TCRAP_Public/170424.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 24, 2017, Vol. 20, No. 80

                            Headlines


A U S T R A L I A

EAGLE BOYS: Second Creditors' Meeting Set for April 28
HSW CORP: Second Creditors' Meeting Set for May 1
O'KEEFFE HENEGHAN: Second Creditors' Meeting Set for April 28
PEPPER RESIDENTIAL: Moody's Ups Rating on Class F Notes to Ba3
VISIONPAK PTY: Second Creditors' Meeting Set for May 1

* AUSTRALIA: More than 500 Gold Coast Businesses Likely to Fail


C H I N A

BRIGHT FOOD: Proposed Weetabix Sale Credit Positive, Moody's Says
CHINA SCE: Bond Offer on US$200MM Notes No Impact Moody's B1 CFR
KANGDE XIN: Moody's Rates USD300MM Senior Unsecured Notes Ba3
TIMES PROPERTY: Moody's Assigns B2 Rating to USD Sr. Unsec. Notes
YINGDE GASES: Liquidity Still Under Severe Pressure, Fitch Says


I N D I A

ASIANLAK HEALTH: ICRA Upgrades Rating on INR5.2cr Term Loan to B+
BHARATI DEFENCE: Creditors Propose Revival Package
BOMBAY SUPER: ICRA Reaffirms B+ Rating on INR8cr Cash Loan
GOKAK TEXTILES: ICRA Raises Rating on INR137.15cr Loan to B+
HANUMAN COTTON: CARE Issues B+ Issuer Not Cooperating Rating

HANUMANT SUGARS: ICRA Assigns B+ Rating to INR19.74cr Loan
KOHINOOR INDIA: CARE Lowers Rating on INR10cr LT Loan to 'B'
KOHINOOR RECLAMATIONS: CARE Issues B+ Not Cooperating Rating
M R AGRO: ICRA Assigns B+/A4 Rating to INR10cr Fund Based Loan
MURLI INDUSTRIES: Lenders Begin Proceedings Under Bankruptcy Code

PMV MALTINGS: ICRA Reaffirms B+ Rating on INR51cr Term Loan
ROHIT FABTEX: ICRA Reaffirms B+ Rating on INR9.70cr Loan
SAHASRALINGESHWARA POWER: ICRA Withdraws B Rating on INR64cr Loan
SANGRUR AUTOS: CARE Assigns B+ Rating to INR5.0cr Long Term Loan
SANT AUTOWHEELS: CARE Issues B+ Issuer Not Cooperating Rating

SAVITRA TILES: CARE Issues B+ Issuer Not Cooperating Rating
SERVOCONTROLS AND HYDRAULICS: ICRA Rates INR6.5cr LT Loan at B+
SEYA PATE: CARE Issues B Issuer Not Cooperating Rating
SHANKAR AGRO: CARE Issues B+ Issuer Not Cooperating Rating
SHIV HARI: CARE Lowers Rating on INR5.80cr Long Term Loan to B+

SHRI SHIVJOT: CARE Issues B Issuer Not Cooperating Rating
SHRIRAM SEPL: ICRA Lowers Rating on INR7cr LT Loan to 'D'
SHREE HARI: CARE Reaffirms B+ Rating on INR6.18CR LT Loan
SRI VENKATA: CARE Assigns 'B' Rating to INR5.0cr LT Loan
STRAIGHT EDGE: CARE Issues B Issuer Not Cooperating Rating

T.C. SPINNERS: CARE Issues B+ Issuer Not Cooperating Rating
TANEJA OVERSEAS: CARE Issues B+ Issuer Not Cooperating Rating
TIRUPATI COLD: CARE Assigns B+ Rating to INR5.54cr LT Loan
UNIPEARL ALLOYS: CARE Issues B+ Issuer Not Cooperating Rating
VIJAY NIRMAN: ICRA Lowers Rating on INR250cr Cash Loan to D


J A P A N

TOSHIBA CORP: Western Digital Makes Case for Chip Unit Bid


N E W  Z E A L A N D

FOREX BROKERS: Owes More Than NZ$10 Million, Liquidators Say
MARMALADE AUDIO: Owes NZ$183,000, Liquidators Report Show


P H I L I P P I N E S

CAP GENERAL: In Liquidation; Claims Deadline Set for Sept. 1


                            - - - - -


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


EAGLE BOYS: Second Creditors' Meeting Set for April 28
------------------------------------------------------
A second meeting of creditors in the proceedings of Eagle Boys
Dial-A-Pizza Australia Pty Ltd, Eagle Girls Pty Ltd, Eba Pizza
Holdings Pty Ltd, Eb Pizza Ip Holdings Pty Ltd, and
Eb Stores Pty Ltd has been set for April 28, 2017, at 1:30 p.m.,
at the offices of SV Partners, SV House, 138 Mary Street, in
Brisbane, Queensland.

The purpose of the meeting is (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 27, 2017, at 4:00 p.m.


Eagle Boys is a fast food chain specialising in Italian-American
cuisine, in particular pizza.

David Michael Stimpson and Terrence John Rose of SV Partners on
July 14, 2016, were appointed as administrators of:

   -- Eagle Boys Dial-A-Pizza Australia Pty Limited
   -- EBA Pizza Holdings Pty Ltd;
   -- Eagle Girls Pty Ltd;
   -- EB Pizza IP Holdings Pty Ltd; and
   -- EB Stores Pty Ltd.

Pizza Hut acquired the chain in November 2016.


HSW CORP: Second Creditors' Meeting Set for May 1
-------------------------------------------------
A second meeting of creditors in the proceedings of HSW Corp. Pty
Ltd, Lealdir Pty Ltd, A.C.N. 094 719 490 Pty Ltd (trading as
Howards Storage World), A.C.N. 069 891 201 Pty Ltd (trading as
Howards Storage World) has been set for May 1, 2017, at
11:30 a.m., at the offices of Deloitte, Level 9 Grosvenor Place
225 George Street, in Sydney, NSW.

The purpose of the meeting is (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 28, 2017, at 4:00 p.m.

David John Frank Lombe and Vaughan Neil Strawbridge of Deloitte
were appointed as administrators of HSW Corp on Dec. 9, 2016.

Howards Storage World was founded in Sydney in the 1970s with a
single store called Stack and Store. The first franchised store
opened in 1998.


O'KEEFFE HENEGHAN: Second Creditors' Meeting Set for April 28
-------------------------------------------------------------
A second meeting of creditors in the proceedings of O'Keeffe
Heneghan Pty Ltd, Aus Life Pty Ltd, and Rocky Neill Construction
Pty Ltd (trading as Smyths, KNF Construction, KNF Cleaning, KNF
Electrical Sydney, KNF Group) has been set for April 28, 2017, at
12:00 p.m., at the offices of BDO, Level 11, 1 Margaret Street,
in Sydney, NSW.

The purpose of the meeting is (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 27, 2017, at
10:00 a.m.

Andrew Thomas Sallway and James Michael White of BDO were
appointed as administrators of O'Keeffe Heneghan on March 16,
2017.


PEPPER RESIDENTIAL: Moody's Ups Rating on Class F Notes to Ba3
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of nine
classes of notes issued by two Pepper Residential Securities
Trust RMBS.

The affected ratings are:

Issuer: Pepper Residential Securities Trust No. 14

-- AUD20,900,000 Class C Notes, Upgraded to Aa1 (sf); previously
    on June 1, 2016 Upgraded to Aa3 (sf)

-- AUD11,000,000 Class D Notes, Upgraded to A2 (sf); previously
    on June 1, 2016 Upgraded to Baa1 (sf)

-- AUD6,600,000 Class E Notes, Upgraded to Baa3 (sf); previously
    on June 1, 2016 Upgraded to Ba1 (sf)

-- AUD8,200,000 Class F Notes, Upgraded to Ba3 (sf); previously
    on June 1, 2016 Upgraded to B1 (sf)

Issuer: Pepper Residential Securities Trust No. 15

-- AUD29,500,000 Class B Notes, Upgraded to Aaa (sf); previously
    on August 4, 2016 Upgraded to Aa1 (sf)

-- AUD5,100,000 Class C Notes, Upgraded to Aa1 (sf); previously
    on August 4, 2016 Upgraded to A1 (sf)

-- AUD6,000,000 Class D Notes, Upgraded to A2 (sf); previously
    on August 4, 2016 Upgraded to Baa1 (sf)

-- AUD3,900,000 Class E Notes, Upgraded to Baa3 (sf); previously
    on August 4, 2016 Upgraded to Ba1 (sf)

-- AUD3,600,000 Class F Notes, Upgraded to Ba3 (sf); previously
    on August 4, 2016 Upgraded to B1 (sf)

RATINGS RATIONALE

The upgrades were prompted by the build-up in credit enhancement
during the sequential pay period, and that loan performance is in
line with Moody's expectations.

The decrease in both scheduled and indexed loan to value ratios
since the last rating action has led to lower MILAN CE for the
transactions.

Pepper Residential Securities Trust No. 14

As of March 2017, the collateral pool has paid down by 53%. The
fast pay-down is largely due to obligors prepaying their loans
and refinancing with other lenders.

As a result, the credit enhancement for the Class C, Class D,
Class E and Class F notes has increased to 13.3%, 9.0%, 6.4% and
3.3% from 6.2%, 4.2%, 3.0%, and 1.5%, respectively.

The notes will continue to pay down on a sequential basis until
at least the second anniversary of the transaction closing, which
will be in June 2017.

The performance of the mortgage portfolio is within Moody's
expectations. As of end-February 2017, 8.53% of the outstanding
pool was 30-plus day delinquent, and 2.21% was 90-plus day
delinquent. Cumulative losses amounted to AUD 659,594, or 0.12%
of the closing pool balance.

Based on the observed performance and outlook, Moody's maintained
its expected loss assumption at 1.6% as a percentage of the
original pool balance.

Moody's has decreased its MILAN CE assumption to 14.8% from 16.8%
in June 2016 based on the current portfolio characteristics.

Pepper Residential Securities Trust No. 15

As of March 2017, the collateral pool has paid down by 47%. The
fast pay-down is largely due to obligors prepaying their loans
and refinancing with other lenders.

As a result, the credit enhancement for the Class B, Class C,
Class D, Class E and Class F notes has increased to 15.0%, 11.8%,
8.0%, 5.6% and 3.4% from 8.0%, 6.3%, 4.3%, 3.0%, and 1.8%,
respectively.

The notes will continue to pay down on a sequential basis until
at least the second anniversary of the transaction closing, which
will be in November 2017.

The performance of the mortgage portfolio is within Moody's
expectations. As of end-February 2017, 8.61% of the outstanding
pool was 30-plus day delinquent, and 2.86% was 90-plus day
delinquent. Cumulative losses amounted to AUD470,372, or 0.16% of
the closing pool balance.

Based on the observed performance and outlook, Moody's maintained
its expected loss assumption at 1.7% as a percentage of the
original pool balance.

Moody's has decreased its MILAN CE assumption to 15.4% from 16.9%
in August 2016 based on the current portfolio characteristics.

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

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

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

Please note that on March 22, 2017, Moody's released a Request
for Comment, in which it requested market feedback on potential
revisions to its Approach to Assessing Counterparty Risks in
Structured Finance. If the revised Methodology is implemented as
proposed, the ratings on these two Pepper Residential Securities
Trust RMBS are not expected to be affected. Please refer to
Moody's Request for Comment, titled "Moody's Proposes Revisions
to Its Approach to Assessing Counterparty Risks in Structured
Finance," for further details regarding the implications of the
proposed Methodology revisions on certain Credit Ratings.

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

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

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


VISIONPAK PTY: Second Creditors' Meeting Set for May 1
------------------------------------------------------
A second meeting of creditors in the proceedings of Visionpak Pty
Ltd has been set for May 1, 2017, at 10:30 a.m., at the offices
of Brooke Bird, 471 Riversdale Road, in Hawthorn East, Victoria.

The purpose of the meeting is (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 28, 2017, at 5:00 p.m.


* AUSTRALIA: More than 500 Gold Coast Businesses Likely to Fail
---------------------------------------------------------------
Kathleen Skene and Ryan Keen at Gold Coast Bulletin, citing new
data from SV Partners, report that more than 500 Gold Coast
businesses are likely to fold within 12 months due to falling
tourist spending and poor financial management.

According to the Bulletin, Gold Coast comes a dubious second in
the country when it comes to likelihood of failure, with analysis
of business credit and corporate activity predicting 527 of all
Gold Coast businesses, or 3.6%, are likely to fold within a year.

Parramatta in western Sydney is the only area with a higher
percentage of likely failures, the Bulletin says.

Behind food and accommodation, a sector where a staggering 7.3
per cent of companies are considered "likely" to fold, retail is
the next local industry at risk - 4.4% or 55 businesses
exhibiting "high risk factors", SV Partners said, the Bulletin
relays.

According to the report, Director Matthew Bookless said declining
spend from international and domestic tourists and a high
proportion of small businesses with inadequate financial
management were likely contributors.

"While tourist numbers are up, the overall amount tourists are
spending is down - that would be a logical reason that retail,
accommodation and food services are in the top four industries on
the Coast by number that have a high risk of failure, meaning
they are already in financial distress," the Bulletin quotes
Mr. Bookless as saying.

Federal Tourism Minister Steven Ciobo has a nervous eye on the
Gold Coast's "problem" trend of declining spend and beds nights
despite international visitor growth, the Bulletin says.

"By every measure Australia is performing better than ever. I'm
sure the Gold Coast Mayor and Gold Coast Tourism will address the
problems becoming evident which are seeing the city lose
marketshare."

Mr. Bookless said the number of construction sector businesses
under strain was likely to increase as Commonwealth Games and
other major projects finished up, the Bulletin adds.



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


BRIGHT FOOD: Proposed Weetabix Sale Credit Positive, Moody's Says
-----------------------------------------------------------------
Moody's Investors Service says that Bright Food (Group) Co.,
Ltd.'s decision to sell its stake in Weetabix Food Company
(unrated) to Post Holdings, Inc. (B2 CFR stable) is credit
positive, but has no immediate impact on Bright Food's Baa3
issuer rating and negative outlook.

Moody's expects that the sale will likely reduce Bright Food's
debt position and likely indicates a more prudent approach for
future growth.

On April 18, Post Holdings, a US cereal company, announced that
it had agreed to acquire Bright Food's 60% stake in Weetabix --
the UK-based cereal maker -- for GBP1.4 billion (USD1.76
billion), based on enterprise value, including the value of
Weetabix's equity and debt.

Moody's estimate that Bright Food will likely receive net
proceeds of around GBP800-GBP900 million from the transaction and
also book a gain from the sale.

Moody's also expects that Bright Food will likely to use most of
the proceeds to repay debt associated with its acquisition of
Weetabix in 2012. However, it will not materially lower Bright
Food's leverage metrics.

Moody's estimates that the proceeds will account for around 10%
of Bright Food's reported debt at end-September and that Weetabix
contributed to around 10% of Moody's expected EBITDA for Bright
Food in 2016.

Moody's believes that the synergies between Bright Food and
Weetabix have not been significant as sales in China only
accounted for a small proportion of Weetabix's total revenue.

Although Bright Food greatly increased Weetabix's sales in China
by leveraging its sales network, Weetabix's overall revenue
growth has been sluggish during the past few years.

"Moody's regards the transaction as an indication that Bright
Food's management will focus more on integrating acquired
businesses and improving operational efficiency in the future.
Moody's will continue to monitor Bright Food's performance and
its growth and financial management plan, including how it will
use the proceeds from its disposal of its stake in Weetabix",
says Lina Choi, a Moody's Vice President, Senior Credit Officer
and also the International Market Analyst for Bright Food.

Bright Food's overseas acquisitions during 2012-2015 resulted in
higher leverage, with adjusted debt/EBITDA rising to around 9.2x
at end-2015 from 6.5x at end-2012.

The negative outlook on Bright Food's rating reflects its (1)
high leverage; (2) uncertainty regarding its deleveraging
process; and (3) the potential for weaker-than-expected support
from the Shanghai government over time, given the ongoing reform
process in China and increasing evidence that both the central
and local governments will expect state-owned enterprises to
continue operating in commercial areas with less state support
available gradually.

The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016. Other
methodologies used include the Government-Related Issuers
methodology published in October 2014.

Bright Food (Group) Co., Ltd. is one of the largest food
conglomerates in China, with various business segments and a
strong focus on food manufacturing & supply. The group's core
businesses are in food and agriculture, but it also has
businesses in wholesale and retail, logistics, taxi services and
real estate development. Its revenue in the 12 months ended
September 30, 2016 was around RMB150 billion.

Weetabix owns the eponymous #1 cereal brand in the UK, where the
85-year-old company was founded and generated 76% of its GBP410
million in revenue in 2016. The company entered the North America
market in 1967, where it generates 19% of its sales. Weetabix
also generates sales in other European markets (4%) and other
global markets (4%), including China and Africa.


CHINA SCE: Bond Offer on US$200MM Notes No Impact Moody's B1 CFR
----------------------------------------------------------------
Moody's Investors Service says that China SCE Property Holdings
Limited's B1 corporate family rating and B2 senior unsecured debt
rating are unaffected by the company's announcement of a tap bond
offering on its existing USD200 million senior notes due 2022.

The rating outlook remains stable.

"The tap issuance will lengthen China SCE's debt maturity profile
and improve its liquidity position," says Franco Leung, a Moody's
Vice President and Senior Credit Officer, also the International
Lead Analyst for China SCE.

"The issuance will have limited impact on the company's credit
metrics, as the proceeds will be used mainly to refinance
existing debt," says Cindy Yang, a Moody's Assistant Vice
President and Analyst, also the Local Market Analyst for China
SCE.

Moody's expects that following the tap bond issuance, China SCE's
revenue/debt will be 65%-70% and its EBIT/interest coverage
around 3.0x over the next 1-2 years. These credit metrics support
its B1 corporate family rating

China SCE recorded a robust sales performance during the first
three months of 2017, with contracted sales growing 58% year-on-
year to RMB6.8 billion, including contributions from joint
ventures and associates.

Moody's estimates that the company's contracted sales will grow
10%-15% in 2017.

China SCE's liquidity position is strong. Its cash balance of
RMB8.6 billion at end-2016 was sufficient to meet its short-term
debt of RMB3.4 billion and committed land payments in the next 12
months.

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

Founded in 1996, China SCE Property Holdings Limited is a leading
property developer in Fujian Province. The company listed on the
Hong Kong Stock Exchange in February 2010, and is 57.9% owned by
its chairman, Mr. Wong Chiu Yeung.

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


KANGDE XIN: Moody's Rates USD300MM Senior Unsecured Notes Ba3
-------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba3 rating to
the USD300 million, 6.0%, 3-year senior unsecured notes, due 16
March 2020, and issued by Top Wise Excellence Enterprise Co.,
Ltd.

The notes are guaranteed by Kangde Xin Composite Material Group
Co., Ltd. (KDX, Ba3 stable).

Moody's also says that KDX's results for 2016 were in line with
its Ba3 corporate family rating.

The rating outlook is stable.

RATINGS RATIONALE

The definitive rating assignment follows KDX's completion of its
USD bond issuance, the final terms and conditions of which are
consistent with Moody's expectations, and the registration of
KDX's guarantee on the issued bonds with China's State
Administration of Foreign Exchange.

The provisional rating was assigned on 11 November 2016, and
Moody's ratings rationale was set out in a press release
published on the same day.

KDX has also reported 2016 results which were largely in line
with Moody's expectations.

"KDX has maintained its strong growth in the optical film market,
high profitability, moderate leverage, and solid liquidity," says
Gloria Tsuen, a Moody's Vice President and Senior Analyst.

KDX's revenue increased 22% year-on-year to RMB9.2 billion in
2016, driven by the optical film segment. Reported operating
margins rose 1.6 percentage points to 28.6%, helped by the 2.8
point improvement in gross margins to 40.5%.

Moody's expects that KDX's revenue will rise in the 15%-20% range
year-on-year in 2017 - driven by capacity increases - and that
the company will maintain solid margins.

KDX's capital expenditures will be high in 2017 and 2018, due to
the phase two expansion of the production site in Zhangjiagang.
The expansion will add 102 million sq meters in advanced optical
film production capacity - compared with the current 240 million
sq meters - and 100 million pieces of glasses-free 3D film module
products.

Moody's estimates that KDX's adjusted debt/EBITDA was at around
3.3x at end-2016, but will increase towards 4.0x during 2017,
following the issuance of the USD300 million in notes in March.

Nevertheless, Moody's expects that KDX's leverage will fall in
2018 to around 3.5x, which will support the company's Ba3
corporate family rating. The deleveraging will come after the
company's production expansion, which will in turn drive EBITDA
growth over the next 18-24 months.

KDX's liquidity is solid. Following its RMB4.8 billion equity
issuance in September 2016, it ended 2016 with RMB15.4 billion in
cash which, when combined with Moody's estimate of around RMB1
billion in operating cash flow, will be more than enough to cover
its RMB8.7 billion in short-term debt, RMB3.8 billion in capex,
and around RMB200 million in dividends.

The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.

Established in 2001 and listed on the Shenzhen Stock Exchange
since 2010, Kangde Xin Composite Material Group Co., Ltd. is a
leading manufacturer of optical and pre-coated laminating films
globally.

KDX's largest shareholder is Kangde Investment Group Co., Ltd.
(unrated), which owned 22.26% of the company at end-2016, and
which is in turn 80% owned by founder and chairman, Mr. Yu Zhong.


TIMES PROPERTY: Moody's Assigns B2 Rating to USD Sr. Unsec. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the USD
senior unsecured notes proposed by Times Property Holdings
Limited (B1 positive).

The proceeds will be used to refinance certain of its existing
indebtedness.

The ratings outlook remains positive.

RATINGS RATIONALE

"The proposed bonds will lengthen Times Property's debt maturity
profile and improve its liquidity position, in addition to
reducing its funding costs," says Kaven Tsang, a Moody's Vice
President and Senior Credit Officer, also the International Lead
Analyst for Times Property.

"The issuance will have a limited impact on the company's credit
metrics, as the proceeds will be used mainly to refinance
existing debt," says Cindy Yang, a Moody's Assistant Vice
President and Analyst, also the Local Market Analyst for Times
Property.

Moody's estimates that the company's credit metrics will improve
over the next 12-18 months. Its debt leverage - as measured by
revenue/adjusted debt - will improve to 80%-90% from 75.3% in
2016, and EBIT/interest coverage to 3.0x-3.5x from 2.7x in 2016.

These levels position the company at the strong end of the B1
rating level and underpin its positive outlook.

Times Property's B1 corporate family rating reflects its growing
operating scale, its strong liquidity, as well as its established
brand and track record in Guangdong Province.

These strengths are counterbalanced by its geographic
concentration in Guangdong Province and exposure to the financing
and execution risks associated with its fast-growth business
strategy.

Moody's points out that the company's prudent financial
management and good contracted sales have resulted in a strong
cash position. Its cash/short-term debt stood at 6.1x at end-
2016.

Times Property recorded robust sales performance during the first
three months of 2017, with contracted sales growing 20.7% year-
on-year to RMB6.7 billion. Moody's estimates that the company's
contracted sales will grow 8%-10% year-on-year in 2017.

The positive outlook on its corporate family rating reflects
Moody's expectations that the company will show an improvement in
its credit metrics, supported by strong revenue growth and stable
gross margins over the next 12-18 months.

Upgrade pressure on Times Property's corporate family rating
could emerge if the company shows a record of: (1) stable growth
in sales and scale, and maintains its strong cash position, as
evidenced by cash/short-term debt at 2.0x; (2) improved credit
metrics; specifically, if its adjusted revenue/debt exceeds 75%-
80%, and adjusted EBIT/interest exceeds 3.0x on a sustained
basis.

On the other hand, the ratings outlook could return to stable, if
the company shows: (1) volatility in its contracted sales and
revenue; (2) higher-than-expected land acquisitions, or (3) a
lower likelihood that its credit metrics would improve, such as
to reach levels appropriate for a ratings upgrade over the medium
term.

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

Times Property Holdings Limited is a property developer based in
Guangdong Province. It focuses on meeting end-user demand for
mass-market housing. At end-2016, it had 54 property projects
across eight cities in Guangdong Province and Changsha city in
Hunan Province. Its land bank totaled around 13.1 million square
meters as of the same date.


YINGDE GASES: Liquidity Still Under Severe Pressure, Fitch Says
---------------------------------------------------------------
Yingde Gases Group Company Limited's (B+/Rating Watch Negative)
liquidity remains under severe pressure as it has yet to resolve
uncertainties related the breach of a covenant of its offshore
syndicated loan and refinancing of an upcoming bond maturity,
Fitch Ratings says.

However, Yingde's financial results for 2016 showed that
operations are improving while the acquisition of the company by
private equity firm PAG Asia, which turned unconditional on 6
April 2017, has resolved a shareholder tussle that has been a
drag on Yingde's business.

The company said it has reclassified a syndicated loan with total
outstanding value of CNY681 million as short-term borrowing at
end-2016 after it was in breach of one net tangible asset
covenant in the loan documents. Any acceleration of repayment on
the loan will trigger a cross default on its bonds, and Fitch
would consider a multi-notch downgrade of Yingde's ratings. PAG
and Yingde are negotiating with its bankers to waive the
covenant; if the talks fail, PAG and Yingde will seek to
refinance the loan.

Yingde's onshore liquidity remains tight due to high reliance on
short-term borrowings. According to the company, the release of
its pledged cash, strong free cash flow and a cut in capex may
help the company repay its CNY880 million domestic bond issued by
its subsidiary Hunan Yingde Gases Co., Ltd. due on 13 July 2017.
Failure to address the refinancing or repayment of this domestic
bond may also result in multi-notch downgrade of Yingde's
ratings.

Fitch believes Yingde's improving financial metrics support its
rating and expect the company to generate positive free cash flow
in the near term as the company continues to cut capex. Yingde's
2016 results show slow improvement but are largely in line with
our previous forecasts. The company's top line was still
adversely affected by lower average selling prices and the
company still has large receivables to collect. Revenue increased
6% to CNY8.4 billion, with operating EBITDA margin improving to
34.2% from 33.4% in 2015. The company's net leverage, measured by
net debt to operating EBITDA, improved to 3.1x from 3.5x a year
earlier due to lower capex and better receivable collection.

The company recorded CNY612 million of impairment losses on
property, plant and equipment and construction in progress in
2016, compared with zero impairments a year earlier, reflecting
poor capex decisions in the past. Once the acquisition by PAG is
completed and new management and shareholders are in place, we
expect Yingde to focus on investments in its core business.



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


ASIANLAK HEALTH: ICRA Upgrades Rating on INR5.2cr Term Loan to B+
-----------------------------------------------------------------
ICRA has upgraded its long-term rating on the INR10.00-crore
fund-based facilities of Asianlak Health Foods Limited to
[ICRA]B+ from [ICRA]B-. The outlook on the long-term rating is
'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long-term-Term
  Loans                    5.20     [ICRA]B+ (Stable); upgraded
                                    from [ICRA]B-

  Long-term-Cash
  Credit                   4.80     [ICRA]B+ (Stable); upgraded
                                    from [ICRA]B-

Rationale

The rating upgrade is driven by the steady financial performance
of AHFL (top-line grew at a CAGR of ~17% in the last five years)
and the improvement in capital structure as reflected in the
reduction in the gearing ratio (1.5 times in FY2016 over 1.2
times in FY2015). ICRA also takes note of the improved financial
discipline and the regularity in debt repayments. The rating
continues to draw comfort from the extensive experience of the
promoters in the beverage industry; the revenue visibility by way
of association with Bisleri International; AHFL's long track
record of operations, its wide distribution network and
established relationships with clients.

However, the rating is constrained by AHFL's low profit margins
because of intense industry competition. The rating also takes
into account the seasonal nature of the business and the
company's relatively modest scale of operations. Though improved
in FY2016, AHFL's profitability continues to be low, which
coupled with high debt levels has resulted in weak coverage
indicators with elevated TD/OPBDITA2 and weak NCA/TD3.

Going forward, the ability of the company to improve its margins,
scale up its operations and strengthen its coverage indicators
will be the key rating sensitivity.

Key rating drivers

Credit strengths

* Long experience of the promoters in the beverages industry;

* Long association with Bisleri International as a franchise
   partner for Punjab and Haryana provides revenue visibility

* Own distribution network in the state of Himachal Pradesh,
   Jammu & Kashmir, Punjab and Haryana

Credit weaknesses

* Modest liquidity position as reflected in almost full
   utilisation of working capital facilities

* Strong competition from other established brands such as
   Aquafina and Kinley

* Demand for soft drinks for which AHFL has already incurred
   capex would be dependent on advertisement by Bisleri
   International

Detailed description of key rating drivers:

AHFL packages drinking water, manufactures soda and aerated soft
drinks as a franchise partner for Bisleri International from its
plant at Ludhiana, in Punjab. The company sells water and soda in
the states of Punjab and Haryana. In addition to these states,
AHFL sells aerated soft drinks in Jammu & Kashmir and Himachal
Pradesh. Starting as a bottling partner for Thums Up, the
company's promoters have extensive experience of more than four
decades in the beverage industry, by virtue of which AHFL has an
established distribution network across Haryana, Punjab, Jammu &
Kashmir and Himachal Pradesh. It leverages this network to market
its product. AHFL's top-line has grown at a healthy CAGR of ~17%
over the last five years.

With small amount of creditors and high inventory and debtor
days, the company's operations are working capital intensive,
resulting in high dependence on working capital limits.
Furthermore, owing to high industry competition, AHFL's margins
remain under pressure.

Analytical approach: For arriving at the ratings, ICRA has taken
into account the business risk profile of Asianlak Health Foods
Limited, financial risk drivers and management profile.

Incorporated in 1995 by Mr. Radhe Shyam Poddar, Mr. Gopal Poddar
and Mr. Neeraj Poddar, AHFL manufactures packaged drinking water
and soda for Bisleri International as a franchise partner in
Punjab and Haryana. The company is also a franchise partner for
Bisleri's aerated soft drinks in Jammu & Kashmir and Himachal
Pradesh, apart from Punjab and Haryana. The company's plant is in
Ludhiana (Punjab) and has an installed capacity to process
7,20,000 liters of water per day.

The company reported a net profit after tax of INR1.50 crore on
an operating income of INR59.67 crore in FY2016, as against a net
profit after tax of INR1.39 crore on an operating income of
INR56.41 crore in FY2015.


BHARATI DEFENCE: Creditors Propose Revival Package
--------------------------------------------------
The Economic Times reports that creditors, led by Edelweiss Asset
Reconstruction Co, have proposed a revival package for the ailing
Bharati Defence and Infrastructure (formerly Bharati Shipyard),
under the Insolvency and Bankruptcy Code 2016.

ET relates that Edelweiss which owns 85% of the INR10,000 crore
debt of the company, filed a case at the National Company Law
Tribunal (NCLT) seeking permission to turnaround the company
under a new management. This will require infusion of Rs 400
crore initially and a restructuring of the company's business.
This is the largest case filed before the NCLT under the new
code, the report notes.

Under the Insolvency and Bankruptcy Code, 2016, lenders have to
approach NCLT with a concrete revival plan which, if approved,
has to be set in motion within 180 days, the report notes.

"The plan is to make 4-5 revenue divisions of the company like
repairs, defence, ship-building and commercial businesses. The
interim CEO appointed by Edelweiss will continue to run the show
but we will also hire turnaround experts from the market to help
in the makeover," the report quotes a person familiar with the
plan as saying.

Edelweiss had appointed Sameer Kaji as interim CEO, who is likely
to continue, the report says.  According to ET, the company plans
to invest close INR400 crore, half of it on its own and the
remaining from distressed institutional funds into the company as
part of the plan. Edelweiss's Distressed Assets Resolution
Business could play a role in the revival. It is unclear whether
CDPQ of Canada, which has an agreement with Edelweiss, will
invest in the company, the report says.

Bharati Defence and Infrastructure Limited, formerly Bharati
Shipyard Limited (BOM:532609) is engaged in the business of naval
architecture, marine engineering and ocean engineering. The
Company is also engaged in building various types of ships and
other vessels, (both with and without power), build drilling
rigs, fabricating offshore platform and other Offshore and other
structures, earth moving machinery, and all platforms and
equipment required for defense purpose. The Company operates in
Ship Manufacture segment. It is also engaged in building a Mobile
Offshore Drilling Unit capable of operating in approximately 350
feet of water. This Rig can be elevated to a height of
approximately 418 feet, and has an electric rack and pinion
system of jack up, as well as derrick skidding system. It has a
cantilever cover of 70 feet beyond the transom and drill floor
movement of approximately 30 feet side to side. It offers Self
Propelled Moduler Transport System and Computer Numeric Control
machines.


BOMBAY SUPER: ICRA Reaffirms B+ Rating on INR8cr Cash Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ on the
INR8.00-crore (enhanced from INR5.50 crore) cash credit facility,
INR2.21-crore (reduced from INR2.50-crore) term loan and the
short-term rating of [ICRA]A4 on the INR0.50-crore EPC/PCFC/FBD
facility (sublimit within cash credit) of Bombay Super Hybrid
Seeds Private Limited. ICRA has also reaffirmed [ICRA]B+ and
[ICRA]A4 rating on the INR0.29-crore (reduced from INR1.50 crore)
unallocated limits of BSHSPL. The outlook assigned on the long-
term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund-based Cash
  Credit                  8.00       [ICRA]B+ (Stable) reaffirmed

  Fund-based Term
  Loan                    2.21       [ICRA]B+ (Stable) reaffirmed

  Fund-based EPC/
  PCFC/FBD               (0.50)      [ICRA]A4 reaffirmed

  Unallocated Limits      0.29       [ICRA]B+ (Stable)/A4
                                     reaffirmed

Rationale

The rating continues to be constrained by BSHSPL's thin
profitability due to its limited value-added activities and high
dependence on groundnut, which accounted for 60-70% of the total
sales. The rating also takes into account the moderate financial
profile, characterised by stretched capital structure owing to
debt-funded capex (gearing levels of 2.03 times as on March 31,
2016) and moderate coverage indicators, as evident from the
interest coverage (OPBDITA/I&F of 1.95 times and NCA/total debt
of 6.69%) in FY2016. ICRA also notes the vulnerability of
production and seed sales to agro-climatic conditions and the
highly fragmented and unorganised industry structure, resulting
in intense competition.

However, the ratings favorably factor in the long experience of
BSHSPL's promoters in the seed industry and the increase in scale
of operations, with significant growth of 101.48% in FY2016
revenues. Furthermore, the ratings also draw comfort from the
company's established relationship with dealers and distributors
across India.

Going forward, the company's ability to sustain the increase in
scale of operations, improve the profit margins and the capital
structure and maintain liquidity position would be the key rating
sensitivity from the credit perspective.

Key rating drivers

Credit Strengths

* Two-decade long experience of the promoters in the seeds
   Industry

* Well established relationships with distributors across India

* Significant increase in scale of operations, with revenues
   increasing from INR31.32 crore in FY2015 to INR63.11 crore in
   FY2016 owing to increase in market presence

Credit Weakness

* High dependence on groundnut, which accounted for 60%-70% of
   the total sales in FY2016

* Financial profile characterised by thin profitability, high
   gearing and modest converge indicators

* Seasonal nature of business and presence in a highly
   competitive and fragmented market, with production and sales
   exposed to agro climatic conditions

Description of key rating drivers

BSHSPL's six products namely groundnut, onion, coriander, cumin,
rajka and gram accounted for 90.18% of the total sales.
Furthermore, the company incurred debt-funded capex in FY2016 and
in the current fiscal for enhancement of processing capacity from
20 MT per day to 70 MT per day. The capex resulted in stretched
capital structure as evident from the high gearing (2.03 times as
on March 31, 2016). However, equity infusion to the tune of
INR1.36 crore in FY2016 provided comfort to an extent.

Furthermore, in the current fiscal, the company's operating
income increased to INR103.4 crore by end of February 2017 due to
increase in processing capacity as well as expansion of market
presence owing to increase in network of dealers (around 300
dealers across pan India) enabling the company to secure repeat
orders.

Analytical approach:

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

Established in 2014, Bombay Super Hybrid Seeds Private Limited
(BSHSPL), was earlier established in 1990 as a partnership firm
under the name of "Patel Jadavjibhai Devrajbhai" and was
subsequently converted to Bombay Super Hybrid Seeds Private
Limited. BSHSPL processes and markets seeds of various varieties
of crops such as groundnut, onion, coriander, cumin, rajka, gram,
wheat, seaseme, etc under the brand "Bombay Super Seed". The
company is owned and managed by Mr. Arvind Kakadia and Mr. Kirit
Kakadia.

BSHSPL has two processing plants in Rajkot, Gujarat that have a
combined seed processing capacity of 70 metric tonnes per day.
The additional processing capacity of 50 metric tonnes per day
commenced operations on September 2016.

On March 31, 2016, the company reported an operating income of
INR63.11 crore with a net profit of INR0.26 crore against an
operating income of INR31.32 crore with a net profit of INR0.19
crore as on March 31, 2015.


GOKAK TEXTILES: ICRA Raises Rating on INR137.15cr Loan to B+
------------------------------------------------------------
ICRA has revised the long-term rating to [ICRA]B+ from [ICRA]D
for the INR137.15 crore fund-based facilities and the INR9.79
crore term loan facilities of Gokak Textiles Limited. The outlook
on the long-term rating is Stable. ICRA has also revised the
short-term rating to [ICRA]A4 from [ICRA]D for the INR20.00-crore
short term fund based facility of GTL.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Term Loans             9.79       [ICRA]B+ (Stable)/revised
                                    from [ICRA] D

  Long Term Fund       137.15       [ICRA]B+ (Stable)/revised
  Based Limits                      from [ICRA] D

  Short Term Fund       20.00       [ICRA]A4 /revised from
  Based Limits                      [ICRA] D

Rationale

The rating revision factors in the regularization of debt
servicing by the company. During May 2016, the company's debt
servicing had witnessed certain delays on account of disruption
in operations attributed to illegal labour strike in its
manufacturing facilities. However, with the resolution of the
same, the company's debt servicing was regularized and there have
been no delays in meeting the interest and principal obligations
over the last six months.

During March-May, 2016, following the labour unrest, the company
witnessed a two-month lockout in its yarn manufacturing division
in Gokak Falls, Karnataka. This in turn has resulted in further
deterioration of the company's financial profile which continues
to remain weak characterized by strained cash flows, net losses
and stretched coverage indicators. However, with GTL being part
of the Shapoorji Pallonji Group (SPG / the group), ICRA expects
support from the group to continue to provide financial
flexibility.

Key rating drivers

Credit Weakness

* Weak financial profile characterized by weak cash flows,
   steep decline in operating income and sharp losses

Credit Strengths

* Parentage and group support from Shapoorji Pallonji Group

Description of key rating drivers highlighted above:

The ratings revision derived comfort from the parentage of the
company along with regularization of debt servicing by the
company post delays in servicing of term loans during May 2016.
Prolonged disruption in the yarn manufacturing division in Gokak
Falls, Karnataka, which contributes to over 90% of its operating
income, affected GTL's performance adversely in the current
fiscal. For the nine month period ending December 2016, GTL
reported an operating income (standalone) of INR39.7 crore (down
73.6% YoY) and an operating and net loss of INR16.8 crore and
INR29.9 crore respectively.

Gokak Textiles Limited was incorporated in 2007, subsequent to a
scheme of demerger of the textile arm of Forbes Gokak Limited
(FGL) into a separate company Gokak Textiles Limited with effect
from April 1, 2007. GTL has two units - a spinning mill at Gokak
Falls (Karnataka) and garment manufacturing unit in Belgaum
district of Karnataka. The spinning mill at Gokak Falls produces
cotton yarn (grey and dyed) and other value-added yarns such as
bamboo/multimodal yarns, mÇlange yarns, compact yarns and organic
yarns apart from small volumes of readymade items such as cotton
canvas and terry towels. The Belgaum unit specializes in
readymade knitted garments including combed polo and T-shirts for
export markets. GTL has an installed capacity of 121,188 spindles
and 1,104 rotors for cotton yarn with a manufacturing capacity of
30,000 tonnes of yarn per annum. During FY2011, the company also
forayed into branded business with the launch of inner wear
brand, "FACIT". The company has a captive hydro power capacity of
6.3 MW and heavy furnace oil plant capacity of 6.5 MW. During
FY2012, the company hived off its power generation business under
a newly formed subsidiary named "Gokak Power & Energy Limited
(GPEL)". While GTL holds 51 percent stake in GPEL, the remaining
49 percent is held by Shapoorji Pallonji Infrastructure Capital
Company Limited.

For 9 month period ending December 2016, GTL, on standalone
basis, reported an operating income of INR39.7 crore and net loss
of INR29.9 crore.


HANUMAN COTTON: CARE Issues B+ Issuer Not Cooperating Rating
------------------------------------------------------------
CARE has been seeking information from Hanuman Cotton Industries
(HCI), to monitor the rating(s) vide e-mail communications/
letters dated March 6, 2017, March 2, 2017, 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 rating on Hanuman Cotton Industries' bank facilities will
now be denoted as CARE B+; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             8.01       CARE B+; Issuer Not
                                     Cooperating

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

Detailed description of the key rating drivers

At the time of last rating on April 19, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Proximity to cotton growing area of Gujarat

The manufacturing facilities of HCI are located in Gujarat.
Gujarat produces around 30% of total national production of
cotton; hence, HCI's presence in the cotton producing region
results in benefit derived from a lower logistic expenditure
(both on transportation and storage), easy availability and
procurement of raw materials at effective prices and consistent
demand for finished goods resulting in a sustainable and clear
revenue visibility.

Key Rating Weaknesses

Decline in total operating income with thin profitability

Total operating income of HCI declined by 40.99% to INR23.44
crore in FY15 (refers to the period April 1 to March 31) as
against INR39.72 crore in FY14. During FY15, the firm generated
almost 70% revenue from the cotton bales (FY14:66%). Remaining
sales is from cotton seed, cotton cake and cotton oil. The PBILDT
margin improved in FY15 by 209 bps as the firm had lower cost
inventory which it managed to sell at a better price. However,
the PAT margin range bound at0.19% in FY15 due to higher interest
cost. Gross cash accruals marginally declined to INR0.17crore
during FY15. As per the provisional results for 11MFY16 (April,
2015 to February, 2016), HCI has registered TOI of INR40 crore.

Leveraged capital structure and weak debt coverage indicators The
capital structure of the firm improved marginally during
FY15marked by overall gearing ratio of 1.72 times as on March 31,
2015 as against 1.81 times on March 31, 2014.Debt coverage
indicators of the firm continued to remain weak in FY15 as
reflected by its interest coverage ratio of 1.05 times in FY15
(1.22 times in FY14) and total debt to Gross Cash Accrual (GCA)
ratio of 49.70 times in March 31, 2015 as against 42.52 times in
March 31, 2014.

Modest liquidity with elongated working capital cycle

The current ratio of the firm remained modestat1.49 times in FY15
as against 1.44 times in FY14. However, quick ratio remained
below unity at 0.20 times during FY15 as against 0.24 times in
FY14 reflecting significant investment in inventory which exposes
the firm to volatility in the cotton prices. The average working
capital limits utilization during the past twelve months ended on
February, 2016 remained at around 80%.Working capital cycle
remained elongated to 185 days in FY15 as against 105 days in
FY14 mainly because due to consistent decline in the price of
cotton, the firm was unable to sell at desired prices resulting
in increased inventory level. In value terms, the inventory level
has increased to INR10.48 crore as on March 31, 2015 as against
INR9.90 crore as on March 31, 2014.

Hanuman Cotton Industries (HCI) was constituted in March 2006 as
a partnership firm by Vekaria family based out of Amreli
(Gujarat) by eight partners with unequal profit and loss sharing
agreement among them. HCI is primarily engaged in cotton ginning
& pressing activities with an installed capacity of 10,886 Metric
Tonnes Per Annum (MTPA) for cotton bales, 18,380 MTPA for cotton
seeds and oil-seed crushing facility with a capacity of 1381 MTPA
as on March 31, 2015 at its manufacturing facility located at
Savarkundla in Amreli district (Gujarat).


HANUMANT SUGARS: ICRA Assigns B+ Rating to INR19.74cr Loan
----------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B+ on the
INR20.00-crore fund-based limits and proposed limits of Hanumant
Sugars Private Limited. The rating has been assigned a 'Stable'
outlook.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund-based Limits       19.74      [ICRA]B+ (Stable) assigned
  Unallocated
  (Proposed Limits)        0.26      [ICRA]B+ (Stable) assigned

Rationale

The assigned rating is constrained by the modest operating
profile of the company characterised by relatively small crushing
capacity, which is accompanied by substantial debt repayments and
lack of forward integration which makes the company's performance
more vulnerable to vagaries of the sugar cycle. Further, the
rating also factors in the high project gearing and relatively
limited track record of operations of the company as the plant
commissioned its operations on December 15, 2016. The rating also
factors in the vulnerability of the company's sugar business to
agro-climatic risks affecting availability of sugarcane, inherent
cyclicality in the sugar business and government/regulatory
policies governing cane pricing, sugar release, pricing and off-
take of by-products.

The rating, however, draws comfort from the extensive presence of
HSPL's promoters in the sugar industry in Madhya Pradesh and the
linkage between sugar price and cane cost by virtue of being
located in an FRP state.

Going forward, the company's ability to achieve the desired
operating parameters thereby achieving the ramp up in scale of
operations in a profitable manner, while maintaining an optimal
working capital intensity, would be a key rating sensitivity.

Key Rating Drivers

Credit Strengths

* Long track record of the promoters and established position
   of the group companies in sugar industry

* Favorable location within Madhya Pradesh, suitable climatic
   conditions and presence of Narmada river imparting good
   irrigation facilities for sugarcane

* As state does not have a state administered mechanism (SAP)
   for determination of cane price, there is a partial linkage
   between sugar and cane prices that extends protection in
   case of downturns

Credit Weaknesses

* Cyclicality associated with sugar business; this risk gets
   amplified by lack of forward integration

* Vulnerability to agro-climatic risks in sugar business

* High project gearing with limited operations of the plant with
   operations having commenced from Dec 2016

* Significant debt repayments of the company with low cash
   Accruals

Description of key rating drivers:

Hanumant Sugars Private Limited is a combined venture by the
Goyal family and the Maheshwari family. The company purchases,
produces, imports, refines, exports, sells and deals in sugar and
other related products such a gur, syrups, molasses etc. It has
also set up a 2.5 MW bagasse-based captive power plant which is
expected to meet all the power requirement of the unit when it is
operational.

Till February 14, 2017 the company has crushed ~44724 MT of cane
and produced ~4124 MT of sugar in the same period. This is mainly
because the plant is in its nascent stage of operations and is
expected to get efficient over time by scaling up the operations.
Moreover, as the state does not have the state administered
mechanism (SAP) for determining the cane price, there is a
partial linkage between sugar and cane prices that extends
protection in case of a downturn. In addition, the partially
integrated nature of operations makes the company comparatively
more vulnerable to sugar cyclicality. Further, the business is
dependent on the agri sector performance, which is further
impacted by a combination of factors like climatic conditions,
Government policies, the prevailing demand-supply scenario etc.

At its designed capacity the plant will require a raw material
(sugarcane) intake of 180000 MT annually. The operational area of
the project covers 157 villages, accumulating a sugar-growing
area of 4051.10 hectares for the sugarcane crop. The company's
profitability is susceptible to the cyclicality inherent in the
business, agro-climactic risks, forex risks and Government
policies relating to cane pricing and export/import of sugars.

Hanumant Sugars Pvt. Ltd. (HSPL) is a group company of the
Maheshwari Group, which has diverse operations that include
sugar, rice milling and trading of agricultural commodities etc.
The sugar mill is located in Village Dhanora (Betul) M.P with an
installed capacity of 1500 TCD. The commissioning of the sugar
unit started on December 15, 2016 after successful trial runs.
Further the company has a 2.50-MW co-generation plant.

The total cost of the project is estimated INR~22.33 crores, out
of which it got a sanction of INR14.74 crore from the bank and
the rest of the funding was met through capital infusion and
unsecured loans from friends and family members.


KOHINOOR INDIA: CARE Lowers Rating on INR10cr LT Loan to 'B'
------------------------------------------------------------
CARE has been seeking information from Kohinoor India Private
Limited (KIPL), to monitor the ratings vide e-mail
communications/letters dated dated December 1, 2016, December 17,
2016, December 26, 2016, January 17, 2017, February 2, 2017,
March 1, 2017, March 2, 2017, March 3, March 7, 2017, March 9,
2017 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on
Kohinoor India Private Limited's bank facilities will now be
denoted as CARE B/CARE A4; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank          10        CARE B; Issuer not
   Facilities                        cooperating; Revised from
                                     CARE B+ on the basis of
                                     best available information

   Short-term Bank          5        CARE A4; Issuer not
   Facilities                        cooperating; 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 ratings.

The ratings have been revised on account of the decline in scale
of operations, deterioration in the capital structure and
elongating operating cycle. Furthermore, there have been
instances of devolvement in the letter of credit in the past
which are settled within ~7 days' time. The ratings further
remain constrained by the low profitability margins, weak debt
coverage indicators, working capital intensive nature of
operations and susceptibility of margins to raw materials prices
and foreign exchange fluctuations. The ratings, however, draw
strength from the long track record of operations and established
brand name & distribution network.

Detailed description of the key rating drivers

The ratings have been revised on account of the declining scale
of operations, deterioration in the capital structure and
elongating operating cycle. Furthermore, there have been
instances of devolvement in the letter of credit in the past
which are settled within ~7 days' time.

Key Rating Weaknesses

Fluctuating operating income and low profitability margins: The
total operating income declined by ~3% in FY16 (refers to the
period April 01 to March 31). Though the PBILDT margins improved
from 3.90% in FY15 to 4.56% in FY16, the PAT margins declined
from 0.35% in FY15 to 0.31% in FY16.

Weak solvency position: The capital structure remained weak
marked by long term debt to equity ratio and the overall gearing
ratio deteriorated from 0.45x and 1.33x respectively, as on
March 31, 2015 to 0.67x and 1.52x respectively, as on March 31,
2016. he total debt to GCA remained weak at 24.82x as on March
31, 2016, while the interest coverage ratio remained at 1.39x in
FY16 as compared to 26.17x as on March 31, 2015 and 1.35x in
FY15, respectively.

Working capital intensive nature of operations: The operating
cycle elongated from ~39 days as on March 31, 2015 to ~101 days
as on March 31, 2016. The sanctioned working capital limits
remained fully utilised for the last twelve month period ended
February-2017. Furthermore, there have been instances of LC
devolvement in the past which are settled within ~7 days' time.

Susceptibility to foreign exchange fluctuations and raw material
price volatility: Competitive nature of the industry limits the
ability of the company to pass on raw material price fluctuations
to the customers. The profitability margins are therefore
susceptible to volatility in raw material prices.

The company also engages in export of its products (constituted
~15% of the net sales in FY15) and import of raw materials (~34%
of the total raw material purchases in FY15). Though a part of
the exposure in hedged, the profitability margins remain exposed
to a foreign exchange fluctuation risk for the unhedged portion
of the exposure.

Key Rating Strengths

Long track record of operations: KIPL has been engaged in the
rubber industry since its incorporation in 1989. Mr. Surinder Pal
Jain, the current managing director of the company, holds an
industry experience of nearly four and a half decades. The other
director of the company, Mr. Nippun Jain also holds an industry
experience of nearly one and a half decades.

Established brand name and distribution network: KIPL has been
engaged in the manufacturing and trading of rubber products for
over two and a half decades. The company is a part of the
'Kohinoor' group, operating in the industry for more than four
decades. This has led to well established relationships with the
customers as well as the suppliers. Sales are made under the
KIPL's own brand names 'Kohinoor' and 'Dhamaka' in the domestic
as well as in the international market through a well-established
network of dealers.

Incorporated in 1989, Kohinoor India Private Limited (KIPL) is
engaged in the manufacturing and trading of rubber products like
bicycle tyres, auto tubes, rubber sheets and trading of natural
rubber and rubber chemicals. Income from trading constituted ~37%
of the net sales in FY15. The company also engages in export of
its products. Export income constituted ~15% of the net sales in
FY15. Group concerns of the company include Eastman Reclamations
(rated 'CARE B+/CARE A4; ISSUER NOT COOPERATING') and Kohinoor
Reclamations (rated 'CARE B+/CARE A4; ISSUER NOT COOPERATING').

KIPL registered a total operating income of INR98.18 crore during
FY16 (refers to the period April 01 to March 31) with a PAT of
INR0.31 crore as against a total operating income of INR101.27
crore with PAT of INR0.35 crore in FY15.



KOHINOOR RECLAMATIONS: CARE Issues B+ Not Cooperating Rating
------------------------------------------------------------
CARE has been seeking information from Kohinoor Reclamations
(KR), to monitor the ratings vide e-mail
communications/ letters dated December 1, 2016, December 17,
2016, December 26, 2016, January 17, 2017, February 2, 2017,
March 1, 2017, March 2, 2017, March 7, 2017, March 9, 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 Kohinoor Reclamations' bank facilities will now
be denoted as CARE B+/CARE A4; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank         7.76       CARE B+; Issuer not
   Facilities                        Cooperating

   Short term Bank        3.54       CARE A4; Issuer not
   Facilities                        Cooperating

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

Detailed description of the key rating drivers

At the time of last rating on March 11, 2016, the following were
the rating strengths and weaknesses.

Key Rating Weaknesses

Weak financial risk profile: Though the operating income of the
firm grew at a CAGR (compounded annual growth rate) of around 30%
in the FY13-15 (refers to the period April 1 to March 31) period,
the scale of operations remained small with the total operating
income of INR17.19 crore in FY15 (refers to the period April 1 to
March 31). The profitability margins however, remained moderate
with PBILDT and PAT margins of 10.99% and 2.79% respectively, in
FY15. The capital structure remained weak marked by a long-term
debt to equity and overall gearing ratio of 0.88x and 2.19x
respectively as on March 31, 2015. The debt coverage indicators
also remained weak with the total debt to GCA of 41.21x as on
March 31, 2015 and the interest coverage ratio at 1.34x in FY15.

Working capital intensive nature of operations: The operating
cycle of the firm remained elongated at ~104 days as on March 31,
2015. The sanctioned working capital limits remained fully
utilized for the last twelve month period ended February 2017.

Susceptibility of profitability margins to fluctuations in
foreign exchange rates: Nearly 60% of the raw material purchased
in FY15 was imported. The firm hedges around 50% of its exposure
each year. The profitability margins, however, remain exposed to
foreign exchange fluctuation risk for the unhedged portion of the
exposure.

Raw material price volatility and competitive nature of the
industry: Key raw material for the firm remains rubber,
prices of which have remained volatile in the past. The
competitive nature of the industry limits the ability of passing
on the increased costs to the customers, therefore exposing the
profitability margins to volatility in raw material prices.
Constitution of the entity as a partnership concern: KR's
constitution as a partnership firm leads to limited financial
flexibility. It is associated with inherent risks of capital
withdrawal at the time of personal contingency and the firm being
dissolved upon the death/retirement/insolvency of the partners.

Key Rating Strengths

Experienced and resourceful partners: the partners of the firm
include Mr. Surinder Pal Jain and Mrs Rajni Jain, holding an
industry experience of over forty five years and five years
respectively. Furthermore, the promoters are resourceful having
infused unsecured loans of INR1.93 crore in FY15 (refers to the
period April 1 to March 31).

Incorporated in 2011, KR is engaged in the manufacturing of
reclaimed rubber and rubber compounds of various types and sizes
since January-2013. The firm operates from its manufacturing
facility in Kathua, Jammu and Kashmir (J&K) at an installed
capacity of manufacturing 24,000 tonnes per annum. The reclaimed
rubber finds application in truck-bus auto tyres, automobiles,
rubber goods, road construction and sports surfaces. Other group
entities include Eastman Reclamations (rated, 'CARE B+/CARE A4';
ISSUER NOT COOPERATING) and Kohinoor India Private Limited
(rated, 'CARE B/CARE A4; ISSUER NOT COOPERATING) both engaged in
the rubber industry.

KR registered a total operating income of INR17.19 crore during
FY15 (refers to the period of April 1 to March 31) with PAT
of INR0.48 crore as against total operating income of INR3.07
crore with a net loss of INR2.46 crore in FY14.


M R AGRO: ICRA Assigns B+/A4 Rating to INR10cr Fund Based Loan
--------------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B+ and the short-
term rating of [ICRA]A4 on the INR10.00-crore unallocated limits
of M R Agro Industries. The long-term rating is assigned a
'Stable' outlook.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based
  Unallocated Limits      10.00     [ICRA]B+ (Stable) and
                                    [ICRA]A4; Assigned

Rationale

The assigned ratings derive strength from the vast experience of
the partners and the established track record of the firm in the
processing and exports of agro products. The ratings also draw
comfort from MRAI's favourable location in Gujarat, which enables
easy availability of various agro-products such as sesame seeds,
as well as the stable demand prospects in the domestic as well as
the international markets.

The assigned ratings, however, are constrained by MRAI's weak
financial profile evident from its thin profitability, stretched
capital structure and weak debt coverage indicators. Furthermore,
the firm reported a decline in revenue by ~14.7% in FY2016 caused
by a decline in sales realisations, owing to reduced prices of
sesame seeds. The ratings also factors in the highly fragmented
and competitive nature of the industry, resulting from low entry
barriers, which limits the pricing power of the firm and puts
pressure on the operating margins. The ratings are further
constrained by the firm's susceptibility to fluctuations in raw
material price and foreign exchange, considering its high
dependence on exports and absence of any formal hedging
mechanism. ICRA also notes that since MRAI is a partnership firm,
any substantial withdrawal would adversely affect its net worth
and thereby its capital structure.

Going forward, the firm's ability to increase its scale of
operation, maintain adequate profitability and improve its
capital structure, given the seasonality in the business,
volatility in prices of sesame seeds, intense competition and
high working capital requirement will remain crucial for the
credit metrics.

Key rating drivers

Credit strengths

* Extensive experience of the partners in processing and
   exporting agro products

* Location in Gujarat enables easy access to various agro
   products such as sesame seeds

* Stable demand prospects in domestic as well as international
   Markets

Credit weaknesses

* Financial profile characterised by low profitability,
   stretched capital structure and weak debt coverage metrics

* Decline in revenue in FY2016 because of fluctuations in the
   prices of sesame seeds

* Highly fragmented and competitive nature of the industry
   resulting from low entry barriers limits the pricing power
   of the firm and puts pressure on the margins

* Susceptibility of the profitability to fluctuations in raw
   material prices

* Risk associated with it being a partnership firm; any
   substantial withdrawal would adversely affect its capital
   structure

Description of key rating drivers:

The firm reported a decline in revenue in FY2016 mainly due to
the fall in realisations of sesame seeds despite the increase in
sales volumes. The profitability of the firm generally remains
low because of the low value-adding processing business of sesame
seeds and the highly competitive industry structure. The capital
structure of the firm remained stretched, with gearing of 3.58
times as on March 31, 2016, despite showing an improvement over
the previous year. In line with low profitability and high
gearing levels, the coverage indicators remained weak. The
company procures sesames seeds and cumin seeds from farmers,
market yards and other processing companies through traders and
commission agents. Most of the sales of MRAI are made in the
export market mainly in Vietnam, China, Gulf countries and
Eurpean countries, which exposes the firm to foreign exchange
fluctuation risk.
The firm's ability to compete with numerous organised and
unorganised players in the industry and maintain adequate
profitability despite volatility in raw material prices remains
the key rating sensitivity. However, the experience of the
partners in the agro industry and the established relationship
with the customers is expected to support the scale of
operations.

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

Established in 1999, M R Agro Industries (MRAI) is a partnership
firm owned and managed by Mr. Mitesh Patel and Mr. Ramji Patel
along with two other partners. The firm is involved in trading,
processing and exporting of agro products primarily, sesame seeds
and cumin seeds. The firm is also engaged in trading of natural
sesame seeds, cumin seeds, fennel seeds, peanuts etc. The
processing unit of the firm is located in Unjha, Gujarat.


MURLI INDUSTRIES: Lenders Begin Proceedings Under Bankruptcy Code
-----------------------------------------------------------------
The Economic Times reports that a group of lenders led by
Edelweiss Asset Reconstruction Co have dragged Nagpur based Murli
Industries to the national company law tribunal (NCLT) in what is
so far the largest case filed under the new insolvency code by
lenders.

Murli Industries owes lenders INR1,800 crore by a group of
lenders led by Edelweiss Asset Reconstruction Co which owns 60%
of the debt. Other lenders are led by state-owned Bank of Baroda
with 25% of the debt, the report relates.

Under the Insolvency and Bankruptcy Code, 2016 which came into
effect in December, lenders have to approach NCLT with a concrete
revival plan which if approved has to be set in motion within 180
days, according to the report.

"This company has been defunct for many months now as a result of
which many jobs have been lost. Resolution professionals from
Deloitte are helping us revive the company which we hope will
help us bring back 1,000 jobs," the report quotes a person
familiar with the case as saying.

ET notes that the new code provides for professional management
to take over the company to help revive it, which in turn will
create value for the lenders who control the company. In case of
Murli Industries professionals from Deloitte could take over
management, the report states.

"We have a plan for revival to create the best value for the
company which was created after a lot of work. This is so far the
biggest case by the lenders," said the person, ET relays.

Last year the Nagpur bench of debt recovery tribunal (DRT) had
barred Murli Industries from selling or mortgaging and prevented
the directors of the company from leaving the country without
prior permission, ET recalls.

ET discloses that the company's directors are all from the Nagpur
based Maloo family. The bank's stock is currently suspended from
trading.

Last year, the Board for Industrial and Financial Reconstruction
(BIFR) had ordered a special investigative audit of the company,
after the directors had not co-operated, ET notes. Lenders have
alleged that the company had opened bank accounts in violation of
Reserve Bank of India (RBI) rules and siphoned off funds, adds
ET.

Murli Industries Limited (NSE:MURLIIND) is an India-based
company, which operates through segments, including Solvent
Extraction & Refinery, Paper & Paper Board, Power and Cement. The
Solvent Extraction & Refinery segment includes solvent extraction
and refinery facilities in MIDC unit and Umred unit. The Paper &
Paper Board segment includes approximately five paper/pulp units.
The Power segment includes captive power plant paper and cement.
The Cement segment includes cement unit.


PMV MALTINGS: ICRA Reaffirms B+ Rating on INR51cr Term Loan
-----------------------------------------------------------
ICRA has re-affirmed its long-term rating of [ICRA] B+ on the
INR51.00-crore term loan facilities and INR35.00 crore working
capital facilities of PMV Maltings Private Limited. ICRA has also
reaffirmed its long-term rating of [ICRA] B+ on the INR14.00-
crore unallocated limits of PMV. The outlook on the long-term
rating is 'Stable'.

                         Amount
  Facilities           (INR crore)    Ratings
  ----------           -----------    -------
  Term loan facilities     51.00      [ICRA]B+ (Stable)/
                                      re-affirmed

  Working capital          35.00      [ICRA]B+ (Stable)/
  Facilities                          re-affirmed

  Unallocated limits       14.00      [ICRA]B+ (Stable)/
                                      re-affirmed

Rationale

The rating reaffirmation takes into account the continued support
from the promoters in the repayments of the long term liabilities
in a timely manner. The rating also factors in the company's
moderate coverage indicators, leveraged capital structure and the
established presence of the Malt group in the malt production
business. ICRA also takes note of the limited competition in the
industry due to the major capacities being vested with only two
producers (The Malt group and Barmalt Maltings (India) Private
Limited) and the favourable medium term demand growth prospects
for the beer industry in the domestic market.

The rating, however, continues to be constrained by the company's
exposure to agro-climatic risk as the raw material (barley) is an
agricultural produce. ICRA also takes note of the sector
concentration risk faced by the company with 100% exposure to the
beer industry; though this risk is largely mitigated by the over
four decade's old relationship of the group with its customers.
Going forward, the ability of the company to ramp up its scale of
operations in a profitable manner and manage its liquidity
position will be the key rating sensitivities.

Key rating drivers

Credit Strengths

* The promoters have a wide experience of more than 30 years
   in the industry

* Duopolistic nature of the industry with two major companies
   operating provides a comfortable position to the same

* Easy availability of raw material procurement due to group
   Synergy

* Long term and wide customer base with big industry players
   such as GlaxoSmithKline and Cadbury's establishes the company
   as a major supplier in the industry

Credit Weakness

* The growth trajectory of the company remained stagnant over
   the years with minimal growth in the top line.

* Exposure to raw material price volatility as well as agro
   climatic risk as the raw material (barley) is an agricultural
   produce.

* Planned capital expenditure has resulted into heavy repayments
   over the medium term which has rooted for promoter's support
   for the same as the company is not being able to generate
   enough accruals to meet these obligations

* The financial profile continues to remain weak with heavy
   reliance on short term borrowings has resulted in further
   deterioration of the capital structure ; high interest cost
   has further deteriorated the coverage indicators

Description of key rating drivers highlighted above:

PMV Maltings Private Limited continues to enjoy a comfortable
position in the malt industry by virtue of the extensive
experience of its promoters. The operating margin of the company
continues to remain healthy, which along with the easy
availability of the raw material requirements has resulted in an
established customer base of the company which has further helped
them to get regular orders.

The company however remains exposed to agro-climatic risk as the
raw material (barley) is an agricultural produce. The company
also faces sector concentration risk with 100% exposure to the
beer industry; though this risk is largely mitigated by the over
four decade's old relationship of the group with its customers.
Analytical approach: While assigning the rating ICRA has taken
standalone financial and operating performance of PMV Maltings
Private Limited

Incorporated in 2008, PMV was a dormant company till the demerger
of The Malt Company India Private Limited (MCIPL) with effect
from April 2013. Under the demerger scheme, MCIPL transferred two
of its units i.e. Pataudi (Haryana) and Kashipur (Uttarakhand)
units to PMV, which were established in 2002 and 2010
respectively, while retaining the Khandsa (Haryana) based unit.
PMV manufactures barley malt with an installed capacity of 30,000
MTPA and 150,000 MTPA at its Pataudi and Kashipur units.


ROHIT FABTEX: ICRA Reaffirms B+ Rating on INR9.70cr Loan
--------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B+ on the
INR9.70-crore fund-based working capital facility of Rohit Fabtex
(RF).The outlook on the long-term rating is Stable.

                      Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Working capital
  Facilities             9.70     [ICRA] B+ (Stable); re-affirmed

Rationale

ICRA's rating continues to be constrained by the firm's moderate
scale of operations. The rating also takes into account the
vulnerability of the firm's profitability to fluctuations in raw
material prices and the intensely competitive nature of the
industry which exerts pressure on the firm's operating margins.
The rating is further constrained by risks associated with the
constitution of the firm as a proprietorship form of business,
which exposes it to risks of capital withdrawal, dissolution etc.
However, the rating favourably takes into account the extensive
experience and the long track record of the promoters in the
textile industry and the favourable location of the plant at
Balotra, Rajasthan which is a hub for processing of poplin
fabric.
The firm's ability to increase its scale of operations, improve
its profitability and efficiently manage its working capital
cycle will be the key rating sensitivities.

Key rating drivers

Credit strengths

* Long established track record of the promoter with three
   decades of experience in textile industry

* Favorable location of the facility in Balotra (Rajasthan),
   which is hub for processing of Poplin thereby facilitating
   easy access to raw material and labor

Credit weaknesses

* High competitive intensity in the textile industry marked by
   numerous unorganized and organized players resulting in low
   profitability and pricing pressures; however the risk is
   mitigated to some extent due to its established brand image in
   the market

* Moderate financial risk profile characterised by weak net
   profitability and high gearing

* Exposed to risks arising from fluctuation in prices of fabric;
   non job work nature of operations, whereby inventory risk is
   borne by the firm

Description of key rating drivers

Rohit Fabtex is involved in the processing of fabrics primarily
poplin. The firm primarily sells its products to companies with
which the firm enjoys a long standing relationship with its
clients and has a well established customer base which helps the
firm in getting continuous orders.

The firm's operating income and margins are, however, constrained
by the business risks associated with the textile industry,
including the high competitive intensity and the fragmentation
therein; and the vulnerability of profitability to the volatility
in the raw material prices. The firm, since operating in an
industry characterized by thin margins coupled with low net worth
has resulted in moderate financial profile of the firm.

Analytical approach: While assigning the rating ICRA has taken
standalone financial and operational performance of Rohit Fabtex.

Rohit Fabtex was established as a proprietorship firm in 2010 by
Mr. Kishorilal Singhvi to carry out processing of fabric. The
unit of the firm at Balotra , has an installed capacity of
~40,000 meters per day, to produce poplin fabric.


SAHASRALINGESHWARA POWER: ICRA Withdraws B Rating on INR64cr Loan
-----------------------------------------------------------------
ICRA has withdrawn the long-term rating of [ICRA]B assigned to
the INR64.00-crore term loan of Sahasralingeshwara Power Private
Limited as there is no amount outstanding against the rated
instrument.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund-based limits      64.00       [ICRA]B withdrawn

Sahasralingeshwara Power Private Limited is a part of the Soham
group of companies which operates hydro power projects with a
cumulative capacity of 53.5 MW in Karnataka. SPPL was
incorporated to undertake the construction of a mini hydel
project - Nekkiladi Mini Hydel Scheme (NMHS) - with a capacity of
12.5 MW-near Nekkiladi Village in Karnataka. The total project
cost was estimated to be INR120.78 crore (including cost overrun
of ~Rs. 30 crore) to be funded by a term loan of INR64 crore and
the remaining with the promoter's funds. The project experienced
severe cost and time overruns owing to technical issues.
Currently, the construction work in the project has been stopped
and the term loan drawn has been repaid.


SANGRUR AUTOS: CARE Assigns B+ Rating to INR5.0cr Long Term Loan
----------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Sangrur Autos Malerkotla (SAM), as:

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

   Short-term Bank
   Facilities            0.50        CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SAM is constrained
by its short track record of operations, weak financial risk
profile and constitution of the entity being a proprietorship
concern. The rating is further constrained by the intense
competition from other dealers, regional concentration and
fortunes linked to the performance of Bajaj Auto Limited (BAL).
The rating, however, derives strength from the experienced
promoter, sole distributor of BAL in the location and association
with a reputed original equipment manufacturer (OEM). Going
forward, the ability of the firm to scale-up its operations while
improving its profitability margins and the overall solvency
position along with managing the working capital requirements
efficiently will remain the key rating sensitivities.
Furthermore, the ability of the firm to maintain its relationship
with BAL, will also remain a key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations, low profitability margins, weak
overall solvency position and and high reliance on the working
capital borrowings: The scale of operations of the firm stood
small marked by Total Operating Income (TOI) of INR25.30 crore in
FY16 (first full year of commercial operations). The
profitability margins of the firm remained at a low level with
PBILDT and PAT margins of 2.19% and 0.13%, respectively in FY16
mainly due to the trading nature of operations coupled with
limited pricing power as the same is fixed by BAL. The firm had a
weak capital structure with long-term debt to equity ratio of
0.20x and the overall gearing ratio of 3.01x, as on March 31,
2016 on account of higher utilization of cash credit limits. The
debt coverage indicators also remained at a weak level with the
total debt to GCA ratio of 88.83x, as on March 31, 2016 owing to
high debt levels and lower cash accruals generated. Furthermore,
the interest coverage ratio of the firm also remained at a weak
level of 1.13x in FY16.

The average utilisation of the cash credit limit stood at about
90% for the 12 months period ended February-2017.

Short track record of operations: The operations of the firm
started in July-2014.

Constitution of the entity as a proprietorship concern: SAM'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 the firm being dissolved
upon the death/retirement/insolvency of the proprietor.

Intense competition from other dealers with regional
concentration: The sales and distribution of automobiles,
especially two wheelers market segment is marked by intense
competition attributable to presence of several dealers in
the nearby areas.

Fortune linked to the performance of BAL: The fortunes of SAM are
closely linked to Bajaj Auto Limited, being the only supplier of
the firm.

Key Rating Strengths

Experienced promoter: SAM, promoted by Mr. Hemant Goyal, is an
authorized dealer of Bajaj Auto Limited. Mr. Hemant Goyal has an
experience of more than five years in the industry through his
association with SAM and other group concerns engaged in the
similar line of business.

No term debt obligation as on March 31, 2016: The firm did not
have any term debt outstanding as on March 31, 2016.

Sole distributor in the location: The firm is a sole authorized
dealer of BAL in Malerkotla, Punjab. Being a sole authorized
dealer gives SAM higher client base and larger demand catering
opportunity.

Association with a reputed OEM- BAL: BAL remains the second-
largest player in the motorcycle industry in India by
market share. SAM benefits from the market presence and growth of
BAL.

Sangrur Autos Malerkotla (SAM) was established as a
proprietorship firm in June-2014 by Mr. Hemant Goyal. The firm is
an authorized dealer of Bajaj Auto Limited (BAL) and is engaged
in the sale of two-wheeler vehicles, servicing of vehicles and
sale of spare parts. The firm owns & operates a single showroom
at Malerkotla (started operations from July-2014), providing 3S
(sales, service and spare parts) facilities. Besides SAM, the
proprietor is also involved in other group concerns namely Pushpa
Goyal Enterprises Private Limited (PGEPL; rated 'CARE BB-;
Stable'), engaged in the dealership of Mahindra & Mahindra Ltd
(MML; CARE AAA/A1+) since 2012, Hemant Goyal Motors Private
Limited (HGMPL) engaged in the dealership of Tata Motors Limited
(TML; CARE AA+) since 2005 and Sangrur Autos (CARE SME 3) engaged
in the dealership of Bajaj Auto Ltd. (BAL), since 2014.

In FY16, the firm reported a total operating income of INR25.43
crore with PAT of INR0.03 crore as against the total operating
income of INR21.37 crore with PAT of INR0.03 crore in FY15. In
10MFY17 (Provisional), the firm has achieved a total operating
income of INR21 crore.


SANT AUTOWHEELS: CARE Issues B+ Issuer Not Cooperating Rating
-------------------------------------------------------------
CARE has been seeking information from Sant Autowheels Private
Limited (SWPL) to monitor the rating(s) vide e-mail
communications/letters dated March 6, 2017 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on Sant Autowheels Private
Limited bank facilities will now be denoted as CARE B+; ISSUER
NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        5.80        CARE B+; Issuer not
   Facilities                        cooperating; Based on best
                                     available information

The rating takes into account small scale of operations, low
profitability margins and weak solvency position. The rating is
further constrained by working capital intensive nature of
operations, intense competition, regional concentration and
linkage to fortune of HMIL. The rating, however, derives strength
from experienced promoters and association with established brand
name.

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 September 30, 2015 the following
were the rating strengths and weaknesses.

Key Rating Strengths

Experienced promoters: Mr. Ajay Kakkar and Mr. Ganesh Kakkar are
the active directors and look after overall operations of the
company. They have an experience of around 10 years in the
automobile dealership business through their association with
SWPL and Sant Autozone Private Limited (incorporated in 2013).
Mr. Ajay Kakkar has business experience of 22 years through his
association with Sant & Brothers petrol stations.

Association with an established brand name: SWPL is an authorized
dealer of Hyundai Motors India Limited (HMIL) which is one of the
largest automobile manufacturers in passenger cars. In domestic
passenger car market, HMIL has an established market position
underpinned by the strong position of its Grand i10, i10, and i20
models in the compact car segment, and Verna in the mid-size
segment.

Key rating Weaknesses

Weak financial risk profile: SWPL has weak financial risk profile
marked by small scale of operations, low profitability margins,
weak solvency position and weak liquidity position. The scale of
operations of the company remained small marked by total
operating income of INR54.95 crore in FY16 (refers to the period
April 1 to March 31) and tangible networth INR1.74 crore in FY16.
The profitability margins remained low marked by PBILDT margin of
3.37% in FY16. Furthermore, the interest burden on working
capital borrowing also restricts the net profitability level
(0.60% in FY16 of the company.

Debt service coverage indicators remained weak marked by total
debt/GCA of 13.89x as on March 31, 2016 and interest coverage
ratio of 1.68x as on March 31, 2016.

Working capital intensive nature of operations: SWPL had
elongated operating cycle of around 71 days for FY16.

Intense competition, regional concentration and linkage to the
fortunes of HMIL: The fortunes of SWPL are closely linked to
those of HMIL. The sales and distribution of automobile vehicles,
especially the passenger cars are marked by intense competition
attributable to the presence of several dealers creating pressure
to pass on the discounts to the customers. The competition is
further worsened by the major automobile manufacturers extending
similar discounts and promotional schemes to lure customers for
purchases. In light of the same, the margins are likely to remain
constrained for the dealers and distributors.

Sant Autowheels Private Limited (SWPL) was incorporated in 2005
and promoted by Mr. Ajay Kakkar along with his brother Mr. Ganesh
Kakkar and mother Ms Chanchal Kakkar. SWPL is having authorized
dealership of entire range of passenger vehicles of Hyundai
Motors India Limited (HMIL). SWPL operates a 3S facility (Sales
Spares, Service) and has its showroom located on NH-20, Kangra,
Himachal Pradesh, catering to the area of in and around the
region like Kangra, Palampur and Noorpur. Some of the models sold
by SWPL are Accent, Elantra, Eon, Santro, Getz, i10, Grand i10,
i20, Verna etc.

SWPL has two group concerns namely 'Sant Autozone Private
Limited' and 'Sant & Brothers petrol stations'.


SAVITRA TILES: CARE Issues B+ Issuer Not Cooperating Rating
-----------------------------------------------------------
CARE has been seeking information from Savitra Tiles Private
Limited (STPL), to monitor the rating(s) vide e-mail
communications/ letters dated March 27, 2017, March 24, 2017,
March 20, 2017 and numerous phone calls. However, despite CARE's
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on Savitra Tiles Private Limited's bank
facilities will now be denoted as CARE B+/CARE A4; ISSUER NOT
COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         8.03       CARE B+; Issuer Not
   Facilities                        Cooperating

   Short-term Bank        1.55       CARE A4; Issuer Not
   Facilities                        Cooperating

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

Detailed description of the key rating drivers:

At the time of last rating in March 7, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced promoters and benefits derived from their engagement
in trading of ceramic products

Mr Sachin Parikh, aged 48 years, has experience of more than two
decades in ceramic industry through his engagement with M/s
Arcana Impex (started in 2010) in the capacity of partner and
Parikh Ceramics Private Limited (started in 2003) in the capacity
of director. Mr. Dipak Kathrani, aged 47 years, carries practical
experience of more than two decades in this industry. Mr. Bharat
Sarasvadia, aged 34 years and B.E. by qualification, has
experience of 13 years in tiles industry. STPL derives benefits
from promoters experience in the ceramic industry and their
association with trading concerns which mitigates the saleability
risk to an extent.

Location advantage

STPL is located in industrial area of Wankaner which is very near
to Morbi. Morbi is considered as ceramic hub of India. Hence,
STPL will have benefit of easy availability of manpower, raw
material, power and fuel.

Key Rating Weaknesses

Moderate post project implementation risk

The total cost of the proposed project incurred was INR13.76
crore as on December 31, 2015, financed by promoters'
contribution of INR8.33 crore and bank's term loan of INR5.43
crore reflecting low project gearing of 0.65 times. The promoters
had infused INR6 crore by way of equity shares and INR1 crore as
unsecured loans till February 20, 2016. STPL would sell its
products directly to customers as well as through trading
concerns of promoters resulting in moderate saleability risk in
light of highly competitive nature of the ceramic industry.
However, establishment of brand name would be crucial for
achieving healthy profitability.

Presence in the highly competitive ceramic industry and fortune
linked with demand from real estate

STPL operates in the highly competitive and open market of
ceramic industry marked by large number of medium sized players.
The industry is characterized by low entry barrier due to
negligible government policy restrictions, no inherent

resource requirement constraints and easy access to customers and
supplier. Also, the presence of big sized players with
established marketing & distribution network results into intense
competition in the industry.

Margins would be susceptible to volatility in raw material prices
STPL has obtained supply of natural gas from GSPC Limited, which
is one of the essential raw materials, prices of which are
volatile in nature. Apart from natural gas, prices of other raw
materials i.e. clay, sand are market driven which due to higher
demand is expected to put pressure on the margins of tile
manufacturers.

Wankaner-based (Gujarat), STPL was incorporated in April 2015, by
Mr. Sachin Parikh, Mr. Dipak Kathrani and Mr. Bharat Sarasvadia.
The promoters are engaged in trading of ceramic products and to
venture into manufacturing, STPL was setup. STPL has completed a
Greenfield project of manufacturing of digital ceramic wall tiles
with capacity of 31,500 MTPA in December, 2015. The project cost
incurred is INR13.76 crore financed by term loan of INR5.43 crore
and balance by promoters' funds. Size of finished tiles is
300mm X 600mm (i.e. 12"X24") with thickness of 9.50mm.


SERVOCONTROLS AND HYDRAULICS: ICRA Rates INR6.5cr LT Loan at B+
---------------------------------------------------------------
ICRA has long term rating of [ICRA]B+ outstanding on the INR0.83
crore (revised from INR2.08 crore) term-loan facility, INR6.50
crore (revised from INR5.00 core) fund based facility and INR0.27
crore (revised from INR1.00 crore) unallocated limits of
Servocontrols and Hydraulics (I) Private Limited. ICRA also has
short term rating of [ICRA]A4 outstanding on the INR3.40 crore
(revised from 2.92 crore) non fund based limit and INR0.75 crore
interchangeable limit of the company. The outlook on the long
term rating is 'Stable'.

                         Amount
  Facilities           (INR crore)     Ratings
  ----------           -----------     -------
  Term Loans                0.83       [ICRA]B+ (Stable)/rating
                                       outstanding

  Long Term-Fund            6.50       [ICRA]B+ (Stable)/rating
  Based Limit                          outstanding


  Long Term-                0.27       [ICRA]B+ (Stable)/rating
  Unallocated                          outstanding


  Short Term-Non            3.40       [ICRA]A4/rating
  Fund Based Limit                     Outstanding

  Short Term-              (0.75)      [ICRA]A4/rating
  Interchangeable Limit                Outstanding

Rationale

The ratings take into account the significant experience of the
promoters in the engineering industry and the established
relationship with reputed customers as well as suppliers. The
company's revenues remain fairly diversified across a wide
product portfolio which finds its application across multiple
industries, and the strong order book position enhances revenue
visibility going forward. The ratings are, however, constrained
by the revenue de-growth during FY2016 owing to subdued demand in
the end user industry and the modest scale of operations limiting
company's operational and financial flexibility. The ratings are
also constrained by the company's moderate financial profile
characterised by thin accruals, moderate margins, and stretched
capital structure. The ratings also factor in increase in the
working capital intensity during FY2016 owing to significant
inventory holding and delayed bill clearance from major
customers, resulting in stretched liquidity profile. Owing to
high reliance on imports for its raw materials, the margins
continue to remain vulnerable to foreign exchange rates
fluctuations.
Going forward, the ability of the company to achieve healthy
revenue growth and improve profitability while managing foreign
exchange fluctuations will remain key rating sensitivities.

Key rating drivers

Credit Strengths

* Longstanding experience of promoters of more than 15 years in
   the engineering Industry

* Renowned client base and strong portfolio of executed orders
   enhances business prospects

* Business remains supported with products finding application
   across multiple industries

* Healthy order book position enhances revenue visibility

Credit Weakness

* Modest scale of operations restricting scale economics and
   financial flexibility

* Project specific requirements resulting in slow volumes and
   high order volatility; decline in operating income in FY2016

* Moderately high working capital intensity owing to significant
   inventory holding and delayed bill clearance from major
   customers

* Moderate margins which remain exposed to input price and
   foreign currency fluctuations

* Stretched capital structure and coverage indicators

Description of key rating drivers highlighted above:

The company manufactures custom designed products like hydraulic
valves, servo valves, manifold block systems, hydraulic servo
actuators, temposonic sensors etc. according to the requirements
of the customers. The product portfolio of the company consists
of more than 400 types of products; manifold blocks and
temposonic sensors accounts for about 40-45% of the total
revenues. The customers of the company predominantly consists of
construction equipment manufacturers; the products also finds
application across other industries like power generation, steel
mills, test rigs, railways, cement, plastic, aerospace, etc. With
weak demand from the end user industry, mainly construction
equipment industry the operating income of the company witnessed
de-growth of 10.3% from INR20.8 crore in FY2015 to INR18.7 crore
in FY2016. According to the provisional financials for 9M FY2017,
the company has registered a turnover of INR13.7 crore.

Over last two years, around 65% of the raw materials are procured
through imports, which expose margins to foreign exchange rates
fluctuations in the absence of any formal hedging mechanism.
Additionally the company's profitability continues to be
vulnerable to fluctuations in raw material prices. However, the
long experience of its promoters in the engineering industry and
established relationship with its clients as evidenced by repeat
orders offers comfort. As on December 31, 2016, SHIPL has a
healthy order-book position of about INR21.4 crore, primarily
dominated by like Bharat Earth Movers Limited (BEML) and Bharat
Electronics Limited (BEL). SHIPL's capital structure remains
moderate with gearing at 2.6 times as on March 31, 2016 and 2.4
times as on December 31, 2016. Also, the coverage indicators
remain moderate with interest cover (OPBITDA / Interest & Finance
charges) at 1.6 times during FY2016 and 2.0 times during 9M
FY2017. Significant inventory holding and delayed bill clearance
from major customers resulted in high working capital intensity
during FY2016. The working capital intensity further increased
during 9M FY2017 due to stretched receivables.

Servocontrols & Hydraulics (I) Private Limited, head quartered in
Belgaum, is involved in designing and manufacturing of hydraulic
valves, servo valves, manifold block systems, hydraulic servo
actuators, temposonic sensors etc. The company also manufactures
hydraulic power packs (comprising of joysticks) and wire
harnessing systems for construction equipment industry. The
company is promoted by Mr. Deepak Dhadoti and his brother Mr.
Dinesh Dhadute who are qualified engineers with extensive
experience in the engineering industry. The company started its
operations in 2005 with commissioning of its manufacturing
facility in Udyambag Belgaum. SHIPL has built its technical
capabilities over the years working in collaboration with reputed
companies like Hydraforce Hydraulics, UK and MTS Systems
Corporation, USA. The company presently is operating out of a
manufacturing set up built over 25000 sq ft of area in Udyambag,
Belgaum with a staff of more than 150 people. The company's
products find application across wide range of industries and
sectors like Automotive, Construction Equipment & Mining, and
Power Generation.

SHIPL recorded a net profit of INR0.03 crore on an operating
income of INR18.69 crore for the year ending March 31, 2016. As
per the provisional financials, the company recorded a profit
before tax of INR0.41 Crore on an operating income of INR13.72
Crore during 9M FY2017


SEYA PATE: CARE Issues B Issuer Not Cooperating Rating
------------------------------------------------------
CARE has been seeking information from Seya Pate Constructions
LLP (SPC) to monitor the rating(s) vide e-mail communications/
letters dated January 9, 2017, February 20, 2017 and February 24,
2017 and numerous phone calls. However, despite CARE's repeated
requests, the Seya Pate Constructions LLP 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 Seya Pate Constructions
LLP long term bank facilities will now be denoted as CARE B;
ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        7.50        CARE B; Issuer Not
   Facilities                        Co-operating; Based
                                     on best available
                                     Information

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

Detailed description of the key rating drivers

At the time of last rating in February 18, 2016 following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced Partners: SPC is promoted by Pate Group which is into
real estate business since 1983 and is one of the well known
groups in the business.

Strategic location of the project with proximity to key locations
in Pune

The project has a strategic location being situated in one of the
rapidly developing localities of Pune at Sinhagad Road which is
around 5-6 kilometers from the centre of Pune. In addition, the
project is situated in area with easy access to basic civic
amenities such as schools, hospitals, colleges, malls, situated
close by and has close proximity to Swargate, Deccan, Warje,
Khadakwasla, which provides easy access to Karvenagar, Chandani
Chowk, Dhayri, Ambegaon, Pune.

Key Rating Weaknesses

Partial receipt of approvals and clearances for the project
PFCL has partially received the necessary clearances and
approvals for the project related to land acquisition and
construction. The requisite sanction plan of the building for the
partial saleable area of the project has been approved by the
Pune Collectorate.

Cyclical nature of the real estate industry

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

Presence in a competitive environment

PFCL has partially received the necessary clearances and
approvals for the project related to land acquisition and
construction. The requisite sanction plan of the building for the
partial saleable area of the project has been approved by the
Pune Collectorate.

SPC is a limited liability partnership firm formed in January,
2015 and belongs to Pune-based Pate Developers. The project is
being sold under the brand name of 'Pate Developers'. SPC is
formed for developing a budget residential development under the
name "Seya" over a saleable area of 0.61 lakh square feet (lsf).
As on January 31, 2016, the company has received all the
clearances and approvals for 0.37 lsf of saleable area while that
of remaining 0.24 lsf is pending to be received and are expected
to be received by April, 2016. The project with total saleable
area of 0.61 lsf, consists of one building with 43 units, having
2/2.5/3 BHK with average saleable area ranging from 1,254 sq. ft.
to 1,594 sq. ft. of a unit flat.

The entire land has been acquired by entering into the joint
development agreement (JDA) with the landowners (Kiwalkar
family). As per JDA, the sale revenue from the project is to be
shared in the ratio of 55% to land owner including INR8 crore of
land acquisition cost and 45% will be the share of SPC. The
company has paid the land acquisition cost of INR8 crore for both
phases and the same will be adjusted from 55% of the revenue
share of the land owner. Also, the land owner will execute all
the clearances of TDR and bear the costs of the same as per the
agreement.


SHANKAR AGRO: CARE Issues B+ Issuer Not Cooperating Rating
----------------------------------------------------------
CARE has been seeking information from Shankar Agro Food to
monitor the rating(s) vide e-mail communications/ letters dated
March 6, 2017, and numerous phone calls. However, despite CARE's
repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on Shankar Agro Food's bank facilities
will now be denoted as CARE B+; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank          7         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(s).

Detailed description of the key rating drivers

At the time of last rating in November 30, 2015, the following
were the rating strengths and weaknesses:

Key Rating Strengths

Experienced partners: SAF is currently being managed by Mr. Kewal
Krishan, Mr. Bal Krishan, Mr. Jagdish Rai and Mr. Raghav Garg.
Mr. Kewal Krishan and Mr. Jagdish Rai have experience of three
decades in the business of processing of paddy through his
association with SAF, SRGM and LRGM. Mr. Raghav Garg has
experience of five years in the same business through their
experience with SAF.

Growing scale of operation: The firm's scale of operations has
grown at a healthy and significant growth rate of 274.89% from
INR8.99 crore in FY14 (refers to the period April 1 to March 31)
to INR33.69 crore in FY15, mainly on account of higher quantity
sold to existing customers as well as addition of new customers.
However, the scale of operations continued to remain small. The
small scale limits the firm's financial flexibility in times of
stress and deprives it from scale benefits.

Key rating Weaknesses

Declining profitability margins: The profitability margin of the
firm had been declining on a year-on-year basis in the FY13-15
period. The PBILDT margins further declined significantly from
11.15% in FY14 to 3.98% in FY15 owing to decline in prices of
basmati rice coupled with higher share of non- basmati rice in
the sales during FY15. Subsequently, the PAT margins also
declined from 1.16% in FY14 to 0.79% in FY15.

Leveraged capital structure and weak coverage indicators: The
capital structure of the firm has remained leveraged
characterized by overall gearing ratios of 2.49x as on March 31,
2015. The coverage indicators of the firm continued to remain
weak marked by interest coverage ratio of 1.97x in FY15 and
total debt to GCA of 18.55x as on March 31, 2015.

Working capital intense nature of operations: The operating cycle
of the firm had decreased by 25 days and stood high at 90 days as
on March 31, 2015 in comparison to 115 days as on March 31, 2014.
working capital requirements remains high and were met largely
through bank borrowings, which resulted in a high average
utilization of around 99% of its sanctioned working capital
limits for last 12 months period ended October 2015.

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.
There are several small scale operators which are not into end-
to-end processing of rice from paddy,

Shankar Agro Food (SAF) was initially established as a
proprietorship firm in 2005 and later, the constitution was
changed to a partnership firm in April 2009. The firm is
currently having four partners, viz, Mr. Kewal Krishan, MrBal
Krishan, Mr. Jagdish Rai and Mr. Raghav Garg having 4:4:1:1 share
in profit and loss. The firm is engaged in the processing of
paddy and also does the same on a job work basis for other rice
millers at its manufacturing facility located in Moga, Punjab,
with total installed capacity of 64,000 metric ton per annum
(MTPA) as on March 31, 2014. The main raw material is paddy,
which is procured from dealers and agents from the states of
Haryana and Punjab. The firm sells its products, i e basmati and
non-basmati rice in the states of Delhi, Haryana and Punjab
through a network of commission agents and traders.


SHIV HARI: CARE Lowers Rating on INR5.80cr Long Term Loan to B+
---------------------------------------------------------------
CARE has been seeking information from Shiv Hari Plywood Limited
(SHPL), to monitor the rating(s) vide e-mail communications/
letters dated March 22, 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.
Furthermore, SHPL 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 Shiv Hari Plywood
Limited will now be denoted as CARE B+/CARE A4; ISSUER NOT
COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         5.80       CARE B+; Issuer Not
   Facilities                        Cooperating; Revised from
                                     CARE BB on the basis of
                                     best available information

   Short-term Bank        1.70       CARE A4; Issuer Not
   Facilities                        Cooperating; Based on 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 ratings have been revised by taken into account subdued
performance during FY16 (refers to the period April 1 to March
31) including decline in scale of operations and lengthening of
operating cycle. The ratings further continue to constrained by
susceptibility of margins to fluctuation in the raw material
prices, foreign exchange fluctuation risk and its presence in
highly fragmented nature of the industry characterized by intense
competition. The ratings, however, continues to take comfort from
the experienced promoters, diversified product range, moderate
profitability margins and capital structure.

Detailed description of the key rating drivers

Key Rating Weaknesses

Decline in total operating income

The total operating income of the company declined from INR14.13
crores in FY15 to INR11.35 crores. The small scale limits the
company's financial flexibility in times of stress and deprives
the entity from scale benefits.

Lengthening of operating cycle

The operating cycle of the company elongated to 346 days for FY16
as against 281 days for FY15. The elongation was mainly on
account of higher collection period and inventory holding period.

Foreign exchange exposure

The firm imported 30% of its raw material requirement from
Malaysia, Singapore and United States of America and its initial
outlay for procurement is in the form of foreign currency. The
products are sold mainly in the domestic markets. With an initial
cash outlay for procurement in foreign currency and sales
realization is mainly in domestic currency, the firm is exposed
to the fluctuation in exchange rates which the firm does not
hedge.

Exposure to raw material price volatility

Raw material constituted major portion of the total cost of
production. The company is exposed to the raw material price
volatility risk due to the fluctuation experienced in the prices
of timber which constitutes a major component of the raw
material and the prices of timber varies rapidly due to demand
supply gap. Hence, any volatility in its price has a direct
impact on the profitability margins of the company.

Highly fragmented nature of the industry characterized by intense
competition

There is stiff competition in the plywood industry due to the
presence of many organized and unorganized players. Smaller
companies like SHPL in general are more vulnerable to intense
competition due to their limited pricing flexibility, which
constrains their profitability as compared to larger companies
who have better efficiencies and pricing power considering their
scale of operations.

Key Rating Strengths

Experienced promoters and long track record of operations Mr.
Hargovind Prasad Singhal is director of SHPL and has been
associated with the company since its inception; he looks after
the overall functions of the company and has been in the plywood
industry for more than two decades. He is supported by his sons,
Mr. Pushpendra Mohan (Managing Director) and Mr. Shailendra Mohan
Singhal (Director), in the company's business activities. Both of
them have been associated with the company since its inception.
Moreover, SHPL has more than two decade of operations and stands
to benefit from the already established relationship with the
suppliers and dealers of the company.

Moderate profitability margins, capital structure and coverage
indicators

The profitability margins of the company continue to remain
moderate. The capital structure of the company stood moderate for
past three financial years mainly on account of moderate net
worth base against debt levels. Further the debt service coverage
indicators continues to remain moderate on account of moderate
profitability and lower debt levels.

Jaspur-based (Uttarakhand) Shiv Hari Plywood Ltd. (SHPL) was
incorporated on October 15, 1987, by Mr. Hargovind Prasad
Singhal, Mr. Shailendra Mohan and Mr. Pushpendra Mohan Singhal.
SHPL changed its status from private to public limited company on
June 29, 1998. The company is engaged in the manufacturing of
plywood, blocks board, modular furniture and different types of
doors. SHPL has two manufacturing units located in Jaspur
(Uttarakhand). As on March 31, 2015, SHPL has installed capacity
of manufacturing 23.10 lakh square meters of plywood and block
board, 51 lakh square meters of doors and 15 lakh pieces of
modular furniture. SHPL sells its products under the brand names
of "CORBETT" and "CORBETT KOOL" through wholeseller located in
Uttarakhand, Uttar Pradesh (mainly Lucknow), Maharashtra, Delhi
and Madhya Pradesh (mainly Bhopal).

During FY16 (refers to the period April 1 to March 31), SHPl has
achieved a total operating income (TOI) of INR11.35 crore with
PAT of INR0.17 crore, respectively, as against TOI of INR14.13
crore with PAT of INR0.01 crore in FY15.


SHRI SHIVJOT: CARE Issues B Issuer Not Cooperating Rating
---------------------------------------------------------
CARE has been seeking information from Shri Shivjot Developers &
Builders Limited to monitor the rating(s) vide e-mail
communications/letters dated March 6, 2017, and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the
ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the publicly available
information which, however, in CARE's opinion is not sufficient
to arrive at a fair rating.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         9.50       CARE B; Issuer not
   Facilities                        cooperating; Based
                                     on best available
                                     information

The rating on Shri Shivjot Developers & Builders Limited's bank
facilities will now be denoted as CARE B; ISSUER NOT COOPERATING.

The rating takes into account small scale of operations with
geographical concentration risk, weak financial risk profile
characterised by net losses in FY16 (refers to the period April 1
to March 31), leveraged capital structure and weak coverage
indicators. The rating is further constrained by cyclicality
associated with real estate industry and exposure to local demand
supply dynamic, SDB's presence in a highly fragmented industry
characterized by intense competition from other small and large
players. The rating, however, derives comfort from experienced
promoters.

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

Detailed description of the key rating drivers

At the time of last rating in March 29, 2016, the following were
the rating strengths and weaknesses.

Key Rating Strengths

Experienced promoters: Mr. Baljit Nain, Mr. Jaswinder Singh and
Mr. Darshan Singh have an experience of two decades in the real
estate sector through their association with SDB, M/s Shivjot
Developers and Builders and M/s Shivjot DMAG Apartments, whereas
Ms Sunita Nain, Mr. Puneet Tayal, Ms Jasveer Kaur and Ms Jagjeet
Kaur have experience of around a decade in the real estate
sector.

Land acquired and relevant approvals in place: The entire cost of
the land acquisition (including site development) for the ongoing
"Shivjot Green Project" project has been fully paid for. As per
management, the company has taken all the requisite approvals and
clearances for project execution.

Rating Weaknesses

Low project preparedness level with high reliance on customer
advance: Out of the total project cost of INR28.21 crore, the
company has incurred INR9.14 crore (incl. land cost of INR5.22
crore) as on December 11, 2015. The company has fully paid for
the land and construction on the project has started.
Furthermore, the term loans required for the projects have been
tied up, however, the project has high reliance on the customer
advances as around 50% of the total project cost is proposed to
be funded from there.

Small scale of operations: The company's scale of operations has
remained low marked by TOI of INR6.16 crore for FY16 (refers to
the period April 01 to March 31) and tangible net worth of INR-
0.48 crore as on March 31, 2015.

Weak financial risk profile

The financial risk profile of the company is characterised by net
loss in FY16, leveraged capital structure and weak debt
protection metrics.

Losses in FY16: The company incurred losses at PBILDT level in
FY16 along with net loss of INR 1.22 crore in FY16.

Leveraged capital structure: The capital structure of SDB
remained leveraged as indicated by overall gearing ratio of
2.62x, as on March 31, 2016.

Weak debt coverage indicators: The debt coverage indicators of
the company remained weak marked by interest coverage ratio of -
0.01x in FY16 and total debt to GCA of -7.20x as on March 31,
2016.

Marketability risk and market competition: For the commercial
project launched, the company had not booked any of the total
salable area. Therefore, the risk of marketing and selling of the
shops still exists as per the current booking status of the
project. Moreover, the Indian real estate industry is highly
fragmented in nature with the presence of a large number of
organized and unorganized players spread across various regions.

Geographical concentration risk: SDB is developing both the
projects in the Mohali region. Furthermore, no new projects are
planned for the future which exposes the company to geographical
concentration risk.

Cyclicality associated with real estate industry and exposure to
local demand-supply dynamic: The company is exposed to the
cyclicality associated with real estate sector which has direct
linkage with the general macroeconomic scenario, interest rates
and level of disposable income available with individuals. In
case of real estate companies, the profitability is highly
dependent on property markets. A high interest rate scenario
could discourage the consumers from borrowing to finance the real
estate purchases and may depress the real estate market.

Shri Shivjot Developers & Builder Limited (SDB) was incorporated
in 2005, by Mr. Baljit Nain, Mr. Jaswinder Singh and Mr. Darshan
Singh. The company is engaged in the real estate business since
2005 and is currently undertaking a commercial project namely
'Shivjot Green Project' at Kharar, Mohali, Punjab on 2.74 acres
of land. Furthermore, the company is developing a residential
project, namely, "Shivjot Apartments". Besides SDB, the group has
Shivjot Developers and Builders (established in 2005) and M/s
Shivjot Dmag Apartments (established in 2008), as the group
concerns, engaged in the real estate business.


SHRIRAM SEPL: ICRA Lowers Rating on INR7cr LT Loan to 'D'
---------------------------------------------------------
ICRA has downgraded the long term rating outstanding on the
INR0.80 crore term loans, INR5.00 crore fund based facilities,
INR7.00 crore non fund based facilities and INR0.20 crore
proposed facilities of Shriram SEPL Composites Private Limited
from [ICRA]BBB (SO) with a stable outlook to [ICRA]D. ICRA has
also downgraded short term rating of [ICRA]A2 (SO) outstanding on
the INR3.00 crore short term fund based limits of SSCPL to
[ICRA]D. The SO (Structured Obligation) rated facilities were
credit enhanced by an irrevocable corporate guarantee issued by
the holding company Shriram Industrial Holdings Limited.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term: Term        0.80       [ICRA]D/ downgraded from
  loans                             [ICRA]BBB (SO) (stable)

  Long term: Fund        5.00       [ICRA]D/ downgraded from
  based limits                      [ICRA]BBB (SO) (stable)

  Long term: Non         7.00       [ICRA]D/downgraded from
  fund based limits                 [ICRA]BBB (SO) (stable)

  Long term: Proposed    0.20       [ICRA]D/downgraded from
  facilities                        [ICRA]BBB (SO) (stable)

  Short term: Non-       3.00       [ICRA]D/downgraded from
  fund based limits                 [ICRA]A2(SO)

Rationale

The downgrade in the ratings primarily considers SSCPL's delay in
meeting its debt service obligations in a timely manner. ICRA has
also taken note of non-invocation of the guarantee as per the
terms of the underlying loan and guarantee agreement which formed
the basis for ICRA's opinion on SSCPL's SO rating.

Going forward, SSCPL's ability to service the debt obligation in
time will be the key rating sensitivity factor.

Key rating drivers

Credit Strengths

* Significant experience of the promoters in the industry

Credit Concerns

* Devolvement of letter of credit and delay in payment of
   interest
* High receivables days in FY2016 owing to delays from a major
   customer

Description of key rating drivers highlighted above:

SSCP is a part of Shriram Group comprising of companies like
Shriram Industrial Holdings Limited and the promoters of the
company have significant experience across various fields. SSCPL
which is engaged in the manufacture of filament wound composite
pipes, fittings, tanks and pressure valves. Decline in revenues
in FY2016 coupled with high receivable days from major customers
has led to weak liquidity position for the company, thereby
resulting in delays in meeting its debt obligations in a timely
manner.

The [ICRA]BBB(SO)/[ICRA]A2(SO) ratings assigned to the company on
June 2015 had taken into account the irrevocable corporate
guarantee extended by the holding company Shriram Industrial
Holdings Limited towards the bank facilities of SSCPL. An SO
rating is specific to the rated issue, its terms, and its
structure. SO ratings do not represent ICRA's opinion on the
general credit quality of the issuers concerned. The earlier
assigned rating assumed that the lender will duly invoke the
guarantee as per the terms of the underlying loan and guarantee
agreements, in case there is a default in payment by the
borrower. The company, in the period during last six months, had
devolved letter of credit outstanding more than 30 days. Hence
the rating is downgraded to [ICRA]D from [ICRA]BBB (SO) (stable).

Shriram SEPL Composites Private Limited, formed by Shriram EPC
Limited and Strategic Engineering Private Limited, is involved in
the design, manufacturing, supply and installation of GRP
products such as pipes, fittings, tanks and cylinders. The
company's manufacturing facility is located in Singaperumal Koil,
Chennai, and has a capacity to produce 600 meters of 900mm
diameter pipes per. SSCPL uses imported CNC filament winding
machines to manufacture pipes of international standards like
ASTM, AWWA, etc and has an in-house lab for quality inspection.
SSCPL has received the ISO 9001-2008, ISO 14001-2004 & OHSAS
18001-2007 certifications.


SHREE HARI: CARE Reaffirms B+ Rating on INR6.18CR LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shree Hari Developers (SHD), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             6.18       CARE B+; Stable Reaffirmed

Detailed rationale

The rating assigned to the bank facilities of Shree Hari
Developers (SHD) is primarily constrained on account of moderate
implementation risk associated with its on-going project, high
dependence on the external funding for project implementation,
partnership nature of the constitution and its presence in a
highly fragmented and cyclical real estate industry which is
currently facing a subdued scenario. However, the rating derives
strength from experienced promoters in the real estate
development activity along with moderate project saleability risk
coupled with moderate booking advances.

The ability of SHD to successfully complete on-going real estate
project and timely receipt of sale proceeds from customers at
envisaged price are the key rating sensitivities.

Detailed description of key rating drivers

Key Rating Strengths

Experienced partners

Shree Hari Developers was promoted by six promoters. Mr.
Milanbhai Barot, Mr. Jayesh Patel, Mr. Hiren Vakil, Mr.
Mukundsinh Vaghela, Mr. Akshay Patel, Mr. Ketan Dave are the
partners in SHD having experience in same line of business. Mr.
Mukunsinh Vaghela aged 61 years has an experience of 35 years in
same line of business. Also all other partners carry reasonable
amount of experience of more than a decade in the same industry.

Advanced stage of project implementation

SHD had started construction activity of Nirmit Flora in May 2012
and is expected to complete by April 2017. However, APE has
completed major part of construction activity. Till January 31,
2017, SHD has incurred cost of INR39.52 crore forming 90% of
envisaged project cost of INR44.14 crore. Hence, there is
relatively low risk related to project implementation as the
project is on the verge of completion.

Key Rating Weaknesses

Moderate project implementation risk

The project is about to complete and the booking status of the
project remained high at 82% i.e. 284 out of which 119 have been
sold and 115 have been booked.  The revenue from sold units and
advance from the booked units till January 31, 2017 together
stood at INR14.72 crore which constitutes 33% of the total
proposed sales value of INR44.14 crore. Considering the ongoing
subdued scenario of the real estate sector, the saleability risk
related to the un-booked units is high so there is moderate risk
associated for collection of revenue.

Partnership nature of constitution

Being a partnership firm, SHD is exposed to inherent risk of
partners' capital being withdrawn at the time of personal
contingency, and the firm being dissolved upon the
death/retirement/insolvency of the partners.

Highly fragmented industry and sensitive to interest rates

The real estate sector in India is highly fragmented with many
regional players, who have significant presence in their
respective local markets which in turn leads to intense
competition within the industry. The real estate sector is
sensitive to the economic cycle and interest rates. Adverse
movement in interest rate affects the real estate players in both
ways - by hampering demand as well as increasing the cost of
construction. With elevated interest rates, the real estate
sector has witnessed slowdown in the last two fiscals. Most of
the buyers have postponed their purchase decisions due to higher
interest rates.

Cyclical nature of the real estate industry

The life cycle of a real estate project is long and the state of
the economy at every point in time, right from land acquisition
to construction to actual delivery, has an impact on the project.
This capital intensive sector is extremely vulnerable to the
economic cycles. Currently, slowdown in sales and increased input
costs has increased liquidity concerns for highly leveraged
players. Belying the expectations of many, the developers have
been able to hold on to the prices so far. However, given the
considerable inventory levels, which direction the price graph
goes, remains to be seen.

Ahemdabad-based (Gujarat) Shree Hari Developers was promoted by
six promoters. Mr. Milanbhai Barot, Mr. Jayesh Patel, Mr. Hiren
Vakil, Mr. Mukundsinh Vaghela, Mr. Akshay Patel, Mr. Ketan Dave
are the partners in SHD having experience in same line of
business. SHD has undertaken construction of commercial and
residential building in Chandkheda, Ahmedabad.

SHD is setting up a residential and commercial project name
"Nirmit Flora". The Firm is constructing 252 Flats and 32
Shops on said Plot of Land under name of "Nirmit Flora" The Firm
is implementing the said project in two Phases. In Phase-I, the
firm is setting up 180 Nos of Residential Apartments. The Phase-
I is completed with construction of 9 blocks of 5 floors where in
there are 4 flats on each floor. All the 180 flats are of 2 BHK
but out of which 80 flats are of 144sq.yds and 100 flats are of
131 sq.yrd.

In Phase-II, the firm is constructing 72 flats and 32 shops in
existing plot of land. Out of 72 flats, 32 flats will be of 3 BHK
and 40 flats of 2 BHK. The 2 BHK flats offered are of size around
144 sq yds while 3 BHK have size of around 192 sq yds. Thus
entire scheme comprises of construction of 252 flats and 32
shops.


SRI VENKATA: CARE Assigns 'B' Rating to INR5.0cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Venkata Vamsi Krishna Traders (SVVKT), as:

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

   Short-term Bank
   Facilities             3.12       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SVVKT are
constrained by small scale of operations, weak debt coverage
indicators, proprietorship nature of constitution, working
capital intensive nature of operations, profitability margins are
susceptible to fluctuation in foreign exchange prices, highly
fragmented industry with intense competition from large number of
players. The ratings are, however, underpinned by the Long track
record and experienced proprietor, growth in total operating
income, satisfactory profitability margins, moderate capital
structure and established customer relationship with group
entities. Going forward, the firm's ability to increase its scale
of operations and improve the profitability margins in
competitive environment and improve the capital structure and
debt coverage indicators as envisaged would be key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations

The scale of operations of the firm remained small marked by
total operating income (TOI) of INR21.61 crore in FY16 (refers to
the period April 1 to March 31). Furthermore, the net worth of
the firm is low at INR6.81 crore as on March 31, 2016, as
compared with other peers in the industry.

Weak debt coverage indicators

The firm has weak debt coverage indictors during review period.
The total debt/GCA deteriorated y-o-y i.e., from 12.46x in FY14
to 28.30x in FY16 due to increase in debt level along with
declining cash accruals.

Although PBILDT has been increasing during the review period
(FY14-FY16), the PBILDT interest coverage ratio has been
deteriorating y-o-y, ie, from 1.65x in FY14 to 1.18x in FY16 due
to increase in interest cost.

Proprietorship nature of constitution with inherent risk of
withdrawal of capital

The sole proprietor typically makes all the decisions and runs
the entire business operation. If he becomes ill or disabled,
there may be nobody else who can step in and keep the business
going. Running a business single-handled can also pose a risk due
to heavy burden. Constitution as a proprietorship has the
inherent risk of possibility of withdrawal of the capital at the
time of personal contingency which can adversely affect its
capital structure.

Working capital intensive nature of operations

The firm has moderate operating cycle at 73 days in FY16 which
improved from 89 days in FY15 due to improvement in average
collection period. The firm is required to keep inventory levels
of around 2-3 months to meet customers' demand. Furthermore, the
firm imports wood and teak in bulk from the suppliers located at
international markets like Brazil, Tanzania, etc. which also
results in high inventory levels. The firm receives payment from
its customers within 20- 30 days. The credit period availed by
the firm from its suppliers increased from 16 days in FY15 to 25
days in FY16 due to 80% of total purchases are imports coupled
with due to long-term relationship with supplier whereby the firm
avails extension in the credit period. The average utilization of
Cash Credit is 70% during the last 12 months.

Profitability margins are susceptible to fluctuation in foreign
exchange prices

SVVKT has 80% import purchases. So the profitability margins are
susceptible to fluctuation in foreign exchange prices. The firm
receives payment from its customers at current exchange rate.
However, the firm partly takes hedging policies against foreign
currency fluctuations by using foreign bill discounting and
derivative & forward contract limits through banks.

Highly fragmented industry with intense competition from large
number of players

The firm is engaged in trading of wood which is highly fragmented
industry due to presence of large number of organized and
unorganized players in the industry resulting in huge
competition.

Key Rating Strengths

Long track record and experience of the proprietor for more than
three decades in trading of wood and wood products Mr. Nukala
Venkata Seshagiri Rao (Proprietor) has more than three decades of
experience in trading of wood and wood products. Due to long term
presence in the market, the proprietor has developed good
relations with suppliers and customers.

Growth in total operating income during review period

The total operating income of the firm grew at Compounded Annual
Growth Rate(CAGR) of 18.23% i.e., from INR15.46 crores in FY14 to
INR21.61 crores in FY16 due to year on year increase in orders
from existing customers and addition of new customers from local
traders. During 10MFY17 (Provisional), the firm has achieved
total operating income of INR15.14 crores.

Satisfactory PBILDT margin albeit marginal fluctuation during
review period

The firm has satisfactory PBILDT margins during review period.
The PBILDT margin of the firm increased from 8.92% in FY14 to
12.66% in FY15 due to decrease in material costs and employee
costs. However, the PBILDT margin marginally declined to 11.95%
in FY16 due to increase in selling expenses. Although trading
nature of business, the profit margins of the firm remained
satisfactory during review period. The PAT margin of the firm
declining y-o-y i.e., 3.34% in FY14 to 1.31% in FY16 due to
increase in interest expenses and depreciation cost.

Moderate capital structure

The capital structure of the firm remained moderate as on
March 31, 2016. The overall gearing ratio of the firm improved
from 2.61x as on March 31, 2015 to 1.60x as on March 31, 2016 due
to increase in tangible networth at the back of capital infused
by the proprietor to the tune of INR2.61 crore along with
accretion of profit to the networth.

Established customer relationship with group entities

The customer base of the firm is well established, as the
proprietor has been in this line of business for more than three
decades, as a result of which, it developed good contacts with
the major buyers in real estate business. SVVKT has also been
supported by the proprietor's well established in the market as
their family has been into timber trading business. The
proprietor has share in around 10-15 business entities which are
primarily into timber, construction and real estate and others.

Sri Venkata Vamsi Krishna Traders was established in 1985,
promoted by Mr. Nukala Venkata Seshagiri Rao. The firm is
engaged in trading (wholesale and retail) of wood and teak
products from past 30 years. The firm imports 80% of the
wood and teak from the suppliers located at international markets
like Apasa Industrial E-Agro Forestical Limited (Brazil),
Melne General Trading LLP (Benin), Giya Industries Limited
(Tanzania). The firm sells the products to customers located in
Andhra Pradesh and Telangana like Amma Constructions, Sri Koneru
Lakshmaiah University (KL University), Jyothi Constructions,
besides others. These products find application in construction
industry and for making furniture, tools and weapons.

In FY16, SVVKT reported a Profit after Tax (PAT) of INR0.28 crore
on a total operating income of INR21.61 crore, as against
a PAT and TOI of INR0.40 crore and INR18.23 crore, respectively,
in FY15.


STRAIGHT EDGE: CARE Issues B Issuer Not Cooperating Rating
----------------------------------------------------------
CARE has been seeking information from Straight Edge Contracts
Private Limited (SEPL), to monitor the rating(s) vide email
communications/ letters dated February 22, 2017 and numerous
phone calls. However, despite CARE's repeated requests, the
company has not provided the requisite information for monitoring
the rating. In the absence of minimum information required for
the purpose of rating, CARE is unable to express opinion on the
rating. Furthermore, SEPL 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 SECPL will now
be denoted as CARE B ; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              10        CARE B; Issuer Not
                                     Cooperating; Based on
                                     best available information

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

Detailed description of the key rating drivers

At the time of last rating on April 22, 2016, the following were
the rating strengths and weaknesses (Updated for the information
available from the registrar of companies:

Key Rating Weaknesses

Low revenue visibility

During FY16 (refers to the period April 01 to March 31); SEPL was
having only one project underway. This project was expected to be
complete by December, 2016. Apart from this project, the company
has no other projects in the pipeline. This leads to
concentration of its revenue on one particular project and also
low revenue visibility for the future. Effective and timely
execution of the orders had a direct bearing on the TOI and
margins to be attained.

Moderate profitability margins, leveraged capital structure and
weak debt coverage indicators. The profitability margins of the
company the company continues to remain moderate. The capital
structure of the company improved but continues to remain
leveraged on account of high amount of unsecured loans.
Furthermore, the debt service coverage continue to remain weak on
account of account of high interest cost and higher debt levels
in the form of unsecured loans

Key Rating Strengths

Experienced promoters

Mr Rajesh Nagpal has an experience of more than a decade in the
construction of residential flats. Before this company, he was
working with Gulshan Homz Pvt. Ltd. He looks after he overall
operations of the company with the support of Mr. Sahil Nagpal
and Mr. Divam Kapoor.

SEPL was incorporated in 2009, by Mr. Rajesh Nagpal, Mr. Sahil
Nagpal and Mr. Divam Kapoor in 2009. The company is engaged in
the civil construction mainly of multi-storied residential
buildings. The company operates in the Delhi-NCR region. The
company procures orders through bidding process.

The company has achieved the total operating income of INR23.06
crore and PAT of INR0.47 crore in FY16 as against INR36.48 crore
and INR 0.14 crore in FY15.



T.C. SPINNERS: CARE Issues B+ Issuer Not Cooperating Rating
-----------------------------------------------------------
CARE has been seeking information from T.C. Spinners Private
Limited (TCSPL) to monitor the rating(s) vide e-mail
communications/letters dated March 10, 2017; March 7, 2017;
March 4, 2017; March 3, 2017; March 2, 2017; September 21, 2016 &
September 6, 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 rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on TCSPL's bank facilities will now be denoted as CARE
B+/CARE A4; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        93.51       CARE B+; Issuer not
   Facilities                        cooperating; Based on
                                     best available information

   Short-term Bank       10.00       CARE A4; Issuer not
   Facilities                        cooperating; Based on 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 ratings take into account TCSPL's weak financial risk profile
marked by fluctuating scale of operations, weak solvency position
and working capital intensive nature of operations. The ratings
are further constrained by the susceptibility of profitability
margins to raw material price volatility & foreign exchange
fluctuations and competitive & fragmented nature of the industry.
The ratings, however, derive strength from the experience &
resourcefulness of the promoters and diversified customer base.

Detailed description of the key rating drivers

At the time of last rating on June 3, 2016 the following were the
rating strengths and weaknesses (updated for the information
available from Registrar of Companies):

Key Rating Strengths

Experienced and resourceful promoters: TCSPL is engaged in the
manufacturing of cotton yarn, polyester yarn and sewing
thread and is currently being managed by Mr. Anil Satia, Mr.
Dhruv Satia, Mr. Narinder Kumar Chugh and Mr. Avinash Jain.

The directors have experience ranging from 10-35 years in the
textile industry. Additionally, the directors are supported
by a team of experienced and qualified professionals having
sufficient experience in the technical, finance and marketing
fields. Furthermore, the promoters have infused in funds in
amounting to INR45.68 crore in FY16 (Rs.3 crore in the form of
equity and remaining in the form of unsecured loans) to fund
various business requirements.

Diversified customer base: TCSPL has a well-diversified customer
base spread across various states of India. Additionally,
the company also exports yarn to companies located in Bangladesh
and China. On account of long standing relationship (of nearly
one decade), TCSPL has been able to establish strong business
relationship with its customers. Strong business relationship has
enabled the company to get repetitive orders from these
customers.

Key Rating Weaknesses

Financial risk profile: Though the scale of operations declined
by ~12% in FY16 to INR156.72 crore from INR177.93 crore in FY15,
profitability margins improved on a year-on-year basis with
PBILDT and PAT margins of 10.55% and 0.79%, respectively, in FY16
(PY: 6.44% and 0.12%, respectively). Overall solvency position
continued to remain weak though improved on a year-on-year basis
with overall gearing ratio and total debt to GCA ratio of 4.88x
and 15.62x, respectively, as on March 31, 2016 (PY: 5.05x and
20.61x, respectively). This was on account of higher
profitability & accretion of those to networth and additional
equity infusion by the promoters (amounting to INR3.00 crore.).

Working capital intensive nature of operations: The operating
cycle of the company elongated to 144 days, as on March 31, 2016
(PY: 109 days) due to elongation in average collection days.

Exposure to raw material price volatility and foreign exchange
fluctuations: The prices of the key raw materials are fluctuating
in nature as the price variation is at times not completely
passed on to the customers due to competitive market environment.
This exposes the margins to any adverse movement in the raw
material prices. Furthermore, the company earned about 4% of the
total operating income in FY16 (~9% in FY15) from exports. TCSPL
does not engage into any foreign exchange hedging activities
which exposes the profitability margins of the company to any
adverse fluctuations in the foreign currency rates, especially in
the absence of any natural hedge.

Highly competitive and fragmented nature of the industry: Yarn
manufacturing business in India is highly fragmented with
presence of a large number of small and medium scale units. Due
to high degree of fragmentation, small players hold very low
bargaining power against both its customers as well as its
suppliers resulting in such companies operating at low profit
margins.

T. C Spinners Private Limited (TCSPL) was set up in September-
2006 with the acquisition of cotton spinning facility of Euro
Cotspin Limited from Punjab National Bank under the SARFAESI Act.
The company is currently being managed by Mr. Dhruv Satia, Mr.
Anil Satia, Mr. Narinder Kumar Chugh and Mr. Avinash Jain. It
manufactures cotton yarn, polyester yarn and spun sewing thread
at its manufacturing facility located at Lalru, Punjab. The
company manufactures yarn of different counts ranging from 10's
to 30's depending upon the customer requirement. The yarn
supplied by the company is used as a raw material for
manufacturing denim, terry towel, suiting cloth, shirting and
home furnishing.

TCSPL reported a PAT of INR1.24 crore on a total income of
INR156.72 crore in FY16 (Audited; refers to the period from
April 01 to March 31) as against the PAT of INR0.21 crore on a
total income of INR177.93 crore in FY15.

Status of non-cooperation with previous CRA: Applicable. ICRA has
suspended its rating vide press release dated October 3, 2016 on
account of its inability to carry out a rating surveillance in
the absence of the requisite information from the company.


TANEJA OVERSEAS: CARE Issues B+ Issuer Not Cooperating Rating
-------------------------------------------------------------
CARE has been seeking information from Taneja Overseas (TO) 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 Taneja Overseas's bank facilities
will now be denoted as CARE B+; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank          9         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(s).

Detailed description of the key rating drivers

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

Key Rating Strengths

Experienced promoters and established track record of the entity:
Mr. Avtar Singh and Mrs Satinder Kaur have gained significant
experience of three decades and two and a half decades
respectively through their association with Mewa Singh Avtar
Singh & Co.( Punjab-based partnership firm, established in 1980,
engaged in processing of paddy) and through TO, since inception.
Mr. Jaideep Singh, has experience of around half a decade through
his association with TO.

Healthy scale up of operations during FY13-15 period: The scale
of operation of TO, increased from INR13.74 crore to INR27.83
crore during FY13-15 period (refers to the period April 01 to
March 31).

Favorable processing location: TO is mainly engaged in milling
and processing of rice. The main raw material (Paddy) is procured
from local grain markets, located in Punjab. The firm's
processing facility is situated in Tarn Taran, Punjab 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
favourable pricing terms.

Key Rating Weaknesses

Low profitability margins of the firm: The profitability margin
of the firm stood low marked by PBILDT margin of 4.05% and PAT
margin of 0.23% in FY15.

Leveraged Capital Structure: TO has leveraged capital structure,
marked by overall gearing ratio of 5.02xas on March 31, 2015.

Weak debt coverage indicators: Debt coverage indicators of TO
remained weak marked by interest coverage ratio of 1.53x for FY15
and total debt to GCA of 33.25xas on March 31, 2015.

Working capital intensive nature of operations: The working
capital cycle of the entity remained high at 128 days as on
March 31, 2015. The average utilization of the working capital
limits stood at around 85% for the last 12 months period ended
October, 2015.

Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: 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. The monsoon has a huge bearing on crop
availability which determines the prevailing paddy prices. 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.
There are several small scale operators which are not into end-
to-end processing of rice from paddy. 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.

Taneja Overseas (TO) is a Punjab-based, partnership firm
established in 2007 by Mr. Avtar Singh Taneja, Mr. Jaideep
Singh and Mrs Satinder Kaur sharing profit and loss in the ratio
of 50%, 30% and 20% respectively. The firm is engaged in
processing of paddy at its manufacturing facility located in Tarn
Taran, Punjab having an installed capacity of processing 18000
metric ton per annum (MTPA) of paddy to rice, as on March 31,
2015. TO procures paddy directly from local grain markets through
commission agents located in Punjab. The firm sells its products
i.e. Basmati and Non-Basmati rice in Punjab and Delhi through a
network of commission agents. TO sells basmati rice under brand
name "Sweet Home" and non basmati rice under name "Tiger" and
"Everyday". The entity also exports rice to Middle East Countries
(Dubai, Oman and Europe).


TIRUPATI COLD: CARE Assigns B+ Rating to INR5.54cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Tirupati Cold Storage (TCS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            5.54        CARE B+; Stable

Detailed Rationale

The rating assigned to the bank facilities of Tirupati Cold
Storage (TCS) is constrained on account of its modest scale of
operations, moderate profit margins, leveraged capital structure,
weak debt coverage indicators, modest liquidity position and risk
of delinquency in loans extended to farmers during FY16 (refers
to the period April 1 to March 31). The ratings are further
constrained on account of constitution as a partnership firm,
competition from other local players and seasonality of business.
The rating, however, derives strength from experience of the
partners.

The ability of TCS to increase the scale of operations along with
profit margins and efficient working capital management amid
competitive nature of industry and raw material price volatility
are the key rating sensitivities.

Detailed description of key rating drivers

Key Rating Strengths

Experienced partners

The firm was established by three partners led by Mr. Hasmukhbhai
Padhiyar who is having an experience of 15 years in the field of
maintenance of plant and looks after the overall operations of
the firm. The other partners are Mr. Jitendrakumar Padhiyar has
an experience of 15 years and Mrs Geetaben Padhiyar is an
inactive partner.

Key rating Weaknesses

Constitution as a partnership firm

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

Competition from other local players and business prospects
depends on vagaries of nature and seasonality of business
Despite being capital intensive business, the entry barrier for
new cold storage is low, backed by capital subsidy schemes of
government. As a result, the potato storage business in the
region has become highly competitive.

Modest scale of operations and moderate profit margins

The turnover increased by 30% from INR1.17 crore during FY15 to
INR1.52 crore during FY16. The PBILDT margin of TCS increased by
115 bps during FY16 over FY15 but remained moderate at 52.60% as
against 53.75% during FY15 mainly on account of increase in power
and fuel due to fluctuations in market conditions. The firm
reported a meagre net profit of INR0.07 crore during FY16 as
compared with INR0.08 crore during FY15 on account of high
depreciation cost and interest and finance costs w.r.t the scale
of operations.

Leveraged capital structure, weak debt coverage indicators and
modest liquidity position

The capital structure of TCS is leveraged marked by an overall
gearing of 2.78 times as on March 31, 2016 as against 1.48 times
as on March 31, 2015 owing to increase in total debt as compared
to net worth. (Unsecured loans of INR0.54 crore have been
considered as quasi equity). The debt coverage indicators of TCS
remained weak marked by total debt to GCA of 15.11 years [FY15:
10.83 years] and interest coverage of 1.74 times [FY15: 1.86
times] in FY16 owing to leveraged capital structure and higher
utilization of working capital limit. The current ratio of the
firm remained modest at 1.05 times as on March 31, 2016 as
compared to 1.03 times as on March 31, 2015. The average
utilization of working capital limits has remained almost 90%
during past 12 months ended February 2017. The cash flow from
operating activities remained at negative INR1.89 crore during
FY16 as against negative INR0.09 crore during FY15 mainly due to
significant increase in current assets (loans and advances
related to operations).

Risk of delinquency in loans extended to farmers

As a part of the government's initiative to support agriculture,
banks extend financial assistance to farmers through cold
storages against the pledge of cold storage receipts. Hence,
there exists a risk of delinquency in loans extended to the
farmers, in case of downward correction in the potato prices
being an agro commodity.

Established in the year 2006, TCS is providing cold storage
facility for storing potatoes on a rental basis. TCS was
established by three partners and is managed by Mr. Hasmukhbhai
Padhiyar. TCS has an installed capacity of 8500 metric
ton at its facilities located at Mansa- Gujarat.

During FY16 (A), TCS reported PAT of INR0.07 crore on a TOI of
INR1.52 crore as against PAT of INR0.08 crore on a TOI of INR1.17
crore during FY15. Till March 20, 2017, TCS has clocked a
turnover of INR1.50 crore.


UNIPEARL ALLOYS: CARE Issues B+ Issuer Not Cooperating Rating
-------------------------------------------------------------
CARE has been seeking information from Unipearl Alloys to monitor
the rating(s) vide e-mail communications/letters dated March 6,
2017, and numerous phone calls. However, despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on Unipearl Alloys's bank facilities will now be
denoted as CARE B+/CARE A4; ISSUER NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        3.50        CARE B+; Issuer not
   Facilities                        cooperating

   Short-term Bank       2.45        CARE A4; Issuer not
   Facilities                        cooperating

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

Detailed description of the key rating drivers

At the time of last rating in April 20, 2016, the following were
the rating strengths and weaknesses:

Key Rating Strengths

Experienced partners: Mr. Kuldeep Singh has an experience of one
decade in the steel industry through his association with UA
along with other group concerns i.e Pearl Steel Rolling Mills and
United Iron & Steel Re-Rolling Mills. Mr. Vikramjeet Singh has an
experience of two decades through their association with UA and
its associated concerns.

Increase in total operating income: The total operating income of
UA increased at a healthy rate of ~19% from INR34.90 crore in
FY14 (refers to the period April 1 to March 31) to INR41.61 crore
in FY15.

Moderate operating cycle: The operating cycle of UA stood
moderate at ~26 days as on March 31, 2015. The average cash
credit limit utilization remained at ~90% for the last 12 months
period ended February 2016.

Key Rating Weaknesses

Moderately Leveraged capital structure: The capital structure of
entity remained moderately leveraged as marked by long-term debt-
equity ratio and overall gearing of 0.15x and 1.69x,
respectively, as on March 31, 2015.

Weak Debt coverage indicators: The debt coverage indicators of
the firm remained weak marked by interest coverage ratio of 1.51x
in FY15 and total debt to GCA ratio of 17.94x as on March 31,
2015.

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

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.

Unipearl Alloys (UA) based in Mandi Gobindgarh, Punjab is a
partnership firm established in April 2005 by Mr. Kuldeep Singh
Kalsi, Mr. Pargat Singh, Mr. Rajveer Singh, and Mr. Vikramjeet
Singh sharing profit and losses in the ratio of 25%, 25%, 30% and
20%, respectively. UA is primarily engaged in the manufacturing
of mild steel ingots, square steel billets, forging ingots, etc.
Mild steel ingots produced by UA find application in rolling
mills to manufacture steel sheets, channels, bars and plates
which are then used in construction and infrastructure industry.
UA has an installed capacity of 50 Metric Tonnes Per Annum (MTPA)
as on March 31, 2014 and the manufacturing facility of the firm
is located at Mandi Gobindgarh, Punjab. The firm procures raw
material in the form of iron scrap, mild steel scrap and moulds
from various dealers and wholesalers. The firm manufactures
ingots in different sizes and shapes according to the customer
requirement. The company sells its products in the domestic
market mainly located in the Punjab region. The processes of the
firm are ISO 9001:2008 certified. Besides UA, the group includes
Pearl Steel Rolling Mills and United Iron & Steel Re-Rolling
Mills engaged in manufacturing of mild steel angles and stainless
steel angles operational since 1987 and 1960, respectively.


VIJAY NIRMAN: ICRA Lowers Rating on INR250cr Cash Loan to D
-----------------------------------------------------------
ICRA has downgraded the long-term rating assigned to the
INR250.00 crore cash credit limits of Vijay Nirman Company
Private Limited to [ICRA]D from [ICRA]BB+. ICRA has also
downgraded the [ICRA]BB+/[ICRA]A4+ ratings assigned to the
INR520.30 crore bank guarantees and INR75.70 crore unallocated
limits to [ICRA]D. The short term rating on INR50.00 crore
commercial paper has also been downgraded to [ICRA]D from
[ICRA]A4+.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Fund based-Cash        250.00      [ICRA]D/Downgraded
  Credit                             from [ICRA]BB+(Stable)

  Non Fund based-        520.30      [ICRA]D/Downgraded
  Bank Guarantee                     from [ICRA]BB+(Stable)/
                                     [ICRA]A4+

  Commercial Paper        50.00      [ICRA]D/Downgraded
                                     from [ICRA]A4+

  Unallocated limits      75.70      [ICRA]D/Downgraded from
                                     [ICRA]BB+(Stable)/[ICRA]A4+

Rationale

The downgrade in the ratings factors in the recent irregularities
in debt servicing by the company. The cash credit facility of
VNCPL remained overdrawn for more than 30 days during February,
2017 and Letter of Credit devolved for more than 30 days during
December, 2016. Slower pace of execution and high job work
expenses had led to net loss of INR29.82 crore during 9MFY2017.
This coupled with high receivables and unbilled revenues resulted
in stretched liquidity position. Also, VNC posted net losses of
INR68.19 crore for FY2016.

Going forward, VNCPL's ability to service its debt obligations in
a timely manner will be the key rating sensitivity.

Key rating drivers

Credit Strengths

* Diversified order book with presence in multiple segments
   Railways (33%), Civil (28%), roads (20%) accounting for
   major portion of the order book as on December 31, 2016

* Technically competent management with execution capabilities
   across diverse segments, and long track record, reflected in
   repeat orders from numerous customers

Credit Weakness

* Recent irregularities in debt servicing with overdrawal in
   CC for more than 30 days and instances of LC devolvement
   overdue for more than 30 days due to tight liquidity
   conditions

* Deterioration in credit profile on account of net losses of
   INR29.82 crore for 9MFY2017 due to slower pace of execution,
   high job work expenses. The debt coverage indicators continue
   to remain weak with gearing of 2.47 times, TOL/TNW2 at 5.4
   times and Debt/OPBDIT3 of 8.91 times respectively at the end
   of 9MFY2017.Also, VNCPL posted net losses of INR68.19 crore
   during FY2016.

* The working capital position of the company remained stretched
   on account of high receivable and unbilled revenues at 152
days
   and 178 days respectively as on December 31, 2016

Description of key rating drivers highlighted above:

Slower pace of execution and high job work expenses had led to
net loss of INR29.82 crore during 9MFY2017. This coupled with
high receivables and unbilled revenues resulted in stretched
liquidity position. The receivables days along with unbilled
revenues increased from 288 days at the end of FY2016 to 330 days
at the end of 9MFY2017 and the net working capital intensity has
increased from 34% at the end of FY2016 to 40% at the end of
9MFY2017.Stretched liquidity position has resulted in the
irregularities in debt servicing with overdrawal of cash credit
facility for more than 30 days during February, 2017 and Letter
of Credit issued during December, 2016 overdue for more than 30
days from the date of devolvement. There has been significant
deterioration in VNC's credit profile as reflected by TOL/TNW of
5.4 times and Debt/OPBDIT of 8.91 times respectively at the end
of 9MFY2017. Further, VNCPL has written-off INR51 crore of long
pending receivables, unbilled revenues and advances during
FY2016. As a result of slower execution, increase in job work
charges and write-off of long pending receivables etc, coupled
with high interest costs, the company posted net losses to the
extent of INR68.19 crore during FY2016.

The promoters of VNCPL have strong experience in execution of
contracts spread over diverse segments like civil infrastructure,
roads, railways, industrial infrastructure and long track record,
reflected in repeat orders from numerous customers. The order
book of VNCPL is diversified with presence in multiple segments-
Railways (33%) , Civil (28%), roads (20%) accounting for major
portion of the order book as on December 31, 2016.

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

Vijay Nirman Company Private Limited (VNCPL) was incorporated by
first generation entrepreneur Dr. S Vijaya Kumar in 1994. The
company started with industrial infrastructure, marine works and
piling contracts in Visakhapatnam and then ventured into other
segments like construction of residential and commercial
buildings, road and railway based structures. The company is a
special status contractor for various government organizations
and has executed works for large sized private companies. The
interest and taxes company has its administrative office in
Visakhapatnam and has set up branch offices in Bangalore,
Hyderabad, NOIDA and Nagpur.



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


TOSHIBA CORP: Western Digital Makes Case for Chip Unit Bid
----------------------------------------------------------
Bloomberg News reports that Western Digital Corp. is making a
forceful case for its bid to take control of Toshiba Corp.'s
memory-chip business amid a fierce bidding war.

The San Jose, California-based company is in talks with state-
backed investment funds Innovation Network Corp. of Japan and
Development Bank of Japan Inc. about options for a bid, said Mark
Long, Western Digital's chief financial officer, during an
interview in Tokyo, Bloomberg relates.  Mr. Long also suggested
his company has held discussions with Apple Inc., the report
says.

According to the report, Western Digital became Toshiba's
manufacturing partner in the flash-memory business when it
acquired SanDisk Corp. for $15.8 billion last year. That
investment is now under threat after Toshiba narrowed the list of
contenders to a group that includes Western Digital's rivals,
including Taiwan's Hon Hai Precision Industry Co., South Korea's
SK Hynix Inc. and chipmaker Broadcom Ltd., Bloomberg News says.
Toshiba should negotiate with Western Digital first, Mr. Long, as
cited by Bloomberg, said.

"We think very differently, our priorities, first and foremost
are focused on the joint venture remaining competitive," said
Mr. Long, who was in Japan on April 20 for meetings, Bloomberg
relays.

Apple, which uses memory chips in iPhones and other devices, is
said to be among the potential investors, in Toshiba, Bloomberg
News notes. Asked about whether Western Digital has talked with
Apple about getting its backing, Mr. Long said his company has
"had conversations with almost everyone" involved in the process,
according to Bloomberg.

Bloomberg says Toshiba is aiming to complete the sale of the
chips unit by March 2018 to raise much-needed cash. The potential
offers, which are non-binding at this point, have come in at
about JPY2 trillion ($18.3 billion), with Hon Hai indicating its
willingness to pay as much as JPY3 trillion, Bloomberg has
reported. While the large size of the deal has made it necessary
for bidders to seek partners to ease the financial burden,
participation by Japanese companies may be key to regulatory
approval.

"While others are working through a process, we have a clearer
picture of what the business should be valued at and how to think
about other things that affect value," the report quotes Mr. Long
as saying. "We have lots of different ways to participate in the
solution than other players. It's more complicated than a single
number."

Western Digital raised its objections to the sale in a letter
from Chief Executive Officer Steve Milligan to Toshiba's board
members on April 9, Bloomberg discloses. He argued that the
rumored bidders were unsuitable and the reported prices offered
were above the fair and supportable value of the chip business.
Bloomberg adds that the CEO's letter cautioned in particular
against accepting a bid from Broadcom, which has led the wave of
consolidation in the chip industry over the past two years.

"We know that their situation is extremely stressful,
challenging," Mr. Long said, referring to Toshiba. "We do want
them to understand that we want to help provide a good solution.
We have to make sure that at a minimum it doesn't hurt us."

Toshiba disagrees with the assertion that a sale would violate
the agreement between the two companies; the Japanese company
plans to respond with a letter of its own, but has other options
if the issue isn't resolved, a Toshiba executive said, Bloomberg
relays.

Mr. Long said that Western Digital has had a "great dialog" with
INCJ and DBJ. A Toshiba executive indicated last month that the
company would welcome a bid from the state-backed investors. The
Yomiuri newspaper reported that INCJ and DBJ were considering a
joint bid to take more than a 30 percent stake, Bloomberg says.

"They are definitely part of the deliberative process that's
thinking about the long-term solution, their concerns and their
goals are probably the easiest for us to relate to," Mr. Long
said of the two Japanese investors.

Bloomberg notes that Toshiba is selling assets to contend with
enormous writedowns in its Westinghouse nuclear business,
stemming from cost over-runs and construction project delays. The
Japanese company put Westinghouse into Chapter 11 bankruptcy
protection and said it may book a loss of as much as JPY1.01
trillion for the year that ended in March.

Aside from the legality of the sale, Western Digital may struggle
to match rival bids, Bloomberg notes. The purchase of SanDisk has
strained the company's balance sheet, leaving it with net debt of
$8.9 billion as of December. In January, Western Digital said it
had cash and cash equivalents of $5.2 billion. The company said
in January it had "liquidity available" totaling $6.2 billion.

The CFO said Western Digital is considering various options for
paying for the business, including preferred shares, adds
Bloomberg.

                          About Toshiba

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 30, 2016, Moody's Japan K.K. downgraded Toshiba
Corporation's corporate family rating (CFR) and senior unsecured
rating to 'Caa1' from 'B3'.  Moody's has also downgraded
Toshiba's subordinated debt rating to 'Ca' from 'Caa3', and
affirmed its commercial paper rating of Not Prime.  At the same
time, Moody's has placed Toshiba's 'Caa1' CFR and long-term
senior unsecured bond rating, as well as its 'Ca' subordinated
debt rating under review for further downgrade.

The TCR-AP reported on March 21, 2017, that S&P Global Ratings
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
====================


FOREX BROKERS: Owes More Than NZ$10 Million, Liquidators Say
------------------------------------------------------------
The New Zealand Herald reports that expected losses from a
collapsed Queen St foreign exchange broker have grown
considerably as it was revealed the company owes creditors more
than NZ$10 million.

The state of Forex Brokers was disclosed by liquidators who also
said assets of the company appeared insufficient to repay
creditors even half a cent in the dollar, according to the
Herald.

Two creditors of the company collectively owed around NZ$300,000
and spoken to by the Herald said they had started to experience
delays in transmitting payments through the company since
November last year, but that escalated into non-payments in
March and April.

"He was blaming it on banks -- saying it was a bank error -- he
told me not to worry. 'I'm changing banks in the New Year, I'll
get it sorted'," one said of Forex Brokers' managing director
Russell Maher, the Herald relays.

"It got worse and worse. And the next thing was we've got no
payments: And no one was answering the phones in the office,"
another said.

The losses were painful, the creditors said: "We'll cope with it.
We've basically traded a year for nothing. We're lucky we're big
enough to cope," the Herald relays.

Maher appointed PFK as liquidators on April 11, and the first
administrators' report was due to be published April 19. PKF's
Chris McCullagh said while liabilities were still to be confirmed
they were substantial and exceeded NZ$10 million, the Herald
reports.

Assets of the company, primarily around NZ$10,000 in cash and a
car, were likely worth NZ$40,000, he said, adds the Herald.

Auckland-based Forex Brokers was established in 1995 and had an
office in the Dingwall Building on Auckland's Queen Street.

PKF Corporate Recovery & Insolvency was appointed as liquidator
of the company on April 11.


MARMALADE AUDIO: Owes NZ$183,000, Liquidators Report Show
---------------------------------------------------------
Jonathan Underhill at BusinessDesk reports that Marmalade Audio,
the Wellington music and post-production studio whose output
included Dave Dobbyn's 1986 hit with Herbs Slice of Heaven and
Telecom's Spot the Dog campaign, failed owing just NZ$183,000,
the liquidators' first report showed.

Marmalade ceased trading in 2016 and was put into liquidation
last month, BusinessDesk discloses. According to the report,
shareholder and director Sarah Taylor, who took over the business
in 2007 after her father Grant Taylor died, told the liquidators
that the company was unable to pay its debts after the loss of a
number of key clients. A former employee recalls equipment being
sold on Trade Me while a swag of framed awards - for both music
and advertising - went in a skip, the report says.

Creditors include Marmalade's landlord, the Accident Compensation
Corp, ASB Bank and the Inland Revenue Department, BusinessDesk
discloses.

BusinessDesk notes that the liquidation brings the curtain down
on one of New Zealand's most notable studios. Set up by DJ Rocky
Douche, a former NZ broadcasting Corporation technician,
Marmalade Studios, as it was then known, went on to record music
for Shona Laing, Sharon O'Neill, Dave Dobbyn, Shihad, Fur Patrol,
Bic Runga, the Bats, Bailter Space, Netherworld Dancing Toys,
Greg Johnson Set, the Holidaymakers, Margaret Urlich, Jan
Hellriegel and Annie Crummer, mostly during its heyday in the
1970s and 1980s.

Liquidators Colin Owens and David Vance of Deloitte said they
were continuing their investigations into the Marmalade's
financial affairs using company records, BusinessDesk adds.



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


CAP GENERAL: In Liquidation; Claims Deadline Set for Sept. 1
------------------------------------------------------------
Philippine Daily Inquirer reports that the Insurance Commission
has approved the liquidation of a company that formed part of the
troubled CAP group of companies.

In a notice, Insurance Commissioner Dennis B. Funa said the
insurance regulator on Feb. 14 appointed lawyer Rhodela Virginia
V. Garcia as liquidator of CAP General Insurance Corp., the
Inquirer relates.

Parties having claims against the company are urged to file their
claims under oath with the liquidator not later than 180 days
from March 5 or until Sept. 1, 2017 either personally or by mail
directly to the liquidator's address, care of the Insurance
Commission, according to the Inquirer.  The filing should be
supported by documents detailing the character, basis and amount
of each and every claim.

"Claims filed after Sept. 1, 2017 shall be barred forever and
shall not be allowed to participate in any manner whatsoever in
any kind of disposition, partition, distribution, or settlement
in the liquidation proceedings against the above-mentioned
insurance company. Hence all claimants are reminded to file their
claims on time," Mr. Funa said.

Mr. Funa said the Insurance Commission earlier placed the company
under conservatorship and receivership for cause, the Inquirer
relays.

The firm was issued a cease and desist order in August 2014.

CAP General Insurance Corp. offers insurance services for both
private and commercial motor vehicles, fire/ property,
contractor's all risks, aviation, marine, electronic equipment,
golfer's, personal accident and comprehensive general liability.



                             *********

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

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

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


                            *********


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

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

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

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

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



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