/raid1/www/Hosts/bankrupt/TCRAP_Public/180507.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Monday, May 7, 2018, Vol. 21, No. 089


                            Headlines


A U S T R A L I A

BABY SAVINGS: Second Creditors' Meeting Set for May 14
BAKER FAMILY: First Creditors' Meeting Scheduled for May 16
CRAVEABLE BRANDS: Many Franchisees on "the Verge of Bankruptcy"
MOORE BASEBALL: First Creditors' Meeting Set for May 11
MPCD HOLDINGS: First Creditors' Meeting Set for May 14

PROJECT PLAN: First Creditors' Meeting Slated for May 14
TIMCOVE PTY: First Creditors' Meeting Set for May 17


C H I N A

CHINA AOYUAN: S&P Assigns 'B' Rating to New USD Unsecured Notes
GUANGYANG ANTAI: Fitch Withdraws BB-(EXP) Rating on Proposed Bond
YUZHOU PROPERTIES: S&P Rates New U.S. Dollar Unsecured Notes 'B+'


I N D I A

AKBARPUR NAGAR: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
ALPEX SOLAR: Ind-Ra Lowers Long Term Issuer Rating to 'D'
AMIT METALIKS: CARE Removes D Rating from Not Cooperating Cat.
ASSAM COMPANY: Insolvency Deadline Extended to July 23
AVEENA MILK: CARE Assigns B+ Rating to INR10cr LT Loan

BRINDHA COTTON: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
DEVASHISH POLYMERS: Ind-Ra Migrates B+ Rating to Non-Cooperating
DHRU MOTORS: Ind-Ra Hikes LT Issuer Rating to BB, Outlook Stable
EMKAY AUTOMOBILE: Ind-Ra Migrates BB LT Rating to Non-Cooperating
G. HEMANTH: CARE Assigns B+ Rating to INR2.25cr LT Loan

GANGA SRIRAM: CRISIL Reaffirms B Rating on INR3MM Cash Loan
GTP MINMET: CRISIL Assigns 'B' Rating to INR45MM LT Loan
GUPTA FOODS: CRISIL Withdraws B+ Rating on INR9.5MM Cash Loan
HIND FLUID: CARE Assigns B+ Rating to INR9cr Long-Term Loan
HKR ROADWAYS: Ind-Ra Affirms D LT Issuer Rating, Outlook Stable

HMR STEELS: Ind-Ra Affirms 'B+' LT Issuer Rating, Outlook Stable
IRC CONCRETE: CARE Assigns B+ Rating to INR4.87cr LT Loan
JAJOO SURGICALS: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
KARAMHANS FOODS: CARE Assigns B+ Rating to INR10cr LT Loan
KAVERI ENGINEERING: Ind-Ra Migrates BB Rating to Non-Cooperating

KLASSIK LAMITEX: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating
KNOWLEDGE EDUCATION: Ind-Ra Maintains D Rating in Non-Cooperating
KSL AND INDUSTRIES: Allahabad Bank Files Insolvency Bid vs. Firm
LANCO INFRATECH: Administrator to File for Potential Liquidation
MAA ANNAPURNA: CARE Reaffirms B+ Rating on INR12.73cr LT Loan

MAA MANI: CARE Assigns B+ Rating to INR15cr LT Loan
MAHAVISHNU CASHEW: CRISIL Assigns B+ Rating to INR1MM Loan
MURLIWALA STONE: CARE Assigns B Rating to INR5cr Long-Term Loan
NATRAJ ELECTRO: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating
NAVKAR WHEELS: CRISIL Assigns B+ Rating to INR4.9MM Term Loan

NORTHWAY INFRATECH: Ind-Ra Migrates BB- Rating to Non-Cooperating
P.K. METAL: CARE Assigns B+ Rating to INR6.71cr LT Loan
PERMALI WALLACE: CARE Assigns B Rating to INR24.61cr LT Loan
PHOSPHATE COMPANY: Ind-Ra Assigns 'BB' Issuer Rating
PODDAR CAR: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable

RADHAKANTA HIMGHAR: CARE Assigns B+ Rating to INR5.05cr Loan
SAMRAT MULTIPLEX: CARE Assigns B+ Rating to INR10cr LT Loan
SARAF TRADING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
SHALIMAR ISPAT: CARE Assigns B+ Rating to INR6.0cr LT Loan
SHIVA COTTON: Ind-Ra Maintains B+ Rating in Non-Cooperating

SHIVA SHREE: CRISIL Migrates B- Rating to Not Cooperating Cat.
SHOBHA RICE: CRISIL Moves B+ Rating to Not Cooperating Category
SLK PROGRESSIVE: CRISIL Reaffirms B+ Rating on INR2.0MM Loan
SRI MUTHUMARI: CRISIL Reaffirms D Rating on INR7MM Term Loan
STALLION INVESTMENTS: Ind-Ra Withdraws BB Long Term Issuer Rating

STAR WIRE: CARE Assigns 'B' Rating to INR42cr LT Loan
SURANA META: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating
SUPREME AHMEDNAGAR: Ind-Ra Migrates 'D' Rating to Non-Cooperating
SUPREME BEST: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
SUPREME INFRAPROJECTS: Ind-Ra Moves D Rating to Non-Cooperating

SUPREME KOPARGAON: Ind-Ra Migrates 'D' Rating to Non-Cooperating
SUPREME PANVEL: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
SUPREME SUYOG: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
TILECO NATURAL: CARE Assigns B Rating to INR3.86cr LT Loan
VIJAYALAKSHMI HYDRO: Ind-Ra Migrates D Rating to Non-Cooperating


I N D O N E S I A

LIPPO KARAWCI: Fitch Downgrades IDR to B & Places Ratings on RWN


M A L A Y S I A

MALAYSIAN NEWSPRINT: Hong Leong, Other Shareholders Sell Shares


N E W  Z E A L A N D

CHALLENGE STEEL: Secured Creditors Receive NZ$6,727 Payments
NATIVE PLANT: Goes Into Receivership; 35 Jobs at Risk


S I N G A P O R E

AVATION PLC: Fitch Ups IDRs to 'BB-' & Removes Rating Watch Pos.
AVATION PLC: S&P Affirms B+ Issuer Credit Rating, Outlook Pos.


                            - - - - -


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


BABY SAVINGS: Second Creditors' Meeting Set for May 14
------------------------------------------------------
A second meeting of creditors in the proceedings of Baby Savings
Pty Ltd has been set for May 14, 2018, at 10:00 a.m. at Level 19,
207 Kent Street, in Sydney, NSW.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 11, 2018, at 4:00 p.m.

Barry Anthony Taylor and Todd Andrew Gammel of HLB Mann Judd were
appointed as administrators of Baby Savings on April 6, 2018.


BAKER FAMILY: First Creditors' Meeting Scheduled for May 16
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Baker
Family Investments No. 1 Pty Ltd will be held at Unit 11A, Lakes
Vista Office Park, 2 Flinders Parade, in North Lakes, Queensland,
on May 16, 2018, at 10:30 a.m.

Paul Nogueira of Worrells Solvency was appointed as administrator
of Baker Family on May 4, 2018.


CRAVEABLE BRANDS: Many Franchisees on "the Verge of Bankruptcy"
---------------------------------------------------------------
SmartCompany reports that submissions to a Senate inquiry into
franchising have slammed the sector's national code of conduct,
with franchisees at Red Rooster operator Craveable Brands emerging
as another group in the franchising space claiming they are "in
distress".

According to SmartCompany, Senator John Williams secured a Senate
review of the franchising sector in March after a range of high-
profile stories of challenges in the space, from underpayments to
company collapses. So far, a range of parties have made their
voices heard through submissions to the inquiry, with everyone
from academic experts to franchise operators claiming the legal
framework for franchising doesn't protect franchisees in the way
that the legislation is intended, the report says.

SmartCompany relates that the franchisee association of food
business Craveable has provided one of the more emotive
submissions so far.  The report says the group has claimed many
franchisees are on "the verge of bankruptcy" due to a range of
challenges including the cost of goods and rebates, the impact of
customer loyalty programs and the pressure caused by the company's
introduction of food delivery services.

SmartCompany says the franchisee association has submitted to the
Senate that their franchisor has failed to act in good faith in
its communication with franchisees and that many are on the brink
thanks to the company's high cost of goods, which it says comes in
at 38% of sales.

The report relates that the franchisees also accuse the company of
poor planning in its food delivery initiative, which began two
years ago. In 2016, Red Rooster chief executive Chris Green told
SmartCompany, "Delivery is the most amazing thing that could have
happened to Red Rooster" and that it would contribute to big sales
growth.

Some franchisees have claimed that they were "pressurised" into
introducing delivery into their stores, which has led to
"cannabilisation" of in-store sales and "cash flow issues for
franchisees," the report relays.

SmartCompany has contacted Craveable Brands for comment on the
claims. The company did not provide comment prior to publication,
however, a spokesperson for the company has told Fairfax it
rejects the suggestion there is widespread discontent among its
franchise operators.

"It contains several inaccurate claims that omit vital context
about the operation of the broader franchise system," the
spokesperson, as cited by SmartCompany, said of the submission.

Craveable Brands is backed by Archer Capital and operates 570
Australian stores across the Red Rooster, Oporto and Chicken Treat
brands.


MOORE BASEBALL: First Creditors' Meeting Set for May 11
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Moore
Baseball Pty Limited will be held at the offices of CRS Insolvency
Services, Level 5, 379 Kent Street, in Sydney New South Wales, on
May 11, 2018, at 11:30 a.m.

Anthony John Warner of CRS Insolvency Services was appointed as
administrator of Moore Baseball on May 4, 2018.


MPCD HOLDINGS: First Creditors' Meeting Set for May 14
------------------------------------------------------
A first meeting of the creditors in the proceedings of MPCD
Holdings Pty Ltd will be held at the offices of Australian
Institute of Company Directors, Level 26, 367 Collins Street, in
Melbourne, Victoria, on May 14, 2018, at 11:00 a.m.

Domenico Alessandro Calabretta of Mackay Goodwin was appointed as
administrator of MPCD HOLDINGS on May 3, 2018.


PROJECT PLAN: First Creditors' Meeting Slated for May 14
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Project
Plan Pty Ltd will be held at     Level 1, 14 Watt Street, in
Newcastle, NSW, on May 14, 2018, at 10:00 a.m.

Bradd William Morelli of Jirsch Sutherland was appointed as
administrator of Project Plan on May 2, 2018.


TIMCOVE PTY: First Creditors' Meeting Set for May 17
----------------------------------------------------
A first meeting of the creditors in the proceedings of Timcove Pty
Ltd will be held at Level 1, 15 Lake Street, in Cairns,
Queensland, on May 17, 2018, at 10:00 a.m.

Todd William Kelly of BDO was appointed as administrator of
Timcove Pty on May 4, 2018.



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


CHINA AOYUAN: S&P Assigns 'B' Rating to New USD Unsecured Notes
---------------------------------------------------------------
S&P Global Ratings said it has assigned its 'B' long-term issue
rating to a proposed issuance of U.S. dollar-denominated senior
unsecured notes by China Aoyuan Property Group Ltd. (B+/Stable).
The issue rating is subject to S&P's review of the final issuance
documentation.

S&P said, "We rate the senior unsecured notes one notch lower than
the issuer credit rating because of subordination risk. The
proposed notes will rank behind a material amount of secured debt
and subsidiary-level debt in Aoyuan's capital structure. As of
Dec. 31, 2017, the company had around Chinese renminbi (RMB) 22
billion of secured borrowings and RMB5.9 billion of unsecured debt
at the subsidiary level, together comprising around 70% of total
reported debt.

The company intends to use the proceeds from the proposed notes to
refinance its existing debt, including the 10.875% 2015 senior
notes maturing in May 2018. S&P believes Aoyuan will continue to
improve its debt maturity profile and reduce its average funding
cost to below 7% in 2018, from 7.2% as of Dec. 31, 2017.

Aoyuan's debt-to-EBITDA ratio climbed to over 8x at the end of
2017 because the company's total debt more than doubled to surpass
RMB40 billion. S&P believes the spike in leverage is temporary,
and expects that the debt-to-EBITDA ratio will return to 6x by
end-2018, in line with its base-case expectation.

This view reflects Aoyuan's good revenue visibility in 2018 based
on RMB51.6 billion of unrecognized contracted sales and the
company's significantly larger cash inflow from sales. During the
first four months of 2018, Aoyuan achieved contracted sales of
RMB20.8 billion, representing a year-on-year increase of 143%.


GUANGYANG ANTAI: Fitch Withdraws BB-(EXP) Rating on Proposed Bond
-----------------------------------------------------------------
Fitch Ratings has withdrawn the 'BB-(EXP)' expected rating on
Guangyang Antai Holdings Limited's (BB-/Stable) proposed US dollar
senior notes. The notes were to have been issued by Guangyang
Antai (HK) Co., Ltd., a wholly owned subsidiary of Guangyang
Antai. The expected rating was assigned on March 8, 2018.

KEY RATING DRIVERS

Fitch has withdrawn the expected rating as Guangyang Antai's
proposed debt issuance is no longer expected to convert to final
ratings.

DERIVATION SUMMARY

Not applicable.

KEY ASSUMPTIONS

Not applicable.

RATING SENSITIVITIES

Not applicable as the rating has been withdrawn.

LIQUIDITY

Not applicable.


YUZHOU PROPERTIES: S&P Rates New U.S. Dollar Unsecured Notes 'B+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issue rating to a
proposed issue of U.S. dollar-denominated senior unsecured notes
by Yuzhou Properties Co. Ltd. (BB-/Stable).

The issue rating is one notch lower than the long-term issuer
credit rating on the Chinese property developer to reflect the
structural subordination risk. Yuzhou intends to use the net
proceeds primarily to refinance the existing debts, and to a
lesser extent for general corporate purposes. The rating is
subject to our review of the final issuance documentation.

In 2017, Yuzhou deleveraged materially, as S&P expected. The
company's debt-to-EBITDA ratio improved to below 4.5x from 6.0x in
2016, thanks to fast revenue growth (up 59%) and robust margin. In
2018, Yuzhou faces a heavier refinancing schedule and holds
significantly more short-term debt at Chinese renminbi (RMB) 16.7
billion (which includes sizable corporate bonds puttable during
the year), compared with RMB4.8 billion last year. Despite tighter
credit conditions in China, S&P believes the company's liquidity
pressure should be manageable given its steady sales growth and
sizable cash holdings.

S&P said, "The stable outlook reflects our view that Yuzhou's
sales will expand robustly over the next 12 months, and its
margins will remain above average. We also expect the company to
maintain financial discipline during this expansion and improve
its leverage over the next 12 months."



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


AKBARPUR NAGAR: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Akbarpur Nagar
Palika Parishad's Long-Term Issuer Rating of 'IND BB'. The Outlook
was Stable.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the rating, as the issuer
rating was assigned under Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) programme and no specific debt was issued
against the rating.

COMPANY PROFILE

Akbarpur is a city and a municipal board in Ambedkar Nagar
district in the state of Uttar Pradesh, India. It is the
administrative headquarters of Ambedkar Nagar District. Akbarpur
has many rice mills; the biggest one being Gaurav Agro Industries
Pvt. Ltd.


ALPEX SOLAR: Ind-Ra Lowers Long Term Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Alpex Solar
Private Limited's (ASPL, formerly known as Alpex Exports Private
Limited) Long-Term Issuer Rating to 'IND D' from 'IND BBB- (ISSUER
NOT COOPERATING)'.

The instrument-wise rating actions are:

-- INR120 mil. Fund-based working capital limit (Long-
    term/Short-term) downgraded with IND D rating;

-- INR80 mil. Proposed fund-based working capital limit (Long-
     term/Short-term) downgraded with Provisional IND D rating;

-- INR250 mil. Non-fund-based working capital limit (Short-term)
     downgraded with IND D rating; and

-- INR150 mil. Proposed non-fund-based working capital limit
     (Short-term) downgraded with Provisional IND D rating.

KEY RATING DRIVERS

The downgrade reflects ASPL's continuous overdrawing of the fund-
based limits for over 30 days during December 2017 - March 2018,
due to tight liquidity.

RATING SENSITIVITIES

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

COMPANY PROFILE

Incorporated in 1993, ASPL manufactures photovoltaic solar panels,
solar modules, solar power projects, solar mobile tower solutions,
frame-less solar modules, among others. ASPL is the also the sole
distributor for Samsung Knitting Needles Company Limited's
knitting needles in north India.


AMIT METALIKS: CARE Removes D Rating from Not Cooperating Cat.
--------------------------------------------------------------
CARE Ratings said the ratings assigned to the bank facilities of
Amit Metaliks Limited (AML) takes into account overdrawal in the
cash credit account for more than 30 days and the ratings further
continues to be constrained by small scale of operations, low
profitability margin due to intense competition and high
proportion of trading sales, deterioration in performance in FY17
(refers to period from April 1 to March 31), moderate financial
risk profile, profitability susceptible to volatility in raw
material prices, working capital intensive nature of operation and
cyclicality associated with the steel industry.

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank
   Facilities          105.27       CARE D Reaffirmed and removed
                                    From 'ISSUER NOT COOPERATING'

   Short term Bank
   Facilities           10.50       CARE D Reaffirmed and removed
                                    From 'ISSUER NOT COOPERATING'

However, the ratings continue to derive comfort from experienced
promoters, strategic location of manufacturing unit and contract
manufacturing agreement with Steel Authority of India Limited
(SAIL). Going forward, the ability of the company to regularize
cash credit account and sustain the current level of operating
margin in the future would continue to remain the key rating
sensitivities.

Key Rating Weaknesses

Overdrawal in cash credit account: There are overdrawal in the
cash credit for more than 30 days account.

Small scale of operation: AML is relatively a small player in
manufacturing of sponge and billet with installed capacity of
57,600 MTPA and 1,50,000 MTPA respectively. The small size
deprives from the benefits of economies of scale and restricts the
financial flexibility of the company in times of stress.

Low profitability margin due to intense competition and high
proportion of trading sales: The industry in which AML operates is
characterized by high fragmentation mainly due to presence of a
large number of unorganized players. Further, high proportion of
trading sales also pulls down the
operating margin of AML.

Profitability susceptible to volatility in raw-material prices: As
the prices of raw-material are highly volatile in nature, the
profitability of the company is susceptible to volatility in raw-
material prices.

Working capital intensive nature of operation: AML operation is
working capital intensive in nature as it has to offer high credit
period to its customer due to intense competition in the industry
and has a policy to maintain certain inventory for smooth running
of operation.

Deterioration in financial performance in FY17: AML's total
operating income declined by ~20% y-o-y to INR443.06 crore in FY17
(as against INR556.99 crore in FY16) mainly due to lower sales
during the demonetization period. PBILDT margin slightly
deteriorated from 4.74% in FY16 to 4.65%. Lower PBILDT coupled
with relatively stable interest cost led to deterioration in
Interest coverage ratio from 1.65x in FY16 to 1.40x in FY17.
In 10MFY18, AML reported PAT of INR4.76 crore on total operating
income of INR381.87 crore.

Moderate financial risk profile: The overall gearing slightly
improved from 1.59x as on March 31, 2016 to 1.37x as on March 31,
2017. However, the capital structure of AML continued to remain
moderate due to deterioration in Total Debt/ GCA from 11.70x as on
March 31, 2016 to 16.83x as on March 31, 2017 on the back of lower
cash accruals in FY17. The liquidity position of the company also
remained tight.

Cyclicality associated with the steel industry: The steel industry
is sensitive to the shifting business cycles, including changes in
the general economy, interest rates and seasonal changes in the
demand and supply conditions in the market. Apart from the demand
side fluctuations, the highly capital intensive nature of steel
projects along-with the inordinate delays in the completion impact
the responsiveness of supply side to demand movements. This
results in several steel projects bunching-up and coming on stream
simultaneously leading to demand supply mismatch. Furthermore, the
producers of steel products are essentially price-takers in the
market, which directly expose their cash flows and profitability
to volatility of the steel industry.

Key Rating Strengths

Experienced promoters: AML belongs to Amit Group, promoted by Mr.
Amit Kumar Singh who is an IIT graduate. He has around a decade
experience in the manufacturing & trading of steel and related
products. Strategic location of manufacturing unit: AML avails
operational advantages from its strategic location due to
proximity of plant to source of raw-materials and customers.

Contract manufacturing agreement with SAIL: AML has renewed the
contract manufacturing agreement with SAIL for 4 years in Sep
2016, wherein the latter would provide the billet and the former
would convert billet into TMT bars for a certain conversion fee.

Incorporated in 2004, Amit Metaliks Limited (AML; erstwhile known
as Dutta Iron & Steel Pvt Ltd) was acquired by Shri Amit Kumar
Singh and his two brothers from the erstwhile promoters in
September 2007 for setting up a billet facility (with capacity of
57,600 MTPA) at Durgapur, West Bengal. The plant commenced
operation in June 2008. In October 2010, AML commissioned a
rolling mill for manufacturing TMT Bars/MS Rounds with an
installed capacity of 88,510 TPA. In FY14, the company further
increased its rolling mill capacity to 1,50,000 TPA. The company
markets its TMT bars under the brand name of 'TRIAM' and
'Trishakti' in West Bengal, Jharkhand, Bihar and eastern part of
Uttar Pradesh. The company is also engaged in the trading of steel
products.


ASSAM COMPANY: Insolvency Deadline Extended to July 23
------------------------------------------------------
The Hindu reports that the National Company Law Tribunal's
Guwahati Bench has extended the last date for the corporate
insolvency process for Assam Company (India) Ltd. to July 23,
2018.

This is the first major tea company to face insolvency
proceedings. Significantly, industry players have expressed
apprehension that other tea companies may also face similar
proceedings, the report says.

ACIL has tea and oil and gas business with 16 gardens in Assam,
with an output of 11.1 million kg recorded in 2016, which dropped
to 9.7 million kg in 2017, the report discloses. A similar drop
was also evident in ACIL's revenue for the nine-month period
ending December 2017 when revenues stood at INR153 crore against
INR190 crore a year ago. Losses widened to INR42.7 crore against
INR16.5 crore a year ago. According to the Hindu, the liquidation
proceedings are under the National Company Law Tribunal's Guwahati
Bench. The Hindu relates that sources said at least four big tea
companies, with gardens in Assam and West Bengal, and a
petrochemical firm had filed expressions of interest with the
Resolution Professional.

The Hindu relates that Dhunseri Tea chairman C.K. Dhanuka said
this would help his company expand its presence. Dhunseri has
gardens in Assam and Malawi in Africa, with total production of 21
million kg. Vinay Goenka, chairman, Warren Tea, too confirmed his
firm's interest.

Tea Board Chairman Prabhat K. Bezboruah, also the MD of Bokahola
Tea Company, said the organised tea sector was facing challenges.
A recent paper on the Assam industry by the Consultative Committee
of Plantation Associations said cost increases had outpaced the
growth in prices and that this posed a major challenge, the Hindu
relays.

"There is a viability issue as prices have not risen in tandem
with operational costs of production," the report quotes Arijit
Raha, secretary general of the Indian Tea Association, as saying.

However, some industry veterans, speaking on conditions of
anonymity, said the industry, on its part too, had failed to raise
yields. While a few more big firms may face bankruptcy
proceedings, the trend was unlikely to become pervasive, they
said, the Hindu relays.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 6, 2017, the Economic Times said the National Company Law
Tribunal has ordered corporate insolvency resolution process
against Assam Company India for defaulting INR596 crore in
payments to Srei Infrastructure.

Assam Company India Limited is an India-based company engaged in
tea cultivation and manufacturing. The Company's segments include
Plantations, Oil and Gas, Special Economic Zone (SEZ) and Others.
The Company's geographical segments include within India and
outside India. The Company has approximately 14 tea estates and
over three oil blocks, in the State of Assam. The Company's tea
estates are located in Doom Dooma, Tinsukia, Dibrugarh, Moran,
Jorhat and Nagaon. The Company's oil and gas blocks are Amguri
and AAONN-2005/1 in Assam and AA-ON/7 in Assam and Nagaland.


AVEENA MILK: CARE Assigns B+ Rating to INR10cr LT Loan
------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Aveena
Milk Products (AMP), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           10.00      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of AMP are primarily
constrained by its short track record and small scale of
operations, leveraged capital structure. The rating is further
constrained by project completion and stabilization risk,
susceptibility to adverse regulatory changes and seasonal nature
of operations and highly competitive nature of the industry. The
rating, however, draws comfort from experienced promoter and
strategic tie-up with BANAS Dairy for processing and packing of
milk under the brand "AMUL". Going forward; ability of AMP to
achieve the envisaged revenue and profitability while improving
its capital structure shall remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record and small scale of operations: AMP commenced
operations in April, 2017 and has less than 1 year of track record
of operations in milk processing business as compared with other
established players. The scale of operations stood small marked by
a total operating income (TOI) of INR7.59 crore for 8MFY18 (refers
to the period April 01 to November 30, based on provisional
results). Small scale limits the firm's financial flexibility in
times of stress and deprives it of scale benefits.

Leveraged capital structure: As on November 30, 2017, the company
had debt mainly in form of term loans and unsecured loans. The
capital structure stood highly leveraged at above 6x mainly on
account of debt funded capital expansion undertaken to set up the
new manufacturing facility.

Susceptibility to adverse regulatory changes: The raw material
comprising of raw milk formed nearly 80% of total cost of sales in
FY17. The price of the raw material is sensitive to changes in
government policies which in turn makes profitability margins of
the company vulnerable towards government policies. Also, milk
supply and its prices are exposed to external risk like cattle
diseases on which the dairy companies do not have any direct
control and therefore, any fluctuation in prices of milk will have
a direct impact on the profitability margins of the company.

Seasonal nature of operations and highly competitive nature of the
industry: India being a tropical country renders a hot and humid
climate for the animals and thus fluctuations in the milk
production. There is a flush season in the cooler parts of the
year whereas the production goes down in the warmer months. The
milk processing and milk products manufacturing companies converts
the surplus milk during November-April (flush season) into ghee,
skimmed milk powder, etc. to maintain the continuous supply of
milk products round the year. This leads to increased working
capital requirement during the period leading to high overall
gearing at year end.

AMP operates in a highly competitive industry wherein there is
presence of a large number of players in the unorganized and
organized sectors. There are a number of small and regional
players catering to the same market which has limited the
bargaining power of the company and has exerted pressure on its
margins.

Key Rating Strengths

Experienced partner: The firm is being managed by Mr. Avdesh
Mittal, Partner. He is a chartered accountant and a law graduate
by qualification and has a wide experience of around three decades
in dairy farming business through his association with Hrishikesh
Farms Private Limited (incorporated in September, 2012) and other
sister concerns.

Strategic Tie up with BANAS Dairy for processing and packaging of
milk for "AMUL": AMP has entered in the tripartite agreement with
BANAS Dairy and Gujarat Cooperative Milk Marketing Federation
Limited, for processing/pasteurization and packaging of milk and
milk products of at least 1 lakh liter per day (LLPD). The
agreement provides revenue visibility and offset the salability
risk associated with the products in the light of competitive
nature of industry. The tripartite agreement for processing and
packaging of milk for "AMUL" provides revenue visibility in the
short to medium term for the company. The strategic tie-up enables
uninterrupted manufacturing process and stable revenue generation
for AMP.

Delhi based, Aveena Milk Product (AMP) is a partnership firm
established in January, 2014 and commenced its operations in
April, 2017. The current partners are Mr. Avdesh Mittal and
Hrishikesh Farms Private Limited sharing profit and losses in the
ratio 99:1. AMP was established with an aim to operate a milk
dairy plant. The dairy unit is located in Bhagwanpur, Uttarakhand
having capacity to process 1 lakh liter of milk per day.


BRINDHA COTTON: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Brindha Cotton
Mills Private Limited Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
surveillance exercise, despite continuous requests and follow-ups
by the agency. Therefore, investors and other users are advised to
take appropriate caution while using these ratings. The rating
will now appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions are:

-- INR16.7 mil. Term loan (Long-term) due on September 2019
     migrated to Non-Cooperating Category with IND D (ISSUER NOT
     COOPERATING) rating;

-- INR80.0 mil. Fund-based working capital limits (Long-
     term/Short-term) migrated to Non-Cooperating Category with
     IND D (ISSUER NOT COOPERATING) rating; and

-- INR9.0 mil. Non-fund-based working capital limits (Short-
    term) migrated to Non-Cooperating Category with IND D (ISSUER
    NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 23, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Brindha was incorporated in 2000 by Mr. P V Mahadeva Raja, who is
also the managing director of the firm. It was initially began
operations as a partnership firm. The company is involved in
spinning, weaving and finishing of textiles.


DEVASHISH POLYMERS: Ind-Ra Migrates B+ Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Devashish
Polymers Pvt Ltd.'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 B+ (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:

-- INR12.5 mil. Fund-based limit migrated to Non-Cooperating
     Category with IND B+ (ISSUER NOT COOPERATING) rating; and

-- INR37.5 mil. Term loan due on December 2023 migrated to Non-
     Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 15, 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 1996, Devashish Polymers manufactures rubber
compounds at its installed capacity of 200 metric tons/year. It is
managed by Mr. Chandrakant Satyanarayan Mody and his family.


DHRU MOTORS: Ind-Ra Hikes LT Issuer Rating to BB, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded M/s Dhru Motors'
Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is
Stable.

The instrument-wise rating actions are:

-- INR345 mil. (increased from INR215 mil.) Fund-based
    facilities Long-term rating upgraded; short-term rating
    affirmed with IND BB/Stable/IND A4+ rating.

KEY RATING DRIVERS

The upgrade reflects a change in Dhru Motors' business model, and
a substantial improvement in its scale of operation due to a
stable demand for passenger vehicles and customer preferences for
high-end cars. The firm set up a new showroom (NEXA Brand) in
March 2017 and a true-value center in December 2017 in Surat.
According to provisional FY18 numbers, revenue improved 42.1% yoy
to INR2,174.0 million (FY17: INR1,530 million). As of April 2018,
it had an order book of INR133 million, to be executed by May
2018. Ind-Ra expects the revenues to show stable growth in FY19,
backed by a strong order book and addition of outlets in Surat.

Also, EBITDA interest coverage (operating EBITDA/gross interest
expense) improved to 1.6x in 9MFY18 (FY17: 1.5x) due to an
increase in absolute EBITDA to INR65 million (INR49 million) while
net leverage deteriorated (adjusted net debt/operating EBITDAR) to
4.0x in FY17 (FY16: 3.7x) due to an increase in working capital
debt taken for the capex. EBITDA margin deteriorated marginally to
3.0% in 9MFY18 (FY17: 3.2%) on account of an increase in employee
costs.

However, the company's financial and credit profiles remain
moderate due to intense competition in the automobile dealership
business.

The ratings factor in DM's moderate liquidity position with its
average utilization of the fund-based limits being 94% during the
12 months ended March 2018 and in the partnership form of the
organization.

The ratings are supported by DM being the authorized dealer of
Maruti Suzuki India Limited in Surat, Gujarat and its promoter's
experience of more than two decades in the field of auto
dealership business.

RATING SENSITIVITIES

Negative: A decline in the revenue and EBITDA margins, along with
any debt-funded capex, leading to deterioration in EBITDA interest
coverage, on a sustained basis, could be negative for the rating
action.

Positive: An increase in the revenue and EBITDA margins leading to
an improvement in the EBITDA interest coverage, on a sustained
basis, could be positive for the rating action.

COMPANY PROFILE

DM is a family owned partnership firm started in 1996. It is the
authorized dealer of Maruti Suzuki India. The firm is managed and
run by the promoter Mr. Nayan Intwala.


EMKAY AUTOMOBILE: Ind-Ra Migrates BB LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Emkay
Automobile Industries Limited's Long-Term Issuer Rating to 'IND
BB' from 'IND BBB'. The Outlook is Negative. The ratings have also
been migrated to the non-cooperating category. The issuer did not
participate in the surveillance exercise, despite continuous
requests and follow ups by the agency. Thus, the rating is based
on the basis of best available information. Investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND BB (ISSUER NOT
COOPERATING)' on the agency's website.

The instrument-wise rating actions are:

-- INR40 mil. Non-fund-based bank facilities downgraded and
     migrated to Non-Cooperating Category with IND BB (ISSUER NOT
     COOPERATING) /Negative/IND A4 (ISSUER NOT COOPERATING)
     rating; and

-- INR350 mil. Fund-based bank facilities downgraded and
    migrated to Non-Cooperating Category with IND BB (ISSUER NOT
    COOPERATING) /Negative/IND A4 (ISSUER NOT COOPERATING)
    rating.

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

Ind Ra had previously taken a consolidated view of Emkay and its
wholly-owned subsidiary Emkay Auto (Indore) Private Limited
(EAIPL) for the ratings. However in March 2018, Emkay divested its
stake in EAIPL and the latter is no more a subsidiary of Emkay.
Ind Ra, thus, has taken a stand alone view of the financial and
business profile of Emkay for the present rating exercise.
However, the agency continues to consider the corporate guarantee
aggregating INR60 million issued by Emkay in favor of the lenders
of EAIPL as a part of Emkay's adjusted debt.

KEY RATING DRIVERS

The downgrade and Negative Outlook reflect a lower-than expected
improvement in Emkay's credit profile  and a sustained decline in
revenue to INR1,736 million in FY17 (FY16: INR1,757 million, FY15:
INR1,903 million, FY14: INR2,072 million).

Net financial leverage (total adjusted net debt/operating EBITDAR)
stood at 5.1x in FY17 (FY16: 4.2x), compared with Ind-Ra's
expectation of below 4.2x. Interest coverage (operating
EBITDA/gross interest expense) stood at 1.6x in FY17 (FY16: 1.7x).
Net financial leverage was higher-than-expected due to a higher-
than-expected debt, driven by a longer working capital cycle.

The cycle was longer due to the slow liquidation of receivables
related to certain customers and the bulk procurement of raw
material at lower prices at year-end. This resulted in almost full
utilization of the working capital limits, with an average
utilization of 99.4% during the 12 months ended March 2018. Emkay
also had to avail unsecured loans at high interest costs to manage
its working capital requirements in FY17.

The rating downgrade also factors in Emkay's weakening corporate
governance and management risk profile. Key management personnel
and relatives of the directors on the board of Emkay faced
litigation after being declared willful defaulters by two public
sector banks.

RATING SENSITIVITIES

Negative: Further deterioration in the revenue or deterioration in
the working capital cycle, leading to an increase in the leverage
on a sustained basis could lead to a negative rating action.

COMPANY PROFILE

Emkay, a closely held company, commenced operations in 2000. It
manufactures various automobile components such as coil springs,
sheet metal, tubular components and forgings for the two-wheeler
and four-wheeler industries. Emkay has five manufacturing
facilities across India.  For FY17, the company reported net
income of INR12.7 million.


G. HEMANTH: CARE Assigns B+ Rating to INR2.25cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of G.
Hemanth Reddy (GHR), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           2.25        CARE B+; Stable Assigned

   Short-term Bank
   Facilities           7.75        CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of GHR are tempered by
small scale of operations, short term revenue visibility from
current order book position, working capital intensive nature of
operations, tender based nature of operations, highly fragmented
industry with intense competition from large number of players and
profitability margins are susceptible to fluctuation in raw
material prices. The ratings are, however, underpinned by long
track record of the firm and long experience proprietor in the
construction industry, increase in total operating income,
satisfactory profitability margins albeit fluctuating during
review period, financial risk profile marked by satisfactory
capital structure and debt coverage indicators and stable outlook
for construction industry.

Going forward, ability of the company to increase its scale of
operations and improve profitability margins in competitive
environment and manage the working capital requirements
effectively would be key rating sensitivities.

Detailed Description of the key rating drivers

Key Rating Weaknesses

Small scale of operations: The scale of operations of the firm is
relatively small marked by total operating income of INR50.98
crore in FY17 with low net worth base of INR6.36 crore as on
March 31, 2017 as compared to other peers in the industry.

Short term revenue visibility from current order book position:
The firm has an order book of INR10.30 crore as on January 31,
2018 and the same is likely to be completed by September 2019. The
said order book is related to construction of dams, roads, etc.
However, the orders in hand provide revenue visibility to the
company for short term.

Working capital intensive nature of operations: The operations of
the firm is working capital intensive since the firm is engaged in
civil construction works primarily for various government and
private authorities wherein receipt of payments for works
completed takes around 4-5 months. Furthermore, the work-in-
progress across locations increases average inventory period. The
operating cycle stood elongated at 160 days during FY17 due to
higher collection period days. The firm makes the payment to its
suppliers within a week. The average utilization of working
capital limit for the last 12 month ended i.e., January 31, 2018
remained at 95 per cent.

Tender based nature of operations: The company receives few of its
work orders from government organizations which are tender- based.
The revenues of the company are dependent on the ability of the
promoters to bid successfully for the tenders and execute the same
effectively. However, the promoter's long experience in the
industry for more than two decades mitigates the risk to an
extent. Nevertheless, there are numerous fragmented & unorganized
players operating in the segment which makes the industry highly
competitive. Furthermore, the profitability margins also come
under pressure because of competitive nature of the tender based
contract works of the firm.

Highly fragmented industry with intense competition from large
number of players: The company is engaged in civil construction
which is highly fragmented industry due to presence of large
number of organized and unorganized players in the industry
resulting in huge competition.

Key Rating Strengths

Long track record and experienced proprietor for more than two
decades in the construction industry: GHR was established in the
year 1994, hence, it has long track record. The proprietor of the
firm Mr. Hemanth Reddy, aged 49, has considerable experience in
the line of construction industry. The proprietor has established
good relationship with suppliers and customers due to long track
record and presence in the business for a long period of time.
Increase in total operating income during review period The total
operating income (TOI) of the firm has been increasing y-o-y basis
with CAGR of 16.47%. The total operating income of the firm
increased from INR32.27 crore in FY15 to INR50.98 crore in FY17 at
the back of execution of the current orders in hand coupled with
addition of new orders received by the firm. Furthermore, the firm
achieved gross billing of INR40 crore in 9MFY18.

Satisfactory profitability margins, although remained fluctuating
The firm has satisfactory profitability margins due to better
margins associated with projects under execution. However, the
PBILDT margin of the firm has been fluctuating in the range of
5.71%-7.16% during FY15-FY17 due to increased amount of fuel costs
and subcontract charges, as the firm subcontracts its part of the
works to other company. The PAT margin of the firm has also been
satisfactory although fluctuating in the range of 3.70%-4.18%
during FY15-FY17 due to fluctuating financial expenses depending
upon usage of working capital limits.

Financial risk profile marked by comfortable capital structure and
debt coverage indicators: The capital structure of the firm
remained comfortable during review period. Debt equity ratio and
overall gearing ratio of the firm remained below unity for the
last three balance sheet date ended March 31, 2017 on account of
increase in tangible net worth and accretion of profit. The debt
coverage indicators of the firm also remained comfortable during
review period. However, the total debt/GCA deteriorated from 1.43x
in FY15 to 2.50x in FY17 due to increase in debt levels on account
of higher outstanding balance of working capital facility as on
account of closing date and increase in term loans and vehicle
loans (used for purchase of machinery and vehicles). Furthermore,
the PBILDT interest coverage ratio declined from 12.63x in FY16 to
8.11x in FY17 due to increase in interest and financial expenses,
still remained satisfactory.

Stable outlook for construction industry: The construction
industry contributes around 8% to India's Gross domestic product
(GDP). Growth in infrastructure is critical for the development of
the economy and hence, the construction sector assumes an
important role. The sector was marred by varied challenges during
the last few years on account of economic slowdown, regulatory
changes and policy paralysis which had adversely impacted the
financial and liquidity profile of players in the industry. The
Government of India has undertaken several steps for boosting the
infrastructure development and revive the investment cycle. The
same has gradually resulted in increased order inflow and movement
of passive orders in existing order book. The focus of the
government on infrastructure development is expected to translate
into huge business potential for the construction industry in the
long-run. In the short to medium term (1-3 years), projects from
transportation and urban development sector are expected to
dominate the overall business for construction companies. The
implementation of Goods and Service Tax might result in short run
operational issues and pressure on working capital until the
process is streamlined. Going forward, companies with better
financial flexibility would be able to grow at a faster rate by
leveraging upon potential opportunities.

Andhra Pradesh based, G. Hemanth Reddy (GHR), was incorporated in
the year 1994 as a proprietorship firm, with its registered office
at Srinagar colony, Tirupati. The proprietor of the firm is Mr.
Hemanth Reddy who have experience for more than two decades in
construction industry. The firm is primarily engaged in civil
construction works relating to roads, buildings, railways and
other infrastructure works. The firm procures its work orders
through online tenders from State government of Andhra Pradesh. At
present, the firm has order book position of INR10.30 crore as on
January 31, 2018 and the same is likely to be completed by
September 2019.


GANGA SRIRAM: CRISIL Reaffirms B Rating on INR3MM Cash Loan
-----------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Ganga Sriram Hitech Agro Private Limited (GSHAPL) at 'CRISIL
B/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             3        CRISIL B/Stable (Reaffirmed)
   Long Term Loan          3        CRISIL B/Stable (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility      2        CRISIL B/Stable (Reaffirmed)

The rating continues to reflect a small scale of operations amidst
intense competition, and vulnerability to volatility in raw
material pieces, uncertainty of the monsoon, and changes in
regulations. These weaknesses are partially offset by a healthy
relationship with customers.

Key Rating Drivers & Detailed Description

Weakness

* Small scale of operations amidst intense competition: The
company is a new entrant in the rice milling industry. Intense
competition and limited value addition in the industry are likely
to keep the scale of operations small in the initial phase.

* Vulnerability to volatility in raw material prices, uncertainty
of the monsoon, and changes in regulations: Cultivation of paddy
is highly dependent on the monsoon and availability of irrigation.
Hence, the company remains susceptible to any shortage or price
fluctuations in case of unfavourable climatic conditions.

Strengths

* Healthy relationship with customers: The promoters have been
engaged in the rice milling business for more than two decades and
have established a good relationship with a diversified base of
wholesalers and dealers. This would help in ramping up operations
in a timely manner.

Outlook: Stable

CRISIL believes GSHAPL will continue to benefit from the strong
relationship with customers and healthy prospects for the rice
processing industry, over the medium term. The outlook may be
revised to 'Positive' if steady ramp-up of operations and higher-
than-expected revenue improves liquidity. The outlook may be
revised to 'Negative' if capacity utilisation is lower than
expected, or if a significant stretch in the working capital cycle
weakens the financial risk profile, particularly liquidity.

Incorporated in 2014, GSHAPL has set up a mill with an installed
capacity of 6 tonne per hour at Nalanda, Bihar, for manufacturing
non-basmati parboiled rice. The project has been completed and
production has started from January 2018.


GTP MINMET: CRISIL Assigns 'B' Rating to INR45MM LT Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of GTP Minmet Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Proposed Long Term
   Bank Loan Facility       45       CRISIL B/Stable (Assigned)

The rating reflects the company's exposure to risks related to
implementation, stabilisation, and off-take risks associated with
its ongoing project, its modest scale of operations, with
geographic concentration in revenue. These weaknesses are
partially offset by the entrepreneurial experience of its
promoters.

Key Rating Drivers & Detailed Description

Weakness

* Exposure to risks related to implementation, stabilisation, and
off-take risks associated with ongoing project: GTP is yet to
start operations and is setting up its yards and supplier
relationships, and thus, is exposed to risks related to
implementation of its project, stabilisation of operations, and
saleability.

* Modest scale of operations and geographic concentration in
revenue: Revenue is expected to be low, even as the company ramps
up operations in the next two years. Additionally, it will face
geographic concentration risk, and any sluggishness in demand in
the region could affect operations.

Strength

* Entrepreneurial experience of the promoters: The business risk
profile is supported by the promoters' experience in the steel
industry and deep understanding of the sector. The promoters have
developed strong relationships with several stakeholders, which
will benefit GTP.

Outlook: Stable

CRISIL believes GTP will continue to benefit from its promoters'
extensive experience and funding support. The outlook may be
revised to 'Positive' if revenue and profitability increase, while
financial risk profile improves due to increase in cash accrual.
The outlook may be revised to 'Negative' if financial risk profile
and liquidity weaken due to lower-than-expected cash accrual,
sizeable working capital requirement, or significant, debt-funded
capital expenditure.

Established in 2018, GTP is likely to commence operations in April
2018 and will trade in metals and minerals. The company is based
in Visakhapatnam (Andhra Pradesh) and is managed by managing
director Mr G Jogeswara Rao.


GUPTA FOODS: CRISIL Withdraws B+ Rating on INR9.5MM Cash Loan
-------------------------------------------------------------
CRISIL has been consistently following up with Gupta Foods (GF)
for obtaining information through letters and emails dated
April 5, 2018 and April 12, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

                     Amount
   Facilities       (INR Mln)     Ratings
   ----------       ---------     -------
   Cash Credit          9.5       CRISIL B+/Stable (Issuer Not
                                  Cooperating; Migrated from
                                  'CRISIL B+/Stable'; Rating
                                  Withdrawn)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GF. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for GF
is consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower. Based on the last available information, CRISIL
has migrated the ratings on the bank facilities of GF to 'CRISIL
B+/Stable' Issuer not cooperating' from 'CRISIL B+/Stable'.

CRISIL has withdrawn its rating on the bank facilities of GF on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.

Set up as a partnership firm in 2008 by Mr Avinash Gupta and his
family, GF mills and processes basmati and non-basmati rice at its
facilities in Tarn Taran, Punjab.


HIND FLUID: CARE Assigns B+ Rating to INR9cr Long-Term Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Hind
Fluid Power Private Limited (HFPPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            9.00       CARE B+; Stable Assigned

   Long-term/Short-     11.00       CARE B+; Stable/ CARE A4
   Term Bank                        Assigned
   Facilities

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of HFPPL are
constrained by its small and fluctuating scale of operations,
leveraged capital structure, weak debt service coverage indicators
and elongated operating cycle. The ratings are further constrained
owing to HFPPL's presence in a competitive industry. The aforesaid
ratings however draw comfort from an experienced management,
moderate profitability margins and reputed customer base.

Going forward; ability of the company to scale up its operations
while maintaining its profitability margins and improving
its capital structure shall be its key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small and fluctuating scale of operations: The scale of operations
stood small marked by a total operating income and gross cash
accruals of INR17.05 crores and INR1.21 crores respectively for
FY17 (FY refer to the period April 01 to March 31). The company's
net-worth base also stood small at INR6.57 crore as on March 31,
2017. The small scale limits the company's financial flexibility
in times of stress and deprives it from scale benefits.
Furthermore, the company's total operating income has been
fluctuating for the past three financial years (FY15-FY17) due to
order based nature of business. The total operating income
registered a growth of around 15% in FY16 on a y-o-y basis and
thereafter reported significantly declined of around 30% in FY17
over previous year on account of lower number of orders executed.
Further, the company is engaged in the manufacturing of customized
heavy machinery products which has higher manufacturing time due
to customization, thereby, limiting HFPPL's ability to execute
higher number orders.

Leveraged capital structure and weak coverage indicators The
capital structure of HFPPL has been leveraged for the past three
balance sheet dates (FY15-FY17) due to high dependence on external
borrowings against a small net-worth base. The overall gearing
stood high at 2.29x as on March 31, 2017.

Elongated Operating Cycle: The operating cycle of HFPPL stood
elongated at 309 days owing to a high collection and inventory
period. The company is required to maintain inventory in the form
of raw material for smooth execution of production process.
Furthermore, significant portion of inventory is blocked in work
in progress because of customization and approvals from the
customers. All these resulted into a high average inventory period
of 342 days in FY17. The collection period of the company stood
elongated at 101 days in FY17 as there is delay in realization of
the receivables owing to lengthy clearance process which take
around 4-5 months in realization. The company receives an average
credit period of around 3-4 months which resulted into average
creditors' period of 135 days for FY17. The high working capital
requirements were met largely through bank borrowings which
resulted in a high average utilization of around 90% of its
sanctioned working capital limits for the past 12 months period
ended February 28, 2018.

Competitive nature of industry: HFPPL operates in a highly
competitive industry marked by the presence of a large number of
players in the organized and unorganized sector. Further, with
presence of various players, the same limits bargaining power
which exerts pressure on its margins.

Key Rating Strengths

Experienced management and long track of operations: The company
was incorporated in 1989 and has been operational for almost three
decades. It is currently managed by Mr. Sucha Singh and Mrs.
Sukhdev Singh. They are both graduates by qualification and have
an experience of almost five decades through their association
with HFPPL and other family businesses. They look after the
overall business operations of the company and are supported by a
second-tier management team which is comprised of members having
requisite experience in their respective fields.

Reputed customer base: The company has been catering to various
reputed customers like Honda Motorcycle & Scooters Private
Limited, Hero Motocorp Limited and Maruti Suzuki India Limited. In
light of the satisfactory work, it has managed to get repeat
orders from these customers. The reputed customer base enhances
the company's image and thus assures healthy growth prospects.

Moderate profitability margins: The products manufactured by the
company are technical in nature which requires specialized
engineering and designing skills. Due to the technical nature of
the job, the entry barriers are high and the company enjoys
comparatively low competition. The PBILDT margin thus stood
moderate for the past three financial years (FY15-FY17). In FY17
the PBILDT margin stood at 20.10% showing improvement from 15.68%
in FY16; the improvement in the PBILDT margin was on account of
execution of orders with higher profitability margins. However,
PAT margin was restricted below unity in FY17 on account of high
interest and depreciation cost.

Faridabad based Hind Fluid Power Private Limited (HFPPL) was
incorporated on September 18, 1989 by Mr. Sucha Singh and Mrs
Sukhdev Singh. The company has succeeded an erstwhile
proprietorship concern M/s Hind Hydraulics and Engineers
(Proprietor: Mr Sucha Singh) established in 1973. The company is
engaged in the manufacturing of hydraulic presses, cylinders and
spare parts which find application in various industries such as
the automobile industry, manufacturing of air conditioners,
washing machines, etc. The company primarily procures its raw
material such as stainless steel plate etc. from the domestic
market.


HKR ROADWAYS: Ind-Ra Affirms D LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed HKR Roadways
Limited's (HKRRL) bank loans' rating as follows:

-- INR15,250 bil. Bank loans (long-term) affirmed with IND D
     rating.

KEY RATING DRIVERS

The affirmation reflects continued delays in debt serving
obligations by HKRRL since the last rating action due to a tight
liquidity position.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months will
be positive for the rating.

COMPANY PROFILE

HKRRL is a special purpose company incorporated to implement a
lane expansion (to four lanes from two lanes) project on a design,
build, finance, operate and transfer basis under a 25-year
concession from Andhra Pradesh Road Development Corporation.


HMR STEELS: Ind-Ra Affirms 'B+' LT Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed HMR Steels
Private Limited's (HSPL) Long-Term Issuer Rating at 'IND B+'. The
Outlook is Stable.

The instrument-wise rating action is:

-- INR380 mil. (increased from INR220 mil.) Fund-based limits
     affirmed with IND B+/Stable rating.

KEY RATING DRIVERS

The affirmation reflects HMR's continued moderate scale of
operations, low-but-stable operating margin due to the trading
nature of business and weak credit metrics due to low operating
profit. Revenue was INR1,609 million in FY17 (FY16: INR1,408
million), EBITDA margins were 3.2% (3.2%), EBITDA interest
coverage was 1.3x (1.3x) and net financial leverage (net
debt/operating EBITDA) was 6.9x (6.7x). The revenue improvement
was due to an increase in the volume of products sold and leverage
deteriorated on account of higher year end debt.

The ratings continue to be supported by HMR's founder's experience
of more than two decades in the steel trading business and the
established customer base of the company, which includes Jindal
Steel & Power Limited.

Moreover, the company's liquidity is comfortable, as reflected by
ITS 78% utilization of the fund-based limits in the 12 months
ended March 2017.

RATING SENSITIVITIES

Negative: A negative rating action could result from sustained
deterioration in the EBITDA interest coverage.

Positive: A positive rating action could result from a substantial
and sustained improvement in the EBITDA interest coverage and
EBITDA margin.

COMPANY PROFILE

HMR was incorporated as MR Steels, a proprietorship concern in
1992. It was converted into a private limited company in 2008. The
company is engaged in the trading of mild steel plates and heavy
plates.


IRC CONCRETE: CARE Assigns B+ Rating to INR4.87cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of IRC
Concrete Mix India Private Limited (IRC), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           4.87        CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of IRC are constrained
on account of its nascent stage of operations. The rating further
remained constrained due to its presence in highly competitive and
fragmented industry and susceptibility of profitability to raw
material prices. The rating, however, derives strength from
experienced directors and location advantage.

The ability of IRC to achieve envisaged scale of operations and
profitability while maintaining moderate capital structure
would remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Nascent Stage of Operations: IRC has started its commercial
operations from September 2017 and FY19 would be the first full
year of operations. IRC has registered total operating income of
INR14 crore during 5MFY18 (Prov.) (September 2017 to February
2018).

Susceptibility of operating margins to raw material price
fluctuation: The primary raw materials required for manufacturing
of readymade concrete mix are cement, sand and aggregates. Any
adverse fluctuation in these raw materials prices is likely to
impact the profit margins of IRC.

Presence in highly competitive and fragmented industry: Small
players face high degree of competition largely due to presence of
unorganized sector and fragmented nature of industry. Further,
integrated cement and aggregate players are already supplying to
retail customers directly on selective basis removing trader or
wholesaler intermediaries which may further hamper competitive
advantage of small traders where business thrives on relationship
with client.

Key Rating Strengths

Experienced directors:  IRC has been promoted in 2016 and
currently it has been managed by Mr. Denzil Fernandes, Mrs.Lizzie
Fernandes, Mr. Santhosh Kumar, Mr. Lohith, Mr. Denora Fernandes,
Mr. Nithin Kumar, Mr. Shravan Kundar, and Mr. Sudhir Shetty. All
the directors hold average experience of more than a decade in the
manufacturing of construction material industry. Collectively all
the directors are handling overall operations of the company.

Location Advantage: The manufacturing facility of IRC is located
in Baikampady Industrial area in Mangaluru, Karnataka. The
location provides proximity to sources of material access and
smooth supply of its products at competitive prices and lower
logistic expenditure (both on the transportation and storage) and
enjoys good road, rail and air connectivity.

Manglore-Karnataka based IRC is a private limited company
incorporated in the year 2016 by Mr. Denzil Fernandes and seven
other directors. IRC has set up a new plant for manufacturing of
ready mix concrete. Its manufacturing facility located at Plot no:
159-B, Baikampady Industrial Area, Manglore, D.K., Karnataka-
575011 with the installed capacity of 60 M3/Hr (cubic meter). IRC
has started its commercial operations from the end of September
2017.


JAJOO SURGICALS: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jajoo Surgicals
Pvt Ltd.'s (JSPL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:

-- INR30 mil. Fund-based limits migrated to Non-Cooperating
     Category with IND BB- (ISSUER NOT COOPERATING) rating;

-- INR9.62 mil. Term loans due on May 21, 2020 migrated to Non-
     Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
     rating; and

-- INR40 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
April 3, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

JSPL was incorporated in 1993 by the Jajoo family. It is engaged
in the manufacturing and trading of medical, surgical and hygiene
products. The company has a manufacturing facility in Dewas,
Madhya Pradesh. The site has an installed capacity of 900 metric
tons per annum. It also imports disposables such as gloves and
adult diapers from Vietnam, Thailand and China.


KARAMHANS FOODS: CARE Assigns B+ Rating to INR10cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Karamhans Foods Private Limited (KFPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank
   Facilities           10.00       CARE B+; Stable Assigned

   Short term Bank
   Facilities           10.00       CARE A4 Assigned

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of KFPL are
constrained by its modest scale of operations with low net worth
base & low profitability margins, foreign exchange fluctuation
risk and highly fragmented and competitive nature of the industry.
The ratings, however, derive strength from experienced promoters,
long track record of operations, moderate solvency position and
moderate operating cycle.

Going forward, the ability of the company to scale up its
operations while improving its profitability margins and
maintaining the overall solvency position would remain the key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters and long track record of operations: The
company commenced operations in 2002. KFPL is currently being
managed by Mr. Surinder Nath Jain, Mrs. Susheela Jain, Mr. Sandeep
Jain and Mr. Sujiv Jain. The directors have work experience of
around three to six decades which they have gained through their
association with KFPL and Hansraj Jain & Co. which was into
similar business since 1960 and HJC Foods Pvt. Ltd. which was also
into similar business since 1996. The directors have adequate
acumen about various aspects of business which is likely to
benefit KFPL in the long run. Furthermore, the long track record
has aided the company in having established relationship with
customers and suppliers.

Moderate capital structure and debt coverage indicators: KFPL has
a moderate capital structure with overall gearing ratio of 1.77x
as on March 31, 2017. It improved from 2.08x as on March 31, 2016
due to accretion of profits into net worth. Furthermore, the
interest coverage ratio stood moderate at 3.29x in FY17. The same
improved from (-)2.04x in FY16 due to increase in PBILDT level of
the company in FY17. Further, total debt to GCA stood moderate at
4.61x for FY17. It improved from (-)3.39x for FY16 due to increase
in gross cash accruals of the company in FY17.

Moderate operating cycle: The operating cycle of the company stood
at 29 days for FY17 (PY: 22 days). The company maintains inventory
in the form of raw dry fruits and finished goods to ensure smooth
processing process and to meet the demand of customers which
resulted into average inventory period of 55 days for FY17. The
company extends a credit period of up to one month to its
customers resulting into average collection period of 16 days for
FY17 (PY: 18 days). Consequently, payment period also improved
from 68 days for FY16 to 42 days for FY17. The average utilization
of working capital limits remained around 90% for the last 12
months period ended January 31, 2018.

Key Rating Weaknesses

Modest though growing scale of operations with low net worth base
and low profitability margins: The scale of operations of the
company stood modest marked by total operating income of INR86.79
crore in FY17 and net worth base of INR3.74 crore as on March 31,
2017. The modest scale limits the company's financial flexibility
in times of stress and deprives it of scale benefits. Further, the
profitability margins stood low marked by PBILDT margin of 2.73%
and PAT margin of 0.80% in FY17 owing to company's presence in
highly competitive and fragmented industry. The company incurred
losses at PBILDT level in FY16 due to increase in raw material
costs which could not be passed on to customers.

Foreign exchange fluctuation risk: The income from exports
constitute approx. 15% of the total income in FY17 (Rs.13.05
crore) and expenses for imports constitute approx. 60% of the
total purchases in FY17 (Rs.48.00 crore), thereby exposing the
company to risks associates with adverse fluctuation in the
foreign currency. With significant chunk of cash outlay for
procurement in international currency & major proportion of sales
realization in domestic currency and in the absence of any hedging
mechanism, the company is exposed to the fluctuation in exchange
rates to the extent not covered by natural hedge. The company
incurred a loss of INR0.003 crore in FY17 and a gain of INR0.17
crore in FY16 from foreign currency fluctuations.

Highly fragmented and competitive nature of the industry: KFPL is
exposed to high fragmentation in the agro processing industry,
which has numerous players at the bottom of the value chain due to
low capital and technology requirements. Furthermore, the low lead
time for setting up a new plant and the lack of product
differentiation reduce the entry barriers for new entrants
resulting in overcapacity in the industry.

Karamhans Foods Private Limited (KFPL), based in Samba (Jammu &
Kashmir), was incorporated in May 1995 as a private limited
company. However, the operations started in September 2002. The
company is currently being managed by Mr. Surinder Nath Jain, Mrs.
Susheela Jain, Mr. Sandeep Jain and Mr. Sujiv Jain. KFPL is
engaged in processing of dry fruits at its facility located in
Samba, Jammu & Kashmir. The company majorly deals in walnuts,
almonds, raisins and dry morels.


KAVERI ENGINEERING: Ind-Ra Migrates BB Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kaveri
Engineering Projects Private Limited's (KEPPL; formerly Suman Rao
Gujja) Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB
ISSUER NOT COOPERATING)' on the agency's website.

The instrument-wise rating actions are:

-- INR55 mil. Fund-based working capital limit migrated to Non-
     Cooperating Category with IND BB (ISSUER NOT COOPERATING)
     /IND A4+ (ISSUER NOT COOPERATING) rating; and

-- INR120 mil. Non-fund-based working capital limit migrated to
     Non-Cooperating Category with IND A4+ (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

KEPPL was formed as a proprietorship concern, Suman Rao Gujja, in
2012. It was subsequently reconstituted as a private limited
company and renamed KEPPL by transferring the assets and
liabilities of Suman Rao Gujja. It undertakes civil and
infrastructure construction, primarily for irrigation works and
roads, through tendering.


KLASSIK LAMITEX: Ind-Ra Migrates BB+ LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Klassik Lamitex
Private Limited's (KLPL) 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:

-- INR60 mil. Fund-based limits migrated to Non-Cooperating
     Category with IND BB+ (ISSUER NOT COOPERATING) rating;

-- INR107.65 mil. Term loans due on January 2022 migrated to
    Non-Cooperating Category with IND BB+ (ISSUER NOT
    COOPERATING) rating; and

-- INR110 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 28, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

KLPL was incorporated in 2000 as a proprietorship concern by Mr.
Rajesh Rungta. KLPL was reconstituted as a private limited company
in 2005. KLPL is engaged in the manufacturing of textile foam
laminated sheet and textile polyvinyl chloride coated sheet,
largely used by the automobile and footwear industries.


KNOWLEDGE EDUCATION: Ind-Ra Maintains D Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Knowledge
Education Foundation's bank facilities in 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 ratings. The ratings will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions are:

-- INR38.63 mil. Term loan (long-term) due on February 2019
    maintained in Non-Cooperating Category with IND D (ISSUER
    NOT COOPERATING) rating; and

-- INR15 mil. Working capital facility (long-term) maintained in
    Non-Cooperating Category with IND D (ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 26, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Knowledge Education Foundation is a registered foundation. It,
along with Delhi Public School Society, runs a CBSE-affiliated
school under the name Delhi Public School in Bikaner.


KSL AND INDUSTRIES: Allahabad Bank Files Insolvency Bid vs. Firm
----------------------------------------------------------------
The Economic Times reports that state-run Allahabad Bank has filed
an insolvency petition against Tayal group-owned KSL and
Industries at the National Company Law Tribunal's Ahmedabad
chapter as the textile company failed to repay about INR800 crore,
two people familiar with the matter said.

A consortium of lenders, including Allahabad Bank, Uco Bank, Bank
of India, Dena Bank, Oriental Bank of Commerce and Indian Overseas
Bank, was earlier trying to resolve the bad loan through a joint
lenders' forum that did not yield results since the existing
promoters couldn't bring in equity, ET relates.

KSL & Industries is promoted by the family of Pravin Kumar Tayal,
the chairman of the erstwhile Bank of Rajasthan. The bank was
acquired by ICICI Bank about eight years ago.

The company mentioned Allahabad Bank as the lead bank in its
annual report for FY17. The lender filed the case at NCLT
Ahmedabad last month, the report notes. The matter was adjourned
then for a hearing in the second week of June, one of the persons
cited above told ET.

ET says the bank has proposed Divyesh Desai, a Mumbai-based
chartered accountant, as the interim resolution professional.

The company extended its losses to INR132 crore in FY17 compared
with INR106 crore a year earlier, ET discloses. It has been facing
consecutive losses for at least five past quarters, with the
October-December quarter showing a INR36-crore loss. The promoters
held 39% in KSL & Industries at the end of March 2017.

KSL and Industries Limited is engaged in the textiles business.
The Company's segments include Textiles and Real Estate. The
Company offers cotton and fibers. The Company's plants are located
at Kalameshvar, Nagpur (Maharashtra); Dombivali, District Thane
(Maharashtra); Wada, District Thane (Maharashtra), and Piperia,
Silvassa. The Company's subsidiaries include Kalameshvar Textiles
Mills Limited and Actif Corporation Limited.


LANCO INFRATECH: Administrator to File for Potential Liquidation
----------------------------------------------------------------
Reuters reports that Lanco Infratech Ltd said on May 3 a panel of
its creditors has not approved an insolvency resolution plan and
that its administrator will file for potential liquidation of the
company.

Reuters relates that Lanco, among 12 of the biggest debt
defaulters in India that were pushed to bankruptcy court last
year, said in a stock exchange filing that a debt resolution
proposal from Thriveni Earthmovers Pvt Ltd had failed to get the
minimum 75 percent creditors' vote required for it to get the go
ahead before the deadline expires on May 4.

The company did not give details of the proposal, but said its
administrator would also seek a ruling from the bankruptcy court
on a revised proposal given by Thriveni on May 1, Reuters says.

Lanco, whose business includes power and infrastructure, faces
total claims of 515.05 billion rupees ($7.73 billion), Reuters
discloses citing government data.

Lanco Infratech Ltd was originally incorporated in 1993 as Lanco
Constructions Ltd in Secunderabad, Telengana; its name was
changed in 2000. The company provides Engineering, Procurement
and Construction (EPC) services, largely to its own subsidiaries
and affiliate entities. The Lanco group includes subsidiaries and
affiliates operating across the infrastructure sector, including
construction, power, EPC, infrastructure, and property
development. LITL is the Lanco group's flagship company.

NCLT had initiated insolvency resolution for Lanco on August 7,
2017, based on a petition filed by the company's lead lender IDBI
Bank, Business Standard discloses. Lanco has a debt of over
INR10,000 crore at the holding company level while the
consolidated debt was more than INR40,000 crore, according to
Business Standard.


MAA ANNAPURNA: CARE Reaffirms B+ Rating on INR12.73cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Maa Annapurna Sheet Grah (MASG), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           12.73       CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities            0.21       CARE A4 Reaffirmed

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of MASG continue to
remain constrained by short track record with small scale of
operation, regulated nature of industry, seasonality of business
with susceptibility to vagaries of nature, risk of delinquency in
loans extended to farmers, working capital nature of operations,
partnership nature of constitution, high leverage ratios with
moderate debt coverage indicators and competition from other
players. The ratings continue to derive comfort from experienced
partners and its close proximity to potato growing area.

The ability of the firm to increase its scale of operation,
improve profitability margins and ability to manage its working
capital effectively would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record with small scale of operations: The firm is
into cold storage business since 2014 and thus has a short track
record of operations of around 04 years. The total operating
income of MASG has improved by 168.47% in FY18 vis-a- vis FY17 due
to higher receipts of rental charges owing to higher yield of
potato during the year. However, the overall scale of operations
of the firm remained small marked by total operating income of
INR2.98 crore with a PAT of INR0.14 crore in FY18. Further, the
net worth base and total capital employed was low at INR2.44 crore
and INR12.72 crore, respectively, as on March 31, 2018. Moreover,
the profitability margins improved with improvement in PBILDT
margin to 48.30% (39.93% in FY17) and PAT margin to 4.74% (-41.21%
in FY17) in FY18.

Regulated nature of business: In West Bengal, the basic rental
rate for cold storage operations is regulated by the state
government through West Bengal State Marketing Board. The rent of
these cold storages is decided by taking into account political
considerations, not economic viability. Due to severe government
intervention, the cold storage facility providers cannot enhance
rental charge commensurate with increased power tariff and labour
charge.

Seasonality of business with susceptibility to vagaries of nature:
MASG's operation is seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of February
and lasts till March. Additionally, with potatoes having a
perceivable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period from December to January.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent
on the basis of quantity stored and the production of potato is
highly dependent on vagaries of nature.

Risk of delinquency in loans extended to farmers: Against the
pledge of cold storage receipts, MASG provides interest bearing
advances to the farmers & traders. Before the closure of the
season in November, the farmers & traders are required to clear
their outstanding dues with the interest. In view of this, there
exists a risk of delinquency in loans extended, in case of
downward correction in potato or other stored goods prices, as all
such goods are agro commodities.

Working capital intensive nature of business: MASG is engaged in
the cold storage services; accordingly its operation is working
capital intensive. The average utilization of fund based limit
remained at about 90% during the last 12 months ended March 31,
2018.

Partnership nature of constitution: Partnership nature of
constitution with inherent risk of withdrawal of capital by the
partners, restricted access to funding and risk of dissolution on
account of poor succession planning.

High leverage ratios with moderate debt coverage indicators: The
overall gearing ratio remained leveraged marked by high overall
gearing ratio at 4.22x as on March 31, 2018. However, the debt
coverage indicators of the firm improved to 2.23x and total debt
to GCA to 12.79x in FY18.

Competition from other local players: In spite of being capital
intensive, the entry barrier for new cold storage is low, backed
by capital subsidy schemes of the government. As a result, the
potato storage business in the region has become competitive,
forcing cold storage owners to lure farmers by providing them
interest bearing advances against stored potatoes which augments
the business risk profile of the companies involved in the trade.

Key Rating Strengths

Experienced partners: Ms. Shagufta Ahmed has more than two decades
of experience in cold storage industry, looks after the overall
management of the firm. He is supported by other partner Mr. Vinay
Kothari, Mr. Farhan Ahmed, Mr. Vinod Jain and Mr. Abdul Rahim
along with a team of experienced professionals.

Proximity to potato growing area: MASG's storing facility is
situated at Burdwan, West Bengal which is one of the major potato
growing regions of the state. The favourable location of the
storage unit, in close proximity to the leading potato growing
areas provides it with a wide catchment and making it suitable for
the farmers in terms of transportation and connectivity.

MASG was established as a partnership firm in 2014 to set up a
cold storage facility with a storage capacity of 227381 kg in
Burdwan, West Bengal. MASG is engage in the business of providing
cold storage facility primarily for potatoes to farmers & traders.
The firm is also engaged in trading of agro product depending on
the economic viability.


MAA MANI: CARE Assigns B+ Rating to INR15cr LT Loan
---------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Maa
Mani Iron and Steel Company (MMISC), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            15.00      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of MMISC take into
account the status of the entity being a partnership firm,
execution risk pertaining to the ongoing project, intense
competition from the unorganized sector and cyclicality associated
with the steel industry. The rating, however, derive strength from
experience of the promoters in the billet manufacturing business,
financial closure of the project is already in place, moderate
capital structure and strategic location of the plant. Timely
completion of the ongoing project without any cost over-run and
stabilization of operation will remain key rating sensitivities
going forward.

Detailed description of the key rating drivers

Key Rating Weaknesses

Status of being a partnership firm: MMISC is exposed to the risks
associated with the status of being a partnership firm, including
the risk of withdrawal of capital by the partners.

Project execution risk: MMISC is currently in the process of
setting up billet manufacturing plant with an installed capacity
of 28,800 MTPA. The total cost of the project is around INR17.69
crore to be funded through term loan of INR9.00 crore and the
remaining through partner's capital. The project is expected to be
completed by July 2018. As on February 21, 2018, the firm has
already incurred project cost of around INR9.32 crore towards
setting up one of the two furnaces.

Intense competition from the unorganized sector: The Indian
secondary steel industry is characterized by high degree of
fragmentation due to the presence of large number of unorganized
players. The firm operates in the Central and Eastern India which
is a hub of steel plants on account of proximity to the mineral
rich states of Orissa and Chhattisgarh. As a result, MMISC faces
intense competition from the organized as well as unorganized
sector players.

Cyclicality associated with the steel industry: The steel industry
is sensitive to the shifting business cycles, including changes in
the general economy, interest rates and seasonal changes in the
demand and supply conditions in the market. Apart from the demand
side fluctuations, the highly capital intensive nature of steel
projects along-with the inordinate delays in the completion impact
the responsiveness of supply side to demand movements. This
results in several steel projects bunching-up and coming on stream
simultaneously leading to demand supply mismatch. Furthermore, the
producers of steel & related products are essentially price-takers
in the market, which directly expose their cash flows and
profitability to volatility of the steel industry.

Key Rating Strengths

Experience of promoters in the billet manufacturing business:
MMISC is a partnership firm with two partners viz. Mr. Santosh
Bhalotia and Mrs. Mamta Bhalotia. The firm is primarily promoted
by Mr. Santosh Bhalotia who has more than a decade of experience
in the business of trading of iron ore and sponge iron and is also
engaged in the manufacturing of billets through another group
company, Maa Mani Industries Private Limited (CARE BB; Stable).

Strategic location of manufacturing unit with proximity to input
sources and end market: The manufacturing facility of MMISC is
being set up at Raigarh in the state of Chhattisgarh which is in
close proximity to various manufacturers of the raw material
required for manufacturing its own products. The plant is well
connected through road and rail transport which facilitates easy
transportation of raw materials and finished goods. The firm is
likely to derive operational advantages from the strategic
location due to proximity of plant to source of raw materials in
the mineral rich state of Chhattisgarh and end user segment as
various other steel players with upstream products are
operating.

Financial closure of the project already in place in and capital
structure is moderate: The financial closure of the project is
already achieved. The total cost of the project is around INR17.69
crore to be funded through term loan of INR9.00 crore and INR8.68
crore of partner's capital resulting in overall gearing of 1.03x
which is indicative of moderate capital structure.

Maa Mani Iron and Steel Company (MMISC) is a partnership firm with
two partners viz. Mr. Santosh Bhalotia and Mrs. Mamta Bhalotia.
The firm is primarily promoted by Mr. Santosh Bhalotia who has
more than a decade of experience in the business of trading of
iron ore and sponge iron and manufacturing of billets. The firm is
in the process of setting up a billet manufacturing plant with an
installed capacity of 28,800 MTPA to be operational by July 2018.


MAHAVISHNU CASHEW: CRISIL Assigns B+ Rating to INR1MM Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' rating on the
bank facilities of Mahavishnu Cashew Factory (MCF).

                     Amount
   Facilities       (INR Mln)     Ratings
   ----------       ---------     -------
   Standby Letter
   of Credit             1        CRISIL B+/Stable (Assigned)

   Overdraft             1        CRISIL A4 (Assigned)

   Packing Credit        8        CRISIL A4 (Assigned)

The rating continues to reflect below average financial risk
profile and modest scale of operations and exposure to intense
competition in the fragmented industry. These rating strengths has
been partially offset by extensive experience of the promoter in
the cashew business.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and exposure to intense competition
in the fragmented industry: The firm's business risk profile
remains constrained on account of its small scale of operations in
a highly fragmented industry. The firm recorded revenues of
INR40.3 crore during 2016-17 (refers to financial year, April 1 to
March 31). The cashew industry is highly fragmented, marked by the
presence of many small and large players, leading to intense
competition in both the organised and unorganised segments.

* Below-average financial risk profile: The MCF has below-average
financial risk profile marked by modest net worth of INR 3.18 cr.,
high gearing of 2.98 times as on March 31, 2017. The firm has
moderate debt protection metrics with net cash accrual to Total
debt (NCATD) and interest coverage ratios of over 0.07 and 1.85
times, respectively, for 2016-17. Financial risk profile may
remain below average over the medium term.

Strength

* Extensive experience of the promoter in the cashew business:
MCF is promoted by by Mr. S.Renjith Lal. The promoter has been
related to the same line of business for over two decade.
Presently, the firm generates its entire revenues from sale of
cashew kernels. The firm has a strong customer base in the export
market, with whom it has been associated since inception,
resulting in repeat business. Its long-standing position in the
cashew segment has given the firm a negotiating edge with its
various intermediaries.

Outlook: Stable

CRISIL believes that MCF will continue to benefit from the
promoter's extensive experience in the cashew industry. The
outlook may be revised to 'Positive', if the firm scales up its
revenues and maintains its margins resulting in an improvement in
its capital structure. Conversely, the outlook may be revised to
'Negative', if the firm records lower than expected revenues and
profitability or undertakes greater than expected debt funded
capex or in case of significant withdrawals by the promoter.

Incorporated in 1996 by Mr. S.Renjith Lal, MCF is based out of
Kollam, Kerala and is engaged in processing of raw cashew nut. It
currently operates a three processing unit and one packing unit in
Kerala. The day-to-day activities of the firm are managed by the
proprietor, Mr. S.Renjith Lal.


MURLIWALA STONE: CARE Assigns B Rating to INR5cr Long-Term Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Murliwala Stone Industry Limited (MSIL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            5.00       CARE B; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of MSIL is constrained
by its project execution and stabilization risk. The ratings are
further constrained on account of regulatory risk pertaining to
environmental issues and presence in highly competitive nature of
industry. The ratings, however, draw comfort from diversified
experience of promoters.

Going forward, the ability of the company to achieve the envisaged
revenue, profitability and maintain its favorable
capital structure shall be key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Project execution and stabilization risk: MSIL has been
incorporated with the objective of crushing and processing of
river bed material (RBD) and boulders with total project cost of
INR6.72 crore which is to be funded in the debt equity mix of
1:3.67. The debt for the same has already been tied up.

As on December 31, 2017, the company has incurred total
expenditure of INR1.84 crore towards this project which was
funded through a term loan of INR1.44 crore and balance through
promoter's contribution in the form of equity share capital. The
completion of the project within the envisaged time and cost
remains a risk for the company. Furthermore, post project
implementation risk in the form of stabilization of the operations
to achieve the envisaged scale of business and salability risk
associated with the products in the light of competitive nature of
industry remains crucial for MSIL.

Regulatory risk pertaining to environmental issues: The company is
engaged in crushing and processing of river bed material (RBD),
boulders which are procured from local suppliers. The raw material
is extracted from river bed and banks. Such activities involve
environmental concerns resulting in regulatory issues. Any delays
faced by the suppliers in getting approvals from the concerned
government authority will lead to delay in raw material
procurement by MSIL hence, affecting revenue generation of the
company.

Highly competitive nature of the industry: Murliwala Stone
Industry Limited operates in a competitive nature of industry
wherein there is presence of a large number of players in the
unorganized sectors. There are number of small and regional
players catering to the same market which has limited the
bargaining power of the company and has exerted pressure on its
margins.

Key Rating Strengths

Experienced directors in diversified industry: Mr. Anoop Kumar
Agarwal, Ms. Renu Agarwal and Mr. Abhishek Agarwal collectively
look after overall operations of the company. Mr. Anoop Kumar
Agarwal, Ms. Renu Agarwal have an experience of more than two
decades in the textile, agriculture and mining industry through
their association with Brook Hill International Private Limited
(engaged in mining and quarrying); Brookhill Industry Private
Limited (engaged in manufacturing of textiles); R. K. Agarwal
Industries Limited (engaged in manufacturing of grain mill
products, starches and starch products etc). Mr. Abhishek Agarwal
has recently graduated and joined the company as a director.

Uttarakhand based, Murliwala Stone Industry Limited was
established on April 15, 2011 as a closely held public limited
company The company was incorporated with the objective of stone
crushing, washing, grading & natural screening of stones. The
company plans to procure the raw material i.e. river boulders
through payment of royalty to Uttrakhand forest department, for
KOSI river and would sell the finished product i.e. stone grit,
sand, stone dust etc. to contractors and builders.


NATRAJ ELECTRO: Ind-Ra Migrates 'B+' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Natraj Electro
Casting 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 these ratings. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:

-- INR80 mil. Fund-based limits migrated to non-cooperating
     category with IND B+ (ISSUER NOT COOPERATING) rating;

-- INR200 mil.  Long-term loans due on March 31, 2025 migrated
    to non-cooperating category with IND B+ (ISSUER NOT
    COOPERATING) rating; and

-- INR15.35 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 16, 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 2004, Natraj Electro Casting is setting up a Kraft
paper manufacturing plant in Burdwan, West Bengal.


NAVKAR WHEELS: CRISIL Assigns B+ Rating to INR4.9MM Term Loan
-------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Navkar Wheels (NW), and has assigned 'CRISIL
B+/Stable' rating. CRISIL had suspended the ratings on
November 2, 2016, as the firm had not provided information
required for a rating review. However, requisite information has
now been shared, enabling CRISIL to assign the ratings.

                     Amount
   Facilities       (INR Mln)      Ratings
   ----------       ---------      -------
   Cash Credit          4.1        CRISIL B+/Stable (Assigned;
                                   Suspension Revoked)

   Inventory            1.0        CRISIL B+/Stable (Assigned;
   Funding Facility                Suspension Revoked)

   Rupee Term Loan      4.9        CRISIL B+/Stable (Assigned;
                                   Suspension Revoked)
The rating reflects the firm's average financial risk profile
because of modest networth and high gearing, small scale of
operations, and exposure to cyclicality and intense competition in
the automobile dealership industry. These strengths are partially
offset by extensive experience of promoters and their funding
support, and diversified revenue mix.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations: With revenue of INR78 crore for
fiscal 2018, scale remains small because of limited regional
presence. This is compounded by intense competition in the
automobile dealership segment.

* Average financial risk profile: Financial risk profile is
constrained by high gearing and modest networth.

Strengths

* Promoters' extensive experience and established relationship
with principals: Promoters began operations with dealership of
Hero Motocorp Ltd (HML) vehicles and significantly strengthened
market position. They acquired dealership of passenger vehicles of
Hyundai Motors India Ltd (HMIL) in 2016, which has significantly
ramped up operations in the past two fiscals.

* Stable business risk profile backed by established market
position: Industry presence of over a decade has enabled the firm
to develop healthy relationship with principals. Over the years,
the firm has established one showroom with 3S facilities and three
sales outlets.

Outlook: Stable

CRISIL believes NW will continue to benefit over the medium term
from its promoters' extensive experience and healthy relationship
with principals. The outlook may be revised to 'Positive' if the
company reports sizeable cash accrual and improvement in capital
structure. The outlook may be revised to 'Negative' if financial
risk profile, particularly liquidity, weakens further because of
lower-than-expected cash accrual or sizeable working capital
requirement or debt-funded capital expenditure.

Set up in 2005 in Dhule, Maharashtra as a partnership firm by Mr.
Prashant Jain and Mr. Ashish Jain along with other three partners,
NW is engaged in dealership of HML's two-wheelers. In 2016, the
firm acquired dealership of HMIL's passenger cars. The firm is
based out of Dhule, Maharashtra.


NORTHWAY INFRATECH: Ind-Ra Migrates BB- Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Northway
Infratech 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 these ratings. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating action is:

-- INR67.7 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
March 23, 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 August 2008 in Bhubaneswar, Odisha, Northway
Infratech executes civil construction projects and provides
logistic services for the transportation of petroleum coke.


P.K. METAL: CARE Assigns B+ Rating to INR6.71cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of P.K.
Metal Industries (PKML), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            6.71       CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of PKML is constrained
by short track record and small scale of operations,
susceptibility to volatility in prices of raw material, foreign
exchange fluctuation risk. The ratings are further constrained by
PKML's presence in the highly competitive industry. The ratings,
however, draw comfort from experienced management.

Going forward; ability of the company to profitably increase the
scale of operations while improving its profitability margins and
capital structure with effective management of working capital
requirements shall be the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record and small scale of operations: The firm
commenced operations in September 2016 and has limited track
record of operations as compared to other established players.
FY18 would be the first full year of operations for the company.
The scale of operations has remained small marked by a total
operating income and gross cash accruals of INR9.70crore and
INR0.37crore respectively during FY17.Further, the partner's
capital was relatively small at INR1.01 crore as on March 31,
2017.The small scale limits the firm's financial flexibility in
times of stress and deprives it from scale benefits. During 6MFY18
(refers to the period April 01 to September 30) the firm has
achieved total operating income of INR12.87 crore.

Volatility in prices of raw material: The raw material price of
aluminum is highly volatile in nature which is the major cost
driver and any southward movement of finished goods price with no
decline in raw material price is likely to result in adverse
performance. So any adverse fluctuations in the prices may put
pressure on the profitability of the company. The risk is more
evident now that the market has considerable volatility and could
leave the company carrying costly inventory in case of sudden
appreciation.

Foreign exchange fluctuation risk: The company procures the raw
material i.e. aluminum scrap by way of imports from Dubai and
Israel. With initial cash outflow occurring in foreign currency
and the realization taking place in domestic currency, the company
is exposed to the fluctuation in the exchange rates. Moreover, the
company does not plan to hedge its foreign exchange exposure and
any adverse fluctuations in the currency markets may put pressure
on the profitability of the company. The risk is more evident now
that the rupee has registered considerable volatility and could
leave the firm carrying costly inventory in case of sudden
appreciation.

Highly competitive nature of the industry: PKML operates in a
highly competitive nature of industry where the presence of large
number of players in the organized and unorganized sector. The
industry is characterized by low entry barriers due to low
technological inputs and easy availability of standardized
machinery for production. This further leads to high competition
among the various players and low bargaining power with the
suppliers.

Key Rating Strengths

Experienced Proprietor: The operations of PKML are currently
managed by Mr. Vishal Gaur is a civil engineer by qualification
and has an experience of around half a decade in manufacturing
industry through his association with PKML and family run
business. The firm is further supported by a team of qualified
engineers and managers having good experience in the similar line
of the business.

Uttarakhand based PKML was established in year 2016 and is managed
by Mr. Vishal Gaur. The firm is engaged in the manufacturing of
aluminum sections for aluminum doors, windows etc. The
manufacturing facility of the firm is located at Roorkee,
Uttarakhand having an installed capacity of 6.5 metric tonnes per
day as on January 31, 2018. The firm imports around 50% its main
raw material i.e. aluminum scarp and rest is procured domestically
from local traders and sells its product domestically to whole
sellers and other manufacturing units.


PERMALI WALLACE: CARE Assigns B Rating to INR24.61cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Permali
Wallace Private Limited (PWPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           24.61       CARE B; Stable Assigned

   Long-term/Short-      3.43       CARE B; Stable/CARE A4
   term Bank                        Assigned
   Facilities

   Short-term Bank
   Facilities           14.25       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of PWPL are primarily
constrained on account of its fluctuating scale of operations and
profitability margins, weak solvency position and stressed
liquidity position. The ratings are, further, constrained on
account of its presence in highly fragmented nature of wooden
industry and vulnerability of margins to fluctuation in foreign
exchange rate. The ratings, however, favorably take into account
the experienced promoters in the industry with continuous infusion
of capital by them and long track record of operations. The
ratings, further, derive strength from established customer and
supplier base.

Increase in the scale of operations with improvement in
profitability margins in fragmented industry and better management
of liquidity position would be key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Fluctuating Total Operating Income (TOI) and profitability
margins: The scale of operations and profitability of the company
has shown fluctuating trend during the last three years ended FY17
owing to its presence in fragmented industry and vulnerability of
margins to fluctuation in foreign exchange rate. In FY15 and FY16,
the company registered net losses owing to low PBILDT margin.
However, in FY17, with improvement in PBILDT margin, it has
registered net profit.

Weak solvency position and stressed liquidity position: The
capital structure of the company stood leveraged with an overall
gearing of 2.99 times as on March 31, 2017, improved from 3.10
times as on March 31, 2016 attributed to accretion of profits to
reserve and scheduled repayment of long term debt. Further, out of
the total unsecured loans from promoters & relative, INR8.51 crore
which are subordinated to bank borrowings and hence, considered as
quasi equity. The debt service coverage indicators of the company
also stood weak with total debt to GCA of 12.89 times as on March
31, 2017, improved significantly from 103.03 times owing to
improvement in GCA level. Further the interest coverage ratio
stood at 1.46 times as on March 31, 2017. The overall liquidity
position of the company stood elongated marked by operating cycle
of 146 days as on March 31, 2017. The company has fully utilized
its working capital limits during the past 12 months ended March,
2018. Due to higher inventory, the current ratio of the company
stood weak at 1.03 times whereas quick ratio stood below unity
times at 0.69 times as on March 31, 2017.

Competitive and fragmented nature of wooden industry along with
foreign exchange fluctuation risk and tender driven industry: The
business of the company is characterized by highly fragmented and
competitive in nature as evident by the presence of numerous
unorganized and few organized players coupled with the tender
driven nature of contracts poses huge competition and puts
pressure on the profitability margins of the players. Further, as
the company participates in tenders invited by large contractor,
high competition and lower bargaining power restricts its
profitability margins. Further, PWPL is exposed to foreign
exchange fluctuation risk as the company procures major raw
material from France and Germany and also exports its products to
UAE, Malaysia and USA and does not have any hedging policy in
place.

Key Rating Strengths

Experienced promoter in the industry coupled with continuous
infusion of capital by promoters: Mr. Shubash Vithaldas, director,
manages the overall affairs of the company and has more than five
decades of experience in the industry. Mr. Mahesh Vithaldas,
director, has more than four decade of experience in the industry
and looks after over all affairs of the company. Further, top
management is assisted by qualified second tier management
personnel having relevant experience in their respective fields.

The promoter of the company has continuously infusing capital of
INR1.62 crore in FY16 and INR6.70 crore in FY17 to support its
growing scale of operations.

Long track record of operations with established customer and
supplier base: PWPL was incorporated in 1961 and has established
its business having established relationship with its reputed
customers and suppliers. Owing to long standing presence in
manufacturing of different types of insulating material, PWPL has
established relationship with its customers and gets repeat orders
from them. PWPL's product portfolio comprises mainly densified
wood laminates, glass fibers laminates & components, SMC DMC
compounds and their moldings.

The company sells its products all over India mainly to Railways
and Defense Department, Power sector industries. The top three
customers include PROLEC GE (INDO TECH TRANSFORMERS LTD), ABB
India Limited PPTR and EMCO Limited apart from Indian railways and
Defense Department. The main raw material of the company is wooden
logs, bio fuel and fiber glass which it purchases from Euro
Hardwood , Bharat Industries and Fiber Glass Insulation. The
company imports wooden logs from France and Germany.

Bhopal (Madhya Pradesh) based Permali Wallace Private Limited
(PWPL) was established in 1961 in technical and financial
collaboration with Permali Limited, Gloucester, the U.K. and Chase
Lowe & Co., Manchester, the U.K. Subsequently in May, 2004, the
constitution of the company was converted into Private Limited
Company and changed to its current name. Initially, the company is
engaged in the manufacturing of wooden and fiber based moulds. The
company manufactures wood based densified impregnated laminates,
glass reinforced composites, sheet molding compounds, dough
molding compounds, molded components, epoxy resin castings, etc.
for industrial and engineering applications. The company purchases
wooden logs and further, gets processing done on job work basis to
get veneer based components and further after receiving veneer the
company manufactures wooden moulds and components. The plant of
the company is located at Bhopal and has an installed capacity to
produce 3600 MTPA densified wood, 1620 MTPA fiber glass, 60 MTPA
cast epoxy and 1000 MTPA SMC,DMC and their moldings as on March
31, 2017. Further, PWPL is certified as an International
Electrotechnical Commission (IEC) 60893, IEC 61061 and approved
from Power Grid Corporation of India Limited (PGCIL) for prima
wood. Further in September, 2016 the company has been awarded with
"Sarvashreshtha Award" by National Safety Council MP Chapter.

The Company carries on its operations through its 3 units, one
located Bhopal and other two at Mandideep. In Bhopal unit
the company manufactures Densified Wood Board and Fibre Glass
Board which are supplied to all over India as well as Exported to
mainly Power sector industries. In Mandideep Unit-I FRP sanitation
products are manufactured and machined and in Mandideep Unit-II
the company manufactures Tube & Ring, Permaglass Moulding and Cast
Epoxy.

The company supplies its products to Defence, Railways, Power
sector industries and also exports to UAE, Malaysia and
USA. Further the company imports raw material i.e. wooden log
majorly from France and Germany.


PHOSPHATE COMPANY: Ind-Ra Assigns 'BB' Issuer Rating
----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned The Phosphate
Company Limited (TPCL) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR180 mil. Fund-based working capital limits assigned with
     IND BB/Stable rating;

-- INR220 mil. Non-fund-based working capital limits assigned
     with IND A4+ rating;

-- INR100 mil. Proposed non-convertible debentures (NCDs)*
     assigned with Provisional IND BB/Stable rating; and

-- INR60 mil. Proposed non-convertible redeemable preference
     shares* assigned with Provisional IND BB-/Stable rating.

* The final ratings will be assigned following the closure of the
issue upon the receipt of the final documentation, conforming to
the information already received by Ind-Ra.

KEY RATING DRIVERS

The ratings reflect TPCL's medium scale of operations and weak
credit metrics owing to the company's presence in a highly
competitive fertilizer industry. Its revenue fell to INR683.3
million in FY17 from INR783.7 million in FY16, owing to a low off
take of its end products due to demonetization. In FY17, TPCL's
interest coverage (operating EBITDA/gross interest expense) was
1.2x (FY16: 0.4x) and net leverage (adjusted net debt/operating
EBITDAR) was 5.4x (20.0x). The improvement in the credit metrics
was driven by a rise in operating margin to 11.12% in FY17 from
3.25% in FY16 due to a decline in raw material cost. TPCL booked
INR 538.7 million in revenue for 9MFY18.

The ratings also reflect TPCL's elongated net working capital
cycle of 148 days in FY17 (FY16: 172 days) on account of high
inventory and receivable days. The improvement in the cycle in
FY17 was due to an improvement in the inventory and receivable
days.

The ratings, however, are supported by TPCL's comfortable
liquidity, indicated by an average working capital limit
utilization of almost 66.0% for the 12 months ended March 2018.

The ratings are also supported by the promoters' over six decades
of experience in manufacturing fertilizers that have led to
longstanding ties with customers and suppliers.

RATING SENSITIVITIES

Negative: Any decline in the profitability leading to any
deterioration in the overall credit metrics may lead to a negative
rating action.

Positive: Any substantial rise in the revenue and any improvement
in the overall credit metrics will be positive for the ratings.

COMPANY PROFILE

Incorporated in February 1949, TPCL is the oldest single super
phosphate manufacturing unit in eastern India. The company
commenced commercial production started at Rishra in the Hooghly
district of West Bengal in the 1950s. It was founded by the Bangur
and Khaitan families, who are accredited with industrialization in
eastern India.

TPCL is managed by the board of directors and has a strong
management team, which has significant experience in fertilizer
manufacturing and marketing.


PODDAR CAR: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Poddar Car World
Private Limited's (PCWPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable.

The instrument-wise rating actions are:

-- INR403 mil. (increased from INR385.9 mil.) Fund-based limits
     affirmed with IND BB+/Stable/IND A4+ rating;

-- INR2.5 mil. Non-fund-based limits affirmed with IND A4+
     rating; and

-- INR18.22 mil. (reduced from INR61.6 mil.) Long-term loan due
     on March 2021 affirmed with IND BB+/Stable rating.

KEY RATING DRIVERS

The ratings continue to reflect PCWPL's modest credit metrics
owing to a low profitability. According to unaudited financials
for FY18, EBITDAR interest coverage (operating EBITDAR/gross
interest expense + rents) was 2.0x (FY17: 2.1x; FY16: 1.8x) and
net financial leverage (total adjusted net debt/operating EBITDAR)
was 4.4x (4.1x; 4.8x). In FY18, net financial leverage slightly
deteriorated owing to an increase in the short-term loan and an
increase in rental expenses due to the opening up of new
showrooms. The improvement in the credit metrics in FY17 was due
to a rise in absolute EBITDA. Operating EBITDAR margin rose to
4.4% in FY18 (FY17: 3.6%; FY16: 3.0%), driven by a fall in the
cost of material consumed and a rise in sales volume at its Nexa
outlets, which sell premium cars of Maruti Suzuki India Limited.

The ratings, however, continue to be supported by PCWPL's position
as an established dealer of cars manufactured by Maruti Suzuki,
with an operational track record of over a decade. PCWPL opened
the premium class Nexa showroom in Assam and entered West Bengal
in FY16. The company plans to add another showroom in Assam in
2018, involving a cost of about INR60 million.

The ratings are also supported by a comfortable liquidity
position, indicated by an average 56.36% utilization of the
working capital limits for the 12 months ended March 2018, and an
increase in PCWPL's scale of operations to large from modest. The
company's revenue rose to INR4,933.75 million in FY18 from
INR3,994.37 million in FY17 (FY16: INR2,784.60 million) on account
of an increase in sales volume.

RATING SENSITIVITIES

Negative: EBITDAR interest coverage falling below 1.5x on a
sustained basis could lead to a negative rating action.

Positive: An increase in the scale of operations, along with a
sustained improvement in the credit metrics, could lead to
positive rating action.

COMPANY PROFILE

PCWPL has 3S (sales, service and spares) showrooms of Maruti
Suzuki cars. In addition, it deals in pre-owned car sales and
provides facility for exchanging used cars through Maruti True
Value.


RADHAKANTA HIMGHAR: CARE Assigns B+ Rating to INR5.05cr Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Radhakanta Himghar Private Limited (RHPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           5.05        CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of RHPL is constrained
by short track record and small scale of operations with low
profitability margins, regulated nature of industry, seasonality
of business with susceptibility to vagaries of nature and
competition from local players. The ratings, however, derive
comfort from experienced promoters and proximity to potato growing
area.

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

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record and small size of operations with low
profitability margins: RHPL has started its commercial operations
since March 2017 and thus has very short operational track record.
Furthermore, the size of operations of the company remained small
marked by total operating income of INR0.32 crore with a net loss
of INR0.42 crore in FY17. The company has reported net loss during
FY17 mainly due to its initial stage of operations with high
capital charges. The tangible net worth of the company was also
low at INR2.75 crore as on March 31, 2017. Moreover, the company
has reported total income of INR5.64 crore during FY18.

Regulated nature of business: In West Bengal, the basic rental
rate for cold storage operations is regulated by the state
government through West Bengal State Marketing Board. The rent of
these cold storages is decided by taking into account political
considerations, not economic viability. Due to severe government
intervention, the cold storage facility providers cannot enhance
rental charge commensurate with increased power tariff and labour
charge.

Seasonality of business with susceptibility to vagaries of nature:
RHPL's operation is seasonal in nature as potato is a winter
season crop with its harvesting period commencing in March. The
loading of potatoes in cold storages begins by the end of February
and lasts till March. Additionally, with potatoes having a
perceivable life of around eight months in the cold storage,
farmers liquidate their stock from the cold storage by end of
season i.e., generally in the month of November. The unit remains
non-operational during the period from December to January.
Furthermore, lower agricultural output may have an adverse impact
on the rental collections as the cold storage units collect rent
on the basis of quantity stored and the production of potato is
highly dependent on vagaries of nature.

Competition from other local players: In spite of being capital
intensive, the entry barrier for new cold storage is low, backed
by capital subsidy schemes of the government. As a result, the
potato storage business in the region has become competitive,
forcing cold storage owners to lure farmers by providing them
interest bearing advances against stored potatoes which augments
the business risk profile of the companies involved in the trade.

Key Rating Strengths

Experienced promoters: RHPL is managed by Mr. Dilip Kumar Pal who
has more than two decades of experience in the same industry
through his family business, looks after the day to day operations
of the company. He is being duly supported by the other directors
Mr. Anath Bandhu Pal.

Proximity to potato growing area: RHPL's storage facility is
situated at Hooghly, West Bengal which is one of the major potato
growing regions of the state. The favorable location of the
storage unit, in close proximity to the leading potato growing
areas provides it with a wide catchment and making it suitable for
the farmers in terms of transportation and connectivity.

Incorporated in December 2015, Radhakanta Himghar Private Limited
(RHPL) was promoted by Mr. Dilip Kumar Pal and Mr. Anath Bandhu
Pal to set up cold storage facility in the state of West Bengal
with an aggregate storing capacity of 200000 quintal. The company
has setup its cold storage unit with an aggregate cost of INR9.00
crore funded at debt equity of 2.00x and the company has started
its commercial operations from March 2017.


SAMRAT MULTIPLEX: CARE Assigns B+ Rating to INR10cr LT Loan
-----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Samrat
Multiplex Private Limited (SMPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank
   Facilities           10.00       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SMPL is constrained
by nascent stage & small scale of operations, working capital
intensive nature of operations, customer, geographical & supplier
concentration risk, and presence in highly competitive &
fragmented industry. The rating, however, derives strengths from
the experienced promoters in dealing of wood & wood products
coupled with established group presence in the manufacturing of
various wood products. The ability to scale up the operations,
achieve the envisaged profit margins and efficiently manage the
operating cycle would be the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Nascent stage & small scale of operations: The operations of SMPL
are nascent in stage, since the company commenced its operations
only in January 2018, thereby implying only 2.5 months of
operations. Moreover, the scale of operations expected to remain
small with low tangible networth which limits the financial
flexibility to the extent.

Working capital intensive nature of operations: The operations of
SMPL are working capital intensive in nature with a moderate level
of funds required to be blocked in inventory and debtors. As the
company keeps inventory up to 50-60 days, since the company would
be required to maintain a sufficient level of inventory in order
to fulfill the regular demand flow. Also it provides credit period
of 45-60 days to its customers, since the company would be
required to provide a credit period to the tune of that extent to
its customers, which is also prevalent to the industry. Hence, the
working capital utilization remained high.

Customer, geographical & supplier concentration risk: SMPL is
exposed to a significant customer & geographical concentration
risk, since it possesses only 5 customers as on date, whereas the
sales of the products are confined to Chandigarh and Rajasthan
only. Moreover, the company is also exposed to a significant
supplier concentration risk, since it possesses only 7 suppliers
as on date.

Presence in highly competitive & fragmented industry: SMPL
operates is a highly competitive & fragmented industry with a
large number of players engaged in trading of various wood
products, given the varied demand of the same all over India.
However, comfort can be derived from the established group
presence in the North Indian market.

Key Rating Strengths

Experienced promoters in dealing of wood & wood products: The
overall operations of SMPL are looked after by the director -
Mr. Puneet Singhal, who possesses a total experience of over 14
years in the business of manufacturing & trading of wood products.
Prior to the inception of this company, he was engaged in his
family business.

Established group presence in the manufacturing of various wood
products: SMPL belongs to the Samrat Group which comprises two
more companies viz. Samrat Plywood Limited (SPL) and Samrat
Laminates Private Limited (SLPL), which are engaged in
manufacturing of a wide range of wood products viz. plywood,
veneers, mica, laminates, door skins, exterior cladding, etc. The
said companies possess an established presence in the state of
Punjab, especially in Chandigarh. Incorporated in September 2006,
SMPL is engaged in trading of various wood products viz. 9mm ply,
BWP (Boiling Water Proof) super boards, BWR (Boiling Water
Resistant) black board, commercial plywood, decorative plywood,
teak plywood, MBF (Medium Density Fibreboard) boards of different
varieties, etc. (estimated to comprise ~80% of the annual turnover
going forward), and also various agro commodities viz. wheat,
barley, etc. (estimated to comprise ~20% of the annual turnover
going forward). The said products are sold by the company to
various dealers & distributors across Punjab (mainly Chandigarh)
and Rajasthan, whereas the said products are procured from various
wholesalers across the same regions. Despite having incorporated
in 2006, the company commenced its operations from January 2018.


SARAF TRADING: Ind-Ra Lowers Long Term Issuer Rating to 'D'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Saraf Trading
Corporation Private Limited's (STCPL) Long-Term Issuer Rating to
'IND D' from 'IND B (ISSUER NOT COOPERATING).'

The instruments-wise rating actions are:

-- INR70 mil. Fund-based working capital limit (Long-term/Short-
     term) downgraded with IND D rating; and

-- INR17.5 mil. Non-fund-based limit (Short-term) downgraded
    with IND D rating.

KEY RATING DRIVERS

The ratings reflect STCPL's continuous delays in servicing term
debt obligations over the three months ended March 2018, due to
tight liquidity.

RATING SENSITIVITIES

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

COMPANY PROFILE

Incorporated in 1994, STCPL is a Kerala-based company engaged in
the processing, blending and trading of packaged tea under the
brand, Sun tips. The business was founded by Mr. V.G. Saraf in
1948.


SHALIMAR ISPAT: CARE Assigns B+ Rating to INR6.0cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Shalimar Ispat Udyog (SIU), as:

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

   Short-term Bank
   Facilities           2.00        CARE A4; Assigned

Detailed Rationale and key rating drivers

The ratings assigned to the bank facilities of SIU are constrained
by small scale of operations with low profit margins, working
capital intensive nature of operations and volatility in raw
material prices, partnership nature of constitution, weak capital
structure and debt coverage indicators and stiff competition and
cyclicality associated with the steel industry. The ratings,
however, derive strength from its experienced partners with long
track record of operations.

Going forward, the ability of the firm to increase the scale of
operations, improve capital structure and ability to manage
working capital effectively shall be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low profit margins: The scale of
operations of the firm remained low marked by its total operating
income (TOI) of INR24.64 crore (FY16: INR27.99 crore) with a PAT
of INR0.08 crore (FY16: INR0.08 crore) in FY17. However, the firm
has achieved the turnover of around INR29.00 crore in 11MFY18 as
maintained by the management. Further, the profit margins of the
firm remained low marked by PBILDT margin of 3.60% (FY16: 3.56%)
and PAT margin of 0.32% (FY16: 0.29%) in FY17.

Working capital intensive nature of operations and volatility in
raw material prices: Ingots, billets, angles, channels, plates
etc. are major raw materials for SIU, the prices of which are
highly volatile. Moreover, the firm does not have any long term
contracts with the suppliers for the purchase of the aforesaid
input materials. Hence, the profitability margins of the firm are
exposed to any sudden spurt in the input material prices. The
operations of the firm are highly working capital intensive mainly
due to high inventory period and high debtor realization period
with low credit period.

Accordingly the average working capital utilization has remained
high at around 90% over the last 12 months ending February 2018
restricting the overall financial flexibility. Partnership nature
of constitution: SIU, being a partnership firm, is exposed to
inherent risk of withdrawal of capital by the partners, restricted
access to funding and risk of dissolution on account of poor
succession planning. Furthermore, partnership firms have
restricted access to external borrowing as credit worthiness of
partners would be the key factors affecting credit decision for
the lenders.

Weak capital structure and debt coverage indicators: The capital
structure of the firm remained weak with overall gearing ratio of
3.17x (FY16: 4.59x) and debt equity ratio of 1.69x (FY16: 2.88x)
in FY17. Furthermore, the debt coverage indicators also remained
weak marked by interest coverage of 1.31x (FY16: 1.31x) and total
debt to GCA of 54.35x (FY16: 51.67x) in FY17.

Stiff competition and cyclicality associated with the steel
industry: The spectrum of the steel industry in which the firm
operates is highly fragmented and competitive marked by the
presence of numerous players in northern and eastern India. Since
the type of work done by the firm is mostly commoditized, the firm
faces intense competition from other players induced pressures on
profitability. This apart, SIU's products being steel related, it
is subjected to the risks associated with the industry like
cyclicality and price volatility. The steel industry is sensitive
to the shifting business cycles, including changes in the general
economy, interest rates and seasonal changes in the demand and
supply conditions in the market. Apart from the demand side
fluctuations, the highly capital intensive nature of steel
projects along-with the inordinate delays in the completion impact
the responsiveness of supply side to demand movements. This
results in several steel projects bunching-up and coming on stream
simultaneously leading to demand supply mismatch. Furthermore, the
producers of steel & related products are essentially price-takers
in the market, which directly expose their cash flows and
profitability to volatility of the steel industry.

Key Rating Strengths

Experienced partners with long track record of operations: The
firm started its commercial operations since 1994 and thus has
long track record of operations. Due to long track record of
operations, the partners have established relationship with its
clients. Furthermore, the key partner Mr. Ravi Daga is having more
than two decades of long experience in the same line of business
and he looks after the day to day operation of the firm. He is
further supported by a team of experienced professionals.

Raipur (Chhattisgarh) based, Shalimar Ispat Udyog (SIU) was
established as a partnership firm in May 1994. Since its
inception, the firm is engaged in engaged in manufacturing of MS
bars, squares & rounds, flats, channels, angels and rectangular
bars etc. The manufacturing facility of the firm is located at
Raipur, Chhattisgarh with an installed capacity of 9,000 metric
tonnes per annum.


SHIVA COTTON: Ind-Ra Maintains B+ Rating in Non-Cooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shiva Cotton
Industries' (SCI) Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions are:

-- INR60 mil. Fund-based working capital limit maintained in
    Non-Cooperating Category with IND B+ (ISSUER NOT COOPERATING)
    rating; and

-- INR35 mil. Long-term loans maintained in Non-Cooperating
    Category with IND B+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 22, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2014, SCI commenced operations in March 2015 in
the Shahpur District of Karnataka. Its registered office is in
Sendhwa, Madhya Pradesh. The firm is primarily engaged in the
ginning and pressing of cotton. It has 36 ginning machines and one
pressing machine.  Mr. Shyamsunder Goyal, Mr. Gopaldas Agarwal and
Mr. Pawan Kumar Agarwal are the partners.


SHIVA SHREE: CRISIL Migrates B- Rating to Not Cooperating Cat.
--------------------------------------------------------------
CRISIL has been consistently following up with Shiva Shree
Builders (SSB) for obtaining information through letters and
emails dated March 21, 2018, April 12, 2018 and April 18, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                     Amount
   Facilities       (INR Mln)     Ratings
   ----------       ---------     -------
   Cash Credit           8        CRISIL B-/Stable (Issuer Not
                                  Cooperating; Rating Migrated)

   Project Loan          1.9      CRISIL B-/Stable (Issuer Not
                                  Cooperating; Rating Migrated)

   Proposed Long Term
   Bank Loan Facility    2.93     CRISIL B-/Stable (Issuer Not
                                  Cooperating; Rating Migrated)


   Term Loan             3.17     CRISIL B-/Stable (Issuer Not
                                  Cooperating; Rating Migrated)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shiva Shree Builders, which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
Shiva Shree Builders is consistent with 'Scenario 2' outlined in
the 'Framework for Assessing Consistency of Information with
CRISIL BBB rating category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of Shiva Shree Builders to CRISIL B-/stable Issuer not
cooperating'.

SSB was set up in 1990, promoted by Mr V Shivarajan and his family
members. The firm is currently developing residential real estate
projects in Coimbatore, Tamil Nadu.


SHOBHA RICE: CRISIL Moves B+ Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has been consistently following up with Shobha Rice Mill
Private Limited (SRMPL) for obtaining information through letters
and emails dated March 26, 2018, April 10, 2018 and April 16, 2018
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                     Amount
   Facilities       (INR Mln)     Ratings
   ----------       ---------     -------
   Bank Guarantee        6        CRISIL A4 (Issuer Not
                                  Cooperating; Rating Migrated)

   Cash Credit           1.5      CRISIL B+/Stable (Issuer Not
                                  Cooperating; Rating Migrated)

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Shobha Rice Mill Private
Limited, which restricts CRISIL's ability to take a forward
looking view on the entity's credit quality. CRISIL believes
information available on Shobha Rice Mill Private Limited is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the ratings on bank
facilities of Shobha Rice Mill Private Limited to CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.

Incorporated in 1993, SRMPL mills non-basmati rice. The company
primarily mills rice on a jobwork basis for state government
departments and does very small proportion of own milling and
sales. The manufacturing facility is in Bhelwadih, Chhattisgarh.
The directors are Mr Murlidhar Agarwal, and Mr Har Prasad Rathor,
who also manages operations.


SLK PROGRESSIVE: CRISIL Reaffirms B+ Rating on INR2.0MM Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of SLK Progressive Veneer Private Limited
(SLK).

                     Amount
   Facilities       (INR Mln)      Ratings
   ----------       ---------      -------
   Cash Credit          0.5        CRISIL B+/Stable (Reaffirmed)

   Letter of Credit     7.5        CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility   2.0        CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the company's small scale of
operations in the intensely competitive plywood industry, and
large working capital requirement. These weaknesses are partially
offset by the extensive industry experience of the promoters.

Key Rating Drivers & Detailed Description

Weaknesses:

Small scale of operations in intensely competitive businesses:
Small scale of operations, indicated by revenue of INR12.88 crore
in fiscal 2017, limits the company's bargaining power. Also, it
faces intense competition in the plywood-manufacturing and veneer
trading businesses, which are highly fragmented and have several
small players.

Large working capital requirement: The working capital-intensive
operations are reflected in gross current assets of 211 days as on
March 31, 2017, driven by large receivables.

Strength:

Extensive experience of promoters: SLK's key promoters, Mr Vijay
Kedia, Mr Dilip Kedia, and Mr Rohit Kedia, have experience of over
a decade in the timber industry. Their experience should help the
company post healthy revenue growth over the medium term.
Established relationships with major suppliers and customers
strengthen its market position.

Outlook: Stable

CRISIL believes SLK will continue to benefit from its promoters'
extensive experience. The outlook may be revised to 'Positive' if
revenue and operating profitability improve considerably, leading
to increase cash accrual or if networth rises on account of equity
infusion. The outlook may be revised to 'Negative' if revenue or
operating margin reduces substantially, or if the financial risk
profile and liquidity weaken because of large, debt-funded capital
expenditure or stretch in working capital cycle.

Incorporated in 2011 by Kolkata-based Patel and Kedia families,
SLK manufactured veneer and traded in timber till fiscal 2017. In
fiscal 2018, it stopped trading in timber and manufacturing veneer
(primarily on account of unavailability of quality raw material)
and now manufactures plywood (the company started manufacturing
plywood in fiscal 2016) and trades in imported veneer. The company
has installed plywood manufacturing capacity of 300 tonne per
month, of which, 57% was utilized in fiscal 2018.


SRI MUTHUMARI: CRISIL Reaffirms D Rating on INR7MM Term Loan
------------------------------------------------------------
CRISIL has reaffirmed its ratings on the long term bank loan
facilities of Sri Muthumari Charitable and Educational Trust
(SMCET) at 'CRISIL D'.

                     Amount
   Facilities       (INR Mln)     Ratings
   ----------       ---------     -------
   Term Loan             7        CRISIL D (Reaffirmed)

The ratings continue to reflect instances of delay by SMCET in
servicing its term debt obligations; the delays have been caused
by weak liquidity, arising from the mismatch in the trust's cash
flows.

The ratings also factor in the SMCET's modest scale of operations
in an intensely competitive educational sector and geographical
concentration in revenue profile. The trust, however, benefits
from the healthy demand prospects for education offerings in India
and the extensive experience of its promoter in the education
industry.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest scale of operations in competitive segment: With revenue
of INR10.9 crore for fiscal 2017, scale remains small in the
competitive education sector.

* Geographic concentration in revenue profile: SMCET faces
geographical concentration with presence only in Karaikudi, Tamil
Nadu, and also is governed by various government and quasi-
government agencies, such as the AICTE, universities, and state
governments.  Any adverse regulatory changes will affect the
trust's performance over the medium term.

Strength:

* Extensive experience of promoters: The trust was founded by Mr.
Periyasamy in 2010. Over the years the trustee has established the
colleges offering under graduate in Engineering and teacher
education courses and also run a school.

SMCET, located in Karaikudi (Tamil Nadu), was set up in 2010 as a
trust registered under the Indian Trust Act, 1881.The trust offers
undergraduate courses in engineering and teacher education courses
and also runs a school. The operations of the trust are managed by
Mr.Periyasamy.


STALLION INVESTMENTS: Ind-Ra Withdraws BB Long Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Stallion
Investments Private Limited's (SIPL) Long-Term Issuer Rating of
'IND BB (ISSUER NOT COOPERATING)'.

The instrument-wise rating action is:

-- The IND BB rating on the INR47.19 mil. Term loan is withdrawn.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the ratings, as the
agency has received no dues certificates from the lenders. Ind-Ra
will no longer provide analytical and rating coverage for SIPL.

COMPANY PROFILE

SIPL was established in 1981. The promoters own a building,
Queen's Mansion, in the Fort area of Mumbai that contains 15
commercial and 28 residential units.


STAR WIRE: CARE Assigns 'B' Rating to INR42cr LT Loan
-----------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Star
Wire India Vidyut Private Limited (SIVL), as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank
   Facilities           42.00      CARE B; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SIVL is primarily
constrained by modest scale of operations with relatively low net
worth base, net losses, leveraged capital structure and weak
coverage indicators. The rating is further constrained by working
capital intensive nature of operations and seasonal availability
of biomass fuel. The rating, however, draws comfort from
experienced management and execution of long-term Power Purchase
Agreement (PPA).

Going forward; ability of SIVL to operate the plant efficiently
while registering improvement in the financial risk profile shall
be the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Modest scale of operations: The scale of operations stood modest
marked by total operating income and gross cash accruals of
INR43.18crore and INR1.97crore respectively in FY17 (FY refers to
April 1 to March 31). Further, the net worth base also remains
relatively small at INR6.72 crore as on March 31, 2017. The small
scale limits the firm's financial flexibility in times of stress
and deprives it from scale benefits. The company has achieved TOI
of INR40.15 crore during 9MFY18 (refers to the period April 1 to
December 31, based on provisional results).

Net losses, leveraged capital structure and weak coverage
indicators: Despite of PBILDT margins at around 20% in the past
two financial years (FY16 and FY17), the company incurred net
losses mainly on account of high interest cost burden due to debt
funded capital expansion incurred in past. The company has debt
mainly in form of term loans and working capital borrowings. The
capital structure of the company marked by debt equity and overall
gearing stood highly leveraged at above 4x and 8x respectively as
on past three balance dates i.e. March 31, 'FY15-'FY17, mainly on
account of debt funded capital undertaken coupled with reliance on
external borrowings to meet the working capital requirements
coupled with low net worth base. Further, owing to significantly
high debt levels against the low profitability position; the
coverage indicators stood weak for the past three financial years.

Working capital intensive nature of operations: The company
maintains adequate inventory in form of farm waste & mills and
fuel supply for the un-interpreted power generation process. The
average inventory stood at 19 days for FY17. SIVL issue invoices
on monthly bases and normally receives payment within 60 days from
clearance of invoice by Haryana Power Purchase Center (HPPC). On
the contrary, lower period is received by SIVL from the suppliers,
which upsurges SIVL reliance on external borrowings to meet
working capital requirements. The average utilization of the
working capital limits remained 85% utilized for the past 12
months ending on February, 2018.

Key Rating Strengths

Experienced management: The company, incorporated in 1991 was
promoted by Mr. Varun Todi and Mr. Ajay Padia. The promoters
possess industry experience of more than half decades in power
generation with the company. Mr. Varun Todia is a management
graduate and has more than a decade of experience in the power
generation industry through the company. He has been associated
with the company since its inception. Mr. Ajay Padia is
postgraduate by qualification and is associates with the company
for more than two decades. Prior to this, Mr. Padia has been
associated with Aluminum industry. Both the directors collectively
looks after the overall management of the company.

Execution of long-term Power Purchase Agreement (PPA) with Haryana
Power Purchase Center: The company has entered into a Power
Purchase Agreement (PPA) with HPCC in June, 2012 on behalf of
Uttar Haryana BIjli Vitran Nigam (UHBVNL) and Dakshin Haryana
Bijli Vitran Nigam (DHBVNL) for tenure of 20 years which is
extendable to 10 more years on mutual consent of both the parties.

Delhi based Starwire (India) Vidyut Pvt Ltd (SIVL) (CIN:
U51900DL1991PTC166057) was incorporated in 1991 and commenced
operations in May 02, 2013 SIVL has a 9.90 Megawatt (MW) biomass
based power plant located in village Khurawata of Mahendargarh
District in Haryana.


SURANA META: Ind-Ra Migrates 'B' LT Rating to Non-Cooperating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Surana Meta Cast
(India) Private Limited's (SMCPL) Long-Term Issuer Rating at the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:

-- INR103.6 mil. Term loan due on June 2023 migrated to Non-
     Cooperating Category with IND B (ISSUER NOT COOPERATING)
     rating;

-- INR25 mil. Fund-based limits migrated to Non-Cooperating
     Category with IND B (ISSUER NOT COOPERATING) rating; and

-- INR25.5 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
April 19, 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 2010, SMCPL manufactures stainless steel ingots,
flat bars and round bars. It has a manufacturing facility in
Mehsana, Ahmedabad. The site has an installed capacity of 4,000
metric tons per annum.


SUPREME AHMEDNAGAR: Ind-Ra Migrates 'D' Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme
Ahmednagar Karmala Tembhurni Tollways Private Limited's (SAKTTL)
senior project bank loan to the non-cooperating category. The
issuer did not participate in the surveillance 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 D
(ISSUER NOT COOPERATING)' on the agency's website.

The instrument-wise rating action is:

-- INR4,050 bil. Bank loans (long-term) migrated to Non-
     Cooperating Category with IND D (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The rating was last reviewed on
March 23, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.

COMPANY PROFILE

SAKTTL is a special purpose vehicle incorporated to implement a
61.71km lane extension (two to four lanes) on the Ahmendnagar-
Karmala-Tembhurni section of State Highway 141 in Maharashtra,
under a 22.78-year concession from the state government. The
project is sponsored by Supreme Infrastructure India Ltd.


SUPREME BEST: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme Best
Value Kolhapur (Shiroli) Sangli Tollways Private Limited's term
loan rating to the non-cooperating category. The issuer did not
participate in the surveillance 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 D (ISSUER NOT
COOPERATING)' on the agency's website.

The detailed rating actions are:

-- INR1,800 bil. Term loan - Facility A (Long-term) due on
    March 31, 2027 migrated to non-cooperating category with
    IND D (ISSUER NOT COOPERATING) rating; and

-- INR675 mil. Term loan Facility B (Long-term) due on March 31,
     2029 migrated to non-cooperating category with IND D (ISSUER
     NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 23, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

The company was set up by Supreme Infrastructure BOT Holdings
Private Limited, a subsidiary of Supreme Infrastructure India Ltd
('IND D (ISSUER NOT COOPERATING') to complete the construction of,
and operate and maintain, the 52km stretch of state highway
connecting Shiroli and Sangli under a concession from the Public
Works Department, the government of Maharashtra.


SUPREME INFRAPROJECTS: Ind-Ra Moves D Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme
Infraprojects Private Ltd.'s term loan to the non-cooperating
category. The issuer did not participate in the surveillance
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 D (ISSUER NOT COOPERATING)' on the agency's
website.

The detailed rating action is:

-- INR646.9 mil. Term loans (Long term) due on March 31, 2022
     migrated to Non-Cooperating Category with IND D (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Supreme Infraprojects is a special purpose company owned by
Supreme Infrastructure BOT Private Limited, a 100% subsidiary of
Supreme India Infrastructure Limited (IND D(ISSUER NOT
COOPERATING). It was set up to complete the construction of, and
operate and maintain, the 55.77km state highway connecting Patiala
and Malerkotla under a re-assigned concession from Public Works
Department, the government of Punjab. The project commenced
operations on June 25, 2012.


SUPREME KOPARGAON: Ind-Ra Migrates 'D' Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme Kopargaon
Ahmednagar Tollways Private Ltd.'s (SKATPL) term loan to the non-
cooperating category. The issuer did not participate in the
surveillance 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 D (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating action is:

-- INR1,750 bil. Term loan due on June 30, 2019 migrated to Non-
     Cooperating Category with IND D (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The rating was last reviewed on
March 28, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.

COMPANY PROFILE

SKATPL was set up by Supreme Infra BOT Private Ltd (a 100%
subsidiary of Supreme India Infrastructure Limited) to complete
the construction of, and operate and maintain the 55km stretch of
state highway SH-10 that connects Kopargaon and Ahmednagar. The
project is a re-assigned concession from the Public Works
Department, government of Maharashtra. It commenced operations on
September 24, 2011.


SUPREME PANVEL: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme Panvel
Indapur Tollways Private Limited's (SPITPL) senior project bank
loans to the non-cooperating category. The issuer did not
participate in the surveillance 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 D (ISSUER NOT
COOPERATING)' on the agency's website.

The instrument-wise rating action is:

-- INR9,000 bil. Bank loans (long-term) migrated to Non-
     Cooperating Category IND D (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The rating was last reviewed on
March 23, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the rating.

COMPANY PROFILE

SPITPL is a special purpose company incorporated to implement a
84km lane expansion (from two lanes to four lanes) project on a
design, build, finance, operate and transfer basis, under a 21-
year concession from National Highways Authority of India ('IND
AAA'/Stable). SPITPL is a joint venture between Supreme
Infrastructure India Ltd (64%), China State Construction
Engineering Hong Kong Limited (26%) and Mahavir Road and
Infrastructure Pvt Limited (10%).


SUPREME SUYOG: Ind-Ra Migrates 'D' LT Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Supreme Suyog
Funicular Ropeways Private Ltd.'s (SSFRPL) proposed bank loans to
the non-cooperating category. The issuer did not participate in
the surveillance 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 D (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions is:

-- INR600 mil. Bank loans (long-term) migrated to Non-
    Cooperating Category with IND D (ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

SSFRPL is a special purpose vehicle incorporated to construct a
funicular railway at Haji Malanggad, Ambernath (Maharashtra) on a
build, operate and transfer basis under a 24.5 years concession
agreement with the government of Maharashtra. SSFRPL is sponsored
by Supreme Infra BOT Private Limited (98%), which is a 100%
subsidiary of Supreme Infrastructure India Limited, Suyog
Telematics Private Ltd (1%) and Yashita Automotive Engineering
Private Ltd (1%).


TILECO NATURAL: CARE Assigns B Rating to INR3.86cr LT Loan
----------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Tileco
Natural Stones Private Limited (TNSPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities           3.86        CARE B; Stable Assigned

   Long-term Bank       1.75        CARE B; Stable/CARE A4
   Facilities/                      Assigned
   Short-term Bank
   Facilities

Rating Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of TNSPL are primarily
constrained on account of its small scale of operations, moderate
profitability margins, moderate capital structure, weak debt
coverage indicators and working capital intensive nature of
operations. The ratings are, further, constrained on account of
risk associated with availability of raw material and its presence
in a highly competitive marble industry with its linkage to
cyclical real estate sector.

The ratings, however, derive strength from the experienced and
qualified management with strong group presence and location
advantage with ease of availability of raw material and labour.

The ability of the company to increase its scale of operations
while improving profitability along with efficient working capital
management and stabilizing its operations are the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small scale of operations with moderate PBILDT margin: During
FY17, Total Operating Income (TOI) improved by 75.11% over FY16
mainly due to increase in trading of marbles, however stood small
at INR1.14 crore. Further in FY18, the company registered TOI of
INR2.00 crore approximately. The profitability margins of the
company stood moderate with PBILDT margin of 17.41% in FY17 as
against 27.23% in FY16. Despite decrease in PBILDT margin, the
company registered net profit of INR0.01 crore against net loss of
INR0.03 crore in FY16.

Moderate Capital structure, weak debt coverage indicators and
working capital intensive nature of operations:  The capital
structure of the company stood moderate with overall gearing of
1.27 times as on March 31, 2017, however, improved from 18.98
times as on March 31,2016 mainly on account of considering of
INR0.78 crore as quasi equity. However, going forward the capital
structure is expected to deteriorate, due to availment of new term
loan of INR4.00 crore. The debt coverage indicators stood weak
with total debt to GCA at 264.67 times as on March 31, 2017,
against cash losses in FY16. Also, the interest coverage ratio
stood modest at 1.02 times during FY17.

Further, average utilization of the working capital bank borrowing
limits stood moderate at 60% for the last 8 months ended March,
2018.

Risk associated with availability of raw material and foreign
exchange fluctuation: The quality of raw material (i.e. sandstone,
lime stone, marble etc.) has a high degree of heterogeneity since
it is a natural resource extracted from mines. The inherent risk
associated with this industry is that it is very difficult to
procure the same quality of stones from the mines on a consistent
basis. The company procures raw material based on the requirement
of the order from various places, viz. local suppliers in
Rajasthan and through imports mainly from Italy, Turkey and
Vietnam. The availability of the appropriate quality and quantity
of the raw material depends upon the mining operations as marbles
and stones are natural products with limited reserves.

Presence in a highly competitive marble industry and linkage to
cyclical real estate sector: Currently size of the Indian Marble
Industry is about INR20,000 crore and it is considered to be
highly fragmented with presence of large number of organized and
unorganized player. The industry is concentrated in Rajasthan and
Gujarat and majority of the processing units are clustered around
the mining area. The entry barriers to the industry are very low
and the operating margin is susceptible to new capacity additions
in the industry. The industry is primarily dependent upon demand
from real estate and construction sector across the globe. The
real estate industry is cyclical in nature and is exposed to
various external factors like the disposable income, interest rate
scenario, etc. Any adverse movement in the macro-economic factors
may affect the real estate industry and in turn business
operations of OMGL.

Key Rating Strengths

Vast experience of promoters and strong group support: The
promoters of the company have more than two decades of experience
in the marble and granite industry. Mr. Umesh Khetan, graduate by
qualification, looks after the overall management of the company
along with high father Mr. Bhawari lal Khetan. Further the
promoters are supported by qualified and experienced employees.

Location advantage with ease of availability of raw material and
labour:  OMGL's processing facility of marbles & granites is
situated in Rajasthan which has the largest reserve of marbles &
granites in India with estimated reserves of 2075.64 crore cubic
metres accounting of more than 91% of the total marble reserves of
the country. There are many units located in the cities of
Rajasthan, which are engaged in the business of mining and
processing of marbles. Further, skilled labour is also easily
available by virtue of it being situated in the marble & granite
belt of India.

TNSPL was incorporated in 2005 by Khetan family. Till FY17, it is
engaged in the trading of marble, granite and tiles blocks and
slabs at its unit located at Bagru (Rajasthan). Further in FY18,
the company undertook a project for setting up of plant and
machinery for manufacturing and export of marble, granite and
tiles with the envisaged cost of INR5.5 crore funded through term
loan of INR4 crore and balance through capital as well as
unsecured loans. The project was completed in March, 2018 with an
installed capacity of 1,00,000 Square Feet Per Month (SFPM) to
process marble, granite and tiles and has utilized 30% of total
installed capacity during FY18.


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

The instrument-wise rating actions are:

-- INR77.74 mil. Term loans I (Long-term) due on March 2024
     migrated to Non-Cooperating Category with IND D (ISSUER NOT
     COOPERATING) rating; and

-- INR9.04 mil. Term loans II (Long-term) due on March 2021
     migrated to Non-Cooperating Category with IND D (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 13, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

VHPPL has established two mini hydel canal-based power projects in
Malavalli taluk in Hebbakavadi village. The company has
successfully implemented the project and is supplying power to the
power-starved Chamundeswari Electricity Supply Company. VHPPL is
contributing to minimize the power shortage of Central Electricity
Supply Company of Orissa.



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


LIPPO KARAWCI: Fitch Downgrades IDR to B & Places Ratings on RWN
----------------------------------------------------------------
Fitch Ratings has downgraded PT Lippo Karawaci TBK's Long-Term
Issuer Default Rating (IDR) to 'B' from 'B+' and its outstanding
senior unsecured US dollar notes to 'B' with a Recovery Rating of
RR4, from 'B+'/RR4. At the same time, Fitch Ratings Indonesia has
downgraded Lippo's National Long-Term Rating to 'BBB+(idn)' from
'A+(idn)'. All the ratings have been placed on Rating Watch
Negative (RWN).

The downgrades reflect the quick cash burn at the standalone
parent company, which has limited the company's liquidity. The
cash burn rate is amplified when excluding subsidiary, PT Siloam
International Hospitals Tbk, in light of Lippo's limited access to
Siloam's cash flow. The exclusion of Siloam from the analysis is
similar to Fitch's approach of excluding Lippo's 54%-held
subsidiary, PT Lippo Cikarang Tbk (LPCK), following Lippo's
divestment of a substantial stake in LPCK's key property project
that could potentially generate annual presales of more than IDR10
trillion.

The RWN reflects heightened risk to Lippo's liquidity,
particularly as the company is restricted from incurring further
debt under its US dollar notes, which had allowed it to manage
cash flow shortages in previous years. As such, Lippo is dependent
on the execution of its asset sales strategy, but its ability to
continue its asset recycling programme is constrained due to
significant delays in injecting assets into the Singapore-listed
real estate investment trusts (REITs) that it sponsors.

'BBB' National Ratings denote a moderate default risk relative to
other issuers or obligations in the same country. However, changes
in circumstances or economic conditions are more likely to affect
the capacity for timely repayment than is the case for financial
commitments denoted by a higher rated category.

KEY RATING DRIVERS

Weak Parent-Company Cash Flow: Fitch expects Lippo's parent-
company net operating cash flow to remain weak in 2018 unless it
is able to sell earmarked assets as intended. Net operating cash
flow before interest expenses and operating lease rent weakened to
IDR365 billion in 2017, from IDR753 billion in 2016, and was
insufficient to cover interest expenses of more than IDR1.1
trillion and operating lease rent of nearly IDR600 billion in
2017. The cash flow deficit was funded primarily via the disposal
of Lippo's stakes in Siloam in 2016 and 2017 for more than IDR1
trillion each year.

Lippo's limited cash flow from property presales and asset sales
to REITs in 2017 was insufficient to cover its large direct costs,
including construction costs, and overheads of its property-
development business, the main driver of its net operating cash
flow shortfall. This was despite Lippo's parent company credit
profile benefiting from steady non-development EBITDA of IDR1.2
trillion in 2017, including dividend income from sponsored
Singapore REITs.

Asset Sale Execution Risk: An improvement in Lippo's liquidity
rests on asset sales to REITs and third parties in the next six to
12 months, although such cash flow is more volatile than
residential property sales due to high execution risk from market
sentiment and regulatory and shareholder approvals. Lippo has a
large amount of property inventory, with a book value more than
IDR21 trillion as at end-2017 at the parent company, but Fitch
expects Lippo to only sell around IDR1.5 trillion of this
inventory in 2018, as its portfolio is skewed towards the middle-
to high-income demographic, where demand is weak. Cash collection
from these sales will flow gradually over two to three years,
tagged to the company's schedule for handing over these properties
to buyers.

Limited Financing Flexibility: Lippo has been unable to maintain
the minimum EBITDA fixed-charge cover ratio (FCCR) of 2.0x on a
consolidated basis as per the indentures of its US dollar bonds.
Substantial carve outs have allowed Lippo to increase its debt
despite not meeting the minimum FCCR, but it has now exhausted
most of the headroom under such carve outs, significantly reducing
its financing flexibility

Large Sellable Inventory and Investments: Lippo has a number of
options to improve its parent company liquidity, chiefly on
account of its large sellable property inventory. The company has
a detailed plan for potential asset disposals in 2018, including
the sale of Mall Puri to Lippo Malls Indonesia Retail Trust
(LMIRT) in the next six to 12 months. However, Fitch believes the
trust will have to issue new equity to fund the purchase due to
the substantial size of Mall Puri in relation to LMIRT's balance
sheet and regulatory limitations on LMIRTs leverage.

Sale of REITs - Not an Issue: Fitch believes the dilution of
Lippo's stake in its REITs, valued at close to IDR7 trillion, is
another option available to the company to shore up its cash
position. Fitch does not expect that such a dilution would hamper
Lippo's asset recycling efforts because related-party purchases
have to be approved by the REIT's minority shareholders as per
Singapore-REIT regulations and because a dilution in REIT
ownership will not have a bearing on Lippo's control of the REITs'
managers.

Average Recovery of Unsecured Debt: Lippo's unsecured debt holders
are likely to benefit from average recovery in the event of
liquidation. Therefore, Fitch has not notched the bond below
Lippo's Long-Term IDR. Fitch has only considered the parent
company's assets and liabilities in the recovery rating assessment
due to Lippo's limited cash flow access from Siloam and LPCK.
However, Fitch considers Siloam's and LPCK's equity values as
available to creditors during a default. A substantial increase in
prior-ranking debt, including debt at Lippo's listed subsidiaries,
could weaken recovery prospects for Lippo's bondholders and the
unsecured bond rating. However, Lippo has considerable headroom
under Fitch's recovery estimates before this happens.

DERIVATION SUMMARY

Lippo's credit profile is weaker than that of PT Kawasan Industri
Jababeka Tbk (Jababeka, B+/A(idn)/Stable) and PT Agung Podomoro
Land Tbk (APLN, B+/Stable) due to Lippo's smaller presales scale
at the parent company, higher volatility attached to asset sales
to REITs and institutional buyers and weaker non-development cash
flow interest coverage of around 1.0x.

Jababeka has annual presales of IDR1 trillion-1.5 trillion,
limited construction overheads associated with selling industrial
land - which are easily funded by customer advances, improving net
operating cash flow - and non-development EBITDA/interest expenses
of more than 1.0x. Around half of Jababeka's presales stem from
industrial land sales and could be more volatile during economic
downturns than residential sales, but Fitch believes there is
higher uncertainty for Lippo's asset sales, which could make up a
bulk of its operating cash flow in the medium term. Lippo's also
has less flexibility to cover construction costs using customer
advances due to its higher exposure to high-rise residential
properties, which have longer construction cycles and higher
construction costs than industrial land. This limits flexibility
during property cycle downturns. For these reasons Fitch rates
Lippo one-notch lower than Jababeka on the international scale and
two notches lower on the national scale.

APLN is similarly exposed to high construction costs and high-rise
projects as Lippo, but APLN has large operating scale, with annual
presales of more than IDR3 trillion, substantial non-development
cash flow coverage of interest expenses and lower leverage, which
supports APLN's higher rating.

Lippo's credit profile is more in line with peers such as PT
Modernland Realty Tbk (B/Stable) and PT Alam Sutera Realty Tbk
(ASRI, B/Stable). Both peers generate annual attributable presales
of around IDR2 trillion or more, with around half of this stemming
from industrial land sales in Modernland's case and raw land sales
to other developers for ASRI. The peers also have a demonstrated
record in executing land sales during downturns. Lippo's asset
sales are more volatile than that of Modernland and ASRI, but its
large non-development cash flow coverage of interest expense
counterbalances its sales volatility to an extent and supports a
similar rating to Modernland and ASRI. However, the high execution
risk attached to Lippo's near-term plans, which could further
weaken its credit profile in the short-term, are reflected in the
RWN on its ratings.

On the national scale, Lippo has a stronger credit profile than PT
PP Properti Tbk (standalone rating: BBB(idn)) due to Lippo's large
non-development EBITDA scale, fixed-charge coverage of around 1.0x
and larger property inventory and land bank.

The RWN on Lippo's rating reflects the risk that the company's
financing flexibility and liquidity could deteriorate further in
the next six to 12 months, in which case its National Long-Term
Rating could fall by more than one notch.

KEY ASSUMPTIONS

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

  - Parent company to sell property from existing projects worth
IDR1.5 trillion in 2018

  - Lower construction costs at the parent company in 2018
compared with 2017 on account of sales stemming from existing
projects and near complete inventory

  - Neutral to positive net operating cash flow at the parent
company in 2018

RATING SENSITIVITIES

Fitch will look to resolve the RWN depending on whether there is
meaningful progress in executing Lippo's planned asset sales, and
whether the company is on track to meet at least IDR1.5 trillion
of property presales at the parent company level in 2018, or
whether there is a further deterioration in liquidity.

LIQUIDITY

Weak, but First Maturity in 2019: Lippo had committed undrawn
credit facilities of around IDR1.5 trillion at end-2017, plus more
than IDR1 trillion of cash at the parent company level. This
compared favourably against IDR1.3 trillion of short-term working
capital loans coming up for renewal in the next 12 months and
near-term contractual maturities of long-term debt of IDR555
billion Lippo has the option to extend around IDR675 billion of
its working capital loans to end-September 2019 and can generate
neutral-to positive-free cash flow if it disposes of Mall Puri in
2018. This would result in adequate liquidity in the near term.
However, if it cannot execute its asset disposal plans in 2018,
liquidity could weaken substantially compared to Fitch's current
estimates.

FULL LIST OF RATING ACTIONS

PT Lippo Karawaci TBK

  - Long-Term Foreign-Currency IDR downgraded to 'B' from 'B+';
    on RWN

  - Long-Term Local-Currency IDR downgraded to 'B' from 'B+'; on
    RWN

  - Senior unsecured debt rating downgraded to 'B/RR4' from
    'B+/RR4'; on RWN

  - National Long-Term Rating downgraded to 'BBB+(idn)' from
    'A+(idn)'; on RWN

Theta Capital Pte Ltd

  - USD410 million senior unsecured 7.00% notes due 2022
    downgraded to 'B/RR4' from 'B+/RR4'; on RWN

  - USD425 million senior unsecured 6.75% notes due 2026
    downgraded to 'B/RR4' from 'B+/RR4'; on RWN



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


MALAYSIAN NEWSPRINT: Hong Leong, Other Shareholders Sell Shares
---------------------------------------------------------------
The Sun Daily reports that Hong Leong Industries Bhd (HLI), The
New Straits Times Press (Malaysia) Bhd (NSTP) and other
shareholders of Malaysian Newsprint Industries Sdn Bhd (MNI), have
entered into a shares sale agreement on May 2, to sell their
interests to Asia Honour (Hong Kong) Ltd.

This was done with the consent of liquidator, Lim San Peen of
PricewaterhouseCoopers Advisory Services Sdn Bhd (PwC Advisory),
the report says.

HLI will sell its entire stake in MNI for RM22.3 million, while
NSTP will pocket RM14.15 million according to its parent Media
Prima Bhd in a filing with the stock exchange on May 4, the Sun
Daily relays.

The Sun Daily relates that the two companies will also sell their
entire interests in redeemable preference shares of MNI for an
amount equivalent to HLI and NSTP respective portion of the
balance consideration, after deducting inter alia all secured
debts, admitted debts, liquidation costs and other agreed costs
from the sum of RM338.0 million.

Both HLI and NSTP will be able to recoup part of its investments
which have been full written down, the report notes.

The report says the sale consideration was arrived at on a willing
buyer willing seller basis, taking into account the value of the
assets in MNI.

HLI and NSTP will receive the full sale consideration by September
2018, the Sun Daily discloses.

PwC Advisory will apply to the court for the termination of the
creditors' voluntary winding-up of MNI after the payments of inter
alia all secured debts, admitted debts, liquidation costs and
other agreed costs, the report adds.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 14, 2017, ScandAsia said Malaysian Newsprint Industries (MNI)
had gone bankrupt. The Norwegian company Norske Skog is a partial
owner of the company together with Hong Leong Group, The New
Straits Times Press, and Rimbunan Hijau Group. ScandAsia related
that the board of directors has concluded that the company no
longer can proceed do to a very low demand on newspaper.

Malaysian Newsprint Industries manufactured and supplied paper
across South East Asia with customers from Malaysia, Singapore,
and Hong Kong. The company was established in 1996, in Pahang
Mentakab as an attempt to allow Malaysian and Singaporean
newspaper to source their newsprint without having to import,
according to ScanAsia.



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


CHALLENGE STEEL: Secured Creditors Receive NZ$6,727 Payments
------------------------------------------------------------
Chris Hutching at Stuff.co.nz reports that the main secured
creditor of Challenge Steel which went bust last year has been
repaid NZ$6,727 - but further significant recovery of the total
NZ$10 million debt is unlikely.

About NZ$6 million of the NZ$10 million was owed to 40 unsecured
creditors which included suppliers and sub contractors. Employees
of Challenge Steel received a preferential payment of NZ$57,000
from the liquidator, Stuff discloses.

According to Stuff, the biggest winners out of the liquidation
process so far included lawyers who were paid NZ$230,850 and the
liquidator Colin Gower whose company BDO received NZ$150,000.

Stuff relates that the liquidator received a total of NZ$697,863
in recoveries from various sources but it cost about the same to
collect it after legal, professional and other fees were accounted
for.

Company founder Bert Govan, whose company Govan Property Group was
the second secured creditor owed NZ$4.8 million, said he expected
there would be further recovery and would assist where possible,
Stuff relays.

As the second ranking secured creditor behind ANZ, which was paid
the "full and final" amount of NZ$6727, Mr. Govan said he would
stand behind any unsecured creditors, according to Stuff.

Stuff relates that Mr. Govan said the overriding reasons for the
collapse were nothing to do with quality of certified steel from
China but more to do with local issues such as logistics and
timing.

Challenge Steel entered the market with fanfare in 2016 but was
placed in voluntary liquidation 12 months later by directors
including Mr. Govan who has been involved in property developments
over his career, Stuff recalls.

After appointment of the liquidator, Challenge Steel had assisted
in the completion of a building contract by facilitating
importation of steel from China.

Stuff relates that Mr. Gower said in his report he was negotiating
with various parties over pre-liquidation contracts and was
assessing each one.

"It is uncertain whether any recovery to unsecured creditors can
be achieved," the report quotes Mr. Gower as saying. "The
resolution of outstanding contract receivables is a complex
exercise due to the nature of the construction industry and we are
assessing each contract on an individual basis to determine the
most appropriate recovery action. We expect the recovery from
contract receivables to be significantly lower than the book
value."

The liquidator said he would continue to review actions of
management, directors, officers and advisors to the company, adds
Stuff.


NATIVE PLANT: Goes Into Receivership; 35 Jobs at Risk
-----------------------------------------------------
Stuff.co.nz reports that a major grower and supplier of
New Zealand's native plants has gone into receivership, putting 35
jobs at risk if a buyer is not found.

The Native Plant Nursery, which has centres in south Auckland,
Taupo and Christchurch, was put into receivership on April 30, the
report discloses.

According to Stuff, BDO receiver Andrew Bethell said it took over
management of the company after its directors requested the bank
to appoint receivers.

A secured creditor, such as a bank, can appoint a receiver to
collect and sell company assets over which they have a financial
claim, the report notes.

The Native Plant Nursery had 35 staff, all of which were still
employed, he said.

"We're trading the business as normal and we're looking to sell
the business as a going concern," Stuff quotes Mr. Bethell as
saying.

Just last week the company blogged about how it was preparing to
deliver 1.5 million plants over the next five months.

The company started in 1961 as an off-shoot of the Government
agency Department of Lands and Surveys, which was superseded by
the Department of Conservation (DOC) in the 1980s. The company was
sold to private investors in the 1990s and now had 24 investors
spread across Auckland, Taupo and Wellington.

In 2012 it was reported that the nursery was the biggest producer
of native plants and seedlings in the country, with more than 2.5
million plants grown each year, Stuff notes.



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


AVATION PLC: Fitch Ups IDRs to 'BB-' & Removes Rating Watch Pos.
----------------------------------------------------------------
Fitch Ratings has upgraded the long-term Issuer Default Ratings
(IDRs) of Avation PLC (Avation), and its subsidiaries, Avation
Capital S.A. and Avation Group (S) Pte. Ltd., to 'BB-' from 'B+'.
The ratings have been removed from Rating Watch Positive. The
Rating Outlook is Stable.

Concurrently, Fitch has converted the rating on Avation Group (S)
Pte. Ltd.'s $300 million of 6.5% senior unsecured notes due 2021
to 'BB-' from 'BB-(EXP)'. Avation intends to use the net proceeds
of the offering to refinance the company's existing 7.50% senior
unsecured notes due 2020, to repay certain existing junior and
senior secured loans, and to pay transaction related fees and
expenses.

KEY RATING DRIVERS - IDRs and Senior Debt

The upgrade reflects Avation's increased financial flexibility
resulting from the unsecured notes issuance, given the increase in
the proportion of unsecured debt in its capital structure and an
increase in unencumbered assets.

The notes issuance will not result in a change in leverage, as the
company will use proceeds received from the unsecured bond
offering to repay existing debt, including secured debt. Avation's
leverage, as measured by gross debt to tangible common equity, was
4.2x at Dec. 31, 2017, and is expected to be reduced in a range of
3.5x-4.0x in the near term due to equity built from capital
retention.

The secured debt paydown will enable Avation to unencumber a pool
of narrowbody and regional aircraft (A321-200 and ATR 72-600) and
increase unsecured debt to 34.1% of total debt, on a pro forma
basis, from 17.2% of total debt as of Dec. 31, 2017. The pro forma
unsecured debt level is within Fitch's 'bb' quantitative benchmark
range for balance sheet-intensive finance and leasing companies.
The company's unencumbered pool will grow to approximately $150
million as a portion of the debt proceeds will be used to repay
secured debt. Fitch believes this issuance will improve the firm's
funding flexibility and will expand its investor base.

Avation's credit ratings are supported by its young average fleet
age of 2.9 years (excluding finance leases) as of Dec. 31, 2017;
currently supportive demand dynamics for the majority of Avation's
fleet; solid profitability; reduced lessee concentration, which
Fitch views as adequate; and measured fleet growth, which is
expected to persist over the outlook horizon.

These strengths are counterbalanced by Avation's limited economies
of scale and high aircraft concentration when compared with larger
lessors; the presence of turboprops in the portfolio, which Fitch
views as niche aircraft; exposure to certain lower credit quality
lessees, which is outsized relative to peers; elevated balance
sheet leverage as measured by gross debt to tangible common
equity; a primarily secured funding profile; and potential
limitations relating to management depth.

Rating constraints applicable to the aircraft leasing industry
more broadly include the monoline nature of the business;
vulnerability to exogenous shocks; potential exposure to residual
value risk; sensitivity to oil prices; reliance on wholesale
funding sources; and increased competition.

The Stable Outlook reflects Fitch's view that while Avation is
currently benefitting from supportive demand dynamics for its
fleet, modest diversification and increasing unsecured debt, the
ratings remain constrained by Avation's limited economies of scale
when compared with larger lessors, elevated leverage, primarily
secured funding profile, and evolving aircraft portfolio.

The unsecured debt rating reflects modest, though improved,
unsecured debt as a portion of total debt as of Dec. 31, 2017, pro
forma for the notes offering, as well as an available pool of
unencumbered assets, which suggest average recovery prospects for
unsecured debtholders.

RATING SENSITIVITIES - IDRs and Senior Debt

Fitch does not expect upward rating momentum to emerge over the
near term. However, over the long term, Avation's ratings could be
positively influenced by improved scale efficiencies, leverage
approaching 3.0x, increased utilization of unsecured funding
sources, and continued demonstration of residual-value risk
management. Improved fleet, geographic and/or lessee
diversification, provided such actions are undertaken at a
moderate pace and do not adversely affect underwriting or pricing
terms, would also be viewed positively.

The ratings could be adversely affected by the credit
deterioration of underlying lessees, particularly those that
represent a meaningful portion of Avation's portfolio, which could
result in lower revenue yields and the need to redeploy aircraft.
Factors that could also lead to negative rating momentum include
maintenance of leverage above 4.0x; rapid expansion that is not
accompanied by consistent underwriting standards and commensurate
growth in capital levels and staffing; deterioration in residual
value realizations; or an inability to successfully navigate
market downturns.

The rating assigned to the senior unsecured debt is equalized with
the company's long-term IDR and would be expected to move in
tandem. However, the unsecured debt rating could be notched below
Avation's IDR should secured debt increase as a percentage of
total debt such that the unencumbered pool contracts and expected
recoveries on the senior unsecured debt were adversely affected.

Fitch has taken the following rating actions:

Avation PLC

  -- Long-term IDR upgraded to 'BB-' from 'B+'.

Avation Capital S.A.

  -- Long-term IDR upgraded to 'BB-' from 'B+';

  -- $150 million 7.5% senior unsecured notes due 2020 upgraded
     to 'BB-' from 'B+'/'RR4';

  -- $300 million 6.5% senior unsecured notes due 2021 converted
     to final rating of 'BB-' from expected rating of 'BB-(EXP)'.

Avation Group (S) Pte. Ltd.
  -- Long-term IDR upgraded to 'BB-' from 'B+'.

The Rating Outlook is Stable.

Avation is a Singapore-headquartered commercial passenger aircraft
leasing company focused on turboprop and jet aircraft in the Asia-
Pacific and European regions. As of Dec. 31, 2017, its fleet
contained 19 ATR72 500-600s, 16 narrowbody regional jets (A320-
321s and F100s) and 2 widebody aircraft (A330-300 and B777-300ER).
The company was incorporated in England and Wales in 2006 and is
listed on the London Stock Exchange under the ticker AVAP.


AVATION PLC: S&P Affirms B+ Issuer Credit Rating, Outlook Pos.
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term issuer credit
rating on Avation PLC, a Singapore-based aircraft leasing company.
The outlook remains positive.

S&P said, "At the same time, we assigned our 'B' long-term issue
rating on the proposed US$300 million senior unsecured notes
issued by Avation Capital S.A. under the medium-term notes (MTN)
program that Avation guarantees. The recovery rating on the notes
is '5'. We have also affirmed our existing 'B' long-term issue
rating on the current US$150 million 7.5% senior unsecured notes
issued under the MTN program. The existing issue rating will be
withdrawn when the transaction is complete and the existing debt
is refinanced.

"We affirmed the rating because we do not view the transaction as
significantly changing the credit risk for Avation. The issuance
is financial in nature and does not meaningfully affect our view
on Avation's underlying business model and operational risks.
Additionally, the refinancing will be leverage neutral so we do
not expect it to alter the company's credit metrics enough to
affect the rating. However, the reduction in secured debt will
unencumber assets and provide additional financial flexibility. We
also view the proactive approach to lengthening the maturity on
the unsecured debt as positive.

"The positive outlook reflects Avation's improving fleet and
reduced customer concentration. We expect Avation to continue to
grow its fleet and diversify its counterparty exposure over the
next 12-24 months. We also anticipate that the company's financial
strength will be at least stable given its growing cash flows are
likely to cover higher debt incurred for new planes."

"The weighted average age of Avation's fleet now compares
favorably to that of its peers and reduces the technology risk
associated with older planes. The company has a relatively young
fleet with long remaining leases. The weighted average age of the
fleet improved to 2.9 years at the end of calendar year 2017, from
5.3 years in the fiscal year ended June 30, 2015. At the same
time, the fleet's average remaining lease term increased to 7.9
years from 6.5 years, also better than peers'.

"Avation's acquisition of two wide-body aircraft in December 2017
has diversified the fleet to 24% wide body, 32% turbo-prop, and
44% narrow-body aircraft by value. Additionally, the concentration
to its top customer, Virgin Australia, has reduced to 26% of
revenue, from 67% in 2015. S&P expects this share to continue to
decline as Avation grows.

"The company's small size of 37 planes and high customer
concentration continue to constrain its credit quality. We still
view counterparty exposure and limited fleet diversity as key
risks for Avation. The company faces risks from unexpected issues
with the ATR 72 aircraft. We estimate that this model contributes
about 32% of the company's leasing revenue. Disruptions at Virgin
Australia or Vietjet could also hurt Avation's business because
these companies represent 26% and 21% of revenue, respectively.
We expect airline passenger demand to continue to grow over the
next three to five years, particularly in Asia-Pacific. We believe
aircraft leasing will be a major source of financing for airlines
because it is difficult for many of them to finance fleet
modernization and expansion solely through internal funds and
secured bank borrowings. We therefore expect Avation to grow and
diversify its operations further.

"Avation's capital structure reflects the company's aggressive
growth and the associated high leverage. Given the company's fleet
expansion plan, we expect its capital expenditure to remain high
at US$250 million-US$300 million in fiscal 2018, and US$175
million-US$225 million in fiscal 2019. We project Avation's debt
to increase to US$850 million-US$900 million in fiscal 2018.
The positive outlook reflects our expectation that Avation will
expand its fleet and reduce earnings concentration from its top
three customers over the next 12-18 months. We anticipate that the
company will maintain good profitability and moderately increase
leverage, with EBIT interest coverage of around 1.6x and a ratio
of FFO to debt of 7%-9% over the period.

"We would revise the outlook to stable if Avation fails to
meaningfully broaden its asset base. This could happen if the
company's fleet mix remains concentrated on turbo-prop aircraft,
or if the new planes on order are mainly placed with the largest
customers. The EBIT interest coverage deteriorating to below 1.5x
could also trigger an outlook revision.

"We would upgrade Avation if the company continues to grow and
diversify its operations. We would also expect Avation to maintain
a consistent financial policy, so that its EBIT interest cover
remains above 1.5x and FFO-to-debt ratio stays above 7%."



                             *********

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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