TCRAP_Public/180124.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

          Wednesday, January 24, 2018, Vol. 21, No. 017

                            Headlines


A U S T R A L I A

ASSURE NSW: First Creditors' Meeting Set for Jan. 30
CUSTOM BUS: First Creditors' Meeting Set for Jan. 30
GAURA NITAI: First Creditors' Meeting Set for Jan. 31
KIMBERLEY KAMPERS: Two-Month Deadline to Pay Creditors Set
NATIONAL SOLAR: First Creditors' Meeting Set for Jan. 31

ROSEWOOD RESOURCES: First Creditors' Meeting Set for Feb. 2


C H I N A

E-MART: To Close Last Supermarket Outlet in China
FUTURE LAND: Proposed Share Issue No Impact on Moody's Ba3 CFR


H O N G  K O N G

FWD LIMITED: Fitch Rates Proposed USD-Denominated Sec. 'BB+'
FWD LIMITED: Moody's Assigns Ba2(hyb) Rating to Sub. Capital Sec.
UNION MEDICAL: Moody's Assigns B1 CFR and New Unsec. Notes Rating


I N D I A

AARTI INFRASTRUCTURE: Ind-Ra Assigns BB Rating, Outlook Stable
AGARWAL TOUGHENEED: CARE Moves B+ Rating to Not Cooperating
ALI ENTERPRISES: CARE Assigns B+ Rating to INR9.25cr Cash Loan
BABA PURAN: Ind-Ra Assigns tB Rating to INR20MM Term Deposits
BAJAJ PROCESSPACK: CARE Lowers Rating on INR3cr LT Loan to B

BALWAN POULTRY: CARE Moves D Rating to Not Cooperating Category
BTM FABRICS: CARE Reaffirms B+ Rating on INR11cr LT Loan
DEVANSHI CONSTRUCTION: CARE Cuts Rating on INR10cr Loan to D
DONATELLO IFMR: Ind-Ra Affirms BB+(SO) Rating on Series A2 PTCs
DRASHTI COTSPIN: CARE Reaffirms B+ Rating on INR24.09cr Loan

GORAYA STRAW: CARE Moves D Rating to Not Cooperating Category
H K LUMBERS: CARE Raises Rating on INR1.35cr LT Loan From D
H K TIMBERS: CARE Raises Rating on INR6cr LT Loan From D
KESHARI INDUSTRIES: CARE Moves B+ Rating to Not Cooperating
KINSHUK ENTERPRISE: CARE Moves B+ Rating to Not Cooperating

M.P.K. ISPAT: CARE Moves D Rating to Not Cooperating Category
M.P.K. METALS: CARE Moves D Rating to Not Cooperating Category
MARUTI NANDAN: CARE Moves B+ Rating to Not Cooperating Category
NARESH SINGHAL: CARE Reaffirms B+ Rating on INR3.25cr LT Loan
NIKITA JEWELLERS: Ind-Ra Upgrades Issuer Rating to 'BB+'

PATDIAM JEWELLERY: Ind-Ra Affirms BB- LT Issuer Rating
PRAJA MECHANICALS: CARE Lowers Rating on INR2cr LT Loan to B
PRAKASH CORPORATES: CARE Assigns B+ Rating to INR8cr LT Loan
PRAYAG CLAY: CARE Assigns B+ Rating to INR12.70cr LT Loan
REALCADE LIFESCIENCE: CARE Ups Rating on INR31.84cr Loan to B+

RELIANCE COMM: Hearing on Ericsson's Insolvency Bid Set Feb 19
S J EXPORTS: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
SHARON BIO-MEDICINE: CARE Moves D Rating to Not Cooperating
SHREE GEETA: CARE Assigns B+ Rating to INR49.84cr LT Loan
SHRINE ENGINEERING: CARE Moves B Rating to Not Cooperating

VIJAY PHARMA: CARE Assigns B+ Rating to INR6cr LT Loan
VINOD KUMAR: CARE Assigns B- Rating to INR20cr LT Loan
VISA STEEL: SBI Moves NCLT to Start Insolvency Proceedings
VIZEBH AGRI: CARE Lowers Rating on INR11.87cr LT Loan to D


I N D O N E S I A

GOLDEN ENERGY: Moody's Assigns B1 CFR and New Sec. Bonds Rating


J A P A N

TOSHIBA CORP: S&P Raises CCR to 'CCC+'; On CreditWatch Positive


M A L A Y S I A

TH HEAVY: Downplays Suit's Ability to Botch FPSO Job Transfer


M O N G O L I A

CAPITAL BANK: Moody's Affirms Caa1 LT LC Deposit Rating


N E W  Z E A L A N D

JUKEN NEW ZEALAND: To Refocus Production to Address Demand Drop
PRECIOUS 1400: Wellington's Habitual Fix Liquidated Again


                            - - - - -


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A U S T R A L I A
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ASSURE NSW: First Creditors' Meeting Set for Jan. 30
----------------------------------------------------
A first meeting of the creditors in the proceedings of Assure
(NSW) Pty Limited will be held at Suite 601B, Level 6
91 Phillip Street, in Parramatta, NSW, on Jan. 30, 2018, at
3:00 p.m.

Simon Cathro of Worrells Solvency was appointed as administrator
of Assure (NSW) on Jan. 18, 2018.


CUSTOM BUS: First Creditors' Meeting Set for Jan. 30
----------------------------------------------------
A first meeting of the creditors in the proceedings of Custom Bus
Australia Pty Ltd, trading as Custom Bus, and Custom Bus Holdings
Pty Ltd, trading as Custom Buses, will be held at East West Room,
SKYE Hotel Suites, 30 Hunter Street, in Parramatta, NSW, on
Jan. 30, 2018, at 11:00 a.m.

Aaron Kevin Lucan and Simon John Cathro of Worrells Solvency were
appointed as administrators of Custom Bus on Jan. 18, 2018.


GAURA NITAI: First Creditors' Meeting Set for Jan. 31
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Gaura
Nitai Pty Ltd, trading as The Coffee Club Nundah, will be held at
the offices of Worrells Solvency & Forensic Accountants, Level 8,
102 Adelaide Street, in Brisbane, Queensland, on Jan. 31, 2018,
at 9:30 a.m.

Rajendra Kumar Khatri and Lee Crosthwaite of Worrells Solvency
were appointed as administrators of Gaura Nitai on Jan. 19, 2018.


KIMBERLEY KAMPERS: Two-Month Deadline to Pay Creditors Set
----------------------------------------------------------
Claudia Jambor at Northern Star reports that a two-month deadline
has been set for Ballina-based caravan company, Kimberley
Kampers, to pay back its employees and creditors after a rescue
package was passed at last week's creditors meeting.

Northern Star relates that Sydney-based administrator Steven
Nicols of Nicols and Brien Business Recovery said an overwhelming
majority of the more than 50 employees and other stakeholders at
the meeting voted in favor of a Deed of Company Arrangement.

It means Kimberley Kampers has now entered into an agreement with
its creditors as to how the company's affairs would be managed,
the report says.

According to Northern Star, Mr. Nicols said employee wages and
superannuation payments would be paid in full while unsecured
creditors would gain six cents of every dollar owed by March 31.

If that deadline is not met, Mr. Nicols said another meeting
would need to be held to plan a course of action, the report
notes.

Northern Star relates that Mr. Nicols said that proceeds from the
company's campers built prior to January 18 would contribute
toward paying back creditors.

Steven Nicols of Nicols + Brien was appointed as administrator of
Kimberley Kampers on Dec. 7, 2017.


NATIONAL SOLAR: First Creditors' Meeting Set for Jan. 31
--------------------------------------------------------
A first meeting of the creditors in the proceedings of National
Solar Network Pty Ltd will be held at the offices of Worrells
Solvency & Forensic Accountants, Level 15, 114 William Street, in
Melbourne, Victoria, on Jan. 31, 2018, at 2:30 p.m.

Matthew Kucianski of Worrells Solvency was appointed as
administrator of National Solar on Jan. 29, 2018.


ROSEWOOD RESOURCES: First Creditors' Meeting Set for Feb. 2
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Rosewood
Resources Pty Ltd will be held at the offices of McLeod &
Partners, Hermes Building, Level 1, 215 Elizabeth Street, in
Brisbane, Queensland, on Feb. 2, 2018, at 10:00 a.m.

Jonathan Paul McLeod and Bill Karageozis of McLeod & Partners
were appointed as administrators of Rosewood Resources on Jan.
22, 2018.



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C H I N A
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E-MART: To Close Last Supermarket Outlet in China
-------------------------------------------------
Shanghai Daily reports that E-Mart, the South Korean supermarket
chain, will close its last Chinese outlet in Wuxi, Jiangsu
Province on Jan. 31, according to a company announcement.

Run by Shinsegae Group, E-Mart has been in China for 20 years,
Shanghai Daily says. It used to have nearly 30 outlets in the
country.

As of the end of 2016, E-Mart suffered accumulated losses of
CNY900 million (US$141 million) in the Chinese market, the report
discloses.


FUTURE LAND: Proposed Share Issue No Impact on Moody's Ba3 CFR
--------------------------------------------------------------
Moody's Investors Service says that Future Land Development
Holdings Limited's proposal to issue share equity capital, if
successful, is credit positive but will not have an immediate
impact on its Ba3 corporate family rating.

The ratings outlook remains positive.

On January 18, 2018, Future Land Development announced that it
had entered into an agreement to place up to 267,168,000 shares,
or around 4.72% of its existing issued share capital, with not
less than six independent investors.

The company intends to use the net proceeds of around HKD1,546
million for its development and for general corporate purposes.

"Moody's expect Future Land Development's proposed equity
issuance will enhance the company's equity base and moderately
reduce its debt leverage," says Stephanie Lau, a Moody's Vice
President and Senior Analyst.

The company's proforma adjusted debt/capitalization, with the
share placement, would fall slightly to 78.0% from 79.2% as of
the end of June 2017.

Additionally, the share placement proceeds will provide the
company with additional liquidity by boosting its cash balance.
The proceeds equaled 5.4% of the company's cash balance of
RMB23.5 billion as of the end of June 2017.

Moody's expects that Future Land's leverage ratio, as measured by
adjusted revenue/debt including its share in joint ventures, will
improve towards 100%-105% over the next 12-18 months from around
50.7% in the 12 months ended June 2017. Its interest coverage, as
measured by adjusted EBIT/interest including its share in joint
ventures, is also expected to improve to around 4.5x-5.0x from
2.4x in the 12 months ended June 2017.

The improvement will be supported by growth in revenue and the
company's profit margin, in turn underpinned by strong contracted
sales and average selling prices in the past two years.

The company achieved contracted sales of RMB126.47 billion in
2017, up 94.4% from 2016, after strong 120% year-on-year contract
sales growth in 2016. Its average selling prices also increased
by 10% and 27% year-on-year in 2017 and 2016, respectively.

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

Founded in 1996, Future Land Development Holdings Limited engages
primarily in residential development. At the end of June 2017,
Future Land Development maintained a presence in 47 cities in
China, with an attributable land bank of approximately 25.64
million square meters of gross floor area.



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


FWD LIMITED: Fitch Rates Proposed USD-Denominated Sec. 'BB+'
------------------------------------------------------------
Fitch Ratings has assigned Hong Kong-based insurance group FWD
Limited's (Issuer Default Rating: BBB+/Stable) proposed US
dollar-denominated perpetual capital securities an expected
rating of 'BB+(EXP)'.

The proposed securities will be FWD Limited's direct, unsecured
and subordinated obligations. Net proceeds will be used to redeem
part of the company's senior notes and fund the ongoing expansion
of its life insurance subsidiary in Hong Kong, if needed.

The final rating is contingent on the receipt of final documents
conforming to information already received.

KEY RATING DRIVERS

The proposed securities are rated three notches below FWD
Limited's Issuer Default Rating (IDR) due to their subordinated
status and non-performance risk.

The securities are notched down two levels to reflect the poor
recovery prospects of subordinated debt issued at a holding
company. In the event of winding-up, the rights and claims of
security holders rank pari passu with those of any parity
obligations, such as the issuer's preference shares. However, the
securities rank senior to junior obligations, including ordinary
shares.

One additional notch is applied for non-performance risk, which
Fitch sees as minimal since interest cancellation is at the
issuer's sole discretion.

According to Fitch's methodology, the perpetual securities will
receive full equity credit in the capital adequacy assessment to
reflect their subordination and perpetual nature, which support
balance-sheet loss absorption. They will also be eligible for
100% equity credit in the calculation of Fitch's financial
leverage due to their non-cumulative features. Fitch expects FWD
Limited's financial leverage to decrease to below 30% post-
issuance, while fixed-charge coverage is likely to reduce to
below 3x on a pro-forma basis.

No extra step-up margin will be added to the initial credit
spread when the issuer resets the rate, even though FWD Limited
has the option to redeem the securities. Fitch considers the
absence of a step-up margin as reducing the issuer's incentive to
call the securities, which reinforces their perpetual character.

Fitch expects financial leverage to be commensurate with FWD
Limited's rating category after the issue of the securities. FWD
Limited is the ultimate holding entity of FWD Life Insurance
Company (Bermuda) Limited (Insurer Financial Strength: A/Stable)
and FWD General Insurance Company Limited (Insurer Financial
Strength: A/Stable). Revenue from the life operations accounted
for more than 90% of FWD Limited's total operating revenue in
1H17, based on unaudited statements. FWD Limited is majority
owned by Richard Li, a businessman in Hong Kong.

RATING SENSITIVITIES

Any change to FWD Life Insurance Company (Bermuda) Limited's
Insurer Financial Strength rating is likely to result in a
corresponding change in FWD Limited's IDR and the rating of the
proposed perpetual securities.

Downgrade rating triggers for FWD Limited and its insurance
subsidiaries include:

- a decline in FWD Limited's consolidated capital strength, with
   its capital score persistently below the 'Strong' category as
   measured by Fitch's Prism Factor-Based Model and the solvency
   ratio of its main operating entity, FWD Life Insurance Company
   (Bermuda) Limited, consistently below 225%;
- an increase in FWD Limited's financial leverage to above 30%
   for a prolonged period; or
- a significant deterioration in the operating results of its
   insurance subsidiaries in terms of lapse rates and mortality
   profits of its life business and underwriting result of its
   general insurance business, with its combined ratio
   persistently in excess of 105%.

An upgrade of FWD Limited's IDR and its insurance subsidiaries'
Insurer Financial Strength ratings is unlikely in the near term.
However, over the medium term, upgrade rating triggers include:
- broader distribution coverage;
- an improvement in FWD Limited's operating profitability, with
   pre-tax return on assets consistently higher than 1.2%; and
- further strengthening in FWD Life Insurance Company (Bermuda)
   Limited's operating stability, as measured by new business
   margin and increased value of in-force business.


FWD LIMITED: Moody's Assigns Ba2(hyb) Rating to Sub. Capital Sec.
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2(hyb) rating to FWD
Limited's subordinated perpetual capital securities.

RATINGS RATIONALE

The subordinated perpetual hybrid securities will constitute
direct, unsecured and subordinated obligations of the issuer,
ranking pari passu and without any preference or priority of
payment among themselves and with any preference shares of FWD
Limited.


The Ba2(hyb) rating is positioned two notches below FWD Limited's
Baa3 issuer rating (stable outlook) to reflect the fact that
these securities will rank behind senior and subordinated debt
obligations, and is in line with Moody's standard notching
guidance for preference shares.

The rating also reflects (i) the optional coupon cancellation
mechanisms and (ii) the non-cumulative nature of the cancelled
coupons.

FWD Limited's pro forma adjusted financial leverage -- including
operating lease debt equivalents and Moody's standard operating
lease adjustments -- will stay around 23% from 23.5% at the end
of June 2017 because of the equity credit of the hybrid
securities and Moody's expectation that the company will use part
of the proceeds to redeem some of its outstanding senior debt.

FWD Limited's financing costs have increased over the past few
years as it has issued two senior unsecured bonds and one
perpetual hybrid capital security in the past three and a half
years. With the issuance of the new hybrid securities, FWD
Limited's earnings coverage will fall below 1.0x in 2018 from
1.0x in 2016, but will gradually increase to around 1.0x in 2019
and 2020 because of an expected improvement in the group's
profitability. The increase in interest expense and hybrid
coupons have put negative pressure on its financial flexibility,
and any further deterioration in financial leverage or earnings
coverage could have negative implications for the group's
ratings.

Moody's expects that the group will secure financial resources
from its shareholders if there are further capital needs to
support its business growth and expansion.

FWD Limited's Baa3 issuer rating is three notches below the A3
insurance financial strength rating (IFSR, stable outlook) of FWD
Life Insurance Company (Bermuda) Limited (FWD Life HK), its
largest operating subsidiary.

This situation reflects the structural subordination of the
holding company to the policyholder obligations of the life
insurance operating company.

RATING DRIVERS

This issuance's rating is linked to the issuer rating of FWD
Limited.

FWD Limited's ratings could be upgraded if FWD Life HK's rating
is upgraded.

FWD Limited's ratings could be downgraded if FWD Life HK's rating
is downgraded, which could be driven by further debt issuances by
FWD Limited that weaken its earnings coverage and increase its
financial leverage, or because of a sharp deterioration in FWD
Limited's liquidity conditions.

RATING METHODOLOGY

The principal methodology used in this rating was Global Life
Insurers published in April 2016.

FWD Limited is a holding company that owns FWD Life Insurance
Company (Bermuda) Limited and other subsidiaries, such as a life
insurance operation in Macau, as well as general insurance and
financial planning businesses.

FWD Limited held total assets and shareholders' equity of USD12.4
billion and USD1.9 billion, respectively, at the end of 2016, on
an IFRS basis.


UNION MEDICAL: Moody's Assigns B1 CFR and New Unsec. Notes Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned a first-time B1 corporate
family rating (CFR) to Union Medical Healthcare Limited (UMH).

At the same time, Moody's has assigned a B1 rating to the
proposed senior unsecured notes to be issued by Union Medical
Healthcare Limited.

The rating outlook is stable.

The proceeds from the issuance will be used mainly for working
capital and general corporate purposes.

RATINGS RATIONALE

"The B1 ratings reflect UMH's competitive position in Hong Kong,
the good growth prospects in the medical, aesthetic, beauty and
healthcare services market, its strong profitability and good
financial flexibility and liquidity," says Stephanie Lau, a
Moody's Vice President and Senior Analyst.

"At the same time, the ratings are constrained by UMH's small
scale in a highly fragmented market, its geographic
concentration, short track record as a publicly listed company,
exposure to the economic cycles and risks related to its
ambitious business expansion strategy," adds Lau.

Established in 2005, UMH is the leading aesthetic medical service
provider in Hong Kong. The company's competitive advantages stem
from its good brand recognition and ability to offer a broad
range of services and products.

The company also benefits from rising demand for aesthetic
medical services in Hong Kong and China. This factor and its
planned expansion into service centres and clinics should support
its revenue growth. The B1 CFR factors in Moody's expectation
that the company will grow in scale and record at least 30%
annual revenue growth over the next two years.

Moody's also expects UMH to maintain good profitability through
its competitive market position and operational efficiency.
Adjusted EBITA margin will increase slightly to 26.5%-27.2% over
the next 12-18 months from 26.3% in fiscal 2017, absent the one-
off costs it incurred following its IPO in 2016. This view is
based on an expectation that the company will exercise prudence
in its acquisitions and will not impair its profit margins.

However, with revenue of around USD125 million in fiscal 2017,
UMH is small when compared with most other B1-rated corporate
issuers globally. This factor also mirrors its modest absolute
market share and high geographical concentration in the highly
fragmented Hong Kong market.

The B1 CFR also reflects its short track record as a listed
public company. The company's credit profile could change to
defend its market position in a competitive industry with low
entry barriers.

Its ambitions to quickly grow its business through organic and
inorganic expansion, the latter of which could raise execution
risks and weaken its financial profile.

These risks are partly mitigated by the company's solid liquidity
holdings, which should be sufficient to cover its investments to
acquire businesses and properties over the next 1-2 years, as
well as by low receivable risks due to its revenue model. In
addition, the company will focus on acquiring existing businesses
which can immediately contribute to earnings and cash flow.

Following the proposed note issuance, Moody's expects the
company's adjusted debt/EBITDA will rise to about 4.0x in fiscal
2018 from around 1.0x in fiscal 2017, and subsequently decrease
to about 3.2x in fiscal 2019 driven by strong earnings growth.
This level of debt leverage is appropriate for the B1 rating
category.

UMH's liquidity position is good. The company raised around
HKD740 million through its initial public offering in March 2016.

Its careful spending post IPO resulted in reported cash and
deposits of HKD535 million and short-term investments of HKD315
million as of the end of September 2017 -- amounts that are large
relative to its scale.

UMH's senior unsecured bond rating is not affected by
subordination to claims at the operating subsidiaries, because
Moody's expects the majority of claims will remain at the holding
company level following the bond issuance.

The stable rating outlook reflects Moody's expectation that UMH
will grow in scale, while maintaining liquidity, profit margins
and credit metrics appropriate for its B1 ratings.

A rating upgrade is unlikely over the next 1-2 years given its
small scale. The ratings could be upgraded if the company (1)
improves its business scale through meaningful revenue growth and
establishes a longer track record of successfully managing its
business expansion; (2) lowers adjusted debt/EBITDA to 2.0x or
below on a sustained basis; and (3) maintains is large liquidity
holdings.

Downward pressure on the ratings could emerge if (1) UMH's market
share or profitability declines significantly; (2) the company's
revenue and earnings remain weak, such that its adjusted
debt/EBITDA exceeds 4.0x and its liquidity holdings decrease to a
moderate level on a sustained basis.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Established in 2005, Union Medical Healthcare Limited (UMH) is a
leading aesthetic medical service provider in Hong Kong and also
provide traditional beauty, dental, chiropractic and health
management services. Its aesthetic medical services include
aesthetic surgical procedures, minimally invasive procedures and
energy-based procedures performed by doctors.

The company is recognised through its brands, which include DR
REBORN, re:HEALTH, ONE DENTAL, ONE DENTAL PLUS, PRODERMA LAB,
SUISSEBEAUTE, Mulan, New York Medical Group and Toni & Guy.



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AARTI INFRASTRUCTURE: Ind-Ra Assigns BB Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Aarti
Infrastructure & Buildcon Limited (AIBL) a Long-Term Issuer
Rating of 'IND BB'. The Outlook is Stable. The instrument-wise
rating actions are:

-- INR50 mil. Fund-based working capital limits assigned with
    IND BB/Stable rating;

-- INR70 mil. Non-fund-based working capital limits assigned
    with IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect AIBL's moderate scale of operations due to a
small order book size because of competition. Revenue during
FY14-FY17 increased at a CAGR of 14.53% to INR652 million in
FY17, on account of a year-on-year increase in the execution of
construction work orders AIBL has INR481.45 million of an
outstanding construction order book, which is just 0.74x of
revenue of FY17. The work order book also has geographical
concentration risk, as all the orders will be executed in
Chhattisgarh.

The ratings are constrained by the uncertainty regarding the
ability of the company to achieve breakeven in its real estate
projects. It till date has recovered only 45% of the total
project cost.

The ratings factor in AIBL's tight liquidity, as reflected from
its 97.65% utilisation of the fund-based facilities in the 12
months ended December 2017. This is because of its long working
capital cycle of 442 days in FY17 (FY16: 456 days) due to high
inventory days.

The ratings, however, are supported by AIBPL's comfortable credit
metrics due to strong margins. Interest coverage (operating
EBITDA/gross interest expense) was 3x in FY17 (FY16: 3.1x), net
financial leverage (adjusted net debt/operating EBITDAR) was 2.2x
(2.0x) and EBITDA margins were 10.2% (10.4%). Moreover, the
company's promoters have 15 years of experience in the civil
construction industry.

RATING SENSITIVITIES

Positive: A substantial increase in the revenue along with an
improvement in the credit metrics will be positive for the
ratings.

Negative: Deterioration in the profitability leading to
deterioration in the credit metrics will be negative for the
ratings.

COMPANY PROFILE

AIBL was incorporated in October 1999 in a form of a private
limited company and converted into a public company in July 2007.
The company is backed by Agarwal, Mundra and Mandal families of
Chhattisgarh. The promoters founded the company with the purpose
of making its presence in the field of infrastructure.


AGARWAL TOUGHENEED: CARE Moves B+ Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has been seeking information from Agarwal Tougheneed
Glass India Private Limited (ATPL), to monitor the rating vide e-
mail communications/ letters dated December 6, 2017, November 23,
2017, November 6, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, ATPL has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on
ATPL's bank facilities will now be denoted as CARE B+; ISSUER NOT
COOPERATING; based on best available information.

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank        6.55       CARE B+; Issuer not
   Facilities                       cooperating; Based on best
                                    available information

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

The rating assigned to the bank facilities of ATPL continues to
remain constrained on account of its presence in the highly
fragmented and competitive glass industry. The rating, further,
continues to remain constrained on account of vulnerability of
operating margins to the fluctuation in the prices of soda ash as
well as fuel and its nascent stage of operations with leveraged
capital structure.

The rating, however, continues to derive strength from
experienced management with strong group support.

Ability of the company to achieve the envisaged level of TOI and
profitability with better management of working capital would be
the key rating sensitivities.

Detailed description of the key rating drivers

At the time of last rating on March 10, 2017 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):
Key Rating Weakness

* Nascent stage of operations with moderate profitably margins,
leveraged capital structure and moderate liquidity position: FY17
is the first year of operations of the company and in FY17, the
company had achieved TOI of INR 11.78 crore with PBILDT margin of
12.78% and PAT margin of 0.60%. The capital structure of the
company stood highly leveraged mainly on account of higher
utilization of bank borrowings and term loan taken by the company
for project funding. Further, the company has utilized around 80-
90% its working capital bank borrowings in last 12 months ended
December 31, 2017.

* Presence in highly competitive and fragmented glass industry
and susceptibility of operating margins to the fluctuation in the
prices of soda ash and fuel: There are many players present in
the processing segment (toughening/insulating of glass) with high
level of competition which operate at regional level. The growth
of a company present in processing segment depends on its ability
to market the product and maintain the profitability margins
while meeting the demands of its customers. Operating margins of
ATPL is susceptible to the prices of soda ash and fuel (natural
gas and furnace oil) coupled with low value addition in the
manufacturing of toughened glass from float glass.

Key Rating Strengths

* Experienced management with strong group support: Mr. Uma
Shankar Agarwal, director, looks after overall affairs of the
company and has around two decades of experience in the glass
industry. He is assisted by his younger brother, Mr. Mahesh
Agrawal, director, who has around a decade of experience in the
industry and looks after overall affairs of the firm. Further,
the company got assistance from its group concern, AGH in the
form of infusion of share capital in the company of INR1.60 crore
as on March 31, 2015.

Jaipur-based (Rajasthan) ATPL was incorporated in October, 2009
by Mr. Uma Shankar Agarwal and Mr. Mahesh Kumar Agrawal with an
objective to set up a greenfield project for manufacturing of
toughened glass (single and double glazed) at Jaipur. The plant
of the company have processing capacity of 5.90 (LSMPA) of
toughened glass.


ALI ENTERPRISES: CARE Assigns B+ Rating to INR9.25cr Cash Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Ali
Enterprises (AE), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Cash Credit           9.25       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of AE are constrained
by its small scale of operations with moderate profit margins,
leveraged capital structure and weak debt coverage indicators.
The rating is further constrained by working capital intensive
nature of operations, susceptibility of margins to fluctuation in
foreign exchange, its presence in highly fragmented and
competitive industry and constitution of entity as a
proprietorship firm limiting financial flexibility in times of
stress.

The above constraints outweigh the comfort derived from the
experience of the promoters with long and established track
record of the firm and established relationship with its
customers and suppliers.

The ability of the entity to increase its scale of operations
with improvement in profitability and capital structure along
with efficient management of working capital requirement are the
key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Small scale of operation with moderate profit margins: The
operations of the entity remained small with total operating
income of INR46.54 crore in FY17 and low net worth base of
INR2.10 crore as on March 31, 2017 thus limiting financial
flexibility of the entity in times of stress. The total operating
income of the firm grew at a y-o-y growth of about ~32% in FY17
on the back of higher volume of traded goods sold. With business
operations of trading of agro commodities, entailing low value
additions, the entity's profit margin stood moderate.

*Leveraged capital structure with weak debt service coverage
indicators: The relatively low net worth base of the entity
led to increased reliance on debt to support its business
operations, hence resulting in leveraged capital structure.
Moreover, with low profitability and high debt profile, the debt
coverage indicators of the entity remained weak.

* Working capital intensive nature of operations: Operations of
the entity remained working capital intensive with high gross
current assets of 106 days with funds blocked mostly in
receivables. The working capital requirements are met by
the cash credit facility availed by the entity, which was fully
utilized during last twelve months ended December, 2017.

* Susceptibility of margins to fluctuation in foreign exchange:
The firm is exposed to foreign exchange fluctuation with exports
constituting 10% of the total operating income in FY17. Payments
from customers are mainly denominated in USD and Euro. The
margins are susceptible to fluctuation in foreign exchange
prices. However, the firm usually hedges majority of its exports
through forward contracts.

* Highly fragmented and competitive industry: AE operates in an
industry characterized by high competition due to low entry
barriers, high fragmentation and the presence of a large number
of players in the organized and unorganized sector. Thus, the
entities present in the segment generally have a very low
bargaining power vis-Ö-vis their customers.

* Constitution as a proprietorship firm limiting financial
flexibility: AE, being a proprietorship concern, is closely held
and is subject to limited disclosure norms. Further, owing to the
constitution of the entity, it is exposed to the risk of
withdrawal of capital as well as long-term existence of business
operations under the entity.

Key Rating Strengths

* Experienced promoters with long and established track record:
AE is currently managed by Mr. Syed Abrar Ali. He is well versed
with the intricacies of the business on the back of more than one
and a half decade of experience in trading of rice products. Long
experience of the proprietor has supported the business risk
profile of the entity to a large extent.

Established relations with suppliers and customers: AE has long-
standing relationship with its suppliers and customers due to the
vast experience of the proprietor in the same segment. The
clients have been associated with AE over the years. However,
being in a highly competitive business, customer retention is a
constant challenge for the entity.

AE was established in 2003 by Mr. Syed Abrar Ali based in Nagpur,
Maharashtra. The firm is engaged in trading of basmati and non-
basmati rice. Apart from the same, the entity also exports cashew
nuts and non-basmati rice. The major export destinations of the
entity are Srilanka, Vietnam and African countries. The entity
has recently started trading of basmati rice under the brand name
of "Haider".


BABA PURAN: Ind-Ra Assigns tB Rating to INR20MM Term Deposits
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Baba Puran Dass
Financial Services Ltd's (BPDFS) term deposits the following
rating:

-- INR20 mil. Term deposits* assigned with IND tB/Stable rating.

* The amount is yet to be raised.

KEY RATING DRIVERS

The rating is constrained by BPDFS's small scale of operations,
indicated by INR36.60 million in assets under management as on 31
March 2017 (31 March 2016: INR 31.54 million). Its operations are
limited to the Ludhiana district in Punjab. Of late, BPDFS has
been unable to mobilise adequate deposits and, thus, has been
unable to grow its asset book. Ind-Ra believes that BPDFS is
unlikely to mobilise additional deposits until it acquires an
investment-grade rating, as per the regulations set by the
Reserve Bank of India.

The rating, however, is supported by zero non-performing loans
over FY14-FY17. The healthy asset quality has historically been
supported by the company's ability to efficiently recover from
delinquencies in the soft buckets (up to 60 days past due).
However, Ind-Ra notes that BPDFS's collection efficiency
moderated in the last 18 months owing to a challenging economic
scenario in Punjab and events such as demonetisation.

The rating is also supported by BPDFS's prudent capital
structure. A high equity/asset ratio (FY17: 58.73%; FY16: 53.25%;
FY15: 58.55%), along with the absence of credit costs, has
enabled BPDFS to maintain a healthy return on average assets of
1.99%-2.37% over FY15-FY17. Moreover, its net interest margin
improved to 16.33% in FY17 from 15.06% in FY16, driven by a fall
in debt/equity ratio to 0.4x as on 31 March 2017 (31 March 2016:
0.6x) due to an equity capital infusion of INR17.10 million by
the promoters during FY17.

The promoters infused an additional capital of INR2 million in
FY18 to fund upcoming deposit redemptions. However, according to
Ind-Ra, in case the promoters plan to scale up operations, the
required capital infusion shall be required and the infusion
would have to be in excess of what is required to meet the
scheduled deposit redemptions.

RATING SENSITIVITIES

Negative: Inability to increase the scale of operations and/or
significant deterioration in the asset quality, along with a
substantial increase in leverage, on a sustained basis could
result in a negative rating action.

Positive: An increase in the scale of operations, without a
significant impact on the asset quality, a diversification of the
funding source base while keeping adequate capitalisation and
operating buffers, and the maintenance of adequate liquidity on a
sustained basis would lead to a positive rating action.

COMPANY PROFILE

Incorporated in 1995, BPDFS is a deposit-taking non-banking
financial asset finance company. The company is primarily engaged
in used passenger vehicle and new two-wheeler financing on a hire
and purchase basis.


BAJAJ PROCESSPACK: CARE Lowers Rating on INR3cr LT Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Bajaj Processpack Limited (BPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities              3        CARE B; Stable Revised
                                    from CARE B+
   Short-term Bank
   Facilities              2        CARE A4 Reaffirmed

Detailed Rationale and key rating drivers

The revision in the long-term rating assigned to the bank
facilities of BPL factors in deterioration in overall financial
risk profile during FY17 (refers to the period of April 1 to
March 31) as characterized by decline in scale of operations,
decline in profitability margins, deterioration in leveraged
capital structure & debt service coverage indicators coupled with
elongation of operating cycle. The ratings further continue to be
constrained by small scale of operations, its presence in the
competitive nature of industry. The ratings, however, continue to
derive strength from the experienced management.

Going forward; BPL's ability to scale up its scale of operations
while improving its profitability margins and capital
structure along with effective management of its working capital
requirements shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

* Deterioration in financial risk profile during FY17: The total
operating income of BPL has declined on y-o-y basis during past
three financial years from INR 13.09 crore in FY15 to INR7.12
crore in FY17 mainly on account of decline in quantity sold which
was mainly slowdown in demand of the machines manufactured by the
company. The scale of operations of BPL continues to remain small
which limits the company's financial flexibility in times of
stress and deprives it from scale benefits. The company has
achieved TOI of ~Rs.14 crore in 8MFY18 (refers to the period
April 1 to November 30).

Furthermore, PBIDLT and PAT margin declined in FY17 due to
decline in capacity utilization which resulted in increase in
cost due to high proportion of fixed cost which deprived it of
its scale benefits and increase in interest expenses
respectively. The company reported cash losses of INR0.18 crore
in FY17.

The capital structure of the company stood leveraged owing to
high dependence on external borrowing to meet out its working
capital requirements coupled with low networth base.The overall
gearing of the company stood at 5.11x as on March 31, 2017, which
deteriorated from 3.09x as on March 31, 2016 due to erosion of
net worth owing to net losses incurred coupled with increase in
unsecured loans and higher utilization of working capital limits
as on balance sheet date. Further, the debt coverage indicators
of the company stood stressed on account of high debt level
resulting in high interest cost.

* Elongation of operating cycle: The operating cycle elongated to
164 days in FY17 as against 97 days in FY16. The company normally
maintains the inventory in the form of raw material for around 2-
3 months for smooth running of its production processes and
finished goods to meet the immediate demand of its customers. The
same elongated to 142 days for FY17 as against 84 days for FY16
owing to higher raw material inventory as on balance sheet date
due to deferment of few orders. The company normally extends the
credit period of around 2-3 months to its customers owing to
competitive nature of industry. The same has also elongated to 98
days for FY17 as against 64 days for FY16 owing to delay in
realization from few customers.

Besides this, the company receives credit period of around 2
months from its domestic suppliers resulting in an average
creditor's period of 76 days for FY17 wherein import procurement
are made on advance basis. The working capital limits of the
company remained almost fully utilized for past 12 months ending
November, 2017.

* Inventory holding risk coupled with presence in highly
competitive industry: The company is exposed to raw material
price fluctuation risk as the company needs to maintain adequate
inventory for smooth execution of orders. Any volatility in the
prices of steel can lead in adverse performance of the company.
Also the company operates in a competitive industry wherein there
is presence of a large number of players in the unorganized
and organized sectors. Hence, the players in the industry do not
have any pricing power and are exposed to competition induced
pressures on profitability.

Key Rating Strengths

* Experienced management: The company is currently being managed
by Mr Girish Bajaj and Mr Sushil Kumar. Both of them are
engineering graduates and have an experience of around half a
decade in manufacturing of food processing and packaging machines
industry through his association with BPL. They both are also
engaged in trading of machines for about one and a half decade
through their association with group concern "Bajaj Processpack
Machines Private Limited" (incorporated in 2005). They both look
after the overall functions of the company.

New Delhi based, Bajaj Processpack Limited (BPL) was incorporated
in July, 2010 and started its commercial operations in December,
2011. The company is currently being managed by Mr Girish Bajaj
and Mr Sushil Kumar. BPL is engaged in manufacturing of food
processing and packaging machines. The company has two
manufacturing facilities located in Delhi-NCR (Noida). The major
materials used are steel, motors and other electrical goods which
the company procures from the local manufacturers based in Delhi,
Uttar Pradesh and West Bengal. Also, the company imports 30% of
electrical parts from countries like China and Italy. The company
primarily sells the products domestically to various manufactures
(FMCG companies).


BALWAN POULTRY: CARE Moves D Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has been seeking information from Balwan Poultry &
Breeding Farm to monitor the rating(s) vide e-mail
communications/ letters dated November 22, 2017 & November 3,
2017 and numerous phone calls. However, despite our repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on Balwan Poultry & Breeding Farm's bank facilities
will now be denoted as CARE D; ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)   Ratings
   ----------       -----------   -------
   Long-term Bank
   Facilities              6      CARE D; Issuer not cooperating

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

Detailed description of the key rating drivers

At the time of last rating on January 27, 2017, the following was
the key rating weakness:

The rating assigned to Balwan Poultry and Breeding Farm (BPB)
takes into account the ongoing delays in debt servicing due to
stressed liquidity position.

BPB is primarily engaged in poultry farming business. Firm's
liquidity issues owing to delays in sales realization from the
debtors resulted into delays in servicing of interest and
principal repayment of ongoing term loan.

Balwan Poultry and Breeding Farm (BPB) was established in 2000 as
a proprietorship firm. The operations of the firm are currently
being managed by Mr. Balwan Singh. BPB is engaged in poultry
farming business which involves growing of 1 day chick into egg
laying birds. Subsequently, the eggs laid by them are
artificially incubated into chicks (incubation time is 21 days).
The processing facility of the firm is located at Karnal,
Haryana. BPB sells the day-old chick mainly through the
commission agents located in Haryana and Punjab. The firm
procures day-old chicks from Venkateshwara Hatcheries and feeding
materials for the chicken viz. maize, soyabean and defatted rice
bran from traders located in Haryana and near regions.


BTM FABRICS: CARE Reaffirms B+ Rating on INR11cr LT Loan
--------------------------------------------------------
CARE has been seeking information from BTM to monitor the
rating(s) vide e-mail communications/ letters dated
October 11, 2017, October 18, 2017, October 23, 2017 and
October 27, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on BTM's bank facilities will now be denoted as CARE B+;
ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank        11.00      CARE B+; Issuer not
   Facilities                       cooperating; Reaffirmed on
                                    the basis of no information
                                    available

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

Detailed description of the key rating drivers

At the time of last rating on October 27, 2016 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):

Key Rating Weaknesses

* Modest scale of operations albeit continuous & healthy growth
over last 2 years: BTM's scale of operations remained modest
despite total operating income has grown during the period FY14-
16 with compounded annual growth rate (GAGR) of 55%.

* Moderately low & declining profit margins coupled with
susceptibility to raw material price volatility: Given the
trading
nature of the profit margins remained low and the same have
declined during past three years ended FY16. Moreover, the
margins are also susceptible to volatility in prices of cotton
and polyester, with the former being dependent on the atmospheric
conditions and the latter being a derivative of crude oil.

* Leveraged capital structure and weak debt coverage indicators:
The capital structure of BTM stood leveraged and the same
deteriorated to a greater extent in FY16 mainly owing to increase
in working capital bank borrowings. On the other hand, owing to
high dependence on debt coupled with low cash accruals, the debt
coverage indicators also stood weak.

* Working capital intensive nature of operations marked by high
collection period: The operations of BTM are working capital
intensive in nature with majority of funds being blocked in
debtors and a moderate portion in inventory. On the other hand
the company receives lower credit from the suppliers which has
resulted in high level of utilization of its working capital
limits.

* Risks associated with foreign exchange fluctuation &
geopolitical uncertainties: Given ~70% of the raw material
requirements being imported from China, BTM is exposed to
significant foreign exchange fluctuation risk. Moreover, the
company does not undertake any hedging activities, nor do its
operations serve a natural hedge to it, given the absence of
exports in its business. Moreover, the significant exposure to
the Chinese imports also exposes the company to geopolitical
risks, especially with respect to the regulatory changes with
respect to import quotas on Chinese products imposed by the
Indian government.

* Highly competitive & fragmented nature of operations: BTM
operates in a highly competitive & fragmented industry
environment with a large number of players engaged into the
trading of fabrics and other textile materials. Given this, the
company faces stiff competition from other small & medium players
belonging to the fabrics trading segment. The said
competitiveness can be reflected in the moderately low profit
margins of the company.

Key rating strengths

* Experienced promoters and Long track record of operations: BTM
possesses a long track record of over four decades of operations
in trading & job-work of ready-to-stitch cotton and polyester
oriented fabrics. Further the overall operations of BTM are
looked after by Mr. Atmaram Agarwal, Mr Rajesh Agarwal and Mr
Amit Agarwal, who possess an average of three-decade long
experience in the activities of trading & job-work of fabrics.

Established market presence with diversified customer & supplier
base and geographical reach: Over the years, BTM has established
a strong market presence with a customer base of over 150
customers across Mumbai, Delhi, Kolkata, Kanpur, Indore and other
parts of Madhya Pradesh. Moreover, the customer and supplier
profile of the company is diversified with top 5 customers and
suppliers contributed to 5.85% and 23.01% respectively for FY16.

Established in 1980 as a proprietorship entity by Mr Atmaram
Agarwal, BTM Fabrics was later converted into a private limited
company as BTM Fabrics Private Limited (BTM) in 2000 by Mr
Atmaram Agarwal along with his sons, Mr Rajesh Agarwal and Mr
Amit Agarwal. The company is engaged in trading & job-work of
ready-to-stitch fabrics, which are sold to semi-wholesalers and
garment manufacturers. On the other hand, the procurement of
fabrics is largely met by way of imports from China which
accounted for ~70% of the total raw material purchase requirement
in FY16, whereas the balance is procured from the local
manufacturers/suppliers of the same.


DEVANSHI CONSTRUCTION: CARE Cuts Rating on INR10cr Loan to D
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Devanshi Construction, as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank      10.00      CARE D; ISSUER NOT COOPERATING;
   Facilities                     Revised from CARE B+ on the
                                  basis of best available
                                  information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from Devanshi Construction to
monitor the rating(s) vide e-mail communications/ letters dated
August 21, 2017, October 16, 2017, November 10, 2017, December 5,
2017, December 11, 2017, December 21, 2017, January 3, 2018 and
numerous phone calls. However, despite CARE's repeated requests,
the entity has not provided the requisite information for
monitoring the ratings.

In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. Hence, CARE's rating on Devanshi Construction's bank
facilities will now be denoted as CARE D; ISSUER NOT COOPERATING.

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

Detailed description of the key rating drivers

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

Surat (Gujarat) based, Devanshi Construction (DEVANSHI) was
established as a partnership firm in 2014 by four partners.
DEVANSHI is currently executing a commercial project of shops at
Surat named 'Madhuram Arcade' which comprises of 304 shops
involving a total saleable area of 246516 Square feet area.


DONATELLO IFMR: Ind-Ra Affirms BB+(SO) Rating on Series A2 PTCs
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Donatello IFMR
Capital 2017 (an ABS transaction) as follows:

-- INR41.2 mil. Series A1 pass-through certificates (PTCs),
    issued on January 30, 2017 at 10.20% coupon rate and due on
    May 22, 2021, affirmed with IND A(SO)/Stable rating;

-- INR12.0 mil. Series A2 PTCs, issued on January 30, 2017 at
    14% coupon rate and due on May 22, 2021, affirmed with IND
    BB+(SO)/Stable rating.

The enterprise loan pool assigned to the trust has been
originated by Janalakshmi Financial Services Limited (JFSL;
originator or seller).

KEY RATING DRIVERS

Originator's Servicing, Underwriting & Collection Capabilities:
The affirmation reflects the origination, servicing, collection
and recovery capabilities of JFSL, the legal and financial
structure of the transaction and the adequate levels of credit
enhancement (CE) provided in the transaction. The agency is of
the opinion that the issuer's origination and servicing
capabilities are of an acceptable standard. The enterprise loan
vertical consists of a working capital loan, long-term business
loans and machinery finance. The loans are sourced in-house and
through regional channel partners. For the underwriting of loans,
JFSL relies on cash flow analysis (for which it has various
templates for different sectors) and credit score engine (a
Google form-based application that has questions related to
payment ability, collectability assessment and intent check).
The collections of up to three-month overdue cases are managed
in-house, and for the remaining cases, collection agency is
appointed for recovery.

Availability of External Credit Support: According to the payout
report dated Dec. 22, 2017, the available CE was INR25.4 million
and the current pool principal outstanding (POS), including
overdue, was INR138.4 million. There has been no use of the CE
until date, as the excess spread in the transaction was
sufficient to absorb shortfalls.

The current CE for the PTCs increased to 18.31% of the current
POS, including overdues, at end-November 2017 from 10.0% at
issuance. The CE is in the form of fixed deposits with RBL Bank
Ltd in the name of the originator, with a lien marked in favour
of the trustee.

Key Pool Characteristics: At end-November 2017, the 293-loan pool
had a weighted average seasoning of 22 months and the pool had
been amortised by 45.4%, indicating a significant repayment track
record of underlying borrowers. Loans delinquent by over 90 days
past due (dpd) were 4.15% of the original POS and 7.60% of the
current POS as of the collection month of November 2017. The
agency saw a cumulative prepayment of 24.87% in the transaction
in the last 11 months.

Key Assumptions: At the time of the initial rating, Ind-Ra
derived a base case gross default rate (90+dpd) in the range of
8.0%-9.0%. The agency had analysed the characteristics of the
pool and established its base case assumptions through four key
performance variables, viz. default rate, recovery rate, recovery
timeline and prepayment rate, which collectively affect the
credit risk in a transaction. The current available CE can absorb
stressed defaults up to 100% of future POS.

RATING SENSITIVITIES

Ind-Ra also conducted rating sensitivity tests. If the
assumptions about the base case default rate worsen by 20%, the
model-implied rating sensitivity suggests that the ratings of
both Series A1 and Series A2 PTCs will not be impacted.

COMPANY PROFILE

JFSL, a Bengaluru-based non-banking finance company-microfinance
institution, is India's largest urban microfinance organisation
that provides various types of retail loans largely to the urban
lower income group and enterprise loans to the micro, small and
medium enterprise segment. In September 2015, it received in-
principle approval from the Reserve Bank of India to start
operations as a small-finance bank.

JFSL has diversified presence across 18 states and two union
territories in India and had a portfolio of INR91.6 billion as on
Nov. 30, 2017. The share of the top three states (Tamil Nadu,
Karnataka and Maharashtra) in the portfolio was about 49% as on
Nov. 30, 2017. JFSL registered a high CAGR of 110% over the last
four years ended FY17. It raised INR10.3 billion in equity during
April-November 2017 from existing and new investors. It expects
to raise a further INR 7 billion equity during December-January
2018.

JFSL reported a net profit of INR 1.7 billion on a total managed
asset base of INR157.3 billion for FY17 vis-a-vis a net profit of
INR1.6 billion on a total managed assets base of INR133.5 billion
recorded for FY16. JFSL reported a loss of INR11.9 billion on a
total managed asset base of INR103.3 billion for 1HFY18.


DRASHTI COTSPIN: CARE Reaffirms B+ Rating on INR24.09cr Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Drashti Cotspin Private Limited (DCPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long Term Bank
   Facilities            24.09      CARE B+; Stable Reaffirmed

   Short Term Bank
   Facilities             1.65      CARE A4; Reaffirmed

Detailed rationale

The ratings assigned to the bank facilities of DCPL continue to
remain constrained on account of net loss, leveraged capital
structure, moderate debt coverage indicators, moderate liquidity
position in FY17 (From April 1 to March 31). The ratings further
remain constrained on account of its presence in highly
fragmented spinning industry and susceptibility of operating
margins to raw material price fluctuation along with inherent
cyclicality and high competitive intensity associated with the
textile industry.

The ratings, however, continue to derive benefits from the
moderate scale of operations, wide experience of the promoters in
the cotton spinning industry coupled with strategic location in
the cotton-producing region of Gujarat with easy availability of
raw material, power and fuel along with fiscal benefits from the
government.

The ability of DCPL to increase its scale of operations coupled
with further improvement in profit margins and capital structure
would remain the key rating sensitivities.

Detailed description of key rating drivers

Key Rating Weaknesses

* Net loss during FY17: During FY17 DCPL has registered net loss
due to higher proportion of depreciation cost along with the high
interest & finance cost.

* Leveraged capital structure: The capital structure stood
leveraged due to high debt level as on balance sheet date. An
overall gearing ratio stood high at 4.40 times as on March 31,
2017 as against 3.09 times as on March 31, 2016 on the back of
high debt level as compared to low net worth base.

* Moderate debt coverage indicators and moderate liquidity
position: Debt coverage indicators stood moderate with moderate
operating profits and cash accruals during FY17. The total debt
to GCA stood at 6.86 times as on March 31, 2017 as against 5.57
times as on March 31, 2016. Interest coverage stood moderate at
2.22 times during FY17 as against 2.70 times in FY16. The
operating cycle stood moderate at 50 days during FY17, while the
current ratio stood moderate at 1.01 times as on March 31, 2017.

* Susceptibility of profitability to volatility in cotton prices;
along with inherent cyclicality and high competitive intensity
associated with the textile industry: Textile is a cyclical
industry and closely follows the macroeconomic business cycles.
High competitive intensity in the textile industry, volatility of
cotton prices, elevated inflation levels and sluggish demand
outlook from developed markets are the major cause of concern for
the Indian textile industry. Prices of raw cotton are volatile in
nature and depend upon factors like area under production, yield
for the year, international demand-supply scenario, inventory
carry forward from the previous year, along with setting of
export quota and minimum support price (MSP) by the government.

Key Rating Strengths

* Moderate scale of operations during FY17: FY17 was the first
full year of operations during which it reported a total
operating income (TOI) of INR55.09 crore as against INR21.21
crore during its six months of operations in FY16.

* Experienced promoters: Overall operations of DCPL are proposed
to be managed by four directors namely Mr. Brijesh Patel, Mr.
Jayvant Finava, Mr. Jenith Finava and Mr. Vijay Finava. All the
directors holding an average experience of more than two decades
in the same line of business.

* Strategically located within cotton producing region of
Gujarat:
The spinning facility of DCPL is located at Amreli District of
Gujarat. Gujarat produces around one-third of total production of
cotton in India. DCPL's presence in the cotton producing region
results in benefit derived from a lower logistic expenditure
(both on transportation and storage), easy availability and
procurement of raw materials at effective prices and consistent
demand for finished goods resulting in a sustainable and clear
revenue visibility.

Amreli-based (Gujarat), DCPL was incorporated as a private
limited company in April, 2011 by Mr. Jayvant Finava, Mr. Vijay
Finava, Mr. Jenith Finava and Mr. Brijesh Patel with an objective
of manufacturing cotton yarn. DCPL manufactures combed and carded
cotton yarn with an average count of 30s. DCPL has an installed
capacity of manufacturing 3591 Metric Tonne per Annum (MTPA) of
yarn with 14,592 spindles as on March 31, 2017.


GORAYA STRAW: CARE Moves D Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has been seeking information from Goraya Straw Board
Mills Private Limited (GSBM) to monitor the ratings vide e-mail
communications/ letters dated December 31, 2017, December 20,
2017, December 14, 2017, December 6, 2017, December 4, 2017,
December 1, 2017, November 17, 2017, October 24, 2017,
October 23, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the firm has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines CARE's rating on GSBM's bank facilities will now be
denoted as CARE CARE D; ISSUER NOT COOPERATING.

                    Amount
   Facilities     INR crore)    Ratings
   ----------     ----------    -------
   Long-term Bank
   Facilities         11.89     CARE D; Issuer not cooperating;
                                Revised from CARE BB-; Stable
                                on the basis of best available
                                information

   Short-term Bank
   Facilities           0.10    CARE D; Issuer not cooperating;
                                Revised from CARE A4 on the basis
                                of best available information

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

The revision in the ratings assigned to the bank facilities of
GSBM takes into account ongoing delays in debt servicing by the
company.

Goraya Straw Board Mills Pvt. Ltd. (GSBM) was originally formed
on December 23, 1976 as a partnership concern, Goraya Straw Card
Board Mills, by the Goraya family. Later on, it was reconstituted
as a private limited company in August 17, 1990. The company is
engaged in manufacturing of paper boards which finds its
application in the packaging industry. GSBM sells the products to
companies involved in the packing business. The manufacturing
facility is located at Bazpur, Uttrakhand having an installed
capacity of 24,750 MTPA as on March 31, 2016.


H K LUMBERS: CARE Raises Rating on INR1.35cr LT Loan From D
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
H K Lumbers LLP (HKLL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long Term Bank
   Facilities            1.35       CARE B; Stable Revised from
                                    CARE D

   Short Term Bank
   Facilities            4.50       CARE A4; Revised from CARE D

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
HKLL derives comfort from the improvement in debt servicing track
record. The rating also takes into consideration experienced
promoters and location advantage resulting in easy access of raw
material.

The ratings, however, remained constrained on account its
financial risk profile marked by small scale of operations, thin
profitability, leveraged capital structure and weak debt coverage
indicators along with elongated working capital cycle in FY17
(refers to April 2016 to March 2017). The rating assigned to the
bank facilities of HKLL is further constrained on account of
presence in highly fragmented nature of wood industry.

The ability of HKLL to Increase the scale of operations along
with an improvement in the overall financial risk profile marked
by an improvement in profit margins and solvency position along
with efficient working capital management are the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

* Improvement in debt servicing: There has been improvement in
debt servicing and the conduct of account is regular on account
of improved liquidity position due to better working capital
management.

* Experienced Promoters: Mr. Rajeshbhai Rudani and Mr. Hareshbhai
Rudani are the key partners of HKLL. They possesses more than
decade of experience in the timber industry and looks after
overall management and functioning of the company. Other
directors, Mr. JagdishRudani, BharatbhaiRudani, Mr. Dheerajbhai
Patel etc looks after different departments like administration,
purchase, production, sales etc. Overall, HKLL is blessed with
well experienced promoters which will help entity to grow its
business.

* Location advantage resulting in easy access of raw material:
HKLL's is located at Gandhidham (Kutch), which is near to Kandla
port, which enjoys good road & rail connectivity leading to
better lead-time and facilitates import and delivery of finished
products in a timely manner.

Key Rating Weaknesses

* Small scale of operations coupled with thin profit margins
during FY17 (A): During FY17, HKLL registered de-growth of 5.70%
in its TOI which stood at INR11.06 crore as against INR11.73
crore during FY16 owing to subdued market scenario. During FY17,
the PBILDT margin of HKLL improved marginally and stood at 5.10%
as against 4.41% in FY16. Resultantly, HKLL reported thin PAT
Margin of 0.70% as against 0.47% during FY16.

* Improved but leveraged capital structure and weak debt coverage
indicators: As on March 31, 2017, the capital structure of HKLL
improved as marked by an overall gearing ratio (including LC
backed creditors of INR2.16 crore) of 2.53 times as against 3.75
times (including LC backed creditors of INR4.24 crore) as on
March 31, 2016. The debt coverage indicators stood weak as marked
by total debt to gross cash accruals at 49.32 times as on
March 31, 2017 as against 108.66 times during FY16 mainly on
account of declined in LC backed creditors and increase in
gross cash accruals. During FY17, Interest coverage ratio stood
in line with FY16 at 1.18 times.

* Working capital intensive nature of operations: The current
ratio improved marginally and stood moderate at 1.26 times as on
March 31, 2017 as against 1.17 times as on March 31, 2016.
However, quick ratio decline and remained below unity as on
balance sheet date. Working capital cycle remained elongated at
96 days during FY17 which has increased from 76 days during FY16.

* Presence in a highly fragmented industry: HKLL operates in a
highly fragmented and competitive trading industry wherein large
numbers of unorganized players are present, wherein it has a very
low bargaining power against its customers as well as its
suppliers. This coupled with limited value addition in trading
puts pressure on the profitability margins as well.

Gandhidham (Gujarat) based HKLL was incorporated in 2014 by
Rudani and Patel Family and currently managed by Mr. Rajeshkumar
Rudani and other family members. Mr. Rajeshbhai Rudani possesses
10 years of experience in wood and wood products industry. HKLL
is engaged into saw milling and planning of wood.

H K Timbers Private Limited is the group entities of HKLL, which
is engaged in manufacturing of veneer sheets, manufacturing of
plyboard, particle board and other plyboard products.


H K TIMBERS: CARE Raises Rating on INR6cr LT Loan From D
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
H K Timbers Private Limited (HTPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long Term Bank
   Facilities            6.00       CARE B; Stable Revised
                                    from CARE D

   Short Term Bank
   Facilities            7.50       CARE A4 Revised from CARE D

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
HTPL derives comfort from the improvement in debt servicing track
record. The rating also takes into consideration experienced
promoters and location advantage resulting in easy access of raw
material.

The ratings, however, remained constrained on account its
financial risk profile marked by modest scale of operations,
thin profitability, leveraged capital structure and weak debt
coverage indicators along with elongated working capital cycle in
FY17 (April 2016 to March 2017). The rating assigned to the bank
facilities of HTPL is further constrained on account of presence
in highly fragmented nature of wood industry.

The ability of HTPL to Increase the scale of operations along
with an improvement in the overall financial risk profile marked
by an improvement in profit margins and solvency position along
with efficient working capital management are the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

* Improvement in debt servicing: There has been improvement in
debt servicing and the conduct of account is regular on account
of improvement in liquidity position due to better working
capital management.

* Experienced Management along with established operation: Mr.
Rajeshbhai Rudani is the key director of HTPL. He possesses more
than decade of experience in the timber industry and looks after
overall management and functioning of the company. Other
directors, Mr. JagdishRudani, BharatbhaiRudani, Mr. Dheerajbhai
Patel etc looks after different departments like administration,
purchase, production, sales etc. Overall, HTPL is blessed with
well experienced promoters which will help entity to grow its
business.

* Location advantage resulting in easy access of raw material:
HTPL's is located at Gandhidham (Kutch), which is near to Kandla
port, which enjoys good road & rail connectivity leading to
better lead-time and facilitates import and delivery of finished
products in a timely manner.

Key Rating Weaknesses

* Decline in total operating income (TOI) coupled with thin
profit margins during FY17 (A): During FY17, HTPL registered de-
growth of 32.66% in its TOI which stood at INR24.41 crore as
against INR36.25 crore during FY16 owing to subdued market
scenario. During FY17, the PBILDT margin of HTPL improved
marginally and stood at 4.28% as against 4.23% in FY16.
Resultantly, HTPL reported thin PAT Margin of 0.44% as against
0.43% during FY16.

* Improved but leveraged capital structure and weak debt coverage
indicators: As on March 31, 2017, the capital structure of HTPL
improved as marked by an overall gearing ratio (including LC
backed creditors of INR6.94 crore) of 2.05 times as against 3.01
times (including LC backed creditors of INR6.98 crore) as on
March 31, 2016 decline in total debt on account of repayment of
unsecured loans coupled with increase in net worth base. The
debt coverage indicators stood weak as marked by total debt to
gross cash accruals at 98.58 times as on March 31, 2017 as
against 82.93 times during FY16 mainly on account of decline in
gross cash accruals. Interest coverage ratio improved stood
moderately weak at 1.21 times for FY17 as against 1.20 times for
FY16 due to high interest cost coupled with lower PBILDT level.

* Working capital intensive nature of operations: The current
ratio improved marginally and stood moderate at 1.19 times as on
March 31, 2017 as against 1.17 times as on March 31, 2016,
consequently quick ratio improved but remained below unity as on
balance sheet date. Working capital cycle remained elongated at
152 days during FY17 which has increased from 97 days during FY16
due to increase in gross asset days.

* Presence in a highly fragmented industry: HTPL operates in a
highly fragmented and competitive trading industry wherein large
numbers of unorganized players are present, wherein it has a very
low bargaining power against its customers as well as its
suppliers. This coupled with limited value addition in trading
puts pressure on the profitability margins as well.

Gandhidham (Gujarat) based HTPL was incorporated in 2012 by
Rudani and PatelFamily and currently managed by Mr.
RajeshkumarRudani and other family members.Mr. RajeshbhaiRudani
possesses 10 years of experience in wood and wood products
industry.HTPL is engaged into manufacturing of veneer sheets,
manufacturing of plyboard, particle board and other plyboard
products.

H K Lumbers LLP Is the group entities of HTPL, which is engaged
in same line of business saw milling and planning of wood.


KESHARI INDUSTRIES: CARE Moves B+ Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has been seeking information from Keshari Industries
Limited to monitor the ratings vide e-mail communications/
letters dated October 18, 2017, November 9, 2017, December 8,
2017, December 23, 2017 and numerous phone calls. However,
despite our repeated requests, the entity has not provided the
requisite information for monitoring the ratings. In the absence
of minimum information required for the purpose of rating, CARE
is unable to express opinion on the rating. In line with the
extant SEBI guidelines CARE's rating on Keshari Industries
Limited's bank facilities will now be denoted as CARE B+/CARE A4;
ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)   Ratings
   ----------       -----------   -------
   Long-term Bank
   Facilities            1.86     CARE B+; Issuer Not Cooperating

   Long-term/Short-      5.00     CARE B+/CARE A4; Issuer Not
   term Bank                      Cooperating
   Facilities

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

Detailed description of the key rating drivers

At the time of last rating done on February 06, 2017, the
following were the rating strengths and weaknesses:

Key Rating Weaknesses

Presence in competitive and fragmented textile industry along
with susceptibility of profitability to fluctuations in raw
material prices:

The textile industry is one of the largest and the most important
sectors for the Indian economy with presence of numeropus large
and small scale players at various stages of ginning, spinning,
weaving and knitting making Indian textile industry highly
fragmented and competitive. The prices of raw materials (majorly
linen yarn) and finished goods (shirting fabric) are determined
by global demand-supply scenario and are not limited to only
domestic factors, which affect the margins of the company.

Leveraged capital structure and working capital intensive nature
of operations: The overall gearing of KIL as on March 31, 2016
deteriorated to 2.69x as against 1.56x as on March 31, 2015.
KIL's operations are working capital intensive as marked by long
working capital cycle of 157 days in FY16.

Key Rating Strengths

* Experienced promoters; albeit with short track record of
operations in manufacturing products under its own brand name:
The promoters of KIL have over three decades of experience in
textile industry via other group entities. Till FY15, KIL
obtained around 60-70% of its total operating income from job
work and the remaining through trading activities. However, in
FY16 KIL started manufacturing its own products and the share of
job work income in total operating income reduced to 7%.

* Improvement in total operating income over the past four years;
albeit with small scale of operations: The total operating income
of KIL registered a CAGR of 80% over the past four years ended
FY16. However, the total operating income stood small at INR8.47
crore in FY16.

* Benefits available under various Government policies: KIL is
eligible for various incentives by the state as well as
Government of India (GoI). It avails the benefit interest subsidy
under the Restructured Technology Upgradation Fund Scheme (R-
TUFS) and Gujarat Textile Policy - 2012 along with power tariff
subsidy which is expected to increase its cash flow in the near
to medium term.

Keshari Industries Ltd (KIL), promoted by Mr Laxmi Narayan
Mundhra and Mr Gopi Kishan Lahoti is engaged in manufacturing and
supplying shirting fabrics of linen, polyester and cotton for men
and ladies wear. The manufacturing facility of KIL is located in
Surat, Gujarat which consists of seven high-speed automated
warping machines, 150 water-jet looms and 250 high-speed rapier
looms which adds up to an installed capacity of 1.44 million
meters of fabric per month.


KINSHUK ENTERPRISE: CARE Moves B+ Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has been seeking information from Kinshuk Enterprise
to monitor the ratings vide e-mail communications/ letters dated
April 11, 2017, May 4, 2017, May 10, 2017, May 23, 2017, July 7,
2017, August 8, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the entity has not provided the
requisite information for monitoring the ratings. In the absence
of minimum information required for the purpose of rating, CARE
is unable to express opinion on the rating. Further, Kinshuk
Enterprise has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. In line with the
extant SEBI guidelines CARE's rating on Kinshuk Enterprise's bank
facilities will now be denoted as CARE B+/A4; ISSUER NOT
COOPERATING.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank
   Facilities           0.46      CARE B+; Issuer Not Cooperating

   Long-term/Short-
   term Bank
   Facilities           6.50      CARE B+/CARE A4; Issuer Not
                                  Cooperating
   Short-term Bank
   Facilities           0.30      CARE A4; Issuer Not Cooperating

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

Detailed description of the key rating drivers

At the time of last rating done on April 28, 2017, the following
were the rating strengths and weaknesses:

Key Rating Weaknesses

* Low profitability: The profit margins remained low on account
of processing and trading nature of business. The PBILDT margins
remained in the range of 1.09% to 2.25% during last three years.

* Working capital intensive operations: The operations of the
firm are working capital intensive as indicated by operating
cycle of 74 days during FY16 (50 days during FY15). Overall
operations remained highly working capital intensive in nature
marked by 85% of net working capital as a percentage of the total
capital employed as on March 31, 2016.

* Leveraged capital structure and weak debt coverage indicators:
Due to increase in working capital bank borrowing to support
increasing scale of operations, the overall gearing deteriorated
from 1.07 times to 2.00 times as on March 31, 2016. Its debt
coverage indicators also remained weak on account of low
profitability and high gearing.

Key Rating Strengths

* Consistent increase in scale of operations albeit low
profitability: The TOI of the firm has increased from INR30.84
crore to INR35.72 crore in FY16 depicting growth of 15.85% on
y-o-y basis. KES also commenced processing of agro products such
as Millet, Cumin seeds and Sesame seeds since October, 2015.

KE was formed in 2010 as a partnership firm by Mr. SurajVadhava,
MrNandkishorWadhawa and Mrs. KasturabenWadhawa. In April 2013, a
new partner Mr Naval Wadhawaal so joined the firm. KE is engaged
in the business of trading, processing and export of agro
commodities such asCumin seeds, Sesame seeds, Watermelon seeds,
Groundnut seeds, Fenugreek, Cattle feed, Psyllium husk powder,
Guar gum powder etc. KE operates from its facilities located at
Sidhpur, Gujarat. KE sells its products in the domestic market as
well as exports it to Turkey, Iran and Morocco.


M.P.K. ISPAT: CARE Moves D Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has been seeking information from M.P.K. Ispat (I)
Private Limited (MIPL), to monitor the rating vide e-mail
communications/ letters dated December 6, 2017, November 23,
2017, November 6, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, MIPL has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on
MIPL's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING; based on best available information.

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank
   Facilities            19.30     CARE D; Issuer not
                                   cooperating; Based on best
                                   available information

   Short-term Bank
   Facilities             7.40     CARE D; Issuer not
                                   cooperating; Based on best
                                   available information

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

The rating assigned to the bank facilities of MIPL continues to
remain constrained on account of ongoing delays in servicing of
interest and installment of its debt owing to stressed liquidity
position.

Detailed description of the key rating drivers

Key Rating Weakness

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

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


M.P.K. METALS: CARE Moves D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has been seeking information from M.P.K. Metals
Private Limited (MTPL), to monitor the rating vide e-mail
communications/letters dated December 6, 2017, November 23, 2017,
November 6, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, MTPL has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on
MTPL's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING; based on best available information.

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long-term Bank
   Facilities          6.41      CARE D; Issuer not
                                 cooperating; Based on best
                                 available information
   Short-term bank
   Facilities          0.72      CARE D; Issuer not
                                 cooperating; Based on best
                                 available information

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

The rating assigned to the bank facilities of M.P.K. Metals
Private Limited (MTPL) continues to remain constrained on account
of ongoing delays in servicing of interest and installment of its
debt owing to stressed liquidity position.

Detailed description of the key rating drivers

At the time of last rating on July 12, 2017 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies):

Key Rating Weakness

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

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


MARUTI NANDAN: CARE Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CARE Ratings has been seeking information from Maruti Nandan
Spinning Mill to monitor the rating(s) vide e-mail
communications/ letters dated January 2, 2018, December 6, 2017,
November 16, 2017, November 1, 2017, October 17, 2017, October 3,
2017, August 23, 2017, August 8, 2017, June 21, 2017, June 8,
2017and numerous phone calls. However, despite our repeated
requests, the entity has not provided the requisite information
for monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on Maruti Nandan Spinning Mill's bank facilities
will now be denoted as CARE B+/CARE A4; ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)   Ratings
   ----------       -----------   -------
   Long-term Bank
   Facilities            5.00     CARE B+; Issuer Not Cooperating

   Long/Short-term      30.00     CARE B+/CARE A4; Issuer Not
   Bank Facilities                Cooperating

   Short-term Bank
   Facilities            2.90     CARE A4; Issuer Not Cooperating

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

Detailed description of the key rating drivers
At the time of last rating on Sept. 28, 2016, the following were
the rating strengths and weaknesses:

Key Rating Weaknesses

* Constitution as a partnership firm: There is inherent risk of
possibility of withdrawal of capital and dissolution of the firm
in case of death/insolvency of any of the partners.

* Implementation risk associated with new project: Total expected
project cost is INR47.74 crore that will be financed by debt-
equity mix of 1.69 times. Total cost of the proposed project
incurred stood at INR6.38 crore (13.36% of the project cost) as
on August 20, 2016 which has been financed by the promoters'
contribution.

* Susceptibility of profitability to volatility in cotton prices;
along with inherent cyclicality associated with the textile
industry: The profitability of MNSM is exposed to fluctuations in
raw cotton, which being an agricultural commodity is subject to
the vagaries of monsoon. Textile is a cyclical industry and
closely follows the macroeconomic business cycles. High
competitive intensity in the textile industry, volatility of
cotton prices, elevated inflation levels and sluggish demand
outlook are the major cause of concern for the Indian textile
industry.

* Presence in the highly fragmented textile industry and limited
presence in textile value chain: The fabric manufacturing
industry segment is highly fragmented marked by presence of large
number of independent and small scale unorganised players leading
to high competition among industry players. The smaller companies
with limited presence in textile value chain are more vulnerable
to intense competition and have limited pricing flexibility,
which constrains their profitability.

Key Rating Strengths

* Experienced promoters and benefits derived from their
engagement in textile industry: Mr Anuj Mittal has experience of
more than 10 years in the textile industry. He is actively
involved in implementation of the project and handles day-to-day
operations of the firm.

* Location advantage of presence in Gujarat with fiscal benefits
from Government: The spinning facilities of MNSM are located in
Ahmedabad District of Gujarat, having easy access to raw
material, stable power supply and port infrastructure which are
the prerequisites for the sector. It also receives various fiscal
benefits from the Government of Gujarat and textile policy.

Ahmedabad-based (Gujarat) MNSM was formed in April 2015 by Mr
Anuj Mittal, Mr Gunjan Mittal, Mr Gaurav Mittal and Mr Pratik
Mittal. The firm is setting up a yarn spinning mill for
manufacturing open ended yarn having counts of 9s, 16s and 20s.
The firm will operate with 1,440 rotors having an installed
capacity of 5,411 TPA per annum. Total expected project cost is
INR47.74 crore that will be financed by a proposed debt-equity
mix of 1.69 times.

The partners are also associated with four other companies namely
Shri Ram Cot Fab, Mahek Synthetics Mills Private Limited (MSMPL),
Balaji Polycot Private Limited (BPPL) and Shri Laxmi Polycot
Private Limited (SLPPL) which are engaged in textile business.


NARESH SINGHAL: CARE Reaffirms B+ Rating on INR3.25cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Naresh Singhal & Company (NSC), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank
   Facilities            3.25       CARE B+; Stable Reaffirmed

   Short term Bank
   Facilities            5.50       CARE A4; Reaffirmed

Detailed Rational and key rating drivers

The ratings assigned to the bank facilities of NSC continue to
remain constrained by its small scale of operations coupled with
low net worth base, leveraged capital structure and weak coverage
indicators. The ratings are further constrained by elongated
inventory holding, proprietorship nature of constitution and its
presence in the highly fragmented and competitive industry.

The ratings, however, continue to draw strength from the
experienced proprietor in execution of civil contracts and long
track record of operations of the firm and moderate profitability
margins.

Going forward, NSC's ability to profitably scale-up its
operations while improving its capital structure along with
successful execution of projects within the estimated time and
costs would be the key rating sensitivities.

Detailed description of key rating drivers

Key rating weakness

* Small scale of operations with low net worth base: The scale of
operations of the firm continues to remain small marked by a
total operating income and gross cash accruals of INR11.78 crore
and INR0.69crore respectively during FY17 (FY refer to April 01
to March 31). Furthermore, as on March 31, 2017, the net worth
base of the firm remained small at INR1.34 crore. Small scale of
operations and low net worth base restricts the ability of the
firm to scale up and bid for larger sized contracts having better
operating margins. The firm has achieved total operating income
of INR8.00 crore till 8MFY18 (refers to the period April 01 to
November 30, based on provisional results).

* Leveraged capital structure: The capital structure of the firm
continues to remain leveraged as marked by overall gearing ratio
of 3.96x as on March 31, 2017 as against 5.60x as on March 31,
2016 .The improvement is on account of lower total debt owing to
repayment of term loan and lower utilization of the working
capital borrowings as on the balance sheet date coupled increase
in capital base of the firm.

* Elongated Inventory Holding Period: The average working capital
cycle of the firm continues to remain elongated as marked by
operating cycle of 126 in FY17 mainly on account of elongated
average inventory holding of the firm. The firm's customers are
government departments of various states which have longer
payment periods attributable to varying inspection and approval
timelines. The firm has to keep inventory at different sites for
smooth execution of contracts coupled with delays in getting
approvals for billing from customer resulted in average inventory
days of around 117 day in FY17. During FY17, the firm has a
collection period of around 27 days. Also the firm receives a
credit period of around 15 days resulting in an average creditor
period stood at 18 days for FY17. The sanctioned working capital
limits remained around 90% utilized for the 12 month period
ending November 2017.

* Constitution of the entity being a proprietorship firm: AGPL
constitution as a proprietorship firm has the inherent risk of
possibility of withdrawal of the proprietor's capital at the time
of personal contingency and firm being dissolved upon the
death/retirement and insolvency of proprietor. Moreover,
proprietorship firms have restricted access to external borrowing
as credit worthiness of proprietor would be the key factors
affecting credit decision for the lenders.

* Business risk associated with tender-based orders: The firm
majorly undertakes projects for Public Works Department (PWD) and
Municipal Corporation projects, which are awarded through the
tender-based system. The tender-based business is characterized
by intense competition and the growth of the business depends on
its ability to successfully bid for the tenders and emerge as the
lowest bidder. Also, as most of the business is tender-driven,
the incumbent players have witnessed margin pressures due to
aggressive bidding from the players seeking an entry in the
market.

* Presence in the highly fragmented and competitive industry: The
industry is characterized as fragmented and competitive nature as
there are a large number of players in the organized and
unorganized sector. Hence, going forward, due to increasing level
of competition, the profits margins are likely to be range bound.

Key rating strengths

* Experienced proprietor in execution of civil contracts and long
track record of operations: NSC was established in 1992 by Mr.
Naresh Singhal. Mr. Naresh Singhal is a graduate and has more
than two decades of experience in executing civil contracts
through his association with NSC. He looks after the overall
operations of the firm.

* Moderate Profitability margins: The PBILDT margin of the firm
continues to remain moderate as marked by PBILDT of margin 12.73%
in FY17 as against 11.68% in FY16. The improvement in the margins
is account of execution of projects with better profitability
margins. PAT margin also stood moderate at above 5.25% for the
last three financial years (FY15-FY17).

Naresh Singhal & Company (NSC) was established as a
proprietorship firm in 1992 by Mr Naresh Singhal. The firm is
engaged execution of civil contracts viz. execution of sewage
water pipelines, overhead tanks and water treatment facilities
mainly in Delhi-NCR region. The majority of the contracts are
obtained from Public Works Department (PWD) and Municipal
Corporation through competitive bidding process.


NIKITA JEWELLERS: Ind-Ra Upgrades Issuer Rating to 'BB+'
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Nikita Jewellers
Pvt. Ltd.'s (NJPL) Long-Term Issuer Rating to 'IND BB+' from 'IND
BB(ISSUER NOT COOPERATING)'. The Outlook is Stable. The
instrument-wise rating action is:

-- INR156 mil. Fund-based limits upgraded with IND BB+/Stable
    rating.

KEY RATING DRIVERS

The upgrade reflects a substantial improvement in NJPL's scale of
operations along with an improvement in credit metrics. In FY17,
revenue surged to INR1,122 million (FY16: INR820 million), driven
by a rise in sale of gold jewellery. However, the scale of
operations remained moderate. EBITDA increased to INR74 million
in FY17 (FY16: INR39 million) driven by a decline in operating
expenses. Interest coverage (operating EBITDAR/gross interest
expense) improved to 2.9x in FY17 (FY16: 1.3x) and net financial
leverage (total adjusted net debt/operating EBITDA) to 3.7x
(7.7x) on account of a rise in EBITDA margin to 6.6% (4.8%). The
company derives a major portion of its revenue from the jewellery
retailing business, which witnessed an improvement in margins.

The ratings also factor in NJPL's moderate liquidity position as
reflected by 94% utilisation of its fund-based limits during the
12 months ended December 2017.

However, the ratings remain supported by the company's promoter's
a decade-long experience in the jewellery retailing business.

RATING SENSITIVITIES

Positive: A sustained improvement in the credit profile will be
positive for the ratings.

Negative: Any deterioration in the overall credit profile will be
negative for the ratings.

COMPANY PROFILE

Incorporated in 1998, NJPL is engaged in retailing of jewellery.
The company has two showrooms in Mumbai, which are managed by
Suresh D Bagrecha.


PATDIAM JEWELLERY: Ind-Ra Affirms BB- LT Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Patdiam
Jewellery Limited's (PJL, erstwhile Patdiam Jewellery Private
Limited) Long-Term Issuer Rating at 'IND BB-'. The Outlook is
Stable. The instrument-wise rating actions is:

-- INR210 mil. (reduced from INR215.1 mil.) Fund-based working
    capital limits affirmed with IND BB-/Stable/IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects PJL's continued small scale of
operations, moderate EBITDA margin and weak credit metrics, due
to a small customer base.

Revenue declined to INR448 million in FY17 (FY16: INR459
million), on account of a decline in order inflow due to a fall
in demand in export markets. As of November 2017, the company
achieved revenue of INR446 million and had orders worth INR50
million, which will be executed before February 2018. EBITDA
margin improved to 7.6% in FY17 (FY16:  5.1%), primarily due to
stable raw material prices and a decline in the variable cost.
Ind-Ra expects the EBITDA margin deteriorate slightly in FY18 due
to an increase in raw material cost. PJL's net financial leverage
(adjusted net debt/operating EBITDA) was 8.1x in FY17 (FY16:
13.4x) and gross interest coverage operating (EBITDA/gross
interest expense) was 2.2x (FY16: 1.5x). The improvement in
credit metrics was mainly due to the increase in EBITDA margin.

The ratings factor in PJL's tight liquidity due to high working
capital intensity. Net cash conversion cycle deteriorated 424
days in FY17 (FY14: 414 days) and the use of the fund-based
facilities was 90% on average during the 12 months ended December
2017.

The ratings continue to factor in the INR120 million corporate
guarantee extended by PJL's to its group company M/s Patdiam
Jewels.

The ratings, however, are supported by over 30 years of
experience of the company's founders in jewellery manufacturing
and a steady supply of raw materials i.e. polished diamonds, as
it sources them from its group company - M/s Patdiam Jewels.

The ratings are also supported by the strong business model of
the company in terms of manufacturing high-end speciality
jewellery such as diamond studded jewellery which is a high-
margin product. Also, the company faces limited competition in
this segment, leading to greater dependence of overseas clients
on the company.

RATING SENSITIVITIES

Positive: A large improvement in PJL's scale of operations and
liquidity while maintaining the profitability could lead to a
positive rating action.

Negative: A significant decline in the operating profitability or
a large increase in working capital requirements, and consequent
continued liquidity pressures, could lead to a negative rating
action.

COMPANY PROFILE

PJL was incorporated in 2004 and is part of the Patdiam Group.
PJL manufactures and exports high-end speciality diamond studded
jewellery. The group comprises two other companies: M/s Patdiam
Jewels (similar line of business) and M/s Patdiam (processing of
diamonds).


PRAJA MECHANICALS: CARE Lowers Rating on INR2cr LT Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Praja Mechanicals Private Limited (PML), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            2.00       CARE B Revised from CARE B+

   Long-term/Short-      5.00       CARE B/CARE A4 Revised from
   term Bank                        CARE B+
   Facilities

Rating Rationale and key rating drivers

The revision in the long-term ratings assigned to the bank
facilities of PML factors in subdued performance during FY17
(refers to the period of April 1 to March 31) marked by
prolongation of operational losses, deterioration of capital
structure and weak debt service coverage indicators. The ratings
further continue to be constrained by small and fluctuating scale
of operations, concentrated customer base, working capital
intensive nature of operations, exposure to volatility in raw
material prices and presence in the competitive nature of
industry.

The ratings, however, continue to derive strength from the
experienced promoters coupled with the long track record of
operations and association with reputed customer base.

Going forward; PML's ability to scale up its scale of operations
while improving its profitability margins and capital structure
along with effective management of its working capital
requirements shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Small and fluctuating scale of operations: The scale of
operations has remained small marked by total operating income
and cash losses of INR10.70 crore and INR 1.37 crore respectively
in FY17 (FY refers to financial year from April 1 to March 31).
Further, the net worth base also remains relatively small at INR
5.43 crore as on March 31, 2017. The scale of operations of PML
continues to remain small which limits the company's financial
flexibility in times of stress and deprives it from scale
benefits. The total operating income of PML has been showing a
fluctuating trend during the last three financial years (FY15-
FY17). TOI declined from INR 12.18 crore in FY15 to INR 8.58
crore in FY16, thereafter increased to INR 10.70 crore in FY17 on
account of higher quantity sold. The company has achieved TOI of
INR9 crore in 7MFY18 (refers to the period April 01 to October
31).

* Reputed clientele base though concentrated: The company had
been catering to reputed customers consisting of automobile
companies like Honda Cars India Limited, TVS Motor Company
Limited (CARE AA+/A1+), VE Commercial Vehicles Limited (ICRA
AA+/A1+), SML Isuzu Limited (ICRA AA/A1+) and HYT Engineering
Company Private Limited. The same is evidence of acceptance of
the company's products and their quality in the market. Sales to
top five customers accounted for around 95% of the total sales
for FY17. This exposes the company towards customer concentration
risk. Any change in procurement policy of these customers may
adversely impact the business of the company. Furthermore, the
customer concentration also exposes the company's revenue growth
and profitability to its customer's future growth plan.

* Deterioration in financial risk profile during FY17: During
FY17, the company continued to incur net losses at INR1.08 crore
in FY17 attributable to lower capacity utilization which resulted
into higher proportion of fixed cost to be absorbed. Further, the
company also has high interest and finance expenses.

The overall gearing deteriorated to 1.04x as on March 31, 2017,
as against 0.83x, as on March 31, 2016 owing to erosion of net
worth due to losses incurred coupled with increase in unsecured
loans and higher utilization of working capital limits as on
balance sheet date. Furthermore, the debt coverage indicators
marked by interest coverage ratio and total debt to GCA stood
weak due to high interest & financial charges and operational
losses during FY17.

* Working capital intensive nature of operations: In normal
course of business the company maintains average inventory of
around 2 months for smooth running of its manufacturing
processes. The company has to offer reasonable credit period to
its customers on account of competitive nature of industry
resulting into average collection period of 67 days in FY17. The
company purchases raw materials from domestic market and also
imports the same. The average payable period stood at 55 days
during FY17. Further, the average utilization of working capital
limits remained 90% utilized during 12-months ending October,
2017 and low current ratio as on the last three balance sheet
dates reflects working capital intensive nature of operations.

* Exposure to volatility in raw material prices: Raw material
consumption is the single largest cost component of PML which
mainly consists of steel and electrical components. There is no
long-term contract with any of the raw material suppliers and the
company sources the material on need basis as per the price
prevailing in the market. Therefore, the company is exposed to
any fluctuation in the prices of steel, copper and other material
used in the manufacturing of equipment which the company is
unable to pass on to its customers due to low bargaining power.

Key Rating Strengths

* Experienced promoters and long track record of operations: PML
has been in manufacturing of automated material handling system
for more than three decades which aids in establishing
relationships with both suppliers and customers. It is currently
being managed by Mr. Jai Narayan Rungta, Mr. Pradip Kumar Rungta
and Mr. Rajesh Kumar Rungta. Mr. Jai Narayan Rungta looks after
overall affairs of the company and accumulated his vast
experience through association with PML. Mr. Pradip Kumar Rungta
and Mr. Rajesh Kumar Rungta looks after finance activities and
marketing activities respectively. Both have an experience of
around three decades through their association with PML.

Incorporated in 1982, PML is promoted by Mr Jai Narayan Rungta,
Mr Pradip Kumar Rungta and Mr Rajesh Kumar Rungta. The company is
engaged in the manufacturing of conveyors, material handling
equipment and allied parts at its manufacturing units located in
Haryana and Uttar Pradesh. The company caters directly to
original equipment manufacturers (OEM's) in the automobile
industry. The main raw material and semi-finished products
includes steel and electrical components which are procured
domestically as well as imported from USA, Taiwan and China.

The group associates of PML include Praja Controls & System
Private Limited, VAFS (India) Private Limited and Praja
Securities Limited are engaged in the manufacturing of control
panels, propane conversion equipment and trading of
securities, respectively.


PRAKASH CORPORATES: CARE Assigns B+ Rating to INR8cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Prakash Corporates (PCS), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities             8.0       CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of PCS is constrained
by short track record with small scale of operations, low
profitability margins, volatility in prices of traded/input
materials, working capital intensive nature of operations,
moderate capital structure, moderate debt coverage indicators,
partnership nature of constitution and intensely competitive
industry. The rating, however, derives strength from experienced
partners and healthy order book position.

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

Detailed description of the key rating drivers

Key Rating Weaknesses

* Short track record with small scale of operation and low profit
margin: PCS has commenced operations since March 2017 and thus
has extremely short track record of operations. Further, PCS is a
small player in the trading and civil construction industry with
total operating income of INR5.46 crore in FY17. However, in
7MFY18, the firm has booked revenue of INR20.00 crore. The
profitability margin remained low marked by PBILDT margin of
0.51% and PAT margin of 0.48% in FY17.

* Volatility in prices of trading/input materials: PCS is engaged
in trading of steel, cement, related commodities and construction
activities. The prices of traded/input materials like steels,
cements, etc. are volatile in nature. Since, cost of traded/input
material is the major cost driver of PCS, any volatility
witnessed in the prices of traded/input materials can narrow the
profitability margins.

* Working capital intensive nature of operations: PCS's business,
being trading of construction materials and civil construction is
working capital intensive in nature. The firm maintains inventory
of around a month for timely supply of its customer's demands as
well as smooth running of construction activities. Furthermore,
it also provides on an average one month credit to its customers.
Accordingly the average utilisation of working capital was on the
higher side at around 95% during last seven months ended in
September, 2017.

* Moderate capital structure & debt coverage indicators: The
capital structure of the firm remained moderate marked by overall
gearing ratio at 1.72x as on March 31, 2017. Furthermore, the
debt coverage indicators also remained moderate marked by
interest coverage of 16.03x and total debt to GCA of 12.92x in
FY17.

* Partnership nature of constitution: PCS, being a partnership
firm, is exposed to inherent risk of withdrawal of capital by the
partners, restricted access to funding and risk of dissolution on
account of poor succession planning. Furthermore, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision for the lenders.

* Intensely competitive industry: The firm is into trading of
construction materials which is highly fragmented and competitive
in nature due to low entry barriers. Further all the entities
trading the same products with a little product differentiation
resulting into price driven sales. Intense competition restricts
the pricing flexibility of the firm in the bulk customer segment.
Further, the firm also faces intense competition in construction
segment thereby limiting the pricing flexibility of the firm.

Key Rating Strengths

* Experienced partners: The key partners, Mr. Shailesh Goyal has
more than a decade of experience in PVC cables and construction
industry. He looks after the day to day operations of PCS,
supported by other partners.

* Healthy order book position: Currently the firm has an
unexecuted order book position of INR38.22 crore (7x of FY17
revenue) which is scheduled to be completed by March 2018. The
healthy order book position of the firm is resulting in revenue
visibility in near to medium term.

PCS was set up as a partnership firm in January 2017 by the Goyal
family of Raipur, Chhattisgarh. The firm has been engaged in
trading of construction materials like steels, cements etc. and
civil construction activities. The firm has commenced operations
from March 01, 2017 onwards. The firm has earned its entire
revenue from trading activities in FY17. Currently the firm has
got a sub-contract work for construction & external development
of bus terminal at Raipur from Dee Vee Projects Limited amounting
to INR43.22 crore which is scheduled to be completed by March
2018.


PRAYAG CLAY: CARE Assigns B+ Rating to INR12.70cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Prayag
Clay Products Private Limited (PCPL), as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank
   Facilities           12.70      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of PCPL are
constrained on account of ongoing debt funded capex, small size
of operations along with moderate profitability and weak
liquidity position.

Furthermore, the ratings also take into consideration PCPL's
presence in high competitive industry and exposure to risks and
cyclicality of real estate sector.

However, the rating derives strength from experience of the
promoters coupled with long established business operations.
Further, the ratings takes into consideration financial risk
profile marked by comfortable solvency position and debt
protection metrics.

The ability of PCPL to successfully complete its on-going capex
and ability to increase its scale of operations along with
improving profit margins, solvency position and liquidity
position would remain the key rating sensitivities.

Detailed description of the key rating drivers

Key rating strengths

* Experienced directors along with established business
operations: Brick manufacturing business was commenced by Late
Mr. Gurnamal Badlani in 1937 which is presently, managed by his
son Mr. Om Prakash Badlani (Chairman) under the name of PCPL.
PCPL was established in 2009 and is managed by four directors
jointly viz. Om Prakash Badlani, Mr. Dishant Badlani, Mrs. Vanya
Badlani and Mrs. Puja Badlani. Overall, operations of the entity
are supported by other qualified professionals and employees as
well for day to day operations and management.

* Comfortable solvency position and debt protection metrics:
Solvency position of PCPL improved significantly and remained
comfortable marked by an overall gearing of 0.70 times as on
March 31, 2017 as against 5.35 times as on March 31, 2016 due to
increase in the networth base and decrease in the debt level.
With comfortable capital structure, the debt protection metrics
also remained comfortable marked by total debt to GCA of 3.11
years as on March 31, 2017 as compared to 7.01 years as on
March 31, 2016 and interest coverage ratio of 2.54 times during
FY17 as compared to 2.23 times during FY16. Improvement in debt
coverage indicators was mainly on account of decline in total
debt level.

Key Rating Weaknesses

* On-going debt funded capex: PCPL is undertaking project to add
new products viz. split tiles, clay blocks along with quality
enhancement of existing products and enhance its installed
capacity to 2 crore bricks per annum against present capacity of
1 crore bricks per annum. PCPL has estimated total cost of the
project at INR 14.75 crore with project gearing of 2.64 times.
Till November 2017, 16% of the total project cost has been
incurred and PCPL is planning to commence commercial production
from October 2018 onwards.

* Small scale of operations with moderate profitability: The
scale of operations remained small during FY17 as marked by total
operating income of INR 7.48 crore as against INR6.33 crore
during FY16. During FY17, the operating margin declined to 13.59%
as against 15.16% during FY16. However, PAT margin improved and
remained moderate at 1.31% during FY17 as against 0.81% during
FY16.

* Weak liquidity position: During FY17, the working capital cycle
improved and stood moderate at 89 days as against 104 days during
FY16 on account of decline in gross asset days. Current ratio
stood below unity at 0.90 times as on March 31, 2017 as against
0.78 times as on March 31, 2016. Consequently, due to high
inventory as on March 31, 2017, quick ratio stood low at 0.21
times as on March 31, 2017 as against 0.15 times as on March 31,
2016.

* Presence in a highly competitive industry which further exposed
to the risks and cyclicality inherent in real estate industry:
Brick manufacturing pertains to industry with presence of number
of players and low entry barriers resulting into increase in
level of competition. Red clay bricks face competition from newly
emerging AAC blocks. Demand for the bricks comes from real estate
and construction industry which is highly fragmented and
cyclical. Hence, PCPL is exposed to the risk and cyclicality
associated with the real estate sector, which is also highly
sensitive to the interest rates and liquidity position in market.

Varanasi (Uttar Pradesh) based PCPL is a private limited company
which was incorporated in 2009 by merging three firms i.e. Prayag
Enterprise, Prayag Bricks and Prayag Bricks Co. to manufacture
bricks viz. traditional bricks (hand molded), machine made
bricks, hollow blocks, modular bricks, decorative clay tiles for
roof and walls, clay pavers etc. Brick manufacturing business was
commenced by Late Mr. Gurnamal Badlani in 1937 which is
presently, managed by his son Mr. Om Prakash Badlani (Chairman)
and other three directors jointly viz. Mr. Dishant Badlani, Mrs.
Vanya Badlani and
Mrs. Puja Badlani. PCPL operates from its sole manufacturing
facilities at Varanasi (Uttar Pradesh) with installed capacity
of manufacturing 1 crore of bricks per annum.


REALCADE LIFESCIENCE: CARE Ups Rating on INR31.84cr Loan to B+
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Realcade Lifescience Private Limited (RLPL), as:

                      Amount
   Facilities       (INR crore)   Ratings
   ----------       -----------   -------
   Long-term Bank
   Facilities           31.84     CARE B+; Stable Revised from
                                  CARE B

   Short-term Bank
   Facilities            1.45     CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The revision in the long-term rating assigned to the bank
facilities of RLPL is primarily on account of stabilization of
operations during FY17 (refers to the period April 1 to March
31). The ratings, further, derives strength from experienced
promoters in the pharmaceutical industry.

The above mentioned strengths are partially offset by the
implementation and stabilization risk associated with its on-
going debt-funded capex, net losses, leveraged capital structure
and moderate debt coverage indicators with working capital
intensive nature of operations. The ratings further, remain
constrained on account of susceptibility of profit margins to
volatility in raw material prices along with presence in the
highly fragmented, competitive and regulated pharmaceutical
industry.

The ability of RLPL to increase its scale of operations and
improve its profitability, capital structure and debt coverage
indicators along with efficient management of its working capital
would remain the key rating sensitivities. Further, its ability
to successfully commission its ongoing capex and commence
commercial production within the envisaged timeline would also
remain crucial.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Implementation and stabilization risk associated with on-going
debt-funded capex: RLPL is currently implementing a project for
manufacturing 100 ml bottles of Intravenous fluids with installed
capacity of 2,05,92,000 bottles. The total cost of the project is
envisaged at INR11.06 crore and is expected to be completed by
end of January 2018.

* Financial risk profile marked by net loss, leveraged capital
structure, moderate debt coverage indicators with working capital
intensive nature of operations: RLPL booked net loss of INR3.11
crore in FY17, while the capital structure remained leveraged
marked by overall gearing of 2.10 times as on March 31, 2017.
Debt coverage indicators of the company remained moderate marked
by total debt to GCA of 8.35 years as on March 31, 2017 and
interest coverage of 2.18 times during FY17.

The operation remained working capital intensive in nature as
marked by current ratio of 1.11 times as on March 31, 2017, while
the average utilization of the working capital borrowings
remained high at 90% for the past 12 months period ended
December, 2017.

* Susceptibility of profit margins to volatility in raw material
price along with presence in the highly fragmented, competitive
and regulated pharmaceutical industry: The main raw material for
manufacturing Intravenous Fluids is Dextrose and Sodium Chloride,
prices of which remains highly fluctuating in nature. Indian
pharmaceutical industry is highly fragmented in nature with
presence of few large organized Pharma companies and large number
of small unorganized companies which leads to intense competition
among the players. Besides, there is a price regulation on
essential drugs as per Drugs Price Control Order (DPCO) in the
domestic market which restricts the prices for essential bulk
drugs and their formulations.

Key Rating Strengths

* Stabilization of operations during FY17: During FY17, the
company completed its project and started commercial production
from October 2016. The operations have stabilized, while it
achieved total operating income (TOI) of INR7.11 crore for its
six months of operations during FY17 while operating profit stood
at INR2.90 crore. Further, till December 28, 2017 (Provisional),
RLPL has registered TOI of INR27.04 crore.

* Experienced promoters in the pharmaceutical industry: RLPL is
incorporated by five promoters led by Mr Vinodkumar Patel and Mr
Bharatkumar Vihol. The key promoter, Mr Bharatkumar Vihol has a
total experience of around 20 years in pharmaceutical industry
through serving in various pharmaceutical companies and looks
after the overall functions of the company.

Incorporated in the year 2012, RLPL is promoted by five promoters
led by Mr Vinodkumar Patel and Mr Bharatkumar Vihol. RLPL had
undertaken green field project to manufacture Intravenous Fluid
with an annual installed capacity of 2,37,60,000 bottles of 500
ML and 4,11,84,000 bottles of 100 ML at its facilities located at
Mehsana-Gujarat which got completed in September, 2016. The
products manufactured by the company will mainly be Dextrose and
Sodium Chloride based Intravenous fluid solution. The company has
started commercial production from October, 2016.


RELIANCE COMM: Hearing on Ericsson's Insolvency Bid Set Feb 19
--------------------------------------------------------------
Reuters reports that National Company Law Tribunal (NCLT) will
hear next on Feb. 19 Ericsson's insolvency petition against
telecoms carrier Reliance Communications, two lawyers on the case
said.

Reuters says the NCLT initially on Jan. 18 set the next date of
hearing for Feb. 5, but later changed it to Feb. 19 on the
lawyers' plea.

On September 11, Ericsson filed insolvency proceedings against
RCom in the NCLT under the newly-formed Insolvency and Bankruptcy
Code to recover INR1,150 crore from RCom for services and
equipment it had earlier supplied, according to the Economic
Times.

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

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 22, 2017, Moody's Investors Service has withdrawn Reliance
Communications Limited's (RCOM) Ca corporate family rating (CFR)
and its negative outlook. At the same time, Moody's has also
withdrawn the Ca rating on RCOM's senior secured notes.

On Nov. 6, 2017, RCOM announced that pursuant to the invocation
of Strategic Debt Restructuring (SDR) scheme by the lenders of
the company as per the Reserve Bank of India guidelines agreed in
June 2017, the company is under a debt standstill period until
December 2018, as it looks to complete a corporate and debt
restructuring. Accordingly, for the time being, no payment of
interest and/or principal is being made to any RCOM lenders
and/or bondholders.


S J EXPORTS: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed S J Exports'
(SJE) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable.
The instrument-wise rating actions is:

-- INR180 mil. (reduced from INR190 mil.) Fund-based working
    capital limits affirmed with IND B+/Stable/IND A4 rating.

KEY RATING DRIVERS

The affirmation reflects SJE's continued moderate scale of
operations and weak credit metrics because of its low-margin
business of processing diamonds that fall in the medium-price
range scale.

Revenue improved to INR832 million in FY17 (FY16: INR809 million)
because of an increase in order inflow due to a stable demand in
export markets. SJE recorded revenue of INR600 million in 9MFY17.
As of November 2017, SJE had an order book of INR50 million,
which will be executed before end-December. Net leverage
(adjusted net debt/operating EBITDA) improved to 8.1x in FY17
(FY16: 10.3x) due to an increase in EBITDA margin to 2.9% (2.4%)
primarily due to a decrease in raw material price, while EBITDA
interest coverage (operating EBITDA/gross interest expense)
deteriorated to 1.4x (1.6x) on account of an increase in interest
expense.

The ratings factor in the firm's tight liquidity position due to
high working capital requirements, with the fund-based facilities
being almost fully used during the 12 months ended December 2017.

The ratings are supported by the company's founder's experience
of more than three decades in cutting and polishing diamonds.

RATING SENSITIVITIES

Positive: Substantial growth in the firm's top line and
improvement in the profitability leading to an improvement in the
credit metrics on a sustained basis could lead to a positive
rating action.

Negative: Any decline in the profitability resulting in
deterioration in the credit profile on a sustained basis could
lead to a negative rating action.

COMPANY PROFILE

SJE was set up in 1990 as a partnership firm by Mr. Atman Shah,
Mr. Jayantilal Shah, Mr. Sanjay Shah, and Mr. Sunil Shah. The
firm cuts and polishes diamonds. It has a processing facility in
Surat (Gujarat) and a sales office in Mumbai (Maharashtra).


SHARON BIO-MEDICINE: CARE Moves D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has been seeking information from Sharon Bio-
Medicine Ltd to monitor the rating(s) vide e-mail
communications/letters dated December 20, 2017; December 13,
2017; July 5, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Sharon Bio-Medicine Ltd's bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank
   Facilities           367.54     CARE D; ISSUER NOT COOPERATING
                                   on the basis of best available
                                   information

   Short-term Bank
   Facilities           299.99     CARE D; ISSUER NOT COOPERATING
                                   on the basis of best available
                                   information

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

The ratings take into account the ongoing delays in debt
servicing owing to the strained liquidity position.

Detailed description of the key rating drivers

At the time of last rating on December 15, 2016, the following
were the rating weaknesses updated for the information available
from announcement of financial results on BSE website on
December 8, 2017.

Key Rating Weaknesses

* Delays in servicing the debt: The rating of Sharon Bio Medicine
Limited was revised taking into account the ongoing delays in
debt servicing owing to the strained liquidity position. As per
financial results published on BSE website, in FY17 Sharon Bio
Medicine Limited has reported revenues of 133.81 crore (Previous
Year: 390.05 crore) and losses of 347.86 crore (Previous Year:
242.08 crore).

Besides, Sharon Bio Medicine Limited has filed with NCLT for
Corporate Insolvency Resolution Process. NCLT had appointed
interim resolution professional (IRP) for the company and under
the said orders the powers of the BOD stands suspended and the
management of the affairs of the company stands vested in the
hands of IRP.

Sharon Bio-Medicine Ltd. (SBML) is engaged in the manufacturing
of Active Pharma Ingredients (API), Intermediaries, Formulations
(own brands) and Contract Manufacturing for finished
formulations. The company has a diversified product portfolio
with presence mainly in acute therapies such as anti-infectives
and anti-biotics along with presence in chronic therapies such as
diabetes and cardiovascular. The company has three manufacturing
facilities, two at Taloja in Maharashtra and one at Dehradun. In
addition, the company has three R&D centres which are approved by
the Department of Science & Technology, Government of India.


SHREE GEETA: CARE Assigns B+ Rating to INR49.84cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shree
Geeta Textile Mills Private Limited (SGTM), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            49.84      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SGTM is primarily
constrained on account of its nascent stage of operations with
net loss, weak solvency position and moderately stressed
liquidity position. The rating is, further, constrained on
account of its presence in a competitive textile industry and
vulnerability of margins to fluctuation in raw material prices.

The rating, however, derives strength from extensive experience
of promoters in the textile industry.

The ability of the company to increase its scale of operations
while maintaining/improving profitability along with efficient
management of working capital shall be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

* Nascent stage of operations with net loss: The company has
started commercial operations from November 2015 and hence FY17
is first full year of operations of the company. During FY17, the
company has registered Total Operating Income of INR49.93 crore
with moderate PBILDT margin of 22.12%. However, it has registered
continuous net loss in last two financial years ended FY17 owing
to initial stage of operations where depreciation and interest
cost stood high.

* Weak solvency position and moderately stressed liquidity
position: The capital structure of SGTM stood highly leveraged
mainly on account of continuous net loss resulting in lower
tangible net worth and increase in working capital bank
borrowings. Further, debt coverage indicators stood weak with
high total debt to GCA and low interest coverage ratio. The
liquidity position of the company stood moderately stressed with
90% utilization of working capital bank borrowings during last 12
months ended November 31, 2017. The company has generated
positive cash flow from operating activities in FY17, improved
from negative cash flows in FY16.

* Presence in a competitive industry and vulnerability of margins
to fluctuation in raw material prices: The company operates in
the textile manufacturing and processing industry which is highly
fragmented industry with presence of numerous independent small-
scale enterprises owing to low entry barriers leading to high
level of competition in the processing segment. The intense
competition in highly fragmented textile industry also restricts
ability to completely pass on volatility in input cost to its
customers, leading to fluctuating profit margins.

Key Rating Strengths

* Extensive experience of promoters in the textile processing
industry: Mr. Anurodh Mittal, Managing Director, has around two
decades of experience in the textile industry and looks after
overall functions of the company. He is assisted by his brother,
Mr. Anurag Mittal and his wife Mrs Jyoti Mittal who have more
than a decade of experience in the textile industry. Further, top
management are assisted by second tier management who helps in
managing the day to day affairs of the company.

SGTM was established in 2008 by Madhya Pradesh based Mittal
family with an objective to set up a greenfield plant for cotton
ginning & pressing, spinning for manufacturing of cotton yarn and
knitting of cotton yarn. SGTM has completed its project in phase
wise and started commercial operations of cotton ginning &
pressing and spinning from November, 2015 and knitting of cotton
yarn from February 2016.


SHRINE ENGINEERING: CARE Moves B Rating to Not Cooperating
----------------------------------------------------------
CARE Ratings has been seeking information from Shrine Engineering
Private Limited to monitor the ratings vide e-mail
communications/ letters dated June 1, 2017, June 20, 2017,
July 5, 2017, July 21, 2017, August 1, 2017, August 16, 2017,
August 30, 2017, October 03, 2017, October 17, 2017, December 11,
2017 and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on Shrine Engineering Private Limited' bank
facilities and instruments will now be denoted as CARE B;
Stable/CARE A4; ISSUER NOT COOPERATING.

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long term Bank     2.00       CARE B; Stable; Issuer
   Facilities                    not cooperating

   Short term Bank    3.50       CARE A4; Issuer not
   Facilities                    cooperating

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

Detailed description of the key rating drivers

At the time of last rating on April 28, 2017 the following were
the rating strengths and weaknesses.

Key Rating Weaknesses

* Modest scale of operations with modest level of cash accruals:
There was a de-growth in total operating income (TOI) by 10.09%
y-o-y to INR25.45 crore in FY16 as against INR27.95 crore in
FY15. PBILDT margin and PAT margin decreased and remained at
12.92% and 0.09% in FY16 while the gross cash accruals level
decreased by 43.42% in FY16 to INR2.45 crore.

* Moderately leveraged capital structure, moderate debt coverage
indicators and weak liquidity position: Decrease in the total
debt level, led to an improvement in the capital structure as
marked by an overall gearing ratio which stood moderately
leveraged at 1.24 times as on March 31, 2016, as against 2.18
times as on March 31, 2015, while the debt coverage indicators as
marked by total debt to GCA continued to remain moderate at 2.64
times as on March 31, 2016, as against 2.82 times as on March 31,
2015. The interest coverage ratio improved and stood comfortable
in FY16. The liquidity position stood weak as marked by high
utilization of working capital borrowings which stood full for
the past 12 months period ended August 2016.

* Presence in highly fragmented and competitive construction
industry: SEPL is present in the highly fragmented industry
marked by presence of numerous small and big players with tender-
driven nature of business which further intensifies competition.

Key Rating Strengths

* Experienced promoters with reputed clientele: The key promoter
of SEPL, Mr Piyush Modhwadia, has an experience of around 10
years in the civil construction industry, while the clientele
base consists of prominent government and private sector
entities.

SEPL was initially established as a partnership firm in 2006
under the name Shrine Enterprise promoted by Mr Piyush Modhwadia
and Ms Priyanka Modhwadia. Subsequently, in 2007, it was
converted into a private limited company. SEPL is engaged into
the civil construction, earth work and drainage construction.
SEPL also provided logistics services. SEPL was earlier also
engaged in transportation business with a fleet of 90 cars.
However, during FY13 and FY14, SEPL has sold all its cars. SEPL
is registered as a class 'AA' contractor with Road & Building
Department of Gujarat (on the scale of AA to E-2, AA being
highest) and secures all the contracts through open bidding.

During FY16, SEPL reported a total operating income (TOI) of
INR25.13 crore with a PAT of INR0.02 crore as against TOI of
INR27.95 crore with a PAT of INR0.84 crore in FY15.


VIJAY PHARMA: CARE Assigns B+ Rating to INR6cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Vijay
Pharma (VP), as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long term Bank
   Facilities            6.00      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of VP is constrained
by its small scale of operation with stagnant operating income,
thin and fluctuating profit margin, leveraged capital structure
and weak debt coverage indicators and working capital intensive
nature of operations. The rating is further constrained by its
presence in highly competitive & fragmented industry and
partnership nature of constitution of the firm.

The rating, however, derives strength from the firm's long track
record of operations, experienced partners, distributorships of
reputed suppliers with large product portfolio and diversified
customer base.

The ability of the firm to increase the scale of operation along
with improvement in profit margins, capital structure and
efficient management of working capital are the key rating
sensitivities.

Detailed description of Key rating drivers

Key rating Strengths

* Long track record of operations coupled with experienced
partners: The firm has established its presence since 1971 and
was promoted by Mr. Narendra Shah, Mr. Jitendra Shah and Mr.
Dhirendar shah who possesses more than four decade of experience
in pharmaceutical industry .His family members Mr. Rahul J. Shah,
Mr. Samit M. Shah, Mr. Jigar N. Shah, Mr. Bhavin D. Shah are also
looking after day to day operations of the firm who possesses
more than a decade of experience through their association with
the firm.

* Distributorships of reputed suppliers with large product
portfolio and diversified customer base: The firm has
distributorships for more than 20 pharmaceutical manufacturers
for around 12,000 products. The firm sells its products to
various retailers across Western Mumbai suburbs. Over the four
decade of presence in market, the promoters of the firm have
developed long-standing & established relationships with
customers and suppliers.

Key Rating Weaknesses

* Small scale of operation coupled with thin profit margins: The
scale of operations of the firm remained small with total
operating income (TOI) hovering around INR54 crore during last
three years ending FY17. The firm operates on thin operating
profit margins due to trading nature of operations. Furthermore,
the firm has incurred net loss during past two years due to
significant increase in interest cost owing to higher reliance on
external debt for its working capital requirements. VP procures
tradable goods directly from drug manufacturers and also from
super stockiest. The pricing of the pharmaceutical products is
mainly decided by the drug manufacturers and the government
authority. Hence, any adverse price movement may directly impacts
the commissions of the distributors due to limited ability to
pass on the price fluctuation.

* Leveraged capital structure and weak debt coverage indicators:
The capital structure of the firm stood leveraged on account of
y-o-y increase in debt level in the form working capital
borrowing with uneven and small net worth base. Furthermore, the
debt coverage indicators also remained weak owing to thin profit
margins.

* Working capital intensive nature of operations: VP's operations
remained working capital intensive in nature owing to funds being
blocked in debtors and inventory along with limited credit
received from pharmaceutical giants. The same has resulted in
higher utilization of working capital limits. Overall, liquidity
position of the firm remained weak indicated by below unity
current ratio.

* Presence in highly competitive & fragmented industry:
Pharmaceuticals trading industry is a highly fragmented industry
and there are large numbers of players which has led to high
competition in the industry. Also on account of its trading
nature of business along with multiple distributorships, the
entry barriers are low leading to stiff competition for the firm.
However, risk is partially mitigated as VP's has established
relations with the customers and procures directly through the
drug manufacturer and have been dealing with them same since
inception.

* Partnership nature of constitution: VP is a partnership firm;
hence the risks associated with withdrawal of partners' capital
exist. The firm is exposed to inherent risk of partners' capital
being withdrawn at time of personal contingency. Due to the
partnership nature of constitution, it has restricted access to
external borrowing where net-worth as well as credit worthiness
of the partners are the key factors affecting credit decision of
lenders.

Vijay Pharma (VP) was established in 1971 by Shah Family and
presently managed by Mr. Narendra N. Shah, Mr. Rahul J.
Shah, Mr. Samit M. Shah, Mr. Jigar N. Shah and Mr. Bhavin D. Shah
as the active partners of the firm. The firm acts as wholesale
trader and distributor for more than 20 pharmaceutical
manufacturers and suppliers with around 12,000 products to
various retailers across Western Mumbai suburbs.


VINOD KUMAR: CARE Assigns B- Rating to INR20cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Vinod
Kumar Piyush Kumar (VKPK), as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank
   Facilities           20.00      CARE B-; Stable Assigned

Detailed Rationale & Key rating Drivers

The ratings assigned to the bank facilities of VKPK are primarily
constrained on account of its fluctuating Total Operating Income
and profitability margins with financial risk profile marked by
weak solvency position and working capital intensive nature of
operations. The ratings are, further, constrained on account of
seasonality associated with agro commodities, its presence in
highly fragmented and government regulated industry and its
constitution as a proprietorship firm.

The ratings, however, favorably take into account the experienced
partner in the agro industry.

* Improvement in the scale of operations and profitability
margins in light of volatile raw material prices and improvement
in the liquidity position are key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

* Experienced Proprietor: Mr Bharat Kumar Shyamlal Goyal,
proprietor, is graduate by qualification, and looks after the
overall affairs of the firm having more than three decades of
experience in the industry.

Key Rating Weakness

* Fluctuating TOI and profitability margins: In FY17, TOI has
declined by 65.89% over FY16 mainly due to the impact of
demonetization. The profitability margins of the firm stood
moderate with PBILDT and PAT margin of 9.48% and 1.63%
respectively in FY17.

* Weak solvency position: The capital structure of the firm stood
highly leveraged with an overall gearing of 6.31 times as on
March 31, 2017. Further, the debt service coverage indicators of
the firm stood weak with total debt to GCA of 16.67 times and
interest coverage ratio of 1.05 times as on March 31 2017.
* Working Capital intensive nature of operations: Owing to high
creditor's period, the operating cycle stood negative at 128 days
in FY17. The current ratio and quick ratio stood moderate at 1.37
and 1.34 times as on March 31, 2017. It has utilized 20-25% of
its working capital bank borrowings in last twelve month ended
November 2017.

* Seasonality associated with agro commodities and presence in
highly fragmented and government regulated industry and
constitution as a proprietorship concern: As the firm is engaged
in the business of trading of agriculture commodities, the prices
of agriculture commodities remained fluctuating and depend on
production yield, demand of the commodities and vagaries of
weather. Constitution as a proprietorship concern with moderate
net worth base restricts its overall financial flexibility in
terms of limited access to external fund for any future expansion
plans.

Vinod Kumar Piyush Kumar (VKPK) based out of Jodhpur (Rajasthan)
was formed in 1986 as a proprietorship concern by Mr Bharat Kumar
Shyamlal Goyal. It is engaged in the trading of variety of
agriculture commodities such as Cumin Seeds, Castor, Mustard,
Guar Seeds and Guar. The firm has Head Office at Jodhpur and a
branch office located at Unjha.


VISA STEEL: SBI Moves NCLT to Start Insolvency Proceedings
----------------------------------------------------------
Livemint reports that State Bank of India (SBI) on Jan. 5 moved
the Kolkata bench of the National Company Law Tribunal (NCLT),
seeking to recover its dues from Visa Steel Ltd by invoking
provisions of the Insolvency and Bankruptcy Code.

The report notes that the steelmaker is on the Reserve Bank of
India's second list of enterprises against whom it asked lenders
to immediately start insolvency proceedings.

Visa Steel owes its lenders around INR4,500 crore, according to
Poonam Keswani, a lawyer at India Law Llp, which is representing
SBI, Livemint discloses.

Livemint says insolvency proceedings have also been initiated at
the Kolkata bench of NCLT against three corporate guarantors of
Visa Steel, she added.

VISA Steel Limited is an India-based mineral, metal and energy
company. The Company is engaged in the manufacturing of iron and
steel products, including pig iron, sponge iron, special steel
and high carbon ferro chrome with captive power plant at
Kalinganagar, Odisha. The Company's segments include Special
Steel and Ferro Chrome. The Special Steel segment includes bar
and wire rods, billets and blooms, pig iron and sponge iron, and
other allied products. The Ferro Chrome segment includes Ferro
Chrome and captive power. The Company's products include special
steel-long products, Ferro Chrome and Coke. Its Ferro Chrome is
used for manufacturing of special steel and stainless steel. The
Company operates approximately six submerged arc furnaces with a
capacity of 180,000 tons per annum (TPA) high carbon Ferro
Chrome. Its coke business comprises a 400,000 TPA coke oven
plant. The Company's facilities include VISA Steel, Odisha; VISA
SunCoke, Odisha, and VISA Steel, Chhattisgarh.


VIZEBH AGRI: CARE Lowers Rating on INR11.87cr LT Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Vizebh Agri Sciences Private Limited (VASPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank       11.87       CARE D Revised from
   Facilities                       CARE B+; Stable

Detailed Rationale & Key Rating Drivers

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

Vadodara-based (Gujarat), VASPL was incorporated during July,
2010 by two promoters namely Mr. Amrish Patel and Mr. Jinesh
Patel. The company is in the business of manufacturing of dairy
products such as milk, curd, cow ghee, butter, flavoured milk,
lassi etc. and operates with an installed capacity of 100,000
litres per day for milk processing. The company sells its
products under the brand name "Vizee" in Gujarat, Punjab,
Haryana, Jammu & Kashmir, Himachal Pradesh etc.



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


GOLDEN ENERGY: Moody's Assigns B1 CFR and New Sec. Bonds Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating (CFR) to Golden Energy and Resources Ltd (GEAR).

At the same time, Moody's has assigned a B1 rating to the
proposed senior secured bond issued by GEAR.

The outlook on all ratings is stable.

The bond proceeds will be used to refinance existing corporate
debt at GEAR, acquisitions for growth and general corporate
purposes.

This is the first time that Moody's has assigned a rating to
GEAR.

RATINGS RATIONALE

"GEAR's B1 CFR is supported by its 67% controlling interest in PT
Golden Energy Mines Tbk (GEMS), GEMS' long reserve life and low
cost position and strong liquidity profile of both GEAR and GEMS"
says Saranga Ranasinghe, a Moody's Assistant Vice President and
Analyst.

GEAR is also engaged in the forestry business, and owns forestry
concessions. However, the company generates all of its earnings
from its coal mining operations, through its ownership stake in
GEMS.

GEMS benefits from its integrated operations and growing
production profile that will position it amongst the top coal
producers in Indonesia.

"The rating also takes into consideration GEMS' moderate
financial profile, supported by its prudent capital management
and performance during the recent downturn in coal prices," adds
Ranasinghe.

However, the rating is constrained by the execution risk
associated with the capacity expansion at GEMS, which will see
production tripling by 2021 compared to production levels in
2017. GEMS also demonstrates high concentration risk to a single
commodity as well as a single mine, given that more than 85% of
planned production will come from a single mining concession in
Kalimantan, Indonesia.

$200 million of the proposed $300 million bond proceeds are
earmarked for acquisitions for growth. The ratings are also
constrained by the untested acquisition strategy.

GEAR is structurally subordinated to the creditors and cash flow
at GEMS. Accordingly, debt service at GEAR will be dependent on
dividends from GEMS. GEMS' dividends will be subject to payments
to minority shareholders and dividend distribution tax. As a
result, GEAR receives only around 60% of dividends declared by
GEMS.

Following the proposed bond issuance, under Moody's price
expectations for Newcastle thermal coal to average around $68 per
ton, Moody's expects that GEAR's interest cover from the
dividends received from GEMS will be in the range of 1.2x-1.3x.
This interest cover does not factor in the potential upside from
possible acquisitions that will be carried out with the bond
proceeds, which would improve the interest cover at GEAR.

On a fully consolidated basis, GEAR has strong financial metrics
for its rating level. Under Moody's expectations, adjusted
debt/EBITDA will be in the range of 2.5x-3.0x over the next 12-18
months.

The stable outlook reflects Moody's expectation that the group
will execute its growth strategy as planned, while maintaining
prudent operating and financial policies.

Upward ratings pressure over the next two years is unlikely,
given GEAR's ownership structure, concentration risk and
acquisition appetite.

Nevertheless, upward ratings pressure could emerge over time, if
GEAR reduces its reliance on the cyclical coal industry and
improves debt serviceability at GEAR, such that its interest
cover from dividend receipts exceeds 3.0x on a sustained basis.

On the other hand, downward pressure on the ratings could emerge
as a result of: (1) a failure to carry out organic growth plans;
or (2) the use of bond proceeds for acquisitions or corporate
actions that deviate from stated long-term strategic inorganic
growth objectives; or (3) weakening of industry fundamentals
and/or higher use of cash at GEMS (including higher than expected
capex spending and/or acquisitions) that would reduce cash flows
available for divided payments; or (4) any evidence of an
increase in related-party transactions.

Specific indicators that Moody's would look for in downgrading
the ratings include interest cover at GEAR on a standalone basis
falling below 1.5x - excluding the interest reserve account -
and/or consolidated adjusted debt/EBITDA remaining above 3.5x.

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Golden Energy and Resources Ltd, through its 67%-ownership of PT
Golden Energy Mines Tbk, is an Indonesian thermal coal producer
with coal mines located in Kalimantan and Sumatra. Total
production in 2017 will likely reach around 15mt.

The company is listed on the Singapore stock exchange.



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


TOSHIBA CORP: S&P Raises CCR to 'CCC+'; On CreditWatch Positive
---------------------------------------------------------------
S&P Global Ratings said it has raised two notches to 'CCC+' from
'CCC-' both its long-term corporate credit and senior unsecured
debt ratings on Japan-based capital goods and diversified
electronics company Toshiba Corp. S&P said, "We also placed the
ratings on CreditWatch with positive implications. We have kept
our 'C' short-term corporate credit and commercial paper program
ratings on Toshiba on CreditWatch with positive implications."

The upgrades follow Toshiba's announcement on Jan. 18, 2018, of
an agreement to sell its assets related to U.S.-based
Westinghouse Electric Co. LLC. Toshiba has made substantial
progress toward improving its financial standing. S&P said, "We
believe the boost to capital from the issuance of JPY600 billion
in new shares via a third-party allotment in December 2017 and
from its latest deals to add about JPY410 billion to its capital
has heightened the likelihood that Toshiba will erase its
negative net worth as of the end of fiscal 2017 (ending March 31,
2018). Therefore, we believe the likelihood of debt
restructuring, including a debt-for-equity swap, in the near term
has decreased significantly."

S&P said, "On Nov. 21, 2017, we placed our long- and short-term
corporate credit ratings, senior unsecured debt rating, and
commercial paper program rating on Toshiba on CreditWatch with
positive implications to reflect our view that the company's
decision to carry out the third-party allotment heightened the
likelihood that it would avoid negative net worth as of the end
of fiscal 2017 and substantially improve its financial health.

"Toshiba is progressing completion of its sale of Toshiba Memory
Corp. for about JPY2 trillion. We believe Toshiba's settlement of
a dispute with Western Digital Corp. has paved the way for the
company to execute the deal. Toshiba has recently shown steady
operating performance and has made great strides toward improving
its financial position. Therefore, we see a heightened likelihood
of its key lender banks maintaining their support of Toshiba's
liquidity. We believe Toshiba no longer faces circumstances in
which debt restructuring appears inevitable within six months in
the absence of unanticipated significantly favorable changes in
its circumstances.

"In resolving the CreditWatch placements, we will reassess
prospects for Toshiba's financial recovery, competitive
advantage, and overall profitability following the sale of
Toshiba Memory. While we assume key lender banks' support of
Toshiba's liquidity will remain strong, we will monitor its bank
relationships for any shift in the banks' stance. In addition, we
will examine new shareholders' investment strategies and exit
plans."

  RATINGS LIST
  Upgraded; CreditWatch Action
                             To                 From
  Toshiba Corp.
   Corporate Credit Rating   CCC+/Watch Pos/C   CCC-/Watch Pos/C

  Toshiba Corp.
   Senior Unsecured          CCC+/Watch Pos     CCC-/Watch Pos

  CreditWatch
  Toshiba Corp.
  Commercial Paper           C/Watch Pos        C/Watch Pos



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


TH HEAVY: Downplays Suit's Ability to Botch FPSO Job Transfer
-------------------------------------------------------------
TH Heavy Engineering Bhd (THHE) on Jan. 23 downplayed the ability
of a court action by Globalmariner Offshore Services Sdn Bhd
(GMOS') to botch its transfer of a floating, production storage
and offloading (FPSO) job to Yinson Energy Sdn Bhd.

According to the report, THHE CEO Suhaimi Badrul Jamil said in a
statement that the stay of the Proposed JX Nippon Contract
Novation applied by GMOS before the Court of Appeal was allowed
to preserve the status quo and only an interim relief pending the
disposal of GMOS' appeals which had been directed by the Court of
Appeal, to be disposed of by next month, February.

THHE reiterated that the Layang Development FPSO job transfer is
in the final stages of negotiations, the report says.

"THHE had taken some time to finalise the Proposed JX Nippon
Contract Novation, the main reason being the time taken for the
formulation of a Scheme of Arrangement (SoA) that is acceptable
to THHE's creditors and key stakeholders, not to mention the time
required to meet the regulatory aspects of a listed company," the
report quotes Suhaimi as saying.

He added that the time it took for its SoA has led to an
acceptance rate in excess of that required by the Companies Act
2016, the report relays.

"Under the Main Market Listing Requirements of Bursa Securities,
we are required to issue a proper and comprehensive circular to
the shareholders. We are finalising the circular for Bursa's
approval and once the approval is obtained we will issue the same
to the shareholders for purposes of the forthcoming EGM," Suhaimi
said, adding that its regularization plan is being finalized, Sun
Daily relays.


                         About TH Heavy

TH Heavy Engineering Berhad is an investment holding company. The
Company is engaged in the provision of management services. The
Company is engaged in the fabrication of offshore steel
structures and the provision of other related offshore oil and
gas engineering services in Malaysia. The Company operates
through three segments: Construction services, Offshore crane
works and Others. The Construction services segment includes
engineering, procurement, construction, installation and
commissioning (EPCIC) capabilities. Its EPCIC activities include
fabrication, construction and maintenance of offshore structures;
construction and maintenance of onshore plants; offshore and
onshore crane manufacturing and servicing; marine operations and
support services; hook-up and commissioning (HUC), and engineered
packages. The Others segment includes management services and
transportation services. Its subsidiary, O&G Works Sdn. Bhd.,
produces a range of marine and offshore pedestal cranes.

TH Heavy slipped into Practice Note 17 (PN17) status in April
2017 after the company's independent auditors expressed a
disclaimer opinion on its accounts for the financial year ended
Dec. 31, 2016.



===============
M O N G O L I A
===============


CAPITAL BANK: Moody's Affirms Caa1 LT LC Deposit Rating
-------------------------------------------------------
Moody's Investors Service has upgraded the long-term local
currency deposit ratings of Bogd Bank LLC, Khan Bank LLC, State
Bank LLC and XacBank LLC to B3 with a stable outlook from Caa1.

At the same time, Moody's has upgraded Development Bank of
Mongolia LLC's (DBM) long-term foreign currency issuer rating to
B3 with a stable outlook from Caa1.

Moody's has also placed under review for upgrade the Caa1 long-
term local currency deposit ratings of Golomt Bank LLC and Trade
and Development Bank of Mongolia LLC.

Moody's has affirmed Capital Bank LLC's long-term local currency
deposit rating at Caa1 and revised the outlook to positive from
stable.

The rating actions follow Moody's upgrade of Mongolia's sovereign
rating on January 18, 2018.

Moody's has changed Mongolia's Macro Profile to "Weak-" from
"Very Weak +". The higher Macro Profile was driven by Moody's
raising of Mongolia's "institutional strength" score to "Low"
from "Low-" and "susceptibility to event risk" score to "High-"
from "High+".

https://www.moodys.com/research/Moodys-upgrades-Mongolias-rating-
to-B3-outlook-stable--PR_377740

RATINGS RATIONALE

CHANGE IN MACRO PROFILE REFLECTS IMPROVING MACRO ENVIRONMENT IN
MONGOLIA

The change of Mongolia's Macro Profile to "Weak-" from "Very
Weak+" reflects structural improvements in the macro environment
as a result of reforms prompted by the ongoing International
Monetary Fund (IMF) program, in particular strengthened
institutions and reduced susceptibility to event risk.

The higher institutional strength assessment of "Low" from "Low-"
reflects ongoing reforms under the structural benchmarks of the
IMF program centered around improving budgetary processes,
strengthening the banking system and enhancing the capabilities
of the central bank.

Moody's has changed its assessment of susceptibility to event
risk to "High-" from "High+", reflecting improvements in foreign
direct investment inflows, narrower current account and fiscal
deficits and successful refinancing of upcoming debt obligations.

The change of Mongolia's Macro Profile positively affects the
rated Mongolian banks' baseline credit assessments (BCAs), and as
a result their long-term deposit ratings and Counterparty Risk
Assessments (CRAs). The Macro Profile constitutes an assessment
of the macroeconomic environment in which a bank operates.

BANK SPECIFIC CONSIDERATIONS

The rating action on the eight banks' ratings reflects Moody's
view of the high correlation between the creditworthiness of the
Mongolian banking system and that of the sovereign, given (1) the
concentration of their operations in Mongolia; and (2) their
significant direct and indirect exposures to domestic sovereign
debt relative to their capital bases.

Moody's has upgraded the BCAs of Bogd Bank, Khan Bank, State Bank
and XacBank to b3 from caa1, in line with the sovereign rating
upgrade to B3 from Caa1. The upgrade reflects Moody's expectation
that the asset quality review will have limited impact on these
banks, as well as Moody's view of recovering economic conditions
and ongoing structural reforms.

Moody's has placed the local currency deposit rating, long-term
counterparty risk assessment, BCA and adjusted BCA of Golomt Bank
and the local currency long-term deposit rating, local currency
and foreign currency long-term issuer ratings, long-term
counterparty risk assessment, BCA and adjusted BCA of Trade and
Development Bank of Mongolia under review for upgrade. Moody's
review will focus on the impact of the asset quality review and
determine if the banks' recapitalization plans, if any, are
sufficient to merit an upgrade in their BCAs, which are currently
at caa1.

Moody's has changed Capital Bank's outlook to positive(m) from
stable to reflect the potential for a higher BCA if it
successfully executes an already agreed investment from an
international private equity fund. The bank's BCA is currently
positioned at caa1.

The rating action on DBM was driven by its strong linkages with
the government through the government's direct ownership and its
clear public policy mandate. DBM also benefits from certain forms
of explicit government support through the DBM Law. Consequently,
its ratings are closely linked to the sovereign rating, and
Moody's expects the government to support the bank, if needed.
The upgrade of DBM's BCA to caa1 from caa2 reflects its very
strong capital after a capital injection by the government and
Moody's view of improved underwriting standards after the
revision of the DBM Law to restrict lending to commercial
projects only.

The differentiated ratings among the Mongolian banks reflects
Moody's view of the varying impact of the asset quality review on
the banks. Moody's expects banks with a higher portion of
corporate loans will be at risk of a larger recapitalization
requirement, given the higher risk of different collateral
valuations between international and domestic standards.

The upgrade of Mongolia's sovereign rating to B3 from Caa1
reflects (1) abating liquidity pressure; and (2) the
implementation of wide-ranging policy reforms targeted at
improving economic fundamentals.

Towards the end of last year, Mongolia refinanced debt maturities
that were due in early 2018. The refinancing has eased immediate
government liquidity pressure until 2021, when the next external
maturities are due. The refinancing has also significantly
mitigated external risks arising from a thin foreign reserve
position relative to the government's maturing debt obligations.

Higher economic growth has allowed the government to implement
reforms aimed at (1) increasing accountability and restraint over
budgetary spending; (2) strengthening fiscal health through
improvements in tax collections and reducing pro-cyclical
spending by tightening the budgetary process; (3) strengthening
the banking system; and (4) enhancing the independence and
effectiveness of monetary policy.

WHAT COULD CHANGE THE RATINGS UP

The BCAs of Bogd Bank, Khan Bank, State Bank and XacBank are at
the same level as the sovereign rating, and as such a positive
rating action is unlikely in the absence of upward pressure on
the Mongolia's sovereign rating.

DBM's long-term rating incorporates a one-notch uplift from its
BCA and is at the same level as the sovereign rating. As such, a
positive rating action is unlikely in the absence of upward
pressure on the sovereign rating. Nevertheless, Moody's will
consider raising DBM's BCA if the bank demonstrates
capitalization and liquidity levels consistent with a BCA of b3
upon the completion of the asset quality review.

For Golomt Bank and Trade and Development Bank of Mongolia,
Moody's will consider upgrading their BCAs and long-term ratings
if asset risk, capitalization and liquidity levels improve to
levels consistent with a BCA of b3 upon the completion of the
AQR.

Moody's will upgrade Capital Bank's BCA and long-term ratings if
the asset quality review and additional funding from an
international fund result in asset quality and capitalization
levels consistent with a BCA of b3.

WHAT COULD CHANGE THE RATINGS DOWN

For Bogd Bank, Khan Bank, State Bank and XacBank, factors that
could result in a downgrade include (1) a downgrade of Mongolia's
sovereign rating; or (2) a downgrade of the banks' BCAs. The
banks' BCAs could be downgraded if: (1) asset quality
deteriorates significantly, for example, with problem loans/gross
loans exceeding 9.0% for a sustained period; (2) tangible common
equity falls below 8%; or (3) profitability deteriorates
significantly, leading to annual net losses on a sustained basis.

For DBM, factors that could lead to a downgrade include (1) a
downgrade of Mongolia's sovereign rating; or (2) a weakening in
the strategic importance to the government, as a result of which
Moody's changes its assessment of government support.

The ratings of Golomt Bank and Trade and Development bank of
Mongolia may be confirmed at Caa1 with a stable outlook if their
asset quality or capital strength deteriorates significantly
after the completion of the AQR, without sufficient measures to
recapitalize a shortfall in capital, if required.

The outlook on Capital Bank's long-term ratings could be changed
to stable from positive if the bank is unable to secure
additional capital to improve its capitalization.

The principal methodology used in these ratings was Banks
published in September 2017.

All entities are headquartered in Ulaanbaatar. The banks reported
the following assets as of December 31, 2016:

Bogd Bank LLC: MNT61.5 billion (USD24.7 million)

Development Bank of Mongolia LLC: MNT4.84 trillion (USD1.95
billion)

Golomt Bank LLC: MNT4.66 trillion (USD1.87 billion)

Khan Bank LLC: MNT6.48 trillion (USD2.60 billion)

State Bank LLC: MNT2.09 trillion (USD840.7 million)

Trade and Development Bank of Mongolia LLC: MNT6.65 trillion
(USD2.67 billion)

XacBank LLC: MNT2.26 trillion (USD907.3 million)

Capital Bank LLC had assets of MNT745.6 billion (USD374.1
million) as of December 31, 2015

Issuer: Bogd Bank LLC (Lead Analyst: Tae Jong Ok)

- Baseline Credit Assessment (BCA) upgraded to b3 from caa1

- Adjusted BCA upgraded to b3 from caa1

- Long-term Counterparty Risk Assessment upgraded to B2(cr) from
   B3(cr)

- Short-term Counterparty Risk Assessment affirmed at NP(cr)

- Local Currency (LC) Long-term Deposit Rating upgraded to B3
   from Caa1, outlook is stable

- Foreign Currency (FC) Long-term Deposit Rating upgraded to
   Caa1 from Caa2, outlook is stable

- LC/FC Short-term Deposit Rating affirmed at NP

- Outlook maintained at stable

Issuer: Capital Bank LLC (Lead Analyst: Tae Jong Ok)

- BCA of caa1 affirmed

- Adjusted BCA of caa1 affirmed

- Long-term Counterparty Risk Assessment affirmed at B3(cr)

- Short-term Counterparty Risk Assessment affirmed at NP(cr)

- LC Long-term Deposit Rating of Caa1 affirmed, outlook changed
   to positive from stable

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook maintained at stable

- LC/FC Short-term Deposit Rating affirmed at NP

- Outlook changed to positive(m) from stable

Issuer: Development Bank of Mongolia LLC (Lead Analyst: Tae Jong
Ok)

- Foreign currency long-term Issuer Rating upgraded to B3 from
   Caa1, outlook is stable

- Long-term Counterparty Risk Assessment upgraded to B2(cr) from
   B3(cr)

- Short-term Counterparty Risk Assessment affirmed at NP(cr)

- BCA and adjusted BCA upgraded to caa1 from caa2

- Outlook maintained at stable

Issuer: Golomt Bank LLC (Lead Analyst: Sophia Lee)

- BCA of caa1 under review for upgrade

- Adjusted BCA of caa1 under review for upgrade

- Long-term Counterparty Risk Assessment of B3(cr) under review
   for upgrade

- Short-term Counterparty Risk Assessment of NP(cr) affirmed

- LC Long-term Deposit Rating of Caa1 under review for upgrade

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook maintained at stable

- Outlook changed to rating under review for upgrade from stable

Issuer: Khan Bank LLC (Lead Analyst: Sophia Lee)

- BCA upgraded to b3 from caa1

- Adjusted BCA upgraded to b3 from caa1

- Long-term Counterparty Risk Assessment upgraded to B2(cr) from
   B3(cr)

- Short-term Counterparty Risk Assessment, affirmed at NP(cr)

- LC Long-term Deposit Rating upgraded to B3 from Caa1, outlook
   is stable

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook is stable

- LC/FC Long-term Issuer Rating upgraded to B3 from Caa1,
   outlook is stable

- LC/FC Short-term Deposit Rating, affirmed at NP

- Outlook maintained at stable

Issuer: State Bank LLC (Lead Analyst: Tae Jong Ok)

- BCA upgraded to b3 from caa1

- Adjusted BCA upgraded to b3 from caa1

- Long-term Counterparty Risk Assessment upgraded to B2(cr) from
   B3(cr)

- Short-term Counterparty Risk Assessment, affirmed at NP(cr)

- LC Long-term Deposit Rating upgraded to B3 from Caa1, outlook
   is stable

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook is stable

- Outlook maintained at stable

Issuer: Trade and Development Bank of Mongolia LLC (Lead Analyst:
Sophia Lee)

- BCA of caa1 under review for upgrade

- Adjusted BCA of caa1 under review for upgrade

- Long-term Counterparty Risk Assessment of B3(cr) under review
   for upgrade

- Short-term Counterparty Risk Assessment affirmed at NP(cr)

- LC Long-term Deposit Rating of Caa1 under review for upgrade

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook maintained at stable

- LC/FC Short-term Deposit Rating, affirmed at NP

- LC/FC Long-term Issuer Rating of Caa1 under review for upgrade

- LC/FC Short-term Issuer Rating, affirmed at NP

- Backed FC Senior Unsecured of Caa1 under review for upgrade

- FC Senior Unsecured MTN of (P)Caa1 under review for upgrade

- Outlook changed to rating under review for upgrade from stable

Issuer: XacBank LLC (Lead Analyst: Sophia Lee)

- BCA upgraded to b3 from caa1

- Adjusted BCA upgraded to b3 from caa1

- Long-term Counterparty Risk Assessment upgraded to B2(cr) from
   B3(cr)

- Short-term Counterparty Risk Assessment affirmed at NP(cr)

- LC Long-term Deposit Rating upgraded to B3 from Caa1, outlook
   is stable

- FC Long-term Deposit Rating upgraded to Caa1 from Caa2,
   outlook  is stable

- LC/FC Long-term Issuer Rating upgraded to B3 from Caa1,
   outlook  is stable

- FC senior unsecured MTN upgraded to (P)B3 from (P)Caa1

- LC/FC Short-term Deposit Rating, affirmed at NP

- LC/FC Short-term Issuer Rating, affirmed at NP

- FC Other Short-term Program, affirmed at (P)NP

- Outlook maintained at stable



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


JUKEN NEW ZEALAND: To Refocus Production to Address Demand Drop
---------------------------------------------------------------
Juken New Zealand has started consulting employees at its
Gisborne wood-processing mill about potential changes to the
products made there in order to return the plant to profitability
and secure its long-term future.

The Juken mill at Matawhero opened in 1994 and employs around 200
full time employees.  The mill processes Radiata Pine from the
company's East Coast forests to produce a range of solid wood and
engineered wood products like Plywood, LVL (Laminated Veneer
Lumber) and SLVL (veneer), mainly for the Japanese housing
market.

At the same time, the company is also making changes to what it
makes at its Wairarapa mill, increasing production of its 'J-
frame' framing for the New Zealand housing and construction
market and decreasing the specialist products made for the
Japanese building market.  These changes won't result in job
losses for any of Juken's 222 permanent staff in Wairarapa.

General Manager of Juken, Dave Hilliard and other senior staff
have been meeting local workers to discuss the proposed changes
and the reasons for them.  He says there's been a significant
drop in demand from Juken's main export market in Japan for
Plywood and structural LVL building products in the past few
years, which has seen these parts of Juken's New Zealand
processing business operating at a loss.

"The Japanese housing market has been in decline and future
demand for these products is not expected to improve because of
the ageing population in Japan."

Mr. Hilliard said the company's Plywood is also increasingly
unable to compete in the domestic and international markets
against product out of large-scale wood processing plants from
the likes of China and South America.

"All of our people have worked hard over the last five years to
stay competitive, including increasing our New Zealand and
Australian sales to reduce our reliance on the Japanese market,
invested in a form-ply plant, reduced costs and hours of
operation."

Mr. Hilliard said despite these efforts, the mills current
Plywood and LVL production capability and product mix doesn't
match the volume and price required by customers - which has led
to increasing losses from Ply and LVL production.

"Significant investment would be required to increase to a scale
to compete internationally. At this time, there's just not the
log or manufacturing volume of appropriate quality and price to
justify that investment."

The proposals presented to staff on Jan. 23 would see the mills
return to profitability to keep high-value wood processing jobs
and investment in Gisborne and Wairarapa by refocusing on value-
add products where there's strong customer demand and Juken has a
competitive advantage, including its premium sawn clearwood
products.

"One of Juken's advantages is that we process timber from our own
forests on the East Coast and the Wairarapa.  We're one of the
few forestry companies in New Zealand who grow and process our
own timber".

In Gisborne, we've invested to move from unpruned logs suited to
Plywood and SLVL (veneer) products to a greater proportion of
pruned logs suited to higher value clearwood products used for
high-end residential and commercial interior cabinetry,
furniture, solid doors and feature walls."

"We've also increased our investment in kilns for the Gisborne
and Wairarapa mills so we can increase production from the
sawline producing these clearwood products."

"We're refocusing on producing high-quality solid wood products
from both mills."

"The solid wood saw milling and finishing lines in Gisborne would
remain with increased investment over time to allow the mill to
process all of Juken's unique pruned logs from its forests."

"This investment will likely initially be in log handling and
sawmilling, but could expand to include production processes that
use the sawmilled lumber products."

He said if the decision is made to go ahead with the changes in
Gisborne the mill would stop producing Plywood and LVL products
and reduce the manufacture of SLVL (veneer). Around 100 full time
positions would remain at the Mill.

"We are consulting with staff and will be working closely with
them as we work through this proposal".

"The proposed changes in Gisborne, if implemented, will be
difficult for our people, particularly as they come in the New
Year.  We'll be working with Government agencies and Gisborne
iwi, civic, community and business leaders, over alternative
employment opportunities for our people should the changes go
ahead," said Dave Hilliard.

Mr. Hilliard said the proposed changes would have no impact on
Juken's forestry operations.

"We are committed to the future of the forest and wood processing
industry and to developing our high-value timber processing and
innovation business".

"But, as an exporting manufacturer we have to ensure that our
wood processing business is focussed on producing the right high
value products to meet changing customer demand".

The company advised staff that the consultation period in
Gisborne would run for two weeks. After that it would consider
feedback on the proposed changes before making any final
decisions on the future structure and output of that mill.


PRECIOUS 1400: Wellington's Habitual Fix Liquidated Again
---------------------------------------------------------
Sophie Boot at BusinessDesk reports that a second business
operating Wellington's Habitual Fix on Featherston Street has
been placed into liquidation in the space of a year, with the
Beehive end of town still impacted by the November 2016
earthquakes.

Precious 1400 Ltd operated Habitual Fix, which sells salads,
sandwiches, wraps, smoothies and juices, for a year until it was
placed into liquidation on Jan. 17, BusinessDesk relates. The
previous operator, Sizzlepop Ltd, went into liquidation in
December 2016.

According to BusinessDesk, the first report on Precious 1400's
liquidation by ShephardDunphy said the company expected sales to
increase when businesses returned to their premises, but with
many firms relocating due to building closures, "the expected
increase did not occur and the viability of the company was at
risk."

BusinessDesk relates that the previous liquidation cited the
sales downturn immediately following the earthquakes when the 15-
storey Asteron Centre which houses around 2,500 staff was
evacuated for a fortnight. More recently, demolition on five-
story Statistics House began late last year, with the building
having been unusable for over a year following the earthquakes.
CentrePort, which owns Stats House, is still working on a
decision about whether the nearby BNZ Harbour Quays office
building, which is three times the size of Stats House, is
economic to repair.

Financial information supplied by Precious 1400 says its food
retailing assets have a book value of NZ$25,000, but their
estimated value is unknown, BusinessDesk says. The company said
it owes an estimated NZ$32,904 to AW Finance, who are secured
creditors, NZ$14,000 to Inland Revenue as preferential creditors
and an unknown amount to IRD as unsecured creditors, and
NZ$48,868 to its trade creditors, who are also unsecured.

Those creditors include popular Wellington bakeries Alamir and
Arobake, Best Ugly Bagels, fruit and vegetable supplier Fresh
Connection, juice company Mela, PS Foods and Randwick Meats,
along with biodegradable packaging manufacturer Ecoware, says the
report.

Habitual Fix is franchised by the Mad Group which also franchises
the Mad Mex chain, and Mad Group is listed on the schedule of
creditors owed. The Habitual chain has two other stores in
Wellington.



                             *********

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

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

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


                            *********


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

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

Copyright 2018.  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.



                 *** End of Transmission ***