TCRAP_Public/190424.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Wednesday, April 24, 2019, Vol. 22, No. 82

                           Headlines



A U S T R A L I A

CERES AGRICULTURAL: Goes Into Voluntary Administration
GUVERA LIMITED: First Creditors' Meeting Set for May 3
MAZS CORP: Second Creditors' Meeting Set for May 2
MZI RESOURCES: First Creditors' Meeting Set for May 1
RBT Holding: First Creditors' Meeting Set for May 1

RESULT BASED: Falls Into Administration Due to Large Tax Debt
S J WHITING: Second Creditors' Meeting Set for May 8
SMART SEATING: Second Creditors' Meeting Set for May 2


C H I N A

ANBANG INSURANCE: To Slash Registered Capital by a Third
DAGONG GLOBAL: State Firm Takes Over Credit Rating Agency
HNA: Denies Embezzlement Claims; Fights for Control of HK Airlines
REDCO PROPERTIES: S&P Rates New US Dollar Sr. Unsecured Notes 'B'
XINYUAN REAL: Fitch Rates $200MM Senior Unsecured Notes Final 'B'



I N D I A

ALAPATT FASHION: ICRA Lowers Rating on INR13.50cr Loan to D
ALAPATT JEWELLERS: ICRA Lowers Rating on INR22cr Loans to D
ALAPATT JEWELS: ICRA Reaffirms 'B' Rating on INR5.50cr LT Loan
AMR INDIA: CARE Reaffirms 'D' Rating on INR945.24cr Loans
ARKAY ENERGY: CARE Reaffirms D Rating on INR136.60cr Loans

AUTOLINE INDUSTRIES: CARE Reaffirms D Rating on INR144.91cr Loans
BIAX ELECTRIC: ICRA Migrates D Rating in Not Cooperating Category
CABLE CORPORATION: CARE Reaffirms C Rating on INR38.85cr Loan
COASTAL ENERGY: ICRA Maintains D Rating in Not Cooperating
DEEN DAYAL: CARE Keeps D Rating on INR11.49cr Loan

DELHI INTERNATIONAL: Moody's Affirms Ba2 CFR, Outlook Stable
FORTUNE'S SPARSH: ICRA Maintains D Rating in Not Cooperating
GANPATI ADVISORY: ICRA Keeps INR5cr Loan B+ Rating in Not Coop.
HAND IN HAND INDIA: ICRA Assigns 'B+' Rating to INR15cr Loan
HINDUSTAN CONSTRUCTION: CARE Reaffirms 'D' INR1607.53cr Loan Rating

IREO GRACE: CARE Migrates D Rating From Not Cooperating
JONAS PETRO: ICRA Maintains D Rating in Not Cooperating Category
KISAN MOULDINGS: CARE Reaffirms D Rating on INR300cr Loans
MANDHANA INDUSTRIES: CARE Migrates D Rating to Not Cooperating
MOON SYNDICATE: CARE Migrates D Rating to Not Cooperating Category

MULA AGRO: ICRA Reaffirms 'B+' Rating on INR1cr LT Loan
MURALIKRISHNA INFRACON: CARE Moves D Rating to Not Cooperating
PREET LAND: CARE Assigns 'D' Rating to INR9.50cr LT Loan
PREMDHARA AGRO: CARE Assigns B+ Rating to INR6.87cr Loan
PUNJ LLOYD: CARE Migrates D Rating to Not Cooperating Category

RANGA PARTICLE: Insolvency Resolution Process Case Summary
REGENCY GANGANI: ICRA Moves D Rating to Not Cooperating Category
REGENCY YAMUNA: ICRA Moves 'D' Rating to Not Cooperating Category
SHRIRAM TRANSPORT: Fitch Rates $500MM Sr. Sec. Notes Final 'BB+'
SINTEX PREFAB: CARE Lowers Rating on INR250cr NCD to 'C'

SKIPPERSEIL LIMITED: ICRA Hikes Rating on INR22.62cr Loan to BB-
SWASTIK POWER: ICRA Reaffirms 'D' Rating on INR38cr Term Loan
VIVIMED LABS: CARE Reaffirms 'D' Rating on INR266.93cr Loan


I N D O N E S I A

MEDCO ENERGI: Fitch Upgrades LT IDR to 'B+', Outlook Stable
MEDCO ENERGI: S&P Alters Outlook to Pos., Affirms 'B' ICR


S O U T H   K O R E A

ASIANA AIRLINES: To Receive US$1.4 Billion from Creditors
[*] SOUTH KOREA: Auditors Getting Tougher in Blessing for Investors

                           - - - - -


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

CERES AGRICULTURAL: Goes Into Voluntary Administration
------------------------------------------------------
Oberon Review reports that jobs have been lost in Oberon due to the
Ceres Agricultural Company going into voluntary administration,
according to its administrators, but others will not be affected.

Ceres, which operated one of Australia's largest integrated cattle
finishing and cropping enterprises before voluntary administrator
Grant Thornton was appointed on March 28, operated from leased
properties in Oberon, Moree and Warialda. The two leased properties
in Oberon were Mayfield and Ballyroe.

According to Oberon Review, a Grant Thornton spokesperson said
Mayfield as a farming operation "is a landholding held in a
separate entity".

"It currently has separate farming operations that are not part of
the Ceres voluntary administration," the report quotes the
spokesperson as saying.

"Ceres Ag did lease the Mayfield and Ballyroe properties in the
Southern Operations for cattle farming purposes.

"With respect to the employees of Ceres Ag that were based at
Mayfield and Ballyroe, some of those employees have continued with
separate entities involved with related party landholdings.

"Unfortunately, some of the employees were terminated on
appointment as the Ceres Ag operations ceased to trade and could
not financially support their employment."

In an internal memo sent to all staff from Ceres owner Garrick
Hawkins in late March, staff were told the current business was
unsustainable and Ceres would be closed, Oberon Review recalls.

"It is with a heavy heart that I have taken this action but there
was no practical choice given the performance of Ceres," Mr.
Hawkins wrote, Oberon Review relays.

"Over its life my family has invested many tens of millions of
dollars into the business, including directly and indirectly
approximately $20 million over the past 18 months. Clearly this is
unsustainable.

"I will not go into details as to why the results were so
disappointing but suffice it to say that the 100 year drought we
have experienced over recent times has not helped."

In regards to trade creditors, the Grant Thornton spokesperson said
the "payment of any amounts they are owed will depend on what the
administrators can recover from the asset base of Ceres Ag, which
is predominantly plant and equipment, or potentially the proposal
and acceptance of a deed of company arrangement".

"We will be seeking interested parties in proposing a deed to take
on certain assets that may be available from the administration,"
they said.

GUVERA LIMITED: First Creditors' Meeting Set for May 3
------------------------------------------------------
A first meeting of the creditors in the proceedings of Guvera
Limited will be held on May 3, 2019, at 11:00 a.m. at the offices
of Chartered Accountants Australia & New Zealand, at Level 18, 600
Bourke Street, in Melbourne, Victoria.

Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of Guvera Limited on April 18, 2019.

MAZS CORP: Second Creditors' Meeting Set for May 2
--------------------------------------------------
A second meeting of creditors in the proceedings of MAZS Corp Pty
Ltd has been set for May 2, 2019, at 10:15 a.m. at Apso Serviced
Offices, at St Kilda Rd Towers, 1 Queen Rd, 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 April 30, 2019, at 2:00 p.m.

Trent McMillen of MaC Insolvency was appointed as administrator of
MAZS Corp. on April 1, 2019.

MZI RESOURCES: First Creditors' Meeting Set for May 1
-----------------------------------------------------
A first meeting of the creditors in the proceedings of MZI
Resources Ltd will be held on May 1, 2019, at 11:00 a.m. at the
offices of Chartered Accountants Australia and New Zealand, at
Level 11, 2 Mill Street, in Perth, WA.

Robert Michael Kirman, Robert Conry Brauer and Jason Preston of
McGrathNicol were appointed as administrators of MZI Resources on
April 16, 2019.

RBT Holding: First Creditors' Meeting Set for May 1
---------------------------------------------------
A first meeting of the creditors in the proceedings of:

   -- RBT Holding Co Pty Ltd;
   -- RBT Members Pty Ltd;
   -- RBT Combined Services Pty Ltd;
   -- Result Based Training Australia Pty Ltd; and
   -- RBT Leases Pty Ltd

will be held on May 1, 2019, at 1:00 p.m. at the offices of Bayview
Eden Melbourne, 6 Queens Road, in Melbourne, Victoria.

Henry Peter McKenna of Hayes Advisory was appointed as
administrator of RBT Holding on April 16, 2019.

RESULT BASED: Falls Into Administration Due to Large Tax Debt
-------------------------------------------------------------
Matthew Elmas at SmartCompany reports that national fitness chain
Result Based Training (RBT) has appointed voluntary
administrators.

Founded by entrepreneur and business coach Travis 'TJ' Jones in
2011, the gym has 20 locations, including a presence in the US, and
about 85 employees.

According to SmartCompany, the gyms will continue to trade through
the administration, but Henry McKenna of Hayes Advisory said a
number of unprofitable locations will need to close in the coming
weeks.

"We're hopeful of being able to keep the business going in a more
profitable format on the other end of the administration," Mr.
McKenna told SmartCompany on April 18.  "I'm still trying to find
out how it's all performing," he says.

In a statement sent on April 18, Mr. Jones said four locations
(Chatswood, Gold Coast, Rockdale and Braybrook) will close on April
28, SmartCompany discloses.

Affected members are being contacted and offered an option of
relocating to other gyms or being given refunds, the report says.

"Moving forward we will have a simpler structure, more streamlined
communication, straightforward targets that are easy to achieve for
managers that are clearly communicated, and constant accountability
and support to allow staff to reach their targets," SmartCompany
quotes Mr. Jones as saying.

SmartCompany says angry customers have taken to social media in
recent months claiming the business has been slow to issue them
refunds.

Asked about the circumstances which led to the collapse, Mr.
McKenna cited a "very large" tax debt, although he confirmed no
garnishee notice was issued, according to SmartCompany.

SmartCompany relates that Mr. Jones confirmed the tax debt relates
to a franchise buyback the business undertook in 2017, which
saddled him with an unexpected bill.

With the largest creditor being the ATO, a sale of the business is
one option, but Mr. McKenna is also considering a restructure that
could see the company returned to Mr. Jones, SmartCompany reports.

SmartCompany adds that Mr. Jones confirmed he intends to submit a
deed of company arrangement to reclaim control of the company in
the coming weeks.

Other than RBT, Mr. Jones also lists himself as the mind behind
several other ventures, including a small-business coaching
service, a digital marketing company and a not-for-profit charity.

RBT Combined Services, RBT Leases, RBT Members and RBT Holding Co.
have also been placed into administration alongside the primary
business, SmartCompany notes.

S J WHITING: Second Creditors' Meeting Set for May 8
----------------------------------------------------
A second meeting of creditors in the proceedings of S J Whiting
Nominees Pty Ltd has been set for May 8, 2019, at 11:00 a.m. at
Chartered Accountants Conference Centre, at Level 18, Bourke Place,
600 Bourke 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 May 7, 2019, at 5:00 p.m.

Mathew Campbell Muldoon of Sellers Muldoon Benton was appointed as
administrator of S J Whiting on Feb. 7, 2019.

SMART SEATING: Second Creditors' Meeting Set for May 2
------------------------------------------------------
A second meeting of creditors in the proceedings of Smart Seating
Pty. Ltd has been set for May 2, 2019, at 11:30 a.m. at the offices
of JHK Legal, Floor 8, 530 Little Collins Street, in Melbourne,
Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by May 1, 2019, at 4:00 p.m.

Bruce Gleeson of Jones Partners was appointed as administrator of
Smart Seating on March 18, 2019.



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

ANBANG INSURANCE: To Slash Registered Capital by a Third
--------------------------------------------------------
Reuters reports that Anbang Insurance Group Co said it would reduce
its registered capital by nearly one-third, the latest
government-directed step of a massive restructuring of the
debt-laden conglomerate to curb financial risks.

A state takeover work group, which has seized control of Anbang
since February last year, has decided to trim the company's
registered capital to CNY41.5 billion ($6.21 billion) from CNY61.9
billion, pending approval from the China Banking and Insurance
Regulatory Commission, Anbang said in a statement released on April
16, Reuters relates.

According to Reuters, Anbang said the capital reduction will not
influence the company's operations or cause any major impact on its
solvency and financial situations.

Reuters relates that the move is the latest step by Beijing to
steadily clean up the aftermath of a harsh government crackdown on
Anbang, once one of China's most aggressive dealmakers overseas
with a series of major acquisitions that have caught the attention
of global regulators and investors.

Anbang's former chairman, Wu Xiaohui, who masterminded the overseas
deal spree including the purchase of New York's Waldorf Astoria
hotel, was sentenced in May 2018 to 18 years imprisonment for fraud
and embezzlement. His appeal against the conviction was rejected by
a Chinese court in August last year, Reuters recounts.

Creditors of the company may request Anbang to pay off its debts or
provide repayment guarantees within 45 days after the announcement,
the company added, Reuters says.

                       About Anbang Insurance

Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang
Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health
Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers
property insurance, life insurance, health insurance, asset
management, insurance sales agency, and insurance brokerage
services. The company provides car insurance, accident insurance,
cargo transportation insurance, credit insurance, life-long
insurance, and medical insurance services.

As reported in the Troubled Company Reporter-Asia Pacific on Feb.
26, 2018, The Strait Times related the Chinese government had
seized control of Anbang Insurance, the troubled Chinese company
that owns the Waldorf Astoria hotel in New York and other marquee
properties around the world, and charged its former chairman with
economic crimes. The Strait Times noted that the move is Beijing's
biggest effort yet to rein in a new kind of Chinese company, in
this case, one that spent billions of dollars around the world over
the past three years buying up hotels and other high-profile
properties.  The rise of these companies illustrates China's
growing economic might, but Chinese officials have grown
increasingly concerned that they were piling up debt to make
frivolous purchases. In a statement posted on its website on Feb.
23, the China Insurance Regulatory Commission said the government
was taking over to ensure the "normal and stable operation" of the
company. "Illegal operations at Anbang may have seriously
endangered the company's solvency, prompting the government to take
control," the statement read.

The Strait Times noted the move also caps the downfall of Anbang
leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng
Xiaoping, China's paramount leader in the 1980s and a towering
figure in Chinese politics, and was widely considered politically
connected.

DAGONG GLOBAL: State Firm Takes Over Credit Rating Agency
---------------------------------------------------------
Peng Qinqin, Zhang Yuzhe and Timmy Shen at Caixin Global report
that Dagong Global Credit Rating Co. Ltd., a Chinese credit rating
agency that has been banned from rating debt since August, has
brought in a new strategic investor to help it reorganize.

After the investment, state-controlled China Reform Holdings Corp.
Ltd. will hold 58% of Dagong, turning it from a privately owned
company to a state-owned enterprise, Caixin says. China Reform
Holdings will take over the restructuring of the credit rating
company, the two companies said in a statement to the media on
April 18.

The acquisition has also been approved by the central bank and the
National Association of Financial Market Institutional Investors
(NAFMII), which oversees the interbank market, Caixin has learned.

Dagong, one of China's oldest credit rating agencies, founded in
1994, was engulfed in a scandal last year after it was found to
have charged high fees for consultation services to companies that
it also rated, according to Caixin. The discovery caused
regulators--both the China Securities Regulatory Commission (CSRC)
and the NAFMII--to ban the company from rating debt instruments for
one year, Caixin notes.

Caixin relates that the yearlong suspension was the harshest
punishment that Chinese regulators have levied against a major
credit rating agency. Caixin previously reported that Dagong had
required at least 26 bond issuers to purchase its consulting
software before it would increase their ratings or the ratings of
their bonds.

Dagong remains in the top three credit rating firms in terms of
domestic market share, Caixin discloses citing public data.

Now, China Reform Holdings, a central government-owned asset
management and investment company, is stepping in to try to rescue
the rating agency, Caixin says. The investment company said in a
statement that it will improve Dagong's corporate governance,
strengthen its internal controls, and increase its research and
development capabilities.

Founded in 2010, China Reform Holdings, an asset manager for state
capital, is often tasked with taking over and reorganizing
struggling companies, Caixin states.

According to Caixin, the scandal has damaged Dagong's business and
reputation, and "it will be difficult for it to regain trust in the
market," said an experienced industry insider.

Caixin notes that credit rating agencies are supposed to provide a
fair third-party evaluation of a company, said a source from a
credit rating company, who added that cutthroat competition may
occur once there are too many players in the industry.

Therefore, it's widely agreed that there's an urgent need for
integration in the industry, given that there are more than 10
certified credit rating agencies in the domestic bond market,
compared with only three major agencies in the international
market, the report states.

In September, the central bank and the CSRC issued a policy
document that encouraged credit rating agencies with the same
controlling party to integrate through mergers or restructuring,
the report recounts.

Also, in a bid to encourage fair competition and improve the
industry's credibility, China has been further opening up its bond
market by allowing foreign companies to independently assess the
quality of bonds on the country's interbank market. In January,
global credit ratings agency Standard & Poor's won the first
approval to do so.

Dagong Global Credit Rating Co., Ltd., a credit rating agency,
provides rating services for investors in China and
internationally. It offers professional risk evaluation services;
and credit ratings for short-term financing bonds, medium term
notes, hybrid capital bonds, enterprise bonds, corporate bonds,
convertible bonds, asset-backed securities, detachable convertible
bonds, exchangeable bonds of listed company shareholders, financial
bonds, SME collection bills, and subordinated bonds. The company
also engages in conducting surveillance credit rating on domestic
financial institutions, including banks and insurance companies;
and issuing credit risks ratings accordingly.

HNA: Denies Embezzlement Claims; Fights for Control of HK Airlines
------------------------------------------------------------------
Jennifer Hughes at Reuters reports that embattled Chinese
conglomerate HNA Group has denied accusations of embezzlement and
financial irregularity made by a rival group of shareholders in
Hong Kong Airlines (HKA) as the two sides fight for control of the
struggling carrier.

According to Reuters, the allegations were made by Zhong Guosong
and Frontier Investment Partner who between them control 61 percent
of HKA's shares. On April 16, they declared they had taken control
of the carrier and made Zhong, a former HKA director, chairman
after an extraordinary shareholder meeting, Reuters relays.

Reuters relates that the pair said on April 17, via a spokesperson,
that an investigation had been launched into "the embezzlement of
HKA assets and serious financial misappropriation by HNA Group
parties."

In an emailed statement to Reuters on April 19, HNA said that the
allegations "are false".

"HNA Group is committed to the highest standards of integrity in
all of its activities and expects the same of all of its
representatives," it added.

HKA's website still lists Hou Wei as chairman, Reuters says.

Hou joined HKA in September last year after more than four years
with HNA-controlled Hainan Airlines, according to his LinkedIn
profile.

HNA holds about 29 percent of HKA, having cut its majority holding
two years ago, Reuters discloses.

Last week's battle comes as HKA is struggling to survive. Earlier
this month, airline executives told shareholders the company needed
at least HK$2 billion ($254.95 million) to avoid the risk of losing
its operating license, and that it swung to a loss of about HK$3
billion last year, Reuters reports.

Zhong and Frontier representatives at that meeting, however,
demanded details of the 2018 accounts and questioned the close ties
between HKA and HNA affiliates, which include loans and equity
investments by HKA to HNA groups, according to HKA's 2017 accounts
seen by Reuters.

On April 18, the two sides clashed again when Zhong and Frontier
accused HNA of storming HKA's head offices and removing
documents--claims denied by an HKA spokesperson, according to
Reuters.

Reuters relates that HKA said later that day that the extra
security staff visible in the lobby and foyer of HKA's offices were
to preserve order that had been disrupted by the shareholder
dispute.

On April 18, Hong Kong's Transport and Housing Bureau said it had
met with representatives for both sides and was monitoring the
situation, Reuters relates.

It added that the Civil Aviation Department had stepped up its
oversight of HKA's flight operations to ensure no disruption over
the holiday weekend, adds Reuters.

                           About HNA Group

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

As reported in the Troubled Company Reporter-Asia Pacific on Sept.
17, 2018, the Financial Times related that HNA Group defaulted on a
CNY300 million (US$44 million) loan raised through Hunan Trust.

According to the FT, the company is already under strict
supervision by a group of bank creditors, led by China Development
Bank, following a liquidity crunch in the final quarter of last
year. The default came despite an estimated $18 billion in asset
sales by HNA this year that have done little to address its ability
to meet its domestic debts, the FT noted.

REDCO PROPERTIES: S&P Rates New US Dollar Sr. Unsecured Notes 'B'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issue rating to the
U.S. dollar-denominated senior unsecured notes proposed by Redco
Properties Group Ltd. (B/Stable/--). The issue rating is subject to
S&P's review of the final issuance documentation.

S&P said, "We equalize the issue rating with the issuer credit
rating on Redco because the proposed notes are not significantly
subordinated to other debt in the company's capital structure. As
of Dec. 31, 2018, Redco's capital structure consisted of about
Chinese renminbi (RMB) 5.4 billion in secured debt, RMB5.7 billion
in unsecured debt, and other borrowings issued at the holding
company level. The company's priority debt ratio is below our
notching down threshold of 50%.

"We do not expect the new issuance to have a significant impact on
Redco's financial leverage. That's because the company will use
most of the proceeds to refinance its existing debt, with some
going toward general corporate purposes. In our view, Redco will
maintain an aggressive land acquisition strategy to improve its
scale and diversification over the next 12 months. But the impact
of that will be partially offset by the company's steady sales with
sound cash collection and increased revenue recognition. Therefore,
we forecast Redco's leverage, as measured by the debt-to-EBITDA
ratio, to stay close to 5x over the next 12 months."

XINYUAN REAL: Fitch Rates $200MM Senior Unsecured Notes Final 'B'
-----------------------------------------------------------------
Fitch Ratings has assigned Xinyuan Real Estate Co., Ltd.'s
(B/Negative) USD200 million 14.2% senior unsecured notes due 2021 a
final 'B' rating and a Recovery Rating of 'RR4'.

Xinyuan's notes are rated at the same level as its senior unsecured
rating because they constitute its direct, unsubordinated and
senior unsecured obligations under a guarantee. Xinyuan is
concurrently conducting a tender offer for its 8.125% notes due
August 2019 (2019 notes). The maximum amount that Xinyuan may
accept in the tender is equivalent to the sum of the outstanding
2019 notes and the new notes.

The final rating on the 2021 notes is in line with the expected
rating assigned on 02 April 2019 and follows the receipt of final
documents conforming to information already received.

The Negative Outlook reflects Xinyuan's high leverage as the
company significantly increased land acquisitions to sustain its
operations, including expanding outside its established market of
Zhengzhou city in China's Henan province to mitigate regional
economic and policy risk. Fitch believes Xinyuan will slow its
acquisition pace, but there is inherent execution risk in launching
projects outside of established cities amid weakening market
sentiment, which may delay its deleveraging. In addition, Xinyuan's
margins are lower than those of similarly sized peers in the 'B'
rating category and the company's ratings are constrained by its
smaller contracted sales scale.

KEY RATING DRIVERS

Rapid Land Replenishment: Xinyuan's small land bank and short land
bank life have been insufficient to sustain the fast growth of its
contracted sales, leading the company to increase its leverage to
significantly accelerate land replenishment. The company's land
bank increased from 2.2 million sq m in 2016 to 5.7 million sq m in
2018. The ratio of land acquisitions/contracted sales, measured by
gross floor area, rose from 1.0x in 2016 to 2.1x in 2018. Fitch
estimates Xinyuan's land reserve life was more than four years at
end-2018, which is comparable with 'B' rated peers and improves the
sustainability of its business profile.

Xinyuan has begun to diversify into areas outside of Zhengzhou,
such as Jiangsu, Sanya and Wuhan, helping lower regional economic
and policy risks.

Leverage Edges Up: Xinyuan's leverage, denoted by net debt/adjusted
inventory, rose to 57.1% in 2018 from 52.9% in 2017, to support its
land bank acquisitions. A large batch of new land acquired in 4Q17
turned into contracted sales in 4Q18, so the company does not plan
to acquire land aggressively in 2019. Fitch expects leverage to
gradually fall after improved cash collection in 2018, but to stay
above 50% in the medium term.

Slowdown in Recognised Contracted Sales: Xinyuan's reported
contracted sales fell by 8% to USD2.3 billion (approximately CNY15
billion) and GFA sold fell 22% in 2018. A large part of sales
occurred in December 2018 with down payments that were less than
30% of the agreed amounts will be recognised in 2019 instead. If
these sales are included, the total amount of contracts signed in
2018 was US$3.2 billion. The sales at the end of the year were
driven by robust market sentiment in its core tier-2 cities and
satellite cities close to tier-1 cities, namely Zhengzhou, Jinan,
Changsha and Kunshan. The average selling price (ASP) growth of 18%
yoy to CNY13,047 per sq m in 2018 reflected the improved land-bank
quality, with tier-2 cities accounting for around 80% of contracted
sales.

Xinyuan diversified contracted sales to other regions in 1H18,
including Jiangsu province. The lower proportion of sales from
Zhengzhou, where it made more than half of its sales in 2017, helps
lower policy risk arising from regional concentration. However,
Fitch believes there is inherent execution risk in expanding sales
outside its core city, in light of its small operating scale and
weakening market sentiment. Any delay in project launches is likely
to slow the company's deleveraging.

Lower-than-Peer Margin: Fitch does not expect a significant
improvement in Xinyuan's EBITDA margin, which is likely to remain
below that of 'B' rated peers due to the company's limited
operating scale. However, Fitch expects its EBITDA margin to edge
higher in 2019, with a rising ASP for most of Xinyuan's projects on
sale in 2017 and 2018. Its EBITDA margin improved to around 25% in
2018 due to higher ASPs in core cities and recognition of US
projects.

Foreign-Exchange Risk: Xinyuan is more exposed to foreign-exchange
fluctuation risk than other Chinese developers, as its revenue is
mostly denominated in Chinese yuan, while its reporting currency is
in US dollars. Depreciation of the US dollar against the Chinese
yuan brought exchange gains of USD11.6 million in 1Q18, but this
turned into a USD21.3 million exchange loss in 2Q18 when the US
dollar appreciated against the Chinese yuan, causing a volatile
reported net profit. Xinyuan has a few residential projects in the
US, UK and other countries where revenue is not denominated in
Chinese yuan, but these projects will contribute less than 10% of
Xinyuan's sales, which is inadequate to mitigate the negative
effect of further potential Chinese yuan devaluation against the US
dollar.

DERIVATION SUMMARY

Xinyuan's business profile is comparable with other 'B' category
peers. Its rating is supported by solid sales and constrained by a
smaller contracted sales scale and low EBITDA margin.

In terms of financial profile, Xinyuan's contracted sales scale is
slightly larger than that of Beijing Hongkun Weiye Real Estate
Development Co., Ltd. (B/Stable). However, Xinyuan's leverage is
set to be significantly higher than that of Hongkun. In addition,
Xinyuan has a lower EBITDA margin, while sales churn is similar.

Xinyuan has slightly larger contracted sales but lower leverage
than Xinhu Zhongbao Co., Ltd. (B-/Stable). Xinyuan's churn rate is
faster than that of Xinhu, but at the expense of a significantly
lower EBITDA margin. Xinyuan's land bank is focused on tier-2
cities, while Xinhu's land bank is focused in Shanghai.

Compared with 'B-' rated peers, Xinyuan's contracted sales and
EBITDA scale are a few times larger than that of Hydoo
International Holding Limited (B-/Stable). Xinyuan's contracted
sales scale is larger than that of Oceanwide Holdings Co. Ltd.
(B-/Stable), while its leverage is lower. Xinyuan's churn rate is
also faster than that of Oceanwide.

KEY ASSUMPTIONS

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

  - Flat contracted sales ASP in 2019-2021 (2018:18%)

  - 15% increase in contracted sales GFA sold on average in
2019-2021 (2018: -22%)

  - Ratio of land acquisitions/contracted sales, measured by GFA,
gradually falling from 2.1x in 2018 to 1.0x by 2021

  - Construction cost inflation of 2% in 2019-2021

  - Land cost per sq m to rise by 5% in 2019-2021

Recovery Rating Assumptions

  - Xinyuan will be liquidated in a bankruptcy because it is an
asset-trading company

  - 10% administrative claim

  - The 2019 notes to be fully refinanced by the proceeds from the
proposed bond issuance

The liquidation estimate reflects Fitch's view of the value of
inventory and other assets that can be realised and distributed to
creditors.

  - Fitch applies a haircut of 40% to adjusted inventory

  - Fitch applies a haircut of 25% to account receivables

Based on its calculation of the adjusted liquidation value, after
administrative claims of 10%, Fitch estimates the recovery rate of
the offshore senior unsecured debt at 39%, which corresponds to a
Recovery Rating of 'RR4'.

RATING SENSITIVITIES

Fitch does not anticipate developments that would lead to a rating
upgrade. However, developments that may, individually or
collectively, lead to the Outlook being revised to Stable include
the negative guidelines below not being met in the next 18 months.


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

  - Net debt/adjusted inventory rising above 50% for a sustained
period

  - Contracted sales/total debt falling below 0.6x for a sustained
period

  - EBITDA margin falling below 15% for a sustained period

LIQUIDITY

Adequate Liquidity: Xinyuan had cash and cash equivalents of USD772
million as of 2018 and restricted cash of USD416 million. Together
with undrawn credit facilities of around USD1.3 billion, this was
enough to cover short-term borrowings of USD1.7 billion (which
include the 2019 notes). Of the USD1.7 billion in short-term debt,
around USD200 million is classified as current debt, even though
they will not mature in 2019, because the debt has loan terms that
allow lenders to request early repayment. The company indicates
that there have not been requests for early repayment of these
types of loans. Holders of the bonds puttable in 2019 continued to
hold the bonds without asking for a step-up of the coupon rate.



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

ALAPATT FASHION: ICRA Lowers Rating on INR13.50cr Loan to D
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Alapatt Fashion Jewellery, Kothamangalam, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Cash credit         13.50       [ICRA]D; downgraded from
                                   [ICRA]BB- (Stable) and
                                   withdrawn

Credit challenges

Delays in debt servicing and overutilization on cash credit
facilities due to strained liquidity position: The group's
liquidity position remained stretched due to high inventory period
of 491 days as on March 31, 2018, which led to increased working
capital intensity from 97.9% in FY2017 to 103.7% in FY2018. High
working capital requirement and losses at operating level led to
overutilization of cash credit facility.

Financial profile characterised by shrinking scale of operations,
net losses and weak return indicators: The group has small scale of
operations and has witnessed significant revenue de-growth over the
last four-year period. The OI stood at INR22.1 crore in 9M FY2019
as against INR39.0 crore in FY2018 and INR51.3 crore in FY2017. Its
continuously declining OI and high fixed costs have also resulted
in continuous net losses and negative RoCE.

High gearing levels due to erosion of net worth base from sizeable
accumulated losses: High debt level along with continuously eroding
net worth has resulted in a highly leveraged capital structure and
weakened coverage indicators as indicated by a gearing of 11.5
times, TOL/TNW of 12.1 times, interest coverage of -0.1 times and
total debt/ OPBITDA of -65.3 times.

Intensifying competition limits pricing flexibility: The gold
jewellery retail business is highly competitive with large presence
of unorganised players. This coupled with major store expansions by
larger retailers in the recent fiscals has intensified the existing
competition and limited the pricing flexibility amongst the
players.

Liquidity position
The group has high net working capital intensity of ~104% as on
March 31, 2018 resulting in increased reliance on external
borrowings. ICRA also takes note of the increase in unsecured loans
from promoters in the current fiscal in order to decrease the
dependence on the working capital borrowings; however, the working
capital limits of the group have remained over-utilised in the
recent past. Low operating profitability along with high interest
cost led to cash losses.

Alapatt Fashion Jewellery, Kothamangalam is a partnership firm set
up by Mr. Francis Alapatt at Cochin, Kerala in 1988. However, with
sharp decline in volumes due to increasing competitive intensity in
the Ernakulam region coupled with cannibalization of sales by its
own store (Alapatt Jewellers, Alapatt Heritage), the entity has
closed down the showroom and shifted the operations to
Kothamangalam region (55 km north of Cochin). The firm is currently
engaged in the business of gold and diamond jewelry retailing and
operates with single retail showroom (~5,000 sq. ft. area) located
at Kothamangalam. The firm's bullion requirements are met by
bullion purchase from banks / nominated agencies and through gold
melted from the exchange of old jewelry from customers. Jewelry
manufacturing is outsourced to local goldsmiths, with a portion of
its requirements met from jewelry purchases from wholesalers.

Alapatt Heritage Group belongs to the Francis Alapatt Group of
entities, with diversified interests in businesses ranging from
jewellery retail, hospitality, marketing of liquor to distribution
of FMCG goods and adhesives. However, the jewellery business
contributes nearly 90% to the Group's revenues. The Group also has
three showrooms in Kerala - one in Kochi (Alapatt Jewellers
[Alapatt Heritage], Ernakulam), one at Kozhikode (Alapatt Fashion
Jewellery, Kozhikode) and one at Kothamangalam (Alapatt Fashion
Jewellery, Kothamangalam).

ALAPATT JEWELLERS: ICRA Lowers Rating on INR22cr Loans to D
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
Alapatt Jewellers (Alapatt Heritage), Ernakulam, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Cash credit          17.00      [ICRA]D; downgraded from
                                   [ICRA]BB- (Stable)
   Unallocated
   facility              5.00      [ICRA]D; downgraded from
                                   [ICRA]BB- (Stable)

Financial profile characterised by shrinking scale of operations,
net losses and weak return indicators: The group has small scale of
operations and has witnessed significant revenue de-growth over the
last four-year period. The OI stood at INR22.1 crore in 9M FY2019
as against INR39.0 crore in FY2018 and INR51.3 crore in FY2017. Its
continuously declining OI and high fixed costs have also resulted
in continuous net losses and negative RoCE.

High gearing levels due to erosion of net worth base from sizeable
accumulated losses: High debt level along with continuously eroding
net worth has resulted in a highly leveraged capital structure and
weakened coverage indicators as indicated by a gearing of 11.5
times, TOL/TNW of 12.1 times, interest coverage of -0.1 times and
total debt/ OPBITDA of -65.3 times.

Intensifying competition limits pricing flexibility: The gold
jewellery retail business is highly competitive with large presence
of unorganised players. This coupled with major store expansions by
larger retailers in the recent fiscals has intensified the existing
competition and limited the pricing flexibility amongst the
players.

Liquidity position

The group has high net working capital intensity of ~104% as on
March 31, 2018 resulting in increased reliance on external
borrowings. ICRA also takes note of the increase in unsecured loans
from promoters in the current fiscal in order to decrease the
dependence on the working capital borrowings; however, the working
capital limits of the group have remained over-utilised in the
recent past. Low operating profitability along with high interest
cost led to cash losses.

Alapatt Jewellers (Alapatt Heritage), Ernakulam, the flagship
showroom of the Francis Alapatt Group of firms is located at MG
Road in Ernakulam, Kerala, with an approximate showroom size of
12,500 sq. ft. (~50,000 sq. ft. of additional space). It is among
the largest jewellery showrooms in Kerala in terms of size. The
firm was incorporated in 2004, and commenced operations from
FY2008. The showroom primarily deals with high-end fashion
jewellery, gold and diamond jewellery, as well as also an
assortment of fashion watches. The firm's bullion requirements are
met by bullion purchase from banks/nominated agencies and through
gold melted from the exchange of old jewelry from customers.
Jewelry manufacturing is outsourced to local goldsmiths, with a
portion of its requirements met from jewelry purchases from
wholesalers.

Alapatt Heritage Group belongs to the Francis Alapatt Group of
entities, with diversified interests in businesses ranging from
jewellery retail, hospitality, marketing of liquor to distribution
of FMCG goods and adhesives. However, the jewellery business
contributes nearly 90% to the Group's revenues. The Group also has
three showrooms in Kerala—one in Kochi (Alapatt Jewellers
[Alapatt Heritage], Ernakulam), one at Kozhikode (Alapatt Fashion
Jewellery, Kozhikode) and one at Kothamangalam (Alapatt Fashion
Jewellery, Kothamangalam).

ALAPATT JEWELS: ICRA Reaffirms 'B' Rating on INR5.50cr LT Loan
--------------------------------------------------------------
ICRA reaffirmed ratings on certain bank facilities of
Alapatt Jewels, as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term-          5.50       [ICRA]B (Stable); reaffirmed
   Fund-based           

Rationale

The rating remains constrained by the Alapatt Jewels' modest scale
of operations, which restricts benefits arising out of economies of
scale. The rating considers the geographical concentration risk
faced by Alapatt Jewels due to its single showroom presence,
increasing competition from other renowned jewellery retailers in
the Cochin region and possible cannibalisation of its sales among
other family-owned Group entities sharing the 'Alapatt' brand name.
The rating remains constrained by the firm's stretched financial
profile as characterised by a leveraged capital structure, modest
coverage indicators and high working capital intensity driven by
high inventory levels. The rating also factors in the exposure of
its profit margins to fluctuations in gold prices in absence of any
formal hedging mechanism.

The rating, nonetheless, positively factors in the extensive
experience of the promoters in the jewellery retail business for
nearly two decades, the favourable location of the firm's retail
showroom in a prominent location in Cochin (Kerala) and strong
reputation enjoyed by the Alapatt brand in the region, which
supports footfalls. The rating also considers the favourable demand
scenario for the gold jewellery industry supported by structural
economic reforms towards formalisation of the industry, evolving
lifestyle, growing disposable income, favourable demographic
dividend and increasing penetration of the organised sector.

Outlook: Stable

The Stable outlook reflects ICRA's expectation that Alapatt Jewels
will continue to benefit from its established track record in the
locality supported by sustained demand underpinned by the cultural
affinity for gold. The outlook may be revised to Positive, if
substantial and sustainable improvement in revenue and
profitability and better working capital management, strengthens
its financial risk profile. The outlook may be revised to Negative,
if cash accruals are lower than expected, or if any stretch in
working capital cycle, weakens the firm's liquidity.

Key rating drivers

Credit strengths

Established brand and prominent store location drives footfalls:
Alapatt Jewels operates a ~10,000-square feet showroom in Cochin's
MG Road. The extensive presence of the promoter, Mr. Manuel
Alapatt, for nearly two decades in the jewellery retail business
(and that of the brand Alapatt for over six decades) in the Cochin
market has enabled the firm in enhancing the brand loyalty as it
enjoys continued patronage of its customers.

Healthy growth in revenues in the recent past: The firm's operating
income (OI) grew to INR19.8 crore in FY2018 from INR9.8 crore in
FY2017, registering a healthy YoY growth of nearly 100%. The
revenue growth was supported by revival in rural demand, improved
liquidity during the corresponding period with fading
demonetisation effect and strong wedding demand, among others.

Credit challenges

Small scale of operations with high geographical concentration:
With an OI of INR19.8 crore in FY2018, the firm's scale of
operations is small, which restricts flexibility benefits with
respect to product pricing and negotiating favourable terms with
suppliers. With a single showroom presence in Cochin and no
expansion plans in the near term, it also faces a high risk of
geographical concentration.

Intense competition restricts pricing flexibility: The gold
jewellery retailing industry is highly fragmented and is
characterised by stiff competition, with major store expansions by
the larger retailers in the recent years limiting the pricing
flexibility among the players. While the firm enjoys strong brand
equity, similar names of other family-owned Group entities,
operating under the name of Alapatt, poses the risk of
cannibalisation of sales among different showrooms in Cochin
region.

Stretched financial profile: Alapatt Jewels' financial profile
remains stretched, as characterised by a leveraged capital
structure with a weak gearing of 3.0 times as on March 31, 2018
owing to its modest net-worth position, coupled with relatively
higher reliance on external borrowings. Besides, the working
capital intensity remained high with net working capital/operating
income (NWC/OI) of 76.1% as on March 31, 2018, due to high stock of
gold held by the firm.

Liquidity position
Alapatt Jewels' liquidity position remains stretched as
characterised by limited availability of unutilised bank facilities
and modest cash balances. The average utilisation of the firm's
working capital facilities remained high and stood at nearly 98.5%
of the sanctioned limits for the period November 2017 to January
2019.

Alapatt Jewels is a Cochin-based partnership firm established by
Mr. Manuel Alapatt in 2000, which is involved in manufacturing and
selling of gold and diamond jewellery through its 10,000-square
feet retail showroom in Ernakulam, Cochin. It sources gold in the
form of old gold from customers and outsources the same to
goldsmiths in the region for converting them into ornaments.
Besides, the firm also deals in traded jewellery procured from
merchants based out of Mumbai and Bangalore.

In FY2018, the firm reported a net profit of INR0.23 crore on an OI
of INR19.76 crore, as compared to a net loss of INR1.60 crore on an
OI of INR9.84 crore in the previous year.

AMR INDIA: CARE Reaffirms 'D' Rating on INR945.24cr Loans
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
AMR India Limited (AMRL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank
   Facilities          375.02      CARE D Reaffirmed

   Short Term Bank  
   Facilities          570.22      CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The ratings assigned to the AMRL are tempered by stretched
liquidity position with ongoing delays in debt servicing.

Detailed description of the key rating drivers

Key rating Weaknesses

Stretched liquidity position with delays in debt servicing: The
collection period of the company has remained elongated during FY18
resulting in liquidity strain leading to continuous delays in
meeting its debt obligations.

AMR India Limited (AMRL) was incorporated as a partnership firm in
1992 and had been undertaking small civil works in mining and
industrial infrastructure activities and later in FY 2001 AMR
Constructions was converted to a Public limited company as AMR
Constructions Limited (AMRCL). AMRL is currently undertaking
construction activities in Mining, Irrigation, civil Construction
and industrial infrastructure. AMR India Limited is promoted by Mr.
A. Adinarayana Reddy and his two sons namely Mr. A. Mahesh Reddy,
Mr. A. Girish Reddy and other family members. AMRCL is an ISO
9001:2000 certified company. AMRL is a total solution partner
bringing design, construction, mining, irrigation and maintenance
solutions to clients throughout India. The company in the past has
executed large number of projects under the current management
successfully in various segments.

ARKAY ENERGY: CARE Reaffirms D Rating on INR136.60cr Loans
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Arkay Energy (Rameswaram) Limited (AERL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank
   Facilities          131.60      CARE D Reaffirmed

   Short Term Bank
   Facilities            5.00      CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of rating to the bank facilities of AERL reflects
the company's continued stressed liquidity position albeit
improvement in working capital cycle and high exposure to its group
companies. However, the rating takes into account the company's
repayment of over-dues from Syndicate Bank and State Bank of India,
experienced promoters with a long track record of the group in
power segment, Fuel Supply Agreement with GAIL and ONGC and
improved financial performance of the company.

Going forward, the company's ability to ensure the uninterrupted
supply of fuel for smooth running of plant along with continuous
receipt of payments from captive power consumers in a timely manner
shall remain the key rating sensitivities.

Detailed description of the key rating drivers

Key rating Weaknesses

Continued stressed liquidity position albeit improvement in working
capital cycle: The liquidity position of the company continues to
remain stretched though improved led by improvement in collection
period. Collection period improved to 152 days in FY18 as against
544 days in FY17. Despite increase total outstanding debtors as on
March 31, 2018 to INR207.18 crore (as against INR162.89 crore as on
March 31, 2017), collection period improved led by increase in
total income of the company. However, the same remained stretched.
Further, the company's cash and bank balance reduced to INR24.91
crore as on March 31, 2018 (as against INR54.50 crore as on March
31, 2017).

High group exposure: AERL's net group exposure has increased from
INR705.76 crore as on March 31, 2017 to INR875.77 crore as on March
31, 2018. The exposure to group companies remains high with 95.37%
of net worth as on March 31, 2018 (86.33% of net worth as on March
31, 2017). The high group exposure mainly pertains to equity
investment in Ind- Barath Thermal Power Limited (IBTPL) and
Ind-Barath Power Madras Limited (IBPML) both engaged in coal based
power generation.

Key rating Strengths

Repayment of over-dues from Syndicate Bank and State Bank of India:
During FY18, income from sale of electricity of the company has
increased by 2.32x from INR132.85 crore in FY17 to INR441.22 crore
in FY18 majorly from their captive power customers. As a result of
increase in the revenue, the company has cleared all the dues and
has been servicing its debt obligations regularly from Syndicate
Bank and State Bank of India since September 2018 and February 2019
respectively as confirmed through banker interaction.

Long track record of group in power segment and experienced
promoters: AERL is a subsidiary of Ind-Barath Power Infra Limited
(IBPIL) which is the flagship company of the Ind-Barath Group.
Group has experience in successfully commissioning of power
projects with varied fuels like Coal, Gas, Biomass, Hydro and Wind.
Mr. K Raghu Ramakrishna Raju is the Chairman & Managing Director of
the company and also the promoter of the Ind-Barath group. Mr.
Raghu has more than 15 years of experience in power sector and is
actively involved in day to day operations of the company. He is
assisted by the team of experienced and professional managers.

Fuel Supply Agreement with GAIL and ONGC: AERL uses natural gas as
fuel to generate power and it has medium term gas supply agreement
with GAIL (India) Limited (GAIL) and Oil and Natural gas
corporation limited (ONGC). The gas is being sourced from
Kanjirangudi and Palk Bay fields of ONGC in Ramnad Zone of Cauvery
Basin and transported through the pipelines owned and operated by
GAIL.

Improved financial performance of the company: The lower auxiliary
consumption of the plant along with increased power generation led
to significant increase in the total operating income of the
company from INR132.85 crore in FY17 to INR441.22 crore in FY18.
This led to improved profitability margins. The PBILDT margin
almost doubled from 20.93% in FY17 to 39.86% in FY18. Similarly,
the PAT margin also improved to 18.33% in FY18.

Arkay Energy (Rameswarm) Limited (AERL) belongs to Ind Barath Group
and is a subsidiary (82.43%) of Ind-Barath Power Infra Limited
(IBPIL), the holding company of the group. Incorporated on December
1, 2004, AERL initially commenced operations of its gas based
combined cycle thermal power generation plant with an installed
capacity of 95MW (10 gas engines of 8.73 MW each and 1 Waste Heat
Recovery Steam Generator (WHRSG) of 8MW) at its plant in
Valantharvai village in Ramnad district of Tamil Nadu. Over the
years, the company has expanded its capacity and commenced
operations from April 2014 taking the total installed capacity to
149.18MW.

Till May 2016, AERL had been operating on merchant basis and had
been signing medium term PPAs with TANGEDCO. However, as TANGEDCO
stopped renewing PPAs and there was delay in receipt of payment,
AERL moved to third party captive model. The company started
entering into PPAs with captive power consumers from Q2FY17 and by
Q1FY18. Currently the company has entered into Purchase Power
Agreement (PPA) with 117 captive power consumers for 145MW.

AUTOLINE INDUSTRIES: CARE Reaffirms D Rating on INR144.91cr Loans
-----------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Autoline Industries Limited (AIL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            124.91      CARE D Reaffirmed

   Short-term Bank
   Facilities             20.00      CARE D Reaffirmed

Detailed Rationale

The reaffirmation of ratings to the bank facilities of AIL
continues to factor in the ongoing delays in debt servicing by AIL
due to its stressed liquidity position.

Timely repayment of debt going forward is the key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in debt servicing: There are on-going delays in debt
servicing of bank facilities due to AIL's stressed liquidity
position.

Incorporated in December 1996, AIL is engaged in manufacturing of
auto components especially sheet metal components, sub-assemblies
and assemblies. AIL is an integrated auto ancillary company that
designs, engineers, develops and manufactures auto components and
assemblies. The capacities have been acquired through organic and
inorganic growth. AIL's products (more than 1,000 varieties) are
used in Commercial Vehicles (CV), Passenger Cars (PC), Sports
Utility Vehicles (SUV), two wheelers, tractors by Original
Equipment Manufacturers (OEMs) like Tata Motors Ltd (TML), Mahindra
& Mahindra (M&M), Bajaj Auto Ltd (BAL), Force Motors (FM), General
Motors (GM), Volkswagen (VW), etc. in the automobile industry.

BIAX ELECTRIC: ICRA Migrates D Rating in Not Cooperating Category
-----------------------------------------------------------------
ICRA has moved the long-term and short-term ratings for the bank
facilities of Biax Electric & Controls Pvt. Ltd. (BECPL) to the
'Issuer Not Cooperating' category. The ratings are now denoted as
"[ICRA]D /[ICRA]D ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)   Ratings
   ----------      -----------   -------
   Long-term-Fund-      5.50     [ICRA]D ISSUER NOT COOPERATING;
   based Cash                    Rating moved to the 'Issuer Not
   Credit                        Cooperating' category

   Short-term Non-      2.00     [ICRA]D ISSUER NOT COOPERATING;
   fund-based                    Rating moved to the 'Issuer Not
                                 Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Biax Electric & Controls Pvt. Ltd. (BECPL) was incorporated in 2001
for the purpose of manufacturing sub-sea cable connectors,
termination parts and accessories, flanges, stub ends, ferrules,
special cable fittings, hose fittings, cable lugs, flexible
conduits, earthing and lighting equipment, aluminum clad steel wire
etc. BECPL is currently manufactures copper, aluminium and brass
components used in electrical components, construction, earthing
and lighting, plumbing, precision fluid control systems etc. The
company markets its products in over 47 countries to a network of
customers, distributors and original equipment manufacturer
(OEMs).

BECPL has a manufacturing facility in Silvassa (Dadra Nagar Haveli)
with a capacity of 250 metric tons (MT) per annum. Its operations
are managed by two of its directors, Mr. Malay K. Shah and Mr.
Manoj Jain. The company's plant is ISO certified and its products
have been approved by internationally accredited laboratories like
Underwriters Laboratories (UL) and Canadian Standards Association
(CSA).

CABLE CORPORATION: CARE Reaffirms C Rating on INR38.85cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Cable Corporation of India Limited (CCIL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term bank
   Limits              38.85       CARE C; Stable Reaffirmed

   Short-term
   bank limits        112.00       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of ratings of the bank facilities of CCIL is on
account of weak liquidity profile of the company. The company
continues to delay in servicing of its existing debt obligation
(not rated by CARE Ratings).

Further, the ratings continue to be constrained by highly working
capital intensive operations, exposure of operational performance
to counter party risk, inherent risk associated with execution of
large orders and prevalent competition in the power cable industry.
However, the ratings continue to derive strength from established
and experienced promoters having presence in power cable industry.


Improvement in liquidity profile and timely debt servicing of all
its obligations are key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Established and experienced promoters having presence in power
cable industry: Incorporated in November 11, 1957, CCIL is now a
part of Hiten Khatau Group. The company manufactures low tension,
high tension and extra high voltage power cables. The manufacturing
facility is located at Nashik (Maharashtra). The company majorly
caters to orders from Power Grid Corporation of India Limited
(PGCIL) and State Electricity Boards (SEBs) across India. The
day-to-day operations of the company are managed by a team of
qualified and experienced professionals headed by Mr. Rohan H
Khatau.

Key Rating Weaknesses

Ongoing delay in debt servicing in term loan (not rated by CARE
Ratings) on account of liquidity profile mismatch: CCIL reported
delay in repayment principal of term loan from financial
institution as on March 31, 2018 on account of liquidity profile
mismatch. The said loan is not rated by CARE Ratings. The company
continues to report delay in debt servicing.

Highly working capital intensive operation amidst exposure of
operational performance to counter party risk: CCIL's operations
are highly working capital intensive. The company is into execution
of EPC orders from various government entities in power industry.
These counterparties are mainly SEBs where payments are stretched
resulting in elongation of working capital cycle. As a result, the
company's dependence substantially increases on bank borrowings
from bank in order to meet working capital requirements.

Inherent risk associated with execution of large orders in cable
segment and prevalent competition in cable industry: CCIL continues
to derive major revenue from cable business. These orders are from
various user industries mainly power sector. Any delay/deferral of
operational expenditure by these companies might adversely impact
the operational performance and consequently prospects of the
company. Further, in the cable industry with the presence of
organised and unorganised players the business environment is
competitive. However, the company's established position in cables
business mitigates it to larger extent.

Liquidity analysis:
Current ratio of the company continues to below unity on account of
higher level of advances against property sale from real estate
associate company. Despite improvement in average collection days
to 167 days as on March 31, 2018 as compared to 298 days as on
March 31, 2017 the company continues to have high working capital
fund based utilisations.  As a result the liquidity profile of the
company is weak.

CCIL incorporated in November 11, 1957 is promoted by Mr. Hiten
Khatau. The company manufactures low tension, high tension and
extra high voltage power cables (23kv to 400kv). The company also
executes turnkey cable contracts and provides solutions. The
manufacturing facility is located at Nashik (Maharashtra). Further,
the company entered into joint development with an associate
company belonging to promoter group towards residential and
commercial project named Rivali Park in Borivali East (Mumbai).

COASTAL ENERGY: ICRA Maintains D Rating in Not Cooperating
----------------------------------------------------------
ICRA said the rating for the INR1094.50-crore bank facilities of
Coastal Energy Private Limited (CEPL) remains under the Issuer Not
Cooperating category. The rating is denoted as ICRA]D ISSUER NOT
COOPERATING.

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund-based       113.50      [ICRA]D ISSUER NOT COOPERATING;
   Limits                       Rating remains under 'Issuer Not
                                Cooperating' category

   Non-fund based   645.50      [ICRA]D ISSUER NOT COOPERATING;
   limits                       Rating remains under 'Issuer Not
                                Cooperating' category

ICRA has been trying to seek information from the entity to monitor
its performance. However, despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA based on the best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution, while using this rating, as the rating may not
adequately reflect the credit risk profile of the entity.

Coastal Energy Private Limited (CEPL) engages in non-coking coal
trading and coal handling services. The company is promoted by Mr.
Ahmed Abdul Rahman Buhari, along with Mr. Ameer Faizal. It
undertakes coal handling services for exports made by its
Dubai-based Group company, Coal & Oil Company, in India.

DEEN DAYAL: CARE Keeps D Rating on INR11.49cr Loan
--------------------------------------------------
CARE said the rating of Deen Dayal Foods Private Limited (DDFPL)
continues to remain constrained on account of ongoing delays in
debt servicing.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       9.49       CARE D Revoked from CARE D
   Facilities                      Issuer not Cooperating

   Short-term Bank      2.00       CARE D Revoked from CARE D
   Facilities                      Issuer not Cooperating

Detailed description of the key rating drivers

Key Rating Weakness

Irregularity in debt servicing: The banker of DDFPL has verbally
confirmed delay in debt servicing by the firm.

Deen Dayal Foods Private Limited (DDFPL) was incorporated in 2010
by Mr. Dileep Kumar Singhal, Mrs Aradhna Singhal and Mr Vijay Pal.
The company is engaged in the business of manufacturing milk and
milk products. It purchases milk from local farmers with the help
of agents. Its products include loose milk, skimmed milk powder,
butter, Ghee, etc. The firm has installed capacity of 30000 liter
per day for milk, 5000 Kg of Butter per day, 6500 Kg of Skimmed
Milk Powder per day as on March 31, 2018. It has a good customer
base all over India. The company supplies its products mainly to
Parle Products Private Limited and Virat Crane Industries Limited.

DELHI INTERNATIONAL: Moody's Affirms Ba2 CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has affirmed Delhi International Airport
Limited's Ba2 corporate family rating and senior secured ratings.

The ratings outlook is maintained at stable.

RATINGS RATIONALE

"The ratings affirmation principally reflects our expectation that
DIAL's financial metrics will deteriorate but remain above the
minimum tolerance level set for its ratings category despite a
material increase in the cost of DIAL's major project 3A expansion.
In addition the ratings continue to be supported by DIAL's
substantial balance of cash and short term investments in hand,
which provide the airport with some additional financial
flexibility over the next 12 months," says Spencer Ng, a Moody's
Vice President and Senior Analyst.

"DIAL's ability to maintain financial metrics above the ratings
tolerance level will however depend heavily on passenger traffic
staying at or above the level assumed in our base case projections,
continued growth in its non-aeronautical revenue and additional
land monetization to help fund DIAL's large expansion. Any material
debt funded cost increases for the project 3A expansion would also
be a challenge for the company's ratings." adds Ng.

Over the next 2-3 years, Moody's expects DIAL's funds from
operations / debt to remain weak, with a very limited buffer above
the minimum tolerance level of 3%-4%.

Moody's financial projections assume that: (1) aeronautical tariffs
will remain at the current level during the third regulatory period
between April 2019 and March 2024, and (2) passenger traffic to
grow at a high-single digit percentage per annum over the next 18
months.

On March 29, 2019, DIAL completed a transaction to lease around 4.9
million square feet of commercial land to Bharti Realty. As part of
the transaction, Bharti will make upfront payments of INR18 billion
to DIAL, of which, around INR4 billion has been received. Bharti
will also pay the airport an on-going license fee of INR3.6 billion
per annum during the initial 17-year term of the lease.

Upfront proceeds and on-going revenue from the Bharti transaction
are key to DIAL's ability to absorb the increase in the cost of its
project 3A expansion, which has been revised up to INR98 billion
from the previous management's estimate of INR80 billion. According
to management, bulk of the increase in the expansion budget relates
to the recognition of additional GST related liabilities.

Moody's also expect passenger traffic growth to slow down from the
double-digit percentage recorded in each of the past five years,
because the airport's passenger base has already grown to 69
million (as at fiscal year ending March 31, 2019) from 41 million
over the same period. In addition, traffic performance would be
temporarily tempered by the suspension of Jet Airways operations
and grounding of 737-Max 8 aircraft.

Moody's says that the impact of the Jet Airways suspension would
likely be temporary in nature and manageable for DIAL at the
current ratings level, considering the robust underlying demand for
air travel in India and the likelihood that other airlines will
step in to replace capacity lost due to Jet Airways' suspension.

From a liquidity standpoint, DIAL's management has confirmed that
the airport has sufficient security deposit from Jet Airways to
cover receivables currently due from the airline, which -- along
with its substantial cash holdings -- would support DIAL's ability
to withstand a degree of liquidity stress that might arise from
ongoing deterioration in the airline's situation.

DIAL's Ba2 corporate family rating continues to reflect: (1) the
airport's strong market position and robust passenger base, (2) its
planned INR98 billion capacity expansion at the Indira Gandhi
International Airport, (3) the evolving regulatory environment in
India; and (4) its obligation to pay 45.99% of its revenue to the
Airports Authority of India as a concession fee.

Upward ratings movement in the near term is unlikely, given that
the airport's financial leverage will remain elevated during the
expansion phase, under Moody's base case scenario.

On the other hand, Moody's could downgrade DIAL's Ba2 ratings if
the airport's funds from operations to debt fall below 3%-4% on a
sustained basis, which could result from: (1) a further increase in
the cost of the expansion or delay to the current expansion
program, (2) underperformance in DIAL's aeronautical or
non-aeronautical revenue relative to Moody's expectation, or (3)
lack of progress in further land monetization.

Moody's could also downgrade the ratings if there is a reduction in
the available funds at the airport for the expansion, because of
dividend payments or related-party transactions.

Moody's has used its Joint Default Analysis approach for Government
Related Issuers in assessing DIAL's ratings, because the company is
more than 20% government-owned through the Airports Authority of
India, a government agency.

DIAL's Ba2 corporate family rating combines: (1) the company's
Baseline Credit Assessment of ba2; and (2) the low likelihood of
support that Moody's believes the Government of India (Baa2 stable)
will provide to DIAL in the event that extraordinary financial
support is required. This assumption of support results in the
absence of uplift to the company's BCA.

The methodologies used in these ratings were Privately Managed
Airports and Related Issuers published in September 2017, and
Government-Related Issuers published in June 2018.

Delhi International Airport Limited is the concessionaire for
Indira Gandhi International Airport, which is located in the
political capital of India under an Operations, Management and
Development Agreement, entered in 2006 with the Airports Authority
of India, a government agency. The concession is for a 30-year
period, and DIAL has an option to extend it for another 30 years,
subject to meeting it defined performance criteria.

FORTUNE'S SPARSH: ICRA Maintains D Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR7.50-crore bank facilities of
Fortune's Sparsh Healthcare Private Limited continues to remain in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D ISSUER NOT COOPERATING".

                     Amount
   Facilities     (INR crore)   Ratings
   ----------     -----------   -------
   Fund-based-        7.50      [ICRA]D; ISSUER NOT COOPERATING;
   Term Loan                    Rating continues to remain in the
                                'Issuer Not Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests from ICRA,
the entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuer's performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.

Fortune's Sparsh Healthcare Private Limited is promoted by Dr.Rahul
Bade, Dr. Vikas Kude, Dr.Amit Wagh and Mr.Vinod Adaskar. The
company operates a 70 bedded super specialty hospital at Somatane
Phata which is close to 30 kms from Pune.

GANPATI ADVISORY: ICRA Keeps INR5cr Loan B+ Rating in Not Coop.
---------------------------------------------------------------
ICRA said the rating for INR5-crore bank facility of Ganpati
Advisory Limited) continues to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as [ICRA]B+ (Stable)
ISSUER NOT COOPERATING.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund Based-         5.00       [ICRA]B+ (Stable) ISSUER NOT
   Cash Credit                    COOPERATING; Rating continues
                                  to remain in 'Issuer Not
                                  Cooperating' category

ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.

Ganpati Advisory Limited was incorporated as a closely held public
limited company in 2003. It was formed to invest in group concerns,
which are involved in the manufacturing of cement. However, it has
started cement manufacturing by establishing its own facility in
2013 with an installed capacity of 600 metric tonne per day (MTPD).
The company procures clinker, gypsum and fly ash from the local
market to produce cement. GAL manufactures and sells cement under
the brand names of 'Shakti' and 'Kohinoor Gold Cement'. It sells to
wholesalers in Uttar Pradesh and Madhya Pradesh. Mr. Anil Kumar
Agrawal, Managing Director of the company, looks after the
day-to-day operations of the company and also heads the other group
companies involved in a similar line of business.

HAND IN HAND INDIA: ICRA Assigns 'B+' Rating to INR15cr Loan
------------------------------------------------------------
ICRA has assigned a rating to the bank facilities of Hand in Hand
India (HIHI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-
   Term Loan            15.00      [ICRA]B+(Stable); Assigned

Rationale

The rating factors in HIHI's small-sized and geographically
concentrated nature of operations. ICRA takes note of the trust's
dependence on external grants for its credit plus activities, its
modest internal generation and, its status as a public charitable
trust with limited regulatory supervision and access to external
capital. The assigned rating factors in Hand in Hand India's
(HIHI/trust) established track record in microfinance operations
and its adequate loan origination and internal control systems.

The trust' asset quality is good in its microfinance operations,
however ICRA notes that HIHI creates self-help groups (SHGs) and
transfers mature branches and members to Belstar Investment and
Finance Private Limited (Belstar). Going forward, the trust is also
expected to support Belstar by being its business correspondent.
HIHI is expected to achieve its own microfinance loan book of
INR70-90 crore over the medium term and undertake training and
other credit-plus services in its areas of operation.

Outlook: Stable

ICRA believes HIHI will continue to benefit from its experience in
microfinance, which along with its various social and credit-plus
activities would support portfolio growth. The outlook may be
revised to Positive if HIHI is able to scale-up its by
geographically diversifying its operations, while maintaining good
asset quality and, adequate capital and liquidity profile. The
outlook may be revised to 'Negative' in case of significant
weakening in the asset quality, liquidity or capital profile.

Key rating drivers

Credit strengths

Established track record and adequate internal control systems: The
trust has an established track record of more than a decade in
social welfare programmes and microfinance operations. It works
towards women empowerment and job creation, education of children
and elimination of child labour, skill development, village
upliftment and overall enhancement of health and environment. In
September 2018, the trust had 1.4 lakh active members across seven
states/Union Territories (UTs), namely Tamil Nadu, Karnataka,
Madhya Pradesh, Odisha, Maharashtra, Rajasthan and Puducherry. The
trust extends various credit-plus programmes to its members, which
provide it with a strong member base to leverage for its lending
activities. HIHI is governed by a six-member board of trustees,
three advisory trustees and a senior management team with related
experience in community development and SHG activities.

HIHI prudent loan appraisal systems and internal audit systems are
adequate for the current scale of operations. The trust's loan
appraisal systems include mandatory credit bureau check, analysing
the internal savings of the members and undertaking compulsory
training. The trust monitors early warning signals involving six
parameters to measure and assess the SHG group dynamics. It has
engaged two audit firms to carry out independent internal audits of
its branches once a year.

Good asset quality indicators; expected churn in the borrower
profile however is a concern: With prudent lending policies and an
effective loan collection mechanism, the trust has been able to
maintain good asset quality indicators with 90+ dpd at 0.9% on
September 30, 2018 (0.8% on September 30, 2017). HIHI transferred
31 branches and INR55.1-crore portfolio to Belstar in FY2018. It
further sold INR11-12 crore of microfinance portfolio to Belstar
during Q3FY2019. ICRA notes that HIHI is expected to transfer
seasoned borrowers to Belstar going forward; this along with its
concentrated nature of operations increases its overall portfolio
vulnerability.

Credit challenges

Modest scale and geographically concentrated operations: HIHI has a
modest scale of operations with a total portfolio of INR40.3 crore
as on September 30, 2018 (INR27.3 crore as on March 31, 2018). The
portfolio moderated to INR29.6 crore in December 2018, as it sold
portfolio of about INR11-12 crore during Q3FY2019 to Belstar. As on
December 31, 2018, it had 21 branches and its operations were
spread across seven states/UTs. HIHI's microfinance operations are
largely concentrated in Tamil Nadu, Maharashtra, and Rajasthan with
Tamil Nadu accounting for about 96% as on September 30, 2018. HIHI
is taking initiatives to geographically diversify its portfolio as
its credit-plus activities are expected to provide a platform for
expansion into new geographies. ICRA notes that the trust's
portfolio is expected to grow to INR70-90 crore over the medium
term and remain rangebound at these levels, going forward.

High dependence on external grants: HIHI is dependent on the grants
received to carry out its social/credit-plus activities and
training programmes. It funds its microfinance business with
external borrowings. To carry out its social activities, the trust
receives grants from foreign and domestic donors (largely domestic
corporates, which provide grants as a part of their corporate
social responsibility spending).

Weak profitability and low internal generation: Apart from
extending microfinance loans to its SHG members, HIHI carries out
other credit-plus activities as well. As the income generated by
its lending operations are also being utilised for social
activities, the net profitability is, therefore, quite low. The
operating expenses are high (cost-to-income ratio at 99.6% in
FY2018) as HIHI undertakes projects and conducts training
programmes on health and sanitation, skill development, and village
upliftment. The grants received by HIHI and earnings from its
microfinance operations are used for these programmes. As a result,
HIHI reported PAT/ATA and PAT/net worth of 0.2% and 0.6%,
respectively, in FY2018.

The trust also has a core corpus, interest on which is can be
utilized meet any contingent expenses that may arise. The corpus as
in September 2018 stood at INR33.5 crore, while its total
borrowings stood at INR16.2 crore.

Lack of regulatory oversight: Being a charitable trust, HIHI has
limited regulatory oversight and disclosure of information.

Liquidity Position:

As in December 2018, the trust had total cash and bank deposits of
about INR41 crore (provisional, INR53 crore in March 2018), of
which about INR13 crore corresponds to microfinance-related
activities. This, along with short-term nature of the microfinance
portfolio provides some comfort from a liquidity perspective.

HIHI also has funding relationships with three PSU banks and one
regional rural bank to support its incremental funding requirements
for the microfinance activities. The Trust, however, would be
dependent on grants for undertaking other social/credit plus
activities, thus timely and adequate grant receipts would be
crucial for maintaining an overall adequate liquidity profile.

Hand in Hand India (HIHI) is a part of the Hand in Hand Group,
established as a public charitable trust in November 2002.

Dr. Kalpana Sankar and Mr. Percy Bernevik are the co-founders of
HIHI and currently Dr.Kalpana Sankar is the Managing Trustee. It is
currently engaged in activities for women empowerment,
microfinance, child labour elimination, village upliftment and
natural resource management.

The trust's operations are spread across Tamil Nadu, Karnataka,
Madhya Pradesh, Odisha, Maharashtra, Rajasthan and Puducherry. As
on September 30, 2018, HIHI had a modest microfinance portfolio of
INR40.3 crore catering to 1,39,440 members and 15,362 active
borrowers through 21 branches across seven districts. About 96% (as
on September 30, 2018) of the portfolio is in Tamil Nadu. In
FY2018, HIHI transferred 31 branches and a portfolio of INR55.1
crore to Belstar compared to the transfer of 28 branches and a loan
portfolio of INR17.8 crore in FY2017.

HIHI reported a net surplus of INR0.12 crore on an asset base of
INR102.13 crore in FY2018 against a net surplus of INR0.06 crore on
an asset base of INR125.4 crore in FY2017.

HINDUSTAN CONSTRUCTION: CARE Reaffirms 'D' INR1607.53cr Loan Rating
-------------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Hindustan Construction Company Limited (HCC), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank
   Facilities-
   Term Loan          1607.53       CARE D Reaffirmed

   Long term Bank
   Facilities-
   Cash Credit        1065.38       CARE D Reaffirmed

   Long term/Short
   term Bank
   Facilities–Non
   Fund based         4775.80       CARE D Reaffirmed

   Non-Convertible
   Debenture I          46.73       CARE D Reaffirmed

   Non-Convertible
   Debenture II         56.07       CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of the ratings assigned to the bank facilities
and instruments of HCC takes into account the ongoing delays in
servicing the debt obligations. The debt servicing capability of
the company is stressed on account of a high debt burden and
resultant finance costs being incurred along with stressed working
capital cycle on account of delayed receipt of dues and claim
settlement from customers.

On March 26, 2019, HCC Limited has signed terms with a consortium
of investors led by Blackrock to monetize an identified pool of
arbitration awards for a consideration of INR 1750 crore. The
proposed transaction is expected to substantially deleverage the
balance sheet of HCC.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delays in Debt Servicing: There are on-going delays in servicing of
term loans and there are instances of overdrawals and devolvement
in fundbased and non-fund based limits ranging between 30 to 90
days.

On March 26, 2019, HCC Limited has signed terms with a consortium
of investors led by BlackRock with a view to monetize an identified
pool of arbitration awards and claims for a consideration of
INR1750 crore. Under the terms of the transaction, HCC will
transfer its beneficial interest and rights in an identified
portfolio of arbitration awards & claims to a
special purpose vehicle (SPV) controlled by a consortium of
investors, including BlackRock. The proceeds will then be
utilized to entirely repay the outstanding term loan of INR942
crore and INR308 crore of OCDs, while the balance funds would be
used to meet the working capital requirements of HCC. This is
substantially expected to deleverage the balance sheet position of
the company, thereby reviving the company from its existing
financial turmoil.

Elongated working capital cycle: The working-capital cycle of the
company continues to be elongated owing to delays in recoveries
from customers and high amount of inventory held due to delays in
commencement of projects.

HCC was promoted by the late Mr. Walchand Hirachand in 1926 and is
presently spearheaded by Mr. Ajit Gulabchand, Chairman and Managing
Director. HCC is one of the large construction companies in India,
engaged in construction activities which include roads, bridges,
ports, power stations, water supply and irrigation projects. The
company's construction capabilities include solutions for
construction of projects in various complex industries including
hydel power, water solution systems, nuclear power and process
plants and transportation.

HCC group of companies comprises mainly of HCC Infrastructure
Company Limited (HICL), HCC Real Estate Limited (HREL), Lavasa
Corporation Limited (LCL), Steiner AG, Zurich (SAG), and Highbar
Technologies Limited (HTL). HICL is engaged in construction and
management of assets in the areas of transportation. HREL develops
and executes high-value real estate projects including Integrated
Urban Development and Management, IT Parks and Commercial Offices,
Township Development, and Urban Renewal projects. LCL is India's
first planned hill city which includes integrated development of
five towns. SAG specializes in turnkey development of new buildings
and refurbishments, and offers services in all facets of real
estate development and construction. HTL provides IT solutions to
the infrastructure industry.

IREO GRACE: CARE Migrates D Rating From Not Cooperating
-------------------------------------------------------
CARE Ratings has revised the rating on bank facilities of Ireo
Grace Realtech Private Limited (IGRPL) from Issuer Not Cooperating
category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank      497.50      CARE D, Revised from CARE D;
   Facilities                      ISSUER NOT COOPERATING

Detailed Rationale & Key Rating Drivers

The revision in the ratings of IGRPL takes into account the delay
in repayment of its debt obligations. The delays were largely
attributable to slow sales momentum and lower sales realization
which adversely impacted the liquidity of the company leading to
delays. Going forward, the company's ability to service the debt
obligations in a timely manner, completion of ongoing projects
without time and cost overrun leading to higher booking status,
stage payments and thereby improving the overall liquidity profile
of the company shall remain the key rating sensitivities.

Key Rating Weaknesses

Delay in debt servicing: The company has delayed in debt repayment
on account of cash flow mismatches on the back of subdued real
estate scenario, significant drop in sales momentum and sales
realizations.

Key Rating Strengths

Experienced promoters and management team: IGRPL is promoted by
IREO, a private equity fund with assets of ~USD 1.7 billion
invested in India. IGRPL is managed by professionals with
experience in the real estate industry. The overall operations of
the company are managed by team of professionals which includes Mr.
Anupam Nagalia (Chief Operating Officer), who is a qualified
Chartered Accountant and Company Secretary. Before joining IGRPL,
he has worked with Vatika Group. Mr. Jai Bharat Aggarwal (Director
Finance) is responsible for making financial decisions for the
company. IREO group has established its track-record of delivery
with completion of two group housing projects in group company Ireo
Private Limited having more than 27.59 lakh square feet(lsf) of
saleable area in Gurgaon region. Furthermore, IREO Group has also
handed over 22 villas, 17 floors and 205 plots in township project
at Ludhiana developed under group company Ireo Waterfront Private
Limited and handed over 200 plots in Mohali developed under group
company Puma Realtors Private Limited.

Incorporated in 2010, Ireo Grace Realtech Private Limited (IGRPL)
is part of the IREO group, a real estate private equity fund with
investable assets of ~USD 1.7 billion. Presently, IGRPL is
developing a residential group housing project in Gurgaon under the
name of 'IREO The Corridors'. IGRPL has accumulated land bank in
Gurgaon region and proposes to launch more projects going forward.
Presently, IGRPL has launched one GH housing project (The
Corridors) on a land area of 37.5 acres comprising of 2,009 units.

JONAS PETRO: ICRA Maintains D Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA said the ratings for the bank facilities of Jonas Petro
Products Private Limited continue to remain in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D;
ISSUER NOT COOPERATING".

                     Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long-term-         0.75       [ICRA]D ISSUER NOT COOPERATING;
   Cash Credit                   Rating continues to remain in
                                 the 'Issuer Not Cooperating'
                                 category

   Long-term-         2.84       [ICRA]D ISSUER NOT COOPERATING;
   Term Loan                     Rating continues to remain in
                                 the 'Issuer Not Cooperating'
                                 category

   Long-term-         1.91       [ICRA]D ISSUER NOT COOPERATING;
   Unallocated                   Rating continues to remain in
                                 the 'Issuer Not Cooperating'
                                 category

   Short-term-        0.05       [ICRA]D ISSUER NOT COOPERATING;
   Bank Guarantee                Rating continues to remain in
                                 the 'Issuer Not Cooperating'
                                 category

   Short-term-        1.45       [ICRA]D ISSUER NOT COOPERATING;
   Unallocated                   Rating continues to remain in
                                 the 'Issuer Not Cooperating'
                                 category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.

Jonas Petro Products Private Limited (JPPPL) was established in the
year 2010 and is engaged in conversion of waste oil to recycled
fuel oil/reclaimed fuel oil (RFO). JPPPL has a storage and
processing unit of 12000 kilo liter per annum situated in
Mangalore, Karnataka. The company also has a well-equipped waste
water treatment facility. The company commenced its operations in
April 2012.

KISAN MOULDINGS: CARE Reaffirms D Rating on INR300cr Loans
----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Kisan Mouldings Limited, as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank
   Facilities          208.75     CARE D Reaffirmed

   Short-term Bank
   Facilities           91.25     CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation of ratings to the bank facilities of Kisan
Mouldings Limited factors in the continuing delay in servicing of
its debt obligation.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delays in servicing of debt obligations: There are continuing delay
in debt servicing as reported by the lenders and company.

Established in 1982, Kisan Mouldings Limited is primarily involved
in manufacturing of PolyVinyl Chloride (PVC) pipes and fittings.
They also manufacture custom moulded articles and moulded
furniture. It processes around 50,000 metric tonnes of polymer each
year. The products are marketed under its own brand viz. KISAN &
KML CLASSIC through 11 branch offices spread across major cities
catering to existing base of 100 distributors and 3,000 dealers'
network. The company has its manufacturing units at 5 locations
while its registered office is in Mumbai. They have recently
entered into manufacturing of water tanks, which is operational in
Maharashtra currently.

MANDHANA INDUSTRIES: CARE Migrates D Rating to Not Cooperating
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Mandhana
Industries Limited (MIL) to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank
   Facilities         879.63      CARE D; Issuer Not cooperating;
                                  Based on best available
                                  information

   Short-term Bank
   Facilities          87.50      CARE D; Issuer Not cooperating;
                                  Based on best available
                                  information


   Non-Convertible
   Debentures          57.00      CARE D; Issuer Not cooperating;
                                  Based on best available
                                  information


Detailed Rationale and Key Rating Drivers

CARE has been seeking information from MIL to monitor the ratings
vide e-mail communications dated October 31, 2018, November 30,
2018, December 31, 2018, January 1, 2019, January 3, 2019, January
7, 2019 , February 5, 2019, February 7, 2019, February 26, 2019 and
several other emails. However, despite CARE's repeated requests,
the company has not provided the requisite information for
monitoring the ratings. In line with the extant SEBI guidelines,
CARE has reviewed the rating on the basis of the publicly available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. Further, Mandhana Industries Limited has
not paid the surveillance fees for the rating exercise as agreed to
in its Rating Agreement. The rating on Mandhana Industries
Limited's bank facilities will now be denoted as CARE D/CARE D;
Issuer Not Cooperating.

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

Detailed Rationale & Key Rating Drivers

At the time of last rating on January 17, 2018 the following were
the rating weaknesses.

Key Rating Weaknesses

The rating assigned to the bank facilities of Mandhana Industries
Limited (MIL) factors in continued delays in servicing debt
obligation on account of stretched liquidity position.

MIL's ability to improve its cash flows and regularize its debt
servicing are the key monitorables.

Mandhana Industries ltd (MIL) is engaged primarily in manufacturing
of textile fabric (grey and finished fabric). MIL had a yarn dyeing
capacity of 4.3 mn kg per annum, weaving capacity of 36 mn mtrs of
grey fabric per annum, fabric processing capacity of 72.60 mn mtrs
per annum and garmenting capacity of 6.60 mn pieces per annum. The
garmenting facility is located at Bangalore while all other
facilities are located at MIDC, Tarapur. Apart from this, MIL has a
1 mn piece garmenting facility at Baramati.

MOON SYNDICATE: CARE Migrates D Rating to Not Cooperating Category
------------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Moon
Syndicate to Issuer Not Cooperating category.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long term Bank       9.00      CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information.

Detailed Rationale and key rating drivers

CARE has been seeking information from Moon Syndicate to monitor
the rating vide e-mail communications/letters dated February 5,
2019, February 6, 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 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 Moon
Syndicate'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.

At the time of last rating in December 21, 2017 the following were
the rating strengths and weaknesses:

Detailed description of the key rating drivers

Key Rating Weakness

On-going delays in debt servicing: The entity has very long
inventory period and the same has piled up with the entity on
account of low orders from its customers. Due to slow movement in
inventory period and delayed payment from its customers lead to
stressed liquidity position of the entity. The same is revealed
from its over utilisation in cash credit account. Currently there
is overdrawing in the cash credit account for more than 30 days.

Chhattisgarh based Moon Syndicate was established in April 1990 by
Mr. Sontosh Raj Yadav. Since its inception, the entity has been
engaged in mining, crushing and supply of iron ore, manganese ore
and ferro alloys. Presently, the entity has 226 equipment base
which includes 59 excavators & loaders, 37 dozers, 116 mining
equipment and 14 crushing equipment. The crushing facilities of the
entity are located in the state of Chhattisgarh, Madhya Pradesh,
Jharkhand and Maharashtra with aggregated crushing capacity of
9,60,000 metric ton per annum.

MULA AGRO: ICRA Reaffirms 'B+' Rating on INR1cr LT Loan
-------------------------------------------------------
ICRA reaffirmed ratings on certain bank facilities of Mula Agro
Products Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-
   Unallocated          1.00       [ICRA]B+ (Stable); Reaffirmed

Rationale

The rating remains constrained by Mula Agro's muted profitability
with a major portion of its revenues being contributed by the sale
of milk, where value addition remains limited. The rating also
takes into consideration the decline in operating income (OI) to
INR80.68 crore in FY2018 from INR89.25 crore in FY2016 on account
of a decline in capacity utilisation to 65.72% in FY2018 from
86.10% in FY2016. ICRA also notes the susceptibility of the firm's
operating margins to adverse fluctuations in milk procurement
prices. The rating further considers the intense competition faced
by the firm from organised and unorganised players in the dairy
industry.

However, the rating reaffirmation considers the extensive
experience of the promoters with an operational track record of
more than two decades in the dairy industry. It also factors in the
firm's proximity to suppliers, which ensures the timely receipt of
raw milk and unhindered flow of production. ICRA also notes the
comfortable capital structure of the firm, supported by low levels
of debt.

Outlook: Stable

ICRA believes that Mula will continue to benefit from the extensive
experience of its promoters in the dairy industry. The outlook may
be revised to Positive if the firm is able to register a
significant improvement in the OI and profit margins despite
fluctuations in milk procurement prices. The outlook may be revised
to Negative if the OI deteriorates in the coming years with an
adverse impact on profitability.

Key rating drivers

Credit strengths

Vast experience of promoters: Incorporated in 1993, Mula's
promoters have extensive experience of more than two decades in the
dairy industry, which has enabled the firm to establish its
position in the domestic market.

Proximity to suppliers ensures timely receipt of raw milk: Mula's
manufacturing facility is in Rahuri, the highest milk-producing
region in Ahmednagar. This ensures the timely receipt of raw milk
and unhindered flow of production.

Comfortable capital structure supported by low debt levels: The
firm's outstanding debt consists only of unsecured loans of
INR0.002 crore with no outstanding bank facilities. Moreover, its
net worth stood at INR7.74 crore as on February 28, 2019, resulting
in a comfortable capital structure.

Credit challenges

Decline in revenues in FY2018 owing to reduction in capacity
utilization: The firm's OI reduced by 9.86% to INR80.47 crore in
FY2017 from INR89.25 crore in FY2016 and was at a similar level
(INR 80.68 crore) in FY2018. The decline was due to a reduction in
capacity utilisation to 65.72% in FY2018 from 86.10% in FY2016.
However, the firm was able to register modest revenues of INR79.34
crore in 11M FY2019, led by an increase in the average sales
realisation following an increase in milk prices.

Muted profitability in FY2017 and FY2018 with revenues primarily
from sale of milk: The firm's operating margins declined to 2.79%
in FY2017 from 3.45% in FY2016 and further to 1.84% in FY2018. This
was because of the fluctuation in milk procurement prices and the
low value addition in the business of the sale of processed milk.
Nevertheless, the firm registered an improvement in operating
profit margins in 11M FY2019, which increased to 2.81%.

Intense competition from co-operatives, other private players and
unorganised sector: The dairy industry is highly fragmented and
comprises small private dairies, established private players and
milk co-operatives. This limits the firm's pricing power.

Margins susceptible to fluctuations in milk procurement prices -
The price of raw milk varies as per fluctuations in the demand for
skimmed milk powder (SMP). Thus, an increase in the price of SMP in
the international markets leads to a rise in milk procurement
prices. However, if the price of packaged milk remains unchanged,
it squeezes the profitability margins of companies that process and
sell milk.

Liquidity position
Mula did not have any external term loans on its books as of
February 28, 2019. Its fund flow from operations (FFO) reduced in
FY2017 and FY2018 on account of lower operating margins but
increased again in 11M FY2019. Mula has not availed any working
capital limits. ICRA does not foresee any major concerns on
liquidity, given the absence of capacity expansion plans, lack of
term debt repayments and the minimal requirement of incremental
working capital funding.

Incorporated in 1993, Mula Agro Products Private Limited processes
milk and manufactures milk products. The firm's operations are
collectively managed by its directors, who have an experience of
over two decades in the dairy industry. Mula's manufacturing
facility, which is in Rahuri, Ahmednagar, has a processing capacity
of 1,00,000 litres per day. The manufacturing facility is well
equipped with the requisite infrastructure for the collection,
chilling, pasteurisation, grading, packaging and storage of milk
and milk-derived products.

As per provisional financials, the firm reported a net profit of
INR1.22 crore on an OI of INR79.34 crore in 11M FY2019 and a net
profit of INR0.66 crore on an OI of INR80.68 crore in FY2018.

MURALIKRISHNA INFRACON: CARE Moves D Rating to Not Cooperating
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of
Muralikrishna Infracon (Bangalore) Private Limited (MKI) to Issuer
Not Cooperating category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       23.50      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   Information

   Short-term Bank       9.00      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from MKI to monitor the rating
vide email communications/letters dated February 15, 2019, February
25, 2019, March 4, 2019, March 6, 2019 and March 7, 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 publicly available
information which however, in CARE's opinion is not sufficient to
arrive at fair rating. The rating on Muralikrishna Infracon
(Bangalore) Private Limited's bank facilities will now be denoted
as CARE D/CARE D; ISSUER NOT COOPERATING.

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

Detailed description of the key rating drivers

At the time of last rating on January 4, 2019 the following were
the rating strengths and weaknesses (updated for the information
available from Registrar of Companies: The ratings assigned to the
bank facilities of Muralikrishna Infracon (Bangalore) Private
Limited (MIBPL) continue to remain constrained by ongoing delays in
meeting of debt obligation. The rating also takes into account
experienced promoters.

Key Rating Weakness

Ongoing delays in meeting of debt obligations: Muralikrishna
Infracon (B) Pvt Ltd has been facing liquidity issues from past few
months, due to which the company is unable to service the interest
and installment obligation on term loan facility. There are ongoing
delays in servicing the interest and installment in term loan
facility.

Key Rating Strengths

Experienced promoters: Mr. M. Muralikrishna, the managing director
of MKI, has an experience of around 20 years in the construction
industry. The company has completed projects like construction of
storm water drains and culverts, construction of ground level
reservoirs with drinking water hydrant, construction of integrated
omni bus stand in Madurai region and execution of sixlaning
road work in Kavali-Nellore section amongst others.

Muralikrishna Infracon (B) Private Limited (MKI), incorporated on
December 27, 2013, was formed by conversion of proprietary concern,
MK Builders & developers, operational since 2009, owned by
proprietor Mr M. Muralikrishna. The company is a Class 1 Government
contractor registered with PWD of Tamil Nadu. MKI mainly undertakes
construction of water drains, culverts, and sewage systems. The
company has also entered into laying of roads. The business
activities are majorly limited to Tamil Nadu region.

PREET LAND: CARE Assigns 'D' Rating to INR9.50cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Preet
Land Promoters and Developers Private Limited (PLP), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term bank
   facilities          9.50        CARE D Assigned

Detailed Rationale & Key Rating drivers

The rating assigned to the bank facilities of PLP factor in the
ongoing delays in debt servicing of the debt obligations due to the
stressed liquidity position of the company.

Detailed description of the key rating drivers

Key Rating Weaknesses

Ongoing delays in debt servicing due to the stressed liquidity
position of the company: There are ongoing delays in servicing of
the principal amount of the term loan. The delays are cleared
with-in two months. The delays were on account of weak liquidity as
the company was unable to generate sufficient funds on timely
manner leading to cash flow mismatches.

Low project preparedness level: In respect to the project
preparedness, the project is at nascent stage of development with
sale of only 17.19 acres of building and plot area out of total
saleable area of INR42.57 acres. The company is exposed to the
execution risk for the project under development. Thus, with major
area unsold, the ability of the company to make the sales at the
projected sales price and in a timely manner will remain a key
rating sensitivity.

Marketability risk and market competition: The risk of marketing
and selling of the commercial as well as residential buildings and
plots remains. Further, the Indian real estate industry is highly
fragmented in nature with the presence of a large number of
organized and unorganized players spread across various regions.
Many townships are emerging in cities like Mohali and Chandigarh
and small players are coming with projects in these areas.

Cyclicality associated with real estate industry and exposure to
local demand-supply dynamic: The company is exposed to the
cyclicality associated with real estate sector which has direct
linkage with the general macroeconomic scenario, interest rates and
level of disposable income available with individuals. In case of
real estate companies, the profitability is highly dependent on
property markets exposing them to the vagaries of property markets.
A high interest rate scenario could discourage the consumers from
borrowing to finance the real estate purchases and
may depress the real estate market.

Key Rating Strengths

Experienced promoters in real estate industry: The company is
managed by Mr. Raghubir Singh Dhiman, Mr. Charan Singh Saini and
Mr. Kanwal Jit Singh collectively having an industry experience of
10 years, 14 years and 15 years respectively their association with
PLP and other regional entities. The promoters have adequate acumen
about various aspects of real estate business which is likely to
benefit PLP.

Preet Land Promoters and Developers Private Limited (PLP) was
incorporated as a private limited company in November 2005 and is
currently being managed by Mr. Raghubir Singh Dhiman, Mr. Charan
Singh Saini and Mr. Kanwal Jit Singh collectively. PLP is engaged
in real estate business and is currently developing its first real
estate project named "Preet City" at Mohali (Punjab) on a total
area of 100 acres. The project is being developed in commercial as
well as residential buildings and plots.

PREMDHARA AGRO: CARE Assigns B+ Rating to INR6.87cr Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Premdhara Agro India LLP (PAL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           6.87       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of PAL is constrained on
account of nascent stage of its operations and stabilization risk
associated with recently completed capex, constitution as
partnership firm, susceptibility to fluctuation in raw material
prices and highly regulated industry along with fragmented nature
of industry and low entry barriers.  The rating, however, derives
strength from experienced partners in trading of agro commodities,
close proximity to raw material sources and favourable industry
scenario.

PAL's ability to achieve envisaged sales and profitability while
managing its working capital efficiently would be key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Successful completion of project with nascent stage of operations
and stabilization risk associated with recently completed capex:
PAL has successfully completed its entire project for the
processing and milling of boiled rice and incurred total cost of
INR7.90 crore, which was funded by the term loan of INR5.00 crore,
partners' contribution of INR2.30 crore and remaining through
unsecured loan of INR0.60 crore within envisaged time. Initial cost
estimated was INR7.30 crore however cost over-run was catered
through unsecured loans of INR0.60 crore. PAL's project got
completed in February 2019 and has started trail run in month of
March and commercial operations are envisaged to begin from April
2019.

Constitution as a partnership firm: PAL is a limited liability
partnership firm hence, constitution as partnership firm restricts
its overall financial flexibility in terms of limited access to
external funds for any future expansion plans. There is an inherent
risk of withdrawal of capital due to the partnership constitution
of the entity. The partners may withdraw capital from the business
as and when it is required, which may put pressure on capital
structure of the firm.

Susceptibility to fluctuation in raw material prices and highly
regulated industry: PAL is primarily engaged in the processing and
milling of agro based products like rice. This product being an
agricultural output and staple food, its price is subject to
intervention by the government. The prices are also sensitive to
seasonality in grain production, which is highly dependent on
monsoon. Any volatility in the grains like paddy prices will have
an adverse impact on the performance of the rice mill. Given the
market determined prices for finished product vis-à-vis fixed
acquisition cost for raw material, the profitability margins are
highly vulnerable.

Fragmented nature of industry and low entry barriers: PAL operates
in lower segment of the value chain and faces stiff competition
from other players in the area. The commodity nature of the product
makes the industry highly fragmented with more than two-third of
the total number of players being in unorganized sector with very
less product differentiation. Due to the fragmented nature and low
entry barriers in the industry, the agro processing commodity mill
units have limited flexibility over pricing their products which
also results in low profit margins.

Key Rating Strengths

Experienced partners: PAL was formed by three partners namely Mr.
Kalpesh Patel who hold related experience in same line of business
and diversified experience through his association with related
firm Premdhara Beverages. Other two partners namely Mr. Shailesh
Patel and Mr. Navin Patel are farmers having farms of paddy as well
as other agriculture products.

Close Proximity to raw material sources and favourable industry
scenario: The manufacturing facility of PAL is located in Bavla
district of Gujarat, which is the most convenient place of food
grains trading. The location also provides proximity to sources of
raw material access and smooth supply of raw materials at
competitive prices and lower logistic expenditure (both on the
transportation and storage). Further, rice and wheat 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.

Kalol (Gujarat) based PAL was formed in October 2017 as a limited
liability partnership firm by three partners and undertook a green
field project for manufacturing of boiled rice with a manufacturing
facility with a proposed installed capacity of 19200 (MTPA) Metric
Tonnes Per Annum at a total envisaged project cost of INR7.30
crore. PAL has incurred INR7.90 crore till March 22, 2019 which was
funded by term loan of INR4.83 crore (disbursed amount till date),
INR2.47 crore of partner's capital and unsecured loans of INR0.60
crore.

PUNJ LLOYD: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE Ratings has migrated the rating on bank facilities of Punj
Lloyd Limited (PLL) to Issuer Not Cooperating category.

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long-term Bank     4,995.40     CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   Information

   Long-term/Short-   7,914.76     CARE D; Issuer not cooperating;
   Term Bank                       Based on best available
   Facilities                      Information

   Non-Convertible      135.00     CARE D; Issuer not cooperating;

   Debenture I                     Based on best available
                                   Information

   Non-Convertible      300.00     CARE D; Issuer not cooperating;

   Debenture II                    Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

Punj Lloyd Limited has not paid the surveillance fees for the
rating exercise agreed to in its Rating Agreement. In line with the
extant SEBI guidelines, CARE's rating on Punj Lloyd Limited's
instruments 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 ongoing delays in servicing of debt
obligations.

Detailed description of the key rating drivers

At the time of last rating on March 29, 2018 the following were the
rating weaknesses:

Key Rating Weaknesses

Delay in Debt servicing obligation: The company's financial
performance continues to remain weak. Total operating income for
FY18 increased to INR4397 crore from INR 4015.56 crore in FY17. The
company reported net profit of INR317.37 in FY18 as compared to
loss of INR850.58 crore in FY17. For the 9MFY19, PLL reported the
total operating income of INR2401.37 crore as against INR3279 crore
in 9MFY18 and net loss of INR4476.27 crore in 9MFY19 as against net
loss of INR626.70 crore in 9MFY18. On account of weak financial
performance, the liquidity position of the company remains stretch,
leading to delays in debt servicing.

Punj Lloyd Ltd (PLL), promoted by Mr Atul Punj in 1988, is an
engineering & construction company in India, providing integrated
design, engineering, procurement, construction (EPC) and project
management services for oil & gas, process industry and
infrastructure sector projects. PLL has various subsidiaries
operating in multiple geographies and engaged in EPC in the field
of oil and gas and infrastructure sector.

RANGA PARTICLE: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Ranga Particle Board Industries Limited
        11-1-939/8, Old Mallepally
        Hyderabad 500001 TG

Insolvency Commencement Date: April 8, 2019

Court: National Company Law Tribunal, Hyderabad Bench

Estimated date of closure of
insolvency resolution process: October 5, 2019

Insolvency professional: Chakravarthi Srinivasan

Interim Resolution
Professional:            Chakravarthi Srinivasan
                         1-4-211/42/1, Pradhamapuri Colony
                         Sainikpuri, Hyderabad 500062
                         E-mail: csriniirp@gmail.com

Last date for
submission of claims:    April 22, 2019


REGENCY GANGANI: ICRA Moves D Rating to Not Cooperating Category
----------------------------------------------------------------
ICRA has moved the rating for INR49.71 crore bank facility of
Regency Gangani Energy Private Limited under the 'Issuer Not
Cooperating' category. The rating is now denoted as [ICRA]D ISSUER
NOT COOPERATING.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Fund         49.71      [ICRA]D ISSUER NOT
   based TL                          COOPERATING; Rating moved
                                     under 'Issuer Not
                                     Cooperating' category

ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.

Regency Gangani Energy Private Ltd (referred as RGEPL) is a company
promoted by the Regency group to develop, own and operate a 9.5 MW
small hydro power (SHP) project (referred to as Gangani) in
Uttarkashi District of Uttaranchal. The Gangani is a run of river
type scheme on River Yamuna, which will utilize the flows of the
river to harness approximately 67 m of net head available between
the forebay site and the power house. The scheme envisages
diversion of inflows by constructing trench weir across the river.
The diverted flows will be carried to 2 horizontal axis Francis
Turbines of capacity 4.75 MW each through desilting tank, cut and
cover type power channel, forebay and penstocks. The electricity
produced at 3.3 kV will be stepped upto 33 kV and evacuated to the
UPERC pooling substation via a 4 km single circuit 33 kV
transmission line.

The project is expected to generate 46 MU in a 75% dependable year
(55% PLF) and is exempt from providing free power to the government
for the first 12 years of operation. These power generation
estimates are based on the studies conducted by UPCL in
consultation with the company. In addition, Regency group employees
have been monitoring the site characteristics since 1994 and their
data validates this hydrology.

REGENCY YAMUNA: ICRA Moves 'D' Rating to Not Cooperating Category
-----------------------------------------------------------------
ICRA has moved the rating for INR21.37 crore bank facility of
Regency Yamuna Energy Limited under the 'Issuer Not Cooperating'
category. The rating is now denoted as [ICRA]D ISSUER NOT
COOPERATING.

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long term Fund        21.37      [ICRA]D ISSUER NOT
   based TL                         COOPERATING; Rating moved
                                    under 'Issuer Not
                                    Cooperating' category

ICRA has been seeking information from the entity so as to monitor
its performance. Despite repeated requests by ICRA, the entity's
management has remained non-cooperative. The current rating action
has been taken by ICRA on the basis of the best
available/dated/limited information on the issuers' performance.
Accordingly, lenders, investors and other market participants are
advised to exercise appropriate caution while using this rating as
it may not adequately reflect the credit risk profile of the
entity.

Regency Yamuna Energy Ltd (referred as RYEL) is a company promoted
by the Regency group to develop, own and operate a 5.70 MW small
hydro power (SHP) project (referred to as Badyar Project) in
Uttarkashi District of Uttarakhand. The Badyar is a run of river
type scheme on River Badyar, which will utilize the flows of the
river to harness approximately 126 m of net head available between
the forebay site and the power house. The scheme envisages
diversion of inflows by constructing trench weir across the river.
The diverted flows will be carried to 2 horizontal axis Francis
Turbines of capacity 2.85 MW each through desilting tank, cut and
cover type power channel, forebay and penstocks. The power will be
generated at 3.3 KV which was stepped upto 33 KV by two number step
up transformers of 3 MVA each of 3.3 / 33 KV ratios which will be
taken to 33 KV bus of the switch yard. The metering will be done at
Power House and Grid connectivity at Rajtar at 2.5 km from the
Power House.

The project is expected to generate 28.44 MUs in a 72% dependable
year (57.08% PLF). These power generation estimates are based on
Regency group employees who have been monitoring the site
characteristics since 1994 and their data validates this
hydrology.


SHRIRAM TRANSPORT: Fitch Rates $500MM Sr. Sec. Notes Final 'BB+'
----------------------------------------------------------------
Fitch Ratings has assigned a final rating of 'BB+' to India-based
Shriram Transport Finance Company Limited's (STFC, BB+/Stable)
USD500 million 5.95% senior secured notes due 2022, which carry a
fixed-rate coupon payable semi-annually.

This follows the completion of the securities issue and receipt of
final documents conforming to information previously received. The
final rating is the same as the expected rating assigned on April
14, 2019.

The notes are secured by a fixed-charge over specified accounts
receiveable, in line with STFC's domestically issued secured bonds
and rupee-denominated senior secured bonds issued overseas. The
notes are also subject to maintenance covenants that require STFC
to meet regulatory capital norms at all times, maintain a net
non-performing loan ratio equal to or less than 7% and ensure the
security coverage ratio is equal to or greater than 1x at all
times.

STFC has issued the notes in the international market under the
central bank's new external commercial borrowings framework issued
in January 2019.

KEY RATING DRIVERS

STFC's US dollar-denominated bonds are rated the same level as its
Long-Term Foreign-Currency Issuer Default Rating in accordance with
Fitch's rating criteria.

Fitch considers the senior secured debt to be an obligation whose
non-payment would best reflect uncured failure, as most of STFC's
debt is secured. The company can issue unsecured debt in the
overseas market, but such debt is likely to constitute a small
portion of its funding and thus cannot be viewed as its primary
financial obligation.

SINTEX PREFAB: CARE Lowers Rating on INR250cr NCD to 'C'
--------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Sintex Prefab and Infra Limited (Sintex Prefab), as:

                          Amount
   Facilities           (INR crore)    Ratings
   ----------           -----------    -------
   Long-term Bank            50.00     CARE C Revised from
   Facilities                          CARE BBB+; Stable

   Non-Convertible          112.50     CARE C Revised from
   Debentures-I (NCD)                  CARE BBB+; Stable

   Non-Convertible          137.50     CARE C Revised from
   Debentures-II (NCD)                 CARE BBB+; Stable

   Non-Convertible          250.00     CARE C Revised from
   Debentures-III (NCD)                CARE BBB+; Stable

Detailed Rationale and Key Rating Drivers

The revision in rating assigned to the NCD-III (ISIN: INE972T07035)
of Sintex Prefab is on account of one day delay in servicing of its
interest. The interest payment which was due on April 8, 2019 was
paid on April 9, 2019.

Further, the revision in ratings of NCD-I, NCD-II and bank
facilities is on account of stress in its liquidity arising from
subdued performance which has resulted in delays in servicing of
the above-rated NCD-III and certain bank facilities (which are
however not rated CARE).

The rating is further constrained on account of low revenue
visibility with gradual reduction of business from two out of its
three business segments resulting in significant reduction in its
scale of operations, profitability and return ratios along with
vulnerability of its profitability to volatility in crude-based raw
material prices. Further, as large portion of debt was still
outstanding (despite buy back of a portion of NCDs in September
2018) there is heightened need to refinance/buy back the debt since
the scheduled debt repayments are expected to be disproportionate
to the envisaged cash accruals from the continuing business,
despite available liquidity/proposed equity infusion arising from
issue of share warrants to the promoters in its parent entity
Sintex Plastics Technology Ltd. (SPTL), which, as was earlier
articulated by the company's management, was expected to be largely
utilized for providing timely need-based support to Sintex Prefab.

Ability of Sintex Prefab to establish its debt servicing track
record along with significant increase in its scale of operations
along with improvement in its profitability and debt coverage
indicators would be the key rating sensitivities. Further, timely
support from SPTL for uninterrupted operations of Sintex Prefab
would also be a key credit monitorable.

Detailed description of the key rating drivers

Key Rating Weaknesses

Delay in servicing of debt obligations: Sintex Prefab has delayed
in the payment of its interest on above-rated NCD-III. For NCD-III
(ISIN: INE972T07035) the interest which was due on April 8, 2019
has been paid on April 9, 2019 as per the company's submission on
the Stock Exchange. Further, for one term loan (not rated by CARE)
there are ongoing delays as per due diligence with the banker.

However, for NCD-I (ISIN: INE972T07019), NCD-II (ISIN:
INE972T07043) and for other bank facilities rated by CARE the debt
servicing is regular as per declaration of the company and
confirmation from the concerned lender and by the debenture
trustee.

Sharp deterioration in operating profitability and debt coverage
indicators along with lower revenue visibility: During FY18, Sintex
Prefab had reported a total operating income of INR1,705 crore with
a PBILDT margin of 10.45%. The PBILDT margin had declined sharply
by 1093 bps compared to FY17 and it was also significantly lower
than previously envisaged. This was mainly due to higher cost of
material consumed as key raw materials are crude oil derivatives,
along with significant decline in the sales revenue by over 50% in
the relatively high-margin prefab business during FY18. As a
consequence, its debt coverage indicators also witnessed sharp
deterioration during FY18 with interest coverage getting more than
halved compared to FY17 and Total Debt/GCA deteriorating from 4.51
times during FY17 to 11.64 times during FY18. Consequently, its
Return on Capital Employed (RoCE) fell very sharply from ~25% in
FY17 to 3.70% during FY18. Factoring the above deterioration in the
credit quality of Sintex Prefab, its credit rating was downgraded
in May and October 2018. The deterioration in its performance
continued in 9MFY19, where, as per the provisional results
published on stock exchange, it reported a total operating income
of INR679 crore along with PBIT of INR56 crore. As articulated by
the management, the company expects a significant reduction in its
revenue going forward mainly due to its plans to curtail some
government business where there were long receivables. As of June
2018, Sintex Prefab had outstanding orders of INR850 crore which
reflects low revenue visibility; also it is less diversified across
various segments than previously envisaged. Due to continued lower
cash accruals and significantly high scheduled debt repayment
liabilities, the company has encountered stressed liquidity
recently.

Vulnerability of profitability to volatility in raw material
prices: Plastic resins, granules and powder are the key raw
materials of Sintex Prefab. Since most of the raw materials
required by Sintex Prefab are crude oil derivatives, their prices
are also subject to volatility in line with those of global crude
oil prices.

Liquidity Analysis
Sintex Prefab's debt coverage indicators are constrained on account
of disproportionate cash accruals from its core operations as
compared to its scheduled debt repayment obligations on the back of
unavailability of fund based working capital facility. However,
Sintex Prefab's liquidity was envisaged to take comfort from the
available liquidity in its parent entity, SPTL which was also
strongly articulated by the company management earlier. SPTL had
issued convertible share warrants to its promoters which were fully
subscribed till December 31, 2018, against which the company has
allotted equity shares of ~Rs.400 crore. As previously articulated
by the company management, these funds were expected to be largely
utilized for providing timely need-based support to Sintex Prefab.
However, the support from SPTL has not been timely which has led to
delays in servicing of its debt obligations.

Further, as per the shareholding pattern of SPTL as on December 31,
2018 published on stock exchange, the proportion of pledge of
promoters' shareholding as a percentage of their total shareholding
in SPTL increased from 52.57% (i.e. 16.80% of total share capital)
as on March 31, 2018 to 71.34% (i.e. 24.07%) as on December 31,
2018. This has further restricted the financial flexibility of the
promoters for supporting the operations of the company.

Analytical Approach: Standalone

Sintex Prefab is a wholly owned subsidiary of Sintex Plastics
Technology Limited (SPTL) and generates its revenue and cash flows
from its prefabricated business, monolithic construction and
execution of infrastructure projects. None of the debt raised by
Sintex Prefab is with recourse to SPTL and hence, a standalone
approach has been considered for analysis. However, Sintex Prefab
is heavily reliant on promoter support to buyback the maturing debt
obligations which has been factored centrally in the analysis.

Incorporated in November 2009, as Sintex Infra Projects Limited
(SIPL), the name of the company was changed to Sintex Prefab and
Infra Limited (Sintex Prefab) in March 2017. Sintex Prefab was
initially promoted by Sintex Industries Limited [SIL; rated: CARE
BB+; Stable; Issuer Not Cooperating], however, under the composite
scheme of arrangement, SIL has divested its holdings in Sintex
Prefab to Sintex Plastics Technology Limited (SPTL) with effect
from April 1, 2016. Sintex Prefab is engaged in the execution of
infrastructure projects such as affordable housing with monolithic
construction, various centre and state sponsored infrastructure
projects and power projects. Moreover, under the de-merger scheme
of arrangement within the Sintex group, SIL has transferred its
monolithic construction business and prefabricated business to
Sintex Prefab. However, Sintex Prefab decided to discontinue its
monolithic construction business from FY18 except the completion of
on-going orders. As on March 31, 2018, Sintex-Prefab has an
installed capacity of 76,800 Metric Tonnes (MT) per annum of
prefabricated structure manufacturing located at Kalol near
Ahmedabad, Bhachau (Kutch) and Daman.

SKIPPERSEIL LIMITED: ICRA Hikes Rating on INR22.62cr Loan to BB-
----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of
SkipperSeil Limited's (SSL), as:

                        Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Term-Fund-       22.62       [ICRA]BB- (Stable); upgraded
   Based-Cash Credit                 from [ICRA]D

   Long Term-Fund-       16.34       [ICRA]BB- (Stable); upgraded
   Based-Term Loan                   from [ICRA]D

   Short Term-           15.11       [ICRA]A4; upgraded from
   Fund based                        [ICRA]D

   Long Term/Short       96.00       [ICRA]BB- (Stable)/A4;
   Term-Non-fund                     upgraded from [ICRA]D
   Based        

Rationale

The rating upgrade is driven by SSL's satisfactory track record of
debt servicing over the past few months. The ratings positively
take into consideration the extensive experience of the company's
promoters in the engineering, procurement and construction (EPC)
industry. The company has built healthy relationships with major
clients which ensures repeat export orders. Also, as the company
has executed multiple projects successfully, it has forged strong
relationships with major raw material suppliers, which provide
favourable credit terms. This apart, the company has a healthy
outstanding orderbook comprising exports and domestic orders, which
provides medium-term revenue visibility. Further, most of the
company's overseas projects are funded by multilateral funding
agencies, while its domestic projects have state-owned power
transmission and distribution companies as the counterparties. This
helps to considerably mitigate the credit risk associated with
these projects.

However, ICRA takes note of SSL's elongated working capital cycle.
ICRA also notes that the company's profitability is susceptible to
changes in the prices of raw materials as most of the projects are
fixed price in nature, which renders its operating income (OI) and
profitability volatile.

Outlook: Stable

ICRA believes that SSL will continue to benefit from its healthy
relationships with customers. The outlook may be revised to
Positive if there is an improvement in its working capital cycle
along with timely execution of projects. The outlook may be revised
to Negative in case of further elongation of the working capital
cycle, leading to stress in liquidity position. Continuity of track
record of timely repayments is also a key rating sensitivity.

Key rating drivers

Credit strengths

Extensive experience of promoters in EPC industry: SSL's promoters'
have extensive experience in the EPC industry, having executed
multiple projects in the past. Further, the company has built
healthy relationships with clients in many African countries,
thereby ensuring repeat orders from its major customers. This
apart, it has established relationships with suppliers of raw
materials as witnessed by its favourable credit terms with the
parties.

Strong order book position ensures medium-term revenue visibility:
SSL has a healthy outstanding order book of INR323 crore as on
December 31, 2018, comprising export orders from African countries
and a portion of domestic orders from state-owned utilities. The
company's OB/OI was 2.38x the OI in FY2018, providing medium-term
revenue visibility.

Reduced credit risk due to guarantees from multilateral funding
agencies: A majority of SSL's overseas orders are funded by
multilateral funding agencies like World Bank, African Development
Bank or LOC of GOI and EXIM Bank. Thus, the counterparty credit
risk is minimised. Apart from that, the company executes various
other EPC projects for state-owned power transmission and
distribution companies, ensuring low credit risk for its projects.

Regular repayments made post previous delays: SSL has been
servicing its debt in a timely manner, post a debt servicing delay
previously.

Credit challenges

Volatility in profitability and operating income: The company's OI
has been volatile over the years, owing to the lumpiness in the
order flow from its key geographies. Its profitability is
susceptible to changes in raw material prices, as most of the
projects are fixed price in nature. However, ICRA notes that the
company's profitability has exhibited a positive trend in the past
two years.

High working capital intensity: The company's working capital
intensity has been high in the recent years owing to the high
credit period provided to its customers. Its NWC/OI stood at 45.46%
in FY2018, primarily due to 257 receivable days. This apart, the
need to keep retention money with its customers has been stretching
the company's liquidity.

Liquidity position
SSL has a moderate liquidity position owing to the requirement of
keeping retention money with its customers. This apart, high cash
margin requirements for its bank guarantees further impact its
liquidity. However, ICRA notes that the company has been
maintaining adequate cash balances in previous months.

SkipperSeil Limited (SSL) was established in 1986 as a
proprietorship concern of Mr. Jitender Sachdeva. It traded in
electrical goods such as switchgears, MCBs1, ACBs2, and control
panels from Delhi. Later, the company was converted into a closely
held public limited company with the majority stake with Mr.
Sachdeva. Later, the company commenced operations at its first
manufacturing unit in Okhla, Delhi for manufacturing small
transformers and vacuum circuit breakers (VCB), control and relay
panels, SCADA systems etc. At present, the company has four
manufacturing facilities in Bhiwadi, Rajasthan. The company
currently manufactures power transmission and distribution
transformers (132 KV3 to 765 KV), substation equipment and
switchgears. It also acts as an EPC contractor.

SSL registered an OI of INR135.63 crore and profit after tax (PAT)
of INR2.61 crore in FY2018 compared with an OI of INR128.39 crore
and PAT of INR1.86 crore in the previous year.

SWASTIK POWER: ICRA Reaffirms 'D' Rating on INR38cr Term Loan
-------------------------------------------------------------
ICRA reaffirmed ratings on certain bank facilities of
Swastik Power And Mineral Resources Private Limited (SPMRPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund Based-
   Term Loans          38.00       [ICRA]D; Reaffirmed

Rationale

The assigned rating primarily considers the continuing delays in
servicing of debt obligations by the company on account of its
stretched liquidity position, leading to overdue of principal and
interest on term loans. The rating is further constrained by the
closure of operations since FY2015, and the company's weak
financial risk profile, characterised by cash losses incurred over
the past three years and depressed level of coverage indicators.
The rating, however, favourably factors in the experience of the
management in the coal washery and coal-trading business.

Key rating drivers

Credit strengths

Experience of the management in coal washery and coal-trading
business: The company primarily deals in coal washery and
coal-trading business. The promoters of the company are associated
with this sector for more than two decades.

Credit challenges

Continuing delays in timely servicing of debt obligations: The
company continues to delay in timely servicing of debt obligations
due to its stretched liquidity position in the absence of cash flow
from operations.

Closure of operations since FY2015: The entire operations of the
company have remained closed since FY2015 due to unfavourable
market conditions.

Weak financial risk profile: The company has incurred cash losses
over the past three years as there were no operations.
Consequently, the coverage indicators have remained adverse during
the same period.

Liquidity position
The liquidity position of SPMRPL would continue to remain stretched
in the absence of any cash flow from operations along with sizeable
long-term debt service obligations in the near term at least.

Incorporated in 2004, SPMRPL is involved in the business of coal
washery and coal trading in the domestic market. The company has a
wet coal washery plat with a capacity of 0.9 MTPA of refined coal.
Besides, the company has a 25-MW coal-reject based power plant. The
manufacturing facilities of the company are located in Korba,
Chhattisgarh. However, there have been no operations since FY2015.

VIVIMED LABS: CARE Reaffirms 'D' Rating on INR266.93cr Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Vivimed Labs Limited (VLL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank
   Facilities          266.93      CARE D Reaffirmed

   Short Term Bank
   Facilities          109.50      CARE D Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation in the ratings assigned to the bank facilities of
VLL is primarily due to continued delays in the company's ability
to meet debt obligations accruing owing to cash flow mismatches and
deterioration in the liquidity profile.

Detailed description of the key rating drivers

Key Rating Weaknesses

Cash flow mismatches and stretched liquidity resulting in ongoing
delays in debt servicing: The liquidity profile of VLL deteriorated
on account of cash flow mismatches. The same has resulted in delays
with respect to debt servicing of the company. VLL has divested its
non-core businesses in Finished Dosage Formulations (FDF) and
specialty chemicals in a bid to generate revenue for facilitating
debt servicing.

Decline in consolidated revenue and financial performance in FY18:
The company's total operating income (TOI) (standalone) declined by
54.42% in FY18 to INR 262.66 crore from INR 576.25 crore in FY17
while, TOI (consolidated) declined by 17.93% from INR 1,461.94
crore in FY17 to INR 1,199.85 crore in FY18 since FY18 was the
first year of operations post divestment of VLL's non-focus areas
in the FDF and specialty chemicals businesses to Exeltis and
Clariant India Limited, respectively in FY17. The PBILDT margin
declined significantly by 976 bps from 27.85% in FY17 to 18.09% in
FY18 due to higher input costs of raw materials sourced from China
which impacted the company's API business. Consequently, the PAT
margin declined by 830 bps from 14.64% in FY17 to 6.34% in FY18.

Foreign exchange fluctuation risk: Substantial portion of VLL's
(consolidated) sales revenue is the form of exports. Exports
generally, at standalone level, constitute around 50-60% of the
company's sales. The company has also exposure of foreign currency
loans. Therefore, the company is subjected to the risk on
account of foreign exchange fluctuations.

Exposure to regulatory risk: The company is exposed to regulatory
risk in India, as the prices of pharmaceutical products are
regulated by the government through the drug price control order
(DPCO) under price control mechanism. Besides, the pharmaceutical
industry is highly regulated in many other countries and requires
various approvals, licenses, registrations and permissions for
business activities. The approval process for a new product
registration is complex, lengthy and expensive.

Key Rating Strengths

Proposed infusion of funds from stake sale in 50:50 JV with Strides
Shasun Limited (Strides): On January 29, 2019; VLL received
approval from its board to sell its stake in 50:50 JVs with strides
for a consideration of INR 75 crore (out of valuation of INR 150
crore for the JV in 2017) in a bid to augment the management's
focus on the growing FDF portfolio in India, Commonwealth of
Independent States (CIS) and Rest of the world (RoW) markets and to
improve the company's financial flexibility for the domestic
finished dosage business and resultantly, reducing the long-term
leverage in the Indian operations. Consequently, VLL would sell 50%
stake in Vivimed Life Sciences Private Limited, India to Strides
Pharma Science Limited and 50% stake in Strides Vivimed PTE
Limited, Singapore to Strides Pharma Global PTE, Singapore.

Experienced & qualified promoters and management team: The
promoters of VLL have over two decades of experience in the
pharmaceutical and chemical business. Mr. Santosh Varalwar
(Managing Director), a management graduate, is primarily
responsible for developing new markets for the company's products.
VLL's board is ably supported by a team of professionals in the
areas of finance, marketing, quality control, R&D, material and
production.

Long-track record of operations with a unique diversified product
portfolio backed by marquee clientele: VLL, established in 1988, is
a global player engaged in manufacturing of speciality chemicals
and pharmaceutical products. The company has 12 manufacturing
facilities and 6 R&D facilities spread across the globe. For FY18,
the pharmaceutical segment accounted for 83% of gross sales of FY18
vis-à-vis 70% of gross sales of FY17, while specialty chemical
segment contributed less than 17% of gross sales in FY18 (31% of
gross sales in FY17). For the formulation segment, the company's
clientele includes Abbott, Wockhardt, Cipla, Dr.Reddys and
MerckSerono among others.

Stable Industry Prospects: The credit profile of most of the Indian
pharmaceutical companies is expected to remain stable over the
medium term in light of healthy prospects for the domestic although
the growth towards export markets remains challenged. The domestic
market is expected to grow steadily, albeit at a
lower rate due to many drugs coming under the ambit of price
regulator National Pharmaceutical Pricing Authority (NPPA).

Analytical approach: For arriving at the rating of Vivimed Labs
Limited (VLL), CARE has considered the consolidated financials and
business profile of VLL and its subsidiaries.

CARE in its analysis has considered the consolidated business and
financial risk profiles of VLL and its subsidiaries viz., Vivimed
Holdings Limited, Vivimed Life Sciences Private Ltd, Vivimed Global
Generics Pte. Ltd, Vivimed Speciality Chemicals Pvt. Ltd, Vivimed
Labs Europe Ltd, Vivimed Labs USA Inc, Vivimed Labs Mauritius Ltd,
Vivimed Labs UK Ltd, Vivimed Labs Spain S.L, Union Quimico
Farmaceutical S.A.U, Holiday International Ltd, Uquifa Mexico S.A
DE C.V, Vivimed Labs (Mascarene) Limited, UQUIFA India Private
Limited , Creative Healthcare Private Ltd, Klarsehen Private Ltd,
Finoso Pharma Private Ltd, UQUIFA India Private Limited as these
entities are linked through parent-subsidiary relationship and
collectively have management, business & financial linkages.

Vivimed Labs Limited (VLL) incorporated in 1988 is a
Hyderabad-based listed company engaged in manufacturing of
pharmaceuticals (APIs and formulations for various therapeutic
segments), personal care and colour chemistry industrial products.
VLL has manufacturing facilities in India and Overseas (under
subsidiaries). Within the FDF business, it provides contract
manufacturing services to some of its marquee clients in the
pharmaceuticals space, namely Novartis International AG, Glenmark
Pharmaceuticals, Lupin, GlaxoSmithKline Pharmaceuticals Ltd. (GSK
Pharmaceuticals), Dr. Reddy's Laboratories, Cipla, Abbott
Laboratories, Merck Serono, Wockhardt, and so on. VLL has 12
manufacturing facilities, 6 R&D centres and global support offices
in India, China, Europe and the US which adhere to the highest
levels of compliance and manufacture high-quality products.



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

MEDCO ENERGI: Fitch Upgrades LT IDR to 'B+', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded PT Medco Energi Internasional Tbk's
Long-Term Issuer Default Rating to 'B+' from 'B'. The Outlook is
Stable. Fitch has also upgraded the ratings of its senior unsecured
US dollar notes issued by wholly owned subsidiaries Medco Platinum
Road Pte Ltd and Medco Strait Services Pte Ltd, and guaranteed by
Medco and several of its subsidiaries, to 'B+' with a Recovery
Rating of 'RR4'.

The upgrade reflects Indonesia-based Medco's improving financial
profile, supported by the company's efforts to sell its non-core
assets to reduce leverage. Medco entered into final
sale-and-purchase agreements for the sale of its office building
and other non-core assets during 1Q19.

The rating action also reflects Fitch's expectations that Medco's
acquisition of Ophir Energy Plc will be value accretive and is
likely to further strengthen its financial and operating profile.
The acquisition of the UK-based company, in its view, will increase
Medco's cash flows, based on Fitch's oil price assumptions,
relative to the additional debt required for financing the
transaction. The acquisition, once completed, will also boost
Medco's oil and gas production by about 30%, respectively, which
will be higher than most other 'B' rated peers.

KEY RATING DRIVERS

Sale of Non-Core Assets: The company has sold part of its stake in
one of its associate companies for USD252 million and received
USD152 million so far with another USD100 million expected by
end-June 2019. Medco also expects to receive net cash proceeds of
USD90 million from the sale of part of one of its buildings by
September 2019 and USD24 million from the sale of some of its
smaller international businesses for which final sale agreements
have been entered into. These asset sales will help reduce debt and
support improvement in Medco's financial profile. Fitch foresees
only minimal risks to the completion of these asset sales.

Ophir Acquisition Credit Positive: Fitch expects Medco's ongoing
acquisition of Ophir to be value accretive after weighing the
acquisition costs against incremental cash flows, and an expanded
and more diversified operation. Fitch expects Ophir to generate
EBITDA of USD200million-300million until 2021 based on Fitch's
oil-price deck assumptions and support improvement in Medco's
credit metrics relative to the net debt added as a result of the
acquisition. Fitch expects Ophir to add about 25 million barrels of
oil equivalent per day (mboepd) of production in 2019 (Medco 2018
production: 77mboepd) including over 12mboepd from non-domestic
assets based in Thailand and Vietnam.

Gas sales make up about 44% of Ophir's sales, most of which are
based on fixed-price take-or-pay contracts, and would help Medco
maintain its healthy mix of earnings from fixed-price contract gas
sales. Medco expects to acquire Ophir for an enterprise value of
around USD585 million, including Ophir's net debt balance of USD35
million at end-December 2018. The transaction for the acquisition
is set be finalised in May 2019, pending a few approvals.

Improving Financial Profile: Fitch expects Medco's leverage
(adjusted debt/operating EBITDAR) to fall below 4x by 2019 (2018:
4.8x), supported by net cash inflow of about USD366 million from
the sale of non-core assets. The acquisition of Ophir, once
completed, will also help to improve Medco's leverage marginally.
Fitch expects Medco's leverage to remain between 3x and 4x over the
medium term in the absence of any material investments other than
its current planned capex. Fitch has not factored in any cash
inflows from share warrants in its forecasts. Fitch excludes
Medco's 88%-owned subsidiary, PT Medco Power Indonesia (MPI), when
calculating its adjusted leverage.

Favourable Earnings Mix: Fitch expects Medco to derive about 30% of
its sales volume through fixed-price take-or-pay contracts. Fitch
estimates the EBITDA generated from these contracts will cover its
consolidated interest expense (excluding MPI) by more than 1x
(2018: 0.65x), post the Ophir acquisition. This is a key strength
relative to most global oil and gas peers, lowering the commodity
risks associated with the sector. Gas accounts for about two-thirds
of Medco's production volume and is sold through long-term
contracts, mainly to investment-grade off-takers.

Strong Operating Profile: Fitch expects Medco's production volume
to rise to about 100mboepd once it completes the Ophir acquisition.
Medco's production was relatively stable in at 77mboepd in 2018
(79mboepd in 2017). Medco's proved reserve life, including Ophir,
is around eight years (also eight years excluding Ophir) based on
its expectations of production with a three-year average reserve
replacement ratio of over 100%.

Geographic Concentration; Regulatory Risks: Medco's predominant
base of operations in Indonesia exposes it to the associated
country risks though diversified fields minimise operating risks.
The geographical concentration of earnings remains a constraint to
most 'B' rated oil and gas producers. Medco is exposed to the
country's regulatory uncertainties, highlighted by the instructions
from Indonesia's Directorate General of Oil and Gas in July 2018 to
lower the selling price at the Block A gas development in Aceh from
the originally agreed USD9.45 per million British thermal unit
(mmbtu).

Power Investment: Fitch considers the risk dynamics of MPI neutral
to Medco's credit profile as its investment in the power company
falls outside the restricted group structure defined in Medco's
bond documentation. Medco has a USD300 million limit on investments
outside the restricted group as stated in the documentation, the
majority of which has already been utilised. The structure limits
potential cash outflows from Medco to MPI or any other investments
outside the restricted group.

There are also no cross-default clauses linking MPI's debt to
Medco. MPI could however be credit positive in the long term after
it completes most of its growth and is able to upstream dividends.
MPI's business profile is not a concern as it has a relatively
diversified earnings mix between geothermal and gas-power
generation as well as earnings from the provision of operations and
maintenance services to other independent power producers. MPI also
has a successful track record of raising funds on its own.

DERIVATION SUMMARY

Medco's ratings reflect its business and financial profile, which
would be enhanced further by the proposed acquisition of Ophir.
Medco's profile, including Ophir, compares well with other 'B'
rated exploration and production peers in terms of the mix of
earnings generated through fixed-price take-or-pay contracts, a
bigger scale and our expectations of the improvement in leverage.

Medco's credit profile is well-placed relative to most of its peers
in the 'B' category. Medco's production, including Ophir, of close
to 100mboepd is more than Kosmos Energy Ltd.'s (B+/Stable) 69mboepd
and part of Medco's gas is also being sold at long-term fixed-price
contracts. Medco's reserve life is broadly similar at eight years
compared with seven at Kosmos. Fitch expects Medco's leverage
profile to be comparable with that of Kosmos. Fitch  expects
Medco's production to be larger than GeoPark Limited's (B+/Stable)
40mboepd although its reserve life is largely similar to the nine
years at GeoPark. Medco's stronger operating profile is offset to
an extent by its expectations of higher leverage compared with
GeoPark.

PT Saka Energi Indonesia's (BB+/Negative, standalone credit profile
of b) ratings are linked to the 'bbb-' standalone credit profile of
PT Perusahaan Gas Negara Tbk (PGN, BBB-/Stable). Medco's operating
profile compares favourably with that of Saka as Fitch expects
Saka's reserve life of less than five years to continue weakening
until further clarity emerges on its structure within the PGN
group. Medco's Fitch-expected credit metrics are also stronger than
those of Saka.

Canacol Energy Ltd. (BB-/Stable) derives over 90% of its sales
through fixed-price long-term take-or-pay contracts, which results
in higher ratings than most 'B' rated oil and gas producers,
including Medco, despite its smaller production scale of 32mboepd.
Fitch also expects Canacol's leverage to be lower than that of
Medco. Canacol's reserve life and limited geographical
concentration are comparable with those of Medco.

KEY ASSUMPTIONS

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

  - Acquisition of Ophir to be completed in May 2019 for USD550
million

  - Medco's production volume, excluding Ophir, to increase to
77mboepd in 2019 and to gradually decline to about 70mboepd by  
2023

  - Medco's total production volume, including Ophir after its
acquisition in May, to increase to 93mboepd in 2019 and 104mboepd
in 2020 as Ophir's full year of production is taken into account,
and to gradually decline to about 85mboepd by 2023.

  - Brent prices to average USD65/barrel in 2019, USD62.5/barrel in
2020, USD60.0/barrel in 2021 and USD57.5/barrel in the long term
per Fitch's oil and gas price deck

  - Gas price of USD7.03 per mmbtu for Block A

  - Cash production costs to remain at or below USD10/barrel of oil
equivalent

  - Capex including Ophir of USD200 million-300 million over the
forecast horizon to 2023

  - Net cash inflow of USD336 million in 2019 as a result of
various asset sales and reduction in investments.

Fitch's key assumptions for bespoke recovery include:

  - The recovery analysis assumes Medco would be considered a going
concern in bankruptcy and that the company would be reorganised
rather than liquidated. Fitch has assumed a 10% administrative
claim.

  - Medco's going-concern EBITDA is based on the average EBITDA,
Fitch expects over 2019 to 2023, which is stressed by 30% to
reflect the risks associated with oil-price volatility, potential
challenges in maintaining production from its maturing fields, and
other factors.

  - An enterprise value multiple of 5.5x is used to calculate a
post-reorganisation valuation and reflects a mid-cycle multiple for
oil and gas companies globally, which is somewhat higher than the
observed lowest multiple of 4.5x. The higher multiple considers
that a majority of Medco's production volumes stem from long-term
fixed-price and indexed take-or-pay gas contracts, which provide
the company with more cash flow visibility across economic cycles
than the average global upstream oil and gas production companies.


  - Fitch has assumed prior ranking debt of USD474 million will be
repaid before Medco's senior unsecured creditors, including the
investors of its US dollar bonds. Prior-ranking debt includes
project-finance debt at non-guarantor subsidiaries PT Medco E&P
Tomori Sulawesi and PT Medco E&P Malaka.

  - The payment waterfall results in a 72% recovery corresponding
to a 'RR2' recovery for the unsecured notes. However, Fitch has
rated the senior unsecured bonds 'B+'/'RR4' because Indonesia falls
into Group D of creditor friendliness under its Country-Specific
Treatment of Recovery Ratings Criteria, and the 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

  - Fitch does not expect any positive rating action over the
medium term considering Medco's expected leverage levels. That
said, Fitch may consider positive rating action if its adjusted
leverage (adjusted debt/operating EBITDAR excluding MPI) is
sustained below 3.0x, provided there is no weakening in its
operating profile.

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

  - Fitch may take negative rating action if Medco's leverage is
sustained above 4.0x

  - Any significant weakening in its operating risk profile,
including a weakening of its reserve life to less than seven years
or material weakening in the mix of earnings from fixed-price gas
sales.

LIQUIDITY

Adequate Liquidity: Medco has already secured a long-term
bridge-loan facility of USD550 million to complete its acquisition
of Ophir. The facility would be repaid if Medco is able to
successfully raise funds via a note issue. Fitch expects Medco to
require additional funds given its debt maturities and capex
requirements over the next few years. Medco had over USD500 million
of cash (excluding MPI) at end-December 2018, adequate to meet its
2019 debt maturities of USD328 million. Fitch believes Medco's
recent success in tapping capital markets bodes well for its
liquidity. Medco has raised USD900 million from unsecured notes and
USD190 million through a fully subscribed rights issue since 2017.

MEDCO ENERGI: S&P Alters Outlook to Pos., Affirms 'B' ICR
---------------------------------------------------------
On April 22, 2019, S&P Global Ratings revised its outlook on PT
Medco Energi Internasional Tbk. to positive from stable. At the
same time, S&P affirmed its 'B' long-term issuer credit rating on
the Indonesia-based oil and gas producer and its 'B' long-term
issue rating on the various U.S. dollar-denominated senior
unsecured notes the company guarantees.

S&P said, "We revised the outlook because we believe that Medco's
cash flow leverage and operating profile will likely consolidate at
a stronger level following the acquisition and integration of Ophir
Energy PLC. We also anticipate better operating cash flows and cash
flows from non-core asset sales that Medco targets to help reduce
its debt. In our view, Medco strengthening fundamentals may become
commensurate with a higher rating."

Medco's planned acquisition of Ophir Energy PLC, to be completed by
May 2019, adds production scale and operational diversity to Medco.
Ophir Energy would add 25,000 barrels of oil equivalent per day
(kboepd) to Medco's 85 kboepd production, which would sustain
Medco's "2P" reserve life of about nine years. It would also add
producing assets in Thailand and Vietnam to Medco's assets, which
are concentrated in Indonesia. We believe Medco's operating profile
will be on a stronger path than similarly rated peers'.

S&P said, "We expect Ophir Energy to add about US$250 million in
average annual EBITDA over the next two to three years. While Ophir
Energy has a good set of exploration assets, its producing assets
are mature, and without additional capital expenditure (capex) will
lead to a decline in production after 2022. Once Ophir Energy is
acquired, Medco is likely to optimize its capex plan so as to
stabilize long-term production and cash flows from Ophir Energy's
fields. In turn, this should provide more clarity on the long-term
sustainable benefits to production and cash flows to Medco from
Ophir Energy.

"In our opinion, Medco's Indonesia business will continue to
perform steadily over the next two to three years. The company's
new project in Aceh recently started commercial production and
continues to ramp up. Any potential reduction in production from
other mature assets will be compensated for by production from the
Aceh project. As such, Medco should be able to maintain at least 85
kboepd production over the next two to three years.

"The Aceh project will likely have lower cash flows than we
initially expected. That's because the Indonesia Central
hydrocarbon regulator notified Medco in 2018 of a reduction in gas
sales prices for Aceh to US$7.03 a unit from US$9.45. Until a final
resolution is reached, we consider the somewhat lower cash flows
from this project for our financial forecast."

In addition, Medco continues to monetize its non-core assets and
plans to use such cash inflows to reduce debt. The company has
finalized the partial sale of its equity stake in mining affiliate
PT Amman Mineral Nusa Tengara (AMNT) and a 51% stake in a real
estate asset. Together, they should fetch Medco about US$415
million in cash inflows over 2019 to be used for debt containment.

While Medco's capex should stay elevated for at least 2019, the
cash flow growth and non-core asset sales will help support the
improving trend in cash flow leverage. The internal cash flows will
substantially fund the investments, with only a small amount needed
for new debt funding, if at all. That's because the cash balance of
close to US$400 million as of Dec. 31, 2018, should fill in any
funding gaps. S&P expects Medco's ratio of funds from operations
(FFO) to debt to be about 12% by end-2019, and it could average
12%-15% over 2020-2021. This cash flow profile should be
commensurate with better financial risk and credit profiles.

S&P said, "Our rating affirmation follows our view that Medco will
continue to deliver stable operating performance and will
seamlessly integrate Ophir Energy. We expect the Aceh project's
ramp up and offtake to be smooth. The impact on cash flow leverage
from the Ophir Energy acquisition and elevated capex will be
accommodated within our expectations. Benefits, if any, from a
better operating profile and higher cash flows (post the Ophir
Energy acquisition primarily) to Medco's credit quality will best
be assessed over the next three to four quarters as Medco
progresses to consolidate its asset portfolio and cash flow
leverage.

"The positive outlook reflects our expectation that Medco's
acquisition of Ophir Energy will add production scale and cash
flows. We expect the company to maintain a steady overall operating
performance and sound growth investments over the next nine to 12
months, such that its FFO-to-debt ratio exceeds 12% on a sustained
basis.

"We may raise the rating over the next nine to 12 months if healthy
cash flows, non-core asset sales, and controlled growth investments
lead the ratio of FFO to debt to remain sustainably above 12%. We
expect such cash flow leverage improvement will be driven by better
production and a cash flow profile that is sustainable beyond the
projected horizon.

"The outlook will revert to stable if we believe Medco's cash flow
leverage is unlikely to strengthen such that the FFO-to-debt ratio
does not stay above 12%. This could happen due to declining
production profile, weaker hydrocarbon prices, or higher growth
investments than we expected without commensurate cash flow
potential."



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

ASIANA AIRLINES: To Receive US$1.4 Billion from Creditors
---------------------------------------------------------
Yonhap News Agency reports that creditors of Asiana Airlines Inc.
will funnel KRW1.6 trillion (US$1.4 billion) into the cash-strapped
airline to help it overcome a liquidity crisis, its main creditor
said on April 23.

The Korea Development Bank-led creditors will buy KRW500 billion
worth of perpetual bonds to be sold by Asiana Airlines, open a
KRW800 billion credit line to the airline and extend KRW300 billion
in the form of a standby letter of credit, a bank guarantee of
payment on behalf of clients, the state lender said in a statement,
Yonhap discloses.

In return for the financial package, creditors demanded an
additional 4.8 percent stake in Kumho Business, the group's express
bus operator, and a stake of Asiana Airlines up for sale as
collateral, the statement said.

"If Kumho Asiana fails to sell Asiana Airlines, creditors will have
the right to sell the 33.5 percent stake (held by Kumho Industrial
Co.) in the carrier," the KDB, as cited by Yonhap, said.

Yonhap relates that creditors want a "competent" buyer to acquire
the Asiana stake up for sale and to purchase new shares to be
issued by the airline, the KDB said.

According to Yonhap, the policy lender also said a buyer can
acquire Asiana Airlines and its two budget carriers--Air Busan Co.
and Air Seoul Inc.--in a package deal.

Asiana Airlines held a board meeting to accept the creditors'
demand, the company said in a statement. The KDB and Kumho Asiana,
Asiana's parent, are expected to sign a deal on the financial
package today, April 24, a KDB spokesman said, Yonhap relays.

Earlier this month, Kumho Asiana submitted a fresh self-rescue plan
to creditors in return for financial support, as creditors demanded
more concrete and bolder action to restore market trust in the
group, Yonhap recalls.

Under the new self-help plan, the group said it will immediately
start the process of selling Asiana Airlines and provide an
additional 4.8 percent stake in Kumho Business to the creditors as
collateral for new loans, the report notes.

Currently, creditors hold a 42.7 percent stake in Kumho Business as
collateral for the loans that have been extended to the group,
along with a 42.7 percent stake in Kumho Tire Co.

Yonhap relates that the group also said it will scale down the
airline's fleet, suspend non-profitable routes and improve
employees' productivity.

According to Yonhap, the country's second-biggest airline has been
under pressure to strengthen its financial health amid corporate
challenges facing the airline-to-petrochemical conglomerate.

Asiana Airlines owes financial institutions KRW3.2 trillion in
short-term obligations, with some KRW1.2 trillion of loans maturing
this year.

Headquartered in Osoe-Dong Kangseo-Gu, South Korea, Asiana Airlines
Incorporated is engaged in air transportation, engineering,
construction, facilities, electricity, ground handling, catering,
communication, logo products and e-business.  Asiana Airlines is a
unit of the Kumho Asiana Group, a South Korean conglomerate whose
business portfolio includes tire manufacturing and chemical
production.

[*] SOUTH KOREA: Auditors Getting Tougher in Blessing for Investors
-------------------------------------------------------------------
Kyungji Cho at Bloomberg News reports that South Korean auditors
are refusing to sign off on more and more corporate financial
statements due to tighter regulations, giving investors earlier
warning signs of trouble ahead.

Auditors declined to give the green light on 37 financial
statements by listed companies for 2018, about a 68 percent
increase from a year earlier, Bloomberg relates citing Financial
Services Commission. The jump in rejections comes as South Korea
takes more steps to ensure that auditors have independence from
companies that hire them, while increasing penalties in case of
fraudulent accounting.

Bloomberg says Asiana Airlines Inc.'s troubles are a recent
example: auditors said their opinion of the company's annual report
was "qualified," before fully signing off on it a few days later.
But that triggered market concern about the airline's liquidity and
ultimately led its controlling shareholder to put it up for sale.
Regulators elsewhere in Asia are also getting tougher on auditors
as rising defaults at companies in China to India to Singapore
prompt investors to seek earlier warning signs.

"It's appropriate for external auditors to say a dying company is
dying," Bloomberg quotes Hoonsoo Yoon, a partner and assurance
leader at Samil PricewaterhouseCoopers in Seoul, as saying in an
interview. From investors' point of view, "it would be less
disastrous if they got an early warning, rather than if a firm
abruptly went bankrupt without any unusual signs in its audit
reports," he said.

Asia's fourth-largest economy implemented a new external audit law
in November after several accounting scandals occurred including
inflated earnings at Daewoo Shipbuilding & Marine Engineering Co.
in 2016, denting global investor confidence in the quality of
Korean financial statements, according to Bloomberg.

Bloomberg notes that Korea's reforms include a measure that will
have regulators assign auditors to companies to cut back on cozy
relations between the two. Under the scheme, a company will work
with auditors it picked through a competitive process for the first
six years, and then for the next three years it will have auditors
assigned by the Securities and Futures Commission.

Bloomberg relates that external auditors will also be auditing the
internal control systems for financial reporting at some large
companies from this year. Samil PwC's Yoon said the new measure may
cause consternation if some firms aren't able to get auditor
sign-offs at first, but it will pave the way for better internal
accounting controls in the end.

Even as Korea's regulators push to make the nation's financial
reporting more transparent, they may be getting concerned that the
surge in auditor rejections will hurt investor sentiment, the
report states.

The FSC is trying to help achieve a "soft landing" for accounting
reforms including by boosting communication between external
auditors and companies, to minimize any damage to investors, its
Vice Chairman Kim Yongbeom said at a meeting on April 17, Bloomberg
reports.

"We're still in the midst of developing Korea's financial reporting
and external auditing system," Bloomberg quotes Yoon at Samil PwC,
the nation's biggest auditing firm, as saying. "I think companies
having audit issues will decrease as time goes by."


                           *********


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

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

Copyright 2019.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
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