TCRAP_Public/170720.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

            Thursday, July 20, 2017, Vol. 20, No. 143

                            Headlines


A U S T R A L I A

JENNARDS PORT: Second Creditors' Meeting Set for July 26
JOLLY'S TRANSPORT: First Creditors' Meeting Set for July 26
MACRO GROUP: Court Orders Winding Up of 18 Associated Companies
ROBKO CONSTRUCTION: First Creditors' Meeting Set for July 27
SAJKOV HOLDINGS: First Creditors' Meeting Set for July 26

TEN NETWORK: Billionaire's Advisers Feared Firm's Insolvency
WAFL SPV: First Creditors' Meeting Set for July 26


C H I N A

CHINA JINJIANG: Moody's Assigns Ba2 Corporate Family Rating
COUNTRY GARDEN: Fitch Rates Proposed USD Senior Notes BB+
GEMDALE EVER: Moody's Assigns Ba3 Rating to Proposed Bonds
REWARD SCIENCE: Moody's Lowers CFR to B2; Outlook Negative


I N D I A

A. K. L. INFRACON: ICRA Reaffirms B+ Rating on INR5.50cr Loan
ADLABS ENTERTAINMENT: ICRA Cuts Rating on INR1,100cr Loan to D
AIR INDIA: Annual Net Loss Narrows to INR3,643 crore
AKANSHA SHIPBREAKING: Ind-Ra Affirms B- Long-Term Issuer Rating
ALLIED ASSOCIATES: Ind-Ra Assigns B+ LT Issuer Rating

ALLIX CERAMIC: CARE Assigns B+ Rating to INR8.21cr LT Loan
AMBICA TIMBER: CARE Reaffirms B+/A4 Rating on INR14cr LT Loan
ASTRA LIGHTING: CARE Reaffirms D Rating on INR6.33cr Loan
ASUTI TRADING: CARE Lowers Rating on INR115cr Bank Loan to D
ATIBIR HI-TECH: Ind-Ra Moves BB+ Issuer Rating to Non Cooperating

ATM GLOBAL: CARE Reaffirms B+ Rating on INR9cr LT Loan
BEC FERTILIZERS: CARE Lowers Rating on INR63.70cr LT Loan to D
BETA WIND: CARE Assigns 'D' Rating to INR969.70cr LT Loan
BIR STEELS: Ind-Ra Migrates BB Issuer Rating to Non Cooperating
DHANEE INTERNATIONAL: CARE Reaffirms 'D' Rating on INR5.25cr Loan

EARTH STAHL: CARE Reaffirms 'D' Rating on INR17.60cr LT Loan
ESSAR STEEL: Wins Nod to Oppose Lenders' Insolvency Action Bids
FEPL ENGINEERING: CARE Lowers Rating on INR3.50cr Loan to D
FINE WOOD: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
KALYANESWARI POLYFABS: CARE Assigns B Rating to INR9.95cr Loan

M.B PARIKH: CARE Assigns B+ Rating to INR6cr LT Loan
MAHALASA DURGA: ICRA Reaffirms B+ Rating on INR4.50cr Loan
MASCOT CEMENT: CARE Assigns 'B' Rating to INR12cr LT Loan
MONNET ISPAT: NCLT Declares Firm Insolvent Despite JSW Offer
OSCAR INVESTMENTS: Ind-Ra Cuts Bank Loans and NCD Ratings to 'C'

PARAYIL FOOD: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable
RHC HOLDING: Ind-Ra Lowers INR2,000MM Secured LT NCDs Rating to D
RUG RESOURCES: Ind-Ra Migrates B+ Rating to Non-Cooperating
SAANVI ASSOCIATES: CARE Assigns 'B' Rating to INR10.25cr Loan
SAMDARIYA BUILDERS: ICRA Ups Rating on INR38.65cr Loan to 'B'

SANAKA EDUCATIONAL: CARE Assigns B+ Rating to INR49.42cr Loan
SHIRKE RECREATION: Ind-Ra Affirms BB LT Issuer Rating
SHREE KRISHNA: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Neg.
SHRIKALYANI AGRITECH: CARE Cuts Rating on INR10.31cr Loan to B+
SHWETA BREEDING: CARE Reaffirms 'B' Rating on INR5.70cr Loan

SUMEDHA VEHICLES: CARE Assigns B+ Rating to INR15cr LT Loan
SUPERTECH LIMITED: CARE Lowers Rating on INR1,900cr Loan to D
SUPERTECH PRECAST: CARE Lowers Rating on INR38.53cr Loan to D
SUPERTECH REALTORS: CARE Lowers Rating on INR735cr LT Loan to D
SUPERTECH TOWNSHIP: CARE Lowers Rating on INR340cr Loan to D

TM MOTORS: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
VRAJ AND VAJ: CARE Lowers Rating on INR6cr LT Loan to B+
VRIDDHI INFRATECH: CARE Assigns 'B' Rating to INR15cr LT Loan


J A P A N

TOSHIBA CORP: Nomura Asset Votes Against Tsunakawa Reappointment


N E W  Z E A L A N D

ROSS ASSET: 160 'Overpaid' Investors Offered NZ$21.6MM Settlement


V I E T N A M

DUNG QUAT: Nearly 1,000 Workers Worry About Shipyard Bankruptcy


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A U S T R A L I A
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JENNARDS PORT: Second Creditors' Meeting Set for July 26
--------------------------------------------------------
A second meeting of creditors in the proceedings of Jennards Port
Macquarie Pty Ltd, trading as "Clark Rubber Port Macquarie" and
"Port Macquarie Clark Rubber", has been set for July 26, 2017, at
3:30 p.m., at the offices of Deloitte Financial Advisory Pty Ltd
Level 19, Eclipse Tower, 60 Station Street, in Parramatta, NSW.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 25, 2017, at 4:00 p.m.

Neil Robert Cussen and Michael James Billingsley of Deloitte were
appointed as administrators of Jennards Port on June 21, 2017.


JOLLY'S TRANSPORT: First Creditors' Meeting Set for July 26
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Jolly's
Transport Services Pty Ltd will be held at Argyle Ballroom,
Parmelia Hilton Perth, 14 Mill Street, in Perth, WA, on
July 26, 2017, at 10:30 a.m.

Andrew John Cummins, Peter Paul Krejci and John Carrello of BRI
Ferrier were appointed as administrators of Jolly's Transport on
July 17, 2017.


MACRO GROUP: Court Orders Winding Up of 18 Associated Companies
---------------------------------------------------------------
The Federal Court of Australia has ordered the winding up of 18
companies associated with the Macro Group, all of which have
Desiree Veronica Macpherson as a director.

The companies 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;
EDWY14 WA Pty Ltd;
MCKST Pty Ltd;
Newkins WA Pty Ltd;
Kurst WA 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.

Justice Barker made the orders to wind up the companies on the
grounds that it would be just and equitable to do so, appointing
Mr. Hayden Leigh White and Mr. Matthew David Woods of KPMG as
joint and several liquidators of all 18 companies.

ASIC has concerns that the companies have been involved in
multiple breaches of the Corporations Act, were not being
properly managed and were potentially insolvent.

The winding up of the companies is part of ASIC's ongoing
investigation into a number of land developments in the Pilbara
region of Western Australia, in particular a development known as
'The Newman Estate', which was subject to ASIC action and Federal
Court permanent restraint orders in May last year.

In its application, ASIC alleged that the companies were
connected with fundraising efforts for property developments
associated with the Macro Group, including The Newman Estate.

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

One of the companies named in ASIC's original application for
wind up orders, Macoften Pty Ltd, has, subsequent to ASIC's
application, been wound up by another party. Consequently, ASIC's
own application to wind up Macoften was discontinued.


ROBKO CONSTRUCTION: First Creditors' Meeting Set for July 27
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Robko
Construction Pty. Ltd., trading as Robko Construction, will be
held at Boardroom of Servcorp Adelaide, Level 24, Westpac House,
91 King William Street, in Adelaide, SA, on July 27, 2017, at
1:00 p.m.

Gavin Moss and Trent McMillen of Chifley Advisory Pty Ltd were
appointed as administrators of Robko Construction on July 17,
2017.


SAJKOV HOLDINGS: First Creditors' Meeting Set for July 26
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Sajkov
Holdings Pty Ltd and D Sajkov Pty Ltd will be held at Level 4, 12
Pirie Street, in Adelaide, SA, on July 26, 2017, at 11:00 a.m.

Alan Geoffrey Scott and George Divitkos of BRI Ferrier were
appointed as administrators of Sajkov Holdings on July 14, 2017.


TEN NETWORK: Billionaire's Advisers Feared Firm's Insolvency
------------------------------------------------------------
Lucy Battersby at The Sydney Morning Herald reports that legal
action by Ten Network's administrators this week has unearthed
two letters from its billionaire shareholders' advisers that
resulted in the board calling in corporate undertakers to manage
the television network and put it up for sale.

One adviser for the biggest single shareholder, Bruce Gordon's
investment vehicle Birketu, also revealed his lack of confidence
in Ten's management to improve its financial performance, SMH
relates.

According to SMH, letters released through Federal Court filings
reveal that billionaire shareholders and guarantors, Lachlan
Murdoch's company Illyria and Mr. Gordon, advised the board on
June 9 through Fort Street Advisors that "neither will extend,
nor increase and extend, its existing guarantee in respect of the
facility, nor agree to the deferral of the accrued guarantee
fees".

A few days earlier, Ten provided forecasts showing withdrawals
from a AUD200 million facility, which they were guaranteeing,
would reach AUD147 million that week and AUD173 million by the
week ending July 14, the report says.

"We and our clients are concerned that there are not reasonable
grounds to expect continuing solvency on Ten's part," Fort Street
wrote, notes the report.

SMH says the letters reveal the billionaires feared Ten's
insolvency and demanded written details from the board within two
days justifying why they thought Ten and its subsidiaries were
solvent and not at risk of default.

They estimated that Ten would not be able to repay the existing
AUD200 million loan and this could prompt the lender --
Commonwealth Bank of Australia -- to declare the loan in default,
SMH relates. This would make the three guarantors -- Mr. Murdoch,
Mr. Gordon, and James Packer -- personally liable for the full
amount, according to a 2013 loan agreement approved by
shareholders, the report relays.

The board later told shareholders this correspondence left
directors with "no choice but to appoint administrators".  On
June 14, it officially appointed KordaMentha as voluntary
administrator and a creditors' meeting was held on June 26, the
report notes.

That administration process has now been extended to November,
after the Federal Court on July 17 granted KordaMentha a 120-day
extension, SMH states. Ten has also been granted access to more
money after the guarantors agreed it could draw down another
AUD30 million of the CBA facility. It had used AUD97 million at
the time of administration, SMH discloses.

According to SMH, the three guarantors have applied as creditors
owed AUD11 million each in fees. Mr. Murdoch and Mr. Gordon have
since lodged an application with the competition watchdog to
jointly buy Ten, although this is not allowed under existing
media law, the report says.

On July 17, the court also agreed to appoint an independent
liquidator to investigate Ten's payments and KordaMentha's
conduct, amid concerns the administrator was not independent
enough due to work it did for the network prior to its
appointment as administrator, SMH adds.

                        About Network Ten

Network Ten is a division of Ten Network Holdings, one of
Australia's leading entertainment and news content companies,
with free-to-air television and digital media assets. Ten Network
Holdings includes three free-to-air television channels - TEN/TEN
HD, ELEVEN and ONE - in Australia's five metropolitan markets of
Sydney, Melbourne, Brisbane, Adelaide and Perth, plus the online
catch-up and streaming service tenplay.

As reported in the Troubled Company Reporter-Asia Pacific on
June 15, 2017, KordaMentha Restructuring partners Mark Korda,
Jenny Nettleton and Jarrod Villani have been appointed voluntary
administrators to Network Ten.

"Network Ten will continue to operate under its existing
management and operating structures with KordaMentha oversight.
Customers, employees and other stakeholders are assured that the
administrators intend to keep the business running. Viewers can
expect the same content they currently enjoy on Network Ten,"
KordaMentha said in a statement.

The appointment will allow the voluntary administrators to
explore options for the recapitalisation or sale of Network Ten.


WAFL SPV: First Creditors' Meeting Set for July 26
--------------------------------------------------
A first meeting of the creditors in the proceedings of WAFL SPV
Pty Ltd. will be held at at Argyle Ballroom, Parmelia Hilton
Perth, 14 Mill Street, in Perth, WA, on July 26, 2017, at 12:00
p.m.

Andrew John Cummins, Peter Paul Krejci and John Carrello of BRI
Ferrier were appointed as administrators of WAFL SPV on July 17,
2017.



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C H I N A
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CHINA JINJIANG: Moody's Assigns Ba2 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a first-time corporate
family rating of Ba2 to China Jinjiang Environment Holding Co.
Ltd. (CJE).

At the same time, Moody's has also assigned a Ba3 senior
unsecured rating to CJE's proposed USD bond issuance.

The rating outlook is stable.

The proceeds from the bond will be used mainly for the company's
overseas investments.

RATINGS RATIONALE

"The Ba2 rating reflects CJE's solid market position and
geographically diversified waste-to-energy (WTE) assets in China,
fairly high visibility of cash flows, and the currently favorable
industry policies that support its credit profile over the next
one to two years," says Ralph Ng, a Moody's Analyst.

"At the same time, the rating reflects potential challenges
associated with CJE's ambitions for overseas expansion, including
India," adds Ng. "Such an expansion brings with it the potential
for higher business and regulatory risks, especially given CJE's
limited experience in those markets compared to its entrenched
position in China."

The rating also considers CJE's currently moderate financial
leverage but which Moody's expects to increase over the medium
term to partially fund its growth plans.

The company's leading market position in China reflects its
first-mover advantage in the WTE industry, established since
1998, technological know-how, and concession agreements with
regional and local governments.

Specifically, Moody's considers CJE's business model to have a
good degree of cash flow visibility, that is underpinned by long-
term concessions (typically 25-30 years), as characterized by
guaranteed minimum volumes for feedstock and stable tariffs.

"However, the higher business and regulatory risks which come
from overseas expansion, the fragmented and fast-growing
character of the industry in China, and heavy capex levels are
key rating constraints," adds Ng.

Moody's believes that CJE's overseas expansion brings additional
risks to its overall business profile. Potential regulatory
uncertainties and execution risks from such expansion could
affect the company's cost recovery and returns. It announced its
first and second WTE projects in India in 2Q 2017.

While CJE is the leading WTE company in China, the company's
scale -- in Moody's view -- is still relatively small when
compared to other rated peers, making it more vulnerable to
financial shocks and lessening its ability to absorb risks.

Moreover, Moody's notes that the WTE industry in China is
fragmented and growing rapidly, a situation which provides growth
opportunities for CJE. However, it also implies higher financial
risks for the company and introduces competition among players,
potentially leading to lower bidding prices, thereby weakening
the bargaining power of CJE.

Furthermore, CJE's rating is constrained by the evolving
regulatory regime governing China's WTE and power industry. While
the on-grid WTE power tariff of RMB0.65/kWh is a uniform feed-in
tariff in China, there is limited transparency and predictability
of the tariff adjustment mechanism.

Having said that, Moody's expects that supportive policies for
the WTE industry, for example, guaranteed power dispatched and
subsidies for renewables, partially mitigate such risks.

Moody's expects the future capex of CJE, in alignment with its
growth strategies, will pressure its financial metrics and
constrain its rating.

Moody's estimates CJE's annual capex to peak during 2017E-2018E
at RMB2.3 billion, of which overseas projects will account for
30%, compared with total capex of RMB1.3 billion in 2016.

As such, Moody's expects the company's projected financial
metrics in 2017E-2019E to soften compared with the levels seen in
and before 2016, and stay at a moderate level thereafter, such
that its adjusted funds from operations (FFO)/ debt will remain
within 15%-17%, its retained cash flows (RCF)/debt will remain
within 11%-13%, and FFO interest coverage will be around 4x. This
level of credit metrics supports its Ba2 corporate family rating.

Moody's believes the credit profile of Hangzhou Jinjiang Group
(unrated), CJE's key shareholder, and connected-party
transactions do not materially affect CJE's financial health, and
the risk of cash leakage is manageable within the Ba2 rating.
Such risks are partly mitigated by CJE's listing status and the
manageable level of connected-party transactions.

The senior unsecured rating of Ba3 on the proposed bond issuance
is one notch below CJE's corporate family rating of Ba2, because
the company has substantial debts, mainly on secured basis, at
its operating subsidiary level, which complicates the expected
recovery of the USD bond, in the event of default.

Moody's expects CJE's subsidiary debt to total assets to hover at
around 30%, after the issuance of the bond, reflecting high
structural subordination risks to the senior unsecured USD bond
holder.

The stable outlook on CJE reflects Moody's expectations that the
company will maintain its financial profile over the next 12-18
months in line with Moody's base case expectation, and that
current policy settings will persist over that period. The stable
outlook also considers the absence of any material refinancing
risk over the same period.

Upward rating trend is limited over the near term, given the
company's growth strategy. Positive rating movement will arise
over time if the company (1) demonstrates a track record of
implementing its growth strategies at a manageable pace, (2)
improves its financial profile, and (3) maintains a very limited
volume of connected-party transactions.

Financial metrics indicative of a review for upgrade include
adjusted FFO interest cover exceeding 5.5x and RCF/debt above 15%
on a sustained basis.

On the other hand, downward rating pressure will arise if the
company (1) executes heavily debt-funded operations, (2) deviates
from its business strategy, (3) adopts a more aggressive dividend
policy, and (4) fails to maintain its stable operations in China
and overseas.

Financial indicators reflecting the above scenario include FFO
interest cover below 3.0x and RCF/debt below 10% over a prolonged
period.

A high volume of related-party transactions, overseas expansion
and unfavorable regulatory changes, which materially jeopardize
the operational and financial health of the company, will also
lead to a rating review.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.

China Jinjiang Environment Holding Co. Ltd. (CJE) is a Singapore-
listed waste-to-energy (WTE) operator in China. It had the
largest operating waste treatment capacity in the country at end-
2016.

CJE operates the whole value chain of WTE, from planning,
construction, operation and management of the facilities. At end-
April 2017, CJE had 20 operating WTE facilities of 28,230 ton/day
and 493MW in 12 provinces in China.


COUNTRY GARDEN: Fitch Rates Proposed USD Senior Notes BB+
---------------------------------------------------------
Fitch Ratings has assigned China-based Country Garden Holdings
Co. Ltd.'s (BB+/Stable) proposed US dollar senior notes a
'BB+(EXP)' expected rating. The notes are rated at the same level
as Country Garden's senior unsecured rating because they
constitute its direct and senior unsecured obligations. The final
rating is subject to the receipt of final documentation
conforming to information already received.

Country Garden's ratings are supported by strong contracted sales
growth, high financial flexibility with low interest costs and a
record of strong execution. The ratings are constrained by its
opportunistic growth strategy, which increases financial
performance volatility, and a negative trend in its cash flow
from operations (CFO). Moving into higher-tier cities is a
positive development in Country Garden's progression to becoming
a nationwide homebuilder. However, it may take another 12-18
months before the process reaches fruition.

KEY RATING DRIVERS

Expansion Increases Volatility: Fitch has observed that Country
Garden's growth and expansion follows a three- to four-year
cycle. It achieved significant contracted sales growth of 89% in
2016, which considerably raised its leverage and churn ratio.
Leverage peaked at 41% in 2016, but the higher debt did not
pressure churn ratio as measured by attributable contracted
sales-to-gross debt, which rose to 1.5x, compared with its lowest
level of 1.1x-1.2x in 2015. Fitch uses three-year average ratios
to reflect volatility and expects Country Garden to maintain its
three-year average leverage through the cycle at below 35% and
its three-year average asset turnover ratio at around 1.5x.

Positive CFO Unsustainable: Country Garden's CFO is likely to
turn negative, after reaching CNY40 billion in 2016, due to land
acquisition and construction expenditure for the large surge in
projects it sold in 2016. Fitch may consider taking positive
rating action if Country Garden continues to expand while
maintaining neutral CFO in the next one to two years.

Robust Contracted Sales: Country Garden achieved an 89% increase
in attributable contracted sales to CNY235 billion in 2016; one
of the highest growth rates achieved by Chinese homebuilders
during the year. This was supported by its land-bank
repositioning since late 2015, with nearly 60% of 2016 contracted
sales coming from products targeted at tier 1 and 2 cities,
compared with 52% in 2015; 65% of its newly acquired CNY128
billion attributable land bank in 2016 also targets Tier 1 and 2
cities.

Guangdong Leadership Supports Growth: Fitch believes Country
Garden's strong home-base position in Guangdong province enables
its rapid land-bank repositioning to support sales growth. Around
85% of the value of saleable resources targeting Tier 1 cities in
2016 also targeted customers in Shenzhen and Guangzhou, compared
with only 15% for Beijing and Shanghai. Fitch expects the
contracted sales contribution from Guangdong to remain at around
30%, given Country Garden's land-bank repositioning was mainly in
the province.

Gradual Margin Recovery: Fitch estimates that Country Garden's
2017-2018 EBITDA margin will remain stable at around 17%-18%, due
to the recognition of wider-margin contracted sales. Its 2016
EBITDA margin edged up slightly to 17.4% from 17% in 2015; which
was at a historical low, as the company recognised lower-margin
products, such as high-rise residential apartments. Fitch
believes margins could gradually improve to around 20%-21% by
2018-2019, as Country Garden recognises more higher-margin
contracted sales and continues de-stocking low-margin products.
Successful product repositioning to target Tier 1 and 2 cities
will help EBITDA due to better margins, churn and liquidity.

DERIVATION SUMMARY

Country Garden is well-positioned between peers with 'BBB-' and
'BB' ratings. Its CFO trend remains negative, while CFO of
Longfor Properties Co. Ltd. (BBB-/Stable) and Shimao Property
Holdings Limited (BBB-/Stable) has a neutral-to-positive trend.
Country Garden has the largest contracted sales, EBITDA and churn
in the peer group. This is offset by its EBITDA margin. In
addition, Country Garden's leverage is weaker compared with pure
homebuilders, such as Shimao, and similar to 'BBB-' rated
homebuilders with large investment properties, such as Longfor
and China Jinmao Holdings Group Limited (BBB-/Stable); but with
greater volatility.

No Country Ceiling or parent/subsidiary linkage aspects affect
Country Garden's rating. Companies in this sector are unlikely to
be rated above 'BBB+' due to operating environment risks.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:
- contracted sales by gross floor area to increase by 10%-20%
   over 2017-2018;
- average selling prices for contracted sales to increase by up
   to 5% over 2017-2018;
- EBITDA margin to remain stable at 17%-18% in 2017-2018; and
- net debt, including perpetuals, to be around CNY70 billion-95
   billion in 2016-2017.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- Achieving sustainable neutral or positive cash flow from
   operation. This may be achieved if Country Garden maintains a
   stable growth pace.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- A three-year average EBITDA margin below 20% for a sustained
   period (average 2014-2016: 19%).
- A three-year average net debt/adjusted inventory ratio above
   40% for a sustained period (average 2014-2016: 38%).
- A three-year average contracted sales/gross debt ratio below
   1.3x for a sustained period (average 2014-2016: 1.5x).

LIQUIDITY

Sufficient Liquidity: Country Garden had CNY96 billion of cash on
hand, including CNY12 billion in restricted cash, with undrawn
bank facilities of approximately CNY163 billion, as at end-2016.
This was more than sufficient to cover its short-term debt of
CNY46 billion.

Diversified Funding Channels: Country Garden has many financing
options, including equity issuance, perpetual capital securities,
offshore notes, onshore debentures and bank borrowings. Its
weighted-average borrowing cost was 5.3% in 2016.


GEMDALE EVER: Moody's Assigns Ba3 Rating to Proposed Bonds
----------------------------------------------------------
Moody's Investors Service has assigned a Ba3 backed senior
unsecured rating to the proposed bonds to be issued by Gemdale
Ever Prosperity Investment Limited, a wholly owned subsidiary of
Famous Commercial Limited (Ba3 stable).

The rating outlook is stable.

The proposed bonds will be guaranteed by Famous. They are also
supported by a deed of equity interest purchase undertaking and a
keepwell deed between Famous, Gemdale Corporation (Ba2 stable)
and the bond trustee.

The proceeds from the issuance will be used to refinance Gemdale
group's existing indebtedness and for general corporate purposes.
Famous Commercial Limited, Gemdale Ever Prosperity Investment
Limited and Gemdale Corporation are herein collectively referred
to as the Gemdale group.

RATINGS RATIONALE

"The proposed bond issuance will not have a material impact on
either Gemdale Corporation's or Famous' credit metrics, because
the proceeds will largely be used to repay Gemdale group's
existing debt," says Kaven Tsang, a Moody's Vice President and
Senior Credit Officer.

In addition, the proposed issuance will moderately lengthen the
companies' debt maturity profile.

The Ba3 bond rating continues to reflect Famous' standalone
credit profile and a two-notch rating uplift, based on Moody's
expectation that Gemdale Corporation will provide financial and
operational support to Famous, in times of stress.

Famous' standalone credit profile continues to be constrained by
its small-scale operations, Moody's expectation of volatility in
its sales performance, and weak credit metrics.

The two-notch uplift takes into consideration Gemdale
Corporation's: (1) full ownership of Famous; (2) track record of
financial support to Famous; and (3) operation of Famous'
projects, which affords cost efficiencies and a strong brand
name.

Moody's expects that Gemdale Corporation has the ability to
provide support, if needed. Its Ba2 corporate family rating
reflects its established brand name and track record in China's
(A1 stable) property market, disciplined management, healthy
financial metrics, adequate liquidity and good access to funding.

Moody's expects Gemdale Corporation's projected revenue-to-
adjusted debt and EBIT-to-interest to register around 100% and
5.0x over the next 12-18 months, given its strong contracted
sales.

At end-March 2017, the company's cash totaled RMB21.1 billion,
which was equivalent to 270% of its short-term debt at the same
date.

Famous' stable rating outlook reflects Moody's expectation that
Gemdale Corporation will provide Famous with financial and
operational support, if needed.

Upward rating pressure could emerge if: (1) Famous successfully
implements its business plan; (2) it improves its scale and
diversity to reduce sales and earnings volatility; (3) it
improves its financial profile with EBIT/interest exceeding 3.0x;
and (4) Gemdale Corporation's rating is upgraded.

Famous' rating could come under downward pressure if it: (1)
fails to implement its business plan, such that its sales and
operating cash flow are weaker than Moody's had anticipated;
and/or (2) materially accelerates project development and rolls
out an aggressive land acquisition plan, such that its financial
profile weakens, with EBIT/interest falling below 1.5x on a
sustained basis.

In addition, any evidence of weakening support from Gemdale
Corporation, or a substantial deterioration in Gemdale
Corporation's credit profile could be negative for Famous'
rating.

The principal methodology used in this rating was Homebuilding
And Property Development Industry published in April 2015.

Incorporated in China and listed on the Shanghai Stock Exchange,
Gemdale Corporation is one of the leading developers in China's
residential property sector. The company began its property
development business in Shenzhen in 1993 and has progressively
expanded to cover China's seven major regions. At end-2016, its
land bank totaled around 29.5 million sqm in saleable gross floor
area.

Incorporated in Hong Kong in 1995, Famous Commercial Limited is a
wholly owned subsidiary of Gemdale Corporation. Famous was
initially established as a sales office in Hong Kong to sell
Gemdale Corporation's property projects to overseas customers,
but later developed as an offshore holding company to house some
of Gemdale Corporation's property projects in China and overseas.
It also serves as a funding vehicle in the overseas market.


REWARD SCIENCE: Moody's Lowers CFR to B2; Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating (CFR) of Reward Science and Technology
Industry Group Co., Ltd., (Reward) as well as the rating on the
7.25% 3-year backed senior unsecured notes issued by Reward
International Investment Limited and guaranteed by Reward.

The ratings outlook remains negative.

RATINGS RATIONALE

"The downgrade reflects Moody's expectations that the company's
leverage will remain high, given the volatility in its operating
performance and its dependence on the dairy segment for operating
cash flows," says Gloria Tsuen, a Moody's Vice President and
Senior Analyst.

"The downgrade also reflects the low transparency in the
company's financial disclosure, which is an area for
improvement," adds Tsuen.

The previous B1 CFR was based on the expectation that the company
would deleverage to below 4.5x by the end of 2017.

However, the significant volatility in its revenue and margins --
partly a result of the company's relatively small size and
limited market shares -- will make it challenging for Reward to
achieve that level of leverage. Moody's estimates Reward's
leverage will be in the 5.5x-6.0x range in the next 6-12 months,
which is more commensurate with a B2 rating.

In addition, the delay in the disclosure of the spin-off of part
of its daily consumer products business reflects low
transparency. This is negative for the company's ratings.

Based on the first public financial statement filing by its
standalone daily consumer products segment, Beijing Luowa Daily
Chemicals Limited (unrated), Reward's operating cash flow comes
from a narrower base than Moody's previous expectations. Luowa
Daily Chemicals' reported operating cash flow totaled only 4% of
Reward's consolidated reported operating cash flow in 2016. This
means that over 95% of Reward's operating cash flow depended on
the company's remaining businesses, mainly its dairy segment
which is more exposed to commodity price cycles and regulatory
risks than Luowa Daily's cleaning products.

Reward is in the process of listing Luowa Daily Chemicals on
China's National Equities Exchange and Quotations.

In 2015, Reward spun off a portion of its daily consumer products
business that it did not deem material, but only disclosed this
spin-off in June 2017. Considering that the transaction involved
related parties, the recent disclosure shows that there is
meaningful room for improvement in the transparency and
timeliness of the company's communication with investors.

Moody's expects Reward's liquidity will remain adequate. Its
reported cash balance of RMB6.6 billion at end-March 2017 is more
than enough to cover its RMB1.9 billion in short-term debt and
bills payable.

Reward's B2 CFR is supported by its: (1) vertically integrated
dairy supply chain, which helps to ensure product safety; (2)
growing cleaning products business; and (3) solid liquidity.

At the same time, the rating is constrained by the company's: (1)
small size and limited market shares; (2) new entry into the
highly competitive and highly regulated infant milk formula
market; (3) execution risks related to its growth-driven business
plan, including cross-border acquisitions (which Reward is new
to); and (4) high ownership concentration.

The negative outlook reflects the high volatility in Reward's
operating performance, its reliance on the dairy segment for
operating cash flows, high debt leverage, and the low
transparency in its disclosure.

There is no upward ratings pressure, given the negative outlook.
However, the outlook could return to stable if Reward: (1)
reduces the volatility in its operating performance, and (2)
reduces adjusted debt/EBITDA to below 5.5x in the next 12 months.

Downward rating pressure could emerge if: (1) Reward's
operational performance or liquidity weakens; (2) the company
fails to reduce leverage; or (3) it fails to maintain sound
corporate governance.

Credit metrics indicative of downgrade pressure include an
adjusted EBIT margin below 8% or adjusted debt/EBITDA above 6.0x
on a sustained basis.

The principal methodology used in these ratings was Global
Packaged Goods published in January 2017.

Headquartered in Beijing, Reward Science and Technology Industry
Group Co., Ltd. engages in the production and marketing of dairy
and other food products, as well as daily consumer products
(mainly cleaning products), and other businesses, such as the
leasing of commercial property and hotels.

It generated RMB7.6 billion in revenue in 2016, with 60% derived
from dairy and other food products, 29% from daily consumer
products, and 11% from other businesses.

Reward is a private company 96%-owned by its founder and
chairman, Mr. Hu Keqin, and his family.



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


A. K. L. INFRACON: ICRA Reaffirms B+ Rating on INR5.50cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating at [ICRA]B+ for the
fund-based facilities of INR5.50-crore (revised from INR3.50-
crore) of A. K. L. Infracon Private Limited. ICRA has also
reaffirmed the short-term rating at [ICRA]A4 for the non-fund
based bank facility of INR5.50 crore (revised from INR7.50 crore)
of AKLIPL. The outlook on the long-term rating is Stable.

                         Amount
  Facilities          (INR crore)    Ratings
  ----------          -----------    -------
  Fund-based Limits        5.50      [ICRA]B+ (Stable);
                                     reaffirmed

  Non Fund-based Limits    5.50      [ICRA]A4; reaffirmed

Rationale

The reaffirmation of the ratings takes into account AKLIPL's
small scale of operations at present and its limited order book
as of end May, 2017 resulting in revenue visibility in the short
term only. The ratings are also constrained by its exposure to
high client as well as geographical concentration risks since a
major part of the revenues and the current order book are
contributed by a few clients in West Bengal and Sikkim. The
highly fragmented and competitive nature of the industry, which
coupled with tender-based contract awarding system, keep a check
on the company's profitability.

The ratings also factor in the vulnerability of its profitability
to the movement in the raw material prices because of the absence
of price-escalation clause in the contracts. The ratings,
however, derive comfort from the established track record of the
promoter in the civil-construction business (with an experience
of more than three decades through its erstwhile proprietorship
concern), its reputed client profile leading to low counterparty
risk, and moderate financial profile as reflected by low gearing
levels and modest debt-coverage indicators.
In ICRA's opinion, the company's ability to increase the scale of
operations while improving profitability and maintaining a
conservative capital structure would remain key rating
sensitivities, going forward.

Key rating drivers

Credit strengths

  * Established track record of the promoter in the civil-
    construction business with an experience of more than
    three decades

  * Reputed client profile, primarily consisting of Government
    departments, leads to low counterparty risk

  * Moderate financial profile as reflected by low gearing and
    modest debt-coverage indicators

Credit weaknesses

  * Small scale of operations at present

  * Limited order book size as of end May, 2017 provides revenue
    visibility in the short term only

  * Exposure to client-concentration risk since a major portion
    of the revenues and current order book is contributed by a
    few clients

  * Susceptibility of margins to the volatility in raw material
    prices in the absence of price-escalation clause in the
    contracts

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

Description of key rating drivers:

AKLIPL was incorporated in June, 2013, with the transfer of
operations of the erstwhile proprietorship entity of the
promoter, M/s. A.K. Engineers, which was involved in the same
line of business since 1982. The entire contractual work executed
by the company remains limited to the civil construction in West
Bengal and Sikkim. Thus, AKLIPL remains exposed to high sectoral
as well as geographical concentration risks.

The civil-construction segment is characterised by intense
competition due to low complexity of work involved as well as low
entry barriers, which have resulted in presence of a large number
of players in this segment and highly competitive biddings for L-
1-based tenders, thereby putting pressure on margins. Moreover,
the company's profitability also remains vulnerable in the
absence of price-escalation clause in the contracts. AKLIPL's
order-book outstanding as on May 31, 2017 stood at a low level of
around INR13.90 crore, which provides revenue visibility over the
short term only. Going forward, the company's ability to secure
new work orders and successfully execute the same in time, while
maintaining its profitability, would remain key rating factors.
The operating income of the company witnessed a de-growth of ~36%
in FY2017, primarily on account of slowdown in the execution of
projects in hand. Aggressive bidding by a large number of players
for the tender-based government contracts keeps margins of all
the players under check. AKLIPL's working capital requirement
remained moderate over the years, as reflected by the net working
capital relative to operating income of 19% in FY2016.

AKLIPL is involved in construction of buildings, roads, bridges,
canals and sewerage distribution system in West Bengal and
Sikkim. The promoter has been involved in the civil-construction
business for more than three decades through its erstwhile
proprietorship concern, M/s. A.K. Engineers since 1982. However,
the operations of the concern were transferred to AKLIPL in July
2013.


ADLABS ENTERTAINMENT: ICRA Cuts Rating on INR1,100cr Loan to D
--------------------------------------------------------------
ICRA has revised the long-term rating on the INR1,100.0 crore
long-term loans of Adlabs Entertainment Limited to [ICRA]D from
[ICRA]BB+.

                       Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long-term loans       1,100.0      [ICRA]D; revised from
                                     [ICRA]BB+ (stable)

Rationale

The rating revision factors in some delays by the company in
servicing its debt obligations on account of weak liquidity
position. Despite a 53% growth in EBIDTA from INR39.8 crore in
FY2016 to INR60.7 crore in FY2017, the company could not achieve
the targeted cash break even.

Key rating drivers

Credit weaknesses

  * Recent delays in debt servicing emanating from lower-than-
    anticipated revenues

  * Significant interest costs to keep the cash flows stretched
    in the medium term, lengthening the breakeven period and
    requiring further investments or early monetization of assets
    to fund the losses

  * Seasonal nature of demand and any adverse exogenous factors
    during the peak season could severely impact the operating
    performance

  * Footfalls vulnerable to discretionary spend by consumers,
    indirectly impacted by the macro-economic conditions and
    also remains exposed to climatic risks

Description of key rating drivers:

The company's revenues were notably impacted during November and
December 2016, its peak season, on account of the demonetisation
exercise by the Government of India which had resulted in a drop
in footfalls. This further impacted its liquidity position. Apart
from seasonality and adverse exogenous factors, the footfalls
remain susceptible to discretionary spend by consumers,
indirectly impacted by the macro-economic conditions and also
remains exposed to climatic risks. The company's ability to
deleverage itself through land monetisation, achieve higher
footfalls at its theme park and water park, together with early
launch of the balance 171 rooms shall be crucial for improving
its liquidity profile and timely servicing its debt obligations.

Promoted by Mr. Manmohan Shetty and his family, Adlabs
Entertainment Limited, has set up an amusement park which is a
combination of a theme park, a water park, a snow park and
Novotel, a 4-star hotel -- all under the ImagicaUmbrella- at
Khopoli, spread over an area of 140 acres, with another surplus
area of 170 acres. The project was started in April 2011. The
theme park commenced partial operations and after a soft launch
on April 18, 2013, it commenced full scale operations from
November 1, 2013. The water park was commissioned from October 1,
2014, and the first phase of the hotel, comprising 116 rooms,
commenced in September 2015. The snow park started operating from
the first week of April 2016.

As on June 30, 2017, Mr. Manmohan Shetty and his family hold
54.37% stake in the company, with the rest being held by mutual
funds / FIIs and public.


AIR INDIA: Annual Net Loss Narrows to INR3,643 crore
----------------------------------------------------
The Times of India reports that Air India's net loss after tax
narrowed to INR3,643 crore and operating profit rose to INR300
crore in the last financial year, the government said on July 18.

TOI relates that the airline saw its total revenue, including
exceptional and extraordinary items, increase to INR22,146 crore
in 2016-17 period, as per provisional numbers provided by
Minister of State for Civil Aviation Jayant Sinha to the Rajya
Sabha.

The total revenue stood at INR20,524.56 crore in the year-ago
period, the report discloses.

According to TOI, the financial position seems to have improved
for the airline as it had posted a net loss after tax of
INR3,836.77 crore and an operating profit of INR105 crore in
2015-16 fiscal. However, the airline's expenditure went up to
INR25,789 crore in the last financial year, as per the
provisional numbers. In 2015-16, the same was lower at
INR24,361.33 crore.

TOI notes that against the backdrop of the Cabinet Committee on
Economic Affairs (CCEA) last month giving its in-principle
approval for Air India's strategic disinvestment, Sinha on July
18 responded to various queries related to the airline by way of
written replies to the Rajya Sabha.

Citing provisional figures, Sinha said Air India's total debt
stood at INR48,876.81 crore at the end of March 2017, TOI
relates.

"Air India is facing financial pressure and earning less profit
due to high debt burden as an offshoot of past accumulated
losses. The debt servicing is at around INR6,000 crore per
annum," TOI quotes the minister as saying.

To a query on whether Air India is facing financial pressure due
to laxity in operation and management of the airline, Sinha
replied in the negative, the report says.

"To implement the decision of the CCEA, appointment of
transaction adviser, legal adviser and asset valuer shall be
taken up as per terms and conditions and scope of work of
advisers/ valuer in accordance with the model RFPs (Request for
Proposals) suggested by the Department of Investment and Public
Asset Management," Sinha, as cited by TOI, said.

Noting that liquidity constraints continue to impact the
airline's smooth functioning, he said the company has been making
constant efforts for substituting its high cost working capital
loans with long term low cost debt, the report relays.

"Air India has been in consultation with various banks so that
the interest costs can come down substantially in the coming
years to improve its profits," the minister added, TOI notes.

                          About Air India

Air India Ltd -- http://www.airindia.com/-- is the flag carrier
airline of India owned by Air India Limited (AIL), a Government
of India enterprise. The airline operates a fleet of Airbus and
Boeing aircraft serving various domestic and international
airports. It is headquartered at the Indian Airlines House in
New Delhi.

As reported in the Troubled Company Reporter-Asia Pacific on
March 28, 2014, The Times of India said Air India got a breather
in the form of INR1,000-crore equity infusion from the government
on March 26, 2014.  According to the report, the airline's
unending financial stress had got worse as the Centre had so far
given INR6,000 crore instead of the promised INR8,500 crore for
the fiscal. As a result, AI had to bridge this gap by borrowing
money from banks at 11%-12%, which increased its debt servicing
burden, the report said.  Before the infusion, the government had
injected INR12,200 crore into AI and there was a shortfall in
equity to the tune of INR3,574 crore -- despite the airline
meeting most of the milestone-linked equity targets -- leading to
a liquidity crunch, the report related.  TOI said the airline's
aircraft and working capital debt was INR26,033 crore and
INR21,125 crore respectively on December 31, 2013. The airline is
expected to lose INR3,990 crore this fiscal.

Air India has posted continuous losses since 2007, according to
The Economic Times.


AKANSHA SHIPBREAKING: Ind-Ra Affirms B- Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Akansha
Shipbreaking Pvt Ltd's (ASBPL) Long-Term Issuer Rating at
'IND B-'. The Outlook is Stable. The instrument-wise rating
action is:

-- INR350 Non-fund-based limits affirmed with IND B-/Stable/IND
    A4 rating

KEY RATING DRIVERS

The affirmation reflects ASBPL's continued weak credit metrics,
with nominal revenue. According to provisional financials for
FY17, revenue was INR37 million (FY16: nil). In FY17, gross
interest coverage (operating EBITDA/gross interest expense) was
0.3x (FY16: negative 0.8x) and net financial leverage (total
adjusted net debt/operating EBITDAR) was 13.5x (FY16: negative
3.1x).

The ratings, however, continue to be supported by a high interest
income (FY17: INR 2.04 million; FY16: INR11.00 million) from
fixed deposits, which helped the company meet interest expenses
(INR3 million; INR6 million). The debt funded by directors and
related parties declined to INR12 million in FY17 from INR29
million.

RATING SENSITIVITIES

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

COMPANY PROFILE

ASBPL, incorporated in 1999, is engaged into ship breaking
activity. The company owns a plot in the Alang-Sosiya belt of the
Bhavnagar district. The company is managed by Mr. Amit Kumar
Deshraj Jain and Ms Kamladevi Jain.


ALLIED ASSOCIATES: Ind-Ra Assigns B+ LT Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Allied
Associates a Long-Term Issuer Rating of 'IND B+'. The Outlook is
Stable. The instrument-wise rating actions are:

-- INR70 mil. Fund-based working capital limit assigned with IND
    B+/Stable/IND A4 rating;

-- INR40 mil. Proposed fund-based working capital limit *
    assigned with Provisional IND B+/Stable/Provisional IND A4
    rating

* The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by Allied Associates to the satisfaction of Ind-Ra.

KEY RATING DRIVERS

The ratings reflect Allied Associates' small scale of operations,
moderate-to-weak EBITDA margins, weak credit metrics and tight
liquidity position. The ratings are further constrained by the
risk associated with the partnership structure of the
organisation.

According to provisional FY17 financials, revenue grew to
INR585.07 million (FY16: INR541.92 million), EBITDA margins
expanded to 2.99% (2.68%), gross leverage reduced to 5.95x
(8.78x) and net interest coverage increased to 1.53x (1.31x). The
company used about 97.96% on average of the fund-based limits
during the 10 months ended May 2017.

The ratings, however, are supported by the improvement in the
operating performance in FY17 due to the healthy demand of HMCL's
vehicle and spare parts and the company's promoter's experience
of over 10 years in the spare parts trading business.

RATING SENSITIVITIES

Positive: A substantial improvement in the firm's top line along
with improvement in the credit metrics could lead to a positive
rating action.

Negative: A decline in the operating profitability leading to
deterioration in the credit metrics could lead to a negative
rating action.

COMPANY PROFILE

Established in 2008, Allied Associates is an authorised
distributor of Hero MotoCorp Limited's spare parts in the Agra
region covering eight districts of Uttar Pradesh.


ALLIX CERAMIC: CARE Assigns B+ Rating to INR8.21cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Allix
Ceramic Private Limited (ACPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             8.21        CARE B+; Stable Assigned

   Short-term Bank
   Facilities             1.35        CARE A4 Assigned

Detailed rationale

The ratings assigned to the bank facilities of Allix Ceramic
Private Limited (ACPL) are constrained on account of small scale
of operations coupled with moderate profit margins and moderate
liquidity position. Furthermore, the ratings remained constrained
on account of susceptibility of its profit margins to volatility
in raw material and fuel (natural gas and coal) prices, presence
in highly fragmented industry along with fortunes dependent upon
the real estate market and foreign exchange fluctuation risk.

The ratings, however, derives strength from experienced promoters
of ACPL, locational advantage having presence into ceramic
cluster, comfortable capital structure and moderate debt
protection indicators.

The ability of ACPL to increase its scale of operations with
further improvement in profit margins along with better working
capital management will be the key rating sensitivity. Further,
maintaining favorable capital structure would also remain
crucial.
Detailed description of key rating drivers

Key Rating Weaknesses

Small scale of operations coupled with moderate profit levels
Overall scale of operations remained small marked by TOI of
INR18.66 crore FY17 (Provisional; refers to the period April 1
to March 31). Further, its profitability level stood at moderate
level during FY17 (Provisional).

Moderate liquidity position
The liquidity position stood moderate marked operating cycle of
49 days during FY17 (Provisional) and average fund based working
capital utilization remained at 60% for the past 12 months ended
May 2017.

Susceptibility of margins to volatility in raw material and fuel
prices along with presence into competitive industry
Profit margins of ACPL remain susceptible to changes in its
primary raw material i.e. clay and other materials coupled with
fuel prices. Further, high proportion of small scale units
operating in the ceramic industry has resulted in the fragmented
nature of the industry as well as intense competition within the
players thereby limiting pricing flexibility.

Key Rating Strengths

Experienced promoters coupled with presence into ceramic cluster
Promoters of ACPL hold more than a decade of experience into
similar line of operations. Further, manufacturing facilities
of ACPL are located at Morbi in Gujarat. Over 70% of total
ceramic tiles production in India comes from the Morbi cluster.

Primary raw materials are easily available from the local market
of Gujarat coupled with availability of inexpensive and skilled
labors, accessibility of water, power connection, gas connection
and the nearby location of the major seaport, Kandla leading to
facilitating delivery of finished products in a timely manner.

Comfortable Capital Structure and moderate debt protection
indicators
Capital structure marked by an overall gearing stood comfortable
and below unity on the back of low debt level compared to net
worth base as on March 31, 2017 (Provisional) while its debt
coverage indicators stood moderate marked by total debt to gross
cash accruals of 4.18 times as on March 31, 2017 (Provisional)
and Interest coverage remained at 2.17 times during FY
17(Provisional).

Morbi-based (Gujarat), ACPL was incorporated in the year 2013.
Currently, the company is managed by five directors Mr. Vinodbhai
Adroja, Mr. Prashantbhai Bhoraniya, Mr. Himatlal Aghara, Mr.
Bhavik Dava, and Mr. Rajnikant Patel. ACPL manufactures digitally
printed ceramic wall tiles from its manufacturing facility
located at Morbi, Gujarat and operates with an installed capacity
of 6000 boxes per day.

As per the provisional results for FY17, ACPL reported profit
after tax (PAT) of INR0.22 crore on a total operating income
(TOI) of INR18.66 crore as against INR0.05 crore on a TOI of
INR18.39 crore during FY16 (A).


AMBICA TIMBER: CARE Reaffirms B+/A4 Rating on INR14cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Ambica Timber Mart (ATM), as:

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long-term/Short-
   term Bank Facilities    14.00       CARE B+; Stable/
                                       CARE A4 Reaffirmed

   Short-term Bank
   Facilities               0.70       CARE A4 Reaffirmed

Detailed Rationale

The ratings assigned to the bank facilities of Ambica Timber Mart
(ATM) continue to remain constrained on account of its small
scale of operations coupled with moderate profit margins,
leveraged capital structure, weak debt coverage indicators and
moderate liquidity position in FY17 (refers to the period of
April 1 to March 31). Furthermore, the ratings continue to remain
constrained on account of its partnership nature of constitution,
its presence in highly fragmented and competitive nature of
industry, external environmental risk along with the foreign
exchange risk.

The ratings, however, derives strength from experienced partners
and location advantage.

The ability of ATM to increase its scale of operations coupled
with improvement in profitability, capital structure along with
efficient management of its working capital requirements are the
key rating sensitivities.

Detailed description of key rating drivers

Key Rating Weaknesses
Decline in scale of operations coupled with moderate profit
margins during FY17 (Prov.)
Total operating income (TOI) of ATM has declined by 33.49% y-o-y
and stood at INR6.87 on account of lower demand from the
customers. However, profit margins stood moderate during FY17.

Leveraged capital structure and weak debt coverage indicators
On the back of high debt level against that of low net worth base
and low level of cash accruals, capital structure stood leveraged
while debt coverage indicators stood weak during FY17.

Elongated operating cycle

Operating cycle elongated significantly during FY17 on account of
increase in the inventory and collection period while average
utilization of its working capital limits remained at 60% during
past 12 months period ended April 2017.

Key Rating Strengths

Experienced Partners
Mr Kaushal Patel being an active partner of ATM also holds a role
in Green Impact Realties as a proprietor. He holds diversified
experience of more than two decades in trading of timber, non-
basmati rice and real estate development.

Ahmedabad-based (Gujarat) ATM was formed in 1969 as a partnership
firm. However, Mr. Kaushal Patel (one of the existing partners)
joined ATM as a partner in 1990. He is also associated with ATM
Global Corporation (rated 'CARE B+; Stable/ CARE A4') and Green
Impact Realties. Overall, the firm is managed by four partners
with equal profit and loss sharing agreement between them to
undertake the business of saw mill & trading of teak woods. ATM
purchases teak

woods from both domestic & international markets (Tanzania,
Sudan) & sold it to various furniture manufacturers, dealers and
saw mills of Gujarat and New Delhi.

As per the provisional results for FY17, ATM reported PAT of
INR0.17 crore on a total operating income (TOI) of INR6.87 crore
as against PAT of INR0.23 crore on a TOI of INR10.33 crore during
FY16 (A). During 3MFY18 (Prov.), ATM achieved a TOI stood of
INR2.10 crore.


ASTRA LIGHTING: CARE Reaffirms D Rating on INR6.33cr Loan
---------------------------------------------------------
CARE Ratings reaffirmed/revised ratings on certain bank
facilities of Astra Lighting Limited (ALL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities
   (Term Loan)            6.33        CARE D Reaffirmed

   Long-term Bank
   Facilities
   (Fund Based Limits)     4.40       CARE D Revised from
                                      CARE C

   Short-term Bank
   Facilities (Non-fund-
   based Limits)           0.74       CARE D Revised from
                                      CARE A4

Detailed Rationale and key rating drivers

The revision in the long-term and short-term ratings assigned to
the bank facilities of Astra Lighting Limited (ALL) takes into
account the ongoing delays in debt servicing of the company due
to its weak liquidity position.

Detailed description of the key rating drivers

Ongoing delays in debt servicing
There are on-going delays in servicing the debt obligations. The
delays are on account of weak liquidity as the company is unable
to generate sufficient funds on timely manner.

Astra Lighting Limited (ALL) was incorporated in 1997 with
promoters and directors: Mr. Paramjit Singh Chahal, Mr. Parmeet
Singh Chahal and Mrs Gurbir Kaur. The company is engaged in the
manufacturing of High Intensity Discharge (HID) lamps used in
infrastructure projects, floodlighting of monuments, stadiums,
lighting of streets, highways and parking areas at its
manufacturing unit located at Solan, Himachal Pradesh with total
installed capacity of 15 lakh units per annum as on March 31,
2015. ALL procures raw material which mainly includes arc lights,
glass shells directly from manufacturers located in the near
vicinity. The company sells its products i.e. HID lamps directly
to various original.


ASUTI TRADING: CARE Lowers Rating on INR115cr Bank Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Asuti Trading Pvt, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Short-term Bank
   Facilities - LC       115.00      CARE D Revised from
                                     CARE A4+

   Long-term/Short-        5.00      CARE D/CARE D Revised from
   Term Bank Facilities              CARE BB+; Stable/CARE A4+
   -CC/LC

Detailed Rating Rationale and Key rating drivers

The revision in the ratings of ATPL takes in to account ongoing
delays in debt servicing owing to devolvement of letter of
credit as a result of strained liquidity position.

ATPL, incorporated in the month of April 1996, is engaged in to
trading of iron and steel products. It was incorporated by
Agarwal family which was subsequently bought by Mr. Siddhartha
Bagrecha in 2011. It mainly trades in iron and steel products
like - Hot Rolled Coils (HRC), Cold Rolled Coils and Sheets
(CRC/s), Alloy CRC, Galvanized sheets, Mils Steel Angle and Round
bar, etc. During FY16, the company has reported a total revenue
of INR 279.63 crore (Rs.161.46 crore in FY15) and a PAT of
INR1.28 crore in FY16 (Rs.1.06 crore in FY15).).


ATIBIR HI-TECH: Ind-Ra Moves BB+ Issuer Rating to Non Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Atibir Hi-Tech
Private Limited's (AHPL) 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:

-- INR91 mil. Fund-based limits migrated to Non-Cooperating
    Category with IND BB+ (ISSUER NOT COOPERATING) rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 27, 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 1994, AHPL manufactures mild steel ingots, mild
steel bars, and mild steel rod. It has a 48,000mtpa induction
furnace and a 40,000mtpa re-rolling mill. The company markets
bars and rods under the brand name SRIBIR, which contributes
almost 90% to its total revenue.


ATM GLOBAL: CARE Reaffirms B+ Rating on INR9cr LT Loan
------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
ATM Global Corporation (AGC), as:

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long Term/Short        9.00      CARE B+; Stable/
   Term Bank                        CARE A4 Reaffirmed
   Facilities

Detailed rationale

The rating assigned to the bank facilities of ATM Global
Corporation (AGC) continue to remain constrained on account of
its small scale of operations coupled with moderate profit
margins, leveraged capital structure, weak debt coverage
indicators and moderate liquidity position. Furthermore, the
ratings remains constrained on account of its proprietorship
nature of constitution, its presence in highly fragmented and
competitive nature of industry and seasonal nature of agro
industry.

The rating, however, derives strength from experienced proprietor
and location advantage.

The ability of AGC to increase its scale of operations coupled
with improvement in profitability, capital structure, debt
protection metrics along with efficient management of its working
capital requirements are the key rating sensitivities.

Detailed description of key rating drivers

Key Rating Weaknesses

Proprietorship nature of constitution
Being a proprietorship firm, AGC is exposed to inherent risk of
capital being withdrawn at time of personal contingency, and firm
being dissolved upon the death/retirement/insolvency of
proprietor.

Small scale of operations with moderate profitability
Overall scale of operations stood small marked by TOI of INR8.95
crore during FY17 (Provisional) and net worth base of INR1.14
crore as on March 31, 2017. Overall, profit margins stood
moderate during FY17.

Leveraged capital structure and weak debt coverage indicators
On the back of high debt level against that of low net worth base
and low level of cash accruals, capital structure stood leveraged
while debt coverage indicators stood weak during FY17 marked by
high total debt to GCA and low interest coverage ratio.

Moderate liquidity
The current ratio of AGC remained moderate at 1.28 times as on
March 31, 2017 (Prov.). The operating cycle of AGC elongated from
65 days during FY16 to 113 days during FY17 due to increase in
the collection period.

Key Rating Strengths

Experienced proprietor
Mr. Kaushal Patel, proprietor of AGC holds diversified experience
of more than two decades in the trading of timber, nonbasmati
rice along with the real estate development through his
association with Ambica Timber Mart and Green Impect Realties as
a partner.

Location advantage
AGC is located in Ahmedabad which is considered as convenient
place of food grains trading. The location also provides
proximity to sources of raw material access and smooth supply of
materials at competitive prices and lower logistic expenditure
(both on the transportation and storage). It enjoys good road,
rail and air connectivity leading to better lead time and
facilitating delivery of finished products in a timely manner.

Ahmedabad (Gujarat)-based AGC was formed in 2011 as a
proprietorship firm by Mr. Kaushal Patel. The firm is engaged
into trading of non-basmati rice and majorly it exports the same
to West Africa. AGC is purchasing non-basmati rice from Calcutta
(West Bengal) & Raipur (M.P.). Mr. Kaushal Patel is also working
as a partner in M/s Ambica Timber Mart (CARE B+; Stable, CARE A4)
and Green Impect Realties. Ambica Timber Mart is engaged into
trading of imported woods to retailers and saw mills and Green
Impect Realties is engaged into real estate development.

As per the provisional results for FY17, AGC reported PAT of
INR0.19 crore on a total operating income (TOI) of INR8.95
crore as against PAT of INR0.21 crore on a TOI of INR8.38 crore
during FY16 (A).


BEC FERTILIZERS: CARE Lowers Rating on INR63.70cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BEC Fertilizers Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             63.70      CARE D Revised from CARE B+

Detailed Rating Rationale & Key rating drivers

The revision in the ratings of BFL takes in to account on-going
delays in debt servicing owing to strained liquidity position.

BEC Fertilizers Limited (BFL) was incorporated in 2013 by Mr.
Veenu Jain, Mr. Viren Jain and Mr. Arjun Jain. The company is
part of BEC group (with flagship company Bhilai Engineering
Corporation Limited) which has its presence across diversified
business viz.engineering [manufacturing of high precision
equipment's catering mainly to railways, power, defense and
metals & minerals industry], fertilizers, agro chemicals and food
products. BFL is into manufacturing of Single Super Phosphate
(SSP, phosphatic fertilizer) as well as is into conversion to
value-added Granulated SSP. The company has plants located at
Bharuch in Gujarat, Pulgaon in Maharashtra and Bilaspur in
Chattisgarh.

During FY16 (refers to the period April 1 to March 31), BFL
posted total income of INR19.56 crore & for 9MFY17, BFL posted
total income of INR42.80 crore.


BETA WIND: CARE Assigns 'D' Rating to INR969.70cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Beta
Wind Farm Private Limited (BWF), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            969.70      CARE D Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of BWF takes into
account the instances of delays in servicing debt obligations.

Detailed description of the key rating drivers

Key Rating Weaknesses
Instances of delays in debt servicing: Poor grid availability in
Tamil Nadu during the period FY14-FY16 (refers to the period
April 1 to March 31) coupled with adverse climatic conditions in
FY16 on account of El Nino led to liquidity constraints for the
company due to which there were delays in debt servicing. Also,
BWF had availed debt for the project with a relatively shorter
tenor as against useful economic life of the asset.

The project rupee debt outstanding as on March 30, 2016 was
structured under RBI prescribed "5/25 Flexi-Structuring Scheme"
with longer tenure. With improvement in grid infrastructure in
Tamil Nadu and better wind season, financial performance of BWF
has witnessed improvement in FY17.

Key Rating Strengths

Established presence of OGPL in renewable energy segment and part
of the non-financial services segment of Shriram Group: BWF is a
subsidiary of Orient Green Power Company Ltd. (OGPL). OGPL's
promoter is SVL Limited (formerly known as Shriram Industrial
Holdings Limited) which is the controlling company of the non-
financial services segment of Shriram Group. As on May 2017, OGPL
had a portfolio of operational projects of 531 MW of aggregate
installed capacity, which comprises 425 MW of wind energy
projects and 106 MW of Biomass Projects.

Chennai-based Shriram group came into existence in 1974 and has
significant presence in the financial services industry including
Commercial Vehicle Finance, Consumer & Enterprise Finance, Life &
General Insurance and Financial product distribution.

BWF has been supported by the group companies in terms of funding
requirements. BWF is a board managed company.

All the directors are professionals with significant industry
experience and management expertise in the power industry.

Beta Wind Farm Private Ltd. (BWF), a project SPV company promoted
by Shriram Group, was incorporated for setting up of wind farm
under the Group Captive Power Plant Policy in the state of Tamil
Nadu. The company has subsequently expanded to other states
namely, Gujarat, Karnataka and Andhra Pradesh. BWF is a
subsidiary of Orient Green Power Company Limited, a Shriram Group
company which is holding 74% stake and the remaining 26% held by
various group captive consumers. The Company has set up 155.60 MW
of wind assets in Tamil Nadu, which became operational in phases
in FY12 and FY13. Subsequently over the next two years company
has set up a capacity of 82.48 MW in 4 states - Andhra Pradesh
(46.80 MW), Gujarat (25.20 MW), Karnataka (1.25 MW) and Tamil
Nadu (9.23 MW). In Tamil Nadu BWF is selling power under the
Group Captive Consumer arrangement. For the power generated in
Andhra Pradesh and Gujarat, the company has executed PPAs of 25
years with State Electricity Boards of respective states. In
Karnataka, the company has a third party agreement for sale of
power.

During FY17, BWF reported a PAT of INR10 crore on a total
operating income of INR295 crore.


BIR STEELS: Ind-Ra Migrates BB Issuer Rating to Non Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Bir Steels
Private Limited's (BSPL) 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:

-- INR20 mil. Fund-based limits migrated to Non-Cooperating
    Category with IND BB(ISSUER NOT COOPERATING) rating;
-- INR15 mil. Non-fund-based limits migrated to Non-Cooperating
    Category with IND A4+(ISSUER NOT COOPERATING) rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 27, 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 1989, BSPL manufactures mild steel wires, mild
steel nails, galvanised wires and barbed wires among others,
which it sells to hardware stores across India. The products are
marketed under the brand name, TRISHUL.


DHANEE INTERNATIONAL: CARE Reaffirms 'D' Rating on INR5.25cr Loan
-----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Dhanee International (DHI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             5.25       CARE D Reaffirmed

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of Dhanee
International (DHI) continues to be constrained by ongoing delays
in debt servicing of the firm due to its stretched liquidity
position.

Detailed description of the key rating drivers

Ongoing delays in debt servicing

There are ongoing delays in servicing the debt obligations. The
delays are on account of weak liquidity as the firm is unable to
generate sufficient funds on timely manner.

Dhanee International (DHI) is a proprietorship firm established
in 2006 by Mrs. Aruna Bindra. DHI is engaged in the manufacturing
of readymade garments at its manufacturing facility located at
Ludhiana, Punjab which has a total installed capacity of 4.5 Lakh
pieces of textiles per annum. The firm is also engaged in trading
of fabric. The product line of the firm mainly comprises cotton
fabric, acrylic fabric, polyester fabric, sinker fabric, t-
shirts, trousers, shirts, lowers etc. DHI ventured into export
business majorly w.e.f April, 2014. The firm sells its products
to various wholesalers located in UAE and also supplies the same
to wholesalers and retailers located in Punjab. DHI mainly
requires cotton fabric, acrylic fabric and polyester fabric as
raw materials which are procured directly from the suppliers
based in Punjab. Besides this, the proprietor is also engaged in
another group concern namely, Fashion Flo, a proprietorship firm
(boutique) established in 1993.


EARTH STAHL: CARE Reaffirms 'D' Rating on INR17.60cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Earth Stahl & Alloys Private Limited (ESAPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             17.60      CARE D Reaffirmed

   Short-term Bank
   Facilities              0.40      CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of the ratings assigned to the bank facilities
of Earth Stahl & Alloys Private Limited (ESAPL) takes into
consideration the on-going delay in debt servicing and
classification of the company's account as non-performing asset.
The ability of ESAPL to timely service its debt obligations with
improvement in liquidity position is the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delays in debt servicing: As per the interaction with the banker,
the accounts of ESAPL continue to be classified as NPA by the
bank, whereas the restructuring is still under process. Moreover,
there have been overdrawals exceeding 30 days in CC and observed
in the last 12 months ended May 2017, wherein ongoing delays in
repayment of principal & payment of interest have been observed.
The aforementioned delays were led by weak liquidity position
marked by poor operational performance.

Incorporated in 2009, Earth Stahl & Alloys Private Limited
(ESAPL), promoted by Mr. Ravi Laddha and Mr. Rajesh Somani, is
engaged in the manufacturing of cast iron lumps (using waste iron
content material) which are subsequently used by the iron
foundries and steel plants to manufacture ingots, pellets and
billets. The company is also involved in the trading of the iron
scrap. ESPL has its manufacturing units located at Simga,
Chhattisgarh, having an installed capacity of 10,800 MTPA as on
March 31, 2017.

During FY16, the total operating income of the company stood at
INR12.07 crore (vis-a-vis INR32.16 crore in FY15), whereas the
net loss during the same year stood at INR3.74 crore (vis-a-vis
INR0.79 crore in FY15). Moreover, during FY17 (provisional), the
total operating income and net loss stood at INR0.09 crore and
INR1.74 crore respectively.


ESSAR STEEL: Wins Nod to Oppose Lenders' Insolvency Action Bids
---------------------------------------------------------------
First Post reports that the National Company Law Tribunal (NCLT)
on July 18 allowed Essar Steel to file objections to petitions
moved by the State Bank of India (SBI) and the Standard Chartered
Bank (SCB) to initiate insolvency proceedings against it.

According to the report, the Ahmedabad bench of the tribunal of
judicial member Bikki Raveendra Babu granted time to Essar Steel
till July 22 to file objections to the petitions moved by the two
lenders against the company after the Gujarat High Court
dismissed its petition on July 18. The tribunal posted the
hearing in the matter for July 24.

First Post relates that the Gujarat High Court had on July 17
dismissed the steel major's plea against the Reserve Bank of
India's (RBI) directive to the banks to initiate insolvency
proceedings against it, saying it is not proper for it to
interfere in the matter.

A bench of Justice S G Shah had said in its order that with the
firm owing a debt of a whopping INR45,000 crore, the lenders
should be allowed to exercise discretion to take legal steps to
recover the amount, the report relays.

First Post notes that the State Bank of India (SBI), which leads
the joint lenders forum, and the Standard Chartered Bank have
sought initiating insolvency proceedings against Essar Steel
under the Insolvency and Bankruptcy Code (IBC).

The RBI had on June 13 allowed the banks to initiate proceedings
against a dozen companies, including Essar Steel, under the IBC
to recover outstanding loans, the report recalls.

The high court had in its order said that the company can raise
its objections against the banks before the NCLT. Based on the
order, the company sought time from the NCLT to file its
objections, First Post adds.

Incorporated in 1976, Essar Steel India Ltd. is a part of the
Essar Group and is having 10 MTPA integrated steel manufacturing
facilities at Hazira, Gujarat and iron ore beneficiation and
pelletisation facilities in Paradeep, Odisha (12 mtpa) and Vizag,
Andhra Pradesh (8 mtpa). The company also owns and operates two
iron ore slurry pipelines -- one each in Odisha (Dabuna to
Paradip) and Andhra Pradesh (Kirandul-Vizag), which transport the
iron ore slurry from the beneficiation plant (located near the
iron ore mines in Dabuna and Kirandul) to the pellet plant
(located near the Paradip and Vizag ports). A large portion of
the iron ore pellets produced are intended for captive
consumption by ESIL's steel plant at Hazira for cost
optimization.


FEPL ENGINEERING: CARE Lowers Rating on INR3.50cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
FEPL Engineering Private Limited (FEPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            2.00        CARE D Revised from
                                     CARE BB-

   Long-term/Short-
   term Bank Facilities  3.50        CARE D/CARE D Revised from
                                     CARE BB-/CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
FEPL factors in the delay in servicing of its debt obligations
due to weak liquidity position. The ability of FEPL to establish
track record of timely servicing of debt obligations with
improvement in liquidity position is the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses
Delays in debt servicing: As per the interaction with the banker,
FEPL has been delaying its payment of debt obligations, wherein
there have been overdrawals exceeding 30 days in the bank
overdraft over April 2017 - June 2017.

Incorporated in 2004, FEPL is engaged in SI (System Integration)
of SPV (Solar Photovoltaic)-based power systems, manufacturing of
oil mist systems, viz, oil mist lubrication systems, blaze flow
oil purification systems, etc, coupled with trading of solar
products, chemicals and providing consultancy services of SPV-
based products. It has executed SI of SPVbased power systems
aggregating 800 KWp in Kuwait, for a renowned overseas company
named Plant Engineering Co. (PEC) which acts as a dealer of
petroleum pumps, flow meters, tank truck equipment, industrial
hoses, valves and oil field equipment. FEPL caters to a reputed
set of oil & petroleum players in India, viz, IOCL, BPCL (rated
'CARE AAA; Stable'), HPCL, etc., for its various oil mist
systems. Moreover, it has provided consultancy services for over
19.5 KWp of various SPV-based products, viz, solar lighting,
grid-tie solar, rooftop solar, etc. However, the company has now
increasingly shifted its focus on SI of SPV-based power systems
and trading of solar products, which contributed ~94% of the
total operating income in FY16 (refers to the period April 1 to
March 31).


FINE WOOD: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Fine Wood
Products Private Limited's (FWPPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable. The instrument-wise rating
actions are:

-- INR50 mil. Fund-based facilities affirmed with IND BB+/Stable
    rating;
-- INR350 mil. Non-fund-based facilities affirmed with IND A4+
    rating

Ind-Ra has continued to take a consolidated approach when rating
FWPPL, along with its subsidiary, Fine Ply Myanmar Private
Limited (FPMPL). In 2014, the Myanmar Government banned the
export of raw timber; this dented FWPPL's top line. The company
then set up a veneer manufacturing unit in Myanmar under the name
FPMPL. FWPPL holds a 60% share in FPMPL and the remaining is held
by another sister concern. To set up this unit, FWPPL has taken a
term loan of INR63 million from Export Import Bank of India.
FPMPL started commercial operations in February 2015 and FY16 was
the first full year of operations.

KEY RATING DRIVERS

The ratings continue to reflect FWPPL's moderate consolidated
credit profile. Consolidated provisional FY17 financials indicate
an increase in revenue to INR936 million (FY16: INR910 million)
owing to increased sale of veneer. However, EBITDA margins
contracted to 7.5% in FY17P (FY16: 8.7%) due to an increase in
other operating expenses. This led to deterioration in net
leverage to 3.1x in FY17P (FY16: 2.5x). However, interest
coverage improved to 3.9x in FY17P (FY16: 2.1x) on account of
reduction in interest cost.

The liquidity position of the company continued to be moderate
with 98% average use of its working capital limits during the 12
months ended June 2017.

The ratings, however, remain supported by the promoter's around
two decades of experience in the plywood manufacturing business.

RATING SENSITIVITIES

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

Negative: A sustained deterioration in the credit profile will be
negative for the ratings.

COMPANY PROFILE

Set up as a proprietorship firm in 1999 and reconstituted into a
private limited company in 2008, FWPPL is founded and managed by
the Garg family. The company manufactures plywood and markets its
products under the brand, Fine Ply. The company's daily
activities are managed by Mr. Ashok Kumar Garg.

As per FWPPL's FY17 standalone provisional financials, revenue
decreased to INR331 million (FY16: INR427 million) due to a
decline in veneer sale. As a result, operating EBITDA margins
fell to 13.2% in FY17 (FY16: 14.7%). However, interest coverage
and net leverage improved to 2.4x in FY17 (FY16: 1.7x) and 2.8x
(3.6x) on account of decline in interest cost due to repayment of
existing term loan.


KALYANESWARI POLYFABS: CARE Assigns B Rating to INR9.95cr Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Kalyaneswari Polyfabs Private Limited (KPPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.95       CARE B; Stable Assigned

   Short-term Bank
   Facilities             0.50       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of Kalyaneswari
Polyfabs Private Limited (KPPL) are constrained by its small
scale of business along with short track record of operations,
intensely competitive nature of the industry with presence of
many unorganized players, working capital intensive nature of
operations marked by elongated operating cycle and volatility in
raw material prices. However, the aforesaid constraints are
partially offset by its experienced promoters and favourable
industry scenario.

The ability of the company to grow its scale of operations,
improve profitability margins and ability to manage working
capital effectively would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters: The promoter of KPPL is Mr. Rajesh Kumar
Agarwal, Director, aged about 42 years, having more than decade
long experience in the packaging industry. He is being duly
supported by the other promoter director Mr. Vijay Kumar Agarwal,
Mrs. Anita Agarwal and Mrs. Puja Bansal, having experience of
twelve years, eight years and six years respectively in similar
line of business. The promoters are actively involved in the
strategic planning and running the day to day operations of the
company along with a team of experienced personnel.

Favourable industry scenario: Indian packaging industry is
anticipated to register 18% annual growth rate, with the flexible
packaging and rigid packaging expected to grow annually at 25%
and 15%, respectively. So demand prospects for the industry are
expected to remain good in near to medium term.

Key Rating Weaknesses
Small scale of business along with short track record of
operations: KPPL is a relatively small player in the packaging
industry having total operating income and net loss of INR18.36
crore and INR0.51 crore respectively in FY16. Further, the net
worth base and total capital employed was low at INR4.07 crore
and INR14.37 crore respectively as on Mar.31, 2016.

The small scale of operation restricts the financial risk profile
of the company limiting its ability to absorb losses or financial
exigencies in adverse economic scenario. Further, KPPL commenced
operation since February, 2013 and accordingly has a limited
operational track record of around four years. The management has
informed that it has achieved the TOI of around INR21.87 crore
till February 28, 2017.

Intensely competitive nature of the industry with presence of
many unorganized players: The packaging industry is highly
fragmented with large number of organized and unorganized players
in India. There is high competition within the industry due to
low entry barriers. Further, fungible nature of products with no
visible differentiators has also resulted in a highly competitive
market. In such a competitive scenario smaller entities like KPPL
in general are more vulnerable on account of its limited pricing
flexibility.

Working capital intensive nature of operations marked by
elongated operating cycle: The financial risk profile of the
company is restricted on account of its working capital intensive
nature of operations marked by elongated operating cycle mainly
due to moderately high average inventory period. The inventory
period remained moderately on the higher

side in the range 36-41 days due to holding of adequate raw
material inventory to mitigate the price fluctuation risk and
to ensure uninterrupted production along with holding of adequate
level of materials to address orders in a timely manner. This
apart, the average collection period also remained moderately
high as KPPL offers moderately high credit period to its
customers to attract them and retain them on the backdrop of
intense competition. The working capital utilization for the
company remained high at about 95% during last twelve months
ending on February 28, 2017.

Volatility in raw material prices: The primary raw material
required by KPPL is Polypropylene (PP), the prices of which are
dependent on crude oil prices which are highly volatile. Further,
the company does not have any long term contracts with the
domestic suppliers for the purchase of raw materials. Hence the
profitability margins of the company could get adversely affected
with any sudden spurt in the raw material prices.

Kalyaneswari Polyfabs Private Limited (KPPL) was incorporated in
the year 2013 by Kolkata based Agarwal family. The company is
engaged in manufacturing high density polypropylene and
polyethylene woven sacks with its manufacturing facility located
at Burdwan, West Bengal with an aggregate installed capacity of
3,300 TPA. Mr. Rajesh Kumar Agarwal, having more than decade long
experience in the packaging industry, looks after the overall
management of the company along with the other directors Mr.
Vijay Kumar, Mrs. Anita Agarwal and Mrs. Puja Bansal and
supported by the team of experienced professionals.

During FY16 (refers to the period April 1 to March 31), the
Company reported a total operating income of INR18.36 crore and
net loss of INR0.51 crore in FY16 as against a total operating
income of INR10.86 crore and net loss of INR1.00 crore in FY15.
The Company has achieved a turnover of INR21.87 crore during
11MFY17.


M.B PARIKH: CARE Assigns B+ Rating to INR6cr LT Loan
----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of M.B
Parikh & Sons (MBPS), as:

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

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of M.B Parikh & Sons
(MBPS) is constrained by small scale of operations with low
capitalisation, low and fluctuating profitability, leveraged
capital structure, weak debt coverage indicators and working
capital intensive nature of operations. The rating is further
constrained by its presence in a highly competitive and
fragmented industry, susceptibility of margins to volatility in
raw material prices and partnership nature of constitution.

The above weaknesses are partially off-set by long track record
of operations, experience of the promoters in trading business
and established relations with customer and suppliers. The
ability of MBPS to increase its scale of operations with
improvement in profit margins amidst intense competition and also
improve capital structure coupled with efficient management of
working capital requirement are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Long track record of operations and experienced partners: MBPS
has been in existence for more than a century and is managed by
Parikh family, with Mr. Sanjeev Vardhibhai Parikh, Mr. Sourabh
Sanjeev Parikh and Mr. Aditya Sanjeev Parikh managing the firm as
partners. Mr. Sanjeev Parikh has been associated with trading for
nearly 4 decades and has developed strong business relations with
customers. His sons are also looking after day-to-day operations
of the firm who possesses more than a decade of experience
through their association with the firm.

Over the years of its operation in the trading of food grains
industry, the promoters of the firm have developed longstanding
& established relationships with customers and suppliers. It also
has distributorship of many basmati rice brands like Fortune,
Heritage, Dawat, Sadhu, Star, Jalsa,etc.

Key Rating Weaknesses

Small scale of operations with low and fluctuating profitability:
Total operating income of the firm has grown at compounded annual
growth rate (CAGR) of 24.98% over the period of FY14 to FY16 on
account of addition in the customer base coupled with increase in
demand from existing customers. However, the scale of operations
remained small with total operating income (TOI) of INR35.19
crore in FY16 and tangible net worth of INR1.35 crore as on
March 31, 2016, thus limiting financial flexibility of the firm.
The firm operates at thin PBILDT and PAT margin due to trading
nature of operations. Also, margins are susceptible to price
fluctuations in food grain prices. The PBILDT margin of the
organization remained low in the range 3.48% to 4.70% during last
three years.

Leveraged capital structure and weak debt coverage indicators:
The capital structure of MBPS remained highly leveraged during
last three balance sheet dates on account of higher reliance on
working capital limits and unsecured loans from related parties.
Furthermore, the debt coverage indicators also remained weak
during FY14-FY16 due to increase in debt level and low profit
margins.

Working capital intensive nature of operation: Operations of MBPS
are working capital intensive in nature with funds being largely
blocked in inventory (as the firm has to maintain sufficient
amount of inventory to meet the urgent requirement of the
clients) and also in receivables (as the firm has to give higher
credit period to its customers due to intense competition from
the market and to maintain relationship with its customer).
Furthermore, with low credit period received from its suppliers
the operations are highly dependent on working capital borrowing
which led to higher average utilisation of working capital
limits.
M.B. Parikh & Sons (MBPS) was established in the year 1914 by
Late Mr. Manilal Parikh. Presently Mr. Sanjeev Vardhibhai Parikh,
Mr. Sourabh Sanjeev Parikh and Mr. Aditya Sanjeev Parikh are
managing the firm as partners. The firm is engaged in trading of
food grains viz. Pulses, Dal, Rice, Wheat, Poha, Jawar, Sabudana,
Rawa, Maida etc. About 60% of its revenue is generated from
trading of Rice and 40% from other food grains. It primarily
procures food grains from processing mills across India and also
from farmers. Also, it procures new crops of rice and stores it
for 5-6 months. The firm sells it to various traders across
Maharashtra and Goa. The firm also started online trading through
Amazon as distributor for food grains, but has not received any
orders through it. MBPS operates out of its registered office at
Kolhapur, Maharashtra.

During FY16, MBPS posted total operating income of INR35.19 crore
(vis-Ö-vis INR26.35 crore in FY15) and earned PAT of INR0.18
crore in FY16 (vis-Ö-vis INR0.18 crore in FY15). As informed by
the management, the firm has posted total sales of INR39.51
crores during FY17.


MAHALASA DURGA: ICRA Reaffirms B+ Rating on INR4.50cr Loan
----------------------------------------------------------
ICRA has reaffirmed the long-term rating at [ICRA]B+ assigned to
the INR4.50-crore long-term fund-based facilities and the short-
term rating at [ICRA]A4 assigned to the INR1.50-crore short-term
non-fund based facility of Trinity Mahalasa Durga Sales and
Services. The outlook on the long-term rating is Stable.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long Term - Fund-
  based Cash Credit       4.50      [ICRA]B+ (Stable); Reaffirmed

  Short Term-Non-
  fund Based              1.50      [ICRA]A4; Reaffirmed

Rationale

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

Key rating drivers

Credit strengths

  * Grade 'A' distributor of products of Cummins India Limited
    in Goa

  * Widespread sales and service network with presence across
    17 districts of Maharashtra and Goa

Credit weaknesses

  * High exposure to mining and locomotive industry; any slowdown
    in the industry can hamper the firm's revenue bookings

  * Stretched working capital requirement characterised by
    high amount of receivables and elevated inventory levels,
    primarily funded by bank borrowings that lead to high debt
    levels

  * Inherently thin profitability margins in dealership business

  * Risks inherent to partnership firms, such as limited ability
    to raise capital, exposure to personal liability of partner,
    absence of any capital drawdown restrictions etc.

Description of key rating drivers

The firm was established in 2007 and is an authorised distributor
of products manufactured and marketed by Cummins India Limited.
The firm deals in new engines, recon engines, spare parts,
Valvoline Cummins oils and batteries manufactured by Cummins
India Limited and as such, remains exposed to the mining and
locomotive industry. The working capital intensity is high and is
marked by a huge amount of receivables and elevated inventory
levels, which is primarily funded by bank borrowings, resulting
in high debt levels. Furthermore, the company's profitability is
thin as is inherent in the dealership business. Owing to the
partnership constitution, the firm is exposed to the risk of
sizeable capital withdrawals.

Trinity Mahalasa Durga Sales and Services is a partnership firm
established in 2007. It is an authorised distributor of products
manufactured and marketed by CIL in Goa and 17 districts of
Maharashtra. The firm is a Grade 'A' distributor of products of
CIL and operates from two head branches, one in Panaji (which
handles Goa operations) and the other in Aurangabad (which
handles operations of 17 districts in Maharashtra).


MASCOT CEMENT: CARE Assigns 'B' Rating to INR12cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Mascot
Cement (India) Private Limited (MCPL), as:

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

   Short-term Bank
   Facilities               1        CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of Mascot Cement
(India) Private Limited (MCPL) are primarily constrained on
account of implementation and stabilization risk associated with
its ongoing project, susceptibility of profit margins to
volatility in raw material prices coupled with presence into
competitive industry. The ratings, however, continue to derive
strength from experienced promoters and location advantage of
presence in Gujarat. MCPL's ability to complete its project
within envisaged timeline and cost parameters and its ability to
achieve envisaged scale of operations and profitability would be
the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Implementation and stabilization risk associated with ongoing
project: MCPL is undertaking capex worth INR14.59 crore which is
to be funded through debt-equity mix of 2.89 times. Till
March 30, 2017, it has incurred cost of only INR2 crore hence
with majority costs yet to incur it is exposed to implementation
and stabilization risk.

Key rating strengths

Experienced promoters: All the promoters of the company hold
experience of more than a decade into diversified business.

Location advantage of presence in Gujarat: The factory is
situated near Rajkot District at Gondal where raw materials are
easily available along with transportation and labour. Further,
nearby location of factory is a major industrial hub which will
benefit the company in terms of regular demand for its products.

MCPL is a private limited company incorporated in the year 2016
by four promoters Mr. Sanjaybhai Nagjibhai Thumar, Mr.
Shaileshbhai Nagjibhaii Thumar, Mr. Nileshbhai Kishorbhai
Savaliya, Mr. Vimalbhai Kishorbhai Savaliya. At present, MCPL is
implementing a greenfield project for manufacturing of Cement,
Clinker which finds its application in infrastructure and real
estate. The company is going to set up a cement manufacturing
plant with installed capacity of 195,000 Metric Tons Per Annum of
cement products. MCPL's facilities are located at Rajkot which is
the industrial hub of Saurashtra. Total cost of the project is
estimated at INR14.59 crore which is proposed to be funded
through debt-equity mix of 2.89 times. Commercial operations are
expected to commence by April 2018.


MONNET ISPAT: NCLT Declares Firm Insolvent Despite JSW Offer
------------------------------------------------------------
Business Standard reports that the National Company Law Tribunal
(NCLT) has declared the Sandeep Jajodia-promoted Monnet Ispat
insolvent, following a fierce battle with its lenders.

The report says the board of Monnet Ispat stands dissolved and
the company's ownership goes into the hands of an interim
resolution professional who will initiate the insolvency process.

According to Business Standard, insolvency professionals said the
Sajjan Jindal-promoted JSW Steel could now submit a bid for
acquisition of the company. "The first action to be undertaken by
the interim resolution professional is to issue an advertisement
seeking bids from interested buyers," the report quotes an
insolvency professional as saying.

In a previous hearing of the NCLT, Mumbai, held last week, Monnet
Ispat had contested the loan amount and had stated it was in
talks with JSW Steel for a sale, the report says. While the
creditors claimed the amount in default was INR2,243 crore, the
company said it had defaulted on INR1,539 crore, Business
Standard relates. The NCLT rapped State Bank of India, the
primary lender to Monnet Ispat, for not presenting the actual
picture on the liabilities of the company. SBI had to revise its
petition, which was admitted, the report states.

The debts of Monnet Ispat swelled to INR12,500 crore during a
slowdown in the steel industry and after its coal mines were de-
allocated, the report discloses. The company's attempts at
restructuring its debt also failed.

JSW Steel had in February made an offer to acquire a stake in
Monnet Ispat. Though the offer still stands, the joint lenders'
forum headed by SBI has not approved it, the report says.

According to Business Standard, Monnet Ispat is one the 12
accounts identified by the Reserve Bank of India (RBI) for
insolvency proceedings. Empowered by the Banking Regulation
(Amendment) Ordinance, the RBI constituted an internal advisory
committee, which after its first meeting on June 12, agreed to
focus on large non-performing accounts in the banking system.
With this order, Monnet Ispat has 180 days, with an extension of
90 days, for restructuring, the report notes. If it misses the
deadline, the company's assets will be liquidated.

Monnet Ispat had a consolidated net debt of INR12,000 crore on
March 31, 2016. Its debt-equity ratio is 9.26, it has been making
heavy losses for a couple of years, and its net worth has been
eroded significantly, Business Standard discloses.

Monnet Ispat & Energy Limited engages in the production and sale
of sponge iron, structural steel, and ferro alloys. The company
also engages in the generation and sale of power; and provides
consultancy services in the fields of exploration, exploitation,
and beneficiation coal and other minerals.


OSCAR INVESTMENTS: Ind-Ra Cuts Bank Loans and NCD Ratings to 'C'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Oscar
Investments Limited's (Oscar) bank loans and non-convertible
debentures (NCDs) as follows:

-- INR1,500 mil. NCDs* downgraded with IND C rating; and
-- INR5,000 mil. Long-term bank loan downgraded with IND C
    rating
* Unutilised

KEY RATING DRIVERS

The downgrade reflects revision of RHC Holdings Private Limited's
(RHC; 'IND D') ratings. Oscar's ratings are driven by its
linkages with RHC and its importance to the Religare group as the
joint holding company (along with RHC) of Religare Enterprises
Limited (REL; 'IND A'/RWN) and Fortis Healthcare Limited (FHL).
Oscar has strong management control and integration with RHC.

RATING SENSITIVITIES

A rating change, if any, will depend on the change in RHC's
credit profile or a decline in Oscar's ownership or a change in
the profile of Oscar's borrower companies.

COMPANY PROFILE

Oscar is a listed group company of RHC. RHC, along with Malav
Holding and Shivi Holding, holds 69% of Oscar's equity shares. As
of March 31, 2017, Oscar also held stakes in several unlisted
subsidiaries and group companies. As at end-March 2017, Oscar had
a balance sheet size of INR26.1 billion.


PARAYIL FOOD: Ind-Ra Assigns BB LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Parayil Food
Products Private Limited (PFPPL) a Long-Term Issuer Rating of
'IND BB'. The Outlook is Stable. Instrument-wise rating actions
are:

-- INR15.17 mil. Term loan due on March 2021 assigned with IND
    BB/Stable rating; and
-- INR120 mil. Fund-based working capital limits assigned with
    IND BB/Stable/IND A4+ rating

KEY RATING DRIVERS

The ratings reflect PFPPL's increasing, albeit small scale of
operations, and moderate credit metrics. Revenue increased at a
CAGR of around 7.62% over FY13-FY17. As per provisional
financials for FY17, the company's revenue was INR283 million
(FY16: INR261 million) and Ind-Ra expects PFPPL to record
continuous growth in revenue over the medium-term on account of
steady order inflow from the customers. EBITDA interest coverage
(operating EBITDA/gross interest expenses) was 2.3x in FY17
(FY16: 2.9x) and net financial leverage (total Ind-Ra adjusted
net debt/operating EBITDA) was 4.4x (5.4x). EBITDA margin was
10.2% in FY17 (FY 16: 9.5%).

The ratings factor in PFPPL's tight liquidity position as
reflected in the average maximum utilization of 96% during the 12
months ended May 2017 on account of its working capital intensive
nature of operations. The net cash conversion cycle was 275 days
in FY17 (FY16: 269 days) due to high inventory days.    PFPPL
keeps an inventory of 180-265 days, as it procures raw materials
at favourable prices. Over FY14-FY17, the average debtor days and
creditor days were in the range of 75-110 days and 15-40 days,
respectively. The management expects net cash conversion cycle to
be in the range of 260-270 days in the medium-term.

The ratings, however, are supported by PFPPL promoter's more than
a decade of experience in the processed food exporting industry.

RATING SENSITIVITIES

Negative: Deterioration in revenue and profitability margin
leading to deterioration in the overall credit metrics would be
negative for the ratings.

Positive: A substantial improvement in revenue and profitability,
along with an improvement in the overall credit metrics would be
positive for the ratings.

COMPANY PROFILE

PFPPL, situated in Kerala, was established in 2006, and is
engaged in the processing and exporting of marine and agro foods
such as frozen fish, vegetables, rice and flour items. PFPPL
exports mainly into the UK, the US,, Germany and Switzerland.


RHC HOLDING: Ind-Ra Lowers INR2,000MM Secured LT NCDs Rating to D
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has undertaken the following
rating actions on RHC Holding Private Limited's (RHC) non-
convertible debentures (NCDs) and bank loans:

-- INR2,000 mil. (reduced from INR3,000 mil.) Secured long-term
    NCDs downgraded with IND D rating;
-- INR500 mil. Secured long-term NCDs downgraded then withdrawn
    (paid in full) with IND C; WD rating;
-- INR750 mil. (reduced from INR1,500 mil.) Secured long-term
    bank loans downgraded with IND C rating;
-- INR2,500 mil. Secured short-term bank loans downgraded then
    withdrawn (paid in full) with IND A4; WD rating

KEY RATING DRIVERS

Default in Debt Service: The downgrade reflects a default by RHC
in servicing its coupon obligations on its non-convertible
debentures. The obligations were due on 27 June 2017. Post the
default, RHC has been given a new future date in July 2017 to
make the payment. The outstanding principal amount stands at INR2
billion for this issue. The downgrade of the ratings on other
debt instruments reflects an impaired debt servicing capability
due to a stretched liquidity position.

Slow Movement Towards Targeted Debt Reduction: RHC has been
unable to meet its planned deleveraging target through the
monetisation of non-core assets, as envisaged earlier. However,
the company has been able to reduce debt to INR29.5 billion at
FYE17 from INR41.3 billion at FYE16 through the sale of some
stake in its subsidiary Fortis Healthcare Limited (FHL).

Uncertainty About Payout Towards Arbitration Award: RHC and Oscar
Investments Limited (Oscar) face a total contingent liability of
about INR35 billion towards an adverse verdict by a Singapore-
based appellate tribunal on a lawsuit filed by Daiichi Sankyo
Company Limited against selling shareholders (i.e. RHC and Oscar)
of Ranbaxy Limited. RHC and Oscar have challenged the order in
Indian courts. An adverse outcome in Indian courts may further
worsen the impact on the liquidity situation of the group.

RATING SENSITIVITIES

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

COMPANY PROFILE

RHC was incorporated in 2007 as Solaries Finance Pvt. Ltd. It was
renamed in November 2008. RHC is a closely held investment
company, held by Mr. Malvinder Mohan Singh and Mr. Shivinder
Mohan Singh. On 31 March 2017, RHC held a large stake in several
unlisted subsidiaries and group companies. It acts as a joint
holding company, along with Oscar, of the group's two main
operating companies Religare Enterprises Limited (REL; 'IND
A'/RWN) and FHL.


RUG RESOURCES: Ind-Ra Migrates B+ Rating to Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Rug Resources'
(RR) 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
B+(ISSUER NOT COOPERATING)' on the agency's website. The
instrument-wise rating action is:

-- INR100 mil. Fund-based facilities migrated to Non-Cooperating
    Category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER
    NOT COOPERATING) rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 5, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 2013, RR is a partnership firm engaged in the
manufacture and export of hand-knotted woollen carpets and
druggets. It is based in Bhadohi, Uttar Pradesh. Its partners are
Mr. Pankaj Kumar Baranwal and Mr. Priyam Baranwal.


SAANVI ASSOCIATES: CARE Assigns 'B' Rating to INR10.25cr Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Saanvi
Associates (SAS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            10.25       CARE B; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Saanvi Associates
(SAS), are constrained by limited operational track record
with small scale of operations, partnership nature of business
operations, and presence of the firm in the highly competitive
hotel Industry.

The rating, however, derives strength from locational advantage
and tie up with 'Clarks Inn' group for the management of hotel.
Going forward, the ability of the firm to achieve its projected
income and profitability are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Highly competitive industry: With the increase in tourism and
travel industry in India, the direct benefit is derived by the
hotel industry. Starting a restaurant/hotel in semi urban, small
towns have low entry barriers and are prone to high competition.
Most of the restaurants/hotels in semi urban tourist destinations
are situated around the bus stops and railway stations, they
serve almost similar kind of food and have similar dining
experience. Presence of one restaurant/hotel will attract many
other competitors in that area, thus diluting the revenue of the
firm. To overcome the competition is a major threat faced by the
firm.

Lack of operational track record: The firm commenced its
operations from October 2016 onwards; hence has lack of
operational track record. Moreover, while the firm is expecting
to benefit from the locational advantage of the restaurant and
existing goodwill of the hotel, ability of the firm to achieve
the projected income and profits remains to be seen.

Partnership nature of business: Partnership nature of business
has an inherent risk of withdrawal of capital at the time of
personal contingency. It also has the risk of business being
discontinued upon the death/insolvency of the proprietor. The
ability to raise funds is also very low as proprietorship
concerns have restricted access to external borrowings.

Key Rating Strengths

Locational advantage with presence of restaurant near Shimoga
city railway station: The restaurant is located in Balraj Urs
Road, near Shimoga city railway station. Being the gateway for
the hilly regions of western guards, Shimoga is a tourist
attraction place. Jog falls situated in Shimoga is one of the top
destinations of Karnataka tourism. Proximity to the railway
station will attract many tourists to the hotel. Tie-ups with
travel agencies will also help the firm increase its revenue.

Tie up with clacks inn group for management of the hotel: SAS has
business arrangements with 'Clarks inn' for managing the
operations of the hotel by way of a long term contract for a
period of 9 years. Clarks inn group have experience of over a
decade in the hotel industry and manage about 60 hotels all over
India. SAS will pay a management fee of 6% on the gross revenue
of the hotel to Clarks inn.

SAS is a partnership firm established in the year 2016. The
partners of the firm are Mr. Mallikarjunappa and his brothers,
Mr B Nageshappa and Mr. B Umashankar. The firm purchased an
existing hotel named Green View Boutique as on 20 October 2016
for a consideration of INR11 crore funded by INR10 crore of term
loan and INR1 crore of partner's capital.

The hotel is a 4 storied building located near Shimoga city
railway station. The hotel offers South Indian and North Indian
vegetarian food. It has 30 rooms under different categories
namely deluxe room, deluxe suite, executive suite and master
suite.


SAMDARIYA BUILDERS: ICRA Ups Rating on INR38.65cr Loan to 'B'
-------------------------------------------------------------
ICRA has upgraded the long-term rating to [ICRA]B from [ICRA]D on
the INR77-crore bank facilities of Samdariya Builders Private
Limited. The outlook on the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long-term Fund-
  based Cash Credit       5.00      [ICRA]B (Stable); Upgraded
                                    from [ICRA]D

  Long-term Fund-        38.65      [ICRA]B (Stable); Upgraded
  based Term Loan                   from [ICRA]D

  Long-term-             33.35      [ICRA]B (Stable); Upgraded
  Unallocated                       from [ICRA]D

Rationale

The assigned rating takes into account the improvement in the
company's debt servicing track record, following the enhancement
in its cash flow management systems. The ratings favourably
factor in the promoters' track record of developing real estate
projects in Jabalpur and Rewa regions and the steady operations
of the Samdariya Mall. The rating, however, is constrained by the
execution and funding risks associated with the company's largest
project "Samdariya Gold", wherein bookings have been modest. The
company is dependent on additional funding for timely completion
of the project.

Going forward, the company's ability to manage its cash flows
across mall operations and real estate segment remains crucial
and will be closely monitored. Moreover, the sales velocity,
collection efficiency and final terms of debt availed for
"Samdariya Gold" will also be the key rating sensitivities.

Key rating drivers

Credit strengths

  * Established track record of the promoters in developing real
    estate projects in Jabalpur and Rewa regions

  * Increase in rental income and better cash flow management
    have improved the debt servicing capability

Credit weaknesses

  * Modest sales velocity owing to market slowdown has resulted
    in markets risks for unsold inventory

  * Funding risk for the newly launched project i.e. "Samdariya
    Gold", as the proposed loan for project is yet to be tied
    Up

  * Ability to manage cash flows and ensure funding support
    for large ongoing projects remains critical

Description of key rating drivers

SBPL's derives its revenue from mall operations, jewellery
business and real estate projects. In the mall operations, SAPL
continues to witness modest revenue growth led by multiplex and
rental incomes. SBPL's rental income witnessed a slight increase
from INR7.51 crore in FY2016 to INR7.98 crore in FY2017. This
along with better cash flow management has improved the debt
servicing. Against an EMI outflow of INR0.68 crore, the monthly
rental income stood at INR0.67 crore, enabling the company to
meet the monthly lease rental debt (LRD) obligations. SBPL's
jewellery business is subdued as the company reduced the scale to
focus more on other verticals with better margins.

SBPL's real estate portfolio comprises five projects, of which
one is completed while the other four are still under execution.
Out of the five projects, 51% of the area remains unsold. The
sales velocity remains modest amid market slowdown. The committed
receivables-to-outflow ratio is maintained at 0.61times. The
receivable inflow from all five projects is 89 crore, against an
outflow of INR146 crore mainly towards "Samdariya Gold", which is
planned to be completed by FY2022. ICRA takes into account the
imminent funding risk for its biggest project "Samdariya Gold" as
the external bank debt is yet to be tied up. The bank debt forms
23% of the total construction cost of INR196 crore, the timely
sanction of which remains crucial for the project's timely
completion.

SBPL is the flagship company of the Samdariya Group based in
Jabalpur, Madhya Pradesh. The company commenced commercial
operations in 1947 and is involved in real estate development in
various regions of Madhya Pradesh, including Jabalpur, Katni, and
Rewa. The company also operates the Samdariya mall in Jabalpur,
which includes an in-house hotel and multiplex. SBPL also
undertakes cement trading, construction and jewellery
wholesaling. The company is currently executing various mixed-
used real estate projects such as Baldevbagh and Royal Home (in
Jabalpur), and Centre Point, Samdariya Gold and Anant Vaibhav in
Rewa. While the Centre Point is completed, the other projects are
scheduled to be completed over the next three-four years.


SANAKA EDUCATIONAL: CARE Assigns B+ Rating to INR49.42cr Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sanaka
Educational Trust (SET), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             49.42      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Sanaka Educational
Trust (SET) is constrained by its small scale of operations with
limited experience in healthcare segment, project implementation
risk, weak liquidity position and leveraged capital structure
with moderate debt protection metrics. The rating also factors in
its constitution as a trsut, moderate enrolment rate in its
educational institute, moderate occupancy in hospital, high
vulnerability to treatment-related risk and regulated nature of
the industry. The rating, however, derives strength from decade
long track record of the trust in running educational institutes,
association of experienced faculties along with moderate
infrastructure and improvement in financial performance during
FY15 (refers to the period April 1 to March 31) to FY17
(Provisional).

The ability of the trust to commence medical college operations
and to improve the liquidity position with no further debt funded
Capex plan are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Limited experience in healthcare segment: The promoters lack the
experience of managing a hospital.

Small scale of operations: SET's scale of operations has
increased over the last three years; however, it continues to be
a relatively small player in the education and healthcare sector
with total operating income of INR44.21 crore in FY17
(Provisional). The total capital employed also remained low at
INR85.31 crore as on March 31, 2017(Provisional). Constitution as
Trust: SET being formed as a trust is subjected to lesser level
of regulations and lacks the flexibility to raise capital.

Project implementation risk: SET is undertaking a project for
creating the requisite infrastructure for setting up a Medical
College cum Hospital, Sri Ramkrishna Institute of Medical
Sciences (SRIMS) and Sanaka Hospitals in phases at Durgapur, West
Bengal.

Sanaka Hospitals has already started (from January 2016)
operations with 330 beds. The project started in July 2015 and is
expected to be completed in phases by September 2021 at an
envisaged cost of INR187.89 crore to be financed by term loans of
INR45.50 crore, equity of INR36.57 crore and internal accruals of
INR105.82 crore at debt equity of 0.32:1. In first phase, the
trust has planned to covert its existing campus of Engineering,
Architecture & Diploma College into hospital and constructs new
buildings for medical college and existing Engineering,
Architecture & Diploma Colleges. The total cost of phase I is
envisaged at INR64.35 crore to be financed by promoter's
contribution of INR18.85 crore and term loans of INR45.50 crore
at a debt equity of 2.41:1. However, financial closure in respect
of INR40.42 crore is already in place. SET managed to start the
hospital operations from January 2016.

The trust has already incurred around INR60.71 crore (around 94%
of the total project cost (Rs.64.35 crore) envisaged for phase I)
towards the construction of such project till March 31, 2017. The
medical college is expected to start from September 2017 subject
to MCI approval. High vulnerability to treatment-related risks:
Healthcare is a highly sensitive sector where any mishandling of
a case or negligence on the part of any doctor and/or staff of
the unit can lead to distrust among the masses.

Moderate enrolment rates in educational institutes and moderate
occupancy in hospital: The enrollment in B.Tech streams remained
low (in the range of 54%-67%) over the past three years. The
enrollment rate for diploma courses remained moderate at around
85% during the same period. Furthermore, the enrollment in Rani
Rashmoni School of Architecture also witnessed a declining trend
over the past three years and remained low at 68% in FY17.
Moreover, the occupancy rate remained moderate for Sanaka
Hospitals at around 70% in its initial period of operations.

Weak liquidity position: The liquidity position of the trust
remained under pressure over the past years due to use of
internal accruals to fund the on-going project. Furthermore,
presently, the hospital operations are largely dependent on its
tie-ups with the central government for schemes like ESIC,
Rashtriya Swasthya Bima Yojna (RSBY)) and with the state
government for its 'Sastho Sathi' schemes. For these schemes,
bills are directly made to the central or state government.
However, the payment periods are stretched which creates a
working capital gap for the trust and puts pressure on the
liquidity position.

Leveraged capital structure with moderate debt protection
metrics: The capital structure of the trust remained leveraged as
on the past three account closing dates owing to its continuous
debt-funded capex for improvement in the infrastructure and
setting up of medical college and hospital. Total debt/GCA
remained moderate and improved from 10.25x in FY15 to 4.80x in
FY17 (Prov.) mainly due to improved cash accruals over the same
period.

Regulatory nature of the industry: Despite the increasing trend
of privatisation of education sector in India, the sector
continues to operate under stringent regulatory control.
Accordingly, the players, at times, find it difficult to realize
their plans or cope up with the framework resulting in failure of
the institution. Hence, regulatory challenges continue to pose
a significant risk to educational institutions as they are highly
susceptible to changes in regulatory framework.

Key Rating Strengths

Decade long track record of the trust in running educational
institutes: SET has been in operation since the year 2008 and has
gradually grown from a single institute to a group of institutes
imparting education in various disciplines as well as running a
hospital. Trustees of SET are experienced businessmen and
renowned people in the Durgapur area.

Presently, the day-to-day affairs of SET is looked after by Mr.
Partha Pobi (President, son of Mr. Tapan Kr Pobi, founder) B.
Tech, having about a decade long experience in the organization
with required support from other experienced and qualified trust
members.

Association of experienced faculties and reputed doctors along
with moderate infrastructure with modern technology: The
faculties have requisite experience in their area of discipline.
Furthermore, all the institutes under SET have modern
infrastructure including furnished hostels for boys and girls,
transport & canteen facilities and latest tools & technologies.
Sanaka Hospitals is a hospital with various departments. The
hospital is equipped with state-of-the-art equipments, research
laboratories and well-trained staff.

Improvement in financial performance during FY15- FY17
(Provisional): SET's total operating income has grown at a CAGR
of 62.4% during FY14-FY17 and witnessed an significant increase
of about 147% y-o-y from INR17.92 crore in FY16 to INR44.22 crore
in FY17 (Provisional). As a result, surplus before interest &
depreciation (SBID) also improved from INR9.87 crore in FY16 to
INR20 crore in FY17 (Prov.). The SBID margin remained healthy and
stable in the range of at about 44% - 55% in the past three years
(FY14-FY16). However, with lower absorption of fixed overheads
which led to decline in SBIDT margin from 55.08% in FY16 to
45.23% in FY17 (Provisional). Interest coverage ratio improved
from 2.48x in FY15 to 3.05x in FY16 as sharp increase in SBID
more than offset the impact of increase in interest cost. In FY17
(Provisional), SET reported GCA of INR13.78 crore (improved from
INR6.23 crore in FY15) vis-a-vis debt repayment obligation of
INR9.86 crore.

SET, registered under Indian Trust Act, 1882, was established in
December 2006 by Durgapur-based (West Bengal) Mr. Tapan Kr Pobi
along with his family members for the purpose of imparting
education and other charitable purposes. The trust commenced its
operation in August 2008 with an engineering college, named
Institute of Engineering & Industrial Technology (IEIT),
Durgapur. In the year 2010, the institute was converted to AICTE
approved integrated campus and the name was subsequently changed
to Sanaka Educational Trust's Group of Institutions (SETGOI).
Subsequently, Swami Vivekananda School of Diploma and Rani
Rashmoni School of Architecture for Diploma & B.Arch courses,
respectively, were also started as part of the integrated campus.
Currently, SET is undertaking a project for creating the
requisite infrastructure for setting up a Medical College cum
Hospital, Sri Ramkrishna Institute of Medical Sciences (SRIMS)
and Sanaka Hospitals in phases at Durgapur, West Bengal. Sanaka
Hospitals has already started (from January 2016) operations with
330 beds. Furthermore, SET has received consent for in-principal
affiliation from, 'The West Bengal University of Health Sciences'
for its proposed introduction of 150 seats in "MBBS" course
subject to approval of MCI for medical courses, which is still
pending.

As per the audited results for FY16, SEL reported a net surplus
of INR4.27 crore on a total operating income of INR17.92 crore as
against net surplus of INR1.80 crore on a total operating income
of INR13.01 crore in FY15. Based on the provisional results for
FY17, SEL reported total operating income of INR44.22 crore and a
net surplus of INR10.09 crore.


SHIRKE RECREATION: Ind-Ra Affirms BB LT Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Shirke
Recreation Enterprise's (SRE) Long-Term Issuer Rating at 'IND
BB'. The Outlook is Stable. Instrument-wise rating actions are
given below:

-- INR145.2 mil. (reduced from INR388.24 mil.) Term loan due on
    April 2019 to March 2020 affirmed with IND BB/Stable rating

The ratings continue to factor in the financial support
potentially available from B.G. Shirke Construction Technology
Pvt Ltd (BGSCTPL; 'IND A-'/Stable), which holds a 70% stake in
SRE.

KEY RATING DRIVERS

The ratings reflect lower than projected enrolment of members at
the club, constructed by SRE, in FY17. The club enrolled 195
members in FY17 (FY16: 230 members) as against the projected 250
members on account of lower uptake in Kandivali area. At end-
March 2017, a total of around 870 members had enrolled at the
club.

The ratings remain constrained by SRE's partnership nature of the
business which leads to risk of drawings by the partners.

However, the ratings draw comfort from SRE's moderate-to-strong
linkages with BGSCTPL in the form of demonstrated support
required to finance cost overrun for construction and term loan
repayments. Ind-Ra expects BGSCTPL to have sufficient liquidity
to keep supporting SRE's requirements for the next two to three
years. As per FY17 provisional financials, BGSCTPL recorded
EBITDA margin of 15.5% (FY16: 12.6%) and interest coverage of
2.7x (2.3x).

The ratings also remain supported by SRE belonging to the well-
established B.G. Shirke Group, which has an operational track
record of over five years in the hospitality industry, with
Shirke Infrastructure (SINF; 'IND BBB-'/Stable) operating a
similar club in Bandra Kurla Complex, Mumbai.

RATING SENSITIVITIES

Negative: A significant deterioration in BGSCTPL's credit
profile, hampering its ability to extend distress support in a
timely manner, can lead to a negative rating action.

Positive: Strong operational cash generation from increased
enrolments, leading to a significant reduction in dependence on
BGSCTPL, can lead to a positive rating action.

COMPANY PROFILE

SRE is a part of the B.G. Shirke Group which is based in Pune,
Maharashtra. It was incorporated in 2012 as a partnership firm to
construct a state-of-the-art clubhouse with recreation facilities
at Kandivali, Mumbai, for the Mumbai Cricket Association on a
build, operate and transfer basis. SRE generates revenue from
sale of memberships, food and beverages as well as rentals of
banquet halls, conferences and rooms.

SRE has two partners: BGSCTPL (holds 70% stake in SRE) and Shirke
Trust. BGSCTPL is engaged in the construction of housing
projects, industrial and commercial buildings, roads, bridges,
highways and sporting complexes. BGSCTPL recorded revenue of
INR25,299 million in FY17P (FY16: INR30,375 million).


SHREE KRISHNA: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Neg.
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Shree Krishna
Steels' (SKS) Outlook to Negative from Stable while affirming the
Long-Term Issuer Rating at 'IND BB+'. The instrument-wise rating
actions are:

-- INR500 mil. (reduced from INR803 mil.) Non-fund-based
    facilities, Rating affirmed; Outlook revised to Negative from
    Stable, with IND BB+/Negative/IND A4+

KEY RATING DRIVERS

The Outlook revision to Negative reflects SKS' weaker-than-
expected revenue due to the imposition of the government's anti-
dumping policy on steel imports in August 2016. As per
provisional financials for FY17, revenue plunged to INR847
million (FY16: INR1,829 million). However, EBITDA margins
expanded to 9.8% in FY17P (FY16: 2.0%) on account of improvement
in variable cost. Consequently, net interest cover (EBITDA/net
interest expense) improved to 2.5x in FY17P (FY16: 1.5x). The
firm had a strong net cash position in FY17.

The ratings also remain constrained by the partnership form of
organisation.

However, the ratings are supported by SKS' continued strong
liquidity profile with cash and liquid investments in the form of
fixed deposits of INR259 million at FY17P (FY16: INR118 million).
Moreover, the firm generates regular interest income (FY17P:
INR14.68 million, FY16: INR15.97 million) on the deposits, which
is used to pay 90-180 days usance letters of credit for bulk
purchases of steel. Ind-Ra expects SKS to maintain these fixed
deposits along with a sustained interest income in the near term.
The firm maintained a low working capital cycle of 16 days in
FY17P (FY16: 6 days).

The ratings also continue to benefit from SKS' over three decades
of operational track record and the promoter's experience in the
steel trading business. The partners have been infusing funds
into the business in the form of unsecured loans (100% of total
debt at FYE17) to have minimum dependence on bank debt.

RATING SENSITIVITIES

Positive: A substantial improvement in the scale of operations
while maintaining the operating profitability along with a stable
liquidity position at current or improved levels could lead to a
positive rating action.

Negative: A substantial fall in the EBITDA margins and/or
weakening of the liquidity profile leading to deterioration in
the credit metrics could result in a negative rating action.

COMPANY PROFILE

Incorporated in 1980, SKS is involved in trading of mild/flat
steel products such as hot-rolled coils. SKS was converted into a
partnership firm in 2013 from a proprietorship entity. Promoted
by Mr. Binod Kumar Gupta, SKS is primarily an importer of steel
products.


SHRIKALYANI AGRITECH: CARE Cuts Rating on INR10.31cr Loan to B+
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shrikalyani Agritech Pvt. Ltd. (SAPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank         10.31      CARE B+; Stable/Revised;
   Facilities                        ISSUER NOT COOPERATING

In the absence of minimum information required for the purpose of
rating, CARE was unable to express an opinion on the ratings of
Shrikalyani Agritech Pvt. Ltd. (SAPL) and in line with the extant
SEBI guidelines, CARE revised the ratings of bank facilities of
the company to 'CARE B+; ISSUER NOT COOPERATING'. However, the
company has now submitted the requisite information to CARE. CARE
has carried out a full review of the ratings and the ratings
stand at 'CARE B+; Stable'.

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Shrikalyani
Agritech Pvt. Ltd. (SAPL) continues to be constrained by its
short track record coupled with small scale of operation,
volatility in profit margins subject to government regulations,
working capital intensive nature of business and exposure to
vagaries of nature and intensely competitive nature of the
industry characterized by a number of small players. However, the
aforesaid constraints are partially offset by its experienced
promoters and proximity to raw material sources.

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

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters: The Company is being promoted by Shri
Ganesh Kr. Goyal (aged about 53 years) and Payal Agarwal (aged
about 37 years) of Dhanbad, Jharkhand. Both of them are graduates
and having around a decade of experience in rice milling business
by virtue of having worked in other rice milling company. Both of
them together look after the overall operations of the company
with adequate support from team of experienced personnel.

Proximity to raw material sources: SAPL's plant is located in
Govindpur, Dhanbad, Jharkhand, which is in the vicinity to a
major rice growing area, thus, resulting in logistic advantage.
The entire raw material requirement is met locally from the
farmers (or local agents) helping the company to save
simultaneously on transportation cost and paddy procurement
cost.

Key Rating Weaknesses
Short track record coupled with small scale of operation: The
scale of operations remained small as compared to its peers with
a PAT of INR0.15 crore on total operating income of INR29.42
crore during FY17 (prov.). The profit margin of the company
remained thin marked by operating margin of 8.96% and PAT margin
of 0.50% in FY17 (prov.). Furthermore, the total capital employed
of the company increased to INR17.37 crore as on Mar.31, 2017
(prov.) as against INR17.01 crore as on March 31, 2016. SAPL
started its commercial production in July, 2014 thus having a
short track record of operation of around 3 years.

Volatility in profit margins subject to government regulations:
The Government of India (GoI) decides a minimum support price
(MSP - to be paid to paddy growers) for paddy every year limiting
the bargaining power of rice millers over the farmers. The MSP of
paddy was increased during the crop year 2017-18 to
INR1550/quintal from INR1470/quintal in crop year 2016-17. Given
the market determined prices for finished product vis-Ö-vis fixed
acquisition cost for paddy, the profitability margins are highly
volatile. Such a situation does not augur well for the company,
especially in times of high paddy cultivation.

Working capital intensive nature of business and exposure to
vagaries of nature: Rice milling is a working capital intensive
business, as the rice millers have to stock paddy by the end of
each season till the next season since the price and quality of
paddy is better during the harvesting season. Further, while
paddy is sourced generally on cash payment, the millers are
required to extend credit period to their customers. Accordingly,
average working capital utilization remained moderately high at
95% during the last 12 months ended May 31, 2017. Also, paddy
cultivation is highly dependent on monsoons, thus exposing the
fate of the entity's operation to vagaries of nature.

Intensely competitive nature of the industry characterized by a
number of small players: SAPL's plant is located in Dhanbad
district of Jharkhand, which is in close proximity to hubs for
paddy/rice cultivating region of Jharkhand. Owing to the
advantage of close proximity to raw material sources, large
numbers of small units are engaged in milling and processing of
rice in the region. This has resulted in intense competition
which is also fuelled by low entry barriers. Given that the
processing activity does not involve much of technical expertise
or high investment, the entry barriers are low.

Shrikalyani Agritech Pvt. Ltd. (SAPL) was incorporated in June
2009 as Shri Kalyani Coke & Iron Pvt. Ltd. (SCIPL) by Goyal
family of Dhanbad, Jharkhand. SCIPL was de-functional and later
on in May, 2013, it was renamed to Shrikalyani Agritech Pvt. Ltd.
for the purpose setting up a paddy processing unit at Govindpur,
Dhanbad, Jharkhand. The company commenced commercial production
in July, 2014 with rice processing capacity of 32,620 metric
tonne per annum (MTPA).

During FY17 Prov. (refers to the period April 1 to March 31), the
company reported a total operating income of INR29.42 crore and
PAT of INR0.15 crore in FY17 (Prov.) as against a total operating
income of INR25.88 crore and PAT of INR0.21 crore in FY16. The
company has achieved a turnover of INR7.00 crore till June 26,
2017.


SHWETA BREEDING: CARE Reaffirms 'B' Rating on INR5.70cr Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Shweta Breeding Farm (SBF), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       5.70       CARE B; Outlook: Stable
   Facilities                      Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of Shweta Breeding
Farm (SBF) continues to be constrained by short track record and
small scale of operation coupled with weak financial profile
marked by low PAT margins, leveraged capital structure and weak
coverage indicators. The rating is further constrained by working
capital intensive nature of operations, susceptibility of margins
to fluctuation in raw material (Chicks & feed grain) prices and
inherent risk associated with the poultry industry coupled with
high competition from local players.

The rating constraints are partially offset by support from the
experienced partners.
Going forward, the ability of SBF to increase the scale of
operations and increasing profitability while registering
improvement in the capital structure shall be the other key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short Track Record and Small scale of operations
SBF's scale of operations has remained small marked by total
operating income and gross cash accruals of INR8.83 crore and
INR0.51 crore respectively in FY17 ( refers to the period April
01 to March 31) against a small net worth of INR1.96 crore. The
small scale limits the firm's financial flexibility in times of
stress and deprives it from scale benefits.

Weak financial risk profile
The financial risk profile of the firm is characterized by
moderate PBIDLT; however, low PAT margins due to high interest
cost and depreciation; and leveraged capital structure
characterized by overall gearing of 2.59x in FY17 on account of
high dependence on external borrowings to debt funded capex
undertaken by the firm to set up the new facility and working
capital requirements coupled with low partners' capital; and weak
coverage indicators with Interest coverage and Total debt to GCA
at 1.72x and 9.90x in FY17.

Working capital intensive nature of operations
SBF's operations are working capital intensive marked by the
operating cycle of the firm at 92 days for FY17.

The firm maintains inventory of around 62 days mainly in the form
of raw material (maize, soya bean, etc.) for smooth running of
its business operations and to beat the price volatility of the
raw materials as they are highly dependent on monsoon. The firm's
customer base consists of local poultry farms and it extends a
month's credit period to its customers. However, the firm makes
cash payments to its suppliers. That has resulted in an average
working capital borrowings utilization remained almost full for
the last 12 months ending July, 2016 indicating high reliance on
the bank finance to meet the working-capital requirement.

Susceptibility to fluctuation in raw material (Chicks & feed
grain) prices
SBF's profitability is vulnerable to the volatility associated
with key raw material prices. Maize is the primary source of
energy whereas soybean is the primary source of protein for
chicks. Maize is relatively grown in smaller quantity in India
and being a rain-fed crop, any failure in monsoon can materially
impact the harvest.

Inherent risk associated with the poultry industry coupled with
high competition from local players
The Poultry industry is driven by regional demand and supply
because of transportation constraints and perishable nature of
the products. Poultry industry is also vulnerable to outbreaks of
diseases, like bird flu, extreme weather conditions and
contamination by pathogens. The outbreak of bird flu leads to a
fall in demand and consequent sharp crash in the egg prices.
Diseases can also impact production of healthy chicks.

The poultry industry is highly fragmented and competitive marked
by the presence of numerous players in India. Given the fact that
the entry barriers to the industry are low, the players in the
industry do not have pricing power and are exposed to competition
induced pressures on profitability.

Key Rating Strengths

Experienced partners in the poultry business

Mr Dharmbir Singh and Mr. Ballu Ram are the partners of the firm.
Mr. Dharmbir Singh and Mr. Ballu Ram have experience of around a
decade in the poultry business through their association with the
group concern i.e. Shweta Research & Breeding Farm, which is
engaged in business of poultry farming since the year 2000.

Haryana-based, Shweta Breeding Farm (SBF) was established in
February, 2015 as a partnership firm by Mr. Dharmbir Singh and
Mr. Ballu Ram, sharing profit and loss in the ratio of 67% and
33% respectively. SBF is engaged in poultry farming business
which involves growing of 1 day chick into egg laying birds and
then their eggs are incubated till the chicks are produced
(incubation time is 21 days). The processing facility of the firm
is located at Jhajjar, Haryana with an installed capacity of
33,600 chicks per annum.

SBF sells the day old chick mainly to broiler farmers through the
commission agents located Haryana and Punjab. The firm procures
day old chicks from Venkateshwara Hatcheries. Furthermore, the
firm procures feeding materials for the chicken viz. maize,
soyabean and defatted rice bran from traders located in Haryana
and near regions.

During FY17, SBF has achieved a total operating income of INR8.83
crore and PAT of INR0.05 crore in FY17 (Audited).


SUMEDHA VEHICLES: CARE Assigns B+ Rating to INR15cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Sumedha Vehicles Private Limited (SVPL), as:

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

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SVPL is primary
remain constrained on account of its financial risk profile
marked by moderate scale of operations, thin profit margins,
leveraged capital structure, weak debt coverage indicators and
moderate liquidity position along with working capital intensive
nature of operation. The rating also remains constrained on
account of its presence in a highly competitive automobile
dealership industry and performance of SVPL depends on growth of
principal automobile manufacturers.

The rating, however, derives benefits from experienced promoters
along with established operations having multiple dealerships
resulting into moderately diversified product portfolio.

The ability of SVPL to increase its scale of operations along
with improvement overall financial risk profile and efficient
working capital management would remain the key rating
sensitivities.

Detailed description of the key rating drivers

Key rating Weaknesses

Moderate scale of operations, thin profit margins, leveraged
capital structure and weak debt coverage indicators The scale of
operation remained moderate marked by total operating income
(TOI) of INR62.36 crore during FY16 (refers to the period April 1
to March 31). On account of its trading nature of operations the
profitability of SVPL remained thin. The capital structure of the
SVPL stood leveraged mainly account of high debt level as
compared with net worth base. As a result of high debt level
along with low cash accruals the debt coverage ratio also stood
weak.

Moderate liquidity position along with working capital intensive
nature of operations
The liquidity position of SVPL remains modest marked by below
unity current ratio. The operations of the company also remained
working capital intensive marked by high utilization of its
working capital limit i.e. 80%.

Presence in a highly competitive automobile dealership industry
SVPL is operating in competitive automobile dealership industry
having stiff competition authorized dealers of other established
brands like Hyundai Motors, Maruti Suzuki Ltd., Honda Motor
Company Ltd., etc, low entry barriers and the presence of a large
number of players in the organized and unorganized sector
translate into inherently thin profitability margins.

Fortune of the company linked with growth of principal automobile
manufacturers
Performance of SVPL depends on performance of principal
automobile manufacturers; hence any unfavorable event affecting
the growth plans of Original Equipment Manufacturer (OEM) will
have a significant impact on the performance of SVPL.

Key rating Strengths

Experienced promoters along with established operation
SVPL was promoted by Mr. Shyam Bihari Gupta, who manage all the
day-to-day operations of SVPL and possess more than two decades
of experience in automobile dealership business. SVPL has an
established track record of 16 years into automobile dealership
industry.

Multiple dealerships resulted into moderately diversified product
portfolio
The company is an authorized dealer of GM, HMSI and NMIPL. The
company is the only dealer of GM in Chambal & Gwalior and HMSI in
Gwalior. Moreover, it is also engaged in trading of JCB machines.
Thus, the moderately diversified product portfolio helps the
company to offset the risk of any downturn in a particular
industry.

SVPL was incorporated in 2001 by Mr. Shyam Bihari Gupta and Dr
Sadhana Gupta as an authorized dealer & distributor for Fiat
India Automobiles Limited (Fiat) and as an authorized service
centre (ASC) for General Motors (GM) at Gwalior, Madhya Pradesh
(M.P). Presently, SVPL operates as an authorized 3S (sale,
service, spare) dealer of GM (awarded dealership of Chevrolet
four wheelers in 2004), Honda Motorcycle and Scooter India Pvt.
Ltd. (HMSI, awarded dealership in December 2008) Nissan Motor
India Pvt. Ltd. (NMIPL, awarded dealership in February 2015).
SVPL is also engaged in the dealership business of JCB
construction machines (since July 2008). Overall SVPL's
dealership includes diversified players thereby reducing risk of
over dependence on single manufacturer. Currently, SVPL runs two
showrooms with service centres for GM (at Gwalior & Guna), one
showroom and service centre at Gwalior for HMSI, one show room
and service centre for NMIPL and three showrooms for JCB machines
(Gwalior, Shivpuri & Jhansi).

During FY16, SVPL reported PAT of INR0.31 crore on a TOI of
INR62.36 crore as against PAT of INR0.49 crore on a TOI of
INR74.27 crore during FY16. During 11MFY17 (Provisional), SVPL
has reported a TOI of INR51 crore.


SUPERTECH LIMITED: CARE Lowers Rating on INR1,900cr Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Supertech Limited (STL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities           1,900.00     CARE D Downgraded from
                                     CARE BB+; Negative

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facility of STL
takes into consideration the delays in debt serving by the
company.

Detailed description of the key rating drivers

Ongoing delays in debt servicing
There are delays in servicing the principal and interest on term
loans availed by the company. The liquidity position of the
company is stretched due to slow down in the real estate business
and delay in collections of customer advances.
Subdued industry scenario

The real estate market in Delhi-NCR has seen slow-down in the
sales in past few quarters. Competitive pricing, increased
transparency, speedy approvals process, clear land titles,
improved delivery and project execution are expected to
support growth of the real estate sector.

Analytical approach: Consolidated; the business and financial
risk profiles of Supertech and its subsidiaries and associates
have been combined, namely, Supertech Realtors Pvt Ltd, Dazzle IT
Solutions Pvt Ltd, Supertech Infrastructure Pvt Ltd, Surprise
Suppliers Pvt Ltd, Supertech Hotels P Ltd, Supertech Township
Projects Ltd, Supertech Precast Technologies Pvt Ltd, Revital
Reality Pvt Ltd, Tirupati Buildplaza Pvt Ltd, Supertech Estate
Pvt Ltd, Sarv Realtors Pvt Ltd, Doon Valley Technopolis Pvt Ltd,
and Accord Buildcon Pvt Ltd. This is because all these entities,
collectively referred to as the Supertech group, have business
and financial linkages (as is also evident from investments made
and corporate guarantees extended by STL to the entities), and
are under a common management.

Supertech Limited (STL), incorporated in 1995 was promoted by Mr.
R. K. Arora. The company is in the business of developing real
estate projects in the residential, commercial and retail
segments in the NCR region and other prominent places in Uttar
Pradesh, Uttarakhand and Banaglore. Supertech has more than 23
active real estate projects; most of these are based in Noida and
Greater Noida. The group is now diversifying to Gurgaon with the
launch of projects viz Supertech Basera, Hues, Aravali and
Hilltown. Some of its underconstruction projects include Eco
City, Eco Village, Cape Town, Supernova, Upcountry, and North
Eye. Some of the completed projects include Emerald Court
(Noida), Palm Green (Moradabad), and Palm Green (Meerut).

During FY16 (refers to the period April 1 to March 31), STL
reported a revenue of INR1,389 crore (PY: INR1,475 crore) and a
PAT of INR33 crore (PY: INR51 crore). Further, as per 9MFY17
financials (un-audited), STL reported revenue of INR1077.07
crore and a PAT of INR26.85 crore.


SUPERTECH PRECAST: CARE Lowers Rating on INR38.53cr Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Supertech Precast Technologies Private Limited (SPTPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             38.53      CARE D Downgraded from
                                     CARE BB+ (SO); Negative

Detailed Rationale & Key Rating Drivers

The above rating was earlier based on credit enhancement in the
form of an unconditional and irrevocable corporate guarantee
provided by Supertech Limited (STL) towards long term bank
facilities of Supertech Precast Technologies Private Limited
(SPTPL). The revision in the ratings assigned to the bank
facility of SPTPL takes into consideration the delays in debt
serving on account of stressed liquidity position of the group.

Detailed description of the key rating drivers

Ongoing delays in debt servicing
There are delays in servicing the principal and interest on term
loans availed by the company. The liquidity position of the
company is stretched due to slow down in the real estate business
and delay in collections of customer advances.

Subdued industry scenario
The real estate market in Delhi-NCR has seen slow-down in the
sales in past few quarters. Competitive pricing, increased
transparency, speedy approvals process, clear land titles,
improved delivery and project execution are expected to
support growth of the real estate sector.

Analytical approach: Consolidated; the business and financial
risk profiles of Supertech and its subsidiaries and associates
have been combined, namely, Supertech Realtors Pvt Ltd, Dazzle IT
Solutions Pvt Ltd, Supertech Infrastructure Pvt Ltd, Surprise
Suppliers Pvt Ltd, Supertech Hotels P Ltd, Supertech Township
Projects Ltd, Supertech Precast Technologies Pvt Ltd, Revital
Reality Pvt Ltd, Tirupati Buildplaza Pvt Ltd, Supertech Estate
Pvt Ltd, Sarv Realtors Pvt Ltd, Doon Valley Technopolis Pvt Ltd,
and Accord Buildcon Pvt Ltd. This is because all these entities,
collectively referred to as the Supertech group, have business
and financial linkages (as is also evident from investments made
and corporate guarantees extended by STL to the entities), and
are under a common management.

Supertech Precast Technologies Private Limited (SPTPL) is 100%
subsidiary of Supertech Township Projects Limited (rated CARE D).
SPTPL is into the precast technology in which prefabricated
concrete structure are developed at company manufacturing
facilities and transported to the project site. The company has
its manufacturing facilities located at Noida. Presently, the
company is mainly working for Supertech Limited.

About the Guarantor- Supertech Limited

Supertech Limited (STL), incorporated in 1995 was promoted by Mr.
R. K. Arora. The company is in the business of developing real
estate projects in the residential, commercial and retail
segments in the NCR region and other prominent places in Uttar
Pradesh, Uttarakhand and Banaglore. Supertech has more than 23
active real estate projects; most of these are based in Noida and
Greater Noida. The group is now diversifying to Gurgaon with the
launch of projects viz Supertech Basera, Hues, Aravali and
Hilltown. Some of its underconstruction projects include Eco
City, Eco Village, Cape Town, Supernova, Upcountry, and North
Eye. Some of the completed projects include Emerald Court
(Noida), Palm Green (Moradabad), and Palm Green (Meerut).


SUPERTECH REALTORS: CARE Lowers Rating on INR735cr LT Loan to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Supertech Realtors Private Limited (SRPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              735       CARE D Downgraded from
                                     CARE BB+ (SO); Negative

Supertech Realtors Private Limited

Detailed Rationale & Key Rating Drivers

The above rating was earlier based on credit enhancement in the
form of an unconditional and irrevocable corporate guarantee
provided by Supertech Limited (STL) towards long term bank
facilities of Supertech Realtors Private Limited (SRPL). The
revision in the ratings assigned to the bank facility of SRPL
takes into consideration the delays in debt serving on account of
stressed liquidity position of the group.

Detailed description of the key rating drivers

Ongoing delays in debt servicing

There are delays in servicing the principal and interest on term
loans availed by the company. The liquidity position of the
company is stretched due to slow down in the real estate business
and delay in collections of customer advances.

Subdued industry scenario
The real estate market in Delhi-NCR has seen slow-down in the
sales in past few quarters. Competitive pricing, increased
transparency, speedy approvals process, clear land titles,
improved delivery and project execution are expected to
support growth of the real estate sector.

Analytical approach: Consolidated; the business and financial
risk profiles of Supertech and its subsidiaries and associates
have been combined, namely, Supertech Realtors Pvt Ltd, Dazzle IT
Solutions Pvt Ltd, Supertech Infrastructure Pvt Ltd, Surprise
Suppliers Pvt Ltd, Supertech Hotels P Ltd, Supertech Township
Projects Ltd, Supertech Precast Technologies Pvt Ltd, Revital
Reality Pvt Ltd, Tirupati Buildplaza Pvt Ltd, Supertech Estate
Pvt Ltd, Sarv Realtors Pvt Ltd, Doon Valley Technopolis Pvt Ltd,
and Accord Buildcon Pvt Ltd. This is because all these entities,
collectively referred to as the Supertech group, have business
and financial linkages (as is also evident from investments made
and corporate guarantees extended by STL to the entities), and
are under a common management.

Supertech Realtors Private Limited (SRPL) is 100% subsidiary of
STL (rated CARE D). SRL is developing a real project under
the name of 'Supernova' in Noida at total project cost of
INR3907cr funded through promoter equity of INR527 crore,
customer advance of INR2645 crore and term loan from bank of
INR736 crore.

About the Guarantor- Supertech Limited

Supertech Limited (STL), incorporated in 1995 was promoted by
Mr. R. K. Arora. The company is in the business of developing
real estate projects in the residential, commercial and retail
segments in the NCR region and other prominent places in Uttar
Pradesh, Uttarakhand and Banaglore. Supertech has more than 23
active real estate projects; most of these are based in Noida and
Greater Noida. The group is now diversifying to Gurgaon with the
launch of projects viz Supertech Basera, Hues, Aravali and
Hilltown. Some of its underconstruction projects include Eco
City, Eco Village, Cape Town, Supernova, Upcountry, and North
Eye. Some of the completed projects include Emerald Court
(Noida), Palm Green (Moradabad), and Palm Green (Meerut).


SUPERTECH TOWNSHIP: CARE Lowers Rating on INR340cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Supertech Township Project Limited (STPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              340       CARE D Downgraded from
                                     CARE BB+ (SO); Negative

The above rating was earlier based on credit enhancement in the
form of an unconditional and irrevocable corporate guarantee
provided by Supertech Limited (STL) towards long term bank
facilities of Supertech Township Project Limited (STPL). The
revision in the ratings assigned to the bank facility of STPL
takes into consideration the delays in debt serving on account of
stressed liquidity position of the group.

Detailed description of the key rating drivers

Ongoing delays in debt servicing
There are delays in servicing the principal and interest on term
loans availed by the company. The liquidity position of the
company is stretched due to slow down in the real estate business
and delay in collections of customer advances.

Subdued industry scenario
The real estate market in Delhi-NCR has seen slow-down in the
sales in past few quarters. Competitive pricing, increased
transparency, speedy approvals process, clear land titles,
improved delivery and project execution are expected to
support growth of the real estate sector.

Analytical approach: Consolidated; the business and financial
risk profiles of Supertech and its subsidiaries and associates
have been combined, namely, Supertech Realtors Pvt Ltd, Dazzle IT
Solutions Pvt Ltd, Supertech Infrastructure Pvt Ltd, Surprise
Suppliers Pvt Ltd, Supertech Hotels P Ltd, Supertech Township
Projects Ltd, Supertech Precast Technologies Pvt Ltd, Revital
Reality Pvt Ltd, Tirupati Buildplaza Pvt Ltd, Supertech Estate
Pvt Ltd, Sarv Realtors Pvt Ltd, Doon Valley Technopolis Pvt Ltd,
and Accord Buildcon Pvt Ltd. This is because all these entities,
collectively referred to as the Supertech group, have business
and financial linkages (as is also evident from investments made
and corporate guarantees extended by STL to the entities), and
are under a common management.

Supertech Township Project Limited (STPL) is 100% subsidiary of
Supertech Limited (rated CARE D). STPL is developing a real
project under the name of 'Golf Country' in Noida at total
project cost of INR2,118cr funded through promoter equity of
INR453 crore, customer advance of INR1325 crore and term loan
from bank of INR340 crore.

           About the Guarantor- Supertech Limited

Supertech Limited (STL), incorporated in 1995 was promoted by Mr.
R. K. Arora. The company is in the business of developing real
estate projects in the residential, commercial and retail
segments in the NCR region and other prominent places in Uttar
Pradesh, Uttarakhand and Banaglore. Supertech has more than 23
active real estate projects; most of these are based in Noida and
Greater Noida. The group is now diversifying to Gurgaon with the
launch of projects viz Supertech Basera, Hues, Aravali and
Hilltown. Some of its underconstruction projects include Eco
City, Eco Village, Cape Town, Supernova, Upcountry, and North
Eye. Some of the completed projects include Emerald Court
(Noida), Palm Green (Moradabad), and Palm Green (Meerut).


TM MOTORS: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed TM Motors
Private Limited's (TMMPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable. The instrument-wise rating actions are:

-- INR120 mil. Fund-based working capital limits affirmed with
    IND BB+/Stable/IND A4+ rating

KEY RATING DRIVERS

The affirmation reflects TMMPL's continued small-to-moderate
scale of operations and weak EBITDA margin inherent to the
trading nature of the business. As per FY17 provisional
financials, revenue was INR742.80 million (FY16: INR713.46
million) EBITDA margin was 3.52% (FY16: 3.31%).

The ratings, however, continue to be supported by the company's
comfortable liquidity position with average cash credit
utilisation of 85.04% during the 12 months ended June 2017.

The ratings also continue to factor in TMMPL's moderate-to-strong
credit metrics. Interest coverage (operating EBITDA/gross
interest expense) was almost stable at 2.74x in FY17P (FY16:
2.72x), while net financial leverage (total adjusted net
debt/operating EBITDAR) deteriorated to 2.88x (FY15: 2.25x) on
account of increased external borrowings.

The ratings further remain supported by the promoters' around
three decades of experience in the trading of four-wheelers and
its authorised 3S dealership of Maruti Suzuki India Limited.

RATING SENSITIVITIES

Negative: A decline in the EBITDA margin leading to deterioration
in the credit metrics could lead to a negative rating action.

Positive: A significant growth in the revenue along with the
credit metrics being maintained or improved could lead to a
positive rating action.

COMPANY PROFILE

TMMPL, incorporated in 2008, is engaged in trading of four-
wheelers. The authorised 3S dealership is located in Bharatpur,
Rajasthan.


VRAJ AND VAJ: CARE Lowers Rating on INR6cr LT Loan to B+
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Vraj and Vaj Construction (VRAJ), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               6        CARE B+; Stable Revised
                                     from CARE BB-

   Short-term Bank
   Facilities               2        CARE A4 Reaffirmed

Detailed Rationale and Key Rating Drivers

The revision in the long-term rating assigned to the bank
facilities of Vraj and Vaj Construction (VRAJ) is on account of
decline in its profit margins, cash accruals, deterioration in
solvency position and debt protection metrics during FY17.

The ratings are also constrained on account of elongated
operating cycle, tender driven nature of operations coupled with
its presence in a highly competitive industry, geographic
concentration risk and constitution as a proprietorship firm.

The ratings, however, derive benefits from experienced promoters
along with established track record of operations.  The ability
of VRAJ to increase its scale of operations with improvement in
profit margins, solvency position, debt protection metrics along
with better working capital management will be the key rating
sensitivities.

Detailed description of the key rating drivers

Key rating weaknesses

Small scale of operations with decline in profit margins and cash
accruals
Scale of operations of VRAJ though increased stood small at
INR14.86 crore during FY17. Operating margins declined by 558 bps
during FY17 on the back of significant increase in sub
contracting charges. Subsequently, both PAT and GCA declined
during FY17.

Deterioration in solvency position, debt coverage indicators and
elongated working capital cycle
Solvency position marked by an overall gearing deteriorated on
the back of increase in debt level coupled with low net worth
base as on March 31, 2017 and it stood leveraged. Total debt to
GCA also deteriorated significantly on the back of increase in
debt level and significant decline in cash accruals on the back
of decline in profit levels. Operating cycle remained elongated
113 days during FY17 on the back of high inventory level. On
account of which working capital utilization remained full for
trailing 12 month period ended May 2017.

Key rating strengths

Experienced promoters along with established track record of
operation
The partners possess more than four decades of experience in the
construction industry. VRAJ is operating in the construction
industry since 1985 reflects established track record of
operation in the industry.

VRAJ was established in 1985 by Mr. Virendra S Patel, Mr.
Gajendra R Patel, Mr. Gandalal H Lakhani and Mr. Shambhulal K
Patel as a partnership firm. After the demise of Mr. Shambhulal K
Patel, his son Mr. Alpesh S Patel was inducted as a partner in
the firm in 1998. Vraj is engaged in construction and maintenance
work for Military Engineering Services (MES) mainly in Gujarat.
The firm is an approved special class contractors and registered
as 'S' (Specialist) class contractor with MES and secures all its
contracts through open tendering process.

During FY17 Provisional (refers to the period April 1 to
March 31), VRAJ reported PAT of INR0.18 crore on a TOI of
INR14.86 crore as against PAT of INR0.30 crore on a TOI of
INR13.34 crore during FY16.


VRIDDHI INFRATECH: CARE Assigns 'B' Rating to INR15cr LT Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Vriddhi Infratech-Blacklead Infratech (JV) (VIBI), as:

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

Detailed Rationale and key Rating Factors

The rating assigned to the bank facilities of VIBI is primarily
constrained by short track record of the entity in the
infrastructure industry along with nascent stage of operations.
The rating is further constrained by concentration in the order
book with geographical concentration risk and competitive nature
of the industry.

The rating, however, draws comfort from established track record
of JV partners in the infrastructure industry.

Going forward, the ability of JV to stable its operations while
achieving its profitability profile as envisaged and maintaining
a favorable capital structure shall be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record and small scale of operations:
JV commenced operations in December 2016 and has less than one
year of track record of operations in infrastructure industry as
compared with other established players. The company has achieved
operating income of INR3 crore in first three months of
operations (December 2016- February 2017). The operations of the
JV stood small which in turn limits the JV's financial
flexibility in times of stress and deprives it of scale benefits.

Customer and geographical concentric order book:
The order book exhibits project concentration risk with JV's
order book is concentrated to two orders only, mainly includes
road construction projects awarded by UPPWD (Uttar Pradesh Public
Works department). Also, JV exposed to risk related with customer
concentration risk, as all the JV's projects are from UP PWD.
Project concentration risk coupled with customer concentration
risk, expose the JV with risk related to allocation of fund or
regulatory changes.

Furthermore, given majority of projects in UP, the company is
also exposed to geographical concentration risk like political
uncertainty or natural disasters.

Highly competitive industry and business risk associated with
tender-based orders:
JV faces direct competition from various organized and
unorganized players in the market. There are number of small and
regional players catering to same market which has limited
bargaining power with government departments and has exerted
pressure on its margins.

The JV majorly undertakes government projects, which are awarded
through tender-based system. The JV is exposed to the risk
associated with tender-based business, which is characterized by
intense competition. The growth of business depends on its
ability to successfully bid for the tenders and emerge as the
lowest bidder. Hence, going forward, due to increasing level of
competition and aggressive bidding, profits margins are likely to
be under pressure in the medium term. Furthermore, any changes in
the government policy or government spending on projects are
likely to affect the revenues of the firm.

Vriddhi Infratech - Blacklead Inftratech (JV) (VIBI),
incorporated in 2016, is a joint venture between Vriddhi
Infratech India Private Limited (rated 'CARE BB/CARE A4') and
Blacklead Infratech Private Limited. VIBI was formed to undertake
road construction projects, related to widening and strengthening
of roads on engineering, procurement and construction (EPC)
basis.



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


TOSHIBA CORP: Nomura Asset Votes Against Tsunakawa Reappointment
----------------------------------------------------------------
Nikkei Asian Review reports that Japan's Nomura Asset Management
revealed on July 18 that it voted against the reappointment of
Toshiba President Satoshi Tsunakawa, in reaction to the financial
debacle hounding the technology group.

Nomura Holdings' fund-management arm came out against Toshiba's
roster of choices to fill top slots at the embattled
conglomerate's June 28 shareholders meeting, the report says.

Last month also featured some tough love for Fujifilm Holdings,
which is dealing with an accounting scandal uncovered at
subsidiaries, the report recalls. Nomura Asset Management
rejected motions to reappoint Chairman Shigetaka Komori and
President Kenji Sukeno. Also receiving a "no" vote from Nomura
was Osamu Masuko, president of Mitsubishi Motors, the automaker
found last year to have cheated on fuel economy tests.

In the 1,692 shareholders meetings attended by Nomura Asset
Management during the April-June quarter, the firm rejected 8.5%
of all company proposals, Nikkei discloses. They included
opposition to 5.7% of motions to elect directors, 23.9% of
auditor choices, and 53.7% of propositions to grant retirement
bonuses.

What makes Toshiba and Fujifilm stand out are the deep ties they
share with the Nomura group. Nomura Securities is the lead
securities underwriter for both conglomerates. But Nomura Asset
Management, which says the votes are purely reflective of its own
criteria, is signaling its heavy focus on client benefits, the
report says.

"In cases where group interests may come into conflict, [Nomura
Asset Management] appears to be making free and unbiased
decisions that follow the firm's guideline," Nikkei quotes Takaya
Seki, a professor at Rissho University who is an expert on
corporate governance, as saying.

According to the Nikkei, the fund manager also opposed selections
for outside directors and outside auditors, citing the lack of
distance between the nominees and the companies they will
oversee. Japanese food conglomerate Yakult Honsha named two
individuals from Danone to its board, but the French industry
peer is also a major Yakult shareholder.

Nomura Asset Management rebuffed every takeover safeguard
proposal brought up at the meetings. It also opposed plans by
construction firm Toda and sporting goods maker Goldwin to
transfer shares to foundations at 1 yen each, the report notes.

Of the 211 motions brought forward by shareholders, Nomura Asset
Management supported only 15, adds Nikkei.

                           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
June 19, 2017, S&P Global Ratings said it has kept its 'CCC-'
long-term and 'C' short-term ratings on Japan-based capital goods
and diversified electronics company Toshiba Corp. on CreditWatch
with negative implications.  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 a 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 and when S&P lowered the long-term
ratings in March 2017.

The ratings remain on CreditWatch, reflecting S&P's view that
creditor banks' support for Toshiba together with the company's
liquidity levels warrant continued close monitoring because its
plan to sell its memory business has yet to materialize and
additional losses or financial burdens might still arise in
connection with its U.S. nuclear power business.  S&P continues
to hold the view that without unanticipated, significantly
favorable changes in Toshiba's circumstances, the company might
become unable to fulfill its financial obligations in a timely
manner or might undertake a debt restructuring S&P classifies as
distressed in the next six months.



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


ROSS ASSET: 160 'Overpaid' Investors Offered NZ$21.6MM Settlement
-----------------------------------------------------------------
BusinessDesk reports that the liquidators for Ross Asset
Management has written to 160 investors paid fictitious profits
from the country's biggest-ever Ponzi scheme with an offer to
settle for NZ$21.6 million.

BusinessDesk relates that PwC's John Fisk and David Bridgman put
the offer to those investors after the May 26 Supreme Court
ruling that Wellington lawyer Hamish McIntosh could keep the
principal he invested in Ross Asset Management but had to return
the fake profits. Those investors have until July 21 to accept
the deal, otherwise the liquidators "will be considering further
recovery action," they said in their latest update on the
fraudulent business, BusinessDesk relays.

According to BusinessDesk, the report said another 54 investors
cut deals with the liquidators before the Supreme Court decision,
allowing them to recover NZ$9.7 million for the 1,200 or so
investors out of pocket. They have also told investors facing
capital-only claims that they won't be pursued.

Wellington-based David Ross built up a private investment service
by word of mouth, producing regular reports for shareholders
indicating healthy but fictitious returns. Between June 2000 and
September 2012, Ross reported false profits of NZ$351 million
from fictitious securities trading as part of a fraud that was
the largest such crime committed by an individual in New Zealand.

In reality, about NZ$100 million to NZ$115 million of investor
funds were frittered away in the Ponzi scheme, and the
liquidators sought to claw back funds paid out to investors in
the lead-up to the collapse, going all the way to the Supreme
Court, so as to equally share the money with Ross's victims,
recounts the report.

Messrs. Fisk and Bridgman said they will need court directions on
the most appropriate way to distribute the funds and have started
work on an application which they will show investors before
lodging their submission with the courts, BusinessDesk reports.

"Investors will have an opportunity to make submissions to the
court should they wish to be heard on this matter," the
liquidators, as cited by BusinessDesk, said. "As soon as possible
after the model has been approved the liquidators intend to make
an interim distribution to investors."

The latest report showed Ross Asset Management is sitting on
about NZ$9.2 million in cash, including settlements, asset sales
and investment income, and after NZ$2 million of legal fees and
NZ$1.3 million of liquidators' fees, BusinessDesk discloses.

                        About Ross Asset

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers
to Ross Asset Management Limited and nine other associated
entities following application by the Financial Markets
Authority.  The associated entities are:

     * Bevis Marks Corporation Limited;
     * Dagger Nominees Limited;
     * McIntosh Asset Management Limited;
     * Mercury Asset Management Limited;
     * Ross Investment Management Limited;
     * Ross Unit Trusts Management Limited;
     * United Asset Management Limited;
     * Chapman Ross Trust;
     * Woburn Ross Trust;
     * Ace Investments Limited or Ace Investment Trust Limited or
       Ace Investment Trust;
     * Vivian Investments Limited; and
     * Ross Units Trusts Limited.

The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.

Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.

The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:

   -- Ross Asset Management Limited (In Receivership);
   -- Bevis Marks Corporation Limited (In Receivership);
   -- McIntosh Asset Management Limited (In Receivership);
   -- Mercury Asset Management Limited (In Receivership);
   -- Dagger Nominees Limited (In Receivership);
   -- Ross Investment Management Limited (In Receivership);
   -- Ross Unit Trust Management Limited (In Receivership); and
   -- United Asset Management Limited (In Receivership).



=============
V I E T N A M
=============


DUNG QUAT: Nearly 1,000 Workers Worry About Shipyard Bankruptcy
---------------------------------------------------------------
Dtinews reports that nearly one thousand employees at the loss-
making Dung Quat Shipyard are worried about losing jobs as the
business is facing bankruptcy.

At present, hundreds of shipyard workers in the central province
of Quang Ngai's Binh Son District are still working on three
ships which may be their last products as the company may close
soon, Dtinews relates.

According to Dtinews, the news that the firm may go bankrupt is
worrying worker Truong Van Chanh as well as nearly 1,000 other
staff of the company.

Dtinews relates that worker Truong Van Chanh said that he had
been working at Dung Quat Shipyard for very long and at this age,
he didn't know where to go if the company closes.

According to the report, Mr. Chanh said when the company was
operating well, his salary was VND10 million (USD441) a month so
life was very good.

"But now we don't have much work to do so my salary has slashed
to only half of that, between VND4-5 million a month," the report
quotes Mr. Chanh as saying.

The worker said that he and many other workers have been seeking
for extra jobs to earn more money . . . although the situation
now is very difficult, we still hope that it will get better some
day," the report notes. "We don't want to lose the job we have
been doing for a long time."

Speaking to Dtinews, chairman of the company trade union, Vo Tan
Thanh, admitted that they were very sad about the proposal by the
Ministry of Industry and Trade to close.

"We're still trying to complete three ships before the end of
this year and hope that that won't be our last contract," the
report quotes Mr. Thanh as saying. "Most of our workers have been
working here for at least seven years and aren't young so they'll
face difficulties finding a job at other companies."

The Ministry of Industry and Trade recently proposed to the
National Assembly to prioritise bankruptcy for the business which
was one of five loss-making projects invested by PetroVietnam,
adds Dtinews.

Originally a wholly-owned subsidiary of the troubled Vietnam
Shipbuilding Industry Group, which went bankrupt in 2012 and was
renamed the Shipbuilding Industry Corporation in 2013, the
shipbuilder came under PetroVietnam's management in July 2010,
shortly before being tasked with several shipbuilding projects
and eventually descending into extreme debt, according to
Dtinews.

Dtinews relates that the Vietnam Economic Times cited financial
statements as at June 30, 2010, the shipbuilder had charter
capital of VND3.76 trillion (USD165.8 million) and total losses
of VND7.44 trillion (USD328 million), including bank loans of
VND4.8 trillion (USD211.6 million), 70 percent of which were in
foreign currency.

After taking over the management of DQS, PetroVietnam pumped
VND5.1 trillion (USD224 million) into the company, including
charter capital of nearly VND2 trillion (USD88 million) and
VND3.1 trillion (USD136 million) for paying its debts, Dtinews
relates.

According to Dtinews, figures from the ministry showed that by
the end of June last year, the shipbuilder's total debts were
VND6.89 trillion (USD307.6 million), accumulated losses VND3.68
trillion (USD164.3 million), and negative equity VND1.18 trillion
(USD52.7 million).

The shipbuilder's equipment was described as inappropriate and
out of date, and had failed quality requirements for
manufacturing and production processes, resulting in a large
annual depreciation cost for the shipbuilder, according to
ministry's assessment, Dtinews discloses citing the Vietnam
Economic Times.

The firm was one among seven additional loss-making projects
reported recently by the Ministry of Industry and Trade, raising
the number of failing projects to 12, adds Dtinews.



                             *********

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
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                 *** End of Transmission ***