TCRAP_Public/170609.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Friday, June 9, 2017, Vol. 20, No. 114

                            Headlines


A U S T R A L I A

ALLIANZ METRO: Contempt Charges Issued as ASIC Probe Continues
ASPHALT MAN: Second Creditors' Meeting Set for June 20
CHIDLEY HOLDINGS: Clifton Hall Appointed as Liquidators
GROUP UNDERWRITERS: Unable to File Reports; ASIC Cancels License
ICE BOX: First Creditors' Meeting Scheduled for June 15

MACRO GROUP: ASIC Seeks to Appoint Liquidators to 19 Assoc. Cos.
MOSCOU HOLDINGS: First Creditors' Meeting Set for June 16
PASSIONE TOSCANA: First Creditors' Meeting Set for June 14
UTICA HOLDINGS: In Liquidation; First Meeting Set for June 16


I N D I A

ABACUS: CRISIL Downgrades Rating on INR3.10MM Cash Loan to 'B'
ADPRO CERAMICS: CRISIL Cuts Rating on INR2.75MM Cash Loan to B
AGGARWAL INDUSTRIES: CRISIL Cuts Rating on INR7.5MM Loan to 'B'
AL AMMAR: CRISIL Lowers Rating on INR9.5MM Term Loan to 'B'
AMIT CAPACITORS: CRISIL Cuts Rating on INR10MM Cash Loan to 'B'

AURO SUNDRAM: CRISIL Assigns 'B' Rating to INR30MM Cash Loan
BHAVESH GINNING: CRISIL Reaffirms 'B' Rating on INR8MM Cash Loan
BMW ENTERPRISES: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
BUXA DOOARS: CRISIL Lowers Rating on INR4MM Cash Loan to 'D'
DARON ENGINEERING: Ind-Ra Lowers Long-Term Issuer Rating to 'D'

FRESH CHICKEN: CRISIL Assigns B+ Rating to INR3.25MM LT Loan
G.S. ALLOY: CRISIL Reaffirms 'B' Rating on INR5.0MM Cash Loan
GANGAPUR CITY: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
GLOBSYN TECHNOLOGIES: CRISIL Cuts Rating on INR8.4MM Loan to B
HARIYANA SHIP: CRISIL Reaffirms B+ Rating on INR400MM Loan

HERITAGE LIFESTYLES: Ind-Ra Puts 'BB' Rating to Non-cooperating
HINDAUN CITY: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
JOYFUL PLASTICS: Ind-Ra Migrates 'BB-' Rating to Non-Cooperating
LANCY CONSTRUCTIONS: CRISIL Cuts Rating on INR13MM Loan to D
M. E. ENERGY: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan

MAGNEWIN ENERGY: CRISIL Reaffirms 'D' Rating on INR1.68MM Loan
MANIPAL ENERGY: CRISIL Lowers Rating on INR5MM Loan to 'B'
MEGASOFT LTD: Ind-Ra Migrates 'B+' Rating to Non-Cooperating
PADDINGTON RESORTS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
QUEST INFOSYS: Ind-Ra Migrates 'B' Rating to Non-Cooperating

RELIANCE COMM: Rejects Moody's, Fitch's Rating Downgrades
S. K. MASALA: CRISIL Assigns B+ Rating to INR5.6MM Cash Loan
SAMRAT VIJAY: CRISIL Lowers Rating on INR19.85MM Demand Loan to D
SATYA WAREHOUSE: CRISIL Reaffirms D Rating on INR12.5MM Term Loan
SAVORIT LIMITED: CRISIL Assigns B+ Rating to INR3.9MM Term Loan

SHAARC PROJECTS: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
SHREE BHATTER: CRISIL Lowers Rating on INR7MM Cash Loan to 'D'
SHREE VAISHNAV: CRISIL Reaffirms 'D' Rating on INR31.27MM Loan
SHREYAS ENTERPRISES: CRISIL Reaffirms B+ Rating on INR9.25MM Loan
SHREYAS SORTEX: CRISIL Raises Rating on INR25MM Cash Loan to BB-

SREE DURGA: CRISIL Lowers Rating on INR2MM Cash Loan to 'B'
SREE SHANMUGA: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
SREE VEERA: CRISIL Reaffirms B- Rating on INR6.5MM Cash Loan
SRI LAKSHMI: CRISIL Reaffirms B+ Rating on INR7MM Loan
SRI SAINADH: CRISIL Reaffirms B+ Rating on INR6MM Cash Loan

STRANDS TEXTILE: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
SUBASREE JEWELLERS: CRISIL Assigns B- Rating to INR2.29MM Loan
SUNDARAM MAHADEO: CRISIL Reaffirms 'B' Rating on INR4.5MM Loan
SWASTIK PANELS: CRISIL Reaffirms 'B' Rating on INR3MM Cash Loan
THIRUMATHI MUTHAMMAL: CRISIL Cuts Rating on INR4.88MM Loan to B

TITAN ANTONY: CRISIL Assigns B+ Rating to INR5.0MM Term Loan
TRANSNATIONAL: CRISIL Cuts Rating on INR2.5MM Cash Loan to 'B'
TRISTAR GLOBAL: CRISIL Reaffirms D Rating on INR15.5MM Loan
VGN DEVELOPERS: CRISIL Downgrades Rating on INR400MM Loan to D
VOORA SHREERAM: CRISIL Lowers Rating on INR8MM Cash Loan to 'B'

WAGAD INFRAPROJECTS: CRISIL Cuts Rating on INR10MM Loan to 'B'
YAZDANI STEEL: Ind-Ra Assigns 'D' Long-Term Issuer Rating


J A P A N

JAPAN DISPLAY: Mulls Deeper Overhaul, Capital Tie-up with a Peer
TOSHIBA CORP: Aims to Name Winning Bidder for Chip Unit Next Week


N E W  Z E A L A N D

PROPERTY VENTURES: Liquidator Must Put Up Security of Costs


P H I L I P P I N E S

* PDIC Raises PHP13.7M from Public Bidding of Closed Banks Assets


S O U T H  K O R E A

UIJEONGBU LIGHT: Seoul Court Declares Firm Officially Bankrupt


                            - - - - -


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


ALLIANZ METRO: Contempt Charges Issued as ASIC Probe Continues
--------------------------------------------------------------
The Australian Securities and Investments Commission has issued
an application for contempt charges arising out of proceedings
commenced against Allianz Metro Pty Ltd and other entities
concerning the operation of binary trading websites.

On May 1, 2016, ASIC commenced Federal Court proceedings against
various entities including Eustace Senese; his son, Cameron
Senese; and associated companies Allianz Metro Pty Ltd, Transcomm
Global Pty Ltd and Bianco Pty Ltd, in relation to the websites
www.titantrade.com and https://tradettn.com.

On July 26, 2016, the Court made freezing orders prohibiting
those defendants from dealing with their assets.

ASIC alleges that those defendants and Melbourne-based law firm,
Kalus Kenny Intelex (Kalus Kenny), the former solicitors for some
of the defendants, have breached the freezing orders by
wrongfully dealing with assets.

The matter returns to court on Aug. 31, 2017, for further
directions.

ASIC applied for the freezing orders under sections 1323 and 1324
of the Corporations Act 2001 after identifying that Australian
users of the Titantrade websites had deposited funds into an
Australian bank account owned by Allianz Metro Pty Ltd. The
orders are designed to protect "aggrieved persons" and the frozen
funds may be drawn upon if the Court determines that the
defendants are liable to pay money or damages.

On various occasions since July 2016, the Court has allowed the
defendants to use some of the frozen funds to cover living and
legal expenses.

In the contempt application, ASIC alleges that certain defendants
and Kalus Kenny have breached an order that stated the first to
eleventh defendants "be prohibited from selling, transferring,
encumbering, disposing of or otherwise dealing with any assets or
property".

Kalus Kenny was retained by nine of the eleven defendants in
ASIC's proceeding, however, since May 2, 2017, the firm only acts
on behalf of the defendants IMC Holdings Pty Ltd and Yoav Ida.

Subsequent to the freezing orders made in July 2016, ASIC issued
a Public Warning Notice on August 4, 2016, in relation to
Titantrade.


ASPHALT MAN: Second Creditors' Meeting Set for June 20
------------------------------------------------------
A second meeting of creditors in the proceedings of The Asphalt
Man Pty. Limited has been set for June 20, 2017, at 11:00 a.m. at
the offices of PKF, 755 Hunter Street, in Newcastle, West New
South Wales.

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 June 19, 2017, at 4:00 p.m.

Simon Thorn of PKF was appointed as administrator of Asphalt Man
on May 16, 2017.


CHIDLEY HOLDINGS: Clifton Hall Appointed as Liquidators
-------------------------------------------------------
Mark Hall of Clifton Hall was appointed Liquidator of Chidley
Holdings Pty Ltd on June 7, 2017 by Order of the Federal Court of
Australia.


GROUP UNDERWRITERS: Unable to File Reports; ASIC Cancels License
----------------------------------------------------------------
The Australian Securities and Investments Commission has
cancelled the Australian financial services (AFS) licence of
Sydney-based Group Underwriters & Managers Pty Ltd (GUM) for
failing to lodge financial statements and auditor reports.
GUM's AFS license has been suspended since November 2016 for
failing to meet its financial services licensee obligations for
consecutive years. After not lodging the financial statements and
auditor reports during the suspension period, ASIC cancelled
GUM's AFS licence on May 15, 2017.

ASIC first suspended GUM's license on Nov. 16, 2016, for a period
of three months, for failing to lodge financial reports and audit
reports for the financial years ended June 30, 2013, June 30,
2014 and June 30, 2015.

The license was further suspended on February 15, 2017, and again
on March 20, 2017, giving GUM an opportunity to address the
outstanding lodgements for June 30, 2014 and June 30, 2015, as
the June 30, 2013 lodgement had been complied with.

Following GUM's failure to the lodge the outstanding financial
statements and auditor reports for June 30, 2014 and June 30,
2015, its License was cancelled.

ASIC Deputy Chair Peter Kell said, 'Licensees are required to
lodge financial statements and auditor reports with ASIC to
demonstrate their capacity to provide financial services.'

'Failure to comply with reporting obligations can be an indicator
of a poor compliance culture. ASIC won't hesitate to act against
licensees who do not meet these important requirements.'

GUM have the right to appeal to the Administrative Appeals
Tribunal for a review of ASIC's decision.

GUM provides general financial product advice only for general
insurance and life insurance products and has held its Australian
financial services licence since June 2012.

The annual lodgment of audited accounts is an important part of a
licensee demonstrating it has adequate financial resources to
provide the services covered by its license and to conduct the
business in compliance with the Corporations Act 2001.

ASIC will continue to contact AFS licensees who have not lodged
audited financial statements and take appropriate action if they
fail to lodge these statements.

The cancellation of GUM's license is part of ASIC's ongoing
efforts to improve standards across the financial services
industry.


ICE BOX: First Creditors' Meeting Scheduled for June 15
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Ice Box
Refrigerated Couriers Pty Ltd will be held at the offices of
Greengate Advisory, Suite 20, Level 1, 330 Wattle Street, in
Ultimo, NSW, on June 15, 2017, at 11:00 a.m.

Patrick Loi of Greengate Advisory NSW was appointed as
administrator of Ice Box on June 7, 2017.


MACRO GROUP: ASIC Seeks to Appoint Liquidators to 19 Assoc. Cos.
----------------------------------------------------------------
The Australian Securities and Investments Commission has applied
to the Federal Court of Australia for the appointment of
liquidators to 19 'special purpose vehicle' companies associated
with the Macro Group, all of which have Desiree Veronica
Macpherson as a director. These are:

    AGKM Green Pty Ltd;
    BA Sullivan Pty Ltd;
    Christians Holdings WA Pty Ltd;
    Ferrous Ferric Pty Ltd;
    Macpherson Realty Options Pty Ltd;
    Splendiferous Enterprises Pty Ltd;
    Aiple Enterprises Pty Ltd;
    Brayst WA Pty Ltd;
    Chippere Pty Ltd;
    EDWA14 WA Pty Ltd;
    MCKST Pty Ltd;
    Newkins WA Pty Ltd;
    Kurst WA Pty Ltd;
    MacOften Pty Ltd;
    MRF Kurra Pty Ltd;
    Dee Vee Enterprises Pty Ltd;
    Hedland Projects Pty Ltd;
    Macro Projects TS PH Pty Ltd; and
    Prime Holdings Group Pty Ltd.

ASIC alleges that the 'special purpose vehicle' companies are
connected with fundraising efforts for property developments
associated with the Macro Group, including The Newman Estate.

ASIC alleges in its application for the appointment of
liquidators that:

  * the companies have been involved in multiple contraventions
    of corporations legislation and are not complying with their
    obligations under that legislation; and

  * the companies are not being properly managed and are
    suspected to be insolvent.

ASIC seeks orders from the Court appointing Mr. Hayden White and
Mr. Matthew Woods of KPMG as liquidators of the companies.

ASIC's application has been listed for hearing in the Federal
Court of Australia at Perth on Tuesday, July 18, 2017.

ASIC had previously obtained orders appointing Mr. White and
Mr. Woods as liquidators of six central companies within the
Macro Group, being:

    Macro Realty Developments Pty Ltd;
    Macro Realty Developments AFSL Pty Ltd;
    Macro All State Investments and Securities Ltd;
    Pilbara Property Developments Pty Ltd;
    Macro Realty Pty Ltd, and
    511 GTN Pty Ltd (refer: 17-161MR).

The orders are sought as part of ASIC's ongoing investigation
into a number of land developments in the Pilbara region of
Western Australia, particularly one known as 'The Newman Estate'
that was subject to ASIC action and Federal Court permanent
restraint orders in May 2016.


MOSCOU HOLDINGS: First Creditors' Meeting Set for June 16
---------------------------------------------------------
A first meeting of the creditors in the proceedings of
Moscou Holdings Pty Ltd, as trustee for The Penguin Trust
formerly trading as Penguin International, will be held at the
Conference Room, Plaza Level, BGC Centre, 28 The Esplanade, in
Perth, WA, on June 16, 2017, at 2:00 p.m.

Clifford Stuart Rocke and Jeremy Joseph Nipps of Cor Cordis were
appointed as administrators of Moscou Holdings on June 6, 2017.


PASSIONE TOSCANA: First Creditors' Meeting Set for June 14
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Passione
Toscana Pty Ltd, trading as Davvero Caffe, will be held at the
offices of Worrells Solvency & Forensic Accountants, Level 3, 15
Ogilvie Road, in Mount Pleasant, WA, on June 14, 2017, at
10:30 a.m.

Mervyn Jonathan Kitay -- mervyn.kitay@worrells.net.au -- of
Worrells was appointed as administrator of Passione Toscana on
June 6, 2017.


UTICA HOLDINGS: In Liquidation; First Meeting Set for June 16
-------------------------------------------------------------
Timothy Clifton and Simon Miller of Clifton Hall were appointed
as Joint and Several Liquidators of Utica Holdings Pty Ltd,
formerly trading as Imperial Digital Video Systems, on June 6,
2017.

A meeting of creditors will be held at 10:30 a.m. on June 16,
2017 at Clifton Hall, Level 3, 431 King William Street, in
Adelaide.



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


ABACUS: CRISIL Downgrades Rating on INR3.10MM Cash Loan to 'B'
--------------------------------------------------------------
CRISIL has been consistently following up with Abacus for
obtaining information through letters and emails dated
January 19, 2017, and February 9, 2017, among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         1.1       CRISIL A4 (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Cash Credit            1.55      CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL B+/Stable')

   Proposed Cash          3.10      CRISIL B/Stable (Issuer Not
    Credit Limit                    Cooperating; Downgraded
                                    from 'CRISIL B+/Stable')

   Term Loan              2.35      CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Abacus.This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
Abacus is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL B' category
or lower. Based on the last available information, CRISIL has
downgraded the rating at 'CRISIL B/Stable/CRISIL A4'.

Set up in 2009 as a partnership firm, Abacus currently runs 16
retail outlets of ready-made garments in Utter Pradesh. It sells
clothes for men and women manufactured by United Colors of
Benetton and Arvind Ltd. Mr. Sunit Mishra and his wife, Ms.
Kalpana Mishra, are partners in the firm.


ADPRO CERAMICS: CRISIL Cuts Rating on INR2.75MM Cash Loan to B
--------------------------------------------------------------
CRISIL has been consistently following up with Adpro Ceramics
India Private Limited (ACIPL) for obtaining information through
letters and emails dated January 19, 2017, and February 9, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee        0.25       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

   Bill Purchase         2.00       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

   Cash Credit           2.75       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

   Letter of Credit      1.20       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

   Term Loan             0.80       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Adpro Ceramics India Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Adpro Ceramics India Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has downgraded the long term rating at 'CRISIL B/Stable' &
Reaffirmed short term rating 'CRISIL A4'.

Established in 2006 by Mr. Manish Jalan and his mother Smt. Sita
Devi Jalan, ACIPL manufactures transmission line and substation
equipments such as post insulator, disc insulator, pin insulator,
and transformer bushing. The manufacturing facility is in Jaipur.


AGGARWAL INDUSTRIES: CRISIL Cuts Rating on INR7.5MM Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Aggarwal
Industries (AI) for obtaining information through letters and
emails dated January 19, 2017, and February 9, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            7.5       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Aggarwal Industries. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Aggarwal Industries. is consistent with
'Scenario 1' outlined in the 'Framework for Assessing Consistency
of Information with CRISIL B' category or lower. Based on the
last available information, CRISIL has downgraded the rating at
'CRISIL B/Stable'.

AI, a partnership firm set up in 1977, by Mr. Suresh Jain and Mr.
Sudesh Jain, trades in writing and printing paper.


AL AMMAR: CRISIL Lowers Rating on INR9.5MM Term Loan to 'B'
-----------------------------------------------------------
CRISIL has been consistently following up with Al Ammar Frozen
Foods Exports Pvt. Ltd (AFEPL) for obtaining information through
letters and emails dated January 19, 2017, and February 9, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan              9.5       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Al Ammar Frozen Foods Exports
Pvt. Ltd. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Al Ammar Frozen Foods Exports
Pvt. Ltd is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has downgraded the rating at 'CRISIL B/Stable'.

AFEPL, incorporated in June 2014, is in the process of setting up
a buffalo meat processing unit for the export market. The plant
in Aligarh (Uttar Pradesh) is expected to commence operations by
March 2016. The company is promoted by Mr. Mohammad Atif and Mr.
Asif Qureshi.


AMIT CAPACITORS: CRISIL Cuts Rating on INR10MM Cash Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Amit Capacitors
Limited (ACL) for obtaining information through letters and
emails dated January 19, 2017, and February 9, 2017, among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bill Discounting       1.5       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

   Cash Credit           10.0       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

   Letter of Credit       6.0       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Amit Capacitors Limited. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Amit Capacitors Limited is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL B' category or lower.
Based on the last available information, CRISIL has downgraded
the rating at 'CRISIL B/Stable/CRISIL A4'.

ACL was incorporated in 1982, promoted by Mr. Ashok Kumar
Tibrewala. The company manufactures electric capacitors that are
used in the electronics, electrical, and agricultural industries.
It sells products under the Concap and Amcap brands.
Manufacturing facilities are in Hyderabad and Goa.


AURO SUNDRAM: CRISIL Assigns 'B' Rating to INR30MM Cash Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Auro Sundram International Private Limited
(ASIL).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             30       CRISIL B/Stable

The rating reflects the company's exposure to start-up nature of
operations and to project implementation-related risks, and
expected average financial risk profile because of debt-funded
project. These weaknesses are partially offset by the experience
of its promoters and their funding support.
Analytical Approach

Unsecured loans of INR1.19 crore (as on March 31, 2017) from
promoters have been treated as neither debt nor equity since
these are subordinated to bank debt and are expected to remain in
the business.

Key Rating Drivers & Detailed Description

Weaknesses

* Start-up phase: Since maize trading activity began in May 2017,
revenue is expected to be INR70-90 crore during fiscal 2018,
resulting in small scale of operations in a competitive industry.

* Expected average financial risk profile: Total outside
liabilities to tangible networth ratio is likely to remain at
0.5-1.5 times over the medium term, while networth is estimated
at INR19.5 crore as on March 31, 2017. However, interest coverage
ratio is expected to be weak at 1.3 times as on March 31, 2018.

* Exposure to implementation risk: The company is setting up a
unit to manufacture maize starch and liquid glucose at a total
cost of INR200 crore, which is being funded through a mix of
share capital and unsecured loans. The unit is likely to commence
operations from fiscal 2021. However, only 15-20% of work has
been completed till date.

Strengths

* Experience of promoters and their funding support: The
promoters have been in the maize industry for a decade and are
also diversifying revenue profile by setting up a maize starch
powder and liquid glucose facility. Also, till March 31, 2017,
promoters had infused equity of INR17.85 crore and extended
unsecured loans of INR1.19 crore. They are expected to continue
to extend need-based financial aid.

Outlook: Stable

CRISIL believes ASIL will benefit over the medium term from its
promoters' funding support. The outlook may be revised to
'Positive' in case of higher-than-expected cash accrual and
efficient working capital management, or if project is
commissioned on time and unit demonstrates substantial capacity
utilisation, leading to higher scale of operations. The outlook
may be revised to 'Negative' if significant cost or time overrun
in project execution or delays in stabilising operations weakens
debt-servicing ability.

Incorporated in November 2006 and promoted by Mr. Anil Kumar
Choudhary and his brother Mr. Ashok Kumar Choudhary, ASIL is
setting up a starch and liquid glucose manufacturing facility in
Forbesganj, Bihar. Currently, the company trades in maize.


BHAVESH GINNING: CRISIL Reaffirms 'B' Rating on INR8MM Cash Loan
----------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility
of Bhavesh Ginning Industries (BGI) at 'CRISIL B/Stable'. The
rating reflects a modest scale of operations in the highly
fragmented cotton ginning industry, and vulnerability to changes
in cotton prices. These rating weaknesses are partially offset by
the extensive industry experience of the partners.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             8        CRISIL B/Stable (Reaffirmed)

Analytical Approach

For arriving at the rating, CRISIL has treated unsecured loans
from the partners as neither debt nor equity,as the loans are at
a lower-than-the-market interest rate and should remain in the
business over the medium term.

Key Rating Drivers & Detailed Description

Strengths

* Small scale of operations in a highly fragmented industry
Entry barriers are low on account of limited capital and
technology requirement and low differentiation in end products.
Furthermore, fragmentation limits the pricing and bargaining
power, leading to subdued profitability. That's reflected in the
firm's operating margin of around 1.98% estimated for fiscal
2017.

* Vulnerability to changes in cotton prices
As cotton is an agricultural commodity, its availability is
highly dependent on the monsoon. Furthermore, government
interventions and fluctuations in global cotton output have
resulted in sharp fluctuations in cotton prices. Finished cotton
prices declined and have remained volatile. Such fluctuations are
likely to impact the margins of cotton ginners. An ability to
manage volatility in cotton prices will remain a key sensitivity
factor.

Strengths

* Extensive industry experience of the partners
The partners have an experience of more than 15 years in the
cotton ginning industry. This has enabled them to understand the
dynamics of the local market, and established relationships with
customers and suppliers.

Outlook: Stable

CRISIL believes BGI will continue to benefit from the extensive
industry experience ofits partners. The outlook may be revised to
'Positive' in case of substantial revenue along with improved
profitability and capital structure. The outlook may be revised
to 'Negative' if there is a considerable decline in revenue and
profitability, deterioration in working capital management, or
large, debt-funded capital expenditure, weakening the financial
risk profile, particularly liquidity.

BGI was established as a partnership firm in 2005. Its operations
are managed by MrAnandgiri Swami and his family. The firm has an
installed capacity of 200 bales per day for ginning and pressing
cotton in Patan, Gujarat.

In fiscal 2017, net profit was INR0.14crore on operating income
of INR22.25crore, against INR0.19crore and INR36.15crore,
respectively, in fiscal 2016.


BMW ENTERPRISES: Ind-Ra Affirms 'BB' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed BMW Enterprises'
(BMWE) Long-Term Issuer Rating at 'IND BB'.  The Outlook is
Stable.  The instrument-wise rating actions are:

   -- INR420 mil. Fund-based limits affirmed with 'IND BB/Stable'
      rating; and

   -- INR20 mil. Non-fund based limits affirmed with 'IND A4+'
      rating

                         KEY RATING DRIVERS

The ratings continue to reflect BMWE's moderate credit profile,
despite it being the sole project distributor of Tata Steel
Limited's ('IND AA'/RWE) thermo-mechanically treated (TMT) bars
in Bihar, due to the trading nature of operations.  Provisional
results for FY17 indicate around 5% yoy decline in the revenue to
INR2.2 billion (FY16: down 7% yoy) due to a continued fall in
realizations of TMT bars even as the volumes increased.  However,
the profitability and credit metrics for FY17 are likely to have
remained stable at FY16 levels.  EBITDA margins increased to 3.5%
in FY16 (FY15: 2.8%) due to higher volumes, leading to EBITDA
interest coverage increasing to 1.6x (1.5x) and net leverage
reducing to 5.5x (6.1x).

The entity's overall liquidity position is moderate.  While the
utilization of the channel finance facilities was nearly full,
the utilization of the cash credit limits was low as the latter
carries a higher interest rate.  Cash flow from operations turned
positive in FY16 (INR9.3 million), due to an increase in EBITDA.

The ratings remain constrained by the proprietorship nature of
the organization.

The ratings, however, continue to benefit from the support
extended by the BMW Group in the form of unsecured loans (FYE16:
INR27 million) and a letter of comfort provided by the group's
flagship entity BMW Ventures Ltd, which is under the same
management and operates in the same line of business as BMWE.
Also, BMWE's management has a two-decade-long experience in the
steel industry.

                       RATING SENSITIVITIES

Positive: A sustained improvement in its liquidity and EBITDA
interest coverage could lead to a positive rating action.

Negative: Sustained deterioration in the EBITDA interest coverage
could lead to a negative rating action.

COMPANY PROFILE

Started in 2005, BMWE has a corporate office in Kolkata and
registered office in Patna.  It has a 35,000 sf stock yard and
60MT capacity weigh bridge in Patna.  Its proprietor is Jai
Basukinath Traders Private Limited, which has been a consignment
agent for Tata Steel for two decades.


BUXA DOOARS: CRISIL Lowers Rating on INR4MM Cash Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of The
Buxa Dooars Tea Co. India Limited (TBD) to 'CRISIL D/CRISIL D '
from 'CRISIL B-/Stable/CRISIL A4'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          1        CRISIL D (Downgraded from
                                    'CRISIL A4')

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

   Cash Credit & Working   1.2      CRISIL D (Downgraded from
   Capital demand loan              'CRISIL B-/Stable')

   Proposed Cash Credit    2.0      CRISIL D (Downgraded from
   Limit                            'CRISIL B-/Stable')

   Proposed Long Term      3.0      CRISIL D (Downgraded from
   Bank Loan Facility               'CRISIL B-/Stable')

   Term Loan               5.8      CRISIL D (Downgraded from
                                    'CRISIL B-/Stable')

The downgrade reflects the company's irregular interest payment
on its term loan and cash credit facility, and delay in meeting
principal obligation.

Key Rating Drivers & Detailed Description

Weakness

* Delays in servicing debt because of stretched liquidity
Weak liquidity because of low accrual and large working capital
debt has resulted in the company delaying its debt obligation.

Strengths

* Experience of promoter in tea industry: The experience of
promoter, Mr. Roshanlal Agarwala, in the tea industry helped the
company acquire the tea gardens of Raimatang and Kalchini near
Siliguri in West Bengal. The promoter has provided need-based
financial support through group company Mars Plywood Industries
Pvt Ltd. Through rigorous re-plantation of tea bushes, he has
scaled up TBD's operations.

TBD, incorporated in 1975, owns two tea gardens, Raimatang and
Kalchini, near Siliguri. The operations are managed by Mr.
Roshanlal Agarwal.

Profit after tax was INR0.30 crore against revenue of INR20.93
crore in fiscal 2016, against INR0.13 crore and INR21.54 crore,
respectively, in fiscal 2015.


DARON ENGINEERING: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Daron
Engineering Private Limited's (DEPL) Long-Term Issuer Rating to
'IND D' from 'IND B-'.  The Outlook was Stable.  The instrument-
wise rating actions are:

   -- INR59.4 mil. (increased from INR35) Term loans (Long term)
      lowered to 'IND D' rating'; and

   -- INR20.0 mil. Fund-based facilities (Long term/ Short term)
      lowered to 'IND D/IND D' rating

                        KEY RATING DRIVERS

The downgrade reflects DEPL's defaults on debt obligations during
the 12 months ended April 2017, due to tight liquidity.

                       RATING SENSITIVITIES

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

COMPANY PROFILE

Incorporated in 2011, DEPL offers complete turnkey solutions from
conceptualization to designing and building structures for
industrial usage with top to bottom erection processes.


FRESH CHICKEN: CRISIL Assigns B+ Rating to INR3.25MM LT Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Fresh Chicken Trading (FCT).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit           1.75       CRISIL B+/Stable

   Proposed Long Term
   Bank Loan Facility    3.25       CRISIL B+/Stable

The rating reflects the firm's modest scale of operations; and
its exposure to risks inherent in the poultry industry, to
intense competition, and to geographic concentration risk. The
rating also factors below-average financial risk profile because
of small networth and high total outside liabilities to adjusted
networth (TOLANW) ratio. These weaknesses are partially offset by
the extensive experience of the firm's proprietor in the poultry
industry, and its established relationships with customers and
suppliers.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations, and exposure to risks inherent in
the poultry industry and to intense competition
FCT is a small player in the large Indian poultry industry, with
net sales of INR25 crore estimated for fiscal 2017. The firm's
business risk profile is susceptible to risks inherent in the
poultry industry and to intense competition.

* Geographic concentration in revenue
FCT derives its entire revenue from Maharashtra, mainly Mumbai.

* Below-average financial risk profile
Networth was small, estimated at INR1.24 crore, and TOLANW ratio
was high, at 3.9 times, as on March 31, 2017.

Strengths

* Proprietor's extensive experience in the poultry industry and
established relationships with customers and suppliers
Ms Nasreen Abdul Shaikh has been in the poultry industry for over
2 decades. The firm benefits from her extensive experience and
understanding of the dynamics of the local market, and
established relationships with suppliers and customers.

Outlook: Stable

CRISIL believes FCT will benefit from its proprietor's extensive
industry experience. The outlook may be revised to 'Positive' if
a substantial increase in revenue or profitability leads to
higher-than-expected cash accrual, or if the capital structure
improves on account of significant equity infusion. The outlook
may be revised to 'Negative' if profitability declines steeply
because of intense competition, or if the capital structure
weakens because of increase in working capital debt.

Set up in 1993, FCT is a proprietorship firm of Ms Nasreen Abdul
Shaikh. It trades in poultry.

Profit after tax (PAT) was INR0.16 crore on net sales of INR23.6
crore in fiscal 2016, vis-a-vis INR0.14 crore and INR20.63 crore,
respectively, in fiscal 2015.


G.S. ALLOY: CRISIL Reaffirms 'B' Rating on INR5.0MM Cash Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on
the bank facilities of G.S. Alloy Castings Limited (GSAC).


                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Bank Guarantee         .25      CRISIL A4 (Reaffirmed)

   Cash Credit           5.00      CRISIL B/Stable (Reaffirmed)

   Letter of Credit       .25      CRISIL A4 (Reaffirmed)

The ratings continue to reflect GSAC's exposure to intense
competition in the castings industry, susceptibility to
volatility in raw material prices, and large working capital
requirement. These weaknesses are partially offset by the
extensive experience of its promoter.

Key Rating Drivers & Detailed Description

Weakness

* Exposure to intense competition in the castings industry
The castings and fabrication industry is highly fragmented with
over 200 players due to low entry barriers on account of limited
capital requirement. Fragmentation and intense competition limit
bargaining power with customers and suppliers.

* Susceptibility to volatility in raw material prices
Prices of key raw materials, steel and scrap, are volatile and
affect operating profitability, which has remained volatile at
8.8-11.5% over the three fiscals through 2017.

* Large working capital requirement
Operations are working capital intensive as reflected in gross
current assets of 179 days estimated as on March 31, 2017, mainly
due to stretched receivables.

Strengths

* Extensive experience of promoter in the castings industry
The promoter, Mr. Prasada Rao, with over two decades of
experience in the alloy castings industry, has developed healthy
relationships with customers.

Outlook: Stable

CRISIL believes GSAC will continue to benefit over the medium
term from the promoter's extensive experience and established
relationships with customers. The outlook may be revised to
'Positive' in case of higher-than-expected cash accrual because
of ramp-up of operations or improvement in working capital cycle.
Conversely, the outlook may be revised to 'Negative' if the
financial risk profile, particularly liquidity, weakens, most
likely because of decline in profitability, stretch in the
working capital cycle, or larger-than-expected, debt-funded
capital expenditure.

Established in 1987 by Mr. Prasad Rao, GSAC manufactures alloy
and steel castings that are used in the heavy engineering
industry. Its plant is in Vijayawada, Andhra Pradesh.

In fiscal 2016, profit after tax (PAT) was INR0.1 crore on net
sales of INR46.6 crore, against a net loss of INR0.9 crore on net
sales of INR55.3 crore in fiscal 2015.


GANGAPUR CITY: Ind-Ra Assigns 'BB+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Gangapur City
Municipal Council (GcMC) a Long-Term Issuer Rating of 'IND BB+'.
The Outlook is Stable.

                        KEY RATING DRIVERS

The rating reflects GcMC's inconsistent financial performance, as
reflected in its fluctuating operating margins which ranged
between negative 11.65% and 73.19% over FY11-FY15.  The council's
credit profile is constrained by the small proportion of its own
revenue.  GcMC's revenue receipts increased to INR279.681 million
in FY15 from INR40.577 million in FY11 (CAGR of 62.47%).  Being a
municipal council, GcMC's revenue sources comprise tax revenue
and non-tax revenue.  The council collected only urban
development tax over FY11-FY15.  It reported a revenue deficit
during FY11-FY12 and a capital deficit over FY11-FY15 except
FY12.  It is largely dependent on the government of Rajasthan
(GoR) for revenue.

Gangapur is well connected with other cities through roads and
railways.  However, the city does not have an underground
sewerage system and a sewage treatment plant.  Also, the lack of
an adequate water supply, drainage network, proper solid waste
management and collection facilities hinders the economic growth
potential of the city.  The lack of these adequate basic civic
services as reflected by Service Level Benchmark reports calls
for an immediate attention and affects GcMC's credit profile.
Under Atal Mission for Rejuvenation of Urban Towns (AMRUT),
INR2.042 billion will be incurred to improve these civic
services.

Urban civic services delivery in the Gangapur city is hampered by
the multiplicity of authorities providing these services.
Besides GcMC, the other agencies involved in delivering civic
services are the GoR agencies - public health engineering
department, public works department, Urban Improvement Trust,
etc.  The transfer of some of the services from these agencies to
the council can help speed up improvement in service delivery.

GcMC has high dependence on the GoR (compensation in lieu of
Octroi and revenue grants and contributions), which makes its
finances vulnerable to the GoR's economic and fiscal performance.
Octroi compensation and revenue grants cumulatively contributed
81.17% to the total revenue income during FY11-FY15. Ind-Ra
believes that the goods and services tax (GST) is likely to be
implemented from FY18.  Nearly 60% revenue income of GcMC is in
the form of octroi compensation grants from the GoR.  Presently,
the treatment of octroi compensation grants in the proposed GST
is unclear.  If the octroi compensation grants disbursal method
undergoes a change in GST regime, the credit profile of GcMC will
depend on the buoyancy of the new method of compensation from the
GoR.

GcMC's debt-free position supports its credit profile.  However,
the city requires huge investments to improve the quality of its
civic services.  Ind-Ra believes while the projects proposed
under AMRUT will help in improving the quality of civic services
in the city, it will exert pressure on the fragile fiscal profile
of Gangapur City.

A majority of city's population depends on agricultural
activities. The major crops cultivated in the region are wheat,
millet, maize, mustard, cluster bean, ground nut, gooseberry,
lemon, potato, gram, and barley.  GcMC should make efforts to
organize trade markets for agricultural produce and encourage
setting up of agricultural industries to accelerate economic
growth of the city.

                         RATING SENSITIVITIES

Positive: A significant improvement in GcMC's operating
performance without any negative impact on its debt metrics and
rolling out of the AMRUT reforms within the stipulated timeframe,
would positively impact the rating.

Negative: Additional burden on the finances of the council in the
form of debt and withdrawal of revenue support without a suitable
compensatory plan would trigger a negative rating action.

COMPANY PROFILE

Gangapur is a city and GcMC is a municipal council in the Sawai
Madhopur District of Rajasthan.  The city runs parallel to the
Aravalli and Vindhya mountain ranges.  Gangapur is primarily
known for being an important part of the West Central Railway.
The city is located at a distance of 37km from the famous holy
temple Kailadevi (Kaurali) and 43km from Manmohan Ji Mandir.

GcMC is responsible for the provisioning and governance of civic
services in the Gangapur city.


GLOBSYN TECHNOLOGIES: CRISIL Cuts Rating on INR8.4MM Loan to B
--------------------------------------------------------------
CRISIL has been consistently following up with Globsyn
Technologies Limited (GTL) for obtaining information through
letters and emails dated January 23, 2017, and February 13, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Overdraft               8.4      CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Globsyn Technologies Limited.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Globsyn Technologies Limitedis
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with Crisil B Rating
category.or Lower' Therefore, on account of inadequate
information and lack of management co-operation, CRISIL is
Downgrading the rating at 'CRISIL B/Stable'.

GTL was set up in 1995 by the Kolkata (West Bengal)-based Mr.
Bikram Dasgupta. Since 2002, the company operates a management
institute named Globsyn Business School at Sector-V in Kolkata.
It offers post-graduate management degree course.


HARIYANA SHIP: CRISIL Reaffirms B+ Rating on INR400MM Loan
----------------------------------------------------------
CRISIL's rating on the bank facilities of Hariyana Ship Breakers
Limited (HSBL; part of the Hariyana group) reflects deterioration
in Hariyana group's business profile marked by weakened operating
profitability.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Letter of Credit       400      CRISIL B+/Stable (Reaffirmed)

Additionally, the operating margin is expected to continue to
remain weak over the medium term driven by oversupply of steel
and subdued demand conditions prevailing globally. The lower
price realization of its products, procured against letters of
credit (LCs), constrains its credit profile, particularly its
liquidity. The liquidity is further constrained by loans to third
parties remaining at the same level, as against expectations of a
decline in their quantum. The receipt of the loans continues to
remain a key rating sensitivity factor affecting the group's
credit profile, especially liquidity over the medium term.

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of HIPL, Hariyana Ship Demolition Ltd
(HSDL), Hariyana Ship Breakers Ltd (HSBL), and Inducto Steel Ltd.
This is because these entities, collectively referred to as the
Hariyana group, have significant operational linkages and
fungible cash flows, and are under a common management.

Key Rating Drivers & Detailed Description

Strengths

* Exposure to risks inherent in ship breaking, steel trading, and
money lending businesses
The Hariyana group derives majority of its revenues and profits
from ship breaking, steel trading and money lending activities.
While revenues from ship breaking and steel trading are volatile
in nature, its money lending activities expose it to substantial
risks related with recoverability, especially during a downturn
in the market.

The Hariyana group's earnings from ship breaking are volatile in
nature and are based on freight rates and industry cycles. The
cost of ships for demolition varies considerably, depending on
the freight index and cost of melting scrap. Ship prices have a
direct bearing on the performance of players in the ship breaking
sector as it is not viable to buy costly ships, which may not
fetch the expected prices for scrap sales after demolition.

While the revenues from steel trading are relatively steady, it
exposes the group to fluctuations in steel prices, since it has
to maintain inventory of about one and a half month on an
average. The company's procurement is also not backed by orders.
However, this segment does provide relative stability to the
group's overall revenue stream.

The group also has a large money lending portfolio, which stood
at an estimated INR.3.5 billion as on December 31, 2015. The
group mostly lends these funds to real estate developers known to
the promoters. This exposes the group to risks related to
recoverability, especially during any slowdown or downturns in
the sector. While the group also takes charge of assets funded by
these loans in return, it does not entirely eliminate risks
related to recoverability. Such large and increasing exposure
towards money lending could substantially impact the group's
credit risk profile in case of non-recoverability. However,
CRISIL expects the money lending portfolio to reduce gradually
over the medium term, reducing risks pertaining to this segment.

CRISIL believes that the Hariyana group's revenues will remain
volatile over the medium term because of significant dependence
on ship breaking activity.

* Group's extant investments in unrelated businesses such as real
estate
The Hariyana group's aggressive growth strategy has resulted in
unrelated diversifications in the real estate and construction
industry, and money lending activities. The management frequently
resorts to inter-company borrowings; the group companies have
fungible cash flows, depending on business requirements. Since
2004, when the ship breaking business was on the decline, the
Hariyana group has focussed on financing activities, and extended
large loans to corporate entities and partnership firms engaged
in the real estate business. Although the money lending
activities have been curtailed by the group and no fresh money is
being lent, the outstanding exposure in money lending continues
to be large.

The Hariyana group has partnerships with real estate developers
for development of residential projects in Bangalore for a stake
of 40 to 50 per cent. Although the group's foray into the real
estate development business exposes it to the risks and
cyclicality inherent in the sector, the management's experience
in real estate development through associate concerns mitigates
this risk. However, the group remains exposed to risks inherent
in the real estate business and its success in these ventures
remains a key rating sensitivity factor.

CRISIL believes that the Hariyana group's unrelated
diversifications into real estate and financing activities expose
the group to risks inherent in these sectors and will continue to
influence the group's future credit risk profile.

Weakness

* Moderate financial risk profile
The Hariyana group has a moderate financial risk profile marked
by healthy net worth, low gearing. The net worth and gearing
stood at an estimated INR.226 crores and 0.14 time respectively
as on March 31, 2016. The net cash accruals to total debt ratio
and interest coverage ratio are estimated at 171 per cent and
3.48 times respectively for 2015-16. However, the interest income
on its money lending portfolio is not entirely received by the
company and is accrued, which further results in lower adjusted
debt protection metrics. The absence of capex plans and healthy
accretion to reserves supports the financial risk profile.
Moreover, the company's borrowings are predominantly short term
in nature, with low maturing debt obligations vis-a-vis estimated
cash accruals.

CRISIL believes that the Hariyana group will maintain its
moderate financial risk profile over the medium term, on the back
of steady revenues and moderate capex plans.

* Established market position in ship breaking industry
The Hariyana group was established in 1976 by Mr. Shanti Sarup
Reniwal, who is presently the chairman of the group. The group
has been engaged in the ship breaking business for over three
decades, and has accumulated a strong knowledge of the industry
over the years. It has demolished more than 100 ships during its
tenure of ship breaking activity. The group has demonstrated
expertise in demolishing various types of ships such as
passenger, tankers, and navy destroyers. It is equipped to break
and demolish large vessels and very large crude carriers (VLCCs);
it demolished Pacific Blue, which had a capacity of about 50,000
tonnes, one of the largest vessels ever demolished in the
country.

The Hariyana group's management has demonstrated its ability to
maintain its growth in adverse business conditions. The group has
diversified into related business domains, such as sponge iron
manufacturing and steel trading. These are contra-cyclical to
ship breaking activity and ensure stability in revenues.

CRISIL believes that the Hariyana group will leverage on its
management's experience for strengthening its market position
over the medium term.

Outlook: Stable

CRISIL believes that Hariyana group will remain exposed to risks
inherent in ship-breaking. The outlook may be revised to
'Positive' if the group recovers its funds advanced to third
parties sooner than expected or achieves significantly higher
profitability or revenue growth thereby improving its liquidity
profile. Conversely, the outlook may be revised to 'Negative' if
Hariyana group incurs losses in its money-lending businesses,
witnesses a steep decline in its revenues, or weakens its capital
structure by undertaking a larger-than-expected debt-funded
capital expenditure programme.

The Hariyana group, promoted by Mr. Shanti Sarup Reniwal, is
primarily into ship breaking and steel trading. The group also
undertakes inter-corporate lending activities, and develops
residential real estate projects.

Hariyana group generated net sales of INR.866 crores in 2015-16
(Refers to financial year from 1st April 2015 to 31st March 2016)
with Profit after Tax of INR11.45 crores as compared to net sales
of INR759 crores with Profit after Tax of INR21.83 crores in
2014-15.


HERITAGE LIFESTYLES: Ind-Ra Puts 'BB' Rating to Non-cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Heritage
Lifestyles and Developers Pvt. Ltd.'s (HLDPL) Long-Term Issuer
Rating to the non-cooperating category.  The issuer did not
participate in the rating exercise despite continuous requests
and follow-ups by the agency.  Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND BB(ISSUER NOT
COOPERATING)' on the agency's website.  The instrument-wise
rating actions are:

   -- INR203.7 mil. term loan migrated to non-cooperating
      category;

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 3, 2015.  Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

                         KEY RATING DRIVERS

COMPANY PROFILE

Incorporated in 1994, HLDPL primarily undertakes real estate
redevelopment projects.  The company has completed 15
redevelopment projects with a total saleable area of 224,825
square feet mainly in the Chembur area.

HLDPL is executing four redevelopment projects across Chembur
(three) and Bhandup (one).  Two of its four ongoing projects are
in the completion phase: Mahalaxmi Heritage and Amar Villa
Heritage.


HINDAUN CITY: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Hindaun City
Municipal Council (HcMC) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.

                         KEY RATING DRIVERS

The rating reflects HcMC's inconsistent financial performance, as
reflected in its fluctuating operating margins which ranged at
negative 6.54% and 53.12% over FY11-FY15.  HcMC's revenue
receipts increased to INR97.707 million in FY15 (INR185.40
million as per FY16 budget estimates - BE) from INR37.521 million
in FY11 (CAGR of 27.03%).  As HcMC is a municipal council, its
revenue comes from tax and non-tax sources.  HcMC collected only
house tax/urban development tax during FY11-FY15.  This increased
at a CAGR of 23.77% over FY11-FY15 and contributed only 0.40% on
average to the council's total revenue.  HcMC reported a revenue
deficit in FY11 and FY12 as well as a capital deficit in FY14 and
FY15.  HcMCs credit profile is constrained by the small
proportion of its own revenue.  It is largely dependent on the
government of Rajasthan (GoR) for revenue.

Hindaun has good connectivity in terms of roads and railways.
However, the absence of an underground sewage network, lack of
proper drainage, solid-waste-management and collection facilities
and septage treatment hinders the city's economic growth
potential.  The lack of these basic civic services, as reflected
by service level benchmark reports, calls for immediate attention
and affects HcMC's credit profile.  Under the Atal Mission for
Rejuvenation of Urban Towns (AMRUT), INR1.516.4 billion will be
spent to improve these civic services.  The delivery of urban
civic services such as water supply has been hampered as there
are multiple authorities that provide these services.  This
deters any improvement in service delivery.  Others engaged in
civic services are GoR agencies such as the Public Health
Engineering Department (PHED), Public Works Department (PWD) and
Urban Improvement Trust (UIT).  The transfer of responsibility
from these agencies to HcMC to execute some services could help
speed up improvement service delivery.

HcMC is highly dependent on GoR (for compensation in lieu of
octroi as well as revenue grants and contributions) and this
makes its finances vulnerable to GoR's economic and fiscal
performance. Octroi compensation and revenue grants cumulatively
contributed 60.17% to HcMC's total revenue during FY11-FY15.
Ind-Ra believes that the goods and services tax (GST) is likely
to be implemented from FY18.  Nearly 51.77% of HcMC's revenue
income is in the form of octroi compensation grants from GoR.
Currently, the treatment of octroi compensation grants in the
proposed GST Bill is unclear. If the disbursal method of octroi
compensation grants undergoes a change in the new GST regime,
HcMC's credit profile strength will depend on the buoyancy of the
new method of compensation from GoR.

HcMC's debt-free position supports its credit profile.  However,
the council requires a large number of investments to improve the
quality of its civic services.  Ind-Ra believes that while the
projects proposed under the Atal Mission for Rejuvenation of
Urban Towns (AMRUT) will help improve the quality of civic
services in Hindaun, it will exert pressure on its fragile fiscal
profile.

Hindaun is known for businesses such as the trade of stones as
well as agricultural products.  It has a number of wholesale and
retail markets, which act as distribution centres for such
businesses.  Markets for these products have been established
along State Highway 22 and In-Ra believes these should be further
promoted in an organized manner to accelerate economic growth.

                       RATING SENSITIVITIES

Positive: Significant improvement in operating performance
without affecting debt metrics and rolling out AMRUT reforms
within the stipulated timeframe, would positively impact the
rating.

Negative: Additional burden on HcMC's finances in the form of
debt, withdrawal of revenue support without a suitable
compensatory plan, would trigger a negative rating action.

COMPANY PROFILE

Hindaun City is located in the Karauli district of Rajasthan.  It
acts as a sub-divisional headquarters of the district and is an
important economic center for the state.  The city is famous for
its red stone trading business.  HcMC is responsible for the
provisioning and governance of civic services in Hindaun.


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

   -- INR15.76 mil. Term loan migrated to non-cooperating
      category; and

   -- INR49.5 mil. Fund-based limit migrated to non-cooperating
      category

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

COMPANY PROFILE

Incorporated in 1995, Joy manufactures plastic products such as
schoolware, officeware, baby products, kitchenware and home
utilities.  The company's manufacturing facility is located in
Daman.


LANCY CONSTRUCTIONS: CRISIL Cuts Rating on INR13MM Loan to D
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Lancy Constructions (LC) to 'CRISIL D' from 'CRISIL B-
/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Overdraft               13       CRISIL D (Downgraded from
                                    'CRISIL B-/Stable')

The downgrade reflects overdrawn draft limit for more than 30
days due to weak liquidity following sustained stretch in working
capital cycle.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations
With revenue of INR6.3 crore in fiscal 2016, scale remains small
in the competitive ready-made concrete (RMC) segment. Competition
tends to be regional due to high transportation costs and strict
timeline for delivery. Also, since RMC is mainly used in the
construction sector, the firm remains exposed to cyclicality
inherent in that industry.

* Working capital-intensive operations
Stretched receivables and increased work-in-progress inventory
led to fully utilised bank limit. Working capital requirement
will remain large over the medium term and will continue to
constrain business risk profile.

* Weak financial risk profile
Net worth was small at INR8 crore as on March 31, 2016, and
liquidity weak because of stretched working capital cycle.
Financial risk profile will remain subdued over the medium term.

Strength

* Extensive experience of proprietor
The firm's proprietor has around three decades of experience in
the real estate segment and has constructed churches, education
institutions, and residential and commercial complexes.
Set up in 1973 in Mangalore as a proprietorship firm by Mr. Lancy
Mascarenhas, LC manufactures RMC for the construction industry
and also undertakes civil construction projects.

For fiscal 2016, profit after tax was INR0 crore on net sales of
INR6.3 crore, against INR0 crore and INR6.8 crore, respectively,
for fiscal 2015.


M. E. ENERGY: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of M. E. Energy Private Limited (MEPL).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         10        CRISIL A4 (Reaffirmed)
   Cash Credit             8        CRISIL B+/Stable (Reaffirmed)
   Foreign Letter of
   Credit                  1.5      CRISIL B+/Stable (Reaffirmed)

The ratings reflect a modest scale, and working capital intensive
nature, of operations in the thermal engineering segment, subdued
operating profitability, and below-average debt protection
metrics. These rating weaknesses are mitigated by the extensive
industry experience of the promoter and a moderate capital
structure.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations and subdued operating profitability:
Revenue was around INR26.9 crore in fiscal 2016, declining from
INR41.6 crore in the previous fiscal. Decline in revenue amid
high fixed costs led to a significant reduction in operating
profitability. Although profitability is expected to improve in
fiscal 2017 on the back of modest revenue growth and controlled
fixed costs, the scale will remain modest.

* Working capital-intensive operations: Gross current assets were
high, at 287 days as on March 31, 2016, driven by a moderate
work-in-progress inventory, large receivables, and sizeable
margin money deposits.

* Below-average debt protection metrics: The interest coverage
ratio was below 1 time in fiscal 2016, and is expected to improve
to just over 1.5 times in fiscal 2017.

Strengths

* Extensive industry experience of the promoter: The key
promoter, Mr. K V Kartha, has over 25 years of experience in the
engineering industry and has developed a strong relationship with
customers and suppliers.

* Moderate capital structure: The gearing was low, at 0.93 time
as on March 31, 2016, because of a moderate networth of INR11.6
crore and the absence of any major debt-funded capital
expenditure (capex).

Outlook: Stable

CRISIL believes MEPL will continue to benefit from the extensive
industry experience of its promoter. The outlook may be revised
to 'Positive' in case of significant and sustained improvement in
revenue and profitability, leading sizeable cash accrual. The
outlook may be revised 'Negative' if the financial risk profile,
particularly liquidity, weakens because of low cash accrual, a
stretched working capital cycle, or any debt-funded capex.

MEPL, established in 1998 and promoted by Mr. K V Kartha,
designs, manufactures and installs energy-saving projects,
heating and cooling systems, and equipment. Its manufacturing
facility is in Pune, Maharashtra. Helix Investment Company, a
private equity firm, acquired a 36.36% stake in the company in
2012.

MEPL had a net loss of INR77 lakh on revenue of INR26.97 crore in
fiscal 2016, against a net profit of INR4.41 lakh on revenue of
INR41.67 crore in fiscal 2015.


MAGNEWIN ENERGY: CRISIL Reaffirms 'D' Rating on INR1.68MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Magnewin Energy
Private Limited ((MEPL)) for obtaining information through
letters and emails dated January 27, 2017, and February 28, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee        0.25       CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Cash Credit           1.50       CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Letter of Credit      1.5        CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Long Term Loan        1.68       CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Standby Line of       0.20       CRISIL D (Issuer Not
   Credit                           cooperating; Rating
                                    Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Magnewin Energy Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Magnewin Energy Private
Limited  is consistent with 'Scenario1' outlined in the
'Framework for Assessing Consistency of Information with Crisil B
Rating category or Lower'.' Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL D/
CRISIL D'.

Incorporated in 1991, MEPL manufactures electrical
capacitors'special-purpose capacitors, and high- and low-tension
capacitors'used for compensating transmission line losses and
power factor improvement. These capacitors are primarily used by
utility companies and the defence sector; the capacitors also
find application in industries such as textiles, coal, chemicals,
and sugar. Set up as Magnewin Magnetics, the company was
reconstituted as a private limited company in September 2009.


MANIPAL ENERGY: CRISIL Lowers Rating on INR5MM Loan to 'B'
----------------------------------------------------------
CRISIL has been consistently following up with Manipal Energy and
Infratech Limited (MEIL) for obtaining information through
letters and emails dated January 19, 2017 and February 09, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Overdraft               5       CRISIL B/Stable (Issuer Not
                                   Cooperating; Downgraded from
                                   'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Manipal Energy and Infratech
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Manipal Energy and Infratech
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with Crisil B
Rating category or Lower' Based on the last available
information, CRISIL has downgraded the rating to 'CRISIL
B/Stable'.

MEIL was incorporated in 2011, promoted by Mr. T.Gautam Pai. The
company undertakes projects involving erection, installation,
commissioning, and maintenance of power lines, trading in
fabricated electrical components, and executing infrastructure
projects in Karnataka.


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

  -- INR150 mil. Fund-based limit migrated to non-cooperating
     category; and

  -- INR 70 mil. Non-fund-based limit migrated to non-cooperating
     category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 23, 2016.  Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 1999, Megasoft (represented by its telecom brand,
XIUS) is engaged in the sale of lizences for products related to
pre-paid billing, mobile commerce, mobile roaming and mobile
advertising to telecom operators.  Its head office and
development centre are located in Hyderabad.


PADDINGTON RESORTS: Ind-Ra Assigns 'B+' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Paddington
Resorts a Long-Term Issuer Rating of 'IND B+'.  The Outlook is
Stable.  The instrument-wise rating actions are:

   -- INR87.7 mil. Term loans assigned with 'IND B+/Stable'
      rating; and

   -- INR2.5 mil. Fund-based facilities assigned with
      'IND B+/Stable/IND A4' rating

                        KEY RATING DRIVERS

The ratings reflect Paddington Resorts' weak credit profile.
Although the firm started its operations in October 2015, FY17
was its first full year of operations.  According to the
provisional FY17 financials, the revenue increased to INR13
million (FY16: INR3 million) at approximately 55% occupancy,
while EBITDA margin declined 33.0% (58.1%) on account of an
increase in variable expenses, EBITDA interest coverage
(operating EBITDA/gross interest expense) was 0.5x (0.3x) and net
financial leverage (Ind-Ra adjusted net debt/operating EBITDAR)
was 19.2x (58.0x). Leverage improved sharply due to scheduled
loan repayments.

Moreover, the firm has a tight liquidity position with 90.4%
average utilization of the fund-based facilities over the 12
months ended April 2017.

The ratings, however, are supported by the firm's promoters' 10
years of experience in the hotel industry.

                        RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and EBITDA
margin leading to a sustained improvement in the credit metrics
will be positive for the ratings.

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

COMPANY PROFILE

Paddington Resorts is a four-star hotel at Coorg in Karnataka,
founded by Mr. T L Praveen.  It was converted into a partnership
firm in 2012.  The resort has a total of 15 cottages and 15
rooms. Mr. T L Praveen, Mr. T N Laxman and Mrs Padmini are the
promoters of the firm.


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

   -- INR57 mil. term loan migrated to non-cooperating category;
      and

   -- INR40 mil. Fund-based working capital migrated to non-
      cooperating category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 7, 2016.  Ind-Ra is unable to provide an update as it do not
have adequate information to review the rating.

COMPANY PROFILE

Quest Infosys Foundation established the Quest Group of
Institutions in 2009-2010.  QGI offers Bachelor of Technology and
Master of Business Administration courses and is situated in
Mohali, Punjab.  The society is chaired by Mr. Dipinder Singh
Sekhon.


RELIANCE COMM: Rejects Moody's, Fitch's Rating Downgrades
---------------------------------------------------------
The Times of India reports that Reliance Communications on June 7
rejected credit rating cuts by Moody's and Fitch as the agencies'
views apply only on its $300 million bonds, which are being
serviced regularly.

TOI relates that the company said that in May 2015, it had issued
6.5 per cent coupon bearing $ bonds, maturing in November 2020,
for an aggregate amount of $300 million.

"These bonds constitute about 4 per cent of the total debt of the
company. The bonds have always been serviced regularly on the due
dates and are fully current in servicing, as on date . . . the
ratings by Moody's and Fitch apply only to these $ bonds. We
respectfully disagree with the recent rating actions by both
these agencies, and believe that these rating actions do not
reflect the servicing track record of the company," TOI quotes
RCom as saying.

RCom, in its notice to stock exchanges on May 24, 2017, had said
that the company will continue to pay interest on the respective
due dates, and the bonds will be repaid on the due date of
November 6, 2020, TOI relays.

                   About Reliance Communications

Based in Mumbai, India, Reliance Communications Ltd (BOM:532712)
-- http://www.rcom.co.in/Rcom/personal/home/index.html-- is a
telecommunications service provider. The Company operates through
two segments: India Operations and Global Operations. India
operations segment comprises wireless telecommunications services
to retail customers through global system for mobile
communication (GSM) technology-based networks across India;
voice, long distance services and broadband access to enterprise
customers; managed Internet data center services, and direct-to-
home (DTH) business. Global operations comprise Carrier,
Enterprise and Consumer Business units. It provides carrier's
carrier voice, carrier's carrier bandwidth, enterprise data and
consumer voice services. The Company owns and operates Internet
protocol (IP) enabled connectivity infrastructure, comprising
over 280,000 kilometers of fiber optic cable systems in India,
the United States, Europe, Middle East and the Asia Pacific
region.

As reported in the Troubled Company Reporter-Asia Pacific on
June 8, 2017, Moody's Investors Service has downgraded Reliance
Communications Limited's (RCOM) corporate family rating and
senior secured bond rating to Ca from Caa1.  The outlook is
negative.  This concludes the review of the ratings initiated by
Moody's on May 30, 2017.

The TCR-AP reported on June 8, 2017, that Fitch Ratings
downgraded India-based Reliance Communications Limited's (Rcom)
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) to 'RD' from 'CCC'. Fitch has also downgraded the rating on
Rcom's USD300 million 6.5% senior secured notes due 2020 to
'C/RR4' from 'CCC/RR4'.

The downgrade follows Rcom's June 2, 2017 announcement that all
of its bank lenders are prepared to waive debt service
obligations until end-2017 to provide time for the company to
lower its debt through two proposed transactions and present a
plan demonstrating how the debt can be serviced over the long
term.

Under Fitch ratings definitions this situation constitutes a
restricted default, as multiple waivers or forbearance periods
have been extended in parallel following a non-payment event.


S. K. MASALA: CRISIL Assigns B+ Rating to INR5.6MM Cash Loan
------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating to the long-term
bank facility of S. K. Masala and Foods Limited (SK Masala).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            5.6       CRISIL B+/Stable

The rating reflects improving, yet modest scale of operations,
average financial risk profile marked by small networth, average
capital structure and stretched liquidity and presence in the
fragmented and competitive spice and packaged foods industry.
These weaknesses are partly offset by the extensive industry
experience of promoters, their funding support and moderate
operating efficiency.

Key Rating Drivers & Detailed Description

Weakness

* Improving yet modest scale of operations and presence in the
competitive spice and food manufacturing industry
Although revenue grew at a compound annual rate of 31% during the
four fiscals through 2017, it remained modest at an estimated
INR21.15 crore for fiscal 2017. That's because of intense
competition in the industry due to the presence of a large number
of players owing to low entry barriers and capital requirement,
and company's limited geographical reach.

* Working capital intensive operations coupled with stretched
liquidity
Gross current assets were high at 273 days as on March 31, 2016,
driven by high receivables and inventory of 161 and 97 days,
respectively, which has resulted into stretched liquidity marked
by full bank limit utilisation for previous 12 months through
March 2017.

* Average financial risk profile
Financial risk profile is average marked by estimated modest
networth of INR3.59 crore and gearing of 1.93 times as on
March 31, 2017. The expected capital infusion of INR0.75 crore
and successful raising of capital through SME IPO remains
critical for improvement in overall financial risk profile and
liquidity.

Strengths

* Extensive experience of promoters and established relationship
with customers and suppliers
SK Masala benefits from the four-decade long experience of the
promoters in the spices and food industry and their established
relations with suppliers and customers.

* Moderate operating efficiency:
Operating margin remained moderate at 8.4-9.5% for over four
years through fiscal 2017 and return on capital employed
continued to be at over 17% reflecting moderate operating
efficiency.
Outlook: Stable

CRISIL believes SK Masala will benefit from the extensive
industry experience of its promoters and their established
customer and supplier relationships. The outlook may be revised
to 'Positive' if its revenue and profitability significantly
improve, leading to higher-than-expected cash accruals or capital
structure and liquidity improves because of fresh infusion of
capital and better working capital management. The outlook may be
revised to 'Negative' in case of lower-than-expected accrual or
further deterioration in working capital management or sizeable
debt-funded capital expenditure, weakens financial risk profile,
particularly liquidity.

SK Masala was established as a partnership firm named M/s S
Khusaldas and Co. over four decades ago by Panjwani family and
was reconstituted as a closely held limited company with the
present name in March 2017. The company manufactures, processes
and trades blended spices, grounded spices, flour, Instant '
ready mix food, pickle and ghee'sold under the brand name of 'SK
Masala'. Operations are managed by Mr. Barkatali Panjwani, Mr.
Salim Panjwani and family. Its manufacturing facility is located
near Surat, Gujarat and has an installed capacity of 6 tonne per
day.

Operating income was INR14.96 crore and net profit was INR0.48
crore for fiscal 2016, against INR9.96 crore and INR0.28 crore,
respectively, for fiscal 2015.


SAMRAT VIJAY: CRISIL Lowers Rating on INR19.85MM Demand Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Samrat Vijay Construction Pvt Ltd (SVCPL) to 'CRISIL D' from
'CRISIL B/Stable'.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Proposed Long Term       .15       CRISIL D (Downgraded from
   Bank Loan Facility                 'CRISIL B/Stable')

   Working Capital        19.85       CRISIL D (Downgraded from
   Demand Loan                        'CRISIL B/Stable')

The downgrade reflects the company's delay of two months in
paying interest on its working capital demand loan due to
stretched liquidity.

Key Rating Drivers & Detailed Description

Weakness

* Delays in interest payment: Low accrual and large working
capital debt resulted in stretched liquidity, resulting in delay
in meeting interest obligation on working capital demand loan by
two months.

Strengths

* Experience of the promoters in the civil construction industry:
Presence of over a decade in the civil construction business has
enabled the promoters to develop healthy relationships with
customers and raw material suppliers.

Incorporated in 2008 in Chapra, Bihar, and promoted by Mr. Arjun
Singh and his wife, Ms Babita Kumari, SVCPL is setting up a mall
in Muzaffarpur, Bihar.

Profit after tax (PAT) and net sales were INR0.01 crore and
INR0.13 crore, respectively, for fiscal 2016, against a loss of
INR0.09 crore and nil net sales in the previous fiscal.


SATYA WAREHOUSE: CRISIL Reaffirms D Rating on INR12.5MM Term Loan
-----------------------------------------------------------------
CRISIL has been consistently following up with Satya Warehouse
(Satya) for obtaining information through letters and emails
dated February 8, 2017 and March 26, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan              12.5      CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Satya Warehouse. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Satya Warehouse is consistent with
'Scenario1' outlined in the 'Framework for Assessing Consistency
of Information with Crisil B Rating category or Lower'.' Based on
the last available information, CRISIL has reaffirmed the rating
at CRISIL D.

Set up in 2012, Satya is a partnership firm promoted by Mr. Ram
Kumar Yadav, Mr. Ashok Yadav, and their friends. The firm has
constructed a warehouse with capacity of 70,000 tonne for
agricultural products in Hisar (Haryana). It has signed a 10-year
offtake agreement with HAFED.


SAVORIT LIMITED: CRISIL Assigns B+ Rating to INR3.9MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' rating to
the bank facilities of Savorit Limited (Savorit).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan             3.9        CRISIL B+/Stable

   Overdraft             19         CRISIL A4

   Proposed Long Term
   Bank Loan Facility     .1        CRISIL B+/Stable

The rating reflects the company's below-average financial risk
profile because of a highly leveraged capital structure and
substantial exposure to group entities, and vulnerability of its
operating profitability to volatility in raw material prices.
These weaknesses are partially offset by its promoters' extensive
experience and its established market position in the packaged
food products industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile and substantial exposure
to group entities: Savorit's financial risk profile is
constrained by high gearing of over 5 times as on March 31, 2017,
and by exposure to group companies in the form of investments and
loans and advances.  Debt protection metrics are modest with
interest coverage and net cash accruals estimated at around 1.52
times and 5 percent respectively for fiscal 2017.

* Susceptibility to volatility in raw materials prices: Savorit
depends on the domestic output of commodities such as wheat,
which depends on the area under cultivation, monsoon, prices of
other crops, and minimum support price and other incentives
offered by the government of India. These factors also determine
final crop prices which might impact the profitability.

Strengths

* Established market position and promoters' extensive experience
in the packaged food products industry: Savorit has been
manufacturing food products for over 20 years. Its promoters'
extensive experience has helped the company establish itself in
the highly competitive industry. Also, its Savorit brand has a
strong reputation in South India, helping the company maintain
its market position.

Outlook: Stable

CRISIL believes Savorit will continue to benefit from the
extensive industry experience of its promoters. The outlook may
be revised to 'Positive' if revenue and operating margin are
higher than expected. The outlook may be revised to 'Negative' if
revenue or operating profitability decline, or if more-than-
expected exposure to group entities, or sizeable, debt-funded
capital expenditure weakens the financial risk profile,
especially liquidity. Pre-closure of a significant amount of term
loans over the next twelve months will be a key determinant of
the financial risk profile, particularly liquidity, over the
medium term.

Savorit was established in 1965 by Mr. Murugesan, as United India
Roller Flour Mills Private Limited, and manufactured wheat flour.
It integrated forward and started manufacturing vermicelli in
1995 under the Savorit brand, post which, it got its present name

Savorit reported a profit after tax (PAT) of INR1.0 crore on an
operating income of INR 213 crore for fiscal 2016 against a PAT
of INR1.0 crore on an operating income of INR174 crore for fiscal
2015.


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

  -- INR25 mil. Fund-based limits migrated to non-cooperating
     category; and

  -- INR50 mil. Non-fund-based limits migrated to non-cooperating
     category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 13, 2016.  Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2011, SPL is engaged in civil construction
projects such as roads, bridges, power infrastructure, pipeline
works, steel plants, refineries and other infrastructure works.


SHREE BHATTER: CRISIL Lowers Rating on INR7MM Cash Loan to 'D'
--------------------------------------------------------------
CRISIL has been consistently following up with Shree Bhatter
Industries (SIEPL) for obtaining information through letters and
emails dated January 23, 2017 and February 13, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             7        CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL B/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

CRISIL has downgraded its rating on the long-term bank facilities
of SBI to 'CRISIL D (issuer not co-operating)' from 'CRISIL
B/Stable.' The rating downgrade reflects delays by the firm, in
servicing the debt obligation. CRISIL has held discussions with
the bankers, who have confirmed the ongoing delay.

Shree Bhatter Industries (SBI) was established in 2011 as a
partnership firm based out of Jodhpur (Rajasthan). The firm is
engaged in processing of guar seeds to produce guar gum splits
and the bye-products, guar korma, and guar churi. The firm has an
installed capacity to process about 40 tonnes per day (TPD).


SHREE VAISHNAV: CRISIL Reaffirms 'D' Rating on INR31.27MM Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Shree Vaishnav
Metal and Power Private Limited (SVMPPL) for obtaining
information through letters and emails dated January 24, 2017 and
February 14, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          1        CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Cash Credit            15        CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Letter of Credit       10        CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Proposed Long Term     31.27     CRISIL D (Issuer Not
   Bank Loan Facility               Cooperating; Rating
                                    Reaffirmed)

   Term Loan              22.73     CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shree Vaishnav Metal and Power
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Shree Vaishnav Metal
and Power Private Limited is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with Crisil B Rating category or lower.' Based on the
last available information, CRISIL has reaffirmed the rating at
'CRISIL D/CRISIL D'.

SVMPPL, incorporated in 2005 by the Agarwal family, is engaged in
galvanisation and fabrication. Its manufacturing facilitates are
in Wada (Maharashtra) and registered office is in Mumbai.


SHREYAS ENTERPRISES: CRISIL Reaffirms B+ Rating on INR9.25MM Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility
of Shreyas Enterprises - Gorakhpur (SE) at 'CRISIL B+/Stable'.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit           9.25      CRISIL B+/Stable (Reaffirmed)

Net sales remained stagnant during fiscal 2017, on account of
impact of demonetisation. CRISIL expects business risk profile to
remain stable with revenue growth of 10% per fiscal over the
medium term, while net profitability margin is likely to be at
0.15 -0.25% in line with past trend, susceptible to fluctuations
in coal prices.

Liquidity profile is marked by modest cash accrual and near full
utilisation of bank limit over the 12 months ended March 31,
2017. However, absence of any term-debt and unsecured loans from
partners (outstanding at INR1.85 crore on March 31, 2017)
supports liquidity.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations: SE is a small player in the highly
fragmented coal trading business, with estimated revenue of
INR54.08 crore in fiscal 2017. The firm also undertakes brick
manufacturing; which constitutes 20-25% of overall revenue. Scale
of operations is expected to remain small amid industry
competition.

* Weak financial risk profile: Total outside liabilities to
tangible networth (TOLTNW) ratio is high estimated at 7.48 times
as on March 31, 2017, mainly due to small networth of INR1.55
crore. Debt protection metrics are weak: interest coverage was
1.14 time in fiscal 2017. Financial risk profile is expected to
remain at similar level over the medium term on account of
sizeable working capital debt and continued low operating
profitability.

Strengths

* Extensive experience of partners: The partners' extensive
experience in coal trading and brick manufacturing through family
business has helped the firm to establish healthy relationship
with clients'reflected in net sales of INR54.08 crore in fiscal
2017. Consequently, business risk profile will also remain
supported over the medium term.

* Moderately working capital requirement: Gross current assets
(GCAs) were estimated at 84 days as on March 31, 2017, because of
moderate inventory and low receivables of 78 and 2 days,
respectively. Operations are likely to remain moderately working
capital intensive over the medium term, with GCAs expected at 85-
90 days.

Outlook: Stable

CRISIL believes SE will maintain its business risk profile backed
by the extensive industry experience of its partners. The outlook
may be revised to 'Positive' if financial risk profile improves
with enhancement in profitability and capital structure. The
outlook may be revised to 'Negative' if increase in working
capital requirement or constrained profitability margin or
capital withdrawal exerts pressure on liquidity.

Established in 2012, SE is a partnership firm started by Mr.
Vinay Kumar Singh and Ms Tara Singh in Gorakhpur, Uttar Pradesh.
The firm trades in coal and manufactures bricks.

SE, on a standalone basis, had profit after tax (PAT) of INR0.13
crore on net sales of INR53.56 crore in fiscal 2016, vis-a-vis
INR0.05 crore and INR22.82 crore, respectively, in fiscal 2015.


SHREYAS SORTEX: CRISIL Raises Rating on INR25MM Cash Loan to BB-
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Shreyas Sortex Industries Private Limited (SSIPL) to 'CRISIL
BB-/Stable' from 'CRISIL B/Stable'.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit             25      CRISIL BB-/Stable (Upgraded
                                   from 'CRISIL B/Stable')

   Term Loan               10      CRISIL BB-/Stable (Upgraded
                                   from 'CRISIL B/Stable')

The upgrade reflects CRISIL's belief that the company will
sustain its improved business risk profile over the medium term,
driven by recent capacity expansion to 20 tonne per hour (tph)
from 8 tph. Revenue is estimated at INR150 crore for fiscal 2017
(the first full year of commercial operations), as against
INR30.65 crore in fiscal 2016. Revenue is expected to increase by
10-15% per fiscal over the medium term while the operating margin
would be sustained at 4-5%.

Despite working capital-intensive operations, as reflected in
estimated gross current assets (GCAs) of 105 days as on March 31,
2017, the bank limit was moderately utilised at 87% over the 12
months through March 2017. Liquidity was also aided by infusion
of capital and unsecured loans of INR8.0 crore and INR9.54 crore,
respectively, in fiscal 2017, by the promoters. Consequently, the
total outside liabilities to tangible networth (TOLTNW) ratio has
improved, and is likely to remain below 1.5 times over the medium
term. Furthermore, cash accrual is comfortable against repayment
obligation and there are no significant capital expenditure
(capex) plans over the medium term.

Analytical Approach

CRISIL has treated unsecured loans (Rs 15.21 crore outstanding as
on March 31, 2017) extended by the promoters as neither debt nor
equity in calculating the financial ratios. That's because these
loans are interest-free and are expected to remain in the
business over the medium term.

Key Rating Drivers & Detailed Description

Strengths

* Above-average financial risk profile: The TOLTNW ratio was low,
estimated at 1.18 times as on March 31, 2017. Debt protection
metrics were above average, with interest coverage and net cash
accrual to total debt ratios estimated at 3.29 times and 0.13
time, respectively, for fiscal 2017. The financial risk profile
is likely to remain stable over the medium term on account of
continued moderate operating profitability and absence of any
major capex.

* Moderately working capital-intensive operations: GCAs are
estimated at 105 days, with inventory and debtors of 79 and 7
days, respectively, against nil payables, as on March 31, 2017.
Operations are likely to remain moderately working capital
intensive over the medium term as well, with GCAs expected at
100-105 days

Weaknesses

* Nascent stage and modest scale of operations in the highly
fragmented rice industry: Operations began only in November 2015,
and net sales are estimated at a modest INR150 crore for fiscal
2017. This, along with intense competition, limits bargaining
power with suppliers and customers, leading to pressure on the
operating margin. Although the scale of operations may improve
gradually over the medium term, it will remain modest due to
intense competition.

Outlook: Stable

CRISIL believes SSIPL will continue to benefit from the
entrepreneurial experience of its promoters and their funding
support. The outlook may be revised to 'Positive' in case of
improvement in the credit risk profile on the back of an increase
in revenue and cash accrual, while working capital is efficiently
managed. The outlook may be revised to 'Negative' in case of
lower-than-anticipated cash accrual or larger-than-expected
working capital requirement, leading to deterioration in
liquidity.

SSIPL was incorporated in 2015, promoted by Mr. Vinay Kumar Singh
and Mrs Tara Singh. The company processes parboiled rice at its
plant at Gorakhpur, Uttar Pradesh. It has a total milling and
sorting capacity of 20 tph. SSIPL started operations from
November 2015.

Profit after tax (PAT) was INR0.14 crore on net sales of INR30.65
crore in fiscal 2016.


SREE DURGA: CRISIL Lowers Rating on INR2MM Cash Loan to 'B'
-----------------------------------------------------------
CRISIL has been consistently following up with Sree Durga Cashew
Factory (SDCF) for obtaining information through letters and
emails dated January 23, 2017 and February 13, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             2        CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

   Packing Credit         14        CRISIL A4/Issuer Not
                                    Cooperating)

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Sree Durga Cashew Factory.
This restricts CRISIL's ability to take a forward looking view on
the credit quality of the entity. CRISIL believes that the
information available for Rashik Sree Durga Cashew Factory is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with Crisil B Rating
category or lower.' Based on the last available information,
CRISIL has downgraded the rating to 'CRISIL B/Stable/CRISIL A4'

Set up in 1996, SDCF processes raw cashew nuts and exports cashew
kernels. Proprietor Mr. D Pradeep Kumar manages its operations.


SREE SHANMUGA: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sree Shanmuga
Modern Rice Mills Private Limited (SSMRMPL) a Long-Term Issuer
Rating of 'IND BB'.  The Outlook is Stable.  The instrument-wise
rating action is:

   -- INR239.2 mil. Fund-based working capital limits assigned
      with 'IND BB/Stable/IND A4+' rating

                         KEY RATING DRIVERS

The ratings reflect SSMRMPL's volatile profitability and moderate
credit metrics.  According to provisional financials for FY17,
EBITDA margin was 8.0% (FY16: 8.2%; FY15: 6.8%; FY14: 7.0%).  The
decline in EBITDA margin was due to fluctuations in costs of raw
materials and an increase in manufacturing expenses.  In FY17,
net financial leverage (adjusted net debt/operating EBITDA) and
interest coverage (operating EBITDA/gross interest expense)
deteriorated to 6.3x (FY16: 6.1x) and 1.6x (1.7x), respectively,
due to an increase in interest expenses incurred on a newly
availed term loan.

The ratings also reflect SSMRMPL's moderate, albeit rising, scale
of operations and tight liquidity.  Revenue rose at a CAGR of
13.61% to INR1,450 million over FY13-FY17, driven by an increase
in order inflow from existing and new customers and high market
demand.  Moreover, an additional manufacturing unit commenced
operations in December 2016.  The company's average utilization
of fund-based limits was 98.3% over the 12 months ended April
2017.

The ratings, however, are supported by the promoter's three-
decade experience in rice processing.

                         RATING SENSITIVITIES

Negative: A decline in revenue and profitability leading to
deterioration in credit metrics could be negative for the rating.

Positive: A significant increase in revenue and profitability
leading to an improvement in credit metrics would be positive for
the rating.

COMPANY PROFILE

Incorporated in 1993, SSMRMPL is based in Bangarpet, Karnataka.
The company is engaged in the processing of paddy into raw rice,
steam rice and parboiled rice.

The company is headed by Mr. RN Shanmugam and Mr. RS Dilip Kumar.
It owns five units, each of which has a production capacity of 29
tonnes per hour.


SREE VEERA: CRISIL Reaffirms B- Rating on INR6.5MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable' rating on the long-
term bank facilities of Sree Veera Brahmendra Swamy Spinning
Mills Pvt Ltd (SVPL).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            6.5       CRISIL B-/Stable (Reaffirmed)

   Corporate Loan         5.4       CRISIL B-/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     2.11      CRISIL B-/Stable (Reaffirmed)

The rating continues to reflect a below-average financial risk
profile because of a small networth, high gearing, and weak debt
protection metrics. The rating also factors in working capital-
intensive operations, and susceptibility of profitability margins
to volatile cotton prices and intense competition. These
weaknesses are partially offset by the extensive experience of
the promoters in the cotton-trading industry.

Key Rating Drivers & Detailed Description

Weakness

* Below-average financial risk profile
The networth is modest, estimated at INR4 crore, and gearing
high, estimated at 4.6 times, as on March 31, 2017. The debt
protection metrics were average in fiscal 2017.

* Working capital-intensive operations
Gross current assets were high, estimated at around 336 days,
with inventory of 171 days, as on March 31, 2017.

* Susceptibility of profitability margins to volatile cotton
prices and intense competition
Raw cotton constitutes 55-60% of total production cost, in line
with other industry players. Cotton prices are volatile as the
crop continues to be vulnerable to monsoon or even a pest attack.
Also, cotton prices are largely affected by international demand.
Volatility in the availability and prices of cotton affect
margins of spinning companies.

Strengths

* Extensive industry experience of the promoters
The promoters have an experience of over three decades in cotton
trading, and have developed a healthy relationship with
customers.

Outlook: Stable

CRISIL believes SVPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of a substantial and sustained increase in
the scale of operations, while profitability margins are
maintained, or significant improvement in the working capital
cycle. The outlook may be revised to 'Negative' in case of a
steep decline in profitability margins, or significant
deterioration in the capital structure because of a stretch in
the working capital cycle.

Set up in 2006 by Mr. G Sundararamaiah and his family, SVPL
manufactures cotton yarn at its plant in Guntur, Andhra Pradesh.

In fiscal 2016, profit after tax (PAT) was INR2.4 crore on net
sales of INR24.7 crore, against a PAT of INR0.3 crore on net
sales of INR26.6 crore in fiscal 2015.


SRI LAKSHMI: CRISIL Reaffirms B+ Rating on INR7MM Loan
------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Sri Lakshmi Constructions (SLC).

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Bank Guarantee        1         CRISIL A4 (Reaffirmed)
   Long Term Loan        2.5       CRISIL B+/Stable (Reaffirmed)
   Overdraft             7         CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the firm's modest scale of
operations in the highly competitive civil construction industry,
and its large working capital requirement. These weaknesses are
partially offset by its partners' extensive industry experience
and its moderate financial risk profile because of moderate
gearing and debt protection metrics.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations in a highly competitive industry:
SLC remains a small player in the intensely competitive civil
construction industry, with an estimated operating income of
INR15.4 crore in fiscal 2017. The industry is highly fragmented
because of low entry barriers.

* Working capital-intensive operations: Gross current assets are
estimated at 212 days as on March 31, 2017, driven by large
inventory, and considerable funds blocked as retention money.

Strengths

* Founder's extensive experience in the civil construction
industry: Mr. C Viswanatha Naidu has experience of more than
three decades in the civil construction industry, and have
developed healthy relationships with customers.

* Moderate financial risk profile: The financial risk profile is
marked by modest networth estimated at INR3.0 crore as on
March 31, 2017and moderate gearing of 2.9 times as on March 31,
2017, and adequate debt protection metrics.

Outlook: Stable

CRISIL believes SLC will continue to benefit from its promoters'
extensive industry experience and established customer
relationships. The outlook may be revised to 'Positive' if there
is a substantial and sustained increase in revenue along with
stable profitability, or a sizeable increase in networth
supported by equity infusion. The outlook may be revised to
'Negative' if profitability declines steeply, or capital
structure weakens because of large, debt-funded capital
expenditure or a stretch in the working capital cycle.

SLC (formerly C Viswanatha Naidu) was set up in 1980 as a
proprietorship concern by Mr. C Viswanatha Naidu, and was
reconstituted as a partnership firm in 2014. It constructs and
repairs roads in Chittoor, Andhra Pradesh.

In fiscal 2016, profit after tax (PAT) was INR1.1 crore on net
sales of INR24.9 crore, against a PAT of INR1.0 crore on net
sales of INR 22.5 crore in fiscal 2015.


SRI SAINADH: CRISIL Reaffirms B+ Rating on INR6MM Cash Loan
-----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of Sri Sainadh Rice Industries (SSRI).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Open Cash Credit        6        CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      1        CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the firm's modest scale of
operations, and susceptibility to changes in government
regulations and to volatility in raw material prices. These
weaknesses are partially offset by its partners' extensive
experience in the rice industry and established relationships
with customers.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in a highly fragmented industry:
The firm has a small scale, reflected in estimated turnover of
INR32 crore in fiscal 2017, and modest capacity. The rice
industry is highly fragmented because of low capital requirement
and limited value addition, resulting in low entry barriers.

* Susceptibility to changes in regulations and to volatility in
raw material prices: As raw material accounts for 90% of the
firm's revenue, it is susceptible to volatility in raw material
prices. Moreover, the domestic rice industry is highly regulated
in terms of paddy prices, export/import policies, and rice
release mechanism, which affects the credit quality of players.

Strength

* Partners' extensive industry experience and established
customer relationships: The partners have experience of over two
decades of in the rice milling business, and have developed
healthy relationships with customers.

Outlook: Stable

CRISIL believes SSRI will continue to benefit from its partners'
extensive industry experience. The outlook may be revised to
'Positive' if increase in revenue and operating margin
strengthens the financial risk profile. The outlook may be
revised to 'Negative' if profitability weakens due to increased
competition, or if working capital management is inefficient.

Set up in 2000 as a partnership firm, SSRI mills and processes
paddy into rice, rice bran, broken rice, and husk. Its rice mill
is in Nellore, Andhra Pradesh. Operations are managed by Mr. A V
Subba Rao.

In fiscal 2016, profit after tax (PAT) was INR0.02 crore on net
sales of INR31.9 crore, against a PAT of INR0.02 crore on net
sales of INR30.5 crore in fiscal 2015.


STRANDS TEXTILE: Ind-Ra Migrates 'BB' Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Strands Textile
Mills Pvt. Ltd.'s Long-Term Issuer Rating to the non-cooperating
category.  The issuer did not participate in the surveillance
exercise, despite continuous requests and follow-ups by the
agency.  Therefore, investors and other users are advised to take
appropriate caution while using these ratings.  The rating will
now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's
website.  The instrument-wise rating action is:

   -- INR47.5 mil. Fund-based limit migrated to non-cooperating
      category

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 18, 2016.  Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2006, Strands manufactures home textile products
for exports, primarily to the US. Its unit is located at Kandla
SEZ in Gujarat.  The company manages the marketing and
distribution of its products through a sales and marketing office
in New York.


SUBASREE JEWELLERS: CRISIL Assigns B- Rating to INR2.29MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' rating to
the long-term bank facility of Subasree Jewellers (SJ). The
rating reflects the modest scale of operations of the firm in the
fragmented gold jewellery retailing industry, and below-average
financial risk profile. These rating weaknesses are partially
offset by the extensive experience of the promoter.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Working Capital
   Demand Loan           1.76       CRISIL B-/Stable
   Long Term Loan        2.29       CRISIL B-/Stable
   Bank Guarantee        1.85       CRISIL A4
   Cash Credit           2.10       CRISIL B-/Stable

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations susceptibility to intense
competition in fragmented gold wholesale industry:
The scale of operations of the firm is modest with average
revenues of INR11 crore in the past three fiscal years through
2017. The domestic jewellery industry is highly fragmented and
largely dominated by the unorganized sector, as it is neither
capital nor technology intensive. CRISIL believes SJ due to its
small scale of operation will remain expose to competition in the
fragmented jewellery industry.

* Below-average financial risk profile: Modest networth and high
gearing'estimated at INR1.4 crores and 5.8 times as on March 31,
2017 - may continue to constrain financial risk profile. Debt
protection metrics are average: net cash accrual to total debt
and interest coverage ratios were estimated around 1% and 1.13
times in fiscal 2017. Accruals are insufficient to be repayment
obligations, which are met through promoter's fund support.

Strengths

* Extensive experience of the promoter:
The promoter of SJ, Mr. K Vijayakumar, had been in the jewellery
business over 3 decades and has gained insights about the
industry over the years. The long experience of proprietor in the
jewellery industry has enabled it to have strong relationship
with its local clientele.

Outlook: Stable

CRISIL believes SJ will maintain a stable business profile over
the medium term backed by the extensive experience of the
promoter. The outlook may be revised to 'Positive' if increase in
scale of operations or improved working capital management
considerably strengthens business risk profile. Conversely, the
outlook may be revised to 'Negative' if aggressive debt funded
expansion, stretch in working capital cycle, or decline in
profitability, weakens the financial risk profile.

SJ retails in jewellery through its single showroom in
Coimbatore. The firm is promoted by Mr.K Vijayakumar, a second
generation entrepreneur.

SJ booked Net Profit of INR16.35 lakhs on revenues of INR10.16 in
fiscal 2016 against a Net profit of INR14.25 lakhs on revenues of
INR11.19 crores in fiscal 2015.


SUNDARAM MAHADEO: CRISIL Reaffirms 'B' Rating on INR4.5MM Loan
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long term bank facilities
Sundaram Mahadeo Autoworld Private Limited (SMAPL) at 'CRISIL
B/Stable'.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit           4.5       CRISIL B/Stable (Reaffirmed)
   Term Loan             2.5       CRISIL B/Stable (Reaffirmed)

CRISIL's ratings on the bank facilities of SMAPL continue to
reflect the modest scale of operations and its leveraged
financial risk profile. These rating are partially offset by
extensive entrepreneurial experience of the promoters.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations: SMAPL started its operations in May
2016. SMAPL is estimated to report operating income of INR36
crore in fiscal 2017. Scale up of operations to remain key rating
sensitivity factor over medium term.

* Leveraged financial risk profile: Modest networth and high
total outstanding liabilities to adjusted networth (Rs 2.05 crore
and 2.86 times as on March 31, 2016) represent leveraged
financial risk profile.

Strengths

* Extensive entrepreneurial experience of the promoters:  The
promoters have extensive entrepreneurial experience in different
businesses. Over the years, the promoters have established a
healthy reputation in Assam. The promoters were initially engaged
in the petroleum product trading business, later diversified into
auto dealership of commercial vehicle of Tata Motors Limited
(TML). Company is expected to benefit over medium term from
promoters extensive entrepreneurial experience of the promoters.

Outlook: Stable

CRISIL believes that SMAPL will benefit from the promoters'
extensive experience over the medium term. The outlook may be
revised to 'Positive' if SMAPL generates higher -than 'expected
revenue and profitability leading to higher cash accruals and
improvement in financial risk profile. The outlook may be revised
to 'Negative' in case the company generates lower-than expected
cash accruals or additional debt funded capex, resulting in a
pressure on its financial risk profile, particularly liquidity.

Incorporated in June 2015, SMAPL is a dealer of commercial
vehicle of TML and has a showroom at Tezpur, Assam. The company
is promoted by Mr. Sumit Agarwal and Mr. Amit Agarwal.


SWASTIK PANELS: CRISIL Reaffirms 'B' Rating on INR3MM Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Swastik Panels Private Limited (SPPL) at 'CRISIL B/Stable/CRISIL
A4'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             3        CRISIL B/Stable (Reaffirmed)
   Letter of Credit        3        CRISIL A4 (Reaffirmed)

Net sales increased marginally by around 2% in fiscal 2017, due
to a slowdown in the end-user industry (construction) following
demonetisation. Revenue growth is likely to remain muted at
around 5% per fiscal over the medium term as well. Net
profitability is likely to remain low at 0.3- 0.4% over this
period, in line with the past trend.

Liquidity is constrained by a fully utilised bank limit during
the 12 months ended March 31, 2017. However, net cash accrual is
expected to remain adequate to meet debt repayment obligation
over the medium term. Also, support from the promoter in the form
of unsecured loans (estimated at INR2.61 crore on March 31, 2017)
supports liquidity.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations in the highly fragmented timber
industry: Net sales are estimated at INR7.87 crore for fiscal
2017.  Despite an expected increase in scale of operations, the
company will remain a marginal player in the timber trading and
processing business due to the fragmented nature of the industry.

* Large working capital requirement: Gross current assets were
sizeable, estimated at 508 days as on March 31, 2017, driven by
high receivables and inventory of 303 days and 154 days,
respectively. Operations are likely to remain working capital
intensive over the medium term as well.

* Weak financial risk profile: The total outside liabilities to
tangible networth ratio was high, estimated at 5.48 times as on
March 31, 2017, and debt protection metrics weak, with interest
coverage and net cash accrual to total debt ratios at 1.40 times
and 0.03 time, respectively, in fiscal 2017. The financial risk
profile is expected to remain weak over the medium term on
account of sizeable working capital debt and continued low
accretion to reserves.

Strengths

* Extensive industry experience of the promoter and his funding
support: Presence of more than four decades in the timber
industry has enabled the promoter to establish a healthy
relationship with key customers and suppliers, and develop
industry insight. Benefits from this are expected to continue.
The promoter has also supported the company through unsecured
loans.

Outlook: Stable

CRISIL believes SPPL will continue to benefit from the extensive
industry experience of the promoter and his funding support. The
outlook may be revised to 'Positive' if there is a significant
and sustained increase in cash accrual, coupled with improvement
in the financial risk profile. The outlook may be revised to
'Negative' in case of a considerable decline in revenue or
profitability, a stretch in the working capital cycle, or large,
debt-funded capital expenditure, resulting in deterioration in
the financial risk profile.

Incorporated in 2002, SPPL is promoted by Mr. Ashok Jain
(managing director). The company manufactures veneer and trades
in timber. Its manufacturing facility is in Jaipur.

Profit after tax (PAT) and net sales are estimated at INR0.03
crore and INR7.87 crore, respectively, for fiscal 2017; PAT was
INR0.02 crore on net sales of INR7.74 crore in fiscal 2016.


THIRUMATHI MUTHAMMAL: CRISIL Cuts Rating on INR4.88MM Loan to B
---------------------------------------------------------------
CRISIL has been consistently following up with Thirumathi
Muthammal Textiles Private Limited (TMTPL) for obtaining
information through letters and emails dated January 19, 2017 and
February 9, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         .08       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL A4+')

   Cash Credit           4.00       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

   Cash Term Loan        4.88       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

   Proposed Bank         0.55       CRISIL A4 (Issuer Not
   Guarantee                        Cooperating; Downgraded from
                                    'CRISIL A4+')

   Proposed Long Term    0.49       CRISIL B/Stable (Issuer Not
   Bank Loan Facility               Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Thirumathi Muthammal Textiles
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Thirumathi Muthammal
Textiles Private Limited is consistent with 'Scenario 1' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL B' category or lower. Based on the last available
information, CRISIL has downgraded the rating at 'CRISIL
B/Stable/CRISIL A4'.

TMTPL, incorporated in 1980 by Mr. P Narayana Samy and his family
members, is based in Trichy (Tamil Nadu). It manufactures
polyester-cotton blended yarn.


TITAN ANTONY: CRISIL Assigns B+ Rating to INR5.0MM Term Loan
------------------------------------------------------------
CRISIL has revoked the suspension of its rating on the bank
facilities of Titan - Antony Aviation India Private Limited
(TAAIPL), and assigned 'CRISIL B+/Stable' rating to the
facilities. CRISIL had, on September 6, 2016, suspended the
ratings as TAAIPL had not provided the necessary information for
a rating review. The company has now shared the requisite
information, enabling CRISIL to assign a rating.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            4.5       CRISIL B+/Stable (Assigned;
                                    Suspension Revoked)

   Rupee Term Loan        5.0       CRISIL B+/Stable (Assigned;
                                    Suspension Revoked)

The rating reflects TAAIPL's small scale of and working capital
intensive operations; stretched liquidity marked by expected low
cash accrual tightly matched with debt repayments. These
weaknesses are partially offset by the extensive experience of
its promoters and technical expertise in the aircraft refueling
system and fabrication of oil tanks/ containers and moderate
financial risk.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Scale of operations with operating
income of INR17.9 crore in fiscal 2017 is likely to remain modest
over the medium term.

* Working capital intensive operations: Gross current assets
(GCAs) were high at 291 days as on March 31, 2017, on account of
high inventory and receivables of 192 and 111 days, respectively.

Strengths

* Promoters' extensive experience and technical expertise in
specialised commercial vehicles (CV) industry: One of the
promoters, Titan Aviation, is a global player in aircraft
refuelling system for six decades; the other promoter Antony
Motors is in the specialised CV industry for the past two
decades. TAAIPL thus benefits from the established reputation,
technical expertise and clientele of Titan Aviation and Antony
Motors, which will help the company forge significant business
relationships over and above the financial support it receives.

* Moderate financial risk profile: Networth and gearing,
estimated at a moderate INR14.3 crore and 0.67 time, as on March
31, 2017, respectively, should remain moderate over the medium
term supported by the absence of any debt-funded capital
expenditure.

Outlook: Stable

CRISIL believes TAAIPL will benefit from its promoters' extensive
industry experience and technical expertise. The outlook may be
revised to 'Positive' if high revenue growth and stable
profitability strengthens cash accrual. The outlook may be
revised to 'Negative' if low sales or profitability resulting in
low cash accrual or stretch in working capital cycle weakens
financial risk profile, particularly liquidity.

Incorporated in 2005, TAAIPL manufactures all type of aircraft
refueling equipment and motor body fabrication. The company is a
joint venture promoted by Antony Motors Pvt Ltd (AMPL) from India
and Titan Aviation from France. Mr. K Jose Antony and Mr. K
Thomas Ouseph are the directors and manage operations. The
manufacturing facility is at Patalganga Industries area of
Panvel, Raigad.

Profit after tax was INR 0.19 crore on net sales of INR 17.67
crore for fiscal 2017 against INR 0.34 crore and INR 15.17 crore
for fiscal 2016.


TRANSNATIONAL: CRISIL Cuts Rating on INR2.5MM Cash Loan to 'B'
--------------------------------------------------------------
CRISIL has been consistently following up with Transnational for
obtaining information through letters and emails dated
January 19, 2017 and February 9, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

                     Amount
   Facilities       (INR Mln)    Ratings
   ----------       ---------    -------
   Cash Credit          2.5      CRISIL B/Stable (Issuer Not
                                 Cooperating; Downgraded from
                                 'CRISIL B+/Stable')

   Letter of Credit     6.2      CRISIL A4 (Issuer Not
                                 Cooperating; Rating Reaffirmed)

   Proposed Buyer       1.0      CRISIL A4 (Issuer Not
   Credit Limit                  Cooperating; Rating Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Transnational. This restricts
CRISIL's ability to take a forward looking view on the credit
quality of the entity. CRISIL believes that the information
available for Transnational is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL B' category or lower. Based on the last
available information, CRISIL has downgraded the long term rating
to 'CRISILB/Stable and reaffirmed short term rating at CRISILA4'.

Transnational is a partnership firm established by Mr. Pawan
Kumar Agarwal in 2009. The firm trades in chemicals such as
polyvinyl chloride resin, polyethylene, and ethylene vinyl
acetate. It also trades in metals such as copper, scrap, iron,
and mild steel plates.


TRISTAR GLOBAL: CRISIL Reaffirms D Rating on INR15.5MM Loan
-----------------------------------------------------------
CRISIL has been consistently following up with Tristar Global
Infrastructure Private Limited (TGIPL) for obtaining information
through letters and emails dated January 19, 2017 and
February 9, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         15.5      CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Cash Credit             5.0      CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Letter of Credit        2.0      CRISIL D (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Proposed Long Term      6.0      CRISIL D (Issuer Not
   Bank Loan Facility               Cooperating; Rating
                                    Reaffirmed)

   Working Capital        14.5      CRISIL D (Issuer Not
   Term Loan                        Cooperating; Rating
                                    Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Tristar Global Infrastructure
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Tristar Global
Infrastructure Private Limited is consistent with 'Scenario1'
outlined in the 'Framework for Assessing Consistency of
Information with Crisil B Rating category or Lower'.' Based on
the last available information, CRISIL has reaffirmed the rating
at CRISIL D/ CRISIL D.

TGIPL, incorporated in 1999, is owned and managed by Mr. Vijay
Vasudeva and his family members. It is in the construction
business, and executes specialised jobs such as waterproofing,
installation of expansion joints, and roofing and related
activities. Its corporate office is in Delhi.


VGN DEVELOPERS: CRISIL Downgrades Rating on INR400MM Loan to D
--------------------------------------------------------------
CRISIL has downgraded its rating on the non-convertible
debentures (NCDs) of VGN Developers Private Limited (VGN) to
'CRISIL D' from 'CRISIL BB-(SO)/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Non Convertible        400       CRISIL D (Downgraded from
   Debentures                       'CRISIL BB-(SO)/Stable')

The downgrade reflects delays in debt servicing due to weak
liquidity, following lower-than-expected sales in residential
projects. Slowdown in sales was mainly on account of reduced
demand faced by Chennai's residential real estate market, given
weak consumer sentiment. The company has been monetising their
land bank in order to manage cash flow mismatches; however, the
funds are not coming in a timely manner to meet debt obligation.

Analytical Approach

The rating factors in the cash flows from VGN's Fairmont and
Coasta projects, as the lenders only have charge on these cash
flows. The projects are located in Guindy and East Coast Road
(ECR), respectively, in Chennai. VGN maintains an escrow account
over these projects' cash flows which are used as per the pre-
agreed waterfall mechanism.

Key Rating Drivers & Detailed Description

Weakness

* Delays in debt servicing: VGN witnessed delays in servicing its
debt obligation, following lower-than-expected sales in the
residential projects. While sales velocity was lower, the company
maintained pace of construction to maintain collections,
resulting in cash flow mismatches. Slowdown in sales was mainly
on account of reduced demand faced by Chennai's residential real
estate market, given weak consumer sentiment. The promoters have
monetised the group's land bank and infused close to INR200 crore
in the projects in fiscal 2017; asset monetisation will likely
continue over the medium term. However, the funds are not coming
in a timely manner to meet debt obligation.

* Exposure to project implementation risks: VGN is exposed to
project implementation risk, given the large size of the projects
being currently undertaken by the company. While the total real
estate projects completed by VGN is relatively low at 1.8 million
square feet (sq. ft), the company is undertaking development of 5
million sq. ft. Coasta has progressed on the construction front
with the building structure ready and finishing work going on.
However, Fairmont, the largest project taken up by VGN till date,
is at various stages between plinth and third floor for seven
towers that have been launched. Hence, the company is exposed to
project execution risks.

* Susceptibility to cyclicality inherent in the real estate
sector: Exposure to risks and cyclicality inherent in the real
estate sector may result in volatility in both saleability and
realisations and, hence, cash flow. The residential real estate
sector has remained under pressure due to weak demand and bearish
consumer sentiment over the past few years, resulting in
refinancing needs. Impact on sales velocity will remain a key
rating sensitivity factor.

Strengths

* Extensive experience of promoters and healthy market position
in the Chennai real estate market: Though incorporated in 2009,
VGN enjoys a strong brand franchise in the Chennai real estate
market on the back of the VGN group of companies' track record of
operations since 1942. The group has collectively completed a
sizeable 16 million sq. ft of projects. VGN's track record of
implementation of projects on schedule, coupled with complete in-
house operating capabilities, enhances the company's brand
reputation.

Incorporated in 2009, VGN develops residential apartments and
plots in Chennai. It is promoted by Mr. D Pratish, who holds a
majority stake in it; the remaining stake is held by his wife Ms.
Divya Veluri and mother Ms. D. Padma. VGN has developed 1.8
million sq. ft of projects and has 5 million sq. ft of projects
under development. VGN's major projects are VGN Fairmont (1.8
million sq. ft) in Guindy, VGN Presidency (0.4 million sq. ft) in
Nungambakkam, and VGN Coasta (0.3 million sq. ft) in ECR.

Fairmont, at Guindy in Chennai, is a large residential project,
with 1,300 saleable units expected to be launched in a phased
manner. Coasta is a luxury residential project, situated at ECR
in Chennai. The property has one tower comprising 16 floors; the
project comprises units with three or four bedrooms, with a hall
and kitchen. These projects are expected to be constructed at a
total cost of around INR1600 crore.


VOORA SHREERAM: CRISIL Lowers Rating on INR8MM Cash Loan to 'B'
---------------------------------------------------------------
CRISIL has been consistently following up with Voora Shreeram
Constructions Private Limited (VSCPL) for obtaining information
through letters and emails dated January 19, 2017 and
February 9, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit             8       CRISIL B/Stable (Issuer Not
                                   Cooperating; Downgraded
                                   from 'CRISIL BB/Stable')

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Voora Shreeram Constructions
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Voora Shreeram
Constructions Private Limited is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with Crisil B Rating category.or Lower' Based on the
last available information, CRISIL has downgraded the rating to
'CRISIL B/Stable'.

VSCPL, incorporated in 2000, undertakes civil construction work
for commercial, industrial, and residential projects. It is
promoted and managed by Mr. A Shankar and Mr. Pavan Voora.


WAGAD INFRAPROJECTS: CRISIL Cuts Rating on INR10MM Loan to 'B'
--------------------------------------------------------------
CRISIL has been consistently following up with Wagad
Infraprojects Private Limited (WIPL) for obtaining information
through letters and emails dated January 19, 2017, and
February 9, 2017, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          10       CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB/Stable')

   Cash Credit             10       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Wagad Infraprojects Private
Limited. This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for Wagad Infraprojects Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with Crisil B
Rating category.or Lower' Therefore, on account of inadequate
information and lack of management co-operation, CRISIL is
Downgrading the rating at 'CRISIL B/Stable/ CRISIL A4'.

WIPL, incorporated in 2010 by the Rajasthan-based Jain family,
undertakes civil construction works and manufactures readymix
concrete. The company's registered office is in Udaipur
(Rajasthan). The operations are managed by Mr. Ashok Jain and his
brother Mr. Vinod Jain.


YAZDANI STEEL: Ind-Ra Assigns 'D' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Yazdani Steel &
Power Limited (YSPL) a Long-Term Issuer Rating of 'IND D'.
Instrument-wise rating actions are:

   -- INR434.9 mil. Term loan (Long-term) assigned with 'IND D'
      rating;

   -- INR180 mil. Fund-based limit (Long-term) assigned with
      'IND D' rating;

   -- INR75.1 mil. Non-fund-based limit (Short-term) assigned
      with 'IND D' rating

                        KEY RATING DRIVERS

The ratings reflect continuous delays in term debt servicing by
YSPL during the 12 months ended April 2017.

                        RATING SENSITIVITIES

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

COMPANY PROFILE

Incorporated in 2003, YSPL has set up an integrated steel project
with captive power generation facilities at Kalinga Nagar Growth
Centre near Jajpur Road in Odisha with a capacity to manufacture
60,000 MTPA of sponge iron, 72,000 MTPA of steel ingots/billets,
50,000 TPA of steel reinforcing bars and a captive power plant of
10MW capacity.



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


JAPAN DISPLAY: Mulls Deeper Overhaul, Capital Tie-up with a Peer
----------------------------------------------------------------
Nikkei Asian Review reports that Japan Display, the world's top
producer of small and midsize LCD panels, is ditching a modest
reform plan that failed to right the ship and embarking on a
wholesale reorganization, revamping domestic production sites and
even exploring a capital partnership with a peer.

Nikkei says the liquid crystal display manufacturer was slow to
adopt organic light-emitting diode technology, and its financial
woes were made all the more treacherous by Apple's decision to
switch to OLED panels for some of the upcoming iPhone models.

According to Nikkei, the company will unveil a new medium-term
plan by August under new management, to be appointed on June 21
at its annual shareholders meeting. Leading shareholder
Innovation Network Corp. of Japan and the economy ministry in
Japan, which oversees that public-private fund, pushed to bring
in a new slate of managers.

Likely steps include consolidating and reorganizing Japanese
factories and redistributing staff, all designed to free Japan
Display from the massive red ink it has been trapped under for
years, the report notes.

Nikkei relates that the Tokyo-based company is already seeking
outside financial help for the overhaul, reaching out to the INCJ
and other investment funds. Japan Display has also begun
considering capital and business tie-ups with companies in Japan
and abroad, the report states.

According to the report, the display maker has established itself
as the world's top producer of small and midsize LCD panels, used
in devices such as smartphones, since its formation in 2012 in a
merger of Toshiba, Sony and Hitachi's LCD panel operations. But
heavy fixed costs inherited from those companies have dogged
Japan Display ever since, helping hand the business its third
straight annual net loss in the year ended March 31.

Japan Display announced a strategic growth plan at the end of
2016 predicated on strengthening its OLED business, and even drew
JPY75 billion ($685 million) in aid from the INCJ, the report
discloses. This and other measures were seen expanding sales to
JPY1.1 trillion by fiscal 2018, up from JPY884.4 billion in
fiscal 2016, and raising operating profit from JPY18.5 billion to
JPY88 billion.

But orders for conventional LCD panels, still Japan Display's
mainstay, remained sluggish in early 2017, deepening the
company's cash crunch, which is only growing more severe in the
slow April-June quarter, Nikkei notes.

Japan Display Inc. (TYO:6740) is engaged in the development,
design, manufacture and sale of small and medium-size displays
and related products. The Mobile Field provides displays for
mobile equipment, such as smart phone and tab terminals. The In-
Vehicle Consumer and Industry (C&I) and Others Field provides in-
vehicle equipment, including automobile dashboard and car
navigation systems, consumer equipment, such as digital cameras,
video cameras and mobile game machine, medical equipment such as
x-ray photo interpretation monitors, as well as industrial
machinery.


TOSHIBA CORP: Aims to Name Winning Bidder for Chip Unit Next Week
-----------------------------------------------------------------
Makiko Yamazaki, Liana B. Baker and Kentaro Hamada at Reuters
Toshiba Corp aims to name a winner for its prized semiconductor
business next week, people familiar with the matter said on
June 7, as a row with one of the bidders over the sale appeared
to escalate.

Sources told Reuters the choice has narrowed to one bid from U.S.
chipmaker Broadcom Ltd and U.S. tech fund Silver Lake and another
from Toshiba chip partner Western Digital Corp and Japanese
government-related investors.

Reuters says Toshiba is rushing to find a buyer for the world's
second-largest producer of NAND chips, which it values at
$18 billion or more, to cover billions of dollars in cost
overruns at its now-bankrupt U.S. nuclear business Westinghouse
Electric Corp.

The laptops-to-nuclear conglomerate will hold a board meeting on
June 15 to decide on the preferred bidder, two sources said,
declining to be identified as they were not authorized to speak
to the media, according to Reuters.

Reuters says Western Digital, which jointly operates Toshiba's
main chip plant in Yokkaichi, western Japan, has complicated the
sale effort with a legal challenge, accusing Toshiba of a serious
breach of contract over the joint venture.

It argues that the unit cannot be sold without its consent and
has demanded exclusive negotiating rights.

But in a letter seen by Reuters, Toshiba struck back, again
asking Western Digital to stop challenging the plans.

"Toshiba encourages Western Digital to redirect the considerable
efforts that it has put into disrupting Toshiba's sale process
into more productive channels."

According to Reuters, Western Digital confirmed in a statement
that it had received Toshiba's letter but added that any move by
Toshiba to sell the unit without its consent "clearly violate the
transfer restrictions in the joint venture agreements."

Reuters relates that Western Digital said it was "best positioned
to assist Toshiba in addressing its challenges and advancing its
legacy of technological innovation in Japan."

The Broadcom-Silver Lake bid is seen as attractive because of its
higher price of JPY2.2 trillion ($20 billion), sources, as cited
by Reuters have said.

Western Digital by comparison has an offer of less than
JPY2 trillion and could also face antitrust hurdles because the
firm is the third-largest maker of NAND flash-memory chips.

"Naturally, for the Toshiba corporate side, Broadcom is the best
choice," one source said, Reuters relays.

Other bidders include U.S. private-equity firm Bain Capital with
South Korean chipmaker SK Hynix Inc, and Taiwan's Hon Hai
Precision Industry Co Ltd with its Japanese unit Sharp Corp,
Reuters notes.

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



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


PROPERTY VENTURES: Liquidator Must Put Up Security of Costs
-----------------------------------------------------------
BusinessDesk reports that the liquidator of Property Ventures
(PVL) must put up $2.6 million as security of costs in its
NZ$302 million lawsuit against PricewaterhouseCoopers and former
directors of the failed property development company.

BusinessDesk relates that Judge Graham Lang issued his ruling in
a judgment from the High Court in Christchurch on June 6.
BusinessDesk says the costs are less than the $3.6 million sought
by the seven defendants, who include former chair Austin Forbes
QC, discharged bankrupt David Henderson, and PWC.

According to BusinessDesk, the substantive lawsuit brought by
liquidators Robert Walker and John Scutter is set down for a 12-
week trial starting in February 2018 and ahead of that, the
defendants applied for security of costs, arguing that the case
for such security was strengthened by the existence of litigation
funder LPF Group, which is bankrolling the suit in return for
42.5 per cent of any settlement.

BusinessDesk says the liquidators allege that if not for PWC
giving clean audits and advising PVL how to skirt insolvency, the
company would have been wound up sooner by its creditors with
more value able to be recovered.

Justice Lang takes the presence of a litigation funder into
account in ordering security of costs, noting observations in a
New South Wales Court of Appeal case that a court should be
particularly concerned "that persons whose involvement in
litigation is purely for commercial profit should not avoid
responsibility for costs if the litigation fails," BusinessDesk
relays.

According to BusinessDesk, Justice Lang said this was the
approach adopted by Judge Robert Dobson in Houghton v Saunders,
in which former Feltex shareholders sought to sue directors over
the failed carpet maker's prospectus.

"I take a similar approach. The existence of a litigation funder
in the present case is an important factor that influences the
exercise of the discretion . . .," the report quotes Justice Lang
as saying in his judgment. "Commercial ventures generally require
an investor to take risks and to incur expenditure as the price
to be paid for the chance of success."

BusinessDesk relates that the liquidators' lawyer, Justin Smith
QC, had argued against security of costs on the basis of the
merits of the case and the amount of documentation already
available to the defendants about the lawsuit. In reference to
PWC, he said its behaviour as auditor and as a financial adviser
to PVL "smacks of lack of professional scepticism and tends to
suggest the auditor is assisting to obviate the problems." Mr.
Smith argued that PWC "assisted the group to mask its underlying
problems 'through the cross-selling of other services',"
according to Justice Lang's judgment cited by BusinessDesk.

But Justice Lang said the material before the court didn't allow
him to make a meaningful assessment on the merits of the case,
such as whether PWC ought to have responded differently "if and
when it became aware that the PVL group was experiencing cashflow
problems," BusinessDesk relays. To do that he would need to know
PVL's overall position and the options it had to address its
financial problems.

Still, he said his "overall impression" was that PWC had "two
areas of potential vulnerability", which were its alleged failure
to ensure valuations ascribed to PVL's key assets "were robust
and could be relied upon," especially in the case of undeveloped
land, BusinessDesk says.

"If PWC was placed on notice that PVL's valuations were
questionable, it may be at risk of liability in some form for not
drawing attention to this issue in its audit opinion," Justice
Lang, as cited by BusinessDesk, said.

Property Ventures Ltd was the largest asset of Hanover Finance,
amounting to more than 20% of Hanover's assets, at the time the
finance company's investors voted on a moratorium that led
eventually to the sale of their debt of Allied Farmers. In 2008,
PWC was the auditor of both PVL and another company in the group,
Five Mile Holdings, while it was also advising the trustee of
Hanover over the moratorium, the liquidator has alleged.

BusinessDesk notes that after the judgment was released,
Mr. Walker said in an emailed statement that he was "disappointed
at the decision to award any security of costs to the
defendants."

"PWC is a well-resourced defendant, with professional indemnity
insurance, and the security of costs application was yet another
example of them testing our financial resolve in bringing this
case on behalf of the out of pocket creditors and investors of
PVL," BusinessDesk quotes Mr. Walker as saying.  "The allegations
made during the security of costs hearing in the High Court raise
serious questions about the behaviour of PWC and the directors -
neither PWC nor the directors of PVL have addressed the
substantive allegations made in Court in any meaningful way."

In a separate judgment given on May 24, liquidator Robert Walker
was found to be in contempt of court for disclosing personal
information on a laptop seized from Henderson. However, in that
case, Justice Lang said the breach was inadvertent and he made no
order for costs, BusinessDesk adds.

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



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


* PDIC Raises PHP13.7M from Public Bidding of Closed Banks Assets
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The Philippine Deposit Insurance Corporation (PDIC) generated a
total of PHP13.7 million from the sale of nine properties during
the public bidding of corporate and closed banks' assets held on
May 16, 2017 at the PDIC Office in Makati City. These properties
are located in Valenzuela City, Bulacan, Pangasinan, Nueva Ecija,
Ilocos Sur, Cavite, Quezon and Legazpi City.

Total sales accounted for eight closed banks' properties and one
corporate asset sold, ranging from PHP10,500 to PHP2.8 million,
for an aggregate value of PHP12.5 million and PHP1.16 million,
respectively. These consisted of residential lots, commercial
lots, and a generator set. The bidding yielded a premium of
PHP3.4 million from the combined minimum disposal price of
PHP10.3 million.

Proceeds from the sale of closed banks' properties are added to
the pool of liquid assets of these banks for distribution to
creditors and uninsured depositors in accordance with the rules
on concurrence and preference of credits. Meanwhile, gains from
the sale of corporate assets are added to the Deposit Insurance
Fund, PDIC's fund source mainly for payment of valid deposit
insurance claims.

The expeditious liquidation assets is one of the strategic
directions of PDIC, as statutory liquidator of closed banks. To
help ensure that recoveries from closed banks' assets are
maximized, PDIC sells assets via competitive biddings and
auctions. After which, unsold assets may be acquired by
interested parties via negotiated sale.

Interested buyers are encouraged to visit the PDIC website at
www.pdic.gov.ph and use PDIC's property finder for information on
available inventory of assets for sale. Prospective buyers may
also call the Asset Management and Disposal Group at (02) 841-
4387 for inquiries on assets for disposal.



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


UIJEONGBU LIGHT: Seoul Court Declares Firm Officially Bankrupt
--------------------------------------------------------------
Korea Joongang Daily reports that the Seoul Bankruptcy Court
pronounced the Uijeongbu Light Rail Transit Company officially
bankrupt on May 26, after the company ran up about KRW367.6
billion ($327.9 million) in debt since its establishment nearly
five years ago.

"The Uijeongbu Light Rail Transit Company's debt has surpassed
its assets [220 billion won] and the rail line no longer provides
a service of value," said the Seoul Bankruptcy Court in its
ruling on May 26, the report relays. "It also failed to find a
solution to address further losses down the road."

The company filed bankruptcy in January, Joongang Daily relates.

The Uijeongbu Light Rail Transit Company was established in July
2012 with government and private investments, and is the first
such public-private enterprise to go bankrupt in South Korea,
according to the report. The light rail trains, smaller in size
and shorter than subway trains, run 11.1 kilometers (6.9 miles)
from Balgok Station to Tapseok Station on the Uijeongbu Line, or
U Line, in Uijeongbu, Gyeonggi. The line was expected to draw
nearly 80,000 commuters a day in its first year, according to
figures obtained by the company from a consulting agency, but it
drew only around 12,000 per day, says Joongang Daily.

"The Uijeongbu Light Rail Transit Company was the result of
unrealistic planning and hopes of creating a publicly and
privately invested enterprise," Joongang Daily quotes Lee Ui-
hwan, the policy director of a civic group that is demanding an
investigation into what went wrong with the enterprise, as
saying. "The company's management structure was so inefficient in
that it completely relied on the profit from the passengers to
pay back the investments."

The establishment of the Uijeongbu Light Rail Transit Company and
its operations were led by the Uijeongbu city government, which
gathered investments from private entities, the report notes.

Joongang Daily says the project's seven private developers,
including GS E&C and Korea Development Corporation, paid for
52 percent, or KRW385.2 billion, of the total KRW676.7 billion
invested.

The report relates that the central government paid
KRW84.6 billion, the Gyeonggi provincial government
KRW4.6 billion and the Uijeongbu city government KRW119.9
billion. The investors split and paid the remaining KRW82.4
billion together. According to the report, the Uijeongbu city
government and the private developer had agreed that the city
government would cover some of the losses if the number of
passengers exceeded 50 percent of the expected level. Since this
was not reached, the debt increased over time.

In May and November 2014, the Uijeongbu city government tried to
boost the number of passengers by holding events, providing free
transportation for older adults and giving discounts to those
transferring from other means of public transportation, Joongang
Daily says. But after nearly five years of operation, the U Line
drew only 30 percent of its initially expected traffic.

"The government made a mistake in expecting more than the usual
number of passengers for its rail line," the report quotes Kim
Dong-seon, a professor of traffic science at Daejin University in
Pocheon, Gyeonggi, as saying. "Usually, only 10 percent of the
city's population uses a light rail transit. So in Uijeongbu's
case, it should have expected that about 44,000 people would use
the line daily, instead of twice that amount."

Although the court has pronounced the light rail transit company
bankrupt, it will continue operating until the city government
announces another means of running the railway, Joongang Daily
notes.

"The city government will either run it itself or find another
developer who can take charge," said Uijeongbu Mayor Ahn Byung-
young in a press conference on on May 26, Joongang Daily relays.

If the city government decides to run the railway operations
itself, then it will have to pay for the annual operations cost
of KRW5 billion as well as the KRW220 billion fee to the private
developer for terminating the contract, Joongang Daily adds.



                             *********

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 Joseph Cardillo at 856-381-8268.



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