY15 (Prov) as against
INR39.92 crore in FY14 representing growth of 20%. The increase in
the total operating income was backed by higher demand for the
products in the domestic and export market coupled with the
increase in production capacity from 93% in FY14 to 98% in FY15
(Prov).

Location advantage with presence in major mango cultivation area
(Chittor) resulting in easy procurement of mangoes

HYF is well connected to prominent mango growing belts. The firm
enjoys proximity to the mango growing areas of Chittoor. Hence, it
derives benefits from lower logistics expenditure (both on
transportation and storage), easy availability of labour and
procurement of mangoes at competitive prices, and consistent
demand for finished goods resulting in sustained revenue
visibility.

Hayath Foods (HYF) established in 2007 as a partnership firm. HYF
was promoted by Mr. Syed Mateen Aga, Mr. Syed Tanzeem Aga, Mr.
Syed Taheem Aga and Mr. Syed Tanzil Aga. The firm is engaged in
processing of various Mango pulp (totapuri & alphonso) and tomato
pulp, and papaya pulp. HYF is an ISO 9001:2000 certified firm. HYF
procures its entire raw material (fruits and vegetables) from the
local market i.e., from local farmers and dealers. HYF sells its
products in the domestic market across India like Andhra Pradesh,
Maharashtra, Tamil Nadu, Kerala, Uttar Pradesh, Gujarat and
Karnataka which constituted to about 75% of revenue during FY15
(Prov) and rest of 25% export to UAE, Saudi Arabia and Yemen Arab
Republic. About 90% of the revenue generated through mango pulp
during FY15.


INDO PRODUCTS: CARE Assigns 'B' Rating to INR6cr LT Loan
--------------------------------------------------------
CARE Ratings has been seeking information from Indo Products to
monitor the rating(s) vide e-mail communications/letters dated
February 28, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on Indo Products's bank facilities will
now be denoted as CARE B; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               6        CARE B; ISSUER NOT
                                     COOPERATING

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

Detailed description of the key rating drivers

At the time of last rating in February 26, 2016, the following
were the rating strengths and weaknesses.

Key Rating Strengths

Experienced proprietor and established track record of operations:
The proprietor has an experience of nearly 20 years in the
industry. Furthermore, over 3 decades of operations of the firm
has lent to a good understanding of the market and facilitated the
establishment of long term relationships with its clientele
leading to repeat orders.

Association with reputed suppliers: Indo Products is associated
with distribution of steel products for JSW Steel Limited
for nearly 6 years for wires, rods etc through an MOU. ~90% of
goods traded are procured from JSW Steel Limited and SAIL.

Key rating Weaknesses

Declining scale of operations: The operating income of the firm
has declined by ~16% from FY14 (refers to the period April 01 to
March 31), lying at INR60.20 crore in FY15.

Low profitability margins: The firm's profitability margins have
remained low with PBILDT and PAT margins of 1.96% and 0.20%,
respectively, in FY15.

Leveraged capital structure: The capital structure of the firm
remained highly leveraged marked by a high overall gearing
ratio of 5.33x as on March 31, 2015.

Weak debt coverage indicators: The debt coverage indicators
remained weak with total debt to GCA of 70.79x for FY15.
Working capital intensive nature of operations: The working
capital cycle stood at 69 days for FY15. The average utilization
of the working capital limits stood around 80% Proprietorship
nature of its constitution: IP's constitution as a proprietorship
firm has the inherent risk of possibility of withdrawal of the
proprietor's capital at the time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of
proprietor.

Cyclicality inherent in the steel industry: The performance of
steel industry is linked to the fortune of sectors like
infrastructure, real estate and automobiles, which, in turn, are
dependent on the macro-economic condition, thereby
making steel trading activity highly dependent on the growth of
economy.

Indo Products was established in 1979 as a partnership concern and
was engaged in the manufacturing of steel products. The
manufacturing was however seized in 1994 and the firm was
reconstituted as a proprietorship concern with Mr. Varinder Gupta
as the sole proprietor. It currently engages in trading and
distribution of steel products. The firm has MOUs signed with JSW
Steel Limited the Steel Authority of India (SAIL). It therefore
deals with distribution of steel products including wires, coils,
rods, bars, etc. for these companies since the past 6 years with
JSW Steel Limited and 2 years for SAIL. The products, primarily
sold in the Punjab region, find application in bicycle parts,
automobile components, fasteners, etc.


KIA TEXTILES: CRISIL Reaffirms 'B+' Rating on INR9.5MM Cash Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
bank facilities of KIA Textiles Private Limited (KTPL).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           9.5       CRISIL B+/Stable (Reaffirmed)

CRISIL had revoked the suspension of its rating on the bank
facilities of KTPL, and assigned its 'CRISIL B+/Stable' rating to
the facility on February 28, 2017. CRISIL had, on April 29, 2016,
suspended the ratings as KTPL had not provided the necessary
information for a rating review. The company has now shared the
requisite information, enabling CRISIL to assign a rating.

The rating continues reflects the company's weak financial risk
profile, marked by muted debt protection metrics, modest scale of
operations in the intensely competitive yarn trading industry, and
the company's large working capital requirements. This rating
strength is partially offset by the extensive experience of KTPL's
promoters in the yarn trading industry and their funding support
to the company.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile constrained by debt protection
  Metrics-KTPL's interest coverage was 1.44 times for 2015-16
  on account of low operating profitability due to trading nature
  of operations

* Large working capital requirements - The GCA days of the
  company have ranged between 71 days to 101 days over past 3
  years ending 2015-16. The working capital requirements are
  driven by high credit given to customers. Average bank limit
  utilization has been 99.5% over the past 12 months ending
  Jan 2017.

Strength

* Extensive experience of promoters - In the yarn industry along
  with established relationship with customers and suppliers.
  KTPL's promoters have been trading in yarn for more than four
  decades. The promoters have also supported the company through
  regular equity infusion.

Outlook: Stable

CRISIL believes that the KTPL will benefit from its promoters long
standing presence in the yarn trading industry and an established
customer and supplier base. The outlook may be revised to
'Positive' in case of better than expected profitability and
working capital management leading to improvement in debt coverage
ratios and liquidity. Conversely, the outlook may be revised to
'Negative' in case of deterioration of the company's financial
risk profile due to decline in profitability margin, stretch in
working capital cycle or significant debt funded capex.

KTPL, incorporated in 2010, is promoted by Mr. S K Bhatia and his
son, Mr. Jatin Bhatia. The company trades in cotton, polyester,
and blended yarn. About 20 per cent of KTPL's sales are made in
the export market, and the remaining in the domestic market. The
company is also a consignment agent for polyester-oriented yarn
manufactured by Indo Rama Ltd and Wellknown Polyesters Ltd.

Profit after tax was INR0.29 crore on net sales of INR103 crore in
fiscal 2016, vis-a-vis INR0.31 crore and INR77 crore,
respectively, in fiscal 2015.


MB SPONGE: CARE Assigns B+ Rating to INR11.60cr LT Loan
-------------------------------------------------------
CARE Ratings has been seeking information from MB Sponge and Power
Limited (MBSPL) to monitor the rating vide e-mail communications/
letters dated July 15, 2016, February 16, 2017, February 18, 2017
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the rating. In line with the extant SEBI guidelines
CARE has reviewed the rating on the basis of the publicly
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            11.60       CARE B+; ISSUER NOT
                                     COOPERATING; based on best
                                     Available information

The rating on MBSPL's bank facilities will now be denoted as
CARE B+; ISSUER NOT COOPERATING.

The rating takes into account intensely competitive nature of the
industry with presence of many unorganised players and working
capital intensive nature of operations. Moreover, the rating
continues to derive strengths by the satisfactory experience of
the promoters and strategic location of the plant. Users of this
rating (including investors, lenders and the public at large) are
hence requested to exercise caution while using the above rating.

Detailed description of the key rating drivers

At the time of last rating in March 3, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced promoters
The current promoters of MBSPL are Shri Shankar Lal Agarwal
(B.Com) aged 57 years, Shri Pawan Kumar Agarwal (B.Com) aged 51
years, Shri Ritesh Kumar Agarwal (B.Tech) aged 4 years and Shri
Raj Kumar Agarwal (B.Com) aged 32 years and all belonging to the
same family. Shri Shankar Lal Agarwal is the Managing Director of
MBSPL (having an experience of about two decades in existing line
of business and is involved in the strategic planning and running
the day to day operations of the company. He is being duly
supported by the other promoters coupled with a team of
experienced professionals.

Strategic location of the plant
MBSPL's plant is located at Durgapur industrial belt of West
Bengal, which is in the vicinity of coal mine of Eastern Coalfield
Ltd, Raniganj (W.B.); from where MBSPL procures coal. Further, the
coal and iron-ore rich states of Jharkhand and Orissa are also
located nearby. The proximity to the raw material sources reduces
the transportation cost to the company. Besides, the region has
large number of steel manufacturers as well as end users. Hence,
the company has a large ready market to sell its products.

Key Rating Weaknesses
Intensely competitive nature of the industry with presence of many
unorganised players

MB Sponge and Power Limited is operating in a competitive industry
marked by the presence of a large number of players in the
organized sector. In addition to the competition in domestic
market, the company also faces competition from imports.
Furthermore, the industry is characterized by low technological
inputs and standardized machinery for the production. Thus, going
forward, this gives an opportunity to mid-size players in the
unorganized segment to enter into the industry which would further
intensify the competition for the company.

Working capital intensive nature of business
Average utilization of the working capital limit remained around
95% during the last 12 months ended on February, 2017.

MB Sponge and Power Limited (MBSPL) incorporated in September 10,
2004, was promoted by Agarwal family of West Bengal, with Shri
Shankarlal Agarwal being the main promoter. The company commenced
operations in March, 2006. MBSPL is engaged in the manufacturing
of sponge iron at its plant located at Burdwan with a current
installed capacity of 60,000 metric tonne per annum (MTPA) and
trading of iron & steel related products like iron ore fines, TMT
bars, G.I Wires, Steel Round, M.S Wire, M.S Angle etc.


NATASHA AUTOMOBILES: CRISIL Assigns B+ Rating to INR10MM Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
bank facilities of Natasha Automobiles Private Ltd (NAPL).

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

   Electronic Dealer
   Financing Scheme
   (e-DFS)                  10        CRISIL B+/Stable (Assigned)

The ratings reflect a modest scale of operations, large working
capital requirement, and a weak financial risk profile. These
rating weaknesses are partially offset by the extensive experience
of the promoters in the automobile (auto) dealership business, and
benefits of association with a strong principal, Hyundai Motor
India Ltd (HMIL; rated 'CRISIL A1+').

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Revenue was around INR94.55 crore
  in fiscal 2016. Owing to the trading nature of operations and
  limited value addition, operating profitability has remained in
  the range of 3.0-3.4% over the four fiscals years ended
  March 31, 2016.

* Average financial risk profile: The total outside liabilities
  to tangible networth ratio was high at around 5.0 times as on
  March 31, 2016. This was on account of large borrowing to meet
  working capital requirement.

* Susceptibility to risks relating to low bargaining power with
  the principal and intense competition in the auto dealership
  market: Owing to the modest scale of operations, there is
  limited bargaining power with HMIL. Furthermore, the principal
  faces competitive pressures from other four-wheel vehicle
  manufacturing brands such as Maruti Suzuki, Renault, Tata, and
  Ford. Competition has compelled automakers to cut costs,
  including reducing their commissions to dealers.

Strengths

* Extensive industry experience of the promoters: The promoters
  have an experience of over two decades in the automobile
  dealership business. They have other group concerns engaged in
  the same line of business.

* Benefits from association with HMIL: HMIL has a dominant market
  position in the industry as the second-largest player in the
  passenger vehicle segment. Launch of new vehicles by the
  principal will continue to drive the market position of NAPL.

Outlook: Stable

CRISIL believes TCS will maintain a stable business risk profile
over the medium term backed by the extensive industry experience
of its promoters and an established relationship with the main
principal, HMIL. The outlook may be revised to 'Positive' if there
is infusion of substantial equity, leading to a better financial
risk profile and risk absorption capacity while improvement in
turnover leads to improvement in business risk profile. The
outlook may be revised to 'Negative' in case of a stretched
working capital cycle, a decline in the operating margin, or
significant debt-funded capital expenditure, leading to
deterioration in the financial risk profile, particularly
liquidity.

Incorporated in 1986, NAPL is a dealer for HMIL passenger vehicles
and spares, which it also services. The company currently operates
four showrooms in Bareli (Uttar Pradesh), Haldwani (Uttarakhand),
Budaun (Uttar Pradesh), and Almora (Uttarakhand), equipped with 3S
(sales, service and spares) facilities.

Net profit was INR59 lakh on net sales of INR94.55 crore in fiscal
2016, against a net profit of INR46 lakh on net sales of INR82.07
crore in fiscal 2015.

Status of non-cooperation with previous CRA: NAPL has not
cooperated with ICRA Ltd (ICRA), which suspended its rating vide
release dated August 09, 2016, on account of non-provision of
information required for monitoring ratings.


NEERAKKAL LATEX: CRISIL Cuts Rating on INR8MM Cash Loan to 'D'
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Neerakkal Latex (NL) to 'CRISIL D' from 'CRISIL
B/Stable'.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Cash Credit              8         CRISIL D (Downgraded from
                                      'CRISIL B/Stable')
   Proposed Long Term
   Bank Loan Facility       0.3       CRISIL D (Downgraded from
                                      'CRISIL B/Stable')

   Term Loan                1.2       CRISIL D (Downgraded from
                                      'CRISIL B/Stable')

The downgrade reflects delays in servicing of term loan on account
of stretched liquidity, with full utilisation of bank limit.
Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and intense competition: The trading
  nature of operations and intense competition continue to
  restrict scalability in operations-revenue was INR30 crore in
  fiscal 2016'and, therefore, pricing ability and profitability.

* Exposure to risks related to volatility in raw material prices:
  Raw material, latex, accounts for more than 80-90% of cost of
  sales. Volatility in latex prices and operating margin may,
  therefore, continue to constrain business risk profile.

Strength

* Partners' extensive experience: Benefits from the three decade-
  long experience of the partners, Mr. NJ James and Mr. Tino
  James, and healthy relationships with suppliers and customers
  should continue to support market position.

Set up in 1987 as a proprietorship firm by Mr. NJ James, NL, was
reconstituted as a partnership firm in 2013. The firm trades in
centrifuged and ammoniated latex and has recently started
manufacturing veiled latex. The firm is based in Kottayam
district, Kerala. Mr. NJ James and Mr. Tino James are the
partners.

Profit after tax (PAT) was INR0.22 crore on net sales of INR30
crore in fiscal 2016, vis-a vis INR0.09 crore and INR18.6 crore,
respectively, in fiscal 2015.


OSWAL AGRIMPEX: CRISIL Hikes Rating on INR.44MM Loan to BB-
-----------------------------------------------------------
CRISIL Ratings has upgraded its ratings of the bank loan
facilities of Oswal Agrimpex (Oswal) to 'CRISIL BB-/Stable/CRISIL
A4+' from 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Packing Credit in
   Foreign Currency        8.5        CRISIL A4+ (Upgraded from
                                      'CRISIL A4')

   Proposed Long Term
   Bank Loan Facility       .43       CRISIL BB-/Stable (Upgraded
                                      from 'CRISIL B+/Stable')

The upgrade reflects stabilisation of the firm's operations in
fiscal 2017, its first full year of operations, with turnover
expected at INR130 crore, against INR27.5 crores in fiscal 2016,
leading to adequate cash accrual to meet working capital
requirement. The firm has sufficient liquidity because of nil term
debt obligation. Its financial risk profile should improve,
particularly networth, backed by healthy cash accrual. However,
high gearing driven by working capital debt will constrain the
financial risk profile.

The ratings reflect the extensive experience of Oswal's promoters
in the agricultural commodities and other businesses through group
companies, and their established relationships with customers and
suppliers. These strengths are partially offset by modest scale of
operations, vulnerability to volatility in raw material prices,
and subdued financial risk profile.

Analytical Approach

CRISIL has treated Oswal's unsecured loans as neither debt nor
equity as they are expected to remain in the business.

Key Rating Drivers & Detailed Description

Strength

* Extensive experience of promoters in the agricultural
  commodities business, and established relationships with
  customers and suppliers: Oswal's key promoters have been in
  the castor oil industry and other commodity businesses for more
  than five decades through other the Champalal group, and have
  established relationships with customers and suppliers.

Weaknesses

* Modest scale of operations in a highly fragment industry:
  Oswal is a marginal player in the castor oil industry, with
  modest capacity of 39,000 tonne per annum. The castor oil
  segment is highly fragmented on account of low capital
  requirement, leading to intense competition. Players have
  limited pricing power due to the commodity nature of the
  product.

* Subdued financial risk profile: Networth was modest, at INR6.92
  crore as on March 31, 2016. Gearing is expected to be high, at
  2.0 time, as on March 31, 2017, due to increased working
  capital requirement.

* Susceptibility to volatility in raw material prices: Raw
  material accounts for a significant portion of Oswal's cost of
  production and any volatility in raw material prices will
  affect the firm's profitability significantly, given its
  limited pricing power.

Outlook: Stable

CRISIL believes Oswal will continue to benefit from its promoters'
extensive industry experience.The outlook may be revised to
'Positive' if the firm generates more-than-expected cash accrual
backed by increasing revenue or profitability, leading to a better
capital structure. The outlook may be revised to 'Negative' if the
accrual is low due to reduced order flow or profitability, or if
the financial risk profile weakens because of stretched working
capital cycle or debt-funded capital expenditure.

Oswal, set up in 2014, manufactures castor oil, and also sells its
by-product castor de-oiled cakes. Its solvent extraction unit is
in Gandhidham, Gujarat.

Profit before tax was INR0.52 crore on net sales of INR27.34 crore
for fiscal 2016.


P K K CONSTRUCTIONS: CRISIL Assigns 'B' Rating to INR4.0MM Loan
---------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4'
ratings to the bank facilities of P K K Constructions (PKK).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Proposed Long Term
   Bank Loan Facility      0.5        CRISIL B/Stable

   Bank Guarantee          4.0        CRISIL A4

   Cash Credit             4.0        CRISIL B/Stable

The ratings reflect the firm's modest scale of operations amid
intense competition, large working capital requirement, and high
customer concentration. These weaknesses are partially offset by
the experience of its promoters in the civil construction industry
and above-average financial risk profile.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations amid intense competition: With
  revenue of INR7 crore for fiscal 2016, scale remains small in
  the competitive civil construction segment. This restricts
  ability to bid for larger tenders, thereby limiting growth
  prospects.

* Large working capital requirement: Gross current assets were
  344 days as on 31 March, 2016 due to inventory of 60 days and
  receivables of 120-150 days.

Strengths

* Extensive experience of promoters: Presence of over two decades
  in the civil construction segment has enabled the promoters to
  successfully implement projects and establish strong
  relationship with key clients.

* Above-average financial risk profile: Financial risk profile is
  moderate because of comfortable capital structure and debt
  protection metrics.

Outlook: Stable

CRISIL believes PKK will benefit over the medium term from its
partners' extensive experience and moderate order book. The
outlook may be revised to 'Positive' if substantial and sustained
growth in revenue and profitability leads to sizeable cash accrual
and better financial risk profile. The outlook may be revised to
'Negative' if low cash accrual, stretched working capital cycle,
or any large, debt-funded capital expenditure weakens financial
risk profile, particularly liquidity.

Set up in 2013 as a partnership firm Mr. P K Kommedkutty along
with his family members, PKK constructs bridges and undertakes
other allied works mainly in Kerala. Operations are managed by Mr.
P K Kommedkutty.

For 2015-16 (refers to financial year, April 1 to March 31), PKK
reported net profit of INR0.44 Crore on total revenue of INR7.2
Crore, against net profit of INR0.10 Crore on total revenue of
INR4.7 Crore for 2014-15.


PALAPARTHI SUPER: CARE Lowers Rating on INR70cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Palaparthi Super Speciality Hospital Private Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              70        CARE B+; Stable Revised
                                     from CARE BB+

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to Palaparthi Super Speciality
Hospital Private Limited takes into account the hospital
registering low level of operating income during FY16 (refers to
the period November to March) despite commencing its commercial
operations in November 2015, high operational expenses leading to
net loss and weak financial risk profile. The rating is also
constrained by competition from upcoming and existing hospitals,
risk of new entry into market and high vulnerability to treatment
related risks.  The rating is, however, underpinned by experienced
and resourceful promoters, the infusion of funds in the form of
unsecured loans to the operations of hospital, wide range of
medical care services being provided affordable price, tie-ups
with insurance companies and empanelment with government schemes.

The ability of the company to achieve the projected occupancy
levels by way of building trust among the masses by way of
providing quality services and improvement in overall financial
risk profile is the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Weak operational performance during FY16
The hospital has commenced its commercial operations on
November 1, 2015 but due to delay in empanelment with government
schemes and delay in tying up with health insurance companies, the
hospital has registered low total operating income of INR1.01
crore during FY16 and net loss of INR6.70 crore.

Weak financial risk profile
The capital structure of the company as represented by the overall
gearing ratio was high as on March 31, 2016 due to erosion in the
net worth of the company on account of operational losses coupled
with increase in unsecured loans during FY16.

High vulnerability to treatment-related risks
Healthcare is a highly sensitive sector where any mishandling of a
case or negligence on the part of any doctor and/or staff of the
unit can lead to distrust among the masses. Thus, all the
healthcare providers need to monitor each case diligently and
maintain high operating standard to avoid the occurrence of any
unforeseen incident which can damage the reputation of the
hospital to a large extent.

Competition from existing and upcoming hospitals in the region
The healthcare sector is highly fragmented with few large players
in the organised sector and numerous small players in the
unorganized sector leading to high level of competition. However,
the competition in Kakinada, Andhra Pradesh remains a challenge.
In light of intense competition, PSSH's prospects would depend
upon its ability to profitably scale up the operations and success
rate in treatment of cases, to attract patients and increase
occupancy.

Key rating strengths

Experienced and resourceful promoters:
PSSH is promoted by Dr Silas J Charles and his wife Mrs Vasantha
Charles. Dr S Charles has over two decades of experience in the
medical profession. The promoters of the company have infused the
funds both in the form of equity and unsecured loans during FY16
to support the business operations and meet the debt obligations.

Wide range of medical care services being provided at affordable
rates and qualified medical staff:
The hospital is providing comprehensive super specialty services
and has a well-equipped Accident and Trauma care facility with a
Helipad for access by offshore Oil/Gas exploration companies. The
hospital also has comprehensive diagnostics services and clinical
support services. The wide range of service offerings along
with affordable rates is expected to result in fair occupancy
rate. The hospital is hiring well qualified and experienced
doctors/consultants for various branches of medical care.

Empanelment with Government schemes and tie-ups with insurance
companies:
PSSH is empanelled with government schemes and is also in the
process of tying with various health insurance companies. Post
state bifurcation, PSSH is expected to be one of the top few
hospitals in Seemandhra Region with the above said facilities.

Incorporated in September 2011, Palaparthi Super Speciality
Hospital Private Limited (PSSH) has been promoted by Dr. Silas J.
Charles and his wife Mrs Vasantha Charles. PSSH has set up a
super-specialty hospital under the banner 'Hope International
Hospital' with 350 beds capacity (74 beds in Intensive Care Unit
(ICU) and 276 beds in General ward) in Kakinada, Andhra Pradesh.
The company has achieved COD on November 1, 2015.

During FY16, Palaparthi Super Speciality Hospital Private Limited
has reported net loss of INR6.70 crore on total operating income
of INR1.01 crore.


PRATIROOP MUDRAN: CARE Reaffirms B+ Rating on INR8.97cr LT Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Pratiroop Mudran (PM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             8.97       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of Pratiroop Mudran
(PM) continue to remain constrained on account of small scale of
operations, financial risk profile marked by leveraged capital
structure and moderate debt protection metrics. The ratings are
further constrained by vulnerability of margins to volatility in
raw material prices and limited bargaining power against the
suppliers along with partnership nature of constitution. However,
the rating continues to derive strength from significant
experience of partners in the printing business, long track record
of operations of the entity and diversified and established
clientele and supplier base.The ability of the entity to increase
its scale of operations, improve its solvency position and profit
margins amidst competitive scenario along with efficient
management of working capital requirements is the key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters in the printing industry: The promoters of
PM have been in the printing industry for more than one and half
decade and have established long standing relationships with its
key clients and are ably supported by experienced personnel in
second- tier management. The firm derives repeated business from
the existing clients based on its established and long standing
relationships.

Key Rating Weaknesses

Modest scale with low profitability and leveraged capital
structure: Despite being in existence for more than one and half
decade, the scale of operations of the entity remained small with
low networth base and net losses in FY16, thus depriving
it of scale benefits. Furthermore, high dependence of the entity
on external borrowings resulted in leveraged capital structure
owing to low networth base.

Susceptibility of margins to fluctuation in input prices and
limited bargaining power against suppliers: The firm's
profitability margins are susceptible to the increase in the paper
prices as it is unable to entirely pass on the increase in
the paper prices to its customers due to highly competitive nature
of industry The profitability margins of entity are further
constrained by limited bargaining capability over raw material
purchase price and timely availability of raw material.

Incorporated in 1999, Pratiroop Mudran (PM) was established by Mr.
Rahul Gadia and Mr. Shailendra Bhagwat. PM is engaged in printing
and publishing of various products like brochures, catalogues,
leaflets, books, calendar, diaries, notebooks, dangler and
cartons. The firm also ventured into manufacturing of cartons from
FY15 onwards. The printing unit of the firm is located in Pune
district of Maharashtra with total installed capacity of 2.8 lakh
sheets or 60 jobs per day.

PM carries out printing as per the designs and specifications
provided by the customers and the end user industry clients
include pharmaceutical industry, FMCG sector, advertising,
construction and other corporate clients. PM purchases majority of
paper requirement mainly from Poona Paper Trading Company.

PM majorly caters to the companies/firms located in the Pune
region with clients like Mather & Platt Pumps Limited, Silk
Route Communication, Sandvik Asia Private Limited, Perlin
Cosmeceuticals Private Limited and Real Fragrances (Pune)
Private Limited.

The entity reported TOI of INR8.07 crore with net loss of INR0.07
crore in FY16 against TOI of INR7.19 crore with a net loss
of INR0.94 crore in FY15.


PROSTAR TEXTILE: CRISIL Assigns B+ Rating to INR13MM Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank loan facilities of Prostar Textile Mill Private
Limited (PTMPL). The rating reflects initial stage of setting up
of the company's manufacturing facility, and the intense
competition in the textile industry. These weaknesses are
partially offset by its promoter's extensive industry experience.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            .87        CRISIL B+/Stable
   Term Loan            13.00        CRISIL B+/Stable


Key Rating Drivers & Detailed Description

Weaknesses

* Initial stage of setting up of manufacturing facility:
  Construction of the manufacturing unit commenced in October
  2015. The project has an estimated cost of INR24 crore, and is
  likely to be completed by April 2017. Timely completion and
  stabilisation of the facility will remain a rating sensitivity
  factor.

* Exposure to intense competition: PTMPL is setting up a fabric
  printing facility at Thiruppur, Tamil Nadu. The region has a
  lot of players in the textile industry. The company's business
  risk profile will remain susceptible to intense competition.

Strength

* Promoter's extensive industry experience: The promoter's
  experience of more than a decade in the textile industry should
  support the company's business risk profile.

Outlook: Stable

CRISIL believes PTMPL will benefit from the extensive industry
experience of its promoter. The outlook may be revised to
'Positive' if revenue and profitability are more than expected and
working capital cycle is stable, strengthening the financial risk
profile. The outlook may be revised to 'Negative' if revenue and
profitability are lower than expected, or if a stretch in working
capital cycle, or delay or cost overrun in the project, weakens
the financial risk profile.

PTMPL, incorporated in 2015 by Mr. M Paramasivam, is setting up a
fabric printing facility at Thiruppur in Tamil Nadu. The company
will undertake printing job work.


RADHESHYAM INDUSTRIES: CRISIL Reaffirms B+ Rating on INR12MM Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facility of Radheshyam Industries (RI).

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

The ratings continue to reflect the firm's modest scale of
operations in a highly fragmented and intensively competitive
industry, modest financial risk profile, and susceptibility to
changes in government policies. These weaknesses are partially
offset by its partners' extensive experience in the cotton
industry.

Analytical Approach

CRISIL has treated the unsecured loans extended to RI by partners
as neither debt nor equity as these loans are interest free and
are expected to remain in the business.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations amid intense competition: Revenue
  of INR95.23 crore in fiscal 2016 reflects modest scale in the
  intensely competitive edible oil industry, thereby restricting
  pricing and bargaining power.

* Modest financial risk profile: Networth of INR4.07 crore in
  fiscal 2016 and gearing of 2.50 times as on March 31, 2016,
  reflect modest financial risk profile.

* Susceptibility of unfavorable government policies: The
  Government of India fixes minimum support price for each crop
  every year and any regulatory intervention can distort market
  prices, thereby, affecting profitability of players.

Strength

* Partners' experience: During their decade-long experience,
  the partners established relationships with farmers and
  customers.

Outlook: Stable

CRISIL believes RI will continue to benefit over the medium term
from the partners' experience. The outlook may be revised to
'Positive' in case of significantly higher-than-expected cash
accrual driven by substantial increase in revenue or operating
profitability. Conversely, the outlook may be revised to
'Negative' if financial risk profile weakens because of increase
in working capital requirement, sizeable debt-funded capital
expenditure or larger-than-expected capital withdrawal.

RI was set up in 2008 as a partnership firm by Mr. Barkatali
Bhimji, Mr. Amarshi Aamba, Mr. Samsudin Sadrudin, Mr. Akbarali
Bhimji, Mr. Yogesh Diru, Mr. Nagji Aamba, Mr. Firojali Pyarli, and
Mr. Alkesh Siraj. It has a cotton ginning and pressing unit in
Amreli (Gujarat).

Profit before tax and net sales decreased to INR0.28 crore and
INR95.22 crore, respectively, in fiscal 2016 from INR0.76 crore
and INR106.91 crore in fiscal 2015.


RICHA PETRO: CARE Assigns 'D' Rating to INR12.58cr LT Loan
----------------------------------------------------------
CARE has been seeking information from Richa Petro Products
Limited (RPPL) to monitor the rating vide e-mail
communications/letters dated July 15, 2016, February 16, 2017,
February 18, 2017 and numerous phone calls. However, despite our
repeated requests, the company has not provided the requisite
information for monitoring the rating. In line with the extant
SEBI guidelines CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion is
not sufficient to arrive at a fair rating.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             12.58      CARE D; ISSUER NOT
                                     COOPERATING; based on best
                                     Available information

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

The rating takes into account ongoing delay in the servicing of
the bank debt obligations on account of the stretch liquidity
position of the company.

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

Richa Petro Products Private Limited (RPPPL) (erstwhile, Richa
Pipes & Fittings Private Limited, name changed in 2011) was
incorporated in the year 2010 by Mr. Ramesh Chandra Parida of
Bhubaneswar, Odisha. The company has been engaged in manufacturing
of pipes, pipe fittings, furniture, and water tanks of PVC
(Polyvinyl Chloride). The main raw materials used in the
production activity are Linear low-density polyethylene (LDPE),
High-density polyethylene (HDPE), Polypropylene (PP) and PVC
resin. The raw materials are procured mainly from Haldia
Petrochemicals Limited and Reliance Industries Limited. The
manufacturing plant of the company is located at Bhubaneshwar,
Odisha and it is well equipped with modern amenities along with
ISO 9001:2008 certification. RPPPL sells its products under the
brand name of "Richa" (unregistered) through its established
dealer network covering the state of Odisha only. RPPPL is a
closely held company consisting of three directors. Currently, the
day to day affairs of RPPPL are managed by Mr. Ramesh Chandra
Parida (Managing Director, Post-graduate, Age 56 years).


S SATYANARAYANA: CARE Assigns B+ Rating to INR2.50cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of S
Satyanarayana & Co (SSC), as:

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

   Long-term/Short-
   term Bank
   Facilities            12.00       CARE B+;Stable/CARE A4
                                     Assigned

Rating Rationale

The ratings assigned to the bank facilities of S Satyanarayana &
Co (SSC) are constrained by small scale of operations,
leveraged capital structure with moderate debt indicators, risk
inherent in partnership firm, high client concentration in
order book position and the highly fragmented and intensely
competitive construction business. The ratings, however,
derive strength from long business experience of the partners,
management in civil engineering industry and established
client base with long-term relationship and moderate working
capital cycle. The ability of the company to steadily
increase its scale of operations with its profits margins and
improves its capital structure along with managing working
capital requirements efficiently.

Detailed description of the key rating drivers

Key Rating weakness
Small scale of operation: Although SSC has been in business since
1976, the firm operates at a relatively small scale with total
operating income of around INR19.55 crore in FY16 (refers to the
period April 01 to March 31) even though total operating income
increase by CAGR of 28.77% during FY14-FY16 on account of increase
in execution of projects.  Leverage capital structure: The capital
structure of the firm has been leveraged over the last three
financial years ended March 31, 2016. The overall gearing ratio
deteriorated from 2.81x as on March 31, 2014, to 3.93x as March
31, 2016, due to increase in total debt over the last three
financial year on account of sanction and usage of new term loan
for heavy engineering equipment purchase and decreased in
partner's capital in FY16 on account of withdrawal of capital.

Risk inherent in a partnership firm: The firm being a partnership
firm is exposed to inherent risk of capital withdrawal by partners
due its nature of constitution. Any significant withdrawals from
the capital account would impact the net worth and thereby the
firm's capital structure. In FY16, partners withdraw capital to
the tune of INR1.06 crore during the period.

Key Rating Strengths
Long experience of promoters in civil engineering industry: Mr. S.
Satyanarayana, Managing Partner, has experienced of
more than three decades in infrastructure sector particularly
ports works (including construction of jetty and dredging
work).

Reputed client base with long-term relationship: SSC mainly caters
to government and large private organisation like Visakhapatnam
Port Trust, AVR Infra Pvt Ltd and Visakhapatnam Port Logistic Park
Limited. The presence of such entities in its client base
strengthens the business risk profile of the firm.

Satisfactory profitability margins: The PBLIDT margin remains at
comfortable level and increasing over the review period FY14-FY16
from 16% in FY14 to 23.72% in FY16 due to execution of relatively
higher margin projects.

Moderate working capital cycle: Working capital cycle remains
moderate at 56 days on account of timely payments for the
execution of projects within 40-50 days from its clients. The
operating cycle improved from 100 days in FY14 to 56 days in FY16
on account of decreased in average inventory period from 96 days
in FY14 to 55 days in FY16.

SSC was established in December 2012 by Mr. S. Satyanarayana and
his family. The partners are involved in the construction business
since 1976 through partnership firm. In 2003, Mr. S. Satyanarayan
dissolved the partnership firm and started a proprietorship firm
under the name of 'S. Satyanarayana' involved in civil
construction of ports, roads, railway lines and others. In
December 2012, the promoter floated another partnership firm named
S. Satyanarayana & Frim (SSC) and the proprietorship firm has been
dissolved. The firm has executed infrastructure work i.e dredging,
construction and repairing for jetty, setting up railway lines etc
for, AVR Infra Pvt Ltd (rated 'CARE BBB-'), Vishakhapatnam Port
Trust and Vishakhapatnam Port Logistic Park Limited. The firm is
also engaged in hire purchase business from FY15.


SAISUDHIR ENERGY: CARE Reaffirms 'D' Rating on INR146.87cr Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Saisudhir Energy Limited (SEL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            146.87      CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers
The rating assigned to the bank facilities of Saisudhir Energy
Limited (SEL) continues to take into account delays in debt
servicing owing to the cash flow mismatches.

Detailed description of the key rating drivers

Key Rating Weaknesses
Continued delays in debt servicing owing to cash flow mismatches:
There are continued delays in debt servicing are on account of
cash flow mismatches primarily due to mismatch in date of receipt
of realization from NTPC and due date of repayment.

Saisudhir Energy Ltd. (SEL) was incorporated in 2010 to set up
solar power plants in the Ananthpur District in state of Andhra
Pradesh. The company is a 100% subsidiary of Saisudhir
Infrastructures Limited (SSIL). SEL has successfully commissioned
two solar photovoltaic power plants of 5 MW and 20 MW,
respectively, in Ananthpur district of Andhra Pradesh. The 5-MW
project was commissioned on January 5, 2012, within stipulated
timelines.

During FY16 (refers to the period April 1 to March 31), SEL has
reported a PAT of INR2.24 crore on a total operating income of
INR41.84 crore as against a PAT of INR1.38 crore on a total
operating income of INR41.16 crore in FY15.


SHITALPUR MOHINDER: CARE Assigns 'B' Rating to INR10.64cr LT Loan
-----------------------------------------------------------------
CARE Ratings has been seeking information from Shitalpur Mohinder
Kalimata Himghar Private Limited to monitor the rating vide e-mail
communications letters dated July 15, 2016, February 16, 2017 and
February 28, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the rating. In the absence of
minimum information required for the purpose of rating, CARE is
unable to express opinion on the rating. In line with the extant
SEBI guidelines CARE's rating on Shitalpur Mohinder Kalimata
Himghar Private Limited's bank facilities will now be denoted as
CARE B; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             10.64      CARE B; ISSUER NOT
                                     COOPERATING

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

Detailed description of the key rating drivers

At the time of last rating in March 3, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced promoters

The main promoter of SMKHPL, Shri Tarun Kanti Ghosh (Managing
Director, aged about 50 years) has around three decades of
experience in similar line of business and is involved in the
strategic planning and running the day to day operations of the
company. He is being duly supported by the other director Shri.
Arun Ghosh (Director, Age: 60 years), Shri. Bimalendu Ghosh
(Director, Age: 48 years), Shri. Biswanath Das (Director, Age: 52
years) and Shri Krisnachandra Nayek (Director, Age: 43 years) and
a team of experienced personnel.

Proximity to potato growing area
SMKHPL's storing facility is situated in the Hooghly district of
West Bengal which is one of the major potato growing regions of
the state. The favorable location of the storage unit, in close
proximity to the leading potato growing areas provides it with a
wide catchment and making it suitable for the farmers in terms of
transportation and connectivity.

Key Rating Weaknesses

Regulated nature of business
In West Bengal, the basic rental rate for cold storage operations
is regulated by the state government through West Bengal State
Marketing Board. The rent of these cold storages is decided by
taking into account political considerations, not economic
viability. Due to severe government intervention, the cold storage
facility providers cannot enhance rental charge commensurate with
increased power tariff and labour charge. Seasonality of business
with susceptibility to vagaries of nature SMKHPL's operation is
seasonal in nature as potato is a winter season crop with its
harvesting period commencing in March. The loading of potatoes in
cold storages begins by the end of February and lasts till March.
Additionally, with potatoes having a preservable life of around
eight months in the cold storage, farmers liquidate their stock
from the cold storage by end of season i.e., generally in the
month of November. The unit remains non-operational during the
period between December to February. Furthermore, lower
agricultural output may have an adverse impact on the rental
collections as the cold storage units collect rent on the basis of
quantity stored and the production of potato is highly dependent
on vagaries of nature.

Risk of delinquency in loans extended to farmers
Against the pledge of cold storage receipts, SMKHPL provides
interest bearing advances to the farmers & traders. Before the
closure of the season in November, the farmers & traders are
required to clear their outstanding dues with the interest. In
view of this, there exists a risk of delinquency in loans
extended, in case of downward correction in potato or other stored
goods prices, as all such goods are agro commodities.

Competition from other local players
In spite of being capital intensive, the entry barrier for new
cold storage is low, backed by capital subsidy schemes of the
government. As a result, the potato storage business in the region
has become competitive, forcing cold storage owners to lure
farmers by providing them interest bearing advances against stored
potatoes which augments the business risk profile of the companies
involved in the trade.

Working capital intensive nature of business
SMKHPL is engaged in the cold storage business; accordingly its
operation is working capital intensive. The same is reflected by
the higher working capital requirement for the company and the
average utilization for the same remained at about 90% during the
last 12 months ended February, 2017.

Shitalpur Mohinder Kalimata Himghar Pvt. Ltd. (SMKHPL) was
incorporated on May 6, 2011 by Shri Tarun Kanti Ghosh, Shri. Arun
Ghosh, Shri. Bimalendu Ghosh, Shri. Biswanath Das and Shri
Krisnachandra Nayek of Hooghly West Bengal to provide cold storage
services with the facility being located at Dhaniakhali, Hooghly,
West Bengal. The company commenced commercial operation since
April, 2012. SMKHPL is currently engaged in the business of
providing cold storage facility at the same location primarily for
potatoes and is operating with a storage capacity of 1,98,450
quintals. Besides providing cold storage facility the unit also
works as a mediator between the farmers and marketers of potato,
to facilitate sale of potatoes stored and it also provides
interest bearing advances to farmers for farming purposes of
potato against potato stored. Shri Tarun Kanti Ghosh (MD) looks
after the day to day operations of the unit.


SANJAY TRADE: CARE Reaffirms 'B' Rating on INR5cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sanjay Trade Corporation (STC), as:

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

   Short-term Bank
   Facilities              30        CARE A4 Reaffirmed

Detailed Rationale
The ratings assigned to the bank facilities of Sanjay Trade
Corporation (STC) continue to remain constrained on account of its
small scale of operations, low cash accruals, thin profit margins
and weak debt coverage indicators. The ratings further continue to
remain constrained due to partnership nature of business operation
coupled with operations in volatile, fragmented and competitive
nature of the ship breaking industry. The ratings, however,
continue to derive benefits from the vast experience of the
partners coupled moderately comfortable capital structure and
moderate liquidity position. The ability of STC to increase its
scale of operations by acquiring new ships for breaking coupled
with an improvement in profit margins and debt coverage indicators
remains the key rating sensitivities.

Detailed description of the key rating drivers

Key rating weaknesses

Small scale of operations, low cash accruals, thin profit margins
and weak debt coverage indicators

STC's total operating income (TOI) witnessed a significant
increase in TOI from INR1.05 crore in FY15 (refers to the period
April 1 to March 31) to INR21.29 crore in FY16 on account of
increase in sales volume. However, it continues to remain at a
small level. As a result, PBILDT and PAT increase in absolute
terms but declined on a relative basis. PBILDT margin declined and
remained low at 3.24% during FY16 as against 35.08% during FY15.
The PAT margin also declined and remained low at 1.59% (5.44%
during FY15). On the back of low cash accruals and relatively high
debt level, total debt to GCA stood weak at 31.54x as on March 31,
2016.

Partnership nature of business operation coupled with operations
in volatile, fragmented and competitive nature of the ship-
breaking industry

Being a partnership firm, STC is exposed to risk of withdrawal of
capital by the partners in case of need arises which could put
pressure on capital structure of firm. Furthermore, ship-breaking
industry is highly fragmented in nature wherein large number of
players operates within same vicinity. In addition to this,
operations also remain volatile as business activities will be
carried out only when ships will be available for breaking.

Key rating strengths

Experienced partners
Mr Salim Dholia and Mr. Rafik Dholia possess an experience of over
two decades in ship-breaking business. Prior to STC partners have
experience of 10 years as scrap traders. All the partners are
actively involved in the day-to-day business operations of the
firm. Over the period, they have established good relation with
intermediaries and the market players prevailing in ship breaking
industry. Furthermore, partners are also associated with other
entity Star Ship Breaking Corporation (SSBC rated 'CARE B') which
is also engaged into ship-breaking industry.

Moderately comfortable capital structure and moderate liquidity
position

Overall gearing stood moderately comfortable at 1.51x as on March
31, 2016, on the back of moderate level of debt and net worth
position. Liquidity position also stood moderate marked by current
ratio of 1.61x as on March 31, 2016, while average working capital
utilization stood low at 10% for last 12-month period ended
January 2017.

Established as partnership firm in 1996 by Mr. Salim Dholia, Mr.
Salim Lakhani and Mr. Rafik Dholia, STC is engaged in the ship-
breaking activity. Mr. Salim Lakhani left the partnership firm and
his son Mr. Safi Lakhani joined the partnership firm in FY16. STC
purchases ships like primarily bulk carriers and cargo ships,
mainly through brokers from open market and sells scraps through
brokers mainly in Sihor, Ahmedabad and Jamnagar (Gujarat) for
manufacturing of TMT bars. The ship breaking operations are
carried out at premises which are taken on lease for tenure of 10
years from Alang Port from Gujarat Maritime Board.

During FY16 (A), STC reported PAT of INR0.33 crore on a TOI of
INR21.29 crore as against PAT of INR0.06 crore on a TOI of INR1.05
crore during FY15. Upto January 23, 2017 (Prov.), STC has achieved
a turnover of INR8.42 crore.


SHREE HD: CARE Assigns 'B' Rating to INR6cr LT Loan
---------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shree
H.D. Overseas (SHD), as:

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

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Shree H.D. Overseas
(SHD) is constrained by its small scale and short track record of
operations, weak financial risk profile characterised by net loss
in 8MFY17 (provisional), leveraged capital structure, weak debt
coverage indicators and elongated operating cycle. The rating is
further constrained by the partnership nature of constitution,
susceptibility to fluctuation in raw material prices and monsoon
dependant operations and its presence in a fragmented industry
coupled with high level of government regulation. The rating,
however, derives strength from the experienced partners in the
agro processing industry.

Going forward, the ability of the firm to scale-up its operations
while improving the overall solvency position would remain the key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Short track record, Small scale of operations along with net loss:
Owing to first year of business with one month of operations, the
firm's scale of operations has remained small marked by Total
Operating Income (TOI) of INR1.79 crore in 8MFY17 (Provisional).
Though, the PBILDT margins of the firm stood moderate at 7.75% in
8MFY17 (Provisional); the firm incurred net loss of INR0.02 crore
owing to high interest expenses.

Leveraged capital structure and weak debt coverage indicators: The
capital structure of the firm stood leveraged with overall gearing
ratio of 5.57x as on November 30, 2016 mainly on account of the
firm's high reliance on borrowings to undertake capex involving
setting up a manufacturing facility. Additionally, the debt
coverage indicators also remained weak with the total debt to GCA
at 205.45x for 8MFY17 (Provisional) and interest coverage ratio at
1.16x in 8MFY17 (Provisional).

Elongated operating cycle: The operating cycle of the firm stood
elongated at 456 days for 8MFY17 (Provisional). As per the
bankers, the average utilization of the cash credit limit remained
at about 60% for the last 3 months period ended January, 2017.

Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature.
Adverse climatic conditions can affect their availability and
leads to volatility in raw material prices.

Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product
makes the industry highly fragmented with numerous players
operating in the unorganized sector with very less product
differentiation. Additionally, the raw material (paddy) prices are
regulated by the government to safeguard the interest of
farmers, which in turn limits the bargaining power of the rice
millers.

Partnership nature of constitution: SHD's constitution as a
partnership firm has the inherent risk of possibility of
withdrawal of the partners' capital at the time of personal
contingency and the firm being dissolved upon the
death/retirement/insolvency of partners.

Key Rating strengths

Experienced partners in the agro processing industry: Mr. Kailash
Singla and Mr. Vijay SIngla have experience of one decade in paddy
processing business through their association with Shree Hari Om
Foods (another family run business).

Shree H.D. Overseas (SHD) was established in April 2016 as
partnership firm by Mr. Kailash Singla and his brother Mr. Vijay
Singla and their wives, Mrs Ritu Singla and Mrs Poonam Singla
sharing profit and losses in the ratio of 3:2:3:3 respectively.
SHD is engaged in processing of paddy at its unit located at
Karnal, Haryana with an installed capacity of 36,000 Tonnes of
paddy per annum (TPA) as on December 31, 2016. The firm procures
the raw material (paddy) from local grain markets through
commission agents and brokers based in Uttar Pradesh, Madhya
Pradesh, Rajasthan, Delhi, Haryana etc. and sells basmati and non-
basmati rice to wholesalers located in Haryana, Delhi and Kolkatta
only. The total project cost of setting up the manufacturing
facility was INR3.08 crore which was funded through partners'
contribution of INR0.50 crore (in the form of capital) and term
loan of INR2.58 crore. The project got completed in October 2016.
The firm commenced operations in November, 2016.

In 8MFY17 (Provisional, refers to the period April 1 to
March 31), SHD has achieved a total operating income (TOI) of
INR1.79 crore with net loss of INR0.02 crore.


SILVERMOON MOTORS: CRISIL Assigns B+ Rating to INR5MM Overdraft
---------------------------------------------------------------
CRISIL Ratings assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Silvermoon Motors Private Limited (SMMPL).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Electronic Dealer
   Financing Scheme
   (e-DFS)                 5          CRISIL B+/Stable (Assigned)


   Auto loans               .6        CRISIL B+/Stable (Assigned)

   Drop Line Overdraft
   Facility                5          CRISIL B+/Stable (Assigned)

The rating reflects the company's weak financial risk profile
because of stretched liquidity, modest scale of operations, and
large working capital requirement. These weaknesses are partially
offset by the extensive experience of its promoters and
established relationship with principal, Toyota Kirloskar Motor
Pvt Ltd (TKMPL).

Key Rating Drivers & Detailed Description

Weaknesses

* Financial risk profile is weak because of stretched liquidity.
  Cash accrual is likely to be INR0.64 crore against debt
  obligation of INR0.61 crore in fiscal 2017. Also, interest
  coverage ratio is expected to be muted at 1.8 times in fiscal
  2017.

* With an expected turnover of INR22 crore in fiscal 2017, scale
  is likely to be small in the competitive automobile dealership
  industry.

* Working capital requirement is large, reflected in gross current
  assets of 140 days and sizeable inventory of 130 days.

Strengths

* The company's promoter operates dealership of Fiat India under
  Ganesha Motors Pvt Ltd (rated 'CRISIL C'); and of Honda
  Motorcycle & Scooter India Pvt Ltd under the firm - A.G. Motor
  (rated 'CRISIL B-/Stable').

* Established relationship with principal enables SMMPL to earn
  sales-based incentives.

Outlook: Stable

CRISIL believes SMMPL will benefit over the medium term from the
extensive experience of its promoter. The outlook may be revised
to 'Positive' if financial risk profile improves with better cash
accrual and working capital management. The outlook may be revised
to 'Negative' if decline in scale of operations adversely affects
accrual, or if sharp increase in working capital requirement or
larger-than-expected debt-funded capital expenditure further
weakens liquidity.

Incorporated in March 2012 and promoted by Mr. Mohan Singh
Guleria, SMMPL is an authorised dealer of TKMPL's passenger cars
in Kangra and Chamba districts of Himachal Pradesh. The company
has a showroom-cum-service centre in Kangra.

Profit after tax was INR0.08 crore on net sales of INR17.3 crore
in fiscal 2016, vis-a-vis INR0.15 crore and INR28.3 crore,
respectively, in fiscal 2015.


SITARA JEWELLERY: CRISIL Assigns 'B' Rating to INR7.5MM Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating on the
long-term bank facility of Sitara Jewellery Private Limited
(SJPL).

                            Amount
   Facilities             (INR Mln)     Ratings
   ----------             ---------     -------
   Export Packing Credit      7.5       CRISIL B/Stable

The rating reflects SJPL's large working capital requirement and
modest scale of operations in the highly fragmented jewellery
industry. These weaknesses are partially offset by promoters'
extensive experience and established relationships with customers.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in the intensely competitive
  jewellery industry: The gems and jewellery industry in India is
  highly fragmented and largely dominated by the unorganised
  sector as it is not capital intensive. Revenue was modest at
  INR31.44 crore for fiscal 2016.

* Large working capital requirement: Operations are working
  capital intensive as reflected in gross current assets of 506
  days as on March 31, 2016, mainly on account of large
  inventory.

Strength

* Promoters' extensive experience and established relationships
  with customers: Presence of promoters, Ms Amita Lavlakha and
  her son Mr. Divanshu Lavlakha, in the jewellery business for
  over 20 years has helped establish healthy relationships with
  suppliers and customers.

Outlook: Stable

CRISIL believes SJPL will continue to benefit over the medium term
from its promoters' extensive experience and established
relationships with customers. The outlook may be revised to
'Positive' in case of a sustained improvement in scale of
operations and profitability margin, or improvement in working
capital management. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in profitability margins, or
significant deterioration in its capital structure, caused most
likely by a stretch in the working capital cycle.

Established in 2006, SJPL, promoted by Ms Amita Navlakha and her
son Mr. Divyanshu Navlakha, manufactures and exports diamond-
studded gold jewellery; it also deals in gold, silver, and other
types of jewellery. Its manufacturing facility is in SEEPZ
(Mumbai).

Profit after tax (PAT) was INR1.0 crore on net sales of INR31.44
crore in fiscal 2016, against a profit after tax of INR1.80 crore
on net sales of INR28.76 crore in fiscal 2015.


SREE SREE: CARE Reaffirms B+ Rating on INR3.85cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sree Sree Rakhahari Cold Storage Private Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             3.85       CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities             0.14       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings for the bank facilities of Sree Sree Rakhahari Cold
Storage Private Limited continues to remain constrained by its
regulated nature of business, competition from other local
players, seasonality of business with susceptibility to vagaries
of nature, risk of delinquency in loans extended to farmers and
weak financial risk profile marked by small scale of operation
with thin profitability and leveraged capital structure. The
ratings, however, derive strength from its experienced promoters
and proximity to potato-growing area.

Going forward, ability of the company to increase its scale of
operations and profitability and ability to manage working
capital effectively will be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Regulated nature of business: In West Bengal, the basic rental
rate for cold storage operations is regulated by the state
government through West Bengal State Marketing Board. Due to
ceiling on the rentals to be charged, it is difficult for cold
storage units like SSRCS to pass on a sudden increase in the
operating costs, leading to a downward pressure on the
profitability.

Competition from other local players: Despite being capital
intensive, the entry barrier for setting up of a new cold
storage unit is low on account of the government support and high
demand for cold storages in West Bengal. The storage business is
highly competitive in the potato growing regions of the state as
it is the second largest producer of potato in India.

Seasonality of business with susceptibility to vagaries of nature:
SSRCS's operations are seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of February
and lasts till March. Additionally, with potatoes having a
preservable life of around eight months in the cold storage,
farmers liquidate their stock from cold storage by the end of the
season, ie, generally in the month of November.

Risk of delinquency in loans extended to farmers: Against the
pledge of cold storage receipts, SSRCS provides interest bearing
advances to the farmers. The working capital limits under produce
marketing loan scheme from banks are used to extend advances to
farmers, which routed to the farmers through SSRCS. Before the
close of the season in November, the farmers are required to pay
their outstanding dues, including repayment of the loan taken,
along with the interest. In view of this, there exists a risk of
delinquency in the loans extended to farmers, in case of downward
correction in potato or other stored goods prices as all such
goods are agro commodities.

Weak financial risk profile marked by small scale of operation
with thin profitability and leveraged capital structure: In FY16,
the company has achieved total operating income of INR2.99 crore
and a PAT of INR0.08 crore with an increase in revenue of about
9.85%. The total capital employed stood at INR9.89 crore as on
March 31, 2016. In view of the same the scale of operation
continued to be on the lower side. Furthermore, the PAT margin has
been low and hovering around 2.70% during the said period. Overall
gearing ratio has deteriorated further on account of higher
utilisation of bank borrowing to fund the working capital needs in
the escalated scale of operation.

Key Rating Strengths
Experienced promoters: Mr. Anup Kumar Pratihar of Midnapur (West
Bengal), the main promoter of SSRCS, has an experience of over 25
years in rice milling and agro-commodity (Potato) trading
business. He is associated with the business since inception and
looks after the day to day affairs of the company with adequate
support from his co-director & a team of experienced
professionals.

Proximity to the potato growing area: SSRCS is situated in the
Paschim Midnapur district of West Bengal which is one of
the major potato growing regions of the state. The favourable
location of the storage unit, in close proximity to the
leading potato growing areas augers well for the company, as it
provides it with a wide catchment and making it suitable
for the farmers in terms of transportation and connectivity.

Sree Sree Rakhahari Cold Storage Pvt Ltd (SSRCS), incorporated in
March 27, 2007, was promoted by two brothers Mr. Swarup Pratihar
and Mr. Anup Kumar Pratihar of Paschim Midnapur, West Bengal.
Since inception, SSRCS is engaged in the business of providing
cold storage facility primarily for potatoes to local farmers and
traders on rental basis. The facility, with a storage capacity of
1,78,028 quintals, is located at Paschim Midnapur district of West
Bengal. Besides providing cold storage facility, the company also
provides interest bearing advances to farmers for potato farming
purposes against potato stored. This apart it also provides
additional services to farmers such as insurance of potatoes
stored & drying of potatoes.

During FY16, the company reported a total operating income of
INR2.99 crore (FY15: INR2.72 crore) and a PAT of INR0.08
crore (in FY15: INR0.08 crore).


SUKH SAGAR: CARE Reaffirms B+ Rating on INR5.10cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sukh Sagar Industries (SSI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long -term Bank
   Facilities             5.10       CARE B+; Stable Reaffirmed

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of Sukh Sagar
Industries (SSI) continues to remain constrained on account of its
moderate scale of operations with low profitability, moderate
capital structure and weak debt coverage indicators. The
rating further continues to remain constrained on account of its
working capital intensive operations, presence in the
highly competitive and fragmented agro processing industry,
vulnerability of its profit margins to agro commodity price
fluctuations and proprietorship nature of constitution.

The rating however, continues to draw strength from the experience
of the proprietor.

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

Detailed description of the key rating drivers

Key rating weaknesses

Moderate scale of operations with low profitability, moderate
capital structure, weak debt coverage indicators and
working capital intensive nature of operations
The scale of operation remained moderate marked by TOI of INR28.93
crore during FY16. The PBILDT margin declined by
63 bps and stood low at 3.17% during FY16 (refers to the period
April 1 to March 31) on account of increase in raw
material cost. The PAT margin also remained thin during FY16 owing
to high interest costs and low value addition nature
of operations. The capital structure marked by overall gearing
stood moderate on the back of low net worth base and
high level of debt. Furthermore, with low cash accruals, debt
coverage indicators also stood weak marked by total debt to
GCA of 32.17 times as on March 31, 2016. The operations are
working capital intensive marked by high utilisation of its
working capital limit along with high ratio of net working capital
to total capital employed as on March 31, 2016.

Presence in the highly competitive and fragmented agro processing
industry
SSI generates its revenue from processing of pulses and is exposed
to inherent risks associated with agro-climatic conditions and
seasonality of agro product. SSI is operating in competitive
industry having low entry barriers, high fragmentation and the
presence of a large number of players in the organized and
unorganized sector translate into inherently thin profitability
margins.

Vulnerability of its profit margins to agro commodity price
fluctuations
The profitability of SSI is exposed to fluctuations in raw
material prices, which is being agricultural commodity its prices
are volatile in nature and linked to production in the domestic
market.

Proprietorship nature of constitution
SSI being a proprietorship firm is exposed to inherent risk of
Proprietor's capital being withdrawn at the time of personal
contingency and the firm being dissolved upon the
death/retirement/insolvency of the key proprietor.

Key rating strengths

Experienced proprietor
Mr Virendra Kumar Tirthani, the proprietor of SSI, looks after
overall operation of the firm and possesses more than 15 years of
experience in pulse processing.

SukhSagar Industries (SSI) was established in the year 2006 by Mr.
Virendra Kumar Tirthani as a proprietorship firm. SSI is engaged
in processing of Arhar Dal (Toor dal) and trading of
Arharchunibhusi (used as cattle feed) and sells its product under
the brand name Nagarseth, Rajdhani and Cow Bashra. Mr. Virendra
Kumar Tirthani has been carrying on the processing of arhardaal
since 2002 through a partnership firm which was later converted
into SSI. The entity's plant is located at Katni, Madhya Pradesh
with an installed capacity of 18,000 Metric Tonnes Per Annum
(MTPA) as on March 31, 2016 and it carries on cleaning, splitting
and grading operations. SSI procures raw material from the local
market and sells it in Maharashtra, Madhya Pradesh, Uttar Pradesh
and Bihar through a network of dealers.

During FY16 (A), SSI reported PAT of INR0.12 crore on a TOI of
INR28.93 crore as against net profit of INR0.11 crore on a TOI
of INR28.24 crore during FY15. During 10MFY17 (Provisional),SSI
has achieved a turnover of INR24 crore.


SWASTIK OVERSEAS: CRISIL Reaffirms 'B' Rating on INR.5MM Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities
of Swastik Overseas (SO) at 'CRISIL B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             .5        CRISIL B/Stable (Reaffirmed)
   Letter of Credit       5.5        CRISIL A4 (Reaffirmed)

The ratings continue to reflect a small scale of operations,
exposure of the operating margin to volatility in foreign exchange
(forex) rates, and an average financial risk profile because of a
small net worth and a high total outside liabilities to tangible
net worth (TOLTNW) ratio. These rating weaknesses are partially
offset by the extensive experience of the promoters in the silk
yarn and fabric trading business, and efficient working capital
management.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operations and exposure to risks related to
  volatility in forex rates

Revenue was INR16.86 crore in fiscal 2016. The small scale of
operations constrains the bargaining power with suppliers and
customers. Moreover, the silk yarn and fabric trading segment is
intensely competitive as there are numerous mid-size and small
traders; this further constrains pricing flexibility.

* Below-average financial risk profile

The net worth was low at INR1.55 crore and the TOLTNW ratio high
at 3.4 times, as on March 31, 2016. The interest coverage ratio is
expected to remain modest at 1.3 times over the medium term. Owing
to low accretion to reserves, the financial risk profile is
expected to remain constrained over this period.

Strength

* Extensive industry experience of the promoters

The promoters have extensive experience in the silk trading
business. Furthermore, the firm has 5-6 suppliers in China, from
where it imports around 60% of the yarn requirement. It also has a
strong base of 30-40 customers across Karnataka, Uttar Pradesh,
and other states.

Outlook: Stable

CRISIL believes SO will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of significant improvement in revenue and
profitability while the working capital cycle is maintained, or
substantial capital infusion, thereby improving the net worth. The
outlook may be revised to 'Negative' if the working capital cycle
stretches, or there is a sharp decline in profitability, most
likely due to any adverse forex rate movement.

SO, established 2010, is based in Bengaluru; operations are
managed by Mr. Sachin Kumar. The firm trades in silk yarn and
fabric and has recently also started trading in spices and pulses.

In fiscal 2016, profit after tax (PAT) was INR17.04 lakh on net
sales of INR16.85 crore, as against PAT of INR14.05 lakh on net
sales of INR15.85 crore in fiscal 2015.


SYNDICATE IMPEX: CARE Assigns B+ Rating to INR1.16cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Syndicate Impex (SI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             1.16       CARE B+; Stable Assigned

   Short-term Bank
   Facilities             4.30       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of Syndicate Impex
(SI) are constrained by its small scale of operations, client
concentration risk, thin and fluctuating profit margins due to
susceptibility of raw materials and forex movements, weak capital
structure and debt protection metrics, working capital intensive
nature of operations resulting in elongated operating cycle,
intense competition in a highly fragmented industry structure and
constitution being a partnership firm with risks of continuity of
business, withdrawal of capital and limited resources of partners.

However, the ratings derive comfort from the growth in total
operating income and successful completion of capacity expansion
in Q2FY17 (refers to the period April 1 to March 31). The ratings
also factor in the long track record of operations and experience
of the promoters.

Going forward, the firm's ability to improve its scale of
operations, profit margins amidst volatility in raw material
prices and capital structure along with effective management of
its working capital requirements would be its key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Small scale of operations: SI's operations are small as measured
by small size of total operating income (TOI) of INR15.34 crore in
FY16 and low networth of INR1.84 crore as on March 31, 2016,
thereby limiting its financial flexibility to meet any exigency.

Client concentration risk: SI is receiving around 98% of the
revenue from top 2 customers exposing SI to high client
concentration risk. However, comfort can be derived from the
repeat orders bagged by SI during FY15 and FY16. The key
client "Orchestra" has more than 1000 outlets in Europe and is
expanding its market in US also.

Thin and fluctuating profit margins due to susceptibility of raw
materials and forex movements: The profit margins are fluctuating
due to the susceptibility of raw material prices and foreign
exchange movements. The PBILDT margin dipped by 131 bps to 6.59%
in FY16 over FY15 due to increase in material costs and other
manufacturing expenses incurred. PAT margin stood thin and
fluctuating on the back of variations in PBILDT margin coupled
with increase in interest and depreciation costs.

Weak capital structure and debt protection metrics: The overall
gearing ratio deteriorated over FY15 and stood weak at 5.01x as on
March 31, 2016 as compared to 2.22x as on March 31, 2014 due to
significant increase in debt levels. Interest coverage ratio stood
moderate in the range of 1.57 times and 1.82 times during the
years FY14-FY16. Total debt/GCA stood high at 21.22x in FY16 as
against 9.09x in FY15 on the back of increase in the total debt.

Working capital intensive nature of operations resulting in
elongated operating cycle: SI procures raw materials from
Tirupur region and avails credit period ranging from 0-60 days.
Sales of SI were initially based on usance letter of credit
(90 days) whereas from FY15, SI's sales are against sight LC. This
led to improvement in average collection period from 49 days in
FY15 to 35 days in FY16 resulting in improvement of operating
cycle from 105 days in FY15 to 73 days in FY16.

Intense competition in a highly fragmented industry structure: The
garment industry in India is highly fragmented and dominated by a
large number of independent and small unorganized players leading
to high competition among industry players. Thus SI is exposed to
significant competition both in the domestic as well as
international market.

Constitution being a partnership firm with risks of continuity of
business, withdrawal of capital and limited resources of partners:
Partnership nature of business has an inherent risk of withdrawal
of capital at the time of personal contingency.  The firm also has
the risk of business being discontinued upon the death/insolvency
of the partners.

Key Rating Strengths

Growth in total operating income: The total operating income of
the firm grew at a CAGR of 88% during the period FY14-FY16 and
stood at INR15.34 crore with PAT of INR0.32 crore on the back of
y-o-y increase in the orders and addition of reputed clients.

Successful completion of capacity expansion in Q2FY17: SI has
recently completed capacity expansion of additional 120 seaters
along with modernization plan by installing vacuum ironing tables,
wooden boilers and office furniture.

Long track record of operations and experience of the promoters:
Being established in 2006, the firm has a long operational track
record of more than a decade. Mr. S Jayakumar and Mr. N Kathiresan
are graduates in Fashion Technology and have an experience of 2
years in the textile industry prior to establishment of SI.

Syndicate Impex (SI), a Tirupur based firm was established as a
partnership firm in 2006 and the partners are Mr. N Arunachalam,
Mr. N Kathiresan, Mr. S Jayakumar and Mr. S Aruna Devi. SI, 100%
export oriented unit (EOU), is engaged in manufacturing of hosiery
knitted and woven garments (children's wear). The client base
includes major fashion brands such as Orchestra (based in France),
Max (based in Dubai).

SI procures yarn count ranging from 20's to 70's and outsources
knitting, dyeing and compacting. There are around 200 regular
employees.

In FY16, SI reported a PAT of INR0.32 crore on a total operating
income of INR15.34 crore, as against a PAT and TOI of INR0.22
crore and INR10.02 crore respectively in FY15.


TRACK COMPONENTS: CRISIL Reaffirms 'D' Rating on INR77.5MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Track Components Limited (TCL) at 'CRISIL D/CRISIL D'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee       00.75        CRISIL D (Reaffirmed)
   Cash Credit          77.5         CRISIL D (Reaffirmed)
   Letter of Credit     31           CRISIL D (Reaffirmed)
   Term Loan            30.75        CRISIL D (Reaffirmed)

The ratings continue to reflect instances of delay in servicing
debt due to stretched liquidity, driven by the recent large, debt-
funded capital expenditure (capex). The ratings also factor in a
weak financial risk profile, because of a leveraged capital
structure and below-average debt protection metrics, and working
capital-intensive operations. These rating weaknesses are
partially offset by the extensive experience of the promoters in
the pipes industry and an established relationship with customers.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile

That's driven by a high total outside liabilities to tangible
networth ratio of 10 times as on March 31, 2016, and weak debt
protection metrics. The interest coverage and net cash accrual to
adjusted debt ratios were at 1.66 times and 0.07 time,
respectively, for fiscal 2016, owing to the recent significant,
debt-funded capex. The financial risk profile is likely to remain
weak over the medium term owing to muted profitability coupled
with high dependency on bank borrowing.

* Large working capital requirement

That's primarily because of the long cycle of about two months for
collection from customers, and high stocking requirement leading
to inventory of 3-4 months. Though part of the working requirement
is met by negotiating with suppliers for longer credit periods,
working capital requirement is likely to continue being funded by
external debt over the medium term.

Strength

* Extensive industry experience of the promoters and an
  established relationship with customers

The promoters have been manufacturing pipe assemblies for more
than a decade, and have an experience of over two decades in the
automotive components industry. This has led to establishment of a
healthy relationship with customers, leading to repeat orders and
thus to an increase in scale of operations. That's evident from
the compound annual growth rate of 23% over five fiscals through
2016.

Promoted by Mr. Ratan Kapoor and Mr. Sandeep Chandok, TCL has been
manufacturing pipe assemblies for more than 10 years. It started
as a supplier to Mark Exhaust Systems Ltd (MESL) but later added
two new major customers, Mahindra & Mahindra Ltd and Honda
Motorcycle & Scooter India Private Limited, to reduce dependency
on MESL.

Profit after tax (PAT) and net sales were INR2.01 crore and
INR413.98 crore, respectively, for fiscal 2016, as against INR3.24
crore and INR354.57 crore, respectively, for the previous fiscal.

VIVEK AGROTECH: CARE Assigns B+ Rating to INR9.95cr LT Loan
-----------------------------------------------------------
CARE has been seeking information from Vivek Agrotech Private Ltd
to monitor the ratings vide e-mail communications/ letters dated
July 29, 2016, Feb. 24, 2017, Feb. 28, 2017 and numerous phone
calls. However, despite our repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Vivek Agrotech
Private Ltd's bank facilities will now be denoted as CARE B+;
ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.95       CARE B+; ISSUER NOT
                                     COOPERATING

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

Detailed description of the key rating drivers

At the time of last rating in February 2, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced promoters with established presence in the industry:
The promoters of VAPL have long presence in the edible oil
industry through their associate concern M/s PBS Oil Industries
Ltd which is into edible oil industry since 1989. Mr. Shyam Kumar
Agrawal (Director) has around three decades of experience in the
same line of business and will look after the overall management
of the company. Furthermore, he will be supported by other
directors.

Positive outlook for the rice bran oil: Rice Bran Oil (RBO) is a
relatively new form of edible oil, still to find a foothold in the
domestic edible oil industry. The aggregate production of RBO is
insignificant compared with demand for edible oil in India.
Furthermore, the oil is generally used as an ingredient in well-
established edible oil brands instead of being sold directly.
However, growth prospects appear to be favourable in view of
significant health benefits in comparison with other types of
edible oil.

Key Rating Weaknesses

Project risk: Currently VAPL is setting up a rice bran oil
extraction and refinery unit at Dhamtari, Chhattisgarh, having an
installed capacity of 75,000 metric tonnes per annum (MTPA) with
an aggregate project cost of INR11.98 crore (including margin
money for working capital) which is to be financed at debt equity
of 1.18x. The financial closure has already been achieved and the
company has spent INR9.19 crore through term loan of INR3.91 crore
and promoter's contribution of INR5.28 crore as on
December 31, 2015. The project is estimated to be operational by
the end of January 2016. The company has already spent around
76.71% of total project cost and thus the project is at an
advanced stage. So the risk of project implementation is low.
However, there exists risk relating to stabilisation of operations
and off-take of its products.

Volatility in raw material prices: The major raw material for VAPL
will be rice bran/husk, which will be accounting for the major
cost driver for the company, the prices of which is highly
volatile as the same is governed by the demand-supply dynamics
prevalent in major crop growing nations, favourable weather
conditions and prices of substitute edible oils. Hence, the
profitability margins of the company will expose to any sudden
spurt in the raw material prices.

High dependence on vagaries of nature: Rice bran, the major input
for Rice Bran Oil is obtained from paddy, an agri produce. Given
the lack of adequate irrigation facilities in India, the
cultivated amount of paddy highly depends upon monsoons and thus,
is subjected to vagaries of nature.

Highly fragmented & competitive nature of the industry: Due to low
entry barriers, the Indian edible oil processing segment is highly
fragmented and competitive due to presence of various small
players. Most of the manufacturers offer similar products with
little difference which competes with each other resulting in
lower margins for most of the players. Furthermore, availability
of varieties of edible oils such as mustard oil, sunflower oil,
soya bean oil, etc, which can be substituted for one another also
adds on the competition.

VAPL was incorporated in February 2006 by the Agrawal family of
Raipur, Chhattisgarh. Presently VAPL is setting up a rice bran oil
extraction unit at Dhamtari, Chhattisgarh, having an proposed
installed capacity of 75,000 metric tonnes per annum (MTPA) with
an aggregate project cost of INR11.98 crore. The financial closure
has already been achieved and the company has spent INR 9.19 crore
as on December 31, 2015. The project is estimated to be
operational by the end of January 2016. The company is entitled to
receive capital subsidy of INR70 lakh from State government of
Chhattisgarh for setting up a new manufacturing unit (under its
programme for advancement of small scale industries in the state
of Chhattisgarh).



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


PELABUHAN INDONESIA: S&P Affirms BB+ CCR, Revises Outlook to Dev.
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Indonesia-based port
operator PT Pelabuhan Indonesia III (Persero) to developing from
positive.  At the same time, S&P affirmed its 'BB+' long-term
corporate credit rating and its 'axBBB+' long-term ASEAN regional
scale rating on the company.  S&P also affirmed the 'BB+' issue
rating on Pelindo III's US$500 million senior unsecured notes.

"We revised the outlook to developing because of the uncertain
direction for the rating. An upgrade of Indonesia [BB+/Positive/B;
axBBB+/axA-2] would likely lead us to raise the rating on Pelindo
III," said S&P Global Ratings credit analyst Xavier Jean.  "But
prospects for a weaker balance sheet and higher leverage at the
company over the next 12-18 months could translate into a lower
rating level if the sovereign credit rating on Indonesia stays at
'BB+' over the period."

Pelindo III's net debt in 2016 increased further to about
Indonesian rupiah (IDR) 8.1 trillion (2015: IDR5.9 trillion),
which was broadly in line with S&P's forecasts.  Nevertheless, the
company's EBITDA, at about IDR2.75 trillion, was almost 10% lower
than S&P earlier anticipated.  The shortfall was due to slower
revenue growth, paltry growth in container volumes, and a lack of
material tariff hikes.  Costs continued to rise, most notably
third-party outsourcing costs, labor, and overheads.  Cash
outflows on investments and dividends stayed elevated at about
IDR3.7 trillion for the year.

S&P estimates that Pelindo III's ratio of funds from operations
(FFO) to debt fell further to about 22.5% in 2016.  This level
compares with 27.5% in 2015 and about 45% in 2014.  The company's
ratio of debt to EBITDA nearly doubled over the period to about
3.2x in 2016, compared with about 1.7x in 2014.  S&P adds pension
liabilities and deduct 75% of the company's cash balance when
computing our debt figure.

S&P sees further potential downside risks to Pelindo III's cash
flow adequacy ratios over the next 24 months, barring a material
moderation of the company's spending ambitions, reduced dividends,
or a substantial pick-up in operating cash flows.  In line with
the government's economic policy of infrastructure development,
Pelindo III appears to be committed to maintaining sizable
spending to grow its port capacity.  Most notable spending is on
its Teluk Lamong terminal in Surabaya, residual spending on
equipment at Tanjung Perak, and investments in new ports.  In
addition, while we believe the Indonesian government may elect to
reduce dividends from Pelindo III in 2017, overall dividend
payments will likely stay well above IDR500 billion annually
because of elevated dividends to DP World, Pelindo III's partner
in the cash-producing PT Terminal Petikemas Surabaya (TPS) asset.

S&P estimates that Pelindo III could generate about IDR2 trillion
in negative discretionary cash flows in each of 2017 and 2018 if
spending and dividends total about IDR4 trillion in aggregate and
EBITDA ranges from IDR3 trillion-IDR3.5 trillion.  As a result,
the company's net reported debt is likely to continue growing,
potentially exceeding IDR12 trillion by the end of 2018.  This
could, in turn, lead to the ratio of FFO to debt falling to about
18%-19% in 2017, further weakening to 15%-17% in 2018.  Those
levels are below the 20% level for a FFO-to-debt ratio that S&P
would expect for the 'bb+' stand-alone credit profile (SACP) on
the company.  Based on the current 'BB+' sovereign credit rating
on Indonesia, S&P would likely lower its corporate credit rating
on Pelindo III if S&P lowers the SACP on the company to 'bb'.

S&P expects operating conditions for Pelindo III to remain subdued
over 2017 and 2018.  Global trade growth remains slow and
Indonesia's own domestic GDP growth has not translated into a
pick-up in domestic trade.  S&P do not believe Pelindo III will
elect to implement sizable tariff hikes over the next 12 months at
least, given the current slow volume growth and need to attract
volumes and traffic to its expanded port capacity.

S&P estimates that the company's annual EBITDA would need to
exceed IDR4 trillion in 2017 and IDR4.5 trillion in 2018 and
EBITDA margins improve to 42%-44% for the company's cash flow
adequacy ratios to stabilize.  But these levels could be a
stretch, given the subdued operating environment amid persisting
cost inflation.

"We affirmed the ratings because we recognize that the erosion in
Pelindo III's credit ratios could be more gradual than we project
currently if the company scales back some spending or if its
revenue growth is more robust than we anticipate," said Mr. Jean.

S&P notes that the company has underspent its own budget by about
20% historically and has some additional flexibility to slow
spending on less profitable or longer-dated port projects.  S&P
also understands that the company may dispose of some non-core
assets over the next six to nine months to help fund its
investment program, reducing recourse to new debt.

The 'BB+' rating also reflects the company's sustainable
competitive advantage as the natural port monopoly in the fairly
large service area of East Java.  It also reflects a fair
operating efficiency and margins, and, to some extent, moderately
reduced event risk given port expansion has been so far broadly on
time and on budget.

S&P also regards Pelindo III's role and link to the government as
largely intact despite somewhat softer conditions.  The company
manages ports that S&P views as strategic for the economy.  S&P
also considers Pelindo III's operations to be well-aligned with
the government's major economic policy of infrastructure
improvement.  In S&P's view, the Indonesian government, as the
sole shareholder, exerts substantial control on the company's
strategy.  S&P believes the government is committed to retaining
its controlling stake over the next three years at least, directly
or indirectly.

The developing outlook on Pelindo III reflects the possibility of
an upside rating movement if the sovereign of Indonesia is raised.
It also reflects downside rating movement if the company fails to
moderate its capital spending and control leverage such that its
FFO-to-debt ratio exceeds 20% sustainably, in the absence of a
sovereign rating upgrade.

A lower SACP on Pelindo III would lead S&P to lower the corporate
credit rating on the company, if the sovereign credit rating on
Indonesia remains 'BB+'.  We could lower the SACP on Pelindo III
if: (1) the company's FFO-to-debt ratio falls below 20%
sustainably.  This could happen if the company's spending exceeds
IDR3.5 trillion and its EBITDA margins fail to recover towards 45%
within the next 12 months.

S&P may raise the ratings on Pelindo III if S&P raises the rating
on Indonesia to 'BBB-' while the SACP on Pelindo III remains
'bb+'.  Given the quality of the company's assets and earnings
profile, S&P would expect a ratio of FFO-to-debt of about 25% for
a 'bb+' SACP.  A sovereign upgrade to 'BBB-' amid persistent
pressure on Pelindo III's SACP could lead to S&P to upgrade the
company to 'BBB-' but with a negative outlook.


SRI REJEKI: Fitch Assigns BB- Rating to USD150MM Sr. Unsec. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based integrated fabric and
garment manufacturer PT Sri Rejeki Isman Tbk's (Sritex, BB-
/Stable) USD150m senior unsecured notes due in 2024 a final rating
of 'BB-'. The notes are issued by Sritex's wholly owned subsidiary
Golden Legacy Pte Ltd, and guaranteed by Sritex and its major
subsidiary PT Sinar Pantja Djaja.

The assignment of the final rating follows the receipt of
documents conforming to information already received and the final
rating is in line with the expected rating assigned on 20 March
2017. The notes have a coupon of 6.875% and are rated at the same
level as Sritex's senior unsecured rating as they represent the
company's unconditional, unsecured and unsubordinated obligations.
The note guarantors together generate or control 100% of Sritex
group's operating cash flows.

The company expects to use up to USD90 million of the net proceeds
of the US dollar bond to buy back its 2019 senior unsecured bond,
and apply any balance to meet near-term maturities and retire bank
borrowings. The issuance will lengthen the company's debt maturity
profile and provide Sritex with significant cash-flow flexibility
to execute its medium-term plans. Sritex's earliest significant
debt maturity is now its USD350m 8.25% senior unsecured bond due
in 2021.

KEY RATING DRIVERS

Improving Business Risk, High Leverage: Sritex's 'BB-/Stable' IDR
reflects the company's improving business risk profile. Sritex's
major capacity expansion programme is drawing to a close, and
Fitch expects its EBITDA to increase to around USD150m in 2017 and
USD170 million in 2018, from USD118m in 2015 before the expansion.
However leverage (measured as net adjusted debt /operating
EBITDAR) stood at 3.7x at end-2016 and is high for its rating.
Leverage rose because the company's working capital cycle
lengthened amid increased sales of finished fabric and garments.
Fitch expects leverage to fall to around 3.0x by end-2017,
supported by higher volumes of export sales, which have a shorter
cash cycle. However Fitch may consider negative rating action if
Sritex is unable to reduce its leverage to around 3.0x by this
deadline.

High Working Capital Risks: Sritex's ability to manage its working
capital over the next two years, as it markets its new production
capacity, is a key credit risk. Its net cash cycle increased to
185 days in 2016, from 150 days in 2015, and Fitch expects a
further increase to around 200 days in 2017. The rising mix of
finished fabrics and garments in Sritex's sales has lengthened the
working capital cycle; however, this is counterbalanced by the
company's ability to prioritise export sales over domestic sales.
Sritex expects to improve its credit terms with suppliers without
negatively affecting profitability, although the efficacy of this
strategy remains to be seen.

Vertical Integration, Growing Exports: Fitch expects around 55%-
60% of Sritex's revenue to stem from the export of finished fabric
and garments over the next two years, up from around 50% in 2016.
Sritex sources yarn and raw fabric from its own mills and produces
speciality garments, such as military uniforms, which have higher
profit margins. The company is a nominated supplier to several of
its main buyers, which is a key credit strength, and is supported
by its record of delivering to customers' required quality and
cost and on time.

Sufficient Production Capacity: Sritex is Indonesia's largest
vertically integrated fabric and garment manufacturer. The company
has an annual production capacity of 654,000 bales of yarn, 180
million metres of greige cloth, 240 million yards of finished
fabric, and 30 million pieces of garments. The company may expand
its spinning capacity further in 2018 or 2019, but this is subject
to the level of external demand.

Currency Risk Mostly Hedged: Over half of Sritex's 2016 revenue
stemmed from exports, up from 42% in 2014. A bulk of its domestic
sales is also exported indirectly and is therefore linked to the
US dollar exchange rate. Consequently Sritex has a significant
natural hedge against foreign-currency costs, which was evident in
2015 and 2016 when its EBITDA margin remained largely intact in
the face of severe currency volatility.

DERIVATION SUMMARY

Sritex's rating sits comfortably in between its main peers, 361
Degrees International Limited (BB/Stable) and PT Pan Brothers Tbk
(B/Positive). 361 Degrees is an established Chinese sportswear
brand-owner and producer across four brands and four product
categories, with a 4% market share in China. It has similar
operating scale to Sritex and slightly thinner EBITDA margins.
However it has a significantly stronger financial profile, with
cash reserves exceeding debt, which justifies its higher rating.

Pan Brothers is a small Indonesian garment manufacturer with high
leverage due to the aggressive expansion of its production
capacity over the last two years. Sritex has a stronger business
profile that reflects its larger operating scale and integrated
nature of operations, with a solid position in textile
manufacturing that limits its operating leverage when compared
with Pan Brothers. Sritex's financial profile is also stronger,
resulting in a Long-Term IDR that is two notches higher than that
of Pan Brothers.

KEY ASSUMPTIONS

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

- Revenue growth of 9% in 2017 and 15% in 2018 (2016: 8%), as
   Sritex's capacity expansion comes to a close and sales gain
   momentum.

- EBITDAR margins to remain between 20% - 21% (2016:19%) in the
   next two years.

- Net cash collection cycle to increase to 200 days in 2017 and
   215 days in 2018

- Capex to remain minimal at maintenance levels of around USD15
   million per annum.

- A low dividend payout in line with the company's record.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

Fitch does not expect positive rating action for the next two
years, as Sritex's leverage, measured by net adjusted
debt/EBITDAR, is likely to remain high for its ratings as it ramps
up sales to fill its new production capacity.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- Inability to lower leverage to around 3.0x by end-2017 (2016:
   3.7x; 2015: 3.2x).
- A sustained weakening in EBITDAR margins

LIQUIDITY

Satisfactory Liquidity: Sritex had readily available cash of USD88
million at end-2016, including cash of around USD28 million, most
of which is earmarked as collateral against specific bank
borrowings. This compares well with the USD30 million medium-term
note maturing in 2017 and Fitch expectations that the company will
generate neutral free cash flow in 2017. Sritex also had more than
USD100 million in bank loans outstanding for funding working
capital requirements, which Fitch expects will be rolled over in
the normal course of business, and a further USD215 million of
approved but unused bank facilities at end-January 2017, which it
could use to fund working capital if required.



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


TOKYO ELECTRIC: To Delay Seeking End to State Control by 2 Years
----------------------------------------------------------------
Japan Today reports that Tokyo Electric Power Company Holdings Inc
(TEPCO) will delay a decision on whether to seek an end to its
state control by about two years to fiscal 2019 amid ballooning
costs stemming from the 2011 Fukushima nuclear disaster, an
outline of its new business plan showed March 22.

According to Japan Today, the move is another sign the utility is
struggling to revive its business even after receiving a capital
injection of JPY1 trillion ($9 billion) from the government in
2012 to bolster its financial standing. But disaster cleanup costs
have continued to rise, with the latest estimate reaching JPY22
trillion, the report says.

Under its latest business turnaround plan, which will be the third
major revision since the first one was formulated in 2011, TEPCO
aims to realign or integrate its nuclear and power transmission
and distribution businesses with other utilities to improve its
profitability, Japan Today relates. But it is uncertain whether
business will get back on track as planned, with other utilities
cautious about such tie-ups.

Japan Today relates that the company said it will establish a
consortium with other utilities to quickly facilitate its
reorganization and integration plan.

TEPCO and a state-linked entity offering financial support over
massive compensation payments are expected to work out the details
of the business turnaround plan and submit it to the government in
April for approval, Japan Today notes.

The report says the government had initially planned to release
TEPCO from effective state control in April 2017 or later by
reducing the ratio of voting shares currently owned by the entity
to less than 50% from the current more than 50%.

But in the outline of the latest plan, TEPCO said the decision on
the issue will be delayed from the end of fiscal 2016, which is
this month, to fiscal 2019.

Under the plan, TEPCO is aiming to boost management efficiency and
increase productivity, Japan Today states.

Japan Today adds that the revised plan stresses the importance of
reaching a basic agreement with Chubu Electric Power Co to fully
integrate their non-nuclear thermal power generation operations by
this spring.

                       About Tokyo Electric

Tokyo Electric Power Company is the largest electric power
company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

Bloomberg News said the utility is battling radiation leaks at
the Fukushima Dai-Ichi power plant north of Tokyo after a
March 11, 2011, earthquake and tsunami knocked out its cooling
systems, causing the biggest atomic accident in 25 years.  More
than 50,000 households were forced to evacuate and Bank of America
Corp.'s Merrill Lynch estimates TEPCO may face compensation claims
of as much as JPY11 trillion (US$135 billion).

As reported in the Troubled Company Reporter-Asia Pacific on
May 11, 2012, Bloomberg News said Japan's government took control
of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as
part of the nation's largest bailout since the rescue of the
banking industry in the 1990s.

Bloomberg related that the government will obtain more than 50%
of the voting rights in the utility under a 10-year plan approved
on May 8 by Trade and Industry Minister Yukio Edano. The
government stake may rise to two-thirds if TEPCO fails to meet
goals that include cost cuts and compensation payments, said
Bloomberg.

Bloomberg said nationalization of TEPCO paves the way for the
government to restructure the electricity industry monopolized by
regional utilities and possibly break up power generation and
transmission networks to allow more competition.


TOSHIBA CORP: Finalizing Westinghouse's Chapter 11 Plan
-------------------------------------------------------
Kyodo News reports that Toshiba Corp. is finalizing a plan to let
its troubled U.S. nuclear unit Westinghouse Electric Co. file for
Chapter 11 bankruptcy protection by the end of the month, sources
close to the matter said on March 24.

The embattled Japanese conglomerate is looking to use the
bankruptcy filing to finalize losses related to the unit in the
fiscal year ending March 31 because its major creditors are urging
the company to do so, Kyodo says.

Still, the filing could be delayed till April, the sources said,
Kyodo relates. Some executives are concerned the decision could
affect whether it wins approval at an extraordinary shareholders
meeting on March 30 to spin off its prized chip business as part
of restructuring steps, according to Kyodo.

According to Kyodo, the U.S. government has also reportedly
questioned the bankruptcy plan over concerns about job losses.
But even if delayed, Toshiba is likely to file for Chapter 11 by
April 11, the deadline for submitting its April-December earnings
report, which has been put off twice on the grounds that it needs
more time to look into an accounting problem at Westinghouse.

Kyodo notes that Toshiba President Satoshi Tsunakawa said at a
news conference earlier in the month that the company is
considering bankruptcy protection for Westinghouse as an option.

                    About Westinghouse Electric

Westinghouse Electric Company LLC --
http://www.westinghousenuclear.com/-- is a U.S. based nuclear
power company founded in 1999 that provides design work and
start-up help for new nuclear power plants and makes many of the
components.  Westinghouse manufactures and supplies the
commercial fuel products needed to run the plants, and it offers
training, engineering, maintenance, and quality management
services.  Almost 50% of nuclear power plants around the world
and about 60% of U.S. plants are based on Westinghouse's
technology.  Westinghouse's world headquarters are located in the
Pittsburgh suburb of Cranberry Township, Pennsylvania.
Westinghouse has 12,000 employees worldwide.

On Oct. 16, 2006, Westinghouse Electric was sold for $5.4 billion
to a group comprising of Toshiba (77% share), partners The Shaw
Group (20% share), and Ishikawajima-Harima Heavy Industries Co.
Ltd. (3% share).  After purchasing part of Shaw's stake in 2013,
Japan-based conglomerate Toshiba now owns 87% of Westinghouse.

                           *     *     *

In December 2016, Toshiba said it is writing down its investment
in Westinghouse by several billions, adding that it was possible
that their investment in Westinghouse could ultimately have a
negative worth, due to cost overruns at U.S. nuclear reactors it
was building.

In February 2017, Toshiba revealed unaudited details of a JPY390
billion (US$3.4 billion) loss, mainly in its U.S. nuclear
business which was written down by JPY712 billion (US$6.3
billion).

On Feb. 14, 2017, Toshiba delayed filing financial results, and
Toshiba chairman Shigenori Shiga, formerly chairman of
Westinghouse, resigned.

In March 2017, Reuters reported that Westinghouse has hired
bankruptcy lawyers from Weil Gotshal & Manges as an "exploratory
step."

                           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 March 21, 2017, that S&P Global Ratings
said it has lowered its long-term corporate credit rating on
Japan-based capital goods and diversified electronics company
Toshiba Corp. two notches to 'CCC-' from 'CCC+' and lowered the
senior unsecured debt rating three notches to 'CCC-' from 'B-'.
Both ratings remain on CreditWatch with negative implications.
Also, S&P is keeping its 'C' short-term corporate credit and
commercial paper program ratings on the company on CreditWatch
negative.  The long- and short-term ratings on Toshiba have
remained on CreditWatch with negative implications since December
2016, when S&P also lowered the long-term ratings because of the
likelihood that the company might recognize massive losses in its
U.S. nuclear power business; S&P kept them on CreditWatch
negative when it lowered the long- and short-term ratings in
January 2017.



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


DAEWOO SHIPBUILDING: Deloitte Anjin Gets 1-Year Suspension
----------------------------------------------------------
Yonhap News Agency reports that South Korea's financial regulator
on March 24 ordered accounting firm Deloitte Anjin LLC to suspend
conducting new audits for one year as punishment for
"systematically ordering and turning a blind eye" to accounting
fraud by the troubled Daewoo Shipbuilding & Marine Engineering Co.

Yonhap says the punishment was announced after a meeting of the
Securities & Futures Commission, a regulatory body under the
Financial Services Commission (FSC), earlier in the day.

Deloitte Anjin was also ordered to pay KRW1.6 billion (US$1.43
million) for falsifying a stock-related document and will be
barred from conducting an audit on Daewoo Shipbuilding for five
years, according to the report.

Starting in late 2015, the financial regulator had conducted a
near one-year investigation into Deloitte Anjin over its failure
to uncover measures taken by Daewoo Shipbuilding to cook its books
so as to make its snowballing losses in 2013 and 2014 look
smaller, Yonhap recalls.

Yonhap notes that the FSC will hold a meeting on April 5 to
approve the punishment against Deloitte Anjin. If approved,
Deloitte Anjin will face restrictions till April 4 of next year.

An official at the commission criticized the senior executives at
Deloitte Anjin for "being sufficiently aware of an accounting
fraud" at Daewoo Shipbuilding, but ignoring the illegal
accounting, Yonhap relays.

According to the report, Deloitte Anjin expressed regret over the
punishment and defended its voluntary correction of Daewoo
Shipbuilding's balance sheet.

"We believe that we did the right thing in an extremely difficult
situation," Yonhap quotes Deloitte Anjin as saying.

Last December, state prosecutors indicted Deloitte Anjin and some
10 employees on charges of aiding and abetting Daewoo
Shipbuilding's fraudulent accounting practices worth KRW5.7
trillion, Yonhap recalls.

Yonhap relates that the punishment came a day after state-run
creditors of Daewoo Shipbuilding announced a fresh rescue package
worth KRW6.7 trillion to the ailing shipbuilder.

The conditional rescue package will be offered only if all
stakeholders agree to a painful debt-for-equity swap plan, the
report states.

Yonhap says the huge rescue measures, proposed by the state-run
Korea Development Bank and Export-Import Bank of Korea, are the
second round of bailouts for the shipbuilder that has been
suffering severe liquidity problems over heavy losses from
offshore projects.

Under the rescue package, Daewoo Shipbuilding will receive new
loans worth KRW2.9 trillion, if lenders and bondholders agree to
swap KRW2.9 trillion of debt for new shares in the shipbuilder,
adds Yonhap.

Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures.  Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.

The shipyard, along with two other major South Korean
shipbuilders, are currently undergoing self-created debt-
restructuring plans in the face of a decrease in new orders
caused by the protracted global economic slump, according to
Yonhap News.


DAEWOO SHIPBUILDING: Expects Business Turnaround in 2017
--------------------------------------------------------
Yonhap News Agency reports that Daewoo Shipbuilding & Marine
Engineering Co., South Korea's embattled shipbuilder, said
March 24 that its portfolio will be mostly made up of LNG carriers
and other specialty vessels, with the company expecting a business
turnaround this year.

Its rosy outlook came a day after the country's state-run
creditors of the shipyard, the world's largest by order backlog,
announced a fresh rescue package worth KRW6.7 trillion (US$5.98
billion), but only if all stakeholders agree to a painful debt-
for-equity swap plan, Yonhap discloses.

Yonhap says the huge rescue measures, proposed by the state-run
Korea Development Bank and Export-Import Bank of Korea, are the
second round of bailout for the shipbuilder that has been
suffering severe liquidity problems over heavy losses from
offshore projects.

"Starting this year, a huge chunk of our portfolio will consists
of LNG ships and other vessels that we specialize in. Most of
loss-making offshore facilities projects have been completed," the
company said in a statement, Yonhap relays.

Daewoo Shipbuilding said as of end-February, its order backlog
came to 108 ships, 50 out of which are LNG-FSRU ships, Yonhap
discloses.

"We are going to reduce our exposure to risky offshore projects,
while focusing on commercial ships and specialty vessels," it
said.

According to Yonhap, Jung Sung-leep, president of Daewoo
Shipbuilding, said the shipyard will be able to turn to the black
this year. "I will resign if we fail to make a turnaround," he
said.

Yonhap relates that the chief executive officer said Daewoo
Shipbuilding is left with nothing to sell in terms of assets, and
the company is currently in talks with the labor union to cut
workers' wages.

Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures.  Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.

The shipyard, along with two other major South Korean
shipbuilders, are currently undergoing self-created debt-
restructuring plans in the face of a decrease in new orders
caused by the protracted global economic slump, according to
Yonhap News.


SEAGATE KOREA: Plans to Lay Off 6,500 Workers Amidst Liquidation
----------------------------------------------------------------
Cho Jin-young at Business Korea reports that Seagate, a global
hard disk drive (HDD) producer, closed down its design center in
South Korea.  As the design center was the company's research and
development (R&D) base, Seagate is expected to conduct a large-
scale business change in the future.

The company announced in July last year that it plans to lay off
6,500 workers in Asia, which accounts for 14 percent of the total,
according to Business Korea.

According to semiconductor industry sources on March 15, Seagate
Korea recently said to 300 executives and employees, "We have
decided to wind up the company and close down the business at the
general meeting of stockholders on March 10, the report notes.
Accordingly, our business and employment relationship will end and
we will going through the process of liquidation."

Market watchers said that the company needs US$50 million
(KRW57.35 billion) for liquidation, including severance pay, the
report relays.

The report notes that Seagate has been suffering from financial
difficulties due to the continuous drop in its sales caused by
sluggish HDD business in recent years.  Sales of HDD in the first
half of last year stood at 36.8 million units, down 8.4 million
units from a year ago, the report relays.

The report discloses its competitor Western Digital is quickly
shifting to solid state drives (SSDs), which are emerged as the
megatrend in the storage device industry, after acquiring SanDisk.
However, Seagate still sticks to HDDs, running counter to the
current trend.

Some also express concerns that Seagate might scrap its plan to
establish a joint venture with SK Hynix when its business
conditions deteriorate rapidly, the report notes.



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


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

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

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

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

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



                 *** End of Transmission ***