TCRAP_Public/170803.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, August 3, 2017, Vol. 20, No. 153

                            Headlines


A U S T R A L I A

ACN 154: First Creditors' Meeting Set for Aug. 9
ACN 606: First Creditors' Meeting Set for Aug. 9
ARRIUM LIMITED: Creditors' Claims Filing Deadline Set for Aug. 14
BLERIOT NO. 17: Second Creditors' Meeting Set for Aug. 10
EON SPORTS: Liquidators Probe Into Insolvent Trading

FORTESCUE METALS: S&P Cuts ICR on Sr. Unsec. Notes to 'BB'
GOLDSCENE CORPORATION: Second Creditors' Meeting Set for Aug. 10
IPRO SOLUTIONS: Second Creditors' Meeting Set for Aug. 9
JOHN REYNOLDS: First Creditors' Meeting Set for Aug. 10
LINC ENERGY: Taxpayers to Foot the Bill for Chinchilla Clean-up

PLATYPUS SHOPFIT: First Creditors' Meeting Set for Aug. 10
PRIME PROJECT: First Creditors' Meeting Set for Aug. 11
QUINTIS LTD: Misses AUD10.9MM Coupon Payment Due Aug. 1
QUINTIS LIMITED: Moody's Lowers Corporate Family Rating to Ca
REMANET PTY: Second Creditors' Meeting Set for Aug. 10

VIOLEO PTY: Second Creditors' Meeting Set for Aug. 10
WORKFORCE HIRE: Second Creditors' Meeting Set for Aug. 10


C H I N A

CHINA OIL: S&P Affirms 'BB' Corp Credit Rating, Outlook Positive
CIFI HOLDINGS: Proposed Share Issues No Impact on Moody's Ba3 CFR
FUTURE LAND: Fitch Publishes BB- Long-Term IDR; Outlook Positive
FUTURE LAND: Moody's Assigns Ba3 CFR; Outlook Positive
SPI ENERGY: Nasdaq Extends Listing Suspension Stay to August 10

YUZHOU PROPERTIES: Fitch Affirms BB- LT IDR; Outlook Stable


H O N G  K O N G

NOBLE GROUP: Pays Coupon on 2020 Bond, Market Sources Say
SUNSHINE OILSANDS: In Talks on Repayment of Notes Due Aug. 1


I N D I A

AGARWAL GENERAL: CARE Assigns 'B+' Rating to INR1.50cr Loan
AZAM RUBBER: CARE Lowers Rating on INR51.98cr LT Loan to 'D'
BHARAT RICE: CRISIL Reaffirms 'B' Rating on INR7MM Cash Loan
BS LIMITED: CARE Lowers Rating on INR746.58cr Loan to 'D'
DEEPAM SILK: CRISIL Raises Rating on INR9MM Cash Loan to BB

DHARANI SUGARS: CARE Lowers Rating on INR316.53cr LT Loan to D
ELECTROSTEEL STEELS: NCLT Admits SBI's Insolvency Petition
GEETA REFINERY: CRISIL Lowers Rating on INR20MM Cash Loan to B
GO-GREEN CONSTRUCTION: CRISIL Cuts Rating on INR12.68MM Loan to D
GOPISH PHARMA: CARE Lowers Rating on INR9.0cr LT Loan to 'D'

GURU GOBIND: CRISIL Reaffirms B- Rating on INR8MM LT Loan
HOWRAH MILLS: CRISIL Reaffirms D Rating on INR52.4MM Cash Loan
INVENTION REALTORS: CARE Lowers Rating on INR15cr Loan to D
JAYPEE INFRATECH: Has Until Aug. 4 to Respond to IDBI Petition
JBF INDUSTRIES: CARE Lowers Rating on INR1,600cr Loan to 'D'

K S INFRA: CARE Assigns B+ Rating to INR4.0cr LT Loan
K. R. SOLVENT: CRISIL Lowers Rating on INR6.53MM Term Loan to B
MAHAKALI CHANDRAPUR: CRISIL Reaffirms D Rating on INR7MM Loan
MAHALAXMI TMT: CARE Lowers Rating on INR619.56cr LT Loan to D
MANGALATHU ENTERPRISES: CRISIL Cuts Rating on INR3MM Loan to B

MPK ISPAT: CARE Lowers Rating on INR19.30cr LT Loan to 'D'
MPK METALS: CARE Lowers Rating on INR6.41cr LT Loan to 'D'
MPK STEEL: CARE Lowers Rating on INR15.67cr LT Loan to 'D'
NAMDHARI RICE: CARE Lowers Rating on INR11.50cr LT Loan to D
NOOR INDIA: CARE Lowers Rating on INR7.0cr LT Loan to 'D'

P.T. SREENIVASAN: CRISIL Reaffirms B- Rating on INR1.2MM Loan
PALAPARTHI SUPER: CARE Lowers Rating on INR70cr LT Loan to D
PNS METALS: CRISIL Lowers Rating on INR9MM Loan to 'B'
PRADEEP UDYOG: CARE Downgrades Rating on INR10cr LT Loan to D
PRANAAV MARATHE: CARE Downgrades Rating on INR32.20cr Loan to D

PUNJAB BIOMASS: CARE Lowers Rating on INR17.85cr Loan to D
R V REALTY: CARE Lowers Rating on INR9.50cr LT Loan to 'D'
RAIGANJ JEEVAN: CARE Assigns B+ Rating to INR7.0cr LT Loan
RAMSARUP INDUSTRIES: ICICI Bank Opposes Insolvency Petition
RANCHHOD OIL: CARE Lowers Rating on INR9.50cr LT Loan to 'D'

S J DEVELOPERS: CRISIL Cuts Rating on INR9MM Term Loan to 'B'
SAMRA INDUSTRIES: CRISIL Lowers Rating on INR7MM Loan to D
SAURABH PRERNA: CARE Assigns B+ Rating to INR5.06cr LT Loan
SHALIMAR PAINTS: CARE Lowers Rating on INR76.25cr Loan to D
SHREE BALAJI: CARE Lowers Rating on INR4.80cr LT Loan to 'D'

SHREE RAJASTHAN: CARE Lowers Rating on INR105.75cr Loan to D
SJP CONSTRUCTIONS: CARE Assigns B+ Rating to INR8.66cr Loan
SOORAJ AGRO: CRISIL Raises Rating on INR11MM Cash Loan to BB-
SRI GURU: CARE Lowers Rating on INR30cr LT Loan to 'D'
SRI RANGANATHASWAMY: CARE Reaffirms 'D' Rating on INR7.50cr Loan

STAR IMPEX: CRISIL Lowers Rating on INR2MM Cash Loan to B
STEEL EXCHANGE: CARE Lowers Rating on INR575.42cr Loan to 'D'
STONE INDIA: CARE Lowers Rating on INR34.48cr LT Loan to 'D'
SUZUKI TEXTILES: CARE Downgrades Rating on INR143.87cr Loan to D
TULSI TRADING: CARE Lowers Rating on INR6.25cr LT Loan to D

V. S. COTTON: CRISIL Reaffirms 'D' Rating on INR2.64MM Term Loan
VINDHYAVASINI AUTO: CRISIL Cuts Rating on INR3.5MM Loan to B
WASAN HOSPITALITY: CARE Cuts Rating on INR38cr LT Loan to 'D'
ZEDSON AGRO: CRISIL Reaffirms B+ Rating on INR4.30MM LT Loan


I N D O N E S I A

GAJAH TUNGGAL: Moody's Puts Caa1 CFR on Review for Upgrade
KAWASAN INDUSTRI: S&P Affirms 'B+' CCR, Revises Outlook to Neg.
TUNAS BARU: Moody's Assigns Ba3 CFR; Outlook Stable


J A P A N

EMORI GROUP: Mizuho, SMBC Auction Debt Claims in Emori
* JAPAN: DBJ, Hoshino & Banks to Start Fund for Struggling Hotels


M A L A Y S I A

1MALAYSIA: Misses $603 Million Payment to Abu Dhabi Fund
ASIA BRANDS: External Auditors Raise Going Concern Doubt


N E W  Z E A L A N D

BANKS GROUP: Receivers Sell Shoe Stores to Owner's Son


S I N G A P O R E

MACRO REALTY: 981 Singaporeans Among Investors Duped


S R I  L A N K A

SIERRA CABLES: Fitch Affirms BB+ Long-Term Rating; Outlook Stable


                            - - - - -


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A U S T R A L I A
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ACN 154: First Creditors' Meeting Set for Aug. 9
------------------------------------------------
A first meeting of the creditors in the proceedings of A.C.N. 154
938 100 Pty Ltd, formerly trading as 'Structural Steel Pty Ltd',
will be held at the offices of BRI Ferrier (SA), Level 4, 12
Pirie Street, in Adelaide, SA, on Aug. 9, 2017, at 4:00 p.m.

Stuart Otway and Alan Scott of BRI Ferrier (SA) were appointed as
administrators of A.C.N. 154 on July 28, 2017.


ACN 606: First Creditors' Meeting Set for Aug. 9
------------------------------------------------
A first meeting of the creditors in the proceedings of A.C.N. 606
174 967 Pty Ltd, formerly trading as 'Quantum Stainless Pty Ltd',
will be held at the offices of BRI Ferrier (SA), Level 4, 12
Pirie Street, in Adelaide, SA, on Aug. 9, 2017, at 3:00 p.m.

Stuart Otway and Alan Scott of BRI Ferrier (SA) were appointed as
administrators of A.C.N. 154 on July 28, 2017.


ARRIUM LIMITED: Creditors' Claims Filing Deadline Set for Aug. 14
-----------------------------------------------------------------
Pursuant to clause 18.1 of the Arrium Distribution Deed of
Company Arrangement, the Deed Administrators are formally
requesting unsecured creditors prove their debt(s) or claim(s) by
no later than Aug. 14, 2017.

The failure to lodge a Formal Proof of Debt prior to Aug. 14,
2017, will result in:

- The claim being excluded from the benefit of any distribution
   made before your debt or claim is proved or your priority is
   established.

- The inability to object to the distribution.

For further information, or to receive a Formal Proof of Debt,
please contact the Deed Administrators at
arriumpod@kordamentha.com.

Arrium Limited (ASX:ARI) -- http://www.arrium.com/-- is an
Australia-based mining and materials company. The Company is
engaged in mining and supply of iron ore and steelmaking raw
materials; manufacture and supply of mining consumable products;
manufacture and distribution of steel products, and recycling of
ferrous and non-ferrous scrap metal. Its segments include Mining,
Mining Consumables, Steel and Recycling. Its Mining segment
exports hematite iron ore and supplies both pelletized magnetite
iron ore and hematite lump iron ore. Its Mining Consumables
segment consists of Moly-Cop grinding media business, Waratah
steel mill and Altasteel steel mill. Its Mining Consumables
segment supplies various mining consumables, such as grinding
media, wire ropes and rail wheels. Its Steel segment manufactures
billet and distributes steel and metal products, including
structural steel selections, steel plate, angels, channels,
reinforcing steel and carbon products. Its Recycling segment
supplies steelmaking raw materials.

Pursuant to orders made by the Federal Court of Australia on
April 12, 2016, Mark Mentha, Bryan Webster, Martin Madden and
Cassandra Mathews of KordaMentha have been appointed Joint and
Several Voluntary Administrators of the Company and its 93
Australian subsidiaries replacing Said Jahani, Paul Billingham,
Michael McCann and Matthew Byrnes of Grant Thornton, who were
appointed earlier in April.


BLERIOT NO. 17: Second Creditors' Meeting Set for Aug. 10
---------------------------------------------------------
A second meeting of creditors in the proceedings of Bleriot No.
17 Pty. Ltd., trading as Sims Iga Plus Liquor Footscray, and Sims
Supermarket Werribee Pty. Ltd, trading as Sims Iga Plus Liquor
Werribee, has been set for Aug. 10, 2017, at 11:00 a.m., at
Level 3, 326 William Street, in Melbourne, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 9, 2017, at 4:00 p.m.

Shane Justin Cremin & Gary Stephen Fettes of Rodgers Reidy were
appointed as administrators of Bleriot No. 17 on July 6, 2017.


EON SPORTS: Liquidators Probe Into Insolvent Trading
----------------------------------------------------
Zoe Samios at Mumbrella reports that EON Sports Radio is being
investigated on whether it continued to trade while insolvent by
its liquidation administrators, Cor Cordis, following the
station's abrupt axing last year.

Mumbrella, citing AFR, relates that the digital radio station -
which was axed abruptly in May - "may have been insolvent since
April 2017", after funds from the previous two months had been
exhausted.

Questions are currently being asked by the administrators around
EON's connection to the GIX digital racing media business, and
education group Acquire Learning, which is also in
administration, according to Mumbrella.

Documents prepared by Cor Cordis found EON had lost AUD1.9m since
July last year, and had posted negative revenue results for
December and January, Mumbrella relays citing an article in the
AFR on July 24.

EON Sports Radio, which was launched in July last year by Acquire
Learning founder John Wall, and music business identity Glenn
Wheatley, was the first national 24/7 sports radio station in
Australia.

EON had A-League and National Basketball League rights, however
found it difficult to attract sponsors, the report says.


FORTESCUE METALS: S&P Cuts ICR on Sr. Unsec. Notes to 'BB'
----------------------------------------------------------
S&P Global Ratings said that it has lowered its long-term issue
credit rating on Fortescue Metals Group Ltd.'s senior unsecured
notes due in 2022 and 2024 to 'BB' from 'BB+'. S&P said, "The
action reflects our view of a lower recovery amount available for
senior unsecured noteholders because of the potential for a
higher amount of priority claims under our hypothetical default
scenario, following the company's placement of a US$525 million
senior secured revolving credit facility. Our corporate credit
rating on Fortescue (BB+/Stable/--) is unaffected due to the
company's continued strong operating performance and ability to
maintain credit metrics in line with the 'BB+' rating even under
moderate iron ore price pressure."

The corporate credit rating on Fortescue and the issue rating on
the company's senior secured notes due 2022 are unaffected by the
new revolving credit facility. The issuer rating on Fortescue
continues to be supported by the company's reduced debt, low-cost
position on the global iron ore cost curve, and focus on
maintaining a prudent level of leverage, which improves its
resilience to periods of iron ore price weakness.

S&P said, "The 'BB' issue-level rating and '5' recovery rating
reflect our view of the potential for lower recovery (15%) for
senior unsecured noteholders. Under our hypothetical default
scenario, we assume that the company's cash balances will be
depleted and credit facilities had been drawn. Under the current
capital structure, the recovery rating on the senior secured
notes due in 2022 is '1' reflecting a very high recovery (95%).
The senior secured issue ratings remain unchanged at 'BBB-'."

Ratings List

  Downgraded
                                          To               From
  FMG Resources (August 2006) Pty Ltd.
   Senior Unsecured                       BB               BB+

  Ratings Affirmed

  FMG Resources (August 2006) Pty Ltd.
   Senior Secured                         BBB-


  Revised

                                          To               From

  FMG Resources (August 2006) Pty Ltd.
   Senior Secured
    Recovery Rating                       1(95%)           2(75%)

  FMG Resources (August 2006) Pty Ltd.
   Senior Unsecured
    Recovery Rating                       5(15%)           4(40%)


GOLDSCENE CORPORATION: Second Creditors' Meeting Set for Aug. 10
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Goldscene
Corporation Pty Ltd has been set for Aug. 10, 2017, at
10:30 a.m., at the offices of Worrells Solvency and Forensic
Accounting Level 3, 15 Ogilvie Road, Mount Pleasant, WA.

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 Aug. 9, 2017, at 5:00 p.m.


IPRO SOLUTIONS: Second Creditors' Meeting Set for Aug. 9
--------------------------------------------------------
A second meeting of creditors in the proceedings of IPro
Solutions Pty Ltd has been set for Aug. 9, 2017, at 10:00 a.m.,
at the offices of Grant Thornton Australia Ltd, Level 18, 145 Ann
Street, in Brisbane, Queensland.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 8, 2017, at 5:00 p.m.

Shaun Christopher McKinnon and Cameron Crichton of Grant Thornton
were appointed as administrators of IPro Solutions on July 5,
2017.


JOHN REYNOLDS: First Creditors' Meeting Set for Aug. 10
-------------------------------------------------------
A first meeting of the creditors in the proceedings of John
Reynolds Wholesale Pty Ltd will be held at the offices of
DuncanPowell, Level 4, 70 Pirie Street, in Adelaide, South
Australia, on Aug. 10, 2017, at 10:00 a.m.

Nicholas David Gyss and Christopher Robert Powell of DuncanPowell
were appointed as administrators of John Reynolds on July 13,
2017.


LINC ENERGY: Taxpayers to Foot the Bill for Chinchilla Clean-up
---------------------------------------------------------------
Sarah Vogler at The Courier-Mail reports that a push by the
Commonwealth to recoup cash covering the entitlements of former
workers of two collapsed resource companies could leave
Queenslanders stuck with a big bill.

According to the report, Environment Minister Steven Miles has
lashed the Federal Government for its decision to help fund a
court case that threatens to let Linc Energy off the hook for
maintenance costs at its underground gasification site near
Chinchilla.

If successful, the appeal would overturn a Supreme Court
direction that Linc obey an environmental protection order (EPO)
to look after its decommissioned plant ahead of making payments
to former workers or liquidators, the Courier-Mail says.

The Courier-Mail relates that Dr. Miles said that would set a
precedent allowing other collapsed resources companies to ditch
their environmental responsibilities when they go bust, including
Queensland Nickel whose operators are currently being forced
under an EPO to stop toxic material from the Yabulu plant's
tailings dam spilling into the Great Barrier Reef Marine Park.

The report says the State Government has already spent millions
as it attempts to investigate alleged contamination caused by
Linc Energy's operations and prosecute the company for that
alleged damage.

Dr. Miles described the Commonwealth's decision to help fund the
appeal by Linc's liquidators to get out of its environmental
obligations as outrageous, especially given the impact it would
have on other sites such as the nickel refinery, the report
relays.

"The Commonwealth is using complex legal strategies to try to get
their hands on funds that need to be spent keeping the site
safe," the report quotes Dr. Miles as saying.  "There is millions
of litres of contaminated water in these tailings dams near
populated areas and adjacent to the Great Barrier Reef. It is
vitally important that the site remain safe. But when you boil it
down it's pretty simple. If they were successful, Queensland
taxpayers would have to foot that bill."

A Federal Employment Department spokesman confirmed its
involvement in helping to fund the appeal but said it was to
ensure workers were paid what they were owed, The Courier-Mail
adds.

Australia-based Linc Energy specialized on a coal-based synthetic
fuel production as also on a conventional oil and gas production.
Linc Energy de-listed from the Australian Stock Exchange and
transferred to Singapore in 2013.

As reported in the Troubled Company Reporter-Asia Pacific on
April 19, 2016, Grant Dene Sparks, Stephen Longley and Martin
Ford of PPB Advisory were appointed as administrators of Linc
Energy Limited on April 15, 2016.  On May 23, Messrs. Sparks,
Stephen and Ford were appointed liquidators of the company.


PLATYPUS SHOPFIT: First Creditors' Meeting Set for Aug. 10
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Platypus
Shopfit Pty Ltd will be held at the Boardroom of Chifley
Advisory, Level 2, 9 Phillip Street, in Parramatta, NSW, on
Aug. 10, 2017, at 11:00 a.m.

Gavin Moss and Trent McMillen of Chifley Advisory Pty Ltd were
appointed as administrators of Platypus Shopfit on July 31, 2017.


PRIME PROJECT: First Creditors' Meeting Set for Aug. 11
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Prime
Project Development (Cairns) Pty Ltd will be held at the offices
of Vincents, Level 34, 32 Turbot Street, in Brisbane, Queensland,
on Aug. 11, 2017, at 11:00 a.m.

Nick Combis of Vincents was appointed as administrator of Prime
Project on Aug. 1, 2017.


QUINTIS LTD: Misses AUD10.9MM Coupon Payment Due Aug. 1
-------------------------------------------------------
Motley Fool reports that Quintis Ltd will remain suspended after
the company revealed it will be unable to make a coupon payment
of AUD10.9 million due to its debt investors by Aug. 1, 2017.

According to the report, the company has requested an extension
of its trading halt until Sept. 1, 2017, while it attempts to
resolve its cash flow problems and re-negotiate the terms of its
debt owed to bondholders.

The company stated it has until August 30 to either make the
AUD10.9 million payment or to receive a waiver to prevent a
default. Options to prevent a default include a capital raising,
equity injection, debt restructure, or some other sort of capital
injection, Motley Fool relates.

It was the allegations of U.S. hedge fund and short selling
specialist Glaucus Inc. that Quintis shares were worth zero that
sent the share price into a dive and accelerated the unraveling
of the company, adds Motley Fool.

Australia-based Quintis Limited, formerly TFS Corporation Ltd, is
engaged in the manufacture, sale, distribution, management,
ownership and promotion of sandalwood plantations. The Company's
segments include Plantation Management, Finance, Sandalwood
Products and Pharmaceutical. The Plantation Management segment is
responsible for the promotion and sales of Indian sandalwood lots
to investors, called growers. The Plantation Management segment
is also responsible for the establishment, maintenance and
harvesting of Indian sandalwood plantations on behalf of the
growers and group owned plantations. The Finance segment is
responsible for providing finance to growers to purchase
sandalwood lots. The Sandalwood Products segment is responsible
for the manufacture of sandalwood oil and products for resale
both domestic and internationally. The Pharmaceutical segment is
responsible for research and development of pharmaceutical and
biopharmaceutical products for commercializing.


QUINTIS LIMITED: Moody's Lowers Corporate Family Rating to Ca
-------------------------------------------------------------
Moody's Investors Service has downgraded Quintis Limited's
corporate family rating (CFR) and senior secured debt rating to
Ca from Caa1. The ratings remain on review for downgrade.

RATINGS RATIONALE

"The downgrade follows the company's announcement on July 31,
2017 that it does not expect to make a bi-annual interest payment
of USD10.9 million due on August 1, 2017," says Shawn Xiong, a
Moody's Analyst.

Quintis has until August 30, 2017 to either make the USD10.9
million interest payment or receive a waiver.

The company remains in discussions with noteholders as well as
other external parties in relation to potential debt and equity
transactions that would have the effect of achieving a
recapitalization of the company.

Quintis has also requested another extension of the voluntary
suspension of its securities on the Australian Stock Exchange
until September 1, 2017.

The ratings remain under review for downgrade, reflecting the
continued uncertainty surrounding Quintis' capital
recapitalization plan, as well as the potential exercise of a put
option by an institutional plantation owner.

The outlook on Quintis' CFR could return to stable if concrete
details materialize in regard to the recapitalization plan and
the exercise of the put option.

Quintis' ratings could be downgraded if a successful
recapitalization does not occur and/or the put option is
exercised and the company is unable to make the payments under
the put option.

It is unlikely that Quintis' ratings would be upgraded in the
medium term. The company needs to successfully recapitalize and
demonstrate a consistent operating track record before any
upgrade can be considered.

The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 2013.

Quintis Limited is one of the world's largest vertically
integrated manager and grower of Indian Sandalwood plantations,
with over 12,182 hectares of sandalwood trees under management.


REMANET PTY: Second Creditors' Meeting Set for Aug. 10
------------------------------------------------------
A second meeting of creditors in the proceedings of Remanet Pty
Ltd has been set for Aug. 10, 2017, at 10:30 a.m., at the offices
of Gregory J Shilton & Co, Unit 25, 282 Chesterville Road, in
Moorabbin, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 9, 2017, at 4:00 p.m.

Gregory John Shilton of Gregory J Shilton & were appointed as
administrators of Remanet Pty on July 10, 2017.


VIOLEO PTY: Second Creditors' Meeting Set for Aug. 10
-----------------------------------------------------
A second meeting of creditors in the proceedings of Violeo Pty.
Ltd. has been set for Aug. 10, 2017, at 10:30 a.m., at the
offices of Clifton Hall, Level 3, 431 King William Street, in
Adelaide, South Australia.

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 Aug. 9, 2017, at 4:00 p.m.

Timothy James Clifton and Daniel Lopresti of Clifton Hall were
appointed as administrators of Violeo Pty on July 6, 2017.


WORKFORCE HIRE: Second Creditors' Meeting Set for Aug. 10
---------------------------------------------------------
A second meeting of creditors in the proceedings of Workforce
Hire Pty. Ltd has been set for Aug. 10, 2017, at 12:30 p.m., at
the offices of Mackay Goodwin, Exchange House, Suite 2, Level 8,
10 Bridge Street, in Sydney, NSW.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Aug. 9, 2017, at 4:00 p.m.

Grahame Robert Ward and Domenico Alessandro Calabretta of Mackay
Goodwin were appointed as administrators of Workforce Hire on
July 6, 2017.



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CHINA OIL: S&P Affirms 'BB' Corp Credit Rating, Outlook Positive
----------------------------------------------------------------
S&P Global Ratings said it affirmed its 'BB' long-term corporate
credit rating on China Oil and Gas Group Ltd. (COGG). The outlook
is positive. S&P said, "We also affirmed our 'BB' issue rating on
the company's senior unsecured notes. At the same time, we
affirmed our 'cnBBB' long-term Greater China regional scale
rating on the company and its notes.

"We affirmed the ratings on COGG ratings because we expect that
the company's business mix will remain stable, and its dollar
margin will maintain its improving trend, given the recent gas
market reforms.

"At the same time, we have revised our assessment of COGG's
liquidity to strong from adequate following the company's recent
refinancing of its U.S.-dollar-denominated bond maturing in 2018.
COGG's liquidity needs have reduced due to the recent
refinancing. On April 11, 2017, COGG used its US$350 million
five-year senior notes to refinance its US$350 million notes due
2018. As a result of this transaction, the company has freed up
its cash on hand for other uses, and its cash from operations
will be strong to support its capital expenditure, dividends,
small debt maturity, and working capital needs over the next 12-
24 months.

"We estimate COGG's ratio of funds from operations (FFO) to debt
will remain robust at 22%-28% over the next two years, from 18%
in 2016.

"The regulatory environment is an important factor in our ratings
on regulated utilities, such as COGG. In the past, COGG had been
exposed to regulatory risk on its urban gas business in China due
to a lack of transparency in the setting of city-gas tariffs. In
addition, the execution of cost pass-through across different
local governments was not consistent. For example, the company
could not pass through rising city-gate gas prices in the fourth
quarter of 2016 in Qinghai province -- which contributes to
nearly half of its gross profit on an annual basis -- causing
COGG's dollar margin to shrink during the period. While COGG's
dollar margin has recovered since June, its overall operating
cash flow is weaker than our forecast due to higher distribution
volumes in the winter months."

That said, recent ongoing natural gas price reforms in China
should increase regulatory certainty. In early June 2017, China's
central government proposed a regulatory change for urban gas
distributors.

Under the proposed new framework, distribution tariffs (excluding
connection fees and retail tariffs) are capped based on a maximum
returns on investment at 7%; the central government also
specifies the scope of allowed investments. The central
government currently does not plan to include connection fees in
the calculation for regulated returns on investment, and such
fees account for a significant portion of COGG's EBITDA. Against
this, however, the government is also proposing to reduce
excessive related service fees.

Provincial governments have a year to finalize implementation
details based on the central government's guidelines. As such,
visibility on the final gas reform by local governments will be
limited until the June 2018 deadline. Adverse changes in return-
on-investments schemes could have a markedly strong negative
impact on financial performance. S&P said, "However, we believe
these gas market related policies will help improve the
visibility and transparency of the regulatory framework under
which COGG  operates, especially in Qinghai province. In our
view, the new frameworks could reduce the volatility of margins
and ensure timely cost recovery.

"COGG had about Hong Kong dollar (HK$) 576 million of Hong Kong-
listed debt securities as of December 2016, which we have
included as surplus cash for our leverage calculation. We believe
such adjustments to surplus cash reflect COGG's relatively small
positions in each security, and the liquid nature of these
securities. We have applied a 25% discount to the fair value of
these securities, which we believe should provide sufficient
buffer for any movement in security prices due to market
conditions.

"The positive outlook reflects our expectation that COGG's
financial strength will gradually improve due to a growing
domestic gas distribution business, a dollar-margin recovery in
2017 and beyond, and stable capital expenditure over the next 12-
18 months. We expect the company's FFO-to-debt ratio to improve
gradually to 23%-25% over the same period.

"We could raise the rating if we see improved visibility on
COGG's ability to pass through its costs in a timely manner and
sustain this position, such that its FFO-to-debt ratio improves
and approaches 25% on a sustainable basis. We may also raise the
ratings if the company improves its business risk profile through
further diversification into more favorable areas within China to
improve the visibility of its operating cash flows.

"We could lower the rating if COGG's ratio of FFO to debt
approaches 15% without the prospect of recovery. This may be a
result of weaker-than-expected operating cash flows caused by
further delays in the pass-through of costs. In addition, large
acquisitions, such as additional upstream assets, may pressure
the ratings on the company."


CIFI HOLDINGS: Proposed Share Issues No Impact on Moody's Ba3 CFR
-----------------------------------------------------------------
Moody's Investors Service said that CIFI Holdings (Group) Co.
Ltd.'s (Ba3 positive) proposed share issues, if completed, are
credit positive, but will have no immediate impact on its Ba3
corporate family rating and B1 senior unsecured rating or on the
positive ratings outlook.

On July 27 and 28, 2017, CIFI announced that it had entered into
a subscription agreement and a top-up subscription with Ping An
Life Insurance Company of China, Ltd. (financial strength A2
stable) for the issuance of new shares, for aggregate gross
proceeds of around HKD2.4 billion.

Upon completion of the two subscriptions, Ping An, including its
existing stake in CIFI, will hold an approximate 9.94% stake in
the enlarged share capital. Ping An will also be entitled to
appoint a non-executive director to the board of CIFI.

The share subscription and top-up subscription are subject to a
number of conditions, and are expected to be completed by 10
August.

CIFI plans to use the proceeds from the subscription and the top-
up subscription for the development of its projects and as
general working capital.

"The proposed share issues are credit positive for CIFI because
they will fund the company's growing property development
business and slow its debt growth," says Stephanie Lau, a Moody's
Vice President and Senior Analyst.

CIFI's revenue growth will likely be strong over the next 12-18
months, supported by robust property contracted sales. Its
contracted sales increased by 71% year-on-year to RMB47 billion
in 1H 2017, after growing 75% year-on-year to RMB53 billion in
2016.

Strong revenue growth and new equity funding, if raised, will
help the company improve its debt leverage. Moody's expects
CIFI's debt leverage - as measured by revenue/adjusted debt -
will improve to around 80%-90% over the next 12-18 months from
67% in 2016. Such a level positions the company at the upper end
of the Ba3 rating category.

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

CIFI Holdings (Group) Co. Ltd. was incorporated in the Cayman
Islands in May 2011 and listed on the Hong Kong Stock Exchange in
November 2012.

CIFI develops residential and commercial properties mainly in the
Yangtze River Delta. It has also expanded to the Pan Bohai Rim
and the Central Western Region. At end-2016, it maintained a
presence in 14 key cities, with a total and attributable land
bank of 17.5 million and 10.5 million square meters respectively.
It also had 62 projects under development.


FUTURE LAND: Fitch Publishes BB- Long-Term IDR; Outlook Positive
----------------------------------------------------------------
Fitch Ratings has published Future Land Holdings Co., Ltd.'s
(FLH) Long-Term Foreign-Currency Issuer Default Rating (IDR) at
'BB-' with a Positive Outlook. Fitch has also published FLH's
senior unsecured rating at 'BB-'.

Fitch has also assigned the proposed US dollar senior notes to be
issued by FLH's indirect wholly owned subsidiary, New Metro
Global Limited, an expected rating of 'BB-(EXP)'. The notes,
which are unconditionally and irrevocably guaranteed by FLH, are
rated at the same level as FLH's senior unsecured rating because
they constitute direct and senior unsecured obligations of the
company. The final rating of the notes is subject to the receipt
of final documentation conforming to information already
received. FLH says it intends to use the net proceeds from the
note issue for refinancing existing debt.

FLH is a subsidiary of Future Land Development Holdings Limited
(FLDH, BB-/Positive). Fitch uses a consolidated approach to rate
FLH, based on Fitch Parent and Subsidiary Rating Linkage
criteria. The strong strategic and operational ties between them
are reflected by FLH representing FLDH's entire exposure to the
China homebuilding business.

The Positive Outlook reflects Fitch's view that the group's focus
on the prosperous Yangtze River Delta region continues to support
its scale, which is comparable to that of 'BB' peers. Fitch
expects FLH's margin and leverage, which are not yet comparable
to those of 'BB' rated peers, to improve in 2017 as its sales are
likely to rise faster than its land acquisitions. The growth in
FLH's recurring income, with the ratio of recurring income to
interest expense reaching 0.2x in 2016, also supports its rating.

KEY RATING DRIVERS

Focus on Yangtze River Delta: The group's strategy to focus
resources on the Yangtze River Delta, a wealthy region in eastern
China, and around Shanghai, helped to drive strong sales
turnover, as measured by contracted sales/gross debt, and its
expansion in scale. Sales turnover was 1.7x in 2016 and averaged
1.6x annually since 2012, demonstrating the group's ability to
rapidly generate sales from new land acquisitions. Its fast-churn
strategy enabled it to tap the strong demand in the Yangtze River
Delta to achieve higher contracted sales growth than its peers.

The group recorded exceptionally strong presales in 2016, driven
by better sell-through rates on projects located in Tier 3 and 4
cities, as well as a higher average selling price (ASP) in the
Yangtze River Delta, which accounted for about 81% of contracted
sales. Consolidated gross floor area sold in 2016 increased 45%
yoy to 4.7 million square metres (sq m) and the ASP increased 13%
yoy to CNY10,121/sq m. Fitch expects the group to maintain annual
consolidated contracted sales of CNY60 billion-80 billion in
2017-2018.

Rising Recurring Income: Fitch estimates the group's ratio of
recurring EBITDA to interest expense will improve over the next
three years to 0.3x-0.4x as it expands its shopping mall
portfolio. The group plans to open more than 10 shopping malls in
2017, mainly in Tier 2 cities. The increasing recurring income
from the malls will help to offset volatility in income from its
property development business.

Improving Land Bank Quality: The group had attributable land bank
of 20 million sq m at end-2016, sufficient for three to four
years of development activity. The group increased the share of
sites in Tier 1 and 2 cities in its land bank to 69% at end-2016
from 61% at end-2015. It expects to diversify its land bank by
reducing the proportion of land in the Yangtze River Delta to
around 65%-70% and expand into the Pearl River Delta region in
southern China, central and western China as well as the Bohai
Economic Rim in northern China.

Potential Margin Expansion: EBITDA margin improved slightly to
17.6% in 2016 from 16.6% in 2015. Land premium costs for its land
bank averaged CNY2,627/sq m, which is reasonable compared with
the consolidated ASP of contracted sales of CNY10,121/sq m in
2016. Fitch expects the group's margin to improve gradually to
around 20% in the next two years as ASP for contracted sales
increase and the company's scale expands. The group's EBITDA
margin is low relative to its 'BB' category peers, as its rapid
turnover sacrifices profitability for faster cash returns on its
investment.

Leverage May Pressure Rating: The group's leverage rose to 45% at
end-2016 from 33% at end-2015 following land acquisitions,
particularly in 2H16. Its full-year attributable land premiums
reached CNY47 billion, representing 72% of total presales of
CNY65 billion (including presales from joint ventures). The group
has been sourcing JV partners to share the costs of the more
expensive sites it bought in Shanghai, Nanjing and Suzhou.

Fitch expects the group to reduce leverage in 2017 by chalking up
higher contracted sales and keeping the land-acquisition budget
at the 2016 level. Aggressive land acquisitions with land
premiums relative to contracted sales at a level similar to that
in 2016 will mean that the group's leverage will stay above 40%,
which will exceed the level at which Fitch would consider
positive rating action.

DERIVATION SUMMARY

Fitch uses a consolidated approach to rate FLH, based on Fitch
Parent and Subsidiary Rating Linkage criteria. FLH is 67.1% owned
by FLDH. FLH makes up FLDH's entire exposure to the China
homebuilding business, demonstrating the two companies' strong
strategic and operational ties. FLDH, meanwhile, has raised
offshore capital to fund the group's business expansion. The two
entities share the same management, including their chairman.

The group's ratings are supported by its focus in the Yangtze
River Delta region and the rapid expansion in its scale to a
level comparable to 'BB' rated peers, while maintaining similar
financial profiles. The group's recent aggressive land
acquisitions have increased leverage, but this may be mitigated
by its fast sales churn rate that will allow the group to
deleverage.

The group has the largest scale among 'BB-' peers. Its contracted
sales scale is comparable to Guangzhou R&F Properties Co. Ltd.
(BB/Stable). However, the group's EBITDA margin is lower than
most 'BB' peers, but is likely to improve gradually given rising
contracted sales ASP. Sales churn of 1.8x is highest among 'BB'
peers. Its leverage of 45% is lower than Guangzhou R&F's, but
higher than CIFI Holdings (Group) Co. Ltd.'s (BB-/Positive).

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- contracted sales to grow 20%-26% in 2017-2019
- gross margins to improve to 20%-21% in 2017-2019
- total land premium represents 50%-60% of contracted sales in
   2017-2019
- FLDH maintains a controlling shareholding in FLH and the
   operational ties between FLDH and FLH do not weaken

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Contracted sales, excluding JVs, remain above CNY40 billion
- Contracted sales/total debt sustained above 1.5x
- Consolidated net debt/adjusted inventory sustained below 40%
- EBITDA margin sustained above 18%

(All the ratios mentioned above are based on parent FLDH's
consolidated financial data)

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Failure to maintain the positive guidelines will lead to the
   Outlook being revised to Stable from Positive.

LIQUIDITY

Sufficient Liquidity: Fitch expects the group to maintain
sufficient liquidity. At end-2016, the group had available cash
of CNY11.9 billion and unutilised credit facilities (uncommitted)
of CNY46.6 billion, which were sufficient to cover the repayment
of its short-term borrowing of CNY10.1 billion.

FULL LIST OF RATING ACTIONS

Future Land Holdings Co., Ltd.
Published Long-Term Foreign-Currency Issuer Default Rating at
'BB-'; Outlook Positive
Published senior unsecured rating at 'BB-'
New Metro Global Limited
Assigned proposed USD senior notes at 'BB-(EXP)'


FUTURE LAND: Moody's Assigns Ba3 CFR; Outlook Positive
------------------------------------------------------
Moody's Investors Service has assigned a Ba3 corporate family
rating to Future Land Holdings Co., Ltd.

At the same time Moody's has assigned a Ba3 backed senior
unsecured rating to the proposed notes issued by New Metro Global
Limited, and guaranteed by Future Land Holdings.

The ratings outlook is positive.

The proceeds of the notes will be used mainly to repay certain of
its existing debt.

RATINGS RATIONALE

"Future Land Holdings' Ba3 corporate family rating reflects its
status as the Mainland-listed holding company of Future Land
Development Holdings Limited, and its direct control over the
majority of the group's revenue, assets, cashflow and
operations," says Stephanie Lau, a Moody's Vice President and
Senior Analyst.

"The proposed notes will provide term funding for Future Land
Holdings to grow its business and improve its liquidity profile
and, if issued, will bring the company's credit metrics to levels
appropriate for its Ba3 corporate family rating and positive
rating outlook over the next 12-18 months," adds Lau, also the
Lead Analyst for Future Land Holdings.

Future Land Holdings -- a 67.1%-owned subsidiary of Future Land
Development Holdings Limited (Ba3 positive) -- generates 99% of
the group's consolidated revenue and held more than 97% of the
group's cash and assets as of end-2016. It also held 85% of the
group's reported debt in the same period.

Future Land Holdings' Ba3 corporate family rating reflects its
long and solid track record in Jiangsu Province. The rating also
considers its strong sales execution, ability to grow in scale,
and improving geographic diversification.

In addition, the Ba3 rating reflects its adequate liquidity
profile that is supported by a rapid asset turnover business
model.

The Ba3 rating also considers its growing non-development
recurring income, which will add some stability to its debt
service ability. Moody's expects such revenue to reach around
RMB900 million -- RMB1.0 billion this year, which will cover
around 40%-45% of its projected interest expense in 2017. Such a
level of coverage is high relative to other Ba-rated peers and is
positive for the company's ratings.

On the other hand, its Ba3 rating also factors in its
concentrated exposure to the regional economy of the Yangtze
River Delta, and the execution risks from its fast-paced
expansion. Such risks are partly mitigated by its joint ventures
(JVs), which help reduce its upfront capital needs and execution
risks.

Moody's expects that the company will control in its land
acquisitions such that its acquisition spending will stay at
around 40%-50% of its annual contracted sales.

The JVs also provide cash dividends that enable the company to
manage down its debt and maintain its strong credit metrics.

If the proposed notes are issued, Moody's expects that Future
Land Holdings' debt leverage - as measured by adjusted
revenue/debt - and adjusted EBIT/interest coverage will stay
around 100%-105% and 3.2x-3.5x over the next 12-18 months.

Future Land Holdings' liquidity position is adequate. Its cash
balance of RMB13.4 billion at end-2016 covered 1.58x of its
short-term debt.

The positive ratings outlook reflects Moody's expectation that
the company will manage its debt leverage prudently and will show
sound liquidity, while growing its operating scale and showing
greater geographic diversification.

The positive outlook also reflects Moody's expectation that the
company will continue to improve its profitability.

Future Land Holdings' ratings could be upgraded if the company
maintains its strong sales performance, growing scale, and
prudent financial management.

Specifically, upward rating pressure could emerge if: (1)
adjusted revenue/debt - including its share in joint ventures -
exceeds 100%; (2) EBIT interest coverage stays above 3.5x on a
sustained basis; and (3) cash to short-term debt registers more
than 1.5x.

The ratings outlook could return to stable if Future Land
Holdings' performance and credit metrics fall below Moody's
expectations, such that EBIT interest coverage - including the
company's share in joint ventures - falls below 3.0x; and/or
adjusted revenue/adjusted debt - including its share in joint
ventures - remains below 90%.

The Ba3 rating on the company's proposed notes could also be
affected if Moody's assessment of subordination risk on the
company's senior unsecured bond ratings changes as a result of
the proposed introduction in Moody's rating methodology of
specific guidance on structural subordination.

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

Founded in 1996, Future Land Holdings Co., Ltd engages primarily
in residential development. At end-2016, Future Land maintained a
presence in 33 cities in China, with an attributable land bank of
approximately 19.9 million square meters of gross floor area.


SPI ENERGY: Nasdaq Extends Listing Suspension Stay to August 10
---------------------------------------------------------------
SPI Energy Co., Ltd., announced that the Nasdaq Hearings Panel
granted the Company's request to extend the stay of the
suspension in trading of the Company's securities pending a
hearing on Aug. 10, 2017, and issuance of a final Panel decision.

As previously disclosed, on July 7, 2017, the Company appealed to
the Panel against the Nasdaq Staff's delisting determination
dated June 30, 2017, and the Panel has scheduled a hearing on
Aug. 10, 2017.  At the hearing, the Company must demonstrate its
ability to regain compliance with the particular deficiencies
cited by the Nasdaq Staff in its delisting determination, as well
as its ability to sustain long-term compliance with all
applicable maintenance criteria.

                       About SPI Energy Co.

SPI Energy Co., Ltd. -- http://investors.spisolar.com-- is a
global provider of photovoltaic (PV) solutions for business,
residential, government and utility customers and investors.  SPI
Energy focuses on the EPC/BT, storage and O2O PV market including
the development, financing, installation, operation and sale of
utility-scale and residential PV projects in China, Japan, Europe
and North America.  The Company operates an online energy e-
commerce and investment platform in China, as well as B2B e-
commerce platform offering a range of PV and storage products in
Australia.  The Company has its operating headquarters in Hong
Kong and maintains global operations in Asia, Europe, North
America and Australia.

SPI Energy reported a net loss of $185 million on $191 million of
net sales for the year ended Dec. 31, 2015, compared to a net
loss of $5.19 million on $91.6 million of net sales for the year
ended Dec. 31, 2014.

As of June 30, 2016, SPI Energy had $549.4 million in total
assets, $415.0 million in total liabilities and $134.4 million in
total stockholders' equity.

KPMG Huazhen LLP, in Shanghai, China, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2015, citing that SPI Energy Co., Ltd., and
its subsidiaries have suffered significant losses from operations
and have a negative working capital as of Dec. 31, 2015.  In
addition, the Group has substantial amounts of debts that will
become due for repayment in 2016.  The auditors said these
factors raise substantial doubt about the Group's ability to
continue as a going concern.


YUZHOU PROPERTIES: Fitch Affirms BB- LT IDR; Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Yuzhou Properties Company Limited's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'.
The Outlook on the IDR is Stable. Fitch has also affirmed
Yuzhou's senior unsecured rating and the ratings on its
outstanding US dollar bonds at 'BB-'.

The Chinese homebuilder's ratings are supported by its strong
contracted sales growth, regional diversification and favourable
margin compared with its peers. Yuzhou's active land acquisition
approach will support higher contracted sales in the medium term,
though it may drive leverage, defined by net debt to adjusted
inventory, up to around 40% by end-2017. Fitch believes leverage
of 40%-45% will be reasonable as the company's operating scale
will be larger. Fitch's assessment of Yuzhou's ratings will
depend on whether it can manage its contracted sales growth
without significantly impairing its leverage and margins.

KEY RATING DRIVERS

Land Purchases Underpin Expansion: Fitch believes Yuzhou's recent
land acquisitions will help strengthen its market position in the
West Strait Economic Zone and the Yangtze River Delta, improve
the company's inventory quality, and enter new higher-tier cities
like Hangzhou and Wuhan. Contracted sales in the West Strait
Economic Zone and the Yangtze River Delta accounted for 42% and
52% of total contracted sales in 2016, respectively. Fitch
expects the company's operating scale to continue increasing in
these two regions. Yuzhou's total contracted sales increased 67%
to CNY21.5 billion in 1H17.

Higher Leverage: Fitch expects Yuzhou's leverage to increase to
about 40% by the end of 2017 (end-2016: 37.5%), as Yuzhou may use
50%-60% of its annual presales proceeds to acquire land to
maintain growth in contracted sales beyond 2017. Fitch believes a
rise in leverage to about 40% by end-2017 would still be
reasonable because of the good quality of its recent land
purchases and the increase in contracted sales. Yuzhou's
attributable land acquisition cost of CNY16.9 billion was 73% of
its total contract sales in 2016, but some of the acquisition
cost will only be paid in 2017.

Margin Remains Robust: Yuzhou's land acquisitions in 1H17 were
made at higher prices than those in 2016, which narrow gross
profit margin in 2018 and beyond. Fitch expects Yuzhou's gross
profit margin to remain at 30%-35% and EBITDA margin at 25%-30%
(before capitalised interest , which are high relative to peers
rated in the 'BB' category. Most of the sites purchased in 2016
and 1H17 are in good locations in major cities in the Yangtze
River Delta and the West Strait Economic Zone, where the company
has a record of achieving increases in selling prices.

DERIVATION SUMMARY

Yuzhou's business profile and scale are trending towards those of
'BB' rated peers. A faster churn rate may be achieved with a
slightly lower margin. Yuzhou's recent expansion into the Yangtze
River Delta will increase its leverage, but Fitch believes a rise
to around 40% in the next 12 months will be reasonable as it has
acquired good quality sites and achieved a much larger operating
scale.

CIFI Holdings (Group) Co. Ltd. (BB-/Positive) is the closest peer
to Yuzhou as both of them are focussed on the Yangtze River
Delta, while Yuzhou is also strongly positioned in the West
Strait Economic Zone, and less exposed in the Bohai Rim. CIFI has
lower leverage and higher sales efficiency than Yuzhou, while its
EBITDA margin is lower than Yuzhou. As Yuzhou is striving to
balance its margin and sales efficiency, Fitch expects its margin
to trend down but sales efficiency to improve.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Consolidated contracted sales of CNY30 billion-50 billion a
   year in 2017-2020 (CNY23 billion in 2016)
- Contracted average selling price to rise 30% in 2017 and 10% a
   year in 2018-2020 (27% in 2016)
- Gross profit margin (before capitalised interest) of 30%-35%
   in 2017-2020 (37% in 2016)
- Land acquisition costs to account for 50%-60% of total
   contract sales each year in 2017-2020 (73% in 2016)

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Attributable contracted sales sustained above CNY30 billion
   (2016: CNY20 billion)
- Net debt/adjusted inventory sustained below 40% (2016: 39%)
- Contracted sales / gross debt sustained above 1.2x (2016:
   0.8x)
- EBITDA margin (before capitalised interest) sustained above
   25% (2016: 35%)

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Net debt/adjusted inventory sustained above 45%
- Contracted sales/gross debt sustained below 1.0x
- EBITDA margin (before capitalised interest) sustained
   below 20%

LIQUIDITY

Healthy Liquidity: Yuzhou's current liquidity position is
healthy. The company had unrestricted cash of CNY16 billion at
end-2016, which is ample to meet its short-term debt of CNY8
billion and support its planned expansion. The company has
diversified funding channels to ensure the sustainability of its
liquidity. Besides bank loans, it has established channels for
both onshore and offshore bond issuance, as well as equity
placement.

The company in 2016 redeemed early its USD300 million 8.75%
senior notes and HKD1.5 billion 10% private corporate bond.

FULL LIST OF RATING ACTIONS

Yuzhou Properties Company Limited
-- Long-Term Foreign-Currency IDR affirmed at 'BB-'; Outlook
    Stable;
-- Senior unsecured rating affirmed at 'BB-';
-- USD250 million 6% senior notes due 2023 affirmed at 'BB-';
-- USD350 million 6% senior notes due 2022 affirmed at 'BB-';
-- USD250 million 9% senior notes due 2019 affirmed at 'BB-'.



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


NOBLE GROUP: Pays Coupon on 2020 Bond, Market Sources Say
---------------------------------------------------------
Reuters reports that Noble Group has paid the coupon on its 2020
bond, market sources said on Aug. 1, helping to reduce worries
about the company's immediate ability to service its debt.

Reuters relates that the payment of about US$40 million to
bondholders comes after Noble last week announced a dramatic
overhaul and flagged a quarterly loss of as much as US$1.8
billion.

It also sold its US gas and power business for US$248 million,
started a process to sell its oils liquids unit and announced
plans for up to US$1 billion of disposals over the next two
years, Reuters relates.

Noble's US$1.2 billion bonds due 2020 had a 6.75 percent coupon
due on July 29. Last month, Noble deferred a payment on its
perpetual bonds, triggering a sell-off, Reuters notes.

Its next scheduled bond payment is US$7 million for a coupon on
its 2018 bonds in September, says the report. After that it faces
the expiry of a key US$2 billion credit facility in October - a
fresh deadline following a four-month extension with creditors,
according to Reuters.

For now, the market is expected to focus on Noble's quarterly
results, due this month, for details on its plans to sell assets
and cut its debt of more than US$3 billion.

"The sale of its oil liquids and gas and power assets would raise
cash and reduce debt, but the proceeds may not be sufficient to
mitigate the underlying losses and less favorable access to
credit lines, in our view," Reuters quotes S&P Global Ratings as
sayomg in a statement last week.

Reuters relates that sources close to the company and investors
have said the business remains hemmed in by financing constraints
- a major issue for trading houses - and has lost many traders,
analysts and managers over the past months, despite cash offers
to keep key staff until December.

Noble was thrust into the spotlight in February 2015 when
previously obscure Iceberg Research accused it of overstating its
assets by billions of dollars, which Noble rejected, Reuters
recalls. In 2015, consultants PricewaterhouseCoopers found Noble
had complied with international accounting rules.

Hong Kong-based Noble Group Limited (SGX:N21) --
http://www.thisisnoble.com/-- engages in supply of agricultural,
industrial and energy products. The Company supplies agricultural
and energy products, metals, minerals and ores. Agriculture
products include grains, oilseeds and sugar to palm oil, coffee,
and cocoa. Energy business includes coal, gas and liquid energy
products. In metals, minerals and ores (MMO), it supplies iron
ore, aluminum, special ores and alloys. The Company operates
nearly in 140 locations. It supplies growth demand markets in
Asia and Middle East. Alcoa World Alumina and Chemicals is the
subsidiary of this company.

As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2017, S&P Global Ratings lowered its long-term corporate
credit rating on Noble Group Ltd. to 'CCC+' from 'B+'.  The
outlook is negative. At the same time, S&P lowered the long-term
issue rating on Noble's outstanding senior unsecured notes to
'CCC' from 'B'.  In addition, S&P lowered its long-term Greater
China regional scale rating on the company to 'cnCCC+' from
'cnBB-' and on the notes to 'cnCCC' from 'cnB+'.

S&P downgraded Noble because it believed the company's capital
structure is not sustainable.  This is due to continuing weak
cash flows and profitability, and Noble's access to funding will
have further weakened following its weak results for the three
months ending March 31, 2017.

The TCR-AP reported on June 27, 2017, that Fitch Ratings has
downgraded Noble Group Limited's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'CCC' from 'B-'. At the same time,
the agency has downgraded Noble's senior unsecured rating and the
ratings on all its outstanding senior unsecured notes to 'CCC'
from 'B-'. The Recovery Rating is 'RR4'. Fitch has removed these
ratings from Rating Watch Negative.


SUNSHINE OILSANDS: In Talks on Repayment of Notes Due Aug. 1
------------------------------------------------------------
The Board of Directors of Sunshine Oilsands Ltd. on July 28,
2017, announced the following:

Reference is made to the announcements of the Corporation dated
August 5, 2014, August 8, 2014 and February 5, 2016 (all Hong
Kong time) in relation to, among other things, the offering of
US$200 million principal amount of senior secured notes (the
"Notes").  Reference is also made to the announcements of the
Corporation dated August 1, 2016, August 12, 2016, August 17,
2016, August 29, 2016, September 1, 2016, September 12, 2016,
October 31, 2016, January 31, 2017 and March 21, 2017 (all Hong
Kong time) in relation to, among other things, the forbearance
agreements the Corporation has entered into with the holders of
the Notes (the "Noteholders").

According to the Agreement, the FRA and the NEA in respect of the
Notes, the Notes will be matured on August 1, 2017; the
Corporation is required to, amongst other matters, repay Notes
principal, and any previous outstanding payment commitments on
August 1, 2017.  As at the date of this announcement, the
Corporation is in negotiation with the Noteholders in relation to
the repayment.  The Corporation will provide further updates to
the negotiation as necessary.

                 About Sunshine Oilsands Ltd.

The Corporation is a Calgary based public corporation listed on
the Hong Kong Stock Exchange since March 1, 2012.  The
Corporation is focused on the development of its significant
holdings of oil sands leases in the Athabasca oil sands region.
The Corporation owns interests in approximately one million acres
of oil sands and petroleum and natural gas leases in the
Athabasca region.  The Corporation is currently focused on
executing milestone undertakings in the West Ells project area.
West Ells has an initial production target of 5,000 barrels per
day.



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


AGARWAL GENERAL: CARE Assigns 'B+' Rating to INR1.50cr Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Agarwal General Engineering Works Private Limited (AGPL), as:

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

   Short-term Bank
   Facilities             6.00       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of AGPL are primarily
constrained on account of its presence in the fragmented and
competitive nature of the industry and its financial risk profile
marked by fluctuating and thin profitability, moderate solvency
position and moderately stressed liquidity position. The ratings
are further constrained on account of susceptibility of margins
to volatile raw material prices. The ratings, however, derive
strength from the experienced management with established track
record of operations and strong clientele base with moderate
order book position. The ability of the company to improve its
financial risk profile with improvement in profitability margin
and liquidity position are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Fluctuating and thin profitability margins, moderate solvency
position and moderately stressed liquidity position
The profitability of AGPL stood thin marked by the PBILDT and PAT
margins of 4.75% and 0.98%, respectively, in FY17 (refers to the
period April 1 to March 31). The PBILDT margin of the company has
witnessed fluctuating trend in last three financial years ended
FY17 owing to volatile raw material prices and its presence in a
highly competitive industry where orders are tender driven.

The overall gearing including L/C backed creditors stood at 1.62
times as on March 31, 2017, improved from 3.43 times as on
March 31, 2016, owing to lower unsecured loans from promoters &
relatives. Furthermore, out of total unsecured loans from
promoters & relatives, INR1.25 crore considered as quasi equity
which are subordinated to bank borrowings. The debt service
coverage indicators stood weak with total debt to GCA stood at
14.55 times as on March 31, 2017, improved from 84.03 times as on
March 31, 2016, mainly due to lower total debt level coupled with
marginal increase in GCA level. Furthermore, the interest
coverage ratio stood moderate at 1.39 times in FY17, improved
from 1.08 times in FY16 due to lower interest expense offset to
an extent with lower PBILDT margin.

The business of the company is working capital intensive nature
marked by almost full utilization of its working capital bank
borrowings during last 12 months ended May 2017. However, the
cash flow from operating activities has improved from negative
cash flow of INR0.15 crore in FY16 to INR1.34 crore in FY17.

Susceptibility of profitability margins to volatile raw material
prices coupled with presence in a highly fragmented and
competitive industry
The major raw materials required for manufacturing of conductors
are electrolytic copper and aluminium, prices of which are highly
fluctuating in nature and move in tandem with global demand-
supply factors. Adverse changes in prices of the same would have
an impact on the profitability margins of the firm. To mitigate
its risk, AGPL stocks up raw material as and when it gets a
favorable rate.

AGPL operates in a highly fragmented market with the presence of
a large number of organized and unorganized players due to low
entry barriers. Also, the presence of large players with an
established marketing & distribution network leads to intense
competition in the industry. Additionally, on account of rapidly
changing dynamics of the end user industries (power distribution
& transmission and electrical products) as well as competition
from cheap Chinese imports, conductor manufacturers are required
to upgrade their facilities at regular intervals resulting in
regular capital commitment.

Key Rating Strengths
Experienced management with established track record of
operations AGPL was incorporated in 1979 and hence, has a track
record of more than three decades in the industry. The overall
activities of AGPL are managed by Mr. Nand Lal Bansal, Director,
who is Chartered Accountant by qualification and has more than
four decades of experience in the industry. He is assisted by his
son, Mr. Saurabh Bansal, who is MBA by qualification and has more
than 7 years of experience in the industry. Furthermore, due to
long-standing presence in the industry, the company has
established relations with its customers and suppliers. Further,
the top management is assisted by second-tier management who has
relevant experience in the industry.

Strong clientele base and moderate order book position
Being present in the industry since long period of time, it has
established relationship with State Electricity Boards (SEBs).
Due to established relationship with its customer, it gets
repeated orders from its clients and same is reflected through
continuous growth in scale of operations. The company has
witnessed continuous growth in the total operating income
(TOI) and grew at a compounded annual growth rate (CAGR) of
around 15.33% during last three financial years ended FY17. As
per provisional result of FY17, TOI of the company has increased
by 5.02% over FY16 and registered TOI of INR13.20 crore.

As on May 31, 2017, AGPL has an order book position of INR 14
crore with two projects in hand reflecting moderate order book
position. The on-going projects of the company are expected to be
completed by 10-12 months providing medium term revenue
visibility.

Jaipur-based (Rajasthan) Agarwal General Engineering Works
Private Limited (AGPL) was incorporated in 1979 by Mr. Nand Lal
Bansal along with his family members as a private limited
company. AGPL is engaged in the business of manufacturing of All
Aluminum Conductors (AAC) and Aluminum Conductor Steel Reinforced
(ACSR). The manufacturing unit of the company is located in
Vishwakarma Industrial Area, Jaipur with combined total installed
capacity of 1062 Metric Tonnes Per Annum (MTPA) as on March 31,
2017. The company participates in the tenders for supply of
conductors and has longstanding association with Madhya Pradesh
State Electricity Board (MPSEB), Power Grid Corporation of India
Limited (PGCIL), Punjab State Electricity Board (PSEB) and
Rajasthan State Electricity Board (RSEB).


AZAM RUBBER: CARE Lowers Rating on INR51.98cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Azam Rubber Products Limited (ARPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            51.98       CARE D Revised from
                                     CARE B+

   Short-term Bank
   Facilities            30.80       CARE D Revised from CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
ARPL takes into consideration the irregularities in debt
servicing attributable to stretched liquidity position of the
company. The company has reported operating loss as well as net
loss as per the provisional results for FY17 (refers to the
period April 1 to March 31) largely due to the fire incident at
its premises. However, the rating takes note of the experience of
ARPL's promoters who have financially supported the company with
capital infusion.

Going forward, the company's ability to improve its liquidity
position and report turnaround in its financial performance
would remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Irregularities in debt servicing: There have been instances of
overdrawls in cash credit facility availed by the company during
September 2016 to March 2017. The average working capital
utilization remained high at 109.36% during the trailing 12
months period ending April 2017 reflecting the stressed liquidity
position. The company reported losses in FY17 (provisional).

Decrease in operating income and reduction in margins: The
operating income of ARPL decreased by 26.06% y-o-y to INR147.94
crore in FY17 (provisional) (PY: INR200.08 crore) on account of
lower sales realization due to sales of low end products which
were damaged in fire and sold at discounts. The company suffered
losses at the operating level due to the fire at the company
premises because of a short-circuit pertaining to voltage
fluctuations which resulted in burning of finished stock and raw
materials. As a result, the PBILDT margin turned negative to -
2.98% in FY17 (PY: 6.98%). Accordingly, the PAT margin also
deteriorated to -11.10% in FY17 (provisional) (PY: 0.30%).

Weak financial risk profile and elongated working capital cycle:
The capital structure of the company remains leveraged as
reflected by a high overall gearing ratio of 2.77x as on March
31, 2017 (prov.) (PY: 1.63x) because of new term loans availed by
the company for shoring up the working capital and decrease in
net worth due to losses. The company's operating cycle also
deteriorated to 195 days as on March 31, 2017 (provisional) (PY:
136 days) on account of increase in collection period and
inventory holding period to 123 days (PY: 89 days) and 119 days
(PY: 110 days), respectively.

Susceptible of margins to volatility in raw material prices: The
major raw materials of ARPL are natural rubber, Ethylene Vinyl
Acetate (EVA) and Polyvinyl Chloride (PVC) whose prices fluctuate
with the fluctuations in crude oil prices. As the raw material
cost comprised 74.99% in FY17 (provisional) (PY: 85.78%) of the
total cost of sales incurred by the company, the volatility in
price of raw materials impacts the profitability margins of the
company.

Competition from organized and unorganized players: Footwear
industry is highly competitive in nature due to low entry
barriers on account of low capital investment required to set up
a new facility. Also, operations are labor intensive resulting in
presence of a large number of unorganized players. Driven by
larger penetration into tier II, III cities and growing rural
market, various footwear brands are foraying into Indian market
which restricts the profitability margins of industry players
like ARPL.

Key Rating Strengths

Experienced promoters with continued financial support: ARPL is a
closely-held family-owned business which was incorporated in 1994
by Mohd. Azam Khan who has an experience of over three decades in
the field of rubber footwear and related products. His long
industry experience has led to established relationships with the
customers and suppliers. The company has also received a
continued support in the form of capital infusion of INR0.44
crore in FY16 (refers to the period April 1 to March 31), INR6.93
crore in FY15 and INR2.85 crore in FY14.

Diverse product portfolio: The company is primarily present in
low/ medium value footwear with a diversified product range which
includes hawai, fancy and leather slippers, sandals, sports and
canvas shoes and other varieties of footwear. The diversified
product portfolio mitigates the risk of decline in demand of a
particular type of the product manufactured by the company.

Incorporated in 1994, ARPL is promoted by Mr. Mohd Azam Khan. The
company is engaged in manufacturing of footwear including hawai
slippers, sandals and sports shoes among others and has two
manufacturing units located at GIDA (Gorukhpur Industrial
Development Authority), Gorakhpur, Uttar Pradesh with a total
installed capacity of 5.52 crore pairs as on March 31, 2017. In
Unit 1, Hawaii footwear is produced and in Unit 2, Ethylene Vinyl
Acetate/Polyvinyl chloride (EVA/PVC) footwear is produced. The
main raw material used by the company is rubber, EVA and PVC
which it procures domestically. The products of the company are
marketed in U.P, Bihar, Jharkhand, Chhattisgarh and Madhya
Pradesh under brand name 'ARP' through a network of around 250
dealers.

During FY17 (provisional), the company has reported total
operating income of INR147.94 crore with a net loss of INR16.42
crore.


BHARAT RICE: CRISIL Reaffirms 'B' Rating on INR7MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility
of Bharat Rice Mills (BRM) at 'CRISIL B/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             7        CRISIL B/Stable (Reaffirmed)

The rating continues to reflect a modest scale of operations and
exposure to intense competition. Revenue, estimated at INR40
crore in fiscal 2017, is expected to grow at 5-10% per fiscal
over the medium term backed by the extensive experience of the
promoters in the rice industry.

Liquidity is supported by minimal debt-funded capital expenditure
(capex) plans for the medium term. However, working capital
requirement is large, as reflected in estimated gross current
assets (GCAs) of 160 days as on March 31, 2017.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations:
The presence of larger players in the industry restricts the
firm's ability to scale up operations. Furthermore, there is a
geographical concentration in revenue, thus constraining the ramp
up in scale of operations.

* Working capital-intensive operations: GCAs were about 160 days,
due to high inventory of 140 days, as on March 31, 2017. This led
to almost full bank limit utilisation.  Working capital
requirement is likely to remain high over the medium term.

* Below-average financial risk profile
The total outside liabilities to tangible networth (TOLTNW) ratio
and networth were at 7 times and INR2.25 crore, respectively, as
on March 31, 2017. The TOLTNW ratio is expected to remain high at
6-7 times owing to significant dependence on short-term
borrowings over medium term despite minimal debt-funded capex
plans. Debt protection metrics are estimated to be weak, with
interest coverage and net cash accrual to total debt ratios at
around 1.20 times and 0.02 time, respectively, for fiscal 2017.
The ratios are expected at 1.20-1.25 times and 0.02 time,
respectively, over medium term.

Strengths

* Extensive industry experience of the partners:
Around 15 years of experience has enabled the partners to
establish strong procurement and distribution networks in Delhi
and Karnal, Haryana. Revenue grew at a compound annual rate of
about 19% over the three fiscals through 2017.

Outlook: Stable

CRISIL believes BRM will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised
to 'Positive' if significant improvement in scale of operations
and profitability leads to a stronger financial risk profile. The
outlook may be revised to 'Negative' if deterioration in working
capital management, or any large, debt-funded capex weakens the
financial risk profile.

BRM, set up in 1997, is a partnership firm of Mr Sandeep Kumar
and Mr. Rakesh Kumar. The firm mills and processes basmati and
non-basmati rice and its by-products for sale in India and
abroad.

Net profit is estimated at INR0.14 crore on net sales of INR40
crore for fiscal 2017; net profit was INR0.13 crore on net sales
of INR28.80 crore in fiscal 2016.


BS LIMITED: CARE Lowers Rating on INR746.58cr Loan to 'D'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
BS Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities           669.18       CARE D; ISSUER NOT
                                     COOPERATING ISSUER NOT
                                     COOPERATING; Revised from
                                     CARE B on the basis of best
                                     available information

   Short-term Bank     404.37       CARE D; ISSUER NOT
   Facilities                       COOPERATING; Revised from
                                     CARE A4 on the basis of best
                                     available information

   Long-term/Short      746.58       CARE D/CARE D; ISSUER NOT
   Term Bank                         COOPERATING; Revised from
   Facilities                        CARE B/CARE A4 on the basis
                                     of best available
                                     information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from BS Limited to monitor the
rating(s) vide e-mail communications/letters dated June 20, 2016,
July 14, 2016, July 19, 2016, August 30, 2016, September 28,
2016, July 7, 2017 and numerous phone calls. However, despite our
repeated requests, the company has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which; however, in CARE's opinion
is not sufficient to arrive at a fair rating. The ratings on BS
Ltd.'s bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING.

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

The ratings have been revised on account of delays with respect
to debt servicing.
Detailed description of the key rating drivers

Key Rating Weaknesses
Delays with respect to debt servicing on account of significant
decline in total operating income with cash losses for FY17: The
company has been facing stretched liquidity position on account
of significant decline in the total operating income with cash
losses during FY17 (refers to the period April 1 to March 31).
This has led to delays in debt servicing, instances of
overdrawals with respect to the cash credit account and also
instances of LC devolvement.

B S Limited (BSL) was incorporated in January 2004 as a private
limited company under the name of BS Steels and Minerals Private
Limited. On March 31, 2004, the company took over BS Steels, a
proprietary concern (promoted by the same group) engaged in
trading of iron, steel and related products. Subsequently, BSL
entered into tower manufacturing (fabrication and galvanizing).
In FY08, BSL diversified in to engaging in civil works, tower
erection and maintenance of cell.


DEEPAM SILK: CRISIL Raises Rating on INR9MM Cash Loan to BB
-----------------------------------------------------------
CRISIL has upgraded its rating to 'CRISIL BB-/Stable' from
'CRISIL B+/Stable' ratings on the long-term bank facilities of
Deepam Silk Retail Private Limited (DSRPL). The rating upgrade
reflects the improvement in the scale of operations as seen in
revenues recorded of around INR57 crores in 2016-17 as compared
to INR51 crores in 2015-16. The liquidity profile and the
business risk profile of the company remained stable.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit               9        CRISIL BB-/Stable (Upgraded
                                      from 'CRISIL B+/Stable')

The rating upgrade also reflects the DSRPL's weak financial risk
profile marked by an aggressive capital structure and a modest
interest coverage ratio. The rating also reflects the fragmented
nature of clothing retail industry which restricts its pricing
flexibility. These weaknesses are partially offset by long track
record of the promoters in the saree trading business.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile
The company has a weak financial risk profile marked an
aggressive capital structure and modest interest coverage ratio.
The company has a small net worth of INR3.02 crores as on March
31, 2016. The net worth has been low on account of low accretion
to reserves driven by low operating margins of 5-6 per cent
historically. The operating margins has been low in the past
mainly on account of higher contribution from the relatively low
profitable wholesale trading business. Going forward the net
worth is gradually expected to improve but will remain at modest
levels on the back of accretion to reserves.

The company has a high total outside liabilities to tangible net
worth (TOL/TNW) ratio marked at 7.75 times as on March 31, 2016
on account of high reliance on external debt due to the working
capital intensive nature of operations. The TOL/TNW ratio is
expected to remain at similar levels on account of continued high
reliance on external debt and low accretion to reserves.

Low operating margin and high reliance on external debt on
account of its working capital intensive operations have resulted
in modest interest coverage of around 1.85 times for 2015-16. The
interest coverage ratio is expected to improve to 2-2.2 times
over the medium term on account of reducing reliance on external
debt to meet its working capital requirements. The company has
negligible debtor risk due to cash payments by customers and low
inventory risk due to low price variations in inventory.

CRISIL expects DSRPL's financial profile will remain constrained
by its aggressive capital structure over the medium term.

* Fragmented nature of industry restricts pricing flexibility
The retail garments industry in India is fragmented, with large
number of unorganised players. The readymade garment and textile
industry in India is characterized by the presence of a large
number of players and highly fragmented market. Hence, individual
players have limited pricing power and usually are price takers
in the market. Additionally, DSRPL, being engaged in trading also
constrains its operating margins, which have remained in the
range of 5-5.5 per cent historically.

CRISIL expects the company's operating margins to remain
constrained in the medium term, due to the fragmented and
competitive nature of industry.

Strengths

* Long track record of the promoters in the saree trading
business
The promoter of DSRPL, Mr M. Chandrasekhar and Mr M. Vijaysekhar
has been in the business of retailing sarees for over 45 years.
DSRPL, based in Bangalore, was started by Mr M. Chandrasekhar in
1978 as a proprietary concern. It was reconstituted as a private
limited company in 2008. The promoters are personally involved in
the day-to-day operations of all aspects of business, thus fully
leveraging their experience in the business.  Over the years, the
promoters have been able to scale up its operations from a
standalone small store in Bangalore to a 40,000 sq. ft. 4 storey
store in the prime area of Bangalore and another 5000 sq. ft.
store in Bangalore itself. Backed by the extensive experience of
the promoters the company has been able to achieve stable
revenues over the years, despite intense competition from new
retailers.

CRISIL believes that the group will continue to benefit over the
medium term from the experience of its promoters in the retailing
business and will be able to maintain its business profile.

Outlook: Stable

CRISIL believes that DSRPL will be able to maintain a stable
business risk profile on account of its promoter's experience in
the industry. The outlook may be revised to 'Positive' if the
company's financial risk profile improves significantly through
equity infusion or improvement in accretion to reserves.
Conversely, the outlook may be revised to 'Negative' if the
company generates less than expected accretion to reserves, or if
the company undertakes a larger than expected debt funded capex
over the medium term thus affecting its financial or liquidity
profiles.

DSRPL, based in Bangalore, was started by Mr M. Chandrasekhar and
Mr M. Vijaysekhar in 1978 as a proprietary concern. It was
reconstituted as a private limited company in 2008. The company
is engaged in retailing of sarees, readymade garments and silk
fabrics. It has a presence of 45 years in Bangalore and operates
two outlets.

During 2015-16 (refers to financial year April 1 to March 31),
DSRPL reported operating income of INR51.76 crore with Profit
after Tax (PAT) of INR0.61 crore as compared to operating income
of INR47.96 crores with PAT of INR0.7 crores in 2014-15.


DHARANI SUGARS: CARE Lowers Rating on INR316.53cr LT Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Dharani Sugars and Chemicals Limited (DSCL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities
   (Term Debt)          316.53       CARE D Revised from
                                     CARE B-; Stable

   Long-term Bank
   Facilities (Fund
   Based and Non
   Fund based)          257.18       CARE C; Stable Revised from
                                     CARE B-; Stable

   Short-term Bank
   Facilities            27.11       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the long-term bank
facilities of Dharani Sugars and Chemicals Limited (DSCL) takes
into account instance of delays in servicing term debt
obligations due to tight liquidity position on account of
continuation of losses incurred in FY17 (refers to the period
April 1 to March 31). The ratings, also take into account the
promoters' experience of more than two decades in the sugar
industry and diversified revenue stream on account of integrated
nature of operations.

Detailed description of the key rating drivers

Key Rating Weaknesses
Continuation of losses incurred in FY17 resulting in instance of
delays in debt servicing
During FY17, total income registered by the company grew by
around 47% (on comparable basis) at INR537 crore, however, the
company reported net loss of INR17 crore in FY17 as against a
loss of INR12 crore in FY16 mainly due to high interest expense
on account of leveraged capital structure. On account of
relatively lower cash accruals vis-Ö-vis repayment obligations,
there have been instances of delays in servicing of term loans.

Concentration of plants in the same region:
Presence of all the sugar mills in the same region (TN) exposes
the company to higher agro-climatic risk as there is no
geographical diversification in terms of command area of these
mills.

Cyclical and regulated nature of sugar industry
Sugar industry is highly regulated industry. Cyclical nature of
sugar industry and volatility in prices results in significant
impact on operating performance of sugar companies. Sugar prices
have remained under pressure both domestically and globally due
to excess production during the last few seasons ended SS 14-15.
However, prices started improving since H2FY16 onwards. The
Domestic sugar production is estimated to be lower compared to
the production same period previous year thereby expected
resultant lower closing stock in the country. The expected
decline in production and sugar stocks has resulted in an
improvement in domestic sugar realizations. However, the
susceptibility of the revenues and profitability to the demand-
supply dynamics remains.

Key Rating Strengths

Experienced promoters:
DSCL was promoted by Mr. Palani G Periyasamy. He has obtained his
Masters in Economics from University of Madras in 1962, Masters
in Economics from University of Pittsburgh, USA, in 1969 and
Doctorate in Advanced Micro/Macro Economics from the University
of Pittsburgh, USA in 1972. The promoters have more than two
decades of experience in the sugar industry. He has also
experience in hotel industry and education sector.

Integrated operations:
Out of the three sugar mills, Sankarapuram and Dharani nagar
units are fully integrated facility with distillery and co-gen
units. Integrated nature of operations, enable to company to
insulate it profits to a certain extent from vagaries of sugar
price movement. The company has aggregate capacity of 10,000 TCD,
37 MW co-gen plant and 160 KLPD of distillery capacity.

DSCL, part of the PGP group of companies based in Tamil Nadu was
established in the year 1987 by Dr Palani G Periyasamy and his
NRI Associates. The company is engaged in the manufacture of
sugar, industrial alcohol and cogeneration of power. DSCL has
three sugar mills located across Tamil Nadu. These units are
located in Dharani Nagar (Tirunelveli Dist.), Sankarapuram
(Villupuram Dist.) and Polur (Thiruvannamalai Dist.). Aggregate
capacity of the company as on March 31, 2016 was 10,000 tonnes of
cane crushed per day (TCD), 160 Kilo Liter per day (KLPD)
Distillery and 37 MW co-generation plant.


ELECTROSTEEL STEELS: NCLT Admits SBI's Insolvency Petition
----------------------------------------------------------
Business Standard reports that the Kolkata bench of the National
Company Law Tribunal (NCLT) has admitted the State Bank of
India's (SBI's) insolvency petition against Electrosteel Steels.

A PwC partner has been appointed as the interim resolution
professional (IRP), the report discloses. "The court order is
expected to be served by Monday [July 24]. Once it is served, the
board will be suspended," the report quotes Electrosteel Steels
Chief Financial Officer Ashutosh Agarwal as saying. However,
Agarwal said that the IRP will be working with the existing
management in running the company.

After the IRP is appointed, within 30 days, he or she will have
to make financial calls and the committee of creditors will have
to be constituted, the report says. In the next 150 days, a
resolution plan will have to be worked out. In the meantime, the
resolution professional will have to advertise and invite bids
for Electrosteel Steels. The best proposal will then selected and
a resolution plan will be arrived at.

Business Standard relates that the resolution plan will have to
be approved by at least 75 per cent of the creditors by value
before it goes to the NCLT. If there is no agreement in 180 days,
then under special conditions, an additional 90 days will be
granted.

A resolution plan for Electrosteel Steels was already being
discussed with lenders before SBI took the company to the NCLT
under the Insolvency and Bankruptcy Code (IBC) under the Reserve
Bank of India (RBI) directive, the report states.

According to the resolution plan under discussion, Abhishek
Dalmia of the Renaissance Group was to bring in fresh equity into
the company, besides an infusion of another INR1,500 crore as
loan from Edelweiss. However, that proposal would now become null
and void as the company would have to go through a bidding
process, the report relays.

Electrosteel's debt in FY16 stood at INR10,274 crore and lenders
had first opted for the strategic debt restructuring (SDR) path
to resolve the issue, Business Standard discloses. The SDR was
introduced by the RBI to tackle the issue of burgeoning debt by
allowing banks to acquire control of a defaulting company by
converting loans into equity. Following this, the banks were
supposed to bring in new promoters and upgrade their sticky
assets to standard ones. Electrosteel was the first case where
lenders invoked the SDR mechanism, Business Standard notes.

In the bidding that followed, First International Group had
emerged as the shortlisted bidder but the deal fell through,
leading to a series of negotiations with other companies, says s
Business Standard. Eventually, the proposal forwarded by Dalmia
and Edelweiss was being discussed when an internal committee, set
up by the central bank, sought IBC reference of all its accounts
that had fund and non-fund based outstanding amounts greater than
INR5,000 crore with 60% or more classified as non-performing by
banks as of March 31, 2016.

Electrosteel Steels Limited is an India-based company, which is
engaged in basic iron and steel business. The Company is engaged
in selling thermo mechanically treated (TMT) bars, billets,
ductile iron (DI) pipes, pig iron and wire rod. The Company is
engaged in setting up a 2.51 million ton per annum (MTPA)
capacity Greenfield Integrated Steel and DI Pipes Plant in the
district of Bokaro, Jharkhand. It produces TMT bars in Fe500,
Fe500D and Fe500D corrosion resistance steel (CRS) variants. It
manufactures DI pipes in sizes ranging from 100 millimeters (mm)
to 1,200 mm. Its billets offer applications, such as general
engineering, structural, rerolling and high tensile applications.
Its wire rods have applications in engineering, construction,
power and automobile sectors. It consists of a sinter plant,
pellet plant, coke oven, blast furnace, basic oxygen furnace,
billet caster, wire rod mill, bar mill and power plant.


GEETA REFINERY: CRISIL Lowers Rating on INR20MM Cash Loan to B
--------------------------------------------------------------
CRISIL has been consistently following up with Geeta Refinery
Private Limited (GRPL) for obtaining information through letters
and emails dated January 27, 2017 and February 22, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.

                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Cash Credit              20       CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL BB+/Stable')

   Proposed Letter          15       CRISIL A4 (Issuer Not
   of Credit                         Cooperating ;Downgraded from
                                     'CRISIL A4+')

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

Detailed Rationale

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

GRPL was incorporated in 1998 by the Mantri family of Jalna. The
company is engaged in refining of edible oil, primarily soya and
cotton oils. The company has its manufacturing unit in Jalna
(Maharashtra). The day to day operations of GRPL are managed by
Mr. Atul Mantri.


GO-GREEN CONSTRUCTION: CRISIL Cuts Rating on INR12.68MM Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Go-Green Construction Solutions Private Limited (GGCSPL) to
'CRISIL D' from 'CRISIL B+/Stable'.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              1.3       CRISIL D (Downgraded from
                                      'CRISIL B+/Stable')

   Proposed Long Term       1.02      CRISIL D (Downgraded from
   Bank Loan Facility                 'CRISIL B+/Stable')

   Term Loan               12.68      CRISIL D (Downgraded from
                                      'CRISIL B+/Stable')

The downgrade reflects recent delays in servicing the term loan.
The delays were caused by weak liquidity due to low cash accrual,
which was insufficient to meet repayment obligation. Cash accrual
was impacted by slower-than-expected ramp up in operations.

The rating factors in a small scale of operations in the
intensely competitive autoclaved aerated concrete (AAC) industry,
and a subdued financial risk profile. These rating weaknesses are
partially offset by the extensive industry experience of the
promoter.

Key Rating Drivers & Detailed Description

Weakness

* Small scale of operations in a fragmented industry: Revenue was
INR14.03 crore in fiscal 2017, and is expected to remain modest
due to the high degree of fragmentation in the industry.

* Subdued financial risk profile: The networth was negative as on
March 31, 2017, leading to a weak capital structure. Small scale
of operations and high interest payout have resulted in a low
interest coverage ratio of 1.5 times in fiscal 2017. The
financial risk profile is expected to remain subdued over the
medium term.

Strengths

* Extensive industry experience of the promoter: The promoter has
an experience of nearly two decades in the construction industry.
Benefits from this experience will continue to support the
business risk profile.

Incorporated in October 2012 and based in Nashik, Maharashtra,
GGCSPL is promoted by Mr. Bhushan Khairnar. The company
manufactures AAC.

Profit after tax was INR0.93 crore on net sales of INR14.03 crore
for fiscal 2017, vis-a-vis a net loss of INR2.9 crore and net
sales of INR12.78 crore in fiscal 2016.


GOPISH PHARMA: CARE Lowers Rating on INR9.0cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Gopish Pharma Limited (GPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.00       CARE D Revised from
                                     CARE B

   Short-term Bank
   Facilities             2.50       CARE D Revised from
                                     CARE A4

   Long-term/Short-
   term Bank
   Facilities             0.50       CARE D Revised from
                                     CARE B/CARE A4

Rating Rationale

The revision in the ratings assigned to the bank facilities of
GPL takes into account the ongoing delays in debt servicing due
to stressed liquidity position.

Detailed description of the key rating drivers

Gopish Pharma Limited (GPL) is engaged in the manufacturing of
generic drugs. The company's financial risk profile is affected
on account of delays in the realization of debtors. The same led
to stressed liquidity issues which resulted into delays in debt
servicing.

GPL is a closely held public limited company incorporated in
1995. The company was originally incorporated as a private
limited company and its constitution was changed in 1996. The
present directors of the company include Mr. Ravi Prakash Goyal,
Mr. Ratish Goyal and Ms Santosh Goyal. GPL is engaged in
manufacturing of generic drugs at its manufacturing facility
located in Solan, Himachal Pradesh. The main raw material of the
company includes chemicals and packing material which are
procured from various domestic manufacturers and traders. The
group companies of GPL include Gopish Foils and Gopish Pharma
which are engaged into the business of specialised packaging
products and manufacturing of injections respectively.


GURU GOBIND: CRISIL Reaffirms B- Rating on INR8MM LT Loan
---------------------------------------------------------
CRISIL has been consistently following up with Guru Gobind Food &
Agro Private Limited (GGFA) for obtaining information through
letters dated February 15, 2017 and March 24, 2017 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              5        CRISIL B-/Stable (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

   Long Term Loan           8        CRISIL B-/Stable (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GGFA. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
GGFA is consistent with 'Scenario 5' outlined in the 'Framework
for Assessing Consistency of Information on the basis of best
available information.' Based on the last available information,
CRISIL has reaffirmed its ratingson long-term bank facilities of
GGFA at 'CRISIL B-/Stable' (issuer not cooperating)'.

GGFA was incorporated in 2014 by Mr. Shaminderjeet Singh Sandhu
in Muktsar (Punjab). The company commenced operations in March
2015. It processes basmati and non-basmati rice, and has milling
and sorting capacity of 8 tonne per hour each.


HOWRAH MILLS: CRISIL Reaffirms D Rating on INR52.4MM Cash Loan
--------------------------------------------------------------
CRISIL has been consistently following up with Howrah Mills Co.
Limited (HMCL) for obtaining information through letters and
emails dated March 06, 2017and March 22, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Bank Guarantee            8        CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

   Cash Credit              52.4      CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)


   Letter of Credit         20        CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)


   Proposed Long Term
   Bank Loan Facility        1.02     CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)


   Term Loan                18.58     CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Howrah Mills Co. Limited. This
restricts CRISIL's ability to take a forward looking view on the
credit quality of the entity. CRISIL believes that the
information available for Howrah Mills Co. Limited is consistent
with 'Scenario 3' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BBB' category or lower.
Based on the last available information, CRISIL has reaffirmed
the rating at 'CRISIL D/CRISIL D'.

HMCL, set up in 1890, manufactures jute products with a capacity
of 44,000 tonnes per annum. The company manufactures a wide range
of products, including hessian, jute yarn, jute cloth, and
decorative bags. It has leased out warehouses built on part of
its land-bank, and receives an annual rental income of around
INR45 million.


INVENTION REALTORS: CARE Lowers Rating on INR15cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Invention Realtors Private Limited (IRPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facility                15        CARE D Revised from CARE BB-

Detailed Rationale & Key Rating Drivers
The revision in the rating assigned to the bank facilities of
Invention Realtors Private Limited (IRPL) factors in the delay in
servicing of debt obligations by the company.

Establishing a clear track record of timely debt servicing is the
key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weakness
Delay in debt servicing obligations: As per the interaction with
the banker there have been instances of delays in debt servicing
and the account has been classified as SMA-1.

Invention Realtors Private Limited (IRPL) is a private limited
company formed in 2003 and belongs to the Maruti Group of Mumbai.
Maruti group was formed by Mr. Mukesh Agrawal in the year 2004.
There are nine shareholders, with the main promoters of IRPL
being Mr. Mukesh Agrawal (Managing Director of IRPL), Mr. Kapil
Gupta (Director of IRPL) and Mr. Narendra Gupta. IRPL was formed
for the execution of a commercial project named; "Maruti Business
Park" with a total saleable area of 0.73 lakh sq. ft. (lsf),
situated at Jogeshwari (E), Mumbai. The land has been acquired by
executing a sale deed with the land owners in the name of IRPL.
Further, all the approvals and clearances like land NA,
environment clearance, plan sanction etc. have already been
registered in the company's name. Apart from this, the group
currently has one on-going residential cum commercial project
"Maruti Developers", with a total saleable of 6.00 lsf, situated
at Mira Road, Bhayendar, Mumbai.


JAYPEE INFRATECH: Has Until Aug. 4 to Respond to IDBI Petition
--------------------------------------------------------------
Business Standard reports that the National Company Law Tribunal
(NCLT) on July 27 gave Jaypee Infratech time until August 4 to
respond to a petition of insolvency filed by IDBI Bank after the
company said it did not receive a notice from the tribunal on
beginning the proceedings.

IDBI Bank filed a petition for insolvency against Jaypee
Infratech in the NCLT, Allahabad, last month, the report says.
The company owes IDBI Bank INR4,000 crore. Its total dues to all
banks are INR9,365 crore.

Jaypee Infratech is one of 12 cases the Reserve Bank of India
(RBI) has recommended for referral to the NCLT for insolvency
proceedings, according to the report.

If the NCLT admits a petition on insolvency, the board of the
company concerned is suspended and an interim resolution
professional is given 180 days to turn the company around. If
that does not happen even after an extension of 90 days, the
company's assets are to be liquidated, Business Standard states.

According to Business Standard, Jaypee Infratech was one of the
accounts the RBI recommended for debt restructuring under the
Sustainable Structuring of Stressed Assets (S4A) in 2016. Lending
banks have ordered a forensic audit to ensure that loans provided
to Jaypee Infratech are being used for the purpose they were
sought, the report says.

Earlier this year, Jaypee Infratech sold its cement and power
assets, Business Standard recalls.

Business Standard relates that the company has not been able to
finish a number of real estate projects and buyers of houses in
Jaypee Wish Town in Noida have filed an online petition seeking
amnesty from the insolvency proceedings.

The petition was filed over fears that if insolvency proceedings
began, the first right over the land on which Jaypee Wish Town
was being built would go to the Yamuna Expressway Industrial
Development Area, Business Standard notes.


JBF INDUSTRIES: CARE Lowers Rating on INR1,600cr Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
JBF Industries Limited (JBF), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            426.83      CARE D Revised from
                                     CARE BB+; Negative

   Short-term Bank
   Facilities           1600.00      CARE D Revised from
                                     CARE A4

Detailed Rationale & Key Rating Drivers

The revision in ratings assigned to the bank facilities of
JBF takes into account delays in servicing of debt obligation on
account of weakened liquidity position due to cash flow
mismatches marked by losses in overseas operations, total debt
remaining at elevated levels, weakened debt coverage indicators
and continuous delay in commencement of the PTA project.

Outlook: Stable

Detailed description of the key rating drivers

Key Rating Weakness
Delays in servicing of debt obligation by the company due to its
weakened liquidity position

Analytical approach: For arriving at the ratings, CARE has taken
a consolidated view of JBF and its subsidiaries due to
significant operational and financial linkages between them.

Established in 1982, JBF Industries Limited (JBF) was founded by
Mr. Bhagirath Arya (Chairman) as a Yarn Texturising company,
since then it has backward integrated and expanded capacities in
the polyester value chain. Over the years JBF has emerged as
amongst top 10 producers of PET (Polyethylene Terephthalate)
chips and BOPET (Biaxially-Oriented Polyethylene Terephthalate)
films globally. JBF is engaged in manufacturing of Polyester
Chips (textile grade, bottle grade and film grade), Partially
Oriented Yarn (POY)/Polyester Texturised Yarn (PTY) and BOPET
films. On a standalone basis, JBF is predominantly polyester
chips player (textile grade & bottle grade) having capacity of
608 KT pa and Polyester Yarn capacity of 352 KT pa.

Having established itself in the domestic market, JBF ventured
into overseas markets (i.e. JBF RAK LLC) in 2008 by setting
up a PET chips (film grade, 432 KT pa) and BOPET films (102 KT
pa) plant in Ras AI Khaimah, UAE. Subsequently in 2014 it
commissioned a BOPET films plant with capacity of 90 KT pa plant
at Bahrain and bottle grade PET chips plant with a capacity of
390 KT pa at Geel, Belgium. Furthermore, the company is incurring
capex for setting up 1250 KT pa Purified Terephthalic Acid (PTA)
plant in Mangalore.

The manufacturing facilities of JBF are located in Silvassa,
Vapi, UAE, Bahrain and Belgium. JBF became a public limited
company in 1986 and is listed on NSE and BSE.


K S INFRA: CARE Assigns B+ Rating to INR4.0cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of K S
Infra Transmission Pvt Ltd (KSITPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             4.00       CARE B+; Stable Assigned

   Short-term Bank
   Facilities             2.00       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of KSITPL remain
constrained on account of weak financial risk profile marked by
thin profitability margins, highly leveraged capital structure
and moderate debt coverage indicators. The ratings are further
constrained on account of stressed liquidity position and
presence in the highly competitive and fragmented industry. The
ratings, however, derive strength from the experienced management
with more than two decades of track record of group, operational
synergies from group companies and healthy order book position.
The ratings also factor in increasing Total Operating Income
along with stable demand outlook for power transmission and
distribution industry.

KSITPL's ability to increase its scale of operations while
improving profitability and capital structure as well as
efficient
management of working capital and continuing support of group
entities would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Highly leveraged capital structure with moderate debt coverage
indicators: Capital structure of the company stood highly
leveraged with an overall gearing of 6.09 times as on March 2017;
improved marginally from 6.95 times as on March 31, 2016 on
account of accretion of profit to reserves. Debt coverage
indicators like debt to GCA and PBILDT interest coverage ratio
stood moderate in FY17.

Decline in PBILDT margins: Due to higher trading sales and
increased competition, profitability margins of the company
deteriorated continuously during FY15-FY17. PBILDT margins of
KSITPL declined by 605 bps to 4.12% in FY16 and further
by 109 bps to 3.02% in FY17.

Stressed liquidity position: Liquidity position of the company
remained stressed marked by almost full utilization of working
capital limits during last 12 months ending June, 2017 and
frequent availing of ad-hoc limits. However, operating cycle of
the company improved from 95 days in FY16 to 46 days in FY17 with
an increase in scale of operations.

Key Rating Strengths
Experienced management: Ishwar group was started with Ishwar
Metal Industries in 1992. The group incorporated KSITPL in 2013
to supply general fabricated items, cross arms, clamps, lattice
tower, substation structures, transformer tank etc. used in power
sector to IMI. Key promoter, Mr. Rahul Chaudhary, Director, has
more than a decades experience in industry through IMI.

Benefits derived from group synergies as well as strong order
book position: Ishwar Group has wide range of product portfolio
catering to the needs of T&D segment of power industry. KSITPL
derives synergies from its group companies in terms of supply of
raw material as well purchase of finished products. KSITPL
purchases raw material like aluminium wires as well as cables
etc. from IMI and ICPL. Whereas, it sells steel structures,
clamps, lattice tower etc. to IMI and ICPL. KSITPL derives more
than 50% of its gross sales from group IMI and procures more than
60% of its raw material requirements from group entities. As on
May 31, 2017, KSITPL has total outstanding orders of INR44.46
crore.

Stable demand outlook for Indian transmission industry: Power
sector, in any country, is critical for the socio-economic
development. India is expected to add 278 GW of generation
capacity till FY22 including conventional and nonconventional
energy sources. Further, investments to modernize the existing
T&D network to improve efficiency augur well for the T&D sector
and for the companies engaged in business of supplying cable and
wires as well laying power transmission lines etc. The same
augurs well for suppliers of electrical equipment and structures
including KSPL. Increasing Total Operating Income: KSITPL was
incorporated during FY14 and within short span of time; TOI of
the company has increased significantly on account of strong
group support and demand from power T&D companies. The company
also started trading of aluminium wire and rod in FY16 which
increased significantly in FY17 leading to higher TOI.

Jaipur (Rajasthan)-based K S Infra Transmission Private Limited
(KSITPL) was incorporated in 2013 by Mr. Rahul Chaudhary and his
family members. KSITPL is engaged manufacturing of general
fabricated items like Cross Arms, Clamps, Lattice towers,
Substation structures, and Transformer tanks which find its
application in Transmission & Distribution (T&D) segment of power
industry as well barbed wires and chain-link wires. It also
manufactures line hardware made of aluminium casting and iron
casting.


K. R. SOLVENT: CRISIL Lowers Rating on INR6.53MM Term Loan to B
---------------------------------------------------------------
CRISIL has been consistently following up with M/s K. R. Solvent
(KRS; part of Milan group)) for obtaining information through
letters and emails dated January 27, 2017 and April 05, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Bank Guarantee           .42       CRISIL A4 (Issuer Not
                                      Co-operating; Downgraded
                                      from 'CRISIL A4+')

   Cash Credit             13         CRISIL B/Stable (Issuer Not
                                      Co-operating; Downgraded
                                      from 'CRISIL BB+/Stable')

   Proposed Long Term       .05       CRISIL B/Stable (Issuer Not
   Bank Loan Facility                 Co-operating; Downgraded
                                      from 'CRISIL BB+/Stable')

   Term Loan               6.53       CRISIL B/Stable (Issuer Not
                                      Co-operating; Downgraded
                                      from 'CRISIL BB+/Stable')

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

Detailed Rationale

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

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Milan Ginning Pressing Pvt Ltd (MGP),
KRS, and Sustainable Spinning and Commodities Private Limited
(SSCPL). This is because the three entities, together referred to
as the Milan group, have common promoters and management, and are
engaged in similar lines of business.

MGP, incorporated in 1995, gins cotton at its facilities in
Surendranagar (Gujarat). The company is promoted and managed by
Mr. Husen Ali Yusuf Ali Narsinh. KRS, set up in 2011, extracts
cotton oil by processing cotton seeds. SSCPL, incorporated in
2012, is engaged in cotton spinning.


MAHAKALI CHANDRAPUR: CRISIL Reaffirms D Rating on INR7MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Mahakali
Chandrapur Polytex Private Limited (MCPPL) for obtaining
information through letters and emails dated February 16, 2017,
and April 17, 2017, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit                2       CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

   Term Loan                  7       CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MCPPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
MCPPL is consistent with 'Scenario 3' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL BBB rating
category or lower. Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISIL D'.

MCPPL, set up in 2011, manufactures polypropylene woven sacks
which are used for packaging in various industries such as cement
and sugar. The company's manufacturing unit is in Chandrapur
(Maharashtra), which commenced operations in June 2014.


MAHALAXMI TMT: CARE Lowers Rating on INR619.56cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Mahalaxmi TMT Private Limited (MTPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Term Bank
   Facilities           619.56       CARE D Revised from
                                     CARE B

   Short Term Bank
   Facilities           165.82       CARE D Revised from
                                     CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned the bank facilities of
Mahalaxmi TMT Private Limited (MTPL) takes into account of
ongoing delays in servicing of its debt obligations as a result
of its stressed liquidity arising from continue cash losses.

Detailed description of the key rating drivers

Key Rating Weaknesses

Ongoing delays in debt servicing
Debt servicing of MTPL is irregular as reflected by delays in
servicing of its term loan principal and interest and devolvement
in letter of credit. Liquidity position of the company is
stressed due to continue cash losses on account of higher raw
material costs and decline in sales. Moreover, the company has
filed an application for debt structuring under 'S4A', however,
the same is yet to be approved by lenders. Erosion of net worth
base due to continue losses Due to continue losses, the tangible
net worth base of the company eroded significantly leading to
weak capital structure marked by very high overall gearing ratio.

Malalaxmi TMT Private Limited (MTPL) is a part of Sangam group
based out of Bhilwara, Rajasthan and is engaged in manufacturing
billets and bars since April 1, 2010. MTPL is has integrated
steel manufacturing facilities located at Wardha, Maharashtra
with installed capacity of 420,000 metric tonne per annum (MTPA)
for billets and 500,000 MTPA for bars.


MANGALATHU ENTERPRISES: CRISIL Cuts Rating on INR3MM Loan to B
--------------------------------------------------------------
CRISIL has been consistently following up with Mangalathu
Enterprises (ME) for obtaining information through letters and
emails dated February 08, 2017 and March 07, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.


                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Cash Credit               3       CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL B+/Stable')

   Export Packing Credit     1.5     CRISIL A4 (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

   Proposed Long Term        2.5     CRISIL B/Stable (Issuer Not
   Bank Loan Facility                Cooperating; Downgraded from
                                     'CRISIL B+/Stable')

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

Detailed Rationale

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

Set up in 2004, ME processes raw cashew nuts. The firm's
operations are managed by the proprietor, Mr. R Sathyadevan.


MPK ISPAT: CARE Lowers Rating on INR19.30cr LT Loan to 'D'
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
MPK Ispat India Private Limited (MPKI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            19.30       CARE D Revised from
                                     CARE B

   Short-term Bank
   Facilities             7.40       CARE D Revised from
                                     CARE A4

Detailed Rationale& Key Rating Drivers

The revision in the ratings of MPKI takes into account ongoing
delays in servicing of interest and installment of its debt owing
to stressed liquidity position.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in debt servicing
There are ongoing delays in servicing of interest and installment
of debt owing to stressed liquidity on account of lower
realization from steel products and linked to cyclical real
estate sector.

Key Rating Strength

Experienced Management
MPKI being a part of MPK group is promoted by 'Sharma family' and
is currently managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj
Upadhyay, director having more than a decade experience in the
steel industry. Both are supported by Mr. Pankaj Sharma,
director, who has more than a decade of experience in the
industry.

Incorporated in 2010, M.P.K Ispat India Private Limited (MPKI) is
promoted by the MPK group based out of Jaipur (Rajasthan). As a
backward integration initiative, MPK group set up Mild Steel (MS)
billet manufacturing plant in MPKL with commencement of
operations from March, 2013 onwards thus by translating to FY14
being the first full year of operation for the company. MPKI has
its manufacturing unit situated at Bagru, Rajasthan, having
installed capacity of 27,000 Metric Tonnes Per Annum (MTPA) as on
March 31, 2016 The company majorly supplies its production of
M.S. Billets to its group concerns which are engaged in the
manufacturing of structural steel products as well as cater to
the domestic market. It meets its raw material requirement mainly
by purchase from local market as well as import from outside
market.


MPK METALS: CARE Lowers Rating on INR6.41cr LT Loan to 'D'
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
MPK Metals Private Limited (MPKM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             6.41       CARE D Revised from
                                     CARE B

   Short-term Bank
   Facilities             0.72       CARE D Revised from
                                     CARE A4

Detailed Rationale& Key Rating Drivers

The revision in the ratings of MPKM takes into account ongoing
delays in servicing of interest and installment of its debt owing
to stressed liquidity position.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in debt servicing
There are ongoing delays in servicing of interest and installment
of debt owing to stressed liquidity on account of lower
realization from steel products and linked to cyclical real
estate sector.

Key Rating Strength

Experienced Management
MPKM being a part of MPK group is promoted by 'Sharma family' and
is currently managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj
Upadhyay, director having more than a decade experience in the
steel industry. Both are supported by Mr. Pankaj Sharma,
director, who has more than a decade of experience in the
industry.

Incorporated in 2009, M.P.K Metals Private Limited (MPKM) is
promoted by MPK group based out of Jaipur (Rajasthan). MPKM is
primarily engaged into the business of manufacturing of
structural products includingMild Steel (M S) angles, sections,
rounds and flats which finds its application particularly in
infrastructure industries ranging from power transmission to real
estate. MPKM has its manufacturing unit situated at Jaipur,
Rajasthan, having installed capacity of 4,800 Metric Tonnes Per
Annum (MTPA) as on March 31, 2016.

The company caters to domestic market under the brand name of
'MPK' with sales concentrated predominantly in Rajasthan. It
procures its key raw material, from its group concerns as well as
from local market.


MPK STEEL: CARE Lowers Rating on INR15.67cr LT Loan to 'D'
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
MPK Steel India Private Limited (MPKS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            15.67       CARE D Revised from
                                     CARE B

   Short-term Bank
   Facilities             7.25       CARE D Revised from
                                     CARE A4

Detailed Rationale& Key Rating Drivers

The revision in the ratings of MPKS takes into account ongoing
delays in servicing of interest and installment of its debt owing
to stressed liquidity position.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in debt servicing
There are ongoing delays in servicing of interest and installment
of debt owing to stressed liquidity on account of lower
realization from steel products and linked to cyclical real
estate sector.

Key Rating Strength

Experienced Management
MPKS being a part of MPK group is promoted by 'Sharma family' and
is currently managed by Mr. Santosh Kumar Upadhyay and Mr. Manoj
Upadhyay, director having more than a decade experience in the
steel industry. Both are supported by Mr. Pankaj Sharma,
director, who has more than a decade of experience in the
industry.

Incorporated in 2005, M.P.K Steels India Private Limited (MPKS)
is promoted by the MPK group based out of Jaipur (Rajasthan).MPKS
is primarily engaged into the business of manufacturing of
structural products including Mild Steel (M S) angles, channels,
rounds and flats which finds its application particularly in
infrastructure industries ranging from power transmission to real
estate. MPKS has its manufacturing unit situated at Jaipur,
Rajasthan, having installed capacity of 28,800 Metric Tonnes Per
Annum (MTPA) as on March 31, 2016. The company caters to domestic
market under the brand name of 'MPK' with sales concentrated
predominantly in Rajasthan. It procures its key raw material,
from its group concerns as well as from local market.


NAMDHARI RICE: CARE Lowers Rating on INR11.50cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Namdhari Rice and General Mills (NRGM), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             11.50      CARE D Revised from
                                     CARE B-

   Short-term Bank
   Facilities              1.50      CARE D Revised from
                                     CARE A4

Rating Rationale

The revision in the ratings assigned to the bank facilities of
NRGM takes into account on-going delays in debt servicing due to
stressed liquidity position.

Detailed description of the key rating drivers

There have been on-going delays by NRGM in servicing of its debt
obligations. This is on account of the stressed liquidity
position of the firm due to delay in the realisation of debtors
and piling up of inventory.

Sirsa-based (Haryana) Namdhari Rice & General Mills (NRGM) was
established in 1986 as partnership concern by Mr. Daljit Singh
and Mr. Jaspal Singh sharing profits and losses equally. The firm
is engaged in milling and processing and trading of both basmati
and non-basmati rice with an installed capacity of 320 tonnes per
day as on March 31, 2017. The firm procures the raw material
(unprocessed rice/de-husked paddy) from grain markets located in
Haryana through commission agents. The firm sells its products
under the brand name "Namdhari", "Paras", "Sant" to wholesalers
in Haryana, Delhi, Pune, Hyderabad, Bangalore, Chennai etc. Also,
the firm exports 15% of its sale to Europe. The by-product of
rice viz husk, rice bran, and 'phak' are sold in the domestic
market.


NOOR INDIA: CARE Lowers Rating on INR7.0cr LT Loan to 'D'
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Noor India Buildcon Private Limited (NIBPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         7.00       CARE D Revised from
   Facilities                        CARE B+; Stable

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
NIBPL is on account of delay in debt repayment owing to weak
liquidity position. Establishing a clear debt servicing track
record with improvement in the liquidity position remains the key
rating sensitivity.

Detailed description of key rating drivers

Ongoing delay in debt servicing: IIN has been irregular in
servicing its debt obligation as there are on going delays in its
debt servicing. The same is due to weak liquidity position of the
firm.

Vapi-based Noor India Buildcon Private Limited (NIBPL),
incorporated by Mr. Amin Yasid Saiyed in the year 2006. NIBPL is
registered as a 'Class AA' contractor, Public Work Department of
Gujarat (highest on a scale of AA to E2) and secures all the
contracts through open bidding process. The company is in the
business of undertaking turnkey projects involving civil works,
erection, commissioning and electrical works of industrial
buildings. NIBPL is executing the contract works for public and
private companies.


P.T. SREENIVASAN: CRISIL Reaffirms B- Rating on INR1.2MM Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B-/Stable/CRISIL A4' ratings on
the bank facilities of P.T. Sreenivasan (PTS).

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee         3.3       CRISIL A4 (Reaffirmed)
   Overdraft              2.5       CRISIL A4 (Reaffirmed)
   Term Loan              1.2       CRISIL B-/Stable (Reaffirmed)

The ratings reflect modest scale of operations in the fragmented
civil construction industry and weak financial risk profile.
These weaknesses are partially offset by the extensive experience
of proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in an intensely competitive industry
The business risk profile will likely remain constrained by
modest scale in the fragmented civil construction segment, as
reflected in estimated revenue of INR4.1 crores during fiscal
2017. The firm is exposed to intense competition in the civil
construction industry, which has presence of large companies such
as Larsen & Toubro Ltd, Vishwas Infrastructure India Ltd, and
Ramky Infrastructure Ltd, as well as many small players.

* Weak financial risk profile:
The networth is small, estimated at INR3.3 crore as on March 31,
2017. The gearing is estimated at 2.06 time mainly on account of
modest networth, and significant reliance on working capital
borrowings. Debt protection metrics are moderate as reflected in
estimated interest coverage ratio of 2.15 times and net cash
accrual to total debt ratio of 0.09 time in fiscal 2017.

Strength

* Proprietor's extensive experience
PTS has been executing civil contracts and interior decoration
contracts for over three decades and has established
relationships with major clients such as Kerala Public Works
Department. Strong and timely execution capabilities and
established relationships with key customers have helped obtain
repeat orders from these customers. The proprietor has also
established healthy relationships with suppliers ensuring steady
supply of raw materials. PTS should continue to benefit over the
medium term from the proprietor's experience, and moderate
unexecuted orders.

Outlook: Stable

CRISIL believes PTS will continue to benefit over the medium term
from its proprietor's extensive experience. The outlook may be
revised to 'Positive' in case of significant scaling up of
operations while maintaining moderate operating profitability, or
improved working capital management. Conversely, the outlook may
be revised to 'Negative' if low revenue or profitability, or
deterioration in working capital management weakens liquidity.

Established in 1984 as a proprietorship firm by Mr PT
Sreenivasan, PTS, based in Kozhikode (Kerala), executes civil
contracts for the Kerala Public Works Department.

The firm reported a profit after tax of INR0.3 crore on revenue
of INR2.81 crore in fiscal 2016, vis-a-vis INR0.79 crore and
INR7.03 crore, respectively, in fiscal 2015.


PALAPARTHI SUPER: CARE Lowers Rating on INR70cr LT Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Palaparthi Super Speciality Hospital Private Limited (PSSH), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities               70       CARE D Revised from
                                     CARE B+; Stable

Detailed Rationale& Key Rating Drivers

The revision in the rating assigned to PSSHtakes into account
stretched liquidity position on account of subdued operational
and financial performance of the company resulting in delays in
debt servicing. Establishing a clear debt servicing track record
with improvement in its liquidity position is the key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Stretched liquidity position
The hospital achieved COD in November 2015 and has been in
operation for about one and half year. However, due to delay in
empanelment with Government Schemes, health insurance companies
as well as suboptimal level of turnout of patients resulted in
low occupancy of beds. The weak operational performance resulted
in strained liquidity position and consequently delays in meeting
debt obligations on time.

Key rating strengths

Experienced and resourceful promoters:
PSSH is promoted by Dr Silas J Charles and his wife MrsVasantha
Charles. Dr S Charles has over two decades of experience in the
medical profession. He has done his Residency and Fellowship in
Radiation Oncology from New York. Since 1990, he has been the
President of Cancer Care Centers of Brevard in Melbourne, USA.

Incorporated in September 2011, Palaparthi Super Speciality
Hospital Private Limited (PSSH) has been promoted by Dr. Silas J.
Charles and his wife Mrs Vasantha Charles. PSSH has set up a
super-specialty hospital under the banner 'Hope International
Hospital' with 350 beds capacity (74 beds in Intensive Care Unit
(ICU) and 276 beds in General ward) in Kakinada, Andhra Pradesh.
The company commenced commercial operations from Nov. 1, 2015.


PNS METALS: CRISIL Lowers Rating on INR9MM Loan to 'B'
------------------------------------------------------
CRISIL has been consistently following up with PNS Metals Limited
(PML) for obtaining information through letters and emails dated
January 27, 2017 and February 22, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              9        CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL B+/Stable')

   Proposed Cash            9        CRISIL B/Stable (Issuer Not
   Credit Limit                      Cooperating; Downgraded from
                                     'CRISIL B+/Stable')

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

Detailed Rationale

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

PML, incorporated in 2001, is promoted by Jamnagar (Gujarat)-
based Mr. Ajay Sayani and family. The company manufactures,
exports, and trades in brass fasteners and fittings.


PRADEEP UDYOG: CARE Downgrades Rating on INR10cr LT Loan to D
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Pradeep Udyog (PU), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank          10        CARE D Revised from
   Facility                          CARE B+

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
Pradeep Udyog (PU) factors in the delay in servicing of debt
obligations by the firm.

Establishing a clear track record of timely debt servicing is the
key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weakness
Delay in debt servicing obligations: As per the interaction with
the banker, the account has been classified as SMA-2 on account
of overdrawals in cash credit facility and delay in repayment of
interest obligation.

PU, based in Nagpur (Maharashtra), is promoted by Mr. Pradeep
Agarwal and commenced operation in January 2016. PU is engaged in
trading of iron & steel products such as Thermo Mechanically
Treated (TMT) bars, round bars, angles, channels, beams, flats,
etc, which find application in various industries like
construction, infrastructure and engineering, amongst others. The
entity has its registered office and servicing facility based in
Nagpur. The servicing facility is owned by the entity and has an
area of 6,000 square feet (sq. ft.). The entity procures
materials from local and domestic suppliers based in Nagpur and
Raipur and sells its products in the state of Maharashtra.


PRANAAV MARATHE: CARE Downgrades Rating on INR32.20cr Loan to D
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Pranaav Marathe Jewellers Private Limited (MJ), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         32.20      CARE D Revised from
   Facilities                        CARE B+; Stable

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the long-term bank
facilities of MJ to 'CARE D' reflects continuous overdrawal in
the working capital facilities by the company in Q1FY18 (refers
to the period April 1 to June 30).

Detailed description of the key rating drivers

Key Rating Weaknesses

Overdrawals in Cash Credit (CC) account in Q1FY18
There are continuous overdrawal in the CC account during Q1FY18,
on account of stretched liquidity position.

Working capital-intensive nature of operations, weak debt
protection metrics: G & J industry is highly labor and working
capital intensive in nature. Furthermore, MJ being into the
retailing of jewelry the company is required to maintain a large
amount of inventory. Working capital cycle elongated to 158 days
during FY16 as compared to 96 days during FY15. The same was on
account of higher inventory period. Furthermore, due to increase
in debt and decline in PAT, Term Debt to Gross Cash Accruals
(GCA) ratio deteriorated to 26.45x during FY16 as compared to
6.87x during FY15.

Pranaav Marathe Jewellers Private Limited (MJ) incorporated in
the year 2012, is a closely held company led by Mr. Balwant
Marathe and his brother Mr. Kaustubh Marathe. MJ is engaged in
the designing and retailing of all types of gems, diamonds,
precious and semi-precious stone-studded jewelry in gold, silver
and platinum along with jewelry made of natural and artificial
pearls and corals.


PUNJAB BIOMASS: CARE Lowers Rating on INR17.85cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Punjab Biomass Power Ltd. (PBPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank         17.85      CARE D Revised from
   Facilities                        CARE BB-; Stable
   (Term Loan)


   Long term Bank          9.97      CARE D Revised from
   Facilities                        CARE BB-; Stable
   (Cash credit)

Detailed Rationale& Key Rating Drivers

The ratings reflect on-going delays in servicing of interest on
term loans and working capital limits availed by the company
on account of its weakened liquidity position in Q1FY18.

Detailed description of the key rating drivers

Key Rating Weaknesses

Punjab Biomass Power Ltd. (PBPL), a Joint Venture (JV) between
Bermaco Energy Systems Ltd. (BESL) and IL&FS Renewable Energy
Limited (IREL, rated CARE A1(SO)), [has a 12 MW biomass-based
(paddy straw) operational power plant in District Patiala,
Punjab. Post stake sale by earlier JV partner Gammon
Infrastructure Projects Limited to IREL in December 2011, IREL
and BESL hold 50%, 44.31% and 5.70%3 stake by Gammon
Infrastructure respectively in PBPL. Bermaco Group has an
Engineering background and in existence since 1960. The company's
dedicated venture in power sector started in 1996. BESL, in
consortium arrangement with ETA of Dubai, took over the 10MW
paddy straw based power plant at Jhalkheri, Punjab from M/S PSEB
under an O&M performance contract. The other JV partner, IL&FS.

Renewable Energy Limited (IREL) is a wholly owned subsidiary of
IL&FS Energy Development Company Limited (IEDCL, rated CARE A+),
which is flagship company for power sector investment for the
IL&FS group. IREL is subsidiary, which spearheads all renewable
initiatives and investments for the group.


R V REALTY: CARE Lowers Rating on INR9.50cr LT Loan to 'D'
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
R V Realty (RVR), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             9.50       CARE D; Revised from
                                     CARE BB; Stable

Detailed Rationale & Key Rating Drivers

The revision in ratings assigned to the bank facilities of
RVR, factors in the ongoing delays in debt servicing by RVR due
to its stressed liquidity position. The ratings continue to
derive strength from experienced management.

Detailed description of the key rating drivers

Key Rating Strengths

Ongoing delays in Debt Servicing:
There are on-going delays in servicing of its debt obligations of
bank facilities due to its stretched liquidity position on
account of slow sales velocity.

Key Rating Strengths

Considerable experience of the promoters
R V Realty is a SPV in the form of partnership concern between
which was formed on January 23, 2013. The partners include Mr.
Nitin Kulkarni, Mr. Sachin Kulkarni (promoters of the Vastushodh
Group), Mr. Dhananjay Nimbalkar, Mr. Milind Jadhav and Mr. Rohit
Jadhav (promoters of the Reelicon Group). Mr. Sachin Kulkarni is
also the Managing Director of Vastushodh Group.

RV Realty is a special purpose vehicle (SPV) formed as a
partnership entity between the Pune based Vastushodh Group
and the Pune based Reelicon Group. The Reelicon group is a Pune
based real estate engaged mainly in the construction of
residential projects. The firm was promoted by 3 entrepreneurs in
1998, Mr. Anil Salunke, Mr. Milind Jadhav and Mr. Dhananjay
Nimbalkar each having 15 years of experience.


RAIGANJ JEEVAN: CARE Assigns B+ Rating to INR7.0cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Raiganj Jeevan Rekha Diagnostic Private Limited (RJRDPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            7.00        CARE B+; Stable Assigned

   Short-Term Bank
   Facilities            0.40        CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to RJRDPL is constrained by its small scale
of operations, project implementation risk, stringent regulatory
framework for healthcare sector, and being reputational intensive
sector along with fragmented and competitive nature of the
industry. The rating, however, derives strength from its long
track record of operations with qualified and experienced
promoters, satisfactory infrastructure with wide service
offerings provided by experienced team of doctors and strong
profitability margins.

Going forward, the company's ability to complete the project on
time without any cost and time overrun and achieve
projected turnover and profitability as envisaged along with
improve the scale of operations and maintaining of
profitability margins shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operation
RJRDPL has relatively small scale of operations over past three
years as reflected by total operating income of INR6.17 crore
with a PAT of INR0.79 crore in FY17(prov.). Moreover, the
networth also remained low at INR4.53 crore as on March 31, 2017
(prov.). However, the total operating income has increased by
13.00% in FY17 (Prov.) over FY16 due to increase in average
revenue from patients.

Project implementation risk
In view of increasing demand for healthcare facilities, RJRDPL is
proposed to set up a nursing home in Uttar Dinajpur, West Bengal
with aggregate cost INR10.43 crore which is to be financed out of
term loan of INR7.0 crore from bank and promoter contribution of
INR3.43 crore. The banker has already sanctioned the term loan
and made disbursement of INR4.39 crore till June 30, 2017. RJRDPL
has spent around INR6.89 crore in the project as on June 30,
2017.The project is expected to be completed by September, 2017.
Since, the project is in its initial stage of implementation, the
project implementation risk exists.

Stringent regulatory framework for healthcare sector and
reputational intensive sector
Despite the increasing trend of privatization of healthcare
sector in India, the sector continues to operate under string
regulatory control. Accordingly, regulatory challenges continue
to pose a significant risk to private healthcare as the same is
highly susceptible to changes in regulatory framework. Healthcare
is a highly sensitive sector where any mishandling of a case or
negligence on part of any doctor and/or staff of the unit can
lead to distrust among the masses. Thus, all the healthcare
providers need to monitor each case diligently and maintain
standard of services in order to avoid the occurrence of any
unforeseen incident. They also need to maintain high vigilance to
avoid any malpractice at any pocket.

Fragmented and competitive healthcare industry
The healthcare sector is highly fragmented with few large players
in the organized sector and numerous small players in the
unorganized sector leading to high level of competition in the
business. Thus, differentiating factors like range of services
offered, quality of service, percentage of doctors, success rate
in treatment of complex cases, etc. will be crucial in order to
attract patients and to maintain healthy occupancy.

Key Rating Strengths
Long track record of operations with qualified & experienced
promoter

RJRDPL has a long track record of around 15 years. Moreover, the
key promoter, Dr.Santanu Das, (MD, aged 51 years), has 20 years
of experience in healthcare industry through various hospitals &
institutions. He looks after the overall management of the
company with adequate support from co-directors Ms. Deepali Das
(aged 79 years), and Dr. Bipasha Adhvaryu (aged 48 years), who
also have long experience in the same line of business.

Satisfactory infrastructure, wide service offerings and
experienced team of doctors
RJRDPL is well equipped with modern infrastructures and offers
various in-patient and out- patient healthcare services and
covers a wide range of healthcare services across various
branches viz.C T Scan, X Ray, USG facility, ECG, EEG, LCG, EMG,
Pathology, endoscopy, colonoscopy, CMT, PFT, etc. The diagnostic
centre has a team of 20visiting doctors and 60 support staff. The
overall growth of the diagnostic centre has remained good during
last three years.

Strong profitability margins
The profit margins of the company remained strong marked by
PBILDT margin of 29.43% and PAT margin of 12.81% in FY17(prov.).
The PBILDT margin has increased significantly in FY17 (Prov.) to
29.43% in FY17 (Prov.) over 25.00% in FY16 on account of increase
in average revenue received from patients. The PAT margin moved
in line with PBILDT margin during past financial years.

Raiganj Jeevan Rekha Diagnostic Private Limited (RJRDPL) was
incorporated in March, 2002 for setting up healthcare facilities
by Dr. Santanu Das and Ms. Deepali Das. Presently, the diagnostic
centre is located at Ukil Para, Uttar Dinajpur, West Bengal. In
view of increasing demand for health care services, RJRDPL has
proposed to set up a nursing home with the aggregate project cost
of INR10.43 crore. The project will be financed at debt equity of
2.04x. The banker has already sanctioned the term loan and a made
disbursement of INR4.39 crore till 30th June, 2017 whereas RJRDPL
has spent around INR2.5 crore of promoters fund. The project is
expected to be completed by September 2017.

The key promoter Dr. Santanu Das (Director), a well-qualified
medical professional having around 20 years of experience in
healthcare industry, looks after the overall management of the
company. He is supported by other directors (Ms. Dipali Das and
Dr.Bipasha Adhvaryu) who are also having a long experience in the
same industry.


RAMSARUP INDUSTRIES: ICICI Bank Opposes Insolvency Petition
-----------------------------------------------------------
Financial Express reports that ICICI Bank on July 20 opposed an
insolvency petition of Ramsarup Industries at the Kolkata bench
of the National Company Law Tribunal (NCLT).

It was probably the first instance of a major bank opposing a
defaulter's appeal to initiate insolvency proceedings under the
Insolvency and Bankruptcy Code (IBC), the report says.

The Kolkata-based steelmaker owes lenders INR2,049 crore, of
which ICICI Bank's exposure stood at INR70 crore, Financial
Express notes.

Financial Express relates that ICICI Bank counsel Siddhartha
Datta said in his submission that the bank opposed the company's
move. The Central Bureau of Investigation has been investigating
the company. "The company is not a going concern; its plants are
non-operational for a couple of years. And therefore, the company
is not serious about resolution," the report quotes Datta as
saying.

Referring to Section 65 of the IBC, Datta said initiation of the
insolvency proceeding should not be fraudulent or with a purpose
other than resolution, the report relays. "Sarfaesi Act has
already been invoked by ICICI Bank and steps are ongoing. But,
the bank has been facing some opposition from the company for
taking possession of assets," he said, adding that the bank has
applied to the district magistrate seeking police assistance, the
report relays.

In June, the CBI had filed a case against the promoters and
directors of Ramsarup Industries on the allegations of cheating
United Bank of India of INR184.43 crore, the report recalls. The
agency had also conducted searches in 10 premises across five
states as a part of the probe. A case was registered against nine
accused, including promoters and directors of the company, on the
allegations that the accused cheated United Bank by diverting a
total sum of around INR130.95 crore to a group company, also
based in Kolkata.

Lenders to the company include State Bank of India, ICICI Bank,
Punjab National Bank, IDBI Bank, Axis Bank, Bank of India, Canara
Bank, Allahabad Bank and United Bank of India, among others,
according to Financial Express.

In FY17, the company had reported a net loss of INR55.66 crore on
the back of INR2.75 crore in revenues, the report discloses.

Ramsarup Industries, incorporated in 1966, belongs to Shri Ashish
Jhunjhunwala and his family of Kolkata.  The company sells steel
wires and TMT bars, under the brand name 'Ramsarup' and 'Ramsarup
TMT' respectively.


RANCHHOD OIL: CARE Lowers Rating on INR9.50cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ranchhod Oil Mill Company (ROMC), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        9.50        CARE D; ISSUER NOT
   Facilities                        COOPERATING; Revised from
                                     CARE B+ on the basis of best
                                     available information

   Short-term Bank       0.40        CARE D; ISSUER NOT
   Facilities                        COOPERATING; Revised from
                                     CARE A4 on the basis of best
                                     available infomation

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from Ranchhod Oil Mill Company
(ROMC) to monitor the rating(s) vide e-mail
communications/letters and numerous phone calls. However, despite
our repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In line with the extant
SEBI guidelines, CARE has reviewed the rating on the basis of the
publicly available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. Further, ROMC has
not paid the surveillance fees for the rating exercise as agreed
to in its Rating Agreement. The rating on Ranchhod Oil Mill
Company's bank facilities will now be denoted as CARE D/CARE D;
ISSUER NOT COOPERATING.

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

The revision in ratings assigned to the bank facilities of
Ranchhod Oil Mill Company factors in the delays in debt servicing
obligation owing to stretched liquidity.

Key Rating Weaknesses

Delay in servicing of debt obligation:

There are ongoing delays in debt servicing of Ranchhod Oil Mill
Company owing to stretched liquidity.

Setup in 1997, Ranchhod Oil Mill Company (ROMC) is a partnership
firm formed by partners Mr. JeramGami and Mr. Bharat Gami (with
equal profit and loss sharing) for undertaking processing and
trading of agro-products like groundnut, cumin seed, husk and
sesame seed, etc. The firm generates majority of its income from
export to countries like Philippines, China, Gulf countries etc.
ROMC's sole processing facility is located in Keshod region of
Gujarat. The firm operates with installed processing capacity of
37000 metric tonne per annum (MTPA).


S J DEVELOPERS: CRISIL Cuts Rating on INR9MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has been consistently following up with S J Developers and
Housing Private Limited (SJDHPL) for obtaining information
through letters and emails dated March 6, 2017, and March 22,
2017, among others, apart from telephonic communication. However,
the issuer has remained non cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Proposed Term Loan       6        CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded
                                     from 'CRISIL BB+/Stable')

   Term Loan                9        CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL BB+/Stable')

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

Detailed Rationale

CRISIL has downgraded its rating on the long-term bank facilities
of SJDHPL to 'CRISIL B/Stable' from 'CRISIL BB+/Stable'.

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of S J Developers. The revision
in rating reflects expected weak liquidity of the company based
on feedback from its bankers confirming devolvement in non-fund
based bank lines of its group companies that have not been
regularized for more than 30 days.

The downgrade reflects CRISIL's inability to maintain the rating
at 'CRISIL B/Stable' due to inadequate information and lack of
management cooperation, thereby restricting a forward-looking
view on the credit quality of the company. SJDHPL scores Low
('L') on availability of past information. It scores low ('L') on
future information due to unavailability of management's public-
stated stance on expectations, strategic decisions, and capital
expenditure. It also scores low ('L') on the stability attributes
listed in CRISIL's criteria for surveillance of ratings of non-
cooperative issuers. On the basis of this, CRISIL believes the
available information is consistent with a 'CRISIL B' or lower
rating, leading to a downgrade.

Incorporated in 2003, SJDHPL develops real estate. The company is
currently undertaking three projects in and near Bhubaneswar. It
primarily constructs apartments and villas. However, the ongoing
projects comprise commercial buildings.


SAMRA INDUSTRIES: CRISIL Lowers Rating on INR7MM Loan to D
----------------------------------------------------------
CRISIL has been consistently following up with Samra Industries
Limited (SIL) for obtaining information through letters and
emails dated February 7, 2017 and April 10, 2017, among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.

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

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

Detailed Rationale

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

Promoted by Mr. Bimalpal Singh, Mr. Taranbir Singh and Mr. Satbir
Sharma, SIL was incorporated 2012 and processes basmati and non-
basmati rice at its plant in Faridkot (Punjab). SIL has total
milling capacity of 5 metric tonne per hour.


SAURABH PRERNA: CARE Assigns B+ Rating to INR5.06cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Saurabh Prerna Kalyan Samiti, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              5.06      CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of Saurabh Prerna
Kalyan Samiti is primarily constrained by small scale of
operations with low net worth base, leveraged capital structure,
industry and regulatory risk associated with education sector.
The ratings are further constrained by competition from
established & upcoming schools and highly regulated nature of the
educational sector in India. The ratings, however, draw comfort
from experienced management, growing scale of operations,
moderate profitability margins and debt service coverage
indicators.

Going forward, the ability to attract and enroll students as
envisaged shall be the key rating sensitivity. Also, ability to
increase the scale of operations with maintaining profitability
margins and improving the capital structure shall be another key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small though growing scale of operations
The scale of operations stood small marked by total operating
income and gross cash accruals of INR3.42 crore and INR1.15
crore respectively during FY17 (based on provisional results; FY
refer to April 1 to March 31).Though, the risk is partially
mitigated by the fact that the scale of operation is growing
continuously on account of increase in the number of
students.

Leveraged capital structure
The capital structure of the society stood leveraged for the past
three financial years (FY15-F17) on account of debt
funded capex undertaken in past along with low corpus fund. The
debt equity and overall gearing stood at 2.99x as on
March 31, 2017

Regulatory Risk
Despite the increasing trend of privatization in the education
sector in India, regulatory challenges continue to pose a
significant threat to the educational institutes. The regulatory
authority for the schools (CBSE and other State Boards) functions
under the supervision of the Controlling Authority which is
vested with Secretary (Education), Government of India and
Ministry of Human Resource Development.

Competition from existing schools and ability to enroll students
as envisaged
SPKS is expected to face high competition from the existing
established schools in Faridabad, Haryana and nearby locations
like New Delhi etc. The fee structure of the school is very
competitive. The ability of SPKS to enroll the more number of
students at a competitive fee structure depends on its capability
to distinguish itself and leverage on its established brand name
in the market.

Key Rating Strengths

Experienced management

Mr. Himanshu is the founder and chairman of the society and has
experience of around half a decade through his association with
the school. He is further assisted by qualified members of the
society and management to carry out day to day operations.

Moderate profitability margins and debt service coverage
indicators
The profitability margins of the society marked by SBID margin
and surplus margin though fluctuating however remained moderate
for the last three financial years (FY14-FY16). The SBID margin
of the society deteriorated but continues to remain moderate.
Surplus margin improved and stood moderate at 18.79% in FY17 as
against 14.98% in FY16 on account of lower depreciation charges.
Further, the debt service coverage indicators stood moderate as
marked by total debt to gross cash accruals and interest coverage
of 6.34x and 2.53x respectively for FY17.


SHALIMAR PAINTS: CARE Lowers Rating on INR76.25cr Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shalimar Paints Limited (SPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   A. Short-term         76.25       CARE D Revised from
   Bank Facilities                   CARE A3

   B. Long-term Bank
   Facilities          126.26        CARE B; Negative Revised
                                     from CARE BBB

   C. Long/Short term   20.75        CARE B; Negative/CARE A4
   Bank facilities                   Revised from CARE BBB/
                                     CARE A3

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities (A)
above of SPL takes into account the instances of devolvement of
LC in Q1FY18 (refers to the period April 1 to June 30) due to
liquidity mismatch. The ratings for facilities (B) and (C) above
factor in the deterioration in financial performance and debt
coverage indicators. The ratings are also constrained by
volatility in raw material prices and working capital intensive
nature of operations. However, the ratings also take into account
the long track record of the company, established brands and
liquidity support extended by the promoters in the form of
unsecured loans in Q1FY18.

Successfully raising funds through rights issue to support
operations, re-commissioning of the Chennai unit, timely
restoration of the unit in Nasik and receiving the insurance
claim as envisaged would remain the key rating sensitivities.

Outlook: Negative

The 'Negative' outlook reflects expected continuation of stress
on the liquidity till infusion of funds by the promoters and
successful re-commissioning of the Chennai unit. The outlook may
be revised to 'Stable' if the company is able to raise funds as
envisaged and derive benefits from additional capacity to be
commissioned.

Detailed description of the key rating drivers

Key Rating Weaknesses
Delays in servicing bills under LC in Q1FY18
The company delayed in retiring bills under its LC obligations in
Q1FY18 which were however, subsequently regularised. The delay
was on account of liquidity mismatch.

Deterioration in financial performance and debt coverage
indicators in FY17
Operating income declined by around 8% in FY17 on account of
disruption in Nasik unit which was affected by a fire in Q3FY17
and also due to demonetisation. Further, the PBILDT margin also
declined on account of under recovery of fixed overheads. SPL
incurred cash loss in FY17 as against GCA of INR5.94 crore in
9MFY17.

The company is in the process of raising funds of INR50 crore
through a rights issue for which draft letter of offer has
already been submitted to the regulator for approval. Further,
the promoters have extended support through infusion of unsecured
loans.

Working capital intensive nature of operation resulting in high
overall gearing ratio
Overall gearing deteriorated to 3.59x as on March 31, 2017 from
3.07x as on March 31, 2016 due to depletion of net worth and
increase in borrowings.

Overall gearing continued to remain on the higher side due to
working capital intensive nature of the business as reflected by
high average collection period and high average inventory period.
Volatility in raw material prices

The raw materials are organic acids/chemicals, solvents, oils,
pigments and packaging materials. Raw material cost constituted
around 47% of the gross sales in FY17 (52% in FY16). While the
company generally passes on the adverse movement in raw material
prices which are volatile to consumers, there is a time lag.

Key Rating Strengths

Long track record of SPL
Incorporated in 1902, the company has a track record of more than
a century. The paint manufacturing unit of SPL at Howrah was the
first large scale paint manufacturing unit in South East Asia.
Over the years, the company set-up facilities at three other
locations - Nasik, Sikandrabad and Chennai and increased the
capacity of its various units.

Established brands

SPL has a diversified brand portfolio catering to various
segments. The major brands are 'Superlac Hi-Gloss Enamel' &
'G.P. Synthetic Enamel' in decorative enamels, 'Super Shaktiman',
'Xtra Exterior Emulsion' in exterior wall finishes, 'Master
Emulsion' & 'No.1 Silk Emulsion' in interior wall finishes and
'No.1' (specifically catering to the rural demand) in acrylic
distemper.

SPL, incorporated in 1902, belongs to Delhi-based Ratan Jindal
faction of the O.P. Jindal group and Mr. Girish Jhunjhnuwala, a
Hongkong based businessman. Mr. Jhunjhnuwala and Mr. Jindal
currently own 31.15% each of the equity in the company.

SPL is engaged in manufacturing a wide range of paints in both
decorative and industrial paint segments. The company had three
manufacturing facilities at Howrah, Nasik & Sikandrabad. However,
on March 12, 2014 a major fire broke out at the Howrah unit which
caused significant damage to the unit. SPL declared suspension of
work at the Howrah unit on July 16, 2014. Nasik and Sikandrabad
had an installed capacity of 9,660 metric tonne (MT) for
distemper & putty and 36,950 Kiloliter (KL) for enamels,
emulsions, primers and industrial paints, etc.

In Q3FY17, there was a fire in the Nasik unit which resulted in
damage of stock and fixed assets. About 1400 kl/month of capacity
has been impacted due to fire. Presently, the company is
outsourcing majority of the production for the unit which has
impacted the profit margins. The company intends to rebuild the
Nasik plant for which it is actively in the process of tying up
funds.

Further, the Chennai unit which was decommissioned in April 2015
due to technical issues is expected to re-commission and
gradually ramp up production from end of July 2017 onwards.


SHREE BALAJI: CARE Lowers Rating on INR4.80cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Balaji Steel (SBS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facility               4.80       CARE D Revised from
                                     CARE B-

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
Shree Balaji Steel (SBS) factors in the continuous delay in
servicing of debt obligations by the firm.

Establishing a clear track record of timely debt servicing is the
key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weakness
Delay in servicing of debt obligations: As per the interaction
with the banker, there are continuous delays in repayment of term
loan and overdrawals in cash credit facility and the account has
been classified as NPA.

Shree Balaji Steel (SBS), based out of Nagpur, Maharashtra is a
proprietorship entity promoted by Mr. Radheshyam Sarda and
commenced operation in January 1981. SBS is engaged in trading of
iron &steel products such as Thermo Mechanically Treated (TMT)
bars, round bars, angles, channels, beams, flats, sheets, etc.
which find application in industries like construction,
infrastructure and engineering. The entity has its registered
office and servicing facility based in Nagpur, Maharashtra. The
servicing facility is rented and has an area of 800 sq. ft. The
entity procures materials from domestic suppliers players based
in Nagpur and sells its products in the state of Maharashtra and
Chhattisgarh. SBS is managed by Mr. Radheshyam Sarda (aged about
62 years) who has about three and a half decades of experience in
the relevant line of business with adequate support from his sons
Mr. Shishir Sarda and Mr. Hemant Sarda who also has an average
experience of about one and a half decade in the relevant line of
business.


SHREE RAJASTHAN: CARE Lowers Rating on INR105.75cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Rajasthan Syntex Limited (SRSL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities           105.75       CARE D Revised from
                                     CARE BB-

   Short-term Bank
   Facilities            42.72       CARE D Revised from
                                     CARE A4

   Fixed Deposit          1.7925     CARE D Revised from
                                     CARE BB-

Detailed Rationale & Key Rating Drivers

The revision in ratings assigned to the bank facilities of Shree
Rajasthan Syntex Limited (SRSL) factors in the on-going delays in
debt servicing owing to net losses reported by the company over
the last three years on the back of inventory losses and high
interest outgo.

Detailed description of the key rating drivers

Key Rating Weaknesses
Delay in servicing of debt obligation: SRSL has delayed in
servicing of its debt obligation owing to net losses reported
over the past three years resulting in deterioration of debt
coverage indicators, stretched liquidity and high leverage.
Though company, in past, has managed its repayments either
through sale of non-core assets or through infusion of funds,
repayment obligations continue to be significantly higher against
the cash generation resulting in delay in debt servicing.

Incorporated in 1979, SRSL is engaged in the manufacturing of
synthetic (grey as well as dyed) blended yarn, cotton yarn
and PolyPropylene Multi Filament (PPMF) yarn. SRSL manufactures
yarn in the range of 18-30 counts (averaging around 25 counts).
As on March 31, 2016, SRSL had an installed capacity of total
79,800 spindles for synthetic blended yarn and cotton yarn and
2,400 Metric Tonnes Per Annum (MTPA) for PPMF yarn at its
Dungarpur based manufacturing facility.

During FY17, SRSL reported a total operating income of INR258.79
crore (P.Y.: INR261.35 crore) with a net loss of INR0.61 crore
(P.Y.: net loss of INR2.10 crore)


SJP CONSTRUCTIONS: CARE Assigns B+ Rating to INR8.66cr Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of SJP
Constructions Private Limited (SCPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Term Bank
   Facilities             8.66       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SJP Constructions
Private Limited (SCPL) is constrained on account of its Small
scale of operations albeit comfortable profit margins, highly
leveraged capital structure, moderate debt coverage indicator and
moderate liquidity position in FY17 (refers to the period April 1
to March 31). Furthermore, rating is also constrained due to risk
of termination of the lease after expiration of agreement period,
susceptibility of revenues to demand for commercial estate in and
around Surat and dependence on seasonal wind patterns leading to
uneven pay load factor (PLF) and consequent volatility in the
profitability. The rating, however, derives strength from
experienced promoters. The ability of the company to increase the
scale of operations along with improving profitability and
solvency position are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses
Small scale of operations albeit comfortable profit margins
During FY17 (Prov.) the Total operating income stood at INR5.39
crore as against INR4.79 crore during FY16. The PBILDT margin
during FY17 improved to 90.67% as compared to 85.62% during FY16.
During FY17 SCPL recorded a net profit of INR1.25 crore as
against a net loss of INR0.33 crore during FY16 due to improved
profit margins and decreased depreciation and interest costs.

Highly leveraged capital structure and moderate debt coverage
indicators
The capital structure of the company stood leveraged marked by
overall gearing of 6.76 times as on March 31, 2017 on account of
higher debt level as against low networth base. The debt coverage
indicators of the company remained moderate marked by total debt
to GCA stood at 4.55 times as on March 31, 2017 and the Interest
coverage ratio stood at 3.34 times during FY17 (Provisional).

Moderate liquidity position

The current ratio of the company remained moderate at 1.99 times
as on March 31, 2017 as compared to 1.31 times as on March 31,
2016. This is due to the high proportion of inventories in form
of shops let out as on the balance sheet date.

Risk of termination of the lease after expiration of agreement
period
The lease agreements with tenants are for the tenure of eleven
months as per the current market scenario at textile market in
Surat and the lease agreements contain lock in period of the same
tenure. Hence in case of termination of any lease may lead to
short-term liquidity mismatches for the company which could
ultimately impact debt servicing in future.

Susceptibility of revenues to demand for commercial estate in and
around Surat
SCPL earns its substantial revenue from the lease rentals and
other incomes from 238 shops in Radhakrishna Textile Market,
Surat. The company's revenues would be highly dependent upon the
demand of the customers related to textile wholesalers to which
SCPL gives the property on lease to, which is dependent on the
level of economic activity in Surat textile market.

Dependence on seasonal wind patterns leading to uneven pay load
factor (PLF) and consequent volatility in the profitability
The power generation depends on the vagaries of wind patterns,
which leads to variations in the PLF. Generally, the wind
mill enjoys high PLF during June-November period (monsoon
period). However, unfavorable wind conditions results in
lower PLF which may have an impact on the overall output.

Key Rating Strengths
Extensive experience of partners

Mr. Zunjabhai P. Patel has an experience of nearly three decades
in the real estate industry. Prior to incorporation of SCPL, he
was associated with Sagar Builders Pvt. Ltd. since 1984 as a
director which has executed several real estate projects in
Surat. Mr. Sanjaybhai Z. Patel has an experience of two decades
in the real estate industry.

Incorporated in 2005 and based at Surat (Gujarat), SCPL is
promoted and managed by Mr. Zunjabhai P. Patel and Mr. Sanjaybhai
Z. Patel. The Company owns 238 shops of approximately 170 sq. ft.
each in Radha Krishna Textiles Market, Sahara Darwaja Ring Road,
Surat in the middle of the textile cluster. The primary source of
income for SCPL is rental income generated from letting out of
these shops. It has also ventured into the windmill power
generation business since 2013 for which it has set up a 2
windmills of 2 megawatt capacity each at Sangli (Maharashtra).
Windmill business commenced its operations from October 2015
onwards. Power generated from these windmills is directly sold to
Maharashtra State Electricity Authority under the Government of
Maharashtra.

SCPL has registered a total operating income (TOI) of INR5.39
crore and profit after tax (PAT) of INR1.25 crore during FY17
(provisional) as against TOI of INR4.79 crore and net loss of
INR0.33 crore during FY16.


SOORAJ AGRO: CRISIL Raises Rating on INR11MM Cash Loan to BB-
-------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Sooraj
Agro Mills India Private Limited (SAMIPL) to 'CRISIL BB-/Stable'
from 'CRISIL B+/Stable'.

                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Cash Credit              11       CRISIL BB-/Stable (Upgraded
                                     from 'CRISIL B+/Stable')

   Term Loan                 4.63    CRISIL BB-/Stable (Upgraded
                                     from 'CRISIL B+/Stable')

The rating upgrade reflects the steady improvement in the
business profile, supported by growth in revenue and sustenance
of moderate profitability. Revenue rose to an estimated INR52
crore in fiscal 2017, from INR42.5 crore, a year ago, while the
operating margin remained moderate  around 7.5%, resulting in
improved cash accrual of INR1.7 crore estimated for the fiscal.
The rating upgrade further reflects a sustained improvement in
the financial risk profile; networth and gearing improved to
estimated INR6.5 crore and 2.6 times as on March 31, 2017,
against INR3.8 crore and 3.8 times, respectively, in the previous
fiscal, backed by improved accretion.

Key Rating Drivers & Detailed Description

Strengths
* Extensive experience of the promoter: The three decade-long
experience of the promoter, Mr. A Surendran, in the rice milling
business, and healthy relationships with customers and farmers,
ensuring stable growth in revenue, will continue to support the
business risk profile.

* Moderate financial risk profile: The financial risk profile is
moderate, on account of the modest networth, estimated at INR6.5
crore as on March 31, 2017, and average debt protection metrics,
with net cash accrual to total debt and interest coverage ratios
estimated at 0.1 time and 2.3 times, respectively, for fiscal
2017.

Weakness
* Modest scale of operations and susceptibility to volatile raw
material prices: Intense competition in the rice milling
business, has kept the scale of operations modest, as reflected
in estimated revenue of around INR52 crore in fiscal 2017, and
limits the pricing flexibility and hence, profitability. In
contrast, the large players have better efficiencies and pricing
power, owing to economies of scale. Moreover, availability and
price of paddy is also affected by unfavourable climatic
conditions and adverse change in government regulations.

Outlook: Stable

CRISIL believes SAMIPL will continue to benefit from the
extensive experience of its promoters. The outlook may be revised
to 'Positive' if an improvement in revenue and profitability
leads to substantial cash accrual. The outlook may be revised to
'Negative' if low cash accrual, stretch in the operating cycle,
or any large debt-funded capital expenditure, weakens the
financial risk profile, especially liquidity.

SAMIPL, which commenced operations in 2009, mills and processes
paddy into rice, bran, broken rice, and husk. Mr. A Surendran and
his wife, Mrs M Sumandahasini are the promoters.

Profit after tax was INR0.75 core on net sales of INR42.5 crore
for fiscal 2016, vis-a-vis INR0.8 crore and INR42.05 crore,
respectively, in fiscal 2015.


SRI GURU: CARE Lowers Rating on INR30cr LT Loan to 'D'
------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sri Guru Granth Sahib World University (SGGSWU), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities              30        CARE D Revised from CARE B+

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
Sri Guru Granth Sahib World University (SGGSWU) factors in
the on-going delays in the servicing of the debt obligations.

Detailed description of the key rating drivers

Key rating weaknesses
Ongoing delays in debt servicing: There are on-going delays in
the servicing of the term loan obligations.
Weak Financial risk profile: The total income of SGGSWU declined
by ~4% in FY16 owing to lower fee income received. The university
remained in losses at the net level with a reported net deficit
of INR12.15 crore in FY16 as compared to a net deficit of INR8.12
crore in FY15. The higher deficit was primarily due to the
increase in employee and administrative expenses. On account of
the increased interest expenses, SGGSWU also reported a cash
deficit of INR3.86 crore in FY16 as compared to a cash surplus of
INR0.40 crore in FY15. The capital structure of the university
remained comfortable, with both the long-term debt-to-equity
ratio and the overall gearing ratio at 0.31x as on March 31,
2016. The debt coverage indicators, however, remained weak owing
to the deficit at the SBID and cash level.

The establishment of Sri Guru Granth Sahib World University
(SGGSWU) was announced in 2004, subsequent to the formation of
the Sri Guru Granth Sahib Fourth Centenary Memorial Trust (SGGST)
in the same year. The university was established by the trust
under the Punjab State Act 2008 to provide higher education. The
trustees of SGGST include some of the eminent members of the
Shiromani Gurudwara Prabandhak Committee (SGPC). The university
has its campus in Fatehgarh Sahib (Punjab) with academic year
2011-12 being the first academic session. SGGSWU is currently
operating twenty nine departments at its premises in Fatehgarh
Sahib, Punjab, offering various graduate, post-graduate and
doctoral programmes in sciences, arts, languages, etc. The
university is approved under section 2(f) of the UGC (University
Grants Commission) Act, 1956.

SGGSWU registered a total operating income of INR14.14 crore
during FY16 (refers to the period April 01 to March 31) with a
net deficit of INR12.51 crore as against a total operating income
of INR14.65 crore with a net deficit of INR8.12 crore in FY15.


SRI RANGANATHASWAMY: CARE Reaffirms 'D' Rating on INR7.50cr Loan
----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Sri Ranganathaswamy Jewellary Works (SRJW), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             7.50       CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of the rating of the bank facilities of
SRJW takes into account the on-going delays in servicing of debt
obligations.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delays in debt servicing
The firm has been delaying in debt servicing (interest payments
on cash credit facility) due to working capital intensive nature
of operations and cash flow mismatches. The firm is required to
hold sufficient inventory level of jewelry and ornaments to
showcase in showroom. Furthermore, a high proportion of sales and
operating income in jewelry retail business is generated in the
months of festivals and auspicious occasions. Hence, cash flows
and working capital requirements fluctuate during the year.

Weak financial risk profile
The firm continues to have weak debt service indicators in FY16
(refers to the period April 1 to March 31) due to decline in
profitability margins resulting in low cash accruals along with
high utilization of working capital limits. The total debt/GCA
and interest coverage stood at 55.29x and 1.19x, respectively, in
FY16. The capital structure marked by overall gearing also
deteriorated from 4.81x as on March 31, 2015, to 5.53x as on
March 31, 2016, due to withdrawal of capital by proprietor to the
tune of INR0.35 crore in FY16.

Risk associated with fluctuation in gold price
Gold prices have exhibited sharp volatility depending up on the
demand & supply scenario and volatility in the foreign currency
exchange rates. Supply of gold is also being continuously
regulated by the Government of India (GOI) and Reserve Bank of
India (RBI) interventions. The volatility in the gold prices and
the regulatory controls has an impact on the margins of players
in the gems & jewelry industry. The changes in the gold prices
could also impact the profitability to the extent of SRGS's
inventory holding which is very long. The firm has policy of
purchasing gold and silver on bi-weekly basis.

Presence in intensely competitive industry
RGS has its presence in the gold jewelry industry with a marginal
presence in a highly fragmented industry with the presence of
numerous independent small-scale enterprises in the unorganized
sector and some of the large players in organized sector amid
high level of competition. As India's jewelry market matures, it
is expected to get more organized, resulting to a high
competition in the local market. High competition in the
operating spectrum and small size of the firm limits the scope
for improvement in margins and compels the firm to constantly
update the stock of latest and trendy ornaments so as to maintain
its market share.

Key Rating Strengths

Experienced proprietor
Mr Rangachari has experience of around 30 years in the gold and
silver industry; he is also the managing partner in "Sri
Ranganatha gold and silver" which is also involved in the similar
line of business. The showrooms of these entities are situated in
Challakere, Karnataka. He is also part of Board of directors of
"Sri Ranganatha Theater Pvt ltd", a family concern.

Increasing trend in total operating income albeit declining
profitability margin
The total operating income (TOI) of the firm has been witnessing
an increasing trend in the last three years. TOI increased
by about 311% to INR22.94 crore in FY16 from INR 5.58 crore in
FY15 due to high volume sales of jewelry through wholesale
trading at larger premises coupled with an increased demand of
ornaments in domestic market. However, the PBILDT margin has been
witnessing decline due to increased overheads expenses y-o-y
which was significantly influenced by high inventory levels of
gold brought at higher prices and decline in gold price resulting
in a decline of PBILDT margin.

The PBILDT margin declined by 473 bps to 2.65% in FY16 from 7.38%
in FY15. For the same reasons, the company's PAT margin also
declined from 1.42% to 0.42%. During FY17 (provisional), the firm
achieved sales of INR22 crore.

Improvement in working capital cycle in FY16
The working capital cycle of the firm improved from 151 days in
FY15 to 54 days in FY16 on account of improvement in average
inventory period. The average inventory period improved from 131
days in FY15 to 36 days in FY16 at the back of improvement in
sales during the year. SRJW operates in a working capital
intensive industry, associated with high working capital
requirements. The average collection days of the firm stood at 18
days in FY16 as the firm is engaged in retailing of gold and
silver ornaments where majority of sales happen against upfront
cash payments.

Sri Ranganathaswamy Jewellary Works (SRJW) is a proprietary
concern started by Mr. K. Rangachari in September 1989.

The firm is engaged in the business of wholesale trading and
retailing of gold and silver ornaments. It is also engaged in
designing and making gold and silver ornaments as per the request
of customers. Their showroom is situated at Challakere,
Karnataka. Mr. Ranagachari has an experience of around 25 years
in the industry. He is also the Managing Partner of group entity
by name 'Sri Ranganatha Gold and Silver (SRGS)' which is involved
in the similar line of business.

The firm has a total of 10 skilled employees, 8 unskilled
employees and 8 contract labours working for both SRJ and SRGS.
The other associate concerns of the firm are 'Ranganatha Gold
Palace' (RGP) and Sri Ranganatha Theatre Private Limited
(SRTPL). RGP commenced its operations in 2016; it is in jewellery
retailing business. SRTPL operates a movie theatre.


STAR IMPEX: CRISIL Lowers Rating on INR2MM Cash Loan to B
---------------------------------------------------------
CRISIL has been consistently following up with Star Impex (a part
of the Shiraj group) for obtaining information through letters
and emails dated January 20, 2017 and February 15, 2017 among
others, apart from telephonic communication. However, the issuer
has remained non cooperative.

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

   Letter of Credit         3        CRISIL A4 (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL A4+')

   Proposed Short Term      1        CRISIL A4 (Issuer Not
   Bank Loan Facility                Cooperating; Downgraded from
                                     'CRISIL A4+')

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

Detailed Rationale

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

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Star Impex and Shiraj International,
together referred to herein as the Shiraj group. This is because
both the firms have a common management and significant
operational linkages.

The Shiraj group imports and trades in dry fruits such as
almonds, raisins, and pistachios. The group is operating as a
proprietorship under the names Shiraj International and Star
Impex since 1971 and 1997. Mr. Raj Kumar Arora and his son,Mr.
Manav Arora, are actively managing the group's business.


STEEL EXCHANGE: CARE Lowers Rating on INR575.42cr Loan to 'D'
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Steel Exchange India Ltd (SEIL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            575.42      CARE D Revised from CARE BB

   Short-term Bank
   Facilities            347         CARE D Revised from CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
SEIL takes into consideration decline in profitability due to the
subdued steel industry scenario resulting in stretched liquidity
position and consequently leading to delays in servicing of debt
obligations. The ability of the company to successfully implement
Scheme for Sustainable Structuring of Stressed Assets (S4A) and
improve its liquidity profile with subsequent regularization of
debt servicing are the key ratings sensitivities.

Detailed description of the key rating drivers

Key rating weakness:

Decline in profitability leading to delays in debt servicing:
During FY17 (refers to the period April 1 to March 31), liquidity
position of the company continued to remain stretched on account
of decline in the profitability resulting in delays in debt
servicing. The decline in the PBILDT from INR160.80 crore in FY16
to INR79.99 crore in FY17 is due to decline in prices of finished
goods with overall slowdown in steel sector coupled with reduced
power sale resulting in cash flow mismatches for the company.

Leverage capital structure with Scheme for Sustainable
Structuring of Stressed Assets (S4A) under process: The capital
structure of the company significantly deteriorated and remained
leveraged as on March 31, 2017, on account of increase in
borrowings coupled with erosion of net worth due to operational
losses. SEIL has approached the lenders for resolution of debt
under Scheme for Sustainable Structuring of Stressed Assets
(S4A). The company has met all the requirements for S4A scheme
and is company is awaiting the final approval for debt alignment
for SEIL under RBI S4A scheme.

Working capital intensive nature of operations: SEIL operates in
a working capital intensive industry which is generally
associated with high working capital requirements. Operating
cycle of the company remained relatively stressed at 169 days in
FY17 as against 89 days in FY16, on account of high inventory
holding period. With subdued demand, the company has to offer
more credit period which resulted in increase in working capital
days.

Subdued industry scenario: The Indian steel industry has been
struggling over last couple of years due to rising imports
particularly from China, relatively subdued domestic demand,
excess domestic capacity and decline in realizations due to
availability of cheaper imported steel.

Key rating strengths
Experienced and resourceful promoter group: SEIL is the flagship
company of the Vizag Profiles group of companies. The Chairman
and Managing director, Mr. B Satish Kumar is well qualified and
possesses two decades of experience in various industries with
more than a decade of experience exclusively in the steel
industry. Mr. Satish is assisted by a team of professionals who
are responsible for handling the key functional areas and have
experience in their respective fields for more than two decades.

Incorporated in February 1999, Steel Exchange India Ltd (SEIL) is
primarily engaged in the manufacturing of TMT bars apart from
billets, ingots and power generation. The company has a
manufacturing facilities for sponge iron (220,000 Tons Per Annum
(TPA)), billets (250,000 TPA), ingots (90,000 TPA), and TMT bars
(225,000 TPA). Apart from the above, the company has a 60MW
captive thermal power plant (Simhadri Power Limited; now merged
with SEIL) which is located within the premises of integrated
steel facility at Maliveedu village, Vizianagaram District, A.P.
of SEIL. The power plant has capacity to generate 20 MW from coal
fines and char which are residual of the sponge iron activity and
16 MW of power by utilizing hot water gases from Sponge Iron
Kiln. The company also has a 12 MW captive natural gas based
power plant at Kothapeta, E.G. Godavari District, A.P. The
company also deals in sale and purchase of steel products through
its trading division and is recognized as one of the largest
dealers for Rashtriya Ispat Nigam Limited.


STONE INDIA: CARE Lowers Rating on INR34.48cr LT Loan to 'D'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Stone India Limited (SIL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities            34.48       CARE D Revised from CARE BB

   Short term Bank
   Facilities            19.30       CARE D Revised from CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
Stone India Limited (SIL) factors in the instances of the delays
in servicing of its debt obligations.

Detailed description of the key rating drivers

Key Rating Weaknesses
Delays in debt servicing: The liquidity position of the company
has been severely impacted leading to delays in servicing of its
debt obligations.

Stone India Limited (SIL), currently belonging to the Kolkata-
based Duncan Goenka group, was incorporated in 1931. Before
coming under the aegis of the Duncan Goenka group in early 90s,
SIL was a part of Stone-Platt, a UK based group. SIL has been
engaged in the manufacturing of electrical and mechanical
equipment like brake systems, alternators, pantographs, slack
adjusters, etc. for rail road industry, since eight decades. Its
manufacturing facilities are located in Kolkata and Baddi
(Himachal Pradesh). SIL has technical tie-ups with foreign
players for gaining access to new technology and to maintain
business continuity with Indian Railways (IR). The Duncan Goenka
group, which has interest in sectors like tea, paper, chemical
and engineering, is spearheaded by Mr. G. P. Goenka duly
supported by his son Mr. S. V. Goenka.


SUZUKI TEXTILES: CARE Downgrades Rating on INR143.87cr Loan to D
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Suzuki Textiles Limited (STL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities            143.87      CARE D Revised from
                                     CARE C; Stable

   Short term Bank
   Facilities             20.23      CARE D Revised from
                                     CARE A4

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
Suzuki Textiles Limited (STL) takes into account of ongoing
delays in debt servicing as a result of its stressed liquidity
arising from losses.

Detailed description of the key rating drivers

Key Rating Weaknesses

Ongoing delays in debt servicing: Debt servicing of STL is
irregular as reflected by delays in servicing obligation. With
disrupted operations (post fire incident) has resulted into acute
liquidity stress which also led to delays in debt servicing and
there are ongoing delays.

Suspension of manufacturing operation due to fire leading to
stressed financial profile: STL is undergoing acute liquidity
stress as an aftermath of fire incident that had taken place at
its manufacturing facility during March 2016. The fire
incident had destroyed both raw material and finished goods
inventory at its premises along with substantial damage to
its factory building.

STL is a Bhilwara based closely held public limited company
incorporated in 1986 and has an operational track record of
more than two decades. STL has one of the largest installed
weaving capacities in India and also enjoys location
advantage being situated in Bhilwara, a hub for the textile
industry. STL operates in three basic segments - suiting &
shirting, yarn (polyester cotton & cotton) and readymade
garments.


TULSI TRADING: CARE Lowers Rating on INR6.25cr LT Loan to D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Tulsi Trading Co. (TTC), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             6.25       CARE D Revised from
                                     CARE B+;Stable

Ongoing delays in Debt servicing
The revision in the rating assigned to the bank facilities of TTC
is primarily due to irregularity in servicing its debt
obligations.

Rajkot-based (Gujarat), Tulsi Trading Co. (TTC) is a partnership
firm established in 2015 by Mr. Hiren Bhagvanjibhai Sakariya, Mr.
Kiran Bhagvanjibhai Sakariya and Mr. Vasantkumar Talshibhai
Sakaria. The firm trades in agriculture commodities like cotton
bales and cotton seeds. TTC supplies agriculture commodities
across India.


V. S. COTTON: CRISIL Reaffirms 'D' Rating on INR2.64MM Term Loan
----------------------------------------------------------------
CRISIL has been consistently following up with V. S. Cotton
Industries (VSC) for obtaining information through letters and
emails dated March 15, 2017 and April 4, 2017 among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit               2        CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

   Proposed Rupee            .36      CRISIL D (Issuer Not
   Term Loan                          Cooperating; Rating
                                      Reaffirmed)

   Term Loan                2.64      CRISIL D (Issuer Not
                                      Cooperating; Rating
                                      Reaffirmed)

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

Detailed Rationale

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

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of RSV Cotton Industries (RSV) and VSC.
This is because the two entities, together referred to as the
Kakad group, are under a common management and in similar lines
of business, and have significant financial linkages.

RSV, a partnership firm set up by Mr. Vivek Kakad, Mr. Abdul
Qureshi, and Mr. Mohammed Shafikur Rehman in 2013, gins and
presses cotton. The firm commenced operations in November 2013.
Its manufacturing facilities are at Anjangaon in Amravati,
Maharashtra.

VSC, a partnership firm set up by Mr. Sudhakar Kakad and Mr.
Mohammed Ziya Mansuri in 2012, also gins and presses cotton. It
commenced operations in February 2013. Its manufacturing
facilities are at Murtizapur in Akola, Maharashtra.

The daily operations of both entities are managed by Mr. Sudhakar
Kakad and Mr. Vivek Kakad. The Kakad family has been in the
business of cotton trading for more than a decade.


VINDHYAVASINI AUTO: CRISIL Cuts Rating on INR3.5MM Loan to B
------------------------------------------------------------
CRISIL has been consistently following up with Vindhyavasini
Automobiles Private Limited (VAPL) for obtaining information
through letters and emails dated January 19, 2017 and February 9,
2017 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.

                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Cash Credit              3.5      CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL BB-/Stable')

   Inventory Funding        5.0      CRISIL A4 (Issuer Not
   Facility                          Cooperating; Downgraded from
                                     'CRISIL A4+')

   Term Loan                1.5      CRISIL B/Stable (Issuer Not
                                     Cooperating; Downgraded from
                                     'CRISIL BB-/Stable')

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

Detailed Rationale

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

VAPL, incorporated in 2010, is an authorized dealer of MSIL for
sale of its passenger cars. The company presently has four 3S
(sales, spares and services) outlets. The outlets are located in
Sasaram, Arrah, Buxar and Mohania (all in Bihar). The company
commenced commercial operations from December 2011.


WASAN HOSPITALITY: CARE Cuts Rating on INR38cr LT Loan to 'D'
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Wasan Hospitality Private Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank        38.00       CARE D Revised from
   Facilities                        CARE B+; Stable

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to bank facilities of Wasan
Hospitality Private Limited takes into consideration the
delay in interest payment.

Ability of the company to establish a clear track record of
timely servicing of debt obligations with improvement in
liquidity position is key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delay in debt servicing: As per the interaction with the banker,
there has been delay in interest repayment wherein interest
payment for the month of May, 2017 was paid with a delay of 10 to
12 days.

Incorporated in 2010, Wasan Hospitality Pvt. Ltd (WHPL) is
currently developing a 150 rooms five star property at Navi
Mumbai. The hotel will also have three restaurants (including one
24 hour coffee shop), a spa, business center and banqueting
facilities. The hotel will be operated by Taj Group [The Indian
Hotels Company Limited, CARE AA+/A1+; Outlook: stable] under the
brand "The Taj". The company is part of the Wasan Group, which
has varied business interests including hospitality, logistics
and automobile dealership (including passengers/commercial
vehicles of Tata Motors Ltd and Toyota India). The group has
around 45 automobiles showrooms including service stations spread
across western region of Maharashtra.

The overall estimated revised cost of the project is INR 147.77
crore (erstwhile INR 143.06 crore, the reason for increase in
project cost has been mentioned on the page no.10) and is
proposed to be funded through equity, unsecured loans from
promoters and debt in the ratio of 14:26:60x. As on March 29,
2017, the company has incurred cost of INR 82.66 crore (55.93% of
total project cost) and the hotel is expected to be operational
from April 2018 as against envisaged earlier date of October
2016.


ZEDSON AGRO: CRISIL Reaffirms B+ Rating on INR4.30MM LT Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of Zedson Agro Private Limited (ZAPL).

                       Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           3.25      CRISIL B+/Stable (Reaffirmed;
                                   Removed from 'Issuer Not
                                   Cooperating')

   Long Term Loan        4.30      CRISIL B+/Stable (Reaffirmed;
                                   Removed from 'Issuer Not
                                   Cooperating')

   Proposed Long Term     .95      CRISIL B+/Stable (Reaffirmed;
   Bank Loan Facility              Removed from 'Issuer Not
                                   Cooperating')

The rating reflects the company's modest scale and working
capital intensity in operations in the intensely competitive
agro-commodity industry. These weaknesses are partially offset by
moderate financial risk profile and the promoters' extensive
experience.

Key Rating Drivers & Detailed Description

Weakness
* Modest scale of operations in highly fragmented industry: Scale
of operations is modest as reflected in turnover of INR7.46 crore
in fiscal 2016 and its moderate capacity compared to other large
players. Revenues are estimated at INR 8.21 crores in FY17 The
wheat industry is highly fragmented due to low capital intensity
and limited value addition, resulting in low entry barriers.

* Working capital intensive operations: Operations are working
capital intensive, with estimated gross current assets of 244
days as on March 31, 2017. Large working capital was mainly due
to large inventory level during season.

Strengths
* Promoter's extensive experience in the agro-commodity industry:
The promoter's experience of over 10 years and keen grasp of
industry dynamics have helped establish a strong customer and
supplier base.

* Moderate financial risk profile: Financial risk profile is
expected to remain moderate marked by estimated low gearing of
1.19 times as on March 31, 2017, and moderate debt protection
metrics, with interest coverage ratio at 1.55 times and net cash
accrual to total debt ratio at 0.04 time for fiscal 2017.

Outlook: Stable

CRISIL believes ZAPL will benefit from its promoter's extensive
industry experience. The outlook may be revised to 'Positive' if
substantial improvement in the scale of operations and
profitability leads to improvement in the financial risk profile.
The outlook may be revised to 'Negative' if a stretch in working
capital cycle constrains liquidity.

ZAPL was incorporated in October 2014 and processes wheat seeds
at the facility at Surendranagar, Gujarat. The operations are
managed by Mr. Devendrabhai who has over ten years of experience
through another group concern, Aghara Agriculture, which is a
partnership firm, involved in similar activities. The company has
started its operations from February 2015 and has recently set up
grinding mill to make flour from wheat.

ZAPL reported a PAT of INR0.10 crores on revenues of INR7.46
crores for fiscal 2016.

Any other information
ZAPL had revenue of INR7.46 crore in fiscal 2016 and INR8.0 crore
for fiscal 2017, and expects to book revenue of around INR15
crore in fiscal 2018. This increase in sales is due to recently
set up grinding mill and capacity addition through purchase of
machinery for sorting and cleaning wheat, which will support the
business risk profile over the medium term. Operating margin was
moderate at 7.79% for fiscal 2016, and is estimated  at 7.76% for
fiscal 2017.

Operations are expected to remain working capital-intensive, with
gross current assets of 244 days as on March 31, 2017.

Financial risk profile will remain moderate, with a low gearing
and comfortable debt protection metrics. The company undertook a
capacity addition of INR2.75 crore funded by debt of INR1.80
crore in 2016-17. Liquidity is marked by high bank limit
utilisation and just sufficient accruals of INR0.47 crores and
INR0.53 crores against term debt obligations of INR0.37 crores
and INR0.43 crores in FY18 and FY19 respectively.



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


GAJAH TUNGGAL: Moody's Puts Caa1 CFR on Review for Upgrade
----------------------------------------------------------
Moody's Investors Service has placed the Caa1 corporate family
rating (CFR) of Gajah Tunggal Tbk (P.T.) and the Caa1 rating on
its $500 million senior secured notes due February 2018 on review
for upgrade following the announcement of Gajah Tunggal's
refinancing plans.

Moody's has also assigned a Caa1 rating to the proposed senior
secured notes due 2022. The proposed notes have also been placed
on review for upgrade.

RATINGS RATIONALE

On July 31, 2017, Gajah Tunggal announced that it has entered
into a five year $250 million senior secured loan facility and
launched a senior secured notes offering. Proceeds from the loan
and notes will be used to refinance the $500 million notes
maturing in February 2018.

"Gajah Tunggal's announcement of the committed loan facility and
notes offering is a significant step in the refinancing of its
upcoming notes and signals that it has access to multiple funding
options to address the elevated refinancing risk reflected in the
Caa1 rating," says Brian Grieser, a Moody's Vice President and
Senior Credit Officer.

The review for upgrade will focus on Gajah Tunggal's ability to
execute the refinancing, as currently proposed, which would
materially address liquidity concerns arising from the upcoming
maturity.

"Upon execution of the proposed refinancing plan, the CFR and the
2022 notes could be upgraded to B2 to reflect Gajah Tunggal's
solid operating performance, improved credit metrics and reduced
refinancing risk," adds Grieser.

The new capital structure will also address the bullet maturity
that existed with the current capital structure by introducing
the $250 million loan with an amortizing principal balance. That
said, the terms of the new loan introduces tighter quarterly
compliance covenants as well as large quarterly amortization
payments beginning in 2018.

While Moody's believes Gajah Tunggal has the capacity to meet the
debt amortization requirements, which will initially be $12.5
million per quarter beginning in 2018, it will weigh on cash
flows and limit the growth capital spending capacity of Gajah
Tunggal. The timing of the refinancing coincides with Gajah
Tunggal's completion of the multi-year project to build a new
truck and bus radial tire manufacturing facility and expected
decline in growth capital spending in 2017 and 2018.

Failure to complete the proposed refinancing plan in a timely
manner will likely result in a rating downgrade as the company's
probability of default would rise due to its inability to raise
funds necessary to repay the 2018 notes.

The review will conclude once the transaction is substantially
complete, at which time the rating on the existing bonds will be
withdrawn.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.

Gajah Tunggal Tbk (P.T.), headquartered in Jakarta, Indonesia, is
southeast Asia's largest integrated tire manufacturer with
capacity to produce 55,000 tires/day of passenger car radial
(PCR) tires, 14,500 tires/day of bias tires, 95,000 tires/day of
motorcycle tires and 1,500 tires/day of truck and bus radial
(TBR) tires. The company also has capacity to produce 40,000 tons
and 75,000 tons of tire cord and synthetic rubber per year for
both internal consumption and third party sales.

Gajah Tunggal Tbk (P.T.)'s key shareholders include Denham Pte
Ltd (49.5%), a subsidiary of Chinese Tire Manufacturer Giti Tire
(unrated) and Compagnie Financiere Michelin SCmA (10%, A3
stable). The remaining shares are publicly traded on the
Indonesian Stock Exchange.


KAWASAN INDUSTRI: S&P Affirms 'B+' CCR, Revises Outlook to Neg.
---------------------------------------------------------------
S&P Global Ratings said that it revised its outlook on PT Kawasan
Industri Jababeka Tbk. (KIJA) to negative from stable. S&P said,
"At the same time we affirmed out 'B+' long term corporate credit
rating on the company. In line with the outlook revision, we
lowered our ASEAN regional scale rating on the company to 'axBB-'
from 'axBB'.

"The revised the outlook to negative based on our expectation
that KIJA's property sales will stay subdued in second half 2017.
Leverage will remain elevated because we also expect higher
capital expenditure, especially for land acquisitions. As such,
KIJA's debt-servicing capacity will remain thin, with the debt-
to-EBITDA ratio potentially averaging 3.7x over 2017-2019,
compared with our earlier forecast of 3.0x.

"We estimate KIJA's property sales were about Indonesian rupiah
(IDR) 600 billion in the first half of the year, despite a
moderate improvement in market sentiment. Property sales in the
first six months accounted for only 30% of KIJA's full year IDR 2
trillion target, and about 40% of our own expectations. The bulk
of sales will still come from the company's Kota Jababeka Estate,
especially land sales. Sales in KIJA's new industrial park in
Kendal are taking longer to gain traction since the initial
launch in November 2016.

"Although the implementation of a tax amnesty for undeclared
wealth has eliminated uncertainty and boosted consumer sentiment
in Indonesia, we estimate it will take at least another 12 months
for property sales to normalize. We note most property developers
in Indonesia did not meet sales targets in the first half of
2017, which in our view was due primarily to uncertainty arising
from the tax amnesty. Added to this was political uncertainty,
amid an inconclusive result of February elections for Jakarta's
governor, leading to a run-off vote in April. We expect property
sales momentum will gradually improve in Indonesia as these
events have passed, providing more visibility to potential
investors."

A recovery in KIJA's cash flow adequacy and leverage ratios will
hinge on the company's property sales, or prudence in working
capital management and acquisitions. However, in our view, any
improvement in KIJA's sales -- and the potential ensuing benefits
to EBITDA, operating cash flows, and credit metrics -- will take
time given time lags between property sales and revenue and
profit recognition.

S&P said, "In addition, we believe aggressive growth aspirations
amid softer operating conditions compromise a meaningful and
sustainable recovery in KIJA's financial standing. Up to June
2017, KIJA had spent about IDR400 billion on land acquisitions
and maintenance capital expenditure. We now expect KIJA to spend
IDR800 billion-IDR920 billion annually in 2017 to 2019, compared
with our earlier projections of IDR600 billion-IDR750 billion.

"In our base case, we also anticipate a stable debt level of up
to IDR4.3 trillion through 2018. We project negative annual free
operating cash flow of IDR300 billion-IDR400 billion in 2017 and
2018 on the back of elevated capex. In our view, KIJA will
continue to acquire land, especially in its new Kendal project.

"We affirmed the ratings because we expect the company's
competitive advantage as a leading industrial estate player to
remain intact. KIJA's other business, including its
infrastructure services, power plants, and dry-port operations,
continue to perform in line with our expectations. A faulty
boiler that stalled the performance of the company's power plant
in 2016 has been fixed and operations have normalized. Because
KIJA's cash flows from property development are volatile and
cyclical, its infrastructure services, power plants, and dry port
businesses provide a good degree of stability. We expect these
businesses to contribute about 25%-30% to the company's EBITDA in
the next two years.

"Cash levels remain adequate at about IDR1 trillion as at end
June 2017. In our opinion, KIJA will not materially reduce
leverage, especially in light of an improving sentiment in the
property market amid diminishing uncertainty regarding tax
policy. We expect management will prioritize aggressive
reinvestment in the company's operations, especially in
replenishing land reserves, rather than debt repayment, in the
belief that this will help the company consolidate its
competitive advantage."

S&P's base-case scenario includes the following assumptions:

-- Projected Indonesia real GDP growth of 5.0% in 2017,
    increasing to 5.2% in 2018. A stable property market but
    no increase in selling prices.
-- A pick-up in property sales in the second half of 2017, with
    IDR1.5 trillion-IDR1.6 trillion sales for the whole year.
-- Stronger momentum in 2018 could lead to property sales of
    about IDR1.8 trillion.
-- Relatively stable EBITDA margin of 30%-33% in the next 24
    months. No material debt-funded acquisitions.
-- Average IDR/US$ exchange rate of 13,500.

Based on these assumptions, S&P arrives at the following credit
metrics:

-- Ratio of debt to EBITDA of about 3.8x in 2017, before
    improving to around 3.6x in 2018 and 2019.
-- EBITDA interest coverage of 2.9x-3.0x in 2018 and 2019,
    inform 2.7x in 2017.

S&P said, "In our view, KIJA has some flexibility in adjusting
its capital expenditure to preserve cash in times of stress,
hence management's strategy and working capital management will
be paramount in the next 24 months.

"The negative outlook reflects our view that KIJA may not reduce
capital spending in the next 18 months, at a time when we believe
earnings could remain under pressure.

"We may lower the rating on KIJA if the company's debt-to-EBITDA
ratio fails to recover towards about 3.5x by year-end 2018. This
could materialize if the company does not prove disciplined in
terms of capital expenditure, or if revenues do not recover in
2018. We estimate that if property sales will remain below IDR1.3
trillion, and as such any investment above IDR600 billion will
compromise the recovery in the company's leverage.

"We would revise the outlook to stable if the company
demonstrates a commitment to reduce its leverage in 2018, so that
there is a credible path that leverage will be about 3.5x on
Dec. 31, 2018."


TUNAS BARU: Moody's Assigns Ba3 CFR; Outlook Stable
---------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating (CFR) to Tunas Baru Lampung Tbk (P.T.) (TBLA).

At the same time, Moody's has assigned a backed senior unsecured
bond rating of Ba3 to the proposed senior unsecured bonds to be
issued by TBLA International Pte. Ltd., a wholly owned subsidiary
of TBLA. The proposed bonds are unconditionally and irrevocably
guaranteed by TBLA.

The outlook on all ratings is stable.

TBLA will use all of the net proceeds from the bond issuance to
repay and/or reduce its existing secured borrowings.

RATINGS RATIONALE

"TBLA's Ba3 corporate family rating reflects its dual-commodity
business model of crude palm oil and sugar, which are underpinned
by favorable long-term, domestic demand fundamentals," says
Jacintha Poh, a Moody's Vice President and Senior Analyst.

The company is an established integrated palm oil producer, with
operations along the entire value chain, including the production
and sale of upstream byproducts, such as fresh fruit bunches,
crude palm oil, palm kernel oil, stearin and biodiesel, as well
as downstream and branded products such as cooking oil, soaps and
margarine.

TBLA also has a growing exposure in the domestic sugar industry.
Upon the operational commencement of its sugar mill in April
2017, the company produces milled sugar for retail consumption,
in addition to its capability to refine imported raw sugar used
in the food, beverage and pharmaceutical industries.

At March 31, 2017, TBLA had a total oil palm planted area
(including plasma) of around 53,000 hectares (ha) and sugar cane
plantation of 10,705 ha, all located in Indonesia.

However, TBLA's Ba3 rating is constrained by its small scale of
operations relative to domestic and Southeast Asian peers,
exposure to cyclical crude palm oil prices and uncertainties on
securing the import quotas for raw sugar from Indonesia's trade
ministry, which leads to volatile cash from operations.

"TBLA had an elevated leverage profile in 2015 and 2016, as a
result of the company's large-scale investment in its biodiesel
plant, sugar mill and sugar refinery, but Moody's expects to see
leverage fall, as it begins to reap returns from those
investments," adds Poh, also Moody's Lead Analyst for TBLA.

Over the next 12-18 months, TBLA expects to incur maintenance
capex of about IDR30 billion for its sugar business and about
IDR500 billion for its palm oil business. These amounts are
significantly lower than previous years.

Given the volatility of its cash from operations, TBLA had an
adjusted debt/EBITDA of 3.0x for the twelve months ended March
31, 2017 as the company reduced its short-term debt with cash
generated from higher sugar sales in 1Q 2017.

However on a normalized basis, Moody's expects TBLA's adjusted
debt/EBITDA to be around 3.5x in 2017-2018 supported by earnings
improvement from its growing sugar and palm oil businesses, from
4.1x in 2016.

TBLA's liquidity position is weak, with a high reliance on short-
term funding, particularly for working capital. Nevertheless,
Moody's says the company's refinancing risk is partially
mitigated by its strong banking relationships and track record of
rolling over short-term maturities over the last 40 years.

TBLA's proposed senior notes are rated in line with the CFR.
Moody's expects the company's pro-forma secured debt/total assets
to be around 15% and secured debt/total debt of around 40%.
Nonetheless, given the reduction in short-term secured loans and
amortizing repayments on its secured loans, Moody's expects
TBLA's reliance on secured financing to reduce over the next two
years such that secured indebtedness will not be material and
therefore subordination risk is not significant.

The ratings outlook is stable, reflecting Moody's expectation
that TBLA's leverage metrics will remain below 4.0x and that the
company's management will maintain a prudent and conservative
approach towards further investments as TBLA pursues growth.

A ratings upgrade is unlikely over the near to medium term, but
could occur if TBLA successfully executes its business plans and
grows its scale, generates positive operating cash flows, and
demonstrates sustained improvement in its financial profile, such
that adjusted debt/EBITDA is below 2.5x, and EBITA/interest
expense is above 4.0x. In particular, Moody's will look for TBLA
to improve its liquidity profile by reducing its reliance on
short-term funding.

TBLA's ratings could face downward pressure if: (1) the company
fails to implement its business plan, such that earnings growth
is adversely affected; or (2) there is a deterioration in palm
oil and sugar prices, leading to a protracted weakness of TBLA's
operations and credit profile. Moody's considers an adjusted
debt/EBITDA above 4.0x and an adjusted EBITA/interest expense of
less than 3.0x on a sustained basis, as indications that a
ratings downgrade could be necessary.

Additionally, the rating on the proposed bonds could be lowered
if the company increases its reliance on secured funding.

The principal methodology used in these ratings was Global
Protein and Agriculture Industry published in June 2017.

Headquartered in Jakarta, Tunas Baru Lampung Tbk (P.T.) (TBLA)
was incorporated in 1973 and listed on the Indonesian Stock
Exchange in February 2000. The company started its operations as
a pure palm oil player, before expanding into the sugar business
in 2012.

At March 31, 2017, TBLA was 25%-owned by Sungai Budi (P.T.)
(unrated) and 26%-owned by Budi Delta Swakarya (P.T.) (unrated).
The two major shareholders are equally owned by Mr. Widarto, who
serves as Executive Chairman of TBLA, and Mr. Santoso Winata, who
is the President Commissioner of TBLA.



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


EMORI GROUP: Mizuho, SMBC Auction Debt Claims in Emori
------------------------------------------------------
Nikkei Asian Review reports that four major Japanese financial
institutions including Mizuho Bank and Sumitomo Mitsui Banking
Corp. auctioned their debt claims on July 26 in Emori Group
Holdings, a chemical trader that became insolvent in 2015.

Nikkei relates that the lenders -- including Bank of Tokyo-
Mitsubishi UFJ and Sumitomo Mitsui Trust Bank -- will sell their
claims in Emori's Chinese subsidiary, which effectively handles
the company's remaining affairs. The sale is expected to bring no
more than CNY100,000 ($14,810).

In April 2015, Emori filed for court-led business rehabilitation
after recording a loss of over JPY40 billion ($358 million)
associated with manipulated transactions by its Chinese
subsidiary, the report notes. Emori's major banks likely suffered
a loss of several billion yen as well. Though each bank has
essentially finished writing off the bad debt, the auction ends
their involvement, Nikkei says.


* JAPAN: DBJ, Hoshino & Banks to Start Fund for Struggling Hotels
-----------------------------------------------------------------
The Japan Times reports that the government-owned Development
Bank of Japan said July 31 it has teamed up with Hoshino Resorts
Inc. and Japan's three largest commercial banks to launch a fund
to help turn around struggling hotel operators.

The Japan Times relates that the JPY14.14 billion fund will pay
for renovations at hotels in regions doing poorly but deemed to
have the potential to turn around due to their location or other
factors, with the resort operator taking part in their
operations.

The three banks are the Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank
and Sumitomo Mitsui Banking Corp, the report discloses.

The Japan Times says the fund, set to operate for 10 years, will
also help launch new hotels.

Following a fall in visitor numbers in 2011, Japan has seen
foreign tourist arrivals grow by millions each year. But many
hotels and Japanese-style inns in the countryside have been
unable to capitalize on the growth due to competition from large
chains and a lack of expertise on how to cater to foreign guests,
according to The Japan Times.

Hoshino Resorts, an operator of luxury Japanese-style inns
founded in Nagano Prefecture, has been actively turning around
struggling hotels and inns with potential, The Japan Times notes.

A similar fund was set up by Hoshino Resorts and the DBJ in 2015.
But without the commercial banks it was much smaller, at
JPY2 billion, adds The Japan Times.



===============
M A L A Y S I A
===============


1MALAYSIA: Misses $603 Million Payment to Abu Dhabi Fund
--------------------------------------------------------
Elffie Chew at Bloomberg News reports that 1Malaysia Development
Bhd. failed to make a $603 million payment to Abu Dhabi's
sovereign wealth fund as part of a settlement over a debt
dispute, according to a person with knowledge of the matter.

International Petroleum Investment Co. was expected to make an
announcement in London on Aug. 1, said the person who asked not
to be identified as the information isn't public yet, Bloomberg
relates.

The obligation, which was due on July 31, is half the amount 1MDB
and the Malaysian finance ministry agreed to make to IPIC, with a
second payment by the end of 2017, according to Bloomberg.

Bloomberg notes that while Malaysia is regaining favor as
investors shrug off far-reaching investigations into 1MDB and
focus on encouraging signs of an economic turnaround, analysts
have warned that failure to pay IPIC could hurt sentiment and
become a contingent liability for the government.

Five-year credit-default swaps protecting Malaysia's sovereign
notes were at 81 basis points on July 31, near the lowest in
almost three years, Bloomberg discloses citing prices from CMAN
show. 1MDB's 5.99 percent notes due 2022 were little changed at
108.6 to the dollar on Aug. 1, according to prices compiled by
Bloomberg.

IPIC completed a merger with Abu Dhabi sovereign wealth fund
Mubadala Development Co. earlier this year, Bloomberg says.

1MDB and IPIC were locked in a tussle that spilled over to
repayments on two sets of bonds issued by the Malaysian state
fund, leading to a default in April 2016, Bloomberg recalls. IPIC
was seeking $6.5 billion from 1MDB and the Malaysian government
for failure to perform their debt obligations as the dispute
moved into arbitration at the London Court of International
Arbitration, Bloomberg relates.

In April, the parties said they reached an agreement. On top of
the $1.2 billion payment, 1MDB would also assume the coupon and
principal obligations for $3.5 billion of bonds issued by it and
co-guaranteed by IPIC. The settlement would be funded by the sale
of 1MDB's investment fund units, it said then, according to
Bloomberg.

Among the issues between the 1MDB and IPIC were billions in
allegedly missing funds. 1MDB has said it could be a victim of
fraud if payments intended for IPIC never made it there, while
the latter had denied ownership in the company that the Malaysian
investment firm transferred money to, reports Bloomberg.

                           About 1MDB

Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a
government agency. The Company offers financial assistance,
analysis, and advice through investors, corporations, and
consultants to startups and growth companies. 1MDB focuses on
investments with strategic value and high multiplier effects on
the economy, particularly in energy, real estate, tourism, and
agribusiness.

As reported in the Troubled Company Reporter-Asia Pacific on
July 23, 2015, Reuters said Singapore Police Force has frozen two
bank accounts to help with an investigation in to Malaysia's
troubled state-owned investment fund 1Malaysia Development Bhd
(1MDB), which is being probed by authorities in Malaysia for
financial mismanagement and graft.  Reuters said the freezing of
the Singapore bank accounts follows a similar move in Malaysia
where a task force investigating 1MDB said earlier in July that
it had frozen half a dozen bank accounts following a media report
that nearly $700 million had been transferred to an account of
Malaysia's Prime Minister Najib Razak.

The Wall Street Journal reported on July 3, 2015, that
investigators looking into 1MDB had traced close to US$700
million of deposits moving through Falcon Bank in Singapore into
personal bank accounts in Malaysia belonging to Najib.

The TCR-AP, citing Bloomberg News, reported on Nov. 26, 2015,
that 1MDB agreed to sell its power assets to China General
Nuclear Power Corp. for MYR9.83 billion ($2.3 billion) as the
state investment company moved one step closer to winding down
operations after its mounting debt raised investor concern.

Bloomberg related that the company faced cash-flow problems after
a planned initial public offering of Edra faced delays amid
unfavorable market conditions, President Arul Kanda said Oct. 31,
2015.  The listing plan was later canceled as the company opted
for a sale of the assets, Bloomberg noted.

The TCR-AP, citing The Wall Street Journal, reported on April 27,
2016, that the company defaulted on a $1.75 billion bond issue,
triggering cross defaults on two other Islamic notes totaling
MYR7.4 billion ($1.9 billion).

Asian Nikkei Review reported in June 2016 that Malaysia has
replaced the board of 1Malaysia Development Berhad with treasury
officials, paving the way for the dissolution of the troubled
state investment fund.


ASIA BRANDS: External Auditors Raise Going Concern Doubt
--------------------------------------------------------
The Sun Daily reports that Asia Brands Bhd's external auditors
Messrs. UHY, have expressed concern over the company's ability to
continue as a going concern due to losses and net current
liabilities the group and company posted for the financial year
ended March 31, 2017.

The group and company incurred a net loss of RM58.5 million and
RM32.9 million respectively during the financial year ended March
31, 2017 and net current liabilities of RM47.3 million and RM26.3
million for the group and company, respectively, the report
discloses.

"The group had a net current liabilities due to the
reclassification of Islamic Medium Term Notes (IMTN) to current
liability as a results of non-compliance with financial covenants
as required in IMTN. The non-compliance of financial covenants as
required is mainly due to losses incurred. These conditions
indicate that there is a material uncertainty on the group's and
the company's ability to continue as a going concern," the
auditors, as cited by the Sun Daily, said. They have an
unqualified opinion of the financial statements.

According to the report, the group's board said Asia Brands has
started showing positive results and generating positive cash
flow as a result of streamlining our business by disposing off
loss making divisions and re-channelling management time and
energy to turnaround the remaining two divisions.

It has also put in place initiatives to temporary lease 'pop-up'
stores in order to take advantage of retail oversupply and
availability of space in shopping malls, the report says.

The stock was untraded, The Sun Daily notes.

Asia Brands Corporation Berhad manufactures, markets, and sells
lingerie, ladies' leisure wear, children's wear, and care and
related products in Malaysia.


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


BANKS GROUP: Receivers Sell Shoe Stores to Owner's Son
------------------------------------------------------
Rachel Clayton at Stuff.co.nz reports that footwear retailer
Banks Group has been sold by receivers.

According to the report, PWC receiver John Fisk said the stores
were sold to a group of investors led by Jeremy Bank, the son of
former director John Bank.

Stuff relates that receivers PWC said in their first report on
Aug. 1 that the company's rapid expansion was ultimately its
downfall. Selling the company would provide the greatest return
to creditors.

The sale included five stores, plus an online store. Eight other
stores were closed, the report discloses.

Four stores were closed immediately after the company was placed
in receivership.

Out of 170 staff, 141 have been paid a total of NZ$339,000 in
holiday pay and wages, and 63 staff were offered jobs by the new
owners, Stuff discloses.

Stuff says the sale is expected to pay out all secured creditors,
including Bank of New Zealand that is owed NZ$1.6 million.

The failure of Banks Shoes' expansion is part of a broader trend
of New Zealanders spending less on shoes.

As reported in the Troubled Company Reporter-Asia Pacific on
May 30, 2017, John Fisk and David Bridgman, Partners from PwC,
were appointed receivers to Banks Group Limited which trades as
Shoe Connection, SNKR, Banks Shoes and Plimmer Shoes on May 26,
2017. The receivership has occurred following a request to
appoint receivers by the director of the Company.

Banks Group operated from 14 stores in Auckland, Wellington and
Christchurch, in addition to an on-line store, and employed
approximately 170 staff. Banks Group consisted of Banks Shoes,
Shoe Connection, SNKR, and Plimmer Shoes.



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


MACRO REALTY: 981 Singaporeans Among Investors Duped
----------------------------------------------------
Property Guru, citing the Australian Broadcasting Corporation,
reports that Macro Realty Developments, a property company
believed to be engaged in a Ponzi scheme, is being investigated
by Singapore police after it allegedly conned hundreds of
investors, including 981 Singaporeans out of millions.

Controlled by Australian Veronica Macpherson, Macro Realty
Developments received over AUD110 million (SGD119 million) from
more than 1,700 investors, the report says.

Aside from the Singaporeans, there were also 651 investors from
Malaysia, 58 from the UK, 31 from Australia and 17 from Europe.

Property Guru relates that the Singapore-based company offered
investments to finance property developments in Pilbara, Western
Australia, promising annual returns of as much as 18 percent.

KPMG liquidator Hayden White, however, revealed that the
investment scheme, which was heavily promoted since 2014 in
Singapore and Malaysia, collapsed in 2016, with the company owing
creditors over AUD200 million (SGD216 million), Property Guru
discloses.

According to the report, Macro's promotional material in
September 2014 showed that the company had other sources of
revenue and that guarantors owned land assets -- both of which
were not true.  With no new business to meet its mounting
expenses, the company's investment scheme collapsed causing it to
stop payments to investors.

The scheme's collapse resulted in the cancellation of Ms.
Macpherson's passport and financial services licence, while her
other active companies in Australia were wound up by the
Australian Federal Court, the report notes.

As reported in the Troubled Company Reporter-Asia Pacific on
June 1, 2017, the Federal Court of Australia has ordered that
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 ('Macro Group', and Ms. Desiree Veronica Macpherson is a
director of all of these companies) be wound up and that Mr.
Hayden White and Mr. Matthew Woods of KPMG be appointed as
liquidators.

Justice Barker made the orders on the application by the
Australian Securities and Investments Commission mostly
on the basis that the companies are insolvent.

ASIC had previously obtained a range of interim orders in the
Perth Federal Court on July 21, 2016 restraining Ms. Macpherson
and the Macro Group companies (except 511 GTN Pty Ltd) from
providing financial services advice, dealing in financial
products, promoting financial products and otherwise carrying on
a financial services business. ASIC also obtained various travel
restraint and asset preservation orders.



================
S R I  L A N K A
================


SIERRA CABLES: Fitch Affirms BB+ Long-Term Rating; Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Sri Lanka-based cable manufacturer
Sierra Cables PLC's (Sierra) National Long-Term Rating at
'BB+(lka)' with a Stable Outlook.

Sierra's rating reflects its exposure to cyclical end-markets
such as infrastructure and construction, and investments in
international markets where the company has yet to establish
itself. These risks are counterbalanced to an extent by its
growing domestic market share and stable EBITDA margins. Fitch
expects Sierra to maintain its leverage, measured by net adjusted
debt/operating EBITDAR, at less than 2.5x over the medium term
(2.5x as at financial year ended March 2017 (FY17)), which
provides further support to its rating.

KEY RATING DRIVERS

Cyclical End-Market Demand: Sierra's revenue is primarily driven
by construction and infrastructure projects, which tend to be
cyclical as they depend on public and private sector investment
capabilities. Consequently, Sierra's revenue growth has been
volatile, which is reflected in its rating. The domestic
construction sector started recovering from late-2016 on the
resumption of projects that were halted in 2015/16, helping
Sierra to increase its local cable revenue by 21% yoy in FY17
compared with a decline in FY16. Fitch expects the strong growth
trajectory for the cable industry to continue in the medium term
with large projects from institutional customers and expansion in
the country's manufacturing sector.

High Customer Concentration: Sierra is the third-largest cable
manufacturer in the country with a market share of about 18%.
However, its revenue is concentrated on institutional customers
that made up 59% of the total at end-FY17. Despite offering large
contracts that are typically high margin, institutional customers
add revenue volatility compared with Sierra's dealerships (32% of
revenue), which provide stable recurring revenue. The company's
exports, which grew to 9% of revenue in FY17 from 3% the previous
year, have helped to mitigate the customer concentration risk to
an extent.

Cost Pressures Manageable: Rising copper and aluminium prices and
the weakening domestic currency should notably increase Sierra's
cost of sales in the next 12-18 months in the absence of any
hedging mechanism. Global prices of the metals, which constitute
around 50% of Sierra's cable revenue, have been on the rise since
late last year. However, Fitch expects the impact of cost
pressures on Sierra's EBITDA margin to be minimal given its
ability to pass on the cost increases by repricing project
contracts and by adjusting the retail margins in its dealer
channel.

Turnaround in Weak Subsidiary: Sierra Industries Limited, a 100%-
owned subsidiary of Sierra that manufactures PVC pipes, was able
to break even for the first time in FY17, helped by significant
revenue growth. Fitch expects strong growth for pipe
manufacturers in the medium term, supported by large water
development projects launched recently with the funding of
multinational agencies. Fitch estimates the turnaround in Sierra
Industries to contribute around 1pp to the group's overall
EBITDAR margin in the next few years. The group's cash flow
should also benefit from the disposal of Sierra's other loss-
making entity, Sierra Power, if it materialises in the next few
years.

International Expansion Risk Remains: Sierra started commercial
operations at its Kenyan plant early this year after securing a
sizeable contract from the Kenyan government. The management
believes it will be able to win more contracts from power
generation projects given the low electrification in the country
and the inability of local producers to meet the rising demand,
and the new plant has sufficient capacity to undertake such
orders. Fitch expects the Kenyan operations to contribute around
20% to the group's EBITDA once operations stabilise. However, the
project carries significant political and economic risks, which
could negatively impact its successful execution and cash flow
generation.

Sierra will start production in Fiji in late-FY19 and the risks
of that project are comparatively lower due to better country
risk and the stability provided by its local joint-venture
partners.

Stable Leverage Despite Investments: Sierra's net leverage,
measured by net adjusted debt/EBITDAR, was almost flat in FY17 at
2.5x as high working capital investments and capex related to
international expansion offset the company's strong operating
performance. Fitch does not expects a significant improvement in
Sierra's credit matrices until FY20 as continued investments in
working capital to support the export business, expansion in
Kenya and Fiji and a modest level of shareholder returns should
keep free cash flow (FCF) in negative territory.

DERIVATION SUMMARY

Sierra is one of Sri Lanka's leading cable manufacturers and is
backed by an extensive product portfolio and a growing market
share both locally and internationally. Sierra's smaller scale
and size and its significant exposure to cyclical end-markets is
reflected in the multiple notch difference with closely rated
peers such as Abans PLC (BBB+(lka)/Stable) and DSI Samson Group
(Private) Limited (BBB+(lka)/Stable). Sierra's expansion into
international markets, where the company needs to establish its
market position, would also keep its business risk elevated in
the medium term compared with its peers.

Sierra's rating is not notched down to reflect Fitch assessment
of the comparatively weaker credit profile of its parent, Sierra
Holdings Limited, given the weak linkages between the two
entities and the parent's low dependency on subsidiary dividends.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Annual revenue growth of around 39% in FY18 followed by 20% in
   FY19, aided by strong growth in domestic contracts, rising
   export revenue and modest contributions from the Kenyan
   operations.
- EBITDA margin to remain flat in the next two years and expand
   thereafter due mainly to increased contributions from its high
   margin Kenyan operations and the turnaround in Sierra
   Industries.
- Average capex of LKR150 million a year in the next two years
- Dividend payout ratio to average 50% of net income in the
   medium term

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- An upgrade is not anticipated in the short to medium term
until
   there is an improvement in the company's size and scale of
   operations while maintaining the current credit profile.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Adjusted net debt/EBITDAR of over 3.5x on a sustained basis
   (FY17 2.5x).
- EBITDAR coverage (as measured by EBITDAR to (gross interest +
   rent)) falling below 3.0x on a sustained basis (FY17 3.7x).
- Delays or disruptions in its planned Kenyan or Fiji
   expansions, which could result in additional capital calls or
   reduced profitability.

LIQUIDITY

Tight but Manageable Liquidity Position: As at end-March 2017,
Sierra had about LKR98 million of unrestricted cash and LKR578
million in unutilised credit lines to meet LKR79 million of
short-term debt falling due in the next 12 months. However, Fitch
expects the company to generate around LKR450 million in negative
FCF stemming from capex and working capital investments, placing
Sierra in a tight but manageable liquidity position. Liquidity
pressure should ease to an extent if the company is able to
realise the proceeds from the disposal of its power subsidiary.
Sierra has a further LKR1.3 billion of short-term working capital
debt, which Fitch expects will be rolled over by lenders in the
normal course of business.



                             *********

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

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

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


                            *********


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

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

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

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

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268.



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