TCRAP_Public/170403.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, April 3, 2017, Vol. 20, No. 66

                            Headlines


A U S T R A L I A

CONTRACTING SERVICES: First Creditors' Meeting Set for April 12
GET QUALIFIED: In Liquidation With AUD1.5 Million Debt
GLAZE PTY: First Creditors' Meeting Set for April 7
HEALTHY SNACKS: First Creditors' Meeting Set for April 10
IRECRUIT AUSTRALIA: First Creditors' Meeting Set for April 7

KENTHURST CONSTRUCTION: First Creditors' Meeting Set for April 6
MCVILLY TIMBER: In Administration, Owes AUD1 Million
PEPPER RESIDENTIAL: Moody's Assigns B1(sf) Rating to Class F Debt
PLASTIC RECOVERY: First Creditors' Meeting Set for April 10
PRIMEPOWER ENGINEERING: First Creditors' Meeting Set for April 7

TORENARO PTY: Ferrier Hodgson Appointed as Receivers
WELLDOG PTY: Goes Into Voluntary Administration


C H I N A

CHINA AOYUAN: Moody's Raises CFR to B1; Outlook Stable
FUFENG GROUP: Fitch Raises Long-Term Issuer Default Rating to BB+
SUNAC CHINA: Weakened Credit Metrics No Impact on Moody's B2 CFR


H O N G  K O N G

NOUVELLE FOODS: Case Summary & 30 Largest Unsecured Creditors
PHYSICAL PROPERTY: Incurs HK$730,000 Net Loss in 2016


I N D I A

ASPEN SHAVING: CRISIL Assigns B+ Rating to INR5MM LT Loan
BEETA POLY: CARE Reaffirms B+ Rating on INR12.36cr LT Loan
CONSITE ENGINEERING: CARE Cuts Rating on INR5.50cr LT Loan to 'B'
DCR INFRA: ICRA Assigns B+ Rating to INR6.50cr Loan
DIVYARATNA AGROTECH: CARE Assigns 'D' Rating to INR29.5cr Loan

GENESIS RESORTS: CARE Assigns 'D' Rating to INR118.91cr Loan
HARDAYAL MILK: CARE Lowers Rating INR50.72cr LT Loan to 'D'
HUBTOWN BUS: CARE Assigns 'D' Rating to INR41.67cr Loan
HUBTOWN BUS TERMINAL: CARE Assigns D Rating to INR100cr Loan
INDUSTRIAL PROGRESSIVE: CARE Assigns B- Rating to INR55cr Loan

JSW STEEL: Moody's Assigns Ba3 Rating to New Unsecured Notes
K.G.P. GOLD: CARE Reaffirms 'B' Rating INR9cr LT Bank Loan
KRISHNA VASUDEVA: CRISIL Reaffirms 'B' Rating on INR8.5MM Loan
LN CONSTRUCTIONS: CARE Assigns B+ Rating to INR4.75cr LT Loan
M. A. AMBHORE: CRISIL Cuts Rating on INR3.5MM Cash Loan to 'B'

MA MAHAMAYA: CRISIL Assigns 'B' Rating to INR6MM Cash Loan
MAA GANGA: CARE Assigns B+ Rating to INR4.80cr LT Loan
MANTRA EARTH: CARE Assign B+ Rating to INR15cr LT Bank Loan
MB ISPAT: CARE Assigns B+ Rating to INR11.25cr LT Loan
OM PRAKASH: CRISIL Reaffirms 'B' Rating on INR2MM Cash Loan

PANASIAN CONSTRUCTION: CRISIL Reaffirms B Rating on INR16MM Loan
PERIWAL POLYMERS: CARE Reaffirms B+ Rating on INR4cr LT Loan
POOJA SREE: ICRA Assigns B+ Rating to INR8cr LT Loan
REMI EDELSTAHL: CRISIL Lowers Rating on INR30MM Cash Loan to B+
REXON STRIPS: CARE Revises Rating on INR22cr LT Loan to B

SANGAM PRESS: CARE Assigns B+ Rating to INR16.25cr LT Loan
SANGHAVI EXPORTS: CARE Assigns 'D' Rating to INR544.50cr Loan
SATABDI TEA: CRISIL Assigns 'B' Rating to INR7.75MM LT Loan
SELVA STONE: CRISIL Raises Rating on INR2.20MM Term Loan to B+
SHIVMANI EXPORTS: CARE Reaffirms 'BB' Rating on INR0.10cr Loan

SHREE SECO: CARE Reaffirms 'C' Rating on INR1.59cr LT Loan
SHYAM POLYSPIN: CARE Reaffirms B+ Rating on INR18cr LT Loan
SIDDHIVINAYAK AESTHETICS: CRISIL Ups Rating on INR15MM Loan to B-
SILK COTTON: CARE Lowers Rating on INR7.52cr LT Loan to 'D'
SITA RAM: CARE Reaffirms 'B+' Rating to INR6.56cr LT Loan

SOUTHERN AGENCIES: ICRA Reaffirms 'B' Rating on INR10cr Loan
STELLA UDYOG: CARE Assigns B+/A4 Rating to INR7cr Loan
SUNBOND CERAMIC: CRISIL Reaffirms B+ Rating on INR3.5MM Credit
SUPERTEX INDUSTRIES: CRISIL Cuts Rating on INR7.5MM Loan to B+
SURABHI AGRICO: CARE Assigns 'B' Rating to INR10cr LT Loan

SVR ELECTRICALS: ICRA Reaffirms 'B' Rating on INR7.25cr Loan
TECHNOBIT INDUSTRIES: CARE Assigns 'B' Rating to INR7.32cr Loan
UP TELELINKS: ICRA Hikes Rating on INR7.67cr LT Loan to BB-
VISHAL CONDUIT: CARE Revises Rating on INR9cr LT Loan to B-/A4
YARNCOMS INDIA: CARE Assigns 'B' Rating to INR5.0cr LT Loan


I N D O N E S I A

CIMB NIAGA: Fitch Affirms 'bb' Rating Viability


J A P A N

TELLMECLUB: Hid Operating Losses Since September 2014
TOSHIBA CORP: Investors Approve Sale of Memory Chip Unit
TOSHIBA CORP: Execs Under Fire as Loss Forecast Balloons
TOSHIBA CORP: Owed $1.29B by Nuclear Unit, Sees JPY1.1-Tril. Loss


N E W  Z E A L A N D

HORVATH HOMES: PwC Rejects "Potential Fraud Issues" Claims
PUMPKIN PATCH: Staff in Stalemate with ANZ Over Redundancy Pay


S O U T H  K O R E A

DAEWOO SHIPBUILDING: KDB Informs Creditors Due Diligence Results
DAEWOO SHIPBUILDING: CEO Forgoes Salary, Urges Staff for Wage Cut


                            - - - - -


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


CONTRACTING SERVICES: First Creditors' Meeting Set for April 12
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Contracting
Services Pty. Ltd. will be held at Suite 2, Level 5, 123 Pitt
Street, on April 12, 2017, at 11:00 a.m.

Steve Naidenov and David Iannuzzi of Veritas Advisory were
appointed as administrators of Contracting Services on March 31,
2017.


GET QUALIFIED: In Liquidation With AUD1.5 Million Debt
------------------------------------------------------
Lucy Cormack at SMH News reports that the CEO of a failed
education company said its demise is "the doing of two government
agencies", who ultimately are responsible for the 2,000 students
left without the certificates they paid for, or a refund.

Get Qualified Australia (GQA) was an education consultant that
assisted job seekers in obtaining qualifications in industries,
such as beauty, construction and business.

However, on March 17, 2017, the company was declared "unable to
pay its debts" and would be voluntarily wound-up, with Blair
Pleash -- bpleash@hallchadwick.com.au -- of insolvency firm Hall
Chadwick appointed as the liquidator, according to SMH News.

A report reveals more than AUD1.5 million remains owing to
unsecured creditors, which include Facebook and Google Adwords,
owed AUD364,779 and AUD450,000 respectively, SMH News notes.

The report says it remains unclear how much is owed to the 2,000
affected consumers, however Fairfax Media is aware of a number of
consumers who have paid up to AUD5500.

The decision to wind-up came fewer than 10 days before GQA faces
the Australian Competition and Consumer Commission in the Federal
Court, over allegations of misleading and unconscionable conduct,
SMH News relays.

SMH News says the court action, commencing March 28, follows a
freezing order successfully brought against the company last year
in response to a large number of consumer complaints.


GLAZE PTY: First Creditors' Meeting Set for April 7
---------------------------------------------------
A first meeting of the creditors in the proceedings of Glaze Pty
Ltd, formerly trading as Stay Home Leave Violence Behind, will be
held at Exchange House, Suite 2, Level 8, 10 Bridge Street, in
Sydney, on April 7, 2017, at 10:00 a.m.

Domenico Alessandro Calabretta and Grahame Robert Ward of Mackay
Goodwin were appointed as administrators of Glaze Pty on
March 28, 2017.


HEALTHY SNACKS: First Creditors' Meeting Set for April 10
---------------------------------------------------------
A first meeting of the creditors in the proceedings of
Healthy Snacks Australia Pty. Ltd. and Fontelle Australia Pty.
Ltd. will be held at the offices of PKF Melbourne, Level 13, 440
Collins Street, in Melbourne, on April 10, 2017.

Glenn Jeffrey Franklin and Jason Glenn Stone of PKF Melbourne were
appointed as administrators of Healthy Snacks on March 29, 2017.


IRECRUIT AUSTRALIA: First Creditors' Meeting Set for April 7
------------------------------------------------------------
A first meeting of the creditors in the proceedings of iRecruit
Australia Pty Ltd will be held at the offices of SV Partners
138 Mary Street, in Brisbane, Queensland, on April 7, 2017, at
2:30 p.m.

Terry John Rose and Anne Meagher of SV Partners were appointed as
administrators of iRecruit Australia on March 28, 2017.


KENTHURST CONSTRUCTION: First Creditors' Meeting Set for April 6
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Kenthurst Construction Pty Ltd will be held at Hyatt Regency, King
Room 1, 161 Sussex Street, in Sydney, on April 6, 2017, at 2:00
p.m.

Ozem Kassem, Mark Hutchins, Alan Walker of Cor Cordis Chartered
Accountants were appointed as administrators of Kenthurst
Construction on March 27, 2017.


MCVILLY TIMBER: In Administration, Owes AUD1 Million
-----------------------------------------------------
Madeline McNiel at Standard reports that Terang-based McVilly
Timber has been placed into liquidation following a "lack of
satisfactory offers" for the sale of the business.

McVilly Timber, operating under the company name of Mount Edisar
Pty Ltd, was placed in administration last month with debts
of AUD1 million, according to Standard.

Administrators PPB Advisory revealed in a statement on March 22
that creditors had voted for assets to be sold after an
unsuccessful sale by expression of interest.

Mount Edisar has a timber treatment plant at Terang, branches at
Timboon, Mumbannar and Bungaree, and an equestrian center at
Winchelsea, the report relays.

The report discloses liquidator and PPB Advisory partner Craig
Crosbie -- ccrosbie@ppbadvisory.com -- said liquidators would
continue to negotiate with interested parties regarding the full
or part sale of McVilly Timber.

"In the event that a suitable offer for McVilly Timber isn't
received, the liquidators will sell the company's assets
individually," the report quoted Mr. Crosbie as saying.

"The sale of stock, plant and equipment will be sold via auction
and the sale of freehold property including the Winchelsea
equestrian centre will be conducted by appointed real estate
agents.

"The proceeds from these asset sales will be used to repay
outstanding creditors including the Australian Tax Office and
entitlements owed to former employees of McVilly Timber."

The appointment of administrators on February 13 was a blow to the
42-year-old business, the report relays.


PEPPER RESIDENTIAL: Moody's Assigns B1(sf) Rating to Class F Debt
-----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to notes issued by Permanent Custodians Limited (Trustee)
as trustee of Pepper Residential Securities Trust No. 18.

Issuer: Pepper Residential Securities Trust No.18

-- USD200.00 million Class A1-ua Notes, Assigned Aaa (sf)

-- USD71.80 million Class A1-ub Notes, Assigned Aaa (sf)

-- AUD52.70 million Class A1-af Notes, Assigned Aaa (sf)

-- AUD225.50 million Class A1-a Notes, Assigned Aaa (sf)

-- AUD109.80 million Class A2 Notes, Assigned Aaa (sf)

-- AUD87.3 million Class B Notes, Assigned Aa1 (sf)

-- AUD19.8 million Class C Notes, Assigned A2 (sf)

-- AUD17.1 million Class D Notes, Assigned Baa2 (sf)

-- AUD10.8 million Class E Notes, Assigned Ba1 (sf)

-- AUD10.8 million Class F Notes, Assigned B1 (sf)

The AUD4.50 million Class G1 and AUD9.90 million Class G2 Notes
are not rated by Moody's.

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

The transaction is an Australian non-conforming RMBS secured by a
portfolio of prime, near prime and non-conforming residential
mortgage loans. A substantial portion of the portfolio consists of
loans extended to borrowers with impaired credit histories (41.3%)
or made on an alternative documentation basis (35.4%).

This transaction features five classes of A Notes (Class A1-ua,
Class A1-ub, Class A1-af, Class A1-a, and Class A2), Class B
Notes, Class C Notes, Class D Notes, Class E Notes, Class F Notes
and Class G Notes (split into Class G1 and Class G2). The Class
A1-ua Notes and Class A1-ub Notes are USD-denominated, while Class
A1-af Notes are fixed rate notes denominated in AUD.

This transaction has three classes of scheduled amortisation
notes: Class A1-ua, Class A1-ub (together Class A1-u Notes) and
Class A1-af. Deviation from the amortisation schedule will not
cause an event of default. Following the Call Option Date, any
Class A1-u Notes that remain outstanding will convert to pass-
through securities. In order to ensure timely repayment of the A1-
u and A1-af Notes, a Scheduled Amortisation Facility will be
provided by National Australia Bank Limited (NAB, Aa1(cr)/
P-1(cr)). Drawn amounts under the Scheduled Amortisation Facility
will be repaid from monthly Class A1-u and Class A1-af Note
principal allocations and may be redrawn to meet the Class A1-u
and Class A1-af Amortisation Amount.

RATINGS RATIONALE

The definitive ratings take account of, among other factors:

- Moody's MILAN CE assumption of 16.30%, the loss Moody's
   expects the portfolio to suffer in a scenario commensurate
   with the maximum achievable rating in Australia.

- Moody's portfolio expected loss assumption of 1.70%.

- The 30.00% credit enhancement (CE) to the Class A1-ua Notes,
   Class A1-ub Notes, Class A1-af Notes and Class A1-a Notes and
   the 17.80% CE to the Class A2 Notes. The subordination
   strengthens ratings stability, should the pool experience
   losses above expectations.

- A liquidity facility equal to the lesser of: (1) 2.5% of the
   aggregate invested amount of the notes (net of the amounts
   drawn from the Scheduled Amortisation Facility or deposited in
   the Scheduled Amortisation Fund), subject to a floor of
   AUD2,250,000; (2) The amount agreed from time to time in
   writing by the liquidity facility provider and the Trustee
   provided that the Trust Manager has notified the rating agency
   and determined that the change will not result in any
   downgrade, qualification or withdrawal of the rating of the
   notes; and (3) The aggregate outstanding principal amount of
   all mortgage loans not in arrears by more than 90 days, as at
   that payment date.

- The experience of Pepper Group Limited (Pepper, unrated) in
   servicing residential mortgage portfolios. This is Pepper's
   18th non-conforming securitisation, which highlights the
   lender's experience as a manager and servicer of securitised
   transactions.

- A currency swap which mitigates the cross-currency risk
   associated with the USD-denominated Class A1-ua Notes and
   Class A1-ub Notes. An interest rate swap which mitigates the
   interest rate risk associated with the fixed rate coupon paid
   by the Class A1-af Notes. According to the current form of the
   swap documentation, swap linkage has no present rating impact
   on the Class A1-u or Class A1-af Notes. This is because the
   linkage between the note ratings and the rating of the
   provider of any of the swaps is mitigated by an obligation to
   post cash collateral and novate the swap upon downgrade to
   below A3(cr).

Interest rate mismatch arises when the movements of the 30-day
BBSW are not (simultaneously) passed on to the variable rate
loans. To mitigate the basis risk, the Trust Manager will
calculate the threshold rate for the variable rate loans to ensure
that the weighted average interest on all loans is at least the
rate required to meet the Trust's obligations (up to Class F
interest in the income waterfall), plus 0.25% p.a. Additionally,
Pepper will maintain the weighted average interest on all loans
above BBSW plus 4.15%.

The key transactional and pool features are as follows:

- The notes are initially repaid on a sequential basis until
  (although pro-rata between Class A Notes), among others, the
  following stepdown conditions are met: (1) there are no charge-
  offs on any of the notes, (2) the cumulative losses are less
  than 0.50% and 0.85% before the third and fourth anniversary,
  respectively and less than 1.10% after the fourth anniversary
  since closing; (3) the Class A subordination is at least 30.0%.
  After that point, the Class A1-u, A1-af, A1-a, A2, B, C, D, E
  and F Notes receive a pro-rata share of principal payments
  (subject to additional conditions). The Class G pro-rata share
  of principal payments will be applied as an allocation to the
  turbo principal allocation. The turbo principal allocation is
  applied in reverse sequential order, from Class F Notes up the
  capital structure. The principal pay-down switches back to
  sequential pay on the call option date, once the aggregate note
  balance falls below 15% of the aggregate note balance at
  closing or the payment date falls on or after the fifth
  anniversary since closing.

- The yield enhancement reserve account is available to meet
   losses and charge-offs whilst any Class A Notes are
   outstanding. The reserve account is funded by trapping excess
   spread at, initially, an annual rate of 0.30% of the
   outstanding principal balance of the portfolio up to a maximum
   amount of AUD2,500,000.

- The portfolio is geographically well diversified due to
   Pepper's wide distribution network.

- The portfolio contains 41.3% exposure with respect to
   borrowers with prior credit impairment (default, judgement or
   bankruptcy). Moody's assesses these borrowers as having a
   significantly higher default probability.

- 35.4% of the portfolio consists of loans granted based on an
   alternative documentation (alt doc) basis. For 0.02% of the
   portfolio, Pepper only performed minimal verification. These
   loans have been classified as low doc loans. The alt doc loans
   have been subject to additional verification checks over and
   above the typical checks for a traditional low documentation
   product. These checks include a call from a Pepper credit
   assessor, a declaration of financial position and either six
   months of bank statements, six months of Business Activity
   Statements or an accountant's letter in a format specified by
   Pepper.

- 41.9% of the loans in the portfolio were extended to self-
   employed borrowers. Moody's analysis of historical delinquency
   and default data has indicated that loans granted to self-
   employed borrowers have a greater propensity to default
   compared to loans granted to employed PAYG borrowers.

- Almost the complete portfolio (91.9%) has been originated in
   the past 12 months, when the interest rates are low and the
   house prices are growing rapidly.

Methodology Underlying the Rating Action:

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

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

Factors that could lead to an upgrade of the notes include (1)
increased credit enhancement levels and (2) collateral performance
that is better than Moody's expectations because of fewer defaults
by underlying obligors or higher recoveries on defaulted loans.
The Australian job market and the housing market are primary
drivers of performance.

A factor that could lead to a downgrade of the notes is worse-
than-expected collateral performance. Reasons for performance,
which is worse than Moody's expects include poor servicing, error
on the part of transaction parties, a deterioration in credit
quality of transaction counterparties, fraud and lack of
transactional governance.

Moody's Parameter Sensitivities:

Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process - here the MILAN CE
and mean expected loss - differed. The analysis assumes that the
deal has not aged. Parameter Sensitivities only reflect the
ratings impact of each scenario from a quantitative/model-
indicated standpoint.

Based on the current structure, if the MILAN CE Assumption was
24.45%, versus the 16.30% and the Moody's mean expected loss was
2.55% as opposed to 1.70%, the model-implied ratings of the notes
would drop between one and four notches from the currently
assigned levels. Class A2 Notes will be sensitive to one notch
rating migration. Class D will be sensitive to a two notch rating
migration. Class B, Class C and Class F will be sensitive to a
three notch rating migration. Class E will be sensitive to a four
notch rating migration.

Moody's ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors. Moody's
ratings are subject to revision, suspension or withdrawal at any
time at Moody's absolute discretion. The ratings are expressions
of opinion and not recommendations to purchase, sell or hold
securities.


PLASTIC RECOVERY: First Creditors' Meeting Set for April 10
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Plastic
Recovery Services Pty Ltd will be held at 105A Bowen Street, in
Spring Hill, Queensland, on April 10, 2017, at 11:00 a.m.


David Clout and Patricia Talty of David Clout & Associates were
appointed as administrators of Plastic Recovery on March 29, 2017.


PRIMEPOWER ENGINEERING: First Creditors' Meeting Set for April 7
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Primepower Engineering Pty Ltd, trading as Primepower Engineering,
will be held at Len Buckeridge Room, Adina Apartment Hotel, 138
Barrack Street, in Perth, on April 7, 2017, at
10:30 a.m.

Giovanni Maurizio Carrello of BRI Ferrier Western Australia was
appointed as administrator of Primepower Engineering on March 28,
2017.


TORENARO PTY: Ferrier Hodgson Appointed as Receivers
----------------------------------------------------
Ryan Eagle and Morgan Kelly of Ferrier Hodgson were appointed as
receivers and managers of Torenaro Pty Ltd and Graaf Pty Ltd on
Feb. 20, 2017.

The Receivers' appointments under first ranking security interests
follows the appointment of Marcus Ayres and Brett Lord of PPB
Advisory as Receivers and Managers of the Companies on Nov. 16,
2016 under second ranking security interests held by Ares Capital
Management Pty Ltd.

Following the appointment, the Receivers secured and assessed the
Companies' assets, which consist of the following retail property
lots located at 72 Castlereagh Street (the Trust Building):

* Torenaro Pty Ltd
   Lots 134 and 135 of Strata Plan 90001

* Graaf Pty Ltd
   Lot 2 of Strata Plan 46528

The Trust Building is located on the corner of King and
Castlereagh Streets.

The Receivers are in the process of undertaking an assessment of
the Companies' financial position with a view to commencing a sale
campaign for the Properties.


WELLDOG PTY: Goes Into Voluntary Administration
-----------------------------------------------
Will Colwell, Tim Michael, Martin Jones and Wayne Rushton of
Ferrier Hodgson were appointed as Voluntary Administrators of
Welldog Pty Ltd on March 20, 2017.

Pitcher Partners have been appointed as Receivers and Managers

Welldog Pty Ltd is headquartered in Brisbane, Australia.



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C H I N A
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CHINA AOYUAN: Moody's Raises CFR to B1; Outlook Stable
------------------------------------------------------
Moody's Investors Service has upgraded China Aoyuan Property Group
Limited's corporate family rating to B1 from B2.

At the same time, Moody's has upgraded to B2 from B3 the senior
unsecured ratings assigned to China Aoyuan's USD bonds.

The ratings outlook is stable.

RATINGS RATIONALE

"The upgrade of China Aoyuan's corporate family rating to B1
reflects the company's growing scale and improved geographic
diversity," says Kaven Tsang, a Moody's Vice President and Senior
Credit Officer.

"The upgrade also reflects Moody's expectations that the company's
credit metrics will improve over the next 12 months to levels
comparable to Moody's B1-rated Chinese property peers," adds
Tsang, who is also Moody's Lead Analyst for China Aoyuan.

China Aoyuan has shown good contracted sales execution. Its
contracted sales grew to RMB25.6 billion in 2016, 69% higher than
the RMB15.2 billion in 2015. The result was also higher than the
national average of 36% in 2016, and almost four times the RMB5.3
billion achieved by the company in 2012. This level of contracted
sales in 2016 was comparable to that of its B1-rated Chinese
property peers.

Moody's expects that China Aoyuan's ratings will remain supported
by its strengthening brand in its core markets in Guangdong
Province. Specifically, Moody's expects that the company will
achieve an average growth in contracted sales of around 15% per
annum over the next 12-18 months, despite the likelihood of a more
challenging operating environment in the Chinese property market
in the second half of 2017.

Moody's notes that China Aoyuan improved its geographic diversity
to 27 cities from 11 during 2012-2016; a development that further
supports the upgrade of its corporate family rating to B1.

China Aoyuan has kept its annual land acquisitions at levels
equivalent to 30%-40% of contracted sales in the past 2-3 years.
Moody's expects that the company will maintain such a disciplined
approach over the next 12-18 months. This factor is an important
attribute to developing sound credit metrics, because containing
the level of annual land investments will slow debt growth.

Moody's expects that China Aoyuan will show credit metrics
comparable to its B1 Chinese property peers over the next 12
months. Its revenue/adjusted debt will likely improve to 70%-75%
in 2017 from 57% at end-2016, while EBIT/interest coverage will
rise to about 2.5x-3.0x in 2017 from 2.2x in 2016.

Moreover, the company's cash flow-based leverage metrics - as
measured by operating cash flow before land/adjusted debt - should
register 40% over the next 12-18 months; a result which would be
comparable to that of its B1 Chinese property peers.

China Aoyuan's B1 corporate family rating takes into account its
track record of property development in the economically strong
Guangdong Province.

The company's B1 rating also considers the strength of its
management through previous down cycles, its adequate liquidity
and access to offshore bank funding.

China Aoyuan's liquidity position is sufficient. Its cash and
deposit balances totaled RMB11 billion at end-2016, which were
enough to cover its short-term debt of around RMB4.5 billion.

The company's bond rating is notched down to B2, reflecting
structural and legal subordination. Moody's estimates that China
Aoyuan's secured and subsidiary debt/total assets was at around
17% at December 31, 2016. This ratio will likely stay above 15%
over the next 12-18 months, because the company will continue to
draw on onshore and/or secured bank loans to fund construction and
expansion.

The stable ratings outlook reflects Moody's expectation that over
the next 12 months, China Aoyuan will continue to achieve positive
growth in contracted sales, maintain prudent land acquisitions, an
adequate liquidity position, and show improvements to its credit
metrics.

Upward ratings pressure could emerge if the company:

(1) Grows to a larger scale;

(2) Demonstrates sustainable growth in contracted sales and
    revenue recognition through cycles without sacrificing
    profitability;

(3) Maintains prudent practices in its land acquisitions and
    financial management;

(4) Further improves its credit metrics, such that EBIT/interest
    registers 3x or above, and revenue/adjusted debt is at 80% or
    above, on a sustainable basis; and

(5) Maintains good liquidity, such that cash consistently covers
    short-term debt and there is sufficient room in its
    maintenance covenants for bank loans.

On the other hand, ratings downgrade pressure could emerge if: (1)
the company shows more volatility or slower growth in contracted
sales; or (2) its credit metrics weaken. In particular, Moody's
could consider downgrading the ratings if China Aoyuan's
EBIT/interest falls below 2.0x and/or revenue/adjusted debt
registers below 65%.

A weakening in the company's liquidity position, as reflected by
cash/short-term debt below 1.0x, will also pressure the ratings.

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

Listed on the Hong Kong Stock Exchange in October 2007, China
Aoyuan Property Group Limited was founded in 1998 by Mr. Guo Zi
Wen. At end-2016, the company had 74 projects in 10 provinces in
China, including Guangdong Province and Chongqing city, as well as
in Australia's largest city, Sydney. It had a total land bank of
around 14.65 million square meters in gross floor area at end-
2016.


FUFENG GROUP: Fitch Raises Long-Term Issuer Default Rating to BB+
-----------------------------------------------------------------
Fitch Ratings has upgraded Fufeng Group Limited's Long-Term
Foreign-Currency Issuer Default Rating (IDR) and senior unsecured
rating to 'BB+' from 'BB'. The Outlook on the IDR is Stable.

The upgrade reflects improved profitability and lower leverage.
Fufeng's 2016 results also support the rating action, with
improving performance in the amino acid segment that was helped by
industry consolidation, a more efficient production process for
the core monosodium glutamate (MSG) product, and increased
contribution from other amino acid products.

KEY RATING DRIVERS

Lower MSG Production Costs: Fufeng is the largest producer of MSG
globally and enjoys advantages, such as economies of scale,
integrated facilities and proximity to raw materials, which
competitors will find difficult to replicate. The company has been
improving its MSG production process to reduce its unit cost per
tonne over the next two to three years, further solidifying its
competitiveness in the market. In addition, a policy shift in corn
kernel pricing to a subsidy model has caused corn kernel prices to
decline significantly in 4Q16. This benefits Fufeng as the cost of
corn kernels account for 58% of its production cost of MSG.

Growth from Amino Acid Products: The company expects amino acid
products other than the core MSG product to drive sales growth and
gross margin improvement. Sales of non-MSG products made up 43% of
sales in the amino acid segment in 2016, up from 37% in 2015, and
non-MSG products helped the gross margin in Fufeng's amino acid
segment to expand by 6.5pp to 20.6% in 2016. The company intends
to keep investing to improve the production process for its
existing products and to launch new products each year, which
should help to diversify its revenue stream and increase gross
margin.

Xanthan Gum Not A Concern: The profitability of Fufeng's xanthan
gum segment has continued to weaken due to greater competition and
overall weakness in the oil and gas industry, a key customer base.
Gross margin for the segment has fallen to 15.9% in 2016 from a
peak of 58.3% in 2013. Management has been focusing on orders with
better profitability, but Fitch expects a muted outlook for the
segment, which is likely to account for only 3% of gross profit
(2015: 20%).

Healthy Financial Profile: Fitch expects Fufeng's FFO to rise from
higher sales and increased profitability from the amino acid
segment, as well as improving efficiency in MSG production. Fitch
estimates FCF may be negative in 2017-2018 due to investment in a
new amino acid production facility, but the new capacity is likely
to further diversify Fufeng's revenue stream away from MSG and
increase profitability from an improving product mix. Net debt has
been reduced to CNY1.7bn in 2016 from CNY2.8bn in 2015 and Fitch
expects leverage to remain healthy.

DERIVATION SUMMARY

Fufeng's scale is in line with other 'BB' category peers, but its
business profile is strong as it is the top global producer for
MSG. The business profile should improve with diversification
across amino acid products. Fufeng also has lower leverage
relative to peers and FCF is likely to stay positive with lower
capex requirements. The closest peer is China Lesso Group Holdings
Limited (BB+/Stable), which, like Fufeng, is a dominant player in
its commoditised industry. Fufeng and China Lesso both have low
leverage and sustained FCF generation. However, China Lesso has a
larger scale while Fufeng has better product diversification and
higher profitability.

KEY ASSUMPTIONS

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

- Amino acid segment: sales contribution from non-MSG products
   increasing gradually from 43% in 2016 to 47% in 2020; gross
   profit margin of 21.0% in 2016 improving to 21.8% by 2020
   from improved MSG production efficiency and product mix
   improvement from non-MSG products

- Xanthan gum segment: flat sales; gross profit margin of 15%
   in 2017-2020 (2016: 15.9%)

- Capex: CNY1.8 billion a year in 2017-2018 and CNY1 billion
   a year from 2019

- Dividend payout: 20% of net profit from 2017-2018 and 40%
   from 2019 onward

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- FFO-adjusted net leverage above 1.0x on a sustained basis
   (2015: 2.0x) after new production plant investment in
    2017-2018

- Failure to generate positive FCF after new production plant
   investment in 2017-2018

- Sustained loss in MSG market share

- Gross margin lower than 18% for a sustained period (2016:
   20.4%)

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- No positive rating action will be considered until Fufeng
   significantly increases its scale and improves its product
   diversification

LIQUIDITY

Sufficient Liquidity: Fufeng had CNY1.4 billion in readily
available cash and over CNY3 billion in unutilized banking
facilities, which can easily cover its short-term borrowings of
CNY1.2 billion. The company has a CNY1 billion corporate bond and
CNY975 million convertible bond maturing in 2018.


SUNAC CHINA: Weakened Credit Metrics No Impact on Moody's B2 CFR
----------------------------------------------------------------
Moody's Investors Service says that Sunac China Holdings Limited's
weakened credit metrics for 2016 year-over-year were largely in
line with Moody's expectations and will not immediately impact the
company's B2 corporate family rating, B3 senior unsecured rating
or the negative outlook on the ratings.

"Sunac's financial results for 2016 were weak, as highlighted by a
material increase in its debt leverage, due to rapid business
expansion and acquisitions," says Franco Leung, a Moody's Vice
President and Senior Credit Officer.

"But its high financial risk is partly mitigated by its strong
liquidity profile," adds Leung.

Moody's estimates that Sunac's debt leverage - as measured by
revenue to adjusted debt and including adjustments for its joint
ventures and associates - deteriorated materially to around 31% in
2016 from 64% in 2015, because Sunac raised a sizable amount of
debt to support its large-scale land and other acquisitions.

Its attributable land bank increased significantly to 49.7 million
square meters at end-2016 from 18.1 million square meters the year
before. And, its reported debt increased to RMB113 billion at end-
2016 from RMB42 billion at end-2015.

Moody's expects that Sunac will continue its high-growth business
strategy. As a result, Moody's forecasts that Sunac's debt
leverage will remain weak, but will improve mildly to 40%-45% over
the next 12-18 months. This improvement is driven by Moody's
expectation that revenue growth will pick up, following its robust
contracted sales growth in the past 12-18 months.

Such a high-growth business strategy poses financial risk to
Sunac, and could pressure its ratings if its high debt leverage is
sustained.

Nevertheless, the company generated robust operating cash flows,
as a result of strong sales execution. It achieved an 83% year-on-
year growth in contracted sales for the first two months of 2017,
after a robust 121% year-on-year growth to RMB151 billion for full
year 2016.

Due to the strong operating cash inflows and increase in
borrowings, its cash balance increased significantly to RMB70
billion at end-2016 from RMB27 billion at end-2015. Consequently,
its liquidity profile remained strong, with cash/short-term debt
improving to 214% at end-2016 from 186% at end-2015.

Despite the robust growth in EBIT, adjusted EBIT/interest - after
adjustments for its joint ventures and associates - remained
largely unchanged at around 2x in 2016, because of a higher
interest burden. Moody's expects that Sunac's adjusted
EBIT/interest will remain at around 2x over the next 12-18 months.

Sunac reported a mild improvement in its gross profit margin to
13.7% in 2016 from 12.4% in 2015, but such a level is still low
when compared to its Chinese industry peers. Moody's expects that
Sunac's gross margin will further improve to 15%-18% over the next
12 to 18 months, despite Moody's expectation that the company will
maintain a rapid asset turnover model.

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

Listed on the Hong Kong Stock Exchange on October 7, 2010, Sunac
China Holdings Limited is an integrated residential and commercial
property developer, with projects in China's main economic regions
such as the Beijing region, North China region, Shanghai region,
Southwestern China region, Southeastern China region, Guangzhou-
Shenzhen region, Central China region and Hainan region. At end-
2016, its gross land bank totaled 72.9 million square meters, and
its attributable land bank totaled approximately 49.7 million
square meters.



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


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

       Debtor                                      Case No.
       ------                                      --------
       Nouvelle Foods International Ltd.           17-10733
       188 Connaught Road West
       Rooms 3201-3210
       Hong Kong Plaza
       Hong Kong
       Republic of China

       Golden Target Pacific Limited               17-10734
       188 Connaught Road West
       Rooms 3201-3210
       Hong Kong Plaza
       Hong Kong
       Republic of China

About the Debtors:  Nouvelle Foods's aggregate noncontingent
                    liquidated debts (excluding debts owed to
                    insiders or affiliates) are less than
                    $2,566,050 (amount subject to adjustment on
                    4/01/19 and every 3 years after that).
                    Golden Target is not a publicly traded
                    company.  The only entity that directly owns
                    10% or more of the equity interests in Golden
                    Target is Richtown Development Limited (BVI).
                    The only entities that indirectly own 10% or
                    more of the equity interests in Golden Target
                    are Pacific Andes Resources Development
                    Limited (Bermuda), Clamford Holding Limited
                    (BVI), Pacific Andes International Holdings
                    Limited (Bermuda), N.S. Hong Investment (BVI)
                    Limited, R&J Investment Limited, JCNG
                    Investment Limited, NJK Investment Ltd., and
                    Pacific Innovation (BVI) Limited.

                    Nouvelle Food and Golden Target are members
                    of the Pacific Andes group of companies.
                    China Fishery Group Limited (Cayman), et al.
                    filed bankruptcy protection on June 30, 2016,
                    and Sept. 29, 2016.  A motion will be filed
                    with the Court requesting that the Chapter 11
                    cases of the Debtors and China Fishery, et
                    al., be consolidated for procedural purposes
                    only and jointly administered pursuant to
                    Rule 1015(b) of the Federal Rules of
                    Bankruptcy Procedure with the Initial Debtors
                    Cases.  The initial Debtors' cases have been
                    consolidated under Case Number 16-11895.

                    One of the primary reasons the Initial
                    Debtors commenced the affiliates Chapter 11
                    cases was to bring the Pacific Andes Group's
                    many creditors into a single forum so that
                    its financial difficulties could be resolved
                    in an efficient and transparent process and
                    the entire group's capital structure could be
                    reorganized to maximize value for all
                    stakeholders.

Chapter 11 Petition Date: March 27, 2017

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: Hon. James L. Garrity Jr.

Debtors' Counsel: Matthew Scott Barr, Esq.
                  WEIL, GOTSHAL & MANGES LLP
                  767 Fifth Avenue
                  New York, NY 10153
                  Tel: 212 310 8000
                  Fax: 212 310 8007
                  Email: Matt.Barr@weil.com

Debtors'
Financial
Consultant:       RSR CONSULTING, LLC

Debtors'
Financial
Advisor:          GOLDIN ASSOCIATES, LLC



                                       Estimated     Estimated
                                        Assets      Liabilities
                                     ------------   -----------
Nouvelle Foods                       $500M-$1-Bil.   $10M-$50M
Golden Target                        $500M-$1-Bil.   $10M-$50M

The petition was signed by Ng Puay Yee, authorized representative.

A. Nouvelle Foods's Largest Unsecured Creditor:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
KBC Bank N.V.,                                         $1,954,589
Hong Kong Branch
39/F. Central Plaza
18 Harbour Road
Hong Kong

B. Golden Target's Largest Unsecured Creditor:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Sahara Investment                                      $6,494,779
Group Private Limited
#12-51 Anson Centre,
51 Anson Road.
Singapore 079904

The following table sets forth a consolidated list of creditors
(excluding insiders) who hold the 30 largest unsecured claims
against the Debtor and its affiliated Debtors jointly administered
under case number 16-11895.

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Rabobank Intl, HK 32/F                                $96,503,494
3 Pacific Place I
Queens Road East Hong Kong

DBS Bank (HK) Ltd                                     $96,503,494
16th Fl, The Center
99 Queens Road
Central Hong Kong

HSBC                                                  $96,503,494
L16, HSBC Main Bldng
1 Queen's Road
Central, Hong Kong

Standard Chartered Bnk (HK) Ltd                       $96,503,494
15/F, Stndrd Charter Bnk Bldng
4-4A Des Voeux Road
Central Hong Kong

China CITIC Bnk Intl Ltd                              $32,167,831
80th Fl, Intl Commerce Cntr
1 Austin West
Kowloon
Hong Kong

TMF Trustee Ltd                                      $296,000,000
Corporate Trust
5th Fl, 6 St. Andrew St
London, EC4A 3AE
United Kingdom

Rabobank NFS Finance                                 $102,000,000
32/F, 3 Pacific Place
1 Queens Road East
Hong Kong

Maybank                                               $95,000,000
18/F CITIC Tower
1 Tim Mei Avenue
Central Hong Kong

Rabobank                                              $94,375,235
Pickenpack Facility Agmnt
32/F, Three Pacific Place
1 Queens Road East
Hong Kong

Tapei Fubon Com Bk Co Ltd                             $72,000,000
12F 169, Sec 4, Ren Ai Rd
Taipei, 106886
Taiwan

CITIC                                                 $70,900,000
61-65 Des Voeux Road
Central Hong Kong

DBS                                                   $58,000,000
16th Floor, The Center
99 Queens Road
Central Hong Kong

Maybank                                               $40,000,000
18/F CITIC Tower
1 Tim Mei Avenue
Central Hong Kong

Bank of America, N.A.                                 $30,000,000
52/F. Cheung Kong Center
2 Queen's Road Central
Central Hong Kong

Bank of America                                       $30,000,000
52/F, Cheung Kong Center
2 Queens Rd Central
Central Hong Kong

Rabobank                                              $22,000,000
32/F, 3 Pacific Place
1 Queens Road East
Hong Kong

Brndbrg Mrt Invst Hldng                               $15,558,581
L8, Medine Mews
La Chaussee
Port Louis, Mauritius

Andes Int'l Qingdao Ship                              $13,651,769
N67 Yin Chuan Xi Rd, BID
Qingdao Amintn Ind Pk 4F1
Qingdao City 266000
Shandong Province, China

Rabobank                                              $12,000,000
32/F, 3 Pacific Place
1 Queens Road East
Hong Kong

Fubon                                                 $11,000,000
Fubon Bank
38 Des Voeux Road
Central Hong Kong

Standard Charter Bank                                  $8,000,000
Standard Charter Bank Building
5/F 4-4A Des Voeux Rd
Central Hong Kong

Sahara Investment Group Private Limited                $6,494,779
#12-51 Anson Centre, 51 Anson Road.
Singapore 079904

KBC Bank N.V.,                                         $1,954,589
Hong Kong Branch
39/F. Central Plaza
18 Harbour Road
Hong Kong

DLA PIPER HONG KONG                                    $1,789,232
17th Flr, Edinburgh Twr
The Landmark
15 Queen's Road Central
Hong Kong

Grant Thornton Recovery                                  $907,427
Level 12, 28 Hennessy Rd
Wanchai
Hong Kong

Brndbrg Nam Invt Co                                      $783,559
Erf 2347 10th St E
Industrial Area
PO Box 658 Walvisbay
Republic of Namibia

Deloitte Touche Tohmatsu                                 $682,261
35/F One Pacific Place
88 Queensway
Hong Kong

Baraka Seari Ltd                                         $657,200
Rm 1401-2
Easey Comercial Bldng
253-261 Hennessy Rd
Wanchai, Hong Kong

Meridian Invst Group Pte                                 $442,001
138 Cecil Street
#12-01 A Cecil Court
Singapore 069538
Singapore

Taishin                                                  $400,000
No. 118, Sec 4, Ren-ai Rd
Da-an District
Taipei City 106
Taiwan


PHYSICAL PROPERTY: Incurs HK$730,000 Net Loss in 2016
-----------------------------------------------------
Physical Property Holdings Inc. filed with the Securities and
Exchange Commission its annual report on Form 10-K disclosing a
net loss and total comprehensive loss of HK$730,000 on HK$1.08
million of rental income for the year ended Dec. 31, 2016,
compared with a net loss and total comprehensive loss of
HK$795,000 on HK$1.07 million of rental revenue for the year ended
Dec. 31, 2015.

As of Dec. 31, 2016, Physical Property had HK$8.81 million in
total assets, HK$12.67 million in total current liabilities, and a
total stockholders' deficit of HK$3.85 million.

Mazars CPA Limited, in Hong Kong, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2016, citing that the Company had a negative
working capital as of Dec. 31, 2016, and incurred losses for the
year then ended, which raised substantial doubt about its ability
to continue as a going concern.

A full-text copy of the Form 10-K is available for free at:

                      https://is.gd/HbBSxO

                    About Physical Property

Physical Property Holdings Inc. (PPYH.PK) is a Hong Kong-based
real estate company.  The company buys, sells, invests in and
rents real estate in Hong Kong with five residential apartments in
the area.



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


ASPEN SHAVING: CRISIL Assigns B+ Rating to INR5MM LT Loan
---------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of Aspen Shaving Products (ASP).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Proposed Fund-Based
   Bank Limits             1.5        CRISIL B+/Stable

   Long Term Loan          5          CRISIL B+/Stable

   Cash Credit             0.5        CRISIL B+/Stable

   Letter of Credit        1          CRISIL A4

The rating reflects ASP's limited product diversification and
susceptibility to intense competition in the double edged blades
(DE blades) segment. These weaknesses are partially offset by the
benefits the company derives from the extensive experience of its
promoters and healthy demand prospects in export markets.

Key Rating Drivers & Detailed Description

Weaknesses

* Limited product diversification: The firm faces intense
competition from organised players and their brands such as
Gillette, which has the highest market share in the country. In
addition, there is competition from cheaper import substitutes and
domestic unorganised players, who offer their products at lower
prices.

* Susceptibility to intense competition: The safety razor blade
market features major players such as Laser Shaving India Pvt Ltd
[LSPL; rated 'CRISIL A-/Stable/CRISIL A2+'], Gillette India Ltd,
and Supermax Personal Care Pvt Ltd as well as regional and
unorganised players in the segment.

Strengths

* Extensive experience of promoters: The promoter, Mr. Vijaya
Sekhar Kasivi, has three decades of experience in the industry. He
was working as chief executive till 2015 in another company which
was engaged in manufacturing stainless steel safety razors and
razor blades.

* Healthy demand prospects in export markets: Most of the
production is to be exported, primarily to African and Middle East
countries. Most of these countries have huge demand for DE blades
and are price sensitive. ASP envisages entering these markets. The
strategy to be adopted is to enter into a long term arrangement
with local suppliers/distributors for supply of products.

Outlook: Stable

CRISIL believes ASP will benefit from the extensive experience of
its promoter. The outlook may be revised to 'Positive' if revenue
and profits are sizeable and operations stable. The outlook may be
revised to 'Negative' if commissioning of the project is delayed
or sizeable debt-funded capital expenditure weakens financial risk
profile.

ASP is a proprietorship firm engaged in the manufacture of DE
blades. The manufacturing unit, with a capacity of 33 lakh units
of 100 blade packets, is being set up near Hyderabad, Telangana.
The operations of are managed by Mr. Kasivi. DE blades are cost
effective and commonly used in shaving and hair cutting saloons.
The plant is expected to be operational from April, 2017.

ASP is expected to report a profit after tax of Rs1.3 crore on
expected net sales of INR10.41 crore for fiscal 2018.


BEETA POLY: CARE Reaffirms B+ Rating on INR12.36cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Beeta Poly Coats Private Limited (BPCP), as:
                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            12.36       CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities             2.50       CARE A4 Reaffirmed

Detailed Rationale

The ratings assigned to the bank facilities BPCP continue to
remain constrained by its short track record with small scale
coupled with low net worth base, low profitability margins,
leveraged capital structure. The ratings are further constrained
by the susceptibility of margins to volatile raw material prices
and its presence in the highly competitive industry. The rating,
however, continue to take comfort from experienced promoter and
moderate operating cycle.

Going forward, ability of the company to profitably increase its
scale of operations with improvement in capital structure shall be
the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Short track record with small scale coupled and low capital base:
The small scale of operations has remained small which limits the
company's financial flexibility in times of stress and deprives it
from scale benefits. BPCP started with its commercial production
during September 2014 and has a relatively short track record of
operations as compared with other established players.

Low profitability margins and leveraged capital structure: The
profitability margins continue to remain low on account of margin
owing to competitive nature of industry. Also, finance and
depreciation cost has further restricted the net profitability of
the company. The capital structure of the company continues to
remain leveraged owing to low capital base coupled with debt
funded capex to set up the manufacturing facility and high
reliance on external borrowings to meet working capital
requirements.

Susceptibility of margins to volatile raw material prices: As PVC;
being a major raw material and a crude oil derivative, price of
which is dependent on crude oil prices which are highly volatile.
Therefore, the operating margin of BPCP remains susceptible to any
sharp movement in the raw material prices which the company is
able to pass on to its customers Presence in highly competitive
industry: BPCP operates in a highly fragmented industry marked by
the presence of a large number of players in the unorganized
sector. Furthermore, with presence of various players, the same
limits bargaining power which exerts pressure on its margins.

Key Rating Strengths

Experienced promoter BPCP was incorporated in 2014 by Mr. Shyam
Lal Banga, Mr. Inderjeet Singh Saluja and Mr. Atul Banga. Mr.
Shyam Lal Banga has an experience of around four decades and prior
to BPCP, he has been engaged into manufacturing of conveyor belt
and allied items. Mr. Inderjeet Singh Saluja and Mr. Atul Banga
has two decades and a decade of experience respectively in trading
of artificial leather.

Moderate operating cycle: The operating cycle of the company has
remained moderate at 62 days for FY16. Being a competitive nature
of industry, the company provides average credit period of around
3 months. The company maintains minimal inventory of around one
month in the form of raw material for smooth production process.
Furthermore, the company receives average credit period of around
1-2 month from its suppliers. The average working capital limits
remained around 80% utilized for the past 12 months ended December
2016.

Delhi-based Beeta Poly Coats Private Limited was incorporated in
2014 by Mr. Shyam Lal Banga, Mr. Inderjeet Singh Saluja and Mr.
Atul Banga. The company is engaged in the manufacturing of coated
textile fabric which is commonly known as artificial leather
(Leatherite) and finds its application in diverse industries such
as footwear, upholstery, automobile (for seats and covers), and
furniture as well as in the textile industry. BPCP primarily
procures fabric and PVC resins, release paper as well as other
additives such as plasticizer, stabilizers, lubricants and fillers
from manufacturers and traders based in National Capital Region
(NCR).

The company sells its products on pan India basis directly to
dealers as well as various footwear manufacturing units. The
manufacturing facility of the company is located in Bahadurgarh,
Haryana with an installed capacity of 60 lakh meter per annum as
on December 31, 2016.

For FY16 (refers to the period April 1 to March 31), BPCP achieved
a total operating income (TOI) of INR48.56 crore with profit after
tax (PAT) of INR0.03 crore respectively. Furthermore, the firm has
achieved total TOI of INR58.00 crore till 9MFY17 (refers to the
period April 1 to December 31, based on provisional results).


CONSITE ENGINEERING: CARE Cuts Rating on INR5.50cr LT Loan to 'B'
-----------------------------------------------------------------
CARE Ratings has been seeking information from Consite Engineering
Company Limited (CECL) to monitor the rating(s) vide e-mail
communications vide e-mail communications dated
November 17, 2016, December 19, 2016, December 29, 2016, letter
dated February 25, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. 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 CECL's bank facilities will now be denoted as CARE B/CARE A4;
ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         5.50       CARE B; ISSUER NOT
   Facilities                        COOPERATING; Revised
   (Fund-based)                      from CARE B+ on the
                                     basis of best available
                                     information

   Short-term Bank        7.80       CARE A4; ISSUER NOT
   Facilities                        COOPERATING; Based on best
   (Non-fund-based)                  available information

The ratings have been revised on account of consistent decline in
total operating income resulting in loss at the PAT level in FY16
(refers to the period April 1 to March 31), highly leveraged
capital structure at the end of FY16, and elongated operating
cycle.

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

Key Rating Weaknesses

Modest scale of operations coupled with thin profitability margins
During FY16, CECL has achieved total operating income of INR16.55
crore (vis-a-vis INR19.55 crore in FY15), on which it made a loss
of INR0.01 crore (vis-a-vis PAT of INR0.02 crore in FY15).
Consequently PBILDT margins also declined from 11.95% in FY15 to
7.08% in FY16. The scale of operations is considered to be
relatively moderate as compared to its peers and limits the
company's financial flexibility in times of stress and deprives it
from scale benefits.

Highly leveraged capital structure

The financial profile of the company is below average marked by
highly leveraged capital structure and weak liquidity position.
The company's debt profile comprises primarily of bank borrowings
and unsecured loans from the promoters. The gearing levels
remained high at 2.73x as on March 31, 2016, as compared to 2.66
in FY15 mainly on account of low net-worth base coupled with
higher utilization of its working capital limits. Furthermore, the
total debt/GCA also stood higher at 61.11x in FY16 owing to lower
gross cash accruals generated.

Elongated operating cycle leading to working capital intensive
nature of operations

The operating cycle of the company deteriorated to 419 days in
FY16, from 390 days in FY15. The deterioration could be attributed
to higher collection period, which stood at 329 days in FY16 as
compared to 240 days in FY15. Susceptible to volatility in the
prices of raw materials CECL's PBILDT margin is vulnerable to
adverse fluctuations in key raw material prices. Raw material
costs account for around 84% of the CECL's operating expenses.
Fluctuations in raw material prices, therefore, would impact the
PBILDT margin and may impact revenues on account of limited
ability to pass on the same.

Key Rating Strengths

Experienced management with established track record of operation
The overall operation of CECL is managed by Mr. V S Jagasia
(Mechanical Engineer by qualification), having more than three and
a half decades of industry experience and Mr. N S Jagasia
(Mechanical Engineer by qualification, having around 35 years of
experience), who looks after the production department and
purchase department. The company has a track record of nearly
three decades of operation in the industry. Established
relationship with reputed client base CECL has a diversified
portfolio of reputed client base operating in power, oil & gas,
chemicals, engineering and pharmaceutical industries. The company
has been catering to the clients since long and has been able to
maintain healthy relationship with them.

Presence in the highly fragmented and competitive industry The
products manufactured by CECL find application in capital goods
industry. Some large companies in this sector are diversified in
terms of products and are also in various sectors. Even the
medium-sized companies are of a diversified nature. Foreign
companies have their presence in India through joint ventures like
Atlas Copco, Alfa Laval, J. L. Smidth, Sulzer, etc. Others have
technology tie-ups with renowned Indian equipment manufacturers.
Overall, the sector exhibits intense competition with moderate
degree of fragmentation.


DCR INFRA: ICRA Assigns B+ Rating to INR6.50cr Loan
---------------------------------------------------
ICRA Ratings has assigned the long-term rating of [ICRA]B+ on the
INR6.50-crore term loan facility of DCR Infra. The outlook on the
long-term rating is 'Stable'.

                       Amount
  Facilities        (INR crore)    Ratings
  ----------        -----------    -------
  Fund-based Limits      6.50      [ICRA]B+ (Stable); assigned

Detailed rationale

The assigned rating remains constrained by project concentration
risks as the DCR Infra (DI) is currently developing a sole project
'Gokul Solitaire' at Vesu in Surat. Furthermore, the sales
velocity of the project has remained moderate, with about 43% of
the area being unsold; despite about 83% of the project cost has
been incurred till January 2017. The sales risk is further
accentuated by competition from other ongoing and upcoming
projects in the vicinity, along with the ongoing slowdown in the
real estate market. The rating also factors in the exposure of the
project to the cyclicality inherent in the real estate sector and
the susceptibility of profitability to fluctuations in the prices
of construction materials and labour costs. ICRA also notes the
risks associated with the partnership nature of the business,
where any substantial withdrawals from the capital account could
adversely impact the capital structure of the firm. The rating,
however, favourably factors in the long and established presence
of the partners of the firm in the real estate business, with
their track record of successful execution of various residential
projects in the past. ICRA also takes into account DI's low
funding risk as debt for the project has already been tied-up, and
the low regulatory risk as the necessary approvals and clearances
for the construction of the project are already in place. The firm
has already completed majority of the construction till January
2017 against the scheduled completion of March 2018, offering
comfort from the perspective of execution risk.

The firm's ability to execute the ongoing project in a timely
manner, without any cost over-runs, accelerate its sales and
maintain comfortable collection efficiency, given the current low
level of customer advances (13.85% of total value of units sold as
on January 17, 2017), would remain critical from a credit
perspective.

Key Rating Drivers

Credit strengths

* Long track record of the promoters in real estate

* Low execution risk, given the advanced stage of project
   Construction

* Low regulatory risk in the ongoing commercial project since
   pre requisite approvals are in place

* Moderate funding risk as the term loan for the project has
   already been tied up and will be disbursed in line with the
   execution cycle

Credit weaknesses

* Market risk remains high given the high level of unsold
   inventory (43%) at present and stiff competition in the Surat
   real estate segment

* Exposed to project concentration risk as the firm is currently
   developing a sole project

* Vulnerability of the profitability to cyclicality inherent
   in the real estate industry; with weak consumer sentiment,
   real estate industry is currently going through a lean patch

* Vulnerability of profitability to steel and cement price
   Variations

* Risks associated with partnership form of business in terms
   of continuity, capital infusions and withdrawals

Detailed description of key rating drivers highlighted:

DCR Infra (DI), promoted by three partners, is currently
developing a commercial project at Vesu in Surat. DI began the
project namely 'Gokul Solitaire' in 2015 and is expected to
complete it by March 2018. The firm is exposed to asset
concentration risk as only one project is being executed
presently. As a result, the firm's revenue stream over the medium
term would solely depend on a single property. At present, the
firm has received booking for 91 shops, out of total 125, in the
commercial complex. The firm has received title clearance
certificate, non-agriculture (NA) and plan approval for the
construction of the project, resulting in a low regulatory risk.
The firm will recognise the revenue on execution of sales deed
with the customer. Hence, the firm has not recognised revenue till
the end of January 31, 2017 although it has received advances in
the form of token amount for 91 shops booked. The project cost
incurred till January 2017 was funded by partner's capital of
INR8.52 crore, unsecured loans of INR4.68 crore, term loan of
INR3.00 crore and customer advances of INR2.60 crore.

Analytical approach: For arriving at the ratings, ICRA Ratings has
taken into account, inter alia, the positive verbal feedback from
the banker, stating regularity in the account conduct, as well as
the increase in top line on a year-on-year basis.

DCR Infra (DI) was established in January 2014 as a partnership
firm to develop commercial complex called 'Gokul Solitaire' at
Vesu in Surat. Mr. Dharmesh Patel, Mr. Chetan Mania and Mr. Ronak
Patel are the partners of the firm, who have more than one and
half decade of experience in the real estate sector. The project
is located on a plot admeasuring 2419 sq. mtr, and has 125 shops
with a total saleable area of 85,698 sq. ft.


DIVYARATNA AGROTECH: CARE Assigns 'D' Rating to INR29.5cr Loan
--------------------------------------------------------------
CARE Ratings has been seeking information from Divyaratna Agrotech
Pvt. Ltd. (DAPL) to monitor the rating(s) vide e-mail
communications/ letters dated October 19, 2016, November 11, 2016,
January 16, 2017, January 20, 2017 and February 20, 2017 and
numerous phone calls. However, despite CARE's repeated requests,
Divyaratna Agrotech Private Limited has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines CARE's 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
Divyaratna Agrotech Private Limited's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank       4.00       CARE D; ISSUER NOT COOPERATING
   Facilities

   Short-term Bank
   Facilities          29.50       CARE D; 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 05, 2016 the following were
the rating strengths and weaknesses:

Key rating weaknesses:

Delay in debt servicing: As per interaction with banker, there
have been overdrawing in cash credit and delays in interest
payment for more than 60 days, due to which the account has been
classified as Special Mention Account 2, and the account is out of
order since October 2015. The overdrawing is on account of weak
liquidity position mainly due to delay in receiving payments from
debtors.

Divyaratna Agrotech Pvt. Ltd., incorporated in the year 2000 was
taken over in 2007 by Mr. Dilip Jindal and Mrs. Rachana Jindal,
directors of Desmo Exports Limited. DAPL is engaged in the
business of trading of industrial chemicals and solvents. The
company trades nearly 25 different varieties of products which
find its application in textile, food, dyes, rubber, paint,
ceramic, fertilizer, soap, printing ink, petroleum, metallurgy,
construction materials, pulp and paper industry, photographic and
adhesive industries. DAPL earns its entire revenue from the
domestic market. The major raw material import consists of Citric
Acid, Paraffin wax & Sodium sulphate from countries such as China,
Korea and Thailand. The warehouse of the company is located in
Bhiwandi, Maharashtra.


GENESIS RESORTS: CARE Assigns 'D' Rating to INR118.91cr Loan
------------------------------------------------------------
CARE Ratings has been seeking information from Genesis Resorts Pvt
Ltd. to monitor the rating(s) vide e-mail communications dated
March 1, 2017; February 24, 2017; February 21, 2017; February 20,
2017; February 17, 2017 and numerous phone calls. However, despite
CARE's 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 Genesis Resorts Pvt Ltd. bank
facilities will now be denoted as CARE D/CARE D; ISSUER NOT
COOPERATING. Users of this ratings (including investors, lenders
and the public at large) are hence requested to exercise caution
while using the above rating(s).

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term bank        118.91      CARE D; ISSUER NOT
   Facilities                        COOPERATING

   Short-term bank         2.00      CARE D; ISSUER NOT
   Facilities                        COOPERATING

Detailed Description of the Key Rating Drivers

The ratings of Genesis Resorts Pvt Ltd. factors in delay in
servicing of Bank loans by the company due to weakened liquidity
caused by the delay in project completion.

M/s Genesis Resorts Pvt. Ltd. (GRPL) is a private limited company
founded by the promoters of Gajalee Group, a well-known
restaurateur group. GRPL was incorporated on September 10, 2012 to
construct a four star hotel in Vile Parle, Mumbai. The proposed
four-star hotel is in the vicinity of domestic and international
airports, and would comprise of 102 rooms, two specialty
restaurants, one 24-hour coffee shop, and one banquet hall, among
other facilities. The project was initially expected to commence
operation from April 2014 at an estimated cost of INR183.81 crore.
However, there has been a delay in the project completion with the
total cost of the project being revised to INR220.33 funded with a
D:E of 1.59x.


HARDAYAL MILK: CARE Lowers Rating INR50.72cr LT Loan to 'D'
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Hardayal Milk Product Private Limited (HMPPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        50.72       CARE D Revised from
   Facilities                        CARE BB

Detailed Rationale & Key Rating Drivers

The revision in the ratings of the bank facility of HMPPL takes
into account the ongoing delay in servicing of debt obligations by
the company due to its weak liquidity position.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delay in Debt Servicing

HMPPL is facing stretched liquidity position due to elongated
operating cycle on account of increase in collection period. As a
result, there has been delay in the payment of interest of term
loan and overutilization of working capital limit. Weak financial
risk profile: HMPPL has a weak financial risk profile as the total
operating income of the company declined by about 63.10% to
INR68.67 crore in FY16 (refers to the period April 1 to March 31)
as compared to INR186.12 crore in FY15. Furthermore, the
operations of the company are highly working capital intensive
marked by elongated operating cycle and high utilization of
sanctioned working capital limits. The average collection days and
average inventory days increased and remained high during FY16 at
321 days and 333 days respectively (PY: 132 days and 105 days
respectively).

Key Rating Weaknesses

Experienced promoters

The promoters of the company have established track record of
running milk chilling plant and cold storages. Mr. Praveendra
Kumar, Managing Director of the company has 26 years of experience
out of which 18 years are towards running chilling plant and cold
storages.

Hardayal Milk Products Pvt Ltd was setup by Mr. Praveendra Kumar,
Mr. Ramveer Singh, Mr. Hardayal Singh, Mr. Veerpal Singh and Mr.
Amol Yadav in July 2005. The company started production from
December 2006 with an initial milk processing capacity of 2 lakh
litres per day (llpd). HMPPL is involved in production of various
milk products mainly in Pasteurised packed milk (97% of total
operating income in FY16), Ghee (1.67% of total operating income
in FY16) and other milk products like Flavored Milk, Curd,
Flavored Yogurt, Butter milk, Paneer, SMP (Skimmed Milk Powder),
Pasteurized Butter, Whole Milk Powder and Dairy WhitenerThe
company has an installed capacity to process 7 llpd of raw milk as
on March 31, 2016, at its Shikohabad plant in Uttar Pradesh.


HUBTOWN BUS: CARE Assigns 'D' Rating to INR41.67cr Loan
-------------------------------------------------------
CARE has been seeking information from Hubtown Bus Terminal
(Adajan) Pvt. Ltd. to monitor the rating(s) vide e-mail
communications dated February 24, 2017; February 21, 2017;
February 20, 2017; February 17, 2017 and numerous phone calls.
However, despite CARE's 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 Hubtown Bus
Terminal (Adajan) Pvt. Ltd. bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Bank
   Facilities             41.67     CARE D; 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

The ratings of Hubtown Bus Terminal (Adajan) Pvt. Ltd factors in
delay in servicing of bank loans by the company on account of its
weakened liquidity position caused by the delay in project
completion and delays in receipt of customer advances.

Hubtown Bus Terminal (Adajan) Pvt Ltd (HBTAPL) is a special
purpose vehicle formed by Hubtown Ltd. (formerly known as
Akruti City Ltd) with an objective to develop bus terminal at
Adajan, Surat-based, Gujarat, as per the concession agreement with
Gujarat State Road Transport Corporation.

The Hubtown group is in business of developing real estate since
more than two decades, commencing with the incorporation of Akruti
Nirman Private Limited on February 16, 1989, which was
subsequently converted into a public limited company on April 11,
2002. Company was renamed to Akruti City Limited in 2008 and
further renamed to Hubtown Ltd in 2012.


HUBTOWN BUS TERMINAL: CARE Assigns D Rating to INR100cr Loan
------------------------------------------------------------
CARE Ratings has been seeking information from Hubtown Bus
Terminal (Ahmedabad) Pvt. Ltd. to monitor the rating(s) vide
e-mail communications dated February 24, 2017; February 21, 2017;
February 20, 2017; February 17, 2017 and numerous phone calls.
However, despite CARE's 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 ratings. In line
with the extant SEBI guidelines, CARE's rating on Hubtown Bus
Terminal (Ahmedabad) Pvt. Ltd. bank facilities will now be denoted
as CARE D/CARE D; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        100.00      CARE D; ISSUER NOT
   Facilities-                       COOPERATING
   Term Loan

   Short-term Bank        27.55      CARE D; ISSUER NOT
   Facilities                        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

The ratings of Hubtown Bus Terminal (Ahmedabad) Pvt. Ltd factors
in delay in servicing of Bank loans by the company on account of
its weakened liquidity position caused by the delay in project
completion and delays in receipt of customer advances.

Hubtown Bus Terminal (Ahmedabad) Pvt. Ltd. (HBTAPL) is a special
purpose vehicle formed by Hubtown Ltd. (formerly known as Akruti
City Ltd) with an objective to develop a bus terminal at Geeta
Mandir, Ahmedabad Gujarat, as per the concession agreement with
Gujarat State Road Transport Corporation (GSRTC). The Hubtown
group is in the business of developing real estate since two
decades. The group commenced operations with the incorporation of
Akruti Nirman Private Limited (ANPL) in February 1989. ANPL was
subsequently converted into a public limited company in April,
2002 renamed as Hubtown Ltd in 2012. Gujarat State Road Transport
Corporation (GSRTC) floated a tender for redevelopment of the bus
terminal at Geeta Mandir (Ahmedabad) in 2007. The Hubtown group
was allotted development rights of the said bus terminal project
to be executed through HBTAPL.


INDUSTRIAL PROGRESSIVE: CARE Assigns B- Rating to INR55cr Loan
--------------------------------------------------------------
CARE Ratings has been seeking information from Industrial
Progressive (India) Limited to monitor the rating(s) vide email
communications dated Feb 25, 2017, March 8, 2017, March 15, 2017
and numerous phone calls. However, despite CARE's 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 Industrial Progressive (India) Limited's bank
facilities will now be denoted as CARE B-; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank        55.00       CARE B-; ISSUER NOT
   Facilities                        COOPERATING; Revised from
                                     CARE BBB-; on the basis
                                     of best available
                                     information

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

The rating is revised considering the subdued demand scenario for
Skimmed Milk Powder (SMP) in domestic as well as export market
which resulted in decline in the prices of SMP industry wide. With
decline in prices of SMP (Contributed 24% to total sales in FY15)
it is likely that total operating revenue and consequently
profitability, debt coverage indicators of Industrial Progressive
(India) Limited would have been affected. In addition, ratings are
marked by seasonal nature of operations, sensitivity to changes in
government policies and competition from players in the organized
sector. The rating however, draws strengths from experienced
promoters well-recognized brand and northern region, established
procurement and marketing arrangements.

Detailed description of the key rating drivers

Key Rating Weaknesses

Seasonal nature of operations: India being a tropical country
renders a hot and humid climate for the animals and thus there is
a fluctuation in the milk production. There is a flush season in
the cooler parts of the year whereas the production goes down in
the warmer months. IPIL converts the surplus milk during November-
April (flush season) into ghee, skimmed milk powder, Casein whey
powder leading to high inventory/finished goods so as to maintain
the continuous supply of milk products round the year.

Sensitivity to changes in government policies: The dairy industry
has low profitability margins as raw material
costs (milk) form significant portion of the total costs. Milk
supply and its prices are exposed to several
external risks like government policies, cattle diseases, yield
etc.

Competition from players in the organized sector: IPIL faces stiff
competition in the dairy segment from established brands in the
organized market and independent milk vendors in unorganized
market. On the liquid milk front, competition gets fiercer with
presence of unorganized players and independent milk vendors
leading to pricing pressures.

Key Rating Strengths

Experienced promoters in dairy industry: Mr. Rajesh Gandhi,
Managing Director of IPIL has a marketing and finance experience
of over 15 years and he is assisted by his brother Mr. Ramesh
Jain, who looks after procurement and production.

Well-recognized brand in Northern Region: The Company markets its
products under the brand name "Doaba" and "Milk Country". Doaba
caters to North India especially Haryana and Rajasthan whereas
Milk Country caters to the demand of Andhra Pradesh, Tamil Nadu
and Kerala.

Established procurement and marketing arrangements: The Company
procures milk from Uttar Pradesh, Haryana and Rajasthan through
independent contractors and 60 village-level centers (VLCs) as on
March 31, 2015. IPIL customers include several large dairy
companies.

Financial risk profile: The Company's total income has increased
by 14.7% in FY15 on account increased capacity utilization. The
PBILDT margin improved from 4% in FY14 to 4.20% in FY15 on account
of increase in sales of value-added products.

Industrial Progressive (India) Limited (IPIL), promoted by Mr.
Subash Goel and his associates, was incorporated on 19th November
1984 as a public limited company. However, the company started its
operations from 1992 onwards with initial capacity of 2 lakh
litres per day (LLPD). Mr. Rajesh Gandhi, MD looks after the
operations of the company. The original promoter Mr. Goel had sold
his stake to Mr. Gandhi in Sept 2010. The company is engaged in
the manufacturing of various Milk products under the brand name
"Doaba" and "Milk Country". "Doaba" caters to North India
especially Haryana and Rajasthan whereas "Milk Country" caters to
the demand of Andhra Pradesh, Kerala and Tamil Nadu. The
manufacturing products range of the company includes Ghee, Skimmed
Milk Powder (SMP), Butter, Casein, Whey Powder and Liquid Milk.


JSW STEEL: Moody's Assigns Ba3 Rating to New Unsecured Notes
------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the
proposed senior unsecured notes to be issued by JSW Steel Limited.

Proceeds from the issuance will be used towards retiring some of
the company's debt, funding capital expenditure and other purposes
in accordance with the Reserve Bank of India's External Commercial
Borrowing regulations.

The proposed notes rank pari passu and are therefore rated at the
same level as the company's existing $500 million senior unsecured
notes, maturing in 2019 and its corporate family rating (CFR) of
Ba3.

The ratings outlook is stable.

RATINGS RATIONALE

"JSW's Ba3 CFR continues to reflect the company's large scale and
competitive conversion costs, its leading market position in South
and West India, and a good product and end-market diversification,
with an increasing focus on value-added products and retail
sales," says Kaustubh Chaubal, a Moody's Vice President and Senior
Analyst.

The rating also incorporates Moody's expectation of an improving
trend for JSW's leverage and coverage metrics.

Proforma for the proposed bond, and taking into account the use of
some proceeds to retiring debt, Moody's estimates that JSW's
adjusted leverage will register 3.8x at 31 March 2017, a sharp
improvement from 6.7x at 31 December 2015, and continuing the
improving leverage trajectory of 5.1x at September 2016 and 4.1x
at December 2016.

Moody's also notes that the company has made binding bids for
acquisiton of equity stakes in steel companies, the outcome of
which is not yet known.

"The Ba3 CFR incorporates Moody's views that JSW will maintain a
measured approach to growth, with its exposure to acquisitions
limited to equity stakes," adds Chaubal, who is also Moody's Lead
Analyst for JSW. "Any indication of an increase in JSW's risk
appetite will negatively weigh on the company's ratings."

The ratings also incorporate JSW's exposure to the cyclical steel
industry and the absence of raw material integration that
exacerbate both supply and price risk.

Nevertheless, with domestic steel prices lower than international
prices and adequate protections in place in the form of safeguards
and anti-dumping duties, Moody's anticipates limited pressure on
steel prices over the next 12-18 months.

At the same time, Moody's expects India's steel consumption to
trail GDP growth of 7.5% and 7.6% in calendar years 2017 and 2018
respectively. With 88% of its steel sold in India, JSW should be
able to capitalize on this growth opportunity.

Furthermore, an addition to JSW's crude steel capacity of 4 mt
during the fiscal year ending 31 March 2017 (FY2017), an
increasing proportion of high-margin value-added products, and
continuing cost rationalization initiatives will drive an
improvement in the company's profitability, despite sporadic raw
material cost pressures.

Looking ahead, Moody's does not expect the recent rise in iron ore
and coking coal prices to be passed on entirely, as such, JSW's
EBITDA/tonne should average less than INR7,900 for FY2017, and
remain flat or fall modestly in FY2018; results which would still
show an appreciable improvement on the average INR4,719 for
FY2016.

The stable ratings outlook incorporates Moody's view that should
JSW undertake any acquisitions or investments, they will remain
within the management's demonstrated financial prudence and that
adjusted leverage remains comfortably below 5.0x. Moody's expects
any temporary spike in leverage to correct within the ensuing four
quarters.

The ratings could experience upward pressure if JSW continues to
maintain its sustained improvement in operating and credit
metrics, and a measured approach to growth.

Specific credit metrics that could lead to a higher ratings
category include an adjusted leverage of less than 3.5x, and
EBIT/interest coverage in excess of 2.5x, while generating
positive free cash flows.

Maintaining EBIT margins in excess of 12% would also be key for a
higher ratings category.

The ratings could be downgraded if the company undertakes large
debt financed acquisitions or investments, such that adjusted
leverage exceeds 5.0x, EBIT/interest coverage drops below 2.0x, or
if free cash flows remain negative on a sustained basis.

Downward ratings pressure could also arise if there is a weakening
in operating and credit metrics that result in a narrowing
headroom under its financial covenants.

A delay in the turnaround of acquisitions, such as would require
additional support in the form of equity or debt, or additional
management time could also exert negative pressure on the ratings.

The principal methodology used in these ratings was Global Steel
Industry published in October 2012.

JSW Steel Limited is a leading manufacturer of a wide range of
steel products in India. It has an installed steel-making capacity
of 18 million tonnes per annum, and is one of the country's
largest steel producers.


K.G.P. GOLD: CARE Reaffirms 'B' Rating INR9cr LT Bank Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
K.G.P. Gold Palace (KGP), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              9         CARE B; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facility of KGP continues to
remain constrained by its small scale of operations with
constitution as a partnership concern, susceptibility of
profitability to volatile gold prices, presence in highly
competitive and fragmented gems and jewellery industry, elongated
operating cycle due to high inventory holding period and leveraged
capital structure and weak debt coverage indicators. The rating
also factors in decrease in total operating income in FY16 (refers
to the period April 1 to March 31).

The rating, however, continues to derive strength from experienced
partners and wide range of products offered. Going forward, the
ability of the firm to scale up the operations with improved
profit margins and capital structure while managing its working
capital effectively would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small Scale of operations with decline in total income: The firm
has a small scale of operations with total operating income at
INR20.96 crore in FY16. The total operating income of the firm
decreased by 14.90% from INR24.63 crore in FY15.

Partnership nature of constitution: Furthermore, its constitution
as a partnership concern with low net worth base restricts its
overall financial flexibility in terms of limited access to
external funds for any future expansion plans.

Elongated operating cycle: Elongated operating cycle due to high
inventory holding period since the firm being a retailer, has to
maintain high level of inventory in order to meet all kinds of
customer demand.

Susceptibility of operating profitability to volatile gold prices:
Gold prices have exhibited sharp volatility depending up on the
demand & supply scenario and volatility in the foreign currency
exchange rates. Supply of gold is also being continuously
regulated by the Government of India (GOI) and Reserve Bank of
India (RBI) interventions.

Presence in a highly competitive and fragmented G&J industry: The
gems & Jewelry industry is highly unorganized with organized
market accounting for a mere 5-6% of the jewelry retail market.

Leveraged capital structure and weak debt coverage indicators: The
overall gearing though improved remained high at 6.81x as on March
31, 2016 compared to 14.32x as on March 31, 2015. The firm had
weak debt coverage indicators marked by low interest coverage
ratio and high total debt/GCA. Key Rating Strengths Improvement in
PBILDT margins: The PBILDT margin increased by 226 bps from 5.81%
in FY15 to 8.07% in FY16, due to decline in gold prices in FY16.

Davangere-based (Karnataka) K.G.P. Gold Palace was originally
formed as a partnership concern in the name of Khazana Gold Palace
by Mr. Ganesh D Shet and Mrs Surekha G Shet in 2013. Later in
April 2014, the partnership deed was reconstituted with Mr.
Santosh G Shet, Mrs Vidya M Shet, Mr.  Ganesh M Revankar, Mr.
Maruthi C Raikar, Mr. Sandesh Raikar and Mrs Sharda Raikar joining
as new partners and name of the firm was changed to its present
name. Subsequently, Mrs Vidya M. Shet and Mr. Ganesh M Revankar
retired from the partnership in June, 2014.

KGP is engaged in the business of retailing of gold, diamond,
silver and precious stones studded jewellery. The firm offers
wide range of products that include rings, earrings, pendants,
necklaces, bracelets, bangles and medallions. KGP procures
raw materials from local market and outsources its manufacturing
activities on job work basis to manufacturers in local markets.
KGP has an associate firm, K.G.P. Jewellers (KGPJ) (Reaffirmed
CARE B in February 2017) which is engaged in similar business.

In FY16, KGP had a Profit after Tax (PAT) of INR0.22 crore on a
total operating income of INR20.96 crore, as against PAT and
TOI of INR0.32 crore and INR24.63 crore, respectively, in FY15.


KRISHNA VASUDEVA: CRISIL Reaffirms 'B' Rating on INR8.5MM Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the long-term bank
facilities of Krishna Vasudeva Foods and Derivatives Private
Limited (KFDPL) at 'CRISIL B/Stable'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            8.5       CRISIL B/Stable (Reaffirmed)
   Long Term Loan         1.5       CRISIL B/Stable (Reaffirmed)

Operating revenue grew by around 80% year-on-year, yet remained
moderate at INR109.07 crore in fiscal 2016. Net cash accrual was
also low at INR0.14 crore for the fiscal, as operating margin
dropped to 1.88% from 2.52% in fiscal 2015.

CRISIL expects revenue growth of 10-15%, expected in the medium
term, to strengthen the business risk profile, while the operating
margin may continue to be low around 2%.

Liquidity should remain adequate, owing to sufficient cash accrual
expected against debt obligation in the medium term, and funding
support from promoters, via unsecured loans, (outstanding of
INR2.87 crore as on March 31, 2016.) Bank limit utilisation
averaged around 75% over the past 12 months through January 2017.

CRISIL had assigned its 'CRISIL B/Stable' rating on the long-term
bank facilities of KFDPL on October 21, 2016.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile:  Financial risk profile was weak on
account of large working capital debt and muted profitability. The
total outside liabilities to tangible networth ratio was high at
24.97 times as on March 31, 2016, mainly due to small networth of
INR1.01 crore. Debt protection metrics were weak: interest
coverage and net cash accrual to total debt ratios were 1.14 times
and 0.01 time, respectively, in fiscal 2016. Financial risk
profile is expected to remain at similar level over the medium
term on account of large incremental working capital debt and
continued low operating profitability.

* Moderate scale of operations in the intensely competitive pulse
processing business: Intense competition in the pulse processing
business will continue to constrain the scale of operations
(revenue was INR109.07 crore in fiscal 2016) in the near-term.

Strengths

* Extensive experience of the promoters, and their funding
support: Benefits from the two decade-long experience of the
promoters, the wide distribution network with dealers and
suppliers, and funding support extended by them (via unsecured
loans, which stood at INR2.89 crore as on March 31, 2016), will
continue.

* Efficient working capital management: Gross current assets,
inventory and receivables of 65, 41 and 19 days, respectively, as
on March 31, 2016, indicate efficient working capital management.
However, working capital management will remain a rating
sensitivity factor over the medium term.
Outlook: Stable

CRISIL believes KFDPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if substantial growth in cash accrual, or a fund
infusion by the promoters, strengthens the financial risk profile.
The outlook may be revised to 'Negative' if a stretch in the
working capital cycle or lower-than-expected cash accrual, weakens
the financial risk profile, especially liquidity.

KFDPL was set up in 2012, by Mr. Nishit Aggarwal and Mr. Vippin
Aggarwal in Ganganagar (Rajasthan). The company mainly processes
chana to chana dal and besan. The manufacturing unit in
Ganganagar, has a capacity of 160 metric tonnes per day.

KFDPL, on a standalone basis, reported net loss of INR0.13 crore
on net sales of INR109.07 crore in fiscal 2016, vis-a-vis INR0.08
crore and INR59.86 crore, respectively, in fiscal 2015.


LN CONSTRUCTIONS: CARE Assigns B+ Rating to INR4.75cr LT Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of LN
Constructions (LNC), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             4.75       CARE B+; Stable Assigned

   Short-term Bank
   Facilities             4.00       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of LNC are constrained
by its small scale and working capital intensive nature of
operations, fluctuating total income, leveraged capital structure
and weak debt coverage indicators, partnership nature of entity,
geographic and customer concentration risk and presence in highly
fragmented and competitive industry. The ratings, however, derive
strength from experience of the partners and medium term revenue
visibility from order book size.

Going forward, the firm's ability to further increase its scale of
operations with improvement in profitability margins, effective
management of working capital requirements and timely execution of
orders received will be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with partnership nature of constitution:
The firm has small scale of operations with total operating income
of INR13.83 crore in FY16 (refers to the period April 1 to March
31). Furthermore, being a partnership concern, LNC has an inherent
risk of withdrawal of capital by the partners and restricted
access to funding which could limit its growth opportunities.

Fluctuating total income though increasing profitability margins:
LNC exhibited volatile income and profit margins. The fluctuation
in total income over the years has been due to fluctuation in
order book position.

The firm's PBILDT margin showed an increasing trend, since the
firm undertook minimum number of orders with comfortable profit
margins. The PAT margins were low amid fluctuation during review
period.

Leveraged capital structure and weak debt coverage indicators: The
firm has leveraged capital structure, though marginal improvement
in overall gearing from 3.99x as on March 31, 2015, to 3.26x as on
March 31, 2016.

The debt coverage indicators marked by interest coverage and Total
debt/GCA have remained weak at 1.52x and 12.37x in FY16.

Geographic and customer concentration risk: The firm operates as
sub-contractor for principal contractors, exposing it to
substantial customer concentration risk with its business being
dependent on ability of these entities to win newer contracts.
Furthermore, the contracts undertaken by LNC are confined to the
Telangana region.

Working capital intensive nature of operations: LNC has a
stretched operating cycle which was at 139 days in FY16 due
to high inventory holding period, the collection period also
remains relatively high.

Highly competitive industry: The Indian construction sector is
highly fragmented with presence of many mid and largesized
players. Given the volatile economic environment, there has been a
slowdown in release of new contracts, which has resulted in
sluggish growth being witnessed by the construction industry.
However the long-term outlook appears satisfactory on the back of
major investment expected from the government sector.

Key Rating Strengths
Medium term revenue visibility: The firm's outstanding order book
consists of 3 ongoing projects which are at different stages of
completion. The total value of outstanding contracts is INR76.40
crore of which work for INR38.40 crore are yet to be completed as
on September 2016.

Experienced partners: The partners of LNC have experience of more
than 2 decades in the civil construction industry. Every partner
of the firm has interest in various other firms involved in the
business of civil works, construction and real estate.

L N Constructions is a partnership firm based in Hyderabad and was
established in the year 2006 by Mr. Sudarshan Reddy. The partners
of the firm are; Mr. K. R. Sudershan Reddy, Mr. S. Vinay Kumar
Reddy, Mr. P. Satyajith Reddy and Mr. Surender Rao. Currently, Mr.
Vinay Kumar manages the day to day operations of the firm. LNC
undertakes various civil construction projects for Public Works
Department (PWD) of Telangana and operates in the capacity of a
sub-contractor for principal contractors, viz, BVSR Constructions
Private Limited, Manikanta Construction, BRR Infra Pvt Ltd and
Hotcrete Infrastructure Pvt Ltd. The firm has worked on various
projects including construction of high level bridges, road works,
construction of railway crossing and broad gauge line work etc.

In FY16, LNC had a Profit after Tax (PAT) of INR0.42 crore on a
total operating income of INR13.83 crore, as against PAT and
TOI of INR0.46 crore and INR12.42 crore, respectively, in FY15.


M. A. AMBHORE: CRISIL Cuts Rating on INR3.5MM Cash Loan to 'B'
--------------------------------------------------------------
CRISIL Ratings has downgraded the long term ratings M. A. Ambhore
(MAA) to 'CRISIL B/Stable' from 'CRISIL B+/Stable' while
reaffirming the short term ratings at 'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee         1.75       CRISIL A4 (Reaffirmed)

   Cash Credit            3.50       CRISIL B/Stable (Downgraded
                                     from 'CRISIL B+/Stable')

   Proposed Bank
   Guarantee              1.25       CRISIL A4 (Reaffirmed)

   Proposed Cash          1.50       CRISIL B/Stable (Downgraded
   Credit Limit                      from 'CRISIL B+/Stable')

The downgrade reflects weakening of the firm's financial risk
profile especially liquidity. With increase in the scale of
operations and continued stretched working capital cycle, the
liquidity of the firm has weakened as reflected in absence of any
cushion in the working capital bank lines. Additionally high
capital structure of 2 times limits the firm from additional
leverage to fund its working capital requirements. Timely
enhancement in its working capital bank lines and capital infusion
from its Proprietor will be a key driver of its liquidity position
going ahead.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and geographical concentration in the
intensely competitive civil construction industry: The M. A.
Ambhore is a modest player in the civil construction business.
The revenues for the group depicted a volatility owing to the
tender nature of the business and intense completion in the civil
construction industry leading to pressure on its revenues.
Furthermore, the group's modest scale and modest net worth base
limit its ability to bid for the projects, further restricting is
scale of operations.

* Highly working capital intensity of operations: Stretch in
receivables and increased WIP inventory leads to increased working
capital intensity of the business to a large extent leading to
fully utilised bank limits. CRISIL believes that the working
capital intensive operations will continue to constrain the
business risk profile of the firm.

* Below average financial risk profile: The firm's financial risk
profile is below average as reflected in gearing of 2.1 times and
low net worth of INR2.4 cr as on March 31, 2017. Due to high
reliance on external debt to fund its incremental working capital
requirements, CRISIL believes that the financial risk profile of
the firm is expected to remain below average going ahead as well.

Strength

* Promoters' extensive experience in the civil construction
business: Mr. Ambhore has established successful track record of
operations with these government bodies over the past 28 years
through this firm.( AIDPL). was Incorporated by Mr. Ambhore for
engaging in civil construction work related to dams, canala, water
supply etc. The extensive experience of the propriotr has helped
the firm bag orders recently wherein the firm currently has
unexecuted orderbook of 35 cr to be executed over next 2 years.
CRISIL believes that the proprietor's extensive experience will
help the firm sustain its business risk profile over the medium
term.

Outlook: Stable

CRISIL believes M A Ambhore (MAA) will benefit over the medium
term from its proprietor's extensive experience and moderate order
book. The outlook may be revised to 'Positive' if substantial
growth in revenue and profitability leads to sizable cash accrual.
Conversely, 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, especially
liquidity.

Established in the 1990s and based in Jalna (Maharashtra), MAA is
a proprietorship concern of Mr. Mahendra Ambhore. The firm
undertakes civil construction contracts primarily for irrigation
and dams-related works, and also constructs canals and water
supply channels.

For fiscal 2016, M. A. Ambhore profit after tax (PAT) was INR1.9
crore on net sales of INR514 crore, against INR1.5 crore of INR509
respectively crore for 2015.


MA MAHAMAYA: CRISIL Assigns 'B' Rating to INR6MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of MA Mahamaya Rice Mill Private Limited (MMRMPL).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Bank Guarantee         0.24        CRISIL A4 (Assigned;
                                       Suspension revoked)

   Cash Credit            6.00        CRISIL B/Stable (Assigned;
                                       Suspension revoked)

   Term Loan              1.90        CRISIL B/Stable (Assigned;
                                      Suspension revoked)

CRISIL had suspended its ratings on the bank facilities of MMRMPL
on April 6th 2016, as the company had not provided the information
required for a rating review. It has now shared the requisite
information, enabling CRISIL to assign ratings to the facilities.

The ratings reflect the company's weak financial risk profile
because of small networth, modest scale of operations in the
fragmented rice milling business, and susceptibility to volatility
in raw material prices and changes in government regulations.
These weaknesses are partially offset by diverse clientele.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: Cash losses in the last two fiscal
eroded networth, which was negative as on March 31, 2016. Despite
gradual improvement, networth is expected to remain subdued.

* Small scale of operations: With installed capacity of 8 tonne
per hour and operating income of INR38.6 crore in fiscal 2016,
scale remains modest in the competitive rice milling industry.
Despite estimated 10% growth in current year, scale will remain
small.

* Exposure to volatility in raw material prices, uneven monsoon,
and government regulations: Since paddy is an agriculture product,
availability is seasonal as yield depends on monsoon. Paddy and
rice prices are also affected by changes in government policy.

Strengths

* Diverse customer base: The company currently has a large
clientele of 10-15 brokers and over 100 direct customers in
Jharkhand and West Bengal.

Outlook: Stable

CRISIL believes MMRMPL will benefit over the medium term from its
diverse clientele and stable demand for rice. The outlook may be
revised to 'Positive' if a substantial increase in cash accrual,
equity infusion by promoters, or better working capital management
leads to significant improvement in liquidity and capital
structure. The outlook may be revised to 'Negative' if low cash
accrual, stretch in working capital cycle, or large, debt-funded
capital expenditure further weakens financial risk profile,
particularly liquidity.

Incorporated in 2006, MMRMPL mills non-basmati parboiled rice at
its facility in Madhyamgram, West Bengal, and sells under the
Mahamaya Bhog brand. Operations are managed by its director, Mr.
Sandip Hazra.

Net loss was INR31 lakh on an operating income of INR38.67 crore
during fiscal 2016, against a net loss of INR3.31 crore on an
operating income of INR30.19 crore during the previous fiscal.


MAA GANGA: CARE Assigns B+ Rating to INR4.80cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Maa
Ganga Rice Mill (MGRM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             4.80       CARE B+; Stable Suspension
                                     Revoked and reaffirmed

   Short term Bank
   Facilities             0.32       CARE A4

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Maa Ganga Rice Mill
(MGRM) continues to be constrained by its proprietorship nature of
constitution, small scale of operations with thin profitability
margins, volatility in profit margins subject to government
regulations, seasonal nature of availability of paddy resulting in
working capital intensity, exposure to vagaries of nature and
fragmented and competitive nature of industry. However, the
aforesaid constraints are partially offset by its long track
record and experienced proprietor and proximity to raw material
sources.

Going forward, the ability of firm to increase its scale of
operations with improvement in profitability and effective
management of working capital would be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Long track record and experienced proprietor: MGRM has been
engaged in rice milling business since 1996. Shri
Rajendra Prasad Agarwala (aged 61 years), having an experience of
around 35 years in same line of business (by virtue of
working in a partnership firm engaged in rice milling before),
looks after the overall day-to-day affairs of the business
since inception. He is adequately supported by his son, Shri Rahul
Agarwala (aged 36 years) (having experience of around
two decades) and a team of experienced personnel.

Proximity to raw material sources: MGRM's plant is located in
Burdwan District, West Bengal which is in the midst of paddy
growing region. The entire raw material requirement is met locally
from the farmers (or local agents) which helps the entity to save
substantial amount of transportation cost and also procure raw
materials at effective price.

Key Rating Weaknesses

Proprietorship nature of constitution: MGRM, being a
proprietorship entity, is exposed to inherent risk of capital
being withdrawn at time of personal contingency and risk of
dissolution on account of poor succession planning. Moreover,
proprietorship entity has restricted access to external borrowing
as credit worthiness of proprietor would be the key factors
affecting credit decision for the lenders.

Small scale of operations with thin profitability margins: The
scale of operations remained small as compared to its peers with a
PAT of INR0.19 crore on total operating income of INR21.95 crore
during FY16. The profit margin of the firm remained thin marked by
operating margin of 2.36% and PAT margin of 0.85% in FY16.
Furthermore, the total capital employed of the firm decreased to
INR5.23 crore as on Mar.31, 2016 as against INR5.76 crore as on
March 31, 2015.

Volatility in profit margins subject to government regulations:
The Government of India (GoI) decides a minimum support price (MSP
- to be paid to paddy growers) for paddy every year limiting the
bargaining power of rice millers over the farmers. The MSP of
paddy was increased during the crop year 2016-17 to
INR1470/quintal from INR1410/quintal in crop year 2015-16. Given
the market determined prices for finished product vis-Ö-vis fixed
acquisition cost for paddy, the profitability margins are highly
volatile. Such a situation does not augur well for the firm,
especially in times of high paddy cultivation.

Seasonal nature of availability of paddy resulting in working
capital intensity & exposure to vagaries of nature: Rice milling
is a working capital intensive business, as the rice millers have
to stock paddy by the end of each season till the next season
since the price and quality of paddy is better during the
harvesting season. Further, while paddy is sourced generally on
cash payment, the millers are required to extend credit period to
their customers. Accordingly, average working capital utilization
remained moderately high at 90% during the last 12 months ended
February 28, 2017. Also, paddy cultivation is highly dependent on
monsoons, thus exposing the fate of the entity's operation to
vagaries of nature. Fragmented and competitive nature of industry:
MGRM's plant is located in Burdwan district, which is one of the
hubs for paddy/rice cultivating region of West Bengal. Owing to
the advantage of close proximity to raw material sources, more
than 350 units are engaged in milling and processing of rice in
the region. This has resulted in intense competition which is also
fuelled by low entry barriers. Given that the processing activity
does not involve much of technical expertise or high investment,
the entry barriers are low.

Maa Ganga Rice Mill (MGRM) was set up as a partnership firm in the
year 1996 by Shri Rajendra Prosad Agarwala and his brother Shri
Tarak Nath Agarwala of Burdwan, West Bengal. Later on in 2000, it
has been converted into proprietorship entity in the name of
Rajendra Prasad Agarwala. The entity is engaged in the processing
and milling of rice. The milling unit of the entity is located at
Burdwan, West Bengal with processing capacity of 18,000 Metric
Tonne Per Annum (MTPA). MGRM procures paddy from farmers & local
agents and sells its products through the wholesalers and
distributors in the state of West Bengal.

During FY16 (refers to the period April 1 to March 31), the firm
reported a total operating income of INR21.95 crore and PAT of
INR0.19 crore in FY16 as against a total operating income of
INR25.49 crore and PAT of INR0.14 crore in FY15. The firm has
achieved a turnover of INR20 crore during 10MFY17.


MANTRA EARTH: CARE Assign B+ Rating to INR15cr LT Bank Loan
-----------------------------------------------------------
CARE Ratings has been seeking information from Mantra Earth (ME)
to monitor the rating vide e-mail communications/letters dated
January 9, 2017, February 6, 2017, February 24, 2017 and March 8,
2017 and numerous phone calls. However, despite our repeated
requests, the company has not provided the requiste information
for monitoring the ratings. 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 ME
bank facilities and instruments will now be denoted as CARE B+;
ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank        15.00       CARE B+; ISSUER NOT
   Facilities                        COOPERATING

The rating is contrained on account of the nasecent stage of
project thus exposing it to the execution risk, high dependence on
customer advances and pending financial closure. The rating
derives strength from the long standing experience of the
promoters and of the promoter group in the real estate sector,
locational advantage of the project and receipt of all the
approvals and clearances for the sanctioned layout.

The ability of the firm to execute construction activities as per
the schedule thereby enabling timely inflow of the receivables and
sell the inventory at estimated rates are the key rating
sensitivities.

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 on January 28, 2016, the following were
the rating strengths and weakness:

Key Rating Strengths

Experienced promoters

ME is a part of to the Mantra Group, which is promoted by the
Gupta family. The Gupta family has diversified presence in
various businesses in Pune. The group diversified into the real
estate space in 2006 and has completed projects with a
total saleable area of 15 lakh sq. feet (lsf). Currently, the
group is executing projects with a total saleable area of 47.40
lsf in Pune and adjoining areas.

Receipt of approvals and clearances for the project
ME has received all the necessary clearances and approvals for the
project related to land acquisition and construction.

Key Rating Weaknesses
Nascent stage of execution and low sales achieved as on
November 30, 2015

The construction of phase-I of ME was started in October 2015 and
hence as on November 30, 2015 the execution of the project was at
a nascent stage. The nascent stage of the project results in the
risk of timely completion and execution of the construction
activities on timely manner. The project had not been launched for
sales as on November 30, 2015. As on November 30, 2015, out of the
total saleable area of phase-I certain units has been booked for
sale by investors, however, the registrations have not been
commenced as of yet. High dependence on debt with pending
financial closure The total project cost of phase-I is to be
funded by equity, debt and customer advances in the ratio of
0.24:0.48:0.28. tht debt for the same had not bee tied up as on
November 30, 2015.

ME is a partnership firm with Mantra Properties & Developers
Private Limited and Mr. Vishal Nandlal Gupta as partners. The firm
was incorporated in October, 2015 for the execution of a real
estate residential project, 'Mantra Earth' located at Dhayari,
Pune. The project spans over a total built up area of 2.75 lakh
square feet (lsf), including phase-I (1.41 lsf) and phase-II (1.34
lsf). ME has entered into a development agreement with the land
owners, as per which, ME has paid land deposit to the land owners,
as a part consideration for the land for both the phases and
Further, certain portion of the total built up area of will be
given to the owners. The remaining area will be available to ME
for sale. Out of the saleable area of 1.80 lsf available to ME,
0.91 lsf would constitute phase-I of the project and 0.89 lsf
would constitute phase-II. The project is expected to have a total
of 4 buildings, to be built over the two phases, each comprising
of 2 building of 13 floors each, consisting of a mix of 1BHK,
1.5BHK, 2BHK and 3BHK flats. The project has been started recently
in October, 2015 and is expected to be completed by December,
2018.


MB ISPAT: CARE Assigns B+ Rating to INR11.25cr LT Loan
------------------------------------------------------
CARE Ratings has been seeking information from MB Ispat
Corporation Limited (MBICL) 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. The rating
on MBICL's bank facilities will now be denoted as CARE B+; ISSUER
NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        11.25       CARE B+; ISSUER NOT
   Facilities                        COOPERATING; based on
                                     best available information

The rating takes into account lack of backward integration
vis-a-vis volatility in raw material prices, cyclicality of Iron &
steel industry, 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

MBICL, having commenced operation in the year 2003, has a track
record of being engaged in steel business for over a decade. The
company has been promoted by Shri Shankar Lal Agarwal and his
family members. Shri Shankar Lal Agarwal, Managing Director, is a
graduate, the first generation entrepreneur, having over a decade
experience in manufacturing and trading of iron and steel
products. He looks after the overall day-to-day affairs of the
company with a requisite support from other co-directors and a
team of experienced personnel.

Strategic location of the plant

MBICL'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 MBICL 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

Lack of backward integration vis-a-vis volatility in prices The
degree of backward integration defines the ability of the company
to minimize price volatility risk and withstand cyclical downturns
generally witnessed in the iron and steel industry. MBICL does not
have any backward integration for its basic raw material (iron ore
and coal) and has to purchase the same from open market. Since the
raw material is the major cost driver and raw material prices are
volatile in nature, the profitability margin of the company is
susceptible to fluctuation in raw material prices. Further, the
company does not have any long-term contracts for purchase of
material.

Cyclicality of Iron & Steel industry

The steel industry is cyclical in nature. Steel consumption and,
in turn, production mainly depends upon the economic activities in
the country. Construction and infrastructure sectors drive the
consumption of steel. Slowdown in these sectors leads to decline
in demand of steel. Non-integrated players such as MBICL are more
susceptible to adverse industry scenario.

Intensely competitive nature of the industry with presence of many
unorganised players

The spectrum of the steel industry in which the company operates
is highly fragmented and competitive marked by the presence of
numerous players in eastern India (particularly in Odisha, West
Bengal & Chhattisgarh), given the fact that the entry barriers to
the industry are low. Hence, the players in the industry (incl.
MBICL) do not have pricing power and are exposed to competition
induced pressures on profitability. 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 Ispat Corporation Ltd. (MBICL)' incorporated in
July, 2002 by Agarwal family of Burdwan, West Bengal, with Shri
Shankar Lal Agarwal, being the main promoter. The company
commenced operations in November 2003 with sponge iron plant
[initial installed capacity - 30,000 Metric Tonne Per Annum
MTPA)], located at Bankura, West Bengal. Subsequently, in
September 2004, the company expanded the capacity of sponge iron
from 30,000 MTPA to 60,000 MTPA.


OM PRAKASH: CRISIL Reaffirms 'B' Rating on INR2MM Cash Loan
-----------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of
OM Prakash Satish Kumar (OPSK) at 'CRISIL B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              2        CRISIL B/Stable (Reaffirmed)
   Letter of Credit        23        CRISIL A4 (Reaffirmed)

The ratings reflect the expectation of a stable business risk
profile because of moderate scale of operations with modest but
sustained operating profitability. Operating revenue was stagnant
at INR93.5 crore in fiscal 2016 against INR93.6 crore in fiscal
2015. Operating profitability remained modest at 2% in fiscal
2016. The operating revenue is expected to remain stable over the
medium term due to muted demand amongst high competition.

Analytical Approach

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of OPSK and its associate entity, OPS
International (OPSI), together referred to as the OPS group. This
is because both the entities have common management and derive
business and financial synergies from each other.

CRISIL has treated unsecured loans of INR10.17 crore as neither
debt nor equity as the loans are expected to be retained in the
business over the medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Large working capital requirement: Operations are working
capital intensive, indicated by high gross current assets of 229
days as on March 31, 2016. The group maintains an average
inventory of around 3 months of cost of sales to support its
operations. Furthermore, the group offers a credit of 2-3 months
to customers, thereby increasing working capital requirement.
Although working capital requirement is accentuated by the margin
money requirement of around 10% of the letter of credit value, it
is partially assuaged by credit of around 180 days received for
raw material imports. Operations are expected to remain working
capital intensive over the medium term.

* Weak financial risk profile: Networth was modest at INR2.1 crore
as on March 31, 2016 and is expected to remain modest over the
medium term due to negligible accretion to reserve driven by low
operating profitability. Consequently, gearing was high at 2.2
times. Debt protection metrics were below average, reflected in
interest coverage and net cash accrual to adjusted debt ratios of
1.16 times and 0.04 time, respectively, for fiscal 2016. The
metrics are expected to remain below average over the medium term
driven by modest profitability.

Strength

* Established regional presence aided by experience of promoter:
The group started timber business in 1950s with a saw mill in
Delhi's Sadar Bazaar. Over the years, the promoter developed
healthy relationship with various exporters of wooden logs in
several countries including Indonesia, Myanmar, and Singapore,
thus facilitating timely availability of raw material (wooden
logs) for operations. The promoter's experience also aided
development of relations with various wooden product dealers and
traders in the domestic market. Benefits from the promoter's
experience will continue to support the business.
Outlook: Stable

CRISIL believes the OPS group will continue to benefit over the
medium term from the promoter's experience and established
customer relationship. The outlook may be revised to 'Positive' if
financial risk profile is strengthened by fresh equity infusion or
sizeable cash accrual driven by increase in scale of operations
and operating profitability. Conversely, the outlook may be
revised to 'Negative' if decline in revenue or operating
profitability, larger-than-expected debt-funded capital
expenditure, or substantial capital withdrawal weakens financial
risk profile.

Set up in 2005 as a partnership firm by Mr. Om Prakash Satish
Kumar, OPSI imports and trades in hardwood and softwood
(Malaysian/New Zealand).

OPSK, established in 1987, is a proprietorship concern promoted by
the same family. It also imports and trades in hardwood and
softwood. Based in Delhi, the operations are managed by Mr. Sumit
Singhal.

Profit after tax was INR8.6 lakh on net sales of INR55.3 crore in
fiscal 2016, vis-a-vis INR7.8 lakh and INR60.8 crore,
respectively, in fiscal 2015.


PANASIAN CONSTRUCTION: CRISIL Reaffirms B Rating on INR16MM Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its rating on the bank facilities of
Panasian Construction Company Private Limited (PCCPL) at 'CRISIL
B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          4         CRISIL A4 (Reaffirmed)
   Cash Credit             1.5       CRISIL B/Stable (Reaffirmed)
   Proposed Long Term
   Bank Loan Facilit      16         CRISIL B/Stable (Reaffirmed)


The ratings continue to reflect its small scale of operations and
moderate financial risk profile, marked by moderate Total outside
liabilities to tangible networth (TOLTNW) and low networth. These
rating weaknesses are partially offset by the promoters' extensive
experience in the construction industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Moderate TOLTNW: PCCPL had moderate leverage at 1.98 times as on
March 31, 2016.

* Low Networth: PCCPL had low net worth of INR4.85 crore as on
March 31, 2016. Small net worth is mainly due to low accretion to
reserves on account of small scale of operations. Further, small
net worth restricts the company's ability to bid for large
projects. It limits the financial cushion available to the firm in
case of any adverse conditions or downturn in the business.

Strength

* Promoters' extensive experience in civil construction industry:
The promoter Mr. Rakesh Bhagat has long standing experience of
around four decades in the industry. Prior to establishing PCCPL,
the promoter Mr. Bhagat has been operating in the construction
industry through a proprietorship firm namely Panasian
Constructions (PC) which is engaged in civil construction and
trading of construction equipment. Mr. Bhagat set up PCCPL in 2010
for civil construction and PC is now engaged in trading of
construction equipment.

Outlook: Stable

CRISIL believes PCCPL will continue to benefit over the medium
term from its promoters' extensive industry experience and
moderate order book. The outlook may be revised to 'Positive' if
the company reports substantial growth in scale of operations and
cash accrual while maintaining profitability and improving working
capital cycle. Conversely, the outlook may be revised to
'Negative' if revenue or profitability decline, significantly
impacting the company's financial risk profile.

Incorporated in 2010, PCCPL executes construction activities in
New Delhi. The company is promoted by Mr. Rakesh Bhagat and his
wife Mrs. Indu Bhagat.

PCCPL reported a profit after tax of INR0.61 crore on net sales of
INR11.34 crores for fiscal 2016, vis-a-vis INR0.53 crore and
INR11.94 crore, respectively, for fiscal 2015, on a standalone
basis.


PERIWAL POLYMERS: CARE Reaffirms B+ Rating on INR4cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Periwal Polymers Private Limited (PPPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              4         CARE B+ Reaffirmed

   Long-term/Short-
   term Bank Facilities    3         CARE B+/CARE A4 Reaffirmed

Rating Rationale
The ratings assigned to the bank facilities of PPPL continue to
remain constrained by its small scale and fluctuating scale of
operations with low net worth base, low profitability margins,
moderately leveraged capital structure and weak coverage
indicators. The ratings are further constrained by susceptibility
of profitability margins to fluctuation in raw material prices
with PPPL's presence in highly competitive and fragmented
industry.

The ratings, however, continue to draw comfort from the
experienced promoters with long track record of operations,
growing scale of operations and moderate operating cycle. Going
forward, the PPPL's ability to increase its scale of operations
coupled with improvement in profitability margins and capital
structure shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale and fluctuating scale of operations

The scale of operations continues to remain small which inherently
limits the company's financial flexibility in the times of stress
and deprives it from scale benefits. Furthermore, the total
operating income of the company has been fluctuating over the past
three years (FY14-FY16 [refers to the period
April 1 to March 31]), mainly on account of decrease in number of
order received scale of the company.

Weak profitability margins, moderately leveraged capital structure
and weak coverage indicators

Profitability margins of the company have continued to remain low
owing to limited value addition coupled with competitive nature of
business. Overall gearing stood at 1.35x as on March 31, 2016, as
against 2.47x as on March 31, 2015, mainly on account of repayment
of repayment of term loans and unsecured loans and infusion in
equity share capital with accretion of profits. Furthermore, the
debt coverage indicators as marked by interest coverage and total
debt to GCA continues to remain weak owing to low profitability.

Highly competitive nature of industry

PPPL operates in a highly fragmented industry marked by the
presence of a large number of players in the unorganized sector
and the industry is also characterized as low entry barriers which
limits bargaining power and exerts pressure on its margins.

Profitability margins are susceptible to fluctuation in raw
material price
The main raw materials for the company are resin, stabilizers and
plasticizers being crude derivative are susceptible to fluctuation
in raw material price as the prices are highly volatile.
Furthermore, PPPL's pricing power is restricted with limited
ability to pass on any increase in the input cost due to intense
competition which may impact the profitability of PPPL.

Key Rating Strengths

Experienced promoters and long track record of operations
Mr. Ganshyam Periwal looks after the overall operations of the
firm. He has experience of more than two decades in manufacturing
of PVC Granules through his association with PPPL. He is supported
by Mrs. Sarita Aggarwal (Director) and other family members.

Moderate operating cycle

The operating cycle of the company has remained moderate at 37
days for FY16. Being a competitive nature of industry, the company
provides average credit period of around 2 months. The company
maintains minimal inventory of around 15 days in the form of raw
material for smooth running of manufacturing activities and being
a manufacturer the company has to maintain the inventory of
finished goods to meet the immediate demand of the customer.
Furthermore, the company receives average credit period of around
a month from its suppliers; combining all entails to moderate
working capital cycle.

Alwar-based (Rajasthan) PPPL is a private limited company, which
was incorporated in 1994. The company is currently being managed
by Mr. Ghanshyam Periwal. PPPL is engaged in manufacturing of PVC
granules which find its application in cable industry (for
insulation). The company has an installed capacity of 7,200 tons
per annum as on March 31, 2016, from its installed capacity
located in Bhiwadi (Alwar). PPPL achieved a total operating income
(TOI) of INR40.46 crore with PAT of INR0.18 crore FY16.
Furthermore, the company has achieved total operating income of
INR33.46 crore in 10MFY17 (refers to the period of April 1 to
January 31).


POOJA SREE: ICRA Assigns B+ Rating to INR8cr LT Loan
----------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR8.00
crore long term - fund based facilities of Pooja Sree Traders.
ICRA has also assigned a long term rating of [ICRA]B+ and short
term rating of [ICRA]A4 to the unallocated facilities of INR2.00
crore of PST. The outlook on the long-term rating is Stable.

                     Amount
  Facilities       (INR crore)     Ratings
  ----------       -----------     -------
  Long-term-Fund
  based facilities      8.00       [ICRA]B+ (Stable)/Assigned

  Unallocated           2.00       ICRA]B+ (Stable)/[ICRA]A4
                                   Assigned

Rationale

The ratings considers the proven track record of the promoters in
cotton ginning and trade of edible oil; and, the diversified
product profile with focus on oil trade and cotton ginning, which
mitigates the agro-climatic risks associated with cotton ginning
operations to some extent. The ratings also consider the favorable
location of the ginning factory in Annur, Coimbatore which
provides easy access to reputed customer segments in the nearby
districts, even though the distance of the factory from cotton
fields remain a constraint.

The ratings are, however, constrained by the low value addition in
the business leading to low margins and returns. The rating is
further constrained by the modest scale of operations of the
entity in a highly competitive industry environment restricting
the pricing flexibility, and the susceptibility of the concern's
profitability to fluctuations in cotton prices due to seasonality
and regulatory risks; high geographic concentration of revenues;
exposure. The ratings also take into account the risks associated
with the entity's constitution as a proprietorship firm.

Going forward, the management's ability to improve its revenues by
commissioning the planned capital expenditure and improving the
profit margins while efficiently managing its working capital
cycle would be key rating considerations.

Key rating drivers

Credit Strengths

* Favorable location in Annur, Coimbatore which provides easy
   access to customer segments in nearby districts

* Proven track record of the promoters in the trading of edible
   oil cotton ginning operations

* Diversified product profile with focus on oil trade and cotton
   ginning mitigates cyclicality risks to some extent

Credit Challenges

* Low profitability on account of limited value addition and
   highly competitive and fragmented industry structure; distance
   of the factory from cotton fields remains a constraint

* Weak financial risk profile with low margins, high gearing,
   weak coverage indicators

* High geographic concentration of revenues, with over ~70% of
   the total revenues generated from Tamil Nadu

* Exposure to regulatory risks with regards to Minimum Support
   price (MSP) for raw cotton by Government of India

* Risks associated with being a proprietorship concern;
   withdrawals from promoters' current account could impact the
   capital structure

Description of key rating drivers highlighted:

The promoter has a proven track record in cotton ginning and trade
of edible oil for more than a decade, which helps in establishing
relationship with customers ensuring stable revenues. The
diversified product profile with focus on oil trade and cotton
ginning mitigates the cyclicality risks to some extent and
favorable location in Annur provides easy access to customer
segments in nearby districts. However, there is pressure on
operating margins due to of limited value addition and highly
competitive and fragmented industry structure. The revenue of the
concern is exposed to high geographical concentration risk as the
revenues are skewed towards Tamil Nadu; earnings are susceptible
to volatility in cotton prices due to seasonality and regulatory
risks. The ratings are further constrained by risk associated
being a proprietorship concern.

Pooja Sree Traders (the concern, PST) is a proprietorship concern
owned by Ms. P. Geethanjali and jointly managed along with her
husband, Mr. A. Padmanabhan. This firm is located in Annur, near
Coimbatore in Tamil Nadu. It is engaged in cotton ginning and
trade of edible oils, which includes palm oil, sunflower oil and
groundnut oil. The ginning process is done through job work from
two vendors situated in Annur. With regards to oil trade, PST
sells in the brand name of Pooja to both wholesale and retail
customers. For retail trade, the firm sells in pouches and tins.
In FY2016, the PST reported net profit of INR0.14 crore on an
operating income of INR55.43 crore as against net profit of
INR0.14 crore on an operating income of INR52.27 crore in FY2015.


REMI EDELSTAHL: CRISIL Lowers Rating on INR30MM Cash Loan to B+
---------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank facilities
of Remi Edelstahl Tubulars Limited (RETL) to 'CRISIL B+/Negative
/CRISIL A4' from 'CRISIL BB+/Negative/CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          20        CRISIL A4 (Downgraded
                                     from 'CRISIL A4+')

   Cash Credit             30        CRISIL B+/Negative
                                     (Downgraded from
                                     'CRISIL BB+/Negative')

   Letter of Credit        30        CRISIL A4 (Downgraded
                                      from 'CRISIL A4+')

   Proposed Long Term       4        CRISIL B+/Negative
   Bank Loan Facility                (Downgraded from
                                     'CRISIL BB+/Negative')

The downgrade reflects stress on the business risk profile of the
company reflected in a steep decline in turnover due to lower-
than-anticipated demand in the end user-power, refinery, and
petrochemical-industries, high inventory, and falling input
prices. Furthermore, limited capacity utilisation resulted in low
absorption of fixed cost and hence to a cash loss in fiscal 2016.
Turnover is estimated at around INR60 crore in fiscal 2017 against
INR100 crore in fiscal 2015. Furthermore, waning realisation per
tonne adversely affects profitability. Improvement in the scale of
operations and profitability, while securing new orders, would be
key rating sensitivity factors over the medium term.

The ratings reflect exposure to cyclicality in end-user
industries, working capital-intensive operations, and low return
on capital employed (RoCE). These rating weaknesses are partially
offset by a moderate financial risk profile because of continued
fund support from promoters and group entities, though the debt
protection metrics are below-average. The ratings also factor in
the extensive experience of the promoters in the seamless pipes
industry and their long association with reputed clients.

Analytical Approach

CRISIL has treated unsecured loans from promoters as neither debt
nor equity (NDNE)

Key Rating Drivers & Detailed Description

Weaknesses

* Low operating margin: The operating margin declined by 620 basis
points to 0.3% in fiscal 2016, resulting in a cash loss of INR1.25
crore. The decline in the margin was on account of lower capital
expenditure by end-user industries driven by the stressed economic
environment. This resulted in low capacity utilisation and reduced
absorption of overhead costs. Over the medium term, operating
efficiency is likely to be under pressure due to low capacity
utilisation.

* Working capital-intensive operations: Gross current assets were
high at 210 days as on March 31, 2016, driven by large inventory.
Operations are likely to remain working capital intensive over the
medium term.

* Low RoCE: The RoCE was low at around 3% in fiscal 2016 on
account of the highly working capital-intensive operations. It had
declined to 5.5% in fiscal 2015 from 8% in fiscal 2013. The RoCE
will remain low over the medium term on account of a low operating
margin and working capital-intensive operations.

Strengths

* Extensive industry experience of the promoters: The promoters
have an experience of 45 years in the seamless pipes manufacturing
industry. This has helped them understand the industry and the
local market and enabled the company to add large clients such as
Indian Oil Corporation Ltd, Larsen & Toubro Ltd, Bharat Heavy
Electricals Ltd, Bharat Petroleum Corp Ltd, and Hindustan
Petroleum Corporation Ltd. Regular orders has helped sales growth.

* Moderate financial risk profile: The capital structure is
healthy, helped by continued fund support from promoters and group
entities. The networth is estimated INR50 crore, gearing at less
than 0.2 time, and the total outside liabilities to tangible
networth ratio at below 0.5 time, as on March 31, 2017. However,
debt protection metrics are below average, providing limited
financial cushion to raise funds in case of exigencies. The
financial risk profile is expected to remain stressed over the
medium term because of a low RocE and below-average debt
protection metrics, though the capital structure is likely to
remain comfortable.

Outlook: Negative

CRISIL believes RETL's business risk profile will be constrained
over the medium term due to subdued demand from some of the key
end-user industries; however, it will continue to benefit from the
extensive industry experience of its promoters. The ratings may be
downgraded if substantial debt-funded capital expenditure, lower-
than-anticipated cash accrual, or a stretch in the working capital
cycle weakens the financial risk profile. The outlook may be
revised to 'Stable' in case of a significant increase in the scale
of operations while the operating margin improves, leading to
higher-than-expected cash accrual.

RETL was incorporated in 1970, promoted by Mr. Vishwambharlal
Chiranjilal Saraf. The company manufactures seamless and welded
constructed tubes and pipes used in the power, petrochemicals, and
heavy engineering sectors, refineries, and oil and gas processing
plants. It has manufacturing capacity of 12,000 tonne per annum in
Tarapur, Maharashtra.

In fiscal 2016, net sales were INR95.68 crore and net loss INR6.09
crore, against INR164.59 crore and INR2.12 crore, respectively, in
fiscal 2015.


REXON STRIPS: CARE Revises Rating on INR22cr LT Loan to B
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Rexon Strips Ltd. (RSL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             22.00      CARE B; Stable Revised
                                     From 'CARE B+'

   Short term Bank
   Facilities              2.00      CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of RSL
is on account of deterioration in financial performance during
FY16 (refers to the period April 1 to March 31) marked by decline
in turnover and cash loss incurred during the period. Moreover the
rating continues to remain constrained by its moderate scale of
operation with low profitability margins, low capacity
utilisations, volatility in raw material prices, working capital
intensive nature of operations and intense competition due to
fragmented nature of industry, sluggish growth in end user
industries and cyclicality in the industry. However, the aforesaid
constraints are partially offset by its long & established track
record and experienced promoter.

Going forward, the ability of company to increase its scale of
operations with improvement in profitability and effective
management of working capital would be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Long & established track record: RSL has been engaged in sponge
iron and MS ingot manufacturing since 1993. Hence, they have a
long and established track record of more than two decades.

Experienced promoter: The key promoter Mr. Ram Swaroop Kejriwal
has more than five decades of experience in steel and alloys
industry (by virtue of being manager in Jindal Steel before
starting this company), looks after the overall management of the
company. He is supported by other directors Mr. Prahlad Kejriwal
(having more than two decade of experience in this industry), Mr.
Chandra Kumar Kejriwal and Mr. Ashish Kejriwal (having three years
of experience in the same industry). Further the promoters are
assisted by a team of experienced professionals.

Key Rating Weaknesses
Moderate scale of operation with low profitability margins: The
total operating income (TOI) has declined by 4.42% to INR69.65
crore in FY16 (A) over FY15 (A) on account of slowdown in the
steel industry during the period. Accordingly, the operating
profit of RSL decreased by 109.92% and operating margins decline
by 779 bps during FY16.

Low capacity utilisations: The capacity utilization of sponge iron
increased in FY16 to 84.36% as against 55.99% in FY15. Due to this
slowdown in the steel sector, the company has stopped
manufacturing MS ingot and roasted fines.

Volatility in raw material prices: RSL does not have any backward
integration for its basic raw material (iron ore, pellet,
coal etc.) and purchases the same from the open market at spot
rates. Since, the raw material is the major cost driver
(comprising around 87.39% of FY16's TOI) and the prices of which
are volatile in nature, the profitability of the company is
susceptible to fluctuation in raw material prices.

Working capital intensive nature of operations: RSL has to
maintain a large quantity of raw material inventory to mitigate
the raw material price fluctuations risk and smooth running of its
production process. Further it also maintains inventory of
finished goods because of slowdown in steel sector and accordingly
the average inventory period of the company remained on higher
side at 111 days during FY16. Further, the company allows credit
of about 15-21 days to its clients which resulted into working
capital intensive nature of its operations. However, it receives
credit of about 1 to 1.5 months from suppliers due to its long
presence in the industry, mitigated the working capital intensity
to a certain extent. However, the average fund based bank limit
utilization remained on the higher side at about 95% during last
twelve months ending on February 28, 2017.

Intense competition due to fragmented nature of the industry &
sluggish growth in end user industries and cyclicality in the
industry: RSL is engaged in the manufacturing of sponge iron and
MS ingots, which is primarily dominated by large players and
characterized by high fragmentation and competition due to the
presence of numerous players in India owing to relatively low
entry barriers. Moreover, the fortunes of companies like RSL from
the iron & steel industry are heavily dependent on the automotive,
engineering and infrastructure industries. Steel consumption and,
in turn, production mainly depends upon the economic activities in
the country. Construction and infrastructure sectors drive the
consumption of steel. Slowdown in these sectors may lead to
decline in demand of steel & alloys.

Rexon Strips Ltd., promoted by the Rourkela (Odisha)-based
Kejriwal family in June, 1993, manufactures sponge iron and ingots
with capacity of 60,000 MTPA and 25000 MTPA, respectively. The
company also has a 3,00,000 MTPA iron ore roasted beneficiation
unit since 2011. The company procures iron ore from Orissa Mining
Company (OMC) and Aryan Mines, and coal from Mahanadi Coalfields
Ltd (MCL). RSL has a coal linkage with MCL for monthly coal supply
of 6000 tonnes. RSL markets sponge iron and ingots in North India,
primarily in Punjab and Uttar Pradesh, and also in North-East
India. The company also exports its manufactured product to
Bangaldesh and Nepal (contributing around 23.15% of its total
sales in FY16).

During FY16 (refers to the period April 1 to March 31), the
company reported a total operating income of INR69.65 crore
and net loss of INR5.90 crore in FY16 as against a total operating
income of INR72.87 crore and net loss of INR3.54 crore in FY15.
The company has achieved a turnover of INR54 crore during 10MFY17.


SANGAM PRESS: CARE Assigns B+ Rating to INR16.25cr LT Loan
----------------------------------------------------------
CARE Ratings has been seeking information from Sangam Press
Private Limited (SPPL) to monitor the rating vide e-mail
communications/ letters dated February 20, 2017 and numerous phone
calls. However, despite our repeated requests, the Sangam Press
Private Limited 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 Sangam Press Private Limited's long- term bank
facilities will now be denoted as CARE B+; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        16.25       CARE B+; ISSUER NOT
   Facilities                        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 7, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Moderate project execution risk with comfortable sales momentum:
The company has moderate risk of execution as it has already
received around 59% of the required customer advances against
76.12% of the total project cost incurred as on November 30, 2015.

Locational advantage and low marketing risk: Sales momentum for
SPPL is likely to remain high given the good demand for
residential property in the area on account of the location
offered by the site.

Receipt of all approvals and clearances: The company has received
of the required approvals and clearances for the project.

Key Rating Weaknesses
Limited experience of the promoters in real estate industry: The
promoters of the company have recently entered into real estate
business and therefore they have limited experience in the real
estate industry.

Small scale of operations: SPPL has discontinued its printing
division from May 5, 2014 due to consistent losses in the
segment on account of high operational costs and with outdated
technology by arrival of electronic media.

Weak profitability and leveraged capital structure: Profitability
continued to remain weak on account of high operational cost. The
capital structure and debt indicators continued to remain weak due
to increased debt levels

Cyclical nature of real estate industry: The company is exposed to
the cyclicality associated with the real estate sector which has
direct linkage with the general macroeconomic scenario, interest
rates and level of disposable income available with individuals.

Presence in a competitive environment: The real estate industry in
India is highly fragmented with most of the real estate
developers having region-specific presence.

Sangam Press Private Limited (SPPL) was incorporated in 1947 and
was founded by Mr. Achyut Patwardhan. It was operating a printing
press which was later in the year 1972, bought by Orient Longman
Limited from the Patwardhan family. In 1978, the press was sold
out completely to the current directors of the company i.e Shah
and Jhaveri Family. SPPL was engaged in the offset printing for
corporate clients, based in Maharashtra. However, SPPL has
discontinued its printing division from May 5, 2014 as the same
was incurring losses due to high operational costs and outdated
technology by arrival of electronic media.

Since August, 2012, the company has also ventured into real estate
sector and is currently constructing a residential tower at their
existing land at Pune. The project, named as "Sangam Solitaire",
was initiated in August, 2012. It consists of a single 11-storeyed
building, with 22 residential units. The project has a total
saleable area of ~1,00,000 square feet and the cost is estimated
to be INR78.46 crore.


SANGHAVI EXPORTS: CARE Assigns 'D' Rating to INR544.50cr Loan
-------------------------------------------------------------
CARE Ratings has been seeking information from Sanghavi Exports
International Pvt. Ltd. to monitor the rating(s) vide e-mail
communications dated February 24, 2017; February 21, 2017;
February 20, 2017; February 17, 2017; February 2, 2017;
October 13, 2016; July 5, 2016 and numerous phone calls. However,
despite of our repeated requests, the company has not provided the
requisite information for monitoring the ratings. 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 Sanghavi Exports International Pvt. Ltd's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        544.50      CARE D; ISSUER NOT
   Facilities                        COOPERATING; Based on best
   (Fund-based)                      available information

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

The rating takes into an account delay in servicing of Bank loans
by the company due to liquidity issues faced by it.

Detailed description of the key rating drivers

At the time of last rating on July 2, 2015, the following were the
rating strengths and weaknesses

Key Rating Strengths: NIL

Key Rating Weaknesses

Stressed liquidity position of the company demonstrated by
elongated working capital cycle, substantial delays in export
realisation, ongoing irregularities in export credit facilities,
worsened coverage indicators and overall deterioration in the
financial profile.

Sanghavi Exports International Pvt. Ltd (SEIPL) was established
as, a partnership firm in 1984 by the late Mr. Vasantlal R.
Sanghavi, Mr. Kirtilal R. Sanghavi, Mr. Rameshchandra R Sanghavi
and Mr. Chandrakant R Sanghavi (Chairman). In April 2007, the firm
was converted to a private limited company. SEIPL is engaged in
the business of processing and exports of cut and polished
diamonds. The company also undertakes trading of diamonds on a
limited scale. SEIPL's manufacturing facility is located at Surat,
Gujarat with a staff strength of 1500 workers and employees. The
company currently does not enjoy any direct sourcing arrangement
for rough diamonds from mining companies. Hence, rough diamonds
are procured from intermediaries majorly from Belgium, Dubai and
Hong Kong. Polished diamonds are exported mainly to Hong Kong, USA
and Dubai.

For FY15 (provisional) (refers to the period April 1 to March 31)
SEIPL reported a PAT of INR1.90 crore (INR13.48 crore in FY14) on
total operating income of INR784.12 crore (INR1109.01 in FY14).


SATABDI TEA: CRISIL Assigns 'B' Rating to INR7.75MM LT Loan
-----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable/CRISIL A4'
ratings to the bank facilities of Satabdi Tea Processing Private
Limited (STPPL).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Long Term Loan          7.75      CRISIL B/Stable
   Cash Credit             2.25      CRISIL B/Stable
   Letter Of Guarantee     0.50      CRISIL A4

The rating reflects STPPL's exposure to stabilisation risk because
of early stage of operations, and below-average financial risk
profile, with small networth and weak debt protection metrics.
These weaknesses are partially offset by the promoters' extensive
experience and funding support.

Key Rating Drivers & Detailed Description

Strengths

* Extensive experience of promoters: Benefits from the promoters'
experience of more than 10 years through group entities, and need-
based funding are expected to continue.

Weaknesses

* Modest scale of operations and profitability: Revenue and
profitability are expected to remain modest over the medium term
owing to early stage of operations and exposure to intense
competition.

* Weak financial risk profile: The financial risk profile may
remain below average, with small networth and weak debt protection
metrics.

Outlook: Stable

CRISIL believes STPPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if successful stabilisation of operations, healthy
operating income and cash accrual, and efficient working capital
management strengthen financial risk profile. Conversely, the
outlook may be revised to 'Negative' if low operating income and
accrual, stretch in working capital cycle, or any large debt-
funded capital expenditure leads to deterioration in the financial
metrics, particularly liquidity.

Incorporated in December 2013 by Mr. Nikunj Agrawal and Mr. Nikhar
Agrawal, STPPL is setting up processing unit for crushed-torn-
curled (CTC) tea in Siliguri, West Bengal. The unit will have
capacity of 25 lakh kg per annum. Production is expected to
commence in April 2017.


SELVA STONE: CRISIL Raises Rating on INR2.20MM Term Loan to B+
--------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
Selva Stone Export Limited (SSEL) to 'CRISIL B+/Stable' from
'CRISIL B-/Stable',while reaffirming the short term rating at
'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Import Payment
   Deferred Credit       5.88        CRISIL A4 (Reaffirmed)

   Long Term Loan        2.20        CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Packing Credit in
   Foreign Currency      6.00        CRISIL A4 (Reaffirmed)

   Proposed Long Term    1.17        CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

The upgrade reflects the timely stabilisation and
commercialisation of operations by SSEL. SSEL commenced operations
in January 2015 and has reported revenues of around INR23 crore
for fiscal 2016, which has been in line with CRISIL's
expectations. The revenue is expected to grow at a robust rate of
around 35 percent year on year supported by steady demand from its
customers, while the operating margins are expected to remain
sustained at around 20 percent over the medium term. CRISIL
believes that SSEL shall sustain its improvement in the business
risk profile over the medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to intense competition in the industry: The granite
industry is highly competitive with various unorganized players in
the market. SSEL will be required to offer products of acceptable
quality at competitive prices it could face initial challenges
especially in attracting customers who are already buying from
established players. Any adverse events such as weakening of the
demand outlook for the sector could threaten the operating
performance, thereby affecting its cash flow from operations

* High working capital requirements: SSEL's large working capital
requirement is reflected in GCAs of 136 days as on March 31, 2016
driven by substantial inventory of four months. Though granite is
available in abundance in quarries around Tamil Nadu, Karnataka,
and Andhra Pradesh, a large quantum of the same is exported to
China. Moreover, these quarries are shut for about four months in
a year during monsoon. Therefore, domestic granite processing
units are exposed to the risk of unavailability of raw material.
The working capital requirements are expected to remain high over
the medium term due to high inventory levels.

Strengths

* Extensive industry experience of the promoters: The promoters of
SSEL, Mr. G Selvaraj, Mr. S. Mohan and Mr. Saravanan, have
extensive experience in the granite industry. Mr. G Selvaraj has
an experience of around 30 years in granite industry. The
promoters were earlier engaged in granite mining, prior to setting
up SSEL. The company benefits from its promoters' experience and
their understanding of the dynamics of the local market. Because
of the experience gained over the years in the granite industry,
promoters have established healthy relationship with its suppliers
and customers. SSEL is also one of the very few players in India
to import rough granite blocks from Sri Lanka and process them in
India.

* Moderate financial risk profile: SSEL's financial risk profile
is moderate marked by a healthy capital structure and moderate
debt protection metrics. SSEL's net worth and gearing were at
around INR12 crore and 1.19 times respectively as on March 31,
2016, while its interest coverage was at around 4.12 times for
fiscal 2016.

Outlook: Stable

CRISIL believes that SSEL shall benefit from the extensive
industry experience of its promoters over the medium term. The
outlook may be revised to "Positive" in case of higher than
expected operating income or profitability with an improvement in
the working capital management. Conversely, the outlook may be
revised to "Negative" in case of decline in operating income or
profitability or in case of a higher than expected debt funded
capex plan leading to a deterioration of its financial risk
profile

Set up in 2012, SSEL is involved in the manufacturing of granite
stones and slabs. The company is promoted by Mr. G. Selvaraj along
with his son, Mr. S.Mohan and his brother-in-law, Mr. Saravanan.
The company has its manufacturing unit in Krishnagiri, Tamil Nadu.

SSEL reported a net profit of INR 0.64 crore on operating income
of INR23.69 crore for fiscal 2016 as against a net loss of INR0.39
crore on an operating income of INR4.63 crore for fiscal 2015.


SHIVMANI EXPORTS: CARE Reaffirms 'BB' Rating on INR0.10cr Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shivmani Exports Pvt. Ltd. (SEPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities              0.10      CARE BB; Stable Reaffirmed

   Short term Bank
   Facilities             14.30      CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SEPL continues to be
constrained by its moderate scale of operation with low
profitability margins, susceptibility to volatility in raw
material prices and foreign exchange rates, revenue concentration
from European countries, working capital intensive nature of
operation resulting in leveraged capital structure and moderate
debt service coverage indicators, highly fragmented and regulated
industry impacting profitability and business operations. However,
the aforesaid constraints are partially offset by its long track
record of operation, experienced promoters, strategic location of
the plant and established business relations with key customers.

Going forward, the ability of company to increase its scale of
operations with improvement in profitability and effective
management of working capital would be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Long track record of operation and experienced promoters: SEPL has
a long track record of operation of about 13 years in the leather
business. Mr. Darshan Singh Sabharwal, Managing Director, have
around 27 years of experience in leather industry and Mrs.
Tejender Singh Sabharwal have around 14 years of experience in the
same business.

Strategic location of the plant: The manufacturing facility of
SEPL is located at Picnic Garden, Kolkata which is in close
proximity to the various tanneries situated at Calcutta Leather
Complex for sourcing of finished leather, the main raw material
for manufacturing of fashion leather products. Moreover, the
company exports major part of its products to overseas market
through vessels from Kolkata port. Thus, the company gets the
benefit of its location.

Established business relations with key customers: SEPL's has
gained a list of dedicated customers who have been with the
company for past many years despite acute competition in the
international market. The entire sales of the SEPL are order based
and mainly cater to the European market, and the firm gets
repeated orders from these clients.

Key Rating Weaknesses

Moderate scale of operation with low profitability margins: The
scale of operations remained modest as compared to its
peers with a PAT of INR1.05 crore on total operating income of
INR65.72 crore during FY16. The profitability margin of the
company though improved but remained relatively low in FY16 in
view of low value addition and pricing constraints due
to increasing competition & slowdown in European economy, putting
pressure on margin.

Susceptibility to volatility in raw material price and foreign
exchange rates: SEPL does not have any tannery unit for
manufacturing of finished leather, its basic raw material for
manufacturing of leather goods like bags, wallet etc. Thus in the
absence of backward integration of its basic raw material, it has
to depend upon local suppliers for purchase of finished leather.

Revenue concentration from European countries: Exports are made to
various countries like Germany, France, Netherland, Spain UK etc.,
the major being to the European countries. Uncertainty associated
with economic environment in European Union will impact the
financial risk profile of its key customers which will in turn
affect the business of SEPL.

Working capital intensive nature of operation resulting in
leveraged capital structure and moderate debt service indicators:
The business depends heavily on working capital borrowings with
average utilization of around 95% during the last twelve months
ending February 28, 2017. This coupled with lower networth base of
the company resulted in leveraged capital structure marked by high
overall gearing ratio as on March 31, 2016. Moreover, the debt
service coverage indicators of the company remained moderate in
FY16. Highly fragmented and regulated industry impacting
profitability and business operations: The leather industry is
highly competitive in nature with presence of a large number of
unorganized players in the market which shrinks the profitability
margins. Further, the Indian leather industry, to some extent, is
impacted by Government policies which have been put in place for
maintaining competitiveness of the domestic players. Some of the
Government policies include import and export incentives by way of
duty drawbacks. The company currently receives duty drawback of
around 5%, which, if discontinued by the government will have an
impact on its margins.

Incorporated on Feb. 7, 2003, Kolkata based Shivmani Exports Pvt.
Ltd. is promoted by Mr. Darshan Singh Sabharwal and Smt. Tejinder
Kaur Sabharwal. Since inception, SEPL is engaged in the
manufacturing of leather related products such as bags, wallet and
other leather accessories which is majorly exported (94.76% of
total sales in FY16) to European countries viz. Germany, France,
Netherland, Spain, Italy, Finland and United Kingdom (UK). The
company has its own designers and provides a wide range of
collection based on the season. SEPL has an ISO 9001:2008,
14001:2004 and OHSAS 18001:2007 certified manufacturing unit
located at Kolkata, West Bengal and having an installed capacity
of 0.94 lakh pcs leather bags per annum, 6.3 lakh pcs leather
wallet per annum and 2.3 lakh small leather goods per annum. SEPL
is recognized as "Star Export House" by the Ministry of Commerce &
Industry, GoI (Government of India) which makes the company
entitled to various export incentive schemes. This apart, the
company is also a member of esteemed institutions like Council of
Leather Exports (CLE), Indian Leather Products Association (ALPA)
and Supplier Ethical Data Exchange (SEDE). Further, the company is
compliant with Business Social Compliance Initiative (BSCI) and
Ethical Trading Initiative (ETI) standards.

During FY16 (refers to the period April 1 to March 31), the
company reported a total operating income of INR65.72 crore
and PAT of INR1.05 crore in FY16 as against a total operating
income of INR79.01 crore and PAT of INR0.83 crore in FY15.
The company has achieved a turnover of INR33.40 crore during
10MFY17.


SHREE SECO: CARE Reaffirms 'C' Rating on INR1.59cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shree Seco Private Limited (SSPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             1.59       CARE C; Stable Reaffirmed

   Long-term/Short        6.50       CARE C; Stable/ CARE A4
   Term Bank Facilities              Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SSPL continue to
remain constrained due to continuing cash losses resulting into
negative net-worth. The ratings further remained constrained due
to leveraged capital structure, stressed liquidity position,
susceptibility to volatile raw material prices and intense
competition in the fragmented edible oil industry coupled with
seasonal nature of operations.

The ratings, however, continue to factor in the wide experience of
the promoters in the edible oil extraction industry.

Improvement in the overall financial risk profile in light of the
competitive nature of industry is the key rating sensitivity.

Detailed description of the key rating drivers

Key Weaknesses

Weak financial risk profile marked by continuing operating losses
and cash losses resulting in negative net-worth During FY16
(refers to period from April 1 to March 31), Total Operating
Income (TOI) of the company declined by 29.28% over FY15 mainly on
account of decline in sales volume of its products due to closing
of manufacturing facility post November, 2015. Further, it
continued to incur cash losses in FY16due to operating losses. Due
to increase in accumulated losses, the net-worth of the company
further eroded and continued to remain negative as on March 31,
2016.

Key rating strengths

Wide experience of the promoters in the edible oil extraction
industry

Mr. Saroj Khemka, key promoter, has an experience of around two
decades in the mustard oil business. Prior to edible oil
business, he was associated with the manufacturing of tin
containers in SSPL.

Jaipur (Rajasthan) based Shree Seco Private Limited (SSPL),
formerly known as Shree Containers Private Limited, was
incorporated in 1971 by Mr. Saroj Khemka and Mr. Ramesh Khemka.
SSPL is mainly engaged in the extraction and refining of mustard
oil from mustard/rapeseed seeds at its manufacturing facility
located at Jaipur with a capacity to produce 11,540 Metric Tonnes
Per Annum (MTPA) of edible oils. Further, the company also
manufactures tin containers with an installed capacity of 6000
tins per day and pet bottles which is used for captive
consumption. SSPL has an oil milling   capacity of 300 Metric
Tonnes Per Day (MTPD) to manufacture crude oil and de-oiled cake
(DOC), and has oil refining capacity of 50 MTPD as on March 31,
2016.

SSPL sells edible oil in the domestic market, while DOCs extracted
from rapeseed/mustard seeds are sold to Export Oriented Units
(EOU's) which supply to various East Asian markets such as
Vietnam, Singapore, China, Korea and Indonesia. SSPL sells edible
oil under the brand name Mangal and Tulsi in the retail market.

During FY13, the company shifted its plant from Durgapura, Jaipur
to Padasoli, Jaipur and the land at Durgapura got vacant. SSPL
decided to venture into real estate activities in order to utilize
the vacant land and for this purpose it converted its leasehold
land measuring 15607 square mts. of land situated at Durgapura,
Jaipur (from where the manufacturing facilities were shifted) from
capital asset into stock in trade on December 20, 2012. During
FY14, the company entered into joint venture agreement with Adarsh
Build Estate Ltd. for the construction of residential flats on the
said land and received INR12 crore as deposit from the said
entity. Also, SSPL has received advances from the customers of INR
5.83 crore as on March 31, 2016 as advance against booking for the
flats. Further, the advances from customers stood at INR7.77 crore
as on March 07, 2017.

During FY16 (Aud.) (refers to the period April 1 to March 31),
SSPL reported a total operating income of INR110.23 crore (FY15:
INR155.85 crore) with a net loss of INR2.70 crore (FY15: net loss
of INR3.60 crore). As per provisional results for 11MFY17, SSPL
has reported a total operating income of INR40.00 crore.


SHYAM POLYSPIN: CARE Reaffirms B+ Rating on INR18cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shyam
Polyspin Private Limited (SPPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              18        CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities               2        CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of Shyam Polyspin
Private Limited (SPPL) continue to remain constrained on
account of thin profitability, leveraged capital structure, weak
debt coverage indicators, working capital-intensive nature
of its operations, volatility associated with the cotton prices
and its presence in the highly competitive and fragmented
trading nature of operations.

The ratings, however, continue to derive strength from wide
experience of the promoters and diversified client profile.
The ability of SPPL to increase the scale of operations with
improvement in profitability and capital structure and efficient
management of working capital are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Decrease in total operating income and thin profitability margins
During FY16 (refers to the period April 1 to March 31), the TOI
declined by 20% to INR82.90 crore on a y-o-y basis on account of
reduction in volume of traded goods coupled with moderation in
average sales realizations. The PBILDT margin and PAT margin also
remained thin at 2.50% and 0.62% respectively during FY16.

Moderate leverage, weak debt coverage indicators and working
capital intensive nature of operations

The capital structure of SPPL remains moderatley leveraged as on
March 31, 2016. The interest coverage ratios remained weak at 1.66
times during FY16 Also, being trading nature of business, SPPL's
operations are working capital intensive in nature which is being
met primarily through working capital bank borrowings and
unsecured loans from the promoters and relatives.

Key Rating Strengths

Vast experience of the promoters in cotton and yarn trading
business

SPPL is promoted by Mr. H G Gupta having extensive experience of
more than four decades in cotton trading business and looks after
the entire operations of the company. He is assisted by other
promoters of the company.

SPPL was established in 1990 at Ahmedabad and is engaged in the
cotton trading business. It is also working as a commission agent
for the cotton yarn trading. The company is promoted by Mr.
Hanuman Prasad Gupta, Mr. Pramod H Gupta, Mr. Vinod H Gupta and
Mr. Navin H Gupta.

During FY16 (refers to the period April 1 to March 31), SPPL
reported PAT of INR0.52 crore on a total operating income (TOI) of
INR82.90 crore as against a PAT of INR0.53 crore on a TOI of
INR103.35 crore in FY15.


SIDDHIVINAYAK AESTHETICS: CRISIL Ups Rating on INR15MM Loan to B-
-----------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Siddhivinayak Aesthetics Private Limited (SAPL) to
'CRISIL B-/Stable' from 'CRISIL C'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              15       CRISIL B-/Stable (Upgraded
                                     from 'CRISIL C')

   Proposed Long Term        5       CRISIL B-/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL C')

The upgrade reflects timely servicing of debt obligations over the
four months through March, 2017. Liquidity is expected to remain
adequate over the medium term, supported by sufficient cash
accrual against debt obligation.

The rating reflects SAPL's working capital-intensive operations
and below-average financial risk profile. These weaknesses are
partially offset by the extensive experience of its promoters and
their funding support.

Analytical Approach

For arriving at the ratings, unsecured loans (outstanding at
INR5.78 crore as on December 31, 2016) extended to SAPL by its
promoters have been treated as neither debt nor equity as these
loans are expected to remain in business over the medium term and
carry an interest rate lower than the bank rate.

Key Rating Drivers & Detailed Description

Weaknesses

* Working capital-intensive operations: Gross current assets were
155 days as on March 31, 2016, due to high receivables and
moderate inventory days. The operations will continue to remain
working capital intensive.

* Below-average financial risk profile: Gearing was high at 3.46
times as on March 31, 2016, while debt protection metrics were
weak, reflected in an interest coverage ratio of 1.56 time in
fiscal 2016. Networth, was small at INR9.05 crores as on March 31,
2016.

Strength

* Experience of promoters and their funding support: Prior to
setting up the company, all the promoters had experience of eight
years in the paint industry. The promoter's experience of over 15
years and their funding support (extended unsecured loans of
INR5.78 crores as on December 31, 2016) will continue to support
the company.

Outlook: Stable

CRISIL believes SAPL will continue to benefit over the medium term
from the extensive experience of its promoters. The outlook may be
revised to 'Positive' if sustained revenue, while maintaining
operating margin, results in a better financial risk profile,
especially liquidity. The outlook may be revised to 'Negative' if
financial risk profile, particularly liquidity weakens further
because of decline in profitability, stretched working capital
cycle; or significant debt-funded capital expenditure.

Incorporated in 2008 in Pune and promoted by technocrats, Mr.
Mayuresh Biware, Mr. Rajendra Salunkhe, and Mr. Rajiv Risbud, SAPL
paints small body parts of four-wheelers for Tier-1 automotive
component suppliers.

For fiscal 2016, net loss was INR4.78 crore on an operating income
of INR74.16 crore, against a net loss of INR5.26 crore on an
operating income of INR60.43 crore for the previous fiscal.


SILK COTTON: CARE Lowers Rating on INR7.52cr LT Loan to 'D'
-----------------------------------------------------------
CARE Ratings has been seeking information from Silk Cotton to
monitor the rating(s) vide e-mail communications/ letters dated
March 8, 2017, March 7, 2017, March 2, 2017, and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the ratings.
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 of Silk Cotton's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING. The rating has been
revised on account of irregularity in servicing of its debt
obligations.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         7.52       CARE D; ISSUER NOT
   Facilities                        COOPERATING; Revised
                                     from CARE B, based on
                                     best available information

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 December 31, 2015, the following
were the rating strengths and weaknesses:

Key Rating Strengths

Experienced management in agro commodity trading; however Silk is
their first venture in the cotton industry Silk's operations are
managed jointly by Mr. Kalpesh Vaghasiya and Mr. Manish Vekariya.
Mr. Kalpesh Vaghasiya has 3 years of experience in trading of agro
commodity business through his firms named D.J. Enterprise and
M.K. Enterprise. Mr. Manish has 3 years of experience in trading
of the agro industry through his firms named Vikash Enterprise and
M.K. Enterprise. Both the partners jointly look after all day-to-
day activities of the firm.

Although the partners have experience in agro commodity trading,
their lack of experience in the cotton industry poses a risk in
terms of availability of material at favorable terms and the
ability to scale up the operations in a highly competitive and
fragmented industry.

Proximity to cotton producing region of Gujarat

Gujarat produces around 32% of total national production of
cotton, whereas Saurashtra region accounts for 65% area of
total cultivation of cotton for the state of Gujarat. Hence,
Silk's presence in cotton-producing region results in benefit
derived from lower logistic expenditure (both on transportation
and storage), easy availability and procurement of raw
materials at effective prices and consistent demand for finished
goods leading to sustainable and clear revenue visibility.

Key Rating Weaknesses

Nascent Stage of operations and stabilization risk associated
recently completed project

Silk has successfully implemented a greenfield project of cotton
ginning and pressing in November 2015 with a cost of INR6.12 crore
which was funded by term loan of INR1.52 crore and remaining
INR4.60 crore by promoter's contribution (including unsecured
loans of INR1.86 crore). The project gearing stands high at 1.23
times. Furthermore, Silk has also availed cash credit facility of
INR6 crore to finance its working capital requirements.

Silk has commenced manufacturing from November 2015. Till
December 27, 2015, Silk has achieved a turnover of INR5.60
crore. As per telephonic confirmation with the banker, the account
has been classified as a Non-Performing Asset (NPA) due to
consistent irregularity in debt servicing.

Constitution as a partnership firm

Silk being a partnership firm, is exposed to inherent risk of
partner's capital being withdrawn at time of personal contingency
and firm being dissolved upon the death/retirement/insolvency of
partners. Moreover, partnership firms have restricted access to
external borrowings as credit worthiness of the promoters would be
key factors affecting credit decision for lenders.

Operating margins susceptible to cotton price fluctuation and
seasonality associated with the cotton industry

Operations of cotton business are seasonal in nature, as sowing
season is done during March to July and harvesting cycle (peak
season) is spread from November to February every year. Prices of
raw material i.e. raw cotton are highly volatile in nature and
depend upon factors like monsoon condition, area under production,
yield for the year, international demand supply scenario, export
policy decided by government and inventory carried forward of last
year. Ginners usually have to procure raw materials at
significantly higher volume to bargain bulk discount from
suppliers. Further cotton being a seasonal crop, the inventory
levels of the entity generally remains high at the end of the
financial year. Thus, aggregate effect of both the above factors
results in exposure of ginners to price volatility risk.

Presence in the highly fragmented industry with limited value
addition and prices and supply for cotton being highly regulated
by the government

Silk is engaged in the cotton ginning and pressing which involves
very limited value addition and hence results in thin
profitability. Moreover, on account of large number of units
operating in cotton ginning business, the competition within
the players remains very high resulting in high fragmentation and
further restricts the profitability. Thus, ginning players
have very low bargaining power against its customer as well as
suppliers.

The cotton prices in India are regulated by government through
Minimum Support Price (MSP) fixed by the government, though due to
huge demand-supply mismatch the prices have rarely been below the
MSP. Moreover, exports of cotton are also regulated by the
government through quota systems to suffice domestic demand for
cotton. Hence, any adverse change in government policy i.e. higher
quota for any particular year, ban on the cotton or cotton yarn
export may negatively impact the prices of raw cotton in domestic
market and could result in lower realizations and profit.

Jasdan-based (Gujarat) Silk was formed in February 2014 as a
partnership firm by Mr. Kalpeshbhai Vaghasiya and Mr. Manishbhai
Vekariya with the main objective to carry out cotton ginning and
pressing. Silk has already started manufacturing activity from
November 2015.


SITA RAM: CARE Reaffirms 'B+' Rating to INR6.56cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of Sita
Ram Rice Mills (SRRM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             6.56       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SRRM continues to
remain constrained by its small scale of operations with low
partners' capital base, low profitability margins, leveraged
capital structure, weak coverage indicators and working capital
intensive nature of operations. The rating is further constrained
by dependence on the vagaries of nature, its presence in
fragmented and competitive nature of industry and partnership
nature of its constitution.

The rating, however, draws comfort from experience of the partners
in processing of rice, favorable manufacturing location and
growing scale of operations.

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

Detailed description of the key rating drivers

Key rating weakness

Small scale of operations though growing: Despite the growth
registered on y-o-y basis in the last 3 financial years (FY14-
FY16, refers to the period April 1 to March 31) the scale of
operations stood small which limits the company's financial
flexibility in times of stress and deprives it from scale
benefits.

Low profitability margin, leverage capital structure and weak
coverage indicators: The profitability margins of the firm
continue to remain low due to low value addition and highly
fragmented nature of industry characterized by intense
competition. The capital structure continues to remain leveraged
on account of high dependence on external borrowings to meet the
working capital requirements coupled with relatively low net worth
base. Furthermore, debt coverage indicators also continue to
remain weak on account of high reliance on external borrowings
coupled with low profitability.

Working capital intensive nature of operations: Operations of the
firm are working capital intensive with average operating cycle of
113 days for FY16. The firm maintains inventory of around two
months during FY16 for smooth running of its production processes
and finished goods to meet the immediate demand of its customers.
The firm provides a credit period of around three months to its
customers and receives a credit period of around a month from its
creditors. The working capital limits remained fully utilized
during peak season (November to January), however, it remained 80%
utilized during the past 12 months ended January 31, 2017.

Business susceptible to the vagaries of nature: Paddy is the major
raw material and the peak paddy procurement season is during
November to January during which the firm builds up raw material
inventory to cater to the milling and processing of rice
throughout the year. Since there is a long time lag between raw
material procurement and liquidation of inventory, the firm is
exposed to the risk of adverse price movement resulting in lower
realization than expected. Fragmented and competitive nature of
industry: The commodity nature of the product makes the industry
highly fragmented, with numerous players operating in the
unorganized sector with very less product differentiation.

Furthermore, the concentration of rice millers around the paddy-
growing regions makes the business intensely competitive.

Key Rating Strengths

Experience of partners in trading and processing of rice: The
partners of the firm have considerable experience varying
up to 3 decades in the trading and processing of paddy through
their association with SRRM.

Favorable manufacturing location SRRM's presence in the Haryana
region gives it an additional advantage over the competitors in
terms of easy availability of the raw material as well as
favorable pricing terms. Moreover, SRRM owing to its location is
in a position to cut on the freight component of incoming raw
materials.

Nissing-based (Haryana) Sita Ram Rice Mills (SRRM) was established
as partnership concern in 1992. The firm is currently being
managed by Mr. Deva Ram, Mr. Rajesh Kumar and Mr. Vinod Kumar
sharing profit and losses equally. SRRM is engaged in milling
processing and trading of basmati rice with an installed capacity
of 4 ton per day (as on March 31, 2016) at its unit located at
Nissing, Haryana. The firm procures the raw material (unprocessed
rice/de-husked paddy) from grain markets mainly located in Haryana
and Uttar Pradesh through commission agents and sells its product
to export houses located in Punjab, Haryana and Delhi.

During FY16 (refers to the period April 1 to March 31), SRRM has
achieved a total operating income (TOI) of INR26.95 crore with PAT
of INR0.04 crore, respectively, as against TOI of INR22.88 crore
with PAT of INR0.03 crore respectively in FY15. The firm has
achieved total TOI of INR18 crore till 10MFY17 (refers to the
period April 1 to January 31; based on the provisional results).


SOUTHERN AGENCIES: ICRA Reaffirms 'B' Rating on INR10cr Loan
------------------------------------------------------------
ICRA Ratings has reaffirmed the long term rating of [ICRA]B for
the INR10.00 crore cash credit limits of Southern Agencies. The
outlook on the long term rating is 'Stable'.

                     Amount
  Facilities       (INR crore)     Ratings
  ----------       -----------     -------
  Cash Credit          10.00       [ICRA] B (Stable) Reaffirmed

Rationale

The rating reaffirmation remains constrained by decline in
operating income by 13% from INR61.81 crore in FY2015 to INR53.50
crore in FY2016 owing to decrease in government orders; weak
financial profile of the firm as characterized by high gearing
levels at 4.88 times as at March 31, 2016 and modest interest
coverage ratio of 1.69 times for FY2016. The rating also take into
account the modest profitability on account of trading nature of
business and risk inherent in the partnership nature of business.
However, the rating draw comfort from SA being the sole authorized
dealer for Godrej Industries in 8 districts of Andhra Pradesh and
Telangana with presence of 20 branches; longstanding experience of
the partners in the wholesale distribution business; and
authorised dealer for IFB Industries, Usha International Limited,
MM Rubber Company Limited etc coupled with the established
position of Godrej Industries in Home appliances, Security and
Interio segment.

Going forward, the ability of the firm to increase its scale of
operations and maintain its profitability will remain the key
rating drivers.

Key rating drivers

Credit Strengths

* Long standing experience of the promoters in the wholesale
   dealership business

* Sole authorized dealer of Godrej Industries in 8 districts
   comprising 20 branches in Andhra Pradesh and Telangana

* Established position of Godrej Industries in the Indian
   Kitchen appliances and furniture segment

Credit Weakness

* Decline in operating income by 13% from INR61.81 crore in
   FY2015 to INR53.50 crore in FY2016 owing to decline in
   government orders

* Weak financial profile of the firm characterized by high
   gearing at 4.88 times as at March 31, 2016, modest interest
   coverage ratio of 1.69 times for FY2016

* Low profitability which is inherent in wholesale dealership
   Business

* Modest scale of operations with operating income at INR53.50
   crore in FY2016 despite the firm being in existence for more
   than six decades

* Risks inherent in partnership nature of business

Description of key rating drivers highlighted:

Southern Agencies is established in 1950 and is a wholesale dealer
of Godrej Industries, IFB Industries Limited, Usha International
Limited etc. The partners of the firm have more than six decades
of experience in the appliance distribution business. From
inception, the firm has been associated with Godrej group. The
firm has its headquarters in Rajahmundry and it has 20 branches in
Kakinada, Visakhapatnam, Srikakulam, Khammam etc located in Andhra
Pradesh and Telangana. The revenue is primarily derived from
Godrej appliances and Godrej Interio contributing to 95% of
revenue in FY2016 with the rest contributed from other brands. The
firm caters to several segments comprising state and central
government departments, Educational Institutions, Corporate, Banks
etc.

The firm has witnessed decline in operating income by 13% in
FY2016 owing to decrease in government orders. The working capital
intensity of the firm has been moderate at 20% in FY2016 primarily
on account of increased inventory levels.

Southern Agencies was established in 1950 as a partnership firm
and is a wholesale dealer for Godrej Products like Refrigerator,
Washing Machines, Air conditioners, Furniture etc. The firm is
also a wholesale dealer for IFB Industries Limited, MM Rubber
Company Limited, Usha International Limited etc. The sales from
Godrej products comprise higher share of revenue. The firm head
office is located in Rajahmundry and is present in 8 districts
with 20 branches in Andhra Pradesh and Telangana.

For FY2016, SA has reported an operating income of INR53.50 crore
and net profit of INR0.54 crore as against an operating income of
INR61.81 crore and net profit of INR0.51 crore in FY2015.


STELLA UDYOG: CARE Assigns B+/A4 Rating to INR7cr Loan
------------------------------------------------------
CARE Ratings has been seeking information from Stella Udyog to
monitor the rating(s) vide e-mail communications/letters dated
March 6, 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 Stella Udyog's bank facilities will
now be denoted as CARE B+/CARE A4; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long/Short-term         7         CARE B+/ CARE A4; ISSUER
   Bank Facilities                   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 June 25, 2015, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Well experienced key promoters

The key partner of Stella; Mr. Prem Prakash Bansal and the other
partners hold an experience of almost a decade in
trading of knitted fabric and textile business through family
concerns namely Yug Industries and Natraj Industries

Key rating Weaknesses

Nascent stage of operations

Stella was established in November 2014 and started its business
operations from January 2015. Stella registered total operating
revenue of INR10.66 crore during 3 months in FY15 (refers to the
period April 01 to March 31). Furthermore, Stella reported PBILDT
and PAT margin of 2.94% and 1.05% respectively during 3 months of
operations. The overall gearing level stood at 2.42 times as on
March 31, 2015. Moreover, Stella's gross cash accruals stood at
INR0.11 crore as on March 31, 2015.

Working capital intensive nature of operations
Stella's operations are working capital intensive due to its
presence in trading activity in the textile industry. The average
working capital utilization remained around 60% during the last
five months since its commencement of business.

Presence in fragmented and competitive industry
Textile Industry in India is highly fragmented with presence of
large number of small and medium scale units. Due to high degree
of fragmentation, small players hold very low bargaining power
against both its customers as well as its suppliers resulting in
such companies operating at very thin profit margins.

Stella was established on November 29, 2014 as a partnership firm
by its partners; Mr. Prem Prakash Bansal to engage in trading
business of knitted fabric which is used for manufacturing of
hosiery garments by its customers. Mr. Prem Prakash Bansal has
jointly promoted this entity with M/s Advaith Investment Ltd (AIL)
which is a family concern and was incorporated as an investment
entity in May 2008. The flagship entity of the promoters namely
Yug Industries which is also engaged in trading of knitted fabric
and hosiery garments since May 2011. The commercial trading
activity of Stella has started from January 2015.


SUNBOND CERAMIC: CRISIL Reaffirms B+ Rating on INR3.5MM Credit
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Sunbond Ceramic Private Limited
(SCPL).

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

   Cash Credit             3.5      CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      0.5      CRISIL B+/Stable (Reaffirmed)

   Term Loan               5.0      CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the company's large working
capital requirement and small scale of operations in the
fragmented tiles industry, and its weak financial risk profile
because of modest networth. Also, liquidity remained constrained,
driven by high bank limit utilisation. These weaknesses are
partially offset by promoters' industry experience, established
customer relationships, and healthy operating margin of 15%.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale in a fragmented industry: Operations remain small,
with operating revenue of INR13.70 crore in fiscal 2016, and will
remain at a similar level over the medium term.

* Large working capital requirement: Working capital requirement
should remain large, driven by receivables and inventory of over
100 and 110 days, respectively. Although operations are supported
by payables, liquidity will remain constrained.

Strength

* Promoters' extensive experience: SCPL's promoters have extensive
experience in the ceramic industry and longstanding relationships
with customers and suppliers, which help manage working capital
cycle.

Outlook: Stable

CRISIL believes SCPL will continue to benefit from its promoters'
extensive industry experience, and will maintain healthy
profitability. The outlook may be revised to 'Positive' if accrual
increases and working capital cycle improves. The outlook may be
revised to 'Negative' if the financial risk profile weakens
because of decline in accrual; large, debt-funded capital
expenditure; or increase in working capital requirement.

Incorporated in 2013, SCPL is a Morbi, Gujarat-based company. It
manufactures digital wall tiles. The company is owned and managed
by Mr. Bharat Saradva, Mr. Manojbhai Kagathara, and their family
members. The company commenced commercial production in April
2014.

In fiscal 2016, SCPL had a net profit of INR11 lakh on net sales
of INR13.70 crore, against a net profit of INR1 lakh on net sales
of INR16.20 crore in fiscal 2015.


SUPERTEX INDUSTRIES: CRISIL Cuts Rating on INR7.5MM Loan to B+
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Supertex Industries Limited to 'CRISIL B+/Stable'
from 'CRISIL BB-/Stable', and assigned its 'CRISIL A4' rating to
the short-term facility.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             7.5       CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Export Packing          3.5       CRISIL B+/Stable (Downgraded
   Credit                            from 'CRISIL BB-/Stable')

   Letter of Credit        5.0       CRISIL A4 (Reassigned)

   Proposed Long Term      4.0       CRISIL B+/Stable (Downgraded
   Bank Loan Facility                from 'CRISIL BB-/Stable')

The downgrade reflects deterioration in financial risk profile due
to decline in profitability to 1.7% in fiscal 2016 from 2.7% in
fiscal 2015 on account of higher trading and reduced exports.
Consequently, total outside liabilities to adjusted networth
(TOLANW) ratio weakened to 1.3 times as on March 31, 2016, from
0.6 time as on March 31, 2015. Interest coverage ratio also
declined to 1.6 times in fiscal 2016 from above 2 times
historically. Operating margin will remain at around 2% over the
medium term, leading to a below-average financial risk profile.

The downgrade also reflects Supertex's deteriorated working
capital management marked by gross current asset (GCA) days of 211
days as on March 31, 2016 against 185 days as on March 31, 2015
led by higher receivables due to delayed payments in fabric
trading. CRISIL believes Supertex's GCA will remain at around 190-
200 days over medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in the intensely competitive
polyester yarn industry: With revenue of INR91 crore in fiscal
2016, scale remains small in the competitive polyester yarn
segment, which prevents the company from deriving benefits of
economies of scale.

* Large working capital requirement: Gross current assets were
over 211 days as on March 31, 2016, due to stretched receivables
of 90-150 days in the five years ended March 2016.

* Average financial risk profile: Networth was small, TOLANW ratio
moderate, and debt protection metrics subdued.

Strength

* Extensive experience of promoters and established relationship
with customers and suppliers: Presence of around three decades in
the polyester yarn industry has enabled the promoters to establish
healthy relationship with customers and suppliers.
Outlook: Stable

CRISIL believes Supertex will continue to benefit over the medium
term from its promoters' extensive experience and established
relationship with customers. The outlook may be revised to
'Positive' if scale of operations or profitability increases
substantially, or if working capital cycle improves. The outlook
may be revised to 'Negative' in case of a steep decline in
profitability margins or significant deterioration in capital
structure due to further stretch in working capital cycle.

Incorporated in July 1986 as Super Tex-O-Twist Pvt Ltd and
reconstituted as a public limited company in March 1992, Supertex
manufactures draw-warped polyester yarn, polyester texturised and
twisted yarn, and sized beams of polyester filament yarn. The
company, promoted by Mumbai-based Mishra family, also trades in
polyester fabric. Facilities are in Dharampur, Gujarat; and
Silvassa, Dadra and Nagar Haveli.

Profit after tax (PAT) was INR0.2 crore on net sales of INR91
crore in fiscal 2016, against a PAT of INR0.73 crore on net sales
of INR69.52 crore in fiscal 2015. The PAT was INR0.42 crore on net
sales of INR63.8 crore during April-December 2016.


SURABHI AGRICO: CARE Assigns 'B' Rating to INR10cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Surabhi
Agrico Private Limited (SAP), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               10       CARE B; Stable Assigned

Detailed Rationale

The rating assigned to the bank facilities of SAP is primarily
constrained by limited experience of the promoters in beverage
industry, small scale of operations though growing, net losses,
leveraged capital structure and elongated inventory holding. The
ratings are further constrained by fluctuation in raw material
prices, dependency on agro-climatic conditions, perishable nature
of product, along with stiff competition in the segment. The
ratings constraints are partially offset association with reputed
brand and growing scale of operations.

Going forward, the ability of SAP to profitably increase its scale
up its operations while improving its capital structure shall be
the key rating sensitivities.

Detailed description of the key rating drivers

Key rating weakness

Small scale of operations though growing: Despite the growth
registered on y-o-y basis in last 3 financial years (FY14-FY16
[refers to the period April 1 to March 31]), the scale of
operations stood small which limits the company's financial
flexibility in times of stress and deprives it from scale
benefits.

Net losses coupled with leveraged capital structure: The firm has
incurred net losses during FY16 owing to high depreciation cost.
Furthermore, the capital structure stood highly leveraged mainly
on account of net losses which resulted in erosion of net worth
base coupled with high dependence on bank borrowings to meet
the working capital requirements.

Elongated inventory holding: The operating cycle of the company
remained working capital intensive primarily on account of high
inventory holdings in form of packaging material which is reusable
in nature (glass bottles and plastic crates). The company is
required to maintain adequate inventory of raw material for smooth
running of its production processes and finished good also to meet
the immediately of its customers. Combining all it entails to very
high inventory holding. Furthermore, the high working capital
requirements were met largely through bank borrowings which
resulted in almost full of its working capital limits for last 12
months period ended December 31, 2016.

Raw material prices dependent on agro-climactic conditions and
perishable nature of product: The major raw material for the
company consists of sugar and fruit pulp, the prices of which are
highly fluctuating because of the seasonal availability of pulp
and other factors like irregularity of climatic condition to
unpredictable yields.

Seasonal nature of business: The company's nature of business is
seasonal, and most of the sales are in the summer season. During
the peak season the company operates at its full capacity with
extended shifts as against the regular shift of eight hours during
the remaining period of the year.

Competition from organized and unorganized sectors: The nature of
domestic food and beverage market is highly competitive with
presence of highly established players. The company is exposed to
intense competition from organized domestic and international
brands

Limited experience of promoters in food processing industry: The
company is currently managed by Mr. Anil Kumar Maurya and Mr.
Munna Lal who have limited experience in food processing industry.
The promoters have ventured into beverage industry due to the
increasing demand of beverages products.

Association with a reputed brand and assured product off take: SAP
has entered into a franchisee agreement with Parle Agro Products
Limited (PAPL) for manufacturing, packing, selling and
distribution of beverage products. The products manufactured by
SAP are as per the standards layout by Parle Agro Private Limited
(PAPL). Being the product is being sold under the established and
reputed brand which ensures demand for its products which in turn
easily product off take.

Uttar Pradesh-based Surabhi Agrico Private Limited (SAP) was
incorporated in 2011 by Mr. Anil Kumar Maurya and Mr
Munna Lal and commenced its operations in September 2013. SAP is
engaged in the manufacturing of fruit beverages and
soda. The main raw materials, ie, fruit pulp, along with others
like plastic caps, bottles, carbon dioxide are procured from
the approved vendors of Parle Agro Private Limited (PAPL). The
company procures flavors, essence, concentrates only
from PAPL. The company is currently selling the product in the
state of Uttar Pradesh.

In FY16, SAP has achieved a total operating income (TOI) of
INR4.72 crore, as against TOI of INR2.66 crore, in FY15. The
company has achieved TOI of INR5.07 crore in 9MFY17 (refers to the
period April 1 to December 31, based on the
provisional results).


SVR ELECTRICALS: ICRA Reaffirms 'B' Rating on INR7.25cr Loan
------------------------------------------------------------
ICRA Ratings has reaffirmed the long term rating at [ICRA]B to the
INR7.25 crore (increased from INR7.00 crore) cash credit facility
and the short term rating at [ICRA]A4 to the INR12.00 crore
(increased from INR7.00 crore) non-fund based limits of SVR
Electricals Private Limited (SVR). ICRA has also reaffirmed the
ratings of [ICRA]B/A4 to INR5.75 crore (increased from INR2.85
crore) unallocated limits of SVR. The outlook on the long-term
rating is 'Stable'.

                     Amount
  Facilities       (INR crore)    Ratings
  ----------       -----------    -------
  Cash Credit           7.25      [ICRA]B (Stable) Reaffirmed

  Non Fund based       12.00      [ICRA]A4 Reaffirmed

  Unallocated Amount    5.75      [ICRA]B/A4 (Stable); reaffirmed

Rationale

The ratings continue to be constrained by modest scale of
operations of the firm, moderate financial profile of the company
characterised by high gearing, low profitability and moderate
coverage indicators, and high customer and geographical
concentration risks as majority of the sales are made to Andhra
Pradesh and Telangana state power distribution companies. The
ratings are also constrained by high competition from other
players in the transformer manufacturing industry where the orders
are primarily obtained through bidding for tenders from power
distribution companies. The ratings, however, derive comfort from
the vast experience of the management in the transformer
manufacturing industry and established presence of the company in
Guntur.

The ability of the company to increase its scale of operations and
profitability will be the key rating sensitivities going forward.

Key rating drivers

Credit Strengths

* Vast experience of the promoters in the transformer
    manufacturing industry

* Established relationship and repeat orders from power
   distribution companies in AP and Telangana


Credit Weaknesses

* Moderate financial profile of the company characterized
   by moderate profitability and coverage indicators

* High geographical concentration risk as majority of its
   customers are based in Andhra Pradesh and Telangana

* Competition from other players as the orders have to be
   generally obtained through tenders

Description of key rating drivers highlighted:

The promoter has more than three decades of experience in the
field of transformers. He was initially involved in repairing of
transformers and subsequently entered the transformer
manufacturing business in 1978.

In FY2016, SVR derived majority of revenue from Andhra Pradesh and
Telangana power distribution companies while a small portion of
revenue was also from private parties. The customer concentration
of the company is generally high as the company focuses primarily
on power distribution companies. In FY2016, two customers
contributed to 85% of the total revenues.

The operating income of the company witnessed a significant growth
from INR15.02 crore in FY2015 to Rs. 30.91 crore in FY2016, after
being adversely impacted in FY2014 and FY2015 with state
bifurcation issues. This was owing to an increase in orders from
power corporations after the bifurcation of Andhra Pradesh. The
operating margins, however decreased from 5.83% in FY2015 to 3.73%
in FY2016 owing to increase in input costs and decrease in
realizations. The gearing level of the company remains high at
1.51 times as on March 31, 2016 owing to high working capital
borrowings and unsecured loans. The coverage indicators remained
modest in FY2016 with Interest coverage of 1.15, Total
debt/OPBITDA of 6.10, NCA/debt of 3.73% and DSCR of 0.92.

SVR Electricals Private Limited was established in 1978 by Mr.
Venkateswara Rao in Guntur district in Andhra Pradesh. It started
its operations as a service provider for transformers and
subsequently ventured into manufacturing of transformers in 1992.
The company is involved in manufacturing of various ranges of
distribution transformers. Majority of its clients are Andhra
Pradesh and Telangana government power distribution companies.

Recent Results:

The company recorded net profit of INR0.09 crore on an operating
income of INR30.91 crore for the year ending March 31, 2016
against net profit of INR0.01 crore on an operating income of
INR15.02 crore for the year ending March 31, 2015.


TECHNOBIT INDUSTRIES: CARE Assigns 'B' Rating to INR7.32cr Loan
---------------------------------------------------------------
CARE Ratings has been seeking information from Technobit
Industries Private Limited to monitor the rating(s) vide e-mail
communications/ letters dated February 22, 2017, February 15,
2017, February 6, 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 Technobit Industries Private Limited's
bank facilities will now be denoted as CARE B/ CARE A4; ISSUER NOT
COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         7.32       CARE B; ISSUER NOT
   Facilities                        COOPERATING

   Long-term/Short        2.10       CARE B/CARE A4; ISSUER NOT
   Term Bank Facilities              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 November 13, 2015, the following
were the rating strengths and weaknesses:

Key Rating Strengths

Experienced Promoters

Mr. Sureshbhai Chaudhary has overall 13 years of experience of
which nearly 10 years of experience as a partner in M/s. Baroda
Bitumen Company (the firm discontinued its operations in 2011) in
which was engaged in trading of industrial bitumen. Since 2013, he
is doing business of manufacturing of industrial bitumen as a
proprietor through M/s. Hindustan Infra Product. He will look
after the marketing of bitumen products.

Another promoter, Mr. Ashokkumar Chaudhary also has overall
experience of 13 years. He was also working in Baroda Bitumen
Company as a partner till 2010. Since then he is working as a
proprietor in M/s. Arbuda Logistic which is into transport
services of bitumen products. He will look after manufacturing
operations of the business.

Key Rating Weaknesses

Implementation and stabilization risk associated with the highly
leveraged project

TIPL is implementing a greenfield project of manufacturing
petrochemicals products like bitumen road emulsions, industrial
asphalt and other products with the estimated cost of INR3.11
crore which is proposed to be funded by term loan of INR2.25 crore
and the remaining INR0.86 crore by promoter's contribution. The
project gearing stands high at 2.62 times. Furthermore, TIPL has
also put proposal of cash credit facility of INR5.07 crore to
finance its working capital requirements.

Orders for machines have been placed and promoters have infused
their part of contribution. The promoters have brought in INR0.73
crore (85%) out of their contribution and will be funded through
term loan once sanctioned. TIPL is expecting to commence
manufacturing from January 2016. Owing to the high reliance on the
external funding for the project implementation, any delay in the
project implementation or stabilization of operations may result
in lower than envisaged cash flows. Furthermore, financial closure
has not been achieved till November 18, 2015 and TIPL has also not
entered into any kind of arrangements or agreements with its
prospective suppliers or customers and hence any delay in the same
may also result in delay in project stabilization and
underachievement in projected performance.

Susceptibility of margins to volatility in petro prices and
exchange rate fluctuation

The key raw materials used for manufacturing bitumen emulsion are
Bitumen 60/70 grade (primarily used as components of road
construction) which are derivatives of crude oil. The prices of
raw materials reflect the volatility associated with the crude oil
and in the past few years there has been wide fluctuations in raw
material prices.

TIPL plans to imports raw material from Iran which is the base raw
material for manufacturing of Bitumen. TIPL plans to import 80% of
the raw material rest through domestic suppliers. Since the
company does not resort to any hedging mechanism for its imports,
it is exposed to risk on account of foreign exchange fluctuations.

Baroda-based (Gujarat) TIPL was incorporated in August 2015 as a
private limited company by Mr. Ashokkumar Chaudhary, Mrs Bhumika
Chaudhary, Mr. Sureshbhai Chaudhary, Mr. Devarsh M Pandya, and
Miss Mira D Pandya (Badiyani) with the main object to manufacture
petrochemicals products like bitumen road emulsions, industrial
asphalt and other products of bitumen emulsion. TIPL is expecting
to commence manufacturing activity from January 2016. TIPL will
import bitumen 60/70 grade (key raw material) majority from Iran
and to some extent from domestic suppliers. The products
manufactured by the company will find its applications in road
construction & repairing, construction of water tank and bridges.


UP TELELINKS: ICRA Hikes Rating on INR7.67cr LT Loan to BB-
-----------------------------------------------------------
ICRA Ratings has upgraded the long term rating at [ICRA]BB- from
[ICRA]B+ for the INR7.67 crore fund based limits of UP Telelinks.
ICRA has also upgraded the long term rating at [ICRA]BB- from
[ICRA] B+ for INR2.03 crore unallocated limits of the company.
ICRA has reaffirmed the short term rating at [ICRA]A4 for the
INR0.30 crore non fund based limits of the company.  The outlook
on the long term rating is assigned at 'Stable'.

                     Amount
  Facilities       (INR crore)     Ratings
  ----------       -----------     -------
  Long Term, Fund
  Based Limits          7.67       [ICRA] BB- (Stable); revised
                                   from [ICRA]B+

  Unallocated           2.03       [ICRA] BB- (Stable); revised
                                   from [ICRA]B+

  Short Term, Non
  Fund based            0.30       [ICRA]A4; reaffirmed

Rationale

The ratings upgrade factors in improvement in net working capital
intensity of the company, which improved from 57% in FY2015 to 36%
in FY2016 on account of decline in debtor days and inventory days.
The ratings also factor in improved capitalization indicators with
gearing of 0.86 times as on March 31, 2016. ICRA's ratings
continue to take into account UPTL's experienced management and
its long track record in the cable manufacturing industry.

However, the ratings continue to be constrained by the high client
concentration risk twith Ericsson India Private Limited being its
sole customer for telecom cable kits. ICRA also takes note of the
presence of large organized players and smaller players in the
unorganized sector, which results in high competitive intensity.
Going forward, the company's ability to ramp up its scale of
operations, while improving its profitability, will be the key
rating sensitivities.

Key rating drivers

Credit Strengths

* Experienced management with long track record in the
   cables industry

* Diversification into new (higher value add) segments
   like Battery Operated Rickshaw and cable kits.

* Roll out of 4G services to increase demand for telecom
   cables.

* Improved working capital management, with improvement of
   net working capital intensity from 57% in FY2015 to 36%
   in FY2016.

Credit Weakness

* Ericsson being the highest revenue contributor for UPTL
   exposes the company to client concentration risk. However,
   presence of agreement and long standing relation between
   the two mitigates the risk.

* Highly competitive market with presence of large organized
   players and smaller players in the unorganized segment

* Modest scale of operations limits bargaining power with
   Customers

* Moderate debt protection metrics as indicated by NCA/Debt
   of 14.50%, Interest cover of 2.29 times and Total debt/OPBDITA
   of 2.99 times as on March 31, 2016. However, they have shown
   improvement compared to previous year.

Description of key rating drivers highlighted:

UP Telelinks was incorporated in the year 1985 with its promoters
having more than 30 years of experience in telecom sector. In
FY2015, UPTL had started with manufacturing of battery operated E-
Rickshaws at its existing manufacturing facility of Pant Nagar. In
FY2017, the company has acquired permission for sales of E-
Rickshaws to dealers in states other than Delhi and NCR i.e.,
Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh and Uttarakhand.
Permission to operate in new states will help the company to
increase its revenue contribution from E-rickshaws going forward.
Conversion of 3G network to 4G network has increased the demand
for 4G telecom cable kits. Shift of customer base from automobile
industry to telecom industry resulted in decline of debtor days
for the company. Also, management has moved towards reduced stock
maintenance resulting in decline in inventory days for the
company. Decline in debtor days and inventory days resulted in
improved net working capital intensity for the company. The
ratings are however, constrained by high client concentration risk
with Ericsson India Private limited being its only customer for
telecom cable kits. Debt protection metric of the company remain
at moderate level with NCA/Total debt of 14.50%, Total Debt/
OPBDITA of 2.99 times and interest coverage of 2.29 times in
FY2016.

UPTL was incorporated in 1985 by Mr. R.K. Jain and his family and
associates. The company commenced operations as a manufacturer of
telecom cables, primarily Jelly Filled Telecom Cables (JFTC) for
customers like Bharat Sanchar Nigam Limited (BSNL) and Mahanagar
Telephone Nigam Limited (MTNL). Thereafter, the company ventured
into the power cables segment in FY 2007. The company supplies
telecom power cables to Ericsson India Private Limited. From
FY2015 onwards, UPTL has diversified its product profile and has
commenced manufacturing of battery operated rickshaws. UPTL's
manufacturing facilities are located in Ghaziabad and Pant Nagar.
The company has a manufacturing capacity of 0.021 million core Kms
for power cables and 18000 numbers of E-Rickshaws.


VISHAL CONDUIT: CARE Revises Rating on INR9cr LT Loan to B-/A4
--------------------------------------------------------------
CARE Ratings has been seeking information from Vishal Conduit
Products Private Limited 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 company has
not provided the requisite information for monitoring the ratings.
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 Vishal Conduit Products Private Limited's
bank facilities will now be denoted as CARE B-/CARE A4; ISSUER NOT
COOPERATING.

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Bank         5         CARE B-/ CARE A4;
   Facilities/Short-                ISSUER NOT COOPERATING;
   term Bank Facilities             Revised from CARE B/CARE A4
                                    on basis of best available
                                    information

The long term rating has been revised on account of decline in
scale of operations, profitability margins and elongation of
operating cycle. The ratings continue to be constrained by highly
leveraged capital structure with weak debt service coverage
indicators. The aforesaid constraints are partially offset by the
experience of the promoters with 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(s).

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters with long track record of operations: VCPL
has a track record of being engaged in steel manufacturing
business for around a decade. Mr. S Mohinder Singh, Managing
Director, has more than four decades of experience in similar line
of business. He is actively involved in the strategic planning and
running the day to day operations of the company along with the
other directors and a team of experienced personnel.

Key rating Weaknesses

Small and fluctuating scale of operations with low profitability
margin: VCPL is a relatively small player with total operating
income (TOI) of INR14.58 crore in FY16 (refers to the period April
1 to March 31) and and net worth base of INR0.74 crore as on March
31, 2016. The profitability margins stood low marked by PBILDT
margin of 1.04% in FY16. Moroever, the company incurred net loss
in FY16 due to high interest and depreciation expenses.

Leveraged capital structure and weak debt coverage indicators: The
capital structure of VCPL stood leveraged marked by overall
gearing ratio of 12.29 times as on March 31, 2016. Additionally,
the debt coverage indicators remained weak marked by interest
coverage ratio of 0.30x in FY16 and total debt to GCA ratio of (-
25.09)x for FY16. Elongation of operating cycle: The operating
cycle elongated from 56 days for FY15 to 127 days for FY16.

Vishal Conduit Products Pvt. Ltd. (VCPL), incorporated in 2005 by
the Singh family of Jalandhar Punjab with the objective of
manufacturing of iron & steel products. Since inception, the
company is engaged in manufacturing of mild steel (MS) ingots and
mild steel (MS) pipes. The facility of the company is located at
Jalandhar, Punjab with an annual installed capacity of 12,000 MT
per annum for (MS) ingots and 1200 MT per annum for (MS) pipes.
Mr. S Mohinder Singh (Graduate), Managing Director, looks after
the day to day operations of the entity. VCPL also undertook
trading of iron and steel products in the last three years but the
same accounted for less than 5%.

In FY16 (refers to the period of April 1 to March 31), the company
has achieved total operating income (TOI) of INR14.58
crore with net loss of INR0.56 crore as against the TOI of
INR23.87 crore with PAT of INR0.04 crore in FY15.


YARNCOMS INDIA: CARE Assigns 'B' Rating to INR5.0cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Yarncoms India Private Limited (YIPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             5.00       CARE B; Stable Assigned

   Short-term Bank
   Facilities             3.50       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of YIPL are
constrained by small scale of operations and low net worth base of
the company, fluctuations in total operating income during review
period (FY14- FY16 [refers to the period April 1 to March 31]),
leveraged capital structure and weak debt coverage indicators and
profitability margins are susceptible to fluctuation in foreign
exchange prices. The ratings are, however, underpinned by the
experienced promoters, satisfactory profitability margins and
comfortable working capital cycle.

Going forward, the company's ability to increase its scale of
operations and improve the profitability margins in competitive
environment, improve the capital structure and debt coverage
indicators and manage working capital requirements efficiently
would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Small scale of operations and low net worth base of the company:
YIPL was established in the year 2012. The scale of operations of
the company is small marked by total operating income (TOI) of
INR14.73 crore in FY16. Furthermore, the net worth of the company
is also small at INR1.20 crore as on March 31, 2016, as compared
with other peers in the industry.

* Fluctuations in total operating income during review period: The
total operating income of the company increased from INR14.54
crore in FY14 to INR23 crore in FY15 representing growth of 58.22%
due to increase in number of orders from the existing customers.
However, the total operating income of the company declined to
INR14.73 crore in FY16 due to lower orders undertaken on account
of higher sales discount and credit period demanded by the
customers. During 10MFY17 (Provisional), the company has achieved
total operating income of INR14.50 crore due to addition of new
product (textile machinery).

* Leveraged capital structure and weak debt coverage indicators:
YIPL has leveraged capital structure marked by overall gearing of
4.93x as on March 31, 2016, due to sanction of new term loan to
purchase land and office building coupled with low net worth.

YIPL has weak debt coverage indicators during FY16. Total debt/GCA
deteriorated from 3.39x in FY15 to 18.12x in FY16 due to increase
in long-term loan and low gross cash accruals. PBILDT interest
coverage of the company has been decreasing y-o-y from 5.07x in
FY14 to 1.95x in FY16 due to increasing interest costs.

* Profitability margins are susceptible to fluctuation in foreign
exchange prices: YIPL has 100% export sales. So, the profitability
margins are susceptible to fluctuation in foreign exchange prices.

Key Rating Strengths

* Experience of the promoters for more than one decade in yarn and
fabric exporting industry:  YIPL was incorporated in the year 2012
and promoted by Mr. C Nagamanisekaran and Mr. Krishnaswamy
Arunagiri. Both the directors have more than one decade of
experience in yarn and fabric exporting industry. Through their
experience in this industry, they have established healthy
relationship with key suppliers and customers.

* Satisfactory profitability margins:  YIPL has satisfactory
profitability margins during review period. During FY14 and FY15,
the PBILDT margin of the company is same within the range of
2.81%-2.82%. However, the PBILDT margin of YIPL increased by 252
bps from 2.81% in FY15 to 5.33% in FY16. During FY16, YIPL added
some textile industry related machinery to its trading business
portfolio which carries higher margin. The PAT margin of the YIPL
has been declining y-o-y from 1.50% in FY14 to 1.15% in FY16 due
to increase in interest costs and depreciation expense.

* Comfortable working capital cycle:  YIPL has comfortable
operating cycle during review period. However, the operating cycle
of the company slightly deteriorated from 26 days in FY15 to 29
days in FY16 and remained comfortable. The inventory period of
YIPL stood at one day in FY16 due to effective management of
purchases and sales. The company allows the credit period of 10-20
days to its customers. YIPL is discounting bills from its
customers with banks by using foreign documentary bill negotiation
(FDBN) facility. The company makes the payment to its suppliers
within 5-10 days.

Coimbatore-based Yarncoms India Private Limited (YIPL) was
incorporated in the year 2012 and promoted by Mr. C
Nagamanisekaran and Mr. Krishnaswamy Arunagiri. The company is
engaged in trading of Yarn and Fabric. YIPL is Export Oriented
Unit (EOU) i.e., 100% of the exports mainly to Srilanka and other
countries like Burma; Myanmar. YIPL procures Yarn and Fabric from
suppliers like K K P Spinning Mills Private Limited, Saranya
Spinning Mills Private Limited and Jayalakshmi spinners. Main
customers of the company are Prabha Textiles (Srilanka) and Tex
Lanka (Srilanka). Sometimes, YIPL also trades machinery relating
to textile industry.

In FY16, YIPL reported a Profit after Tax (PAT) of INR 0.17 crore
on a total operating income of INR14.73 crore, as against a
PAT and TOI of INR0.29 crore and INR23.00 crore, respectively, in
FY15.



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


CIMB NIAGA: Fitch Affirms 'bb' Rating Viability
-----------------------------------------------
PT Fitch Ratings Indonesia has affirmed the National ratings of
four foreign banks and finance companies of their two children.
Fitch also has affirmed the international ratings on these
entities. Outlook on the ratings is Stable them.

Issuers are:

- PT Bank CIMB Niaga Tbk (CIMB Niaga)
- PT Bank Maybank Indonesia Tbk (Maybank Indonesia)
- PT Bank OCBC NISP Tbk (OCBC NISP)
- PT Bank UOB Indonesia (UOBI),
- PT CIMB Niaga Auto Finance (CNAF),
- PT Maybank Indonesia Finance (MIF)

PT Fitch Ratings Indonesia also has maintained the rating Watch
Negative (RWN) on the National rating Long Term PT Wahana
Ottomitra Multiartha Tbk (WOMF) at 'AA (idn)' , Rating Watch was
delayed following the completion of the sale of shares of the
company by its parent company.

National ranking in the category of 'AAA' indicates the highest
rating Fitch on the national rating scale for Indonesia. This
rating is given to the issuer or debt securities with the
expectation of the lowest default risk relative to other issuers
or debt securities in Indonesia.

National ranking in the category of 'AA' denotes the expectation
of the risk of default is very low relative to other issuers or
debt securities in Indonesia. Credit risk is only slightly
different from issuers or debt securities that are rated highest
in Indonesia.

National Rating 'F1' indicates the capacity to pay its financial
commitments on a timely basis the most robust relative to other
issuers or debt securities in Indonesia. In Fitch national rating
scale, this rating is awarded to the lowest default risk relative
to others in Indonesia. If the specific liquidity profile is
strong, a "+" is added to the ratings given.

CONSIDERATION OF RANKINGS
RATINGS S, RANK NATIONAL AND SUPPORT

Ranked S, ranking Support and ranking National on four banks
reflect Fitch's view that the respective parent companies, which
all have a higher rank, has a strong tendency to provide timely
support to its subsidiary , if needed. Rating Long Term Foreign
Currency IDR constrained by the Country Ceiling ranked Indonesia
at 'BBB'.

Fitch will support the view is corroborated by the growing
strategic importance of subsidiaries in Indonesia over the parent
company's franchise in Asia, the majority ownership / control and
strong integration with its shareholders. CIMB Niaga is owned by
CIMB Group Holdings Bhd and Maybank Indonesia majority owned by
Malayan Banking Berhad (Maybank; A- / Negative), which is based in
Malaysia. OCBC NISP and each UOBI majority owned by Overseas-
Chinese Banking Corp (OCBC, 'AA -' / Stable) and United Overseas
Bank Limited (UOB; 'AA -' / Stable), based in Singapore.

National ratings of CNAF and MIF reflects Fitch's expectation of
the probability of extraordinary support of a strong parent
company, if necessary, and take into account their strategic
importance to its parent bank support business expansion in the
consumer financing market which is growing rapidly in Indonesia.
Parent support seen from full ownership and use of the same entity
name, strong operational alignment, and providing financial
support.

Ranked WOMF is approval rating, which reflects Fitch's expectation
on moderate probability of extraordinary support from Maybank
Indonesia, if necessary. RWN reflects Fitch's expectation that the
ratings WOMF after this sale will be based on the intrinsic credit
profile weaker. At this time, Fitch has not made any assessment of
the new shareholder, PT Reliance Capital Management, and its
impact on the post-acquisition WOMF.

VIABILITY RATINGS

Ranked viability and Maybank CIMB Niaga Indonesia at 'bb' reflects
franchise intermediate and capital levels are adequate. The rating
also takes into account the decline of asset quality, which is
reflected in the high ratio of non-performing loans (NPL) and
special (SML) and the level of profitability (return on assets) is
lower compared to its competitors. Ranked viability 'bb' OCBC NISP
account the stable performance, the improved capital position,
which is reflected in the high capital adequacy ratio and asset
quality, the better the results of risk management are more
stringent (reflected in its NPL ratio and SML existing under the
industry average ) compared with Maybank and CIMB Niaga Indonesia,
despite having a smaller franchises.

DEBT RATINGS

The ratings of senior bonds and programs in Rupiah of these banks,
along with the MIF and WOMF, together with the National rank Long
Term and Short Term accordance with Fitch criteria.

Fitch rates the legacy of subordinated bonds of CIMB Niaga,
Indonesia Maybank and OCBC NISP two notches below the anchor
rating issuer (Long-Term National ratings for the subsidiary banks
are ranked based on the support of the parent company). It is
composed of one notch for loss severity, which reflects the status
of subordination and one notch to the risk of non-performance, to
take into account the delay feature of interest and/or principal.

Subordinated debt is based on the framework of Basel III from
Maybank Indonesia and UOBI assessed using the same approach,
because they have the same features as delay subordinated debt
legacy. Notching for non-performance risk is one, compared to two
in general because of the risk of non-performance partially
neutralized by the potential support of the parent company.

SENSITIVITY RATINGS

RATINGS S, NATIONAL RATING AND SUPPORT

Potential increase in banks IDRs may occur if the rankings Country
Ceiling Indonesia rose, and also if the rankings majority
shareholders of these banks remain above the Country Ceiling
Indonesia. Support rating will remain except when there are
changes in the ranking of some top notch IDRs of each parent
company. Potential increase in national rankings because there is
no highest ranking in the national scale.

Pressure ratings downgrade may occur if there is a progression
that leads to weakening of shareholder support, such as a change
of ownership or weakening of the financial capacity of a
significant shareholder, although Fitch believes this will not
happen in the short to medium term. The weakening financial
profile standalone (independent) less likely IDRs and National
affect these banks, except for factors that affect shareholder
support is also weakening.

Ownership dilution or weakening of support from the parent company
will put pressure on the ratings downgrade CNAF and MIF, including
the possibility of downgrades on some level. However, Fitch's view
that the prospect of a low in the next time span because of the
strategic role of a subsidiary in the consumer finance business
development holding company in Indonesia. Continuous weakening
significant contribution to the parent MIF CNAF and those that
lead to a reassessment of the importance of their business can
also press down the rankings.

The upgrade can occur if Fitch viewed each CNAF and MIF become a
core subsidiary of CIMB Niaga and Maybank Indonesia. This will
equalize the CNAF rankings and national rankings MIF with each of
their parent company, if seen evidence of further particular on a
stronger operational integration between the parent and subsidiary
companies.

Fitch will resolve the Rating Watch Negative on the ratings WOMF
on completion of the change of ownership occurs, which is likely
to result in a downgrade of several notches on the National Long-
Term Rating WOMF for standalone profile (standalone) companies are
moderate. Fitch also analyzes the credit profile of PT Reliance
Capital Management and the relationship between WOMF and Reliance
group to assess how WOMF ratings can be supported or restricted
under new ownership. Fitch is likely to affirm the ratings at this
time if the transaction does not proceed.

RATINGS VIABILITY

Rise in the ranks Viability can occur if the franchise is growing
in proportion with the major banks in Indonesia, but with
profitability-compliance risks are maintained, capital high core,
balance sheet is dominated of funding by third party funding cost
and quality of assets the good one. The downgrade could occur over
the deterioration of asset quality and capitalization
significantly and / or a clear weakening of the liquidity profile,
especially if economic conditions worsen.

DEBT RATINGS

Changes to Long-Term National ratings and short on banks and their
finance subsidiaries may affect the ratings of the bonds.

The complete list of rankings:

CIMB Niaga

Rating Long Term Foreign Currency IDR affirmed at 'BBB'; Outlook
  Stable
Rating Long Term Foreign Currency IDR affirmed at 'F3'
  rating viability is affirmed at 'bb'
Rating Support affirmed at '2'
National Rating affirmed at Long-term 'AAA (idn)'; Outlook
  Stable
National Rating Short-term affirmed at 'F1 + (idn)'
Bond Ratings Senior IDR is affirmed at 'AAA (idn)'
  rating of the Subordinated Bonds IDR is affirmed at 'AA (idn)'

Maybank Indonesia

Rating Long Term Foreign Currency IDR affirmed at ' BBB ';
  Outlook Stable
Rating Long Term Foreign Currency IDR affirmed at 'F3'
  rating viability is affirmed at 'bb'
Rating Support affirmed at '2'
National Rating affirmed at Long-term 'AAA (idn)'; Outlook
  Stable
National Rating Short-term affirmed at 'F1 + (idn)'
  rating of the Subordinated Bonds is affirmed at 'AA (idn)'
Rating Program Bonds Senior Rupiah and stages below is affirmed
  at 'AAA (idn)'
Rating Program Bonds Senior sharia rupiah affirmed at
  'AAA (idn)' rating of the Subordinated Bonds is based on the
framework of Basel III is affirmed at 'AA (idn)' rating
Program Subordinated Bonds I / 2016 is based on the framework of
Basel III and the stages below is affirmed at 'AA (idn)'

OCBC NISP

Term Ranking The length of Foreign Currency IDR affirmed at
  'BBB'; Outlook Stable
Rating Long-Term Local Currency IDR affirmed at 'A-'; Outlook
   Stable
Rating Long Term Foreign Currency IDR affirmed at 'F3'
  rating viability is affirmed at 'bb'
Rating Support affirmed at '2'
National Rating affirmed at Long-term 'AAA (idn)'; Outlook
  Stable
National Rating Short-term affirmed at 'F1 + (idn)'
Bond Ratings Senior IDR is affirmed at 'AAA (idn)'
  rating of the Subordinated Bonds is affirmed at 'AA (idn)

UOBI

National Rating Long-term affirmed at' AAA (idn) '; Outlook
  Stable
National Rating Short-term affirmed at 'F1 + (idn)'
  rating of the Subordinated Bonds is based on the framework of
  Basel III is affirmed at 'AA (idn)
Bond Ratings Senior IDR is affirmed at' AAA (idn) 'and' F1 +
(idn)'

CNAF:

Rating national Long-term affirmed at 'AA + (idn)'; Outlook
  Stable
National Rating affirmed at Short-term 'F1 + (idn)'

MIF

National Rating affirmed at Long-term 'AA + (idn)'; Outlook
  Stable
National Rating Short-term affirmed at 'F1 + (idn)'
Bond Ratings Senior IDR is affirmed at 'AA + (idn)'
Rating Program Bonds Senior IDR is affirmed at 'AA + (idn)' and
  'F1 + (idn)'

WOMF

National Rating Term long at 'AA (idn)' and maintained on rating
  Watch Negative
National rating Short-term at 'F1 + (idn)' and maintained on
  rating Watch Negative
Rating on bonds Senior at 'AA (idn)' and maintained on rating
  Watch Negative
Program Bonds rupiah II / 2016 and the stages below at
  'AA (idn)' and 'F1 + (idn)', maintained on rating Watch
  Negative



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


TELLMECLUB: Hid Operating Losses Since September 2014
-----------------------------------------------------
Tellmeclub, a failed travel agency which offered budget overseas
tours repeatedly engaged in window dressing at least since 2014
before finally failing to issue air tickets for its customers,
according to its petition to commence bankruptcy proceedings
obtained by Kyodo News on March 30.

Kyodo relates that Tellmeclub incurred an operating loss of more
than JPY1.5 billion (US$13.5 million) in its last financial year
through September 2016 but reported an operating profit of JPY110
million.

The travel agency has come under fire following a spate of
complaints from customers that they have not received flight
tickets from the company, which now owes a total of
JPY15.1 billion, including JPY9.9 billion to 36,000 customers,
Kyodo relates citing the agency's lawyer.

The filing by Tellmeclub on March 27 is the fourth-largest
bankruptcy in Japan's tourism industry, according to credit
research agency Tokyo Shoko Research, Kyodo relays.

In the financial term, the company had reported a net worth of
JPY450 million but is believed to have actually suffered a
negative net worth of JPY7.4 billion, Kyodo discloses.

Kyodo, citing the company's petition, says the travel agency fell
into an operating loss since the year through September 2014, but
gave the appearance it had secured profits by underreporting
initial sales costs and administrative expenses.

The company was also found to have presented different financial
documents to banks and the tax authority. It pretended to have
secured profits so as to continue obtaining financing from
lenders, sources close to the matter said, Kyodo relates.

Tellmeclub, established in 1998, found it difficult to provide
low-cost tours to destinations such as Hawaii and Guam due to
rising advertising and labor costs, as well as the yen's weakness,
which pushed up its foreign-currency-denominated liabilities,
Kyodo reports citing research firm Teikoku Databank.

Kyodo notes that the agency failed to pay roughly JPY400 million
to secure air tickets to the International Air Transport
Association, a global airlines association by the March 23
deadline.

Until the date, Tellmeclub received roughly 1,000 to 2,000 new
reservations per day and collected about JPY10 billion as advance
payment for tours, according to Kyodo.

Instead of using the payment for offering travel services, the
company used the money for other purposes such as advertising
fees, and continued running on a shoestring until it had only
around JPY200 million left when it filed for bankruptcy on
March 27, according to Kyodo.

Tellmeclub was soliciting customers until last week through
newspaper ads, Kyodo says. The company, with about 80 staff, was
also found to have made dozens of new job offers, adds Kyodo.

Tokyo-based travel agency Tellmeclub filed for bankruptcy with the
Tokyo District Court on March 27 with liabilities estimated at
JPY15.1 billion, including JPY9.9 billion relating to 36,000
travel contracts.


TOSHIBA CORP: Investors Approve Sale of Memory Chip Unit
--------------------------------------------------------
Pavel Alpeyev and Takako Taniguchi at Bloomberg News report that
Toshiba Corp. shareholders approved the sale of its memory chips
division to cover costs resulting from the Westinghouse
bankruptcy, but not before railing at management and lamenting the
downfall of a Japanese icon.

Incensed investors took turns to hurl abuse at executives during a
meeting on March 30 convened to take a vote on the intended
disposal of its prized semiconductor business, Bloomberg relates.
Toshiba is looking to sell a majority stake in the unit to mend a
balance sheet ravaged by billions of dollars in writedowns related
to cost overruns at nuclear subsidiary Westinghouse Electric,
Bloomberg notes.

Westinghouse, which Toshiba bought for $5.4 billion in 2006, filed
for Chapter 11 protection on March 29, Bloomberg reports. The
Japanese company said it may now book a loss of as much as JPY1.01
trillion (US$9.1 billion) in the year ending March, a record for a
Japanese manufacturer according to Bloomberg data.

"Toshiba is now a laughing-stock to the whole world," one
shareholder said during a question-and-answer section, raising his
voice, Bloomberg relays. "I think all of you are incompetent as
managers. Do you even know what's happening?" Another shareholder
addressed the executives as "trash."

Shareholders green-lit the envisioned chip-division sale anyway,
Bloomberg notes. The company has said it's received some offers
for its NAND memory business, a sale of which should be enough to
restore shareholder equity to positive by the end of the next
fiscal year. Bids are due March 30 and about 10 companies are said
to have expressed interest.

Bloomberg notes that the semiconductor business is Toshiba's crown
jewel and makes the memory chips that go into computers,
smartphones and data centers. It accounted for about 25% of
Toshiba's JPY5.67 trillion in revenue during the latest fiscal
year, Bloomberg discloses.

"The sale of memory business is even more important now that
Westinghouse Chapter 11 application is likely to result in
excessive debt expanding considerably," Yukihiko Shimada, a Tokyo-
based analyst at SMBC Nikko Securities Inc., wrote in a report,
Bloomberg relays.

Toshiba Chief Executive Officer Satoshi Tsunakawa opened the
proceedings by apologizing to shareholders and reassuring them the
company is doing everything in its power to avoid a de-listing
after missing earnings reporting deadlines. But investors remained
displeased, Bloomberg says.

"It doesn't seem like the management is taking this seriously
enough," another shareholder said during the question-and-answer
session, drawing applause. "Whatever happened happened. I want to
know what happens next," adds Bloomberg.

                           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.


TOSHIBA CORP: Execs Under Fire as Loss Forecast Balloons
--------------------------------------------------------
AFP reports that angry investors lambasted Toshiba Corp.
executives at a shareholder meeting on March 30 after it warned
annual losses could balloon to more than one trillion yen but
agreed to the sale of its memory chip unit, the jewel in the
firm's crown.

According to the report, the heated meeting held just outside
Tokyo comes a day after the huge conglomerate said its troubled
atomic reactor maker Westinghouse Electric had filed for
bankruptcy protection in the United States.

AFP relates that Toshiba, one of the pillars of corporate Japan,
also warned on March 29 its annual losses mainly tied to
Westinghouse could blow out to JPY1.01 trillion ($9.07 billion),
compared with an earlier projected shortfall of JPY390 billion.

The company has delayed formally reporting its earnings over the
problems at Westinghouse, including whistleblower claims about
accounting misconduct by senior executives at the unit, the report
says.

AFP says the meeting was held to get shareholder approval to spin-
off Toshiba's prized memory chip business, seen as key for the
cash-strapped company to turn itself around. The motion was
approved.

"It's unforgivable that they could book a trillion yen loss -
management should quit," a 75-year-old investor, who identified
himself only as Tomari, told AFP before the meeting started.

President Satoshi Tsunakawa apologised for the crisis on
March 31, which comes less than two years after Toshiba's
reputation was badly damaged by separate revelations that top
executives had pressured underlings to cover up weak results for
years after the 2008 global financial meltdown, AFP relates.

That scandal laid bare serious problems with Toshiba's internal
controls and governance.

"We apologise to all stakeholders, including shareholders, for
causing this trouble and worry over our nuclear business," the
report quotes Tsunakawa as saying.

Shigenori Shiga, who once headed Westinghouse and stepped down as
Toshiba's chairman in February, was not at the meeting.

AFT says Toshiba shares picked up on March 31, but they have lost
more than half their value since late December when it warned of
huge losses and the probe at Westinghouse.

Japanese financial regulators have given the company until
April 11 to publish results for the October-December quarter,
which were originally due in mid-February, AFP notes.

The firm is at risk of an embarrassing delisting from Tokyo's
stock exchange, adds AFP.

                           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
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.


TOSHIBA CORP: Owed $1.29B by Nuclear Unit, Sees JPY1.1-Tril. Loss
-----------------------------------------------------------------
Toshiba Group says its U.S. nuclear unit that recently sought
bankruptcy protection, Westinghouse Electric Company LLC, owes it
$1.287 billion, and it now projects that its annual loss could
more than double to a record JPY1.101 trillion ($9.1 billion).

Westinghouse Electric Company (WEC), WEC's U.S. subsidiaries and
affiliates, and Toshiba Nuclear Energy Holdings (UK) Limited (TNEH
(UK)), a holding company for Westinghouse Group operating
companies outside the U.S. (collectively, the "WEC Group"), have
resolved and then filed for a voluntary petition under Chapter 11
under the U.S. Bankruptcy Code on March 29, 2017 (local time) with
the U.S. Bankruptcy Court of New York (the "Bankruptcy Court").

                        Business as Usual

Toshiba said in a statement that WEC Group companies will continue
ordinary business operations, in anticipation of reorganizing
their business lines under Chapter 11. WEC Group, as debtor in
possession, has received a commitment for Chapter 11 financing in
the amount of US$800 million during the rehabilitation proceeding,
of which Toshiba will provide maximum US$200 million as a backstop
guarantee of WEC Group's Chapter 11 financing.

Toshiba and the WEC Group are working cooperatively with the
owners of the two sites where WEC is constructing nuclear power
plants to develop arrangements for the continuation of
construction during an interim period. Such arrangements would
contemplate that the owners would make payments for construction-
related costs while the parties continue to explore and assess a
comprehensive solution regarding the sites. Toshiba is hopeful
that such arrangements can be finalized and presented to the U.S.
Bankruptcy Court promptly. Toshiba will continue to cooperate with
parties to the Chapter 11 rehabilitation process with all
sincerity, in order to ensure smooth proceedings.

For Toshiba, the WEC Group's commencement of Chapter 11
proceedings means that Toshiba's claims against certain members of
the WEC Group will be subject to the provisions of the United
States Bankruptcy Code, and any recovery by Toshiba on account of
such claims will be subject to the claims reconciliation process
and other applicable provisions of the Bankruptcy Code. In
addition, as WEC Group will no longer be under the control of
Toshiba, WEC Group will be deconsolidated from Toshiba Group,
starting from FY2016 full year business results.

                          Cost Overruns

As announced on February 14, 2017, in "Provisional Outlook for
FY2016 3Q Business Results and FY2016 Forecast, and Outline of
Loss in Nuclear Power Business and Countermeasures," it became
clear during the Purchase Price Allocation (PPA) process of
acquiring CB&I Stone & Webster (hereinafter "S&W"), a former
subsidiary of Chicago Bridge & Iron, that WEC would be required to
book a US$6.1 billion write down for cost overruns at two project
sites to construct a total of four nuclear power plants in the
U.S. (hereinafter "U.S. Nuclear Projects").

Since December 2016, WEC and Toshiba have been working to
determine the scale of the possible loss, investigate the causes,
and to implement preventive measures and actions. In considering
cash flow prospects, other circumstances, and in order to maintain
WEC's business value, the Board of Directors of WEC has resolved
to file for Chapter 11 protection as a means to rebuild the
company. In addition, the Board of Directors at TNEH (UK) also
resolved to file for Chapter 11. TNEH (UK), a holding company for
the group of WEC operating companies outside the U.S., has a
complementary relationship with WEC, and in practical terms
management of both companies works closely together.  In order to
rebuild WEC Group, Toshiba recognizes that it is essential that
WEC Group and its customers, including the  power utility
companies, should be provided with appropriate coordination, under
the guidance of the court.  In addition, Toshiba concluded that
the Chapter 11 filings were essential to rebuild WEC Group, and
that the resulting deconsolidation would help to meet the
objective of working to eliminate risk in the overseas nuclear
power business.

             Total debt accruing to WEC and TNEH (UK)

US$9,811 million (as of December 31, 2016) with US$1,287 million
accruing to Toshiba and Toshiba Group

        WEC and TNEH (UK) equity and credit held by Toshiba

As of today, the WEC and TNEH (UK) equity and credit held by
Toshiba are as follow:

  (1) Toshiba Group's equity holding in WEC and TNEH (UK)


      WEC: 417.6 billion yen
      TNEH (UK): 146.2 billion yen

   * The figure for WEC is the equity of WEC's holding company,
     Toshiba Nuclear Energy Holdings (US) (TNEH (US))

In addition to the foregoing, as announced on February 17, 2017,
in "Notice of Acquisition of IHI Corporation's Stake in
Westinghouse," IHI Corporation (hereinafter IHI) exercised a put
option for the shares (3% ownership as of February 16, 2017) that
it holds in WEC's holding company.  If actual acquisition of the
shares is conducted on May 17, 2017, the "Date of Payment and
Closing Date of the Purchase" pursuant to the put option
agreement, Toshiba's equity holding will change as it will acquire
shares with a value of approximately JPY18.9 billion, and will be
recorded to FY2016 business results.

(Note: The purchase price is determined to be calculated by
converting IHI's ownership ($157 million) into Japanese yen at the
currency exchange rate of approx. 120 yen to the US dollar in
October 2006.)

Furthermore, Kazatomprom, a state-owned company in Kazakhstan,
owns 10% of equity in WEC's holding company as of today.
Kazatomprom is entitled to sell this holding to Toshiba under
certain conditions, pursuant to put option agreements, however
that can be exercised on or after October 1, 2017.

  (2) WEC and TNEH (UK) credits held by Toshiba Group (as of
February 2017): Approx. 175.6 billion yen in total

    Future outlook and impact on Toshiba's business results

The rehabilitation proceedings of WEC, WEC's affiliates and TNEH
(UK) will begin immediately with the participation of WEC, TNEH
(UK), creditors and other related parties under the supervision of
the Bankruptcy Court.  With the commencement of the rehabilitation
proceedings, WEC Group will be deconsolidated from Toshiba's
FY2016 full year business results.  However, the impact on
Toshiba's FY2016 business results and forecast has yet to be
determined.

Toshiba's provisional FY2016 business results forecast, announced
on February 14, 2017, made provision for a JPY712.5 billion
operating loss due to goodwill impairment, and for minus JPY620.4
billion after deduction of non-controlling interests to the net
income and loss, shareholders' equity and net assets as the
outcomes of the purchase of S&W.  In conclusion, the provisional
forecast for net income was minus JPY390 billion, shareholders'
equity was minus JPY150 billion, and net asset was JPY110 billion.

In addition to the above, below impacts to the FY2016 business
results are expected as a result of commencement of the WEC
Group's rehabilitation proceedings;

i. Impact from deconsolidation of WEC Group

As WEC Group will be deconsolidated, causes of financial
deterioration, such as goodwill impairment, will be excluded from
figures for non-operating profit and loss in Toshiba's FY2016
business results. Despite the negative impact stemming from
impairment of the total investment in WEC and TNEH (UK), Toshiba
expects to book a positive impact of more than JPY200 billion for
net income.

ii. Impact from provisions for credits and losses in relation to
the parent company guarantee and WEC Group

With commencement of WEC Group's rehabilitation proceedings,
Toshiba must reconsider booking provisions for losses in non-
operating income, mainly related to the parent company guarantee
provided to the power utility companies for the U.S. Nuclear
Projects, and for credits related to WEC group. However, depending
on the plan determined during the course of the rehabilitation
proceedings, there is a possibility that the amounts to be
reported may change significantly. In addition, it is essential to
consider Toshiba Group's FY2016 Q4 results in the calculation. As
a result, Toshiba has yet to determine the details of the impact
of the deconsolidation of WEC Group.

In addition to (i), if Toshiba were to make provision for the full
contractual amount of the parent company guarantee (JPY650 billion
as of end of February 2017) and also a reserve for possible loan
losses detailed in (ii) above, net income will further deteriorate
by a scale of JPY620 billion. As a result, there is a possibility
that the FY2016 net income loss will be minus JPY1,010 billion,
against the minus JPY390 billion announced on February 14, 2017.

Shareholders' equity basis will see an additional deterioration of
minus JPY470 billion, after incorporating the positive impact of
comprehensive income and minus JPY620 billion deterioration in net
income, against the minus JPY150 billion announced on February 14,
2017.

Consolidated net assets basis will see an additional deterioration
of minus JPY450 billion, after incorporating the positive impact
of non-controlling interests and minus JPY470 billion
deterioration in shareholders' equity, against the JPY110 billion
announced on February 14, 2017.

However, in the course of the rehabilitation proceedings, through
discussions with the power utility companies and other related
parties, Toshiba will seek to minimize the cost effect.

Furthermore, the impact from IHI exercising the put option right
will be incorporated to the consolidated shareholder's equity and
net assets of FY2016 business results (reduction of JPY35 billion
in consolidated shareholder equity, and JPY18.9 billion in
consolidated net assets), the consideration and the impact of
Kazatomprom exercising its put option rights are not incorporated.

Also, on commencement of the rehabilitation proceedings, when WEC
Group will be classified as a discontinued operation, it is
possible that amounts already recorded in the income statement
prior to commencement of the proceedings and amounts resulting
from the commencement may be recorded as profit and loss from
discontinued operations.

Toshiba will closely monitor the progress of the rehabilitation
proceedings, and disclose information, including impacts on
business results, in a timely manner.

5. Overview of WEC and TNEH (UK)

(1) Overview of WEC and TNEH (UK)

                             WEC Group

WEC Group's business operations in the U.S. are the responsibility
of WEC, and in regions other than the U.S. they are the
responsibility of Westinghouse Electric U.K. Holdings Limited, a
wholly owned subsidiary of TNEH (UK). However, WEC manages group-
wide functions and operation of the Group as a whole.

(1) Company Name: Westinghouse Electric Company LLC

(2) Address: 1000 Westinghouse Drive
             Cranberry Township, PA
             16066, USA

(3) Name of Representative: Jose Emeterio Gutierrez

(4) Business Outline: Delivers nuclear products and services to
utilities, including nuclear fuel, service and maintenance,
instrumentation, control and design of nuclear power plants.

(5) Date of Establishment: January 8, 1886

(6) Number of Employees: approx. 12,000 employees (as WEC Group)

(7) Major Shareholders and Shareholding Ratios: TNE practically
owns all the shares.  Toshiba owns 87% of the voting rights of
TNEH (US).

(8) Relationship between Toshiba and Westinghouse Electric
    Company LLC:
   * Capital Relationship: As stated above in (7)
   * Personnel Relationship: Concurrent posts of executives
   * Business Relationship: Part of the overall sales come from
      business with Toshiba Group.  And part of the products
      and/or services are supplied from Toshiba Group.

                              TNEH

(1) Company name: Toshiba Nuclear Energy Holdings (UK) Limited
(2) Headquarters: Furzeground Way, Stockley Park, Uxbridge,
     Middlesex,UB11 1EZ, United Kingdom

(3) Name of Representative: Mamoru Hatazawa

(4) Business Outline: Holding Company of Westinghouse Electric
                      U.K. Holdings Limited

(5) Capital Stock: US$1,400 million

(6) Date of Establishment: September 8, 2006

(7) No. of Outstanding Shares: 1,400 stocks

(8) Major Shareholders and Shareholding Ratios:

    * Toshiba Corporation: 87%
    * National Atomic Company Kazatomprom JSC: 10%
    * IHI Corporation 3%

(9) Relationship between Toshiba and Toshiba Nuclear Energy
     Holdings (UK) Limited
    * Capital Relationship: As mentioned above in (8)
    * Personnel Relationship: Dispatches two non-executive
      directors
   * Business: No actual businesses relationship

(2) Financial Condition and Operating Performance of WEC Group in
    the past three years (unit in million yen):

                        FY2014     FY2015   FY2016
                        ------     ------   ------
Net Assets (Equity)     428,121   385,935  387,482
Total Assets            837,439   895,836  813,070
Net Sales               459,842   441,744  499,385
Operating Income         64,613   16,933   20,346
EBIT                     64,158   18,404   19,140
Net Income (loss)        54,316    9,932   13,023

Furthermore, in respect to the FY2016 business results, despite
the steady growth in fuel and service businesses, WEC Group was
expecting to book a large loss accruing from a US$6.1 billion
write down for cost overruns at U.S. Nuclear Projects.

                           About Toshiba

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

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

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

                   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 obtained ownership of 87% of
Westinghouse.

Amid cost overruns at U.S. nuclear reactors it was
Building, on March 29, 2017, Westinghouse Electric Company LLC,
along with 29 affiliates, filed voluntary petitions for relief
under Chapter 11 of the United States Bankruptcy Code.  The cases
are pending joint administration under Case No. 17-10751 before
the Honorable Michael E. Wiles (Bankr. S.D.N.Y.).



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


HORVATH HOMES: PwC Rejects "Potential Fraud Issues" Claims
----------------------------------------------------------
Marty Sharpe at Stuff.co.nz reports that liquidators for Napier
company Horvath Homes have rejected claims by another liquidator
that they found "potential fraud issues" that had been reported to
"investigating authorities".

Liquidator Kevin Russell of the NZ Insolvency and Trustee Service
completed his final report on the liquidation of Horvath McCarthy
Group Ltd last week, according to Stuff.

Stuff relates that Mr. Russell said in his report the company
supported Horvath Construction Ltd, which traded as Horvath Homes,
a business that built residential homes.

He said liquidators for Horvath Construction Ltd, PwC, advised
there were no realisable assets for the company and that "the
administration of the liquidation would rest on the investigation
of potential fraud issues that have been reported to the
appropriate investigating authorities," Stuff reports.

Horvath Construction went into liquidation in March last year
owing more than NZ$220,000 to nine creditors, about half of which
was owed to IRD, Stuff discloses.

According to Stuff, Tony Pattison, who is PwC's liquidator of
Horvath Construction said he was unaware of any potential fraud
issues associated with the company and he had not reported any
potential fraud matters to any investigating body.

"We're going to ask them to retract their report because it's
inaccurate," Stuff quotes Mr. Pattison as saying.

When asked about his report Mr. Russell referred questions to the
Ministry for Business and Innovation media team, which responded
by saying the Mr. Russell's report set out his understanding of
the position as at the date of the report, and he would make no
further comment, Stuff relays.

Horvath Construction was put in liquidation by the High Court
following an application by IRD over unpaid taxes, Stuff notes.

The company was founded in 2002 by Adam and Leanne Horvath.
Trading as Horvath Homes, the company developed and built houses
in Napier's Te Awa subdivision, south of Napier Boys High School.
The company also built seven two-bedroom Housing New Zealand homes
in the Napier suburb of Maraenui in 2013.


PUMPKIN PATCH: Staff in Stalemate with ANZ Over Redundancy Pay
--------------------------------------------------------------
Rachel Clayton at Stuff.co.nz reports that about 150 former
Pumpkin Patch head office and distribution workers are appealing
to the Australia and New Zealand Banking Group (ANZ) to release
money needed to pay their redundancy entitlements.

ANZ is the biggest creditor of the failed children's wear retailer
which was put in receivership in November last year and in
liquidation in February, Stuff notes.

Pumpkin Patch staff were employed under two arms of the company.
Pumpkin Patch Originals owned the retail assets, and Pumpkin Patch
Limited provided head office and distribution functions, Stuff
discloses.

According to Stuff, retail staff were paid redundancy funded by
the sale of the remaining stock before the shops closed, and the
sale of the Pumpkin Patch brand and intellectual property last
week to Australian e-commerce company Catch Group.

But Pumpkin Patch Limited had no assets to sell, leaving no money
to pay its staff redundancy, which ranked behind ANZ's debt, Stuff
states.

According to the report, Pumpkin Patch co-founder and its first
employee Judy Oak said she was devastated when it went into
voluntary administration in October after 26 years in business.

"It feels like the loyal Pumpkin Patch Limited employees from head
office and [distribution] have been totally ripped off through the
set up of the company structure," Stuff quotes Ms. Oak as saying.
"Through no fault of ours we are the ones who are missing out. We
would love it if the ANZ could pay out the rest of the people as
they have done for Australian and New Zealand retail staff," Oak
said.

Stuff adds that ANZ spokesman Stefan Herrick said in a statement:
"It's terrible that the employees of Pumpkin Patch stand to lose
their redundancy payments".

"ANZ is also one of a number of creditors in this situation and
our shareholders stand to lose tens of millions of dollars from
the unfortunate collapse of Pumpkin Patch," Mr. Herrick, as cited
by Stuff, said.

                         About Pumpkin Patch

Based in New Zealand, Pumpkin Patch Limited (NZE:PPL) --
http://www.pumpkinpatch.biz/-- is a designer, marketer, retailer
and wholesaler of children's clothing.  The Company's product
range encompasses all stages of a child's growth, from baby to
toddler, primary school kid to pre and early teen, including
clothing, nightwear, accessories, rainwear, footwear and teddy
collection.  Pumpkin Patch also caters for mums-to-be with a
maternity collection.  The Company also has a fashion mini-brand
for discerning pre and early-teen girls, Urban Angel Girls.  The
Company's collections are available in numerous countries and
regions, including New Zealand, Australia, the United Kingdom,
the United States, South Africa and the Middle East.  Pumpkin
Patch predominantly sells through its own store network in
New Zealand, Australia, the United Kingdom and the United States.
The Company's subsidiaries include Torquay Enterprises Limited,
Pumpkin Patch Originals Limited, Pumpkin Patch LLC, Pumpkin Patch
Direct Limited, Patch Kids Limited and Urban Angel Girls Limited.

Pumpkin Patch employed almost 600 people in New Zealand and
1,000 in Australia, according to Stuff.co.nz.

On Oct. 26, 2016, the Board of Pumpkin Patch has placed the
company into Voluntary Administration under Part 15A of the
Companies Act 1993.

The board has therefore appointed Andrew Grenfell and Conor
McElhinney of McGrathNicol as administrators for Pumpkin Patch
and a number of its subsidiaries. Pumpkin Patch's bank has
appointed Neale Jackson and Brendon Gibson of KordaMentha as
receivers.

McGrathNicol were appointed liquidator for Pumpkin Patch Originals
and Pumpkin Patch Direct in February 2017.



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


DAEWOO SHIPBUILDING: KDB Informs Creditors Due Diligence Results
----------------------------------------------------------------
Yonhap News Agency reports that the main creditor of Daewoo
Shipbuilding & Marine Engineering Co. on March 30 informed private
creditors and bondholders of the outcome of due diligence on the
troubled shipbuilder, as part of its efforts to persuade them to
agree on a debt-for-equity swap.

According to Yonhap, the state-run Korea Development Bank (KDB),
the main creditor, was holding a meeting with stakeholders of
Daewoo Shipbuilding, including the National Pension Service (NPS)
and the Korea Post, to discuss the financial arrangements that
have to be undertaken to help bail out the shipbuilder.

The outcome of the due diligence is expected to give the private
creditors access to Daewoo Shipbuilding's books, the report says.

Yonhap relates that the NPS, which holds KRW390 billion (US$350.7
million) worth of Daewoo Shipbuilding's bonds, held a meeting on
March 28 on whether to agree on the plan, but no decision was
made.

According to Yonhap, KDB and another state-run creditor, the
Export-Import Bank of Korea, announced last week a fresh rescue
package worth KRW6.7 trillion to the ailing shipbuilder but only
if all stakeholders agree to the painful debt-for-equity swap
plan.

The huge rescue measures represent the second round of bailouts
for the shipbuilder that has been suffering severe liquidity
problems over heavy losses in its offshore projects, the report
notes.

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,
Yonhap discloses.

Unless they agree on the debt-for-equity swap plan, Daewoo
Shipbuilding will be placed under a new corporate rehabilitation
program, which is a combination of debt workout and court
receivership, the creditors said, Yonhap relays.

According to Yonhap, during an annual shareholder meeting on March
30, Daewoo Shipbuilding CEO Jung Sung-leep said the shipbuilder
will strictly implement its own "bone-crushing" self-rescue
measures "to survive."

"We aim to improve our financial structure by winning new orders
and making a continuous profit," Chung told shareholders, Yonhap
relays.

                     About Daewoo Shipbuilding

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 has been saddled with a deepening liquidity
shortage amid a plunge in new orders, Yonhap said.

The shipbuilder suffered an operating loss of KRW1.61 trillion
(US$1.44 billion) last year following an operating loss of
KRW2.94 trillion in 2015.  Its net loss narrowed to KRW2.71
trillion last year from a loss of KRW3.3 trillion a year earlier
with sales also dipping 15.1% on-year to reach KRW12.74
trillion.


DAEWOO SHIPBUILDING: CEO Forgoes Salary, Urges Staff for Wage Cut
-----------------------------------------------------------------
Chosun.com reports that the CEO of Daewoo Shipbuilding and Marine
Engineering has refused to accept his salary and is calling on
other staff to take part in cost-cutting measures to help save the
ailing shipbuilder.

Chosun.com relates that Jung Sung-leep told staff that creditors
and major shareholders are asking for "additional burden sharing
and stringent self-rescue measures."

Chung cited a 10-percent cut in wages and 25-percent drop in
personnel costs and promised to refuse his salary to set an
example, Chosun.com says.

Chosun.com notes that the government decided last week to bail
Daewoo out with another W5.8 trillion, but the shipbuilder could
be forced into court receivership if creditors reject the plan.

Last year, Daewoo staff other than unionized manufacturing workers
accepted a 10-percent wage cut and have been taking one-month's
unpaid leave starting this year, according to the report. But now
Daewoo wants the entire workforce to accept a 10-percent wage cut,
Chosun.com states.

                   About Daewoo Shipbuilding

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 has been saddled with a deepening liquidity
shortage amid a plunge in new orders, Yonhap said.

The shipbuilder suffered an operating loss of KRW1.61 trillion
(US$1.44 billion) last year following an operating loss of
KRW2.94 trillion in 2015.  Its net loss narrowed to KRW2.71
trillion last year from a loss of KRW3.3 trillion a year earlier
with sales also dipping 15.1% on-year to reach KRW12.74
trillion.



                             *********

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.



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