TCRAP_Public/190222.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

          Friday, February 22, 2019, Vol. 22, No. 39

                           Headlines



A U S T R A L I A

BLACK OAK: Marda Gold Project Acquired by Ramelius Resources
COUNTRY WELLNESS - CAPALABA: 2nd Creditors' Meeting Set for Feb. 28
ETHAN AFFORDABLE: First Creditors' Meeting Set for March 4
INTERNATIONAL FASHION: First Creditors' Meeting Set for March 1
JN & RS: First Creditors' Meeting Set for March 1

OZ DAIRY: Second Creditors' Meeting Set for Feb. 28
QUALITY TRAFFIC: First Creditors' Meeting Set for March 5
SMF PROJECTS: First Creditors' Meeting Set for March 1


B A N G L A D E S H

BANGLALINK DIGITAL: S&P Affirms BB- ICR Amid Ongoing Parent Support


C H I N A

BEIJING ORIENT: Makes CNY30MM Interest Payment A Day Late
EHI CAR SERVICES: S&P Alters Outlook to Negative & Affirms BB- ICR
GUNAGZHOU R&F: Fitch Rates Proposed USD Senior Notes 'BB-(EXP)'
KWG GROUP: Fitch Rates Proposed USD Senior Notes 'BB-(EXP)'
RONSHINE CHINA: Fitch Gives Final B+ Rating on USD600M Senior Notes

YUZHOU PROPERTIES: Fitch Rates USD250MM Sr. Unsecured Notes 'BB-'
YUZHOU PROPERTIES: Moody's Rates Proposed Sr. Sec. USD Notes 'B1'


I N D I A

A1 PAPERS: CARE Assigns B- Rating to INR7.66cr Bank Loans
ACCORD UDYOG: CARE Lowers Rating on INR8cr LT Loan to B
ADILABAD EXPRESSWAY: CARE Moves D Rating to Not Cooperating
ALP MILK: CRISIL Reaffirms 'B+' Ratings on INR19cr Loans
ANAND CONSTRUWELL: Ind-Ra Moves BB+ Rating to Non-Cooperating

ANOUSHKA HOSPITAL: Insolvency Resolution Process Case Summary
ASAHI INDUSTRIES: Insolvency Resolution Process Case Summary
BIVAB DEVELOPERS: CRISIL Migrates B Rating from Not Cooperating
C.T. ENGINEERING: CRISIL Reaffirms 'B' Rating on INR0.5cr Loan
COGENT STEEL: CARE Lowers Rating on INR14.7cr LT Loan to B

DIVYA SHREE: CARE Reaffirms B+ Rating on INR9.97cr LT Loan
DURGA AUTOMART: CARE Moves B+ on INR10cr Debt to Not Cooperating
GOLDEN RETREATS: CARE Reaffirms B+ Rating on INR8.35cr LT Loan
IL&FS: ED Probes Alleged Financial Irregularities
INDERA ETHNICS: CARE Reaffirms B Rating on INR5cr LT Loan

JAGANNATH RICE: Ind-Ra Hikes Rating on INR125.5MM Loan to BB
JSW STEEL: Moody's Alters Outlook on Ba2 CFR to Positive
KHAITAN PAPER: CRISIL Reaffirms 'B+' Ratings on INR6cr Loans
KUNJ ROLLER: Ind-Ra Affirms BB+ Rating on INR160MM Loan
LAHOTY BROTHERS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable

MAA BHUASUNI: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
MSR SEA: CRISIL Assigns 'B+' Rating to INR25cr Loans
N.N. GLOBAL: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
NISHA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR7cr Loan
OM SHANTI: CARE Rates INR10.50cr LT Loan 'B+'

P.S. EARTHMOVERS: CRISIL Reaffirms 'B' Rating on INR18cr e-DFS
PANNA TEXTILE: CRISIL Reaffirms B+ Rating on INR5.0cr LT Loan
PATWARI STEELS: CRISIL Hikes Rating on INR11.72cr Loans to B+
PAVAN TRADERS: CARE Migrates B+ on INR5.25 Debt to Not Cooperating
PETRON ENGINEERING: Ind-Ra Affirms 'D' LT Ratings, Outlook Stable

POLYGENTA TECHNOLOGIES: CARE Reaffirms B Rating on INR6.06cr Loan
RAJENDRA KUMAR: Ind-Ra Migrates 'BB' LT Rating to Non-Cooperating
RAJESH HOUSING: CRISIL Lowers Rating on INR140cr NCD to B
RBR GARMENTS: Ind-Ra Assigns BB LT Issuer Rating on INR430MM Loan
RELIANCE COMMUNICATIONS: Seeks INR260cr Release to Pay Ericsson

RITA INTERNATIONAL: Ind-Ra Moves B+ Rating to Non-Cooperating
SAHYADRI AGRO: Insolvency Resolution Process Case Summary
SAMARTH AD: Ind-Ra Migrates 'BB+' Issuer Rating to Non-Cooperating
SANGEETH TEXTILES: Ind-Ra Migrates 'BB+' Ratings to Non-Cooperating
SAS INFRA: CARE Moves B on INR8cr Debt to Non-Cooperating

SATNAM RICE: CARE Reaffirms B+ Rating on INR15cr LT Loan
SATYAM AGRO: CRISIL Lowers Rating on INR4cr Cash Loan to D
SATYAM EXIMTEX: CRISIL Lowers Rating on INR50cr Cash Loan to D
SHIV RICE: CARE Assigns B+ Rating to INR5cr LT Loan
SHREE VENKATESHWARA: CARE Lowers Rating on INR5.95cr Loan to B-

SHRINI SOFTEX: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
SIKKA INFRASTRUCTURE: Insolvency Resolution Process Case Summary
SRI LAXMI VENKATA: CARE Moves B on INR6cr Debt to Not Cooperating
SRI MURARI: CARE Migrates B+ on INR15cr Debt to Non-Cooperating
SUNBEAM DEALERS: CARE Migrates B+ Rating to Not Cooperating

SUPER HYGIENE: Ind-Ra Migrates 'BB-' LT Ratings to Non-Cooperating
TATA STEEL: Moody's Hikes CFR to Ba2 & Alters Outlook to Stable
UNIK TRADERS: CRISIL Reaffirms 'B' Rating on INR20cr Cash Loan
UNITED ELECTRICALS: Ind-Ra Migrates B+ Rating to Non-Cooperating
UNNATI FORTUNE: Insolvency Resolution Process Case Summary

VIJAYKAMAL PROPERTIES: Insolvency Resolution Process Case Summary
XENIA ABODE: Insolvency Resolution Process Case Summary
YES BANK: Moody's Alters Outlook on Ba1 Issuer Rating to Stable


S I N G A P O R E

ORIENTAL GROUP: To Apply for Winding-Up After Talks Collapse


X X X X X X X X

TURBO METALS: Insolvency Resolution Process Case Summary

                           - - - - -


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

BLACK OAK: Marda Gold Project Acquired by Ramelius Resources
------------------------------------------------------------
KordaMentha is pleased to announce the successful completion of the
sale of Black Oak Mineral's Marda Gold Project in Western Australia
to Australian gold miner, Ramelius Resources, for AUD13 million.

Ramelius is a Western Australian gold producer that has been listed
on the ASX since 2003 and in production since 2006. The sale was
finalised on February 7, and consists of 74 tenements located
within the Southern Cross region of WA.

It's not the first acquisition for The Mark Zeptner-led company,
which also acquired the Edna May Gold Mine from Evolution Mining in
2017.

The Marda project, which is located 191km north-north east of the
Edna May operations, will act as a feed source to the Edna May
mine, where the ore will be processed. Marda hosts a resource of
2.07 million tonnes at 2.3 grams per tonne for 151,000 ounces of
gold.

KordaMentha was appointed as liquidators to Black Oak Minerals'
Marda Gold Project.

To finalise the sale, the liquidators had to first apply to the
Federal Court to appoint themselves and Richard Tucker, of
KordaMentha Restructuring, as administrators to enable the company
to enter into a deed of company arrangement, which was subsequently
approved by creditors.

The process involved expert evidence from the administrators
indicating the shares held no value due to the considerable debts
of Black Oak Minerals.

"As far as we are aware, it is the first time a company that was in
liquidation has transitioned to voluntary administration to execute
a sale via section 444GA of the Corporations Act in Australia," Mr.
Tucker said.

In total, there were some 70 expressions of interest in the Marda
project, with seven final offers submitted from interested parties
ranging from AUD4.3 million to AUD14 million.

"It was a competitive sales campaign with some very solid offers,
but in the end we determined that the Ramelius offer via
acquisition of the ex-listed corporate entity presented the
greatest outcome for all stakeholders." Mr. Tucker said.

Mr. Tucker said he was pleased to see the continuation of the Marda
Gold Project under the direction of the Ramelius team.

"Their ongoing development of the project is sure to create further
jobs and opportunities for those within the local Southern Cross
region and mining sector," he said.

"That is a result we always welcome, and it was satisfying to be
able to play a role in ensuring the ongoing strength of the
Australian mining sector."

Richard Tucker, Robert Hutson and Jarrod Villani will remain as
trustees of the creditors' trust which was established as part of
the DOCA to execute the distributions to employee creditors.
Distributions are expected to be paid in the second half of this
year.

Johnson Winter & Slattery advised the administrators on the sale
process, DOCA and section 444GA court application.

COUNTRY WELLNESS - CAPALABA: 2nd Creditors' Meeting Set for Feb. 28
-------------------------------------------------------------------
A second meeting of creditors in the proceedings of Country
Wellness Pharmacy Capalaba Park Pty Ltd has been set for Feb. 28,
2019, at 10:30 a.m. at the offices of BRI Ferrier, at Level 4,
307 Queen Street, in Brisbane, Queensland.

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.

Ian Alexander Currie and Stefan Dopking of BRI Ferrier were
appointed as administrators of Country Wellness on Aug. 27, 2018.


ETHAN AFFORDABLE: First Creditors' Meeting Set for March 4
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Ethan
Affordable Housing Limited will be held on March 4, 2019, at 2:30
p.m. at the offices of Bent & Cougle Pty Ltd, at Level 5, 332 St
Kilda Road, in Melbourne, Victoria.

Hamish Alan Mackinnon of Bent & Cougle was appointed as
administrator of Ethan Affordable on Feb. 20, 2019.


INTERNATIONAL FASHION: First Creditors' Meeting Set for March 1
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of
International Fashion Group Pty Ltd will be held on March 1, 2019,
at 11:00 a.m. at the offices of Level 2, 151 Macquarie Street, in
Sydney, NSW.

Riad Tayeh and Antony Resnick of de Vries Tayeh were appointed as
administrators of International Fashion on Feb. 19, 2019.


JN & RS: First Creditors' Meeting Set for March 1
-------------------------------------------------
A first meeting of the creditors in the proceedings of JN & RS Pty
Ltd, trading as Nargis Gourmet Food and Star Cafe & Grill, will be
held on March 1, 2019, at 11:00 a.m. at the offices of Hall
Chadwick Chartered Accountants, at Level 40, 2 Park Street, in
Sydney, NSW.

David Allan Ingram and David Ross of Hall Chadwick were appointed
as administrators of JN & RS Pty on Feb. 19, 2019.


OZ DAIRY: Second Creditors' Meeting Set for Feb. 28
---------------------------------------------------
A second meeting of creditors in the proceedings of Oz Dairy
Leasing Pty Ltd and Aussie Milk Products Pty Ltd has been set for
Feb. 28, 2019, at 11:00AM & 11:30AM, respectively, at the offices
of Veritas Advisory, at Level 40, 140 William 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 Feb. 27, 2019, at 4:00 p.m.

Steve Naidenov and David Iannuzzi of Veritas Advisory were
appointed as administrators of Oz Dairy on Jan. 24, 2019.


QUALITY TRAFFIC: First Creditors' Meeting Set for March 5
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Quality
Traffic Management Pty Ltd will be held on March 5, 2019, at 10:30
a.m. at Function Centre, Fraser's Kings Park, 60 Fraser Avenue, in
West Perth, West Australia.

Mervyn Jonathan Kitay of Worrells Solvency was appointed as
administrator of Quality Traffic on Feb. 20, 2019.


SMF PROJECTS: First Creditors' Meeting Set for March 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of SMF Projects
Pty Ltd will be held on March 1, 2019, at 11:30 a.m. at the offices
of KordaMentha, at Level 10, 40 St Georges Terrace, in Perth, WA.

Richard Tucker and John Bumbak of KordaMentha were appointed as
administrators of SMF Projects on Feb. 19, 2019.




===================
B A N G L A D E S H
===================

BANGLALINK DIGITAL: S&P Affirms BB- ICR Amid Ongoing Parent Support
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit
rating on Bangladesh Digital Communications Ltd. and the 'BB-'
long-term issue rating on the Bangladesh-based telecom operator's
US$300 million senior unsecured notes.

S&P affirmed the rating on Banglalink because it expects ultimate
parent, VEON Ltd., to support the company's weakening liquidity.
This will be important if Banglalink is unable to raise funds
through local borrowings to refinance its US$300 million senior
unsecured notes due in May 2019.

Banglalink could receive potential parent support through
shareholder loans or via a proposed rights issue of US$624.7
million by its immediate parent Global Telecom Holding S.A.E.
(GTH). Pending shareholder's approval, Banglalink could use up to
US$300 million of the proceeds to meet its debt maturity.

In S&P's view, VEON (BB+/Stable/--) has adequate liquidity to
support Banglalink backed by healthy available cash from the sale
of its 50% stake in Wind Tre S.p.A. to CK Hutchinson Holdings Ltd.
in September 2018 and an undrawn US$1.7 billion revolving credit
facility as on Sept. 30, 2018.

S&P expects Banglalink to continue to benefit from management,
technical, and financial support from VEON. Banglalink's position
within the group is bolstered by cross default and debt
acceleration clauses in the senior notes that GTH issued. The
indenture considers Banglalink as a significant subsidiary. VEON
Holdings B.V., a wholly owned subsidiary of VEON, guarantees these
notes.

Emerging markets such as Bangladesh are important to VEON's group
strategy, in S&P's view. In February 2019, VEON submitted a
mandatory tender offer for an estimated US$600 million to acquire
the minority public stake (42.3%) in GTH, reiterating its interest
in emerging markets. This will be the group's third attempt over
the past three years to increase control over its assets in
Pakistan, Algeria, and Bangladesh that are held under GTH.

S&P believes Banglalink will not have enough internally generated
cash flows to repay the notes, given its weaker operating
performance and elevated capital spending for spectrum purchase and
rollout of 4G in 2018. Moreover, contrary to S&P's expectations,
the company availed only Bangladeshi taka (BDT) 13 billion of a
BDT29.3 billion syndicated term loan facility available to it. The
facility (with an option to increase the amount to BDT40 billion)
could have been sufficient for Banglalink to meet its capital
expenditure and refinancing needs. The availability period of the
facility expired in September 2018.

Banglalink's capital structure has deteriorated on account of
elevated leverage and foreign currency risks on outstanding debt.
Given the company's operations are limited to Bangladesh, its
foreign currency cash flows are negligible. Against this, almost
two-third of Banglalink's total outstanding debt (the senior notes)
comprises unhedged foreign currency borrowings.

S&P said, "Regulatory risks in markets such as Bangladesh remain
high, in our opinion. Banglalink's refinancing options could become
increasingly difficult, given the limited time available before the
May 2019 debt maturity. We expect the company to finalize its
refinancing plan before the end of March 2019.

"The stable outlook on Banglalink reflects our expectation that
VEON will extend necessary and timely financial support to the
company to meet its upcoming debt maturity. We expect Banglalink to
have a refinancing plan ready by the end of March 2019. We also
anticipate that the company will maintain its position in
Bangladesh's telecom market over the next 12 months despite intense
competition and limited pricing power."

The outlook on Banglalink also reflects the outlook on the
sovereign credit rating on Bangladesh.

S&P said, "We are likely to downgrade Banglalink if the company
fails to finalize its refinancing plan for the upcoming maturity by
the end of March 2019. We may also downgrade Banglalink if: (1) the
company's operating and financial performances deteriorate
significantly, such that the ratio of funds from operations (FFO)
to debt falls below 20% on a sustained basis; or (2) we lower the
sovereign credit rating on Bangladesh.

"In a remote scenario, we could raise the rating on Banglalink if:
(1) our assessment of the company's stand-alone credit profile
improves to 'bb-', possibly due to stronger operating and financial
performances than we expect, with enhanced liquidity; and (2) we
upgrade Bangladesh."




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

BEIJING ORIENT: Makes CNY30MM Interest Payment A Day Late
---------------------------------------------------------
Caixin Global reports that construction company Beijing Orient
Landscape & Environment Co. made a CNY30 million (US$4.15 million)
interest payment a day late on Feb. 13, rattling investors already
concerned about the financial health of China's corporate sector.

Caixin relates that the late payment is the latest "technical
default" that has added to the worries about China Inc.'s ability
to repay its debts amid a slew of corporate defaults around the
country.

Beijing Orient failed to make an interest payment due Tuesday on
CNY500 million in commercial paper issued in 2018, according to a
statement submitted to Shanghai Clearing House Co., Caixin relays.
The indebted company blamed the late payment on operational errors
by its staff. The payment was expected to go through on Feb. 13.

According to the report, Chinese bond investors refer to delayed
payments caused by issues such as money transfer errors as
"technical defaults."

The term differs from how it is used internationally, in which it
refers to issuers failing to uphold certain aspects of the legal
agreement between bond issuers and bond holders.

Beijing Orient had another CNY1.2 billion in short-term commercial
paper coming due on Feb. 23, Caixin says.

Caixin notes that the Beijing company isn't the first Chinese
company to suffer a technical default. In August, a
military-affiliated company in Northwest China's Xinjiang Uygur
autonomous region repaid a CNY500 million bond two days late,
citing technical problem with making the payment, Caixin recalls.
In late 2017, environment management company Elion Resources Group
Ltd. repaid its debt one day late and said the delay was due to
internal fund transfer errors, the report says.

Caixin relates that before the clearing house confirmed that the
CNY30 million interest payment had been made, bond investors were
wondering if the delay would trigger a cross-default on a CNY1
billion bond made by Beijing Orient. That bond is protected by a
credit risk mitigation warrants issued by Beijing-based China
Minsheng Bank. The warrants function like an insurance policy that
would have required the bank to compensate investors if the
cross-default had been triggered. That would have been the first
time ever that a credit risk mitigation warrant was triggered in
China.

Beijing Orient went public on the Shenzhen Stock Exchange in 2009.
It has primarily invested in public-private partnership (PPP)
projects. The company has expanded rapidly into PPP projects since
2015 and has the leverage ratio to prove it. Amid the wave of
corporate defaults in the first half of 2018, Beijing Orient
attempted to raise CNY1 billion through a bond issuance in May, but
only managed to meet 5% of its target.

Beijing Orient Landscape & Environment Co., Ltd., engages in the
construction of water resources, water landscape, and water
environment in the People's Republic of China. It also provides
water resource, water environment, and water landscape management
services.


EHI CAR SERVICES: S&P Alters Outlook to Negative & Affirms BB- ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on eHi Car Services Ltd. to
negative from stable. At the same time, S&P affirmed its 'BB-'
long-term issuer credit rating on eHi and its 'BB-' long-term issue
rating on its senior unsecured notes.

S&P said, "The outlook revision reflects our view that eHi's
liquidity buffer is narrowing with reducing covenant headroom as
the company expands its fleet. Moreover, we expect eHi to continue
to have significant bullet debt maturities even though near-term
refinancing risk is absent.

"We estimate that eHi has less than 15% covenant headroom as of
end-2018. The company refinanced its US$200 million notes that
matured in December 2018 with a syndicated loan. The new three-year
loan has lowered the imminent refinancing risk. However, the tight
debt covenant that the loan carries has reduced margin of error for
eHi's operational performance as the company continues with its
debt-funded expansion."

eHi's revised privatization plan is unlikely to significantly
change its operations or financial profile. On Feb. 19, 2019, the
company announced that the two rival buying groups will merge into
one consortium, and no additional debt would be incurred by eHi to
complete the transaction. The current controlling shareholders will
largely maintain their stakes and keep a strong influence on eHi's
strategies and cash flows. The transaction is subject to approvals
by shareholders and clearance by the U.S. Securities and Exchange
Commission. In S&P's base case, it assumes the transaction will go
through, given the buyout consortium's control of about 78% of
eHi's voting power.

S&P believes eHi will increasingly adopt program-car agreements to
achieve a younger and larger fleet without bearing additional asset
risks. Under the program-car agreement, car dealers agree to buy
back vehicles from eHi after one or two years at preset rates.
Program cars constituted about 80% of eHi's new vehicle
acquisitions in 2018 and around 60% of its fleet size. The
company's fleet was around 77,300 cars at the end of 2018, up from
64,946 cars in 2017, and 56,916 in 2016.

eHi has been able to directly sign some program-car agreements with
car dealers or auto original equipment manufacturers (OEMs) without
financial institutions providing credit. The company's exposure is
therefore recorded in account payables rather than as debt. Such
arrangement requires low initial cash outlay and provides eHi with
an alternate way to expand its fleet while maintaining covenant
headroom. Nonetheless, S&P views these obligations to support
long-lived assets as debt-like, with interest rates moderately
higher than the company's overall funding cost.

S&P said, "We expect eHi to maintain its fleet utilization rates
and pricing over the next 12-24 months. The company's revenue per
available car (RevPAC) for rental services was stable at Chinese
renminbi (RMB) 120-RMB135 over 2015-2017. RevPAC increased to
RMB137 in the first nine months of 2018, supported by healthy
utilization and stable average daily rental rate, despite the
company's aggressive growth strategy.

"We estimate eHi's EBIT interest coverage was 1.1x-1.3x in 2018,
and expect it to moderately improve in 2019. The company should be
able to increase its profit margin given the increased scale, which
could mitigate risks from rising debt. We expect eHi to add
10,000-12,000 cars in the coming 24 months. After netting off
disposals, eHi's annual capital expenditure will likely be RMB1
billion-RMB2 billion over the next two years.

"The negative outlook on eHi reflects our expectation that the
company is likely to face more challenges in liquidity management
over the next 12 months. eHi's tight covenant headroom and
aggressive debt-funded expansion could lead to more challenges in
managing funding alternatives or refinancing risks. We expect eHi's
EBIT margin to be 15%-25% and its EBIT interest coverage to be
1.3x-1.7x over the period.

"We may downgrade eHi if: (1) its liquidity profile deteriorates
further such that liquidity sources fail to maintain a reasonable
buffer over liquidity uses; or (2) we see evidence of ineffective
initiatives of managing covenant headroom or refinancing.

"We may also lower the rating if eHi's fleet utilization or pricing
declines, possibly due to rising competition in China's car rental
industry or more aggressive capital expenditure. This scenario
could result in the company's EBIT coverage dropping below 1.3x or
the ratio of funds from operations (FFO) to debt falling below 12%
on a prolonged basis.

"We may revise the outlook to stable if: (1) eHi's liquidity
sources accumulate sufficient buffer over 1.2x of liquidity uses on
a sustained basis; and (2) the company keeps sufficient covenant
headroom by effectively managing its operating performance or by
inviting new capital."


GUNAGZHOU R&F: Fitch Rates Proposed USD Senior 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 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, and are rated at the same level as Guangzhou
R&F's senior unsecured rating because the parent 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.

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 Fitch's 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-9
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.


KWG GROUP: Fitch Rates Proposed USD Senior Notes 'BB-(EXP)'
-----------------------------------------------------------
Fitch Ratings has assigned China-based KWG Group Holdings Limited's
(BB-/Stable) proposed US dollar senior notes a 'BB-(EXP)' expected
rating.

The proposed notes are rated at the same level as KWG's senior
unsecured rating because they will constitute its direct and senior
unsecured obligations. The final rating is subject to the receipt
of final documentation conforming to information already received.

KWG's ratings are supported by its established homebuilding
operations in the city of Guangzhou, strong brand recognition in
higher-tier cities across China, consistently high margin, strong
liquidity and healthy maturity profile. The ratings are constrained
by the small scale of the company's development and investment
property business as well as its higher leverage.

KEY RATING DRIVERS

Diverse Coverage: KWG's landbank is diversified across China's
Greater Bay Area, which includes Guangzhou, Foshan and Hong Kong,
as well as eastern and northern China. KWG ranked among the top-10
homebuilders by sales in Guangzhou, the capital of Guangdong
province, in 2017. The company had 20 million square metres (sqm)
of attributable land as at August 2018, spread across 39 cities in
mainland China and Hong Kong, which had an average cost of
CNY4,800/sqm (excluding Hong Kong) and was sufficient for four to
five years of development. KWG has a prudent approach when entering
new cities, conducting due diligence for around three years,
usually with one or two projects in partnership with reputable
local developers.

Strong Brand Name: KWG has established strong brand recognition in
its core cities by focusing on first-time buyers and upgraders. It
appeals to these segments by engaging international architects and
designers and setting high building standards. KWG's 2018 pre-sales
rose by 72% yoy to CNY65.5 billion after a 29% yoy increase in
2017, with the average selling price reaching CNY16,516/sqm (2017:
CNY16,819/sqm).

High Margin through Cycles: KWG's EBITDA margin has remained at
30%-35% through various business cycles and is one of the highest
among Chinese homebuilders. Protecting the margin is one of KWG's
key business objectives and is achieved by maintaining
higher-than-average selling prices through consistently
high-quality products. The company's experienced project teams also
ensure strong execution capability and strict cost control.

Moreover, KWG has a low unit land cost of 20%-25% of its average
selling price due to its strong foothold in Guangzhou, where land
prices have not increased as much as in other tier 1 cities. KWG's
EBITDA margin was at 34% in 2017 and we expect the margin to remain
above 35% in the next two years as the product mix improves.

Worsening Leverage: KWG's leverage on an attributable basis, as
measured by net debt/adjusted inventory, was around 36% in 1H18
(2017: 34%). We expect leverage to continue increasing gradually,
as it is correlated with KWG's contracted sales growth rate and
landbank replenishment strategy.

Joint Ventures with Leading Peers: KWG's prudent expansion strategy
has created a long record of partnerships with leading industry
peers, including Sun Hung Kai Properties Limited (A/Stable),
Hongkong Land Holdings Limited, Shimao Property Holdings Limited
(BBB-/Stable), China Vanke Co., Ltd. (BBB+/Stable), China Resources
Land Ltd (BBB+/Stable) and Guangzhou R&F Properties Co. Ltd.
(BB-/Negative). These partnerships helped KWG achieve lower project
financing costs, reduce competition in land bidding and improve
operational efficiency. Joint venture presales made up 52% of KWG's
total attributable presales in 2017 and 47% in 2016.

Joint venture cash flow is well-managed and investments in new
joint venture projects are mainly funded by excess cash from mature
joint ventures. Leverage is also lower at the joint-venture level
because land premiums are usually funded at the holding company
level and KWG pays construction costs only after cash is collected
from pre-sales.

DERIVATION SUMMARY

KWG's ratings are supported by its established homebuilding
operations in Guangzhou and strong higher-tier cities across China,
consistently high margin, strong liquidity and healthy maturity
profile. KWG has maintained one of the highest margins among
Chinese homebuilders throughout the cycle. Its 30%-35% EBITDA
margin is comparable with that of Yuzhou Properties Company Limited
(BB-/Stable) and Logan Property Holdings Company Limited
(BB-/Stable) and some investment-grade peers, such as Poly
Developments and Holdings Group Co., Ltd. (BBB+/Stable) and China
Jinmao Holdings Group Limited (BBB-/Stable), and is higher than
some 'BB' peers, including Future Land Development Holdings Limited
(BB/Stable) and CIFI Holdings (Group) Co. Ltd. (BB/Stable).

KWG's ratings are constrained by the small scale of its development
and investment property business as well as higher leverage,
following its high-cost land purchase. Fitch forecasts that KWG's
leverage, measured by net debt/adjusted inventory, reached 36% by
end-2018 (2017: 34%) due to high land premiums as the company
expands.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

  - EBITDA margin, excluding capitalised interest, to remain stable
at 33%-34% in 2018-2020

  - Land replenishment rate of 1.5x contracted sales gross floor
area (attributable) in 2018-2021 (2016-2017: 1.6x-2.1x)

  - Leverage to deteriorate to about 36%-38% for 2018-2019

RATING SENSITIVITIES

Developments that may individually or collectively, lead to
positive rating action include:

  - EBITDA margin sustained above 30%

  - Net debt/adjusted inventory sustained below 35%

Developments that may individually or collectively, lead to
negative rating action include:

  - EBITDA margin below 25% for a sustained period

  - Net debt/adjusted inventory above 45% for a sustained period

LIQUIDITY

Adequate Liquidity: KWG has well-established diversified funding
channels and strong relationships with most foreign, Hong Kong and
Chinese banks. KWG has strong access to both domestic and offshore
bond markets and was among the first few companies to issue panda
bonds. KWG had available cash of CNY42 billion in 1H18, including
restricted cash, which was enough to cover the repayment of its
CNY9 billion in short-term borrowing and outstanding land premiums.
Fitch expects the group to maintain sufficient liquidity to fund
development costs, land premium payments and debt obligations in
2018-2019 due to its diversified funding channels, healthy maturity
profile and flexible land acquisition strategy.


RONSHINE CHINA: Fitch Gives Final B+ Rating on USD600M Senior Notes
-------------------------------------------------------------------
Fitch Ratings has assigned Ronshine China Holdings Limited's
(B+/Stable) USD600 million 11.25% senior notes due 2021 a final
rating of 'B+' with a Recovery Rating of 'RR4'. The notes are
offered in exchange for the company's outstanding USD800 million
8.25% senior notes due 2021 and as new issuance. Ronshine intends
to use the net proceeds to refinance its existing debt. The notes
are rated at the same level as Ronshine's senior unsecured rating
because they are unconditionally and irrevocably guaranteed by the
company. The final rating is in line with the expected rating
assigned on February 8, 2019.

Ronshine's ratings reflect its high quality and diversified land
bank, which supported its fast contracted sales expansion in 2017
and 1H18. Its ratings are constrained by its sustained moderately
high leverage of just above 50%, as defined by net debt/adjusted
inventory. Fitch believes Ronshine will need to replenish its land
bank continuously at market prices to sustain its scale, which may
limit its ability to deleverage to below 45%, the level that will
trigger positive rating action.

KEY RATING DRIVERS

Faster Scale Expansion: Ronshine's total contracted sales increased
by 143% yoy to CNY122 billion in 2018. Proactive land acquisitions
in 2016 and 2017 have provided the company with CNY180 billion in
total saleable resources to achieve its total contracted sales
target of CNY120 billion (equivalent to Fitch's estimated
consolidated contracted sales of CNY84 billion in 2018). Ronshine's
focus on the Yangtze River Delta with exposure to cities that are
benefitting from spillover demand from top-tier cities was a key
driver for the company's strong sales growth.

High Quality, Diversified Land Bank: Ronshine's attributable land
bank increased slightly to 13.0 million square metres (sq m) by
end-June 2018, from 12.7 million sq m as of end-December 2017. Its
land-bank portfolio is well-diversified, covering 38 cities in
China with a focus on tier 1 and 2 cities, which accounted for 58%
of its land bank by area. Fitch believes Ronshine's diversified
land bank has mitigated the impact from tighter home-purchase
restrictions in many high-tier cities. The company entered new
cities in 2017, including Chengdu, Tianjin, Guangzhou, Chongqing,
Ningbo and Zhengzhou as well as lower-tiered Longyan, Putian,
Jinhua, Shaoxing and Quzhou. Ronshine also entered the Qingdao
market in 2018.

Margin Recovery: Ronshine's EBITDA margin, after adding back
capitalised interest in cost of goods sold (COGS), recovered to 29%
in 1H18, from 20% in 2017. The weak EBITDA in 2017 was due to the
revaluation of inventory to fair value following some acquisitions
during the year. Fitch expects the impact to diminish as the
company's scale expands. Ronshine's average land-bank cost was
CNY6,463 per sq m, which accounted for 30% of its contracted
average selling price in 1H18. Ronshine's land cost appears
reasonable in light of its high-quality land bank, which should
sustain its EBITDA margin at around 25%-30%.

Ratings Constrained Despite Lower Leverage: Ronshine's leverage,
measured by net debt/adjusted inventory including guaranteed debt
for its joint ventures (JVs) and associates, fell to 53.4% in 1H18,
from 56.6% at end-2017. Management expects to deleverage further as
the company's budget for land acquisition would have been lowered
to about 30% of contracted sales proceeds in 2018, from about 70%
in 2017; the company plans to keep the proportion at 30%-50%
through to 2020 to maintain its contracted sales scale. However,
Ronshine's leverage is likely to stay at about 50%, which is high
among 'B+' rated peers.

DERIVATION SUMMARY

Ronshine's consolidated contracted sales scale of about CNY80
billion per year and diversified land bank in China are equivalent
to 'BB-' rated homebuilders, such as Yuzhou Properties Company
Limited (BB-/Stable). However, Ronshine's leverage of 50%-55% is
much higher than that of 'BB-' rated peers, which usually have
leverage of below 45%.

Ronshine is well-positioned on scale and land-bank quality relative
to Guangdong Helenbergh Real Estate Group Co., Ltd. (B+/Stable),
but its leverage was higher than Helenbergh's 43% at end-2017. The
company has a similar scale to 'B' category peers, such as Yango
Group Co., Ltd. (B/Positive) and Zhenro Properties Group Limited
(B/Positive), although Ronshine's leverage is lower. Ronshine's
normalised EBITDA margin (adding back capitalised interest in COGS)
of about 20%-25% is comparable with that of Zhenro and Yango.

KEY ASSUMPTIONS

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

  - Total contracted sales of CNY122 billion in 2018 and CNY157
billion in 2019 (2018: CNY122 billion)

  - EBITDA margin, after adding back capitalised interest in COGS,
of 25%-30% in 2018-2020 (1H18: 29%)

  - Land acquisitions to account for 30% and 55% of contracted
sales proceeds in 2018 and 2019, respectively

Recovery Rating assumptions:

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

  - 10% administrative claims.

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

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


  - A 30% haircut on receivables, 40% haircut on investment
properties and 50% haircut on properties, plant and equipment.

  - Ronshine's large cash balance is adjusted so that cash in
excess of its three-month contracted sales is invested in new
inventories.

  - Based on its calculation of the adjusted liquidation value
after administrative claims, Fitch estimates the recovery rate of
the offshore senior unsecured debt to be 59%. Fitch has rated the
senior unsecured debt at 'B+'/RR4. Under Fitch's Country-Specific
Treatment of Recovery Ratings Criteria, China falls into Group D of
creditor friendliness and instrument ratings of issuers with assets
in this group are subject to a soft cap at the issuer's IDR.

RATING SENSITIVITIES

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

  - Leverage, measured by net debt/adjusted inventory including
guaranteed debt for its JVs/associates, sustained below 45% (1H18:
53%)

  - EBITDA margin, after adding back capitalised interest in COGS,
sustained at 25% or above (1H18: 29%)

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

  - Leverage, measured by net debt/adjusted inventory including
guaranteed debt for JVs/associates, above 55% for a sustained
period

  - EBITDA margin, after adding back capitalised interest in COGS,
below 20% for a sustained period

LIQUIDITY

Sufficient Liquidity: Ronshine had a cash balance of CNY20.3
billion at end-June 2018. It issued a total of USD375 million 8.25%
senior unsecured notes due 2021 in July and August 2018. The
company should have sufficient liquidity to refinance its
short-term debt of CNY21 billion.


YUZHOU PROPERTIES: Fitch Rates USD250MM Sr. Unsecured Notes 'BB-'
-----------------------------------------------------------------
Fitch Ratings has assigned Yuzhou Properties Company Limited's
(BB-/Stable) USD500 million 8.5% senior unsecured notes due 2024 a
final 'BB-' rating.

The notes are rated at the same level as Yuzhou's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. Yuzhou intends to use net proceeds from the issue to
primarily refinance existing debt. The final rating is in line with
the expected rating assigned on February 17, 2019 and follows the
receipt of final documentation conforming to information already
received.

Yuzhou's rating is supported by strong contracted sales growth and
regional diversification. The China-based company has a
good-quality low-cost land bank, which upholds its favourable
margin compared with peers. Yuzhou's active land acquisition will
increase contracted sales in the medium term, although it may have
driven leverage, as defined by net debt/adjusted inventory, above
40% by end-2018. Fitch believes leverage of 40%-45% is reasonable,
as the company's operating scale will be larger. Fitch's assessment
of Yuzhou's rating will depend on whether it can manage its
contracted sales growth without significantly impairing leverage
and margins.

KEY RATING DRIVERS

More Diversified Land Bank: Yuzhou continued to expand its land
bank outside the Yangtze River Delta and West Strait Economic Zone,
where it is well-established. The company had more than 110
projects spread across 17.3 million square metres of land bank in
25 cities as of June 2018. Contracted sales from the Greater Bay
area started in 2017 and Fitch expects some sales from central
China in the short term, as 5% of its land bank is located in
Wuhan.

Fitch believes Yuzhou's acquisition of seven projects from Coastal
Greenland Limited in August 2018 will enhance its geographical
diversification, as they include properties in three cities where
it does not yet operate; Beijing, Foshan and Shenyang. The
acquisition will also enable Yuzhou to expand into northern and
central China, as some projects are also located in Tianjin and
Wuhan.

Expansion Pressures Leverage: Fitch believes a rise in leverage, as
defined by net debt/adjusted inventory, to 40%-45% (end-2017:
around 40%) in the short-term would still be reasonable due to
Yuzhou's good-quality land purchases. Fitch expects Yuzhou to use
an average of 55% of its annual presale proceeds to acquire land.
The company remains in expansion mode and is increasing its
investment in joint ventures. Yuzhou's total contracted sales
increased by 38.9% to CNY56.0 billion in 2018, 9% higher than
Fitch's estimate, after rising 73.7% to CNY40.3 billion in 2017.
Total contracted sales in January 2019 grew by 2% yoy to CNY2.8
billion, mainly driven by an increase in the average selling price.


Slowing Land Acquisitions: Fitch expects Yuzhou to reduce its land
bank life to three to four years, from nearly five years at
end-2016 and four years at end-2017, as it better utilises its
resources to control leverage. The company spent 35% of its
attributable contracted sales, totalling CNY5.7 billion, on land
bank acquisitions in 1H18 and management expected to spend no more
than CNY25.0 billion on land acquisitions in 2018. Yuzhou spent 49%
of its attributable contracted sales on land purchases in 2017,
compared with 86% in 2016.

Better-than-Peer Margin: Yuzhou is cautious about cost control amid
its national expansion. Fitch expects its 2018 land acquisition
costs to have remained below 50% of contracted sales, partly due to
the low average land cost it paid for the acquisition of seven
projects from Coastal Greenland. Fitch expects its land cost to
remain at around 30% of its average selling price and forecast an
EBITDA margin of around 28%-31%, which is high relative to that of
'BB-' category peers. Its strong margin stems from good-quality
land purchases, with 70% of its land bank in tier 1 and 2 cities,
and low selling, general and administrative expenses.

DERIVATION SUMMARY

CIFI Holdings (Group) Co. Ltd. (BB/Stable) is Yuzhou's closest peer
in terms geography, as both companies focus on the Yangtze River
Delta region, although Yuzhou is also strongly positioned in the
West Strait Economic Zone and has less exposure to the Bohai Rim
region. CIFI has higher attributable contracted sales and lower
leverage, which explains the one notch rating difference against
Yuzhou. CIFI has higher sales efficiency than Yuzhou, but a lower
EBITDA margin.

In terms of scale, Times China Holdings Limited (BB-/Stable), which
is focussed in the Greater Bay area, had a similar level of 2017
attributable contracted sales as Yuzhou, at around CNY30 billion.
Times China has adopted a faster churn strategy and thus its EBITDA
margin is lower than that of Yuzhou, as is its leverage.

KWG Group Holdings Limited (BB-/Stable) has marginally smaller
attributable contracted sales than Yuzhou. KWG's focus is in
Guangzhou, although both companies have some exposure to Suzhou,
Shanghai and Tianjin. KWG has a slower churn model than Yuzhou,
which explains its slightly higher EBITDA margin. KWG's leverage is
rising towards the level of Yuzhou.

KEY ASSUMPTIONS

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

  - Consolidated contracted sales at CNY37 billion-59 billion a
year in 2018-2021 (2017: CNY29 billion)

  - Contracted average selling price to drop by 15% in 2018 then
rise by 5% each year in 2019-2021 (2017: 33% rise)

  - Contracted gross floor area sold to rise by 50% in 2018 and
then 10% on average in 2019-2021 (2017: 30% rise)

  - Land acquisition costs to account for 48%-58% of total
contracted sales in 2018-2021 (2017: 49%)

  - Land costs to fall by 20% in 2018 and rise with inflation by 3%
per year in 2019-2021 (2017: 31% fall)

RATING SENSITIVITIES

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

  - Attributable contracted sales sustained above CNY30 billion
(2017: CNY30.3 billion)

  - Proportionally consolidated net debt/adjusted inventory
sustained below 40% (2017: 39.7%)

  - Proportionally consolidated contracted sales/gross debt
sustained above 1.2x (2017: 1.0x)

  - EBITDA margin sustained above 25% (2017: 33.7%)

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

  - Proportionally consolidated net debt/adjusted inventory above
45% for a sustained period

  - Proportionally consolidated contracted sales/gross debt below
1.0x for a sustained period

  - EBITDA margin below 20% for a sustained period

LIQUIDITY

Healthy Liquidity: Yuzhou has a healthy liquidity position. It had
unrestricted cash of CNY16 billion and uncommitted undrawn
facilities of CNY12 billion at end-2017, which was enough to cover
short-term debt of CNY17 billion and support its planned expansion.
Of the short-term debt, CNY10 billion was puttable corporate bonds,
with 20% due in 2018, 50% in 2019 and 30% in 2020.

Yuzhou stepped up the coupon rate for the puttable bonds in 2017
and 2018, and thus did not need to repay most of the principal due
during that period. Management is confident bondholders will agree
to accept a similar increase in the coupon rate in 2019 in return
for a deferment on principal repayment. The company has diversified
funding channels to ensure sustainable liquidity; besides bank
loans, it has established channels for onshore and offshore bond
issuance as well as equity placements.

In January 2019, Yuzhou issued USD500 million of 8.625% three-year
senior notes and USD500 million of 8.500% four-year senior notes.
In 2018, it issued USD375 million of 6.375% and USD625 million of
7.900% senior notes, both due in 2021. Its onshore bond issuance
included CNY1.0 billion at 7.850% on 28 August 2018 as well as
CNY1.2 billion at 7.800% and CNY0.8 billion at 7.850% on 21
September 2018. The company also issued CNY591 million in
supplier-chain asset-backed securities (ABS) in October 2018. In
January 2019, it issued CNY276 million supplier-chain ABS and
CNY712 million in ABS backed by account receivables from the
balance of property management fees.


YUZHOU PROPERTIES: Moody's Rates Proposed Sr. Sec. USD Notes 'B1'
-----------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to Yuzhou
Properties Company Limited's proposed senior unsecured USD notes.

The rating outlook is stable.

Yuzhou plans to use the proceeds from the proposed notes mainly to
refinance its existing indebtedness.

RATINGS RATIONALE

"The proposed bond issuance will support Yuzhou's liquidity profile
and lengthen its debt maturity profile while it will not materially
affect its credit metrics, because the company will use the
proceeds mainly to refinance existing debt," says Celine Yang, a
Moody's Assistant Vice President and Analyst.

Moody's forecasts that Yuzhou's leverage, as measured by
revenue/adjusted debt, will gradually recover to around 63% - 68%
during 2019-2020 from around 50% for the 12 months ended June 2018,
driven by likely stronger growth in revenue and the company's
controlled growth of its debt in 2019 and 2020.

The expected strong growth in revenue is based on its stronger
contracted sales over the last two years that will likely be
recognized as revenue in the next 12-18 months. Yuzhou's contracted
sales grew notably by 39% to RMB56 billion in 2018 and slightly by
2% to RMB2.8 billion year-over-year in January 2019.

Yuzhou has maintained a good track record of high profit margins in
the 31%-36% range during the past five years (2013-2017). Moody's
expects that the company's gross margin will likely remain at
31%-33% over the next one to two years, because it had maintained
its average land cost of around RMB5,000 per square meters as of
June 2018, similar to the levels recorded since 2016.

As a result, its adjusted EBIT/interest should remain strong at
3.8x-4.1x in 2019 compared with around 3.8x for the 12 months ended
June 2018.

Yuzhou's Ba3 corporate family rating reflects its (1) track record
of developing and selling residential properties, (2) growing
operating scale and improved geographic diversification, (3) high
profitability and interest coverage, and (4) strong liquidity.

However, its credit profile is constrained by high debt leverage
— as measured by revenue/debt — for its Ba3 rating level.

The B1 senior unsecured debt rating is one notch lower than the
corporate family rating due to structural subordination risk.

This risk reflects the fact that the majority of claims are at its
operating subsidiaries and have priority over its senior unsecured
claims in a bankruptcy scenario.

In addition, the holding company lacks significant mitigating
factors for structural subordination. As a result, the likely
recovery rate for claims at the holding company will be lower.

The stable outlook on Yuzhou's ratings reflects Moody's expectation
that the company will maintain its contracted sales and revenue
growth, high gross margins, strong liquidity position and measured
growth in debt.

Upward ratings pressure over the medium term could emerge if Yuzhou
(1) grows in scale, (2) improves its credit metrics, (3) maintains
a strong liquidity position, or (4) establishes a track record of
access to the domestic and offshore debt markets.

Credit metrics indicative of upward ratings pressure include the
company showing (1) EBIT/interest coverage in excess of 4.0x, or
(2) revenue/adjusted debt in excess of 90%.

Downward ratings pressure could emerge if Yuzhou shows a weakening
in its contracted sales growth, liquidity position, profit margins
or credit metrics.

Credit metrics indicative of downward ratings pressure include (1)
cash/short-term debt below 1.5x, (2) EBIT/interest coverage below
2.5x-3.0x, and (3) revenue/adjusted debt below 60% on a sustained
basis.

The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.

Yuzhou Properties Company Limited is a property developer that
focuses on residential housing in the West Strait Economic Zone and
the Yangtze River Delta. Established in Xiamen in the mid-1990s,
Yuzhou is one of the city's largest developers. The company moved
its headquarters to Shanghai in 2016.

At 30 June 2018, Yuzhou had a land bank of around 17.25 million
square meters in total saleable gross floor area.

Yuzhou listed on the Hong Kong Stock Exchange in 2009. The company
had a market capitalization of HKD18.1 billion at 15 February 2019,
and its chairman, Mr. Lam Lung On, owned a 56.71% stake in the
company as of the same date.




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

A1 PAPERS: CARE Assigns B- Rating to INR7.66cr Bank Loans
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of A1
Papers Private Limited (APP), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term bank
   Facilities          7.66        CARE B-; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of APP is constrained by
its short track record of operations, limited experience of
promoters in the packaging industry, small scale of operations
along with net loss, high gearing and weak debt coverage
indicators. The rating is also constrained by weak liquidity
position, susceptibility of margins to fluctuations in raw material
prices and presence in a highly fragmented and competitive
industry. The rating, however, derives strength from positive long
term outlook for packaging industry.

Going forward, the ability of the company to profitably scale up
its operations while improving its overall solvency position and
efficiently managing its working capital requirements would remain
its key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Limited experience of promoters in the packaging industry: APP is
currently being managed by Mr. Simranjot Singh Sethi and Ms. Ayana
Sethi. Mr. Simranjot Singh Sethi has an experience of around eight
years in the trading and manufacturing of corrugated boxes through
his association with APP and various regional entities. Also, Ms.
Ayana Sethi has industry experience of around two years gained
through her association with APP. Her past work experience is of
three years as a HR manager gained by being associated with a MNC.
Moreover, the directors are supported by a team of experienced and
qualified management having varied experience in the field of
technical, finance and marketing aspects of business.

Short track record and Small scale of operations along with net
loss in FY18: Owing to short track record of operations, the
company's scale of operations has remained small marked by total
operating income (TOI) of INR5.68 crore in FY18. Further, the
company's GCA was relatively low at INR0.20 crore for FY18. Also,
the net worth base stood low at INR1.34 crore in as on March 31,
2018. The small scale limits the company's financial flexibility in
times of stress and deprives it from scale benefits. Furthermore,
the company reported total operating income of INR10.00 crore in
Q3FY19 (Provisional). The PBILDT margin of APP stood moderate at
18.23% in FY18. However, the company incurred net loss of INR0.09
crore in FY18 owing to high interest and depreciation costs due to
initial period of operations.

High gearing and weak debt coverage indicators: The capital
structure of the APP stood leveraged with overall gearing ratio of
5.76x as on March 31, 2018 mainly on account of company's high
reliance on bank borrowings to fund capex for the setting up of
unit coupled with low net worth base of the company. Further, the
debt coverage indicators of the company stood weak marked by
interest coverage ratio of 1.24x in FY18 and total debt to GCA of
38.75x for FY18.

Weak liquidity position: The liquidity position of the company
stood weak marked by current ratio of 1.30x and quick ratio of
0.95x as on March 31, 2018. The company had free cash and bank
balance of INR0.24 crore as on March 31, 2018. The operations of
the company are working capital intensive in nature. The operating
cycle of the company stood elongated at 127 days for FY18. APP is
required to maintain adequate inventory of raw material for smooth
production process as well as maintain inventory of finished goods
to meet bulk demand of its customers which resulted in average
inventory period of 55 days for FY18. Furthermore, the company
offers a credit period of around two-three months to its customers
resulting in average collection period of 103 days for FY18.
However, it receives a credit period of around one month from its
suppliers. The average utilization of cash credit limit remained at
80% for the past 12 months period ended December, 2018.

Susceptibility of margins to fluctuations in raw material prices:
Raw-material costs is the major cost for APP whereby there has been
significant volatility in prices of kraft paper which is further
dependent upon paper pulp prices. Accordingly, profitability of
packaging material producers is highly susceptible to raw material
prices due to limited bargaining power with their customers.

Presence in a highly fragmented and competitive industry: Packaging
industry in India is highly fragmented in nature. According to
industry estimates, there are more than 22,000 registered packaging
companies in India of which more than 85% are small and medium
units. The organized sector in India accounts for about 70% of the
volumes, while, the balance is highly fragmented and distributed
resulting in a highly competitive environment. Therefore, APP
operates in a competitive segment of the packaging industry which
is affected from low profitability due to highly fragmented
industry, high raw material prices, low entry barriers, presence of
large number of unorganized players with capacity additions by
existing players as well as new entrants.

Key Rating Strengths

Positive long term outlook for packaging industry: The consumption
of industrial packaging material is closely aligned to the
manufacturing growth. As the government is taking several steps to
boost the contribution of manufacturing to GDP, the demand for
industrial packaging is likely to grow in the future. Greater
thrust on industrialisation, rising income levels and the improving
demography are factors influencing positive outlook for the
industrial packaging industry.

A1 Papers Private Limited (APP) was incorporated as a private
limited company in December, 1989. The company is currently being
looked after by Mr. Simranjot Singh Sethi and Ms. Ayana Sethi. APP
was incorporated with an aim to set up a manufacturing facility at
Ludhiana, Punjab for manufacturing of corrugated boxes with an
installed capacity of manufacturing 6240 tonne of corrugated boxes
per annum as on December 31, 2018. The company manufactures
corrugated boxes of different sizes which finds application in
packaging industry. The commercial operations of the company
commenced in April, 2017.


ACCORD UDYOG: CARE Lowers Rating on INR8cr LT Loan to B
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Accord Udyog Private Limited (AUPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank      8.00        CARE B; Stable; Issuer not
   Facilities                      cooperating; Revised from
                                   CARE B+; Stable based on
                                   best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from AUPL to monitor the ratings
vide letters/e-mails communications dated October 12, 2018, October
26, 2018, November 19, 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 ratings on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at fair ratings. The rating on
company's bank facilities will now be denoted as CARE B; Stable;
ISSUER NOT COOPERATING. Further, banker could not be contacted.

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

The ratings take into account as constitution as a susceptibility
to fluctuation in traded products price, working capital intensive
nature of operation and intensely competitive industry. The rating,
however, continue to draw comfort from its experienced promoters
with long track record of operations.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters with long track record of operations: AUPL
started its operations from 2009. Thus, it has long operational
track record. Furthermore, the promoters Mr. Avinash Singh having
more than a decade of experience in this line of business, looks
after the day to day operations of the company. He is supported by
other promoter Mrs. Jyoti Singh, also has a decade experience along
with a team of experienced professional.

Comfortable capital structure with moderate debt coverage
indicators: The capital structure of AUPL remained comfortable
marked by nil debt equity ratio and overall gearing ratio of 1.08x
as on March 31, 2017. The debt protection metrics of the company
also remained moderate marked by interest coverage of 2.37x and
total debt to GCA of 7.29x in FY17. The interest coverage improved
in FY17 due to higher increase in PBILDT level vis-a-vis interest
expenses. Furthermore, total debt to GCA also improved, though
high, due to high gross cash accruals level as on March 31, 2017.

Key Rating Weaknesses

Small scale of operations with low profitability: The scale of
operations of AUPL remained small marked by total operating income
of INR28.70 crore with a PAT of INR0.57 crore in FY17. The
profitability margins of the company remained low marked by PBILDT
margin of 6.62% and PAT margin of 2.00% in FY17 mainly due to its
trading nature of business. However, the PBILDT margin improved in
FY17 on account of better operating efficiency. Further, the PAT
margin also improved in FY17 on account of higher increase in
PBILDT level vis-à-vis increase in capital charges.

Susceptibility to fluctuation in traded products price: The prices
of traded goods (i.e. iron & steel) are highly volatile. The cost
of traded goods constitutes major cost driver for the company which
accounts for around 88% of the total cost of sales. Accordingly,
any volatility in the prices of the traded goods is likely to have
an impact on the profitability of the company.

Working capital intensive nature of operation: The operations of
the company remained working capital intensive in nature marked by
its high collection period. The company allows around three to four
months credit to its customers whereas it pays upfront to its
suppliers for availing cash discounts.

Intensely competitive industry: Trading industry is a very
fragmented and competitive space with presence of huge small
players operating in the same region due to low capital
requirement. In such a competitive scenario smaller companies like
AUPL in general are more vulnerable on account of its limited
pricing flexibility.

Incorporated in December 2009, Accord Udyog Private Limited (AUPL)
was promoted by Mr. Avinash Singh and Mrs. Jyoti Singh. The company
has been engaged in trading of channels, pipes, angles, plates,
chequer plates, galvanised plain and corrugated sheets,
thermo-mechanically treated bars, bars, and other such products
majorly in the states of Jharkhand, Orissa and West Bengal.

Liquidity
The liquidity position of the company remained moderate marked by
current ratio and quick ratios of 1.69x and 1.29x, respectively, as
on March 31, 2017. The Gross cash accruals also remained at INR1.09
crore in FY17.


ADILABAD EXPRESSWAY: CARE Moves D Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Adilabad
Expressway Private Limited (AEPL) to Issuer Not Cooperating
category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank      268.88      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from Adilabad Expressway Private
Limited to monitor the rating vide e-mail communications dated Dec.
31, 2018, Jan. 3, 2019, Jan. 7, 2019, Jan. 8, 2019, Jan. 9, 2019,
Jan. 10, 2019, Jan. 14, 2019, Jan. 16, 2019 and numerous phone
calls. However, despite CARE's repeated requests, Adilabad
Expressway Private Limited 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 Adilabad
Expressway Private Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

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

The ratings take into account delay in debt servicing due to
stretched liquidity position of the company.
Detailed description of the key rating drivers

Key rating weakness

Delays in repayment of debt obligations: AEPL is eligible for
semi-annual annuity from National Highway Authority of India
(NHAI), each in May and November of every year. However, due to
delay in first cycle of Major Maintenance works, NHAI withheld
portion of semi-annual annuity which was due during May, 2018
resulting in liquidity issues for the company. Consequently, there
were delays in debt servicing.

Non-creation of DSRA and MMRA: The company does not maintain DSRA
and MMRA as the same is not stipulated in the CLA. The same has
strained the cash flows of the company in the year of major
maintenance and also resulted in delay in repayment of debt
obligations.

Operations & maintenance risk: AEPL is mandated to operate and
maintain the road as per specifications set out in the CA,
non-compliance of which could result in penalties being levied by
NHAI. The routine maintenance & operations is carried out by Soma
Enterprises Limited (SEL).

Key rating strengths

Operational annuity-based road project providing stability of the
cash flow: The project is an operational annuity based project and
is thus not exposed to any traffic risk. AEPL is eligible for
semi-annual annuities.

Adilabad Expressway Private Limited (AEPL) is a special purpose
vehicle (SPV) promoted by Soma Enterprise Limited (SEL) (88.70%
holding) for the design, construction, development, finance,
operation and maintenance of a 55 km road stretch on NH-7 on a
build, operate and transfer (BOT) Annuity basis. The scope of work
involves developing the 55 km road stretch to four lane divided
carriageway standards including strengthening of the existing two
lane road. The project is located in Andhra Pradesh (close to the
AP Maharashtra border) and is part of the North-South Corridor of
National Highways Development Project (NHDP) - Phase 2. The
concession term is 20 years starting from November 2007 (including
a two year construction period). Against a scheduled commercial
operation date (COD) of November 2009, the project had achieved
provisional COD for the complete stretch in June 2010. AEPL is
entitled to an annuity of INR 62.96 crore payable semi-annually. On
account of the delayed commissioning, the project cost increased by
INR48.02 crore which has been funded by the short term debt of
INR24 crore and balance by means of unsecured loans from Soma
Enterprise Limited (SEL). SEL's subsidiary Soma Tollways Pvt Ltd
(STL) which currently holds 67% in AEPL plans to acquire entire
stake in AEPL in July 2016 which is pending Shareholder's and NHAI
approval. Furthermore, J.P Morgan, which has acquired 26% stake in
STL shall act as a strategic investor for AEPL.


ALP MILK: CRISIL Reaffirms 'B+' Ratings on INR19cr Loans
--------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of ALP Milk Foods Private Limited (ALP).

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

   Proposed Long Term
   Bank Loan Facility     3.5      CRISIL B+/Stable (Reaffirmed)

   Term Loan              7.5      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the company's modest scale of
operations and susceptibility of operating margin to fluctuations
in raw material prices. These weaknesses are partially offset by
the extensive experience of its promoters in the dairy industry and
moderate financial risk profile.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations: With topline of INR48.4 crore in
fiscal 2018, scale remains small and limits bargaining power with
suppliers and customers.

* Susceptibility of operating margin to volatility in raw material
prices Profitability remains exposed to fluctuations in raw milk
prices. Moreover, prices of ghee and skimmed milk powder often do
not increase in tandem with rise in raw milk prices. Additionally,
promoters' focus on establishing their brand requires them to give
aggressive discounts, which is likely to constrain profitability.
As the milk market is dominated by established brands such as
Mother Dairy and Amul, ALP is likely to be a price follower and
keep its prices more competitive to push sales.

Strengths:

* Experience of promoters in the agriculture industry: Key
promoter, Mr Rajeev Kumar, entered the milk products business
because of his experience of around three decades in the
agriculture industry and established relationship with farmers
through group companies.

* Moderately working capital intensive operations: Operations are
moderately working capital intensive marked by the gross current
assets of 86 days, supported by debtor of 20 days and driven by
high inventory of 64 days in fiscal 2018 due to high inventory
during end of fiscal as the company derives seasonal cost advantage
of the raw material i.e. milk.

Liquidity
Liquidity is adequate, reflected in expected net cash accrual of
INR1.41 crore against debt obligation of INR0.43 crore in fiscal
2019. Bank limit of INR8 crore was utilised by 46% during the 12
months ended November 2018. Liquidity is also supported by expected
unsecured loans of around INR11.42 crore from promoters. These
loans do not carry interest.

Outlook: Stable

CRISIL believes ALP will benefit from the extensive experience of
its promoters. The outlook may be revised to 'Positive' in case of
healthy growth in revenue and profitability, while sustaining
working capital cycle. The outlook may be revised to 'Negative' if
decline in revenue or profitability or larger-than-expected,
debt-funded capital expenditure adversely affects financial risk
profile.

Incorporated in December 2012 and promoted by Mr Rajeev Kumar, ALP
processes milk and milk products such as ghee and skimmed milk
powder under its Maa Anjani brand. Facility is in Firozabad, Uttar
Pradesh. Operations are managed by Mr Rajeev Kumar.


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

The instrument-wise rating actions are:

-- INR130 mil. Fund-based limit migrated to non-cooperating
     category with IND BB+ (ISSUER NOT COOPERATING) rating; and

-- INR80 mil. Non-fund-based limit migrated to non-cooperating
     category with IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 16, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Anand Construwell has been executing civil works, road works, water
supply projects and underground drainage work for the state
government bodies, mainly in Nashik, since 1996. It was started as
a partnership firm and was converted into a private limited company
in 1996.


ANOUSHKA HOSPITAL: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Anoushka Hospital Consultancy & Management Services
        Private Limited
        3, Ashirwad, 51, Vallabh Nagar
        N.S. Road-2 JVPD, Vile Parle West
        Mumbai 400056 IN

Insolvency Commencement Date: January 15, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 14, 2019
                               (180 days from commencement)

Insolvency professional: VinodKumar Pukhraj Ambavat

Interim Resolution
Professional:            VinodKumar Pukhraj Ambavat
                         Room No. 40, 9/15 Morarji Velji Bldg.
                         1st Floor, Dr M.B. Velkar Street
                         Kalbadevi Road, Mumbai
                         Maharashtra 400002
                         E-mail: vinod.ambavat@ajallp.com

                            - and -

                         D511 Kanakia Zillion
                         Junction of LBS Road and CST Road
                         BKC Annexe, Kurla West
                         Mumbai 400070
                         E-mail: irp.anoushka@gmail.com

Last date for
submission of claims:    February 11, 2019


ASAHI INDUSTRIES: Insolvency Resolution Process Case Summary
------------------------------------------------------------
Debtor: M/s Asahi Industries Limited

        Registered office:
        Ecomax, Musrane, Tal. Wada
        Thane, Maharashtra 421312 India

        Corporate office:
        Raghuvanshi Mills Compound
        11/12, Senapati Bapat Marg
        Mumbai, Maharashtra 400013, India   

Insolvency Commencement Date: January 21, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 20, 2019
                               (180 days from commencement)

Insolvency professional: Mr. Ankur Kumar

Interim Resolution
Professional:            Mr. Ankur Kumar
                         Office No. 18, 10th Floor
                         Pinnacle Corporate Park, G-Block
                         Bandra Kurla Complex, Bandra (E)
                         Mumbai 400051
                         E-mail: ankur.srivastava@ezylaws.com

Last date for
submission of claims:    February 4, 2019


BIVAB DEVELOPERS: CRISIL Migrates B Rating from Not Cooperating
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Bivab Developers Private
Limited (BDPL) to CRISIL B/Stable Issuer Not Cooperating'. However,
the 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 ABC from ' CRISIL B/Stable Issuer not Cooperating' to
'CRISIL B/Stable' and has reassigned its 'CRISIL A4' rating to the
short term bank facilities.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Overdraft           3.33      CRISIL A4 (Reassigned)

   Term Loan           1.67      CRISIL B/Stable (Migrated from
                                 'CRISIL B/Stable ISSUER NOT
                                 COOPERATING')

The rating continues to reflect the exposure to cyclicality
inherent in the real estate sector and risks related to
implementation of its ongoing project, which can affect
saleability, and hence, operating cash flows. These rating
weaknesses are partially offset by the extensive experience of the
promoters, favourable location of the ongoing project, and the
long-term nature of existing lease rental agreements.

Key Rating Drivers & Detailed Description

Weakness

* Risks associated with its ongoing projects: BDPL is undertaking
development of one  residential complexes in Bhubaneshwar. The
projects have estimated cost of INR9.85 crores. CRISIL believes
that BDPl's operating performance will remain susceptible to timely
completion of the project and flow of advances from customers.

* Vulnerability to cyclicality inherent in the Indian real estate
industry: The real estate sector in India is cyclical and affected
by volatile prices, opaque transactions, and a highly fragmented
market structure. Hence the business risk profile will remain
susceptible to risks arising from any industry slowdown.

Strength

* Promoters extensive experience in the real estate business: The
promoter has about 20 years of experience in real estate
development. The promoter, over the years have demonstrated
successful project implementation track record.

Liquidity
The liquidity risk profile of the company has remained stretched on
account of fully utilized overdraft limit of INR4.90 crore, further
the timely execution of the projects is entirely dependent on the
flow of customer advances also the company's cash and bank balances
remained modest at INR0.34 crore as on March 2018.

Outlook: Stable

CRISIL believes that BDPL will continue to benefit over the medium
term from its partners' extensive industry experience. The outlook
may be revised to 'Positive' in case of better than-expected
bookings of units and receipt of customer advances, leading to
higher-than expected cash inflows. Conversely, the outlook may be
revised to 'Negative' in case of time or cost overrun in relation
to the new projects or in the event of slower than expected ramp up
in customer bookings leading to lower than expected cash inflows
and deterioration in financial risk profile and liquidity.

BDPL was formed in 1997 by Mr. Binay Krishna Das and his wife Mrs.
Eva Pattanaik in Orissa. The company is in real estate business and
is engaged in developing and constructing residential buildings.


C.T. ENGINEERING: CRISIL Reaffirms 'B' Rating on INR0.5cr Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on
the bank facilities of C.T. Engineering Polymers Private Limited
(CTEPL).

                        Amount
   Facilities        (INR Crore)   Ratings
   ----------        -----------   -------
   Cash Credit            .5       CRISIL B/Stable (Reaffirmed)

   Letter of Credit     14.5       CRISIL A4 (Reaffirmed)

The rating reflects the company's weak financial risk profile and
large working capital requirement. These rating weaknesses are
partially offset by CTEPL's diversified product and customer base
and the financial support it receives from the promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: The gearing was high at 9.24 times
as on March 31, 2018. The debt protection metrics were weak, with
interest coverage and net cash accrual to total debt ratios at 1.3
times and 0.01 time, respectively, for fiscal 2018.

* Working capital-intensive operations: Operations are working
capital intensive, with gross current assets of 292 days as on
March 31, 2018. This is because of considerable credit provided to
customers and the high margin money required against the letter of
credit facility.

Strengths

* Diversified product and customer base: Expansion in product
portfolio and customer base should continue to strengthen business
risk profile over the medium term.

* Financial support from the promoters: The promoters have extended
INR3.72 crore as unsecured loans as on March 31, 2018 to support
the business. The loans carry low rates of interest.

Liquidity
Liquidity should remain adequate over the medium term. Cash accrual
is expected around INR9.42 lakh in fiscal 2019, and should
adequately cover maturing debt of INR1.67 lakh. Cash credit of
INR50 lakh, however, has been fully utilised. The promoters may
continue to extend unsecured loans to support operations whenever
necessary as in the past.

Outlook: Stable

CRISIL believes CTEPL will continue to benefit over the medium term
from the promoters' experience. The outlook may be revised to
'Positive' if improvement in profitability and cash accrual
strengthens financial risk profile. Conversely, the outlook may be
revised to 'Negative' if low operating margin, a sizeable capital
expenditure, or stretch in working capital cycle weakens the
financial risk profile.

Incorporated in 2017, CTEPL is a private limited company promoted
by Mr Rishub Jain and his brother, Mr Abhishek Jain. The company
trades in polymers such as polyvinyl chloride resin, high- and
low-density poly ethylene, and poly propylene. CTEPL is based in
Delhi. The company imports traded goods from Korea, Thailand, USA
and China for sale in India. Commercial operations started in June
2017.


COGENT STEEL: CARE Lowers Rating on INR14.7cr LT Loan to B
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Cogent Steel and Pipes Private Limited (CSPPL), as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long term Bank       14.70      CARE B; Stable; Issuer not
   Facilities                      cooperating; Revised from
                                   CARE B+; Stable on the basis
                                   of best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from CSPPL to monitor the rating
vide email communications/letters dated November 8, 2018,
January 3, 2019, January 10, 2019, January 14, 2019 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
rating. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on CSPPL's bank facilities will now be denoted
as CARE B; ISSUER NOT COOPERATING. Further, the banker could not be
contacted.

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

The rating takes into account its nascent stage of operation,
volatility in raw material prices and highly competitive and
fragmented nature of the industry. The rating, however, derives
strength from its experienced promoters with locational advantage.

Detailed description of the key rating drivers

Key Rating Weaknesses

Nascent stage of operation: The company started its commercial
operation from September 2017, thus having very nascent stage of
operation.  However, the company has already earned INR37.08 crore
till January 2018.

Volatility in raw material prices: CSP does not have any backward
integration for its basic raw material (MS Billet) for producing
products like MS pipes, strip etc. and would be required to
purchase the same from open market. The finished goods as well as
raw material prices of steel products are volatile in nature. Even
though raw material prices move in tandem with finished goods
prices, it does the same with a time lag. Since, raw material is
the major cost driver, any southward movement of finished goods
price with no decline in raw material price result in adverse
performance of the company.

Highly competitive and fragmented industry: The spectrum of the
steel industry in which the company operates is highly fragmented
and competitive marked by the presence of numerous players in
northern and eastern India. Hence the players in the industry do
not have pricing power and are exposed to competition induced
pressures on profitability. This apart, CSP's products being steel
related, it is subjected to the risks associated with the industry
like cyclicality and price volatility.

Key Rating Strengths

Experienced promoters with locational advantage: CSP is currently
managed by Mr. Sanjay Kumar Bansal, Managing Director, along with
other six directors. All the directors are having over a decade of
experience in similar line of business. This apart, CSP plant is
located at Rourkela in Odisha, which is also in proximity to the
steel and mining areas of Odisha, West Bengal and Jharkhand. Hence,
its presence in the steel and mining region results in benefits
derived from a lower logistic expenditure (both on transportation
and storage), easy availability and procurement of raw materials at
effective prices.

Cogent Steel and Pipes Private Limited (CSP) was incorporated
during September 2015 to initiate an iron and steel products
manufacturing business. After incorporation the company started to
set up a manufacturing unit at Sundargarh, Odisha with an installed
capacity of 28,800 MTPA and the same has completed during August
2017 with a project cost of INR12.95 crore. The commercial
operation has started from September 2017. The day-to-day affairs
of the company are looked after by Mr. Sanjay Kumar Bansal,
Managing Director, along with other six directors and a team of
experienced personnel.


DIVYA SHREE: CARE Reaffirms B+ Rating on INR9.97cr LT Loan
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Divya Shree Industries (DSI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank
   Facilities           9.97       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of DSI is constrained by
its partnership nature of constitution, limited experience of
partners and short track record of operations, volatility in the
prices of raw materials, highly fragmented and competitive nature
of industry, cyclicality inherent to the aluminum industry and
working capital intensive nature of operation However, the
aforesaid constraints are partially offset by its growing scale of
operations along with moderate profitability and high growth
prospect of the industry.

Going forward, ability to increase its scale of operation and
profitability margins and ability to manage working capital
effectively are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Partnership nature of constitution: Divya Shree Industries, being a
partnership firm, is exposed to inherent risk of partner's capital
being withdrawn at time of personal contingency and firm being
dissolved upon the death/retirement/insolvency of the partners.
Moreover, partnership firms have restricted access to external
borrowing as credit worthiness of partners would be the key factors
affecting credit decision for the lenders.

Limited experience of partners & short track record of the
operations: Established in 2012, Divya Shree Industries has been
engaged in the business of manufacturing of aluminium profiles &
billets. The partners do not have any prior experience in the same
line of business. The management's experience is limited coupled
with the firm's short track record of operations.

Volatility in the prices of raw materials: The prices of raw
materials, especially metals like aluminum ingots required for the
manufacturing of automobile and household appliances, are volatile
in nature. The firm sources the same from the local suppliers and
it does not have any long term supply arrangement with them. Any
adverse movement in the raw material prices would adversely affect
the profitability of the firm.

Highly fragmented and competitive nature of the industry: Divya
Shree Industries is operating in a competitive industry marked by
the presence of a large number of players in the organized sector.
In addition to the competition in domestic market, the firm also
faces competition from imports. Furthermore, the industry is
characterized by low technological inputs and standardized
machinery for the production. Thus, going forward, this gives an
opportunity to mid-size players in the unorganized segment to enter
into the industry which would further intensify the competition for
the firm.

Cyclicality inherent to the aluminum industry: The aluminum
industry is sensitive to the shifting business cycles, including
changes in the general economy, interest rates and seasonal changes
in the demand and supply conditions in the market. Apart from the
demand side fluctuations, the highly capital intensive nature of
aluminum projects along-with the inordinate delays in the
completion hinders the responsiveness of supply side to demand
movements. This results in several aluminum projects bunching-up
and coming on stream simultaneously leading to demand supply
mismatch.

Working capital intensive nature of operation: The average fund
based working capital utilization remained relatively high at about
95% during last twelve month ending on December, 2018.

Key Rating Strengths

Growing scale of operations along with moderate profitability:
The total operating income of the firm has been growing
significantly over the last three financial years. The total
operating income of the firm (TOI) increased from INR15.95 crore in
FY16 to INR24.56 crore in FY17 and further to INR 26.58 crore in
FY18 primarily on account of increase in the revenue from existing
customers in addition of new customers owing to accelerated demand
for aluminum profiles in the market. Further, the turnover of the
firm increased significantly during 9MFY19 and reached INR 39.64
crore due to the increase in installed capacity from June 2018.

High growth prospects of the industry: Power & Construction sector
in India has emerged as the largest end user sectors for aluminum
profiles and billets. The government's thrust on power &
construction sector & strong investment sentiment in India will be
a strong demand driver of aluminum in India.

Divya Shree Industries, established in February 2012, was promoted
by Agarwal family of Raipur to set up an aluminum profile and
billets manufacturing business. The manufacturing facility is
located at industrial area Rawabhata, Raipur. Since its inception,
Divya Shree Industries has been engaged in manufacturing of
aluminum profiles & billets. The commercial operation has been
started from March 2014 with an installed capacity of around 5100
MTPA. Further, the firm has undertaken a project expansion of 6900
MTPA which have stated operation from June, 2018.
The day to day affairs of the firm are looked after by Mr. Mukesh
Agarwal, with adequate support from other partners and a team of
experienced personnel.

Liquidity
The liquidity position of the company remained moderate marked by
current ratio and quick ratios of 1.40x and 0.96x as on March 31,
2018. The cash and bank balance amounting to INR0.39 crore remained
outstanding as on March 31, 2018. The Gross cash accruals of the
company remained moderate at INR0.98 crore in FY18.


DURGA AUTOMART: CARE Moves B+ on INR10cr Debt to Not Cooperating
----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Durga
Automart (DA) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       10.00      CARE B+; Stable; Issuer not
   Facilities                      cooperating; based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from DA to monitor the ratings
vide letters/e-mails communications dated October 12, 2018, October
26, 2018, November 16, 2018 and January 24, 2019 and numerous phone
calls. However, despite CARE's repeated requests, the entity has
not provided the requisite information for monitoring the ratings.
In line with the extant SEBI guidelines, CARE has reviewed the
ratings on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at fair
ratings. The rating on Durga Automart's bank facilities will now be
denoted as CARE B+; Stable; ISSUER NOT COOPERATING.

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

The rating assigned to the bank facilities of Durga Automart (DA)
is constrained by its partnership nature of constitution, short
track record with small scale of operations, risk of non-renewal of
dealership agreement, intense competition in the auto dealership
industry and working capital intensive nature of operation.
However, the aforesaid constraints are partially offset by its
experienced partners, locational advantages, authorized dealership
of TATA Motors Limited and integrated nature of business.

The ability of the firm to improve its scale of operations along
with profitability margins and efficient management of working
capital are the key rating sensitivities.

Detailed description of the key rating drivers

At the time of last rating in February 28, 2018 the following were
the rating strengths and weaknesses:

Key Rating Weaknesses

Partnership nature of constitution: Durga Automart, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Furthermore, partnership firms have restricted access to
external borrowing as credit worthiness of partners would be the
key factors affecting credit decision for the lenders.

Short track record with small scale of operations: The firm was
established in the year 2015, however the firm has started
commercial production from December 2016 and thus has short track
record of operations. The firm has reported total operating income
of INR9.32 crore with a net loss of INR0.59 crore in FY17. This
apart, the firm has achieved INR35.96 crore in 10MFY18.
Furthermore, the capital base was also low at INR1.62 crore as on
March 31, 2017. The small size restricts the financial flexibility
of the firm in times of stress and deprives it from benefits of
economies of scale.

Risk of non-renewal of dealership agreement: The firm has entered
into a dealership agreement with TATA Motors Limited in December
2016. The dealership agreement with TATA Motors Limited is subject
to renewal from time to time. Furthermore, the agreements may get
terminated at any time on violation of certain clauses. The
aforesaid risk is mitigated to a certain extent as the scale of
operations of the firm is increasing year on year and the
dealership agreement has been renewed in the past.

Intense competition in the auto dealership industry: The automobile
industry is very competitive on the back of the presence of a large
number of players dealing with similar products. Moreover, in order
to capture the market share, the auto dealers offer better buying
terms like providing credit period or allowing discounts on the
purchase. Such discounts offered to the customers create a margin
pressure and negatively impact the earning capacity of the firm.

Working capital intensive nature of operation: The business of
automobile dealership is having inherent high working capital
intensity due to high inventory holding period. The firm has to
maintain the fixed level of inventory for display and to guard
itself against supply shortages. Furthermore, TATA Motors limited
having its association, demands payment in advance, resulting in
higher working capital requirements. Accordingly, the average fund
based working capital utilisation remained high at 90% during the
last 12 months ended December, 2018.

Key Rating Strengths

Experienced partners along with satisfactory track record of
operations: Mr. Manish Kumar (aged 46 years) having around two
decades of experience in the automobile industry. He looks after
the overall management of the firm, with adequate support from
other partners and a team of experienced personnel.

Locational Advantage: The showroom of the firm is strategically
located at NH-34 which runs from Uttarkhand to Madhya Pradesh and
connects many states. Currently, the firm has one showroom located
at Malda. Apart from the firm also have customer sales points at
Raiganj, Islampur, and Balurghat. The firm also have a container
workshop at Patiranpur, Dakshin Dinajpur. All the sales points are
strategically located and will help in attracting customers in near
future.

Authorised dealer of TATA Motors Limited: DA enjoys the leverage of
being an authorized dealer of TML, since December 2016. ).
Currently, the firm has one showroom located at Malda. Apart from
that the firm also has customer sales points at Raiganj, Islampur,
and Balurghat. The firm also have a container workshop at
Patiranpur, Dakshin Dinajpur. TML has been one of market leaders in
the commercial vehicle segment for decades and has a wide &
established distribution network of sales and service centres
across India, providing it a competitive advantage over its peers.

Integrated nature of business: The firm operates through its
workshop to provide after sales service and deals in original
accessories & spare parts apart from selling commercial vehicles by
virtue of being a '3-S' (Sales, Services and Spare parts) dealer of
TATA Motors Limited. Owning authorized service centre helps the
firm to tap a larger client base who prefers to purchase commercial
vehicles from dealers having own authorized service centre to avoid
hassles in case of breakdown and requirement of service.

Durga Automart (DA), was established in the year 2015, however,
started its operation from December 2016 is a Malda based entity,
promoted by the Chitlangia family. Durga Automart (DA) is an
authorized dealer for TATA Motors Limited (TML) for commercial
vehicle with its main showroom located at Naldubi, Dist- Malda
(West Bengal). Currently, the firm has one showroom located at
Malda. Apart from that the firm also has customer sales points at
Raiganj, Islampur, and Balurghat. The firm also have a container
workshop at Patiranpur, Dakshin Dinajpur.

Mr. Manish Kumar (aged 46 years) having around two decades of
experience in the automobile industry. He looks after the overall
management of the firm, with adequate support from other partners
and a team of experienced personnel.


GOLDEN RETREATS: CARE Reaffirms B+ Rating on INR8.35cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Golden Retreats Private Limited (GRPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities            8.35      CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of GRPL is constrained
by its project implementation risk, seasonality associated with
hotel industry, highly competitive and fragmented nature of the
industry and capital intensive nature of operation. However, the
aforesaid constraints are partially offset by its experienced
promoters and locational advantage of the hotel.

The ability of the company to complete the project without any cost
& time overrun, ability to achieve the projected scale of
operations and profitability as envisaged and ability to manage
working capital effectively would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Project implementation risk: GRPL is engaged in the construction of
four star hotel in Murshidabad, West Bengal with an aggregate
project cost of INR14.45 crore, which is proposed to be financed by
way of promoter's contribution of INR6.35 crore and term loan of
INR8.10 crore. The company has already invested INR2.95 crore
towards land & site development, building etc. till December, 2018
which is met entirely through promoter's contribution of INR 1.86
crore, unsecured loan from promoters amounting to INR0.55 crore and
term loan amounting to INR0.54 crore. The project is expected to be
operational from July, 2019.

Seasonality associated with hotel industry: The demand for hotel
and hospitality sector has direct relation to the overall health of
economy. The Indian hotel industry normally experiences high demand
during April to November month, mainly on account of summer
vacations and marriage season in the state. However, this trend is
seeing a change over the recent few years. Hotels have introduced
various offerings to improve performance (occupancy) during the
lean months. These include targeting the conferencing segment and
offering lucrative packages during the lean period.

Highly competitive and fragmented nature of the industry: The
Indian hotel industry is highly fragmented in nature with presence
of large number of organized and unorganized players spread across
various regions. Further, the hotel industry is region-based and is
highly sensitive to the untoward events such as slowdown in the
economy coupled with the slew of militant attacks which have had an
adverse impact on the hotel industry. Cyclical nature of the hotel
industry and increasing competition from already established
hospitality addresses in and around Murshidabad district may impact
the performance of GRPL.

Capital intensive nature of operation: The hospitality business is
extremely capital intensive in nature as a very high amount of
investment is required to get the requisite infrastructure in
place.

Key Rating Strengths

Experienced promoters: Mr. Debosree Das, Mr. Himadri Das and Mr.
Niladri Das are the directors of GRPL and looks after the overall
management of the company. They all are having more than two
decades of experience in the hotel industry and are ably supported
by a team of experienced professional who has rich experience in
the same line of business.

Locational advantage of the hotel: The proposed hotel is
strategically located having access to all forms of logistics
thereby enhancing its acceptability amongst the likely clientele of
the hotel. The Murshidabad district, being centrally located in the
state capital, and one of main tourism as well as business
destination of the state of West Bengal, is well connected by road.
The surrounding areas are renowned for natural beauty, which
leading to envisaged regular occupancy by the business, as well as,
leisure travelers.

Incorporated in March 2010, Golden Retreats Private Limited is
engaged in setting up a four star hotel in Murshidabad, West
Bengal. The proposed hotel will be spread over 0.52 acre, and is
expected to comprise of 45 furnished rooms (i.e. presidential
suite, super deluxe room and deluxe room), restaurants, spa,
Conference Hall, Swimming Pool, mini-theatre etc. The project is
estimated to be set up at a cost of INR14.45 crore, which is
proposed to be financed by way of promoter's contribution of
INR6.35 crore and term loan of INR8.10 crore. The company has
already invested INR2.95 crore towards land & site development,
building etc. till December, 2018 which is met entirely through
promoter's contribution of INR 1.86 crore, unsecured loan from
promoters amounting to INR0.55 crore and term loan amounting to
INR0.54 crore. The project is expected to be operational from July,
2019.

Mr. Debosree Das (aged, 72 years), having more than two decades of
experience in the hotel industry, looks after the day to day
operations of the company. He is supported by other directors Mr.
Himadri Das (aged, 45 years) and Mr. Niladri Das (aged, 48 years)
and a team of experienced professionals.

Liquidity
The company is still in project stage and expected to commence
operation from July 2019.


IL&FS: ED Probes Alleged Financial Irregularities
-------------------------------------------------
The Hindu reports that the Enforcement Directorate has registered a
money laundering case to probe alleged financial irregularities in
the Infrastructure Leasing and Financial Services (IL&FS).

The agency is conducting searches at six locations in the National
Capital Region and Mumbai, the report says.

The Hindu relates that the ED has registered the case based on a
First Information Report (FIR) lodged by the Economic Offences Wing
of the Delhi Police.

According to the report, the police are investigating the
allegations made by Ashish Begwani, a director with Enso
Infrastructures. As alleged, the then directors of IL&FS
Transportation Networks had approached him in mid-2010, with a
business proposal.

Accordingly, Enso Infrastructures invested Rs.170 crore for taking
over 15% shares of IL&FS Rail Limited, a Special Purpose Vehicle
floated for the Gurgaon Metro project. However, the company later
found out that the funds were allegedly being diverted.

It was also alleged that IL&FS Rail issued bogus contract works to
inflate its expenses, the report says.

Infrastructure Leasing & Financial Services Limited (IL&FS)
operates as an infrastructure development and finance company in
India. It focuses on the development and commercialization of
infrastructure projects, and creation of value added financial
services. The company operates in Financial Services,
Infrastructure Services, and Others segments. Its Financial
Services segment engages in the commercialization of
infrastructure; investment banking, including corporate finance,
advisory, capital market, and other financial services; and
securities trading, venture capital, and trusteeship operations.

As reported in the Troubled Company Reporter-Asia Pacific on Oct.
3, 2018, the Indian Express said that the government on Oct. 1
stepped in to take control of crisis-ridden IL&FS by moving the
National Company Law Tribunal (NCLT) to supersede and reconstitute
the board of the firm which has defaulted on a series of its debt
payments. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.


INDERA ETHNICS: CARE Reaffirms B Rating on INR5cr LT Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Indera Ethnics and Designs Private Limited (IEDPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term bank
   Facilities           5.00       CARE B; Stable Reaffirmed

   Short term bank
   Facilities           0.50       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of IEDPL are
constrained by its small scale of operations with moderate profit
margins, working capital intensive nature of business, leveraged
capital structure with moderate debt coverage indicators and
intensely competitive nature of the industry with presence of many
unorganized players. The aforesaid constraints are partially offset
by its experienced promoters with long track record of operations.

Going forward, the ability of the company to increase its scale of
operations with improvement in profit margins and ability to manage
working capital effectively will be the key ratings sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low profit margins: The total
operating income witnessed growth during FY18 vis-à-vis FY17 on
account of higher demand of its product. However, the overall scale
of operations remained small marked by total operating income of
INR12.14 crore (FY17: INR11.35 crore) with a PAT of INR0.07 crore
(FY17: INR0.03 crore) during FY18. IEDPL has achieved turnover of
around INR10.00 crore during 9MFY19. Furthermore, the profitability
margins of the company remained low marked by PBILDT margin of
8.33% (FY17:10.10%) and PAT margin of 0.60% (FY17: 0.28%) during
FY18. Moreover, the PBILDT margin deteriorated during FY18 due to
increase in cost of operations. However, the PAT margin also
marginally improved due to low capital charges during FY18.

High inventory period leading to high working capital intensive
nature of operations: The operations of the company remained
working capital intensive in nature marked by high inventory
period. The average inventory period was around 440 to 409 days
during last three years due to a large quantity of readymade
garments for display as well as for meeting its customer's demand.
The operating cycle marginally improved to 290 days in FY18 as
against 294 days in FY17 on account of marginally improvement in
inventory period. Moreover, the average utilization of cash credit
limit was around at 95% during the last twelve months ending
December 31, 2018.

Leveraged capital structure with weak debt coverage indicators: The
capital structure has deteriorated as on March 31, 2018 due to
higher utilisation of working capital bank barrowings. However, the
same remained leveraged marked by overall gearing ratio of 2.86x
(2.55x as on March 31, 2017) as on March 31, 2018. The debt
coverage indicators also remained weak marked by interest coverage
of 1.39x (FY17:1.37x) and total debt to GCA of 29.01x (FY17:
24.72x) in FY18. Marginally improvement in interest coverage was on
account of decrease in interest expense level during FY18.
Moreover, the total debt to GCA deteriorated in FY18 due to high
debt level as on balance sheet date.

Intensely competitive nature of the industry with presence of many
unorganized players: Retail trading business is highly fragmented
and competitive due to presence of many players operating in this
sector owing to its low entry barriers, due to low capital and
technological requirements. High competition restricts the pricing
flexibility of the industry participants and has a negative bearing
on the profitability.

Key Rating Strengths

Experienced promoters with long track record of operations: IEDPL
is into apparel retailing business since 2005 and thus has more
than a decade of track record of operations. Being in the same line
of business since long period, the promoters have established their
brand presence in the market and the company is deriving benefits
out of this. Mr. Manjit Singh (aged, 58 years) has more than three
decades of experience in the same line of business looks after the
day to day operations of the company supported by Mr. Bishen Singh
and Mr. Navpreet Singh who also have an average experience of
around a decade in same line of business.

Incorporated in April 2005, Indera Ethnics and Designs Private
Limited (IEDPL) was promoted by the Singh family of Rourkela,
Odisha. The company is into retailing of sarees (mill made &
handloom cloth), readymade garments (men, women & kids), hosiery
goods, optical jewellery, artificial jewellery, plastic items,
linens & accessories for door mats, table covers and cushion covers
along with tailoring services through its showrooms. The company
presently operates through 2 showroom located at Rourkela, Odisha
completely owned by it under the name 'Indera Textiles'. The
company deals in both branded and non-branded readymade apparels.

Liquidity position
The liquidity position of the company was moderate marked by
current ratio of 1.38x and quick ratio of 0.08x as on March 31,
2018. The company has cash and bank balance amounting to INR0.24
crore as on March 31, 2018. The company has reported gross cash
accrual of INR0.26 crore in FY18. The average utilization of fund
based limit was around 95% during last 12 month ended on December
31, 2018.


JAGANNATH RICE: Ind-Ra Hikes Rating on INR125.5MM Loan to BB
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Jagannath Rice
Mill's (JRM) Long-Term Issuer Rating to 'IND BB' from 'IND BB-'.
The Outlook is Stable.

The instrument-wise rating action is:

-- INR125.5 mil. Fund-based working capital limit upgraded with
     IND BB/Stable rating.

KEY RATING DRIVERS

The upgrade reflects an improvement in JRM's revenue to INR1,014
million in FY18 (FY17: INR881 million) due to an enhancement of its
milling capacity to 300MT/day from 250MT/day.

However, the scale of operations remains medium. Also, JRM's credit
metrics continue to be at moderate levels. In FY18, interest
coverage (operating EBITDA/gross interest expense) was stable at
1.6x (FY17: 1.6x) because the negative impact of an increase in
interest cost due to a rise in debt levels was offset by the
increase in operating EBITDA to INR30 million (FY17: INR25.7
million). However, net financial leverage (adjusted net
debt/operating EBITDAR) slightly deteriorated to 5.5x in FY18
(FY17: 5.1x).

Moreover, EBITDA margins were average at 3% in FY18 (FY17: 2.9%),
due to competition, with ROCE of 13%.

The ratings factor in the company's tight liquidity position, as
indicated by its an average 97.4% utilization of the working
capital limits during the 12 months ended January 2019. Also, the
cash flow from operations was negative INR28.6 million in FY18
(FY17: INR33.52 million) with cash and cash equivalent amounting to
INR5.46 million (INR3.87 million). The net working capital is long
and increased to 58 days in FY18 (FY17: 45 days), due to higher
inventory and debtor days, whereas the creditors days also improved
to 17 days (6 days).

The ratings, however, are supported by JRM's promoters' experience
of more than three decades in the flour milling industry.

RATING SENSITIVITIES

Negative: A sustained decline in the revenue and credit metrics
will lead to a negative rating action.

Positive: A sustained improvement in the revenue and credit metrics
could lead to a positive rating action.

COMPANY PROFILE

JRM is one of the oldest roller flour mills in Bhubaneswar, Odisha.
Founded in 1972, it operates as a partnership firm. The unit sells
its products under the brand Rishta Foods, which is a part of the
JRG Group.


JSW STEEL: Moody's Alters Outlook on Ba2 CFR to Positive
--------------------------------------------------------
Moody's Investors Service has changed the outlook on JSW Steel
Limited's ratings to positive from stable.

Moody's has also affirmed JSW's Ba2 corporate family rating (CFR)
and the Ba2 rating on the company's senior unsecured notes.

RATINGS RATIONALE

"The positive outlook reflects the improving trajectory of JSW's
credit metrics principally due to its competitive and efficient
production costs, solid domestic demand conditions and our
expectation for a supportive ongoing price environment," says
Kaustubh Chaubal, a Moody's Vice President and Senior Credit
Officer.

"The positive outlook also incorporates our expectation that the
company will remain selective in any acquisitions, funding them
with a prudent mix of debt and equity. We expect that any such
acquisitions will be earnings accretive and help in rapid
deleveraging, leading to at most only a temporary spike in adjusted
debt/EBITDA leverage," adds Chaubal, who is also Moody's Lead
Analyst for JSW.

JSW's CFR continues to reflect the company's large scale and strong
position in its key operating markets, as well as its strong
product offering with a rising share of high-margin value-added
products catering to key diverse end-markets, such as the
automotive and domestic construction and infrastructure sectors.

The CFR also reflects the inherent cyclicality of the steel
industry and JSW's limited raw material integration, although this
risk will be somewhat mitigated following the commissioning of its
five iron ore mines, which once operational will meet up to 15% of
its total iron ore requirements.

"JSW's use of advanced technology towards maximizing raw material
efficiencies -- such as blending varied grades of coking coal in
manufacturing coke and its beneficiation plant to convert lower
grade iron ore into higher grade variants -- underpins its
competitive conversion costs and high profitability," says
Chaubal.

Moody's expects India's steel consumption to grow at around
5.5%-6.0% annually over the next one to two years, supported by the
country's strong domestic demand, in turn propelled by the
government of India's (Baa2 stable) spending on infrastructure
projects and good prospects in the automotive industry. At the same
time, consolidation in India's steel sector and limited new
capacity commissioning over the 18-24 months will keep industry
utilization levels in check and help pricing discipline.

In Moody's view, India's rising steel demand, JSW's wide slate of
long and flat products, and its increasing proportion of
value-added products will help preserve its market share, currently
around 15.6% by steel volumes.

JSW's cost of production is among the lowest when compared with
other leading Asian steel companies, and supports EBITDA and EBITA
margins of 22% and 26% respectively. The company's EBITDA/ton has
consistently improved over the last year and remained above
INR12,000, the highest level in 10 years.

Moody's expects JSW's adjusted debt/EBITDA at March 2019 to remain
flat to March 2018 level of 2.6x. Based on sustainable EBITDA/ton
of INR9,500, Moody's estimates the company's leverage will reach
around 2.8x-3.2x in the fiscal year ending March 2020, comfortably
below its upgrade trigger for a Ba1 CFR.

Large capital expenditure of about INR150 billion annually will
keep JSW's free cash flow generation negative for the next two to
three years, which it plans to fund through long-term debt.

Moody's expects JSW to successfully refinance its maiden $500 bond
falling due in November 2019 (2019 notes) in a timely manner. The
2019 notes constitute only 8% of the company's total debt. If the
company fails to refinance this maturity at least six months ahead
of the scheduled maturity, this will pressure the rating.

Moody's would consider upgrading the ratings if the company
maintains adjusted debt/EBITDA less than 3.5x and EBIT/interest in
excess of 3.0x.

A downgrade of the ratings is unlikely in the near term, given the
positive ratings outlook. Nevertheless, a sharp shift in industry
conditions that triggers declining sales volumes and dents pricing
and profitability would pressure the ratings. Specific metrics
indicative of downward rating pressure include adjusted debt/EBITDA
in excess of 4.0x, EBIT/interest coverage below 2.0x and EBIT
margins below 12%.

Downward rating pressure could also build if the company undertakes
a large debt-financed acquisition without an immediate and
meaningful counterbalancing effect on earnings, thus resulting in a
sustained increase in leverage. Execution risks related to the
timely and seamless integration of the acquired business could also
pressure the ratings.

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

JSW Steel Limited is a leading manufacturer of a wide range of
steel products in India. It has an installed steelmaking capacity
of 18 million tonnes per annum, and is one of India's largest steel
producers.


KHAITAN PAPER: CRISIL Reaffirms 'B+' Ratings on INR6cr Loans
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facilities of Khaitan Paper and Packaging Private
Limited (KPPL).

                         Amount
   Facilities         (INR Crore)   Ratings
   ----------         -----------   -------
   Cash Credit             2        CRISIL B+/Stable (Reaffirmed)
   Proposed Term Loan      0.4      CRISIL B+/Stable (Reaffirmed)
   Term Loan               3.6      CRISIL B+/Stable (Reaffirmed)

The rating reflects the company's small scale of operations and
stretched liquidity. These weaknesses are partially offset by the
extensive experience of the promoters.

Key Rating Drivers & Detailed Description

Weakness

* Small scale of operations: Scale of operations continues to be
small. Revenue declined to INR9.60 crore in fiscal 2018, from
INR10.63 crore the previous fiscal, owing to slowdown in demand.

* Stretched liquidity: Liquidity remains stretched, as indicated by
the high utilisation of bank limit. However, although net cash
accrual is inadequate for debt servicing, support from the
promoters will, likely, continue to support liquidity as and when
needed.

Strengths

* Extensive experience of the promoter: The key promoter, Mr
Shankar Lal Gupta has experience of more than two decades in the
packaging industry and healthy relationships with suppliers and
notable clients.

Liquidity
Cash accrual, expected around INR0.51 crore in fiscal 2019, will be
inadequate to service maturing debt - of around INR0.80 crore.
However, unsecured loans from the promoters should make up for the
shortfall. Current ratio was moderate at 1.16 times as of March
2018.

Outlook: Stable

CRISIL expects KPPL to continue to benefit from the promoters'
extensive experience and healthy relationships with customers. The
outlook may be revised to 'Positive' if efficient working capital
management and ramp-up in scale of operations and profitability
strengthen financial risk profile, particularly liquidity. The
outlook may be revised to 'Negative' if low cash accrual, large
capital expenditure, or sizeable working capital requirement
constrains liquidity.

Incorporated in June 1991, KPPL started commercial operations in
1995. It manufactures corrugated boxes for packaging. The
manufacturing unit in Kolkata operates at 75% of its capacity. Mr
Shankar Lal Gupta is the promoter.


KUNJ ROLLER: Ind-Ra Affirms BB+ Rating on INR160MM Loan
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Kunj Roller Flour
Mills Pvt Ltd.' (KRFM) Long-Term Issuer Rating at 'IND BB+'. The
Outlook is Stable.

The instrument-wise rating action is:

-- INR160 mil. (increased from INR135 mil.) Fund-based working
     capital limit affirmed with IND BB+/Stable rating.

KEY RATING DRIVERS

The affirmation reflects KRFM's continued medium scale of
operations. The revenue grew to INR1,095 million in FY18 (FY17:
INR932 million), driven by an increase in orders from old and
existing customers.

The ratings factor in KRFM's moderate credit metrics due to the
modest EBITDA margins, as the company faces intense competition in
the market. The interest coverage (operating EBITDA/gross interest
expense) was stable at 1.7x in FY18 (FY17: 1.7x), but the net
leverage (adjusted net debt/operating EBITDAR) deteriorated to 7.3x
(6.7x) due to an enhancement in the short-term working capital. The
EBITDA margin stood at 2.4% in FY18 (FY17: 2.3%) with RoCE of 8%
(7%).

The ratings are constrained by KRFM's tight liquidity position, as
indicated by 94.8% average utilization of its fund-based limits for
the 12 months ended December 2018. Its cash flow from operations
was a negative INR33.38 million in FY18 (FY17: negative INR40.05
million), with cash and cash equivalent of INR0.51 million
(FY17:INR1.25 million). Also, the company's net working capital
cycle lengthened to 63 days in FY18 (FY17: 53 days) due to an
increase in inventory days and debtor days.

The ratings, however, are supported by the promoters' experience of
around three decades in the flour milling business.

RATING SENSITIVITIES

Negative: A decline in the operating profitability, leading to
deterioration in the credit metrics, all on a sustained basis, will
be negative for the ratings.

Positive: A substantial improvement in the scale of operations and
credit metrics, on a sustained basis, would be positive for the
ratings.

COMPANY PROFILE

Incorporated on May 7, 1997, KRFM operates a flour mill. The
company sells flour in the eastern part of India under the Rishta
Food brand. It began commercial production on April 1, 2000.

LAHOTY BROTHERS: Ind-Ra Affirms BB+ Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Lahoty Brothers
Private Limited's (LBPL) Long-Term Issuer Rating at 'IND BB+'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR75 mil. Fund-based limits affirmed with IND BB+/Stable  
     rating; and

-- INR110 mil. Non-fund-based limits affirmed with IND A4+
     rating.

KEY RATING DRIVERS

The affirmation continues to reflect LBPL's modest credit profile
in FY18. During the period, LBPL's revenue was INR1,458 million
(FY17: INR1,316 million), interest coverage (operating EBITDA
/gross interest expenses) was 1.4x (1.3x) and net leverage (net
debt/operating EBITDA) was 3.7x (6.0x). In addition, LBPL's EBITDA
margin was 1.5% in FY18 (FY17: 1.4%) and return on capital employed
was 11% (9%).

Revenue growth was driven by an increase in the sales of coal and
petroleum products, which led to better absorption of fixed costs,
leading to an improvement in the EBITDA margin Meanwhile, the
improvement in the leverage was driven by a rise in EBITDA and a
decline in debt, along with a high cash balance maintained at
year-end.

The ratings, however, are supported by LBPL's comfortable liquidity
position, indicated by an average maximum bank loan limit use of
84.7% for the 12 months ended December 2018. Its cash flow from
operations improved to INR42 million in FY18 from negative INR7
million in FY17, driven by the rise in profitability and an
improvement in the net cash cycle to 24 days from 33 days. The
improved net cash cycle was driven by a rise in payable days to 54
in FY18 from 38 in FY17. LBPL had a cash balance of INR35 million
at FYE18 (FYE17: INR16 million).

The ratings continue to be supported by the promoter's experience
of over three decades in the trading business and the company's
association with reputed brands such as Orient Electric Limited (a
division of Orient Paper and Industries Limited) and Osram India
Private Limited.

RATING SENSITIVITIES

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

Positive: Any substantial improvement in the revenue, profitability
and credit metrics will be positive for the ratings.

COMPANY PROFILE

Incorporated in 1943, LBPL is engaged in various trading activities
such as product distribution for Orient Electric and Osram India in
Assam, and commodity trading of raw jute. It also operates six
petrol pumps in Assam.

The firm is managed by Vijay Singh Sarda, Arvind Jatia, Savita
Lahoty, and Sangeeta Jatia.


MAA BHUASUNI: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Maa Bhuasuni
Roller Flour Mills' (MBRFM) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable.

The instrument-wise rating actions are:

-- INR120 mil. (increased from INR90 mil.) Fund-based working
     capital limit affirmed with IND BB/Stable rating; and

-- INR28.8 mil. (reduced from INR40 mil.) Long-term loans due on
     June 2024 affirmed with IND BB/Stable rating.

KEY RATING DRIVERS

The affirmation reflects an improvement in MBRFM's operating and
credit profile in line with Ind-Ra's expectations. However, the
scale of operations remains small, operating margins modest, and
credit profile weak to moderate, due to the highly fragmented and
commoditized nature of the flour milling business.

Revenue was INR566 million in FY18 (FY17: INR375 million), EBITDA
margins were 4.8% (4.6%) with ROCE of 11%, interest coverage
(operating EBITDA/gross interest expense) was 1.7x (1.3x) and net
leverage ratio (adjusted net debt/operating EBITDAR) was 4.2x
(6.0x). Revenue and margins improved due to increased demand from
potential customers and improvement in crop prices. The credit
metrics improved due to scheduled repayment of term loans and an
increase in absolute operating EBITDA to INR27.09 million (INR17.23
million). According to interim financials for 10MFY18, MBRFM booked
revenue of INR579.3 million.

The ratings are constrained by the company's tight liquidity
position, as indicated by its average 98.6% use of the fund-based
limit during the 12 months ended December 2018. This was despite
net working capital cycle shortening to 59 days in FY18 (FY17: 84
days), due to an increase in creditor period to 53 days (13 days)
and cash flow from operations turning positive to INR7.08 million (
INR29.07 million), due to a fall in inventory days. At FYE18, it
had cash and cash equivalents of INR5.56 million (FY17: INR0.85
million).

The ratings, however, are supported by the operational support
received from MBRFM's sister concern Sri Jagannath Roller Flour
Mills (IND BBB-/Stable) due to the same line of business, and the
three decades of experience of the company's partners in the flour
milling industry.

RATING SENSITIVITIES

Positive: An improvement in the revenue and operating profitability
leading to an improvement in credit metrics, on a sustained basis,
may lead to a positive rating action.

Negative: Sustained deterioration in the overall credit metrics and
liquidity position would lead to a negative rating action.

COMPANY PROFILE

MBRFM, established in 1984, processes wheat products such as white
flour, semolina, flour, and bran. The company sells flour in the
eastern part of India under the Rishta Food brand.


MSR SEA: CRISIL Assigns 'B+' Rating to INR25cr Loans
----------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of MSR Sea Foods (MSR).

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          5        CRISIL B+/Stable (Assigned)

   Proposed Cash
   Credit Limit        20        CRISIL B+/Stable (Assigned)

The rating reflects MSR's modest scale of operation and exposure to
intense competition in the industry. These weaknesses are partially
offset by the extensive experience of its partners.

Analytical Approach

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

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operation: Scale of operation is modest, as
reflected in expected operating income of INR60-100 crore in fiscal
2019. Revenue is likely to improve but remain modest over the
medium term on account of intense competition.

Strength

* Extensive experience of the partners: Benefits from the partners'
experience of 25 years in the industry should continue to support
the business.

Liquidity
Fund-based limit of INR5 crore was almost fully utilised over the 9
months ended December 31, 2018, while cash accrual was low.
However, nil term-debt obligation, timely enhancement in bank lines
and funding support from partners supports liquidity.  

Outlook: Stable

CRISIL believes MSR will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if revenue and cash accruals increase and working
capital management is efficient. The outlook may be revised to
'Negative' if cash accruals decline or working capital cycle is
stretched.

Set up in 2015, Narsapuram, Andhra Pradesh-based MSR, a partnership
firm of Mr. M Srinivasa Rao, and family, trades in shrimps.
Commercial operations are started in fiscal 2019.



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

The instrument-wise rating actions are:

-- INR250 mil. Fund-based working capital limits migrated to Non-
     Cooperating Category with IND BB- (ISSUER NOT COOPERATING)
     rating; and

-- INR100 mil. Non-fund-based limits migrated to Non-Cooperating
     Category with IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 16, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2009, N.N. Global Mercantile has been engaged in
the coal trading business in Chandrapur (Maharashtra) since FY12.
In March 2016, the company started the biomass business.

Its directors are Inshipal Singh Bhatia and Charanpreet Kaur
Bhatia.

NISHA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR7cr Loan
------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the
long-term bank facility of Nisha Enterprises (NE).

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

The rating continues to reflect the firm's exposure to intense
competition and to volatility in steel prices and demand from
end-user industries, working capital-intensive operations, low
operating profit margin, and weak financial risk profile because of
small networth and moderate debt protection metrics.. These
weaknesses are partially offset by extensive experience of the
firm's proprietor, and its healthy relationships with clients.

Key Rating Drivers & Detailed Description

Weakness

* Exposure to intense competition and to volatility in steel prices
and demand from end-user industries: NE trades in steel products,
and makes little value addition to products. It faces intense
competition as the steel trading industry is dominated by a large
number of unorganised players catering to regional demand.
Profitability is susceptible to volatility in steel prices and
demand from the housing (real estate), construction, and
infrastructure segments.

* Low operating profitability due to trading nature of operations
and low bargaining power with principal supplier: Operating margin
in fiscal 2018 was 2.6%. The firm receives a fixed margin from its
principal supplier for sale of hot-rolled (HR) and cold-rolled (CR)
coils and sheets, and thermo-mechanically treated (TMT) bars.
Profitability is low because of trading nature of operations and
low bargaining power due to the commoditised nature of products and
stiff competition from other players.

* Working capital-intensive operations: Gross current assets were
at 174 days as on March 31, 2018, driven by large receivables of
138 days and inventory of 35 days.

* Weak financial risk profile: The financial risk profile is
constrained by small networth, high total outside liabilities to
tangible networth (TOLTNW) ratio, and weak debt protection metrics.
Networth was INR2.55 crore as on March 31, 2018, due to low
profitability and low accretion of profit to reserves. TOLTNW ratio
was 6.8 times as on March 31, 2018. Interest coverage and net cash
accrual to total debt ratios were 1.27 times and 0.02 time,
respectively, in fiscal 2018.

Strengths

* Proprietor's extensive entrepreneurial experience, and
longstanding relationships with clients: The proprietor, Ms Sarita
Devi has been associated with trading of HR/CR coils and plates,
cast iron (CI) boulders and castings, and mild steel (MS) ingots
for over a decade. She is associated with a group entity, Esh Ispat
Pvt Ltd, which manufactures MS ingots. Her longstanding business
relationships have helped NE develop a sound network of customers
across states.

Liquidity
Remains below average on account of modest net cash accruals of
INR0.17 crore as on March 2018 and the same is expected to remain
at similar levels over the medium term. Further the average bank
limit utilization of its cash credit limit of INR7 crore remained
97% for past 12 months ending October 2018.


Outlook: Stable

CRISIL believes NE will continue to benefit from the extensive
entrepreneurial experience of the proprietor and its longstanding
association with clients. The outlook may be revised to 'Positive'
if higher-than-expected growth in revenue and operating margin
leads to sustained improvement in cash accrual and financial risk
profile. The outlook may be revised to 'Negative' if liquidity
deteriorates because of stretched working capital cycle, or if
revenue or profitability declines, leading to significantly low
cash accrual, or if the firm undertakes large, debt-funded capital
expenditure, weakening its capital structure.

NE is a distributor of Steel Authorities of India Ltd (SAIL) for
HR/CR coils and plates, CI bolder and casting, and MS ingots in
Bokaro, Jharkhand. Daily operations are managed by proprietor Ms
Sarita Devi.


OM SHANTI: CARE Rates INR10.50cr LT Loan 'B+'
---------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Om
Shanti Rice Mill (OSRM), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities         10.50        CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of OSRM is constrained
by its partnership nature of constitution, project implementation
risk, regulation by Government in terms of minimum support price
(MSP) and fragmented and competitive nature of industry. However,
the aforesaid constraints are partially offset by its experienced
partners, close proximity to raw material sources and stable growth
prospects of the industry.

The ability of the firm to complete the project without any cost &
time overrun, ability to achieve the projected scale of operations
and profitability as envisaged would be the key rating
sensitivities.

Detailed description of the key rating drivers

Partnership nature of constitution: Om Shanti Rice Mill, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Furthermore, partnership firms have restricted access to
external borrowing as credit worthiness of partners would be the
key factors affecting credit decision for the lenders.

Project implementation risk: The firm would be engaged in the
business of rice milling and processing which involves four major
processes viz. cleaning, conditioning, milling and finishing with
an installed capacity of 38,400 Metric ton per annum (MTPA). The
project is estimated to be set up at a cost of INR12.72 crore, to
be financed by way of partner's contribution of INR5.72 crore and
term loan of INR7.00 crore. The term loan has been sanctioned by
the banker. The firm has invested INR4.45 crore towards the project
till December 31, 2018 which is met entirely through INR2.66 crore
of partner's contribution and INR1.79 crore of bank term loan. The
project is expected to be operational from April, 2019.

Regulation by Government in terms of minimum support price (MSP)
The Government of India (GOI), every year decides a minimum support
price (MSP-to be paid to paddy growers) for paddy which limits the
bargaining power of rice millers over the farmers. The MSP of paddy
has increased during the crop year 2018-19 to INR1750/quintal (as
suggested by the Commission for Agricultural Costs and Prices, the
apex body to advice on MSP to the government) from INR1550/quintal
in crop year 2017-18. Given the market determined prices for
finished product vis-à-vis fixed acquisition cost for raw
material, the profitability margins are highly vulnerable. Such a
situation does not augur well for the entity, especially in times
of high paddy cultivation.

Fragmented and competitive nature of the industry: OSRM's plant is
located in Purulia, West Bengal, which is in close proximity to
hubs for paddy/rice cultivating region. Owing to the advantage of
close proximity to raw material sources, large number of small
units is engaged in milling and processing of rice in the region.
This has resulted in intense competition which is also fuelled by
low entry barriers. Given that the processing activity does not
involve much of technical expertise or high investment, the entry
barriers are low.

Key Rating Strengths

Experienced partners: Mr. Ashok Kumar Jaluka (aged 58 years) has
three decades of experience in the business of trading of agro
products. Mr. Ashish Jaluka and Mr. Shekhar Jaluka have experience
of more than a decade in similar line of business. They look after
the overall management of the firm with adequate support from
others partners and a team of experienced personnel.

Stable growth prospects of the industry along with close proximity
to the raw material sources: OSRM's plant is located at Purulia,
which is close to the vicinity to a major rice growing area of West
Bengal. The raw material requirement is met locally from local
farmers/agents which helps the firm to save substantial amount of
transportation cost and also procure raw materials at effective
price. The raw material for the custom milling and processing of
rice is expected to be provided by Government of West Bengal to the
entity to the extent of custom milling done. Further, rice being a
staple food grain with India's position as one of the largest
producer and consumer, demand
prospects for the industry is expected to remain good in near to
medium term.

Om Shanti Rice Mill (OSRM) is a partnership firm established in
November 2017, was promoted by Mr. Ashok Kumar Jaluka, Mr. Shekhar
Jaluka, Mr. Nitesh Jaluka, Mr. Piyush Jaluka, Mrs. Reena Jaluka and
Mr. Ashish Jaluka. The firm is setting up a rice milling unit of
agro products at Golkunda, Purulia, West Bengal with an installed
capacity of 38,400 Metric ton per annum (MTPA). The firm proposes
to manufacture rice, broken rice, rice bran. The project is
estimated to be set up at a cost of INR12.72 crore, which is
proposed to be financed by way of partner's contribution of INR5.72
crore and term loan from bank of INR7.00 crore. The project is
expected to be operational from April, 2019.

Mr. Ashok Kumar Jaluka has three decades of experience in the
business of trading of agro products. Mr. Ashish Jaluka and Mr.
Shekhar Jaluka have experience of more than a decade in similar
line of business. They look after the overall management of the
firm with adequate support from others partners and a team of
experienced personnel.


P.S. EARTHMOVERS: CRISIL Reaffirms 'B' Rating on INR18cr e-DFS
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility of
P.S. Earthmovers Private Limited (PSEPL) at 'CRISIL B/Stable'.

                        Amount
   Facilities         (INR Crore)    Ratings
   ----------         -----------    -------
   Electronic Dealer        18       CRISIL B/Stable (Reaffirmed)
   Financing Scheme
   (e-DFS)                 

The rating continues to reflect PSEPL's weak financial risk profile
and susceptibility to variation in demand. These weaknesses are
partially offset by the experience of the promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: Financial risk profile is likely to
remain below average, despite marginal improvement, over the medium
term. Net worth was modest at INR0.11 crore as on March 31, 2018,
with total outside liabilities to tangible net worth ratio high at
502.74 times owing to losses incurred during the two fiscals
through 2016. Debt protection metrics were below average, with
interest coverage and net cash accrual to total debt ratios of 1.08
times and 0.02 time, respectively, in fiscal 2018.

* Susceptibility to fluctuation in demand: As most customers are
from the infrastructure industry, which is cyclical in nature,
risks related to demand may continue to restrict the business.
Decline in demand had significantly impacted the scale during the
two fiscals through 2016; however, it improved from fiscal 2017
onwards. The revenue was moderate at INR146.45 crore in fiscal
2018.

Strength

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

Liquidity
Liquidity is likely to remain constrained over the medium term.
Cash accrual projected at INR1.2-1.3 crore per annum over the
medium term should be barely sufficient to meet the yearly maturing
debt of INR1.2 crore. Furthermore, utilisation of the bank limit
worth INR18 crore averaged 68% over the eleven months through
October 2018. The current ratio was 2.0 times as on 31st March,
2018.

Outlook: Stable

CRISIL believes PSEPL will continue to benefit from the experience
of the promoters. The outlook may be revised to 'Positive' if there
is substantial increase in revenue, profitability, and cash accrual
along with prudent working capital management. Conversely, the
outlook may be revised to 'Negative' if a steep decline in revenue
and cash accrual, or any large, debt-funded capital expenditure
weakens the financial risk profile and liquidity.

PSEPL was set up in August 2002 as a partnership firm, PS
Enterprise. PSEPL was incorporated in 2006 after taking over the
assets and liabilities of PS Enterprise. The company is an
authorized dealer of Tata-Hitachi Construction Machinery in West
Bengal and Sikkim. It currently operates through nine
sales-spares-and-services outlets and two sales-and-spares outlets.
Mr P K Daam and Mr Sanjib Bardhan are the promoters.


PANNA TEXTILE: CRISIL Reaffirms B+ Rating on INR5.0cr LT Loan
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' rating on
the bank facilities of Panna Textile Industries Private Limited
(PTIPL). The rating continues to reflect modest scale of operations
and exposure to intense competition. These weaknesses have been
partially offset by extensive experience of promoters and average
financial risk profile.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Export Bill           3.5       CRISIL A4 (Reaffirmed)
   Purchase-
   Discounting         

   Letter of Credit      1.5       CRISIL A4 (Reaffirmed)

   Packing Credit        3.0       CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    5.0       CRISIL B+/Stable (Reaffirmed)

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and exposure to intense competition:
Revenue of INR17.2 cr in fiscal 2018 reflects the modest scale of
operations. Moreover, low entry barriers and limited product
differentiation have led to stiff competition, with several players
operating with small capacities. As a result, there are no benefits
from economies of scale; players like PTIPL have lower bargaining
and pricing power, which curbs their profitability. In contrast,
larger players have better efficiencies and pricing power, and are,
thus, more resilient to external shocks.

Strengths

* Extensive experience of promoters:  Benefits from the
three-decade long experience of promoters, their keen grasp of
export market dynamics and established relationships with customers
and suppliers, will continue. This has ensured a regular flow of
orders and continued access to raw material from a pan-Indian
supplier base.

* Average financial risk profile:  PTIPL has average financial risk
profile marked by modest net worth of INR9.7 cr, low gearing and
total outside liabilities to tangible networth of 0.45 time and
1.13 time as on March 31, 2018. The company, however had subdued
debt protection metrics due to operating losses in FY 18. Financial
risk profile may remain average over the medium term.

* Working capital-intensive operations:  Gross current assets
(GCAs) was 348 days as on March 31, 2018, due to moderate inventory
and highly stretched receivables. The stretch in debtors in FY 18
in a year (from 142 days to 295 days) was due to lower bargaining
power of the company against its domestic customers. Going forward,
in order to mitigate this risk, the company shifted its business
model from stock-and-sell to cash-and-carry. However, the working
capital intensity is expected to moderate down in the medium term
but remain fairy intensive.

Liquidity

* Moderate bank limit utilisation:  Bank limit utilisation is
around 42 percent for the past twelve months ended December 31,
2018. CRISIL believes that bank limit utilization is expected to
remain moderate on account working capital requirements.

* Cash accrual against no debt obligation:  Cash accrual are
expected to be over INR30 lacs against which there are no term debt
obligation over the medium term. It will be act as cushion to the
liquidity of the company.

* Healthy current ratio:  Current ratio was healthy as on March 31,
2018 at over 1.7 times.

Outlook: Stable

CRISIL believes that PTIPL will continue to benefit from extensive
experience of its promoters. The outlook may be revised to
'Positive' if sustained improvement in revenue or profitability
leads to higher cash accrual, or if significant fund infusion from
promoters, shores up liquidity. The outlook may be revised to
'Negative' if a stretch in the working capital cycle or large,
debt-funded capex, weakens the financial risk profile.

PTIPL was incorporated in 1982 by promoters, Mr Rajkumar Poddar, Mr
Dharampal Poddar and Mr Anilkumar Poddar. The Kolkata-based company
manufactures and trades in fabric and garments, and also processes
grey fabric into finished fabrics.


PATWARI STEELS: CRISIL Hikes Rating on INR11.72cr Loans to B+
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Patwari Steels Private Limited (PSPL) to 'CRISIL B+/Stable' from
'CRISIL B/Stable'.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          11       CRISIL B+/Stable (Upgraded
                                 from 'CRISIL B/Stable')

   Standby Line          0.72    CRISIL B+/Stable (Upgraded
   of Credit                     from 'CRISIL B/Stable')

The upgrade reflects expected improvement in the business risk
profile, driven by healthy ramp-up in operations, and in the
financial risk profile, particularly liquidity. Revenue grew by 27%
to INR77 crore in fiscal 2018 from INR57 crore in the previous
fiscal. The healthy growth is expected to be sustained over the
medium term driven by improving capacity utilisation. The operating
margin is expected to improve to 4.0-4.5% from 3.7%, led by better
realisations.

Furthermore, gross current assets (GCAs) have reduced to 118 days
as on March 31, 2018, from 185 days a year earlier, and are
expected to reduce further to 100-120 days over medium term due to
better inventory control. Liquidity is expected to improve because
of better-than-anticipated cash accrual against debt obligation and
enhancement in bank lines. Unsecured loans of INR1.03 crs from the
promoters are likely to remain in the business over the medium
term. The financial risk profile should remain moderate on the back
of improving capital structure and debt protection metrics.

The rating continues to reflect working capital-intensive
operations, a modest financial risk profile, and susceptibility of
profitability to volatility in raw material prices and to intense
competition. These weaknesses are partially offset by the extensive
experience of the promoters in the steel industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Susceptibility of profitability to volatility in raw material
prices and to intense competition: The steel industry is highly
fragmented, leading to low realisations and profitability.
Furthermore, since the fortunes of this industry are closely linked
to economic activity, players are susceptible to cyclicality in
demand and fluctuations in realisations

* Working capital-Intensive operations: GCAs were high at 118 days
as on March 31, 2018, primarily on account of large inventory.

* Modest financial risk profile: The networth was small at INR7.75
crore and the gearing high at 1.61 times, as on March 31, 2018. The
debt protection metrics were modest, with interest coverage ratio
of 1.9 times and net cash accrual to total debt ratio of 0.11 time
in fiscal 2018.

Strength
* Extensive industry experience of the Promoters: The promoters, Mr
Subhash Patwari and his brother Mr Sudhir Kumar Patwari, have been
associated with the steel industry for about four decades. This has
enabled them to build a strong relationship with suppliers and
customers.

Liquidity
Liquidity is adequate. Average utilisation of the bank limit of
INR11 crore was high at 97% during the 12 months through October
2018. Cash accrual is expected at INR1.78-1.86 crore against
repayment obligation of INR0.16 crore, per fiscal over the medium
term, resulting in adequate cushion to meet incremental working
capital needs. Liquidity is further strengthened by unsecured loans
from the promoters to support incremental working capital
requirement.

Outlook: Stable

CRISIL believes PSPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised to
'Positive' in case of improvement in the financial risk profile,
particularly liquidity, supported by better working capital
management. The outlook may be revised to 'Negative' in case of
lower-than-expected capacity utilisation, which may impact the
operating margin, or significant debt-funded capital expenditure.

Incorporated in 1981, PSPL commenced commercial operations in 1993.
Mr Subhash Kumar Patwari, Mr. Sudhir Kumar Patwari, and Mr. Namit
Patwari are the directors. It manufactures mild-steel ingots and
thermo-mechanically treated (TMT) bars. The company has capacity of
33,000 tonne per annum (tpa) for ingots and 16,000 tpa for TMT bars
at its manufacturing facility in Fatuha Industrial Area near
Patna.


PAVAN TRADERS: CARE Migrates B+ on INR5.25 Debt to Not Cooperating
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Pavan
Traders (PT) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank       5.25      CARE B+; Stable, Issuer not
   Facilities                     cooperating, based on best
                                  available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from PT to monitor the rating
vide e-mail communications/letters dated January 14, 2019,
January 16, 2019, January 17, 2019, January 19, 2019 and numerous
phone calls. However, despite our repeated requests, the firm has
not provided the requisite information for monitoring the rating.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of best available information which however, in
CARE's opinion is not sufficient to arrive at fair rating. The
rating on Pavan Traders 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.

Detailed description of the key rating drivers

At the time of last rating on February 23, 2018 the following were

the rating strengths and weaknesses:

Key Rating Weakness

Low profitability margins: The profitability margins of the firm
has been decreasing year-on-year and remained thin. The PBILDT
margin of the firm has been decreasing from 19.07% in FY15 to 0.68%
in FY17 due to increase in the costs of sales as the firm is
spending majority of the amount on maintaining the quality of the
product in order to stabilize the business along with trading
nature of business with presence of numerous players. The PAT
margin of the firm has been also seen decreasing during the review
period from 4.59% in FY15 to 0.42% in FY17 due to low operating
profit.

Highly fragmented industry with intense competition from large
number of players: The firm is engaged in the processing of Bengal
Gram which is highly fragmented industry due to presence of large
number of organized and unorganized players in the industry and
faces huge competition.

Constitution of entity as a proprietorship firm with inherent risk
of withdrawal of capital: With the entity being proprietorship
firm, there is an inherent risk of instances of capital withdrawals
by proprietor resulting in lesser of entity's net worth. Further,
the proprietorship firms are attributed to limited access to
funding.

Key Rating Strengths

Experienced promoter: PT was established in 2013 by Mr. G.
Prabhakar. Mr. Prabhakar is the proprietor of the firm and has more
than 15 years of experience in the processing of Bengal Gram.
Previously he used to work with "Paval Dal Mill" as an active
partner where he used to hold 50% of share in the business. He has
established good relationship with suppliers and customers due to
presence in the business for a longer period of time.

Increasing scale of operations: The total operating income (TOI) of
the firm has been increasing during review period. The TOI of the
firm has increased significantly from INR 2.22 crore in FY15 to INR
140.11 crore in FY17 due to increase in demand from the existing
customers and addition of new customers.

Comfortable capital structure and debt coverage indicators: The
capital structure of the firm marked by debt equity and overall
gearing ratio has been improving year-on-year and remained
comfortable at 0.28x and 0.31 respectively as on March 31, 2017 due
to satisfactory net worth increasing year-on-year due to accretion
of profit to the net worth along with low debt levels. The debt
profile of the firm as on March 31, 2017 includes vehicle loans
(91%) and unsecured loans from related parties (9%).
The debt coverage indicators of the firm also remained at
comfortable level during review period. The total debt/GCA has been
improving year-on-year from 1.26x in FY15 to 0.60x in FY17 due to
satisfactory amount of gross cash accruals coupled with low
debt levels. Furthermore, the PBILDT interest coverage ratio,
though fluctuating during review period, stood strong at 403.25x
in FY17 on account of low interest and financial expenses.

Comfortable working capital cycle: The firm has a comfortable
operating cycle during the review period and turned negative at -5
days in FY17. The firm avails the credit period from the farmers up
to 30 to 45 days and receives the payment from its customers within
20 days. The firm holds sufficient inventory level of up to 30 days
to meet customer demand on time.  The average utilization of cash
credit limit in the last month ended i.e., January 31, 2018
remained at 90 per cent.

Stable outlook for agro product industry: Agriculture plays a vital
role in India's economy. Over 58 per cent of the rural households
depend on agriculture as their principal means of livelihood. As
per the 2nd advised estimates by the Central Statistics Office
(CSO), the share of agriculture and allied sectors (including
agriculture, livestock, forestry and fishery) is estimated to be
17.3 per cent of the Gross Value Added (GVA) during 2016-17 at
2011-12 prices.

The Indian food industry is poised for huge growth, increasing its
contribution to world food trade every year due to its immense
potential for value addition, particularly within the food
processing industry. The Indian food and grocery market is
the world's sixth largest, with retail contributing 70 per cent of
the sales. The Indian food processing industry accounts for 32
per cent of the country's total food market, one of the largest
industries in India and is ranked fifth in terms of production,
consumption, export and expected growth. It contributes around 8.80
and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and
Agriculture respectively, 13 per cent of India's exports and six
per cent of total industrial investment. India is expected to
achieve the ambitious goal of doubling farm income by 2022 i.e. The
agriculture sector in India is expected to generate better momentum
in the next few years due to increased investments in agricultural
infrastructure such as irrigation facilities, warehousing and cold
storage. Furthermore, the growing use of genetically modified crops
will likely improve the yield for Indian farmers. India is expected
to be self-sufficient in pulses in the coming few years due to
concerted efforts of scientists to get early-maturing varieties of
pulses and the increase in minimum support price.

India's gross value added (GVA) at basic prices increased by 5.7
per cent during the April-June 2017 quarter, driven by agriculture
and government spending. GVA from agriculture, forestry and fishing
sector grew 2.5 per cent in this quarter. The government of India
targets to increase the average income of a farmer household at
current prices to Rs 219,724 (US$3,420.21) by 2022-23 from Rs
96,703 (US$ 1,505.27) in 2015-16.

Anantapur based (Andhra Pradesh), Pavan Traders (PT) was
established in 2013 as a proprietorship firm by Mr. G. Prabhakar.
PT is engaged in the processing and distribution of Bengal Gram.
The firm purchases Bengal Gram from the farmers located in Andhra
Pradesh and Karnataka. The firm engages into cleaning of mud, straw
and distribute the final product to the customers (Dal Millers)
located in Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and
Maharashtra. The firm has around 300 customers all over the India
and 60 per cent of the revenue is being generated from Tamil Nadu
state region only. The current installed capacity for processing of
Bengal Gram is 60 tons per day.


PETRON ENGINEERING: Ind-Ra Affirms 'D' LT Ratings, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Petron Engineering
Construction Limited's (PECL) Long-Term Issuer Rating at 'IND D
(ISSUER NOT COOPERATING)'. The issuer did not participate in the
rating exercise, despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. The rating will continue to appear as 'IND D (ISSUER
NOT COOPERATING)' on the agency's website.

The instrument-wise rating actions are:

-- INR121.6 mil. Term loan (long-term) affirmed with IND D
     (ISSUER NOT COOPERATING) rating;

-- INR845 mil. Fund-based limits (long-term) affirmed with IND D
     (ISSUER NOT COOPERATING) rating;

-- INR4.120 bil. Non-fund-based limits (short-term) affirmed with

     IND D (ISSUER NOT COOPERATING) rating;

-- INR200 mil. Proposed term loan (long-term) affirmed with
     Provisional IND D (ISSUER NOT COOPERATING) rating;

-- INR350 mil. Proposed fund-based limits (long-term) affirmed
     with Provisional IND D (ISSUER NOT COOPERATING) rating; and

-- INR650 mil. Proposed non-fund-based limits (short-term)
     affirmed with Provisional IND D (ISSUER NOT COOPERATING)
     rating.

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

KEY RATING DRIVERS

PECL is undergoing a Corporate Insolvency Resolution Process under
the National Company Law Tribunal vide order dated September 6,
2018. A resolution professional has been appointed who is running
the company as a going concern. However, the details of which are
not available.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months could
result in a rating upgrade.

COMPANY PROFILE

Incorporated in 1976, PECL provides turnkey engineering,
procurement, construction and composite construction solutions to
power, oil and gas, petrochemical, cement, and other sectors.


POLYGENTA TECHNOLOGIES: CARE Reaffirms B Rating on INR6.06cr Loan
-----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Polygenta Technologies Limited (PTL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank
   Facilities           6.06       CARE B; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of PTL continues to
factor continuing operational losses on account of sub-optimality
of operations, weak debt coverage indicators, stressed liquidity
position and cash losses with complete erosion of net-worth. The
ratings continue to factor in financial support from the holding
company.

The ability of PTL to turnaround the business operations,
successfully execute and complete its ongoing project remains
the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Weak financial risk profile: The company continues to post
operating losses because of sub-optimal capacity utilization of its
manufacturing facilities. In FY18 (refers to the period April 2017-
March 2018), the company has made provision of INR16.29 crore
related to impairment of capital work in progress and has incurred
loss of INR55.03 crore during the same period. Consequently, the
interest coverage ratio continues to be negative and net-worth of
the company has been eroded.

Availability of substitute product: The quality of the polyester
products produced by alternate method of using virgin petrochemical
feed-stocks derived from crude oil is relatively better than those
produced by recycled PET bottles. Since the average closing price
of crude oil remains at moderate levels $71/barrel (in FY18), the
low price advantage available to recycled polyester yarn industry
are being set off.

Stressed Liquidity Position: The company liquidity position is
stressed marked by PTL's dependence on its parent PerPETual Global
Technologies (PGTL) for funding the losses and almost full
utilisation of its working capital limits, thereby providing no
liquidity cushion. The company's cash balance stood at INR2.03
crore as on September 30, 2018.

Project Risk: PTL started expanding its recycling capacity
(backward integration) to 75 TPD [current 30 TPD] at a capital
outlay of INR125 crore, in order to increase the product offerings
and optimize the cost structure of its integrated plant at Nashik.
The company has also planned to set up new winders for making fully
drawn yarn (FDY) at an estimated cost of INR20 crore which would be
fully financed by ECB's from parent company.

Key Rating Strengths

Experienced promoters: In 2008, Aloe Environment Fund II (AEF) and
Green Investment Asia Sustainability Fund I (GIASF) (both managed
by the Aloe Group which manages a number of environment funds to
invest in companies that seek to make a positive contribution to
society) committed investment in Polygenta technologies
limited(PTL) by forming PerPETual Global Technologies (PGTL) in
Mauritius. The Aloe group has proven track record in environmental
sector and is a pioneer in social and environmental corporate
responsibility.

Regular Infusion of funds from holding company: The promoters have
regularly infused funds to support the company's operations. During
FY18, the holding company has infused external commercial borrowing
(ECB) to the tune of Euro 10 million. The parent group has also
waived off the interest payments on sanctioned amount of USD 20
million and EUR 4.5 million from September 2016 to June 2019.

Incorporated in 1981, Polygenta technologies limited (PTL) is
engaged in the manufacture of Polyester Filament Yarn (PFY) using
recycled PET bottles as a major feedstock. PTL uses a recycling
technology (the ReNEW process) which is effective in reconstituting
lower cost recycled PET bottles into a substitute feedstock for
higher cost conventional petrochemicals. The integrated
manufacturing facility of PTL is located in Nasik and has an
installed capacity of 30 TPD [10,950 Metric Tonne Per Annum (MTPA)]
at its recycling unit and 70 TPD (25,550 MTPA) at its
polymerization unit. PTL sells its polyester yarn products for
various applications in the fields of apparel, denim, home
furnishings, floor coverings, and industrial applications.


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

The instrument-wise rating actions are:

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

-- INR95 mil. Non-fund-based limits migrated to non-cooperating
     category with IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 27, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Rajendra Kumar Kalal executes civil contracts in Rajasthan. It
primarily executes orders issued by the Public Works Department,
Rajasthan. The company operates in several locations across
Rajasthan.

RAJESH HOUSING: CRISIL Lowers Rating on INR140cr NCD to B
---------------------------------------------------------
CRISIL has downgraded its rating on the non-convertible debentures
(NCDs) of Rajesh Housing Private Limited (RHPL) to 'CRISIL
B/Stable' from 'CRISIL B+(SO)/Stable'.

                       Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Non Convertible      140.00      CRISIL B/Stable (Downgraded
   Debentures-LT                    from 'CRISIL B+(SO)/Stable')

The downgrade reflects continued delays in project implementation
with slower-than-expected progress. Furthermore, the company is
susceptible to high refinancing risk given that NCDs mature in June
2019.

The rating reflects exposure to implementation risk because of
nascent stage of project and cyclicality inherent in the real
estate sector. These weaknesses are partially offset by the
extensive experience of RHPL's promoters in real estate development
and favourable location of the project in Mumbai.

Maturity of the NCDs have been extended by four months and fifteen
days and now be maturing on 17th June 2019 rather than previous
maturity date of 2nd February 2019.

The 'SO' suffix has been removed as the expected launch of project
is farther than the maturity of NCDs, thus making the NCD repayment
oblivious to cash flow generation in the project.

Analytical Approach
CRISIL has taken a standalone view on RHPL since this is the only
project in the company's book and cash flow is not fungible with
other projects in the group. Unsecured loans have been treated as
debt.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to implementation risk given nascent stage of project
Though RHPL has already acquired the entire land of 10.5 acres,
Project has faced delays in obtaining requisite approvals which has
led to delays in project launch. Company is yet to receive the
requisite approvals for commencement of construction. The project
will be executed in phases but it remains exposed to risks related
to time and cost overruns during the initial stages. Proven track
record of promoters will support project implementation, but any
further delay will remain a key rating sensitivity factor.

* Heightened refinancing risk impacting financial risk profile
Maturity date of the NCDs has been extended by four months and 15
days, to June 2019; due to inability to refinance the project on
time. With high upcoming repayment on NCDs and further delay in
project development, financial risk profile is weak. Hence, any
delay in refinancing will remain a key rating sensitivity factor.

* Susceptibility of sales to cyclicality inherent in the real
estate sector: The company's financial risk profile is exposed to
risks and cyclicality inherent in the real estate sector, which in
turn could result in fluctuations in cash inflow because of
volatility in saleability and hence receipt of customer advances.
In contrast, cash outflow related to project completion and debt
obligation are relatively fixed, which can lead to substantial cash
flow mismatch.

Strengths

* Extensive experience of promoters: Promoters have been in the
real estate segment for over five decades. They have developed
residential and commercial space of over 3 million square feet (sq
ft) during the past eight years, and have a strong track record in
the western and eastern suburbs in Mumbai.

* Favourable location of project: The project, located on LBS Marg
in Vikhroli, is accessible to both the central and western suburbs
of Mumbai, including Powai and SEEPZ. Hence, saleability is
expected to be healthy.

Liquidity
Liquidity is weak due to nascent stage of project. Although NCDs do
not have coupon payments, redemption with premium are due in June
2019. This exposes RHPL to refinancing risk given nascent stage of
project with approvals yet to be obtained. Timely refinancing will
remain a key rating sensitivity factor.

Outlook: Stable

CRISIL believes RHPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if substantial progress in project construction and
sales leads to a sustained improvement in cash flow. The outlook
may be revised to 'Negative' if project progress is slow, the
company is unable to refinance the maturing NCDs well within time,
or if it contracts substantial debt to fund the project.

RHPL, which is a part of the Rajesh Lifespaces group, was set up in
2015. The company is developing a residential-cum-commercial
project in Vikhroli, Mumbai.

The Rajesh Lifespaces group is a Mumbai-based real estate developer
promoted by Mr Raghav Patel. The group has been in real estate
construction and development for over 50 years. Operations are
currently managed by the third-generation of the family, Mr Priyal
Patel and Mr Pratik Patel. As on date, the group has nearly 8.6
million sq ft of area under development across Mumbai.


RBR GARMENTS: Ind-Ra Assigns BB LT Issuer Rating on INR430MM Loan
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned RBR Garments
Private Limited (RBR) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable.

The instrument-wise rating action is:

-- INR430.0 mil. Fund-based working capital limits assigned with
     IND BB/Stable/IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect RBR's medium scale of operations, tight
liquidity, modest operating margins and weak credit metrics. RBR
operates in a highly fragmented industry, facing competition both
from international and domestic players. The company is also
exposed to forex risks, as export sales contribute over 95% to the
total revenue and imports account for 30% of the total raw
materials requirements.

Revenue declined to INR911.5 million in FY18 (FY17: INR1,067.4
million), due to a decline in export orders along with GST
implementation and a decline in duty drawback. The company has
indicated revenue of INR705.8 million for 9MFY19 and had a small,
unexecuted order book of INR447 million in the beginning of
February 2019, which will be executed by May 2019.

The company's average peak use of its fund-based facilities was
92.7% during the 12 months ended January 2019. Net cash conversion
cycle elongated to 300 days in FY18 (FY17: 249 days), owing to a
long inventory holding period of 248 days (210 days), due to the
bulk purchase of raw materials from China. Also, its cash flow from
operations turned negative INR81.8 million in FY18 (FY17: INR35.4
million) owing to higher working capital requirements. As of March
2018, the company had a cash balance of INR19.5 million.

EBITDA margin fluctuated in the range of 9%-13% on account of
volatile raw materials prices. The RoCE was 7.6% in FY18 (FY17:
9.1%).

RBR's net financial leverage (adjusted net debt/operating EBITDAR)
deteriorated to 8.4x (FY17: 6.8x), majorly on account of an
increase in unsecured loan from promoters to INR250.2 million
(INR64.9 million). Interest coverage (operating EBITDA/gross
interest expense) marginally improved to 1.5x in FY18 (FY17: 1.4x).
However, Ind-Ra expects an improvement in the credit metrics in
FY19, due to lowering of short-term debt and interest expenses.

The ratings, however, are supported by the promoter's experience of
around three decades in the knitted garments manufacturing
businesses.

RATING SENSITIVITIES

Negative: A decline in the revenue and/or operating profitability,
leading to deterioration in the credit metrics and stressed
liquidity, all on a sustained basis, will be negative for the
ratings.

Positive: An increase in the revenue and profitability leading to
an improvement in the credit metrics and liquidity, all on a
sustained basis, will lead to a positive rating action.

COMPANY PROFILE

Established in 1987 as a partnership firm and later converted into
a private company in 2005, Tirupur-based RBR manufactures knitted
garments and exports them to the US and Europe. The company has
in-house facilities of Knitting, dyeing, printing, embroidery and
washing.


RELIANCE COMMUNICATIONS: Seeks INR260cr Release to Pay Ericsson
---------------------------------------------------------------
The Economic Times reports that a day after the Supreme Court
verdict asking Reliance Communications to submit INR453 crore in
four weeks, the Anil Ambani-led company has requested "urgent
approval" from lenders to release INR260 crore of Income Tax refund
directly to telecom equipment maker Ericsson.

According to the report, the company said it is confident of
raising balance INR200 crore within four weeks to pay back dues to
Ericsson as per the apex court order.

ET says the Supreme Court on Feb. 20 held Reliance Communications
chairman Anil Ambani in contempt for not paying Ericsson's dues
worth INR550 crore despite having the money to do so, threatening
to send the businessman to jail for three months if he didn't cough
up what was owed in four weeks.

The report relates that the court had asked the company to pay
INR453 crore apart from INR118 crore already deposited by Reliance
Communications in the top court registry. Additionally, Reliance
Communications, Reliance Infratel and Reliance Telecom were fined
INR1 crore each.

The court observed that Reliance Communications' undertaking to pay
Ericsson was not "conditional", contrary to the company's claims
and wasn't linked to the disposal of any specific assets to Mukesh
Ambani-led Reliance Jio Infocomm or other entity, ET relays.

Besides, the Company had the money but chose not to pay, said the
bench. The court gave Reliance Communications and associated
companies another chance to "purge" themselves of contempt by
paying the settlement amount plus interest. If they don't do so,
Anil Ambani and the chairmen of Reliance Communications units
Reliance Infratel and Reliance Telecom - Chhaya Virani and Satish
Seth - will be jailed for three months, the court, as cited by ET,
said.

In a detailed order, the bench said that the Reliance
Communications companies had, after giving an unconditional
undertaking to the National Company Law Tribunal (NCLT), made a
conditional one in the top court and taken advantage of proceedings
in the latter to avoid insolvency without paying the amount due.

The court found that the company hadn't intended to pay, the report
adds.

As reported in the Troubled Company Reporter-Asia Pacific on Feb.
4, 2019, BloombergQuint related that Reliance Communications Ltd.
will approach the National Company Law Tribunal to seek debt
resolution under the insolvency law after the Anil Ambani-
controlled company failed to make progress on its own. In a stock
exchange filing, the Company related that "[t]he board noted that,
despite the passage of over 18 months, lenders have received zero
proceeds from the proposed asset monetisation plans, and the
overall debt resolution process is yet to make any headway."

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.


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

The instrument-wise rating action is:

-- INR90 mil. Fund-based limits migrated to Non-Cooperating
     Category with IND B+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 26, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Rita International is a proprietorship concern in Varanasi that
established by Pankaj Shukla in 2010. It manufactures handmade
carpets.


SAHYADRI AGRO: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Sahyadri Agro Industries & Foods Private Limited
        Gate No. 185, Sr. No. 14, 12, 16, 24, K.G. Road
        Taluka-Akole, Ahmednagar 422601

Insolvency Commencement Date: January 21, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 20, 2019
                               (180 days from commencement)

Insolvency professional: Mr. Ankur Kumar

Interim Resolution
Professional:            Mr. Ankur Kumar
                         Office No. 18, 10th Floor
                         Pinnacle Corporate Park, G-Block
                         Bandra Kurla Complex, Bandra (E)
                         Mumbai 400051
                         E-mail: ankur.srivastava@ezylaws.com

Last date for
submission of claims:    February 4, 2019


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

The instrument-wise rating actions are:

-- INR397.4 mil. Long-term loans due on April 2023 migrated to
     Non-Cooperating Category with IND BB+ (ISSUER NOT
     COOPERATING) rating; and

-- INR147 mil. Fund-based limits migrated to Non-Cooperating
     Category with IND BB+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 28, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Samarth Ad Protex manufactures block bottom
bags/polypropylene-laminated bags in Purulia District, West Bengal.
The company has an annual production capacity of 8,000 metric tons.
Mr. Bishnu Kumar Agarwal is the key promoter.


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

The instrument-wise rating actions are:

-- INR170.04 mil. Term loan due on March 2022 migrated to non-
     cooperating category with IND BB+ (ISSUER NOT COOPERATING)
     rating; and

-- INR300.0 mil. Fund-based working capital limits migrated to
     non-cooperating category with IND BB+ (ISSUER NOT
     COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 5, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 1981, Sangeeth Textiles manufactures compact yarn at
its installed capacity of 34,000 spindles.


SAS INFRA: CARE Moves B on INR8cr Debt to Non-Cooperating
---------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Sas
Infra Engineering Private Limited (SEPL) to Issuer Not Cooperating
category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       8.00       CARE B; Stable; Issuer not
   Facilities                      cooperating; based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SEPL to monitor the ratings
vide letters/e-mails communications dated October 12, 2018, October
26, 2018, November 19, 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 ratings on the basis
of the publicly available information which however, in CARE's
opinion is not sufficient to arrive at fair ratings. The rating on
company's bank facilities will now be denoted as CARE B; Stable;
ISSUER NOT COOPERATING. Further, banker could not be contacted.

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

The ratings take into account as constitution as a Small scale of
operation along with moderate profitability margins, significant
geographical concentration with single state operation, volatility
associated with input prices, working capital intensive nature of
business, high competitive intensity on account of low complexity
of work involved with sluggish economic scenario. The rating,
however, continue to draw comfort from its experienced promoters,
reputed clientele albeit client concentration risk, comfortable
capital structure and satisfactory debt coverage indicators.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters: The key promoter, Mr. Susanta Kumar
Mohapatra having around two decades of experience in the civil
electrical contractor business. He looks after the overall
management of the company, with adequate support from other
director and a team of experienced personnel. The long experience
of the directors has supported its business risk profile to a
large extent.

Reputed clientele albeit client concentration risk: SEPL executes
orders mainly for various public sector units like Western
Electricity Supply Company of Orissa Ltd (WESCO), Odisha Power
Transmission Corporation Ltd (OPTCL), Central Electricity Supply of
Odisha (CESU) etc.

Comfortable capital structure and satisfactory debt coverage
indicators: The capital structure of the company remained
comfortable marked by debt equity and overall gearing ratios of nil
as on March 31, 2018. Further, the interest coverage ratio also
remained satisfactory in FY18. Moreover, Total debt to GCA also
remained nil as on March 31, 2018.

Key Rating Weaknesses

Small scale of operation along with moderate profitability margins:
SEPL is a relatively small player in the construction business,
with total operating income and net profit of INR3.38 crore and
INR0.15 crore, respectively, in FY18. This apart, the profitability
of the company has been moderate over the years due to volatility
in the prices of input materials. The PBILDT margin was 6.08% and
PAT margin was 4.39% during FY18. The small size restricts the
financial flexibility of the company in times of stress and it
suffers on account of economies of scale.

Significant geographical concentration with single state operation:
SEPL operates in the state of Odisha with majority of the projects
executed for design, engineering, supply, installation,
commissioning and maintenance of electrical transformers. In view
of its presence in a single state, the company is exposed to
geographical concentration risk to a large extent.

Volatility associated with input prices: The major input materials
for the company are transformer, cable wire and conductors, the
prices of which are volatile in nature. Furthermore, major
contracts executed by the company does not contain escalation
clause due to relatively short duration of the contracts. Thus the
company is exposed to volatility in the prices of the input
materials. However, the company purchases the input materials in
bulk as per the requirement for executing the contracts which
reduces the risk of volatility to a certain extent.

Working capital intensive nature of business: SEPL's business being
design, engineering, supply, installation, commissioning and
maintenance of electrical transformers is working capital intensive
marked by its high inventory period. The company purchases its
input materials in bulk to reduce the price volatility risk as well
as to avail bulk purchase discounts.

High competitive intensity on account of low complexity of work
involved with sluggish economic scenario: The company has to bid
for contracts based on tenders and upon successful technical
evaluation of various bidders, the lowest bid is awarded the
contract. Since the type of work done by SEPL is mostly
commoditized, the company faces intense competition from other
players. The company receives projects which majorly are of a short
to medium tenure (i.e. to be completed within maximum period of
twelve to fifteen months). Apart from this, moderate economic
growth during the last three years is also having a negative
bearing on the construction sector which may also hinder the growth
of the company.

Incorporated in October 2010, Sas Infra Engineering Private Limited
(SEPL) is engaged in the business of design, engineering, supply,
installation, commissioning and maintenance of electrical
transformers. Mr. Susanta Kumar Mohapatra, having around two
decades of experience in the civil electrical contractor business,
looks after the day to day operations of the company. He is
supported by other directors and a team of experienced
professionals.

Liquidity

The liquidity position of the company remained moderate marked by
current ratio and quick ratios of 1.49x and 1.31x, respectively, as
on March 31, 2018. The Gross cash accruals also remained at INR0.15
crore in FY18.


SATNAM RICE: CARE Reaffirms B+ Rating on INR15cr LT Loan
--------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Satnam Rice Mills (SRM), as:

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

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of SRM continues to be
constrained by its modest scale of operations along with low
profitability margins, leveraged capital structure and weak debt
coverage indicators. The rating is further constrained by weak
liquidity position, proprietorship nature of constitution and
fragmented and competitive nature of industry. The rating, however,
derives strength from experienced proprietor in the agro processing
industry and proximity of its processing unit to the paddy growing
areas.

Going forward, ability of the firm to profitably scale up its
operations while improving its overall solvency position along with
efficient working capital management shall remain the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced proprietor in the agro processing industry: SRM was
established as a proprietorship firm in the year 2002 by Mr Sachin
Mittal. He is a graduate and has an experience of around one and
half decade in processing and milling of basmati and non-basmati
rice through his association with SRM. He looks after overall
operations of the firm.

Close proximity to paddy growing region: Its presence in the region
gives additional advantage over the competitors in terms of easy
availability of the raw material as well as favorable pricing
terms. SRM owing to its location is in a position to cut on the
freight component of incoming raw materials.

Key Rating Weaknesses

Modest scale of operations with low profitability margins: The
total operating income of SRM stood stable at INR66.27 crore in
FY18 as against INR65.97 crore in FY17 due to absence of
incremental demand from customers. The same, however, continues to
remain modest. The modest scale of operations limits the firm's
financial flexibility in times of stress and deprives it of scale
benefits. Furthermore, the firm reported total operating income of
INR65.00 crore in 9MFY19 (Provisional). The PBILDT margin improved
marginally from 3.44% in FY17 to 3.47% in FY18 due to improved
sales realization. Consequently, and also due to decrease in
interest expenses in FY18, PAT margin improved marginally from
0.25% in FY17 to 0.28% in FY18. Furthermore, the gross cash
accruals increased from INR0.34 crore in FY17 INR0.42 crore in
FY18.

Leveraged capital structure: The capital structure of the firm
stood leveraged marked by the overall gearing ratio of 4.34x as on
March 31, 2018. The same deteriorated from 4.31x as on March 31,
2017 due to additional term loans availed and infusion of funds in
the form of unsecured loans in FY18.

Weak debt coverage indicators: The debt coverage indicators
remained weak with the total debt to GCA at 51.17x for FY18 and
interest coverage ratio at 1.21x in FY18 in comparison to total
debt to GCA at 57.91x for FY17 and interest coverage ratio at 1.18x
in FY17. The interest coverage ratio improved from 1.18x in FY17
due to increase in absolute PBILDT level. Consequently, the total
debt to GCA improved from 57.91x for FY17 owing to increase in
gross cash accruals in FY18.

Weak liquidity position: The operating cycle of the firm stood
elongated at 131 days for FY18 (PY: 129 days). SRM is required to
maintain adequate quantity of raw materials and finished products
to ensure smooth production and to meet demand of customers.
Furthermore, basmati rice requires longer ageing of the
semi-finished rice for better quality, which further elongates the
inventory holding period of the firm which has led to a high
inventory period of 105 days for FY18. The same decreased from 111
days for FY17 mainly due to decline in unsold finished goods. The
firm generally extends credit period of around one month to its
customers. However, delay in realization of funds from a few
customers resulted into average collection period of 64 days for
FY18 (PY: 37 days). Consequently, the creditor period also
elongated from 19 days for FY17 to 38 days for FY18. The working
capital limits remained fully utilized for the last 12 months
period ended December 2018. The current ratio stood moderate at
1.40x as on March 31, 2018 however, quick ratio stood weak at 0.41x
as on March 31, 2018. The firm has free cash and bank balance of
INR0.30 crore as on March 31, 2018.

Fragmented and competitive nature of industry: The commodity nature
of the product makes the industry highly fragmented, with numerous
players operating in the unorganized sector with very less product
differentiation. Furthermore, the concentration of rice millers
around the paddy growing regions makes the business intensely
competitive.

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

Kaithal-based (Haryana) SRM was established in 2002 as a
proprietorship firm by Mr Sachin Mittal. The firm is engaged in
milling, processing and trading of basmati and non-basmati rice
with an installed capacity of 54000 metric ton per annum as on
December 31, 2018. The firm procures paddy from local grain markets
through commission agents and rice millers. The firm sells its
product under the brand name 'Kaithal King' in Northern India
mainly in Haryana and Delhi.


SATYAM AGRO: CRISIL Lowers Rating on INR4cr Cash Loan to D
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Satyam
Agro Trade Private Limited (SATPL) to 'CRISIL D/CRISIL D' from
'CRISIL BB-/Stable/CRISIL A4+'.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          4        CRISIL D (Downgraded from
                                 'CRISIL BB-/Stable')

   Letter of Credit     7        CRISIL D (Downgraded from
                                 'CRISIL A4+')

The downgrade reflects weak liquidity on account of cash flow
mismatches, post changes in business mix resulting in devolvement
of letter of credit facility availed by the company for more than
90 days.

The ratings also factors in modest scale of operations in a highly
fragmented industry and susceptibility of operating profitability
to volatility in commodity prices. These weaknesses are partially
offset by the extensive experience of SATPL's promoters in the
trading business and its established relations with customers.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in a highly fragmented industry:
Presence of many small and large players has resulted in highly
fragmented industry for trading of agro commodities. The
fragmentation and the modest scale of operations limits the ability
to bargain with suppliers and customers and scale up rapidly.

* Susceptibility of operating profitability to volatility in
commodity prices: Operating profitability remains susceptible to
volatility in commodity prices since these are dependent on
supply-demand scenario in the domestic market and regulations of
the government.

Strength
* Promoters' extensive experience in the trading business:
Promoters have been trading businesses for over 3 decades and have
developed a good foothold in the market.

Liquidity
Liquidity is highly stretched on account of cash flow mismatches
resulting in the devolvement of letter of credit for a period more
than 90 days.

Established in the year 2015, SATPL is a private limited company
engaged in trading of imported spices and pulses. It was also
engaged in franchisee sales of the juice brand - 'Onjus' (Tunip
Lanka Pvt. Ltd. - 100% subsidiary of Tunip Agro Limited). The
company majorly caters to the domestic market. The day-to-day
operations of the company are managed by Mr. Arvind Varma and Mrs.
Sarla Varma.


SATYAM EXIMTEX: CRISIL Lowers Rating on INR50cr Cash Loan to D
--------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Satyam
Eximtex International Private Limited (SEIPL) to 'CRISIL D' from
'CRISIL BB/Stable'.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          50       CRISIL D (Downgraded from
                                 'CRISIL BB/Stable')

The downgrade reflects weak liquidity on account of stretched
receivables, resulting in cash flow mismatches and delays in
servicing of interest for more than 90 days.

The ratings also factor in low profitability on account of trading
nature of operations and large working capital requirements. These
weaknesses are partially offset by the extensive experience of
SEIPL's promoters in the grey fabric and yarn trading business.

Key Rating Drivers & Detailed Description

Weaknesses

* Low operating margin: The margin has been low on account of low
value addition because of trading nature of operations.

* Large working capital requirements: Operations are working
capital intensive as reflected in gross current asset (GCA) days of
143 days as on March 31, 2017 primarily on account of high debtors
of around 90 days.

Strength

* Promoters' extensive experience in the grey fabric and yarn
trading industry: Backed by promoters' extensive industry
experience in trading of grey fabric and cotton yarn for over 30
years company have developed a good foothold in the market.

Liquidity
Liquidity is highly stretched resulting in delays in interest
servicing for a period more than 90 days.  

Incorporated in 2014, SEIPL is a Mumbai-based company engaged in
trading grey fabrics and cotton yarn. SEIPL has its registered
office in Mumbai and is promoted by the Varma family. Prior to
2014, the company was operating by the name of Amanvir Trading Pvt.
Ltd.


SHIV RICE: CARE Assigns B+ Rating to INR5cr LT Loan
---------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Shiv
Rice and General Mills (SRGM), as:

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

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of SRGM is constrained
by its modest scale of operations along with low profitability
margins, leveraged capital structure, weak debt coverage indicators
and working capital intensive nature of operations. The rating is
further constrained by raw material price fluctuation risk, foreign
exchange fluctuation risk, fragmented and competitive nature of
industry and partnership nature of constitution. The rating,
however, derives strength from experienced partners and favorable
location of operations.

Going forward, the ability of the firm to scale up the operations
and improve its profitability margins and overall solvency position
shall be the key rating sensitivity.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced partners in the agro processing industry and long track
record of operations: SRGM was established in 1986 as a partnership
firm and is currently being managed by Mr. Krishan Pal, Mr. Rajiv
Bharti and Mr. Sandeep Bharti. The partners have an industry
experience ranging between 4 years to 4 decades which they have
gained through SRGM and other regional entities. The long track
record of operations has led to management's better understanding
of the market and establishment of strong relationships with
suppliers as well as customers.

Favorable location of plant: SRGM's manufacturing unit is located
in Karnal, Haryana. The area is one of the hubs for paddy/rice,
leading to its easy availability. The unit is also in proximity to
the grain market resulting in procurement at competitive rates. The
presence of SRGM in the vicinity of paddy producing regions gives
it an advantage over competitors operating elsewhere in terms of
easy availability of the raw material as well as favorable pricing
terms.

Key Rating Weaknesses

Modest scale of operations along with low profitability margins:
The scale of operations of the firm remained modest marked by Total
operating income of INR68.05 crore in FY18 (refers to the period
from April 1 to March 31) and net worth base of INR3.75 crore as on
March 31, 2018. The GCA of the firm also remained low at INR0.29
crore in FY18. Though the TOI of the firm increased from INR20.82
crore in FY16 to INR68.05 crore in FY18 at a CAGR of 80.79% due to
increase in sales of traded goods as well as processed goods,
however, the same continues to remain modest. The modest scale of
operations limits the financial flexibility of the firm in times of
stress and deprives it of scale benefits. Further, the firm
achieved a total operating income of INR35.08 crore in 9MFY19
(Provisional).

The profitability margins of the firm also remained low marked by
PBILDT margin and PAT margin of 1.80% and 0.02% respectively in
FY18. The PBILDT margin of the firm moderated from 5.08% in FY17 to
1.80% in FY18 owing to increase in raw material costs which could
not be transferred to customers. Consequently, PAT margin also
declined from 0.03% in FY17 to 0.02% in FY18. Further, the PBILDT
and PAT margin of the firm stood at 3.08% and 0.11% respectively in
9MFY19 (Provisional).

Leveraged capital structure and weak debt coverage indicators:
The capital structure of the firm remained leveraged marked by
overall gearing ratio of 2.34x as on March 31, 2018. The same
improved from 4.58x as on March 31, 2017 mainly due to lower
utilization of working capital limits as on last balance sheet date
as compared to previous year coupled with infusion of funds in the
form of capital amounting to INR1.22 crore in FY18. Furthermore,
the overall gearing ratio of the firm improved and stood at 1.89x
as on December 31, 2018.  The debt coverage indicators of the firm
remained weak marked by interest coverage ratio of 1.30x in FY18
and total debt to GCA ratio of 30.78x for FY18. (PY:1.29x and
35.13x respectively).  

Weal liquidity position: The operating cycle of the firm stood at
57 days for FY18 (PY: 120 days). The firm is required to maintain
adequate inventory of raw material and finished goods to ensure
smooth execution process and to meet customers demand on time which
resulted in average inventory period of 75 days for FY18 (PY: 153
days). The same improved as compared to previous year due to better
management of raw material inventory. Furthermore, the firm
provides credit period of around one month to its customers.
However, timely realization from customers resulted in average
collection period of 5 days for FY18 (PY: 34 days). SRGM procures
raw materials with average payable period of around 2 months.
However, timely payment to creditors to avail cash discount
resulted into average creditor period of 23 days for FY18. (PY: 67
days). The current ratio stood moderate at 1.84x as on March 31,
2018 however, quick ratio stood weak at 0.27x as on March 31, 2018.
The cash and bank balance stood at INR0.28 crore as on
March 31, 2018. Susceptibility to fluctuation in raw material
prices and monsoon dependent operations Agro-based industry is
characterized by its seasonality, due to its dependence on raw
materials whose availability is affected directly by the vagaries
of nature. The price of rice moves in tandem with the prices of
paddy.

Availability and prices of agro commodities are highly dependent on
the climatic conditions. Adverse climatic conditions can affect
their availability and leads to volatility in raw material prices.
Any sudden spurt in raw material prices may not be passed on to
customers completely owing to firm's presence in highly competitive
industry Foreign currency fluctuation risk The income from exports
constituted approx. 25% of the total income in FY18 while the raw
material procurement is done completely from the domestic market,
thereby exposing the firm to risks associated with adverse
fluctuations in the foreign currency. With cash outlay for sales in
domestic currency & chunk of sales realization in foreign currency
and in the absence of any hedging mechanism, the company is exposed
to the fluctuation in exchange rates.

Partnership nature of constitution: SRGM's constitution as a
partnership firm has the inherent risk of possibility of withdrawal
of the partners' capital at the time of personal contingency and
firm being dissolved upon the death/retirement/insolvency of
partners.

Fragmented nature of industry coupled with high level of government
regulation: The commodity nature of the product makes the industry
highly fragmented with numerous players operating in the
unorganized sector with very less product differentiation. There
are several small scale operators which are not into end-to-end
processing of rice from paddy, instead they merely complete a small
fraction of processing and dispose-off semi-processed rice to other
big rice millers for further processing. Furthermore, the
concentration of rice millers around the paddy growing regions
makes the business intensely competitive. The raw material (paddy)
prices are regulated by

Shiv Rice and General Mills was established as a partnership firm
in 1986 and it is currently being managed by Mr. Krishan Pal, Mr.
Rajiv Bharti and Mr. Sandeep Bharti. The firm is engaged in
processing of paddy at its manufacturing facility located in
Karnal, Haryana with an installed capacity of 57600 Tonnes of paddy
per annum as on October 31, 2018. It is also engaged in trading of
rice (income from trading constituted 40% of the revenue in FY18).


SHREE VENKATESHWARA: CARE Lowers Rating on INR5.95cr Loan to B-
---------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Venkateshwara Food Industries (SVFI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       5.95       CARE B-; Stable Revised from
   Facilities                      CARE B; Stable

Detailed Rationale & Key Rating Drivers

The revision in rating assigned to the bank facilities of SVFI
takes into account the small scale of operations of entity with
cash loss registered by it over the past three years ended FY18
(refers to the period April 1 to March 31), leveraged capital
structure and weak debt coverage indicators. The rating further
remains constrained due to susceptibility of margins to fluctuation
in raw material prices, its presence in highly fragmented and
competitive food processing industry and partnership nature of its
constitution.  The rating however, continues to derive strength
from the extensive industry experience of the partners in the
industry and diversified customer base.

The ability of the entity to increase its scale of operations with
improvement in profitability margins, efficiently manage its
working capital requirements and strengthen the capital structure
are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations along with losses registered: The scale
of operations of SVAI remained small with total operating income of
INR15.72 crore and capital employed of INR8.83 crore as on March
31, 2018. The small scale of operations of entity limits its
financial flexibility and deprives it of scale benefits. Further
the entity has registered cash loss since the past three years
ending in FY18.

Leveraged capital structure and weak debt coverage indicator:
Capital structure of the SVAI has remained leveraged with high debt
profile as against low networth base. Furthermore, owing to high
dependence on debt and low profitability, the debt coverage
indicators continued to remain weak.

Presence in the highly competitive and fragmented industry: The
food processing industry in India is characterized by a high degree
of competition, resulting from high fragmentation and presence of a
large number of unorganized players. In order to protect their
markets, new entrants face very high competition from existing
players.

Susceptibility of margin to fluctuation in raw material prices: The
major raw material required by the firm for namkeen is raw frames,
edible oil, pulses and spices. The prices of these raw materials
are fluctuating in nature due to seasonal nature and various
government policies regarding the prices.

Partnership nature of constitution: Being a partnership firm, SVFI
is exposed to the risk of withdrawal of capital by partners due to
personal exigencies, dissolution of firm due to retirement or death
of any partner and restricted financial flexibility due to
inability to explore cheaper sources of finance leading to limited
growth potential.

Key Rating Strengths

Experienced promoters in diverse industries: The partners in the
firm, Mr. Rajendra Malu and Mr. Gourav Malu have an experience of
more than two decades in various industries through group entities.
SVFI is a part of the Malu Group having presence in the hospitality
industry, renewable industry, real estate and agro commodity based
business. The vast experience of promoters is likely to benefit
entity in long run.

Diversified customer base: The customer profile of the firm is well
diversified, with the top three customers contributing to
approximately 25% of the total operating income in FY18.

Kolhapur-based, SVFI is a partnership concern established in the
year 2010. However, operations commenced from the month of October,
2014. The firm is engaged in the manufacturing and processing of
Namkeen, salted potato chips, kolhapuri bhadang, moong dal and
salted chips under the brand name 'Om Namo Namkeen'. SVFI is a part
of the R B Malu Group having presence in the hospitality industry,
renewable industry, real estate and agro based business through its
various group concerns.


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

The instrument-wise rating actions are:

-- INR43.80 mil. Term loan due on March 2020 migrated to non-
     cooperating category with IND BB (ISSUER NOT COOPERATING)
    rating; and

-- INR200.0 mil. Fund-based working capital facilities migrated
     to non-cooperating category with IND BB (ISSUER NOT
     COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 16, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Shrini Softex India manufactures ring spun combed yarn, carded
yarn, compact and double yarn in the count ranges of Ne 30/1-Ne
50/1.


SIKKA INFRASTRUCTURE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: M/s Sikka Infrastructure Pvt. Ltd.
        C-60, Sikka House Vikas Marg
        Preet Vihar, New Delhi 110092

Insolvency Commencement Date: January 23, 2019

Court: National Company Law Tribunal, Delhi Bench

Estimated date of closure of
insolvency resolution process: July 22, 2019

Insolvency professional: Mr. Anup Kumar

Interim Resolution
Professional:            Mr. Anup Kumar
                         Ch. No. 734, Lawyers Chamber Block
                         Western Wing, Tis Hazari Court
                         Delhi 110054
                         E-mail: sachanlawanalyst@gmail.com
                                 irp.sikka@gmail.com

Classes of creditors:    Allottees under a Real Estate Project
                         under section 5 (8) (f) of the Insolvency
                         and Bankruptcy Code, 2016

Insolvency
Professionals
Representative of
Creditors in a class:    Mr. Prabhat Ranjan Singh
                         119, C.K. Daphtary Block
                         Supreme Court of India
                         Tilak Lane, New Delhi 110001

                         Mr. Kamal Agarwal
                         487/27, School Road
                         Near Peeragarhi Metro Station
                         New Delhi 110087

                         Mr. Dinesh Kumar Gupta
                         B-1/26, Sector-18
                         Noida 201301

Last date for
submission of claims:    February 9, 2019


SRI LAXMI VENKATA: CARE Moves B on INR6cr Debt to Not Cooperating
-----------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Sri
Laxmi Venkata Ramana Parboiled Rice Industry (SLVPRI) to Issuer Not
Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       6.00       CARE B+; Stable, Issuer not
   Facilities                      cooperating, based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SLVPRI to monitor the rating
vide e-mail communications/letters dated September 10, 2018,
October 23, 2018, November 15, 2018, January 14, 2019, January 18,
2019 and numerous phone calls. However, despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the rating. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of publicly available
information which however, in CARE's opinion is not sufficient to
arrive at fair rating. The rating on Sri Laxmi Venkata Ramana
Parboiled Rice Industry's 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.

Detailed description of the key rating drivers

At the time of last rating on February 21, 2018 the following were
the rating strengths and weaknesses:

Key Rating Weakness

Small scale of operations with partnership nature of constitution:
Despite being in business since 1999, SLVPRI scale of operations
continued to remain small marked by total operating income of Rs
16.89 crore for the period ending on FY17 and moderate net worth
base of Rs 1.72 core as on March 31, 2017. The small scale limits
the firm's financial flexibility in times of stress and deprives it
from scale benefits. SLVPRI, being a partnership firm, is exposed
to inherent risk of the partner's capital being withdrawn at time
of personal contingency and firm being dissolved upon death of
partners. During the year ending on March 31, 2016, the partners
have withdrawn capital to the extent of Rs 0.07 crore. However, the
same amount has been infused again by the partners into the
business during the year ending on March 31, 2017. Moreover,
partnership firm business has restricted avenues to raise capital
which could prove a hindrance to its growth.

Working capital intensive nature of operations due to seasonal
availability of paddy: Paddy in India is harvested mainly at the
end of two major agricultural seasons Kharif (June to September)
and Rabi (November to April). The millers have to stock enough
paddy by the end of each season as the price and quality of paddy
is better during the harvesting season. During this time, the
working capital requirements of the rice millers are generally on
the higher side. On account of the same, working capital limits
have been utilized upto 90% over the last 12 months ended
December 31, 2017.

Monsoon dependent operations and high level of government
regulation: SLVPRI operations are dependent on agro-climatic
conditions and may get adversely impacted in case of weak monsoon
or poor crop quality. The rice industry is highly regulated by the
government as it is seen as an important sector which could affect
the food security of the country. The sale of rice in the open
market is also regulated by the government through levy quota and
fixed prices. Hence, the firm is exposed to the risk associated
with fluctuation in price of rice.

Fragmented nature of industry and low entry barriers: The rice
milling business requires limited quantum of investment in
machinery, however, has high working capital needs.  Further, rice
milling is not very technology intensive and as a consequence the
industry is highly fragmented with large number of players
operating in the organized and unorganized segments. The high level
of competition has ensured limiting bargaining power, as a
consequence of which rice mills are operating at low to moderate
profitability margins.

Key Rating Strengths

Experienced promoters in rice industry: The firm has long track
record of over a decade. Mr T Venkateswara Rao is the managing
partner of the firm. He along with the other partners of the firm
have over a decade's experience in the rice milling industry. Due
to long term presence in the market; the partners have established
relations with its customers and suppliers.

Healthy demand outlook for rice: Rice is consumed in large quantity
in India which provides favorable opportunity for the rice millers
and thus the demand is expected to remain healthy over medium to
long term. India is the second largest producer of rice in the
world after China and the largest producer and exporter of basmati
rice in the world. With growing consumer class and increasing
disposable incomes, demand for premium rice products is on the rise
in the domestic market. Demand for non-basmati segment is primarily
domestic market driven in India. Initiatives taken by government to
increase paddy and better monsoon conditions will be the key
factors which will boost the supply of rice to the rice processing
units. Rice being the staple food for almost 65% of the population
in India, it has a stable domestic demand outlook.

Financial risk profile marked by increasing operating income,
profitability margins and moderate capital structure: The total
operating income of SLVPRI dropped from Rs 31.49 crore in FY15 to
Rs 16.51 crore in FY16 due to decrease in yield of paddy. However,
it improved to Rs 16.89 crore in FY17 on back of increase in yield
and sales of rice and bran.  The PBILDT margin of SLVPRI has been
increasing year-on-year from 1.85% in FY15 to 3.64% in FY17. During
FY16, despite a fall in the operating income, the profit margins
improved as the firm reduced its other expenses like RD cess,
printing and stationery, travel expenses etc. Furthermore, the PAT
margin of the firm has also been increasing year-on-year from 0.17%
in FY15 to 0.30% in FY17 due to increasing PBILDT in absolute terms
resulting in absorption of financial expenses and depreciation
provision during the review period. The overall gearing of the firm
improved and stood moderate at 1.68x as on March 31, 2017 as
compared to 2.59x as on March 31, 2016 due to lower working capital
utilizations. The debt profile of the firm as on March 31, 2017
consists of only working capital borrowings of Rs 2.88 crore as
against a net worth of Rs 1.72 crore. The TD/GCA, despite
improvement in FY17 stood weak standing at 15.73x as compared to
21.65x in FY16 due to decrease in total debt levels despite a
decline in gross cash accruals. The other solvency ratios, like
Total Debt/PBILDT and Total debt/Cash Flow from Operations stood
moderate at 4.68x and 1.08x respectively during FY17 as compared to
7.78x and -1.44x respectively during FY16.

The interest coverage ratio declined and stood weak at 1.49x in
FY17 as compared to 1.65x during FY16 due to increase in interest
costs and bank charges on back of increased working capital
utilisation during the year in FY17.

Kodad based Sri Laxmi Venkataramana Parboiled Rice Industry
(SLVPRI), a partnership firm, was established in 1999 by Mr T
Venkateswara Rao, Mr G Ganapathi Rao, Mr P Koteswara Rao, Mrs P
Renuka Devi, Mr Y Narasimha Rao, Mrs V Vijaya Kumari, Mr K
Satyanarayana, Mrs A Nagamani, and Mr K Kanakaiah. The partnership
was however, reconstituted in 2005 after demise of Mr K Kanakaiah
by including Mrs K Pushpalatha. The other partners continued the
partnership under same name and style. The mill is located in
Suryapet district of Telangana. The firm is involved in hulling of
paddy, converting of paddy into rice, and bran with a total
installed capacity of approximately 55 tons per day. SLVPRI sells
its products (rice and bran) to the final customers through brokers
as well as direct channels in the states of Telangana, Kerala,
Karnataka and Maharashtra. The firm has about 80 employees working
in the mill. Currently, Mr T Venkateswara Rao manages the day to
day operations of the firm.


SRI MURARI: CARE Migrates B+ on INR15cr Debt to Non-Cooperating
---------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Sri
Murari Pavan Agrotech (SMPA) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank      15.00       CARE B+;Stable; Issuer not
   Facilities                      cooperating; Based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SMPA to monitor the rating
vide e-mail communications/letters dated October 3, 2018,
January 8, 2019, January 14, 2019 and January 18, 2019 and numerous
phone calls. However, despite CARE's repeated requests, the firm
has not provided the requisite information for monitoring the
rating. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of best available information which
however, in CARE's opinion is not sufficient to arrive at fair
rating. The rating on Sri Murari Pavan Agrotech's 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.

Detailed description of the key rating drivers

At the time of last rating on January 24, 2018, the following were
the rating strengths and weaknesses:

Key Rating Weakness

Short track record with low networth base: SMPA started its
commercial operations from 2016. Hence, it has a short track record
of operations. Furthermore, the networth of the firm stood low at
INR2.99 crore as on March 31, 2017 as compared to other peers in
the industry.

Thin and declining profitability margins: The profitability margins
of the firm have been declining during review period. The PBILDT
margin declined from 2.03% in FY16 to 1.95% in FY16 due to thin
margin associated with sales of cotton lint and seeds along with
under absorption of overheads on account of initial years of
operations. Furthermore, PAT margin of the firm remained thin and
stood at 0.14% in FY17 due to increased finance charges.

Leveraged capital structure and weak debt coverage indicators
during review period: The capital structure of the firm though
improved still remained leveraged during the review period. The
debt equity ratio of the firm improved from 3.09x as on March 31,
2016 to 0.10x as on March 31, 2017 on account of repayment of term
loan obligations and remained comfortable. The firm primarily
depends on working capital borrowings for its day to day
operations. The average utilization of the cash credit facility
remained 60% during the review period to support the increasing
scale of operations. The overall gearing ratio of the firm, though
marginally improved from 5.34x as on March 31, 2016 to 4.21x as on
March 31, 2017, remained leveraged.  The debt coverage indicators
of the firm remained weak marked by total debt/GCA of the firm
which deteriorated from 13.00x in FY16 to 17.91x in FY17 due to low
cash accruals and higher outstanding balance of working capital
facility as on account closing date. The PBILDT interest coverage
ratio stood at 1.63x in FY17 compared to 1.75x in FY16 on account
of increase in the interest costs.

Highly fragmented industry with intense competition from large
number of player: The cotton industry is highly fragmented in
nature with several organized and unorganized players. Prices of
raw cotton are highly volatile in nature and depend upon the
factors like area under cultivation, crop yield, international
demand-supply scenario, export quota decided by the government and
inventory carry forward of the previous year. The cotton processing
operators procure raw materials in bulk quantities to avail
discount from suppliers to mitigate the seasonality associated with
availability of cotton resulting in higher inventory holding
period. Further, the profitability margins of the firm are
susceptible to fluctuation in raw material prices.

Constitution as partnership firm: Constitution as a partnership
firm has the inherent risk of possibility of withdrawal of the
partner's capital at the time of personal contingency which can
adversely affect its capital structure.  Furthermore, partnership
firms have restricted access to external borrowings as credit
worthiness of the partners would be key factors affecting credit
decision for the lenders.

Key Rating Strengths

Experienced partners of the firm for more than two decades in
cotton ginning industry: SMPA is promoted by Mr. Srihari and his
family members. Mr. Srihari has more than two decades of experience
in cotton industry. The other partners Mr. Chakravarthi, Mr.
Srinath and Mr. Shrikanth are also actively involved in the day to
day operations of the firm. Due to experience of the partners, the
firm has good relation with customer and supplier.

Location advantage: SMPA is located in one the major cotton growing
areas in Andhra Pradesh. Availability of raw material is not
expected to be an issue as the firm procures raw material (raw
cotton) from the farmers located in and around Nandyal. SMPA enjoys
proximity to the cotton producing belt of Andhra Pradesh and
Telangana which results in ease of access to raw material with low
transportation cost.

Increasing total operating income: The total operating income of
the firm increased from INR88.38 crore in FY16 to INR98.99 crore in
FY17 due to high demand of cotton lint by its existing customers
along with addition of new customers. The firm generates its 80% of
income from the sales of cotton lint and the remaining 20% from the
sales of cotton seed. During 9MFY18, the firm has achieved total
operating income of INR 67 crore.

Satisfactory operating cycle: The operating cycle of the firm stood
satisfactory at 34 days in FY17. The firm receives its payments
from its customers within 15-20 days and makes the payment to its
suppliers within 15 days. Furthermore, the firm maintains the
average inventory of 20-30 days to meet the customer requirement on
time. Cash credit facility utilization of the firm was 60% in the
last 12 months ended December 31, 2017.

Sri Murari Pavan Agrotech (SMPA) was established in 2015 as a
partnership firm and promoted by Mr. Srihari and his family
members. The firm is engaged in manufacturing of cotton lint and
seeds. The partners of the firm are engaged in same line of
business since 1990 as they were operating cotton ginning business
under sole proprietorship as "Murari Agro Industries" and "Krishna
Traders". Subsequently, these proprietor firms were merged and
started the partnership firm with the name of "Sri
Murari Pavan Agrotech". The commercial operations started from
April 2016. The manufacturing unit is spread across 2.52 acres
located at Nandayal, Andhra Pradesh. SMPA purchases raw material
from local farmers located in and around Nandayal. The firm sells
the cotton lint and seeds to the customers with Andhra Pradesh and
Telangana.


SUNBEAM DEALERS: CARE Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Sunbeam
Dealers Private Limited (SDPL) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       10.00      CARE B+; Stable; Issuer not
   Facilities                      cooperating; Based on best
                                   available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SDPL to monitor the rating
vide e-mail communications/letters dated October 4, 2018,
November 8, 2018, November 14, 2018, January 14, 2019 and numerous
phone calls. However, despite CARE's repeated requests, the company
has not provided the requisite information for monitoring the
rating. In line with the extant SEBI guidelines, CARE has reviewed
the rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on SDPL's 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.

The rating takes into account its small scale of operation with
thin profitability margin, susceptibility to fluctuation in traded
products price, working capital intensive nature of operations,
leveraged capital structure and debt coverage indicators and
intensely competitive industry. The rating, however, derives
strength from its experienced promoter with satisfactory track
record of operations.

Detailed description of the key rating drivers

At the time of last rating in January 19, 2018 the following were
the rating strengths and weaknesses:

Key Rating Weaknesses

Small scale of operations with thin profitability margins: The
scale of operations of SDPL remained small marked by total
operating income of INR40.64 crore (INR22.05 crore in FY16) with a
PAT of INR0.08 crore (PAT of INR0.07 crore in FY16) in FY17.
Further, the net worth base and total capital employed was low at
INR3.20 crore and INR13.08 crore, respectively, as on March 31,
2017. The company has achieved revenue of around INR22.52 crore
during 9MFY18. The profitability margins of the company remained
low mainly due to its trading nature of operations marked by PBILDT
margin of 2.37% and PAT margin of 0.19% in FY17. Moreover, the
company has reported GCA of INR0.11 crore in FY17.

Susceptibility to fluctuation in traded products price: The prices
of traded goods (i.e. Cotton, Synthetic and Grey Fabrics) are
highly volatile. The cost of traded goods constitutes major cost
driver for the company which accounts for around 98% of the total
cost of sales. Accordingly, any volatility in the prices of the
traded goods is likely to have an impact on the profitability of
the company.

Working capital intensive nature of operation: The operations of
the company remained working capital intensive in nature marked by
its high inventory period. Accordingly the average utilization of
working capital limit was on the higher side at 95% during last 12
months ending on December 31, 2017.

Leveraged capital structure and debt coverage indicators: The
capital structure of the company remained leveraged owing to its
working capital intensive nature of operations marked by the
overall gearing of 3.09x as on March 31, 2017. The debt protection
metrics of the company remained weak marked by interest coverage of
1.20x and total debt to GCA of 87.72x in FY17.

Intensely competitive industry: Trading industry is a very
fragmented and competitive space with presence of huge small
players operating in the same region due to low capital
requirement. In such a competitive scenario smaller companies like
SDPL in general are more vulnerable on account of its limited
pricing flexibility.

Key Rating Strengths

Experienced promoters with satisfactory track record of operations:
SDPL started its operations from 2013. Thus, it has satisfactory
operational track record. Furthermore, the promoters Mr. Amit
Sarawgi (aged about 34 years), having around a decade of experience
in this line of business, looks after the day to day operations of
the company. He is supported by other director Ms. Swati Sarawgi
along with a team of experienced professional.

Ranchi based Sunbeam Dealers Private Limited (SDPL) was
incorporated in August 2013 by the Sarawgi family to initiate a
trading business of fabrics. Since its inception, the company has
been engaged in trading of cotton, synthetic and grey fabrics.


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

The instrument-wise rating actions are:

-- INR75 mil. Fund-based working capital limits migrated to non-
     cooperating category with IND BB- (ISSUER NOT COOPERATING)
     rating;

-- INR150 mil. Term loans due on June 2023 migrated to non-
     cooperating category with IND BB- (ISSUER NOT COOPERATING)
     rating; and

-- INR25 mil. Non-fund-based working capital limits migrated to
     non-cooperating category with IND A4+ (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 14, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated on June 3, 2015, Super Hygiene Products manufactures
baby diapers and sanitary napkins.

TATA STEEL: Moody's Hikes CFR to Ba2 & Alters Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service has upgraded Tata Steel Ltd.'s corporate
family rating (CFR) to Ba2 from Ba3.

The outlook has been changed to stable from positive.

RATINGS RATIONALE

"The upgrade of Tata Steel's CFR reflects the sustained improvement
in the company's credit profile, stemming principally from strong
operating efficiencies and vertical integration, as well as stable
demand and price conditions in its major market," says Kaustubh
Chaubal, a Moody's Vice President and Senior Credit Officer.

Tata Steel's CFR is supported by its significant, diversified and
growing operating base and its globally cost competitive steel
operations in India, with the latter being a function of its
ownership of key raw materials.

These factors, alongside favorable industry dynamics in its key
operating market in India have translated into the company's
sustained track record of improving credit metrics. Tata Steel's
leverage, as measured by adjusted debt/EBITDA, is on an improving
trajectory and will fall below 3.5x by March 2020 from 4.1x at
March 2018 and 3.9x at March 2019. EBIT/interest coverage will
remain above 3.0x.

Tata Steel's key market is still India, which accounts for 57% of
its global steel volumes sold, 54% of consolidated revenues, and
85% of consolidated EBITDA; a result of the strong operating
environment and the company's backward integration into producing
its key own raw materials of iron ore and coking coal. During the
first nine months of the fiscal year ending March 31, 2018, Tata
Steel's Indian operations generate EBITDA/ton of INR17,270 ($240);
more than three times the profitability of its European
operations.

Consequently, strong growth prospects in India augur well for Tata
Steel. And, the successful integration of Bhushan Steel Ltd.'s
(Bhushan) steel assets in 2018 and the proposed acquisition of the
steel business of Usha Martin have further cemented Tata Steel's
business profile.

Moody's expects India's steel consumption to grow at 5.5%-6.0%
annually over the next one-two years, supported by the country's
strong domestic demand, in turn propelled by the government of
India's (Baa2 stable) spending on infrastructure projects and good
prospects in the automotive industry. At the same time,
consolidation in India's steel sector and limited new capacity
commissioning over the 18-24 months will keep industry utilization
levels in check and help pricing discipline.

Tata Steel's CFR continues to incorporate a one-notch uplift,
reflecting Moody's expectation of timely, ongoing and extraordinary
support from its parent, Tata Sons Ltd.

The stable outlook reflects Moody's expectation that Tata Steel's
strong operating performance will translate into a sustained
improvement in credit metrics.

The stable outlook also incorporates Moody's expectation that Tata
Steel will remain selective in its acquisitions, funding them with
a prudent mix of debt and equity and allowing only a temporary
spike in adjusted debt/EBITDA leverage.

Moody's could upgrade the CFR if the company maintains adjusted
debt/EBITDA below 3.75x and EBIT/interest coverage in excess of
3.0x, both on a sustained basis.

A downgrade of the rating is unlikely in the near term, given
today's rating action. Nevertheless, a sharp shift in industry
conditions that triggers declining sales volumes and dents pricing
and profitability would pressure the rating. Specific metrics
indicative of downward rating pressure include adjusted debt/EBITDA
in excess of 4.5x or EBIT/interest coverage below 2.75x.

Negative rating pressure could also build if the company undertakes
any large debt financed acquisition without an immediate and
meaningful counterbalancing effect on earnings resulting in a
sustained increase in leverage. Execution risks pertaining to a
timely and seamless integration of the acquired businesses could
also pressure the rating.

The principal methodology used in this rating was Steel Industry
published in September 2017.

Tata Steel Ltd. is the world's 10th largest steel company by
production capacity; achieving 25.1 mt of crude steel production in
2017. The company operates geographically diversified plants across
26 countries. At March 31, 2018, its nameplate capacity totalled
27.5 mtpa, of which, 12.7 mt was in India, 12.4 mt in Europe and
2.4 mt in Southeast Asia.

Tata Steel's Indian business also includes the 5.6 mt operations of
Bhushan Steel Ltd., which was acquired in May 2018, and the
acquisition of one mt steel of Usha Martin Ltd.'s steel business,
announced in September 2018.

In fiscal 2018 (the year ended March 31, 2018), Tata Steel reported
consolidated revenues of INR1.3 trillion and consolidated EBITDA of
INR220 billion. For the same period, the company's European
operations, housed under Tata Steel UK Holdings, reported revenues
of INR600 billion and EBITDA of INR38 billion.


UNIK TRADERS: CRISIL Reaffirms 'B' Rating on INR20cr Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B/Stable' rating on the bank loan
facilities of Unik Traders (UT).

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          20       CRISIL B/Stable (Reaffirmed)

The rating continues to reflect UT's weak financial risk profile
marked by small net worth, high TOLTNW ratio, and weak debt
protection metrics. The rating also factors in UT's exposure to
risks relating to modest and fluctuating scale of operations and
working capital requirements, and susceptibility to volatility in
the prices of its traded goods and in the value of the Indian
rupee. These rating weaknesses are partially offset by the benefits
that UT derives from its promoter's extensive experience in the
spice trading business and his funding support.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: UT's weak financial risk profile is
marked by small net worth, high TOLTNW ratio, and weak debt
protection metrics. The firm has reported a small net worth of
about INR1.76 cr as on March 31, 2018 due to withdrawals of INR2.95
cr. The net worth is expected to remain small over the medium term
on account of small scale of operations and moderate operating
margin. Consequent to low net worth and significant working capital
requirements, the firm has to rely primarily on debt to fund
working capital requirements, resulting in high TOLTNW ratio of 37
times as on March 31, 2018. The firm has reported interest coverage
ratio of 1.58 times for 2017 - 18. The risk coverage ratio is
expected to remain low over the medium term on account of low
accruals. CRISIL believes that UT's financial risk profile will
remain weak over the medium term, marked by small net worth, high
TOLTNW ratio, and weak debt protection metrics.

* Modest and fluctuating scale of operations and
working-capital-intensive operations: UT's scale of operations is
modest, as reflected in its revenue of INR75.21 cr during 2017 -
18. The revenue is modest because of increasing industry
competition, demand variation, and dependence on imports, and, in
turn, on global production of spices. The firm's operations are
working-capital-intensive, as reflected in its gross current assets
(GCAs) of around 321 days as on March 31, 2018; the GCAs are
expected to moderate over the medium term.

* Susceptibility to volatility in prices of traded goods and value
of Indian rupee: UT has moderate operating margin despite its
trading nature of business. The operating margin ranged from 7.1 to
7.6 per cent over the three years ending March 31, 2018. CRISIL
believes that UT's margins will be sustained over the medium term
but will be susceptible to volatility in price of traded goods as
those contribute to about 87 ' 90% of the total costs.

Strength

* Promoter's extensive experience in spice trading business and
funding support: UT's proprietor, Mr. Hanif Thara, has been engaged
in the spice trading business since 1992. He set up UT for trading
in spices with business operations confined to the domestic market.
UT's promoter has supported the firm's business by extending
funding support in the form of unsecured loans. The promoter's
ability to extend funding support to the firm enhances the firm's
liquidity.

Liquidity

* High bank limit utilization: Bank limit utilization is high for
the past twelve months ended December, 2018. CRISIL believes that
bank limit utilization is expected to remain high on account of
high working capital requirement.

* Cash accrual sufficient against no debt obligation: Cash accrual
are expected to be around INR30 ' 60 lacs against which the company
has no repayment obligations. It will be used for cushioning the
liquidity of the company.

* Modest current ratio: Current ratio was modest at 1.07 times as
on March 31, 2018

* Support from promoters in form of infusion of unsecured loan: The
partners are likely to extend support in the form of equity and
unsecured loans to the firm to meet its working capital
requirements.

Outlook: Stable

CRISIL believes that UT will continue to benefit over the medium
term from its promoter's extensive experience in the spice trading
business. The outlook may be revised to 'Positive' if the firm
improves its working capital cycle along with sustainable
improvement in its scale of operations and profitability, leading
to improved cash accruals and capital structure. Conversely, the
outlook may be revised to 'Negative' if the firm's financial risk
profile, particularly liquidity, deteriorates because of stretch in
working capital cycle, , or if there is pressure on the firm's cash
accruals, or withdrawal of funding support by the promoter.

Set up in 1992 as a partnership firm by Mr. Hanif Thara and his
friend, UT was later re-constituted as a proprietorship firm with
Mr. Thara as proprietor. The Bengaluru-based firm trades in spices
and dry fruits.


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

The instrument-wise rating actions are:

-- INR70 mil. Fund-based working capital limits migrated to non-
     cooperating category with IND B+ (ISSUER NOT COOPERATING)
     rating;

-- INR130 mil. Non-fund-based working capital limits migrated  to

     non-cooperating category with IND A4 (ISSUER NOT COOPERATING)

     rating; and

-- INR90 mil. Proposed fund-based working capital limits migrated

     to non-cooperating category with Provisional IND B+ (ISSUER
     NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 28, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in February 2004 at Berahampur, Odisha, United
Electricals & Engineering manufactures power and distribution
transformers.


UNNATI FORTUNE: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Unnati Fortune Holdings Limited

        Registered office:
        Tower No. 7-LL-02
        Common Wealth Games Village
        Delhi

        Principal office:
        B-117 Sector-67
        Noida 201301 UP

Insolvency Commencement Date: January 22, 2019

Court: National Company Law Tribunal, New Delhi, India Bench

Estimated date of closure of
insolvency resolution process: July 21, 2019

Insolvency professional: Mr. Rajiv Bajaj

Interim Resolution
Professional:            Mr. Rajiv Bajaj
                         4/180, Ground Floor
                         Back Side Subhash Nagar
                         New Delhi 110027 (New Delhi)
                         E-mail: rbajajip@gmail.com
                                 cirpunnati@gmail.com

Classes of creditors:    Class-I-Allottees under Real Estate
                         Project

Insolvency
Professionals
Representative of
Creditors in a class:     Mr. Vinod Kumar Chaurasia
                          A-756, Sector-2, Rohini
                          New Delhi 110085
                          E-mail: cavinodchaurasia@gmail.com

                          Mr. Pawan Kumar Goyal
                          304, D.R. Chambers
                          12/56, D.B. Gupta Road
                          Karol Bagh, Bagh
                          New Delhi 110005
                          ca.pawangoyal@gmail.com

                          Mr. Kamlesh Kumar Gupta
                          305, DR. Chambers
                          12/56, DB Gupta Road
                          Karol Bagh, New Delhi
                          E-mail: abomcx@yahoo.com

Last date for
submission of claims:    February 5, 2019


VIJAYKAMAL PROPERTIES: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Vijaykamal Properties Private Limited
        Registered office:
        76, Laxmi Palace, Mathuradas Road
        Kandivali West, Mumbai 400067

Insolvency Commencement Date: January 21, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 20, 2019
                               (180 days from commencement)

Insolvency professional: Deepa S Bahal

Interim Resolution
Professional:            Deepa S Bahal
                         78, 4th Floor, Mulji Jetha CHS Ltd
                         185/187 Princess Street
                         Mumbai 400002
                         E-mail: deepabahal.ip@gmail.com

Classes of creditors:    Class I – Allottees in a Real Estate
                         Project / Home buyers     

Insolvency
Professionals
Representative of
Creditors in a class:    Devendra Rameshchand Dhanesha
                         B7/2nd Floor, Skyland CHS Ltd
                         Admar Mutt Lane, S.V. Road
                         Andheri (West)
                         Mumbai 400058
                         E-mail: drdeven.irp@gmail.com

                         Nikhil Ashokkumar Bakliwal
                         2001 Mayur Tower, Chandavarkar Road
                         Near Indian Bank, Borivali (West)
                         Mumbai 400092
                         E-mail: Nikhil.81.bak@gmail.com

                         Mahesh R. Sureka
                         173 Udyog Bhavan Sonawala Road
                         Goregaon East
                         Mumbai 400063
                         E-mail: mahesh@mrsureka.com

Last date for
submission of claims:    February 4, 2019


XENIA ABODE: Insolvency Resolution Process Case Summary
-------------------------------------------------------
Debtor: M/s Xenia Abode Services Private Limited
        7/11, Defence Officers Colony
        Guindy, Chennai 600032

Insolvency Commencement Date: January 9, 2019

Court: National Company Law Tribunal, Madurai Bench

Estimated date of closure of
insolvency resolution process: July 8, 2019
                               (180 days from commencement)

Insolvency professional: Santhanam Selvaraj

Interim Resolution
Professional:            Santhanam Selvaraj
                         76, New No. 11-13/5 Tiruvalluvar Street
                         Alamalu Nagar, S. Alangulam, 2nd Stop
                         Madurai 625017, Tamil Nadu
                         E-mail: selvarajcanara@gmail.com

Last date for
submission of claims:    February 6, 2019


YES BANK: Moody's Alters Outlook on Ba1 Issuer Rating to Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed Yes Bank Limited's foreign
currency issuer rating of Ba1.

Moody's has also affirmed the bank's foreign and local currency
bank deposit ratings of Ba1/NP, foreign currency senior unsecured
MTN program rating of (P)Ba1, and Baseline Credit Assessment (BCA)
and adjusted BCA of ba2.

At the same time, Moody's has affirmed the bank's counterparty risk
assessment (CR Assessment) of Baa3(cr)/P-3(cr) and domestic and
foreign currency counterparty risk rating (CRR) of Baa3/P-3.

For the bank's IFSC Banking Unit Branch, Moody's has also affirmed
the foreign currency senior unsecured MTN program rating of (P)Ba1
and senior unsecured debt rating of Ba1.

In addition, Moody's has affirmed the IFSC Banking Unit Branch's CR
Assessment of Baa3(cr)/ P-3(cr), and domestic and foreign currency
CRR of Baa3/P-3.

Moody's has changed the outlook, where applicable, to stable from
negative.

RATINGS RATIONALE

The rating action takes into account recent developments including:
(1) the results of the Reserve Bank of India's (RBI) risk
assessment report (the so-called divergence report); and (2) Yes
Bank's stable financial performance. As a result, Moody's has
assessed that the downside risks to the bank's credit profile have
diminished. Moody's has therefore changed the bank's ratings
outlook to stable from negative, because such risks form the key
driver for the change in the outlook.

On February 13, 2019, Yes Bank announced that the RBI observed no
divergence in the bank's asset classification and provisioning. By
contrast, in the two fiscal years ended March 2017 and 2016, there
was significant divergence in the bank's reported asset quality
metrics when compared with the RBI's assessment of asset quality.

In late-January 2019, the bank appointed Mr. Ravneet Gill as its MD
and CEO, and completed the leadership transition from the bank's
founder and long-time MD and CEO, Mr. Rana Kapoor. The leadership
transition was at the directive of the RBI in September 2018 to
restrict Mr. Kapoor's term until January 31, 2019.

The bank's financial performance, including its asset quality,
profitability and funding and liquidity position remain stable.
Furthermore, its asset quality metrics and profitability are better
than similarly rated Indian banks. However, Yes Bank's high loan
concentration to corporate groups increases the risk of volatility
in the asset performance. In addition, Yes Bank's funding profile,
while improving, is weaker when compared to other rated banks in
India, as measured by its low current and savings account deposit
ratio and the dominance of corporate loans.

Moody's continues to maintain a negative adjustment for corporate
behavior in the bank's standalone credit profile or BCA. In Moody's
opinion, although Yes Bank's reported credit fundamentals remain
stable, the bank's aggressive growth strategy poses risks to its
financial performance. While the RBI did not identify any
divergence in the classification of asset quality for the year
ended March 2018, it did highlight "several other lapses and
regulatory breaches in various areas of the bank's functioning".

Moody's has also maintained its assumption of a moderate
probability of government support, reflecting the bank's modest but
rapidly growing franchise, and its relative importance to India's
banking system. This assumption results in a one-notch uplift to
the bank's deposits, senior unsecured debt, CRR and CRA from the
bank's preliminary rating assessment.

WHAT COULD MOVE THE RATING UP

Given the stable ratings outlook, Moody's is unlikely to upgrade
the bank's ratings during the outlook horizon of the next 12-18
months.

Nevertheless, Moody's could change the ratings outlook to positive
if (1) Yes Bank maintains its current asset quality profile; (2)
the bank strengthens its loss absorbing buffers by bringing its
capital ratios in line with similarly rated peers in India and
strengthens its loan loss reserves; and (3) the bank meaningfully
reduces concentration risk on the asset side and further improves
its liability profile.

WHAT COULD MOVE THE RATING DOWN

Moody's could downgrade Yes Bank's ratings if (1) there is a
sustained deterioration in impaired loans or loan loss reserves, or
if the rate of new nonperforming loan formation is significantly
higher than previously experienced; and/or (2) the bank's capital
ratios decline due to its inability to raise new capital.

The principal methodology used in these ratings was Banks published
in August 2018.

Yes Bank Limited is headquartered in Mumbai and reported total
assets of INR3.7 trillion ($52.3 billion) at 31 December 2018.




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

ORIENTAL GROUP: To Apply for Winding-Up After Talks Collapse
------------------------------------------------------------
The Business Times reports that Oriental Group Ltd is headed for
the chopping block, after talks with potential investors fell
through, according to an announcement on Feb. 20.

According to the report, the company said it will get ready to make
its winding-up application, after several rounds of discussions
failed to secure a deal that would have justified applying to
further extend its judicial management order.

Oriental Group has been under judicial management since 2017, after
an application was made by a creditor to the Singapore High Court,
BT relates.

BT relates that the High Court, at a hearing on Feb. 18, extended
the judicial management order from Feb. 28 to April 30 so that the
company would have enough time to file the necessary applications
to discharge the judicial management order and wind the company up,
the company has disclosed.

Along with certain directors and executives past and present,
Oriental Group was reprimanded in June 2018 by the Singapore
Exchange for misconduct over fundraising and unauthorised
transactions.

Trading in the company's shares is suspended, the report notes.

Oriental Group Ltd., together with its subsidiaries, engages in the
manufacture, procurement, and supply of metal products for use in
industrial and construction industries in China and Southeast Asia
region. It offers carbon steel products, such as flat and angle
bars, U-channel bars, tongued and grooved steel products, T- and
H-shaped bars, and bulb flat and tracked steel products; and
stainless steel products, including flanges, pipe fittings, round
bars, and seamless pipes, as well as related value-added services.
The company is also involved in the lodging and boarding houses
business.




===============
X X X X X X X X
===============

TURBO METALS: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Turbo Metals Private Limited

        Registered office:
        Survey No. 5/Guts 36, 39/A-7, 39/A-8-1
        Village Kadivali, Wada Manor Road
        Taluka-Wada, Palghar 421303

Insolvency Commencement Date: January 15, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 27, 2019
                               (180 days from commencement)

Insolvency professional: Shailesh Bhalchandra Desai

Interim Resolution
Professional:            Shailesh Bhalchandra Desai
                         Headway Resolution and Insolvency
                         Services Pvt. Ltd.
                         1006, Raheja Centre
                         Nariman Point
                         Mumbai 400021
                         Maharashtra
                         E-mail: ip10362.desai@gmail.com
                                 cirpturbo@gmail.com

Last date for
submission of claims:    February 11, 2019



                           *********


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.

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