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        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, March 28, 2018, Vol. 21, No. 062

                            Headlines


A U S T R A L I A

ACQUIRE LEARNING: Second Creditors' Meeting Set for April 5
CHINATEX (AUSTRALIA): First Creditors' Meeting Set for April 9
COOMBOONA DAIRIES: First Creditors' Meeting Set for April 6
DFB TRADING: First Creditors' Meeting Set for April 6
GOULBURN VALLEY: First Creditors' Meeting Set for April 6

MYER PTY: Rules Out Using Voluntary Administration to Exit Leases
WALNUT GROUP: Second Creditors' Meeting Set for April 6


C H I N A

AGILE GROUP: S&P Raises CCR to 'BB' on Margin Expansion
CEFC CHINA: Plans to Put All Properties on Block
COUNTRY GARDEN: S&P Raises CCR to 'BB+', Outlook Stable
TIMES CHINA: Fitch Raises Long-Term IDR to BB-; Outlook Stable
XINHU ZHONGBAO: Fitch Affirms B Long-Term IDR; Outlook Stable


I N D I A

ATHULITHA LABORATORIES: Ind-Ra Raises LT Issuer Rating to B-
AZURE HOSPITALITY: Ind-Ra Withdraws 'B-' Long Term Issuer Rating
BAFNA PHARMACEUTICALS: CRISIL Reaffirms D Rating on INR25MM Loan
K. MANOHARAN: CRISIL Reaffirms B+ Rating on INR3.25MM Cash Loan
KISAN PROTEINS: Ind-Ra Migrates BB- LT Rating to Non-Cooperating

MEENAKSHI FISHING: CRISIL Moves D Rating to Not Cooperating Cat.
METAFIL: CRISIL Assigns B+ Rating to INR2.25MM Long Term Loan
MM DETERGENTS: Ind-Ra Assigns 'BB' LT Rating to INR450MM Limits
MUNDRA AGRO: CRISIL Raises Rating on INR10.50MM Term Loan to B+
NIK-SAN ENGINEERING: Ind-Ra Assigns BB- LT Rating, Outlook Stable

P. VENKATESWARA: CRISIL Hikes Rating on INR6.5MM Bank Loan From D
PATEL MOTORS: Ind-Ra Raises Long Term Issuer Rating to BB+
PINAKEE ENGINEERS: Ind-Ra Affirms B+ Rating on INR90MM Limits
POGGENAMP NAGARSHETH: Ind-Ra Gives BB+ Rating to INR200MM Limits
POSCO POGGENAMP: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable

RRR CONSTRUCTIONS: Ind-Ra Assigns 'BB' Issuer Rating
RUDRA NAVNIRMAN: CRISIL Moves B+ Rating to Not Cooperating Cat.
SAPPHIRE INDIA: CRISIL Assigns 'B' Rating to INR7MM Term Loan
SMLASH ISPAT: CRISIL Assigns B- Rating to INR9MM Cash Loan
TIRUPATI STRUCTURES: Ind-Ra Moves BB- Rating to Non-Cooperating

TOUCH TONE: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
VASHUDEV TRADING: Ind-Ra Migrates B+ LT Rating to Non-Cooperating
VENKATADRI SPINNING: CRISIL Lowers Rating on INR8.82MM Loan to D
WALBRIDGE FABRICATIONS: CRISIL Assigns B+ Rating to INR4.14M Loan


P A P U A  N E W  G U I N E A

PAPUA NEW GUINEA: Moody's Alters Outlook on Issuer Rating to Neg.


P H I L I P P I N E S

EMPIRE RURAL: Creditors Have Until May 7 to File Claims
RURAL BANK OF LORETO: Creditors' Claim Deadline Set for April 24


S I N G A P O R E

TREK 2000: Auditors Flag Disclaimer of Opinion


S O U T H  K O R E A

KUMHO TIRE: Tirebank to Join Bid to Acquire Tiremaker


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


ACQUIRE LEARNING: Second Creditors' Meeting Set for April 5
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Acquire
Learning & Careers Pty Ltd has been set for April 5, 2018, at
11:00 a.m. at the offices of Institute of Chartered Accountants,
Level 18, 600 Bourke Street, in Melbourne, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 4, 2018, at 5:00 p.m.

Bruno Secatore & Sam Kaso of Cor Cordis Chartered Accountants were
appointed as administrators of Acquire Learning on May 17, 2017.


CHINATEX (AUSTRALIA): First Creditors' Meeting Set for April 9
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Chinatex
(Australia) Pty Limited will be held at the offices of Grant
Thornton Australia Limited, Level 17, 383 Kent Street, in Sydney,
NSW, on April 9, 2018, at 2:00 p.m.

Said Jahani and Philip Campbell-Wlison of Grant Thornton were
appointed as administrators of Chinatex (Australia) on March 26,
2018.


COOMBOONA DAIRIES: First Creditors' Meeting Set for April 6
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Coomboona
Dairies Pty Ltd will be held at Level 43, 600 Bourke Street, in
Melbourne, Victoria, on April 6, 2018, at 10:00 a.m.

Stewart Alexander McCallum and Ryan Reginald Eagle of Ferrier
Hodgson were appointed as administrators of Coomboona Dairies on
March 23, 2018.


DFB TRADING: First Creditors' Meeting Set for April 6
-----------------------------------------------------
A first meeting of the creditors in the proceedings of DFB Trading
Pty Limited, trading as Darby's Fresh Bake will be held at
Business Centre, 265 King Street, in Newcastle, New South Wales,
on April 6, 2018, at 11:00 a.m.

Bradd William Morelli and Trent Andrew Devine of Jirsch Sutherland
were appointed as administrators of DFB Trading on March 26, 2018.


GOULBURN VALLEY: First Creditors' Meeting Set for April 6
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Goulburn
Valley Genetics Pty Ltd will be held at Level 43, 600 Bourke
Street, in Melbourne, Victoria, on April 6, 2018, at 10:00 a.m.

Stewart Alexander McCallum and Ryan Reginald Eagle of Ferrier
Hodgson were appointed as administrators of Goulburn Valley on
March 23, 2018.


MYER PTY: Rules Out Using Voluntary Administration to Exit Leases
-----------------------------------------------------------------
The Australian Financial Review reports that Myer has ruled out
placing the beleaguered retailer into voluntary administration to
hasten the exit or renegotiation of AUD2.7 billion in leases.

While Myer has only AUD19.9 million in net debt and gearing about
3 per cent, the retailer is moving closer to breaching fixed
charges cover covenants in banking agreements after a 24 per cent
fall in earnings in the January half, AFR says.

According to the report, market sources have suggested Myer could
take a leaf out of the playbooks of retailers such as OrotonGroup
and SumoSalad and place the company into voluntary administration
to void lease agreements and buy time while it renegotiates rents
with landlords.

However, a Myer spokesman said VA was not under consideration,
while insolvency experts said VA was a "blunt instrument" and was
not the answer to Myer's woes and would create more problems than
it would solve, AFR relays.

AFR relates that Myer said it continued to be solvent, posting a
net profit of AUD40.1 million before restructuring costs and asset
impairments in the six months ended January, free cash flow of
AUD109 million, net debt of AUD19.9 million and available
liquidity of AUD400 million.

"[Executive chairman] Garry Hounsell, together with the board and
management team, are 100 per cent committed to unlocking
shareholder value," AFR quotes the spokesman as saying.  "As part
of this, they are focused on managing all costs including
occupancy [and] active discussions continue with Myer's landlords,
on a whole-portfolio basis, relating to total occupancy costs,
space productivity, lease tenure and capital investments."

According to AFR, insolvency experts said although VA appeared to
have helped SumoSalad and OrotonGroup exit or renegotiate leases,
it was inappropriate when Myer was solvent and likely to remain so
for at least the next 12 months.

"Whilst the environment for retailers is no doubt challenging, and
one of the responses to that challenge is finding ways to
restructure lease arrangements to reduce rents, using the VA
provisions with a singular view towards an isolated issue like
rent relief is not a particularly productive debate," the report
quotes Joe Hayes, managing director of independent advisory firm
Wexted Advisors and a former partner of insolvency firm McGrath
Nicol, as saying.

"The need for that type of restructuring should be a broader
question than just improving conditions by reducing rents," Mr
Hayes said. "Major retailers would be attacking the challenge on
multiple fronts, working with the wide range of business partners
both operational and financial, to try and achieve a better
outcome."

"Yes the leases are a problem and yes administration can cure that
problem," said another insolvency expert, who declined to be
named, "but it also creates a lot of other problems for the
business."

"One of the downsides of administration is it breaches all your
contracts with different people including suppliers and triggers a
lot of other constraints that are harder to deal with in the short
term than some problem leases," he said.

"I'm sure management would have a view that it's way too early to
be having that sort of conversation and they would have the view
they can turn the business around and make it work."

Myer is an upmarket Australian department store chain.


WALNUT GROUP: Second Creditors' Meeting Set for April 6
-------------------------------------------------------
A second meeting of creditors in the proceedings of The Walnut
Group Pty Ltd, trading as Jonquil Flowers, has been set for
April 6, 2018, at 10:00 a.m. at the offices of SM Solvency
Accountants, Level 8/490 Upper Edward Street, in Spring Hill,
Queensland.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by April 5, 2018, at 4:30 p.m.

Brendan Nixon of SM Solvency was appointed as administrator of The
Walnut Group on Feb. 28, 2018.



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C H I N A
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AGILE GROUP: S&P Raises CCR to 'BB' on Margin Expansion
-------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating on
Agile Group Holdings Ltd. to 'BB' from 'BB-'. The outlook is
stable.

S&P said, "At the same time, we raised our long-term issue rating
on Agile's outstanding senior unsecured notes to 'BB' from 'BB-'.
Agile is a China-based property developer.

"We raised the rating on Agile because we expect the company to
maintain its improved leverage (ratio of debt to EBITDA) over the
next two years, given its significant margin expansion. Agile's
leverage fell in 2017 and we expect it to stay less than 4x over
the next two years.

"Agile's margin expansion in 2017 was more significant than we
expected, with gross margin rising to 40.1% from 26.5% in 2016.
This was primarily due to the company's low land cost in its key
markets. Agile's sales in these markets were robust, and the
average sale price (ASP) rose materially, particularly in Hainan
Clearwater Bay (recognized margin was about 60%) and Greater Bay
Area such as Zhongshan (recognized margin of more than 50%). The
company's 52.4% sales growth in 2017 was largely driven by these
markets.

"We expect Agile to maintain its high margin in 2018-2019
considering Hainan Clearwater Bay and Greater Bay Area account for
15% and 33% of the land bank, respectively. The company's average
land cost of Chinese renminbi (RMB) 2,400 per square meter as of
Dec. 31, 2017, accounts for only 20% of its ASP of RMB12,193 per
square meter in 2017."

Agile's total adjusted debt could grow by up to 40% in 2018 due to
the company's increasing land acquisitions in new cities and
sizable capital spending for non-property segments. Agile plans to
establish its presence in 19 city clusters in China by 2020 and
invest about RMB10 billion each year in non-property segments such
as water supply construction and environmental business. In 2018,
management has budgeted land purchase of around 50% of pre-sales.

S&P said, "We expect Agile's strong margin and fast revenue growth
to offset the impact of rising capital spending in property and
other segments. The company's leverage also benefits from Hong
Kong dollar (HK$) 4 billion cash inflows from the listing of its
property management business A-Living Services Co. Ltd. in
February 2018. We estimate that Agile's debt-to-EBITDA ratio will
stay at 3.7x-3.9x over the next two years, compared with 3.4x in
2017 and 4.1x in 2016."

Agile's 2018 target of increasing sales by 22.6% to RMB110 billion
looks achievable, given the company's ample saleable resources of
RMB180 billion. Agile plans to launch 41 new projects in 2018,
compared with eight in 2017 and none in 2016. Nevertheless, credit
tightening in some of the company's key markets could affect its
cash collections.

S&P said, "The stable outlook on Agile reflects our expectation
that the company will maintain steady sales growth and good
margins in 2018. We also believe that Agile will only moderately
increase its leverage because its margins and fast revenue growth
will offset the impact of rising capital spending.

"We could downgrade Agile if the company fails to maintain
financial discipline such that its debt-to-EBITDA ratio rises
materially above 4x. This could happen if its capital spending on
land or other segments is significantly more aggressive than our
base case of about RMB60 billion in 2018.

"We could raise the rating if Agile can maintain its good margin
while having prudent financial discipline, such that its debt-to-
EBTIDA ratio improves to consistently below 3x. We can also raise
the rating if the company materially expands its scale and
diversity."


CEFC CHINA: Plans to Put All Properties on Block
------------------------------------------------
Bloomberg News reports that CEFC China Energy Co., the sprawling
conglomerate that has come under increasing government scrutiny,
plans to sell its entire global property portfolio with a book
value of more than CNY20 billion (US$3.2 billion), according to
people with knowledge of the matter.

Almost 100 properties are up for sale, including its headquarters
in an upscale Shanghai neighborhood, four floors of the Hong Kong
Convention & Exhibition Centre and a condominium at the Trump
World Tower in Manhattan, as well as hotels, residential
apartments and industrial facilities, said the people, asking not
to be identified because the deliberations haven't been publicly
disclosed, Bloomberg relays. The properties, mostly located in big
Chinese cities, include a smattering of developments overseas, the
people said.

According to Bloomberg, the firm joins a group of erstwhile
acquisitive Chinese companies, including HNA Group Co. and Anbang
Insurance Group Co., that are selling holdings after coming under
scrutiny amid President Xi Jinping's crackdown on outbound deals
and excessive debt.

Bloomberg says the company rose from relative obscurity in recent
years through increasingly ambitious energy and finance deals
across Eastern Europe, the Middle East and Russia. Its troubles
started not long after its biggest catch -- an agreement in
September to buy a $9 billion stake in Russian state energy giant
Rosneft PJSC -- sparked greater curiosity about the company, as
well as its private and enigmatic chairman, Ye Jianming.

Signs have emerged recently that it's unable to repay some debts
and is seeking to sell at least one unit, Bloomberg notes. The
company's creditors, led by China Development Bank, have formed a
committee to review asset disposals, people familiar with the
matter said this week, adding that the Shanghai government has
taken control of the firm, Bloomberg relates. Ye, who started the
company in 2002, was said earlier this month to have been
investigated by authorities and will step down from management.

Bloomberg adds that the properties on the block include the
Shanghai Tomorrow Tower, where most the company's offices located,
and multiple villas and high-end apartments across China, the
people said. Overseas properties in the Czech Republic and Georgia
are also included. CEFC has pledged some properties to raise funds
equivalent to almost two-thirds of their total value.


COUNTRY GARDEN: S&P Raises CCR to 'BB+', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating on
China-based property developer Country Garden Holdings Co. Ltd. to
'BB+' from 'BB'. The outlook is stable.

S&P said, "At the same time, we raised the long-term issue rating
on the company's outstanding senior unsecured note to 'BB' from
'BB-'.

"We raised the rating on Country Garden to reflect the company's
significantly enhanced scale and market position. Its leverage has
also improved due to a recovery in margins and fast revenue
growth, which offset the pressure from its increased capital
spending.

"In our view, Country Garden has solidified its market leadership
in China, especially in lower-tier cities. The company is now
among the top three developers in the country."

Country Garden has furthered its competitive advantage through
better cost controls and a realigned employee partnership
incentive scheme. These measures have supported the company's
rapid scale expansion (contracted sales were up 78% in 2017)
during the market upturn, although the sustainability of such
measures remains to be tested.

S&P said, "We anticipate that Country Garden's sales momentum will
carry through into 2018, with total sales reaching about Chinese
renminbi (RMB) 700 billion, from RMB551 billion in 2017. The
company's abundant saleable resources, which we estimate to be
over RMB1 trillion, should support the increase in sales."

Country Garden's operating efficiency has also benefited from its
operational revamp and economies of scale, in our view. The
company's net operating cash flow has turned positive since 2016.
Its development cycle also continues to shorten due to its ongoing
standardization of construction and the operational revamp.

S&P said, "We expect Country Garden to maintain its improved
profitability over the next two years, with EBITDA margin at 22%-
24%. The company's margin recovered more than we expected in 2017,
to 21%, from 16.5% in 2016. This was largely due to China's robust
property market in lower-tier cities, where prices have increased
significantly over the past year, and the company's operational
enhancements.

"We believe Country Garden's leverage will gradually improve over
next two years. The company reduced its leverage in 2017, after a
deterioration over the past two years owing to scaling up of
operations and heavy investments."

While the company will remain active in land acquisitions
(including jointly controlled entities, Country Garden acquired
RMB479 billion of land in 2017), its improved profitability and
fast revenue growth could offset the pressure of increasing debt.
As of Dec. 31, 2017, Country Garden has more than RMB500 billion
of unrecognized sales with decent margins. S&P estimates its ratio
of debt to EBITDA will improve to 4.5x-5.0x over the next two
years, from 5.3x in 2017 and 6.4x in 2016.

S&P said, "The stable outlook reflects our expectation that
Country Garden will continue its fast revenue growth and mild
recovery in margins over next 12 months. We expect the company's
market position and operating efficiency to strengthen and
solidify with its expanded scale.

"We also anticipate that Country Garden's leverage will reduce
over the next 12 months because strong sales growth should offset
very high capital spending.

"We could downgrade Country Garden if its debt-to-EBITDA ratio
doesn't improve to below 5x on a sustained basis, or its EBITDA
interest coverage falls below 3x.

"This could happen if: (1) the company's debt-funded expansion
becomes more aggressive than we expect; or (2) its revenue growth
is below our base case of about 34% in 2018 or margin improvement
is below our expectation.

"We could upgrade Country Garden if: (1) the company's
profitability continues to strengthen, demonstrating further
improvement in operational ability with EBITDA margin materially
above our base case of about 21% on a sustained basis; and (2) it
improves its leverage through more disciplined expansion and good
revenue growth, such that its debt-to-EBITDA ratio falls
sustainably below 4x."


TIMES CHINA: Fitch Raises Long-Term IDR to BB-; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded homebuilder Times China Holdings
Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to 'BB-' from 'B+'. The Outlook is Stable. Fitch has also upgraded
the company's senior unsecured rating and the ratings of all its
outstanding bonds to 'BB-' from 'B+'.

The rating upgrade reflects the increase in the company's scale
without compromise of its financial profile. The company managed
to grow quickly within Guangdong province while keeping its
leverage below 40% and EBITDA margin around 20%. Fitch believes
that Times China's strong sales and healthy financial profile are
commensurate with those of its 'BB-' rated peers.

KEY RATING DRIVERS

Strong Sales to be Sustained: Times China targets to achieve CNY55
billion in contracted sales in 2018, following a 42% increase to
CNY41.6 billion in 2017, with an average selling price (ASP) of
CNY14,750 per square meter (sq m). Contracted sales in January-
February 2018 increased 119% yoy to CNY6 billion, driven by a 72%
increase in GFA sold and 27% increase in ASP. Times China aims to
reach CNY100 billion in annual sales in the medium term, driving
Fitch expectation that Times China's sales will continue to grow
rapidly over the next three years.

Rising Contribution from Joint Ventures: Times China is
increasingly using JV structures to boost its scale. Fitch
estimates that Times China's attributable sales fell to below 80%
of total reported sales in 2017 and the ratio is likely to remain
at 75%-80%. Fitch will consider proportionate consolidation of
Times China's JVs and associates if the attributable percentage
falls below Fitch expectation.

Redevelopment Alleviates Land Acquisition Pressure: Fitch
estimates that Times China's existing saleable resources are only
sufficient to support the company's sales in the next three years,
placing significant pressure on the company to expand its land
bank. However, Fitch believes Times China's efforts in pursuing
redevelopment projects can relieve some pressure on the company to
compete for more costly sites in land auctions. The company has a
competitive advantage in obtaining low-cost urban redevelopment
projects particularly in Guangzhou and Foshan, which will help it
to control land cost and ease pressure to acquire land.

Times China had 16.8 million sq m of land at end-2017, with 33% of
the area in its core markets in Guangzhou, Foshan and Zhuhai.
Another one third of the land was in Qingyuan, a Tier 3 city in
Guangdong. Times China also reduced its new land cost to
CNY3,393/sq m in 2017, from CNY5,367/sq m, mainly via increasing
its land bank in some Tier 3 cities. It secured (acquired or
signed preliminary agreement) 68 projects totalling 19 million sq
m of redevelopment land bank at end-2017, of which 5.6 million sq
m is likely to be converted to available-for-sale land in 2018-
2020. Times China did not convert any of the land in 2017, but
management said it plans to convert 1.5 million sq m in 2018, or
30% of all land acquired in 2017.

Stable Leverage: Times China's leverage, measured by net
debt/adjusted inventory, was controlled at 37.6% at end-2017,
after taking into consideration the adjustments from JV and
associate investments as well as the amount due to and from non-
controlling interest shareholders. Times China has been able to
keep leverage below 40% during expansion; and while Fitch expects
the metric to increase as the company continues to expand, it
should keep below 45%.

Lower Cash Collection: Times China collected around CNY31.3
billion of cash from sales in 2017, or around 75% of its reported
contracted sales, lower than its 85% cash collection rate before
2016. Fitch believes that this is mainly due to tight onshore
credit environment starting from 2H17. Tighter credit may result
in purchasers experiencing delays in obtaining mortgage loans,
which has slowed cash collection for the market. Fitch believes
that under the current credit conditions Times China will face
more challenges in balancing financial discipline and fast growth
to maintain its current healthy financial profile.

Concentration in Guangdong Province: Times China is a regional
property developer focused on Guangdong province in southern
China. Guangzhou, Foshan and Zhuhai together accounted for more
than 75% of total contracted sales in 2017 and more than 85%
before that. Fitch expects Times China to focus on expanding
within Guangdong province and that it is unlikely to expand into
other provinces in the near term.

DERIVATION SUMMARY

Times China has enjoyed a CAGR growth of over 45% in 2012-2017 to
reach a reported sales of over CNY40 billion, which is similar to
'BB' category peers such as Yuzhou Properties Company Limited's
(BB-/Stable) CNY40.3 billion and China Aoyuan Property Group
Limited's (BB-/Stable) CNY45.6 billion, but larger than lower
rated companies such as Modern Land (China) Co., Limited's
(B+/Negative) CNY22 billion. Times China has managed to maintain
leverage below 40% while significantly boosting scale and
increasing saleable resources, which is also in line with
similarly rated companies. Fitch believes that Times China will
continue to be under pressure to expand its land bank in its core
markets in Guangdong to support its growth.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer

- Attributable contracted sales sustained above CNY40 billion in
   the next three years

- Gross profit margin (including capitalised interests)
   maintained at 20%-25% over 2018-2019

- Attributable land premium at around 55% of sales proceeds in
   the next three years

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

- Annual attributable contracted sales sustained above CNY50
   billion

- Net debt/adjusted inventory sustained below 35%

- Contracted sales/total debt sustained above 1.2x (2017: 1.2x)

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

- Net debt/adjusted inventory sustained above 45%

- EBITDA margin sustained below 20% (2017: 22.6%)

- Land bank insufficient for three years of development

LIQUIDITY

Sufficient Liquidity: Times China had cash and cash equivalents of
CNY17.2 billion (including restricted cash) as of end-2017,
compared with CNY6 billion in short-term debt. The company also
issued USD500 million of 6.25% notes due 2021 in January 2018 to
redeem USD280 million of 11.45% notes due 2020 to lower its
average funding cost. Times China's average funding cost fell to
7.6% in 2017 from 9.64% in 2015.

FULL LIST OF RATING ACTIONS

Times China Holdings Limited

Long-Term Foreign-Currency IDR Upgraded to 'BB-' from 'B+';
Outlook Stable

Senior unsecured rating upgraded to 'BB-' from 'B+'

USD500 mil. 6.25% senior unsecured notes due 2021 upgraded to
'BB-' from 'B+'

USD375 mil. 6.25% senior unsecured notes due 2020 upgraded to
'BB-' from 'B+'

USD300 mil. 6.6% senior unsecured notes due 2023 upgraded to
'BB-' from 'B+'

USD225 mil. 5.75% senior unsecured notes due 2022 upgraded to
'BB-' from 'B+'


XINHU ZHONGBAO: Fitch Affirms B Long-Term IDR; Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Xinhu Zhongbao Co., Ltd.'s Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B'. The Outlook
is Stable. The company's senior unsecured rating and the rating on
its outstanding USD700 million 6% senior unsecured notes, issued
by fully owned subsidiary, Xinhu (BVI) Holding Company Limited,
have also been affirmed at 'B' with a Recovery Rating of 'RR4'.

Xinhu Zhongbao's ratings are supported by its high land quality,
which should drive robust contracted sales growth and higher
margins, and are constrained by high leverage. The ratings are
based on a consolidated group financial profile and incorporate
the financial profile of Xinhu Zhongbao's parent, Zhejiang Xinhu
Group Co. Ltd., due to strong legal, operational and strategic
linkages, in line with Fitch's Parent and Subsidiary Linkage
criteria.

KEY RATING DRIVERS

High Leverage Constrains Ratings: Xinhu Zhongbao has reported
persistently high leverage of 60%-70%, as measured by net
debt/adjusted inventory, if including financial joint-venture
investments due to its primary land and secondary property
development business model. However, the model helps keep land
costs low and provides the company with room to deleverage by
lowering pressure for new land acquisitions. Furthermore, Xinhu
Zhongbao's significant investment in financial institutions keeps
its leverage higher than for most other homebuilders that solely
focus on property development.

Strong Parent and Subsidiary Linkage: Fitch assesses the linkage
between Xinhua Zhongbao and Zhejiang Xinhu Group, which had a
40.2% equity stake in Xinhu Zhongbao as at end-June 2017, as
strong, in view of historical intragroup asset transfers, upward
guarantees provided by Xinhu Zhongbao to the parent, some
management overlap, and common control of a subsidiary - Xiangcai
Securities.

Slower Turnover than Peers: Xinhu Zhongbao's project churn of 0.4x
in 2016, as measured by contracted sales/net inventory, is low
compared with the 0.6x average of 'B' rated peers. Fitch expect
most primary land development costs to occur in the next year or
two, which will push up inventory levels, while contracted sales
will kick in to cover property development costs from late 2019.

Quality Land Bank: The majority Xinhu Zhongbao's land designated
for secondary development is in key cities around the Yangtze
River Delta, with about 25% of its sellable resources by value
located within the Shanghai inner-ring, which benefits from
limited supply. This supports Fitch's forecast increase in Xinhu
Zhongbao's average selling price when its Shanghai projects are
launched in 2019 or 2020.

Sales Growth and Margin Improvement: Fitch expects Xinhu
Zhongbao's high land quality to support robust contracted sales
growth and higher margins. Fitch forecast increase in the
company's average selling price and recognition of high-margin
projects in tier two and three cities should drive Xinhu
Zhongbao's property development gross profit margin, excluding
capitalised interest, above 30% in 2017 and 2018, from 25% in
2016. Fitch also foresees margin improvement due to lower selling,
general and administrative expenses, as economies of scale from
increased sales of better-quality projects kick in from 2020.

Financial Investments Given Credit: Xinhu Zhongbao has been
building up its portfolio of long-term equity investments in
financial institutions, mainly Xiangcai Securities Co., Ltd.,
Shengjing Bank, Bank of Wenzhou Co., Ltd and China CITIC Bank
Corporation Limited (CNCB) (BBB/Stable). Fitch has included these
investments in Fitch leverage calculation as part of adjusted
inventories. Fitch also adjusted Xinhu Zhongbao's net debt to
include a cash credit from its marketable equity investments. The
company has consistently made large marketable equity investments
in the Chinese and Hong Kong equity markets.

DERIVATION SUMMARY

Xinhu Zhongbao's ratings are supported by its high land quality,
which should drive robust contracted sales growth and higher
margins. Its ratings are mainly constrained by high leverage. The
company is rated based on the consolidated financial profile of
the Zhejiang Xinhu Group, in line with Fitch's Parent and
Subsidiary Linkage criteria.

Xinhu Zhongbao has a similar business model and contracted sales
scale as Oceanwide Holdings Co. Ltd. (B/Negative). Both companies
have high quality land bank in Shanghai with low land costs, which
supports their EBITDA margins. They also have slow churn, as
measured by contracted sales/total debt, and make active
investments in finance institutions. Xinhu Zhongbao has lower
leverage than Oceanwide, as measured by net debt/adjusted
inventory. Xinhu Zhongbao has a larger and better-quality land
bank compared with other Chinese property peers rated in the 'B'
category, such as Redco Properties Group Ltd (B/Stable) and Guorui
Properties Limited (B/Stable). However, its leverage is
comparatively higher due to its active investments in financial
institutions.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for the Issuer

- The company will pay down the primary land development
   expenditure for its Shanghai projects in the next two to three
   years, with limited new land acquisitions in 2018 and 2019.

- Contracted sales to increase at about 15% per year in 2018 and
   2019 (2016: 14%).

- Contracted sales cash collection ratio of 90%-95% (2016: 90%).

- EBITDA margin, excluding capitalised interest, rising to 25%-
   30% in 2017-2019 due to the booking of Shanghai projects
   (2016: 22%).

Recovery Rating assumptions:

- Xinhu Zhongbao would be liquidated in a bankruptcy because it
   is an asset-trading company.

- 10% administrative claims.

- The value of inventory and other assets can be realised in a
   reorganisation and distributed to creditors.

- A haircut of 25% on net inventory at fair value, as Xinhu
   Zhongbao's EBITDA margin is higher than the industry average.
   This implies its inventory will have a higher liquidation
   value than that of peers.

- A 40% haircut to investment properties and 50% haircut to
   properties, plant and equipment.

- An 80% haircut to equity investments, which are mainly in
   financial institutions.

- Large cash balance of Xinhu Zhongbao is adjusted where cash in
   excess of its three-month contracted sales is invested in new
   inventories.

- Based on Fitch calculation of the adjusted liquidation value
   after administrative claims, Fitch estimate the recovery rate
   of the offshore senior unsecured debt to be 100%. Fitch have
   rated the senior unsecured debt at 'B'/RR4. Under Fitch
   criteria, Country-specific Treatment of Recovery Ratings,
   China falls into Group D of creditor friendliness and
   instruments ratings of issuers with assets in this group are
   subject to a soft cap at the level of the issuer's IDR.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- Contracted sales/net inventory sustained above 0.5x.

- EBITDA margin sustained above 30%.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- Contracted sales/net inventory below 0.3x for a sustained
   period, contracted sales below CNY10 billion for a sustained
   period and failing to support property business expansion or
   lower debt repayment capacity.

- EBITDA margin below 20% for a sustained period.

LIQUIDITY

Sufficient Liquidity: Xinhu Zhongbao's unrestricted cash and
marketable equity investments totalled CNY23 billion as at end-
June 2017, after Fitch took a 60% haircut on its CNY7.5 billion
marketable equity investments and a 30% discount on its CNY3.7
billion investments in wealth management products. Xinhu Zhongbao
can cover its short-term debt of around CNY13 billion plus Fitch
CNY6 billion negative free cash flow forecast for 2017. In
addition, the company's high quality and sufficient land reserve
provide an adequate pledge for financing if necessary.



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


ATHULITHA LABORATORIES: Ind-Ra Raises LT Issuer Rating to B-
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Athulitha
Laboratories Private Limited's (ALPL) Long-Term Issuer Rating to
'IND B-' from 'IND D'. The Outlook is Stable. The instrument-wise
rating actions are:

-- INR45 mil. (increased from INR25 mil.) Fund-based working
    capital limits upgraded with IND B-/Stable rating;

-- INR42 mil. (reduced from INR52.6 mil.) Term loan due on
    December 2021 upgraded with IND B-/Stable rating; and

-- INR30 mil. (increased from INR20 mil.) Non-fund-based working
    capital limits upgraded with IND A4 rating.

KEY RATING DRIVERS

The upgrade reflects ALPL's timely debt servicing during the eight
months ended February 2018. The ratings, however, remain
constrained by the company's stretched liquidity. ALPL nearly
fully utilized its fund-based facilities during the eight months
ended February 2018, attributed to an elongated working capital
cycle of 153 days in FY17 (FY16: 139 days).

The ratings also remain constrained by ALPL's small scale of
operations, and weak credit metrics because of high debt levels,
due to continuous debt-led capex, and modest margins. In FY17,
revenue was INR181.7 million (FY16: INR152.2 million) because of
optimum utilization of the capacity and EBITDA margin declined to
13.2% (15.9%) due to an increase in material and employee cost.
This along with high debt levels led to lower EBITDA interest
coverage of 2.1x in FY17 (FY16: 2.7x) and higher net leverage
(Ind-Ra adjusted net debt/operating EBITDAR) of 6.8x in (6.0x).

Ind-Ra's expects the credit metrics to deteriorate, mainly on
account of an additional debt-led capex of INR236.1 million
undertaken for capacity expansion during 8MFY18 besides the
ongoing debt-led capex. Of the total capex undertaken, INR185
million was funded through a term debt and the remaining through
equity and internal accruals. A major part of the term debt was
disbursed in 1HFY18. Ind-Ra expects credit metrics to improve in
FY20, as production from the new capacity will add to revenue.

The ratings are also supported by ALPL's promoters' experience of
over two decades in active pharmaceutical ingredients and
intermediaries' manufacturing that has led to established
relationships with customers and suppliers.

RATING SENSITIVITIES

Negative: Deterioration in liquidity could be negative for the
ratings.

Positive: An improvement in liquidity will be positive for the
ratings.

COMPANY PROFILE

Incorporated in October 2011 in Hyderabad, ALPL manufactures drug
intermediates.


AZURE HOSPITALITY: Ind-Ra Withdraws 'B-' Long Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Azure
Hospitality Private Limited's (AHPL) Long-Term Issuer Rating of
'IND B-(ISSUER NOT COOPERATING)'. The instrument-wise rating
actions are as follows:

-- INR15 mil. Fund-based working capital limits withdrawn and the
    rating is withdrawn.

-- INR40 mil. Term loan due on December 2018withdrawn and the
    rating is withdrawn.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the ratings, as the
agency has received a no-dues certificate from the lender,
mentioning that the bank loans have been repaid in full.

COMPANY PROFILE

Founded in 2009, Azure Hospitality operates nine quick service
restaurants under the Mamagoto, Celeste Food Services, Mamapaati,
Roll Maal and Speedy Chow brands.


BAFNA PHARMACEUTICALS: CRISIL Reaffirms D Rating on INR25MM Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL D/CRISIL D' ratings on
the bank facilities of Bafna Pharmaceuticals Limited.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit            25        CRISIL D (Reaffirmed)

   Export Packing
   Credit                  8        CRISIL D (Reaffirmed)

   Foreign Bill
   Discounting             5        CRISIL D (Reaffirmed)

   Letter of credit
   & Bank Guarantee        9        CRISIL D (Reaffirmed)

   Long Term Loan          1.65     CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      5.35     CRISIL D (Reaffirmed)

   Cash Credit             3        CRISIL D (Reaffirmed)

The ratings reflect continued delays by Bafna in servicing its
debt because of stretched liquidity. The financial risk profile is
constrained by weak debt protection metrics, and operations are
working capital intensive. However, the company benefits from its
promoters' experience in the pharmaceuticals industry.

Key Rating Drivers & Detailed Description

* Delay in debt servicing: Bafna has been delaying debt servicing
because of sluggish operating performance over the past year
resulting in cash loss. Liquidity has weakened due to a
significant stretch in receivables.

Weaknesses

* Constrained financial risk profile: Bafna's financial risk
profile is sub-par, reflected in weak debt protection metrics.
Gearing deteriorated to 1.86 times as on March 31, 2017, from 1.37
times a year earlier, while interest coverage weakened to a
negative 0.36 time in fiscal 2017 from 0.39 time in the previous
fiscal. The company reported a cash loss in fiscal 2017 due to
muted operations, leading to high reliance on working capital debt

* Working capital-intensive operations: Receivables were at 295
days (gross current assets at 505 days) as on March 31, 2017, due
to delayed payment by domestic institutional clients (government
hospitals in Tamil Nadu, Andhra Pradesh, Maharashtra, and
Karnataka). Liquidity is stretched, reflected in full utilisation
of working capital bank line.

Strength

* Extensive experience of the promoters: Presence of more than two
decades in the pharmaceutical industry has enabled the promoters
to expand operations both in the domestic and global markets.

Bafna was set up in 1981 as a proprietary concern by Mr Bafna
Mahaveer Chand, and was reconstituted as a public limited company
in 1995. The promoter, along with his relatives and friends, owns
33.42% of Bafna's equity. The remaining is owned by the public and
bodies corporate. Bafna commenced production in October 1984 with
a tablet manufacturing facility at Madhavaram in Chennai and added
capsule and oral syrup facilities. In 2001, the company set up a
unit for producing betalactam products. While Bafna has, over the
years, focused on institutional and generic supplies of
pharmaceutical products, it has also steadily increased the number
of product registrations in the international market. The company
commissioned its second manufacturing facility in Grantylon (Tamil
Nadu). Bafna has also set up a formulations research and
development unit at the Grantylon unit. The unit manufactures non-
betalactam products for regulated markets in the UK and the US,
and new products for markets in India and Sri Lanka. Bafna
acquired the Raricap brand from Johnson and Johnson Ltd in April
2011.

For the nine month ended December 31, 2017, net profit was INR17.7
crore (INR-10.1 crore in the corresponding period of the previous
year) on net sales of INR30.7 crore (INR53.5 crore).


K. MANOHARAN: CRISIL Reaffirms B+ Rating on INR3.25MM Cash Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of K. Manoharan (KM).

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Bank Guarantee        5.00       CRISIL A4 (Reaffirmed)
   Cash Credit           3.25       CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect KM's small scale of operations and
susceptibility of its operating performance to intense
competition. These weaknesses are partially offset by the
extensive experience of the proprietor in the civil construction
industry.

Analytical Approach

Unsecured loans from the proprietor have been treated as neither
debt nor equity.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operations: KM's small scale is reflected in
revenue of INR19 crore in fiscal 2017. KM bids only for contracts
from the Public Works Department (PWD) of Kerala, which restricts
its scale of operation and constrains its growth only in Kannur.

* Susceptibility of operating performance to intense competition:
A substantial portion of the market is captured by large companies
such as Larsen & Toubro Ltd and Gammon India Ltd. The industry
also has local, small players. The intense competition constrains
KM's ability to scale up operations.

Strength

* Experience of the proprietor: The firm will continue to benefit
from the proprietor's experience of over a decade and his healthy
relationship with the PWD of Kerala. The firm, operational since
1976, has been executing construction projects for the state PWD
without any delay.

Outlook: Stable

CRISIL believes KM will continue to benefit from the extensive
industry experience of its proprietor. The outlook may be revised
to 'Positive' if there is a significant increase in revenue along
with sustained profitability, while the working capital cycle
improves. The outlook may be revised to 'Negative' if delays in
execution of projects or in collecting payment from debtor leading
to weak liquidity.

KM, a proprietorship firm, constructs roads for the PWD of Kerala.


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

-- INR95 mil.Fund-based limits migrated to Non-Cooperating
    Category with IND BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 14, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Kisan Proteins was incorporated in January 2005 by the Kisan Group
in Palanpur in Ahmedabad. The company is primarily engaged in
solvent extraction from rapeseeds and mustard seeds.


MEENAKSHI FISHING: CRISIL Moves D Rating to Not Cooperating Cat.
----------------------------------------------------------------
Due to inadequate information, and in line with Securities and
Exchange Board of India guidelines, CRISIL Ratings had migrated
the rating on the bank facilities of Meenakshi Fishing and Trading
Co. (MFTC) to 'CRISIL D Issuer Not Cooperating'. However, the
company management has started sharing information necessary for a
comprehensive review of the rating. Consequently, CRISIL is
migrating the rating from ' CRISIL D Issuer Not Cooperating' to
'CRISIL D.'

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           .15       CRISIL D (Migrated from
                                   'CRISIL D' Issuer Not
                                   Cooperating)

   Long Term Loan       8.00       CRISIL D (Migrated from
                                   'CRISIL D' Issuer Not
                                   Cooperating)

   Proposed Long Term   1.85       CRISIL D (Migrated from
   Bank Loan Facility              'CRISIL D' Issuer Not
                                   Cooperating)

The ratings reflect the rating reflects the delay in servicing of
debt due to weak liquidity as a result of mismatch of cash flow.

The rating also reflects the small scale of operations. These
weaknesses are partly offset by extensive experience of the
promoters in the fishing industry.

Key Rating Drivers & Detailed Description

* Delays in debt servicing: delays in repayment of term loan
obligations and interest there on for over 30 days, owing to weak
liquidity.

* Small scale of operations: With revenue of about INR3.5 crores
in 2017, scale of operations is likely to remain small in the
highly competitive tourism and fishing sectors.

Strengths

* Extensive experience of partners: MFTC is promoted by Mr
Thirupathi, who has experience of over 15 years in the fishing
industry. Their extensive experience has resulted in established
relationships with clients and fishermen in the Andaman Islands
will continue to support the business risk profile.

Meenakshi fishing and trading co (MFTC), is engaged in fishing and
providing ferry services for tourists of Andaman Islands. The
firm's entire operation is based out of Andaman Islands.


METAFIL: CRISIL Assigns B+ Rating to INR2.25MM Long Term Loan
-------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable/CRISIL A4'
ratings to the bank facilities of Metafil.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Long Term Loan          2.25       CRISIL B+/Stable (Assigned)

   Loan Against Property   1.21       CRISIL B+/Stable (Assigned)

   Export Packing Credit   1          CRISIL B+/Stable (Assigned)

   Bank Guarantee          0.34       CRISIL A4 (Assigned)

   Cash Credit             1.2        CRISIL B+/Stable (Assigned)

The ratings reflect the firm's modest scale of operations,
susceptibility of its operating margin to volatility in raw
material prices, and its large working capital requirement. These
weaknesses are partially offset by the extensive experience of its
proprietor in the metal fabrication industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Metafil's modest scale is reflected
in revenue of INR18.04 crore in fiscal 2017. The metal fabrication
business has various small as well as large, organised players.
The firm's modest scale in the fragmented industry limits
bargaining power with suppliers and customers. Though revenue is
expected to grow over the medium term, the scale of operations
will remain modest.

* Susceptibility of operating margin to volatility in raw material
prices: The operating margin ranged from 18-28% over the three
fiscals ended March 31, 2017. Any fluctuation in commodity prices,
especially that of steel, the firm's major raw material, will
impact profitability.

* Large working capital requirement lading to high total outside
liabilities to tangible networth (TOLTNW) ratio: Gross current
assets were at 160 days as on March 31, 2017, because of
substantial receivables of 138 days. The firm provides credit of
90-120 days to customers and maintains inventory of 10-15 days.
However, working capital management is partially supported by
payables of 100-140 days. This has led to high reliance on
external debt, thus resulting to high TOLTNW ratio of 7.14 times
as on March 31, 2017.

Strength:

* Proprietor's extensive industry experience: Ms Uma Rani, the
proprietor of the firm, and her family members have experience of
around 45 years in the metal fabrication industry through other
firms. Her industry insights, knowledge of the domestic market,
and healthy relationships with suppliers and customers will
support the business risk profile of the firm.

Outlook: Stable

CRISIL believes Metafil will continue to benefit from its
proprietor's extensive industry experience. The outlook may be
revised to 'Positive' if scale of operations increases
substantially, while profitability remains stable, leading to
higher cash accrual and better financial risk profile. The outlook
may be revised to 'Negative' if decline in operating margin or
revenue, or larger-than-expected working capital requirement, or
sizeable, debt-funded capital expenditure or significant capital
withdrawal weakens the financial risk profile or liquidity.

Set up in 2006, Metafil is engaged in metal fabrication. It is
promoted by Ms. Uma Rani and its manufacturing facility is in
Manesar, Haryana.


MM DETERGENTS: Ind-Ra Assigns 'BB' LT Rating to INR450MM Limits
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M.M. Detergents
Company Private Limited (MMD) a Long-Term Issuer Rating of 'IND
BB'. The Outlook is Stable. The instrument-wise rating action is
as follows:

-- INR450 mil. Fund-based limit assigned with IND BB/Stable/
    IND A4+ rating.

KEY RATING DRIVERS

The ratings are constrained by MMD's small scale of operations
owing to the company's switch to trading from manufacturing.
Revenue raised to INR351 million in FY17 from INR89 million in
FY16, driven by additional orders received from customers. Ind-Ra
expects revenue to decline in FY18, considering MMD had booked
INR84 million in revenue for 10MFY18 and had an order book
position of INR160 million as of February 2018 that is likely to
be completed by FYE18. Ind-Ra expects revenue growth in FY19, as
MMD would receive more orders from Naga Limited which will
contribute 99% to the total revenue. The net cash conversion cycle
is long at 109 days in FY17 (FY16: 256 days) on account of high
debtor days which is 101 days (240 days). Ind-Ra expects the net
cash cycle to improve as the company makes sales against advance
payments.

The ratings, however, are supported by MMD's strong operational
linkages with an associate company, Naga Limited (Naga; 'IND
BBB+'/Positive). MMD and Naga have signed an agreement, where MMD
will procure wheat for Naga on favorable terms and conditions.
This will help MMD in generating higher revenue with minimal risk.
As per the agreement, all operating expenses related to
procurement will be borne by Naga. In addition, MMD has pledged a
loan of INR450 million to MMD. Naga will also take care of the
related debt servicing obligations. MMD holds 7% shares in Naga.

The ratings are also supported by modest credit metrics. In FY17,
gross interest coverage (operating EBITDA/gross interest expense)
was 4.7x (FY16: 2.4x) and net financial leverage (adjusted net
debt/operating EBITDAR) was 4.4x (8.4x). The improvement in the
credit metrics was mainly due to an increase in operating EBITDA
(FY17: INR21 million; FY16: INR7 million). However, EBITDA margin
declined to 6.0% in FY17 from 8.3% in FY16 due to the switch. Ind-
Ra expects EBITDA margin to further decline in the medium term as
the company completely diversifies into trading, and credit
metrics to stretch during the period on account of an increase in
the closing balance of debt, as MMD will increase the utilization
of the fund-based working capital facilities to meet working
capital requirement.

RATING SENSITIVITIES

Negative: A higher decline in revenue and profitability than Ind-
Ra's expectation leading to deterioration in the overall credit
metrics on a sustained basis or failure to receive orders from
Naga could lead to a negative rating action.

Positive: A significant increase in the scale of operations and
profitability than Ind-Ra's expectations leading to an improvement
in the overall credit metrics on a sustained basis, along with
continued increase in orders from Naga, could be positive for the
ratings.

COMPANY PROFILE

Incorporated in 1993, MMD is engaged in the trading of
agricultural commodity (wheat) and processing of detergent powers.
MMD has three warehouses with a storage capacity of 38,000 metric
tons.


MUNDRA AGRO: CRISIL Raises Rating on INR10.50MM Term Loan to B+
---------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Mundra Agro Private Limited (MAPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           7.75       CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

   Proposed Fund-
   Based Bank Limits     8.25       CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

   Term Loan            10.50       CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

The upgrade reflects expectation of an improvement in the business
risk profile, led by timely ramp up in operations in the first
full year, and efficient capacity utilisation in the medium term.
Increased cash accrual, aided by growth in revenue, will support
liquidity, going forward.

The rating continues to reflect the below-average financial risk
profile, working capital-intensive operations, and susceptibility
to volatile paddy prices, extent of rainfall, and changes in
government policies, and intense competition in the rice milling
industry. These weaknesses are partially offset by extensive
experience of the promoters, and stable demand for rice.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile: Financial risk profile was
marked by small networth and moderately high gearing of INR5.7
crore and 2.32 times, respectively, as on March 31, 2017. Gearing
will continue to be high, given the debt-funded project and higher
reliance on working capital debt. Debt protection metrics are
expected to remain modest with interest coverage and net cash
accrual to total debt ratios of around 2 times and 10% in the
medium term.

* Large working capital requirement: Operations remain working
capital intensive, given the sizeable inventory, and efficient
management will be a key determinant of liquidity conditions in
the medium term.

* Vulnerability to volatile raw material prices, uncertainty in
rainfall, and unfavourable changes in regulations: Cultivation of
paddy depends on monsoon and irrigation, and the company remains
susceptible to shortage or price fluctuations, because of
unfavourable climatic conditions.

Strength

* Extensive experience of promoters: The decade-long experience of
the promoters, and their strong relationships with a diverse base
of wholesalers and dealers, have helped ramp up operations in a
timely manner, and will continue to support the business risk
profile.

Outlook: Stable

CRISIL believes MAPL will benefit from healthy prospects for the
rice processing industry, going forward. The outlook may be
revised to 'Positive' if a substantial growth in revenue and
profitability, along with prudent working capital management,
strengthens the financial risk profile. The outlook may be revised
to 'Negative' if a steep decline in profitability, any large
capital expenditure, or a stretch in the working capital cycle,
weakens the financial risk profile.

MAPL, established in November 2015, is setting up a 16-tonne per
hour non-basmati rice mill unit at Giridh, Jharkhand. Daily
operations are managed by promoters, Mr Rajeev Kumar Mundra and Mr
Aditya Kumar. Production has commenced from July 2017.


NIK-SAN ENGINEERING: Ind-Ra Assigns BB- LT Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Nik-San
Engineering Company Limited (NSECL) a Long-Term Issuer Rating of
'IND BB-'. The Outlook is Stable. The instrument-wise rating
actions are as follows:

-- INR19.2 mil. Term loan due on September 2018 assigned with
    IND BB-/Stable rating;

-- INR82.0 mil. Fund-based limits assignedIND BB-/Stable/IND A4+
    rating; and

-- INR280.0 mil. Non-fund-based limits assigned with IND A4+
    rating.

KEY RATING DRIVERS

The ratings reflect NSECL's small scale of operations and weak
credit metrics owing to intense competition. Revenue declined to
INR491 million in FY17 from INR616 million in FY16 due to the
execution of low-value orders. Ind-Ra expects marginal improvement
in NSECL's revenue in FY18, considering the company had booked
INR565 million in revenue for 10MFY18. In FY17, gross interest
coverage (operating EBITDA/gross interest expense) was 1.4x (FY16:
1.3x) and net leverage (net adjusted debt/operating EBITDAR) was
4.2x (FY16: 5.8x). The improvement in net leverage was largely due
to the repayment of the working capital term loan.

The ratings factor in NSECL's modest revenue visibility for the
short term, considering NSECL had an order book position of
INR1,020.20 million as of January 2018 that would be executed by
FYE19.

The ratings, however, are supported by a comfortable operating
EBITDA margin (FY17: 10.4%; FY16: 7.9%) and a modest liquidity.
The rise in the margin was on account of low cost incurred on raw
materials. NSECL's average maximum utilization of its fund-based
working capital limits was 80% for the 12 months ended January
2018.

The ratings are also supported by the directors' significant
experience of two and half decades in the assembling of
transformers.

RATING SENSITIVITIES

Negative: A decline in revenue and EBITDA margin leading to
deterioration in EBITDA interest coverage on a sustained basis
could lead to a negative rating action.

Positive: Substantial revenue growth while maintaining EBITDA
margin leading to improvement in EBITDA interest coverage on a
sustained basis could lead to positive rating action.

COMPANY PROFILE

Incorporated in 2009, NSECL is engaged in the assembling of
distribution transformers at its manufacturing unit in Baroda,
Gujarat. Its total capacity per annum is 27,000 units of
transformers.


P. VENKATESWARA: CRISIL Hikes Rating on INR6.5MM Bank Loan From D
-----------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
M/s. P. Venkateswara Rao (PVR) to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL D/CRISIL D'.

                     Amount
   Facilities       (INR Mln)      Ratings
   ----------       ---------      -------
   Bank Guarantee        6.5       CRISIL A4 (Upgraded from
                                   'CRISIL D')

   Overdraft             3.7       CRISIL A4 (Upgraded from
                                    'CRISIL D')

   Proposed Long Term    1.8       CRISIL B/Stable (Upgraded from
   Bank Loan Facility              'CRISIL D')

The rating upgrade reflects improvement in PVR's liquidity that
has resulted in no excess drawing/irregularity for more than 30
days on OD limits in the last 3 months ended February 2018.

The rating continues to reflect PVR's large working capital
requirement and modest scale of operations in the intensely
competitive construction industry. However, the firm benefits from
its promoters' extensive industry experience and moderate
financial risk profile.

Key Rating Drivers & Detailed Description

Weakness:

* Large working capital requirement: PVR's operation is working
capital intensive, as reflected in gross current asset (GCA) days
of 205 days as on March 31, 2017. The high GCA days emanates from
the company's high receivable levels of around 110 days as on the
same date.

* Modest scale of operations in the intensely competitive
construction industry: The net sales for the last four years have
been in the range of INR28.82 crores to INR36.23 crores. Modest
scale of operations restricts the firm's ability to undertake
large projects and limits the total number of projects it can
undertake at one time. It also prevents the company from achieving
economies of scale and limits its bargaining power with supplier.

Strengths

* Promoters' extensive industry experience: The promoter Mr. P.
Venkateshwara, has more than three decades' extensive experience
as a civil works contractor in Andhra Pradesh (AP), Telangana and
Tamil Nadu. The promoters' experience has enabled the company to
establish a strong presence in civil constructions work in Andhra
Pradesh, Tamil Nadu and Telangana.

* Moderate financial risk profile: Net worth and gearing were at
INR11.53 Cr and INR0.33 times respectively as on March 31, 2017.
The debt protection metrics namely interest coverage and net cash
accrual to total debt ratio were at 2.38 times and 42 percent
respectively in 2016-17.

Outlook: Stable

CRISIL believes that PVR will benefit from the long standing
experience of the promoters in the civil construction industry.
The outlook may be revised to 'Positive' in case of significant
increase in revenues coupled with improvement in net cash accruals
and financial risk profile. Conversely, the outlook may be revised
to 'Negative' in case of sharp decline in revenues or operating
margins, or large debt funded capital expenditure or deterioration
in working capital management weakening the financial risk
profile.

PVR, set up as a proprietary concern by Mr P Venkateswara Rao in
1984, was reconstituted as a partnership concern in 1989, with Mr
Rao and his family members, as partners. Located in Hyderabad,
(Telangana), PVR is engaged in construction of roads, roads over
bridges (ROB), road under bridges primarily for the railways and
other allied civil construction.


PATEL MOTORS: Ind-Ra Raises Long Term Issuer Rating to BB+
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Patel Motors
(Indore) Private Limited's (PMPL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BB (ISSUER NOT COOPERATING)'. The Outlook is
Stable. The instrument-wise rating actions are:

-- INR410 mil. Fund-based working capital limits upgraded with
    IND BB+/Stable rating.

KEY RATING DRIVERS

The upgrade reflects a substantial improvement in PMPL's revenue
along with an improvement in the credit metrics. In FY17, revenue
grew to INR5,639.11 million (FY16: INR4,757.23 million) on account
of an increase in sale of new cars. PMIPL achieved revenue of
INR2,937.18 million in 1HFY18. EBITDA interest coverage (operating
EBITDA/gross interest expense) improved to 1.5x in FY17 (FY16:
1.4x) and net leverage (Ind-Ra adjusted net debt/operating
EBITDAR) to 4.9x (6.0x) because of a decline in total debt and an
improvement in absolute EBITDA. However, EBITDA margins remained
low and declined to around 2.9% in FY17 (FY16: 3.4%) on account of
an increase in material cost.

The ratings also factor in the company's modest liquidity position
as indicated by around 85.4% average use of its working capital
limits during the 12 months ended February 2018. Net working
capital cycle improved to 44 days in FY17 (FY16: 61 days) owing to
an improvement in inventory days to 25 days (42 days).

However, the ratings benefit from PMPL's dealerships of some
renowned auto manufacturers such as Maruti Suzuki India Limited,
Eicher Motors Limited, and Tractors and Firms Equipment Limited in
Madhya Pradesh, and its diversified product portfolio with
dealerships of passenger and commercial vehicles, as well as
tractors and farm equipment.

The ratings also benefit from the promoter's over three decades of
experience in the auto dealership business.

RATING SENSITIVITIES

Positive: Gross interest coverage increasing above 2.0x on a
sustained basis, along with an improvement in the operating
profitability will lead to a positive rating action.

Negative: Deterioration in the credit profile will lead to a
negative rating action.

COMPANY PROFILE

PMPL was incorporated in 1985 as a partnership firm. In 1993, the
firm was reconstituted as a private limited company. The company
has 17 showrooms and 13 workshops in Madhya Pradesh, and runs a
driving school in Indore.


PINAKEE ENGINEERS: Ind-Ra Affirms B+ Rating on INR90MM Limits
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Pinakee Engineers
& Developers' (Pinakee) Long-Term Issuer Rating at 'IND B+'. The
Outlook is Stable. The instrument-wise rating action is:

-- INR90 mil. Fund-based working capital limit affirmed with
    IND B+/Stable/IND A4 rating.

KEY RATING DRIVERS

The affirmation reflects a continued small scale of operations
owing to a limited operating history. It commenced operations in
FY15. Revenue rose to INR120 million in FY17 from INR34 million in
FY16, driven by a rise in work order execution. As of 15 February
2018, Pinakee had an order book position of INR640 million that
would be executed by FYE20, thereby providing revenue visibility
for the medium term.

The ratings continue to be constrained by weak, albeit improved,
credit metrics. In FY17, net leverage (total adjusted net
debt/operating EBITDAR) was 5.9x (FY16: 11.5x) and gross interest
coverage (operating EBITDA/gross interest expense) was 1.5x
(0.9x). The improvement in the credit metrics was primarily driven
by a rise in absolute EBITDA (FY17: INR 18 million; FY16: INR8
million).

The ratings are constrained by Pinakee's tight liquidity,
indicated by an almost full utilization of the fund-based limits
over the 12 months ended February 2018, and geographical
concentration risk as all the project are executed within Mumbai.

The ratings, however, continue to be supported by the promoters'
experience of more than three decades in the construction
business. Also, the EBITDA margins are comfortable, despite
declining to 14.9% in FY17 from 22.2% in FY16 due to an increase
in construction cost, because of high price realization.

RATING SENSITIVITIES

Negative: Any delay in the execution of projects in hand or the
inability to achieve desired revenue and profitability may lead to
a negative rating action.

Positive: Any substantial revenue growth and the ability to
maintain profitability leading to a strong liquidity will lead to
a positive rating action.#

COMPANY PROFILE

Incorporate in October 2014. Pinakee is partnership firm engaged
in civil construction works as a subcontractor for J Kumar
Infraprojects Ltd ('IND A+'/Negative), Prime Civil Infrastructures
and Noble Construction Co.


POGGENAMP NAGARSHETH: Ind-Ra Gives BB+ Rating to INR200MM Limits
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Poggenamp
Nagarsheth Powertronics Private Limited (PANPPL) a Long-Term
Issuer Rating of 'IND BB+'. The Outlook is Stable. The instrument-
wise rating actions are:

-- INR200 mil. Fund-based working capital limit assigned with
    IND BB+/Stable/IND A4+ rating.

Ind-Ra has taken a consolidated view of PANPPL and Posco Poggenamp
Electrical Steel Pvt Ltd (PPESPL; 'IND BB+'/Stable) while
assigning the ratings as PANPPL holds a majority stake of in PPESL
and has extended corporate guarantees for its debt.

KEY RATING DRIVERS

The ratings reflect the modest consolidated credit metrics due to
volatile margins (impacted by varying raw material prices) and a
medium scale of operations. EBITDA gross interest coverage
(operating EBITDA/gross interest expense) was low at 1.2x in FY17
(FY16: 1x) and net financial leverage (Ind-Ra adjusted net
debt/operating EBITDA) was high at 4.6x (6.5x). EBITDA margins
fluctuated in the range of 5%-10% during FY14-FY17 and turnover
was INR2,399.8 million in FY17 (FY16: INR2,119.3 million). Ind-Ra
expects the consolidated revenue to decline in FY18, due to the
short supply of the major raw material and thus volumes produced.
It has generated around INR906 million (provisional) in revenue in
9MFY18.

On a standalone basis, PANPPL's (parent) credit profile is weaker
than PPESPL's. PANPPL's net financial leverage was 16.4x in FY17
(FY16: 19x), interest coverage was 0.9x (0.6x) and revenue was
INR669.2 million (INR667.4 million). PPESPL's net financial
leverage was 3.3x in FY17 (FY16: 5.1x), interest coverage was 1.5x
(1.1x) and revenue was INR1,703.6 million (INR1,451.9 million).

The ratings are constrained by the tight consolidated liquidity as
reflected in the almost full utilization of the working capital
limits during the 12 months ended February 2018.

The ratings however are supported by PANPPL's directors'
experience of around three decades in motor stamping and
transformer laminations manufacturing.

RATING SENSITIVITIES

Negative: A decline in the revenue and/or EBITDA margins resulting
in deterioration in the credit metrics, all both on consolidated
and sustained bases, could lead to a negative rating action.

Positive: A substantial increase in the revenue while maintaining
the EBITDA margin at the current level resulting in improved
credit metrics, both on consolidated and sustained bases, could
lead to a positive rating action.

COMPANY PROFILE

PANPPL is a company established in 1982 and promoted by Shri
Gauttam Nagarsheth and Gaurang Nagarsheth. The company
manufactures electrical motor components called motor stampings
and laminations, rotors and stators, and has an installed capacity
of 15,000MTPA in Vavdi, Ahmedabad.


POSCO POGGENAMP: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Posco-Poggenamp
Electrical Steel Private Limited (PPESPL) a Long-Term Issuer
Rating of 'IND BB+'. The Outlook is Stable. The instrument-wise
rating actions are as follows:

-- INR200 mil. Fund-based working capital limit assigned with
    IND BB+/Stable/IND A4+ rating.

Ind-Ra has taken a consolidated view of PPESPL and Poggenamp
Nagarsheth Powertronics Pvt. Ltd. (PANPPL) while assigning the
ratings as PANPPL holds a majority stake of in PPESPL and has
extended corporate guarantees for its debt.

KEY RATING DRIVERS

The ratings reflect the modest consolidated credit metrics due to
volatile margins (impacted by varying raw material prices) and a
medium scale of operations. EBITDA gross interest coverage
(operating EBITDA/gross interest expense) was low at 1.2x in FY17
(FY16: 1x) and net financial leverage (Ind-Ra adjusted net
debt/operating EBITDA) was high at 4.6x (6.5x). EBITDA margins
fluctuated in the range of 5%-10% during FY14-FY17 and turnover
was INR2,399.8 million in FY17 (FY16: INR2,119.3 million). Ind-Ra
expects the consolidated revenue to decline in FY18, due to the
short supply of the major raw material leading to a lower output.
It was around INR906 million (provisional) in revenue in 9MFY18.

On a standalone basis, PPESPL's credit profile is stronger than
PANPPL's. PPESL's net financial leverage was 3.3x in FY17 (FY16:
5.1x), interest coverage was 1.5x (1.1x) and revenue was
INR1,703.6 million (INR1,451.9 million). PANPPL's net financial
leverage was 16.4x in FY17 (FY16: 19x), interest coverage was 0.9x
(0.6x) and revenue was INR669.2 million (INR667.4 million).

The ratings are constrained by the tight consolidated liquidity as
reflected in the almost full utilization of the working capital
limits during the 12 months ended February 2018.

The ratings however are supported by PANPPL's directors'
experience of around three decades in motor stamping and
transformer laminations manufacturing.

RATING SENSITIVITIES

Negative: A decline in the revenue and/or EBITDA margins resulting
in deterioration in the credit metrics, all both on consolidated
and sustained bases, could lead to a negative rating action.

Positive: A substantial increase in the revenue while maintaining
the EBITDA margin at the current level resulting in improved
credit metrics, both on consolidated and sustained bases, could
lead to a positive rating action.

COMPANY PROFILE

Established in 2010, PPESPL as joint venture between PANPPL and
POSCO India Pune Processing Centre Pvt. Ltd., a 65% subsidiary of
POSCO, South Korea. PPESPL was set up to manufacture cut-to-length
transformer lamination sheets with an installed capacity of
24,000MTPA As of March 2017, PPESPL was 51% held by PANPPL, 26% by
Posco India, and the balance by the promoters of PANPPL.


RRR CONSTRUCTIONS: Ind-Ra Assigns 'BB' Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RRR Constructions
& Projects Private Limited (RRR) a Long-Term Issuer Rating of 'IND
BB'. The Outlook is Stable. The instrument-wise rating actions
are:

-- INR35 mil. Fund-based working capital limit assigned with
    IND BB/Stable/IND A4+ rating; and

-- INR42 mil. Non-fund based working capital limit assigned with
    IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect RRR's small scale of operations and modest
operating profitability due to its limited track record in the
engineering-procurement-construction business as FY17 was the
first full year of operations. In FY17, revenue improved to INR175
million (FY16: INR153 million), driven by timely completion of
orders. Management expects revenue to increase as the company had
an outstanding order book of INR1,467.8 million at end-February
2018 (8.4x of FY17 revenue), to be executed by March 2020. EBITDA
margin improved to 6.9% in FY17 (FY16: 6.6%) due to the execution
of higher-margin projects. According to 9MFY18 audited financials,
RRR's revenue was INR173 million and EDITDA margin was 7.59%.

The ratings reflect RRR's comfortable credit metrics due to low
debt level. Its interest coverage (operating EBITDA/gross interest
expense) was 17.4x in FY17 (FY16: 50.4x) and net leverage (total
adjusted net debt/operating EBITDA) was 1.4x (negative 1.2x). Ind-
Ra, however, expects RRR's credit metrics to deteriorate in FY18
and FY19 due to an increase in the use of its fund-based working
capital facilities resulting in an increase in closing balance of
debt to accommodate the working capital requirement.   .

The ratings are supported by RRR's comfortable liquidity position
as reflected by 16.55% average utilization of its fund-based
facilities during the 12 months ended January 2018. The ratings
are further supported by RRR's promoter's experience of more than
a decade in the engineering-procurement-construction business.

RATING SENSITIVITIES

Positive: A substantial increase in revenue, along with an
improvement in EBITDA margin while maintaining the credit metrics
at the current level could be positive for the ratings.

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

COMPANY PROFILE

RRR was set up in 2015 and has its registered office in Hyderabad.
The company is engaged in construction of buildings and roads and
related maintenance services.


RUDRA NAVNIRMAN: CRISIL Moves B+ Rating to Not Cooperating Cat.
---------------------------------------------------------------
Due to inadequate information, CRISIL Ratings, in line with
Securities and Exchange Board of India guidelines, had migrated
the rating on the long-term bank facilities of Rudra Navnirman
Private Limited to 'CRISIL B+/Stable/Issuer Not Cooperating'.
However, management has subsequently started sharing requisite
information necessary for carrying out comprehensive review of the
rating. Consequently, CRISIL is migrating the long-term rating
from 'CRISIL B+/Stable/Issuer Not Cooperating' to 'CRISIL
B+/Stable' and reassigned short term rating to 'CRISIL A4'.

                      Amount
   Facilities        (INR Mln)    Ratings
   ----------        ---------    -------
   Overdraft              5       CRISIL A4 (Reassigned)

   Proposed Long Term    90       CRISIL B+/Stable (Migrated from
   Bank Loan Facility             'CRISIL B+/Stable' Issuer Not
                                  Cooperating)

The rating reflects RNPL's exposure to cyclicality in the real
estate industry and to economic cycles, and moderate execution and
booking risks associated with ongoing projects. These weaknesses
are partially offset by the extensive experience of its promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to risks relating to cyclicality in Indian real estate
industry and economic cycles: The real estate sector in India is
fragmented and dominated by a few regional players; also, the
industry is inherently cyclical. Demand was largely impacted by
insecurity regarding earnings of individuals with the economy
facing high retrenchment levels. Customers' anticipation of
further correction in real estate prices was a key reason for low
demand in the market.

* Moderate execution and booking risks associated with ongoing
projects: The company is currently developing two residential
projects: Rudra Aakriti and Rudra Sangam. Both the projects remain
exposed to slower flow of advances, resulting in funding risk.
Company has witnessed moderate salability for the two launched
projects, Rudra Aakriti and Rudra Sangam sold 55% and 29%,
respectively, as on December 31, 2017.

Strength

* Extensive experience of promoters and their funding support: The
company's promoters have been in the residential real estate
segment for more than a decade. They have completed many projects
within scheduled timelines. Furthermore, promoters have also
extended need-based financial support through equity and unsecured
loans.

Outlook: Stable

CRISIL believes RNPL will be able to maintain timely cash inflow
from customers, supported by the Rudra group's longstanding
presence in the real estate industry. The outlook may be revised
to 'Positive' if healthy inflow of customer advances leads to
improved cash accrual. The outlook may be revised to 'Negative' if
RNPL faces time and cost overrun in projects or significant
pressure on liquidity because of delay in receiving customer
advances weakens debt-servicing ability.

RNPL was set up in 2010 by Lucknow-based Agarwal family. The
company undertakes residential real estate projects in Allahabad
and is owned by Mr Anoop Agrawal, Mr Arun Agrawal, and Mr Sunil
Bansal.


SAPPHIRE INDIA: CRISIL Assigns 'B' Rating to INR7MM Term Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its rating on the bank facilities of
Sapphire (India) Private Limited (SIPL) at 'CRISIL B/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Term Loan              7        CRISIL B/Stable (Assigned)
   Proposed Term Loan     6        CRISIL B/Stable (Assigned)
   Bill Discounting       2        CRISIL B/Stable (Assigned)
   Cash Credit            5        CRISIL B/Stable (Assigned)

The rating reflects high total outside liabilities to adjusted net
worth (TOLANW), working capital intensive operations and modest
scale of operations. The above weaknesses are offset by extensive
experience of the promoters and diversified product and customer
profile.

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of BCPL and SIPL; together referred to as
Bhiwadi group. This is because both the companies, together
referred to as the Bhiwadi group, have significant operational and
financial linkages and a common management. SIPL is a wholly owned
subsidiary of BCPL.

Key Rating Drivers & Detailed Description

Weaknesses

* High TOLANW: Bhiwadi group has a high leverage, marked by TOLANW
of over 7 times on March 31, 2017, due to dependence on external
borrowing and accumulated losses in SIPL. TOLANW is expected to
improve in the medium term due to accretion to reserves.

* Working capital intensive operations: Bhiwadi group's operations
are working capital intensive as reflected in Gross current asset
(GCA) days of 171 days on March 31, 2017.

* Modest scale of operations: SIPL has a modest scale of
operations as reflected by operating income of INR35.2 crore in
fiscal 2017.

Strengths:

* Extensive experience of the promoters: The promoters of the
group have been in the industry for more than two decades. Their
extensive experience and knowledge of the industry helps them
maintain good relations with all stakeholders and leverage the
same for their business.

* Diversified product and customer profile: Bhiwadi group deals in
disposable & refrigerant cylinders and valves apart from LPG
cylinders. They supply cylinder ranging from 5 kg to 425 kg. They
also cater to private companies and export markets apart from Oil
Marketing Companies.

Outlook: Stable

CRISIL believes that Bhiwadi group will benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the group improves its
leverage while maintaining steady revenue growth and improving its
profitability. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in revenue growth or
profitability or substantial debt-funded capital expenditure,
affecting the group's financial risk profile.

Bhiwadi cylinders Pvt. Ltd. (BCPL) was established in 1998 for the
production of LPG cylinders & other cylinders and valves. It has a
plant in Bhiwadi, Rajasthan. Sapphire (India) pvt. ltd. (SIPL) is
a wholly owned subsidiary of the group and is engaged solely in
the business of LPG cylinders.


SMLASH ISPAT: CRISIL Assigns B- Rating to INR9MM Cash Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B-/Stable' rating to the
long term bank facilities of Smlash Ispat Private Limited.

                      Amount
   Facilities        (INR Mln)  Ratings
   ----------        ---------  -------
   Cash Credit            9     CRISIL B-/Stable (Assigned)

Rating reflects the firm's modest scale of operations and
operating losses. Rating also factors weak financial risk profile
marked by its negative net worth, high gearing and below average
debt protection metrics. These weaknesses are partially offset by
extensive experience of its promoters.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations and operating losses: SPLASH's scale
of operations is modest, as reflected in revenues of around INR28
crore in Fiscal 2017 and expected revenues of around INR24 crore
in Fiscal 2018. Modest scale of operations constrains company's
ability to take advantages associated with economies of scale that
other big companies are able to leverage upon. Furthermore,
fragmented industry, modest scale of operations and low capacity
utilization results in operating losses.

* Weak financial risk profile: Financial risk profile is weak
marked by negative networth, below average debt protection metrics
and high gearing. Net worth was modest at INR (3.5 crore) against
total debt outstanding of INR12.19 crore resulting in high gearing
as on March 2017. Debt protection metrics was weak due to losses
over the past two years however the same is supported by
continuous fund infusion from promoters.

Strengths

* Extensive industry experience of promoters: The company is
promoted by Mr. A. I. Shalimar, Mr. P. A. Mohammed Hazeem, Mr. A.
P. Asad, Mr. E. S Mohammed Ali and Mr. P. K Abdul Rahman. Over the
years the promoters have stablished strong relationship with raw
material suppliers and customers resulting in uninterrupted supply
of raw material and repeated orders. CRISIL believes that SMLASH
will continue to benefit from extensive experience of promoters
over the medium term.

Outlook: Stable

CRISIL believes SMLASH will continue to benefit over the medium
term from the promoters' extensive experience in the business. The
outlook may be revised to 'Positive' in case of substantial
improvement in scale of operations and profitability resulting in
improvement in financial risk profile. Conversely, the outlook may
be revised to 'Negative' if the financial risk profile weakens
owing to decline in profitability, stretch in working capital
cycle, or any large debt-funded capital expenditure.

Incorporated in September 2012 and based out of Thrissur, Kerala,
SMLASH is engaged in production of Galvanised (GP) coil. The
company is promoted by Mr. A. I. Shalimar, Mr. P. A. Mohammed
Hazeem, Mr. A. P. Asad, Mr. E. S Mohammed Ali and Mr. P. K Abdul
Rahman.


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

-- INR120 mil. Fund-based limits migrated to Non-Cooperating
    Category with IND BB-(ISSUER NOT COOPERATING) rating; and

-- INR5 mil. Non-fund-based limits migrated to Non-Cooperating
    Category with IND A4+(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING:  The ratings were last reviewed on
March 7, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2000 by Mr. Anand Agrawal, TSIPL supplies a wide
range of ISI-certified mild steel products that are used in
various types of construction works.


TOUCH TONE: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Touch Tone
Teleservices' (TTS) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable. The instrument-wise rating actions are given
below:

-- INR80 mil. (increased from INR60 mil.) Fund-based working
    capital facilities affirmed with IND BB-/Stable rating; and

-- INR40 mil. (reduced from INR60 mil.) Non-fund-based working
    capital facilities affirmed with IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects TTS's continued low revenue base because
of a small scale of operations. Revenue fell to INR232 million in
FY17 from INR290 million in FY16, on account of a lower number of
orders and slower order execution in the last two quarters due to
demonetization. Ind-Ra expects revenue to improve in FY18 as the
company had an outstanding order book of INR350 million (1.5x of
FY17 revenue) as of February 2018, which will be executed within a
year. The firm has recorded revenue of INR270 million during
9MFY18.

The ratings also reflect TTS's modest credit metrics due to high
working capital intensity. Gross interest coverage (operating
EBITDA/gross interest expense) was 1.9x in FY17 (FY16: 2.3x) and
net leverage (total adjusted net debt/operating EBITDAR) was 3.5x
(2.9x). The deterioration in the credit metrics in FY17 was due to
a fall in absolute EBITDA to INR27 million (FY16: INR32 million).
EBITDA margin improved slightly to 11.5% in FY17 (FY16: 11.2%) due
to lower logistical cost as the majority of the works executed
were in proximity to each other. Ind-Ra expects margins to
deteriorate marginally in FY18 as the firm has ventured into the
trading which carries lower margins.

The ratings also factor in the firm's tight liquidity position
with the fund-based facilities being utilized at an average of 99%
during the 12 months ended February 2018.

The ratings are also supported by the company's founder's
experience of more than a decade in the telecom business and TTS's
strong customer profile including Power Grid Corporation of India
Limited and Bharat Sanchar Nigam Limited.

RATING SENSITIVITIES

Positive: Substantial growth in the top line and profitability
leading to a sustained improvement in the credit metrics could
lead to a positive rating action.

Negative: A substantial decline in the top line and profitability
resulting in sustained deterioration in the credit metrics could
lead to a negative rating action.

COMPANY PROFILE

Set up in 2002, TTS is engaged in the laying and maintenance of
telecommunication lines. It also undertakes civil construction
work in relation to the telecom lines that it lays down.


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

-- INR50 mil. Fund-based working capital migrated to Non-
    Cooperating Category with IND B+(ISSUER NOT COOPERATING)
    /IND A4(ISSUER NOT COOPERATING) ratings.

Note: ISSUER NOT COOPERATING:  The ratings were last reviewed on
March 9, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2009, VTC is a proprietorship concern engaged in
milling and trading of rice. VTC procures paddy from traders,
local market, and rice from other rice millers. The firm sells
Basmati rice to wholesalers, exporters, and also sells through
brokers.


VENKATADRI SPINNING: CRISIL Lowers Rating on INR8.82MM Loan to D
----------------------------------------------------------------
CRISIL Ratings has downgraded its ratings on the bank loan
facilities of Venkatadri Spinning Mills Private Limited (VSMPL) to
'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'.

                      Amount
   Facilities        (INR Mln)    Ratings
   ----------        ---------    -------
   Bank Guarantee        .18      CRISIL D (Downgraded from
                                  'CRISIL A4')

   Overdraft             4        CRISIL D (Downgraded from
                                  'CRISIL C')

   Term Loan             8.82     CRISIL D (Downgraded from
                                  'CRISIL C')

The downgrade reflects delays in servicing term debt obligations
owing to weak liquidity and overdrawls in overdraft account for
more than 30 days.

The rating also reflects weak financial risk profile marked by
small net worth, high gearing, and weak debt protection metrics
and large working capital requirements. The rating also factors in
the company's small scale of operations in the intensely
competitive cotton yarn industry, and the susceptibility of its
profitability margins to volatility in cotton prices. These rating
weaknesses are partially offset by the extensive experience of
VSMPL's promoters in the textile industry, and its established
relationship with customers.

Key Rating Drivers & Detailed Description

Weakness

* Delay in debt servicing: The company has delayed servicing term
loan obligations owing to stretched liquidity and overdrawls in
overdraft account for more than 30 days.

* Small scale of operations in the intensely competitive cotton
yarn industry: VSMPL had commenced commercial operations in August
2011 and had generated revenue of INR17.92 crores during 2016-17,
underpinning its small scale of operations in the fragmented
cotton yarn industry.

* Susceptibility to volatility in cotton prices: Operating margin
of cotton yarn manufacturers are susceptible to changes in cotton
prices. Apart from demand and supply factors, cotton prices are
also influenced by government policies. Cotton is the major raw
material accounting for more than 75 percent of the company's
production cost. Cotton prices have been highly volatile in the
past and are expected to remain so, thereby exposing the company
to price risk.

* Weak financial risk profile: The financial risk profile has
small networth, high gearing and below-average debt protection
metrics. The networth is small at INR2.37 crores as on March 31,
2017, due to low initial paid-up capital and limited accretion to
reserves; the latter is a result of small scale of operations and
modest profitability margin. The company has followed an
aggressive financial policy, with its peak gearing over the past
three years through 2016-17 being high at 5.65 times.

Strengths:

* Promoters' extensive experience in the textile industry, and
established relationship with customers: The promoters have over
15 years industry experience and have established healthy
relationship with customers. The bulk of the revenue is derived
through supply of cotton yarn and hence there are established
relations with dealers who have provided sufficient demand for the
products. VSMPL has generated revenue of around INR17.92 crores
during 2016-17.

VSMPL was set up in 2009, as a private limited company, by Mr.
Srimannarayana and Mr. Hanumantha Rao. The company manufactures
cotton yarn; its spinning mill is in Rajahmundry (Andhra Pradesh).

Profit after tax was INR(2.14) crore on revenue of INR17.92 crore
in fiscal 2017, against INR0.07 crore on revenue of INR22.03 crore
in fiscal 2016.


WALBRIDGE FABRICATIONS: CRISIL Assigns B+ Rating to INR4.14M Loan
-----------------------------------------------------------------
CRISIL Ratings has assigned rating of 'CRISIL B+/Stable/CRISIL A4'
to the bank facilities of Walbridge Fabrications (WF).

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Proposed Long Term
   Bank Loan Facility       1.51      CRISIL B+/Stable (Assigned)

   Open Cash Credit         2.00      CRISIL B+/Stable (Assigned)

   Bank Guarantee           2.35      CRISIL A4 (Assigned)

   Long Term Loan           4.14      CRISIL B+/Stable (Assigned)

The rating reflects its nascent stage of operations. The rating
also reflects its below-average financial risk profile, marked by
a moderate gearing, modest debt protection metrics and networth
and its susceptibility of operating margin due to volatility in
raw material prices. These rating weaknesses are partially offset
by the benefits it derives from the extensive industry experience
of partners and its established relation with customers and
suppliers.

Key Rating Drivers & Detailed Description

Weakness

* Nascent stage of operations: WF has started operations in
February 2018 and fiscal 2019 is expected to be its first full
year of operations.  The Firm also prone to slowdown in the
capital goods industry, which as reflected in its volatile
revenues.

* Below-average financial risk profile: WF's financial risk
profile is marked by moderate gearing, modest networth and debt
protection metrics. WF has gearing of 2.1 times and networth of
INR1.3 crores as on March 2017.

* Vulnerability to cyclicality in industry and slowdown in sales
by end-user industry: WF remains vulnerable to intense industry
competition.  The steel long product industry is fragmented
because of relatively low capital intensity and presence of few
large players and several small players. The steel long products
industry is marked by low product differentiation and limited
value addition. Profitability is linked to the overall fortunes of
the steel industry.

* Susceptibility to volatility in raw material prices: The steel
long products industry is marked by low product differentiation
and limited value addition. The commodity-like nature of the
product makes the group vulnerable to volatility in raw material
prices.

Strength

* Extensive industry experience of partners and its established
relation with customers and suppliers: WF is promoted by Mr.Subba
Reddy and his family members. Mr. Subba Reddy has been in the
construction business from over 3 decades. He has specialised in
various kinds of civil works for railways. He has constructed
numerous bridges, platforms, road laying for railways.

Outlook: Stable

CRISIL believes that WF will continue to benefit over the medium
term from its promoter's extensive experience. The outlook may be
revised to 'Positive' if the firm significantly scales up its
operations, while it maintains its profitability and capital
structure. Conversely, the outlook may be revised to 'Negative' if
WF's financial risk profile weakens, particularly its liquidity,
because of withdrawal of capital by partners, lower than expected
revenue or profitability, larger-than-expected working capital
requirements or decline in its cash accruals, or if it undertakes
a large debt funded capital expenditure programme.

Incorporated in 2014, Walbridge Fabrications (WF) undertakes
manufacturing of steel composite girders, pre-engineered building
(PEB) Structures and structural fabrication. WF has set up a
facility in Farooqnagar Mandal in Mahabubnagar district in
Telangana State. The firm is promoted by Mr.Subba Reddy and his
wife. The day-to-day operations are managed by their son - Mr.
Anil Reddy. The firm has started commercial operations in February
2018.



=============================
P A P U A  N E W  G U I N E A
=============================


PAPUA NEW GUINEA: Moody's Alters Outlook on Issuer Rating to Neg.
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the
Government of Papua New Guinea's issuer rating to negative from
stable and affirmed the B2 rating.

The decision to change the outlook to negative reflects elevated
government liquidity risks stemming from high gross borrowing
requirements and limited funding sources, reflected in growing
reliance on short-dated, high interest rate domestic securities
for funding. Liquidity constraints put downward pressure on Papua
New Guinea's (PNG) fiscal strength, despite ongoing fiscal reforms
aimed at supporting government revenue in the medium term. As they
persist, liquidity constraints raise refinancing risks.

Moody's decision to affirm the B2 rating balances pressures on
external liquidity that will remain as PNG is still clearing a
backlog of foreign exchange orders, against prospects for high GDP
growth in the medium term as investment in PNG's natural resources
wealth is realised.

The local-currency bond and deposit ceilings are unchanged at Ba2.
The foreign currency bond ceiling is unchanged at B1 and the
foreign currency deposit ceiling is unchanged at B3. In addition,
the short-term foreign-currency bond and deposit ceilings are "Not
Prime.''

RATINGS RATIONALE

RATIONALE FOR THE NEGATIVE OUTLOOK

LIQUIDITY CONSTRAINTS WEIGH ON FISCAL STRENGTH AND RAISE
REFINANCING RISKS

Moody's expect the PNG government's gross borrowing requirements
to remain large, around 16%-17% of GDP in the next few years. The
confluence of rising government debt, albeit from low levels, a
large share of shorter-dated and high interest rate domestic
maturities and increasing reliance on external commercial debt
will continue to weaken debt affordability and weigh on overall
fiscal strength. In turn, persistent liquidity constraints raise
refinancing risks.

Until recently, the country's large superannuation funds and banks
contributed to a reliable source of financing. Since 2013,
sizeable fiscal deficits have strained the domestic financial
system's ability to absorb government borrowing. Prospects for
further domestic financing are constrained as some banks are
reaching internal limits for holding government securities.

Deteriorating government liquidity is manifesting in higher local
interest rates, which feeds into weaker debt affordability.
Moody's expect interest payments to absorb 15.1% of government
revenues in 2018, higher than many similarly-rated sovereigns, and
up sharply from recent years.

To the extent that domestic investors are still willing and able
to purchase government securities, demand is shifting to shorter
maturities, which raises refinancing risks. Treasury bills with
maturities of less than one year account for around 39% of all
government debt in 2017, up from 32.4% in 2012 and 15.6% in 2007.
Bank of Papua New Guinea, the central bank, is absorbing a greater
share of government bonds to help offset weakening domestic
investor appetite.

In the near term, the government aims to address its financing
constraints by increasing its reliance on external market debt.
This underscores the challenges the government faces in obtaining
funding from domestic sources.

Rising external debt will leave the debt burden and debt servicing
costs more vulnerable to a potential local currency depreciation.
Moreover, external commercial loans typically face higher interest
rates than concessional loans, which will further contribute to
rising debt servicing costs.

Pressure on external debt servicing costs in the next couple of
years is partly offset by the still sizeable proportion of the
government's debt stock that is based on concessional terms. But
external debt repayments will rise from 2020 as repayments on
commercial external loans come due.

In the absence of new external funding and given constraints on
domestic sources of financing, the government has in the past
curbed expenditure. However, scope to reduce expenditure further,
from around 18% of GDP in 2017, may be limited. In the near term,
liquidity pressure may lead to a further build-up of arrears.

Longer term, fiscal reforms and technical support from
international financial institutions will enhance the conduct of
fiscal policy. In particular, the development of a new 2018-2022
Medium-Term Revenue and Fiscal Strategy, provides new fiscal
anchors that if successfully adhered to, could allow the
government to rebuild fiscal buffers that can help mitigate the
impact of potential future negative shocks.

But very low scores on institutional framework imply policy
implementation and effectiveness will continue to be challenging.

Moody's expect government debt to rise to around 34% of GDP by
2019, up from about 32% in 2017, which although remaining in line
with the government's new medium-term debt limit of between 30% to
35% of GDP, provides limited fiscal flexibility in the near term
in the event of a significant negative economic shock. Reflecting
Moody's current assumptions about the fiscal costs of
reconstruction and lost revenue in the aftermath of the
earthquake, the forecast for government debt in 2019 was revised
up by 1 percentage point of GDP.

RATIONALE FOR THE RATING AFFIRMATION

PNG's government liquidity risk is embedded in the B2 rating. The
rating is also underpinned by credit challenges on PNG's external
position and credit strengths related to prospects of high GDP
growth as investment taps an increasing share of the country's
large natural resources.

EXTERNAL LIQUIDITY RISKS REMAIN AS FOREIGN EXCHANGE BACKLOG IS
STILL BEING CLEARED

PNG is still clearing a foreign exchange backlog and the central
bank has imposed various restrictions on foreign exchange
dealings, which denote higher external liquidity pressures than
captured by headline metrics.

PNG's large current-account surpluses since 2014, averaging around
20% of GDP, overstate the actual increase in foreign-exchange
inflows. This is largely because petroleum companies -- as part of
the financing arrangements of the PNG LNG project, the country's
first liquefied natural gas (LNG) project -- keep their export
earnings from liquefied natural gas in offshore accounts to meet
overseas liabilities. Abstracting from LNG-related dollar inflows
since these do not contribute to the accumulation of foreign
reserves, the current account position is weaker than reported,
albeit still robust overall.

The bulk of PNG's foreign reserve inflows traditionally stem from
gold, copper, agriculture and crude oil exports. Tourism also
contributes to foreign exchange inflows. In the near term, Moody's
expect increasing foreign-exchange inflows from higher commodity
prices and stronger non-mining exports to continue to help clear
import payments and cross-border debt servicing. But these inflows
will prevent the backlog of import payments from building rather
than eliminate it.

Faster clearance of the foreign exchange backlog would add
pressure to reserve adequacy. Conversely, slow clearance would
continue to impede PNG's ability to import goods and services and
weigh on business operations.

IMPLEMENTATION OF LARGE RESOURCE PROJECTS COULD BOLSTER GROWTH
POTENTIAL, AND OVER TIME, EASE LIQUIDITY CONSTRAINTS

PNG's longer-term growth is supported by potential investment
aimed at tapping some of the country's natural resources wealth.
Realising that potential, if accompanied by greater government
revenue, is key to increasing the debt carrying capacity of the
sovereign and relieving both domestic and external liquidity
constraints.

The potential development of large-scale resource projects such as
the Papua LNG project, expansion to the existing PNG LNG project,
the Wafi Golpu gold, copper and silver mine and Frieda River gold
and copper mine could boost investment, employment and incomes in
the 2020s. For context, between 2009 and 2014, construction of the
PNG LNG project helped double nominal GDP to $23 billion from
about $11.5 billion and boosted GDP per capita to more than $3,400
on a purchasing-power parity basis from around $2,700.

The successful implementation of the PNG LNG project demonstrates
operational efficiencies, profitability and a relatively low cost
structure, features which enhance PNG's competitive advantage in
extractive industries, even against the backdrop of structurally
lower commodity prices.

The re-election of Peter O'Neill as prime minister for a second
five-year term in 2017 enhances prospects for of the continuation
of policies encouraging resource investments. Notwithstanding
this, ongoing fiscal negotiations between the government and major
energy companies could inhibit progress of these developments.
Such an outcome carries a high credit risk impact, in Moody's
view, as a delay or shelving of investment plans would weigh on
GDP growth prospects and pressure already-tight government and
external finances.

In the nearer term, reflecting some assumptions about the impact
of the earthquake, Moody's has revised its real GDP growth
forecast to 0.5% in 2018, from 3% previously.

Beside the impact of the earthquake, which will hurt mine and gas
production in the near term, and in the absence of an acceleration
in development of mining and energy projects, non-mining
industries will support real GDP growth. The construction of
hotels and conference facilities ahead of the Asia-Pacific
Economic Cooperation summit in 2018 and the boost from the weaker
kina to tourism and retail will support growth. However, fiscal
tightening, high inflation and a shortage of foreign currency will
continue to weigh on growth. Moody's expects reconstruction and an
easing in supply bottlenecks to add to GDP growth in coming years.

WHAT COULD CHANGE THE RATING UP

The negative outlook signals that an upgrade is unlikely.

Moody's could change the outlook to stable on evidence of lower
refinancing risks, which could result from the government
refinancing a significant portion of its short-term domestic debt
at longer maturities.

An increase in non-debt-creating external inflows that lead to a
material build-up in foreign currency reserves and strengthen
reserve adequacy and boost domestic economic output would also
support the credit profile.

Enhancements to potential growth through the development of large
projects, such as via significant additions to LNG and gold
production beyond what is currently assumed, should they allow for
the government to increase its revenue generation capacity, could
also lead to a stabilisation of the rating outlook.

WHAT COULD CHANGE THE RATING DOWN

A rating downgrade could result from increasing reliance on short-
term domestic market funding at high local currency interest rates
to fund fiscal deficits. This would substantially raise
refinancing risks and result in higher government funding costs
and debt than currently assumed.

A worsening of foreign currency shortages or further decline in
the stock of foreign currency reserves would heighten risks to
external debt servicing and place downward pressure on the rating.

In general, should a deterioration in government and external
liquidity result in a substantial worsening of GDP growth
prospects and in turn government revenue, that would ultimately
weigh on the sustainability of public finances and the rating.

GDP per capita (PPP basis, US$): 3,725 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 2% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 6.6% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -4.6% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: 23.9% (2016 Actual) (also known as
External Balance)

External debt/GDP: 91% (2016 Actual)

Level of economic development: Low level of economic resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On March 21, 2018, a rating committee was called to discuss the
rating of the Papua New Guinea, Government of. The main points
raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutional strength/ framework, have not
materially changed. The issuer's fiscal or financial strength,
including its debt profile, has materially decreased. The issuer
has become increasingly susceptible to event risks.



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


EMPIRE RURAL: Creditors Have Until May 7 to File Claims
-------------------------------------------------------
All creditors of the closed Empire Rural Bank, Inc. have until May
7, 2018 to file their claims against the assets of the closed bank
either personally or by mail. Creditors refer to any individual or
entity with a valid claim against the assets of the closed Empire
Rural Bank and include depositors whose deposits exceed the
maximum deposit insurance coverage (MDIC) of PHP500,000.

The Philippine Deposit Insurance Corporation (PDIC) said that
creditors and depositors with uninsured deposits may file their
claims personally at the PDIC Public Assistance Center located at
the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino
St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM. Claims may
also be filed through mail addressed to the PDIC Public Assistance
Department, 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A.
Rufino St., Makati City. The prescribed Claim Form against the
assets of the closed bank may be downloaded from the PDIC website,
www.pdic.gov.ph.

Claims filed after May 7, 2018 shall be disallowed. PDIC, as
Receiver, shall notify creditors of denial of claims through mail.
Claims denied or disallowed by the PDIC may be filed with the
liquidation court within sixty (60) days from receipt of final
notice of denial of claim.

In addition, PDIC said that depositors with account balances of
more than the MDIC of PHP500,000 who have already filed claims for
the insured portion of their deposits are deemed to have filed
their claims for the uninsured portion or the amount in excess of
the MDIC.

PDIC, as Receiver of closed banks, requires personal data from
creditors to be able to process their claims and protects these
data in compliance with the Data Privacy Act of 2012.

Empire Rural Bank was ordered closed by the Monetary Board (MB) of
the Bangko Sentral ng Pilipinas on February 22, 2018 and PDIC, as
the designated Receiver, was directed by the MB to proceed with
the takeover and liquidation of the closed bank in accordance with
Section 12(a) of Republic Act No. 3591, as amended. The bank is
located at 154 C.M. Recto Avenue, Poblacion Barangay 4, Lipa City,
Batangas.

All requests and inquiries relating to Empire Rural Bank shall be
addressed to the PDIC Public Assistance Department through mail at
the 6th Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino
St., Makati City, or through telephone numbers (02) 841-4630 or
841-4631. Depositors and creditors outside Metro Manila may call
the PDIC Toll Free Hotline at 1-800-1-888-PDIC (7342). Walk-in
clients may also visit the PDIC Public Assistance Center at the
3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St.,
Makati City, Monday to Friday, 8:00 AM to 5:00 PM.


RURAL BANK OF LORETO: Creditors' Claim Deadline Set for April 24
----------------------------------------------------------------
Creditors of the closed Rural Bank of Loreto (Surigao del Norte),
Inc. have until April 24, 2018 only to file their claims against
the bank's assets. Claims filed after said date shall be
disallowed. Creditors refer to any individual or entity with a
valid claim against the assets of the closed Rural Bank of Loreto
and include depositors with uninsured deposits that exceed the
maximum deposit insurance coverage (MDIC) of PHP500,000.

The Philippine Deposit Insurance Corporation (PDIC), the
liquidator of the closed Rural Bank of Loreto, announced that
creditors of the closed bank may file their claims personally at
the PDIC Public Assistance Center located at the 3rd Floor, SSS
Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City,
Monday to Friday, 8:00 AM to 5:00 PM, except holidays. Creditors
also have the option to file their claims through mail addressed
to the PDIC Public Assistance Department, 6th Floor, SSS Bldg.,
6782 Ayala Avenue corner V.A. Rufino St., Makati City. The
prescribed Claim Form against the assets of the closed bank may be
downloaded from the PDIC website, www.pdic.gov.ph. The Corporation
also reiterated that creditors should transact only with
authorized PDIC personnel.

In case claims are denied, creditors shall be notified officially
by PDIC through mail. Claims denied or disallowed by the PDIC may
be filed with the liquidation court within sixty (60) days from
receipt of final notice of denial of claim.

In addition, PDIC said that depositors with account balances of
more than the MDIC of PHP500,000 who have already filed claims for
the insured portion of their deposits are deemed to have filed
their claims for the uninsured portion or the amount in excess of
the MDIC.

PDIC, as Receiver of closed banks, requires personal data from
creditors to be able to process their claims and protects these
data in compliance with the Data Privacy Act of 2012.

Rural Bank of Loreto was ordered closed by the Monetary Board (MB)
of the Bangko Sentral ng Pilipinas on February 9, 2018 and as the
designated Receiver, PDIC was directed by the MB to proceed with
the takeover and liquidation of the closed bank in accordance with
Section 12(a) of Republic Act No. 3591, as amended. The bank's
Head Office is located in Purok 1, Brgy. San Juan, San Jose,
Dinagat Islands. Its three other banking offices (OBOs) are
located in Cagdianao, Libjo (Albor), and Loreto, all in Dinagat
Islands.

All requests and inquiries relating to the closed Rural Bank of
Loreto should be addressed to the PDIC Public Assistance
Department through mail at the 6th Floor, SSS Bldg., 6782 Ayala
Avenue corner V.A. Rufino St., Makati City, or through telephone
numbers (02) 841-4630 or 841-4631. Depositors and creditors
outside Metro Manila may call the PDIC Toll Free Hotline at 1-800-
1-888-PDIC (7342). Walk-in clients may also visit the PDIC Public
Assistance Center at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue
corner V.A. Rufino St., Makati City, Monday to Friday, 8:00 AM to
5:00 PM, except holidays.



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


TREK 2000: Auditors Flag Disclaimer of Opinion
----------------------------------------------
Jamie Lee at The Business Times reports that TREK 2000
International on March 27 said its auditors have flagged a
disclaimer of opinion over its financial results for the year
ended Dec 31, 2017.

Its independent auditors Moore Stephens said it was unable to
perform the necessary procedures to determine if the financial
statements of Racer Group are in form, the report says. The
company sold Racer Group in 2017, resulting in a net loss on
disposal of US$1.3 million.

The Business Times relates that the company has also appointed an
external professional firm to conduct an independent review into
the inconsistencies in accounting records and certain past
transactions of the group. The Commercial Affairs Department is
conducting its investigations into the affairs of the company as
well. Both the review and the investigations are ongoing.

"Consequently, we were unable to ascertain the extent of the
adjustments and/or additional disclosures, if any, that may arise
from the ongoing reviews and investigations, on the financial
statements for the current year ended Dec 31, 2017 and preceding
years," the auditors, as cited by The Business Times, said.

Singapore-based Trek 2000 International Limited provides digital
compression based technology system solutions as well as
customized engineering solutions. The Company also deals in
electrical and electronics appliances and components, research and
developing computer hardware, software and other related products.



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


KUMHO TIRE: Tirebank to Join Bid to Acquire Tiremaker
-----------------------------------------------------
Yonhap News Agency reports that Tirebank, a midsized South Korean
tire retailer, said on March 27 that it will join the bid to
acquire Kumho Tire Co., which China's Qingdao Doublestar Co. seeks
to take over from creditors.

At a press conference in Daejeon, about 160 kilometers south of
Seoul, the company's chief Kim Jeong-kyu said the company "has
decided to push for the takeover of Kumho Tire as it cannot sit by
and do nothing as the tiremaker is pushed toward a Chinese
company," according to Yonhap.

Yonhap relates that the chairman said Tirebank is the "right
company" that can help put Kumho Tire back on track as the company
can boost sales through its nationwide tire sales network.

After listening to creditors, Kumho Tire's union and public
opinion, Tirebank will make a final decision on the acquisition,
he said, Yonhap relays.

According to Yonhap, Kumho Tire's union immediately welcomed
Tirebank's offer to acquire the financially troubled tiremaker as
union workers believe an acquisition by a Korean company will
guarantee job security and prevent the taking of technologies.

Yonhap relates that in protest against the creditors' plan to sell
Kumho Tire to Doublestar, however, the union said it will go on
strike on March 30 at the company's three domestic plants.
Creditors said the company and its union must agree on the planned
sale to Doublestar by Friday or face a court receivership.

In a regulatory filing with the Financial Supervisory Service,
however, Kumho Tire said it has not received any takeover bid from
domestic companies that include Tirebank, says Yonhap.

Yonhap notes that Kumho Tire's main creditor, Korea Development
Bank, now seeks to sell the tiremaker to Doublestar, but the union
has been resistant to the decision due mainly to concerns of
massive job cuts after the acquisition.

Doublestar offered to invest KRW646.3 billion (US$603 million) in
new Kumho Tire shares and invest KRW200 billion in the tiremaker's
plants while guaranteeing three years of job security for current
workers, Yonhap relays.

In a letter sent to Kumho Tire workers on March 27, Doublestar
Chairman Chai Yongsen reiterated the Chinese truck and bus
tiremaker will guarantee Kumho Tire's independent management, seek
a win-win partnership between the two companies and respect
existing labor-management agreements, according to Yonhap.

"By acquiring Kumho Tire, Doublestar aims to seek co-prosperity
and to become a global top-10 tiremaker through close
cooperation," the report quotes Mr. Chai as saying in a press
conference in Seoul last week. "Kumho Tire will focus on mid- and
high-end tires for passenger vehicles, and Doublestar will focus
on mid- and low-end tires for trucks and buses."

Kumho Tire Co. Ltd. manufactures tire.  The company's offerings
include tires for sports utility vehicles, passenger cars,
various sizes of trucks and buses and racing cars.  In addition,
the company provides batteries for automobiles.  The company is
part of the Kumho Asiana Group.



                             *********

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.



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