TCRAP_Public/190109.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Wednesday, January 9, 2019, Vol. 22, No. 006

                            Headlines


A U S T R A L I A

FORSYTH HOLDINGS: Second Creditors' Meeting Set for Jan. 17
MESOBLAST LIMITED: Corporate Review from Chief Executive Itescu
ROGER DAVID: Relied on Credit to Stay Afloat, Administrators Say


C H I N A

CHINA SCE: S&P Rates New US Dollar Sr. Unsecured Notes 'B'
GUANGZHOU R&F: Fitch Rates Proposed USD Sr. Notes BB-(EXP)
GUANGZHOU R&F: Fitch Gives Final BB- Rating to USD500MM Sr. Notes
HNA GROUP: Touts Assets for Sale as Funding Crunch Intensifies
IDEANOMICS INC: Shareholders Elect Nine Directors

POWERLONG REAL ESTATE: S&P Rates New USD Unsecured Notes 'B'


H O N G  K O N G

ASM PACIFIC: S&P Withdraws 'BB+' Issuer Credit Rating
IMPERIAL PACIFIC: Moody's Withdraws Caa1 CFR for Business Reasons


I N D I A

AATULYA LIFECARE: CARE Reaffirms D Rating on INR5.20cr LT Loan
ALI JEWELLERS: CRISIL Assigns 'B' Rating to INR10cr Cash Loan
AMG ROTANA: CRISIL Lowers Rating on INR6cr Cash Loan to D
BASANT CITY: CARE Lowers Rating on INR50cr LT Loan to B+
BRIOTA PAPER: ICRA Assigns 'B+' Rating to INR7cr Term Loan

EASTERN PETROLEUM: CRISIL Lowers Rating on INR6.5cr Loan to B+
JET AIRWAYS: Seeks to Rework Vendor Contracts to Cut Costs
KANACHUR ISLAMIC: CARE Moves B Rating to Not Cooperating Category
M R COTTON: CRISIL Hikes Rating on INR6.25cr Cash Loan to B
MEHSANA DAIRY: CRISIL Reaffirms B Rating on INR42.25cr Term Loan

MILROC GOOD: CRISIL Hikes D/Issuer Not Cooperating Rating to B
MISHRIBAI AGRO: CRISIL Withdraws B+ Rating on INR7.5cr Term Loan
NARAIN SINGH: CRISIL Reaffirms B Rating on INR3.75cr Cash Loan
PTG TECHNOPAK: ICRA Reaffirms 'B' Rating on INR5.85cr Loan
PUNJAB ALKALIES: CRISIL Hikes Rating on INR80.7cr Loan to 'B'

RARE ROCKS: CRISIL Assigns B+ Rating to INR2.75cr Cash Loan
RATNAGIRI SEEDS: CRISIL Assigns B+ Rating to INR2.96cr Loan
RELIANCE COMMUNICATIONS: Makes $18.6M Payment in Ericsson Dispute
RHEOMAX GUMS: CRISIL Assigns B+ Rating to INR10cr LT Loan
S THARTIUS: CRISIL Reaffirms B+ Rating on INR5cr Loan

SAHA INFRATECH: CARE Lowers Rating on INR160cr NCD to D
SAKALDEEP COLD: CRISIL Withdraws D Rating on INR3.75cr Term Loan
SHIVAM IRON: CRISIL Withdraws B- Rating on INR125cr Cash Loan
SHRI BALAJI: CRISIL Assigns B- Rating to INR3cr Capital Loan
SHRI BALAJI ROHILKHAND: CRISIL Lowers Rating on INR60cr Loan to D

SREE MANGAYARKARASI: CARE Assigns B+ Rating to INR7.40cr Loan
STARWOOD VENEERS: CRISIL Reaffirms B Rating on INR2cr Loan
SWASHTHIK CAPS: CRISIL Withdraws B+ Rating on INR3.5cr Loan
SWASHTHIK PREFORMS: CRISIL Withdraws B+ Rating on INR4.5cr Loan
TELUGU CINE: Ind-Ra Lowers Rating on INR500MM Bank Loan to 'D'

USHASRI COTTON: CRISIL Assigns 'B' Rating to INR7cr Cash Loan


M A L A Y S I A

1MDB: Malaysia Probes Whether China Offered Bail Out in 2016


S O U T H  K O R E A

HANJIN HEAVY: Philippine Unit Files for Rehabilitation Scheme


                            - - - - -


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


FORSYTH HOLDINGS: Second Creditors' Meeting Set for Jan. 17
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Forsyth
Holdings Group Pty Ltd has been set for Jan. 17, 2019, at the
offices of Courtney Jones & Associates, at Level 1, Suite 5, 443
Little Collins Street, in Melbourne, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 16, 2019, at 4:00 p.m.

Mathew Gollant of Courtney Jones & Associates was appointed as
administrator of Forsyth Holdings on Dec. 10, 2018.


MESOBLAST LIMITED: Corporate Review from Chief Executive Itescu
---------------------------------------------------------------
Mesoblast Ltd has furnished the Securities and Exchange
Commission a copy of a press release disclosing a corporate
review from the Company's Chief Executive Officer Dr. Silviu
Itescu.  The full-text copy of the Corporate Review is as
follows:

Mesoblast will enter 2019 with the most mature cell therapy
product pipeline and technology platform in the regenerative
medicine industry.  Two commercial products have already been
approved and marketed by the Company's licensees JCR
Pharmaceuticals Co, Ltd. in Japan and Takeda Pharmaceutical
Company in Europe.  Mesoblast has one product candidate which has
successfully completed Phase 3 and with near-term commercial
potential in the United States (U.S.), another product candidate
having achieved clinical outcomes in line with the U.S. Food and
Drug Administration (FDA) guidance for a registrable clinical
indication for market authorization, and two additional Phase 3
assets with blockbuster potential.

Mesoblast has recently entered into a strategic cardiovascular
partnership for China with Tasly Pharmaceutical Group, China's
leading cardiovascular company, and is in advanced and active
discussions with a number of potential global commercialization
partners to maximize the value proposition of each of our
blockbuster cell therapy candidates.

Mesoblast's royalty income and milestone payments from licensees
continues to grow, the Company has sufficient cash to achieve key
commercial milestones, and access to additional non-dilutive
sources of capital from strategic financial institutions whose
extensive due diligence provides further third party validation
of the strength of the product portfolio and patent estate.

Below is a summary of the current status of the product portfolio
and the developments expected to take place in 2019.

Substantial Commercialization Opportunities

Mesoblast's proprietary immunoselected and culture-expanded
allogeneic mesenchymal precursor cells (MPCs) are a homogeneous,
well characterized, and highly reproducible cell population that
are manufactured to industrial scale for commercial purposes.
They express an array of surface receptors that bind pro-
inflammatory cytokines and, when placed into a pro-inflammatory
microenvironment, release factors that switch off production of
these cytokines.  Their immunomodulatory mechanism of action
makes MPCs uniquely suited to target resistant diseases where
inflammation plays a central role.

Acute Graft Versus Host Disease, a Life-threatening Inflammatory
Condition

In Q1 2019, the Company plans to initiate the FDA process of
filing a Biologics License Application (BLA) for market
authorization of remestemcel-L in the U.S., where there are no
approved therapies for steroid-refractory acute Graft Versus Host
Disease (aGVHD).  Underpinning Mesoblast's confidence in the U.S.
market access plan is the Japan experience, where Mesoblast's
licensee, JCR Pharmaceuticals, markets TEMCELL1 HS Inj. for
children and adults with aGVHD.

Importantly, TEMCELL has achieved substantial adoption rates in
just over 2.5 years, helping inform the view of the product value
proposition potential in the U.S. market.  With an experienced
commercial leadership in place, Mesoblast is establishing a
focused sales team that will target the principal U.S. transplant
centers, and will be in place on FDA approval to ensure a
successful product launch.

Inflammation Due to Left Ventricular Assist Device Implants in
End-stage Heart Failure Patients

In the first half of 2019, Mesoblast plans to meet with the FDA
to discuss a potential approval pathway following the clinically
meaningful outcomes of reduction in major gastrointestinal (GI)
bleeding and related hospitalizations seen in the U.S. National
Institutes of Health (NIH)-sponsored Phase 2 trial of MPC-150-IM
(Revascor) in patients with end-stage heart failure and a left
ventricular assist device (LVAD).  This potentially
life-threatening complication is the most common non-surgical
complication in LVAD recipients and occurs in up to 40% of
patients.

In the 159-patient trial, a single intra-cardiac injection of
Revascor resulted in a 76% reduction in major GI bleeding
episodes and in 65% reduction in associated hospitalization
events.

Reduction in GI bleeding and associated hospitalizations were the
basis of the Regenerative Medicine Advanced Therapy (RMAT)
designation granted in December 2017 by the FDA for use of
Revascor in LVAD patients based on concordant data from the
earlier 30-patient Pilot Trial.  In a subsequent meeting in 2018,
the FDA advised Mesoblast that reduction in major GI bleeding in
LVAD patients is considered a clinically meaningful outcome by
the FDA and an acceptable endpoint for product approval.

In end-stage heart failure, where intra-cardiac inflammation is
greatest, putting a foreign object (the LVAD) in contact with the
failing left ventricle results in further activation of intra-
cardiac inflammation, which exacerbates pre-existing vascular
dysfunction in the peripheral organs.  The GI blood vessels
respond to vascular dysfunction and reduced flow by generation of
abnormal thin-walled, leaky capillaries (angiodysplasia).  These
pre-dispose LVAD patients to massive and life-threatening GI
bleeding.

Mesoblast believes that reduction in major GI bleeding episodes
by Revascor is due to reduction in intra-cardiac inflammation and
the associated vascular dysfunction in peripheral organs,
including the GI vessels.  If this is correct, this will have
significant read-through to the Phase 3 trial in patients with
class II/III heart failure where intra-cardiac inflammation and
peripheral vascular dysfunction are thought to directly result in
recurrent hospitalizations and terminal cardiac events.

Phase 3 Trial in Moderate to Advanced Chronic Heart Failure, a
Progressive Disease of Cardiac Inflammation

Mesoblast expects to complete patient recruitment in the Phase 3
trial evaluating Revascor in patients with moderate-to-severe
advanced chronic heart failure very shortly.  In the U.S. alone,
there are more than 1.3 million patients with New York Heart
Association (NYHA) class III chronic heart failure who have high
rates of morbidity and mortality despite existing therapies.  The
major unmet medical need in these patients represents a potential
multi-billion dollar market opportunity for Mesoblast.

The primary endpoint for this Phase 3 trial is the ability of
Revascor to reduce recurrent non-fatal heart failure-related
major adverse cardiac events (HF-MACE) in patients with left
ventricular dysfunction.  The key secondary endpoint is to delay
or prevent terminal cardiac events (TCEs), defined as death, left
ventricular assist device implantation, or heart transplant.

It is important to note that in the Phase 2 LVAD trial patients
with ischemic cause of their heart failure showed the greatest
benefits after being treated with Revascor and these patients
closely resemble the majority of patients enrolled in the ongoing
Phase 3 trial of patients with moderate to advanced heart
failure. If the mechanism of action by which Revascor improved GI
bleeding is indeed reduction of intra-cardiac inflammation and
reversal of impaired functioning of blood vessels (endothelial
dysfunction), a known primary cause of morbidity, exercise
intolerance, and mortality in heart failure and a proven
mechanism of action for many drugs in early heart failure, one
would expect to see a reduction in HF-MACE and mortality in this
Phase 3 trial.

Chronic Low Back Pain Due to Inflammatory Degenerative Disc
Disease

In the U.S., the declared opioid public health emergency and
significant associated mortality has brought additional attention
to Mesoblast's product candidate, MPC-06-ID, with the Phase 3
trial completing enrollment of 404 patients in 2018.  More than
half of the prescriptions for opioids are for people seeking
relief from chronic low back pain.  There is a desperate need for
a therapy that can offer both a durable reduction in pain and
improvement in function without the risk of opioid addiction.

Underpinning Mesoblast's confidence that MPC-06-ID may meet this
medical need are the Phase 2 data outcomes that supported the
ongoing Phase 3 trial which showed that a single intra-discal
injection of MPC-06-ID alleviated pain and improved function for
up to three years in patients whose symptoms were not adequately
treated with current standard of care therapies.

The patient population suffering from chronic low back pain due
to intervertebral disease is estimated at more than 3.2 million
patients in the U.S. alone.  Mesoblast's objective is to select
and secure the ideal strategic partner to maximize the value
creation potential inherent in MPC-06-ID.

Upcoming Milestones

Remestemcel-L for Acute Graft Versus Host Disease

  - FDA meetings and BLA filing (Early CY19)

Revascor for End-Stage Heart Failure

  - Meet with FDA to discuss the clinically meaningful GI
    bleeding
Phase 2 trial data for potential BLA filing (1H CY19)

Phase 3 Events-driven Trial in Advanced Heart Failure

  - Complete recruitment (Q4 CY18/Q1 CY19)

  - Cardiovascular partner Tasly Pharmaceuticals to meet with
    National Medical Products Administration to discuss the
    regulatory approval pathway in China (Q1 CY19)

  - Establish global partnership

MPC-06-ID for Chronic Low Back Pain

  - Establish global partnership

                        About Mesoblast

Headquartered in Melbourne, Australia, Mesoblast Limited
(ASX:MSB; Nasdaq:MESO) -- http://www.mesoblast.com/-- is a
global developer of innovative cell-based medicines.  The Company
has leveraged its proprietary technology platform to establish a
broad portfolio of late-stage product candidates with three
product candidates in Phase 3 trials - acute graft versus host
disease, chronic heart failure and chronic low back pain due to
degenerative disc disease.

Through a proprietary process, Mesoblast selects rare mesenchymal
lineage precursor and stem cells from the bone marrow of healthy
adults and creates master cell banks, which can be industrially
expanded to produce thousands of doses from each donor that meet
stringent release criteria, have lot to lot consistency, and can
be used off-the-shelf without the need for tissue matching.
Mesoblast has facilities in Melbourne, New York, Singapore and
Texas and is listed on the Australian Securities Exchange (MSB)
and on the Nasdaq (MESO).

Mesoblast reported a net loss attributable to the owners of
Mesoblast of US$35.29 million for the year ended June 30, 2018,
compared to a net loss attributable to the owners of Mesoblast of
US$76.81 million for the year ended June 30, 2017.  As of
Sept. 30, 2018, Mesoblast had US$688.78 million in total assets,
US$161.19 million in total liabilities, and US$527.59 million in
total equity.

PricewaterhouseCoopers, in Melbourne, Australia, the Company's
auditor since 2008, issued a "going concern" opinion in its
report on the consolidated financial statements for the year
ended June 30, 2018.  The auditors noted that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.


ROGER DAVID: Relied on Credit to Stay Afloat, Administrators Say
----------------------------------------------------------------
Sean Smith at The West Australian reports that only an overdraft
facility prevented Roger David from failing earlier, according to
an analysis by administrators who have detailed the menswear
retailer's unsuccessful battle for survival.

The West Australian relates that insolvency firm KordaMentha,
which was put into Roger David by its family owners in October,
said the 76-year-old company was reliant on the AUD2.8 million
overdraft with National Australia Bank from early 2017 when a
cash shortage began to bite.

In a report to creditors filed in the lead-up to Christmas,
KordaMentha said by the time of its appointment, the overdraft
was fully drawn and Roger David was unable to attract more cash
from new backers or its owners, the West Australian says.

"After considering the trading performance of the company and the
substantial increase in leasehold creditors, it was apparent that
the overdraft facility was insufficient to meet (its) ongoing
working capital requirements in 2017 and 2018," KordaMentha, as
cited by the West Australian, said.

With no buy-out in the offing, Roger David's 55 stores were
closed on December 2 with the loss of 460 full-time and casual
jobs after a clearance sale that realised nearly AUD14 million,
the report says.

According to the West Australian, a deed of company arrangement
backed with AUD400,000 from the Rogers family will have staff
paid out their AUD1.95 million of entitlements and NAB recover
the AUD3.3 million it is owed.

However, unsecured creditors owed AUD23.7 million will get just
13 cents in the dollar, or a cumulative AUD2.8 million.

The West Australian relates that KordaMentha said that, like a
growing number of other Australian retailers, Roger David was
unable to cope with the influx of international fashion
competitors and the rapid rise on online shopping.

Putting the business on the market in 2017, the Rogers family
tried to meet the market threats by closing 45 stores and seeking
to drive more website sales, which accounted for only about 5 per
cent of revenue, the West Australian says.

However, the administrators noted in their report that while the
revamp delivered some early results, profits were held back by
high leasing and labour costs, the report notes.

"It appears store contributions during 2018 had not materially
improved over 2017 despite the closure of underperforming
stores," they said, notes the report.

Stagnating sales drove further discounting, putting even more
pressure on margins. In its last nine months, Roger David lost up
to AUD1.5 million a month on sales that had fallen to below AUD4
million by September.

The West Australian says the final straw was a third-party
dispute that prevented Roger David from accessing its warehouse,
thereby reducing stock on hand in its stores and costing the
group sales.

The Roger David network had 57 stores and approximately 300
employees around Australia. It was established in 1942 and became
one of Australia's best-known clothing brands.

Craig Peter Shepard and Leanne Chesser of KordaMentha were
appointed as administrators of Roger David on Oct. 18, 2018.



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C H I N A
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CHINA SCE: S&P Rates New US Dollar Sr. 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 China SCE Group Holdings Ltd. (CSCE: B+/Stable/--). The China-
based developer intends to use the net proceeds mainly to
refinance certain existing offshore debt. The rating on the notes
is subject to our review of the final issuance documentation.

S&P said, "We rate the proposed notes one notch below the issuer
credit rating on CSCE, reflecting significant structural
subordination risk. As of June 30, 2018, CSCE's capital structure
consists of Chinese renminbi (RMB) 17 billion in secured debt and
RMB15 billion in unsecured debt. The company's secured debt ratio
is around 53%, higher than our notching down threshold of 50%.

"We do not expect the new issuance to materially affect CSCE's
credit profile, given the company intends to use the proceeds
primarily for refinancing debt. In our view, the company will
manage its pace of expansion, while maintaining steady sales
growth and land acquisitions. We expect CSCE's debt-to-EBITDA
ratio to remain 5.0x-6.0x in 2018 and 2019, given the company's
continued good sales growth and robust margins."


GUANGZHOU R&F: Fitch Rates Proposed USD Sr. Notes BB-(EXP)
----------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Guangzhou R&F
Properties Co. Ltd.'s (BB-/Negative) proposed US dollar senior
notes a 'BB-(EXP)' expected rating. The notes are rated at the
same level as Guangzhou R&F's senior unsecured rating because
they constitute its direct and senior unsecured obligations. The
final rating is subject to the receipt of final documentation
conforming to information already received.

The proposed notes will be issued by Guangzhou R&F's subsidiary,
Easy Tactic Limited. Guangzhou R&F has granted a keepwell deed
and a deed of equity interest purchase undertaking to ensure that
the guarantor, R&F Properties (HK) Company Limited, also a wholly
owned subsidiary of Guangzhou R&F, has sufficient assets and
liquidity to meet its obligations. Guangzhou R&F intends to use
the net proceeds from the note issue for debt refinancing and
general corporate purposes.

Guangzhou R&F's ratings are constrained by its high leverage,
measured by net debt/adjusted inventory, of around 60% at end-
June 2018 and 60.2% at end-2017. Guangzhou R&F's high leverage
stems from aggressive land acquisitions in 2017, when it
replenished 18 million sq m of attributable gross floor area of
land bank for CNY58 billion, resulting in an increase in its land
acquisition/contracted sales value ratio to 0.7x from 0.1x-0.3x
in the previous three years, and the acquisition of hotel and
office assets from Dalian Wanda Commercial Management Group Co.,
Ltd. (Wanda; BB+/Stable).

The Negative Outlook reflects limited headroom for leverage,
which is around the threshold where Fitch would consider
downgrading Guangzhou R&F's ratings. The company's pursuit of
scale expansion, to CNY180 billion of contracted sales in 2019-
2020, from CNY131 billion in 2018 and CNY82 billion in 2017,
could see its land acquisition pace increase above its
expectations, which could push leverage beyond 65%.

KEY RATING DRIVERS

Sustained High Leverage: Fitch expects Guangzhou R&F's leverage,
which was above its negative threshold of 60.0% at end-June 2018
and end-2017, to rise to 65.0% in the next year or two. The
company plans to spend 30%-40% of contracted sales proceeds on
land acquisitions in 2018-2019 and increase its construction
expenditure to support growth in contracted sales scale towards
CNY180 billion by 2019. Guangzhou R&F's accelerated land
acquisitions raised its net debt to above CNY123 billion at end-
June 2018 and CNY112 billion at end-2017 (end-2016: CNY77
billion).

Higher Non-Development EBITDA: The company's hotel and rental
income revenue surged by 68% yoy to CNY3.9 billion in 1H18 (2017:
CNY3.3 billion), driven by contributions from the newly acquired
Wanda hotels. Fitch expects Guangzhou R&F's non-property
development revenue to reach CNY8.1 billion in 2018 with full-
year contributions from the Wanda hotels. However, the company's
non-property development EBITDA/gross interest expense ratio will
only moderately improve to 0.24x in 2018-2019, from 0.17x in
2017, as it will be partly offset by possible higher operating
costs of the Wanda hotels.

Stabilising Margins: Guangzhou R&F had an EBITDA margin of 27%
and a gross profit margin of 39% in 1H18, an improvement from 26%
and 35% in 2017, and 21% and 28% in 2016, respectively. The
margins will be supported by the company's unrecognised property
sales of CNY107 billion, which carried a gross profit margin of
39% at end-June 2018 (2017 booked property sales gross profit
margin: 37%). These sales will be recognised over the next year
or two, and will be supported by a recovery in the contracted
average selling price to CNY13,176 per sq m in 8M18, from
CNY12,961 per sq m in 2016.

DERIVATION SUMMARY

Guangzhou R&F's geographical diversification is comparable with
'BB+' and 'BB' rated peers. Its homebuilding scale in contracted
sales is comparable with CIFI Holdings (Group) Co. Ltd.'s
(BB/Stable) CNY104 billion in 2017 and is higher than the CNY40
billion-70 billion of 'BB-' rated peers, such as Yuzhou
Properties Company Limited's (BB-/Stable) CNY40 billion.

However, Guangzhou R&F's ratings are constrained by its weakening
financial profile, following the completion of substantial hotel
and office asset acquisitions from Wanda, as well as its
aggressive land acquisitions. The company's leverage ratio,
measured by net debt/adjusted inventory, of 60% at end-2017 is at
the higher range of the 50%-60% of 'B+' rated peers, such as
China Evergrande Group's (B+/Positive) 60%. Guangzhou R&F will
also need to maintain a land bank of five to six years to support
its expansion in contracted sales, which could limit room for
deleveraging in the next two to three years. Fitch expects the
company's leverage to reach 65% in 2018-2019.

No Country Ceiling, parent/subsidiary or operating environment
aspects affect the rating.

KEY ASSUMPTIONS

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

  - Attributable contracted sales to reach CNY167 billion in
    2019 (2018: CNY131 billion)

  - EBITDA margin of 24%-25% in 2018-2019, slightly lower than
    the 26% in 2017 due to higher operating costs of the Wanda
    assets

  - Hotel and property rental revenue to reach CNY8 billion-
    CNY9 billion in 2018-2019

  - Land bank life reduced to and sustained at four to five
    years, from a high of almost eight years at end-2017

RATING SENSITIVITIES

Developments that May Lead to a Revision in the Outlook to Stable
Include:

  - Net debt/adjusted inventory sustained below 65% (2017: 60%)

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

  - Continued decline in property contracted sales

  - Net debt/adjusted inventory of over 65% for a sustained
    period

LIQUIDITY

Weak but Manageable: Guangzhou R&F had a cash balance of CNY36
billion, including restricted cash of CNY17 billion at end-June
2018, which was insufficient to cover CNY45 billion of debt
maturing in one year. Its cash/short-term debt ratio declined to
0.8x by end-June 2018 from 1.1x at end-2017 and 1.4x at end-2016.
However, cash balances probably improved following record-high
contracted sales of CNY13.5 billion in June 2018 and another
CNY10.5 billion in July 2018. The company has also completed the
issuance of CNY0.5 billion and CNY0.7 billion in 270-day short-
term onshore bonds in August and September 2018, respectively.
Hence, Fitch does not believe Guangzhou R&F will have major
difficulty in refinancing its short-term credit facilities.


GUANGZHOU R&F: Fitch Gives Final BB- Rating to USD500MM Sr. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Guangzhou R&F
Properties Co. Ltd.'s (BB-/Negative) USD500 million 8.75% senior
notes due 2021 a final 'BB-' rating. The notes are rated at the
same level as Guangzhou R&F's senior unsecured rating because
they constitute its direct and senior unsecured obligations.

The notes are issued by Guangzhou R&F's subsidiary, Easy Tactic
Limited. Guangzhou R&F has granted a keepwell deed and a deed of
equity interest purchase undertaking to ensure that the
guarantor, R&F Properties (HK) Company Limited, also a wholly
owned subsidiary of Guangzhou R&F, has sufficient assets and
liquidity to meet its obligations. Guangzhou R&F intends to use
the net proceeds from the note issue for debt refinancing and
general corporate purposes. The assignment of the final rating
follows the receipt of documents conforming to information
already received and is in line with the expected rating assigned
on January 3, 2019.

Guangzhou R&F's ratings are constrained by its high leverage,
measured by net debt/adjusted inventory, of around 60.0% at end-
June 2018 and 60.2% at end-2017. Guangzhou R&F's high leverage
stems from aggressive land acquisitions in 2017, when it
replenished 18 million square metres (sq m) of attributable gross
floor area of land bank for CNY58 billion, resulting in an
increase in its land acquisition/contracted sales value ratio to
0.7x, from 0.1x-0.3x in the previous three years, and the
acquisition of hotel and office assets from Dalian Wanda
Commercial Management Group Co., Ltd. (Wanda; BB+/Stable).

The Negative Outlook on Guangzhou R&F's rating reflects limited
headroom for leverage, which is around the threshold where Fitch
would consider downgrading Guangzhou R&F's ratings. The company's
pursuit of scale expansion, to CNY180 billion of contracted sales
in 2019-2020, from CNY131 billion in 2018 and CNY82 billion in
2017, could see its land acquisition pace increase above its
expectations and push leverage beyond 65%.

KEY RATING DRIVERS

Sustained High Leverage: Fitch expects Guangzhou R&F's leverage,
which was above its negative threshold of 60.0% at end-June 2018
and end-2017, to rise to 65.0% in the next year or two. The
company plans to spend 30%-40% of contracted sales proceeds on
land acquisitions in 2018-2019 and increase its construction
expenditure to support growth in contracted sales scale towards
CNY180 billion by 2019-2020. Guangzhou R&F's accelerated land
acquisitions raised its net debt to above CNY123 billion at end-
June 2018 and CNY112 billion at end-2017 (end-2016: CNY77
billion).

Higher Non-Development EBITDA: The company's hotel and rental
income revenue surged by 68% yoy to CNY3.9 billion in 1H18 (2017:
CNY3.3 billion), driven by contributions from the newly acquired
Wanda hotels. Fitch estimates that Guangzhou R&F's non-property
development revenue reached CNY8.1 billion in 2018 with full-year
contributions. However, the company's non-property development
EBITDA/gross interest expense ratio will only moderately improve
to 0.24x in 2018-2019, from 0.17x in 2017, partially offset by
possibly higher operating costs following the migration to the
Wanda hotels.

Stabilising Margins: Guangzhou R&F had an EBITDA margin of 27%
and a gross profit margin of 39% in 1H18, an improvement from 26%
and 35%, respectively, in 2017 and 21% and 28% in 2016. The
margins will be supported by the company's unrecognised property
sales of CNY107 billion, which carried a gross profit margin of
39% at June 2018 (2017 booked property sales gross profit margin:
37%). These sales will be recognised over the next year or two,
and will be supported by a recovery in the contracted average
selling price to CNY13,176/sq m in 8M18, from CNY12,961/sq m in
2016.

DERIVATION SUMMARY

Guangzhou R&F's geographical diversification is comparable with
'BB+' and 'BB' rated peers. Its homebuilding scale in contracted
sales is comparable with CIFI Holdings (Group) Co. Ltd.'s
(BB/Stable) CNY104 billion in 2017 and is higher than the CNY40
billion-70 billion of 'BB-' rated peers, such as Yuzhou
Properties Company Limited's (BB-/Stable) CNY40 billion.

However, Guangzhou R&F's ratings are constrained by its weakening
financial profile following the completion of substantial hotel
and office asset acquisitions from Wanda, as well as its
aggressive land purchases. The company's leverage ratio, measured
by net debt/adjusted inventory, of 60% at end-2017 is at the
higher range of the 50%-60% of 'B+' rated peers, such as China
Evergrande Group's (B+/Positive) 60%. Guangzhou R&F will also
need to maintain a land bank of five to six years to support its
expansion in contracted sales, which could limit room for
deleveraging in the next two to three years. Fitch expects the
company's leverage to reach 65% in 2018-2019.

No Country Ceiling, parent/subsidiary or operating environment
aspects affect the rating.

KEY ASSUMPTIONS

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

  - Attributable contracted sales to reach CNY167 billion in
    2019 (2018: CNY131 billion)

  - EBITDA margin of 24%-25% in 2018-2019, slightly lower than
    the 26% in 2017 due to higher operating costs from the Wanda
    assets

  - Hotel and property rental revenue to reach CNY8 billion-
    CNY9 billion in 2018-2019

  - Land bank life reduced to and sustained at four to five
    years, from a high of almost eight years at end-2017

RATING SENSITIVITIES

Developments that May Lead to a Revision in the Outlook to Stable
Include:

  - Net debt/adjusted inventory sustained below 65% (2017: 60%)

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

  - Continued decline in property contracted sales

  - Net debt/adjusted inventory of over 65% for a sustained
    period

LIQUIDITY

Weak but Manageable: Guangzhou R&F had a cash balance of CNY36
billion, including restricted cash of CNY17 billion, as at end-
June 2018, which was insufficient to cover CNY45 billion of debt
maturing in one year. Its cash/short-term debt ratio declined to
0.8x at end-June 2018, from 1.1x at end-2017 and 1.4x at end-
2016. However, its cash balance probably improved following
record-high contracted sales of CNY13.5 billion in June 2018 and
another CNY10.5 billion in July 2018. The company also completed
the issuance of 270-day short-term onshore bonds (two tranches of
CNY0.5 billion and CNY0.7 billion in August, and one tranche of
CNY1.0 billion in September 2018), as well as CNY11.02 billion of
onshore public bonds in December 2018. Hence, Fitch does not
believe Guangzhou R&F will have major difficulty in refinancing
its short-term credit facilities.


HNA GROUP: Touts Assets for Sale as Funding Crunch Intensifies
--------------------------------------------------------------
Reuters reports that China's indebted HNA Group met bankers on
Jan. 8 to tout the latest assets that the sprawling conglomerate
is putting on the block as it looks to raise funds and stave off
an intensifying cash crunch.

According to Reuters, the range of assets, spanning a hotel
project in frozen Harbin and stakes in struggling online lender
Dianrong, insurer Bohai Life and brokerage HNA Futures,
underscores how the group is shedding almost all non-core
businesses as it pares back an empire that once spread from
Deutsche Bank to Hilton Worldwide.

The finance-to-aviation group has been ramping up asset sales
over the past year. However, the possible sale of many on the
list of at least 20 assets presented to bankers and seen by
Reuters has not been previously reported.

Reuters say the embattled group is more than a year into the
process of unwinding a $50 billion acquisition spree that at its
peak netted the company stakes in banks, fund managers, hotels,
property and airlines, among other assets.

But faced with soaring debt and increased government scrutiny of
aggressive deal-making, HNA has pushed ahead with asset sales
that have so far included real estate and stakes in hotels
groups, and discussions on key overseas units such as Ingram
Micro and its luxury $300 million-plus corporate "Dream Jet,"
Reuters relates.

Reuters reported last month, citing people familiar with the
matter, that China Development Bank was leading a team to
supervise asset disposals as the group looks to scale back
operations to just core assets.

The document from the meeting at a Beijing hotel on Jan. 8
indicated HNA was looking to sell eight hotel and other property
projects, including a luxury Renaissance hotel in Shanghai and a
commercial complex in the western city of Chengdu.

Also on the list was a section including eight financial projects
and a separate section with four stakes in leasing, insurance and
banking firms, according to Reuters.

Those stakes included 20 percent of Bohai Life, 6.18 percent of
peer-to-peer lender Dianrong and more than 40 percent of
financial services firm Sino Guarantee. The entirety of wholly
owned brokerage unit HNA Futures was also up for sale, Reuters
notes.

The document, shared by a person with direct knowledge of the
matter, listed the assets with boxes for potential investors to
tick to indicate which ones they might be interested in -- a
relatively unorthodox fund raising process.

When Reuters visited the hotel on Jan. 8 the investor meeting had
finished, but two further people at the hotel confirmed it had
taken place, asking not be identified because they were not
authorized to speak to the media.

In October last year, Reuters reported, citing documents, that
HNA had put up for sale property assets worth at least $11
billion. The documents listed more than 80 assets that HNA has
either put up for sale or intends to sell.

A few of those properties also appeared on HNA's list on Jan. 8,
which did not detail the value of any assets, adds Reuters.

                          About HNA Group

China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 17, 2018, the Financial Times related that HNA Group
defaulted on a CNY300 million (US$44 million) loan raised through
Hunan Trust. According to the FT, the company is already under
strict supervision by a group of bank creditors, led by China
Development Bank, following a liquidity crunch in the final
quarter of last year. The default came despite an estimated $18
billion in asset sales by HNA this year that have done little to
address its ability to meet its domestic debts, the FT noted.


IDEANOMICS INC: Shareholders Elect Nine Directors
-------------------------------------------------
At the Annual Meeting of Shareholders of Ideanomics, Inc. held on
Dec. 28, 2018, holders of the Company's Common Stock and Series A
Preferred Stock, voting together as a single class, elected nine
directors to the Company's Board of Directors to hold office for
a one-year term until the annual meeting of shareholders in 2019
and until their successors are re-elected and qualified. The
newly-elected directors are: Alfred Poor, Shane McMahon, Chao
Yang, James Cassano, Jerry Fan, Jin Shi, Kang Zhao, Richard
Frankel, and Brett McGonegal.

The Shareholders also ratified the selection of BF Borgers CPA PC
as independent registered public accounting firm for the fiscal
year ending Dec. 31, 2018.

                          About Ideanomics

Ideanomics, formerly known as Seven Stars Cloud Group, Inc.,
seeks to become a next generation fintech company by leveraging
blockchain and artificial intelligence technologies. The Company
is headquartered in New York, NY, and has planned a "Fintech
Village" center for Technology and Innovation in West Hartford,
CT, and has offices in London, Hong Kong and Beijing, China.
Seven Stars reported a net loss of $10.19 million for the year
ended Dec. 31, 2017, compared to a net loss of $28.50 million for
the year ended Dec. 31, 2016. As of Sept. 30, 2018, Ideanomics
had $167.72 million in total assets, $123.10 million in total
liabilities, $1.26 million in convertible redeemable preferred
stock, and $43.35 million in total equity.

B F Borgers CPA PC's report on the consolidated financial
statements for the year ended Dec. 31, 2017, contains an
explanatory paragraph expressing substantial doubt regarding the
Company's ability to continue as a going concern. The auditors
stated that the Company incurred recurring losses from
operations, has net current liabilities and an accumulated
deficit that raise substantial doubt about its ability to
continue as a going concern.


POWERLONG REAL ESTATE: S&P Rates New USD Unsecured Notes 'B'
------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issue rating to the
U.S.-dollar-denominated senior unsecured notes that Powerlong
Real Estate Holdings Ltd. (B+/Stable/--) proposes to issue. The
China-based developer will use the proceeds to refinance its
existing debt. The issue rating is subject to S&P's review of the
final issuance documentation.

S&P rates Powerlong's senior unsecured notes one notch below the
issuer credit rating, given significant subordination risk in its
capital structure. As of Dec. 31 2017, Powerlong's capital
structure consisted of Chinese renminbi (RMB) 18.8 billion in
secured debt, RMB14.0 billion in unsecured debt issued by
Powerlong, and RMB6.0 billion unsecured debt issued or guaranteed
by the company's operating subsidiaries. S&P considers its
priority debt to be above 50%.

Powerlong will use the net proceeds to refinance existing
borrowings, including a HK$1,990 million zero coupon convertible
bond due February 2019. Powerlong faces over RMB5 billion in
domestic corporate bond maturities, the majority of which are due
in the second half of 2019. S&P expects further refinancing over
the next six months to continue to improve the company's debt
maturity profile.

S&P said, "Powerlong's pace of deleveraging has been somewhat
slower than we expected. Nevertheless, the company has scaled
back its expansion amid a softening market in the second half of
2018. We expect the company's debt-to-EBITDA ratio to decline to
6.6x in 2018 and 5.7x in 2019, from 7.0x in 2017. However,
deleveraging in a cooling market will also test the company's
ability to maintain satisfactory sales, cash collection, and
margin in a more challenging environment.

"The stable outlook reflects our view that Powerlong will
continue to rapidly increase its recurring rental income over the
next 12 months while gradually improving its leverage. During the
period, we also expect the company to maintain steady sales
growth and profitability."



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


ASM PACIFIC: S&P Withdraws 'BB+' Issuer Credit Rating
-----------------------------------------------------
S&P Global Ratings withdrew its rating on ASM Pacific Technology
Ltd. (ASMPT) at the company's request. The issuer credit rating
was 'BB+' and outlook was stable at the time of the withdrawal.

S&P said, "Our rating had reflected our view of ASMPT's good
market position in the volatile semiconductor backend equipment
and surface-mount technology businesses, and the Hong Kong-listed
company's low debt leverage. We also expected ASMPT to maintain
its liquidity position despite the potential cash redemption of
the company's Hong Kong dollar (HK$) 2.2 billion convertible
bonds due in March 2019. ASMPT has positive free operating cash
flows and healthy cash balances.

"The stable outlook at the time of the withdrawal reflected our
expectation that ASMPT would maintain its competitive position
and low debt leverage. Moreover, the company is likely to improve
its diversity as its business moves gradually into advanced
packaging and non-mobile application markets in the coming 12-24
months."


IMPERIAL PACIFIC: Moody's Withdraws Caa1 CFR for Business Reasons
-----------------------------------------------------------------
Moody's Investors Service has withdrawn Imperial Pacific
International Holdings Ltd.'s Caa1 corporate family rating and
the negative outlook on the rating.

RATINGS RATIONALE

Moody's has decided to withdraw the rating for its own business
reasons.

Imperial Pacific International Holdings Ltd. is a holding company
listed on the Hong Kong Stock Exchange. Through its 100%-owned
subsidiary - Imperial Pacific International, LLC - it holds an
exclusive gaming license for the island of Saipan, in the
Commonwealth of the Northern Mariana Islands (unrated).



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


AATULYA LIFECARE: CARE Reaffirms D Rating on INR5.20cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Aatulya Lifecare Private Limited (ALPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank
   Facilities           5.20       CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation in the rating assigned to the bank facilities
of ALPL is primarily due to on-going irregularity in servicing
its long term debt obligations due to its weak liquidity
position.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delay in Debt Servicing: There are on-going delays in servicing
the long-term debt obligations due to weak liquidity position of
the company. There has been an irregularity in repayment of
interest obligations in the term loan account. Also average OD
limit utilization stands full during the last 12 months period
ended November 30, 2018.

Liquidity position of the company remains stretched as marked by
below unity current ratio at 0.15 times as on March 31, 2018 and
full utilization of its working capital limits during past 12
months ended November, 2018.

Cash and bank balance stood low at 0.06 crore and net cash flow
from operations remained low at INR0.09 crore as on March 31,
2018.

ALPL was incorporated in 2014 and started it operations from
September 2016. ALPL has been promoted by Dr Hirenkumar Patel, Dr
Mehul Shah, Dr Manish Patel and Dr Chirag Rathod. The company
operates a hospital by the name Aastha Multi Speciality Hospital,
providing quality services and patient care to the people in the
vicinity of Vadodara (Gujarat). The hospital has specialized
departments in Gynaecology, Orthopaedic, General surgery,
Paediatric, Physiotherapy, Ears, Nose and Throat (ENT), Critical
Care and Pharmacy for its patients and visitors. The hospital has
capacity of 100 beds and 1 in-house ambulance as on March 31,
2018.


ALI JEWELLERS: CRISIL Assigns 'B' Rating to INR10cr Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Ali Jewellers (AJ). The rating reflects a modest
scale of operations and a weak financial risk profile. These
weaknesses are partially offset by the extensive experience of
the proprietor in the Jewelry industry.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            10        CRISIL B/Stable (Assigned)

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Revenue was about INR45 crore in
fiscal 2018. With no addition of showrooms and intense
competition, the scale of operations and profitability are
expected to remain constrained over the medium term.

* Weak financial risk profile: The gearing was high at about 21
times as on March 31, 2018, and the debt protection metrics below
average, with interest coverage and net cash accrual to adjusted
debt ratios of 1.4 times and 0.05 time for the fiscal 2018.

Strength

* Extensive industry experience of the proprietor: The
proprietor's experience of over a decade in the jewellery
industry and his understanding of the industry and design
requirement of the local market should continue to support the
business.

Outlook: Stable

CRISIL believes AJ will continue to benefit from the extensive
industry experience of its proprietor. The outlook may be revised
to 'Positive' if significant improvement in revenue and
profitability leads to a better financial risk profile. The
outlook may be revised to 'Negative' if a decline in revenue or
profitability further weakens the financial risk profile.

Liquidity
Cash accrual is estimated at INR0.6-0.8 crore against repayment
obligation of INR0.15 crore, per fiscal over the medium term.
Average utilisation of the fund based bank limit of INR10 crore
was moderate at around 80% during the six months through October
2018. With no major expansion plans, liquidity should remain
adequate over the medium term.

AJ was set up in 2017 as a proprietary firm by Mr H Muhamed Ali.
The firm, retails gold jewellery through its single showroom in
Nagercovil, Tamil Nadu.


AMG ROTANA: CRISIL Lowers Rating on INR6cr Cash Loan to D
---------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of AMG Rotana Motor LLP (AMG) to 'CRISIL D' from 'CRISIL
B+/Stable'.

                      Amount
   Facilities       (INR Crore)      Ratings
   ----------       -----------      -------
   Cash Credit            6          CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

The rating downgrade reflects overdues/overdrawals beyond 30 days
in working capital facilities.

The rating also reflects below-average financial risk profile and
exposure to geographic concentration. These weaknesses are
partially offset by the extensive experience of partners.

Key Rating Drivers & Detailed Description

Weakness

* Weak liquidity: Sluggish sales has resulted in weak liquidity
with overdues/overdrawals beyond 30 days in working capital
facilities.

* Below-average financial risk profile: Total outside liabilities
to tangible networth was at 6.13 times as on March 31, 2018.

* Exposure to geographic concentration: The firm's operations are
concentrated in Vadakara and is exposed to geographic
concentration.

Strength

* Extensive experience of partners: The partners have more than a
decade experience in dealership business.

Liquidity
The firm's liquidity is weak. The firm has sanctioned limits(cash
credit-dealer finance) of INR6 crore. There have been instances
of overdues/overdrawals beyond 30 days.

AMG, set up in 2016, is a dealer of Hyundai's cars and spares in
Kutiadu, Vadakara.


BASANT CITY: CARE Lowers Rating on INR50cr LT Loan to B+
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Basant City Centre Malls Private Limited (BCCM), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       50.00      CARE B+; Stable; ISSUER NOT
   Facilities                      COOPERATING; Revised from
                                   CARE BB-; Stable on the basis
                                   of best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from BCCM to monitor the
rating(s) vide e-mail communications/letters dated December 7,
2018, December 3, 2018, November 30, 2018, November 1, 2018,
October 31, 2018, October 4, 2018, October 1, 2018 and numerous
phone calls. However, despite CARE's repeated requests, the
company has not provided the requisite information for monitoring
the ratings. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The Rating on Basant City Centre Malls
Private Limited' bank facilities will now be denoted as CARE B+;
Stable; ISSUER NOT COOPERATING.

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

The ratings have been revised on account of company not
submitting the monthly 'No Default Statement (NDS)', absence of
information on company's financial performance and other critical
data including the Project Progress, levels of customer advances,
debt raised to fund the project progress, current sales and
receivables position of the project, post the last review on
April 05, 2018. CARE is unable to assess the company's ability to
service the debt obligations and hence the revision in rating.

Detailed description of the key rating drivers

At the time of last rating on April 5, 2018 the following were
the rating strengths and weaknesses.

Key Rating Weaknesses

Time overrun albeit satisfactory project progress: The project
construction activity started in November 2014 and was scheduled
to be completed by June 2017; however, owing to delay in
financial closure, the completion date was rescheduled to
December, 2017. The project was further delayed due to change in
plans to setup a fully commercial space as against the earlier
plan of setting up a residential plus commercial complex. As on
December 31, 2017, project progress appears satisfactory with
around 89.8% of the total construction cost incurred.

Saleability risk with project: With decision to not launch the
project for sale till completion of construction in December
2018, exposes the project to substantial saleability risk. As per
management, the company has employed N&U various consultants for
designing and sale of property. Any delay in attaining envisaged
sales and realizing potential revenue may strain the company's
cash flow.

Key Rating Strengths

Resourceful promoter with track record in construction business:
BCCM is promoted by Mr Basant Kumar Patil, who is well-known
personality from the Kannada Film Industry in Karnataka. In the
past, Mr Patil (through M/s Basant Constructions) has constructed
2 software parks, 130-bed hospital in HSR Layout Bangalore and
owns Hotel Basant Residency, a 3-Star property with 50 rooms, 3
restaurants and a party hall in Bangalore.

Favourable location of the project: The project is located at
Court Circle on Travellers Bungalow Road in Hubali, which is the
heart of the city. The project has various amenities such as bus
stand, schools, hospitals, etc, in its near vicinity.

Nil dependence on customer advances with decision to hold the
project launch till completion: Promoters have decided to not
launch the project for sale till end of construction in December
2018 in anticipation of higher sales realization per unit and as
such have revised the project funding from own funds to INR61.42
crore with nil dependence on customer advances. As on December
31, 2017, promoters had already infused INR55.48 crore. However,
the debt repayment has already started and already INR 2.81 crore
has already been repaid as on Feb'18.

Basant City Centre Malls P Ltd. (BCCM) was incorporated in 2007
by Mr. Basant Kumar Patil to undertake the construction of
residential and commercial building in Hubali, Karnataka. The
project was initially planned to construct premium residential
and commercial structures consisting of two towers of eight
floors each with total developable area of 5.54 lsf. However the
plan has been revised to develop a fully commercial property. The
project is being executed under JDA whereby the company has 60%
share and remaining with landowner.


BRIOTA PAPER: ICRA Assigns 'B+' Rating to INR7cr Term Loan
----------------------------------------------------------
ICRA has assigned [ICRA]B+ (Stable) rating on the bank facilities
of Briota Paper LLP's (BPL).

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-
   Term Loan            7.00       [ICRA]B+ (Stable); Assigned

   Fund-based-
   Cash Credit          3.00       [ICRA]B+ (Stable); Assigned

   Non-fund Based-
   Bank Guarantee       0.55       [ICRA]A4; Assigned


Rationale

The assigned ratings are constrained by the nascent stage of the
BPL operations and the risk associated with stabilisation and
successful scale-up of the plant's operations as per the expected
parameters. The ratings also consider BPL's financial risk
profile, which is likely to remain average in the near term,
given the debt-funded project (debt to equity ratio of 1.81
times) and the impending debt repayment obligations. The ratings
also consider the vulnerability of its profit margins to
volatility in waste paper prices and fuel (coal) cost. ICRA notes
the lack of product diversification amidst intense competition in
the kraft paper industry, resulting in intense pricing pressure.

The ratings, however, favourably factor in the experience of
BPL's promoters in the paper packaging industry, the location
advantage given the proximity to customer base (ceramic cluster
of Morbi) and the business support from group/ associate concerns
engaged in corrugated box and tile manufacturing.

Outlook: Stable

ICRA believes that Briota Paper LLP will benefit from the
experience of its promoters and the support from its associate
concerns engaged in paper packing, tiles and sanitaryware
industry. The outlook may be revised to Positive if the firm
successfully scales up the operations, reports healthy
profitability, efficiently manages the working capital while
ensuring regular debt repayments, which would strengthen the
financial risk profile. The outlook may be revised to Negative if
cash accruals are lower than expected because of sub-optimal
capacity utilisation or if any delay in debt repayments or
stretch in working capital cycles weakens the firm's liquidity
position.

Key rating drivers

Credit strengths

Experience of promoters in paper packaging industry: The firm was
incorporated by Mr. Avinash Detorja and thirteen other partners.
The key promoters, Mr. Nikunj Detorja, has experience of more
than five years in the paper packaging industry vide his
association with another entity operating in the paper packaging
business. Moreover, the promoters' association with the tile
manufacturing units in the region will support the overall
business risk profile of the firm as the packaging requirement
for these units are expected to be met by BPL.

Favourable location: The location of the firm's facility in the
ceramic tiles manufacturing hub of Morbi (Gujarat) as well as the
established clientele of its associate concern in the paper
packaging industry facilitates the firm to increase market
penetration of its products.

Credit challenges

Risk associated with stabilisation and successful scale up of
operations: Being in a nascent stage, with the operations
yet to be commissioned (i.e. from mid of January 2019), the firm
remains exposed to the risk associated with stabilisation
and successful scale up of operations as per the expected
parameters. The repayment on term loan will commence from
July 2019 (moratorium of almost 5 to 6 months from the date of
commencement), thereby providing some comfort in principal
repayment.

Product concentration risk and fragmented industry structure: BPL
deals with a single product i.e. kraft paper, and thus remains
exposed to product concentration risk. Further, the kraft paper
industry is highly fragmented with stiff competition from
numerous organised as well as unorganised players. The degree of
competition in the lower BF range (<20) is higher than BF range
paper, because of the latter's complex manufacturing process and
higher capital costs involved to set up the production line.
Since BPL is engaged in lower BF size, the firm remains exposed
to intense competition.

Vulnerability of profitability to adverse fluctuation in waste
paper, power and fuel cost as well as to forex risk: Waste
kraft paper (i.e. used corrugated boxes, old newspapers, used
white paper etc.) is the major raw material followed by
power and fuel (coal) cost. Thus, the firm's profitability
remains exposed to adverse fluctuations in the waste paper and
coal prices. Moreover, it proposes to import waste paper from the
overseas market and the absence of any formal heading policy will
make the profit margins vulnerable to foreign exchange
fluctuations.

Risk associated with partnership firms: BPL, being a partnership
firm, is exposed to adverse capital structure risk if there is
substantial withdrawal from its capital accounts.

Liquidity Position: BPL has fund-based sanctioned limit of
INR3.00 crore to meet the working capital requirements.

Going forward, the overall liquidity position of the firm will
depend on its ability to generate adequate cash accruals from
business operation and manage the working capital cycle.

Briota Paper LLP (BPL or the firm) was incorporated in December
2017 as a limited liability partnership firm by Mr. Avinash
Detroja and thirteen other partners. The firm is setting up a
Greenfield project at Sapar in Morbi district, Gujarat, to
manufacture kraft paper, with an annual production capacity of
~24000 metric tonne. The firm's operation is expected to commence
from mid of January 2019. It is managed by Mr. Nikunj Detroja,
Mr. Milan Fultariya, Mr. Avinash Detroja and Mr. Nishith Detroja.


EASTERN PETROLEUM: CRISIL Lowers Rating on INR6.5cr Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Eastern Petroleum Private Limited (EPPL) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'.

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

   Cash Credit            6.5       CRISIL B+/Stable (Downgraded
                                    from 'CRISIL BB-/Stable')

   Letter of Credit      12         CRISIL A4 (Downgraded from
                                    'CRISIL A4+')

   Proposed Fund-         1         CRISIL B+/Stable (Downgraded
   Based Bank Limits                from 'CRISIL BB-/Stable')

The downgrade reflects weakening in business risk profile as well
as financial risk profile due to substantial decline in operating
margin from 10.8% in fiscal 2017 to 4.1% in fiscal 2018.
Consequently, net cash accruals have reduced to INR3 lakhs in
FY18 compared to INR1.80 crores in FY17 in spite of revenue
increasing by 14% to INR50 crores in FY18 from INR41 crores in
FY17. CRISIL believes that improvement in operating profitability
will remain a key rating sensitivity factor over the medium term.

The ratings continue to reflect the extensive experience of the
company's promoters in the refined petroleum products industry,
their funding support. These strengths are partially offset by
modest scale of operations, susceptibility of operating margin to
volatility in raw material prices and foreign exchange rates, and
average financial risk profile because of weak capital structure
and debt protection metrics.

Key Rating Drivers & Detailed Description

Strengths

* Extensive experience of promoters: The promoter family has
experience of over 45 years in the petroleum derivative oils
business. Mr Hastimal Gandhi set up Jaybharat Lubricants (I) Pvt
Ltd (JLPL) in 1949, which trades in industrial, automotive, and
metal working lubricants, marketed by major oil companies such as
Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd,
Hindustan Petroleum Corporation Ltd. EPPL caters to the
pharmaceutical and automobile industries, and benefits from the
extensive experience of its promoters, their understanding of the
dynamics of the local market, and established relationships with
suppliers and customers.

Weakness

* Modest scale of operations: The modest scale, reflected in net
sales of INR50.47 crore in fiscal 2018 and networth of INR6.69
crore as on March 31, 2018, limits ability to withstand adverse
conditions or business downturn, and renders credit risk profile
sensitive to incremental debt.

* Susceptibility of operating margin to volatility in raw
material prices: EPPL's primary raw material, liquid paraffin
(base or lubricating oil), is a product of the crude oil refining
process. Base oil is a low-end distillate of crude, and hence,
its supply and price are susceptible to fluctuations in crude
prices. With increase in crude and petroleum prices, refineries
tend to increase the proportion of high-value products, resulting
in disruption in supply of base oil. Procurement of raw material
inventory is based on anticipation of demand. Given the
considerable time lag between purchase and sale, the company is
exposed to price risk given the high volatility in the price of
its raw material. Consequently, operating margin is volatile.

* Working capital-intensive operations: Gross current assets were
at 123 to 241 days in the four fiscals through 2018, and at 123
days as on March 31, 2018, primarily because of credit extended
to customers, which comprise of large multinationals. Receivables
were large, at 46-80 days in the past five years, and at 49 days
as on March 31, 2018. Inventory ranged from 55-120 days (55 days
as on March 31, 2018) to ensure smooth flow of production. The
company receives credit of 60-90 days from suppliers. Bank line
utilisation was at 65-70% for the 12 months through September
2018.

* Average financial risk profile: Total outside liabilities to
tangible networth (TOLTNW) is high at 1.84 times as on March 31,
2018 and average debt protection metrics marked by interest
coverage of 0.88 times and net cash accrual to total debt (NCATD)
of 0 times.

Outlook: Stable

CRISIL believes EPPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if there is a significant increase in revenue and
improvement in operating margins leading to higher cash accruals
or an equity infusion, resulting in better capital structure and
financial risk profile. The outlook may be revised to 'Negative'
if financial risk profile, particularly liquidity, weakens
because of decline in revenue and profitability, or stretch in
working capital cycle, or larger-than-expected debt funded
capital expenditure.

Liquidity
Liquidity is stretched as reflected by insufficient cash accrual
vis-Ö-vis repayments. However, there is cushion in bank lines as
Bank limit utilization is moderate around 67 percent. CRISIL
believes that bank limit utilization is expected to remain
moderate over the medium term. Cash accrual are expected to be
over INR60 lakhs which are sufficient against term debt
obligation of INR34 lakhs over the medium term. The promoters are
likely to maintain unsecured loans in the company to the extent
of INR5 crores (treated as NDNE). Further, the company is
expected to undertake a capital expenditure of around INR50-70
lakhs funded by additional funds brought in by the promoters in
the form of unsecured loans.

EPPL, established in 1964, manufactures petroleum sulphonates,
mineral oils, and automotive, industrial, and marine lubricants.
Its daily operations are managed by Mr Pramod Rathi.


JET AIRWAYS: Seeks to Rework Vendor Contracts to Cut Costs
----------------------------------------------------------
P R Sanjai and Saloni Shukla at Bloomberg News report that debt-
laden Jet Airways India Ltd. is trying to renegotiate contracts
with its vendors as lenders demand a revival plan by month-end
from India's second-largest airline by passengers, according to
people with knowledge of the discussions.

Bloomberg relates that the Naresh Goyal-led airline is in talks
to defer or reduce payments to vendors including aircraft lessors
and those providing engineering, spare parts, credit card and
airport services, said one of the people, who asked not to be
identified as the discussions aren't public. Lenders have said
any short-term loan to keep the carrier afloat would be based on
the plan proposed by Jet Airways and its equity partner Etihad
Airways PJSC, according to the people.

Bloomberg says the beleaguered Indian carrier missed an interest
and principal repayment at the end of last year, giving it about
90 days to clear the dues and avoid being declared a non-
performing asset. State Bank of India, the nation's largest
lender, hosted another round of meetings with the Jet Airways
management and vendors on Jan. 8 to find common ground, the
people familiar said, Bloomberg relays.

Credit assessor ICRA has cut its rating on Jet Airways's loans
and bonds to D, a score that signifies that borrowers are in
default or are expected to be soon, Bloomberg reports. The
downgrade came after the airline missed a payment due on Dec. 31
to a consortium of Indian banks led by State Bank of India "due
to temporary cash flow mismatch."

"Jet Airways remains optimistic about outcomes with regard to
discussions with its lenders," the company said in an emailed
statement on Jan. 7, Bloomberg relays. "The talks are progressing
well and we hope to reach a positive resolution at the earliest."

According to Bloomberg, the Mumbai-based Jet Airways hasn't seen
a profit in nine of the past 11 fiscal years owing to
intensifying fare wars that worsened a cash crunch. The company
reported its third straight quarterly loss in November with
surging liabilities that signaled a deepening of financial
distress. It has fallen behind on payments to staff and lessors.

Bloomberg says the carrier has been talking to its foreign equity
partner Etihad Airways and a clutch of financial investors to
avoid potential defaults to lenders and lessors. It has also
sought a short-term loan of INR15 billion ($215 million) from
State Bank of India for working capital and the bank is currently
conducting a forensic audit for possible approval of such a
facility.

In the last couple of months, Jet Airways Founder and Chairman
Naresh Goyal, along with Etihad Airways Chief Executive Officer
Tony Douglas, met Rajnish Kumar, chairman of State Bank of India,
multiple times at the lender's Mumbai headquarters to explore a
resolution mechanism.

The Indian carrier's stock dropped 67 percent last year and was
among the worst performers in the S&P BSE 500 Index, Bloomberg
notes.

                         About Jet Airways

Based in Mumbai, India, Jet Airways (India) Limited --
https://www.jetairways.com/EN/PH/Home.aspx -- provides passenger
and cargo air transportation services. It operates through two
segments, Air Transportation and Leasing of Aircraft. The company
also leases aircrafts. It operates flights to 64 destinations in
India and international countries, including Abu Dhabi,
Amsterdam, Bahrain, Bangkok, Colombo, Dammam, Dhaka, Doha, Dubai,
Hong Kong, Jeddah, Kathmandu, Kuwait, London Heathrow, Muscat,
Paris, Riyadh, Sharjah, Singapore, and Toronto. As of August 31,
2017, the company had a fleet of 113 aircraft, which includes a
mix of Boeing 777-300 ERs, Airbus A330-200/300 aircraft, Next
Generation Boeing 737s, and ATR 72-500/600s.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 8, 2019, ICRA has revised the ratings on the bank facilities
of Jet Airways to [ICRA]D.

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Non-convertible      698.9       [ICRA]D; downgraded from
   Debenture                        [ICRA]C
   Programme

   Long-term Loans    4,970.0       [ICRA]D; downgraded from
                                    [ICRA]C

   Long-term, Fund-     645.0       [ICRA]D; downgraded from
   based Facilities                 [ICRA]C

   Long-term, Non-      700.0       [ICRA]D; downgraded from
   fund Based                       [ICRA]C
   Facilities

   Short-term, Non-   3,950.0       [ICRA]D; downgraded from
   fund Based                       [ICRA]A4
   Facilities

Rationale

The ratings downgrade considers the delays by the company in the
payment of the interest and principal installment due on
December 31, 2018 due to cash flow mismatches. There have been
delays in the implementation of the proposed liquidity
initiatives by the management, which have aggravated its
liquidity. The company has already been delaying its employee
salary payments and lease rental payments to the aircraft
lessors. Furthermore, the company has large debt repayments due
over December 2018 to March 2019 (INR1,700 crore), FY2020
(INR2,444.5 crore) and FY2021 (INR2,167.9 crore). The company is
undertaking various liquidity initiatives, which includes, among
others, equity infusion and a stake sale in Jet Privilege Private
Limited (JPPL), and the timely implementation of these
initiatives remain critical to its credit profile.


KANACHUR ISLAMIC: CARE Moves B Rating to Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Kanachur
Islamic Education Trust to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank      140.00      CARE B; Stable; ISSUER NOT
   Facilities                      COOPERATING; Based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from Kanachur Islamic Education
Trust to monitor the rating(s) vide e-mail communications/
letters dated December 20, 2018, December 10, 2018, November 26,
2018, November 19, 2018, November 08, 2018, October 30, 2018,
September 3, 2018 and numerous phone calls. However, despite
CARE's repeated requests, the Trust has not provided the
requisite information for monitoring the ratings. In line with
the extant SEBI guidelines, CARE has reviewed the rating on the
basis of the best available information which however, in CARE's
opinion is not sufficient to arrive at a fair rating. The rating
on Kanachur Islamic Education Trust' bank facilities will now be
denoted as CARE B; Stable; ISSUER NOT COOPERATING.

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

The ratings take into account its weak capital structure owing to
the debt availed for the setup of medical college and hospital,
weak profitability and hence cash accruals from operations in
relation to the debt as hospital and medical college operations
yet to stabilize, regulatory risk and competition from
established, upcoming educational institutes, strength from
experienced and resourcefulness of its promoters and strong
demand for its medical course with full intake in the first year
of class.
Detailed description of the key rating drivers
At the time of last rating on September 14, 2017 the following
were the rating strengths and weaknesses
Key Rating Weaknesses
Weak capital structure owing to debt availed for the setup of
medical college and hospital: The capital structure is weak due
to high debt funded capex undertaken towards the setup of the
medical college and the tertiary hospital. In the coming years,
till the operations of hospital stabilizes and cash accruals from
medical college increases with new batches every year, the
promoters are expected to support the trust for meeting the debt
obligations of the trust.

Weak profitability levels owing to high interest cost and
operational expenditure on the hospital business: The
profitability of the Trust has been weak over the years, falling
over the years from net profit of INR0.52 crore in FY14, to net
losses of INR0.42 crore in FY15, deteriorating further to net
loss of INR2.49 crore in FY16, owing to the large level of
operational cost incurred over the years on the hospital.

Regulatory risks associated with the education industry: Despite
the increasing trend of privatization of the education sector in
India, educational institutes have to adhere to the regulations
set by the regulatory authorities. The sector is regulated by the
Ministry of Human Resources at the national level, by the
education ministries in each state, as well as Central bodies
like University Grants Commission (UGC) and 14 other professional
councils like All India Council for Technical Education, Medical
Council of India etc. The operating and financial flexibility of
the higher education sector are limited, as regulations govern
almost all aspects of operations, including fee structure, number
of seats, changes in curriculum and infrastructure requirements.
Karnataka is one among the states which has largest concentration
of educational institutions especially Medical and Engineering
colleges.

Key Rating Strengths

Experienced and resourceful promoters: The promoters, Monu family
has been involved in the education business for the last 15
years. They also have business interest in the areas of timber,
commodities trading, hospitality, and real estate development,
under its brand name 'Kanachur'. Mr UK Monu, has an experience of
over 40 years in the timber business, and has served as Vice
President of South India Plywood manufacturers.

Incorporated in 2001, KIET was founded by Mr U. K. Monu along
with his family members, to set up educational institute in
Mangalore. Initially it started with a school (affiliated to CBSE
board) in the year 2001, and over the years, it has started two
new educational institutes, Kanachur PU College and Kanachur
Institute of Management Science. In the year 2016-17, the trust
started medical college and hospital (hospital was partly
operational from FY15, and became fully operational from FY16-
17). The trust's campus is spread across 25 acres in the
outskirts of Mangalore. Presently society runs 7 educational
institutions with over 252 faculty members and 123 supporting
members for its 13 academic programs. Brief Financials (R


M R COTTON: CRISIL Hikes Rating on INR6.25cr Cash Loan to B
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of M. R Cotton Industries (MRC) to 'CRISIL B/Stable' from 'CRISIL
B-/Stable'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit           6.25      CRISIL B/Stable (Upgraded from
                                   'CRISIL B-/Stable')

   Proposed Long Term    3.75      CRISIL B/Stable (Upgraded from
   Bank Loan Facility              'CRISIL B-/Stable')

Rating upgrade reflects improvement in financial risk profile, as
indicated by decline in Total outside liabilities to adjusted
networth ratio (TOL/ANW) and improvement in operating margin in
fiscal 2018. Liquidity profile is also expected to improve on
account of term debt repayment, cash accruals being low, yet
sufficient for supporting the operations.

The rating continues to reflect the firm's modest scale of
operations and fluctuation in operating margin in the intensely
competitive cotton industry improved, yet weak financial profile.
These weaknesses are partially offset by the extensive experience
of its promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and fluctuation in operating margin
in intensely competitive cotton industry: Revenue for fiscal 2018
has improved to INR27 crore from INR25 crore a year earlier, yet
remains modest on account of competition in the cotton industry
due to low entry barrier. Operating margins of players in the
cotton business are highly affected by the price of cotton in the
commodity markets. Operating margin increased in fiscal 2018 to
3.8% from 3.3% a year earlier, however, has remained fluctuating
in the past.

* Improved, yet weak financial profile: Networth declined to
INR2.42 crore as on March 31, 2018 from INR2.71 crore a year
earlier due to capital withdrawal by the partners, expected to
increase yet remain modest over the medium term as well. TOL/ANW
has declined on account of term debt repayment, yet remains high
at 3.2 times as on March 31, 2018. Debt protection metrics are
weak, as reflected in interest coverage ratio of 1.5 times for
fiscal 2018.

Strengths

* Extensive experience of promoters: Presence of more than two
decades in the cotton industry through group entities has enabled
the promoters to understand local market dynamics, establish
strong relationship with suppliers and customers.

Outlook: Stable

CRISIL believes MRC will benefit over the medium term from its
promoters' extensive experience. The outlook may be revised to
'Positive' in case of substantial revenue growth, while improving
profitability and capital structure. The outlook may be revised
to 'Negative' if considerable decline in revenue and
profitability, deterioration in working capital management, or
large, debt-funded capital expenditure affects financial risk
profile, especially liquidity.

Liquidity
* High bank limit utilisation during peak season: The firm enjoys
Cash Credit limit of INR6.25 crore from the Bank of Baroda (BoB),
currently utilized at ~1.5 crore. However, utilization is
expected to remain high during the peak season because of
expected low cash accrual against large working capital
requirement.

* Low cash accruals, however sufficient against no term debt
repayment obligations: Term debt is repaid in May 2018, cash
accruals should remain sufficient to support operations over the
medium term in the absence of any repayment obligations.

* Funding support from partners: The partners have infused INR20
lacs in the business in fiscal 2018 for meeting debt obligation.

Set up in 2011 as a partnership firm by Mr. Dhiren Patel, Mr.
Mahendra Patel, Mr. Chetan Kumar Patel, Mr. Rumit Kumar Patel,
and Ms. Veena Vinod Patel, MRC gins and presses raw cotton
(kapas) to make cotton bales; it also sells cotton seed and
cotton seed cake. Operations are managed by Mr. Mahendra Patel,
Mr. Chetan Kumar Patel, and Mr. Rumit Kumar Patel.


MEHSANA DAIRY: CRISIL Reaffirms B Rating on INR42.25cr Term Loan
----------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the long
term bank facilities of Mehsana Dairy and Food Products Limited
(MDFPL) while reassigned its 'CRISIL A4' rating on the short term
bank facility.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee       1.5        CRISIL A4 (Reassigned)
   Cash Credit          9.5        CRISIL B/Stable (Reaffirmed)
   Term Loan           42.25       CRISIL B/Stable (Reaffirmed)

The rating continues to reflect MDFPL's modest scale of
operations and weak financial risk profile. These weaknesses are
partially offset by extensive experience of promoters and
established milk procurement network through group concern.

Analytical Approach
For arriving at the ratings, CRISIL has treated unsecured loans
of INR6 crore as on March 31, 2018, from promoters as neither
debt nor equity (NDNE). Since, the loans are expected to remain
in the business over the medium term and carry interest cost
lower than the market rate.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Scale of operations is modest, as
reflected in revenue of INR19.63 crore in fiscal 2018. While the
production was expected to start in February 2017, there was a
delay in commencement of operations. Production of Skimmed milk
powder (SMP) started in November 2017, whereas ice-cream and
other dairy products started in March 2018.

* Weak financial risk profile: Financial risk profile remains
constrained on account of debt funded capital expenditure leading
to high total outside liabilities to adjusted networth ratio of
1.97 times despite moderate networth of INR25.15 crore as on
March 31, 2018. Liquidity remains stretched, owing to high debt
repayments in the range of INR2.5-3.0 crore for the medium term
and hence, ramp up in scale of operations, coupled with
sustenance of profit margin (13.1% in fiscal 2018) resulting in
generation of adequate cash accruals will remain a key rating
sensitive factor.

Strengths

* Extensive experience of promoters and established milk
procurement network through group concern: The promoters have
over two decades of experience in the dairy industry through
Bharat Dairy, which is also into similar line of business.
Benefits from the promoters' extensive experience like
uninterrupted supply of milk through a strong network of farmers
and wide spread distribution network of its group firm will
support the business risk profile over the medium term.

Outlook: Stable

CRISIL believes MDFPL will continue to benefit over the medium
term from the promoters' extensive experience. The outlook may be
revised to 'Positive' if revenue and profitability improve,
leading to higher-than-expected cash accrual, coupled with
efficient working capital management. Conversely, the outlook may
be revised to 'Negative' in case of lower-than-expected cash
accrual or stretch in working capital cycle, or any large, debt-
funded capital expenditure weakening financial risk profile and
liquidity.

Liquidity
* High bank limit utilization: The firm enjoys Cash Credit limit
of INR9.5 crore, currently utilized at ~Rs 5 crore. However, bank
limit utilization has remained high, averaging 86% in past 12
months ended Sep 2018.

* Low cash accruals against no term debt repayment obligations:
Cash accruals for fiscal 2018 were INR64 lacs. Term debt
repayment obligations were met by additional limits availed from
the bank and unsecured loans by the promoters.

* Funding support from promoters: Unsecured loan from the
promoters is INR6 crore as on March 31, 2018, treated as NDNE.

Based out of Mehsana, Gujarat, MDFPL manufactures SMP, ice cream,
and other related dairy products. The company was incorporated in
2015 and has commenced operations in November 2017.


MILROC GOOD: CRISIL Hikes D/Issuer Not Cooperating Rating to B
--------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Milroc Good Earth Property
And Developers LLP (MGE) to 'CRISIL D Issuer Not Cooperating'.
However, management has subsequently started sharing requisite
information, necessary for carrying out comprehensive review of
the rating. Consequently, CRISIL is migrating the rating on bank
facilities of MGE from 'CRISIL D Issuer Not Cooperating' to
'CRISIL B/Stable'.

                   Amount
   Facilities    (INR Crore)   Ratings
   ----------    -----------   -------
   Overdraft          10       CRISIL B/Stable (Migrated from
                               'CRISIL D ISSUER NOT COOPERATING')

   Term Loan           5       CRISIL B/Stable (Migrated from
                               'CRISIL D ISSUER NOT COOPERATING')

The rating reflects timely servicing of term debt by the company
in the six months from June 2018.

The rating reflects MGE's large working capital requirements and
exposure to risks and cyclicality inherent in the real estate and
hospitality sectors in India. These weaknesses are partially
offset by extensive experience of partners.

Key Rating Drivers & Detailed Description

Weakness

* Exposure to risks and cyclicality inherent in the real estate
and hospitality sectors in India: The hotel industry remains
vulnerable to trends in the domestic and international economies.
Cost, however, remains high for premium properties even when
demand declines. Cash flow from these properties is, therefore,
more susceptible to downturns.

* Large working capital requirement: The working capital
requirement remains high with gross current assets (GCA) of 360
days for fiscal 2018.

Strengths

* Extensive experience of the partners: The firm benefits from
the longstanding presence of its partners in Goa's real estate
segment, and their funding support.

Outlook: Stable

CRISIL believes MGE will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if more-than-expected sales realisation from ongoing
projects leads to substantially large cash inflow. The outlook
may be revised to 'Negative' if delay in project execution or
receipt of customer advances, or any large, debt-funded project
weakens financial risk profile.

Liquidity
Liquidity remains average with modest Debt Service Coverage Ratio
(DSCR) in hospitality segment because of moderate repayment
obligations against expected cash accruals over the medium term.

MGE develops residential and commercial properties in Goa. It is
promoted and managed by Mr. Allaparthi Durgaprasad and Mr.
Kantipudi Kulasekhar, who have developed more than 15 residential
and commercial properties in Goa over the past 20 years.


MISHRIBAI AGRO: CRISIL Withdraws B+ Rating on INR7.5cr Term Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of
Mishribai Agro Tech Private Limited (MATPL) 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.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit             5       CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Migrated from
                                   'CRISIL B+/Stable'; Rating
                                   Withdrawn)

   Term Loan               7.5     CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Migrated from
                                   'CRISIL B+/Stable'; Rating
                                   Withdrawn)

CRISIL has been consistently following up with MATPL for
obtaining information through letters and emails dated December
20, 2018 and December 24, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

'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 MATPL. 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
MATPL 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 MATPL
to 'CRISIL B+/Stable Issuer not cooperating'.

CRISIL has withdrawn its rating on the bank facilities of MATPL
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.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

Mishribai was incorporated in 2011, promoted by Mr Mahendhra
Omkar Agarwal, and Mr Subhash Omkar Agarwal. The company has set
up a unit for manufacturing cattle feed with total capacity of
about 200 tonne per day. Commercial operation started from May
2017.


NARAIN SINGH: CRISIL Reaffirms B Rating on INR3.75cr Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on
the bank loan facilities of Narain Singh Bundela and Co. (NSBC).

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee       2.47       CRISIL A4 (Reaffirmed)
   Cash Credit          3.75       CRISIL B/Stable (Reaffirmed)
   Long Term Loan        .10       CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect NSBC's small scale of operations
resulting in geographically concentrated revenue profile, and low
operating margin. These weaknesses are partially offset by
moderate financial risk profile because of healthy gearing, and
extensive experience of proprietor in the construction industry.

Key Rating Drivers & Detailed Description

Strengths

* Extensive experience of proprietor: Presence of around three
decades in the civil construction industry has enabled the
proprietor to secure repeat tenders from the Railways. The firm
also constructs canals in the irrigation sector.

* Moderate financial risk profile: As working capital is mostly
funded through payables, security deposits from sub-contractors,
and accrual, reliance on bank debt is low. While net worth was
moderate at INR12 crore, gearing was healthy at 0.45 time, as on
March 31, 2018. Gearing is expected to remain steady over the
medium term.

Weaknesses

* Small scale of operations: Since majority of revenue is derived
from Uttar Pradesh and Madhya Pradesh, scale remains modest,
reflected in an operating income of INR6.5 crore for fiscal 2018.
Scale is likely to remain subdued over the medium term because of
a modest order book.

* Exposure to high fragmentation and segment concentration: The
civil construction industry is intensely competitive, with
several unorganised players operating on small scales. However,
since all orders are from government entities, project execution
and sales depend highly on timely clearances from customers.

Outlook: Stable

CRISIL believes NSBC will continue to benefit over the medium
term from the extensive experience of its proprietor. The outlook
may be revised to 'Positive' if sustained and significant
increase in revenue while maintaining operating profitability,
and effective working capital management lead to higher net cash
accrual. The outlook may be revised to 'Negative' in case of
deterioration in working capital management or large, debt-funded
capital expenditure.

Liquidity
Liquidity is adequate marked by average bank limit utilization of
85-90%, sufficient cushion between expected net cash accrual of
INR20-25 lakh and annual repayment obligation of around INR7 lakh
over the medium term, and comfortable current ratio of 1.6 times
as on March 31, 2018..

Set up in 1988 in Jhansi, Uttar Pradesh, as a proprietorship firm
by Mr. Narain Singh Bundela, NSBC is engaged in civil
construction works for Railways, irrigation, and road
departments. The firm constructs bridges and canals and
undertakes ancillary works for railway lines.


PTG TECHNOPAK: ICRA Reaffirms 'B' Rating on INR5.85cr Loan
----------------------------------------------------------
ICRA has reaffirmed the ratings on the bank facilities of PTG
Technopak Private Limited (PTG) at [ICRA]B (Stable)/[ICRA]A4.

                        Amount
   Facilities         (INR crore)    Ratings
   ----------         -----------    -------
   Long-term: Fund
   Based/Cash Credit       5.85      [ICRA]B (Stable); reaffirmed

   Long-term: Fund
   Based/Term Loan         5.00      [ICRA]B (Stable); reaffirmed

   Short-term:
   Interchangeable        (5.85)     [ICRA]A4; reaffirmed

Rationale

The rating reaffirmation takes into account the company's steady
ramp-up of operations with improved return metrics in the
backdrop of growing capacity utilisation. The ratings continue to
derive strength from the extensive experience of the promoters in
the industry. However, the ratings are constrained by the
company's highly leveraged capital structure (though improved
from the last year). The ratings are also constrained by the
company's presence in the highly fragmented and intensely
competitive packaging industry, which limits its pricing
flexibility. Further, the price of the company's key raw material
depends the highly volatile crude prices, which exposes its
margins to raw material price volatility. With ~50% of the raw
material requirement met through imports, the company's margins
also remain vulnerable to the volatility in foreign currency
exchange rates.

Going forward, the company's ability to scale its operations,
sustain its profitability and improve its capital structure will
be the key rating sensitivities.

Outlook: Stable

ICRA expects PTG to continue to benefit from the extensive
experience of its promoters in the industry. The outlook may be
revised to Positive if substantial growth in revenues and
profitability, and better working capital management strengthen
the financial risk profile. The outlook may be revised to a
Negative if cash accrual is lower than expected, or if any major
capital expenditure is incurred, or if a stretch in the working
capital cycle weakens liquidity.

Key rating drivers

Credit strengths Extensive experience of promoters: Prior to
inception of PTG, the promoters were involved in manufacturing
HDPE barrels and drums through other companies for over a decade.
Favourable demand outlook for domestic HDPE barrel industry: Good
demand prospects for polymer-based packaging industry, supported
by cost and quality advantages against metal-based containers.

Credit challenges

Nascent stage of operations with limited operational track
record: Although the company has completed the construction if
its manufacturing unit within the estimated cost and commissioned
operations in a timely manner, the operations are still in the
nascent stage. PTG's ability to build customer and supplier
relations in an extremely competitive market remains to be seen.

Moderate financial risk profile: The company's financial profile
remains moderate as evident from its leveraged capital structure,
given the debt funding of the capital expenditure incurred in
FY2017 and the working capital limits availed. PTG has repayment
obligations over the medium term. The DSCR1 is expected to remain
modest in the near term.

Susceptibility to fluctuations in raw material prices and foreign
exchange: Any adverse movement in raw material prices that cannot
be entirely passed on to customers may have a negative impact on
the company's margins. Also, around 50% of the material
requirement is met through imports. In the absence of adequate
hedging mechanism, the company's margins remain vulnerable to
foreign exchange rate fluctuations.

Fragmented and competitive nature of the industry: The low
technological complexity and moderate capital investment in
setting up an injection/rotomoulding plastic manufacturing plant
have resulted in intense competition. Moreover, there are several
organised and unorganised players in the field, of which the
former accounts for a greater share of the market. Intense
competition exerts pressure on the profitability margins of mid-
scale companies like PTG.

Liquidity position
The company's liquidity profile remained moderate with the
average cash credit utilisation of 80% over April-October 2018.
The free cash flows of the company remained negative in FY2018
due to high working capital requirement, debt-funded capex and
repayment burden.

Incorporated in 2016, PTG Technopak Private Limited (PTG) is a
wholly promoter group-owned organisation of the Padia Group. The
company commenced commercial operations in February 2017 and
manufactures high density polyethylene (HDPE) drums and barrels.
The key promoter of PTG, Mr. Amit Pedia has ~14 years of
experience in manufacturing plastic moulded products and direct
marketing products for industrial packaging. It has manufacturing
facility in Ambala, Haryana with a manufacturing capacity of 3.60
lakh units per annum at present.


PUNJAB ALKALIES: CRISIL Hikes Rating on INR80.7cr Loan to 'B'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Punjab Alkalies and Chemicals Limited (PACL) to 'CRISIL
B/Stable' from 'CRISIL C', while reaffirming the short-term
rating at 'CRISIL A4'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        2.03       CRISIL A4 (Reaffirmed)

   Cash Credit           5.62       CRISIL B/Stable (Upgraded
                                    from 'CRISIL C')

   Proposed Long Term   80.7        CRISIL B/Stable (Upgraded
   Bank Loan Facility               from 'CRISIL C')

The upgrade factors in the continuous improvement in financial
risk profile, in the absence of any major debt funded capital
expenditure plans. Gearing is estimated to remain below one as on
March 31, 2019, with comfortable interest coverage. Operating
margin has also grown sharply to 21% in the first half of fiscal
2019, from 6.3% in fiscal 2018. Further, company's reduced
liability in terms of electricity costs has resulted in the
improvement in operating margins and hence the business is
expected to generate significant cash accruals of upwards of
INR35 crore in fiscal 2019, thus aiding the liquidity of the
company over the medium term.

The ratings continue to reflect the company's average financial
risk profile, susceptibility to changes in government
regulations, and exposure to intense competition from importers
and other domestic players. These weaknesses are partially offset
by the established and diversified clientele and end-user
industry base, and improvement in operating margin.

Analytical Approach

CRISIL has treated Fully Convertible Debentures of INR27 crore as
equity on account of their permanence in business and non-
convertible debentures of INR4.06 crore as debt due to their near
term redeemability.

Key Rating Drivers & Detailed Description

Weaknesses

* Average financial risk profile: Networth was negative due to
net losses in the four fiscals through March 2018. Debt
protection metrics are also adversely affected by negative
accretion to reserves. Net worth turned positive at around INR20
crore as on September 30th 2018. Debt protection metrics is
expected to improve and remain above average over the medium
term. The company does not have any major plans to undertake
capex over the medium term.

* Susceptibility to changes in government regulations, and to
intense competition: The company faces intense competition from
established players that have integrated operations backward, and
also from Chinese players in the global market.

Strength
* Established and diversified customer and end-user industry
base: PACL has been manufacturing caustic soda and chlorine for
over four decades, leading to healthy relationships with
suppliers and customers. The products are used in various end-
user industries such as paper, soaps and detergents, textile, and
pharmaceuticals, and thus, the company remains shielded from
slowdown in any particular segment.

* Improvement in operating margin: Operating margin improved
significantly to 6.3% in fiscal 2018, against -6.4% in the
previous fiscal, mainly aided by reduction in power cost.

Outlook: Stable

CRISIL believes PACL will continue to benefit from its
established and diversified customer and end-user industry base.
The outlook may be revised to 'Positive' in case of significant
improvement in financial risk profile, backed by growth in
revenue and operating margin. The outlook may be revised to
'Negative' in case of pressure on financial risk profile,
particularly liquidity, owing to low cash accrual, considerable
increase in working capital requirement, or any large debt funded
capital expenditure.

Liquidity
Liquidity is aided by absence of bank limit utilisation and any
term debt obligation, with the exception of annual liability of
an electricity bill of INR12-14 crore over the next three years.
Net cash accrual is expected to improve gradually, to be in the
range of INR35-40 crore, marked by growth in operating margin.
Current ratio was weak at 0.59 time as on March 31, 2018 but is
not expected to adversely impact the operations of the company.

Incorporated in 1975, PACL manufactures caustic soda and chlorine
at its plant in Ropar, Punjab. The company is listed on the
Bombay Stock Exchange with 33.5% stake owned by Punjab State
Industrial Development Corporation Ltd.


RARE ROCKS: CRISIL Assigns B+ Rating to INR2.75cr Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Rare Rocks (RR).

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Rupee Term Loan       2.45       CRISIL B+/Stable (Assigned)

   Proposed Long Term
   Bank Loan Facility     .35       CRISIL B+/Stable (Assigned)

   Packing Credit        3.00       CRISIL A4 (Assigned)

   Letter of Credit      1.00       CRISIL A4 (Assigned)

   Cash Credit           2.75       CRISIL B+/Stable (Assigned)

   Foreign Exchange
   Forward                .45       CRISIL A4 (Assigned)

The ratings reflect the firm's extensive experience of its
partners. These strengths are partly offset by vulnerability to
economic cycles in key markets and volatility in foreign exchange
(forex) rates.

Analytical Approach
For arriving at the rating, CRISIL has considered RR's standalone
business and financial risk profiles.

Key Rating Drivers & Detailed Description

Weakness

* Vulnerability to economic cycles in US and UK, and volatility
in forex rates: With significant proportion of income derived
from exports to US and UK, revenue and profitability remain
vulnerable to economic cycles of these markets, and any adverse
movement in forex rates.

Strength
* Extensive experience of the partners: The decade-long
experience of the partners in the granite industry, and their
established relationships with customers and suppliers, will
continue to support the business risk profile.

Outlook: Stable

CRISIL believes RR will continue to benefit from the extensive
experience of its partners, and their established relationships
with major customers. The outlook may be revised to 'Positive' if
sustained improvement in revenue and operating profitability,
leads to higher cash accrual and strengthens the capital
structure. The outlook may be revised to 'Negative' if low cash
accrual, a stretched working capital cycle, or debt-funded
capital expenditure, weakens the financial risk profile.

Liquidity
Liquidity is weak, marked by marginal cash and cash equivalent of
INR0.1 crore as on March 31, 2018, and tightly matched cash
accrual against term debt of INR0.5 crore in fiscal 2020. The
fund-based limit of INR2.75 crore has been almost fully utilised
over the five months ended November 30, 2018. Promoters have also
extended unsecured loans which stood at INR0.9 crore as on
March 31, 2018.

RR was set up as a partnership firm of Mr Majeti Rajesh and his
family in 2010. The Prakasam, Andhra Pradesh based RR processes
and exports granite blocks, mainly to the US and UK.


RATNAGIRI SEEDS: CRISIL Assigns B+ Rating to INR2.96cr Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Ratnagiri Seeds and Farm (RSF).

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Proposed Fund-
   Based Bank Limits     2.96       CRISIL B+/Stable (Assigned)

   Long Term Loan         .04       CRISIL B+/Stable (Assigned)

   Bank Guarantee        5          CRISIL A4 (Assigned)

   Cash Credit           2          CRISIL B+/Stable (Assigned)

The ratings reflect the firm's modest scale of operations,
average financial risk profile marked by low net worth and weak
gearing, exposure to intense competition, and large working
capital requirement. These weaknesses are partially offset by the
extensive experience of its proprietor and strong client base.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations and average financial risk profile:
With an operating income of INR15 crore in fiscal 2018, scale
remains small. Also, net worth was subdued at INR1.74 crore as on
March 31, 2018, while gearing was weak at 2.57 times (2.92 times
in the previous year). Interest coverage ratio was muted at 1.2
times for fiscal 2018.

* Exposure to intense competition: The genetic seeds industry is
highly fragmented with a large number of unorganized players.
This limits pricing and bargaining power.

* Working capital-intensive operations with stretched liquidity:
Gross current assets were 198 days as on March 31, 2018 (157 days
in the previous year), on account of large inventory of 56 days.
This is because the firm deals in paddy, wheat, and lentils seeds
that are seasonal. Also, receivables level increased
substantially to 81 days as on March 31, 2018, from 10 days in
the previous year because of delay in payment by private clients.

Strengths:

* Extensive experience of proprietor: Benefits from proprietor's
experience of around a decade and healthy client relationship
will continue to support business.

* Strong clientele: Product portfolio includes paddy, wheat, and
lentil seeds; which are sold under the Ratnagiri brand.
Furthermore, RSF is a registered seed producer for National Seeds
Corporation and State Farm Corporation of India since 2008.

Outlook: Stable
CRISIL believes RSF will continue to benefit from its
proprietor's extensive experience. The outlook may be revised to
'Positive' if the firm reports significant revenue and
profitability. The outlook may be revised to 'Negative' if
substantially low cash accrual or further increase in working
capital requirement leads to deterioration in liquidity.

Liquidity
* High bank limit utilisation: Bank limit was fully utilised as
on date, and the trend is likely to continue over the medium term
because of large working capital requirement.

* Cash accrual against debt obligation: Cash accrual of INR0.12
crore will be insufficient to repay term debt over the medium
term. However, proprietor is likely to extend unsecured loans for
the purpose.

* Moderate current ratio of 1.14 times as on March 31, 2018.

Established in 2008 in Bihar as a proprietorship firm by Mr
Neeraj Chaubey, RSF processes and sells genetic seeds with
installed capacity of 8 tonne per hour.


RELIANCE COMMUNICATIONS: Makes $18.6M Payment in Ericsson Dispute
-----------------------------------------------------------------
The Financial Times reports that Reliance Communications has
deposited $18.6 million at India's supreme court in a "partial
payment" to creditor Ericsson, which is pushing to have its
chairman Anil Ambani imprisoned for alleged contempt of court.

Last week, the Swedish group filed a petition with India's
supreme court, accusing RCom of breaching a court order to pay
$79 million in unpaid dues, the FT recalls. It alleged that the
telecom company had "illegally pocketed" the proceeds of asset
sales, instead of transferring funds to creditors.

The FT relates that on Jan. 7, RCom said it had deposited Rs1.31
billion ($18.6 million) of its operational funds with the supreme
court registry, as a partial payment towards the amount claimed
by Ericsson, which it remained "fully committed" to paying. The
initial payment represents more than a third of the Rs3.8 billion
that the company had in cash and cash equivalents at the end of
September, the FT discloses citing Rcom's most recent financial
report.

It separately accused Ericsson of "attempting a trial by media
and sensationalising issues", and claimed that the Swedish
group's conduct "gravely endangered" the interests of RCom's
secured lenders, which include 17 Indian public sector banks.
RCom had total liabilities of more than $7 billion at the end of
September, the FT notes.

The FT adds that RCom said the supreme court had given it four
weeks to submit a response to Ericsson's petition, and would then
give Ericsson a further week to file a rejoinder, after which the
court would hear the case.

According to the FT, RCom was once the key asset in Mr. Ambani's
corporate empire and among Asia's most valuable telecoms groups
but, over the past decade, it has had big losses in its market
share to rivals led by Bharti Airtel and Vodafone India. This
left it vulnerable to a price war launched in late 2016 by
Reliance Jio, the telecoms company backed by Mr. Ambani's older
brother Mukesh.

The FT notes that since the Ambani brothers divided their
father's Reliance conglomerate between them in 2005, the market
capitalisation of Mukesh's Reliance Industries - which earns most
of its revenue from oil products - has grown to $100.3 billion.
In contrast, the aggregate value of Anil's listed companies -
which include operations in power, infrastructure and financial
services - has declined to $3.7 billion.

After creditors including Ericsson started proceedings under
India's new bankruptcy law, RCom in December 2017 agreed to sell
its main mobile assets to Jio, the report says.

The FT says Ericsson had claimed $158 million from RCom in unpaid
fees for outsourced management services, but agreed to accept
half that sum after assurances that it would be repaid swiftly
with the proceeds of the Jio transaction. The agreement brought
the insolvency proceedings to a halt, the report states.

But while RCom has handed over some minor assets to Jio,
completion of the full deal hinges on approval from the
government, which is pursuing RCom for outstanding dues related
to spectrum acquisition, according to the FT.

While it fends off the contempt of court action from Ericsson,
RCom has launched a contempt suit of its own against the
government's telecoms department, which it accuses of breaching a
commitment to approve the Jio deal, the FT says.

Companies in Anil Ambani's Reliance group are also seeking at
least $11.4 billion in 26 defamation lawsuits against politicians
and foreign and domestic media groups, including the Financial
Times. The complaints, all filed in the western city of
Ahmedabad, relate to coverage of the group's involvement in a big
defence deal and its broader financial performance, the report
adds.

                   About Reliance Communications

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

As reported in the Troubled Company Reporter-Asia Pacific on
May 17, 2018, The Economic Times said the dedicated bankruptcy
court has admitted three insolvency petitions filed against
Reliance Communications and its subsidiaries, by Ericsson,
dealing a severe blow to the telco's plans of selling most of its
wireless units to Reliance Jio Infocom (Jio).  The decision,
which came after nearly eight months since the Swedish telecom
equipment maker moved the National Company Law Tribunal's (NCLT)
Mumbai bench to recover INR1150 crore in dues, effectively makes
the Anil Ambani owned carrier bankrupt, the second such after
Chennai-based Aircel, ET said.

The TCR-AP reported on Dec. 20, 2018, CARE Ratings has migrated
the rating on bank facility of Reliance Communications Limited
(RCom) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long term Bank      9,322      CARE D; Issuer not cooperating;
   Facilities                     Based on best available
                                  information.

   Short term Non-     8,034      CARE D; Issuer not cooperating;
   Fund based                     Based on best available
   Facilities                     information.

   Long term             750      CARE D; Issuer not cooperating;
   Instruments (NCD)              Based on best available
                                  information.

   Short term          2,880      CARE D; Issuer not cooperating;
   debt issue                     Based on best available
                                  information.

RCom has not paid the surveillance fees for the rating exercise
agreed to in its Rating Agreement. In line with the extant SEBI
guidelines, CARE's rating on RCom's bank facilities/instruments
will now be denoted as CARE D; ISSUER NOT COOPERATING.


RHEOMAX GUMS: CRISIL Assigns B+ Rating to INR10cr LT Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Rheomax Gums LLP (RGL).

                          Amount
   Facilities          (INR Crore)    Ratings
   ----------          -----------    -------
   Proposed Long Term
   Bank Loan Facility        10       CRISIL B+/Stable (Assigned)

   Proposed Working
   Capital Facility           3       CRISIL B+/Stable (Assigned)

The rating reflects the firm's exposure to risks related to
execution of its project and its expected leveraged capital
structure. These weaknesses are partially offset by the extensive
experience of the promoters in the pharmaceuticals industry.

Key Rating Drivers & Detailed Description

Weakness

* Exposure to risks related to execution of project: RGL is
scheduled to commence operations in September 2019. It will face
moderate demand risk as the pharmaceuticals industry is highly
fragmented because of low entry barriers with small capital and
technological requirements. RGL will face intense competition.
Timely completion of project and stabilisation of operations will
remain key rating sensitivity factors.

Strength

* Extensive experience of the promoters: Mr Kadam Dineshbhai
Chudgar's experience of more than a decade in the pharmaceuticals
sector will benefit the firm.

Outlook: Stable

CRISIL believes RGL will continue to benefit from promoters'
extensive experience. The outlook may be revised to 'Positive' if
the firm generates more-than-expected revenue and profit after
stabilising operations. The outlook may be revised to 'Negative'
if there is a delay in commissioning of the project, or if
financial risk profile is weak because of additional, debt-funded
capital expenditure.

Liquidity:
Timely infusion of funds by the promoters and bank borrowing
during project implementation and initial stage of operations to
meet debt obligation will remain key rating sensitive factors.

Set up in February 2012 and promoted Mr Dinesh Ranchhodlal
Chudgar and Mr Kadam Dineshbhai Chudgar, RGL is a setting up a
synthetic organic chemical plant in Ahmedabad.


S THARTIUS: CRISIL Reaffirms B+ Rating on INR5cr Loan
------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of S. Thartius Engineering Contractors
(STEC).

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee        10        CRISIL A4 (Reaffirmed)
   Overdraft              5        CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect modest scale of operations in the
intensely competitive industry. This weakness is partially offset
by the extensive experience of its partner in the civil
construction industry.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations and exposure to risk related to its
tender based business: STEC has a modest scale of operations as
indicated by revenue of about Rs.25 crores as on March 31, 2018.
The construction industry in India is fragmented and highly
competitive with numerous small-scale players restricting its
ability to bid for larger tenders and thereby limit its growth
prospects over the medium term.

Strength

* Experience of partner: Established in 1974, as a proprietorship
firm, and later converted in 2002 as a partnership firm between
Mr. Thartius and his sons, Mr.Adhariyan and Mr.T Rybin. The
partner has been in the industry for over four decades, has over
the years gained significant insights of the industry and has
established relationships with key customers like Indian Oil
Corporation Ltd (IOCL), Bharat Petroleum, Hindustan Petroleum
Corporation Ltd (HPCL).

Outlook: Stable

CRISIL believes that STEC will continue to benefit over the
medium term from its promoters' extensive experience in the
engineering construction business. The outlook may be revised to
'Positive' if the firm significantly scales up operations while
sustaining its profitability, or improves its working capital
management leading to improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
firm's financial risk profile weakens because of lengthening of
its working capital cycle, or if the firm undertakes a large
debt-funded capital expenditure programme.

Liquidity
The BLU has been moderately high at around 80 percent in the last
13 months ending August 2018, however, the enhancement in the
current bank limits will provide comfort to the liquidity.
Further, the firm is expected to generate sufficient net cash
accruals to repayment obligations in the medium term.

STEC, is a Tuticorin (Tamil Nadu)-based partnership firm, engaged
in engineering, procurement, and construction work for
construction of pipelines for oil, gas, and water. Its day-to-day
operations are managed by the Thartius family.


SAHA INFRATECH: CARE Lowers Rating on INR160cr NCD to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Saha Infratech Private Limited (SIPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Non-Convertible
   Debentures          160.00      CARE D Revised from
                                   CARE B+; Stable

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the NCD of SIPL takes into
consideration the default in debt servicing of the interest
payments by the company.

Detailed description of the key rating drivers

Ongoing Delays in Debt Servicing: The company has defaulted in
debt servicing of the interest payments due on December 30, 2018
due to tight liquidity position.

Subdued industry scenario: The real estate sector has been
grappling with issues such as unsold inventory, delayed delivery
and financial stress on the developers for quite some years now
and post demonetisation; due to higher liquidity the buyers have
deferred their purchases as they are expecting the borrowing
rates to come down. However, with the introduction of Real Estate
(regulation and Development) Act (RERA) and GST (Goods and
Services Tax), the residential real estate sector is on the path
of transformation with modified rules and mandatory approvals
which will enhance the transparency and customers' trust in the
sector but also add additional burden on the developers which
might hamper the sentiments of the market.

Saha Infratech Private Limited (SIPL) was incorporated in 2011
and is promoted by Mr. Aniel Kuumar Saha (Chairman & Managing
Director) who is a professional architect and holds a degree of
Master of Architecture. He has over 25 years of experience in
real estate development. Mr. Ashok Kumar Sirohi (Joint Managing
Director) has experience of over a decade in real estate sector
and is responsible for making strategic decisions for the
company.
SIPL is engaged in real estate development and construction of
residential group housing projects and is currently working to
deliver its two maiden real estate projects; both of them are
located in Noida (Uttar-Pradesh).


SAKALDEEP COLD: CRISIL Withdraws D Rating on INR3.75cr Term Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of
Sakaldeep Cold Storage Private Limited (SCSPL) 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.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Overdraft              0.2       CRISIL D (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL D'; Rating Withdrawn)

   Term Loan              3.75      CRISIL D (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL D'; Rating Withdrawn)

   Working Capital
   Loan                   1.65      CRISIL D (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL D'; Rating Withdrawn)

CRISIL has been consistently following up with SCSPL for
obtaining information through letters and emails dated December
04,2018 and December 10,2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'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 SCSPL. 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
SCSPL 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 SCSPL
to 'CRISIL D/CRISIL D Issuer not cooperating'.

SCSPL, which was incorporated in 2016, operates a cold storage
unit (primarily for storing potatoes) at Bhojpur district of
Bihar. The cold storage currently has a capacity of 7,000
quintals in two chambers. Mr Bhuneshvar Ray, Mr Rajeshwar Ray and
Mr Vindeshwar Ray are the directors of the company.


SHIVAM IRON: CRISIL Withdraws B- Rating on INR125cr Cash Loan
-------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of Shivam
Iron and Steel Company Limited (SISCL) on the request of the
company and receipt of a no objection certificate from its bank.
The rating action is in line with CRISIL's policy on withdrawal
of its ratings on bank loans.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee        5.9       CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Cash Credit         125.0       CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Funded Interest
   Term Loan             7.13      CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Letter of Credit     30.00      CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Proposed Long Term
   Bank Loan Facility    1.38      CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Term Loan            20.35      CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)
   Working Capital
   Term Loan            34.24      CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with SISCL for
obtaining information through letters and emails dated January
19, 2018, February 15, 2018 and February 21, 2018 among others,
apart from telephonic communication. However, the issuer has
remained non cooperative.

'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 SISCL, which restricts
CRISIL's ability to take a forward looking view on the entity's
credit quality. CRISIL believes information available on SISCL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

SISCL, incorporated in 1998, manufactures sponge iron, mild steel
(MS)/stainless steel (SS) ingots and billets, pig iron, hard
coke, MS structural items such as angles, channels, bars, and
flats, SS flats, and ferroalloys (silico alloys and
ferromanganese). It sells products under its Siscon brand. Its
sponge iron unit is in Koderma and other manufacturing facilities
are in Giridh (both in Jharkhand).


SHRI BALAJI: CRISIL Assigns B- Rating to INR3cr Capital Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Shri Balaji Construction Company (SBCC).

                        Amount
   Facilities         (INR Crore)     Ratings
   ----------         -----------     -------
   Proposed Bank
   Guarantee                5         CRISIL A4 (Assigned)

   Working Capital
   Facility                 3         CRISIL B-/Stable (Assigned)

The ratings reflect the firm's modest scale of operations in the
intensely competitive construction industry and susceptibility to
risks inherent in tender-based operations. These weaknesses are
partially offset by the extensive experience of the proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and intense competition: Intense
competition in the domestic civil construction sector from large
players as well as small regional ones keeps scale of operations
modest and constrains profitability. Moreover, as operations are
focused only in Lucknow, any slowdown in the industry or force
majeure event in the state could adversely impact the firm's
business.

* Weak financial risk profile: The financial risk profile is
constrained by high total outside liabilities to adjusted
networth ratio of 4.8 times as on March 31, 2018, and low net
cash accrual to adjusted debt ratio of 5% and low return on
capital employed of 7% for fiscal 2018.

Strength

* Extensive experience of the proprietor: The proprietor's
experience of a decade has led to efficient and timely execution
of projects and regular orders from customers, and should
continue to support SBCC's business.

Outlook: Stable

CRISIL believes SBCC will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if increase in revenue or profitability leads to
higher cash accrual while working capital cycle remains stable.
The outlook may be revised to 'Negative' if lower cash accrual or
large working capital requirement or debt-funded capital
expenditure constrains liquidity.

Liquidity
High amount of debt taken during fiscal 2018 is expected to
weaken liquidity due to decrease in net cash accrual to INR(-)
1.4 crore during fiscal 2019 against repayment obligation of
around INR2 crore. Bank limit utilization is high at 97%,
averaged over 6 months ended Oct 2018.

SBCC undertakes construction of residential apartments for real
estate developers.


SHRI BALAJI ROHILKHAND: CRISIL Lowers Rating on INR60cr Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shri Balaji Rohilkhand Rice Mills Private Limited (SBRM) to
'CRISIL D' from 'CRISIL BB-/Stable'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            60        CRISIL D (Downgraded from
                                    'CRISIL BB-/Stable')

   Term Loan               9        CRISIL D (Downgraded from
                                    'CRISIL BB-/Stable')

The downgrade reflects delay in servicing of term loan
obligations.

The rating continues to reflect the extensive experience of the
promoters. This strength is partially offset by working capital-
intensive operations and weak liquidity.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak liquidity: SBRM has delayed the servicing of term loan
obligations and overdrawn the working capital limit.

* Working capital-intensive operations: Gross current assets
(GCA) days increased to 111 days on March 31, 2017, from 88 days
a year earlier, driven by an increase in debtors to 106 days from
88 days. Operations are expected to remain working capital
intensive over the medium term.

Strength
* Extensive industry experience of the promoters: The promoters
have more than two decades of experience in the rice industry.
This helps them maintain a good relationship with stakeholders
across the value chain.

Liquidity:
Liquidity is weak as reflected in delay in servicing of term loan
obligations and overdrawn working capital limit.

SBRM was incorporated by Gupta family of Bareilly in 2011. It is
engaged in milling and processing of paddy into rice, rice bran,
broken rice and husk. Mr Rachin Gupta and Ms Seema Gupta are the
promoters of the company. Mr. Rachin Gupta is also engaged
managing day to day activity of the business.


SREE MANGAYARKARASI: CARE Assigns B+ Rating to INR7.40cr Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sree
Mangayarkarasi Mills Private limited (SMMPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           7.40       CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities           4.05       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SMMPL continues to
be tempered by small scale of operation with continuous decline
in Total Operating Income and net loss incurred, susceptibility
of margins to fluctuation in raw material prices, highly
competitive industry and leveraged capital structure and weak
debt coverage indicators.

The ratings continue to derive strength from the Long track
record of the company and experienced promoters in textile
industry and satisfactory operating cycle.

Going forward, the company's ability to improve its scale of
operations, profitability, capital structure and debt coverage
indicators along with efficient management of its working capital
requirements will be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small scale of operation with continuous decline in Total
Operating Income and net loss incurred: The operation of SMMPL
stood small measured by total operating income of INR49.88 crore
in FY18 with low net worth base of INR3.62 crore as on March 31,
2018 as compared to other peers in this industry. The total
operating income of SMMPL marginally declined from INR 49.96
crore in FY17 to INR 49.88 crore in FY18 due to unfavorable
market condition with increase in price of raw materials such as
cotton yarn and grey fabrics leading to decline in total
operating income.

Susceptibility of margins to fluctuation in raw material prices:
Prices of cotton bales which are dependent upon the prices of raw
cotton are volatile in nature and depend upon various factors.
Any wide fluctuation in the price of its key raw material and
inability to timely pass on the complete increase in the prices
to its customers is affecting the company's profitability
margins.
Highly competitive industry: Textile is a cyclical industry and
closely follows the macroeconomic business cycles. High
competitive intensity in the textile industry, volatility of
cotton prices and sluggish demand outlook from developed markets
are the major cause of concern for the Indian textile industry.

Leveraged capital structure and weak debt coverage indicators:
The capital structure of the company marked by overall gearing
deteriorated from 3.36x as on March 31, 2017 to 4.44x as on March
31, 2018 , due to higher utilization of working capital
facilities as on account closing date coupled with decrease in
net-worth due to net loss incurred.

Decline in PAT margin: The PAT margin of the company declined
from -0.51% in FY17 to -2.86% in FY18 and stood negative ,mainly
on account of declining operating profit along with increasing
financial expenses mainly driven by high utilization levels of
working capital facilities along with interest charged on
unsecured loan from directors.

Deterioration in debt coverage indicators albeit remained
satisfactory: The total debt/GCA of the company deteriorated from
43.87x in FY17 to -77.84x in FY18 and stood weak due to cash loss
incurred. The interest coverage ratio increased from 1.16x in
FY17 to 1.54x in FY18 and remained satisfactory on account of
increase in operating profit by absolute terms.

Key Rating Strengths

Long track record of the company and experienced promoters in
textile industry.

The promoters of the company have long experience of two decades
in the yarn manufacturing and the company has long track record
of more than a three decade in the manufacturing of cotton yarn
with established relationship with domestic customers. The day-
to-day activities of the company are actively managed by Sri. K.
Murugesan.

Comfortable PBILDT margin: The PBILDT margin of the company
improved from 3.33%in FY17 to 4.44% in FY18 mainly on account of
marginal increase in production resulting to over absorption of
fixed overhead and decrease in cost of sales.

Satisfactory operating cycle: The operating cycle of the company
improved to 64 days in FY18 compared to 72 days in FY17. The
company maintains an average stock for a period of two months as
SMMPL is required to maintain adequate inventory of raw materials
for smooth production process and also maintains inventory of
finished goods to meet the immediate demand of the customers.
Each process requires inventory holding for processing. The
company sometimes bargains extended credit period from suppliers
in case of cash flow mismatches due to established relationship
resulting in average creditor days between 15-30 days during
review period. However, the company receives the payment from its
customers within 30-40 days. The average utilization of working
capital of the firm remained about 90% for the last 12 month
ended November 30, 2018.

Liquidity Analysis: The current ratio of the firm marginally
declined from 0.98x as of March 31, 2017 to 0.94x as of March 31,
2018 mainly on account of decrease in the total receivables. The
cash and cash equivalents stood at INR0.94crore as on March 31,
2018 as against INR0.83 crore as on March 31, 2017. For the 12
months ended November 30, 2018, the unutilized working capital
limit on an average stood at 10%.

Sree Mangayarkarasi Mills Private Limited (SMMPL) was
incorporated in 1986 bySri. M. Kannappan and Sri. K. Murugesan in
Madurai, Tamil Nadu. The company is engaged in manufacturing of
cotton yarn with count range of 16-40 and the gray fabrics which
are used for garments and industrial uses. The installed capacity
of SMMPL stood at approx. 5,500 kilogram per day and 5000 metres
per day for cotton yarn and gray fabrics respectively.


STARWOOD VENEERS: CRISIL Reaffirms B Rating on INR2cr Loan
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on
the bank facilities of Starwood Veneers Private Limited (SVPL).

                         Amount
   Facilities         (INR Crore)    Ratings
   ----------         -----------    -------
   Export Packing           1.1      CRISIL B/Stable (Reaffirmed)
   Credit & Export
   Bills Negotiation/
   Foreign Bill
   discounting

   Inland/Import
   Letter of Credit         6.0      CRISIL A4 (Reaffirmed)

   Overdraft                2        CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility       0.9      CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect its modest scale of operations,
large working capital requirement, and below-average financial
risk profile. These weaknesses are partially offset by the
extensive experience of its promoters and benefits from
association with the Santosh Timber group.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest scale of operations: With revenue of INR16.77 crore in
fiscal 2018, scale remains small in the fragmented timber
processing industry.

* Weak financial risk profile: Networth was small at INR1.58
crore as on March 31, 2018, while total outside liabilities to
tangible networth ratio was high at 8.20 times. Debt protection
metrics were average, with interest coverage ratio of 1.8 times
for fiscal 2018.

* Working capital-intensive operations: Gross current assets were
258 days as on March 31, 2018, because of sizeable inventory and
stretched receivables of 108 days and 170 days, respectively.

Strengths

* Extensive experience of promoters and benefits from association
with the Santosh Timber group: The three decade-long experience
of the promoters and their healthy relationship with customers
and suppliers will continue to support business risk profile.
SVPL is a part of the Santosh Timber group, which includes
Santosh Timber Trading Company Ltd (rated 'CRISIL
B+/Stable/CRISIL A4'; trades in timber, doorskins, medium density
fiberboards, and plywood) and Sanwood Shoppe Pvt Ltd (retail
outlet for sale of the above-mentioned items).

Outlook: Stable

CRISIL believes SVPL will continue to benefit from the
longstanding presence of its promoters and association with the
Santosh Timber group. The outlook may be revised to 'Positive' if
growth in revenue and profitability or better working capital
management strengthens business and financial risk profiles. The
outlook may be revised to 'Negative' if significant decline in
topline or margin due to intense competition weakens business
risk profile, or if stretch in working capital cycle or any
sizeable capital expenditure leads to deterioration in financial
risk profile.

Liquidity
Liquidity remains adequate, backed by cash accrual of INR0.22
crore against debt obligation of INR0.15 crore in fiscal 2019.
Bank limit utilisation averaged 84% in the 12 months ended
October 2018. Current ratio was strong at 1.26 times as of March
2018.

Incorporated in 1997 and promoted by Mr Ashish Agarwal and his
family, SVPL processes teak veneer and timber. It has a sawing
unit in Gandhidham, Gujarat; and a veneer processing facility
(capacity of 1 lakh square metre per month) in Sampla, Haryana.


SWASHTHIK CAPS: CRISIL Withdraws B+ Rating on INR3.5cr Loan
-----------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of
Swashthik Caps Private Limited (SCPL; part of Swashthik Group) on
the request of the company and receipt of a no dues certificate
from its bank. The rating action is in line with CRISIL's policy
on withdrawal of its ratings on bank loans.

                    Amount
   Facilities     (INR Crore)     Ratings
   ----------     -----------     -------
   Cash Credit          3.5       CRISIL B+/Stable (ISSUER NOT
                                  COOPERATING; Rating Withdrawn)

   Letter of Credit     1.0       CRISIL A4 (ISSUER NOT
                                  COOPERATING; Rating Withdrawn)

   Long Term Loan       0.5       CRISIL B+/Stable (ISSUER NOT
                                  COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with SCPL for obtaining
information through letters and emails dated July 23, 2018 and
August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'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 SCPL. This restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SCPL 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, the
rating on bank facilities of SCPL continues to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.

Analytical Approach

For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of SCPL and its group entities,
Swashthik Preforms Private Limited (SPPL) and Swashthik
Industriees (SI), collectively known as the Swashthik Group, as
all the entities are in the same line of business, have common
promoters and have operational linkages.

                          About the Group

Established in 2007 as a partnership entity, SCPL was
reconstituted as a private limited company in 2011. SCPL is
engaged in the manufacture of three product lines: single stage
bottles, caps and preforms. SCPL has an installed capacity to
manufacture 9 tonnes of packaging material per day.

Established in 2007 as a partnership entity, SPPL was
reconstituted as a private limited company in June 2011. SPPL is
engaged in the manufacture of pre-forms used primarily in the
mineral water industry, jars for the confectionery industry etc.
SPPL has an installed capacity to manufacture 12 tonnes of
preforms per day.

Established in 2011, SI is engaged in the manufacture of pre-
forms, containers, bottles and jars. SI has a capacity to
manufacture 15 tonnes of packaging material per day.


SWASHTHIK PREFORMS: CRISIL Withdraws B+ Rating on INR4.5cr Loan
---------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of
Swashthik Preforms Private Limited (SPPL; part of Swashthik
Group) on the request of the company and receipt of a no dues
certificate from its bank. The rating action is in line with
CRISIL's policy on withdrawal of its ratings on bank loans.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee        0.5       CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Cash Credit           4.5       CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Letter of Credit     2.25       CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Long Term Loan       1.25       CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated July 23, 2018 and
August 31, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'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 SPPL. This restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPPL 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, the
rating on bank facilities of SPPL continues to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.

Analytical Approach
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of SPPL and its group entities,
Swashthik Caps Private Limited (SCPL) and Swashthik Industriees
(SI), collectively known as the Swashthik Group, as all the
entities are in the same line of business, have common promoters
and have operational linkages.

                          About the Group

Established in 2007 as a partnership entity, SCPL was
reconstituted as a private limited company in 2011. SCPL is
engaged in the manufacture of three product lines: single stage
bottles, caps and preforms. SCPL has an installed capacity to
manufacture 9 tonnes of packaging material per day.

Established in 2007 as a partnership entity, SPPL was
reconstituted as a private limited company in June 2011. SPPL is
engaged in the manufacture of pre-forms used primarily in the
mineral water industry, jars for the confectionery industry etc.
2SPPL has an installed capacity to manufacture 12 tonnes of
preforms per day.

Established in 2011, SI is engaged in the manufacture of pre-
forms, containers, bottles and jars. SI has a capacity to
manufacture 15 tonnes of packaging material per day.


TELUGU CINE: Ind-Ra Lowers Rating on INR500MM Bank Loan to 'D'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Telugu Cine
Workers Cooperative Housing Society Limited's bank loan rating to
'IND D (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT
COOPERATING)'. The issuer did not participate in the rating
exercise, despite continuous requests and follow-ups by the
agency. Therefore, the rating is based on the best available
information. The rating will now appear as 'IND D (ISSUER NOT
COOPERATING)' on the agency's website.

The detailed rating action is:

-- INR500 mil. Fund-based working capital downgraded with IND D
     (ISSUER NOT COOPERATING) rating.

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

KEY RATING DRIVERS

The downgrade reflects the society's ongoing delays in debt
servicing due to a stressed liquidity profile.

RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive
months could result in an upgrade.

COMPANY PROFILE

Telugu Cine Workers Cooperative Housing Society is registered
under the Andhra Pradesh Co-Operative Societies Act 7 of 1964. It
was established in 1991 for the construction and handover of
housing units in Chitrapuri Colony, Hyderabad.


USHASRI COTTON: CRISIL Assigns 'B' Rating to INR7cr Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Ushasri Cotton And Ginning Mills Private Limited
(UCGMPL).

                      Amount
   Facilities       (INR Crore)      Ratings
   ----------       -----------      -------
   Cash Credit             7         CRISIL B/Stable (Assigned)

The rating reflects the modest scale of UCGMPL's operations,
large working capital requirement, and a weak financial risk
profile. These weaknesses are partially offset by the extensive
experience of the promoters.


Analytical Approach

Unsecured loans (outstanding at INR2.39 crore as on March 31,
2018) extended to UCGMPL by the promoters have been treated as
neither debt nor equity. That is because these non-interest-
bearing loans are expected to be retained in the business over
the medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Intense competition may continue to
constrain scalability, pricing power, and profitability. Revenue
was modest at INR3.93 crore in fiscal 2018.

* Large working capital requirement: Operations may remain
working capital intensive over the medium term. Gross current
assets, inventory and debtors were 1,298 days, 1,003 days, and
685 days, respectively, as on March 31, 2018. Moreover, debtors
worth INR3.79 crore were outstanding for over six months as on
March 31, 2018; hence, its recovery will be a key rating
sensitivity factor.

* Weak financial risk profile: Financial risk profile is likely
to remain constrained by a leveraged capital structure and sub-
par debt protection metrics. Gearing was high at 4.29 times as on
March 31, 2018, with networth of INR2.12 crore. Interest coverage
and net cash accrual to adjusted debt ratios were modest at 1.46
times and 0.04 time, respectively, in fiscal 2018.

Strength

* Extensive experience of the promoters: Benefits from the
promoters' experience of over a decade, their strong
understanding of local market dynamics, and healthy relations
with customers and suppliers should continue to support the
business.

Outlook: Stable

CRISIL believes UCGMPL will continue to benefit from the
experience of the promoters. The outlook may be revised to
'Positive' if a substantial and sustainable increase in revenue
and profitability along with prudent working capital management
strengthens the financial risk profile. Conversely, the outlook
may be revised to 'Negative' if lower than expected operating
margin, delays in realisation of pending receivables, or any
large, debt-funded capital expenditure further weakens the
financial risk profile.

Liquidity
Liquidity should remain stretched over the medium term because of
modest cash accrual and large working capital requirement,
resulting in almost full bank limit utilisation. Net cash accrual
is estimated to be modest at INR20-30 lakhs per annum in fiscals
2019 and 2020. However, timely, need-based funds extended by the
promoters, and absence of term debt support liquidity.

Khammam-based UCGMPL, incorporated in August 2008, gins and
presses cotton. Mr Ch Sridhar and Mr Ch Satyam are the promoters.



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


1MDB: Malaysia Probes Whether China Offered Bail Out in 2016
------------------------------------------------------------
Bloomberg News reports that Malaysia is looking into allegations
that China offered to help deter probes into 1MDB in exchange for
infrastructure projects, after the Wall Street Journal reported
that senior Chinese leaders offered to help bail out the troubled
state fund in 2016.

Bloomberg relates that the government is unaware of the
discussions detailed in the Journal report, which cited minutes
from meetings the newspaper reviewed, and is examining the
matter, said Finance Minister Lim Guan Eng. The cost of China-
backed projects was certainly enlarged and Malaysia will check
whether that was due to 1MDB links, Lim said near Kuala Lumpur on
Jan. 8, the report says.

"But I have to refer back to see if there are details or thing
explicitly said," Bloomberg quotes Mr. Lim as saying. "If this is
said, this is something we will pursue."

According to Bloomberg, the Journal said Chinese officials told
visiting Malaysians that China would use its influence to try and
get the U.S. and other countries to drop probes of allegations
that allies of then-Prime Minister Najib Razak and others
plundered the fund. In return, Malaysia offered stakes in railway
and pipeline projects as part of China's Belt and Road
Initiative.

The Chinese government information office didn't respond to
requests for comment, the Journal said, adding that China's
foreign ministry has earlier denied that money in the program was
used to help bail out the 1MDB fund, Bloomberg relays. The
Malaysian prime minister's office couldn't immediately comment.

1MDB is at the center of a global scandal involving claims of
embezzlement and money laundering, with jurisdictions from the
U.S., Malaysia and Singapore probing cases related to the fund,
Bloomberg notes. Najib has been charged with dozens of counts of
corruption, criminal breach of trust and money laundering
involving 1MDB-related monies.

He also stands accused of altering the report on a government
audit into the fund to protect himself from criminal, civil or
regulatory action. He has denied wrongdoing and pleaded not
guilty to all charges, Bloomberg relates.

Bloomberg says Malaysia's current government, which toppled Najib
from power in a shock election victory last May, has halted
billion-dollar projects backed by China. That includes the Sabah
gas pipeline project awarded to China Petroleum Pipeline Bureau
and overseen by Suria Strategic Energy Resources, which has had
its office raided by the anti-graft agency.

According to Bloomberg, Prime Minister Mahathir Mohamad said as
recently as November that he was continuing talks with China on
another project: the 81 billion-ringgit ($19.7 billion) East
Coast Rail Link, which remains in limbo after previously being
halted and then canceled. China Communications Construction Co.
was picked as the main contractor for the railway aimed to
connect the eastern part of Peninsular Malaysia, Bloomberg notes.

China also offered to bug the homes and offices of Wall Street
Journal reporters in Hong Kong who were investigating 1MDB, to
learn who was leaking information to them, the Journal said,
citing the minutes of the meetings, Bloomberg further relays. It
couldn't be determined whether China provided any such
information, the newspaper added.

                            About 1MDB

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

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

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

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

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

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

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



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


HANJIN HEAVY: Philippine Unit Files for Rehabilitation Scheme
-------------------------------------------------------------
Yonhap News Agency reports that Hanjin Heavy Industries &
Construction Co. said on Jan. 8 that its affiliate in the
company's Philippine shipyard has filed for a rehabilitation
scheme.

In a regulatory filing, the shipbuilder said HHIC-Phil Inc.,
which operates the Subic yard, has filed for an insolvency scheme
in the archipelago country, Yonhap relates.

According to Yonhap, Hanjin Heavy and its affiliate have been
suffering from a drop in new orders amid the protracted slump in
the global shipbuilding sector.

In 2004, Hanjin Heavy built the shipyard in the Philippines to
boost its overall competitiveness.

Yonhap says the Subic shipyard's assets have been valued at
KRW1.84 trillion (US$1.64 billion), with the number of employees
standing at some 4,000.

Yonhap notes that Hanjin Heavy has been conducting massive
restructuring efforts since 2016 by selling non-core assets. So
far, the shipyard has met some 65 percent of the 2.1 trillion-won
restructuring scheme proposed by its creditors.

Its other shipyard here has secured KRW1.2 trillion worth of
orders to keep it busy for three years.

In 2017, Hanjin Heavy posted an operating income of KRW86.7
billion following operating incomes of KRW150 billion in 2015 and
KRW49.3 billion in 2016, Yonhap discloses.

Korea-based Hanjin Heavy Industries & Construction Co.
established a shipyard in Subic, west of Manila,
and delivered its first vessel from the yard in July 2008. It
uses the Philippine yard to build big ships while its facility in
Korea focuses on smaller vessels.



                             *********

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 2019.  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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