TCRAP_Public/170410.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 10, 2017, Vol. 20, No. 71

                            Headlines


A U S T R A L I A

AG COMPANY: Second Creditors' Meeting Set for April 19
ASMARK2 PTY: Second Creditors' Meeting Set for April 21
CRONULLA SUTHERLAND: First Creditors' Meeting Set for April 18
FOXROCK SHARED: First Creditors' Meeting Set for April 19
LATITUDE AUSTRALIA: Fitch Assigns 'BBsf' Rating to Cl. E Notes

N O & O ORDEN: Second Creditors' Meeting Set for April 13
THREE TREE: In Administration, First Meeting Set for April 20
WRELD TRANSPORT: Second Creditors' Meeting Set for April 21


C H I N A

CHINA OIL: Moody's Assigns Ba2 Senior Unsecured Bond Rating
CHINA OIL: S&P Assigns 'BB' Rating to Proposed US$ Sr. Notes
CHINA ZHENGTONG: S&P Lowers CCR to 'B+' on Weaker Leverage
HENGDELI HOLDINGS: Fitch's B+ Ratings Hinges on Asset Disposal
JIANGSU NEW: S&P Lowers CCR to 'BB' on China Rating Downgrade

JINGRUI HOLDINGS: Fitch Affirms 'B-' IDR on Improved Liquidity
POWERLONG REAL: Moody's Hikes Corporate Family Rating to B1
YANZHOU COAL: S&P Assigns 'B+' Rating to Proposed US$ Securities


H O N G  K O N G

IMPERIAL PACIFIC: Moody's Lowers Corporate Family Rating to Caa1


I N D I A

AMUL FEED: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
CHLORO PARAFFINS: Ind-Ra Affirms 'D' Long-Term Issuer Rating
CONSOLIDATED CONSTRUCTION: ICRA Reaffirms INR1275cr Loan Rating D
DHINGRA EXPORTS: CARE Assigns B+ Rating to INR8.50cr ST Loan
ELECTROMEC ENGINEERING: Ind-Ra Assigns D Long-Term Issuer Rating

GAYATRI DYE: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
GOKUL STEELS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
HEM CERAMICS: ICRA Assigns B+ Rating to INR4.72cr Loan
JECRC UNIVERSITY: CARE Lowers Rating on INR105.23cr Loan to D
JOSEPH LESLIE: Ind-Ra Raises Long-Term Issuer Rating to 'B+'

K. VENKATA: ICRA Reaffirms 'B+' Rating on INR25cr Loan
KAMINENI HEALTH: CARE Withdraws 'D' Rating on INR18.28cr Loan
KARAN RICE: CARE Assigns B- Rating to INR9.90cr LT Loan
KATARIA MOTORS: CARE Reaffirms B+ Rating on INR2.09cr Loan
LATHA RICE: CARE Reaffirms 'B' Rating on INR9.39cr LT Loan

M.T. PATIL: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
MADHUSUDAN GARAI: ICRA Reaffirms 'B' Rating on INR3.50cr Loan
MANI EXPORT: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'
MB POWER: CARE Lowers Rating on INR5,196cr LT Loan to 'D'
MODERN MACHINERY: CARE Assigns B+ Rating to INR9.30cr LT Loan

NAGAPATTINAM MUNICIPALITY: Ind-Ra Assigns 'BB' Issuer Rating
PANKAJ ISPAT: CARE Denotes Rating as B-/Issuer Not Cooperating
PB LIFESTYLE: Ind-Ra Migrates 'B' Rating to Non-Cooperating
PRAGATI ENGINEERING: ICRA Assigns B- Rating to INR3.28cr LT Loan
PRATHAMESH: CARE Denotes Rating as B+/Issuer Not Cooperating

PROVOGUE INDIA: CARE Denotes Rating as D/Issuer Not Cooperating
PUREWAL STONE: ICRA Reaffirms 'B' Rating on INR8.60cr Loan
REGEN POWERTECH: ICRA Hikes Rating on INR1530cr Loan to 'D'
SAHARA INDUSTRIES: ICRA Reaffirms 'B' Rating on INR11.63cr Loan
SAHU KHAN: ICRA Reaffirms 'B+' Rating on INR12cr LT Loan

SANGAM STEELS: CARE Denotes Rating as B/Issuer Not Cooperating
SATHYAM GREEN: Ind-Ra Migrates BB- Rating on INR358.4MM Bank Loan
SHARVI RICE: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
SHRI PRABHULINGESHWAR: ICRA Ups Rating on INR74.69cr Loan to B
SHRI VARU: Ind-Ra Assigns 'B' Long-Term Issuer Rating

SMS9 AGRO: ICRA Assigns 'B' Rating to INR10cr Fund Based Loan
SRI SAI: CARE Denotes Rating as D/Issuer Not Cooperating
SRI SATNAM: CARE Assigns B+ Rating to INR12cr LT Bank Loan
SUNLAND CERAMIC: ICRA Reaffirms B+ Rating on INR6.74cr Loan
TRISHUL TREAD: Ind-Ra Assigns 'BB' Long-Term Issuer Rating

TULIP TELECOM: ICRA Reaffirms 'D' Rating on INR150cr Loan
VARDHMAN WIRES: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
WINWIND POWER: ICRA Reaffirms 'D' Rating on INR288.22cr Loan


I N D O N E S I A

INDIKA ENERGY: Fitch Hikes Long-Term Issuer Default Rating to B-
PT TOWER: S&P Affirms BB- CCR on Resilient Operating Performance


J A P A N

SHARP CORP: Egan-Jones Downgrades Commercial Paper Rating to C
SHOWA SHELL: Egan-Jones Cuts Unsecured Debt Rating to BB
TOSHIBA CORP: Trust Banks File Lawsuit Over Accounting Scandal


N E W  Z E A L A N D

PROPERTY VENTURES: ALF May Emerge as Beneficiary of Litigation
SOLID ENERGY: Finalizes Sale of Ohai and New Vale Mines


S I N G A P O R E

EZRA HOLDINGS: To Meet Noteholders on April 17


S O U T H  K O R E A

SAMSUNG HEAVY: Halt Wage Talks to Focus on Work


                            - - - - -


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


AG COMPANY: Second Creditors' Meeting Set for April 19
------------------------------------------------------
A second meeting of creditors in the proceedings of AG Company
Pty Ltd, trading as Bootooloo Farms; Bootooloo Staff Services Pty
Ltd; GLN & Sons Pty Ltd, JAGS Investments Pty Ltd; and SGAJ
Investments Pty Ltd, has been set for April 19, 2017, at 1:00
p.m., at the offices of Deloitte Financial Advisory Pty Ltd, at
Level 25, Riverside Centre, 123 Eagle Street, in Brisbane,
Queensland.

The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 18, at 4:00 p.m.

Neil Robert Cussen and Richard John Hughes of Deloitte Financial
Advisory Pty Ltd were appointed as administrators of AG Company
on January 6, 2017.

Bowen, Queensland-based Bootooloo Farms operates an agricultural
business specializing in the growing of capsicums and seedless
watermelons.


ASMARK2 PTY: Second Creditors' Meeting Set for April 21
-------------------------------------------------------
A second meeting of creditors in the proceedings of Asmark2 Pty
Ltd, formerly Ausurv Surveyors Pty Ltd, has been set for
April 21, 2017, at 11:30 a.m., at Vibe Hotel Darwin Waterfront
Neptuna and Mavie Room, Level 1, 7 Kitchener Drive, in Darwin
City, NT.

The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 20, at 3:00 p.m.

Hamish Alan MacKinnon and Michael Quin of Bent & Cougle were
appointed as administrators of Asmark2 Pty on March 10, 2017.


CRONULLA SUTHERLAND: First Creditors' Meeting Set for April 18
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Cronulla
Sutherland Pty Ltd will be held at the offices of Cor Cordis
Chartered Accountants, at One Wharf Lane, Level 20, 161 Sussex
Street, in Sydney, New South Wales, on April 18, 2017, at
11:30 a.m.

Mark Hutchins & Jason Tang of Cor Cordis were appointed as
administrators of Cronulla Sutherland on April 4, 2017.


FOXROCK SHARED: First Creditors' Meeting Set for April 19
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Foxrock
Shared Services Pty Ltd will be held at the offices of Hall
Chadwick, Level 10, 575 Bourke Street, in Melbourne, Victoria, on
April 19, 2017, at 11:00 a.m.

David Ross and David Ingram of Hall Chadwick were appointed as
administrators of Foxrock Shared on April 5, 2017.


LATITUDE AUSTRALIA: Fitch Assigns 'BBsf' Rating to Cl. E Notes
--------------------------------------------------------------
Fitch Ratings has assigned final ratings to Latitude Australia
Credit Card Loan Note Trust-Series 2017-1's floating-rate notes.
The issuance consists of notes backed by credit card receivables
originated by Latitude Finance Australia.

The ratings are:

AUD685.90 million Class A1 notes: 'AAAsf'; Outlook Stable
AUD125.65 million Class A2 notes: 'AAAsf'; Outlook Stable
AUD57.60 million Class B notes: 'AAsf'; Outlook Stable
AUD52.35 million Class C notes: 'Asf'; Outlook Stable
AUD41.86 million Class D notes: 'BBBsf'; Outlook Stable
AUD36.64 million Class E notes: 'BBsf'; Outlook Stable
AUD47.12 million Originator VFN Subordination notes: 'NRsf'
AUD100.00 million Series 2017-VFN notes: 'Asf'; Outlook Stable

The notes are issued by Perpetual Corporate Trust Limited in its
capacity as trustee of the Latitude Australia Credit Card Loan
Note Trust.

The notes are backed by a collateral pool of credit card
receivables with an average outstanding balance across active
accounts of AUD2,044. The portfolio is well-seasoned; by balance,
59% is held in accounts seasoned in excess of 36 months. The
portfolio is geographically diversified among Australian states
with no specific geographic concentration.

KEY RATING DRIVERS

Solid Asset Performance: Fitch has set a yield steady state
assumption of 12.5%, a charge-off steady state assumption of 5.5%
and a monthly payment rate (MPR) steady state of 13.0%. The yield
and MPR steady state assumptions are significantly lower than
most other international credit card trusts. The charge-off
steady state is in line with or lower than other credit card
trusts due to solid performance and Australia's benign economic
conditions in the last few years.

Variable Funding Notes (VFN): The VFN structure provides funding
flexibility that is typical and necessary for credit card trusts;
the structure also employs a separate "originator VFN" purchased
and held by Latitude. This serves four main purposes: providing
credit enhancement to the rated notes, adding protection against
dilution by way of a separate transferor interest, supporting a
liquidity reserve and serving minimum retention requirements.

Experienced Originator and Servicer: Latitude, through its
previous ownership, has been managing large portfolios of
consumer receivables for well over a decade in Australia. Fitch
reviewed Latitude's underwriting and servicing capabilities and
found them satisfactory. Latitude is not rated and servicer risk
is mitigated through back-up servicer arrangements.

Steady Asset Outlook: Fitch expects stable Australian credit card
performance in the medium-term, with marginal upward charge-off
movements in 2017, since current levels are unsustainable in the
long term. Australian economic conditions are expected to remain
benign.

RATING SENSITIVITIES

Fitch believes the main rating drivers for credit card
transactions are charge-offs, the MPR and the portfolio yield.

Rating sensitivity to increased charge-off rate
Increase base case by 25% / 50% / 75%
Series 2017-1 A1: AAAsf / AAAsf / AAAsf
Series 2017-1 A2: AA+sf / AAsf / AA-sf
Series 2017-1 B: AA-sf / A+sf / Asf
Series 2017-1 C: A-sf / BBB+sf / BBBsf
Series 2017-1 D: BBB-sf / BB+sf / BBsf
Series 2017-1 E: BB-sf / B+sf/ Bsf
Series 2017-VFN: Asf / A-sf / BBB+sf

Rating sensitivity to decreased MPR
Reduce base case by 15% / 25% / 35%
Series 2017-1 A1: AAAsf / AAAsf / AAAsf
Series 2017-1 A2: AA+sf / AAsf / A+sf
Series 2017-1 B: A+sf / Asf / A-sf
Series 2017-1 C: A-sf / BBB+sf / BBBsf
Series 2017-1 D: BBB-sf / BB+sf / BBsf
Series 2017-1 E: BB-sf / B+sf / B+sf
Series 2017-VFN: Asf / BBB+sf / BBBsf

Rating sensitivity to decreased yield
Reduce base case by 15% / 25% / 35%
Series 2017-1 A1: AAAsf / AAAsf / AAAsf
Series 2017-1 A2: AAAsf / AA+sf / AA+sf
Series 2017-1 B: AAsf / AA-sf / AA-sf
Series 2017-1 C: Asf / A-sf / A-sf
Series 2017-1 D: BBBsf / BBB-sf / BBB-sf
Series 2017-1 E: BB-sf / B+f / B+sf
Series 2017-VFN: Asf / Asf / Asf


N O & O ORDEN: Second Creditors' Meeting Set for April 13
---------------------------------------------------------
A second meeting of creditors in the proceedings of N O & O Orden
Pty Limited has been set for April 13, 2017, at 11:00 a.m., at
the offices of Cor Cordis, at One Wharf Lane, Level 20, 161
Sussex Street, in Sydney, NSW.

The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 12, at 4:00 p.m.

Jason Tang and Mark Hutchins of Cor Cordis were appointed as
administrators of N O & O Orden on March 9, 2017.


THREE TREE: In Administration, First Meeting Set for April 20
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Three Tree
Investments Pty Ltd will be held at 105A Bowen Street, in Spring
Hill, QLD, on April 20, 2017, at 11:00 a.m.

David Clout and Patricia Talty at David Clout & Associates were
appointed as administrators of Three Tree on April 6, 2017.


WRELD TRANSPORT: Second Creditors' Meeting Set for April 21
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Wreld
Transport Pty Ltd has been set for April 21, 2017, at 11:00 a.m.,
at the offices of Vince & Associates, 51 Robinson Street, in
Dandenong, Victoria.

The purpose of the meeting are (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 20, at 4:00 p.m.

Peter Robert Vince and Paul William Langdon of Vince & Associates
were appointed as administrators of Wreld Transport on March 21,
2017.



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


CHINA OIL: Moody's Assigns Ba2 Senior Unsecured Bond Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a Ba2 senior unsecured
bond rating to China Oil and Gas Group Limited's (COG, Ba2
stable) proposed bond issuance.

The ratings outlook is stable.

COG plans to use the bond proceeds to redeem the outstanding
USD350 million senior unsecured note maturing in April 2018.

RATINGS RATIONALE

"The proposed bond issuance will not materially affect COG's
credit profile as the proceeds will be mainly used for debt
refinancing," says Ivy Poon, a Moody's Vice President and Senior
Analyst.

"Furthermore, the company's 2016 results are consistent with
Moody's expectations, underpinned by its improved financial
profile following the resolution of the issue of the prolonged
delay in cost pass-through in Qinghai Province in late 2015,"
adds Poon. "Moody's expects COG's credit profile will remain
consistent with its Ba2 rating."

COG's total gas sales volume increased by roughly 9% to 2,769
million cubic meters in 2016, after excluding the impact from the
disposal of its Yinchuan subsidiary.

However, its revenue declined by 12.6% to HKD6,446 million in
2016, as a result of (1) an average reduction rate for non-
residential gas tariffs of 28% in late 2015, (2) RMB
depreciation, and (3) the subsidiary disposal.

Its adjusted EBITDA remained stable despite the lower revenue.
Its average dollar margin improved to RMB0.37 per cubic meter in
2016 from RMB0.31 per cubic meter a year ago, after the
resolution of the cost pass-through issue for its Qinghai project
in late 2015.

At the same time, the company deleveraged its balance sheet by
using its stronger cash flow.

Adjusted retained cash flow (RCF)/ debt and debt/ capitalization
improved to 16.1% and 50.2%, up from 12.7% and 53.2% a year ago.

Moody's expects COG's growing city gas operations and stable
financials will continue to counterbalance its heavy
concentration in Qinghai Province, where there has been a
weakened track record in cost pass-through; the higher business
risk exhibited by its upstream operations; and the presence of
considerable minority interests.

COG's projected metrics will remain broadly comparable to the
levels of 2016 in the next two years. However, its margins will
face higher levels of seasonality effects as well as mild
compression, given that its gas supplier introduced a new pricing
mechanism to adjust prices during peak and slack seasons in late
2016.

Correspondingly, its average dollar margin dropped in 2H16
compared to 1H16. Moody's will monitor changes in COG's unit
costs during 2017.

The outlook on the ratings is stable, reflecting Moody's
expectation that COG will show stable city gas operations and
will keep its upstream operations at a manageable scale.

Upgrade pressure on COG's ratings could emerge over time if it 1)
establishes a proven track record with timely cost pass-through
for its Qinghai projects, and 2) shows increased diversity in
revenue, such that Qinghai Province contributes less than 30% of
total revenue.

Financial metrics indicative of an upgrade could include RCF/debt
exceeding 18% and debt/capitalization below 40%-45%.

On the other hand, the rating could be downgraded if COG (1)
experiences a material increase in its upstream risk, (2) carries
out aggressive debt-funded expansion projects or acquisitions,
(3) faces adverse regulatory changes, and/or (4) needs to provide
additional funding support to its upstream business.

Financial metrics indicative of a downgrade could include
RCF/debt falling below 12% and debt/capitalization rising above
50% on a sustained basis; or total unencumbered cash and liquid
securities held by the holding company and majority controlled
subsidiaries falling below RMB700 million.

The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in December 2013.

China Oil and Gas Group Limited mainly engages in the piped city
gas business in China. The company also expanded into oil and gas
production in Canada in 2014. Its revenue reached around HKD6.5
billion in 2016.

The company is listed on the Hong Kong Exchange. Mr. Xu Tieliang,
the company's chairman, is the largest shareholder, with a 24.5%
stake.


CHINA OIL: S&P Assigns 'BB' Rating to Proposed US$ Sr. Notes
------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term issue rating and
'cnBBB' long-term Greater China regional scale rating to a
proposed issue of U.S.-dollar-denominated senior unsecured notes
by China Oil and Gas Group Ltd. (BB/Positive/--; cnBBB/--).  The
ratings on the notes are subject to S&P's review of the final
issuance documentation.

The issue rating is the same as the issuer credit rating on China
Oil and Gas Group.  In S&P's view, the company's diversified
portfolio of city-gas concession projects mitigates subordination
risk associated with debt at the holding company level.  The
company intends to use the notes' proceeds to refinance
outstanding notes due in April 2018.

Based on the preliminary fiscal 2016 financial results published
recently, S&P estimates the ratio of funds from operations to
debt in 2016 is in line with S&P's expectation.  S&P estimates
fiscal 2016 EBITDA increased 9% to Hong Kong dollars (HK$) 1.24
billion, according to reported 2016 results, while reported debt
decreased 10% to HK$5.36 billion.  The gas business was weaker
than S&P's expectation but that was offset by its better-than-
expected upstream exploration and production business and
deleveraging.  The gas business suffered from dollar-margin
squeeze because the company could not pass through cost increases
during the winter. However, to compensate for the margin squeeze,
the company's gas procurement costs will decrease from April 1,
2017, which will improve margins this year.

The implementation of the gas cost cut and the corresponding
dollar-margin expansion will be key to S&P's rating.  The better-
than-expected operating cash flow and gain from the disposal of a
subsidiary also helped reduce leverage in 2016.

Despite China Oil and Gas Group's weaker-than-expected financial
results, S&P will maintain its positive outlook on the company.
The outlook continues to reflect S&P's expectation that China Oil
and Gas Group's financial strength will gradually improve due to
a growing domestic gas distribution business, as well as stable
capital expenditure over the next 12 months.


CHINA ZHENGTONG: S&P Lowers CCR to 'B+' on Weaker Leverage
----------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on China Zhengtong Auto Services Holding Ltd.to 'B+' from 'BB-'.
The outlook is stable.  S&P affirmed its 'cnBB' long-term Greater
China regional scale rating on the China-based auto retailer.

"We lowered the rating because Zhengtong's leverage has
deteriorated more than we expected and we do not anticipate any
material improvement over the next 12 months," said S&P Global
Ratings credit analyst Shalynn Teo.  "We expect the company's
ratio of debt to EBITDA to remain high at 4.0x-5.0x in the next
12 months, compared with about 4.4x in 2016 and 3.3x in 2015, due
to aggressive debt-funded expansion amid a slowing economy in
China."

Lower profitability has also contributed to rising leverage.
Zhengtong's EBITDA margin fell to 5.6% in 2016, from 6.4% in
2015, mainly due to weaker new car sales margin and slower after-
sales services.  S&P revised its assessment of the company's
financial risk profile to aggressive from significant based on
the above factors.

S&P expects Zhengtong will continue to incur significant capital
expenditures of Chinese renminbi (RMB) 1.0 billion- RMB1.3
billion for new store openings, while maintaining high working
capital outflows to support its new car sales.

In S&P's view, profitability will roughly stabilize at current
levels.  S&P expects Zhengtong to maintain its adjusted EBITDA
margins at 5.0%-6.0% over the next 12 months, compared with about
5.6% in 2016, helped by stable gross margins for new car sales
and growth in after-sales services.  S&P expects gross margins
for new car sales to be 2.8%-3.1%, compared with 2.9% in 2016,
benefiting from new product cycles of its BMW brands and
increasing contribution of higher margin brands such as Mercedes
and Porsche.

S&P anticipates Zhengtong's profitability and cash flow will
stabilize with a better product mix.  However, these items could
deteriorate over the next 12 months if operating conditions
become more challenging, resulting in more aggressive pricing and
weaker sales rebates from auto manufacturers, or if the company's
operating expenses increases more than S&P expects because of the
opening of new stores.

In S&P's preliminary assessment of Zhengtong's key credit ratios,
S&P excludes the financials of the captive finance subsidiary,
Shanghai Dongzheng Automotive Finance Co. Ltd.  This is because
S&P considers the finance and corporate assets are of a different
nature, with varying leverage tolerance.  As such, S&P separately
assess the captive company's financial profile, together with the
parent's financial risk, to arrive at S&P's final assessment of
Zhengtong's financial risk profile.

Currently, the financial risk profile of the captive does not
materially impact S&P's assessment of Zhengtong's financial risk
profile as aggressive.  S&P's base case assumes Dongzheng's loan
balance will increase to RMB6.0 billion-RMB8.0 billion in the
next 12 months, from about RMB3.3 billion in 2016.  S&P also
considers the captive finance segment has no further impact on
the rating because S&P believes that it does not introduce
further risks such as borrower concentration, currency, or asset
and liability mismatches.

"We expect Zhengtong's revenue to grow moderately at 3.0%-8.0%
over the next 12 months, compared with 7.3% in 2016, despite weak
retail sales and rising competition in China.  We expect the
company will continue to benefit from the still low luxury
penetration and stronger product cycle of its key brands, which
will support growth of new car sales.  Sales of luxury and ultra-
luxury branded automobiles accounted for 87.0% of Zhengtong's new
car sales in 2016.  We expect the company's satisfactory market
position and improving product mix and services will continue to
support its competitive position.  We assess its business risk
profile as fair," S&P said.

The stable outlook reflects S&P's view that Zhengtong will be
able to generate stable and recurring operating cash flows over
the next 12 months due to a better product mix.  S&P expects the
ratio of debt to EBITDA to remain high at 4.0x-5.0x in the next
12 months due to the company's aggressive debt-funded expansion
appetite and high working capital outflows.  In addition, S&P
anticipates that the company will continue to implement strict
underwriting standards and satisfactory delinquency ratios for
its captive finance operations.

S&P could lower the rating if the company's debt-to-EBITDA ratio
increases to above 5.0x or EBITDA interest coverage declines to
below 2.0x without any sign of improvement.  This could happen
if: (1) Zhengtong's new car sales are significantly below S&P's
expectation or cash flow generation deteriorates more rapidly
than S&P anticipates due to higher working capital outflows or
weaker profitability; (2) the company takes on a more aggressive
debt-funded expansion; or (3) the captive finance operations'
leverage is higher than S&P expects.

S&P could upgrade the company if Zhengtong's debt-to-EBITDA ratio
remains below 4.0x on a sustained basis, which can happen if 1)
Zhengtong can increase its profitability through an improved
product mix or prudent cost controls; or 2) the company
undertakes more disciplined financial management to slow down its
aggressive debt-funded expansion.


HENGDELI HOLDINGS: Fitch's B+ Ratings Hinges on Asset Disposal
--------------------------------------------------------------
Hengdeli Holdings Limited's 'B+' ratings, which are on Rating
Watch Negative, will still depend on whether it gains the
approval of independent shareholders to dispose of its core
operations, even though the company reported an improvement in
retail sales in 2H16, Fitch Ratings says.

The company said as it released its 2016 financial results that
it has scheduled an extraordinary general meeting (EGM) on April
25 and if the plan is approved, the transaction is likely to be
completed before June 30. Fitch will resolve the Rating Watch
Negative on Hengdeli's ratings on the outcome of the EGM.

Fitch placed Hengdeli on Rating Watch Negative in January 2017
following Hengdeli's proposal to dispose a large portion of its
core operations, Xinyu Group and Harvest Max, to its founder and
chairman Mr. Zhang Yuping.

Should the disposal be approved and completed, it would inject
abundant liquidity that Hengdeli is expected to use to repay
nearly all of the remaining business's debt, but at the cost of
the loss of its position as the market leader in the retailing of
Swiss watches in China and a severe shrinkage in operating scale.
Fitch estimates the size of the remaining group would have been
approximately CNY110 million EBITDA in 2015 on a pro forma basis,
representing less than 20% of the original consolidated group,
which will not warrant a 'B+' rating.

If the sale is not approved, the company will continue to
actively search for buyers and expects to dispose of either the
equity interest or assets of Harvest Max within 2017.

Hengdeli said revenue from its continuing operations (excluding
Harvest Max) rose 1% in 2H16 from the previous half-year, but
declined 4% yoy. The improvement in luxury demand is consistent
with observations from other retailers starting in 4Q16, driven
by a wealth effect from higher property prices, narrower gaps
between domestic and international prices and a curb on overseas
purchases

EBITDA margin for the continuing operations declined slightly in
2016 due to lower gross margin in Hong Kong from inventory
clearance, but distribution costs and administrative expenses was
maintained at a stable level of 18% relative to sales. With
stringent efforts by the company to reduce inventory, inventory
days has also decreased to 230 from a peak of 248 in 2015.


JIANGSU NEW: S&P Lowers CCR to 'BB' on China Rating Downgrade
-------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on Jiangsu New Headline Development Group Co. Ltd. (NHL) to 'BB'
from 'BB+'.  The outlook is stable.  S&P also lowered its long-
term Greater China regional scale rating on the company to
'cnBBB-' from 'cnBBB'.

At the same time, S&P lowered its long-term corporate credit
rating on HK Zhiyuan Group Ltd. (Zhiyuan) to 'BB-' from 'BB'.
The outlook is stable.  S&P affirmed its long-term Greater China
regional scale rating on the company at 'cnBB+'.

S&P also lowered its issue rating on the U.S. dollar-denominated
senior unsecured notes issued by ZHIYUAN Group (BVI) Co. Ltd. to
'BB-' from 'BB'.  At the same time, S&P affirmed its long-term
Greater China regional scale rating on the notes at 'cnBB+'.
Zhiyuan unconditionally and irrevocably guarantees the notes.

NHL is a construction services provider and one of the largest
financing and investment companies of the Lianyungang municipal
government, which wholly owns NHL. Zhiyuan is NHL's fully owned
subsidiary, primarily positioned as the group's sole offshore
funding vehicle.

"We downgraded NHL and Zhiyuan because we believe the Lianyungang
municipal government's weakened credit quality will continue to
constrain these companies' credit profiles over the next two
years," said S&P Global Ratings credit analyst Apple Li.

The Lianyungang government's deteriorated creditworthiness
reflects the city's weaker revenue growth and still strong
infrastructure investment that push up its debt burden, and
higher contingent liabilities than fiscal revenues.

"In our view, the city of Lianyungang will maintain a high level
of investment in public infrastructure in 2017-2019 to bolster
its economic growth.  We also project that the city's revenue
growth will moderate, driven by the economic slowdown.  These
factors combined will result in the city's budget deficit after
capital accounts to be around 9% of revenues and a rapid
accumulation of debt both at the city level and at its
government-related entities (GREs).  We project that the city's
tax-supported debt will exceed 270% of the city-level operating
revenues.  Contingent liabilities related to state-owned
enterprises (SOEs) will also remain high. Also constraining
Lianyungang's creditworthiness is the evolving and unbalanced
institutional framework in which Lianyungang operates, which
constrains the government's budgetary flexibility due to the
relatively centralized fiscal system in China. Nevertheless, we
assume that Lianyungang will maintain more than adequate cash
reserves and liquid investments to cover its annual debt
service," S&P said.

The rating on NHL mainly reflects the credit profile of the
Lianyungang government.  In S&P's opinion, the company has an
extremely high likelihood of receiving timely and sufficient
extraordinary government support if it comes under financial
stress.  The rating on NHL is three notches above the company's
stand-alone credit profile (SACP) of 'b', which reflects the
company's high dependence on the government's public spending
plan, small scale, limited diversification, and significant debt-
funded expansion.

S&P's assessment of extraordinary government support reflects
these characteristics of NHL:

  -- Very important role to the government.  NHL undertakes
     construction services on behalf of the Lianyungang
     government and develops infrastructure projects on a build-
     and-transfer basis, particularly for the Lianyungang
     Economic and Technological Development Zone, an important
     economic region for the city.  Corporates with operations in
     the zone could consistently contribute 15%-20% to the city's
     important economic measures, such as production value, and
     budgetary revenues.  NHL is the sole construction operator
     in the zone.  Most of NHL's businesses are not commercial in
     nature and the company performs these mainly for public
     service, such as urban roads and public housing.  Still, S&P
     do not consider NHL as having a critical role to the
     government.  This is because the company's construction and
     infrastructure development activity can be replaced by other
     providers whenever necessary, although that won't be so easy
     considering NHL's dominant position in the city.

  -- Integral link with the government.  The municipal government
     owns 100% of NHL, and S&P do not expect it to reduce its
     stake because the company will continue to undertake a
     public service for the government.  The government appoints
     NHL's senior management, drives the company's business
     strategy, and directly controls it through a commission such
     that S&P believes it has direct control over its operations.
     The government is also NHL's primary client and dominant
     counterpart of account receivables; accordingly, S&P
     believes the severability of non-government debt from
     government debt is limited.

The stable outlook on NHL reflects S&P's view of the credit
profile of the Lianyungang municipal government.  S&P expects
Lianyungang's financial management will be able to prevent
slippage of budget deficit and limit debt accumulation of its
GREs in the medium term despite high infrastructure spending.  It
will allow the city to stabilize its debt burden, albeit at high
levels, and ensure exceptional debt service coverage with cash
and investments.

At the same time, S&P continues to see an extremely high
likelihood that NHL will receive extraordinary support from the
government over the next 12 months.

Ms. Li added: "The stable outlook on Zhiyuan reflects that on NHL
and our view that Zhiyuan will remain highly strategic to its
parent over the next 12 months.  The rating on Zhiyuan will move
in tandem with that on NHL (with a one-notch differential) unless
we reassess Zhiyuan's group status."

A downgrade is remote in the coming 12 months.  But S&P could
lower the rating on NHL if S&P believes the creditworthiness of
the Lianyungang government will further substantially
deteriorate, the likelihood of extraordinary government support
has materially diminished, or the company's SACP deteriorates
substantially.

Heightened policy risk that may prevent the Lianyungang municipal
government from providing extraordinary support in a timely
manner would trigger a downgrade.  The Lianyungang government
significantly reducing its ownership of NHL or loosening its
supervision control could indicate diminishing government
support. Government support could also decline if NHL's role as a
construction services provider and one of the largest financing
and investment companies of the Lianyungang municipal government
weakens.  This could happen if the government reduces its new
project releases due to a local economic slowdown, or opens such
services for other SOEs or for commercial entities.

An upgrade is also remote in the coming 12 months.  But S&P could
raise the rating on NHL if S&P believes the creditworthiness of
the Lianyungang government can improve.  In an unlikely scenario,
S&P could raise its assessment of the Lianyungang government's
creditworthiness if faster-than-expected revenue growth allows
the city's financial management to curb debt accumulation both at
the city level and at its GREs, reducing tax-supported-debt to
less than 270% of operating revenue.  S&P could also raise its
assessment of the Lianyungang government's creditworthiness if
the government adopts more prudent fiscal management.


JINGRUI HOLDINGS: Fitch Affirms 'B-' IDR on Improved Liquidity
--------------------------------------------------------------
Fitch Ratings has downgraded Chinese homebuilder Jingrui Holdings
Limited's (Jingrui) senior unsecured rating and the ratings of
all outstanding bonds to 'CCC' from 'CCC+' and removed the Rating
Watch Negative, with a Recovery Rating of 'RR6' from 'RR5'. The
agency has affirmed the Long-Term Foreign-Currency Issuer Default
Rating (IDR) at 'B-', and the Outlook remains Negative.

The affirmation of the IDR reflects Jingrui's significantly
improved liquidity, driven by higher contracted sales and slowing
land replenishment. The Negative Outlook has been maintained
because the company still faces uncertainties over profitability
as local governments maintain tight control of housing prices in
Jingrui's core markets; while the company also faces pressure to
replenish its land bank. Furthermore, Fitch believes Jingrui's
obligation towards its JVs will put pressure on its financial
profile.

The two-notch difference between the senior unsecured rating and
the IDR reflects Fitch's expectations of lower recovery in the
event of a default because higher priority debt to Jingrui's US
dollar senior notes was 92% of total debt in 2016 compared with
81% in 2015. On the other hand, adjusted inventory had fallen by
45% to CNY7.3 billion, resulting in drastically lower liquidation
value. The issuance of the USD400 million senior notes on April
5, 2017 will lower the proportion of higher-priority debt, but
this by itself is insufficient to improve its Recovery Rating.

KEY RATING DRIVERS

Leverage under Pressure: Jingrui's leverage (as measured by net
debt/adjusted inventory) had increased to 70% by end-2016 from
56% in 2015. Despite the decline in 2016 net debt to CNY3.7
billion from CNY7.3 billion in 2015, a sharper fall in its
adjusted inventory and its guarantees to JVs have pushed up
leverage. The large increase in the net amount owing to its JVs
in 2016 -- by CNY4.6 billion relative to a CNY79 million decrease
in investments in JVs -- was the main adjustment resulting in the
lower adjusted inventory. The CNY1.2 billion increase in
guarantee provided by Jingrui for debt of its JVs indicated that
the indebtedness of its JVs has increased. Fitch estimates
Jingrui's leverage would be 56% if its JVs are proportionately
consolidated.

Fitch expects Jingrui's leverage to remain above 60% in 2017-
2018, driven by high land-replenishment requirements. Jingrui's
total land bank fell by 25% in 2016. Management has the option to
manage its land-acquisition pace, but flexibility is limited -
given its land bank to revenue ratio measured by GFA had fallen
to below 2X by end-2016.

Lower Recovery Rating: Jingrui's lower adjusted inventory at end-
2016 had partly contributed to its lower Recovery Rating, and
Fitch expects this situation is likely to persist over the next
12 months despite Jingrui having acquired more projects in 1Q17.
Fitch has reviewed multiple recovery analysis scenarios that
include Jingrui's newly issued USD400 million bond issuance,
additional repayment of onshore debt, and acquisition of more
projects in 1Q17. Fitch believes that homebuilders need a safety
level of available cash balances to meet operational expenses,
debt servicing, as well as initial funding for project
acquisitions. Fitch Recovery Rating does not take into account
such cash balances, and Fitch ascribe no recovery value to it
since it may substantially be used to meet operational and
financial commitments.

Thin Margin: Jingrui's EBITDA margin improved to 6% in 2016 from
-0.1% in 2015, thanks to a higher selling price and larger
operating scale. The average selling price (ASP) for contracted
sales increased by 16% to CNY12,406/square metre (sq m). Fitch
believes the EBITDA margin will remain under pressure in 2017 as
it recognises poor profitability projects sold in the past, and
will only see slow margin improvement from 2018 - given its high
land acquisition costs.

Strong Contracted Sales: Jingrui's contracted sales increased by
93% to CNY 16.8 billion, driven by a 67% increase of gross floor
area (GFA) sold and a 16% increase by ASP. Fitch expects
contracted sales growth to come off in 2017 as the company will
slow the sales pace to ease the inventory depletion and manage
its leverage. Contracted sales increased by 2% in 3M17.

Improved Liquidity: The company has restructured its debt
maturity by replacing the short-term borrowings with longer-
maturity corporate bonds. Jingrui's total cash of CNY10 billion
and undrawn credit facilities of CNY6bn at end-2016 are
sufficient to cover its CNY4bn short-term borrowings. The newly
issued USD400m 7.75% senior notes due 2020, to be partially used
to refinance its existing higher-coupon US dollar notes, have
provided additional liquidity to support land-bank expansion as
well as lowering financing costs. Liquidity in the next 12-18
months will be determined largely by the scale of its land
acquisition.

DERIVATION SUMMARY

Jingrui has a similar EBITDA scale to Sunshine 100 China Holdings
Ltd (B-/Negative), but Sunshine 100 has a slower sales and better
profitability. Sunhine 100 has higher leverage, but a larger land
bank.

KEY ASSUMPTIONS

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

- Contracted sales GFA to decrease 35% in 2017, but increase 5%
  and 5% in 2018 and 2019, respectively, due to the higher
  quality land bank with smaller GFA.

- Contracted sales ASP to increase around 40% in 2017, 25% in
  2018 and 20% 2019 due to price increases in Tier 1 and 2 cities
  in the Yangtze River Delta area and Jingrui's shift to higher-
  tier cities

- Land premium of CNY10bn in 2017 with higher per sq m land costs
  due to the focus on higher-tier cities. Land purchases
  accelerates in 2017 and 2018 slowdown afterwards to replenish
  the land bank, with the ratio of land acquisition GFA to
  contracted sales GFA at around 0.8-1.0x for 2017-2019

- Construction cost per sq m around CNY4,000-4,500 in 2017-2019.

RATING SENSITIVITIES

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

- Net debt/ adjusted inventory sustained above 70% (2016:70% or
   56% if joint ventures are proportionately consolidated)
- EBITDA margin sustained below 10% (2016: 6%)
- Cash / short-term debt sustained below 60 %( 2016: 2.5x)
- Deterioration in refinancing prospects that has significant
   adverse impact on its liquidity profile

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

LIQUIDITY

Jingrui has restructured its debt maturity by replacing the
short-term borrowings with longer-maturity corporate bonds. Total
cash of CNY11 billion and undrawn credit facilities of CNY6
billion at end-2016 are sufficient to cover its short-term
borrowings (CNY4 billion). The liquidity position in the next 12-
18 months will be determined largely by the scale of its land
acquisition.

Jingrui has been repurchasing its offshore bonds with proceeds
from its lower-cost onshore issuance. This had reduced its
borrowing cost to 8.50% by end-2016 from 9.68% at end-2015.

FULL LIST OF RATING ACTIONS

Company Name

Jingrui Holdings Limited

Long Term Foreign-Currency IDR affirmed at 'B-', Outlook
  Negative
Senior unsecured rating downgraded to 'CCC' from 'CCC+', with a
  Recovery Rating of 'RR6' from 'RR5'; Rating Watch Negative
  removed
Rating on USD150 million 13.625% senior unsecured bond due 2019
  downgraded to 'CCC' from 'CCC+', with a Recovery Rating of
  'RR6' from 'RR5'; Rating Watch Negative removed
Rating on USD150 million 13.25% senior unsecured bond due 2018
  downgraded to 'CCC' from 'CCC+', with a Recovery Rating of
  'RR6' from 'RR5'; Rating Watch Negative removed


POWERLONG REAL: Moody's Hikes Corporate Family Rating to B1
------------------------------------------------------------
Moody's Investors Service has upgraded Powerlong Real Estate
Holdings Limited's corporate family rating to B1 from B2, and its
senior unsecured ratings to B2 from B3.

The ratings outlook is stable.

RATINGS RATIONALE

"The ratings upgrade reflects Moody's expectations that the
company's growth in scale, as well as the improvement in its
liquidity position and debt-service ability, as measured by
EBIT/interest coverage and rental revenue/interest, will be
sustained over the next 12 to 18 months," says Anthony Lee, a
Moody's Analyst.

Powerlong grew its scale in 2016 when its contracted sales
increased year-on-year by 23% to reach RMB17.6 billion and
revenue by 20% to RMB14.3 billion. Such levels well position the
company in relation to its B1 rated Chinese property peers.

Moody's expects Powerlong to continue the modest growth in its
contracted sales and revenue, even if the residential property
market weakens in 2017. This is because the company can receive
sales contributions from commercial properties, though their cash
collections could be longer than that of residential properties.

In addition, Moody's expects Powerlong will maintain its track
record of ramping up its mall operations; as well as achieving
stable occupancy rates and rental yields for its growing mall
portfolio.

Powerlong's rental income will register another 25% - 30% growth
in the next 12-18 months, as it will open five retail malls to
reach a total of 36 malls by end-2017.

Its average level of mall revenue will improve over the next 12-
18 months because it will increase lifestyle services to attract
traffic and spending.

Moody's estimates that the company will generate an annual rental
income of about RMB750 million to RMB800 million in 2017.

Therefore, Powerlong's adjusted rental income/interest coverage
will further improve to 0.4x -- 0.5x in the next 12-18 months
from 0.3x in 2016. Furthermore, the enhanced stability in debt
servicing ability has reached a level similar to that for its
rated B1 peers which have streams of non-development revenue to
cover interest payments.

Powerlong has also benefited from the low-cost funding
environment. Its weighted average funding cost declined to 6.2%
in 2016 from 7.6% in 2015. As a result, its EBIT/Interest
increased to 2.8x in 2016 from 2.4x in 2015.

Moody's expects the company's EBIT/interest will improved to 3.0x
in 2017 from 2.8x in 2016. Such a level is comparable to that of
its B1 rated Chinese property peers.

Powerlong's improved liquidity management also supports the
upgrade. The company has extended its debt maturity profile. Its
proportion of borrowings with a maturity of shorter than 2 years
fell to 43% at end-2016 from 60% at end-2015.

The company's liquidity position is adequate. Its cash and
deposit balances totaled RMB10.1 billion at end-2016, covering
1.3x of its short-term debt compared to 1.1x in 2015.

Its B1 corporate family rating (CFR) reflects its:

(1) Track record of developing and selling commercial and
residential properties;

(2) Ability to generate non-development revenue, which improves
the stability of its debt servicing; and

(3) Expansion into higher-tier cities where demand for its
properties is more favorable.

However, its credit profile is constrained by execution risk, the
high level of capital demand associated with its business
strategy, and high debt leverage, as measured by revenue/debt.

Powerlong's bond ratings are notched down to B2, reflecting
structural and legal subordination. Secured and subsidiary debt
(priority debts)/total assets stood at around 36% at end-2016.
Moody's expects the company's priority debt/total assets will
remain above 15% of total assets over the next 12-18 months.

The stable outlook reflects Moody's expectations that Powerlong
is able to (1) maintain growth in its contracted sales,
especially of commercial properties, even in a weak property
market in 2017; (2) ramp up its malls to generate streams of
rental revenue that will improve coverage on interest expenses to
a level of about 0.4x-0.5x over the next 12-18 months; and (3)
maintain adequate liquidity and exercise prudence in land
acquisitions.

Rating upgrade pressure could arise if Powerlong demonstrates a
track record of stable growth at a larger scale and of
maintaining adequate liquidity and sound credit metrics,
especially an improved level of debt leverage that matches its
business model of holding investment properties.

With respect to its credit metrics, upgrade pressure will be
indicated by (1) adjusted EBIT/interest rising above 3.5x; (2)
rental income/interest rising above 0.6x; (3) adjusted
debt/adjusted total capitalization falling below 50%; and/or (4)
cash/short-term debt rising above 1.5x on a sustained basis.

On the other hand, rating downgrade pressure could emerge if the
company shows a deterioration in sales or undertakes more
aggressive expansion that weakens its credit metrics, including
(1) adjusted EBIT/interest declining below 2.5x; (2) rental
income/interest declining below 0.4x;(3) adjusted debt/adjusted
total capitalization trends above 55%; and/or (4) cash/short term
debt ratio falls below 100%.

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

Powerlong Real Estate Holdings Limited is a Chinese developer
focused on building large-scale integrated residential and
commercial properties in China (Aa3 negative).

At end-2016, its land bank for development totaled around 10.7
million square meters (sqm) in gross floor area (GFA) under
development and for future development, as well as 2.5 million
sqm of malls in operation.

The company listed on the Hong Kong Exchange in October 2009. The
founding Hoi family held an aggregate 64.13% stake in Powerlong
at end-2016.


YANZHOU COAL: S&P Assigns 'B+' Rating to Proposed US$ Securities
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issue rating and
'cnBB-' long-term Greater China regional scale rating to a
proposed issue of U.S. dollar-denominated fixed-rate senior
perpetual securities by Yancoal International Resources
Development Co. Ltd. Yanzhou Coal Mining Co. Ltd. (Yanzhou Coal:
BB-/Negative/--; cnBB/--) provides an unconditional and
irrevocable guarantee for the securities.  China-based Yanzhou
Coal is the second-largest coal producer controlled by the
Shandong provincial government and is the sole owner of the
issuer Yancoal International Resources Development.

The ratings on the perpetual securities are subject to S&P's
review of the final issuance documentation.  The issuer intends
to use the issuance proceeds to refinance its existing debt and
on-lend to Yanzhou Coal's subsidiaries for capital expenditure,
working capital, and general corporate purposes.

S&P Global Ratings considers the securities to have minimal
equity content due to: (1) lack of subordination as the
securities/the guarantee constitutes the senior obligations of
the issuer/guarantor; (2) the issuer's option to call after three
years although it has no fixed repayment date, which is shorter
than the minimum five/ten years non-call period for
intermediate/high equity content under our criteria; and (3) a
step-up coupon of 400 basis points at the first reset date, which
is higher than the maximum of 100 basis points step-up coupon for
equity content under our criteria.  S&P will therefore treat 100%
of the securities as debt in the financial ratio calculations of
Yanzhou Coal.

The issue rating on the securities is one notch below the issuer
credit rating on Yanzhou Coal to reflect the optional deferral of
the coupon.  The rating on Yanzhou Coal has factored in the
extraordinary government support if needed, which in S&P's view,
could flow down to the perpetual securities, given that the
company's guarantee constitutes its senior obligations.  S&P
noted there are no financial covenants applicable to the
securities and the securities may be redeemed early under a
number of circumstances including but not limited to change of
control, breach of covenants, and a relevant indebtedness default
event.

S&P believes the issuance will have a minimal impact on Yanzhou
Coal's cash flow and leverage ratios.  The issuer rating on
Yanzhou Coal and issue ratings on the US$450 million guaranteed
notes (BB-/--; cnBB/--) and the US$550 million guaranteed notes
(BB-/--; cnBB/--) issued by Yancoal International Resources
Development are unaffected by the proposed issuance of the
guaranteed perpetual capital securities.

On March 31, 2017, Yanzhou Coal announced that it had recorded a
net profit of Chinese renminbi 2.1 billion (under Chinese
generally accepted accounting principles) in 2016, up 140% year-
over-year.  The company's adjusted EBITDA increased approximately
29% year-over-year.  The financial improvement is mainly due to a
rebound in coal prices in the second half of 2016 and Yanzhou
Coal's cost cutting and optimization of production mix.



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


IMPERIAL PACIFIC: Moody's Lowers Corporate Family Rating to Caa1
----------------------------------------------------------------
Moody's Investors Service has downgraded Imperial Pacific
International Holdings Ltd.'s corporate family rating to Caa1
from B3.

The rating outlook is negative.

At the same time, Moody's has withdrawn the B2 senior secured
rating on the proposed USD bonds of Imperial Pacific
International (CNMI), LLC., because the bonds have not been
issued as planned.

RATINGS RATIONALE

"The downgrade of Imperial Pacific's corporate family rating
reflects Moody's concern over the company's trend of weak
operating cash flow," says Kaven Tsang, a Moody's Vice President
and Senior Credit Officer.

"The downgrade also reflects Moody's considerations that the high
collection risk on the company's accounts receivables will
unlikely improve further over the next 12-18 months," adds Tsang.

Moody's estimates that the company's operating cash flow could be
negative in 2016, if the deposits of around HKD2.1 billion to
guarantee its overdue accounts receivables are excluded.

The company reported negative operating cash flow of HKD711
million and HKD166 million in 2015 and 2014, respectively.

There is no visibility over when its operating cash flows will
prove strong, although the company has announced that it will
open its new casino in Saipan in April 2017.

Moody's is also concerned over Imperial Pacific's liquidity
position and the sustainability of its business model, given its
high levels of accounts receivables.

The company reported accounts receivables totaling HKD5.3 billion
in 2016 against gross revenue of HKD7.5 billion, a situation that
is indicative of its weak management of accounts receivables.

Moody's notes that the current temporary casino is reliant on VIP
gaming operations, which accounted for HKD7.1 billion or 95% of
total revenue in 2016.

The company also demonstrates some concentration of credit risk,
as seen by the fact that at end-2016 its five largest customers
accounted for 33% of its accounts receivables (53% in 2015).

Imperial Pacific has asked its clients to arrange for collateral
in the form of guaranteed deposits. However, the risk related to
its accounts receivables remains high. This situation is
reflected in the company writing off HKD300 million of accounts
receivables and increasing its impairment provision by HKD847
million in 2016.

Nevertheless, Imperial Pacific's Caa1 corporate family rating
also reflects its monopoly status in Saipan's gaming market.

At the same time, the rating takes into account: (1) the lack of
a track record in operating a gaming business with strong
operating cash flows in Saipan; (2) the high liquidity risk
related to its overdue accounts receivables; and (3) the high
risk related to the ramping up of the new casino in Saipan, which
is under construction.

The negative rating outlook incorporates the company's weak
liquidity position and the high risk around the ramping up of its
new casino. These factors raise the risk of a default on its debt
obligations.

The company's rating is unlikely to be upgraded in the near term,
given the negative outlook.

Nonetheless, the rating outlook could return to stable, if the
company: (1) improves the collection of its accounts receivables;
(2) completes the new hotel with adequate funding and within the
time granted by the authorities; and (3) improves its liquidity
position and operating cash flow.

On the other hand, the company's rating could be downgraded, if
the company's defaults on its payment obligations.

The principal methodology used in these ratings was Global Gaming
Industry published in June 2014.

Imperial Pacific International Holdings Ltd. is a holding company
listed on the Hong Kong Stock Exchange. Through its 100%-owned
subsidiary - Imperial Pacific International (CNMI), LLC - it
holds an exclusive gaming license for the island of Saipan, in
the Commonwealth of the Northern Mariana Islands (unrated).



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


AMUL FEED: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Amul Feed
Private Limited (AFPL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.  The instrument-wise rating actions are:

  -- INR117.5 mil. Fund-based working capital limit assigned with
     'IND BB/Stable' rating;

  -- INR19.67 mil. Long-term loans assigned with 'IND BB/Stable'
     rating

                         KEY RATING DRIVERS

The ratings reflect AFPL's moderate credit profile.  Revenue was
INR534 million in FY16 (FY15: INR93 million), EBITDA margins were
4.9% (5.2%), net leverage (total Ind-Ra adjusted net
debt/operating EBITDAR) was 4.4x (19.8x) and interest cover
(operating EBITDA/gross interest expense) was 2x (1.5x).  The
improvement in the net leverage and interest coverage resulted
from an improvement in the operating EBITDA.

The ratings are also constrained by the firm's tight liquidity
position as reflected by 99.47% average utilization of fund-based
limits during the 12 months ended February 2017.

The ratings, however, are supported by AFPL's strong
relationships with customers and suppliers, and the promoter's
over 10 years of experience in the poultry feed industry.  Also,
the company has a distribution network of over 150 dealers in
Jharkhand, Bihar and Uttar Pradesh.  The agency believes the
company's credit metrics will improve with revenue growth and a
decline in debt level on account of repayment of the existing
loan.

                   RATING SENSITIVITIES

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

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

COMPANY PROFILE

Incorporated in December 2003, AFPL manufactures poultry feed at
its installed capacity of 43,200MTPA in Ranipur, Patna.  AFPL
also has its own hatchery unit with a production capacity of
130,000 units of eggs per month.

Directors of AFPL are Ashok Kumar Singh, Ranju Devi, Veena Devi,
Asha Devi, Sanjay Prasad and Anand Kumar.  The day-to-day affairs
of the company are looked after by Mr. Ashok Kumar Singh.


CHLORO PARAFFINS: Ind-Ra Affirms 'D' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed United Chloro
Paraffins Private Limited's (UCPPL) Long-Term Issuer Rating at
'IND D'.  Instrument-wise rating actions are:

   -- INR117.5 mil. Fund-based limits affirmed with 'IND D'
      rating; and

   -- INR182.5 mil. Non-fund-based limits affirmed with 'IND D'
      rating

                      KEY RATING DRIVERS

The affirmation reflects UCPPL's tight liquidity position with an
average utilization of over 115% of working capital limits for
the 12 months ended March 2017, leading to delays in debt
servicing.

                    RATING SENSITIVITIES

Positive: Timely debt servicing and use of working capital
facilities within limits for three consecutive months would be
positive for the ratings.

COMPANY PROFILE

Kolkata-based, UCPPL was incorporated in July 2003.  The company
manufactures chlorinated paraffin wax, hydro chloric acid and
plastic masterbatches and antifab compounds.

Mr. Debdip Ghosh, Mr. Gobinda Charan Ghosh, Mr. Vijay Kumar
Tiwary and Mr. Gopal Khandelwal are the promoters.


CONSOLIDATED CONSTRUCTION: ICRA Reaffirms INR1275cr Loan Rating D
-----------------------------------------------------------------
ICRA Ratings has re-affirmed the rating assigned to the
INR1962.05 crore term loans, fund based and non-fund based
working capital facilities and INR50 crore Non-Convertible
Debenture programme of Consolidated Construction Consortium
Limited at [ICRA]D.

                         Amount
  Facilities           (INR crore)    Ratings
  ----------           -----------    -------
  Long term, Fund
  based facilities         380.00     [ICRA]D; re-affirmed

  Long term, Term
  Loans                     72.05     [ICRA]D; re-affirmed

  Short term, Fund
  based facilities         190.00     [ICRA]D; re-affirmed

  Short term, Non
  fund based facilities   1275.00     [ICRA]D; re-affirmed

  Proposed facilities       45.00     [ICRA]D; re-affirmed

  Non-Convertible
  Debentures                50.00     [ICRA]D; re-affirmed

Rationale

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

Consolidated Construction Consortium Limited was incorporated in
1997 as a public limited company by four former employees of L&T:
Mr. R. Sarabeswar, Mr. S. Sivaramakrishnan, Mr. V. Janarthanam,
and Mr. T.R. Seetharaman. Since inception, the company has
concentrated on construction and related activities in the
commercial, infrastructure, industrial and residential sectors.
To provide turnkey construction solution to clients, CCCL has set
up subsidiaries including Consolidated Interiors Limited (for
interior contracting and fit-out services); Noble Consolidated
Glazings Limited (for glazing services); and CCCL Power
Infrastructure Limited (for undertaking BOP orders for power
projects).


DHINGRA EXPORTS: CARE Assigns B+ Rating to INR8.50cr ST Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Dhingra Exports, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             1.50       CARE B+; Stable Assigned

   Short-term Bank
   Facilities             8.50       CARE A4 Assigned

Detailed Rationale & Key Rating drivers

The ratings assigned to the bank facilities of Dhingra Exports
are constrained by small & fluctuating scale of operations with
low profitability margins, leveraged capital structure, elongated
operating cycle and customer concentration risk.

The ratings are further constrained by foreign exchange
fluctuation risk, susceptibility to fluctuation in raw material
prices, monsoon dependent operations, firm's presence in
fragmented nature of industry and partnership nature of its
constitution. The ratings, however, derive strength from
experienced management, established track record of entity and
its favorable processing location. Going forward, the ability of
the firm to scale up its operations while improving margins &
gearing and managing its working capital requirements efficiently
would remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced management and established track record of entity:
Mr. Shankar Dhingra has seven years of experience while Mr.
Narendra Dhingra & Mr. Ram Ditta Mal Dhingra have around three
and a half decades of industry experience.

The firm is into business for the past two and a half decades
which aids the firm in having established relationship with
customers and suppliers.

Favorable processing location: The firm's processing facility is
situated at Kurukshetra, Haryana which is one of the highest
producers of paddy in India. Its presence in the region gives
additional advantage over the competitors in terms of easy
availability of the raw material as well as favorable pricing
terms.

Key Rating Weakness

Small and fluctuating scale of operations with low profitability
margins: Despite being in operations for around two and a half
decades, the firm's scale of operations has remained low marked
by TOI of INR32.38 crore for FY16 (refers to the period April 01
to March 31). Furthermore, the profitability margins of the firm
stood weak as indicated by PBILDT margin and PAT margin of 2.44%
and 0.45% respectively in FY16.

Leveraged capital structure and elongated operating cycle: DE has
leveraged capital structure with overall gearing ratio of 4.01x
as on March 31, 2016. The average operating cycle of the firm
stood elongated at 130 days for FY16.

Customer concentration risk: The firm mainly exports its products
to single customer based in UK. Thus, the firm is exposed to
customer concentration risk and any adverse change in procurement
policies of this customer may adversely affect the business of
DE.

Foreign exchange fluctuation risk

The firm is dependent upon exports and its exports contribution
to total sales stood at 89% in FY16 while the raw material is
completely procured from the domestic markets. With initial cash
outlay for sales in domestic currency & significant chunk of
sales realization in foreign currency, the firm is exposed to the
fluctuation in exchange rates. Though, the firm hedges 70% of its
exports receivables through forward contracts, around 30% remains
unhedged exposing it to sharp appreciation in the value of rupee
against foreign currency which may impact its cash accruals.

Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, as it is dependent on the availability of raw
materials, which further varies with different harvesting
periods. The price of rice moves in tandem with the prices of
paddy but usually with a time lag. 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 nature of industry coupled with high level of
government regulation: The commodity nature of the product
makes the industry highly fragmented with numerous players
operating in the unorganized sector with very less product
differentiation. Furthermore, the raw material (paddy) prices are
regulated by government to safeguard the interest of
farmers, which in turn limits the bargaining power of the rice
millers.

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

Dhingra Exports (DE) was established in April, 1992 and is
currently being managed by Mr. Shankar Dhingra, Mr. Narendra
Dhingra and Mr. Ram Ditta Mal Dhingra as its partners sharing
profit and loss in the ratio of 35%, 40% and 25% respectively.
The firm is engaged in processing of paddy and milling of rice at
its manufacturing facility located at Kurukshetra, Haryana having
an installed capacity of 21600 tonnes per annum as on March 31,
2016. DE procures paddy directly from local grain markets through
commission agents located in Haryana. The firm mainly exports its
products to single customer based in UK [exports constituted
around 89% of the total income in FY16]. DE is also engaged in
processing of rice on job work basis which constituted around 3%
of the total income in FY16.

In FY16, DE has achieved a total operating income of INR32.38
crore with PAT of INR0.15 crore, as against the total operating
income of INR48.78 crore with PAT of INR0.09 crore in FY15. In
7MFY17 (Provisional), the firm has achieved total operating
income of INR23.35 crore.


ELECTROMEC ENGINEERING: Ind-Ra Assigns D Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Electromec
Engineering Enterprises (EEE) a Long-Term Issuer Rating of
'IND D'.  The instrument-wise rating actions are:

   -- INR35 mil. Fund-based working capital limit assigned with
      'Long-term IND D/ Short term IND D' rating; and

   -- INR32.50 mil. Non-fund-based working capital limit assigned
      with 'Short-term IND D' rating

                         KEY RATING DRIVERS

The ratings reflect the company's overutilization of the cash
credit limits and inconsistency in the payment of interest due on
them during the six months ended March 2017.

                      RATING SENSITIVITIES

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

COMPANY PROFILE

Electromec Engineering Enterprises was established in 1988 and
manufactures power & distribution transformers and related
components.  The firm has a manufacturing facility and head
office in Rampur (Uttar Pradesh) and a branch office in Rudarapur
(Uttarakhand).


GAYATRI DYE: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gayatri Dye Chem
(GDC) a Long-Term Issuer Rating of 'IND B+'.  The Outlook is
Stable.  The instrument-wise rating actions are:

   -- INR11.55 mil. Term loan assigned with 'IND B+/Stable'
      rating; and

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

                        KEY RATING DRIVERS

The ratings reflect GDC's nascent stage of operations as the
company started its commercial operations from February 2016.
During FY16, GDC reported a revenue of INR31 million.

The ratings, however, are supported by GDC's moderate credit
profile with interest coverage (operating EBITDA/gross interest
expense) of 11.3x in FY16, net leverage (net adjusted
debt/operating EBITDA) of 9.1x and operating EBITDA margin of
6.8%.  The ratings are further supported by the promoter's
experience of more than three decades in manufacturing of
reactive dyes.

The ratings also reflect GDC's moderate liquidity position with
around 40% average maximum utilization of its fund based limits
for the four months ended February 2017.

                       RATING SENSITIVITIES

Positive: An improvement in the scale of operations and the
overall credit metrics could be positive for the ratings.

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

COMPANY PROFILE

GDC was incorporated in 2015, and started the production of
reactive dyes during 4QFY16.

The company is into manufacturing of wide range of reactive dyes
for industrial application.  The company is based out in
Ahmedabad, Gujarat operating with an installed capacity of
1680000kg per annum.

According to 11MFY17 unaudited financials, GDC reported revenue
of around INR408 million.


GOKUL STEELS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gokul Steels
Private Limited (GSPL) a Long-Term Issuer Rating of 'IND B+'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR42.4 mil. Fund-based limits assigned with
      'IND B+/Stable' rating; and

   -- INR64.5 Term loans assigned with 'IND B+/Stable' rating

                        KEY RATING DRIVERS

The ratings reflect GSPL's small scale of operations and moderate
credit metrics.  Revenue increased to INR377 million in FY16 from
INR221 million in FY15, driven by the execution of a higher
number of orders resulting from an increase in capacity
utilization.  In FY16, EBITDA interest coverage (operating
EBITDA/interest) was 2x (FY15: 1.2x), net financial leverage (net
debt/operating EBITDA) was 3.9x (7.6x).  The improvement in
EBITDA interest coverage and net financial leverage was due to a
rise in EBITDA. EBITDA margin stood at 7.4% in FY16 (FY15: 7.0%).

The ratings also reflect GSPL's tight liquidity position,
indicated by an average maximum utilization of 97% for the 12
months ended February 2017.

The ratings, however, are supported by GSPL's founder's
experience of more than a decade in the iron and steel industry
and strong customer base.

                       RATING SENSITIVITIES

Positive: A positive rating action may result from a sustained
improvement in the liquidity position and credit metrics.

Negative: A negative rating action may result from sustained
deterioration in the liquidity position and credit metrics.

COMPANY PROFILE

GSPL was founded in May 2014 by Mr. Vivek Kasera.  GSPL is
engaged in the manufacturing of angles, flats, bars, rounds and
other structural steel items.

The company has a steel structural rolling mill with a production
capacity of 28,000 metric tonnes per annum in Fatwa, Patna
District, Bihar.  The mill commenced operations in May 2014.


HEM CERAMICS: ICRA Assigns B+ Rating to INR4.72cr Loan
------------------------------------------------------
ICRA Ratings has assigned the long-term rating of [ICRA]B+ on the
INR1.22-crore term-loan facility and the INR3.50-crore working
capital facility of Hem Ceramics (HC). ICRA has also assigned the
[ICRA]A4 rating on the INR1.85-crore short-term non-fund based
facility of HC. Further, ICRA has also assigned the long-term
rating of [ICRA]B+ and short-term rating of [ICRA]A4 on the
INR0.43 crore unallocated limits of HC. The outlook assigned on
the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)   Ratings
  ----------         -----------   -------
  Fund-based Limits       4.72     [ICRA]B+(Stable); Assigned
  Non-fund Based Limits   1.85     [ICRA]A4; Assigned
  Unallocated Limits      0.43     [ICRA]B+(Stable) and [ICRA]A4;
                                    Assigned

Rationale

The assigned ratings are constrained by HC's modest operating
scale, characterised by stagnancy in the revenue witnessed in the
previous four years and a decline in revenue in FY2016 due to
limited product portfolio and diminishing realisations. The
ratings are further constrained by the firm's weak financial
profile, evident from its low profitability and stretched working
capital intensity, cause of significantly higher year-end
inventory holdings. The ratings also take into account the high
competition in the ceramic tile industry due to the presence of
large established tile manufacturers and unorganised players as
well as dependence of the firm's vulnerability to the performance
of its key consuming sector-the real estate industry. The ratings
also factor in the firm's vulnerability to adverse movements in
prices of key input materials and gas. ICRA also notes that HC is
a partnership concern and thus, any substantial withdrawal from
the capital account in future could adversely impact the credit
profile of the firm.

The ratings, however, favourably factor in the experience of the
partners in the ceramics business as well as HC's locational
advantage, giving it easy access to raw materials. ICRA further
notes that the declining gas prices will result in considerable
savings in fuel cost, alleviating the cost pressures to some
extent.

ICRA expects HC's turnover to witness a marginal decline in
FY2017 and remain stagnant over the next two to three years,
considering the current demand scenario and lower realisations in
the ceramic industry, mainly in the wall tiles segment. ICRA
expects HC's working capital intensity to remain stretched in the
near term. Furthermore, the firm's ability to increase the scale
of operations and manage its working capital efficiently would be
the key rating sensitivity.

Key rating drivers

Credit strengths

* Extensive experience of the partners in the ceramic industry

* Location in Morbi, India's ceramic hub, provides easy access to
  raw material sources

Credit weaknesses

* Modest scale of operations; financial profile characterised by
stagnancy in revenue since last 4 years and low profitability

* High working capital intensity resulting from significantly
higher inventory holdings as on FY2016 year-end

* Susceptibility to adverse fluctuations in prices of key raw
materials and gas Competitive business environment due to the
presence of large, established tile manufacturers as well as
unorganised players

* Partnership firm; any substantial withdrawal from capital
accounts would impact the net worth and thereby the gearing
levels

Description of key rating drivers:

Hem Ceramics manufactures glazed wall tiles of four sizes at its
facility located at Morbi, Gujarat. HC's financial profile is
characterised by stagnant revenue for the last four years and
stretched liquidity position, arising from high inventory levels.
The firm procures raw materials in anticipation of demand. Owing
to its working capital intensive business, the firm funds its
working capital requirements largely through borrowings from its
creditors. However, the capital structure of the firm remains
comfortable with low gearing levels because of accretion of
reserves and moderate net worth, subsequently, improving the debt
coverage indicators.

The firm's presence in the highly fragmented ceramic industry,
which is characterised by intense competition, limits its pricing
flexibility and thereby its ability to effectively pass on the
increase in raw material prices to customers. Furthermore, with
increased focus on the export markets, the firm's margins would
be vulnerable to volatility in foreign currency exchange rates.
HC's promoters have a long experience in the ceramic industry and
are involved with another trading firm namely Shree Prajapat
Industries. Furthermore, the favourable location of the firm
provides it easy accessibility to quality raw materials.

Analytical approach:

For arriving at the ratings, ICRA has taken into account the
debt-servicing track record of HC, its business risk profile,
financial risk drivers and management profile.

Hem Ceramics (HC) was established in 1997 as a partnership firm
by Mr. Navneet and Mr. Ishwar. The firm is involved in
manufacturing of digitally printed glazed wall tiles. The
manufacturing facility of the firm is located in Morbi, Gujarat
and is equipped with installed capacity of 37500 metric tonnes
per annum (MTPA). HC is currently owned and managed by Mr. Ishwar
and Mr. Ketu along with six other partners. It currently
manufactures wall tiles of four sizes 300" X 300", 300" X 450",
245" X 375" and 250" X 600".


JECRC UNIVERSITY: CARE Lowers Rating on INR105.23cr Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
JECRC University (JU), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        105.23      CARE D Revised
   Facilities                        from CARE B+

Detailed Rationale & Key Rating Drivers

The revision in the rating of JU takes into account delays in
servicing of debt obligations on account of stretched liquidity
position.

Detailed description of the key rating drivers

Ongoing delays in debt servicing

JU has higher repayment obligations due to large-sized pre-
dominantly debt-funded capital expenditure undertaken resulting
to stretched liquidity and delay in servicing of debt
obligations.

Jaipur-based (Rajasthan) JU is a private university promulgated
through an ordinance passed in May 2012 by the Governor of
Rajasthan. JU is also approved by the University Grant Commission
(UGC) u/s 2(f) of the UGC Act 1956, with the right to confer
degree u/s 22(1) of the UGC Act. JU is sponsored by National
Society for Engineering Research and Development (NSERD) which
was formed in 1999 by Mr. Om Prakash Agrawal with a vision to
offer degree courses (both graduation and post-graduation) in
different streams such as Engineering, Management and Science.

As per the Audited results for FY16 (refers to the period April 1
to March 31), JU reported a TOI of INR46.51 crore (FY15: INR35.08
crore) and net surplus of INR2.56 crore (FY15: net deficit of
INR0.38 crore). Furthermore, as per the unaudited results for
H1FY17, the university has reported a TOI of INR28.05 crore.


JOSEPH LESLIE: Ind-Ra Raises Long-Term Issuer Rating to 'B+'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Joseph Leslie
Dynamiks Manufacturing Private Limited's (JLDPL) Long-Term Issuer
Rating to 'IND B+' from 'IND B'.  The Outlook is Stable.  The
instrument-wise rating actions are:

   -- INR97 mil. Fund-based limits raised to 'IND B+/Stable'
      rating; and

   -- INR68.7 mil. Non-fund-based limits affirmed with 'IND A4'
      rating

                          KEY RATING DRIVERS

The upgrade reflects JLDPL's improvement in the scale of
operations on account of a higher volume of order executions as
evident from its revenue of INR263 million in FY16 (FY15: INR181
million).  The ratings reflect an improvement in the overall
financial profile.  Operating EBITDA interest coverage (operating
EBITDA/interest) was 1.6x in FY16 (FY15: negative 3.3x) and net
leverage (net debt/operating EBITDA) was 4.6x (negative 2.0x).
Operating EBITDA margins were 5.4% (negative 14.6%). Improvement
in credit metrics and margins were mainly due to a positive
EBITDA after continued EBITDA losses by the company in FY15 and
FY14 as a result of its dissociation with the German-based
Dragerwerk AG.

The ratings benefit from its founders' experience of more than
two decades in the safety rescue and fire related product
manufacturing business.

The ratings, however, are constrained by JLDPL's tight liquidity
profile as the company reported instances of over utilization of
the working capital limits for the 12 months ended February 2017,
which were regularized within 1-2 days.  Average fund-based
utilization was at 99.78% during the same period.

                       RATING SENSITIVITIES

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

Negative: A negative rating action may result from decline in the
scale of operations along with deterioration in the credit
metrics of the company.

COMPANY PROFILE

JLDPL was incorporated in 1987 as Joseph Leslie Drager
Manufacturing Pvt Ltd by the Mumbai-based Leslie family and
Dragerwerks.  In 2013, the company disassociated with Dragerwerks
and commenced business under the present name.  The company
trades and manufactures equipment used in gas detection, fire
safety and disaster management and has its manufacturing unit in
Vasai (Maharashtra).


K. VENKATA: ICRA Reaffirms 'B+' Rating on INR25cr Loan
------------------------------------------------------
ICRA Ratings has reaffirmed the long-term rating of [ICRA]B+
assigned to the INR9.00 crore1 fund based limits and INR25.00
crore non fund based limits of K. Venkata Raju Engineers &
Contractors Private Limited (KVRECPL). The outlook on the long
term rating is stable.

                          Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Fund Based Limits         9.00     [ICRA]B+ (Stable) Reaffirmed
  Non Fund Based Limits    25.00     [ICRA]B+ (Stable) Reaffirmed

Rationale

The reaffirmation of rating continues to be constrained by the
tight liquidity position of the company as reflected by the full
utilization of working capital limits over the past 15 months
owing to stretched receivables position; small scale of
operations with revenues of ~Rs. 45-50 crore over the past two
years in the civil construction industry; and modest coverage
metrics with interest coverage of 2.05 times, NCA/Debt of 10% and
Debt/OPBITDA of 4.34 times for FY2016 due to high debt levels.
The rating is further constrained by the high competitive
intensity among civil contractors due to tender based nature of
business. The rating, however, favourably factors in the nearly
twenty five years of promoters' experience in executing civil
contract works; healthy order book size of INR190 crore as on
January 31, 2017 which provides revenue visibility in the medium
term; and geographically diversified work order book spread
across various states in the country.

Going forward, the ability of the company to increase its scale
of operation and manage efficiently its working capital
requirements will be the key rating sensitivities from credit
perspective.

Key rating drivers

Credit Strengths

* More than 25 years of promoters' experience in undertaking
civil contracts; established relationship with NHAI, Railways,
etc. as reflected by repeat orders

* Healthy order book size of INR190 crore as on January 31, 2017
(3.86 times of operating income of FY2016) provides revenue
visibility for the medium term

* Low geographic concentration risk with projects spread across
states of Telangana, Andhra Pradesh, Tamil Nadu, Jharkhand,
Karnataka, and Maharashtra

Credit Weakness

* Moderate scale of operations with revenues of INR45-50 crore
over the past two years due to slow order execution due to delays
from government departments

* Tight liquidity position of the company as reflected by full
utilization of working capital limits over the past 12 months on
account of high debtors

* High competitive intensity in the civil contracts industry due
to tender based business keeps pressure on the margins

Description of key rating drivers highlighted above:

The promoters of KVRECPL have been involved in executing civil
contract works since 1990. The firm's scale of operations was
moderate at about INR60-65 crore between FY2010 and FY2014.
However, the revenues decreased substantially in FY2015 on
account of delay in number of work orders, especially the
projects awarded by state government departments due to land
acquisition issues. This also affected the company's ability to
secure new orders due to unavailability of sufficient bank
guarantee limits over the past two years. However, the company
has withdrawn from such projects and has been able to improve its
work order execution in FY2017 as most of the projects being
executed currently are for Central government institutions such
as Indian Railways and National Highways Authority of India
(NHAI), etc as opposed to state government works in the past.
The size of the order book is healthy at INR190 crore as on
January 31, 2017 which provides revenues visibility for the
medium term. Further, the projects are spread across various
states across India which reduces the geographic concentration
risk. However, the company continues to face liquidity issues due
to high debtors from various departments and other private
customers due to which the working capital borrowings are
consistently high leading to stretched debt coverage metrics.
Moreover, due to tender based nature of contracts, the firm is
also exposed to high competition from other players which keep
margins under check.

Established in 1990, K. Venkata Raju Engineers & Contractors is
an infrastructure construction company engaged in the
construction of highways, runways, over-bridges, power
transmission lines and more. In June 2014, the firm was
incorporated as K Venkata Raju Engineers & Contractors Private
Limited. The company has operations in several states such as
Andhra Pradesh, Telangana, Maharashtra, Jharkhand, and Odisha.

Recent Results:
As per the recent audited financials for FY2016, the company
reported profit after tax of INR1.56 crore on turnover of
INR49.39 crore as against profit after tax of INR1.30 crore on
turnover of INR46.47 crore during FY2015. As per the provisionals
for 10mFY2017, the company reported a profit before tax of
INR4.05 crore on a turnover of INR47.03 crore.


KAMINENI HEALTH: CARE Withdraws 'D' Rating on INR18.28cr Loan
-------------------------------------------------------------
CARE Ratings has withdrawn the rating assigned to the Bank
facilities of Kamineni Health Care Private Limited with immediate
effect, as the company has repaid the term loan in full and there
is no amount outstanding under the loan as on date.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            18.28       CARE D Withdrawn

Kamineni Health Care Private Limited (KHC), was incorporated in
December 2007 and was promoted by Mr. Kamineni Shashidhar. KHC
started its operations in August 2014 by setting up a super
specialty hospital in Vijayawada, Andhra Pradesh. Currently the
hospital is operating capacity of 300 beds capacity (20 beds in
Intensive Care Unit (ICU), 100 for critical care treatment and
180 beds in General ward). The hospital is equipped with state of
the art equipment and well qualified & experienced
doctors/surgeons.

KHC is a part of Hyderabad based Kamineni group which has
presence in manufacturing of steel billets, steel pipes,
healthcare and education sectors.


KARAN RICE: CARE Assigns B- Rating to INR9.90cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Karan
Rice Mills (KRM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.90       CARE B-; Stable Assigned

Detailed Rationale & Key Rating drivers

The rating assigned to the bank facilities of KRM is constrained
by its small scale of operations with low PAT margin, high
gearing ratio, weak debt coverage indicators and elongated
operating cycle. The rating is further constrained by
susceptibility to fluctuation in raw material prices & monsoon
dependent operations, the firm's presence in fragmented nature of
industry and partnership nature of its constitution. The rating,
however, derives strength from experienced partners and
locational advantages. Going forward, the ability of the firm to
scale up its operations while improving its solvency position and
managing its working capital requirements efficiently would
remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced partners: The partners have an experience of around
three decades through their association with KRM and other group
concerns namely Krishan Chand Hari Ram and KC Rice Mill. This has
aided the firm in having established relationship with customers
and suppliers.

Location advantages

The firm's processing facility is situated at Sangrur, Punjab
which is one of the largest producers of paddy in India. Its
presence in the region gives additional advantage over the
competitors in terms of easy availability of the raw material as
well as favorable pricing terms.

Key Rating Weakness

Small scale of operations with low PAT margin: Despite long track
record, the firm's scale of operations has remained small marked
by TOI of INR9.42 crore for FY16 (refers to the period April 01
to March 31). The PBILDT margin stood moderate at 7.62% in FY16.
The PAT margin, however, stood low at 0.08% in FY16.

High gearing and weak debt coverage indicators: KRM has leveraged
capital structure with overall gearing ratio of 6.87x as on
March 31, 2016 mainly on account of firm's high reliance on bank
borrowings to fund various business requirements. Additionally,
total debt to GCA stood weak at 53.63x for FY16 and the interest
coverage ratio of KRM stood weak at 1.23x for FY16.

Elongated operating cycle: The average operating cycle of the
firm stood elongated at 186 days for FY16.

Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, as it is dependent on the availability of raw
materials, which further varies with different harvesting
periods. The price of rice moves in tandem with the prices of
paddy. Availability and prices of agro commodities are highly
dependent on the climatic conditions. Adverse climatic conditions
can affect their availability and leads to volatility in raw
material prices.

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

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

Karan Rice Mills (KRM) was established in 1997 as a partnership
firm and is currently being managed by MrHarmesh Kumar, Mr. Jiwal
Lal, Mr. Raj Pal and Mr. Hari Ram as its partners sharing profit
and loss equally. The firm is engaged in processing of paddy and
milling of rice at its manufacturing facility located at Sangrur,
Punjab having an installed capacity of 7200 metric tonne of paddy
per annum as on March 31, 2016. The firm is also engaged in
trading of rice [income from trading constituted around 20% of
the total revenue in FY16. The firm sells basmati and non-basmati
rice to wholesalers based in Maharashtra, Delhi, Gujarat,
Haryana, Punjab and Chandigarh through a network of dealers and
distributors. The firm majorly procures paddy directly from local
grain markets located in Punjab. Besides KRM, the partners are
also engaged in managing another group concerns namely Krishan
Chand Hari Ram and KC Rice Mill. Krishan Chand Hari Ram is
engaged in trading of paddy, wheat and other seasonal crops since
1986 in Sangrur, Punjab. KC Rice Mill is engaged in the
processing of paddy since 1995 in Sangrur, Punjab.

In FY16, KRM has achieved a total operating income of INR9.42
crore with PAT of INR0.01 crore, as against the total operating
income of INR7.29 crore with PAT of INR0.01 crore in FY15. In
9MFY17 (Provisional), the firm has achieved total operating
income of INR5 crore.


KATARIA MOTORS: CARE Reaffirms B+ Rating on INR2.09cr Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Kataria Motors Private Limited (KMPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             2.09       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of KMPL continues to
remain constrained on account of its modest scale of operation,
weak debt protection and liquidity indicators coupled with
negative net-worth as on March 31, 2016, owing to net losses in
past years. The rating further remained constrained by its
presence in competitive automobile dealership industry and
limited bargaining power against the principle automobile
manufacturers.

The rating, however, positively factors in wide experience of the
promoters in the auto dealership business, the company being sole
distributor of Bharat Benz Trucks manufactured by Daimler India
Commercial Vehicles Private Limited (Daimler) for Ahmedabad,
Vadodara, Surat and Vapi region, diversified income stream and
growth in its Total Operating Income (TOI) as well as improvement
in operating profitability during FY16 (refers to the period
April 01 to March 31). The ability of KMPL to augment its net-
worth base and improve its capital structure & liquidity
indicators would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Negative net-worth base, week debt cover and liquidity
indicators: Due to net losses in past years, net-worth base of
KMPL eroded as against its total debt of around INR80 crore. High
debt is a resultant of company's effort to increase its presence
across the Gujarat state. Moreover, its debt cover indicators are
week due to low cash profits while its liquidity marked by below
unity current ratio remained week during FY16. Presence in
competitive auto dealership business with limited bargaining
power against principal automobile manufacturers: The automobile
dealership market participant faces stiff competition from
established dealers of other automobile manufacturers. This
forces the dealers to attract customers by way of offering
discounts and add on products on the vehicles which create margin
pressure. Moreover, the dealers also have limited bargain power
over the principal manufacturers thereby restricting the ability
to earn incremental income.

Key Rating Strength

Vastly experienced promoters in Auto dealership and diversified
income stream: KMPL's key promoter is associated with auto
dealership business for over three decades through his
association with other group entity. Kataria group has presence
across the Gujarat state and is having dealership for two-wheeler
bikes & scooters, passenger cars as well as for trucks and luxury
car.
Apart from auto dealership, KMPL also generates income from auto
servicing (including spare parts sales) & commission from finance
& insurance companies that forms 14% of TOI in FY16.

Growth in scale of operation and improvement in operating
profitability: KMPL has reported Y-o-Y growth of 27% in its
TOI mainly due to its effort to increase presence across the
Gujarat state. Moreover, its operating profit margins also
improved owing to increase in income from trucking segment which
has higher margins coupled with higher income from auto servicing
and commission income during FY16.

Ahmedabad-based (Gujarat) KMPL is a part of the Kataria group
that has been in the automobile dealership business for over 3
decades. Automobile dealership business in the name of 'Kataria
Transports' was incorporated by one of KMPL's current directors,
Mr. Rajendra Kataria in 1983.

Incorporated in 2002, KMPL is an authorized dealer for sale of
trucks with Daimler, the makers of Bharat Benz trucks and an
authorized dealer of TVS Motor Company Limited (TVS) for selling
of two-wheeler vehicles. Income from Daimler's truck dealership
contributed around 77% of KMPL's TOI during FY16.

As per the audited result for FY16, KMPL has reported a PAT of
INR1.26 crore [Net loss of INR0.66 crore in FY15] on a TOI of
INR141.11 crore [Rs.110.97 crore in FY15].


LATHA RICE: CARE Reaffirms 'B' Rating on INR9.39cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Latha Rice Industries (LRI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.39       CARE B; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of LRI are constrained
by nascent stage of operations, the ability of the company to
utilize the capacity installed, presence in highly fragmented and
regulated rice milling industry
and susceptibility of margins due to seasonal nature of
operations and volatility in raw material (paddy) prices.

The above weaknesses are partially offset by the promoter's
extensive experience of over two decades in the rice milling
industry with execution of project and commencement of
operations.

The ability of the firm to utilise the installed capacity and
attain the projected revenue and profitability margins without
deterioration in the capital structure is a key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced partners: The promoters of LRI, Mr. Nagayya
Muppavarappu and Mr. Mahendra Muppavarappu have an experience of
over two decades in trading of rice primarily in Maharashtra,
Madhya Pradesh and Andhra Pradesh. LRI is likely to be benefited
by the experience of the promoter in operating a rice industry.

Key Rating Weaknesses

Nascent stage of operations and project stabilization risk: The
project has commenced operations from October 2016 and has
completed five months of operations till February 2017 with
average capacity utilization of around 50% in 5MFY17 (period from
October 2016 to February 2017). The firm faces risk of
stabilization in light of competition.

Presence in highly fragmented and regulated rice milling
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. In the
recent past, export of agro-based commodities have been subject
to certain policy changes like lifting ban on export of non-
basmati rice, frequent changes in minimum export price in respect
of basmati rice and the quota imposed on quantity to be traded.
Any adverse change in policies of government can affect business.

Susceptible profit margins: Agro-based industry is characterized
by its seasonality, as it is dependent on the availability of
raw materials, which further varies with different harvesting
periods. The prices of rice move in tandem with the prices of
paddy. Availability and prices of agro commodities are highly
dependent on the climatic conditions. Adverse climatic conditions
can affect their availability and lead to volatility in raw
material prices thereby leading to fluctuation of profit margins.

Latha Rice Industries (LRI) was established as a partnership firm
in the October 2015 by Mr. Mahendra Muppavarappu and Mr. Nagayya
Muppavarappu. The firm was initially set up as a proprietorship
by Mr. Mahendra Muppavarappu on May 01, 2015, and was
reconstituted as a partnership by current partners on October 1,
2015. The firm is setting up a fully automated rice mill. The
processing facilities are located at Nagpur, Maharashtra with
rice milling capacity of 48000 tonnes per annum (TPA). The major
raw material for the firm is paddy, which is partly procured from
farmers and from the Vidarbha Region in Maharashtra,
Chhattisgarh, Madhya Pradesh and Andhra Pradesh. The finished
product of LRI is sold under the brand name Bahubali. The project
has been successfully completed and the operations commenced from
October 2016 with average capacity utilization of around 50% in
5MFY17 (period from October 2016 to February 2017).


M.T. PATIL: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
-------------------------------------------------------
India Ratings has affirmed M.T. Patil Builders and Contractors
Private Limited's Long-Term Issuer Rating at 'IND BB'.  The
Outlook is Stable.  The instrument-wise rating actions are:

   -- INR45 mil. Fund-based facilities affirmed with
      'IND BB/Stable' rating; and

   -- INR67.50 mil. Non-fund-based facilities (increased from
      INR 65.00) affirmed with 'IND A4+' rating

                        KEY RATING DRIVERS

The affirmation reflects Patil's continued small scale of
operations.  According to unaudited 11MFY17 financials, revenue
was INR430 million (FY16: INR407 million, FY15: INR775million).

The ratings reflect Patil's moderate credit metrics.  In FY16,
net leverage (adjusted debt net of cash/EBITDA) was 2.6x (FY15:
1.7x) and EBITDA interest coverage (operating EBITDA/gross
interest expense) was 4.1x in FY16 (FY15: 5.3x).  Credit metrics
deteriorated owing to a slowdown in the revenue growth and a
shortfall in the order book in FY16.  Ind-Ra expects Patil's
credit metrics to improve in the short-term, considering the
company does not have term debt in its books and a likely
improvement in the scale of operation in FY18.

The ratings are constrained by volatile EBITDA margin and
continued tight liquidity position. EBITDA margin was between
8.4%-11.2% over FY13-FY16 as profitability is derived from
execution of different projects.  Patil's average peak use of
fund-based working capital facilities was 90.2% during the 12
months ended February 2017.

The ratings, however, continue to be supported by the promoters'
two decades of experience in civil construction.  Moreover, the
ratings are supported by an improved order book, which provides
moderate revenue visibility for the next one year.  Patil has an
outstanding order book of INR755.44 million (1.85x of FY16
revenue) as on March 2017.  The management expects to complete
the orders by FYE18.

                        RATING SENSITIVITIES

Negative: Any further decline profitability resulting in a
sustained deterioration in credit profile of the company will
lead to a negative rating action.

Positive: Substantial growth in the top line continues like FY15
and an improvement in EBITDA margin leading to a sustained
improvement in credit metrics will lead to a positive rating
action.

COMPANY PROFILE

Incorporated in 1997, Patil is engaged in the business of civil
construction, such as roads and bridges, in and around Nashik.


MADHUSUDAN GARAI: ICRA Reaffirms 'B' Rating on INR3.50cr Loan
-------------------------------------------------------------
ICRA Ratings has reaffirmed the long-term rating of [ICRA]B to
the INR3.00 crore cash credit and INR3.50 crore bank guarantee
facilities of Madhusudan Garai (MG). The outlook on the long-term
rating is 'Stable'. Earlier, the rating was suspended in the
month of December, 2016 in the absence of the requisite
information from the concern, which currently stands revoked.

                          Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Fund Based Limits         3.00     [ICRA]B (Stable) reaffirmed;
                                     suspension revoked

  Non Fund Based Limits     3.50     [ICRA]B (Stable) reaffirmed;
                                     suspension revoked

Rationale

The reaffirmation of rating takes into account MG's relatively
small scale of current operations and the weak financial profile
as reflected by low profits and cash accruals, and subdued
coverage indicators. The rating also takes note of high working
capital intensity of the business on account of high receivables
that exerts pressure on the liquidity position of the concern.
The rating is also impacted by high geographic concentration
risk, with operations limited in West Bengal, and highly
fragmented and competitive nature of the industry, which coupled
with tender based contract awarding system, keeps a check on the
profitability. The concern remains exposed to the volatility in
raw material prices, though presence of price variation clauses
in some of the contracts reduces such risk to an extent. The
rating further incorporates the risk associated with the entity's
status as a proprietorship concern, including the risk of capital
withdrawal by the proprietor.

The rating, however, derives comfort from the promoter's long
experience in the civil construction business, reputed clientele,
which mitigates counterparty credit risk to a large extent, and a
conservative capital structure.

In ICRA's opinion, the ability of the concern to increase its
scale of operations while maintaining its profitability and
capital structure, improving coverage indicators and managing
working capital requirements efficiently would remain key rating
sensitivities, going forward.

Key rating drivers

Credit Strengths

* Established track record of the promoter in the civil
construction business, with an experience of around four decades

* Reputed customer profile, which mitigates counterparty credit
risk to a large extent

* Relatively small scale of current operations

* Fragmented and highly competitive nature of the industry,
coupled with tender based contract awarding system, keeps
profitability under check

* High working capital intensity of the business exerts pressure
on the liquidity position

* Exposure to the volatility in raw material prices, though
presence of price variation clauses in some of the contracts
reduces such risk to an extent

* High geographical concentration risks, with operations limited
in West Bengal

* Risk associated with the entity's status as a proprietorship
concern, including the risk of capital withdrawal by the
proprietor

Description of key rating drivers highlighted above:

MG was established in 1979 and undertakes construction and
maintenance of roads, car sheds, buildings, bridges, subways,
structural steel sheds etc. in West Bengal for various Government
departments like Public Works Department (PWD), Central Public
Works Department (CPWD), West Bengal State Rural Development
Agency (WBSRDA), Eastern Railways etc. With around four decades
of operations, the promoter has a proven track record in the
civil construction industry and association with various
Government departments reduces counterparty risk to a large
extent. However, since the entire contractual work executed by
the concern remains limited to West Bengal, it remains exposed to
high geographic concentration risk. Moreover, in small and
medium-sized Government civil construction projects, the
qualification criteria is less stringent, which leads to low
entry barriers, allowing a large number of players to enter in
this sector, thus intensifying competition. Additionally, with
contracts being awarded to the L1 bidder, margins in such
contracts remain under pressure. However, the presence of the
price escalation clause in some contracts reduces the
vulnerability of the concern's profitability to variation in raw
material prices to an extent.

The concern's operating income decreased by ~43% from INR16.59
crore in FY2015 to INR9.42 crore in FY2016 due to low orders
executed during the year on the back of delay in obtaining
necessary regulatory approvals. Moreover, the concern did not
undertake low profitable contracts, which also led to a decline
in the top-line of the concern. The operating margin increased to
9.56% in FY2016 due to lower input material costs vis-Ö-vis
realisations over the previous fiscal. However, the net profit
margin declined, and remained subdued in FY2016, which is
impacted by high interest and finance costs and decline in the
non-operating income. The capital structure remained
conservative. High debt level, coupled with low profitability has
kept the debt coverage indicators weak. The concern's working
capital intensity of operations has remained high due to high
inventory holding, as reflected by net working capital relative
to operating income (NWC/OI) of 29% in FY2016.

Analytical approach: For arriving at the ratings, ICRA has taken
into account the debt servicing track record of MG, its business
risk profile, financial risk drivers and the management profile.

Established in 1979, Madhusudan Garai (MG) is promoted by the
Nadia-based Mr. Madhusudan Garai. It is involved in construction
and maintenance of roads, car sheds, buildings, bridges, subways,
structural steel sheds etc. in West Bengal. Mr. Garai has an
experience of around four decades in the civil construction
business.


MANI EXPORT: Ind-Ra Lowers Long-Term Issuer Rating to 'BB-'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Mani Export
Private Limited's (MEPL) Long-Term Issuer Rating to 'IND BB-'
from 'IND BB'.  The Outlook is Stable.  The instrument-wise
rating actions are:

   -- INR350 mil. (reduced from INR498) Fund based limits lowered
      to 'IND BB-/Stable' rating; and

   -- INR4 mil. (increased from INR2) Non-fund based limits
      affirmed with 'IND A4+' rating

                        KEY RATING DRIVERS

The downgrade reflects an overall deterioration in MEPL's credit
profile due to lower realizations and sluggish export demand
owing to unfavorable price movements.  In FY16, revenue was
INR1,266.8 million (FY15: INR1,815.6 million), net leverage (net
adjusted debt/operating EBITDAR) was 10.72x (9.91x), interest
coverage (operating EBITDA/gross interest expense) was 1.29x
(2.25x) and EBITDA margin was 3.73% (4.62%).

The ratings factor in a further elongation of the net working
capital cycle to 223 days in FY16 (FY15: 161 days), driven by
higher inventory days, and a moderate liquidity position.  MEPL's
average utilization of fund-based facilities over the 12 months
ended February 2017 was 90%.

The ratings, however, continue to derive strength from over four
decades of experience of MEPL's promoters in diamond trading and
processing.  Also, the debt of the company comprises only working
capital facilities.  Hence, it does not have any repayment
obligations.

                       RATING SENSITIVITIES

Negative: A decline in the profitability and/or elongation in the
net working capital cycle leading to a deterioration in credit
metrics would be negative for the ratings.

Positive: Substantial revenue growth, while the profitability
being maintained, leading to an improvement in credit metrics
would be positive for the ratings.

COMPANY PROFILE

Incorporated in 1987, MEPL has a head office in Mumbai and
factories in Gujarat.  The firm cuts, processes and polishes
rough diamonds and exports them to various countries such as Hong
Kong, the US, the UAE and Belgium.  The company also has two
windmills with a capacity of 0.6MW each in Kutch, Gujarat.  The
windmills provide power to all factories.

According to provisional results for 11MFY17, revenue was
INR1.322 billion.


MB POWER: CARE Lowers Rating on INR5,196cr LT Loan to 'D'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
MB Power (Madhya Pradesh) Limited (MBPL), as:

                          Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long-term Bank          5,196       CARE D Revised from
   Facilities (Fund                    CARE BB+
   Based-Term Loans)

   Long-term Bank            758       CARE B; Stable Revised
   Facilities (Fund                    from CARE BB+
   Based-ECBs)

   Long-term Bank            677       CARE B; Stable Revised
   Facilities (Fund                    from CARE BB+
   Based-Cash Credit)

   Long-term Bank            888       CARE B; Stable Revised
   Facilities (Non-                    from CARE BB+
   Fund Based)

   Short-term Bank            49       CARE A4 Revised from
   Facilities (Non-                    CARE A4+
   Fund Based)

Detailed Rationale & Key Rating Drivers

The revision in the rating ([i] above) of MBPL takes into account
the instances in delays in servicing of the debt obligations by
the company. The revision in the ratings ([ii] to [v] above)
takes into account the stretched liquidity position of the
company following delay in commencement of operations from 600 MW
Unit II. The revision also factors in MBPL's weakened financial
risk profile marked by losses at the net level and the company's
weak capital structure as well as debt coverage indicators.
Furthermore, the ratings continue to remain constrained by below
average financial risk profile of power off-takers. The ratings,
however, continue to derive strength from the presence of Fuel
Supply Agreement for the supply of coal and long term off-take
arrangement through long term Power Purchase Agreement (PPA) for
about 67% of total capacity. The ratings take cognizance of
receipt of on account payment of INR199.81 crore from insurance
company with respect to insurance claim post-accident in 600 MW
Unit II.

Going forward, the company's ability to service its debt
obligations in a timely manner and register improvement in
overall financial risk profile shall be the key rating
sensitivities.

Detailed description of the key rating drivers

Delay in commencement of operations from 600 MW Unit II

The company had achieved the COD of both the units of 600 MW on
April 20, 2015 and March 30, 2016 respectively. While the Unit-I
has been operating satisfactorily since commissioning, the
operations of Unit-II are under shutdown since May 16, 2016 on
account of an accident in the boiler. As per the reports, large
quantity of clinker formation took place within the boiler which
fell into the bottom of ash hopper leading to excess steam
formation which eventually resulted in boiler explosion. The
repair/restoration work is under process and the unit-II is
likely to resume operation in June 2017. Lower than envisaged
generation owing to shutdown of unit II coupled with committed
debt repayment led to stretched liquidity position leading to
delay in debt servicing. The company availed a corporate loan
aggregating INR250 crore to meet the repair and maintenance cost
for Unit-II and cash flow mismatch due to shut down of unit-II.

Below average credit profile of power offtakers: MBPL is
supplying power to UPPCL and MPPMCL, having a relatively weak
financial profile as reflected by high AT&C losses, significant
subsidy support from the government, and relatively long payable
cycle.

Long term power offtake arrangement: The company has entered into
PPA with MPPMCL and GoMP. It is selling 420-MW power to MPPMCL
and GoMP (5% capacity at variable cost for the life of the
project to GoMP and 30% at tariff determined by CERC for 20 years
to MPPPCL), with coal cost pass through clause. In addition to
this, MBPL signed a PPA with PTC India Ltd for sale of 400 MW
(361 MW net of Aux.) power with "Take or Pay" provision. With
respect to back to back tie-up of this power by PTC India Ltd
with discom, a PPA has been signed between PTC India Ltd and
Uttar Pradesh Power Corporation Ltd (UPPCL) at a levelised tariff
of INR5.73/unit (under case I bid).

Fuel supply agreement with SECL

MBPL has signed FSA with South Eastern Coalfields Limited (SECL)
for supply of 4.99 MTPA of coal which mitigates the fuel risk for
the project as the contracted quantity is sufficient to meet the
entire coal requirement of the project for operating plant at 85%
PLF.

Update on insurance and flexible structuring under 5/25 scheme of
RBI

The company had filed the insurance claim for both material
damage as well as loss of profit with respect to accident in
Unit-II. Interim report for machinery damage and business
interruption has been submitted and on account payment
aggregating INR199.81 crore with respect to both the claims has
been received till March 9, 2017.

The company had initiated for refinancing of its project loan
during November 2016 under the flexible structuring scheme
of RBI (5/25 scheme) to align its cash flows with the repayment
obligations. As confirmed by the lead lender State Bank of
India, all the lenders have approved flexible structuring of long
term project loans under 5:25 scheme with cutoff date as
October 31, 2016.

MB Power (Madhya Pradesh) Ltd (MBPL) is a subsidiary of Hindustan
Thermal Projects Limited (HTPL, erstwhile Moser Baer Power &
Infrastructures Limited) which is in turn a subsidiary of
Hindustan Power Projects Private Limited (HPPL, erstwhile Moser
Baer Projects Private Limited), the flagship entity of Hindustan
Power group, promoted by Mr. Ratul Puri. MBPL is setting up a 2 x
600 MW coal-based sub-critical thermal power plant in District
Anuppur, Madhya Pradesh, of which 600 MW (Unit I) has already
become operational in May 2015. Synchronization of Unit II was
done in March 2016, however currently the unit-II is temporarily
shut down on account of an accident in the boiler on May 16,
2016. The project was originally appraised at a cost of INR6,240
crore which was revised to INR8,000 crore funded in the debt to
equity of 2.83:1.

The company has tied up about 67% of the total capacity, i.e.
1200 MW, under long-term Power Purchase Agreements (PPA) with MP
Power Management Company Ltd (MPPMCL, erstwhile MP Power Trading
Company Ltd) and PTC India Ltd  (PTC has done back to back tie-up
with Uttar Pradesh Power Corporation Ltd (UPPCL)). Remaining
capacity is tied up through a PPA of 125 MW with Manikaran Power
Limited (MPL) and 225 MW with Mittal Processors Private Limited
(MPPL). Both the PPAs are valid from June 1, 2016 to May 31, 2019
which can be extended further with mutually agreed terms and
conditions.

During FY16 (refers to the period April 1 to March 31), MBPL
reported a total operating income of INR1,262.08 crore with
a PBILDT and net loss of INR370.99 crore and INR306.76 crore,
respectively.


MODERN MACHINERY: CARE Assigns B+ Rating to INR9.30cr LT Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Modern
Machinery Store (MMS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.30       CARE B+; Stable Assigned

   Long-term/Short-       0.30       CARE B+; Stable/CARE A4
   term Bank                         Assigned
   Facilities

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of MMS are
constrained due to its modest scale of operation, thin operating
profit margin inherent to automobile dealership business,
relatively high leverage due to its dependence on external
borrowings to fund the trading inventory and weak debt coverage
indicators.

The ratings also take into account the firm's presence in a
highly competitive automobile dealership business, limited
bargaining power against the principal automobile manufacturers
and partnership constitution which exposes it to withdrawal of
capital by partners.

The ratings, however, positively factor the vast experience of
partner in the auto dealership business, the firm being sole
distributor of Hyundai Motor India Limited's (HMIL) vehicles for
Alwar region resulting in healthy growth reported in sales of
passenger vehicles during the period FY14 to FY16 (refers to the
period April 1 to March 31) and diversified income stream.

MMS's ability to increase scale of operations coupled with
improvement in operating profit margin is the key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Modest scale of operations, thin operating profit margin and weak
debt coverage: MMS's TOI has remained modest during FY16 with
compound annual growth of 14% during the period FY14 to FY16
owing to growth in HMIL's Passenger car segment. Firm's PBILDT
margin is thin mainly due to inherently thin margins in auto
dealership business. MMS overall gearing has improved as on March
31, 2016 after subordination of unsecured loans to bank debt,
albeit is relatively high mainly due to the firm's reliance on
bank borrowing to fund for building of inventory of automobiles.
The debt coverage indicators for the firm have remained weak
mainly due to thin operating profit margins coupled with high
dependence on external working capital debt resulting in high
Interest/ finance cost.

Presence in competitive automobile dealership business with
limited bargaining power against principal automobile
manufacturers: The automobile dealership market participant faces
stiff competition from established dealers of other automobile
manufacturers. This forces the dealers to attract customers by
way of offering discounts and add on products on the vehicles
which create margin pressure on the firms. Moreover, the dealers
also have limited bargaining power over the principal
manufacturers thereby restricting the ability to earn incremental
income.

Key Rating Strength

Experienced partner in Auto dealership, long track record and
diversified income stream: MMS key partner is associated with the
firm since it started its auto dealership business in 1987. Until
transfer of its Car segment to its group entity in July 2016, MMS
was the sole dealer for HMIL in the Alwar region. Apart from auto
dealership of HMCL's 2W and HMIL's cars, the firm also generates
income from sale of John Deere's tractors and spare parts & auto
servicing.

Incorporated as a partnership firm in 1954 by Gupta family,
Alwar-based (Rajasthan) MMS is engaged in auto dealership
business. MMS is an authorized dealer for two wheelers (2W) of
Hero Moto Corp Limited (HMCL). Besides, it also operates
dealership of John Deere India Private Limited (JDIPL). The firm
has a 3S (sales, service and spares) facility in Alwar. Until
July 2016, MMS was also the sole authorized dealer for passenger
cars of HMIL in Alwar region; however, the business pertaining to
HMIL has now been shifted by the promoters in newly incorporated
Modern Autocar Private Limited (MAPL).

As per the audited result for FY16, MMS reported a PAT of INR0.10
crore [INR0.09 crore in FY15] on a TOI of INR116.71 crore
[INR103.13 crore in FY15].


NAGAPATTINAM MUNICIPALITY: Ind-Ra Assigns 'BB' Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Nagapattinam
Municipality a Long-Term Issuer Rating of 'IND BB'.  The Outlook
is Stable.

                        KEY RATING DRIVERS

The rating reflects Nagapattinam's inadequate civic
infrastructure including lack of proper water supply services,
sewerage and storm water drainage network, thus impacting the
city's economic growth. Ind-Ra believes Nagapattinam Municipality
will require huge investments for upgrading the infrastructure in
the city to provide proper civic services.

Nagapattinam has a high level of dependence on the state
government (compensation in lieu of stamp duty, and revenue
grants and contributions).  The municipality depends on property
tax and other taxes for revenue.  With the introduction of Atal
Mission for Rejuvenation and Urban Transformation (AMRUT)
projects, Nagapattinam Municipality is expected to receive INR4.2
billion as grant from the government of India and INR1.68 billion
from the state government for development of parks and green
space, sewage, water supply and storm water drainage.

Nagapattinam Municipality's revenue grew at a CAGR of 7.82% to
INR63.52 million during FY12-FY16 (FY15: INR60.48 million).  The
municipality's major own source of revenue comprises property
tax, which contributes an average 62.95% to the total revenue.
Non-tax revenue was INR10.53 million in FY16 (FY15: INR10.02
million), majorly driven by water charges.  However, it reported
negative operating margin during FY15-FY16 due to high employee
costs and administrative expenses.

Nagapattinam is a tourist attraction with the presence of
heritage and historic points such as Nagore, Velankanni, among
others.  The city has limited industrial activities; major
industries are household, tailoring, embroidery, plastic wire and
metal manufacturing.  Nagapattinam's main occupation is fishing
and has a number of ice factories for preserving fishes.

                        RATING SENSITIVITIES

Positive: A significant improvement in Nagapattinam
Municipality's operating performance and rolling out of the AMRUT
reforms within the stipulated time frame would positively impact
the rating.

Negative: A financial burden in the form of debt obligations and
withdrawal of revenue support without a suitable compensatory
plan would trigger a negative rating action.

COMPANY PROFILE

Nagapattinam Municipality was constituted on Oct. 24, 1866, and
was upgraded to Selection Grade Municipality effective May 22,
1998.  Beginning Oct. 19, 1991, the coverage area of the
municipality spreads over Nagapattinam and Nagore towns.
Nagapattinam is the administrative headquarters of Nagapattinam
district.  According to Census of India, the population of the
town increased to 1.62 million in 2011 from 1.49 million in 2001.


PANKAJ ISPAT: CARE Denotes Rating as B-/Issuer Not Cooperating
--------------------------------------------------------------
CARE Ratings has been seeking information from Pankaj Ispat Ltd
to monitor the rating(s) vide e-mail communications dated Feb. 1,
2017 and letter dated Feb. 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. Further,
Pankaj Ispat Ltd has not paid the surveillance fees for the
rating exercise as agreed to in its Rating Agreement. In line
with the extant SEBI guidelines CARE's rating on Pankaj Ispat
Ltd's bank facilities will now be denoted as CARE B-; ISSUER NOT
COOPERATING.

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

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

Detailed description of the key rating drivers

At the time of last rating in March 29, 2016, the following were
the rating strengths and weakness:

Key Rating Strengths

Long track record of the company

PIL, belonging to Agrawal family of Chhattisgarh, is promoted by
Mr. Lalit Agrawal and Mr. Pankaj Agrawal. The promoters of the
company have an experience of a decade as a manufacturer of steel
products. Mr. Lalit Agrawal earlier was into trading of steel
products and has an overall experience of more than three decades
in the steel industry.

Strategic location of manufacturing unit

The company's unit is located at mineral rich state of Raipur,
Chhattisgarh. The company avails operational advantages from its
strategic location due to proximity to source of raw-materials
(sponge iron, coal). Sponge Iron and coal are procured from local
players. Further, its customers are also located in and around
Raipur. Therefore, proximity to the raw materials and customers
leads to substantial savings in the freight cost.

Key Rating Weaknesses

Moderate Capacity Utilization

Capacity utilization of the company though remained moderate,
deteriorated in FY14 vis-a-vis FY13. The deterioration was mainly
on account of closure of the operations in the factory since June
2013 due to raid conducted by Steel Authority of India (SAIL)
along with the local police in April 2013. However in FY15, the
capacity utilisation improved. The effective capacity utilisation
of TMT Bars and M S Ingots stood at 79.33% and 96.10%
respectively in FY15 vis-a-vis 57.98% & 69.26% in FY14.
Lack of backward integration vis-a-vis volatility in prices Raw
material cost is the single largest cost component for PIL. With
company lacking backward integration for its primary raw
materials (such as coal, sponge iron), it has to resort to open
market purchases at the prevailing market prices. Hence, any
adverse movement in raw material price without any corresponding
movement in finished good price might affect the performance of
the company. Though, the prices of finished goods generally move
in tandem with that of raw materials; but with a time lag which
exposes the company to risk arising on account of volatility in
the raw material prices. Further, the company does not have the
captive power plant resulting in dependence on the grid so as to
meet its power requirement.

Fragmented industry leading to intense competition

PIL is engaged in the manufacturing of TMT bars and ingots, the
industry of which is characterized by high fragmentation mainly
due to presence of a large number of unorganized players. The
company markets its products in Central India, which is a hub of
steel plants, on account of proximity to the mineral rich states
of Chhattisgarh. Low level of product differentiation further
intensifies the competition, leading to lower bargaining power
vis-a-vis the customers.

Moderate financial performance

The total operating income of the company maintained an erratic
trend in the period FY13-FY15. In FY14, the total operating
income of the company declined and stood at INR 73.11 crore
vis-a-vis INR 114.90 crore in FY13. The decline was mainly on
account of closure of the operations in the factory since June
2013 due to raid conducted by Steel Authority of India (SAIL)
along with the local police in April 2013. The plant commenced
its operations from the month of October 2013.

The total operating income of the company increased in FY15
vis-a-vis FY14 and stood at INR 104.65 crore in FY15 vis-a-vis
Rs. 73.11 crore in FY14. The PBILDT level and margin of the
company deteriorated in FY15 vis-a-vis FY14 on account of
higher material cost. Further, the PAT level and margin of the
company also deteriorated in FY15 on account of higher
depreciation cost. The leverage ratios of the company
continuously improved in the period FY13-FY15 (on exclusion of
the share application money in FY13 & FY14). The improvement was
mainly on account of repayment of term loan and accretion
of profit to reserves. The interest coverage ratio of the company
though deteriorated in FY15 vis-a-vis FY14 stood moderate
at 1.60x in FY15.

As per the provisional 9MFY16 results, the company reported a PBT
of INR 0.84 crore on a total operating income of INR 85.15 crore.

Working capital intensive nature of operations

PIL operation is working capital intensive in nature as it has to
hold inventory of more than one month of raw materials so as to
ensure uninterrupted production and also stocks finished goods
inventory which is used for trading. Further as a result of
intense competition in the industry, the company has to provide
extended credit days to its customers. On the other hand
creditors have to be paid within a very short span of time as a
result of which the liquidity remains stretched. Hence, the
company has to rely upon the bank borrowings to fund its working
capital requirement. This is evident from high utilization of
working capital borrowings, which stood at about 92% during the
last 12 months period ended January, 2016.

Cyclicality associated with the steel industry

The steel industry is sensitive to the shifting business cycles,
including changes in the general economy, interest rates and
seasonal changes in the demand and supply conditions in the
market. Apart from the demand side fluctuations, the highly
capital intensive nature of steel projects along-with the
inordinate delays in the completion impact the responsiveness of
supply side to demand movements. This results in several steel
projects bunching-up and coming on stream simultaneously leading
to demand supply mismatch. Furthermore, the producers of steel
products are essentially price-takers in the market, which
directly expose their cash flows and profitability to volatility
of the steel industry.

PIL was originally set up in 2006 as a Private Limited company
(Pankaj Ispat Private Limited) which was reconstituted as a
public limited company on October 05, 2011. PIL commenced its
production in 2007-08. The company has a capacity of 24,000 MTPA
each of MS ingots and TMT Bar. The manufacturing facility of the
company is located in Gogaon Industrial Area, Raipur.

PIL's day to day operations are handled by Mr. Lalit Agrawal and
Mr. Pankaj Agrawal (son of Mr. Lalit Agrawal). Mr. Lalit Kumar
Agrawal & Mr. Pankaj Agrawal are having an experience of more
than three decades and more than a decade respectively in iron
and steel industry. They are well supported by a team of
experienced professionals.


PB LIFESTYLE: Ind-Ra Migrates 'B' Rating to Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated PB Lifestyle
Limited's (PBL) Long-Term Issuer Rating to the non-cooperating
category.  The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.  The ratings will
now appear as 'IND B(ISSUER NOT COOPERATING)' on the agency's
website.  The instrument-wise rating actions are:

  -- INR5 mil. Fund-based working capital limit with 'B' rating
     migrated to Non-Cooperating Category; and

  -- INR145 mil. Long-term loans with 'B' rating migrated to Non-
     Cooperating Category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 7, 2015.  Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

PBL, incorporated in April 2012 by Parag Sanghavi, is the master
and exclusive license-holder for the Playboy brand in India.  The
licensing agreement of PBL extends over a period of 30 years.
The company plans to launch Playboy-branded clubs,
restaurants/lounges and across India and also retail Playboy
merchandise including clothing, perfumes, accessories, etc.


PRAGATI ENGINEERING: ICRA Assigns B- Rating to INR3.28cr LT Loan
----------------------------------------------------------------
ICRA Ratings has assigned the long term rating of [ICRA]B- to the
INR0.28 crore term loan facilities, INR2.72 crore unallocated
limits, and INR3.00 crore cash credit facilities of Pragati
Engineering Belgaum Private Limited.  The outlook on long term
rating is stable.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term: Fund
  based limits           3.28       [ICRA]B- (Stable) Assigned
  Long term:
  Unallocated Limits     2.72       [ICRA]B- (Stable) Assigned

Rationale

The assigned rating takes into account the established track
record of the promoter group in the manufacture of precision
machine tools as also their continued support in the form of
interest free unsecured loans. The rating, however factors in the
decline in the operating income on depressed order flow from the
group company as also the decline in operating margins which
although remain high on account of presence in precision machine
parts manufacture. Further, the rating factors in the modest
scale of operations with considerable dependence on a single
client, its group company for sales. The rating also factors in
the stretched inventory levels and payables mainly on year end
purchases of raw material stock.

Going forward, maintaining optimal profitability levels as far as
the debt servicing is concerned as also managing inventory and
payables remain key sensitivities going forward.

Key rating drivers

Credit Strengths

* Established track record in manufacturing of precision machine
components and reputed client base in machine tool manufacturing
industry.

* Sizeable revenue growth in H1'FY2017.

* Continuous support from promoters in the form of interest free
unsecured loans

Credit Weakness

* Decline in operating income in FY'2016 on depressed order flow
from its major customer, Pragati Automation Private Limited which
contributes close to 90% of the topline.

* Decline in operating margins in FY'2016 although they still
remain high.

* Stretched capital structure on account of low net worth base
and high debt levels, although sizeable portion of debt consists
of unsecured loans

* Stretched liquidity position due to high receivables pending
from associate company.

* Modest scale of operations.

Description of key rating drivers highlighted above:

The company's customer base has been skewed in favor of group
company, PAPL. PEBPL procures 90% of the orders from PAPL with
rest from Atlas Copco Limited Pune. Thus the company's growth has
in the past fiscals being the function of order inflow from PAPL.
The company after witnessing a significant OI growth in FY'2015
has shown a decline in the same in FY'2016. OI declined to
INR12.9 crore in FY'2016 from INR16.9 crore in FY'2015 given the
muted order inflow from the principal customer, PAPL. The company
expects no major change in the operating margins in the next
fiscal with product portfolio remaining almost constant.NPM
remained negative in FY'2016 although the company recorded
profits at PBT levels.

The networth remained weak in past fiscals mainly due to impact
of accumulated losses resulting in adverse capital structure. The
adjusted gearing, however remained low as the debt profile
remained dominated by interest free unsecured loans from the
promoters. Working Capital Intensity remained comfortable at 7%
in FY'2016 as compared to 14% in FY'2015 mainly due to stretched
payables. The inventory remained stretched in FY'2016 in line
with FY'2015 mainly due to raw material stock and work in
progress.

Pragati Engineering Belgaum Private Limited (PEBPL) incorporated
in 1996 is promoted by Mr. Suresh Bhirangi, his son Mr. Mahesh S
Bhirangi and his associates/friends. The Belgaum (Karnataka)
based Pragati Engineering Belgaum Private Limited is involved in
manufacture of sub assemblies, precision components among others.
These components primarily find application in machine tool
industry among others.

The founders also have promoted entities like Pragati Automation
Private Limited (PAPL), Pragati Transmission Private Limited
among others.


PRATHAMESH: CARE Denotes Rating as B+/Issuer Not Cooperating
------------------------------------------------------------
CARE Ratings has been seeking information from Prathamesh
Constructions to monitor the rating(s) vide e-mail communications
dated November 29, 2016, January 11, 2017, January 24, 2017 and
February 23, 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. Furthermore, Prathamesh
Constructions has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. In line with the
extant SEBI guidelines, CARE's rating on Prathamesh
Constructions's bank facilities will now be denoted as CARE B+;
ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        13.40       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 on March 9, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced of promoter group in real estate development

The Prathamesh group over its presence of the past 14 years in
the business has completed around 41 residential and commercial
projects with an area of 9.00 lakh square feet (lsf). Receipt of
approvals and clearances for the projects PC has received all the
necessary clearances and approvals for the project related to
land acquisition and construction. Strategic location of the
project PC is currently developing three projects, namely,
Novellus (Dhanukar Colony, Pune), Sylvetica (Baner, Pune) and
Gallardo (Mukund Nagar, Pune). All the three projects are located
in close proximity of banks, schools, malls and hospitals.

Key Rating Weaknesses

Project execution risk

The ability of the entity to complete the projects as per
schedule within the envisaged cost and achieve the project sales
at the assumed price as well as debt sanction would be critical
from the credit perspective.

Cyclical nature of the real estate industry

The firm 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

PC faces competition from other real estate developers who are
coming up with residential projects in Pune such as The Leaf,
Mantra Moments, Rachana Bella Casa, Pharande Pune Ville, Kolte
Patil 24K Opula and other such projects in close vicinity.

Established in the year 2002, Prathamesh Constructions (PCS) is
the part of Prathamesh Group (PGP), Pune. PGP is in the business
of real estate development since last fourteen years. At present
the group is managing five entities including PCS viz. Atmaja
Constructions (ACS), Utkarsha Buildcon (UBN), Jupiter Builders
(JBS) and Shubham Realtors (SRS). PCS is also engaged in the
business of real estate development. Currently the firm is
developing three residential projects namely Novellus, Sylvetica
and Gallardo.


PROVOGUE INDIA: CARE Denotes Rating as D/Issuer Not Cooperating
---------------------------------------------------------------
CARE Ratings has been seeking information from Provogue India
Limited to monitor the rating(s) vide e-mail communications dated
February 21, 2017, February 20, 2017; February 17, 2017;
February 2, 2017; December 30, 2016; October 13, 2016; July 5,
2016 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 ratings on the basis of the
publicly available information, which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The ratings on
Provogue India Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            218.68      CARE D; ISSUER NOT
                                     COOPERATING; Based on
                                     best available information

   Short-term Bank
   Facilities             30.47      CARE D; ISSUER NOT
                                     COOPERATING; Based on
                                     best available information

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

The ratings takes into account delay in servicing of Bank loans
by the company due to liquidity issues faced by it, subsequest
invocation of SDR (strategic debt restructuring) by Joint Lender
Forum under extant RBI guidelines, further decline in total
operating income and deterioration in profitability paramters and
further increase in net loss.

Detailed description of the key rating drivers

At the time of last ratings on October 30, 2015, the following
were the rating strengths and weaknesses (updated for the
information available from stock exchange):

Ongoing liquidity stress:

There are ongoing delays in servicing of debt obligations by the
company on the back of substantial deterioration in operational
and financial performance of the company, which has impacted the
liquidity position of the company.

Deterioration in financial performance

The total operating income of the company continued to decline in
FY16 (refers to the period April1 to March31) to INR423.43 crore
as against INR545.45 crore in FY15. The company's profitability
further deteriorated and the gross margin of the company came
at -22.27% in FY16 as against 3.87% in FY15.

Provogue (India) Limited (PIL), founded in 1997, is engaged in
the manufacture, sale and retail of the fashion apparel products
and accessories for men and women under its well-known brand
'Provogue'. PIL operates in the lifestyle retail segment through
more than 150 stores spread across 80 locations across India.
Furthermore, the company has garment manufacturing plants at two
locations, namely, Daman (Gujarat) and Baddi (Himachal Pradesh).
Also, the company is engaged in the export of fabrics and
garments to African countries.

PIL reported a total operating income of INR423.43 crore and net
loss of INR195.67 crore, respectively, in FY16 compared with
total operating income of INR545.45 crore and a PAT of INR74.56
crore, respectively, in FY15.


PUREWAL STONE: ICRA Reaffirms 'B' Rating on INR8.60cr Loan
----------------------------------------------------------
ICRA Ratings has re-affirmed its long-term rating of [ICRA]B on
the INR8.60 crore1 fund-based bank facilities and the INR0.40
crore unallocated limits of Purewal Stone Crushers. The outlook
on the long-term rating is 'Stable'.

                         Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Fund-based-Long-term      8.60     [ICRA]B (Stable);
                                     re-affirmed
  Unallocated-Long-term     0.40     [ICRA]B (Stable);
                                     re-affirmed

Detailed rationale

The ratings re-affirmation continues to favorably factor in the
longstanding experience of the promoters in the stone crushing
industry. ICRA notes the favorable location of the firm's plant
near the river bed, ensuring ready raw material availability and
lower logistics cost. Despite the project being in its
stabilisation phase, ICRA also notes that the firm has recorded
healthy growth in revenues, leading to healthy accruals.
The ratings are, however, constrained by the high level of
competitive intensity due to the presence of a large number of
crushers in the vicinity, as well as by the high regulatory risks
associated with changes in government policies in the mining and
quarrying industry. The rating also factors in the firm's high
working capital intensity of operations on account of high
inventory holding. ICRA also takes into account the vulnerability
of Purewal's profitability to a slowdown in the real estate and
construction sectors, which are its key off takers. ICRA also
notes the risk of capital withdrawal the firm is exposed to,
being a partnership firm.

Going forward, the ability of the firm to increase its turnover
and margins and generate enough cash accruals to meet the
repayment of term loans are the key rating sensitivities.

Key rating drivers

Credit Strengths

* Long experience of the management in the stone crushing
industry

* Locational advantages in terms of raw material availability and
lower freight expenses

Credit Weaknesses

* Operations exposed to the regulatory risks associated with
changes in Government policies in the mining and quarrying
industry

* Intense competition in a fragmented industry structure, amid
low product differentiation restricts pricing flexibility.

* Seasonality in the business and changes in Government
regulations impart high volatility to cash flows and may impact
working capital requirements

* Partnership firm, any substantial withdrawal from capital
accounts would impact the net-worth and thereby the gearing
levels.

Description of key rating drivers:

Purewal Stone Crushers commenced operations from March 2015 and
in the interim period during April to August 2015, the firm had
stopped its production due to legal issues related to stock
disclosures and pollution control certificate. Purewal is at a
nascent stage of operations and maintaining high capacity
utilisation levels will be a key to increase the scale of
operations from the current levels. Furthermore, the operations
remain highly vulnerable to regulatory risks associated with
changes in government policies in the mining and quarrying
industry. High degree of fragmentation due to a large number of
unorganised players and limited product differentiation have led
to high competitive intensity in the stone crushing industry,
thereby limiting the pricing power of the players and affecting
the margins. The rating also factors in the firm's high working
capital because of high inventory holding requirements, also due
to the debt funded nature of capex involved, the capital
structure is leveraged. Thus, the ability of the firm to improve
the capital structure and manage working capital effectively,
while ensuring timely debt servicing will remain the key rating
sensitivities. The manufacturing unit is located in proximity to
the river bed, which ensures uninterrupted supply of raw
material, along with savings in freight cost and reduction in
lead time. Moreover, the firm benefits from the longstanding
experience of its promoters in the industry.

Purewal Stone Crushers (Purewal) was established in 2013 as a
partnership firm. The promoters have experience in running
similar companies. The firm crushes and processes river bed
material (RBD), boulders into stone chips, stone grits and sand
stone that find usage in the construction and infrastructure
industry. The primary raw materials required are river bed
materials that are sourced from river beds in the Kashipur region
of Uttarakhand. The firm's manufacturing facility is in the
village Veerpur, Lachhi, Ramnagar (Uttarakhand) in an area of 12
acres with an installed annual crushing capacity of 300 metric
tons (MT) per day.


REGEN POWERTECH: ICRA Hikes Rating on INR1530cr Loan to 'D'
-----------------------------------------------------------
ICRA Ratings has upgraded the long term rating assigned to the
INR25 crore term loan limits, INR350 crore fund based limits and
US$ 10 million external commercial borrowings of Regen Powertech
Private Limited (RPPL) from [ICRA]D to [ICRA]BB. The short term
rating assigned to the INR50 crore fund based limits and INR1530
crore non-fund based bank limits of the company has been upgraded
from [ICRA]D to [ICRA]A4. The outlook on the long-term rating is
Stable.


  Facilities                Amount       Ratings
  ----------               ---------     -------
  Term Loans (Long-term)   INR25.00cr    Upgraded from [ICRA]D
                                         to [ICRA]BB (Stable)

  External Commercial      US$10 Mil     Upgraded from [ICRA]D
  Borrowings (Long-term)                 to [ICRA]BB (Stable)

  Fund Based Bank Limits   INR350.00cr   Upgraded from [ICRA]D
  (Long-term)                            to [ICRA]BB (Stable)

  Fund Based Bank Limits    INR50.00cr   Upgraded from [ICRA]D
  (Short-term)                           to [ICRA]A4

  Non-Fund Based Bank     INR1530.00cr   Upgraded from [ICRA]D
  Limits (Short-term)                    to [ICRA]A4

The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with RPPL, ICRA has been trying to seek information from the
company so as to undertake a surveillance of the ratings, but
despite repeated requests by ICRA, the company's management has
remained non-cooperative. In the absence of requisite
information, ICRA's Rating Committee has taken a rating view
based on best available information. In line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, the
company's rating is now denoted as: "[ICRA]BB (Stable)/ [ICRA]A4
ISSUER NOT COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Analytical approach: For arriving at the ratings, ICRA has taken
a consolidated view of RPPL along with its subsidiary company-
Regen Infrastructure and Services Private Limited- since both
operate in the same line of business, have operational linkages
and share a common management.

RPPL incorporated in December 2006 is a manufacturer of Wind
Turbine Generators (WTGs) and end-to-end service provider
including consulting, supply, erection, commissioning, and O&M of
WTGs. The company has been promoted by Mr. Madhusudan Khemka, Mr.
R Sundaresh and Mr. M Prabhakar Rao through the holding company
NSL Power Equipment Trading Private Limited. Private equity has
also been infused in the company by Indivision India Partners
(IIP) and TVS Shriram Growth Fund.


SAHARA INDUSTRIES: ICRA Reaffirms 'B' Rating on INR11.63cr Loan
---------------------------------------------------------------
ICRA Ratings has reaffirmed the long term rating of [ICRA]B for
the INR11.00 crore cash credit facility, INR0.63 crore term loan
and INR1.30 crore unallocated limit of Sahara Industries (SI).
The outlook on the long term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund Based Limits      11.63      [ICRA]B Reaffirmed;
                                    Stable outlook

  Unallocated Limits      1.30      [ICRA]B Reaffirmed;
                                    Stable outlook

Rationale
The rating reaffirmation continues to factor in the weak
financial profile of Sahara Industries, characterised by low
profitability margins, stretched capital structure and weak
coverage indicators. The rating also continues to take into
account the commoditised nature of products, the adverse
movements in cotton price and government regulations pertaining
to exports and minimum support price (MSP). Furthermore, the
rating also considers the highly fragmented nature of the
industry which coupled with low-entry barriers, has led to high
competition and consequently limited margins. Furthermore, the
rating considers the potential adverse impact on net worth and
gearing levels in case of any substantial withdrawal from capital
accounts.

The rating, however, continues to derive comfort from the long
experience of its partners in the cotton industry and the
proximity of the firm's manufacturing unit to raw materials,
easing procurement.

Key rating drivers

Credit Strengths

* Extensive experience of the partners in the cotton industry

* Locational advantage by virtue of proximity to raw materials

Credit Weakness

* Weak financial profile characterised by low profit margins,
  stretched capital structure and weak coverage indicators

* Highly fragmented industry structure due to the presence of a
  large number of manufacturers and traders; low-entry barriers
  result in high competition

* Operations exposed to regulatory restrictions on cotton export
  and minimum support price (MSP)

* Risks inherent in partnership firms, wherein any substantial
  capital withdrawal could impact the net-worth and gearing
  levels

Description of key rating drivers highlighted:

The firm reported a growth of 6% in operating income in FY2016
owing to increase in sales volume. The profitability remains low
due to limited value additive nature of the business and the
vulnerability of the firm's profitability to adverse movements in
cotton price as well as highly fragmented and competitive nature
of the industry with numerous organized and unorganized players.
The capital structure of the firm improved in FY2016 with
significant term loan repayments; however it remains stretched
with gearing of 3.41 times due to high working capital
borrowings. Going forward, the scale of the firm is expected to
remain modest. Further, the ability of the firm to manage the
impact of raw material price fluctuations on its profitability in
a highly competitive business environment and improve its capital
structure with scheduled debt repayment as well as efficient
management of working capital requirements will remain the key
rating sensitivity.

Established in 1997 as a partnership firm, Sahara Industries (SI)
is involved in the business of ginning and pressing raw cotton to
product cotton bales and cottonseeds. Its manufacturing facility,
located at Wankaner in Gujarat, is equipped with 46 ginning
machines and 1 pressing machine with an installed input capacity
of 23,040 MT of raw cotton per annum. The partners of the firm
have more than decade of experience in the cotton industry.
SI recorded a net profit of INR0.18 crore on an operating income
of INR59.86 crore for the year ending March 31, 2016.


SAHU KHAN: ICRA Reaffirms 'B+' Rating on INR12cr LT Loan
--------------------------------------------------------
ICRA Ratings has reaffirmed (suspension revoked) the long term
rating at [ICRA]B+  for the INR12.00 crore (enhanced from INR9.00
crore) fund based limits of Sahu Khan Chand Foods. The outlook on
the long term rating is assigned at 'Stable'.

                        Amount
  Facilities         (INR crore)   Ratings
  ----------         -----------   -------
  Long Term, Fund         12.00    [ICRA] B+(Stable); reaffirmed;
  Based Limits                     suspension revoked

Rationale

The rating reaffirmation factors in the highly competitive nature
of the industry in which SKCF operates, characterized by a few
larger players and a number of small players. The rating is
further constrained by vulnerability of the firm's profitability
to agro climatic risks as witnessed by decline in realization of
frozen green peas affecting margins of the firm which declined
from 10.03% in FY2015 to 7.81% in FY2016. The rating also factors
in the firm's elongated working capital cycle on account of high
inventory levels; below average coverage indicators and weak
capitalization indicator as reflected by gearing of 3.11 times as
on 31st March 2016. ICRA also takes note of the partnership
constitution of the firm which exposes it to risks of withdrawal,
dissolution etc. However, the rating derives comfort from the
long experience of the firm's management in a similar line of
business. Going forward, the firm's ability to ramp up its scale
of operations while bringing about a sustained improvement in its
profitability will remain the key rating sensitivity.

Key rating drivers

Credit Strengths

* Established track record of promoters in similar line of
business

* Robust capacity utilization in the past

Credit Weakness

* Modest scale of operations

* High competitive intensity in the industry characterized by few
  large players and a number of small players

* Declines in the profitability margins due to decline in demand
  of frozen green peas as price of raw green peas declined in
  FY2016.

* Weak capitalization indicators with gearing of 3.11 times as on
  March 31, 2016 as against 1.97 times as on March 31, 2015.
  However, debt comprises of working capital borrowings and
  unsecured loans with no long term borrowing.

Description of key rating drivers highlighted above:

Promoters of the firm are having more than two decades of
experience in frozen food industry. Long track record in similar
line of business provides better management. The frozen food
industry is highly competitive characterized by a few larger
players and a number of small players. Realization for frozen
green peas declined in FY2016 affecting margins of the firm which
declined from 1.97 times as on March 31, 2015 to 3.11 times as on
March 31, 2016. Total debt majorly comprises of working capital
borrowing and interest bearing unsecured loans.

Incorporated in 1986, SKCF is promoted by Ms. Bhagwati Devi, Mr.
Mausam Gupta, Ms Neeru chaudhary, Mr. Nirmal Gupta, Mr. Rakesh
Chandra and Mr. Tejendra Chaudhary. The company is involved in
the processing and trading of frozen fruits and vegetables
(majorly frozen green peas) at two of its manufacturing units
located in Sambhal, Uttar Pradesh. The company has a capacity to
process 5400 MT of vegetables annually. SKCF has a storage
capacity of 5400 MT annually. These food products are supplied by
the company to clients in domestic markets. Frozen green peas are
sold under the brand name of Sahu Fresh.


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

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             7          CARE B; ISSUER NOT
                                     COOPERATING

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

Detailed description of the key rating drivers

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

Key Rating Strengths

Experienced proprietor and established track record of
operations: The proprietor has an experience of nearly 25 years
in the industry. Furthermore, over 3 decades of operations of the
firm has facilitated the establishment of long-term relationships
with its clientele leading to repeat orders. Association with
reputed suppliers: Sangam Steels is an authorized dealer of JSW
Steel Limited since 1999 for hot rolled sheets and, rounds, etc.
The firm also deals with trading of products like wires, coils
and rods for the Steel Authority of India since 2010. Sangam
Steels procures ~90% of its traded from JSW Steel Limited and
SAIL.

Key rating Weaknesses

Declining scale of operations: The operating income of the firm
has declined consistently in the FY13-15 period and stood at
INR75.04 crore in FY15 (refers to the period April 1 to
March 31).

Low profitability margins: The firm's profitability margins have
remained low with the PBILDT and PAT margins of 2.18% and 0.16%,
respectively, in FY15.

Leveraged capital structure: The capital structure of the firm
remained highly leveraged marked by long term debt to equity
ratio and overall gearing ratio of 1.06x and 5.17x as on March
31, 2015.

Weak debt coverage indicators: The debt coverage indicators
remained weak with total debt to GCA at 84.68x for FY15

Working capital intensive nature of operations: The working
capital cycle stood at 58 days for FY15. The average utilization
of the working capital limits stood around 80%.

Proprietorship nature of its constitution: SS's constitution as a
proprietorship firm has the inherent risk of possibility of
withdrawal of the proprietor's capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of proprietor.

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

Sangam Steels (SS) was established in 1983 by Mr. Sandeep Gupta
as a proprietorship firm. The firm is an authorized dealer of JSW
Steel Limited, since 1999, and is engaged in the distribution of
steel products (HR Sheets, rounds, etc), for the company. The
firm is also engaged in the distribution of steel products like
wires, coils rods, bars, etc. for Steel Authority of India
Limited (SAIL), with whom it is associated since 2010. These
products, primarily sold in the Punjab region, find application
in bicycle parts, automobiles components, etc.


SATHYAM GREEN: Ind-Ra Migrates BB- Rating on INR358.4MM Bank Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Sathyam Green
Power Private Limited's (SGPPL) INR358.4 million long-term senior
bank loans and INR97.5 million fund-based working capital limit
to non-cooperating category.  The issuer did not participate in
the surveillance exercise despite continuous requests and follow
ups by the agency.  Therefore, investors and other users are
advised to take appropriate caution while using these ratings.
The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)'
on the agency's website.  Instrument-wise rating actions are:

   -- INR358.4 mil. Senior bank loans with 'BB-' rating migrated
      to Non-Cooperating Category; and

   -- INR97.5 mil. Fund-based working capital limit with 'BB-'
      Rating migrated to Non-Cooperating Category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Feb. 3, 2016.  Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

SGPPL operates a 10MW biomass power plant in the Merta district
of Rajasthan.  The plant commenced commercial operations in
April 2011.  SGPPL is majorly held by Focal Biomass Holdings
Limited.


SHARVI RICE: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sharvi Rice Mill
Private Limited (SRMPL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.  The instrument-wise rating actions are:

  -- INR40 mil. Fund-based limits assigned with 'IND BB/Stable'
     rating; and

  -- INR65.39 mil. Term Loan assigned with 'IND BB/Stable' rating

                        KEY RATING DRIVERS

The ratings reflect SBAPL's short operating track record as it
started commercial operations only in June 2014.

The ratings also factor in the company's moderate credit profile
as it reported interest coverage (operating EBITDA/gross interest
expense) of 1.83x in FY16 (FY15: 1.83x) and net leverage
(adjusted net debt/operating EBITDAR) of 3.73x (7.32x).

However, the ratings are supported by SBAPL's healthy growth of
150% yoy in revenue during FY16 to INR501 million on account of
an increase of the total production volume during the year.  The
ratings are also supported by the strong liquidity profile of the
company as reflected by its average 54% working capital
utilization during the 12 months ended February 2017.

                        RATING SENSITIVITIES

Positive: A substantial improvement in the revenue along with an
improvement in the credit profile will be positive for the
ratings.

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

COMPANY PROFILE

Incorporated in 2011, SRMPL is engaged in processing and milling
of paddy into rice, rice ban, husk etc.  Its plant is located in
Nagri, Ranchi and has an install capacity of 48000 metric tonnes
per annum.  The promoter-director Praveen Gupta, Praveen Kedia,
and Shubham Gopalka manage the operations.


SHRI PRABHULINGESHWAR: ICRA Ups Rating on INR74.69cr Loan to B
---------------------------------------------------------------
ICRA Ratings has upgraded the long term rating assigned to
INR25.31 crore (revised from INR69.24 crore) term loan and
INR74.69 crore fund based limits of Shri Prabhulingeshwar Sugars
and Chemicals Limited (SPSCL) from [ICRA]C+ to [ICRA]B. The
outlook on the long term rating is Stable.

                       Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Term Loan             25.31     [ICRA]B(Stable)/upgraded
                                  from [ICRA]C+

  Proposed Fund
  Based Limits          74.69     [ICRA]B(Stable)/upgraded
                                  from [ICRA]C+

Rationale

The rating revision takes into consideration the improved
performance of SPSCL in FY2016 aided by increase in sugar
realizations during H2 FY2016. Further, the company is expected
to report significant gains on about 88,323 MT of sugar inventory
held as on March 31, 2016 owing to improved average sugar
realizations during FY2017. In addition, the rating continues to
positively factor in the extensive experience of the promoters in
the sugar industry, forward integration of the plant into co-
generation and assured sales of molasses produced to a group
company which results in partial de-risking from the volatilities
of sugar industry.

The rating, however, continues to remain constrained by the
levereged capital structure and modest debt protection metrics of
the company. ICRA also notes that sizeable debt repayment
obligations of SPSCL will continue to exert pressure on the
financial risk profile of the company in the medium term.
Further, the rating remains constrained by the exposure of the
company's business to agro-climatic risks, which determine
sugarcane availability as well as pricing and regulated nature of
the industry with respect to cane pricing and exports. In
addition, the rating also remains tempered by the high working
capital requirements of the industry due to stock holding
requirements; and the substantially high competitive intensity in
the region for cane procurement, which could result in additional
pressure on the margins.

Going forward, the ability of the company to generate
commensurate accruals to cater to its debt repayment obligations
while effectively managing working capital requirements remain
the key rating sensitivities.

Key Rating Drivers

Credit Strengths

* Experience of the promoters in the sugar industry and presence
of the group in allied and related industries with good local
standing

* Favourable location of the sugar unit in a relatively high cane
intense and high recovery area in Bagalkot district of North-
Karnataka

* Integration of the plant into cogeneration and assured sales of
the molasses to a group company results in partial de-risking
from the volatilities of the sugar cycle

* SPSCL is expected to report significant gains on the sugar
inventory of ~88,323 MT as on March 31, 2016 owing to improvement
in average sugar realizations during FY2017

Credit Weakness

* Relatively weak financial profile with stretched capital
structure and modest coverage indicators; however, the same has
improved in FY2016 as against FY2015

* Substantially high competitive intensity for the cane
procurement in the region between various sugar companies

* Relatively large exposure to agro-climatic risks which
determine cane availability

* High regulatory intensity of the sugar industry in terms of
cane pricing and export policy

Description of key rating drivers highlighted above:

SPSCL operates its sugar unit in relatively high cane intense
area in Bagalkot district of North-Karnataka, where cane is one
of the main crops. In addition to the sugar unit, the company's
operations are partially forward integrated with presence of a
38.5 MW co-generation division. Further, the company also sells
molasses to an associate entity Siddapur Distilleries Limited.
This provides a cushion to the company's cashflows in case of a
sugar downturn. During SY2016, the cane crushed by SPSCL reduced
to 10.31 lakh MT from 12.56 lakh MT in SY2015 owing to lower
rainfall during the year. However, improved sugar realizations
during H2FY2016 resulted in improvement of revenue and
profitability for the company during FY2016. Further, the company
is expected to benefit from 88,323 MT of sugar inventory held as
on March 31, 2016 due to improvement in sugar realizations during
FY2017. The company's capital structure, however, remains
relatively stretched owing to debt-funded capex undertaken
coupled with high working capital requirements. Further, sizeable
debt repayment obligations are also expected to exert pressure on
the cashflows of the company going forward. Hence, firmness of
the sugar realizations along with performance of the by-product
divisions will remain crucial for the company to generate
commensurate accruals to cater to its repayment obligations.

Shri Prabhulingeshwar Sugars and Chemicals Limited (SPSCL) was
incorporated in 1995 and started crushing cane in the year 1999.
The cane crushing capacity was gradually increased from 2,500 TCD
earlier to 10,000 TCD. SPSCL increased its cogeneration capacity
from 28.5 MW in sugar year (SY) 2012 to 38.5 MW in SY 2013 by
commissioning a 27 MW steam turbine in April 2013 and disposing
the rented condensation and extraction turbines. The plant is
located in Siddapur village in Bagalkot District of North
Karnataka and is promoted by Mr. Jagadeesh S Gudagunti, who apart
from managing SPSCL, has extensive experience as a consultant and
machinery supplier for sugar and allied industries


SHRI VARU: Ind-Ra Assigns 'B' Long-Term Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shri Varu
Polytex Private Limited (SVP) a Long-Term Issuer Rating of 'IND
B'.  The Outlook is Stable.  The instrument-wise rating actions
are:

   -- INR115 mil. Term loan assigned with 'IND B/Stable' rating;
      and

   -- INR50 mil. Fund-based working capital limit assigned with
      'IND B/Stable/IND A4' rating

                        KEY RATING DRIVERS

The ratings reflect the construction stage of SVP's project as it
is setting up a manufacturing unit for production of woven sacks.
The project is scheduled to be completed by August 2017 and the
commercial operation is likely to start from September 2017.  The
total cost of the project is estimated at INR195.97 million out
of which promoter's contribution (share capital and unsecured
loan) is INR104.31 million and term loan is INR87.50 million; the
remaining is through government subsidies.

The ratings further reflect the risk of raw material price
fluctuations.  The ratings are constrained by the industry's
fragmented nature of operations.

The ratings, however, are supported by SVP's locational advantage
due to easy availability of skilled and unskilled labor.  The
ratings are further supported by the management's experience of
more than two decades in various industries such as coal trading,
flour mills and cement trading.

                       RATING SENSITIVITIES

Positive: Successful commencement of commercial operations and
the company's ability to ramp up the operations/productions in a
timely manner along with achieving stable business operations
will be positive for the ratings.

Negative: Company's inability to ramp up the
operations/production in a timely fashion and/or any additional
debt led capex impacting the debt servicing capability of the
company would be negative for the ratings.

COMPANY PROFILE

SVP was originally incorporated as R R Dal Mills Private Limited
on Feb. 11, 1982.  Subsequently, in September 2016, the name of
the company was changed to Shri Varu Polytex Private Limited.
The company is currently managed by Mr. Anmol Jain and Mr. Ajit
Jain. The company is setting up a HDPE woven sack manufacturing
unit in Jeevnathpur, Industrial Area Ramnagar (Uttar Pradesh)
with an annual installed capacity to manufacture 5400TPA of woven
sacks.


SMS9 AGRO: ICRA Assigns 'B' Rating to INR10cr Fund Based Loan
-------------------------------------------------------------
ICRA Ratings has assigned the long-term rating of [ICRA]B to the
INR10.00 crore1 fund based limits of SMS9 Agro Oils LLP. The
outlook on the long term rating is stable.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund Based Limits      10.00      [ICRA]B (Stable) Assigned

Rationale

The assigned rating is constrained by the execution risk with
rice bran oil extraction unit to be operational from April 2017;
low operating profitability in the edible oil solvent extraction
business; and expected stretched capital structure and coverage
metrics in the initial years of operation due to low operating
profitability and high interest expenses. The rating is further
affected by the high competitive nature of the industry from
cheaper oil substitutes such as imported palm oil; susceptibility
of raw material availability to agro-climatic conditions; and
price fluctuations due to demand and supply factors in the global
market. ICRA also notes the risks associated with partnership
nature of the firm. The rating, however, positively factors in
the promoter's vast experience in the rice milling and rice bran
oil extraction business through group concerns; limited project
implementation risk with the firm having already incurred nearly
90% of the project cost; and easy availability of raw material
i.e. rice bran, due to the plant's location in a major paddy
growing region in Telangana. Further, the prospects of Rice Bran
Oil due to its health benefits and rising consumer preference for
healthy foods and diet augurs well for the firm's sustenance.
Going forward, the ability of the firm to stabilize its
operations and manage its working capital requirements
efficiently will be the key rating sensitivities from credit
perspective.

Key rating drivers

Credit Strengths

* Easy availability of raw material - rice bran flakes, by virtue
of its presence in a major paddy growing region in Telangana as
well as easy procurement from rice mills associated with the
partners

* Longstanding experience of the promoters in rice milling and
rice bran oil solvent extraction through associate concerns

* Favorable prospects of Rice Bran Oil due to its health benefits
and rising consumer preference for healthy foods and diet

Credit Weakness

* Stretched capital structure with high gearing levels and low
DSCR in the initial years of operation due to low operating
profitability and high interest expenses

* Low operating profitability in edible oil solvent extraction
business due to limited value addition

* High degree of competition from other edible oils, especially
palm oil imported from the South East Asian countries

* Susceptibility to agro-climatic conditions can affect the raw
material availability as well as the prices

* Risks arising from partnership nature of firm

Description of key rating drivers highlighted above:

SMS9 is setting up crude rice bran oil solvent extraction unit
near Miryalaguda in Telangana with a plant capacity of 250 tons
per day. The promoters have significant experience in rice
milling and edible oil solvent extraction business through group
concerns. The cost of the project is INR12 crore of which nearly
90% of the cost has been incurred as on March 15, 2017 thereby
limiting the project execution risks. The project location is
favourable due to its location in Mirayalaguda region in
Telangana where paddy is a majorly cultivated crop and has a
number of rice mills in the vicinity. Further, the prospects of
rice bran oil are favourable due to its proven health benefits
relative to other edible oils along with rising consumer health
consciousness.

The edible oil industry is characterized by high degree of
competition from other cheaper edible oils such as palm oil which
is mostly imported from South East Asian countries and the
movement of all the edible oil prices are mostly linked to palm
oil supply and demand factors. Further, the thin profitability in
the industry leads to stretched coverage metrics in the initial
years of operation due to high interest charges. The raw material
availability is also vulnerable to agro climatic risks.

Established on February 10, 2016 as a partnership firm, SMS9 Agro
Oils LLP (SMS9) is setting up a rice bran oil solvent extraction
unit with a plant capacity of 250 TPD. The proposed manufacturing
unit would be located in Yadgarpally village in Miryalaguda
mandal of Nalgonda district in Telangana on a total area of 6.10
acres. The firm is promoted by Mr. S. Satyanarayana and his
family members. The promoters have more than 20 years of
experience in edible oil and rice milling businesses. The total
cost of the project is INR12 crore to be funded by INR7 crore
debt and INR5 crore equity and unsecured loans.


SRI SAI: CARE Denotes Rating as D/Issuer Not Cooperating
--------------------------------------------------------
CARE Ratings has been seeking information from Sri Sai Durga
Infratech India Private Limited to monitor the rating(s) vide e-
mail communications dated August 1, 2016, October 20, 2016,
November 1, 2016, December 1, 2016, December 9, 2016, December
27, 2016 and February 21, 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 ratings on Sri Sai Durga Infratech
India Private Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Bank         5.00      CARE D; ISSUER NOT
   Facilities                       COOPERATING; Revised from
                                    CARE BB on the basis of
                                    best available information

   Long-term/Short-      23.00      CARE D; ISSUER NOT
   Term bank facilities             COOPERATING; Revised from
                                    CARE BB/CARE A4 on the basis
                                    of best available information

   Short-term Bank        5.00      CARE D; Issuer not
   Facilities                       cooperating; Revised from
                                    CARE A4 on the basis of best
                                    available information

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

The revision in the ratings assigned to the bank facilities of
Sri Sai Durga Infratech India Private Limited takes into account
the delays in debt servicing on account of stressed liquidity
position. Ability of the company to improve its liquidity and
regularize its debt servicing will be the key rating sensitivity.

Detailed description of the key rating drivers

The revision in the ratings assigned to the bank facilities of
Sri Sai Durga Infratech India Private Limited takes into account
the delays in debt servicing on account of stressed liquidity
position.

Key Rating weakness

Stressed liquidity position

Due to stressed liquidity position, there have been delays in
honoring the debt service obligations on time.  Lower asset base
leading to higher reliance on sub-contracting As on March 31,
2015 (Provisional), SPL had gross block of about INR1.21 crore of
which plants and machinery contribute about INR0.21 crore which
is very low considering the orders on hand that are to be
executed within next two years. The small asset base has also
resulted in higher reliance on sub-contracting and equipment
leasing. Lower asset base with diversification present challenges
of executing the projects without time and cost over-run but is
also expected to increase reliance on sub-contracting, thereby,
keeping check on the profitability given certain percentage of
contract value is retained by the client as margin.

Moderate industry prospects

The growth prospects of construction players including SSDIL are
closely linked to the economic growth, political stability and
Government monetary & fiscal policies. The construction industry
plays an important role in the development of a country's
infrastructure, which is a key engine of economic growth. The
industry requires bidding for the projects based on tenders,
resulting in intense competition. Currently, the demand for
affordable housing, rapid growth in Information Technology and
financial services in Tier II and Tier III cities, investments in
key infrastructure segments including roads, railways, and power
are expected to surge with expected rise in growth. Furthermore,
many steps have been taken by the government to improve funding
avenues in infrastructure sector which include easing of FDI
norms for construction, railways, defence and providing
incentives to promote Real Estate Investment Trusts.

Key rating strengths

Satisfactory experience of promoters

SSDIL is promoted by Mr. Chandra Ranga Rao and Mrs Chandra
Satvika in September 2010. Although, the company was incorporated
in 2010, its promoter; Mr. Chandra Ranga Rao has 11 years of
experience in the field of construction industry. He started his
business by promoting Chandra Constructions, Khammam in 2002.
Later in 2008, he established Sri Sai Durga Constructions as a
partnership firm and in 2010, the firm was taken over by Sri Sai
Durga Infratech India Private Limited (SSDIL). The promoters have
been supporting the operation of the company through infusion of
unsecured loans in the past. Furthermore, the promoters have
infused additional equity of INR 4.78 crore during FY15 (refers
to the period April 1 to March 31) to support the increasing
scale of operations.

Significant improvement in revenue with satisfactory
profitability margins

Gross billing of the company has witnessed CAGR growth of about
42% during FY13-FY15 with y-o-y growth of about 105% (Rs.56.75
crore in FY15 from INR27.74 crore in FY14) on account of faster
execution of projects in hand. During FY15, SSDIL is also engaged
in trading activity (trading of steel, DI pipes, aluminum wires,
PVC pipes, MS sheets) from which the contribution to revenue has
been around 36%. PBILDT margin of the company has declined
marginally during the year by 37 bps (from 7.58% in FY14 to 7.21%
in FY15) on account of high sub contracting expenses as the
company mostly sub contracts the works wherein the client retains
a certain percentage of contract value as margins.

Collection period of the company has improved from 244 days in
FY14 to 171 days in FY15 on account of faster realization of
bills pending; majorly from RKI Builders Private Limited and VSA
Infra Projects Private Limited for which the company has executed
projects. Total debtors outstanding as on March 31, 2015
comprises about 48% of the gross billings of which the company
has recovered INR5.23 crore (i.e. about 9.22%) as on June 31,
2015. Given the high collection period, the company also extended
payments to its sub-contractors (as the company majorly gets the
work executed through further sub-contracting) resulting in high
creditors period in FY15. The company enters into an agreement
with the subcontractors for payment towards the work done once
the project is completed and been tested on account of which it
was able to manage its working capital despite significant
increase in its turnover. Operating cycle of SSDIL improved from
65 days in FY14 to 26 days in FY15 on account of significant
improvement in collection period. However, reliance on bank
borrowings has been high resulting in almost full utilization of
bank borrowings.

Significant improvement in financial risk profile of the company
Overall gearing ratio of the company improved to 0.53x as on
March 31, 2015 from 1.55x as on March 31, 2014 on account of
gradual repayment of term loans and accretion of profits to
networth. The promoters also infused equity to the tune of INR
4.78 crore during the year FY15 resulting in increase in
networth. The other coverage indicators viz. interest coverage
ratio (improved from 2.92x in FY14 to 3.19x in FY15), total
debt/GCA (improved from 5.64x as on March 31, 2014 to 2.82x as on
March 31, 2015) also improved significantly and remained
satisfactory as on March 31, 2015.
Moderate but concentrated order book position

SSDIL had an outstanding order book position of INR249.78 crore
as on May 31, 2015 as against INR209.06 crore as on December 31,
2014. The said order book provides revenue visibility for the
medium term. The order book is concentrated majorly of 3-4
clients [viz. VNR Infrastructure Ltd. (VNRIL), RKI Builders P.
Ltd., VSA Infra Projects Pvt. Ltd., Prathyusha Resource & Infra
Pvt. Ltd]. The order book is spread across projects in the
electrical works and construction of roads and buildings
segments. Most of the orders are sub-contracted works in view of
limited track record of the company. However, the company has got
Class-I certificate which enables the company to directly
participate in bidding process of large value projects up to INR
35.00 crore.

Sri Sai Durga Infratech India Private Limited (SSDIL) was
incorporated in September 2010 to take over the business of Sri
Sai Durga Constructions, a partnership firm started in 2008 by
Mr. Chandra Rangarao and Mrs Chandra Satvika. The company is
engaged in the civil construction segment with work orders
spanning across construction of building works, water supply
works, electrical works and irrigation works etc.


SRI SATNAM: CARE Assigns B+ Rating to INR12cr LT Bank Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Satnam Jewells Pvt. Ltd. (SJPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             12         CARE B+; Stable

Rating Rationale

The rating assigned to the bank facilities of SJPL is constrained
by its short track record of operations, risk of non-renewal of
franchisee agreement from Senco Gold Limited, susceptibility to
volatility in traded material price and geographical
concentration risk coup-led with dependence on a single retail
outlet, working capital intensive nature of business resulting in
leveraged capital structure and exposure to volatility in
gold/silver prices and presence in a highly fragmented industry
leading to intense competition coupled with regulated nature of
the industry. The rating, however, derives strength from its
experienced promoters and authorized franchisee agreement with
Senco Gold Limited.

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

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record of operations

SJPL commenced operation since October, 2016 and accordingly has
a short track record of operation of around four months. During
4MFY17, the management is stated to have achieved net operating
income of INR10 crore.

Risk of non-renewal of franchisee agreement from Senco Gold
Limited

SJPL has entered into a franchisee agreement with Senco Gold
Limited (SGL) since July, 2016. The franchisee agreements is
valid till July, 2019 and the operation of SJPL depends on the
renewal of the existing agreement, completely at the discretion
of SGL and which is guided by terms and conditions from SGL.
Furthermore, the agreement may get terminated at any time on
violation of certain clauses.

Susceptibility to volatility in traded material price

The prices of gold/silver have experienced high volatility in the
past two years. In case of any sharp fall in gold prices for a
considerable period of time, the level of inventory holding may
suffer diminution in value. This risk to an extent is mitigated
as the company replenishes its gold/ jewellery stock as soon as
some sale of jewellery happens, either on the same day or the
next day.

Geographical concentration risk coup-led with dependence on a
single retail outlet

SJPL is in the business of retailing of gold, silver and diamond
studded jewellery through its sole retail outlet located at a
prime location on Berhampur, Odisha. So, the entire operation of
SJPL is restricted to Odisha and that too from a single retail
outlet.

Working capital intensive nature of business

Being a jewellery retailer, SJPL has to hold high inventory level
of finished goods for display at the showrooms to ensure ready
availability of stock and to offer a wide product range across
different categories, while the retail sales are generally made
on cash basis. Thus, the business depends heavily on working
capital borrowings. Furthermore, the entity started using cash
credit limit since October, 2016. Accordingly, the average fund
based working capital utilisation remained high at about 90%
during the last 4 months ended January, 2017. Presence in a
highly fragmented industry leading to intense competition coupled
with regulated nature of the industry.

The company operates in the Gems & Jewellery (G&J) industry which
is fragmented with a high level of competition from both the
organized and largely unorganized sector players. Low entry
barrier and surging gold price limits the pricing flexibility.
Moreover, the global and domestic macroeconomic environment
continues to remain uncertain and poses a major challenge for the
companies operating in the G&J industry.

Key Rating Strengths

Experienced promoters

The main promoter of SJPL, Mr. Narayan Khurana (Graduate) aged
about 52 years has an experience of around five years in gold
retailing business albeit having around three decades of
experience in the textile industry. He looks after the day-to-
day affairs of the company with the assistance of other directors
and a team of experienced personnel.

Authorized franchisee agreement with Senco Gold Limited SJPL has
entered into an authorized franchisee agreement with Senco Gold
Limited (SGL) for retailing of gold, silver and diamond studded
jewellery. Senco Gold Limited is the largest integrated gold and
diamond jewellery house having the largest retail chain in
Eastern India.

Sri Satnam Jewells Pvt. Ltd. (SJPL) was incorporated in June 1,
2016, by Khurana family of Berhampur, Odisha with Shri Narayan
Khurana being the main promoter. SJPL is engaged in retailing of
gold and silver jewellery and precious & semiprecious stones
studded gold jewellery, through its sole retail outlet located in
Berhampur, Odisha. SJPL has entered into an authorized franchisee
agreement with Senco Gold Limited (SGL) since July, 2016.

During 4MFY17 (October, 2016 to January, 2017) the management is
stated to have achieved net operating income of INR10 crore.


SUNLAND CERAMIC: ICRA Reaffirms B+ Rating on INR6.74cr Loan
-----------------------------------------------------------
ICRA Ratings has reaffirmed the long-term rating assigned to the
INR6.74-crore fund-based limit of Sunland Ceramic Private Limited
at [ICRA]B+ . ICRA has also re-affirmed the short-term rating at
[ICRA]A4 for the INR1.50-crore non-fund based limits of the
company. The outlook on the long-term remains 'Stable'. ICRA has
also reaffirmed the [ICRA]B+ (stable)/[ICRA]A4 rating to the
INR1.19-crore unallocated limits of the company.

                          Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Fund-based Limit          6.74     [ICRA]B+ (Stable) Reaffirmed
  Non-fund Based Limit      1.50     [ICRA]A4 Reaffirmed
  Unallocated Limit         1.19     [ICRA]B+ (Stable)/[ICRA]A4
                                     Reaffirmed

Rationale

The ratings reaffirmation takes into account the company's modest
scale of operations as well as the highly competitive nature of
the ceramic tile industry with the presence of a large
established, organised and unorganised tiles manufacturers. The
ratings also factor in SCPL's modest scale of operations, net
loss incurred in FY2016, modest debt servicing indicators and
high working capital intensity of its operations. The ratings
also take note of the vulnerability of SCPL's profitability to
adverse movements in prices of key raw materials, which account
for a majority of the manufacturing costs.

The ratings, however, favourably takes into consideration the
experience of the key promoters of SCPL in the ceramic industry
as well as its advantageous location, which entails easy
availability of raw material by virtue of being situated in Morbi
(Gujarat).

Key Rating Drivers

Credit strengths

* Experience of key promoters in the ceramic industry

* Company's location in Morbi, India's ceramic hub, provides easy
access to raw material sources

Credit weaknesses

* Financial profile characterised by modest scale of operations,
losses at net level and modest debt servicing indicators

* Higher working capital intensity due to stretched receivables
position in FY2016

* Intense competitive business environment owing to presence of
established tile manufacturers as well as unorganised players

Description of key rating drivers:

SCPL's financial profile in FY2016 is characterised by the
revenue growth along with rising profitability and modest
coverage indicators during the year. The operating income
increased by 6% in FY2016 backed by rising volumes and
realisations during the year. Operating margins improved in
FY2016 to 14.3% on account of lower raw material prices along
with declining employee expenses incurred during the year.
Gearing declined from 1.6x to 1.1x as a result of lower YoY debt
levels. With higher profitability and lower debt, coverage
metrics improved in FY2016 with TD/OPBDITA of 3.1x, TOL/TNW of
1.6x and NCA/Debt of 21%.

The company's presence in the highly fragmented ceramic industry,
which is characterised by intense competition, limits its pricing
flexibility and thereby its ability to effectively pass on the
increase in raw material prices to customers. However,
installation of digital printing in the current fiscal is
expected to improve the margins and alleviate cost pressures. The
liquidity position of the company is likely to remain stretched
in the current fiscal owing to the closure of the plant for
around two months for the installation of digital printing
machine and new kiln.

SCPL's promoters have a long experience in the ceramic industry
and are involved with other associate companies in similar lines
of business. Furthermore, the favourable location of the company
provides it easy accessibility to quality raw materials.

Analytical approach:

For arriving at the ratings, ICRA has taken into account the debt
servicing track record of SCPL, its business risk profile,
financial risk drivers and management profile.

Sunland Ceramic Pvt Ltd (SCPL) is a wall tiles manufacturer with
its plant situated at Morbi, Gujarat. The company was
incorporated in December 2010 and it commenced its operations in
January 2012. SCPL is promoted and managed by Mr. Kishor
Kundariya who is the current Managing Director of the company.
The plant has an installed capacity of ~40,000 Metric Tonnes Per
Annum (MTPA) to manufacture wall tiles. SCPL currently
manufactures wall tiles of two sizes 8" X 12" and 12"X 18" with
the current set of machineries at its production facilities.


TRISHUL TREAD: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Trishul Tread
Private Limited (TTPL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.  The instrument-wise rating actions are:

   -- INR170 mil. Fund-based limits assigned with 'IND BB/Stable'
      rating;

   -- INR40 mil. *Proposed fund-based limits assigned with
      'Provisional IND BB/Stable rating'

                         KEY RATING DRIVERS

The ratings reflect TTPL's moderate credit profile.  During FY16,
revenue was INR930 million (FY15: INR735 million), operating
EBITDAR margin was 2.43% (3.71%), net financial leverage (net
debt/EBITDA) was 8.1x (7.1x) and gross interest coverage
(EBITDA/gross interest) was 1.6x (1.3x).

The liquidity position of the entity is also moderate with 98.6%
average utilization of its fund-based limit during 12 months
ended February 2016.

The ratings are supported TTPL's association with Tata Hitachi
Construction Machinery Company Pvt. Ltd. for the distribution of
its construction equipment and spare parts and also providing
after sales service, in the entire state of Odisha.  The ratings
are also supported by the company's director's more than two
decades experience in the automobile segment.

                       RATING SENSITIVITIES

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

Positive: A sustained improvement in credit metrics could lead to
a positive rating action.

COMPANY PROFILE

TTPL was set up in 1998, in Bhubaneswar, Odisha as a private
limited company by Mr. Kabir Taneja who is also the company
director.

The company operates in the broader segments of heavy earth
moving machines, construction machinery ranging from excavators,
loaders, backhoe loaders, compactor, cranes and other multi-
utility machines.

It is one of the exclusive authorized dealers for the Tata
Hitachi Construction Machinery Co for the State of Odisha, with
19 branches focusing on 2-S activities i.e. selling of equipment
and as a service provider.


TULIP TELECOM: ICRA Reaffirms 'D' Rating on INR150cr Loan
---------------------------------------------------------
ICRA Ratings has reaffirmed the long term rating assigned to the
INR150 crore Non Convertible Debenture programme of Tulip Telecom
Limited (TTL) at [ICRA]D .

                       Amount
  Facilities         (INR crore)      Ratings
  ----------         -----------      -------
  NCD                    150.0        Reaffirmed at [ICRA]D

The rating action is based on the continued delays in the
company's debt servicing. As part of its process and in
accordance with its rating agreement with TTL, ICRA has been
trying to seek information from the company so as to undertake a
surveillance of the ratings, but despite repeated requests by
ICRA, the company's management has remained non-cooperative. In
the absence of requisite information, ICRA's Rating Committee has
taken a rating view based on best available information. In line
with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
November 01, 2016, the company's rating is now denoted as:
"[ICRA] D ISSUER NOT COOPERATING". The lenders, investors and
other market participants may exercise appropriate caution while
using this rating, given that it is based on limited or no
updated information on the company's performance since the time
it was last rated.

Incorporated in 1992, by Retd .Lt. Col. H.S. Bedi, as a private
limited company involved in trading of software, Tulip Telecom
Limited (Tulip), formerly Tulip IT Services Limited has since
diversified its operations to other related areas such as selling
of hardware products, network integration, VPN data connectivity
and managed services. The company became a public limited company
and was renamed to Tulip Software Ltd.; the name was further
changed to Tulip IT Services Ltd. in 2002 and to Tulip Telecom
Limited in 2008.


VARDHMAN WIRES: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Vardhman Wires &
Cables (VWC) a Long-Term Issuer Rating of 'IND B+'.  The Outlook
is Stable.  Instrument-wise rating action is:

   -- INR28.95 mil. Fund-based facilities assigned with
      'IND B+/Stable/IND A4' rating

                         KEY RATING DRIVERS

The ratings reflect VWC's small scale of operations and weak
credit metrics, despite an improvement in the financial profile.
Revenue surged to INR529 million in FY16 (FY15: INR300 million)
on account of enhancement in customer portfolio.  The firm booked
revenue of INR350 million in 10MFY17 and has an order book of
INR63 million, which will be executed by end-April 2017.  Net
leverage improved to 3.5x in FY16 (FY15: 4.2x) and EBITDA
interest coverage to 1.4x (0.9x) owing to an increase in
operating EBITDA. However, EBITDA margin was thin and volatile in
the range of 1.4%-2.2% over the four years ended FY16 due to the
trading nature of the business.

The ratings also factor in the firm's tight liquidity position
with average utilization of fund-based limits of 98.5% during the
12 months ended January 2017.

However, the ratings draw support from the promoter's more than a
decade-long experience in the cables and conductors trading
business.

                        RATING SENSITIVITIES

Positive: Any substantial growth in the top line along with an
improvement in the EBITDA margin, leading to a sustained
improvement in the credit metrics could be positive for the
ratings.

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

COMPANY PROFILE

Established in 2009, VWC is engaged in trading of cables and
conductors, mainly polyvinyl chloride cables, aerial bunched
cable, flame retardant low smoke cable, aluminum alloy conductor
and aluminum conductor steel reinforced.


WINWIND POWER: ICRA Reaffirms 'D' Rating on INR288.22cr Loan
------------------------------------------------------------
ICRA Ratings has re-affirmed the rating assigned to the INR608.16
crore1 term loans, fund based and non-fund based working capital
facilities of Winwind Power Energy Private Limited at [ICRA]D.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term, Fund
  based facilities       150.00     [ICRA]D; re-affirmed

  Long term, Term
  Loans                  288.22     [ICRA]D; re-affirmed

  Short term, Non
  fund based facilities  169.94     [ICRA]D; re-affirmed

Rationale

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

Winwind Power Energy Private Limited (WPEPL) was incorporated in
India in July 2007 as a 100% subsidiary of Winwind OY (WWO) - a
Finland based wind turbine manufacturer, established in the year
2000. WWO, a relatively recent entrant in the European Wind
Energy market, offers two WTG models - WWD1 with a 1 MW capacity
and WWD3 with a 3 MW capacity. It has supplied approximately 328
MW of wind power capacity in markets such as Finland, Sweden,
Estonia, Portugal, France, and Czech Republic. WPEPL commissioned
its manufacturing and assembly plant in Vengal, Tamil Nadu in
June 2009 for producing the WWD1 model and currently possesses a
production capacity of 4 WWD1 WTGs per day.

WWO was acquired by the Chennai based Siva Ventures Ltd. (SVL) in
October 2006. SVL is a wholly owned subsidiary of Siva Industries
and Holdings Ltd. (SIHL, erstwhile Sterling Infotech Limited),
which was promoted by Mr. C. Sivasankaran in 1994. SVL is the
principal investment arm of The Siva Group (SG). SG has
successful track record of acquiring/promoting company
ies and later divesting its stake in these ventures at a
significant premium. Some of the notable examples include
Barista, Dishnet DSL, Sahara's Aamby Valley and Aircel. Apart
from WWO, the current investments of the group are mainly in
Shipping & Logistics, Palm Oil manufacturing, Realty and Food &
Beverages businesses.



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


INDIKA ENERGY: Fitch Hikes Long-Term Issuer Default Rating to B-
-----------------------------------------------------------------
Fitch Ratings has upgraded Indonesia-based PT Indika Energy Tbk's
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) to 'B-' from 'CCC'. The agency has also upgraded Indika's
outstanding senior notes due 2018 and 2023 to 'B-' from 'CCC'
with a Recovery Rating of 'RR4'. Simultaneously, all ratings have
been removed from Rating Watch Positive and a Stable Outlook has
been assigned to the Long-Term IDRs. The agency has assigned a
final rating of 'B-/RR4' to Indika Energy Capital II Pte Ltd's
USD265 million senior notes, which are guaranteed by Indika.

The upgrade follows the successful issue of the USD265 million
senior notes to refinance Indika's 2018 USD note maturities.
Fitch believes the note issue has improved Indika's liquidity,
which is in addition to Fitch expected cash flow improvement due
to higher thermal coal prices. Fitch expects Indika to manage its
debt repayments over the medium term comfortably within forecast
cash generation at the Indika level (holding company on a
standalone basis) and maintain a sufficiently large cash balance
at the Indika-level to support overall liquidity. However, the
company now faces a lumpy refinancing in 2022-2023, which is
factored in Fitch 'B-' rating. Indika has time to address this
risk and its long-term capital structure, given these maturities
are five years away.

The assignment of the final rating to the USD265 million notes
follows a review of the final documentation, which conforms to
the draft documentation previously received. The final rating is
the same as the expected rating assigned on March 26, 2017.

KEY RATING DRIVERS

Successful Refinancing Improves Liquidity: Fitch believes
Indika's liquidity has improved substantially with the issuance
of the new US dollar notes to refinance its 2018 notes, which
have USD171 million remaining. Fitch expects the cost and
extended debt maturity profile to be accommodated within the
company's forecast cash generation and provide the company with
adequate time to address its capital structure. Indika's cash
flow generation should improve along with higher coal prices.

Revised Coal Price Assumptions: Fitch increased Fitch prices
assumptions for 2017 thermal coal - Newcastle 6,000 kcal - to
USD70 per metric tonne (mt), from USD57/mt in March 2017, and
assume the price to be USD65/mt thereafter, compared with USD60
previously. Prices have come off the peak reached in late 2016,
but Fitch increased mid-cycle assumptions reflect China's
policies, which aim to manage coal production and prices. Fitch
expects some production uptick in Australia, China and Indonesia
in response to higher prices, which should lead to some price
moderation as reflected in the updated price assumptions.

Higher Kideco Dividends: The improvement in coal prices will
drive higher cash generation at PT Kideco Jaya Abung, Indika's
key coal mining asset, and consequently lead to higher dividend
flows to Indika, which owns 46% of Kideco and heavily relies on
Kideco's dividends. Fitch now assume dividend receipts from
Kideco to be around USD40 million in 2017 (including dividend of
USD16 million received during 4Q16), and to rise in 2018 to
around US$70 million based on Fitch coal-price assumptions.

Kideco's high production flexibility and capacity, which requires
little capex, low cash operating costs and absence of debt
support its profitability and pre-dividend free cash generation.
Kideco trimmed costs and maintained a low strip ratio during
2016, but Fitch expects rising oil prices to drive up costs
during 2017. Notwithstanding this, Kideco retains its ability to
generate stronger cash flow under higher coal prices.

Cash Flow Recovery: Fitch expects higher dividends from Kideco to
support recovery in Indika's cash flow. Fitch estimates Indika's
(entity level) cash flow to be neutral in 2017 and to cover its
operating expenses and interest costs without the need to dip
into its cash reserves of US$146 million at end-2016. Fitch
further expects cash flow to turn positive from 2018 and remain
so over the medium-term based on Fitch revised coal assumptions
and in the absence of any significant debt maturities over this
period post refinancing. This should eliminate any reliance on
short-term debt over the medium term.

Subsidiaries' Cash Generation Muted: Fitch do not expects
dividends in 2017 from Indika's key subsidiaries - 70%-owned PT
Petrosea Tbk (a mining contractor) and 51%-owned PT Mitrabahtera
Segara Sejati Tbk (MBSS, coal barging and handling) - given their
losses during 2016. Fitch anticipates the higher commodity prices
to result in modest improvement in the subsidiaries' trading
performance and cash generation in 2017, with a more sustained
recovery from 2018. Fitch believes these subsidiaries will be
able to fund their own investment needs and will not require
financial support from Indika.

Revenue of fully owned Tripatra, an engineering, procurement and
construction company, declined during 2016, but Fitch expects its
order book to benefit from an increase in infrastructure
investments in Indonesia, including in the oil and gas sector.

Lumpy Debt Maturities: The new bond has significantly improved
near- to medium-term liquidity for Indika, but has also resulted
in lumpy debt maturities, with its new US$265 million notes
maturing in 2022 and its US$500 million notes due in 2023.

DERIVATION SUMMARY

Indika's rating reflects its improved liquidity, which is
supported by the successful refinancing of its 2018 debt
maturities and improved cash flow from higher coal prices. Fitch
expects Indika's (entity level) FCF to turn positive from 2018.
Indika has better liquidity compared with MIE Holdings
Corporation (CCC), which faces a significant challenge in
refinancing its outstanding notes due February 2018 and April
2019, made more difficult by the company's depleted asset base
relative to its high indebtedness. Yanzhou Coal Mining Company
Limited's 'B/Negative' rating reflects its high financial
leverage and weak liquidity. The rating however also incorporates
ongoing adequate access to banking and domestic capital markets
as a provincial state-owned enterprise. This explains the one
notch difference to Indika.

KEY ASSUMPTIONS

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

- Coal prices in line with Fitch's mid-cycle commodity price
   assumptions, adjusted for difference in calorific value
   (average Newcastle 6000 kcal free-on-board (FOB): US$70/mt in
   2017 and US$65/mt thereafter). See Updating Fitch's Mid-Cycle
   Commodity Price Assumptions, dated March 2, 2017.
- Kideco coal volumes of around 32mt in 2017 and increasing to
   around 36mt by 2019. Capex remaining low at around US$3
   million in 2017 and US$5 million in 2018 and 2019.
- Dividend payout ratio for Kideco remaining high at around 95%-
   98%.
- No dividend from MBSS or Petrosea in 2017, with dividends of
   around US$5 million from Petrosea in 2018. Dividends from
   associate PT Cirebon Electric Power of about US$7 million per
   year through to 2019.
- Low capex at Tripatra and MBSS, and marginally higher capex at
   Petrosea, to support new mining contracts, resulting in capex
   of around US$80 million in 2017, declining to around US$50
   million a year thereafter.

RATING SENSITIVITIES

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

- Meaningful improvement in Indika's medium- to long-term
   financial flexibility, such that Indika can comfortably
   address large and lumpy debt maturities in 2022-2023.

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

- Weakening of liquidity, which may arise from weaker-than-
   expected coal prices and dividend, and lower access to credit
   facilities.

LIQUIDITY

Indika's near- to medium-term liquidity has improved with the
issuance of the new US dollar notes to refinance its existing
2018 debt maturities.


PT TOWER: S&P Affirms BB- CCR on Resilient Operating Performance
----------------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'BB-' long-term
corporate credit rating on PT Tower Bersama Infrastructure Tbk.
(TBIG).  The outlook is stable.  S&P also affirmed its 'BB-'
long-term issue rating on the company's guaranteed senior
unsecured notes.  At the same time, S&P affirmed its 'axBB+'
long-term ASEAN regional scale rating on the Indonesia-based
telecom tower operator.

"We affirmed the rating because we believe TBIG's resilient
operating performance over the next 12 months will cushion the
credit impact of the company's high leverage and a slowdown in
the telecom tower market in Indonesia," said S&P Global Ratings
credit analyst Annabelle Teo.

S&P believes 4G network rollout in Indonesia will continue to be
limited and restrict growth in the tower industry in the next 12
months at least.  This is due to the lack of spectrum
availability and uncertainty in network sharing.  However, S&P
believes that TBIG's close relationship with PT Telekomunikasi
Selular (Telkomsel) will support its organic growth and market
position. This relationship underpins S&P's expectation that the
company should add around 1,000 new tower builds and 500
colocations in the next year, as Telkomsel continues to upgrade
its network for fourth-generation (4G) services.  Tenancy ratios
should remain stable at around 1.62x.

TBIG's long-term contracts (with annual inflation-related
escalations) with other major Indonesian telecom operators also
support its business profile and profitability.

S&P anticipates that TBIG will maintain high shareholder payouts,
such that its debt-to-EBITDA ratio stays around 5.25x.  However,
S&P expects the company to withstand its higher leverage levels
given its solid operational stability and good market position.

TBIG's financial profile has somewhat weakened since the company
revised its shareholder returns policy in November 2015, with the
debt-to-EBITDA ratio increasing to 5.6x in fiscal 2015, from 4.9x
in the previous year.  While this has moderated somewhat in
fiscal 2016 to 5.3x, S&P no longer expects the ratio to fall
below 5.0x. However, S&P expects TBIG to prioritize capital
expenditure and any spending on acquisitions over shareholder
remuneration, adjusting distributions downward if required to
maintain leverage within the company's target of 5.25x.  In the
context of rising absolute EBITDA, our projections therefore
factor in growing absolute reported debt over the next 24 months
at least and mostly stable cash flow adequacy.  As such, S&P
expects that EBITDA interest coverage will remain close to 2.0x
through 2018.

"The stable outlook on TBIG reflects our expectation that the
company's solid market position and good client relationships
will help it withstand higher leverage over the next 12-24
months," said Ms. Teo.

S&P may downgrade TBIG if the company's market position
significantly deteriorates, possibly due to key clients winding
up their operations or selling them to weaker telecom operators.

S&P may also lower the rating if TBIG's appetite for debt-funded
acquisitions, capital expenditure, or shareholder returns
increases beyond S&P's expectations.  EBITDA interest coverage
below 1.75x with no prospect of recovery would indicate such
deterioration.

An upgrade is unlikely over the next 12 months, given TBIG's
shareholder return policy.  However, S&P' may raise the rating if
the company commits to a more conservative financial policy.  The
debt-to-EBITDA ratio sustainably below 5.0x and EBITDA interest
coverage consistently above 2.5x would indicate such improvement.



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


SHARP CORP: Egan-Jones Downgrades Commercial Paper Rating to C
--------------------------------------------------------------
Egan-Jones Ratings Company, on February 28, 2017, lowered rating
on commercial paper issued by Sharp Corp. Japan to C from B.

Sharp Corporation is a Japanese multinational corporation that
designs and manufactures electronic products.


SHOWA SHELL: Egan-Jones Cuts Unsecured Debt Rating to BB
--------------------------------------------------------
Egan-Jones Ratings, on Feb. 28, 2016, raised the senior unsecured
rating on debt issued by Showa Shell Sekiyu KK to BB from B+.

Showa Shell Sekiyu Kabushiki Kaisha is the base of Royal Dutch
Shell group in Japan. It was formed by the merger of Showa Oil
Company and Shell Sekiyu which was begun around 1876 in Yokohama
by Samuel Samuel & Co, the predecessor of Shell Group today.
Showa Shell Sekiyu provides oil and energy solution business in
Japan and worldwide.


TOSHIBA CORP: Trust Banks File Lawsuit Over Accounting Scandal
--------------------------------------------------------------
Nikkei Asian Review reports that 11 trust banks have filed suit
together against Toshiba Corp, seeking roughly JPY14 billion
($126 million) in compensation for losses they claim were
inflicted on investors by its book-padding scandal.

The complaint filed with the Tokyo District Court names four
banks as plaintiffs to represent the group, Nikkei says. These
include Japan Trustee Services Bank and Master Trust Bank of
Japan, which manage assets for such other plaintiffs as Sumitomo
Mitsui Trust Bank and Mitsubishi UFJ Trust and Banking. The
institutions will argue that false statements in Toshiba's
securities reports caused the conglomerate's stock to drop,
eroding the value of assets under management, Nikkei relates
citing a person familiar with the lawsuit.

According to Nikkei, Toshiba now faces at least 16 lawsuits from
domestic and foreign institutional and retail investors over the
2015 scandal. The latest action brings total damages sought to
about JPY46 billion, Nikkei notes.

Nikkei says trust banks rarely go to court in situations like
this where no criminal charges are involved. Also notable is the
presence of Toshiba lenders on the plaintiffs' side, such as the
Sumitomo Mitsui Trust Holdings subsidiary. With pension funds and
other institutional clients demanding greater accountability
regarding where their money goes, these banks likely felt obliged
to seek damages.

Toshiba said it has not received the complaint and declined to
comment further, Nikkei notes.

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.



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


PROPERTY VENTURES: ALF May Emerge as Beneficiary of Litigation
--------------------------------------------------------------
Paul McBeth at BusinessDesk reports that Allied Farmers said it
could be in the money if litigation against former bankrupt Dave
Henderson's Property Ventures group is successful.

In 2013, the Hawera-based rural services firm sold various loans
that it had written down to zero for NZ$100,000, with the
possibility of that rising to NZ$500,000, BusinessDesk recalls.
At the time, it declined to name the buyer or the outcomes that
would trigger a top-up payment. Allied Farmer said on April 5 the
deal was with a unit of litigation funder LPF Group, which is
backing liquidator Robert Walker's suit against Property Ventures
directors and auditor PwC.

"If the company's litigation is successful, ALF is entitled under
the terms of the deed of assignment to a proportion of any net
proceeds of that litigation (that proportion being
confidential)," the report quotes Allied chairman Garry Bluett as
saying. "Highlighting the difficulties of predicting the outcome
or the final quantum and the inherently risky nature of
litigation, the liquidator has advised that, if successful, the
final quantum will be higher than that predicted in 2013, and
accordingly that ALF may be entitled to a substantially greater
amount than NZ$500,000."

According to BusinessDesk, the suit reached the Supreme Court
last month, with Property Ventures' auditor PwC seeking to have
the proceedings stayed until the court was satisfied it wasn't an
abuse of process. The claim for between NZ$240 million and NZ$320
million made in 2014 was accruing a 20 percent interest
compounding monthly, and PwC's counsel Bruce Gray QC told the
Supreme Court it could top NZ$1 billion by the time the trial
starts next year, BusinessDesk discloses.

BusinessDesk says Allied Farmers took on the loans in its ill-
fated 2009 acquisition of the Hanover and United finance group's
loan book that wasn't worth as much as initially thought. Allied
Farmers has largely sold the residual assets of those loans and
is focusing on its livestock business, the report says.

Property Ventures (PVL), the central company of the
David Henderson property development ventures, was put into
receivership in March 2010, and then into liquidation in July the
same year.


SOLID ENERGY: Finalizes Sale of Ohai and New Vale Mines
-------------------------------------------------------
Amber-Leigh Woolf at Stuff.co.nz reports that settlement has been
reached in the sale of Solid Energy's Ohai and New Vale mines to
Greenbriar.

Stuff says the transaction means all of the mines' current
employees and operations will be transferred to the new owner, as
of April 8.

According to the report, Solid Energy chief executive Tony King
said the settlement was an extremely pleasing outcome.  Both the
New Vale mine and Ohai mine were "really important" to the
Southland economy, Mr. King said.

"[They're] really important in terms of being local businesses in
their own right, and we want to support local business," the
report quotes Mr. King as saying.  Additionally, both had
developed working with many Southland businesses for goods and
services, he said.

"They've been part of the Southland economy for many years and to
have them carry on, uninterrupted, it's just a good continuation
of business relationships," Mr. King, as cited by Stuff, said.

"It is the best possible result for our people, our customers,
the local communities and the Southland economy."

Stuff relates that Mr. King said the mines were transferring into
very capable hands and an "experienced and dedicated" workforce
would be retained.

"As of tomorrow [Saturday], they will be employees of
Greenbriar."

The signing of a sale and purchase agreement for the two
Southland mines was announced in October last year.

The announcement came at the conclusion of an extensive sales
programme encompassing all of Solid Energy's mining assets across
the country.

The announcement marked the first of the company's major mining
assets to change hands, Stuff relays.

Greenbriar, owned by the Palmer MH Group, is a privately-owned
South Island resources group with interests in mining and
quarrying operations.

Earlier last week, Solid Energy announced settlement of West
Coast assets purchased by Birchfield Coal Mines Limited would be
expected mid-April and with Moore Mining Ltd in May or June,
Stuff recalls.

Stuff notes that settlement with BT Mining for the Stockton
export coal operation, and the two Waikato mines, Rotowaro and
Maramarua is expected in June or July.

According to Stuff, Mr. King said staff and customers would be
kept informed as much as possible throughout the sales process.

Solid Energy had "significant focus" through the asset sales
programme to secure a path forward for the assets and
facilitating employment opportunities for staff, Mr. King said,
Stuff adds.

                         About Solid Energy

Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas,
biomass, biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 13, 2015, the Board of Solid Energy New Zealand Limited
(SENZ) has placed the company and all associated companies into
voluntary administration, a process which allows the company to
continue trading while creditors consider the best way forward.

KordaMentha partners, Brendon Gibson and Grant Graham have been
appointed Administrators.

Creditors of the Solid Energy Group on September 17 approved a
Deed of Company Arrangement (DOCA) with the Group.



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


EZRA HOLDINGS: To Meet Noteholders on April 17
----------------------------------------------
Jamie Lee at The Business Times reports that Ezra Holdings on
April 3 said it would meet noteholders on April 17, 2017 to
update the investors following its filing of voluntary petitions
for reorganisation under Chapter 11 of the United States
Bankruptcy Code.

The management of the oil-and-gas firm will be present at the
meeting, the report says.  Representatives from the Securities
Investors Association (Singapore) have also been invited to the
informal meeting as moderators for the dialogue session,
according to the report.

Noteholders who wish to attend the informal meeting are requested
to contact the company at informalmeeting_apr2017@emas.com with
their full name, NRIC number, the aggregate value of the notes
held, and contact particulars, by 5:00 p.m. on April 10, 2017.

On March 18, 2017, Ezra, together with its wholly-owned
subsidiaries, EMAS IT Solutions Pte Ltd and Ezra Marine Services
Pte. Ltd., filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court
for the Southern District of New York in order to facilitate a
financial restructuring.

                             About Ezra

Ezra is incorporated in Singapore with its registered office at
15 Hoe Chiang Road #28-01 Tower Fifteen Singapore 089316.  Its
shares were listed on the SGX Sesdaq on Aug. 8, 2003, and moved
to the Mainboard of the Singapore Exchange since Dec. 8, 2005.
It also issued certain notes (S$150,000,000 4.875% Notes due 2018
comprised in Series 003) which have been listed on the Singapore
Exchange since 2013.

Ezra established and maintains an office in the United States
located at 75 South Broadway, Fourth Floor, Office Number 489,
White Plains, NY 10601.  Ezra also has a wholly owned New York
subsidiary, Ezra Holdings (NY) Inc., which was incorporated in
the United States of America with 200 shares at a nominal issue
price per share.

Founded in 1992, Ezra Holdings Limited --
http://www.ezraholdings.com/-- is an offshore contractor and
provider of integrated offshore solutions to the global oil and
gas industry.  The Group has three main business divisions,
namely Subsea Services, Offshore Support and Production Services,
and Marine Services offering a full range of seabed-to-surface
engineering, construction, marine and production services
globally. Under the EMAS branding, the Group operates in more
than 16 locations across six continents spanning Africa, the
Americas Asia, Australia and Europe.

EMITS, a wholly owned subsidiary of Ezra, provides supporting
services to each of the Ezra Group's business divisions.  The
services provided are information technology services including
procuring data center services, Microsoft licenses, network
connectivity, computing support, shared IT equipment and service
support, email service, project management IT services support,
software applications and support and servers from various
service
providers.

Ezra Marine is also a wholly owned subsidiary of Ezra.  It has a
leasehold interest in the marine base in Singapore located at 51
Shipyard Road, Singapore 628139 and leases out the base's
facilities and provides various support services in connection
with the marine base to the Ezra Group's operating entities.
These support services in connection with the marine base include
provision of power and potable water, various rental equipment,
manpower and management services, storage space and supplies.

The Ezra Group's joint venture ECS, and certain of its affiliate
companies filed voluntary petitions for reorganization under
Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court for the Southern District of Texas on Feb. 27, 2017.  ECS'
wholly- owned subsidiary, EMAS-AMC AS, has also been placed under
members' voluntary liquidation in Norway.  As Ezra has guaranteed
substantial charter hire liabilities of the ECS Group, as well as
certain loans owed by the ECS Group to financial institutions,
Ezra faces potentially significant contingent liability if the
creditors call on the guarantees.

Ezra received statutory demands from Svenska Handelsbanken AB
(Publ), Singapore Branch and Forland Subsea AS on Jan. 24, 2017,
and Feb. 6, 2017, respectively.  These statutory demands have
since expired under Singapore law and these two creditors are at
liberty to commence winding up applications against Ezra.  Ezra
also received a statutory demand from VT Halter Marine, Inc. on
March 9, 2017.

For fiscal year ended Aug. 31, 2016, the Ezra Group, on a
consolidated basis, realized revenue of approximately $525
million, with corresponding cost of sales of approximately $540
million, for a gross loss of approximately $15 million.  The Ezra
Group also incurred other expenses, including administrative
expenses, in excess of $835 million, for a net loss from
continuing business operations of approximately $850 million.

Ezra's books and records reflect, as of Aug. 31, 2016, long-term
assets valued at approximately $515 million, and current assets
valued at approximately $220 million.  On a consolidated basis,
for the same time period, the Ezra Group reflected long-term
assets valued at approximately $1.3 billion, and current assets
valued at approximately $623 million.



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


SAMSUNG HEAVY: Halt Wage Talks to Focus on Work
-----------------------------------------------
Pulse reports that the union and management at Samsung Heavy
Industries Co. agreed on March 31 to halt wage negotiations to
concentrate better on their work and join forces to combat
current troubles from protracted slump in global demand.

Pulse relates that the two sides have not finalized wage terms
last year due to conflict over the company's self-rescue program
in return for debt relief from creditors, but decide to put the
talks on hold to focus more on their field jobs.

All three shipbuilding majors had to seek debt relief last year
amid dearth of orders from lengthy slowdown in global demand and
oil prices, according to Pulse. Samsung Heavy in July last year
pledged to cut workforce and non-core assets to raise new capital
and save cost, the report recalls. Union members went on strike
last year.

Wage negotiations demand presence of dock chief and other senior
union members. Other employees also must attend weekly meetings
to hear progress in the talks.

According to the report, the two agreed to put off wage
bargaining as the builder must focus entirely on making
meticulous final touches to major orders - an offshore central
processing facility (CPF) for the Ichthys LNG Project in
Australia, Prelude, the world`s first floating liquefied natural
gas (FLNG) project, commissioned by Royal Dutch Shell, Egina
floating production storage and offloading (FPSO) - before their
deliveries.

Pulse relates that the union chief also would accompany the
management when meeting ship owners or new clients to assure them
of strike-free work.

As of the end of 2016, Samsung Heavy reported $28 billion in
order backlog. The company set its target for this year at $6
billion, while receiving $1.5 billion worth new orders until
February, Pulse discloses.

Samsung Heavy Industries Co., Ltd. manufactures crude oil
tankers, container vessels, bulk carriers, cruisers, and
passenger ferries. The Company also produces steel and bridge
structures, and material handling equipment. In addition, Samsung
Heavy Industries provides civil engineering, architectural, and
plant construction services.

Samsung Heavy reported a net loss of KRW139 billion in 2016,
compared to a loss of KRW1.21 trillion in 2015.


                             *********

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

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

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


                            *********


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

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

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

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

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



                 *** End of Transmission ***