TCRAP_Public/170831.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 31, 2017, Vol. 20, No. 173

                            Headlines


A U S T R A L I A

A & S ARNOTT: First Creditors' Meeting Set for Sept. 8
BRIGHTSTAR CONSULTING: First Creditors' Meeting Set for Sept. 7
GEOEXCHANGE CONTRACTING: 2nd Creditors' Meeting Set for Sept. 6
HUA CHENG: 14 Buyers in Limbo After Firm Defaults on AUD35MM Loan
OSTWALD BROS: First Creditors' Meeting Set for Sept. 6

PREMIUM AFFORDABLE: First Creditors' Meeting Set for Sept. 6
QUEENSLAND NICKEL: Sale On Hold, But Interest Continues


C H I N A

MIE HOLDINGS: S&P Cuts CCR to SD on Completion of Exchange Offer
MIE HOLDINGS: S&P Ups CCR to CCC- on Completion of Exchange Offer


I N D I A

AANANDA LAKSHMI: CRISIL Reaffirms 'D' Rating on INR18.87MM Loan
AANCHAL CEMENT: Ind-Ra Migrates BB+ Rating to Not Cooperating
AVON TUBETECH: CRISIL Lowers Rating on INR29.5MM Loan to D
BHAGYODAYA MOTORS: CRISIL Reaffirms 'B' Rating on INR15MM Loan
BHALKESHWAR SUGARS: CRISIL Assigns 'D' Rating to INR12.5MM

COSMO FERRITES: CRISIL Lowers Rating on INR11.84MM Loan to B+
COSMO GRANITES: CRISIL Assigns B+ Rating to INR30MM Term Loan
DAGA AUTO: Ind-Ra Migrates BB- Rating to Not Cooperating
DEVI CONSTRUCTION: CRISIL Lowers Rating on INR9MM Cash Loan to B-
DHANSHREE SEEDS: CRISIL Reaffirms 'D' Rating on INR21.39MM Loan

DOLBI'S GRANITE: Ind-Ra Migrates D Rating to Not Cooperating
FARIDABAD STEEL: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
GAWAR CONSTRUCTION: Ind-Ra Withdraws WD Commercial Paper Rating
GRACE SUPPLIERS: Ind-Ra Migrates BB- Rating to Not Cooperating
JAGRUTESHWAR METALS: CRISIL Reaffirms B Rating on INR5.5MM Loan

KAMADHENU JEWELLERY: CRISIL Assigns B Rating to INR5.0MM Loan
KIRUBHA EXPORTS: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan
KPM PROCESSING: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
MADHOOR BUILDWELL: CRISIL Lowers Rating on INR14MM Loan to 'D'
MAHAVEER COTTS: CRISIL Reaffirms 'B' Rating on INR6MM Cash Loan

MEP INFRASTRUCTURE: CRISIL Cuts rating on INR2.52BB Loan to D
PARKASH PULSES: Ind-Ra Affirms B Issuer Rating, Outlook Stable
PATEL MOTORS: Ind-Ra Migrates BB Issuer Rating to Not Cooperating
PRASANNA EDUCATION: CRISIL Reaffirms D Rating on INR10MM LT Loan
R H SOLVEX: Ind-Ra Migrates BB+ Rating to Not Cooperating

RAI INFRASTRUCTURE: CRISIL Reaffirms B Rating on INR7.60MM Loan
REBELL JEWELS: CRISIL Assigns B+ Rating to INR8MM Cash Loan
SCORODITE STAINLESS: CRISIL Lowers Rating on INR23MM Loan to D
SHESHADRI INDUSTRIES: CRISIL Reaffirms D Rating on INR34.54M Loan
SHITAL GEMS: Ind-Ra Migrates D Rating to Issuer Not Cooperating

SHREE MANIBHADRA: CRISIL Reaffirms 'D' Rating on INR53MM Loan
SHRI KARVIR: CRISIL Reaffirms B+ Rating on INR12MM Cash Loan
SPENTIKA CERAMIC: CRISIL Reaffirms 'B' Rating on INR6MM LT Loan
SUNCO ENTERPRISES: CRISIL Assigns B+ Rating to INR7MM Cash Loan
SURYAVANSHI SPINNING: CRISIL Reaffirms D Rating on INR14.33M Loan

SWARUP INTERNATIONAL: CRISIL Reaffirms B+ Rating on INR3.1MM Loan
VENKATA SAI: Ind-Ra Migrates D Rating to Issuer Not Cooperating
VENTURE IMPEX: CRISIL Assigns B+ Rating to INR9.9MM Cash Loan
VIDHATRI MOTORS: CRISIL Reaffirms 'B+' Rating on INR7.50MM Loan
VINIT FABRICS: Ind-Ra Moves 'BB' Issuer Rating to Not Cooperating

YAK GRANITE: CRISIL Lowers Rating on INR6MM Cash Loan to 'C'

* RBI Sends Second List of 40 Defaulters to be Referred to NCLT


J A P A N

TOSHIBA CORP: Western Digital Not to Seek Veto Power in Deal
TOSHIBA CORP: May Not Finalise Chip Unit Sale By Aug. 31 Deadline
TSUKUBA BRAINS: Cord Blood from Bankrupt Group Resold to Clinics


N E W  Z E A L A N D

MERCER GROUP: Posts NZ$6.9MM Net Loss in Year Ended June 30


P H I L I P P I N E S

CEBU AIR: Egan-Jones Hikes Sr. Unsec. Debt Rating to BB+


                            - - - - -


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


A & S ARNOTT: First Creditors' Meeting Set for Sept. 8
------------------------------------------------------
A first meeting of the creditors in the proceedings of A & S
Arnott Pty Ltd trading as Morpeth Sourdough will be held at
Level 1, 14 Watt Street, in Newcastle, NSW, on Sept. 8, 2017, at
10:00 a.m.

Bradd William Morelli of Jirsch Sutherland was appointed as
administrator of A & S Arnott on Aug. 29, 2017.


BRIGHTSTAR CONSULTING: First Creditors' Meeting Set for Sept. 7
----------------------------------------------------------------
A first meeting of the creditors in the proceedings of Brightstar
Consulting Group Pty Ltd will be held at the offices of AMB
Insolvency, Level 1, 6 Allison Street, in Bowen Hills, QLD, on
Sept. 7, 2017, at 11:00 a.m.

Anne Marie Barley of AMB Insolvency was appointed as
administrator of Brightstar Consulting on Aug. 28, 2017.


GEOEXCHANGE CONTRACTING: 2nd Creditors' Meeting Set for Sept. 6
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Geoexchange
Contracting Pty Ltd has been set for Sept. 6, 2017, at
11:30 a.m., at the offices of Chartered Accountants Australia and
New Zealand, Level 10, 60 Marcus Clarke Street, in Canberra.

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 Sept. 5, 2017, at 12:00 p.m.

Henry Peter Mckenna and Sule Arnautovic of Jirsch Sutherland were
appointed as administrators of Geoexchange Contracting on Aug. 3,
2017.


HUA CHENG: 14 Buyers in Limbo After Firm Defaults on AUD35MM Loan
-----------------------------------------------------------------
Su-Lin Tan at Australian Financial Review reports that at least
14 buyers who bought apartments off the plan in a tower in
Sydney's south-west are facing the loss of their investment after
the developer defaulted on a loan from a British Virgin Island
lender, backed by a Chinese bank.

AFR says the default raises questions about the protection for
foreign and migrant buyers rushing to buy in Australia and the
role of "shadow" lenders who are increasingly stepping in to lend
in sectors vacated by mainstream Australian banks.

According to AFR, the home buyers, mostly Mandarin speakers, all
with Chinese names, are considering legal action after Hua Cheng
International Holdings Group, the developer of the 100-unit Royal
Plaza property in Woodville Street, Hurstville, defaulted on a
loan to Chinese-backed Super Vision Resources.

In July, Super Vision appointed Ernst & Young and Hall Chadwick
as receiver and liquidator, who have now seized the 14 apartments
that were purchased off the plan at a big discount, as well as
about another 16 unsold apartments, AFR recalls. The buyers, who
spoke on condition of anonymity, are now concerned the receiver
could auction off the apartments to pay the lender, says AFR.

AFR notes that when the 14 buyers paid for their discounted
apartments back in 2013, the strata plan for the property had not
been registered. While they paid for them in full, they have not
received title and did not complete the transactions.

Some of the buyers said they hired lawyers before they bought the
apartments and despite being warned not to buy them, they did.
Others bought the units without legal advice.

Lawrence Xu, the chief executive of Hua Cheng, said in an
interview in Mandarin that he was unable to get development and
construction finance from the big four local banks but found
AUD35 million from British Virgin Islands registered Super
Vision, according to the report. They agreed on an interest rate
of 15 per cent. Super Vision is a subsidiary of the state-owned
Chinese financial services firm, China Orient Asset Management
Corporation, based in Beijing, AFR says.

The report says Mr.  Xu blamed the lender for the default. He
said that after he ran into cost overruns he renegotiated funding
from Super Vision but the funds arrived 5 months late, resulting
in construction delay and slow settlement of apartments.

"They want to enter the housing market in Australia, but they
don't really understand the rules and regulations or the way
development works here," the report quotes Mr. Xu as saying.

"The timing of the additional funding was critical to the
development. They even sent people over here to observe the
project. But they took months to approve the loan, there were so
many layers.

"I made numerous trips to Beijing and Hong Kong and each time we
agreed in principal, they changed their minds."

AFR relates that Mr. Xu also said the numerous changes in staff
at Super Vision meant there was no paper trail of the commitment
to fund.

The Australian Financial Review tried to contact China Orient
Asset Management Corporation but did not get a response.

To help pay down the loan to Super Vision, Hue Cheng said that in
2013 it sold 14 two-bedroom apartments at a discounted price of
AUD450,000 each to Chinese buyers paid for upfront, the report
says. The normal sale price was AUD650,000 to AUD700,000 each,
the sales agent appointed to sell the units at the time, World
Square Property Group said. One of the directors at the agency
also bought units.

The buyers said they were looking at the role of both the lender
and the developer in this imbroglio, adds AFR.


OSTWALD BROS: First Creditors' Meeting Set for Sept. 6
------------------------------------------------------
A first meeting of the creditors in the proceedings of Ostwald
Bros. Civil Pty Ltd, Ostwald Bros. Pty Ltd, and Ostwald
Construction Materials Pty Ltd will be held at All Seasons
Function Centre, 302 North Street, in Toowoomba, QLD, on
Sept. 6, 2017, at 2:00 p.m.

Derrick Craig Vickers and Sam Andrew Marsden of
PricewaterhouseCoopers were appointed as administrators of
Ostwald Bros. on Aug. 25, 2017.


PREMIUM AFFORDABLE: First Creditors' Meeting Set for Sept. 6
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Premium
Affordable Living 2 Pty Ltd will be held at the offices of
Deloitte Financial Advisory Pty Ltd, 8 Brindabella Circuit,
Brindabella Business Park, in Canberra Airport, ACT, on
Sept. 6, 2017, at 11:00 a.m.

Ezio Senatore of Deloitte Financial was appointed as
administrator of Premium Affordable on Aug. 27, 2017.


QUEENSLAND NICKEL: Sale On Hold, But Interest Continues
-------------------------------------------------------
The Australian reports that the prospect of Clive Palmer selling
his Queensland Nickel refinery has been put on hold for a month,
but there's speculation a number of potential buyers are already
looking at the asset.

The Yabulu nickel refinery near Townsville has been mired in
controversy under Mr.  Palmer's ownership and was put into
administration and closed last year, the report says.

The Australian says the refinery was given a replacement value of
AUD5.27 billion just two years ago but that has since been
reduced to AUD790 million over the past few months.

According to the report, liquidation firm PPB Advisory is
overseeing the process and also trying to convince the Queensland
Supreme Court to freeze AUD200 million worth of assets belonging
to Mr. Palmer.

Supreme Court judge John Bond was told this week that the Yabulu
refinery needed to spend at least AUD50 million on upgrades to
get it running again.

The Australian relates that independent experts also estimated
that a sale could take at least six months.  But deal-makers
think a number of potential buyers could be keen and would have
already run the numbers on Yabulu, given the high-profile nature
of the court case.

In a twist that would be a case of turning back time, there is
talk that South32 could look at Yabulu. It knows the asset well,
given BHP owned the company until 2009.

When the refinery shut last year, 800 jobs were cut in the region
around Townsville, The Australian says.

According to The Australian, the two other potential buyers would
probably cause a headache for the Foreign Investment Review Board
if a bid was to emerge.

There is talk that the Russian group Norilsk Nickel, now known as
Nornickel, could look at Yabulu. It has operated in Australia
before, The Australian notes.

In 2013, the company decided to sell its Australian assets, which
included the Thunderbox mine and enrichment plan as well as the
Lake Johnston, Cawse and Avalon nickel assets. It also offloaded
the Black Swan and Silver Swan production facilities to Poseidon
Nickel. The company says it still holds the development licence
for the Honeymoon Well deposit in WA.

The Russians buying a nickel refinery business from Mr. Palmer
would pose a tricky political conundrum for the Coalition
government, relates The Australian.

China's largest nickel producer Jinchuan Group is also being
mentioned as an interested party, and resources investments were
named recently by China's State Council as an area where the
foreign restrictions would not be exercised too strictly.

                      About Queensland Nickel

Headquartered in Townsville, Australia, Queensland Nickel engages
in the production and marketing of nickel and cobalt.  It owns
and operates the Palmer Nickel and Cobalt Refinery in Queensland,
Australia. It is owned by businessman and politician Clive
Palmer.

The Company experienced financial difficulties and Palmer sought
assistance from the Queensland Government in late 2015 but was
rejected.  The Company's ownership was later transferred to a new
company named Queensland Nickel Sales Pty Ltd in a joint venture
between two of Clive Palmer's companies, QNI Resources Pty Ltd
and QNI Metals Pty Ltd, with the directorship going to Palmer's
nephew Clive Theodore Mesnick.

On January 19, 2016, the Company entered into voluntary
administration. John Park, Stefan Dopking, Kelly-Anne Trenfield
and Quentin Olde of FTI Consulting were appointed as voluntary
administrators of the Company.

FTI as administrators issued a report in early April 2106 that
the Company "incurred debts of AUD771 million after going
insolvent in November [2015]."

On April 22, 2016, the Companies' creditors voted for
liquidation.

FTI went from being administrators to liquidators at the second
creditors meeting in April.



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


MIE HOLDINGS: S&P Cuts CCR to SD on Completion of Exchange Offer
----------------------------------------------------------------
On Aug. 28, 2017, S&P Global Ratings lowered its long-term
corporate credit rating on MIE Holdings Corp. to 'SD' from 'CC'.
S&P said, "At the same time, we lowered our issue rating on the
company's outstanding senior unsecured notes to 'D' from 'CC'.
MIE is a China-based oil and gas producer.

S&P said, "We lowered the ratings because MIE has completed an
exchange offer for its senior unsecured notes due 2018 and 2019.
The company repurchased at a discount US$18.3 million of the 2018
notes and US$160.1 million of the 2019 notes. We view the
transaction as a distressed exchange because investors received
less than that promised for the original securities."

Under the upgraded terms of the offer, MIE has provided a cash
tender offer of US$700 per US$1,000 of the principal amount for
its outstanding 6.875% senior notes due 2018. The offer includes
US$10 per US$1,000 of the principal amount of the notes as a
consent payment for eliminating all of the restrictive covenants
contained in the 2018 indenture, and certain of the related
events of default with respect to the 2018 notes. MIE also made a
cash tender offer of US$450 per US$1,000 of the principal amount
and an extra US$200 as an early tender payment for its
outstanding 7.50% senior notes due 2019.

Certain noteholders did not consent to the exchange, leaving
approximately US$181 million of the 2018 notes and US$316 million
of the 2019 notes outstanding.

MIE used a secured US$147 million facility from a financial
institution for the distressed exchange payment.


MIE HOLDINGS: S&P Ups CCR to CCC- on Completion of Exchange Offer
-----------------------------------------------------------------
S&P Global Ratings said it raised its corporate credit rating on
MIE Holdings Corp. to 'CCC-' from 'SD' and raised the issue
ratings on its notes to 'CCC-' from 'D'. This follows the
completion of an exchange offer to holders of the company's 2018
and 2019 notes.

S&P said, "Our ratings on MIE reflect our view that the company's
non-repayment risk in the next six months remains high, in the
absence of unanticipated significantly favorable changes in the
company's circumstances. MIE's capital structure is still
unsustainable, despite the recent completion of its exchange
offer."

MIE's overall debt level remains high because the company used a
secured facility granted by a financial institution to make the
distressed exchange payment. Following the completion of this
transaction, US$181 million and US$316 million remain outstanding
for the 2018 and 2019 notes, respectively.

S&P said, "We believe MIE could continue to face a material
liquidity deficit over the next 12 months. While company's
secured facility has longer-term maturity than its existing
notes, this does not alleviate MIE's near-term liquidity
pressure.

"After the exchange offer, we estimate MIE has about Chinese
renminbi (RMB) 300 million cash on hand. The company generated
positive operating cash flow on stronger oil prices in the first
half of 2017, however we anticipate operating cash flows will
remain weak because we do not expect oil prices to increase
significantly over the next 12 months. The company's US$181
million senior notes are due in February, 2018.

"The negative outlook reflects our view that there is a high
likelihood that the company could default on its 2018 notes, in
the absence of unanticipated significantly favorable changes in
the company's circumstances. MIE's debt leverage remains
unsustainable and liquidity pressure is high.

"We could lower our rating on MIE if we believe a default on the
company's notes is virtually certain, or if the company announces
a debt restructuring plan which we view as distressed exchange.

"We could upgrade the company if its liquidity improves such that
we do not see non-repayment risk on a six-month horizon."



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


AANANDA LAKSHMI: CRISIL Reaffirms 'D' Rating on INR18.87MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D' rating to the bank
facilities of Aananda Lakshmi Spinning Mills Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit           14.29      CRISIL D (Reaffirmed)
   Long Term Loan        18.87      CRISIL D (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility     4.84      CRISIL D (Reaffirmed)

The rating reflects current delays by ALSML in servicing its
debt. The delays have been caused due to ALSML's weak liquidity.

The ratings reflects weak financial risk profile marked by modest
net worth, high gearing and weak debt protection metrics. The
rating also reflects susceptibility of operating margin to
volatility in raw material prices. However, it benefits from
extensive experience of ALSML's promoters in the textile
industry.

Key Rating Drivers & Detailed Description

Weakness

* Delay in debt servicing
SIL has been delaying in repayment of interest and principal
amount of its term loan facility. The same is on account of
company's weak liquidity.

* Weak financial risk profile
The company's financial risk profile is weak marked by modest net
worth, high gearing and weak debt protection metrics. Net worth,
as on March 31 2017, on account of accumulated losses. Debt
protection metrics is weak on account of operating losses in
Fiscal 2017.

CRISIL believes that financial risk profile will remain weak over
the medium term.

* Susceptibility of operating margin to volatility in raw
material prices
Raw material costs accounted for around 68 per cent of ASLML's
revenue in 2016-17 Cotton prices have been highly volatile in
past which exposes the company to the risk arising due to any
change in cotton prices.

Strengths

* Extensive industry experience of promoters
Extensive experience of promoters of more than 35 years has
helped the company in building strong customer and supplier
relationships. Established relationship with customers and
suppliers help the company in uninterrupted raw material
procurement and repeated orders from customer.

CRISIL believe that extensive industry experience of promoter
will continue to benefit the company over the medium term.

ALSML's, incorporated in 2013, is engaged in cotton yarn
spinning. Manufacturing unit is located at Bhongir. The company
is promoted by Mr. D.K Agarwal.

ALSML reported net losses of INR16.22 crore on revenue of
INR37.95 crore in fiscal 2017, against INR8.9 crore and INR82.6
crore in fiscal 2016.


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

-- INR100 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND B+(ISSUER NOT COOPERATING)
    rating; and

-- INR132.19 mil. Non-fund-based working capital limit migrated
    to non-cooperating category with IND A4(ISSUER NOT
    COOPERATING) rating.

Note: ISSUER NOT COOPERATING:  The ratings were last reviewed on
July 27, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2010, ACL is engaged in chicken processing in
Kolkata, West Bengal.


AVON TUBETECH: CRISIL Lowers Rating on INR29.5MM Loan to D
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Avon Tubetech Private Limited (ATPL) to 'CRISIL D/CRISIL D'
from 'CRISIL BB+/Stable/CRISIL A4+'.

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

   Bill Discounting         2       CRISIL D (Downgraded
                                    from 'CRISIL BB+/Stable')

   Buyer's Credit          21.5     CRISIL D (Downgraded
                                    from 'CRISIL BB+/Stable')

   Overdraft               19.5     CRISIL D (Downgraded
                                    from 'CRISIL BB+/Stable')

   Term Loan               29.5     CRISIL D (Downgraded
                                    from 'CRISIL BB+/Stable')

   Working Capital          1.5     CRISIL D (Downgraded
   Demand Loan                      from 'CRISIL BB+/Stable')

The downgrade reflects delays in servicing debt obligations on
account of its stretched liquidity position.

The ratings reflects ATPL below-average financial risk profile
because of below-average debt protection metrics and high term
debt repayment obligation and working capital-intensive
operations leading to weak liquidity profile. These rating
weakness are partially offset by established market position of
ATPL in the cold drawn welded (CDW) tubes industry aided by
longstanding experience of the promoters and a well-diversified
revenue profile.

Key Rating Drivers & Detailed Description

Weakness

* Delay in debt servicing: There have been instances of delay in
debt servicing because of stretched liquidity. That's primarily
due to working capital intensive operations which is reflected in
estimated high gross current days (GCA) of 192 days as on March
2017. Liquidity is likely to remain under pressure over the
medium term because of working capital intensive operations.

* Large working capital requirement: Gross current assets are
estimated at 192 days due to large inventory and receivables of
90 days and 85 days, respectively, as on March 31, 2017 adds to
the working capital intensity. Working capital requirement will
remain large over the medium term.

* Average financial risk profile: Financial risk profile is
expected to remain average, with net worth and gearing likely to
be at INR38.92 crore and 1.44 times, respectively, as on
March 31, 2017. Debt protection metrics also estimated to be
average, with net cash accrual to adjusted debt ratio of 0.12
time and interest coverage ratio of 1.95 times for fiscal 2017.

Strengths
* Extensive experience of partners: The promoters have an
extensive experience of over 22 years in the Cold drawn welded
(CDW) tubes industry. This has helped them in establishing a
strong customer base as well as setting up relations with local
suppliers. Their experience has also helped them gain a sound
understanding of the market dynamics.

ATPL was set up in 1995 as a proprietorship firm and was
reconstituted as a private limited company in 2000. The key
promoters, Mr. Ashwani Mahajan and his brother, look after
operations. The company manufactures ERW, CDW, and CDS tubes for
diversified end-user industries such as cycles, automobiles,
earthmovers, and allied engineering. Its manufacturing facilities
are in Faridabad, Haryana.


BHAGYODAYA MOTORS: CRISIL Reaffirms 'B' Rating on INR15MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Bhagyodaya Motors
Private Limited (BMPL; part of the Bhagyodaya group) continue to
reflect the Bhagyodaya group's below-average financial risk
profile marked by high total outside liabilities to tangible net
worth (TOLTNW) ratio and weak debt protection metrics, and
exposure to intense competition in the automobile dealership
segment. These rating weaknesses are partially offset by the
Bhagyodaya group's established position in the automobile
dealership market for Tata Motors Ltd (TML; rated 'CRISIL
AA/Positive/CRISIL A1+') in north Karnataka.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             15        CRISIL B/Stable (Reaffirmed)

   Channel Financing        1.75     CRISIL A4 (Reaffirmed)

   Long Term Loan            .85     CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility       1.85     CRISIL B/Stable (Reaffirmed)

   Standby Line of Credit   1.00     CRISIL B/Stable (Reaffirmed)

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of BMPL and Bhagyodaya Trokhos Pvt Ltd
(BTPL). This is because the two companies, together referred to
as the Bhagyodaya group, are in the same line of business, under
the same management, and have significant operational linkages.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile
The Bhagyodaya group's financial risk profile is weak, marked by
a high total outside liabilities to tangible net worth (TOLTNW)
ratio and weak debt protection metrics. CRISIL believes that the
group's financial risk profile is expected to remain weak due to
its working capital intensive operations and high reliance on
external bank debt.

* Susceptibility to intense competition in automobile dealership
segment
The Bhagyodaya group's operations are concentrated in the North
Karnataka region, where it has all its sales outlets and service
centres. This exposes the group to geographical concentration as
any deterioration in the economy of the region will impact
automobile sales, which would affect automobile dealers such as
the Bhagyodaya group. Furthermore, the group has only Tata Motors
Ltd (TML) dealership, and has weak bargaining power in its
transactions with TML. CRISIL believes that the Bhagyodaya
group's business risk profile will remain constrained over the
medium term on account of its exposure to risks related to
geographical and supplier concentration, and to intense
competition in the automobile dealership segment.

Strengths

* Established position in automobile dealership market for TML in
North Karnataka
The promoters of the Bhagyodaya group have over a decade of
experience in the automobile dealership business. Over these
years, the group has been able to build a strong brand image
among its customers in North Karnataka. It is the exclusive
dealer for TML's passenger cars and LCVs in three districts of
North Karnataka. CRISIL believes that the Bhagyodaya group will
benefit from its established position as TML's dealer in the
North Karnataka region, over the medium term.

Outlook: Stable

CRISIL believes that the Bhagyodaya group will continue to
benefit over the medium term from its established position in the
automobile dealership market for TML in North Karnataka. The
outlook may be revised to 'Positive' if the group's volumes and
operating margin improve substantially or in case of any
significant equity infusion by the promoters, resulting in
improvement in its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if the
Bhagyodaya group's revenue and profitability decline
significantly, or if the group undertakes a large debt-funded
capital expenditure programme, resulting in deterioration in its
capital structure and cash accruals.

Set up in 1998 as a partnership firm, BMPL was reconstituted as a
private limited company in 2002. The company is the exclusive
authorised dealer for TML's passenger car in three districts -
Bellary, Koppal, and Raichur (all in Karnataka).BTPL was
incorporated in 2006. The company is the exclusive authorised
dealer for TML's light commercial vehicles (LCVs) in Bellary,
Koppal, and Raichur.

Profit after tax (PAT) and net sales are estimated at INR0.29
crore and INR110 crore, respectively, for fiscal 2017; PAT was
INR0.14 crore on net sales of INR113 crore for the previous
fiscal.


BHALKESHWAR SUGARS: CRISIL Assigns 'D' Rating to INR12.5MM
----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facility of
Bhalkeshwar Sugars Limited (BSL).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Term Loan               12.5       CRISIL D

The rating reflects instances of delay in repayment of the
company's term debt obligations on account of weak liquidity. The
rating also factors in weak financial risk profile, large working
capital requirement and susceptibility to cyclicality and
regulatory changes in the sugar industry.

However, these weaknesses are partially offset by the
entrepreneurial experience of its promoters.

Key Rating Drivers & Detailed Description

Weakness

* Delays in repayment of term debt obligations: Delays in
repayment of term debt obligations on account of weak
liquidity'insufficient cash accrual against term debt
obligations.

* Weak financial risk profile: Financial risk profile is weak on
account of aggressive capital structure and subdued debt
protection metrics. Gearing, at over 4 times as on March 31,
2017, is expected to deteriorate further on account of ongoing
debt-funded capital expenditure. Thus, debt protection metrics
particularly interest coverage ratio has remained subdued about
0.14 times during fiscal 2017.

* Large working capital requirement: Operations are working
capital intensive as reflected by high gross current assets of
over 500 days as on March 31, 2017.

* Cyclicality and regulatory changes in the sugar industry
The sugar industry is highly regulated in terms of cane prices,
export/import policy for sugar, and sugar release mechanisms.
This affects the credit quality of players in the industry.  The
revenue of BSL has declined to about INR62 crore during FY 2017
against INR117 crore in the preceding year on account of shortage
of raw materials.

Strength

* Entrepreneurial experience of the promoters
The rating factors the entrepreneurial experience of the
promoters.

Incorporated in 2000, Karnataka-based BSL is promoted by Mr.
Prakash Khandre. It manufactures sugar and has a cane crushing
capacity of about 2500 tonne per day (TPD) and a 14 megawatt co-
generation power plant.  It is undertaking a debt-funded capital
expenditure plan to enhance the sugar crushing capacity up to
4000 TPD and setting up distillery units with total capacity of
60 kilo litres per day. Commercial operation of the distillery is
expected to commence from January 2018.

The company has reported loss of INR15 crore on net sales of
INR62.0 crore in fiscal 2017, against loss of INR0.4 crore  on
net sales of INR117.2 in fiscal 2016.


COSMO FERRITES: CRISIL Lowers Rating on INR11.84MM Loan to B+
-------------------------------------------------------------
CRISIL has downgraded its ratings on bank facilities of Cosmo
Ferrites Limited (CFL) to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          0.5       CRISIL A4 (Downgraded
                                     from 'CRISIL A4+')

   Cash Credit             6.62      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Export Packing Credit   5         CRISIL A4 (Downgraded
                                     from 'CRISIL A4+')

   Letter of Credit        8         CRISIL A4 (Downgraded
                                     from 'CRISIL A4+')

   Proposed Bank           0.5       CRISIL A4 (Downgraded
   Guarantee                         from 'CRISIL A4+')


   Proposed Cash Credit    9.79      CRISIL B+/Stable (Downgraded
   Limit                             from 'CRISIL BB-/Stable')

   Proposed Term Loan      6.75      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Standby Line of         1         CRISIL B+/Stable (Downgraded
   Credit                            from 'CRISIL BB-/Stable')

   Term Loan              11.84      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

The rating downgrade reflects the below-average financial risk
profile and liquidity, driven by weaker performance in fiscal
2017, and first quarter of fiscal 2018, primarily due to delay in
commercialization of the light emitting diodes (LED) lamps unit.
Drop in demand, following demonetization and implementation of
Goods and Service tax (GST) regime, has also affected
performance. Huge debt of INR3.13 crore in fiscal 2018, and
subdued profitability along with instances of cash losses,
weakened liquidity, also reflected in full utilization of bank
limit. This is, however, mitigated by continuous and strong
support via inter-corporate deposits from promoter-owned
companies.

Operating margin of 0.8% was reported in the first quarter of
2018, against 10% expected by CRISIL, for fiscal 2018.
Profitability was largely hit by absence of the high-margin job
work contracts, related to LED. Operating margin is expected to
improve over the coming quarters, driven by a ramp-up in the LED
division.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operations
Revenue of INR66.7 crore reported for fiscal 2017, reflects the
small scale of operations, mainly constrained by competition from
China. Establishment of the coils unit and ramp up of the LED
unit will enable forward integration and support revenue growth,
going forward. Ramp-up of the coil and LED verticals, along with
renewed focus of the government through EESL (Energy Efficiency
Services Ltd) on LED lighting, will also be a key growth driver.

* Weak financial risk profile
Financial risk profile is marked by weak debt protection metrics,
stemming from subdued profitability. Return on capital employed
(RoCE) is expected to be in the range of 4-5% in the near term.
Networth is expected to be moderate around INR20 crore, with
gearing seen at 2.5-2.7 times in the near term.

Strengths

* Established presence in the soft ferrites industry and
longstanding client associations
The company's three decade-long presence in the soft ferrite
industry and established position in overseas markets, will
continue to support the business risk profile. Export market is
dominated by reputed players such as EPCOS AG and TDK Ferrites
Corporation, besides Chinese manufacturers. The company has
strategically chosen to manufacture soft ferrites, which are used
by manufacturers of low-volume, high-value products such as
transformers, bulbs, mobile phones, and solar equipment. Strong
clientele, comprising over 200 customers, and diversification
into exports and other end-user industries, partially offset risk
of downturn in any particular industry.

Outlook: Stable

CRISIL believes CFL will continue to benefit from its established
position in the soft ferrites industry and healthy client
relationships. The outlook may be revised to 'Positive,' if
substantial cash accrual leads to an improvement in liquidity and
financial risk profile. The outlook may be revised to 'Negative'
if profitability continues to be low, or if any large, debt-
funded capex, further weakens the financial risk profile,
especially liquidity.

CFL was set up by Mr.  Ashok Jaipuria in 1986. He is also the
founder-promoter of Cosmo Films Ltd, and manufactures bi-axially-
oriented polypropylene films. CFL manufactures soft ferrites and
coils at its facility near Shimla, and caters to a wide customer
base, comprising distributors manufacturers of transformers,
compact fluorescent lights, mobile phones, wireless chargers, and
inductive heaters.


COSMO GRANITES: CRISIL Assigns B+ Rating to INR30MM Term Loan
-------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the long-term
bank facilities of Cosmo Granites Private Limited (CGPL) and
assigned its 'CRISIL B+/Stable' rating to the facilities. CRISIL
had suspended the rating on March 6, 2014, as CGPL had not
provided the information required for a rating review. The firm
has now shared the requisite information, enabling CRISIL to
assign a rating to its bank facilities.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit              20      CRISIL B+/Stable (Assigned;
                                    Suspension Revoked)

   Term Loan                30      CRISIL B+/Stable (Assigned;
                                    Suspension Revoked)

The rating reflects a moderate scale of operations, revenue
generation vulnerable to fluctuation in demand from end-user
segments, moderate operating profitability which is susceptible
to fluctuations in raw material prices and foreign exchange
(forex) rates, and a below-average financial risk profile. These
weaknesses are partially offset by an established market position
in the premium floor tile retail segment and the extensive
industry experience of the promoters.

Key Rating Drivers & Detailed Description

Weakness

* Moderate scale of operations; revenue generation vulnerable to
fluctuation in demand from end-user segments:
Scale of operations is moderate, as reflected in revenue of
INR61.57 crore in fiscal 2017. Revenue has been highly volatile
in the past. Revenue dropped to INR47.99 crore in fiscal 2015
from INR85.73 crore in the previous fiscal mainly on account of a
slump in demand from the residential and commercial construction
segment. Growth in income levels and changing consumer tastes
would remain key variables for business operations.

* Moderate operating profitability, susceptible to fluctuations
in raw material prices and forex rates:
The operating profitability margin was 16.49% in fiscal 2017, up
from 12.48% in fiscal 2016. The margin has been volatile in the
past because of fluctuations in the price of granite/marble and
in forex rates.

* Below-average financial risk profile:
Financial risk profile is constrained by weak gearing and debt
protection metrics. Owing to significant reliance on working
capital debt and substantial term loans taken for capital
expenditure (capex) funding, gearing was weak at 2.47 times as on
March 31, 2017. Debt protection metrics were weak, as reflected
in interest coverage ratio of 1.39 times and net cash accrual to
adjusted debt ratio of 0.06 time in fiscal 2017. These weaknesses
were partially offset by a moderate networth of INR20.9 crores as
on March 31, 2017.

Strengths

* Established market position in the premium floor tile retail
segment:
The company provides diverse flooring solutions across granite,
marble, and wood, along with allied services for window
fashioning and bathroom solutions under a single roof. The
product offerings are positioned for the lifestyle segment
customers. The company provides a wide mix of colours and
generics under its brand, Cosmo. It has had a healthy
relationship with international suppliers over the past 20 years.
The supplier base is large and spans various countries including
Turkey, Spain, Italy, Egypt, and Greece.

* Extensive industry experience of the promoters:
The promoters Mr. D H Sarath Kumar, Mr.  D Venkaatesh, and Mr. D
N'have an experience of more than two decades in retailing
flooring materials: granite, marble, and wood. This has resulted
in a strong regional market position, a longstanding relationship
with suppliers and principals, and a diverse customer base.

Outlook: Stable

CRISIL believes CGPL will continue to benefit over the medium
term from its promoters extensive industry experience and
established market position in the premium floor tile retail
segment. The outlook may be revised to 'Positive' in case of
sustained growth in revenue and stability in operating
profitability, leading to significantly better cash accrual and
capital structure. Conversely, the outlook may be revised to
'Negative' in case the company's financial risk profile weakens,
most likely because of low cash accrual, a stretched working
capital cycle, or larger-than-expected debt-funded capital
expenditure.

Incorporated in 1992, CGPL imports and retails flooring materials
such as marble, granite, wood, and ceramic tiles.

The company reported a profit after tax (PAT) of INR1.42 crores
on revenue of INR61.5 crores in fiscal 2017, vis-a -vis PAT of
INR(0.68) crores on revenue of INR50.23 crores in fiscal 2016.


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

-- INR50 mil. Fund-based limits migrated to non-cooperating
    category with IND BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 9, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 1990, Daga Auto Distributors is an authorised
distributor of spare parts for Tata Motors Limited's passenger
cars. It also distributes spare parts for Eicher Motors Limited's
trucks and buses. The firm is owned and promoted by the Daga
family, based in Kolkata.


DEVI CONSTRUCTION: CRISIL Lowers Rating on INR9MM Cash Loan to B-
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Devi Construction Company (DCC) to 'CRISIL B-/Stable' from
'CRISIL B+/Stable', and reaffirmed the 'CRISIL A4' rating on the
short-term facility.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Bank Guarantee          4         CRISIL A4 (Reaffirmed)

   Cash Credit             9         CRISIL B-/Stable (Downgraded
                                     from 'CRISIL B+/Stable')

The downgrade reflects CRISIL's belief that the firm's liquidity
will remain subdued as cash accrual is expected to be
insufficient to meet debt obligation over the medium term. The
firm has extended loans and advances of INR14.97 crore (increased
from INR7.89 crore as on March 31, 2016) to promoters and
relatives, which was almost half of its networth as on March 31,
2017. These loans, if not recovered on time, will keep liquidity
under pressure. Also, large working capital requirement has
significantly increased dependence on bank limit, which is
utilised at an average of 93% over the 12 months through May
2017.

With revenue of INR260.82 crore in fiscal 2017, scale remains
modest. The firm had orders of INR96.69 crore as on July 31, 2017
(revenue of INR60 crore already booked in the first four months
of the fiscal), to be completed in 6 months, providing low near-
term revenue visibility. Revenue is expected to decline 14% in
fiscal 2018.

Key Rating Drivers & Detailed Description

Weakness

* Below-average financial risk profile
The financial risk profile is constrained by high total outside
liabilities to tangible networth ratio of 3.35 times as on
March 31, 2017, and subdued debt protection metrics reflected in
interest coverage and net cash accrual to adjusted debt ratios of
1.72 times and 0.07 time, respectively, in fiscal 2017. CRISIL
expects the financial risk profile to remain below average over
the medium term, on account of sizeable working capital debt and
continued moderate accretion to reserves.

* Working capital-intensive operations
Gross current assets are estimated at 113 days as on March 31,
2017, driven by sizeable receivables and low inventory of 82 days
and 13 days, respectively. The rest of GCAs comprise security
deposits for projects, and cash and bank balance. Operations are
likely to remain working capital intensive over the medium term,
thereby constraining financial flexibility.

* High geographical and customer concentration in revenue:
The operations are concentrated in Rajasthan, making the firm
dependent on local tenders and vulnerable to changes in the state
government's policies. The limited revenue diversity is
accentuated by project concentration in its order book, majorly
from Jaipur Development Authority, and from private players in
Rajasthan. Lack of revenue diversity and geographical
concentration restrict growth potential.

Strengths

* Extensive experience of the promoters in the construction
industry
Key promoter, Mr. Krishna Yadav, has experience of nearly three
decades in the civil construction industry, which has enabled the
firm to develop strong relationships with government departments
and private developers, and raw material suppliers.

Outlook: Stable

CRISIL believes DCC will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if liquidity improves through recovery of loans and
advances to promoters, or if cash accrual is higher than
expected, and if efficient working capital management improves
the financial risk profile, particularly liquidity. The outlook
may be revised to 'Negative' if a decline in revenue and
profitability, or stretched working capital cycle, or large,
debt-funded capital expenditure, weakens the financial risk
profile, particularly liquidity.

The firm, established in 1983, is a civil contractor and
undertakes projects such as construction of roads and bridges,
and improvement, widening, and straightening of roads, for
government departments and private players. Operations are
concentrated in Rajasthan as the firm is headquartered in Jaipur,
and are managed by Mr. Krishna Yadav and his son Mr. Abhijeet
Yadav. The firm is an 'AA' class contractor.


DHANSHREE SEEDS: CRISIL Reaffirms 'D' Rating on INR21.39MM Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Dhanshree Seeds
Private Limited (DSPL, part of Manibhadra group) for obtaining
information through letters and emails dated May 24, 2017 and
June 9, 2017 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            21.39      CRISIL D (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

   Term Loan               1.11      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 Dhanshree Seeds 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 Dhanshree Seeds Private
Limited is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' Rating category or lower. Based on the last available
information, CRISIL has reaffirmed the rating at 'CRISIL D'.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of DSPL and Shree Manibhadra Food Product
Pvt Ltd (SMFPL). This is because both the companies, together
referred to as the Manibhadra group, are in a similar line of
business, have a common management, and have extended cross
guarantees for each other's bank loan facilities.

Incorporated in 2012 by Mr. Prakash Shah, DSPL is into processing
of non-basmati rice with its processing unit based in Moriya
(Gujarat). The total processing capacity of unit is 5 tonnes per
hour.

SMFPPL, incorporated in 2010, is promoted by Ahmedabad-based Mr.
Prakash Shah and his family members and relatives. The company
processes non-basmati rice.


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

-- INR50 mil. Fund-based working capital limits (long-term)
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING) rating;

-- INR37 mil. Term loan (long-term) migrated to non-cooperating
    category with IND D(ISSUER NOT COOPERATING) rating; and

-- INR15 mil. Non-fund-based working capital limits (short-term)
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING) rating;

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 28, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Dolbi's Granite was established in 2001 in Virugambakkam,
Chennai, Tamil Nadu. The company trades (domestically as well as
internationally), quarries and processes granite.


FARIDABAD STEEL: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Faridabad Steel
Mongers Pvt Ltd.'s (FSMPL) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable. The instrument-wise rating action is:

-- INR500 mil. Fund-based limits affirmed with IND BB/Stable/IND
    A4+ rating.

KEY RATING DRIVERS

The ratings reflect FSMPL's modest revenue growth in FY17.
Revenue grew 1% yoy to INR5.23 billion in FY17. While the blended
realisations per tonne grew 13.5% yoy to INR36,878, an 11% yoy
fall in sales volumes to 141,775 MT limited the scale-up in
revenue. A steady increase in steel prices post the announcement
of the minimum import price policy in February 2016 facilitated
the improvement in realisations. A fairly tepid steel demand with
steel consumption growing 3% yoy in FY17 (FY16: 4.3% yoy) and
demonetisation particularly impacted sales in 3QFY17 and thus
sales volumes. A pick-up in steel demand in FY18 and steady
realisations could lead to reasonable revenue growth in FY18.
FY17 financials are provisional in nature.

The ratings also reflect FSMPL's continued stable-but-low EBITDA
margins (FY17: 1.63%; FY16: 1.65%). The trading nature of
operations has resulted in low margins for FSMPL. Ind-Ra expects
the company to maintain its margins in the 1.5-1.8% range.

The ratings are constrained by FSMPL's weak credit metrics. Net
leverage (net debt/EBITDA) increased to 8.57x in FY17 (FY16:
7.5x) due to an increase in debt to INR735 million (INR640
million). Gross coverage (EBITDA/gross interest expenses) was
largely unchanged at 1.51x in FY17 (FY16: 1.50x) with EBITDA and
the interest expenses not experiencing much change. FSMPL had
availed a short-term loan in March 2017 to procure additional
inventory as its off-take during February 2017 was on the lower
side and higher volume had to be procured in March to secure
quantity discounts and fulfil the volume target. FSMPL's
perception of higher prices prevailing in February 2017 led to
the deferment of purchase orders. The loan was repaid during June
2017 through working capital proceeds. Ind-Ra expects the net
leverage to witness some improvement in FY18, through the
interest coverage would remain in the 1.45x-1.55x range.

FSMPL's operations are highly working capital intensive with the
net cycle being in the range of 50-60 days and the average
maximum working capital utilisation being 94% over the 12 months
ending June 2017. The net cycle increased to 59 days in FY17
(FY16: 52 days) mainly because of higher inventory holding of 52
days (36 days) at year end. A shorter receivable period (FY17: 32
days; FY16: 37 days) and higher payable days (35 days; 21 days)
helped in containing the increase in the net cycle.

The ratings, however, continue to be supported by FSMPL's
diversified customer base with the top 10 customers accounting
for below 15% of the sales in FY17. Also, its promoter has over
30 years of experience in the steel trading business.

RATING SENSITIVITIES

Positive: A sustained rise in the profitability, leading to an
improvement in the credit metrics, along with an improvement in
the liquidity position, could lead to a positive rating action.

Negative: A decline in the revenue and profitability, resulting
in deterioration in the credit metrics or liquidity, could lead
to a negative rating action.

COMPANY PROFILE

Incorporated in June 2009, FSMPL was initially set up by Mr.
Yogesh Gupta as a partnership firm named SP Industries. It was
converted into a private limited company later that year. The
company is a memorandum of understanding customer of Steel
Authority of India Limited (SAIL: 'IND AA-'/Negative) and trades
in hot rolled coils, hot strip mill plates and plate mill plates.


GAWAR CONSTRUCTION: Ind-Ra Withdraws WD Commercial Paper Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Gawar
Construction Ltd's (GCL) commercial paper (CP) rating as follows:

-- INR500 mil. CP withdrawn with WD rating.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the rating as there is
no debt outstanding against the rated instrument. This is
consistent with The Securities and Exchange Board of India's
circular dated March 31, 2017 for credit rating agencies.

Last published rationale for GCL can be accessed here.

COMPANY PROFILE

GCL was incorporated in 1997 as a partnership concern and was
converted into a limited company in 2008. It has an established
track record in executing infrastructure road projects in north
India. The company has been engaged in civil construction, mainly
roads (80%-85%), bridges (10%-15%) and government buildings (5%)
for over 17 years. Its registered office is located in Hissar and
corporate office is located in Gurgaon.


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

-- INR230 mil. Fund-based working capital limit migrated
    to non-cooperating category with IND BB-(ISSUER NOT
    COOPERATING) rating; and

-- INR10 mil. Term loan migrated to non-cooperating category
    with IND BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 21, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

GSPL is a franchise holder of Titan Industries Limited's
jewellery brand Tanishq since 2002. It has a showroom in
Jamshedpur with a product portfolio including rings, earrings,
necklaces, bangles, gold coins, among others. It is managed by
Mr. Anil Agarwal.


JAGRUTESHWAR METALS: CRISIL Reaffirms B Rating on INR5.5MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long-
term bank facilities of Jagruteshwar Metals Private Limited.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             .45      CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     2.05      CRISIL B/Stable (Reaffirmed)

   Term Loan              5.5       CRISIL B/Stable (Reaffirmed)

The rating reflects small scale and early stage of operations in
the intensely competitive and fragmented stone crushing industry,
and weak financial risk profile. These weaknesses are partially
offset by experience of promoters and assured demand from the
group company.

Analytical Approach

For arriving at the rating, CRISIL has not consolidated the
financial and business risk profiles of the group company, Om
Shivam Buildcon Pvt Ltd, because the two companies have different
lines of business and no common director.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale and early stage of operations in intensely
competitive industry
Revenue was modest at INR8.27 crore in fiscal 2017 due to the
early stage of operations and intense competition.

* Weak financial risk profile
High gearing and average debt protection metrics may constrain
financial risk profile over the medium term.

Strengths

* Experience of promoters
Benefits from the promoters' experience should help stabilise the
newly started operations and continue to support the business.

* Assured demand from group companies
Revenue flow is likely to remain steady over the medium term as
25-30% of total revenue is derived from the group company while
orders from other construction players are also increasing.

Outlook: Stable

CRISIL believes JMPL will benefit over the medium term from
experience of promoters and assured demand from the group
company. The outlook may be revised to 'Positive' if revenue and
profitability increase substantially. Conversely, the outlook may
be revised to 'Negative' if stretch in working capital cycle or
large, debt-funded capital expenditure weakens financial risk
profile.

JMPL, incorporated in 2014, crushes stones. It is managed by Mr.
Kapse and family and has a registered office in Nagpur,
Maharashtra.

Net loss was Rs1.49 crore on operating income of INR8.27 crore in
fiscal 2017, against INR0.29 crore and INR2.15 crore,
respectively, in fiscal 2016.


KAMADHENU JEWELLERY: CRISIL Assigns B Rating to INR5.0MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank loan facilities of Kamadhenu Jewellery Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee         7.5        CRISIL A4
   Cash Credit            5.0        CRISIL B/Stable

The ratings reflect a modest scale of operations in an intensely
competitive industry and exposure to volatility in gold prices,
and a weak financial risk profile because of a small networth and
weak gearing. These weaknesses are partially offset by the
extensive industry experience of the promoters.

Key Rating Drivers & Detailed Description

Strengths

* Modest scale of operations in an intensely competitive industry
and exposure to volatility in gold prices:
The company is in nascent stages of operations, as it was
established in April 2016. It reported modest revenue of INR29.37
crore in fiscal 2017, its first year of operations. Owing to
modest scale of operations and exposure to intense competition in
the gold jewellery retailing industry, bargaining power with
customers and suppliers is limited, leading to pressure on the
operating margin. Operating margin also remains susceptible to
volatility in gold prices.

* Weak financial risk profile:
Financial risk profile is constrained by modest networth and weak
gearing on March 31, 2017. Significant reliance on debt to fund
working capital requirement and proposed capital expenditure of
INR3 crore, expected to be funded by a term loan of INR2.5 crore,
are expected to keep the capital structure weak over the medium
term. Debt protection metrics were weak: the interest coverage
ratio was 0.53 times and the net cash accrual to adjusted debt
ratio (0.19) time in fiscal 2017.

Strength

* Extensive industry experience of the promoters:
The promoters, Mr. Vivek Sharma and Mr. Vinod Sharma, set up the
company in April 2016. Prior to that, they operated a proprietary
firm, Kamadhenu Jewellers; this firm was set up in 1970 and has a
retail store in Avadi, Chennai. They thus have an experience of
over 40 years in the industry.

Outlook: Stable

CRISIL believes KJPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' in case of an improvement in the scale of operation
while steady operating profitability is maintained, leading to
higher cash accrual. The outlook may be revised to 'Negative' if
liquidity deteriorates due to significant debt-funded capex, a
stretched working capital cycle, or a decline in revenue or
profitability leading to lower-than-expected cash accrual.

Based in Chennai, KJPL manufactures and retails gold jewellery.
The company was established by Mr. Vivek Sharma and Mr. Vinod
Sharma in April 2016.

Net loss was INR0.83 crore on total revenue of INR29.37 crore in
fiscal 2017 (Fiscal 2017 was its first year of operations).


KIRUBHA EXPORTS: CRISIL Reaffirms B+ Rating on INR8MM Cash Loan
---------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facility of Kirubha
Exports at 'CRISIL B+/Stable.

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

The rating reaffirmation reflects the modest scale of operations
in the intensely competitive cashew industry, and below average
financial risk profile. These weaknesses are partially offset by
its promoter's extensive industry experience and established
relationships with customers.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in the intensely competitive cashew
industry
Business risk profile remains constrained on account of small
scale of operations - revenue was INR50.3 crore in fiscal 2017 on
provisional basis. Furthermore, limited differentiation in the
technology involved in the processing of cashew nuts leads to
intense competition in both the organised and unorganised
segments.

* Below-average financial risk profile:
Financial risk profile remains below-average, owing to high total
outside liabilities to tangible networth of 5.9 times estimated
as on March 31, 2017. Limited operating profitability and high
dependence on working capital debt has resulted in modest debt
protection metrics--interest coverage ratio was at 1.7 times
estimated as on fiscal 2017.

Strength

* Extensive experience of the proprietor and established
relationships with customers.
Benefits from the proprietor's two decade-long experience in the
industry and established relationships with customers, resulting
in steady order flow should support business risk profile.

Outlook: Stable

CRISIL believes KE will continue to benefit over the medium term
from its promoter's extensive industry experience. The outlook
may be revised to 'Positive' in case of considerable increase in
revenue and profitability, leading to higher cash accrual and
better financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of low revenue or profitability, or
weakening of working capital management, or large, debt-funded
capital expenditure, weakening financial risk profile,
particularly liquidity.

Set up in 2011, KE processes raw cashew nuts and sells cashew
kernels. Its facility in Kanyakumari (Kerala) can process 12
metric tonne per day (TPD) of cashew kernels. Mr. Vimal Kumar
manages the operations.

On a provisional basis, net profit was INR0.7 crore on net sales
of INR50.3 crores in fiscal 2017; net profit was INR0.5 crore on
net sales of INR45.5 crore in fiscal 2016.


KPM PROCESSING: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed KPM Processing
Mill Private Limited's (KPM) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable. The instrument-wise rating actions are:

-- INR90 mil. Fund-based working capital limits affirmed
    with IND BB/Stable rating;

-- INR109.93 mil. (reduced from INR153.16 mil.) Long-term loans
    due on May 2019-April 2021 affirmed with IND BB/Stable
    rating; and

-- INR10.97 mil. (reduced from INR22.5 mil.) Non-fund-based
    limits affirmed with IND A4+ rating.

KEY RATING DRIVERS

The ratings have been affirmed despite an improvement in revenue
and credit metrics, as Ind-Ra expects credit metrics to
deteriorate in FY18-FY19, given the management plans to incur
significant capex funded through secured and unsecured debt.

The ratings reflect KPM's improved-but-moderate scale of
operations and continued tight liquidity profile. Revenue rose to
INR516 million in FY17 (provisional) (FY16: INR444 million),
driven by an increase in orders from existing customers. KPM's
utilisation of fund-based limits was 98% during the last 12
months ended July 2017.

The ratings also reflect a high customer concentration risk,
considering the contribution of the top five customers to revenue
increased to 47% in FY17 from 43% in FY16.

The ratings, however, are supported by comfortable credit
metrics. In FY17, interest coverage (operating EBITDA/gross
interest expense) was 4.4x (FY16: 3.6x) and net financial
leverage (adjusted net debt/operating EBITDA) was 2.2x (2.4x).
The improvement in credit metrics was due to a comfortable EBITDA
margin of 21.6% (FY16: 23.9%), which declined owing to rise in
operating expenses. Moreover, its promoters have two decades of
experience of in fabric dyeing.

RATING SENSITIVITIES

Negative: A sustained deterioration in the liquidity profile
would lead to a negative rating action.

Positive: A sustained improvement in the scale of operations and
credit metrics would lead to a positive rating action.

COMPANY PROFILE

KPM was registered on November 19, 2010 under the Companies Act,
1956. The company has set up a 12,000kg/day fabric dyeing unit in
Tirupur, Tamil Nadu.  The company is promoted by P Sekaran, N
Chandra Sekaran and Thamilselvi.


MADHOOR BUILDWELL: CRISIL Lowers Rating on INR14MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Madhoor Buildwell Private Limited (MBPL) to 'CRISIL D/CRISIL D'
from 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          4.5       CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Cash Credit            14         CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Proposed Working       14         CRISIL D (Downgraded from
   Capital Facility                  'CRISIL A4')

   Rupee Term Loan         7.5       CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

The downgrade reflects delays in servicing of interest, on
account of weak liquidity resulting from large working capital
requirement.

The ratings reflect a modest scale, and working capital-intensive
nature, of operations with large inventory requirement for real
estate activities. These weaknesses are partially offset by the
extensive experience of the promoters in the civil construction
and real estate development industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: With an estimated operating income
of INR27.78 crore for fiscal 2017, the scale remains modest.
Despite moderate orders in hand in the civil construction
business, the overall scale is expected to remain small over the
medium term.

* Large working capital requirement: Gross current assets are
estimated at 767 days due to large inventory and receivables of
380 days and 500 days, respectively, as on March 31, 2017. In
addition, the large inventory in the real estate division adds to
the working capital intensity. Working capital requirement will
remain large over the medium term.

Strength

* Extensive industry experience of the promoters: A presence of
over two decades in the construction industry has enabled the
promoters to maintain a healthy relationship with clients and get
repeat orders from them.

Furthermore, the promotes has experience of about two decades in
Nashik's real estate industry with more than 150 projects
completed in and around Nasik.

MBPL is engaged in Real estate development and undertakes Civil
Contraction activities in Nasik since 1994. The founder promoter
and Chairman, Late Mr. Ratilal Shivdas Patel was in construction
business since the past five decades. Now business is run by his
three sons Mr. Pradip Ratilal Patel, Mr. Arvind Ratilal Patel,
and Mr. Chetan Ratilal Patel.

On a provisional basis, net profit was INR1.32 crore on net sales
of INR27.78 crore in fiscal 2017; net profit was INR1.35 crore on
net sales of INR27.20 crore in fiscal 2016.


MAHAVEER COTTS: CRISIL Reaffirms 'B' Rating on INR6MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Mahaveer Cotts
Strings Private Limited (MCSPL) continues to reflect MSCPL's
below-average financial risk profile, marked by small net worth,
high gearing and weak debt protection metrics. The rating also
factors in the company's small scale and working-capital-
intensive nature of operations. These rating weaknesses are
partially offset by the extensive experience of MCSPL's promoters
in the cotton ginning industry.

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

Key Rating Drivers & Detailed Description

Weaknesses

* Below average financial risk profile
MSCPL financial risk profile is weak marked by small net worth,
high gearing and weak debt protection metrics. Due to working
capital intensive operations and low accretion to reserves, the
financial risk profile of the company is expected to remain below
average going ahead as well.

* Small scale of operations in highly fragmented industry
The cotton ginning industry is largely unorganised with the
presence of several small players. In addition, the entry
barriers are low because of low capital and technology intensity
and low differentiation in end product. This has led to a highly
fragmented industry structure with intense competition amongst
the players. Company's scale continues to remain small as
reflected in operating income of INR26 cr in 2016-17.

Strengths

* Extensive experience of promoters in cotton industry and
established relations with suppliers
The promoter of MCSPL has been in the cotton industry for more
than 40 years through its group firm Mahaveer Ginning Factory.
The company benefits from the extensive experience of its
promoter and his understanding of the dynamics of the local
market, and established relationships with its suppliers and
customers. CRISIL believes that MCSPL will continue to benefit
from the extensive industry experience of its promoter, resulting
in sustained revenue growth over the medium term.

Outlook: Stable

CRISIL believes that MCSPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
their funding support. The outlook may be revised to 'Positive'
if significant long term fund infusion from the promoters shores
up the company's liquidity. Conversely, the outlook may be
revised to 'Negative' if the company's financial risk profile
weakens further, most likely because of increased working capital
borrowings, or if any change in government policy adversely
impacts its operations.

MSCPL was set up in 2008 by Mr. Kamalchand Jain and his family.
The company, based in Bhikangaon district (Madhya Pradesh),
produces cotton bales by ginning and pressing raw cotton (kapas).

Profit after tax (PAT) and net sales are estimated at INR0.3
crore and INR26 crore, respectively, for fiscal 2017; PAT was
INR0.1 crore on net sales of INR29 crore for the previous fiscal.


MEP INFRASTRUCTURE: CRISIL Cuts rating on INR2.52BB Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of MEP Infrastructure Pvt Ltd (MEP Infra) to 'CRISIL D' from
'CRISIL BB-(SO)/Negative'. The ratings are based on limited
interaction with the company.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Proposed Long Term      7.51     CRISIL D (Downgraded from
   Bank Loan Facility               'CRISIL BB-(SO)/Negative')

   Term Loan            2525.49     CRISIL D (Downgraded from
                                    'CRISIL BB-(SO)/Negative')

The downgrade reflects delays in servicing the rated debt on
account of its stretched liquidity position with lower than
expected toll collections. The company has large debt and high
exposure to group companies, and is exposed to volatility in
traffic and changes in government policies. Furthermore, the
rating factors in MEP Infra's exposure to group companies which
remained high at INR598 crore as on March 31, 2016, and is
expected to increase over the medium term. However, it benefits
from good traffic potential of the project, and extensive
experience of promoter group in managing toll-based road
projects.

Key Rating Drivers & Detailed Description

Weakness

* Delays in debt servicing
MEP Infra has delayed in servicing its debt obligations with
lower than expected toll collections. Although, liquidity in the
form of debt servicing reserve account has been maintained in the
form of fixed deposit of around INR53 cr, it is inadequate to
meet the current overdue debt servicing obligations.

* Large debt, and high exposure to group companies
MEP Infra had debt of INR2,488 crore as on March 31, 2016, of
which, INR2,121 crore was raised for making upfront payment to
Maharashtra State Roads Development Corporation Ltd (MSRDC) for
the grant of concession. Thus, despite stable revenue, MEP Infra
has limited cash flow cushion available to meet its large debt
servicing obligations. Furthermore, the exposure to group
companies remained high at INR598 crore as on March 31, 2016,
which has increased over the past one year.

* Vulnerability of cash flows to volatility in traffic and
changes in government policies
MEP Infra is exposed to the risk of volatility in traffic volumes
because of a slowdown in economic activity. Furthermore, any
change in government policy such as recent announcement by
Ministry of Road Transport and Highways exempting tolling on
highways starting November 8, 2016, till midnight of December 2,
2016, could impact cash flows. Any such policy changes or adverse
traffic movement remains a key rating sensitivity factor.

Strengths

* Good traffic potential and fixed periodic toll rate revision
Mumbai, being the financial and commercial hub of the country,
attracts a steady stream of traffic. Traffic mainly consists of
passenger vehicles, over 60% of the revenue comes from passenger
cars, which largely comprises commuters staying on the outskirts
of Mumbai and travelling to and fro for work. Furthermore, toll
rates are pre-defined in concession agreement, thus MEP Infra
faces limited risk of unexpected variation in toll rates.

* Extensive experience of promoter group in managing toll-based
road projects
The promoter group of MEP Infra has extensive experience in
managing toll-based road projects. MEP Infrastructure Developers
Ltd (MEPIDL) has completed 116 projects, with an aggregate of 218
toll plazas and 1,349 lanes, and has experience of over 14 years
in this business in 12 states in India.

MEP Infra was incorporated in January 2010 as a subsidiary of
MEPIDL. It holds a 16-year concession from MSRDC, beginning in
November 2010, for toll collection at the five Mumbai entry
points (Vashi, Mulund, Lal Bahadur Shastri, Dahisar, and Airoli);
operations and maintenance (O&M), including periodic and special
maintenance of 27 flyovers in Mumbai; and capacity augmentation
of three toll plazas. Before the awarding of this concession to
MEP Infra, MEPIDL was the toll collector for the Mumbai entry
points since 2002. The company has raised claims from MSRDC
towards demonetisation and cost incurred towards change in scope.


PARKASH PULSES: Ind-Ra Affirms B Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Parkash Pulses'
(PP) Long-Term Issuer Rating at 'IND B'. The Outlook is Stable.
The instrument-wise rating action is:

-- INR100 mil. (reduced from INR150 mil.) Fund-based working
    capital limits affirmed with IND B/Stable/IND A4 rating.

KEY RATING DRIVERS

The affirmation reflects PP's continued weak credit profile and
low operating profitability due its presence in a highly
commoditised business of pulses with susceptibility to seasonal
trends. As per FY17 provisional financials, revenue declined to
INR1,195 million (FY16: INR1,658 million) owing to the
government's intervention on maximum inventory holding limit of
pulses to eliminate mediators and stockists; however, the limit
was withdrawn in July 2017. EBITDA margin was 0.81% in FY17P
(FY16: 0.66%). Net financial leverage (adjusted debt/operating
EBITDA) deteriorated to 6.18x in FY17P (FY16: 4.61x) on account
of an increase in total debt for working capital purposes.
However, gross interest coverage (operating EBITDA/gross interest
expense) improved to 1.57x in FY17P (FY16: 1.36x) on account of a
decrease in finance cost due to lower utilisation of fund-based
working capital limits.

However, the ratings are supported by PP's comfortable liquidity
position with 34.53% average utilisation of working capital
limits during the 12 months ended July 2017.

The ratings also remain supported by the company's founders' over
25 years of experience in the pulses trading business, and the
company's established relationships with customers.

RATING SENSITIVITIES

Negative: Any further decline in revenue or EBITDA margin leading
to deterioration in the overall credit metrics could be negative
for the ratings.

Positive: An improvement in the revenue or EBITDA margins,
leading to improvement in the overall credit metrics could be
positive for the ratings.

COMPANY PROFILE

Established in 2009 in New Delhi, PP is a proprietorship firm
engaged in the trading of pulses. Mr. Sunil Kumar and Mr. Sanjay
Kumar are the proprietors.


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

-- INR410 mil. Fund-based working capital limits migrated
    to non-cooperating category with IND BB(ISSUER NOT
    COOPERATING) rating.

Note: ISSUER NOT COOPERATING:  The ratings were last reviewed on
Aug. 11, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

PMPL was incorporated in 1985 as a partnership entity. At
inception, it had taken an authorised dealership from Tractors
and Farms Equipment Limited. In 1993, the firm was reconstituted
as a private limited company. In 1994, the company became a
dealer for Eicher Motors Limited's light and medium commercial
vehicles. In 1997, PMPL acquired an authorised dealership for the
passenger vehicles of Maruti Suzuki India Limited, formerly
Maruti Udyog Limited. The company has 15 showrooms and 12
workshops, and runs a driving school in Indore.


PRASANNA EDUCATION: CRISIL Reaffirms D Rating on INR10MM LT Loan
----------------------------------------------------------------
CRISIL ratings on bank facilities of Prasanna Education Trust
(PET) continue to reflects the delays in servicing of its debt
obligations due to its weak liquidity.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Long Term Loan           10      CRISIL D (Reaffirmed)

CRISIL ratings also continue to reflect PET has modest scale of
operations and weak financial risk profile marked by a small net
worth and high gearing, and exposure to risks related to the
regulatory framework governing educational institutions. These
rating weaknesses are partially offset by the extensive
experience of PET's trustees in the education sector and expected
benefit from the newly incorporated Ayurvedic College and
hospital.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations
Despite being in operation for more than a decade now, the
collection of the trust were small at INR6.2 cr in 2015-16. PET
faces stiff competition from many established engineering
colleges in Mangalore and Dakshina Kannada district including
National Institute of Technology Karnataka, MIT Manipal and
Canara Engineering College.

* Weak financial risk profile
CRISIL believes that the trust financial risk profile is expected
to remain weak due to small net worth, high gearing and continued
weak liquidity.

Strengths

* Established regional position in education sector, with variety
of course offerings:
PET has a reputation of being a quality education provider with
good infrastructural facilities. PET offers courses in a variety
of disciplines such as engineering, ayurvedic medicine, commerce,
management etc. CRISIL believes that the company will benetit
from its established regional position in education sector.

Set up in 2003, the PET has been running 10 institutions that
imparts education from primary to higher standards. The trust is
managed by Mr. K. Gangadhara Gowda, former Minister, Government
of Karnataka and his family. The trust also runs the Prasanna
Ayurvedic College and Hospital.

Profit after tax (PAT) and net sales are estimated at INR1.5
crore and INR62 crore, respectively, for fiscal 2016; PAT was
INR2.1 crore on net sales of INR47 crore for the previous fiscal.


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

-- INR100 mil. Fund-based Limits migrated to non-cooperating
    category with IND BB+(ISSUER NOT COOPERATING) rating;

-- INR71.80 mil. Term Loan migrated to non-cooperating category
    IND BB+(ISSUER NOT COOPERATING) rating; and

-- INR0.30 mil. Non-fund-based limits migrated to non-
    cooperating category with IND A4+(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 28, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in September 2010, RHSPL is promoted by Harman
Prasad Agrawal, Meena Agrawal, Rohit Agrawal and Rahul Agrawal.
The company has a solvent extraction plant, which has a
production capacity of 250 tonnes per day (TPD), and a 50TPD
edible oil refining unit in Seoni (Madhya Pradesh). The company
is engaged in the manufacturing of deoiled soya cakes and refined
soybean oil. It sells refined oil under the brand Nutririch.


RAI INFRASTRUCTURE: CRISIL Reaffirms B Rating on INR7.60MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its long-term rating on the bank facilities
of Rai Infrastructure (Rai) at 'CRISIL B/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             7.6       CRISIL B/Stable (Reaffirmed)
   Term Loan               2.29      CRISIL B/Stable (Reaffirmed)

The rating reflects the firm's modest scale of operations in the
intensely competitive agro- commodity trading business and below-
average financial risk profile because of small net worth, high
total outside liabilities to tangible net worth ratio and muted
debt protection metrics. These weaknesses are partly offset by
the extensive experience of Rai's proprietor.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations
The firm is engaged in the agro commodity milling business of dal
having  capacity of 35 tonne per day (tpd), Rai provides minor
value addition by undertaking grading and sorting of grains. The
firm's scale of operation is modest as reflected in its turnover
of around INR43 as on march 31,2017. CRISIL believes that firm's
modest scale of operations will continue to impinge on its
business risk profile over the medium term.

* Below-average financial risk profile
The firm's financial risk profile is below average marked by low
net worth of INR3 cr and high gearing of 4 times as on
March 31, 2017. With low accretion of reserves and high reliance
on external debt.CRISIL believes that the firm is expected to
maintain its below average financial risk profile over the medium
term.

Strengths

* Promoters' extensive experience in agro commodity industry
The promoter of the firm Mr. Ramlal Rai (aged 46) years possesses
vast experience of 20 years in the field of Dal Mill. He has
established relationship with vendors, brokers etc. and has very
good reputation in the market. The promoter is presently running
a Dal Mill in the name of 'Shri KR Trading Co.' in Kareli since
2004. CRISIL believes that the experience of the proprietor will
help the firm in scaling up the revenues quickly because of
established relationships and good reputation in the market.

Outlook: Stable

CRISIL believes that Rai will benefit over the medium term from
the extensive experience of its proprietor. The outlook may be
revised to 'Positive' if there is a substantial and sustained
improvement in revenue and profitability margins, or if net worth
increases significantly with sizeable equity infusion from the
proprietor. Conversely, the outlook may be revised to 'Negative'
if profitability margins decline sharply or if capital structure
weakens further because of large debt-funded capital expenditure
or stretch in working capital cycle.

Established in 2010 as a proprietorship firm by Mr. Ramlal Rai,
Rai trades and processes pulses and grains. The firm is based in
Kareli district, Madhya Pradesh.

Profit after tax (PAT) and net sales are estimated at INR0.22
crore and INR43 crore, respectively, for fiscal 2017; PAT and net
sales were INR0.17 crore and INR48 crore, respectively, for
fiscal 2016.


REBELL JEWELS: CRISIL Assigns B+ Rating to INR8MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' on long term bank
facility of Rebell Jewels and Gifting Private Limited (RJPL).

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

The ratings reflect RJPL's initial stage of operation and below-
average financial risk profile. These weaknesses are partially
offset by promoters' extensive industry experience of the
promoters.


Key Rating Drivers & Detailed Description

Weakness

* Initial stage of operations: Commercial operations commenced in
May 2017. Timely stabilization and ramp up of scale of operation
is yet to be seen.

* Below average financial risk profile: Owing to initial stage of
operations, financial risk profile is expected to remain below-
average with weak capital structure.

Strengths

* Extensive experience of promoters in trading business: Benefits
from the promoters' two-decade experience in the industry should
support business risk profile.

Outlook: Stable

CRISIL believes that RJPL will continue to benefit from the
extensive experience of its promoters, over the medium term. The
outlook may be revised to 'Positive' if the company's financial
risk profile improves driven by improvement in cash accruals,
efficient working capital management, or capital infusion by the
promoters. Conversely, the outlook may be revised to 'Negative'
in case the company's financial risk profile, particularly its
liquidity, deteriorates due to substantially low cash accruals or
sizeable working capital requirements.

Incorporated in May 2017, RJPL, is engaged in manufacturing and
trading of imitation jewellery and trading of gift items. RIPL
has commenced its operation since May 2017. The company is
promoted by Mr. Rajes Shantilal Jain and his brother in law Mr.
Hasmukh Bhimraj Bagrecha; who have been in this business for over
two decades.


SCORODITE STAINLESS: CRISIL Lowers Rating on INR23MM Loan to D
--------------------------------------------------------------
CRISIL has been consistently following up with Scorodite
Stainless India Private Limited (SSPL) for obtaining information
through letters and emails dated April 12, 2017, and May 4, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee           2       CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL A4')

   Cash Credit             23       CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL B+/Stable')

   Letter of Credit         9       CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL B+/Stable')

   Term Loan                5       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

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Scorodite Stainless India
Private Limited. This restricts CRISIL's ability to take a
forward looking view on the credit quality of the entity. CRISIL
believes that the information available for Scorodite Stainless
India 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 and discussion with banker, CRISIL has downgraded the
rating to 'CRISIL D/CRISIL D' on account of non-servicing of
interest/instalments.

Incorporated in 2006, SSPL is promoted by the Rajasthan-based
Sanghvi brothers. The activities were earlier being carried out
under Sanghvi Metal Corporation, which was established in 1979.
SSPL manufactures, trades in, and exports stainless steel, and
duplex, super duplex, welded, and seamless carbon steel pipes,
tubes, and 'U' tubes.


SHESHADRI INDUSTRIES: CRISIL Reaffirms D Rating on INR34.54M Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D' rating to the bank
facilities of Sheshadri Industries Limited (SIL).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit           16.46       CRISIL D (Reaffirmed)
   Long Term Loan        34.54       CRISIL D (Reaffirmed)

The rating reflects current delays by SIL in servicing its debt.
The delays have been caused due to SIL's weak liquidity.

The ratings reflects weak financial risk profile marked by modest
net worth, high gearing and weak debt protection metrics. The
rating also reflects susceptibility of operating margin to
volatility in raw material prices. However, it benefits from
extensive experience of SIL's promoters in the textile industry.

Key Rating Drivers & Detailed Description

Weakness

* Delay in debt servicing
SIL has been delaying in repayment of interest and principal
amount of its term loan facility. The same is on account of
company's weak liquidity.

* Weak financial risk profile
The company's financial risk profile is weak marked by modest net
worth, high gearing and weak debt protection metrics. Net worth
was negative, as on March 31 2017, on account of accumulated
losses. Debt protection metrics was weak owing to operating
losses in the Fiscal 2017.

Financial risk profile is expected to remain weak over the medium
term.

* Susceptibility of operating margin to volatility in raw
material prices
Raw material costs accounted for around 68 per cent of ASLML's
revenue in 2016-17 Cotton prices have been highly volatile in
past which exposes the company to the risk arising due to any
change in cotton prices.

Strengths

* Extensive industry experience of promoters
Extensive experience of promoters of more than 35 years has
helped the company in building strong customer and supplier
relationships. Established relationship with customers and
suppliers help the company in uninterrupted raw material
procurement and repeated orders from customer.

SIL, incorporated in 2013, is engaged in cotton yarn spinning
unit located at Rajna (Madhya Pradesh) and garment manufacturing
plant. The company is promoted by Mr. J.K Agarwal.

SIL reported net losses of INR16.55 crore on revenue of INR57.93
crore in fiscal 2017, against INR2.84 crore and INR102.1 crore in
fiscal 2016.


SHITAL GEMS: Ind-Ra Migrates D Rating to Issuer Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Shital Gems
Pvt. Ltd.'s (SGPL) Long-Term Issuer Rating to 'IND D' from 'IND
B+' while simultaneously migrating the ratings to the non-
cooperating category. The Outlook was Stable. The issuer did not
participate in the surveillance exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is on the
basis of best available information. The rating will now appear
as 'IND D(ISSUER NOT COOPERATING)' on the agency's website. The
instrument-wise rating actions are:

-- INR220 MIL. Fund-based working capital limits (Long-
    term/Short-term) downgraded and migrated to non-cooperating
    category with IND D(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
best available information

KEY RATING DRIVERS

The downgrade reflects SGPL's delays in debt servicing during the
12 months ended July 2017 due to tight liquidity position.


SHREE MANIBHADRA: CRISIL Reaffirms 'D' Rating on INR53MM Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Shree Manibhadra
Food Product Private Limited (SMFPL; part of Manibhadra group)
for obtaining information through letters and emails dated May
24, 2017 and June 9, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             53        CRISIL D (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

   Letter of Credit         5        CRISIL D (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

   Term Loan                2.5      CRISIL D (Issuer Not
                                     Cooperating; Rating
                                     Reaffirmed)

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

Detailed Rationale

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

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SMFPL and Dhanshree Seeds Pvt Ltd
(DSPL). This is because both the companies, together referred to
as the Manibhadra group, are in a similar line of business, have
a common management, and have extended cross guarantees for each
other's bank loan facilities.

SMFPPL, incorporated in 2010, is promoted by Ahmedabad-based Mr.
Prakash Shah and his family members and relatives. The company
processes non-basmati rice.

Incorporated in 2012 by Mr. Prakash Shah, DNSDPLis into
processing of non-basmati rice with its processing unit based in
Moriya (Gujarat). The total processing capacity of unit is 5
tonnes per hour.


SHRI KARVIR: CRISIL Reaffirms B+ Rating on INR12MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Shri Karvir Nivasini Mahalaxmi Ispat
Private Limited (SKPL).

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee         1.18      CRISIL A4 (Reaffirmed)
   Cash Credit           12         CRISIL B+/Stable (Reaffirmed)
   Letter of Credit       3         CRISIL A4 (Reaffirmed)

The rating reflects susceptibility to cyclical nature of demand
from end-user industries and weak financial risk profile. These
weaknesses are partially offset by experience of promoters.

Analytical Approach

For arriving at theratings, CRISIL has treated unsecured loans
extended to SKPL by promoters as neither debt nor equity as these
loans have lower-than-market interest rate and should remain in
the business.

Key Rating Drivers & Detailed Description

Weakness

* Susceptibility to demand from end-user industries
SKPL's profitability is linked to the overall fortunes of the
steel industry. The steel industry is inherently cyclical in
nature with strong correlation with overall gross domestic
product growth with primary end-user segments such as
infrastructure and real estate.

* Weak financial risk profile
Moderate gearing and below average debt protection metrics are
likely to constrain financial risk profile over the medium term.

Strengths

* Promoters' experience
Benefits from the promoters' experience (over three decades)
should continue to support the business.

Outlook: Stable

CRISIL believes SKPL's business risk profile will continue to
benefit over the medium term from the experience of promoters.
The outlook may be revised to 'Positive' if revenue and
profitability increase significantly while maintaining capital
structure and working capital cycle. Conversely, the outlook may
be revised to 'Negative' if continued decline in profitability,
leading to low cash accrual, or stretch in working capital cycle
weakens liquidity.

Incorporated in 1994 and promoted by Mr. Gandhi and family along
with Mr. Malani, SKPL manufactures thermo-mechanically-treated
bars. Its manufacturing facility is in Kolhapur (Maharashtra).
Operations are managed by Mr. Malani.


SPENTIKA CERAMIC: CRISIL Reaffirms 'B' Rating on INR6MM LT Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on
the bank facilities of Spentika Ceramic Private Limited (SCPL).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          .8        CRISIL A4 (Reaffirmed)

   Cash Credit            4.5        CRISIL B/Stable (Reaffirmed)

   Long Term Loan         6          CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     1.2        CRISIL B/Stable (Reaffirmed)


The ratings continue to reflect the extensive experience of the
company's promoters in the ceramics industry, and the proximity
of its manufacturing facilities to raw material and labour
sources. These strengths are partially offset by modest scale of
operations in the highly competitive ceramics industry, and large
working capital requirement.

Key Rating Drivers & Detailed Description

Strengths

* Extensive industry experience of the promoters: The promoters'
experience in the ceramics industry through group companies has
enabled them to understand nuances of business and establish a
healthy customer base, thus supporting the company's revenue.

* Availability of raw material and labour: SCPL is based in
Morbi, which is the hub of the ceramics industry in India and
accounts for 60-70% of the country's ceramic tiles output.
Consequently, raw material and labour are easily available, thus
reducing the company's overhead.

Weaknesses

* Modest scale of operations: The company's scale has increased,
but remains modest due to initial phase of operations and intense
competition in the ceramics industry.

* Large working capital requirement: Gross current assets were at
230 days as on March 31, 2017.

Outlook: Stable

CRISIL believes SCPL will continue to benefit from its promoters'
extensive experience in the ceramics industry. The outlook may be
revised to 'Positive' if a significant increase in revenue and
profitability leads to larger-than-expected cash accrual. The
outlook may be revised to 'Negative' if revenue or accrual is
lower than expected due to reduced profitability, or if its
financial risk profile weakens because of a stretch in working
capital cycle or substantial debt-funded capital expenditure.

SCPL is a private limited company set up in February 2011 at
Lakaddhar, Gujarat. It is promoted by Mr. Pareshbhai Detroja, Mr.
Harshadbhai Raiyani, Mr. Jagjeevanbhai Rangpariya, and Mr.
Dharmendrabhai Detroja. Mr. Pareshbhai Detroja, Mr.
Dharmendrabhai Detroja, and Mr. Raj Boda are directors in the
company. It manufactures digital glazed wall tiles with capacity
of 38000 tonne per annum.

Profit after tax was INR0.07 crore on net sales of INR14.40 crore
in fiscal 2016, against INR0.11 crore and INR17.77 crore in
fiscal 2015.


SUNCO ENTERPRISES: CRISIL Assigns B+ Rating to INR7MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the long
term bank facilities of Sunco Enterprises (SE).

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

The ratings reflect SE's moderately high working capital
requirements. This rating weakness is partially offset by its
average financial risk profile and extensive experience of
promoters in the automobile industry.

Key Rating Drivers & Detailed Description

Weakness

* Working capital intensive nature of operations: The company has
working capital intensive nature of operations reflected in its
high Gross Current Asset days at 184 days as on March 31st, 2017.

Strengths

* Extensive experience of Promoters:
The promoters of SE have a track record of around three decades.
The promoter's lineage has an established customer relation
through the company has helped SE to scale up its operations.

* Average financial risk profile marked by moderate gearing ratio
and comfortable debt protection metrics:
The company has an average financial risk profile marked by
moderate gearing ratio at 1.01 times for March 2017 and
comfortable debt protection metrics for the same period.

Outlook: Stable

CRISIL believes that SE will benefit from its promoters'
extensive industry experience over the medium term. The outlook
may be revised to 'Positive' if improvement in scale of
operations and profitability resulting in higher cash accruals
and efficient working capital management leads to improvement in
financial profile. Conversely, the outlook may be revised to
'Negative' in case of pressure on the firm's financial risk
profile, particularly its liquidity emanating from lower cash
accruals or larger working capital requirements or any large debt
funded capex.

SE, set up in 1970s, is a Mumbai based partnership firm engaged
in exporting of various spare parts of 2 wheelers, 3 wheelers and
4 wheelers. The firm trades for TATA Leyland, Mercedes, Bajaj,
TVS and etc.

SE reported a profit after tax (PAT) of INR43 lacs on operating
income of INR14.43 Crores for fiscal 2017, vis-a-vis INR6 lacs
and INR4.83 crores, respectively in fiscal 2016.


SURYAVANSHI SPINNING: CRISIL Reaffirms D Rating on INR14.33M Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its ratings at 'CRISIL D/CRISIL D' to the
bank facilities of Suryavanshi Spinning Mills Limited (SVSML).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee         0.66       CRISIL D (Reaffirmed)

   Cash Credit           14.33       CRISIL D (Reaffirmed)

   Corporate Loan        10.43       CRISIL D (Reaffirmed)

   Long Term Loan         9.75       CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     4.83       CRISIL D (Reaffirmed)

The ratings reflect current delays by SVSML in servicing its
debt. The delays have been caused by SVSML's weak liquidity.

The ratings reflect weak financial risk profile marked by modest
net worth, high gearing and weak debt protection metrics. The
ratings also reflect susceptibility of operating margin to
volatility in raw material prices. However, it benefits from
extensive experience of SVSML's promoters in the textile
industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Delays in debt servicing
SVSML has been delaying in repayment of interest and principal
amount of its term loan facility. The same is on account of
company's weak liquidity.

* Weak financial risk profile
The company's financial risk profile is weak marked by modest net
worth, high gearing and weak debt protection metrics. Net worth
was negative on account of accumulated losses over the period.
Debt protection metrics was weak due to operating losses in the
Fiscal 2017

* Susceptibility of operating margin to volatility in raw
material prices
Raw material costs accounted for around 66 per cent of SSML's
revenue in 2016-17. Cotton prices have been highly volatile in
the past which exposes the company to the risk arising due to any
sharp fluctuation in prices.

Strength

* Extensive industry experience of promoters
Extensive experience of promoters of more than 35 years has
helped the company in building strong customer and supplier
relationships.

SVSML, incorporated in 1978, is engaged in cotton yarn spinning
located at Rajna (Madhya Pradesh). SVSML manufactures Polyester,
polyester-viscose Blended Yarns and Medical Textiles Products.
The company is promoted by Mr. B.N Agarwal.

SVSML reported net losses of INR12.8 crore on revenue of INR65.8
crore in fiscal 2017, against INR4.2 crore and INR101.7 crore in
fiscal 2016.


SWARUP INTERNATIONAL: CRISIL Reaffirms B+ Rating on INR3.1MM Loan
-----------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Swarup International (SI) at 'CRISIL B+/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bill Discounting       3.1       CRISIL B+/Stable (Reaffirmed)
   Packing Credit         2.5       CRISIL A4 (Reaffirmed)

The ratings continue to reflect the firm's modest scale in the
intensely competitive stone processing industry, and large
working capital requirement. These weaknesses are partially
offset by its promoters' extensive experience, and moderate
financial risk profile because of moderate debt protection
metrics.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale: With revenue of INR19.56 crore in fiscal 2017,
scale remains small in the intensely competitive stone processing
segment that has many unorganised players due to low entry
barriers.

* Working capital-intensive operations: Gross current assets were
at 136 days as on March 31, 2017, due to stretched receivables of
120-180 days; inventory is likely to be at 20-30 days. Against
this, payables were at 30-60 days. Gross current assets are
expected to remain at similar levels over the medium term.

Strengths

* Partners' extensive experience: Presence of over a decade in
the stone processing industry has enabled the partners to
understand market dynamics and establish healthy relationships
with customers and suppliers.

* Moderate financial risk profile: Financial risk profile is
supported by interest coverage and net cash accrual to total debt
ratios estimated at 1.60 times and 0.08 time, respectively, for
fiscal 2017.

Outlook: Stable

CRISIL believes SI will continue to benefit over the medium term
from the partners' extensive experience. The outlook may be
revised to 'Positive' in case of substantial and sustained
increase in revenue, along with stable profitability, or
considerable rise in networth because of sizeable equity
infusion. The outlook may be revised to 'Negative' if there is
steep decline in profitability, or significant weakening of
capital structure due to stretch in working capital cycle.

Established in 2005 as a partnership between Mr. Rajesh
Jhunjhunwala, Mr. Gaurav Jhunjhunwala, Mr. Himanshu Gupta, and Ms
Nirmal Gupta, SI's facilities are in Kota, Rajasthan.

On a provisional basis, the company is estimated to report profit
after tax of INR0.19 crore on revenues of INR19.6 crores in 2016-
17. It recorded profit after tax (PAT) of INR0.21 crore on
revenues of INR18.6 crores in 2015-16.


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

-- INR120 mil. Fund-based working capital limits (Long-term)
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING) rating; and

-- INR50 mil. Term loan (Long-term) migrated to non-cooperating
     category with IND D(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 20, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2008, VSIIPL is a Bangalore-based manufacturer of
sponge iron.


VENTURE IMPEX: CRISIL Assigns B+ Rating to INR9.9MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the long
term bank facilities of Venture Impex (VI).

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Cash Credit             9.9        CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility      5.1        CRISIL B+/Stable

The ratings reflect VI's average financial risk profile marked by
moderate gearing levels and moderate debt protection metrics and
the extensive experience of promoters in the electrical industry.
These rating strengths are partially offset by the moderately
high working capital operations.

Key Rating Drivers & Detailed Description

Weakness

* Working capital intensive nature of operations: The company has
working capital intensive nature of operations reflected in its
high Gross Current Asset days at 154 days as on March 31st, 2017.

Strengths

* Extensive experience of Promoters:
The promoters of VI have a track record of around 2 decades. The
promoter's lineage has an established customer relation through
the company has helped VI to scale up its operations.

* Average financial risk profile marked by moderate gearing ratio
and comfortable debt protection metrics:
The company has an average financial risk profile marked by
moderate gearing ratio at 1.5 times for March 2017 and
comfortable debt protection metrics for the same period.

Outlook: Stable

CRISIL expects VI to continue to benefit from the long standing
experience of the promoters. The outlook may be revised to
'Positive' in case of significant improvement in the firm's
financial risk profile driven by higher than expected cash
accruals or capital infusion along with efficient working capital
management. Conversely, the outlook may be revised to 'Negative'
in case of larger than expected working capital requirements or
lower than expected cash accruals resulting in pressure on the
liquidity profile of the firm.

Venture Impex (VI) a proprietorship concern of Mr. Vikrant
Aggarwal is engaged in trading in petroleum products such as
different types of lubricant and fuels since 2001. The products
are majorly lubricants and fuels.

VI reported a profit after tax (PAT) of INR15 lacs on net sales
of INR72 Crores for fiscal 2017, vis-a -vis INR8 lacs and
INR67.78 crores, respectively in fiscal 2016.


VIDHATRI MOTORS: CRISIL Reaffirms 'B+' Rating on INR7.50MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Vidhatri Motors Private Limited (VMPL) at 'CRISIL B+/Stable'.

                        Amount
   Facilities          (INR Mln)   Ratings
   ----------          ---------   -------
   Cash Credit            0.75     CRISIL B+/Stable (Reaffirmed)

   Inventory Funding
   Facility               7.50     CRISIL B+/Stable (Reaffirmed)

   Term Loan              1.75     CRISIL B+/Stable (Reaffirmed)

The rating reflects a below-average financial risk profile
because of a  modest networth, high gearing, and weak debt
protection metrics, and exposure to intense competition in the
automobile (auto) distribution industry. These rating weaknesses
are partially offset by the extensive industry experience of the
promoter.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile
That's due to a modest networth, aggressive gearing, and weak
debt protection metrics. The financial risk profile is likely to
remain below average over the medium term because of high
reliance on external debt to fund working capital requirement.

* Exposure to intense competition: The auto dealership sector is
intensely competitive with a large number of players present
across passenger car segments. The company faces intense
competition from dealers of other established players including
Maruti Suzuki India Ltd (MSIL; rated 'CRISIL AAA/Stable/CRISIL
A1+'), Tata Motors Ltd (TML), and Hyundai Motors India Ltd (HMIL)
as well as from the unorganised used-car market. The business
risk profile will remain constrained by exposure to risks
relating to geographic concentration and intense competition in
the auto dealership segment

Strengths

* Extensive industry experience of the promoter
The promoter, Mr. M L Kantharaj Urs, began operations by
acquiring a dealership of Daewoo Motors India Pvt Ltd for almost
11 year. A group company, VMPL has been a dealer for TML
automobiles in Karnataka for almost 10 years, and has also
successfully added Fiat dealership, post the split of the Tata
and Fiat agreement in fiscal 2015.

Outlook: Stable

CRISIL believes VAPL will continue to benefit from the industry
experience of its promoter. The outlook may be revised to
'Positive' in case of an increase in scale of operations and
profitability, leading to improvement in the financial risk
profile. The outlook may be revised to 'Negative' if the
financial risk profile weakens further because of a stretched
working capital cycle, and/or any debt-funded capital
expenditure.

Incorporated in 2012, VMPL is a dealer of passenger vehicle
manufacturer Renault India Ltd in Mysuru, Karnataka. The company
has a showroom and a workshop in Hinkal, Mysuru.

Profit after tax (PAT) and net sales are estimated at INR0.21
crore and INR42 crore, respectively, for fiscal 2017; PAT was
INR0.20 crore on net sales of INR40 crore for the previous
fiscal.


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

-- INR45 mil. Fund-based working limits migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)
    rating; and

-- INR28.52 mil. Long-term loans migrated to non-cooperating
    category with IND BB(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 28, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

VFPL, established by Vishwanath Munigilal Agarwal in 2010 as a
closely held public limited entity, was converted into a private
limited company in May 2016. The company has been operational
since November 2013 and is engaged in dyeing and printing of
fabrics.


YAK GRANITE: CRISIL Lowers Rating on INR6MM Cash Loan to 'C'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Yak Granite Industries Private Limited (YGIPL) to 'CRISIL C'
from 'CRISIL B-/Stable' and reaffirmed the short-term facilities
at 'CRISIL A4'.

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

   Cash Credit            6.00      CRISIL C (Downgraded from
                                    'CRISIL B-/Stable')

   Letter of Credit       0.25      CRISIL A4 (Reaffirmed)

   Proposed Long Term     1.50      CRISIL C (Downgraded from
   Bank Loan Facility               'CRISIL B-/Stable')

The downgrade reflects CRISIL's belief that the financial risk
profile, particularly liquidity, will remain under pressure over
the medium term owing to insufficient cash accrual to meet long-
term debt repayment obligation. In addition, the bank limit has
remained extensively utilised in the 12 months through January
2017, indicating high working capital intensity of operations.

The ratings reflect a modest scale of operations, and working
capital-intensive operations, and a below-average financial risk
profile because of weak gearing and debt protection metrics.
These weaknesses are partially offset by the extensive experience
of the promoter in the granite processing industry and an
established customer relationship.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations:
With revenue of INR23.29 crores in fiscal 2017, the scale remains
small in the competitive granite processing industry that has
many players. This limits the ability to exploit benefits of
economies of scale and restricts bargaining power with customers.
Despite expected improvement, revenue is likely to remain at a
similar level over the medium term.

* Working capital-intensive operations:
Gross current assets were more than 510 days, because of sizeable
inventory of 153 days and stretched receivables of 347 days, as
on March 31, 2017. The company is exposed to significant debtor
risk, with debtors greater than 6 months of INR13.67 crores as on
March 31, 2017. Consequently, the bank limit was fully utilised
over the past one year. Operations are expected to remain working
capital intensive over the medium term.

* Below-average financial risk profile:
Owing to a small scale of operations and moderate operating
profitability, accretion to reserves is limited, resulting in a
modest networth of INR6.54 crore as on March 31, 2017. The
gearing was weak at 3.23 times as on March 31, 2017, due to high
long-term debt, significant working capital debt, and a modest
networth. The gearing is likely to remain weak over the medium
term. Debt protection metrics were subdued as reflected in
interest coverage ratio of 1.79 times and net cash accrual to
total debt ratio of 0.09 time, in fiscal 2017. The metrics are
expected to remain subdued over the medium term.

Strength

* Extensive industry experience of promoter and an established
customer relationship:
The promoter, Mr. Badri Narayanan, has an experience of more than
four decades in the granite processing industry. This has
resulted in an established relationship with customers. Also,
operating profitability has been moderate at 10.83-17.99% in the
four fiscals through 2017.

Set up in 1982 by Mr. Badri Narayan, YGIPL processes rough
granite blocks, monuments, and granite slabs. Operations are
managed by Mr. Narayan.

The company reported profit after tax (PAT) of INR0.49 crores on
revenue of INR23.29 crores in fiscal 2017, vis-a-vis PAT of
INR0.46 crores on revenue of INR24.87 crores in fiscal 2016.


* RBI Sends Second List of 40 Defaulters to be Referred to NCLT
---------------------------------------------------------------
Moneycontrol.com, citing CNBC-TV18, reports that the Reserve Bank
of India has sent the second list of over 40 large corporate
defaulters that include Videocon, JP Associates, IVRCL and Visa
Steel, among others, to be referred to the National Company Law
Tribunal (NCLT).

Among other loan defaulting companies -- Uttam Galva, Castex,
Jayswal Neco, Ruchi Soya, Nagarjuna Oil & Orchid Chemicals, East
Coast Energy, SEL Manufacturing, Soma Enterprises, Asian Colour,
Ispat Coated and Unity Infraprojects -- are among the fresh list
identified by the central bank to be referred to the NCLT under
the Insolvency and Bankruptcy Code (IBC).

Most of the companies on the list are said to be from
infrastructure and power sectors, the report notes.

The total defaulter list may have 35-40 accounts and State Bank
of India alone gets a list of 25-26 accounts, CNBC-TV18 sources
added.

In June, the central bank had identified 12 large stressed
accounts to be taken to the NCLT. Each of these companies owed
over INR5,000 crore with a total of around INR175,000 crore,
accounting for 25 percent of the bad loans in the Indian banking
system.



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


TOSHIBA CORP: Western Digital Not to Seek Veto Power in Deal
------------------------------------------------------------
The Japan Times reports that Western Digital Corp. will not seek
veto power in Toshiba Corp.'s chip unit -- which it aims to
jointly buy with other investors -- in order to avoid lengthy
antitrust scrutiny, sources said on August 29.

Toshiba and Western Digital, which are partners in a flash memory
venture, are close to reaching a deal over Toshiba's sale of its
chip unit, Toshiba Memory Corp, The Japan Times relates. The
development comes after a bitter feud over whether the Japanese
firm needs the U.S. partner's consent for the deal.

According to the report, Western Digital, a joint investor in
Toshiba's Yokkaichi flash memory plant in Mie Prefecture, is set
to buy JPY150 billion ($1.3 billion) of the chip firm's
convertible bonds. Western Digital's voting rights will be
limited to roughly 15 percent when it converts the bonds, the
sources said.

While the two companies plan to take the chip unit public in
roughly three years, Western Digital's stake will still be
limited to no more than one-third of all shares, even if the U.S.
firm goes ahead with plans to buy additional shares, meaning it
will not have veto power over management issues, the sources
said, The Japan Times relays.

The report relates that Toshiba and Western Digital are still
discussing when the U.S. firm will buy additional shares in the
chip firm, the sources said.

Toshiba President Satoshi Tsunakawa and Western Digital Chief
Executive Officer Steve Milligan held talks August 28 and reached
a broad agreement on the sale of Toshiba Memory.

Toshiba is expected to announce the agreement today, August 31,
the report says.

Ties between the two companies had soured after Western Digital
took Toshiba to court, claiming that the unit sale without its
consent would breach their joint venture contract, the report
recalls.

Western Digital, the government-backed Innovation Network Corp.
of Japan, the Development Bank of Japan and U.S. fund Kohlberg
Kravis Roberts & Co. is set to offer JPY1.9 trillion for Toshiba
Memory, the Japan Times notes.

                          About Toshiba

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

As reported in the Troubled Company Reporter-Asia Pacific on
June 19, 2017, S&P Global Ratings said it has kept its 'CCC-'
long-term and 'C' short-term ratings on Toshiba Corp. on
CreditWatch with negative implications.  The long- and short-term
ratings on Toshiba have remained on CreditWatch with negative
implications since December 2016, when S&P also lowered the long-
term ratings because of a likelihood that the company might
recognize massive losses in its U.S. nuclear power business.  S&P
kept them on CreditWatch negative when it lowered the long- and
short-term ratings in January 2017 and when S&P lowered the long-
term ratings in March 2017.

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


TOSHIBA CORP: May Not Finalise Chip Unit Sale By Aug. 31 Deadline
-----------------------------------------------------------------
Reuters reports that Toshiba Corp may not seal a $17.5 billion
deal to sell its memory chip unit by a self-imposed Aug. 31
deadline due to disagreements over details of an offer by the
bidders, people familiar with the matter said late on August 29.

Talks with a consortium led by Western Digital Corp were in final
stages, with the head of the U.S. firm in Japan to hammer out
details, the sources said, requesting anonymity because they were
not authorised to speak with media, Reuters relates.

The two sides, however, could not yet agree on specifics such as
the size of Western Digital's future stake in the business, they
said, while adding the two sides would continue negotiating,
Reuters says.

A Toshiba spokesman said the company could not comment on details
of the talks. A Western Digital representative declined to
comment, Reuters notes.

According to Reuters, Toshiba has been trying to sell the unit
for months to pay down debt and cover the impact of over $6
billion in liabilities linked to U.S. nuclear arm Westinghouse.

Reuters relates that Toshiba wants to close the sale by the end
of the fiscal year in March to ensure it does not report negative
net worth, or liabilities exceeding assets, for a second year
running. This could result in a delisting from the Tokyo Stock
Exchange.

Given regulatory approvals could take six months, the company has
been hoping to reach a deal by the end of August to ensure it can
close the sale in time, Reuters says.

In addition to Western Digital, the consortium includes U.S.
private equity firm KKR & Co and the state-backed Innovation
Network of Japan and Development Bank of Japan. Sources have said
the group was offering around JPY1.9 trillion ($17.5 billion) for
the business.

                          About Toshiba

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

As reported in the Troubled Company Reporter-Asia Pacific on
June 19, 2017, S&P Global Ratings said it has kept its 'CCC-'
long-term and 'C' short-term ratings on Toshiba Corp. on
CreditWatch with negative implications.  The long- and short-term
ratings on Toshiba have remained on CreditWatch with negative
implications since December 2016, when S&P also lowered the long-
term ratings because of a likelihood that the company might
recognize massive losses in its U.S. nuclear power business.  S&P
kept them on CreditWatch negative when it lowered the long- and
short-term ratings in January 2017 and when S&P lowered the long-
term ratings in March 2017.

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


TSUKUBA BRAINS: Cord Blood from Bankrupt Group Resold to Clinics
----------------------------------------------------------------
The Mainichi Shimbun reports that the cord blood of at least 800
people that was stored by a private cord blood bank in Ibaraki
Prefecture that went bankrupt in 2009 was resold via brokers to
clinics nationwide.

Clinics around Japan have been administering cord blood to
patients without notifying the Health, Labor and Welfare Ministry
in advance, touting its anti-cancer and cosmetic effects. The
report says the ministry is poised to file criminal complaints
over the unauthorized use of the cord blood.

The Mainichi Shimbun learned about the resale from the 64-year-
old former president of the company that originally stored
approximately 1,500 people's cord blood, and multiple other
sources close to the case. The former president, along with her
relatives, founded the cord blood bank Tsukuba Brains in 1998
with the cooperation of a now deceased University of Tsukuba
professor. The company began its program of storing cord blood
from the general public in November 2002.

However, the costs of the liquid nitrogen freezing equipment and
construction of the facility were enormous, and the company
eventually turned to investment funds for assistance. Still,
company finances failed to improve, and in response to a petition
from creditors, the Mito District Court's Tsuchiura branch
decided to begin bankruptcy proceedings for Tsukuba Brain in
October 2009, the report recalls. At the time, the cord blood
bank had in its possession cord blood from 500 people that had
been provided free of charge by hospitals, as well as that of its
1,000 or so customers.

In early 2010, a company that some of the creditors set up was
chosen to take possession of the cord blood, and the cord blood
of about 1,000 people was transferred there. This company is
believed to have resold cord blood to brokers. Looking back, the
former president of Tsukuba Brains says, "I think the creditors'
main objective from the very beginning was to get their hands on
the cord blood."

According to the report, a joint investigative squad of Ehime,
Ibaraki, Kyoto and Kochi prefectural police is trying to pinpoint
the routes through which the cord blood was resold and is set to
launch a full-scale investigation into allegations that clinics
across Japan violated the law on the safety of regenerative
medicine.

The health ministry, meanwhile, is poised to bring a criminal
suit against multiple clinics suspected to have administered cord
blood to patients without submitting treatment plans to the
ministry for review prior to beginning treatment, The Mainichi
Shimbun says.

The Mainichi Shimbun relates that police at the investigative
headquarters believe that the cord blood of some 800 people that
came from Tsukuba Brains was resold via a clinic in the city of
Kyoto, and was administered to patients in multiple clinics in
cities such as Tokyo and Osaka without prior notification to
authorities. In April, authorities raided a facility over a
suspected violation of the law on the safety of regenerative
medicine. And in June, the health ministry issued an emergency
order based on the same law, temporarily prohibiting 11 clinics
nationwide from administering cord blood to their patients, which
they had done in the name of cancer treatment and for cosmetic
reasons, charging patients amounts from a little over 1 million
yen to several million yen.

Cord blood is found in the umbilical cord and placenta. It is
abundant in blood-forming stem cells, and is said to be effective
in treating leukemia and other blood-related illnesses, The
Mainichi Shimbun discloses. The law on the safety of regenerative
medicine that went into force in 2014 stipulates that medical
practitioners consult a panel approved by the health ministry
when using another person's cord blood for regenerative medical
purposes, and submit a treatment plan to the ministry prior to
starting treatment, the report notes.



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


MERCER GROUP: Posts NZ$6.9MM Net Loss in Year Ended June 30
-----------------------------------------------------------
Mercer Group Limited (MGL) has reported a net before tax loss of
NZ$4.65 million for the full year to June 30, 2017. As forecast
at the half year MGL generated positive EBITDA, albeit minimal,
for the second half of the year being reported, signalling the
start of the long awaited turnaround.

The company said "While the annual result is not where we need or
want it to be, the efforts of the past year have been focused on
fundamental change to our operations and strategy:

1. Improved H&S, resulting in tertiary qualification from ACC
2. Successful rights issue undertaken in November 2016
3. Acquisition of Haden & Custance in December 2016
4. The completion of significant restructuring across the group
5. Positive normalised EBITDA for the second half of the
financial year

"We now consider MGL as a holding company with three separate
business units, operating independently of each other:

1. Haden & Custance ('H&C') - the design and supply of automated
and robotic bulk materials handling equipment and systems for the
bulk cheese, butter and online fulfilment sectors. This also
includes the Titan, AiCo and Beta ranges (previously within
Mercer Stainless).

2. S-Clave - the disruptive medical sterilisation technology that
is in the final stages of commercialisation.

3. Mercer Stainless - fabricator of stainless steel equipment for
the dairy, wine and food sectors, predominantly in New Zealand.

Financial Performance

"Operating revenue of NZ$26.6 million was 14% up on prior year.
The revenue contribution from H&C for the machines business was
30%, this included seven months trading for H&C. Revenue for the
stainless fabrication business was NZ$21.6 million down 12% from
prior year. Post the restructure of the fabrication business it
is now operating off a smaller cost base due to downsizing our
New Plymouth site.

"Reported EBITDA was a loss of NZ$3.5 million vs prior year loss
NZ$3.2 million. However, normalised EBITDA was loss a NZ$0.56
million for FY17 vs NZ$3.46 million for prior year, and as noted
above, was positive for the second half of the financial year.

"The past year has seen the completion of the restructuring
announced twelve months ago and saw wages and salaries reduced by
over NZ$1.9 million year on year (given timing of staff
reductions, this figure is more when annualised). The acquisition
and integration of H&C into the MGL's operations brought about
short term additional cost and disruption to the businesses.
However, H&C has resulted in estimated annual cost savings of
NZ$1.2 million most of which are staff related and more
importantly H&C has improved efficiency in our operating
platforms for the future.

"Titan costs and operational issues have been stabilised with a
complete restructuring of resources supporting the brand. The
impairment of Titan inventory of NZ$1.16 million was necessary
after an assessment and the transfer of all Titan stock to H&C.
There was also a NZ$250,000 impairment of Titan goodwill to
reflect the lower value of future revenues.

"MGL borrowings reduced by NZ$2.3 million during the year.
Banking facilities have been rolled over with core bank debt
increasing by NZ$1.1 million due to the acquisition of Haden &
Custance (note, Gresham Finance was repaid NZ$3.5 million). MGL
also utilised a NZ$1.5 million temporary overdraft facility with
a limit step down of NZ$0.5 million by October 31 and the balance
of the limit expiring by 31 March 2018. MGL has a financial
banking covenant based on achieving a level of EBITDA, the
covenant is tested at December 31. Covenant compliance depends on
H&C achieving forecast sales, which it is currently on track to
do.

"The reported after-tax loss of NZ$6.9 million includes a NZ$2.1
million expense for deferred tax adjustments, which is the result
of derecognising tax loss assets that resulted from shareholder
continuity changes at the time of the rights issue. MGL retains
an off balance sheet future tax benefit of NZ$2.85 million that
can be recognised in future years when expected taxable profits
are available to offset them against.

"The balance sheet position has improved although we note that
the deferred tax adjustment in 'Non-Current Assets' lines masks
this. As explained above the off balance sheet tax asset can be
capitalised in the future periods when expected taxable profits
are available.

Haden & Custance

Haden & Custance (www.hadencustance.com) specialises in the
design and supply of automated robotic material handling systems
that prepare bulk cheese and butter for processing.

H&C's principal focus is the US where it has an established
customer base of tier one cheese and butter companies, an
installed base of systems and a reputation for delivering high
quality solutions on time, that work. There is a significant
growth opportunity in H&C's core business as the industry
fundamentals are strong (cheese production increasing in the US
by c.3% per annum), companies strategically want more automation
in their plants given acute labour shortages in the US, the
installed base provides a positive references, and the ROI of H&C
systems is compelling.

In addition to the core sectors, H&C are currently working with a
large global online retailer to design an automated system for
their fulfilment centres. If this is successful, it will be a
material short term growth opportunity that will require
investment in our support services in the US market. We will keep
the market updated on this exciting development.

The Mercer machines (Titan, AiCo and Beta) has now been
transferred to H&C and have a better platform from which to
improve and grow. This is based on; (i) the core capability set
of the H&C team being mechanical, electrical and controls design,
an area where Mercer Stainless did not have the appropriate
resource or skill set; and (ii) an outsourced business model that
is leading to build cost savings.

"As reported at the half year, given the poor performance of
Titan over a long period, we have undertaken a full review of the
technology. This was driven by John Kelsey, our new Titan product
manager who joined H&C from a large global slicing company. While
we are still of the view that the Titan technology is good and
the sectors it sells into are growing, the legacy of the previous
installations, many of which resulted in returned machines,
remain. Given the new team and operating structure we remain
committed to Titan and the long term opportunity it represents
but note that growth will be more moderate than previously
forecast in the short term.

"More encouragingly, the AiCo line of packaging equipment has a
strong pipeline of opportunities in both the red meat and
horticultural sectors. Both the AiCo and Beta range of equipment
have benefited from the move to H&C with reduced build costs.

"In the year ahead H&C are focused on execution of their existing
sales pipeline, developing the online fulfilment systems and
building the presence in the US. H&C currently has one person
based in Green Bay, Wisconsin but are planning on increasing this
number and increasing the presence of our NZ based team in the
US. While the opportunity for H&C is strong, the business is a
capital equipment business that is susceptible to delays in
orders which is difficult from a working capital perspective.
Subject to adequately resourcing the H&C team, it is our belief
that H&C can grow to NZ$50 million revenue in the next two to
three years.

S-Clave

"We continue to make solid progress with the S-Clave. As
announced at the half year, we considered capital raising options
for the S-Clave, but ultimately made the decision that we should
further develop the technology before revisiting capital
structures.

"Key to the final development to a commercialised product is our
partnership with our Australian sterilisation company Atherton's,
who have proved to be a highly credible and positive influence on
the development. Critically, working with Atherton's has meant
that we will now be able to sell the S-Clave as a retro-fit to
existing Atherton's autoclaves, which reduces the upfront cost to
customers, and simplifies the approval process. We are now
finalising the sealing process of the container with testing of
prototypes being undertaken currently. This has been slower than
we would like due to the complexities of the process and time
taken to manufacture the prototypes (they need to be 3D printed
out of high temperature resistant plastics). We expect the final
testing to be complete within the next three months after which
we will invest in the required tooling with a view to launching
the S-Clave in the calendar year 2018.

"Mercer and Atherton's have recently presented the S-Clave to a
number of hospitals and medical clinics in Australia. The
feedback has been very positive and we have four major hospitals
and one private hospital group that have requested to be included
in the initial roll out of the S-Clave. We are currently looking
to recruit a senior Australian based commercialisation officer to
work with Atherton's to drive the roll out of the S-Clave.

"We have agreed in principal terms with Atherton's for the roll
out of the S-Clave in Australia. We will update the market on
these terms once finalised and documented.

"While the development process for the S-Clave has been slower
than we would have envisaged, we have not seen anything to date
that changes our view that the S-Clave represents a significant
opportunity for MGL. The market feedback has been strong and we
have the right partner in Atherton's for an initial launch in
Australia. We still have a relationship with the large US based
sterilisation company, who now have a non-exclusive license
rather than exclusive, which provides us with more flexibility in
our international market strategy.

Mercer Stainless

"The Mercer Stainless fabrication business had a strong second
half of the financial year. The acquisition of H&C and subsequent
moving of the Mercer machines out of the business has allowed the
business to focus on its core strengths - the fabrication of
stainless steel equipment for the dairy, wine and food sectors.

"The Marlborough earthquake in late 2016 opened up the
opportunity to enter the wine sector. The wine sector has grown
significantly over the past 20 years with exports reaching NZ$1.6
billion in the year to March 2017 and the industry has a goal of
reaching NZ$2 billion of exports by 2020. We have now undertaken
work for a number of the top wine companies including Penrod
Ricard and Villa Maria and plan on continuing to build our
presence in the sector. It provides much needed diversity to the
dairy sector which Mercer Stainless was too reliant.

While that diversification is essential for a business like
Mercer Stainless, dairy remains a significant sector for us.
Investment in dairy this year has increased, which has seen good
workflows through both our Christchurch and New Plymouth
facilities, and the medium term outlook for the sector is strong.

"As outlined above, we are continuing to seek to diversify the
Mercer Stainless business away from an over reliance on dairy,
which is cyclical. We will be improving the front end sales
function in the business with cultural change and a more market
focused approach. The key to the success of Mercer Stainless is
full workshops and while we have started the new financial year
well with good workloads, we have to originate more work for the
remainder of the financial year.

"We were pleased to win the contract to build the replacement
500m3 silo for Fonterra at Edendale which was delivered in August
2017. We continue to work closely with Fonterra and the industry
on new designs and codes for the manufacture of tanks for the
dairy industry. There is nothing further to update as regards
insurance claims from the Edendale collapse at this point.

Outlook

"We are forecasting a continuation of the improved operating
performance for the 2018 financial year. H&C has a strong
pipeline, but it is subject to order timing delays so the focus
is on executing on the opportunities in front of it and building
momentum in the market. We are focused on launching the S-Clave
in Australia this financial year which will be a significant
milestone for the group. Mercer Stainless is currently busy and
has a decent outlook for the current financial year.

"At a strategic level, we are comfortable with the businesses.
Robotics and automation (H&C) and medical technology (S-Clave)
are highly relevant in today's world and we now have a settled
structure and platform from which to grow in both of these
spaces.

"Execution of the growth plans may well require further capital,
which we are constantly reviewing. In addition, while each of the
three businesses has opportunities as described, we will also
remain open to further possible and relevant acquisitions and
partnerships."

                        About Mercer Group

Mercer Group Limited (NZE:MGL) -- http://www.mercers.co.nz/--
engages in the designing and manufacturing of technology
solutions and the fabrication of stainless steel products. The
Company operates in segments, which include Stainless
Fabrication; Mercer Technologies, and Corporate. The Stainless
Fabrication segment includes the fabrication workshops in
Christchurch and New Plymouth. The Stainless Fabrication segment
designs and supplies food processing and packaging equipment,
including Titan Slicers, Aico and Beta range. The Stainless
Fabrication segment also undertakes fabrication for the dairy
sector. The Mercer Technologies segment holds the S-clave
technology, which the Company is commercializing. The Company
offers various services, which include consultation;
installation; commissioning; emergency; maintenance services;
calibration; validation; auditing, and spares requirements. The
Company's subsidiaries include Mercer Stainless Limited, Mercer
Technologies Limited and Mercer Middle East Limited.



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


CEBU AIR: Egan-Jones Hikes Sr. Unsec. Debt Rating to BB+
--------------------------------------------------------
Egan-Jones Ratings Company, on July 9, 2017, raised the local
currency and foreign currency senior unsecured ratings on debt
issued by Cebu Air Inc to BB+ from B+.

Cebu Air, Inc., operating as Cebu Pacific, is a Philippine low-
cost airline based on the grounds of Ninoy Aquino International
Airport, Pasay City, Metro Manila, in the Philippines.



                             *********

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.


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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.
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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