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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Wednesday, July 24, 2019, Vol. 22, No. 147

                           Headlines



A U S T R A L I A

CARLSWOOD PTY: First Creditors' Meeting Set for July 31
CORONADO GLOBAL: Moody's Assigns Ba3 CFR, Outlook Stable
HARRISONS TRADE: Second Creditors' Meeting Set for July 31
LEYSHON RESOURCES: Second Creditors' Meeting Set for July 30
LIME STRUCTURAL: First Creditors' Meeting Set for July 31

REDZED TRUST 2019-1: Moody's Assigns (P)B2 Rating to Class F Notes
STERLING FIRST: Administrators, Lenders in Bid to Rescue Deal


C H I N A

BRIGHT SCHOLAR: Moody's Assigns Ba3 CFR, Outlook Stable
CHANGDE ECONOMIC: Moody's Rates New USD Sr. Unsec. Notes 'Ba1'
CHINA LENDING: Nasdaq Sets Hearing to Consider Compliance Plan
CHONGQING HECHUAN: Fitch Rates $300MM Sr. Unsec. Notes BB+
FANTASIA HOLDINGS: Fitch Assigns B+ LongTerm IDR, Outlook Stable

GCL INTELLIGENT: Moody's Assigns B1 CFR, Outlook Stable
HONGHUA GROUP: Fitch Assigns B(EXP) Rating to New USD Unsec. Notes
JINGRUI HOLDINGS: Moody's Rates Proposed USD Sr. Unsec. Notes 'B3'
KWG GROUP: Fitch Assigns BB-(EXP) Rating on New USD Sr. Notes
MONG DUONG: Moody's Gives (P)Ba3 Rating to USD Sec. Notes Due 2029

OCEANWIDE HOLDINGS: Fitch Affirms B- LongTerm IDR, Outlook Stable
ZHAOJIN MINING: Fitch Raises LongTerm Foreign Currency IDR to BB+
[*] CHINA: $40 Trillion Banking System Learns Hard Lesson on Risk


I N D I A

AADHAAR SHRI: Insolvency Resolution Process Case Summary
ALPINE DISTILLERIES: Ind-Ra Migrates BB Rating to Non-Cooperating
ANRAK ALUMINUM: CARE Migrates D Rating to Not Cooperating Category
ANSH ELECTROPLAST: Insolvency Resolution Process Case Summary
AR LANDMARK: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating

CHAMBER CONSTRUCTIONS: Insolvency Resolution Process Case Summary
CUBE INDIA: CRISIL Lowers Rating on INR25cr Loans to 'D'
DIVYARATNA AGROTECH: CARE Keeps D Debt Ratings in Not Cooperating
ERODE CRITICAL: CRISIL Maintains D Ratings in Not Cooperating
EROS INTERNATIONAL: Posts Quarterly Loss Due to Impairment Charge

FOUNTAIN IMPORTS: CARE Maintains D Rating in Not Cooperating
GOLDENYELLOW PAPER: CRISIL Assigns 'B' Ratings to INR16.28cr Loans
HEALTHFORE TECHNOLOGIES: CARE Cuts Rating on INR266.67cr Loan to D
HIRA AUTOMOBILES: CRISIL Lowers Rating on INR25cr Cash Loan to B+
IL&FS: Rating Agencies Knew of Group's Stress, Audit Indicates

INDIAMCO: CARE Moves D Rating on INR14.5cr Loans to Non-Cooperating
INFINITI TELEVESION: Insolvency Resolution Process Case Summary
J.B. GOLD: CARE Lowers Rating on INR9cr LT Loan to D
JMK MOTOWHEELS: CRISIL Maintains B+ Ratings in Not Cooperating
KUTTANAD RUBBER: CRISIL Maintains D Ratings in Not Cooperating

LIBERTY OIL: Ind-Ra Lowers Issuer Rating to BB+, Outlook Negative
LIGARE AVIATION: CARE Lowers Rating on INR235cr Term Loan to D
MAGADH INDUSTRIES: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
MCLEOD RUSSEL: Auditor Casts Going Concern Doubt
MECHANO ENGINEERING: Ind-Ra Assigns 'BB-' LT Issuer Rating

MEGHAAARIKA INT'L: Ind-Ra Alters Ratings Outlook to Negative
MOSER BAER: CARE Migrates D Rating to Not Cooperating Category
OJASVI AGRITECH: Insolvency Resolution Process Case Summary
PANAMA SYSTEMS: Insolvency Resolution Process Case Summary
PIONEER TORSTEEL: Ind-Ra Affirms 'D' Long Term Issuer Rating

PRASHANTHI AYURVEDIC: Ind-Ra Moves BB- Rating to Non-Cooperating
QUALITY FLAVOURS: CRISIL Assigns B+ Rating on INR10cr Loans
QUANTUM COAL: Insolvency Resolution Process Case Summary
R. K. BLUE: CRISIL Lowers Rating on INR12.5cr Loan to B+
RAJHANS COLD: CRISIL Moves INR4.7cr Loans Rating to B+/Cooperating

RANASARIA POLY: Ind-Ra Migrates 'BB+' LT Rating to Non-Cooperating
SAFI TRADERS: Ind-Ra Raises Issuer Rating to 'BB', Outlook Stable
SGR EXIM: Ind-Ra Lowers LongTerm Issuer Rating to 'C'
SHIV SHANKAR: CRISIL Keeps B+ on INR10cr Loan in Not Cooperating
SHREE BHOMIKA: Insolvency Resolution Process Case Summary

SHRI GUMANDEV: Insolvency Resolution Process Case Summary
SPECIAL PRINTS: Insolvency Resolution Process Case Summary
SRI BALAJI: Insolvency Resolution Process Case Summary
SRI RAMPRASAD: CRISIL Lowers Rating on INR20cr Term Loan to B+
SUMMIT METALS: CRISIL Lowers Rating on INR11cr Loans to 'D'

SUPER SHIV: CARE Migrates D Rating to Not Cooperating Category
THAKUR AGRO: CRISIL Assigns B+ Rating to INR8.5cr Loans
TRADING ENGINEERS: Insolvency Resolution Process Case Summary
VARAM BIOENERGY: Insolvency Resolution Process Case Summary
VEDSIDHA PRODUCTS: CRISIL Maintains D Ratings in Not Cooperating

VISHWAKARMA AUTOMOTIVE: CRISIL Rates INR22.5cr Loans 'B+'
[*] India Monitoring for 'Signs of Fragility' Among Shadow Banks


I N D O N E S I A

DELTA MERLIN: Fitch Cuts LongTerm IDR to B-, on Watch Negative


M A L A Y S I A

MALAYSIA AIRLINES: Khazanah Taps Morgan Stanley for Strategy


N E W   Z E A L A N D

EBERT CONSTRUCTION: Subcontractors Face 'Significant Shortfall'
PRECISION FOUNDRY: No Money for Unsecured Creditors, Receivers Say


S I N G A P O R E

MULHACEN PTE: S&P Alters Outlook to Negative & Affirms 'B+/B' ICRs

                           - - - - -


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A U S T R A L I A
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CARLSWOOD PTY: First Creditors' Meeting Set for July 31
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Carlswood
Pty Limited will be held on July 31, 2019, at 2:00 p.m. at Level 4,
at 232 Adelaide Street, in Brisbane, Queensland.

Peter Anthony Lucas of P A Lucas & Co was appointed as
administrator of Carlswood Pty on July 19, 2019.


CORONADO GLOBAL: Moody's Assigns Ba3 CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service has assigned a Ba3 corporate family
rating to Coronado Global Resources Inc. The outlook is stable.

RATINGS RATIONALE

"CRN's Ba3 rating reflects its position as a low cost, high quality
metallurgical coal producer with geographically diversified
operations in Australia and the United States," says Matthew Moore,
a Moody's Vice President and Senior Credit Officer.

"The rating also takes into consideration CRN's position as the
fifth largest metallurgical coal exporter globally, with around 20
million tonnes per annum of production, strong cash flow generation
in the current price environment, and conservative balance sheet
with low levels of debt," adds Moore.

All of CRN's operations are 100% owned by the company and have a
long combined reserve life of over 30 years, based on 2018
production volumes.

Some 80% of CRN's production is focused on metallurgical (met)
coal. Met coal prices are currently supported by tight supply
conditions, due to supply disruptions in Australia. Moody's
expectations for the continuation of the strong price environment
for met coal supports strong free cash flow generation of around
$250-$350 million over the next 12-18 months.

Following its listing on the Australian stock exchange in October
2018, CRN used the bulk of the proceeds to repay debt. As a result,
leverage, as measured by debt/EBITDA, fell to around 0.2x in the
fiscal year ended December 2018. Moody's expects the company to
maintain debt/EBITDA of less than 0.5x over the next 12-18 months,
given the supportive price environment and minimum capital
expenditure requirements over this period.

At the same time, the Ba3 rating is constrained by the company's
reliance on two operations for about 80% of earnings, as well as
significant customer concentration risk.

Further, CRN's margins are constrained by higher royalty
arrangements than its peers, primarily reflecting the long-term
agreement in place with the Queensland government's Stanwell
Corporation at its Curragh operation. The agreement requires CRN to
supply thermal coal to Stanwell at an agreed contract price, which
is currently less than the cost of supply. Moody's expects that
this agreement will expire in 2027, once a pre-determined amount of
energy has been delivered to the power stations.

CRN's Ba3 rating also takes into account the elevated and immediate
exposure of the coal sector to environmental risk. The
environmental impact of the coal industry includes issues such as
carbon emissions, land use, waste management, and water and air
pollution caused by its mining, processing and end-use. These
issues could materially increase regulatory costs, affect CRN's
profitability, and/or reduce demand for CRN's products.

However, Moody's views CRN as being somewhat insulated from these
risks over the next several years given its focus predominately on
the export of high quality metallurgical coal from its US and
Australian operations and its view that demand for metallurgical
coal will be less impacted from environmental risks than thermal
coal over the next several years.CRN's thermal coal production,
which is more exposed, also benefits from having high quality as
well as long term contracts in place at what Moody's views as below
market rates.

CRN also faces risk from its concentrated private equity ownership
(80%) and its expectation that CRN will continue to emphasize
shareholder returns, consistent with management's public
announcements, and return any surplus cash flow to shareholders,
unless there is an acquisition or need to build cash. The company's
dividend policy is to distribute 60% to 100% of free cash flow.

The stable rating outlook reflects Moody's expectations that CRN
will maintain strong credit metrics and good liquidity over the
next 12-18 months, and that any acquisitions or shareholder returns
will be performed in a manner that preserves its credit profile.

A rating upgrade is unlikely over the next 12-18 months, due to the
company's concentrated asset base and Moody's expectation of
continued volatility in the met coal market.

However, over the longer term, Moody's could consider upgrading the
rating if (1) CRN further improves its scale and business
diversity; (2) margins sustainably increase; (3) leverage (adjusted
debt/EBITDA) remains below 2.0x; and (4) Moody's sees greater price
stability for global coal.

A rating upgrade would also be reliant on a track record of
conservative financial policy from CRN's financial sponsor and
discipline around acquisitions.

Moody's could downgrade the rating if adjusted debt/EBITDA
increases above 3.0x on a consistent basis, the company generates
sustained negative free cash flow, or there is a substantive
deterioration in liquidity. Any adverse operational event that
meaningfully impacts production or a substantial decline in coal
prices beyond Moody's base sensitivity ranges could also have
negative rating implications.

The principal methodology used in this rating was Mining published
in September 2018.

Coronado Global Resources Inc. (ASX:CRN) was founded in 2011 with
the intention to acquire and develop existing metallurgical coal
operations. The company generated around $2.3 billion of revenue
and $600 million in EBITDA for 2018.

CRN is majority-owned (80%) by The Energy & Minerals Group, a
private investment firm. CRN is listed on the Australian Stock
Exchange, with a market capitalization of around AUD2 billion.


HARRISONS TRADE: Second Creditors' Meeting Set for July 31
----------------------------------------------------------
A second meeting of creditors in the proceedings of Harrisons Trade
Centre Pty. Ltd has been set for July 31, 2019, at 3:00 p.m. at the
offices of Dissolve Pty Ltd, Level 8, at 80 Clarence Street, in
Sydney, NSW.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 30, 2019, at 5:00 p.m.

Clifford John Sanderson of Dissolve was appointed as administrator
of Harrisons Trade on June 26, 2019.


LEYSHON RESOURCES: Second Creditors' Meeting Set for July 30
------------------------------------------------------------
A second meeting of creditors in the proceedings of Leyshon
Resources Limited has been set for July 30, 2019, at 10:00 a.m. at
the offices of HQ Advisory, Suite 3, Level 3, at 1292 Hay Street,
in West Perth, WA.

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 July 29, 2019, at 5:00 p.m.

James Thackray of HQ Advisory was appointed as administrator of
Leyshon Resources on May 22, 2019.


LIME STRUCTURAL: First Creditors' Meeting Set for July 31
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Lime
Structural Solutions Pty Ltd will be held on July 31, 2019, at
11:00 a.m. at Level 9, at 66 Clarence Street, in Sydney, NSW.

Liam Bailey of O'Brien Palmer was appointed as administrator of
Lime Structural on July 22, 2019.


REDZED TRUST 2019-1: Moody's Assigns (P)B2 Rating to Class F Notes
------------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the notes to be issued by Perpetual Trustee Company
Limited as trustee of RedZed Trust Series 2019-1.

Issuer: Perpetual Trustee Company Limited as trustee of RedZed
Trust Series 2019-1

AUD260.000 million Class A-1 Notes, Assigned (P)Aaa (sf)

AUD76.0 million Class A-2 Notes, Assigned (P)Aaa (sf)

AUD36.2 million Class B Notes, Assigned (P)Aa2 (sf)

AUD4.4 million Class C Notes, Assigned (P)A2 (sf)

AUD8.6 million Class D Notes, Assigned (P)Baa2 (sf)

AUD6.4 million Class E Notes, Assigned (P)Ba2 (sf)

AUD2.8 million Class F Notes, Assigned (P)B2 (sf)

The AUD5.60 million of Class G-1 and Class G-2 Notes (together, the
Class G Notes) are not rated by Moody's.

The transaction is a securitisation of first-ranking mortgage loans
secured over residential properties located in Australia. The loans
were originated and are serviced by RedZed Lending Solutions Pty
Limited (RedZed, unrated).

The portfolio includes 95.1% of loans to self-employed borrowers.
92.6% were extended on alternative income documentation
verification ('alt doc') basis; and, based on its classifications,
12.4% are to borrowers with adverse credit histories.

RATINGS RATIONALE

The provisional ratings take into account, among other factors, an
evaluation of the underlying receivables and their expected
performance, evaluation of the capital structure and credit
enhancement provided to the notes, availability of excess spread
over the life of the transaction, the liquidity facility in the
amount of 1.5% of the notes balance, the legal structure, and the
experience of RedZed as servicer.

Moody's MILAN CE — representing the loss that Moody's expects the
portfolio to suffer in the event of a severe recession scenario —
is 16.0%. Moody's expected loss for this transaction is 2.3%.

Key transactional features are as follows:

  - While the Class A-2 Notes are subordinate to Class A-1 Notes in
relation to charge-offs, Class A-2 and Class A-1 rank pari passu in
relation to principal payments, on the basis of their stated
amounts, before the call option date. This feature reduces the
absolute amount of credit enhancement available to the Class A-1
Notes.

  - The servicer is required to maintain the weighted average
interest rates on the mortgage loans at least at 4.50% above one
month BBSW, which is within the current portfolio yield of 6.25% as
at cut off date. This generates a high level of excess spread
available to cover losses in the pool.

  - Under the retention mechanism, excess spread is used to repay
principal on the Class F Notes, up to approximately AUD750,000,
thereby limiting their exposure to losses. At the same time, the
retention amount ledger ensures that the level of credit
enhancement available to the more senior ranking notes is
preserved.

  - The Class B to Class F Notes will start receiving their
pro-rata share of principal if certain step-down conditions are
met. Pro-rata allocation is effectively limited to a maximum of two
years.

  - While the Class G Notes do not receive principal payments until
the other notes are repaid, once step-down conditions are met,
their pro-rata share of principal will be allocated in a reverse
sequential order, starting from the Class F Notes.

Key pool features are as follows:

  - The pool has a weighted-average scheduled loan-to-value (LTV)
of 69.3%, and 23.8% of the loans have scheduled LTVs over 80%.
There are no loans with a scheduled LTV over 85%.

  - Around 95.1% of the borrowers are self-employed. This is in
line with RedZed's business model and strategy to focus on the
self-employed market. The income of these borrowers is subject to
higher volatility than employed borrowers, and they may experience
higher default rates.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
June 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement, due to sequential amortization, or
better-than-expected collateral performance. The Australian jobs
market and the housing market are primary drivers of performance.

A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, a deterioration in the credit quality of
transaction counterparties, or lack of transactional governance,
and fraud.


STERLING FIRST: Administrators, Lenders in Bid to Rescue Deal
-------------------------------------------------------------
Sean Smith at The West Australian reports that administrators and
lenders linked to a key Sterling First company are trying to rescue
a deal that has promised rental relief for dozens of pensioners
embroiled in the collapse of the WA property management and
investment group.

The West Australian relates that creditors of Acquest Property Pty
Ltd, which owns residential and development properties worth an
estimated AUD7 million, on July 21 agreed to give Mandurah-based
company PE Rental Pty Ltd more time to come up with the funds it
has promised to recapitalise Acquest.

PE Rental is owned by the same realtor, Rohan Vaughan, who last
month struck an agreement with administrators from KPMG via a
separate company - Fifth Stop Pty Ltd - to buy Sterling First's
rental roll business for AUD8.5 million, according to the report.

Sterling First (Aust) Pty Ltd is a property and funds management
group.

Martin Bruce Jones and Wayne Anthony Rushton of Ferrier Hodgson
were appointed as administrators of Sterling First (Aust) Pty Ltd
and related companies on May 3, 2019. The related entities are:

  -- Acquest Capital Pty Ltd
  -- Acquest Property Pty Ltd
  -- Gage Management Ltd
  -- Rental Management Australia Pty Ltd
  -- Rental Management Australia Developments Pty Ltd
  -- Sterling Corporate Services Pty Ltd
  -- Sterling First Projects Pty Ltd
  -- Sterling First Property Pty Ltd
  -- SHL Management Services Pty Ltd
  -- Silver Link Investment Company Ltd
  -- Silver Link Securities Pty Ltd




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C H I N A
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BRIGHT SCHOLAR: Moody's Assigns Ba3 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a first-time Ba3 corporate
family rating to Bright Scholar Education Holdings Ltd.

At the same time, Moody's has assigned a Ba3 senior unsecured
rating to the proposed USD notes to be issued by Bright Scholar.

The outlook is stable.

The bond rating reflects Moody's expectation that Bright Scholar
will complete the bond issuance upon satisfactory terms and
conditions, including proper registrations with the National
Development and Reform Commission and the State Administration of
Foreign Exchange in China (A1 stable).

The proceeds from the bonds will be used to fund overseas business
expansion and for other general corporate purposes.

RATINGS RATIONALE

"Bright Scholar's Ba3 CFR reflects the company status as an
established key service provider in international and bilingual
schools for Chinese students, its asset-light business model, and
its recurring strong cash flows and low leverage," says Roy Zhang,
a Moody's Assistant Vice President and Analyst.

Bright Scholar partners closely with Country Garden Holdings
Company Limited (Ba1 stable) in operating schools in many of the
residential properties developed by Country Garden. The family of
Country Garden's founder and chairman owned approximately 72.5% of
Bright Scholar as of the end of May 2019.

The success of Bright Scholar's business model is underpinned by
its high admissions rate to global top institutions and top
domestic high schools. According to the company's regulatory
filings, 92% of the graduating class from its international schools
in 2018 received offers from global top 50 institutions, while 80%
of grade 9 graduates from its bilingual schools were accepted into
top public high schools in their respective regions.

The company benefits from strong demand in China for high-quality
education, and it has been able to consistently raise tuition fees
across its school segments -- including international schools,
bilingual schools and kindergartens -- despite close regulatory
monitoring of school pricing. Such price hikes, together with
improving utilization at its new schools, will support the
company's revenue growth and margin expansion.

Bright Scholar has high cash flow visibility, because tuition fees
are paid up front at the start of each semester, while operating
costs are usually spread across each semester. As a result, working
capital is a source of cash as the company expands. Customer
stickiness is also high, with an average annual student retention
rate of over 90% in each of the past three years, leading to a
recurring revenue base. The company's adjusted cash flow from
operations (CFO) reached RMB572 million in FY2018, and Moody's
expects it will grow on average 34% each year between 2018 and
2021.

Bright Scholar's capital spending needs are low because of its
asset-light business model. It partners with property developers
such as Country Garden, operating schools in residential projects
while the developers shoulder the land and building costs. Such
arrangements significantly reduce Bright Scholar's capital
spending, while at the same time allowing the company to expand
alongside new projects.

Bright Scholar also has the right of first refusal on school
development projects in connection with new residential properties
by Country Garden, thus ensuring selectivity and flexibility as it
expands.

"Bright Scholar's low level of leverage provides a significant
buffer for its Ba3 rating, mitigating risks stemming from its small
size, execution risks from an expansionary business plan, a short
history of listing and profitability, and regulatory
uncertainties," adds Roy.

Bright Scholar's size is modest relative to its global education
peers, with revenue of only $264 million in 2018, although
projected to grow at an average annual rate of 50% through 2021 by
Moody's estimates.

The company is actively executing its acquisition plan to expand
its school network overseas. Its acquisition and expansionary
strategy will raise some execution risk, such as managing a larger
school network across different regions, recruiting and retaining
high-quality teachers and administrators, and attracting
high-quality students to improve the utilization rates at the new
schools.

Moody's expects Bright Scholar to execute its plan prudently by
focusing on high-quality assets at reasonable prices. Moody's also
expects any acquired assets will immediately increase the company's
EBITDA and cash flow, such that its leverage -- as measured by
total debt to EBITDA -- will remain low. Assuming around $450
million of acquisitions by 2020, funded by a mix of debt and
internal resources, the company's adjusted debt/EBITDA will reach
about 1.8x in 2020 and 1.7x in 2021.

Moody's believes that Bright Scholar's overseas expansion will
improve its business profile by increasing its scale and creating
more diversified revenue streams. It also reduces the risks
associated with its exposure to any single regulatory body.

Bright Scholar has turned profitable -- in terms of its adjusted
EBITDA -- only since 2016 and has been publicly listed only since
2017. As such, its financial and funding track record are
relatively short.

The rating also considers regulatory uncertainties, as China's
education industry is heavily regulated. For instance, the Ministry
of Justice issued a draft education law amendment on August 10,
2018, including additional regulations around related party
transactions and acquisitions of not-for-profit schools.

Moody's expects the impact on Bright Scholar from the draft
amendment will be manageable, as the company's key contractual
agreements and transactions are already audited and disclosed.
Bright Scholar's future expansion will also be predicated more on
new self-built schools rather than acquisitions.

The draft amendment has yet to be finalized, and there could also
be further changes in the future. As such, Moody's will continue to
monitor the sector's regulatory environment.

Bright Scholar has strong liquidity. It had maintained RMB 2.0
billion in cash as of the end of May 2019 while it had reported
debt of RMB50 million.

In terms of environmental, social and governance (ESG)
considerations, in addition to the aforementioned potential
regulatory risks, the ratings also factor in the company's
concentrated ownership by its founder and chairman, who held a
total stake of 72.5% at the end of May 2019. However, such risk is
partially mitigated by its listed and regulated status and by the
presence of three independent board directors.

Bright Scholar's senior unsecured bond rating is not affected by
subordination to claims at the operating company level. This is
because the holding company owns key trademarks to operate its
business, which will support an expected recovery in the holding
company's debt. In addition, the holding company benefits from
contractual cash flow upstreams from its operating companies.

The stable rating outlook reflects Moody's expectation that Bright
Scholar will maintain its (1) relationship and synergies with
Country Garden; and (2) solid business and financial profile while
it executes its expansion plans.

Upward rating pressure could emerge in the medium to long term if
the company (1) significantly increases its scale and develops a
track record of stable operations, solid profitability, liquidity
and funding access; and (2) maintains adjusted debt/EBITDA below
2.5x on a sustained basis.

The rating would likely be downgraded if (1) the company's new
schools ramp up at a slower rate than expected; (2) if it engages
in significant debt-funded expansion, such that adjusted
debt/EBITDA exceeds 3.0x on a sustained basis; (3) its
profitability weakens, with adjusted EBITDA margin declining below
20%; or (4) the number of total students enrolled declines on a
sustained basis.

Material shareholder distributions, unfavorable regulatory changes,
or changes in its relationship with Country Garden could also
pressure its rating.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Bright Scholar Education Holdings Ltd (NYSE:BEDU) listed on the New
York Stock Exchange on May 18, 2017, and had a market
capitalization of USD1.3 billion as of July 5, 2019. It is the
largest operator in international and bilingual K-12 schools in
China, as measured by student enrolment. The company established
its first private school (Guangdong Country Garden School) in 1994.
As of the end of May 2019, it operated 78 schools covering K-12
education for students across nine provinces in China and
overseas.


CHANGDE ECONOMIC: Moody's Rates New USD Sr. Unsec. Notes 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 senior unsecured
rating to the proposed USD notes to be issued by Changde Economic
Construction Investment Group Co., Ltd. (CECIG, Ba1 stable).

The ratings outlook is stable.

The proceeds will be used for project construction in China, to
repay onshore debt and to supplement working capital.

RATINGS RATIONALE

"The Ba1 rating on the proposed USD notes reflects the fact that
the notes will rank pari passu with CECIG's other senior unsecured
obligations, improve the company's debt maturity profile, and have
no impact on its financial profile," says Chenyi Lu, a Moody's
Senior Credit Officer, and also Moody's International Lead Analyst
for CECIG.

CECIG's Ba1 CFR combines (1) its b1 Baseline Credit Assessment
(BCA); and (2) Moody's assessment of a strong likelihood of support
from and high level of dependence on the Government of China (A1
stable) in times of need, which results in a rating that is three
notches above its BCA.

Moody's assessment of strong government support reflects CECIG's
(1) 100% ownership by the Changde City Government in Hunan
Province; (2) status as a key government-owned entity in Changde
City, with an important role in city development and the provision
of some public services; and (3) track record of receiving
financial support from the Changde City Government.

CECIG's BCA is driven by (1) its policy function and key role in
city development and the provision of public services in the
Changde City; (2) the cash payments it receives from the Changde
City Government to fund its policy-related business; and (3) its
good access to domestic funding channels, including bank loans and
the debt capital markets.

These credit strengths are partly offset by CECIG's elevated debt
leverage because of the urban infrastructure projects it undertakes
for the government. The company also has provided guarantees on
debt of other local government-owned entities in Changde City.

Moody's estimates CECIG's adjusted (funds from operation [FFO] from
non-government transactions + government cash payments +
interest)/interest will stay around 1.3x in 2019. Such a level
still positions the company's BCA at b1 relative to the other rated
local government-owned entities in China.

The Ba1 rating has also considered CECIG's limited exposure to
environmental, social and governance risks. As a local government
financing vehicle wholly owned by the Changde SASAC, the company's
operations and financial policies are closely supervised by the
local government.

The stable outlook reflects Moody's expectation that there will be
no change in (1) the stable outlook on China's A1 sovereign rating;
(2) the company's ownership by the Changde City Government; (3) the
key role that CECIG plays in the development of Changde City and
the provision of public services in the city; (4) the company's
access to the banks and capital markets; and (5) the financial
support it receives from the government.

Moody's could upgrade CECIG's rating if (1) the likelihood of
government support further strengthens; and/or (2) the company's
BCA improves.

Moody's could raise CECIG's BCA if the company's financial profile
improves, and its exposure to trust and lease financing and
guaranteed debt reduces materially.

Factors indicative of an improvement in the company's BCA include
adjusted (FFO from non-government transactions + government cash
payments + interest)/interest exceeding 2.5x on a sustained basis.

Moody's could downgrade the rating if (1) the likelihood of
government support for CECIG weakens; or (2) CECIG's BCA
deteriorates.

Moreover, Moody's could lower CECIG's BCA if its financial profile
or liquidity position further deteriorates.

A worsening BCA could be indicated by adjusted (FFO from
non-government transactions + government cash payments +
interest)/interest falling below 1.0x on a sustained basis, or if
the company's exposure to trust and lease financing and its
guaranteed debt levels continue to increase.

The methodologies used in this rating were Business and Consumer
Service Industry published in October 2016, and Government-Related
Issuers published in June 2018.

Established in 1992, Changde Economic Construction Investment Group
Co., Ltd. is 100% owned by the State-owned Assets Supervision and
Administration Commission of the Changde Government.

The company is a key government-owned entity in Changde, a
prefecture-level city in Hunan Province.


CHINA LENDING: Nasdaq Sets Hearing to Consider Compliance Plan
--------------------------------------------------------------
Nasdaq has scheduled China Lending Corporation's hearing before the
Nasdaq Hearings Panel for Aug. 22, 2019.  At the hearing, the
Company will present its plan to regain compliance with the Nasdaq
Listing Rules and request the continued listing of the Company's
securities on the Nasdaq Capital Market pending the Company's
compliance therewith.

On July 11, 2019, the Company received a delisting determination
letter from Nasdaq, indicating that the Company's securities would
be subject to delisting from the Nasdaq Capital Market based on its
non-compliance with the continued listing requirements, unless the
Company timely requests a hearing before the Nasdaq Hearings
Panel.

The Company filed the hearing request on July 15, 2019, which has
stayed the delisting action of the Company's securities by Nasdaq
pending the Panel's final decision.  There can be no assurance that
the Panel will grant the Company's request for continued listing.

The Company said it is doing everything within its control to
regain compliance with the Nasdaq listing rules.  If the Panel
upholds the delisting determination following the hearing, the
Company's securities may be eligible for quotation on the OTC
Bulletin Boards or in the "pink sheets."

                       About China Lending
                       
Founded in 2009, China Lending -- http://www.chinalending.com/--
is a non-bank direct lending corporation and provides services to
micro, small and medium sized enterprises, farmers, and
individuals, who are currently underserved by commercial banks in
China.  The Company is headquartered in Urumqi, the capital of
Xinjiang Autonomous Region.

China Lending reported a net loss US$94.12 million for the year
ended Dec. 31, 2018, compared to a net loss of US$54.78 million for
the year ended Dec. 31, 2017.  As of Dec. 31, 2018, the Company had
US$95.66 million in total assets, U$122.01 million in total
liabilities, US$9.65 million in convertible redeemable Class A
preferred shares, and a total deficit of US$36 million.

Friedman LLP, in New York, the Company's auditor since 2017, issued
a "going concern" qualification in its report dated April 26, 2019,
on the Company's consolidated financial statements for the year
ended Dec. 31, 2018, citing that the Company has incurred
significant losses and is uncertain about the collection of its
loans receivables and extension of defaulted loans.  These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.


CHONGQING HECHUAN: Fitch Rates $300MM Sr. Unsec. Notes BB+
----------------------------------------------------------
Fitch Ratings has assigned a final 'BB+' rating to China-based
Chongqing Hechuan City Construction Investment (Group) Co., Ltd.'s
(HCCT; BB+/Stable) USD300 million 6.3% senior unsecured notes due
2022.

The assignment of the final rating follows the receipt of documents
conforming to information already received. The final rating is in
line with the expected rating assigned on June 24, 2019.

KEY RATING DRIVERS

The notes are issued by HCCT and constitute its direct,
unconditional, unsubordinated and unsecured obligations and rank
pari passu with all its other present and future unsecured and
unsubordinated obligations. The proceeds will be used for repayment
of HCCT's existing debt and for general corporate purposes.

RATING SENSITIVITIES

Any change in HCCT's Issuer Default Ratings will result in similar
rating action on the notes.


FANTASIA HOLDINGS: Fitch Assigns B+ LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Fantasia
Holdings Group Co., Limited a Long-Term Foreign-Currency Issuer
Default Rating of 'B+' with a Stable Outlook. Fitch has also
assigned Fantasia a senior unsecured rating of 'B+', with a
Recovery Rating of 'RR4'.

Fantasia's rating is supported by land reserves that are adequate
to sustain its current business scale, healthy EBITDA margin and
moderate leverage. The company's land bank has some concentration
in Chengdu and Guilin, but it has more than 30 urban redevelopment
projects in the Greater Bay Area that provide geographical
diversification. The company's land reserves are sufficient for
property development over the next three to four years.

Fitch expects Fantasia to maintain its 2019-2020 EBITDA margin,
excluding capitalised interest, at levels similar to the 25.8% in
2018. Fitch also forecasts Fantasia's leverage, measured by net
debt to adjusted inventory, to remain around 45%, in-line with 'B+'
peers. In addition, the growing property management business under
the company's listed subsidiary, Colour Life Service Group Co.,
Ltd, supports Fantasia's ratings and gives it an additional funding
channel.

Fantasia's attributable contracted sales of CNY24 billion in 2018
constrains its ratings as its scale is smaller than that of 'B+'
rated peers. This smaller scale also limits the company's
land-reserves diversity, although this may improve in the future.
Fantasia's land reserve has material exposure to commercial-type
developments that have less sales visibility as demand for such
products are more closely linked to economic cycles and more
affected by regulatory changes. Fitch expects Fantasia's
attributable contracted sales to grow by 11% in 2019.

KEY RATING DRIVERS

Adequate Land Bank and Projects: Fantasia is a mid-tier developer
with total contracted sales of CNY30 billion and average selling
price of over CNY11,000 per square meter in 2018. The company has
more than 50 projects spread across five key areas and 15 cities,
with concentration in the Chengdu-Chongqing Economic Zone and
Beijing-Hebei-Tianjin Region, which made up 69% of its total land
bank at end-December 2018. The concentration in these two regions
limits Fantasia's scope to mitigate regulatory risks, but its large
number of projects help to diversify project specific risks.

The company had a total land bank of 11.3 million sq m at
end-December 2018, which was spread across the Pearl River Delta,
Yangtze River Delta, central China and the two regions. More than
35% of the sites were in Chengdu while only 22% were in the
better-performing Pearl and Yangtze River Deltas. Fantasia expects
to add 1.38 million sq m of land in Qingdao in 2019 and 0.97
million sq m of urban redevelopment projects (URP) in the Greater
Bay Area in 2020. In addition, the company will have more than 6.8
miliion sq m of URP in Greater Bay Area from 2021. Growing exposure
to URP projects can improve Fantasia's land bank mix and its
geographical diversification.

Property Management Supports Rating: Colour Life, which is 55.4%
owned by Fantasia, was listed in 2014 and is a leading property
management company in China. Colour Life has expanded into more
than 200 cities, with 45% of its revenue-bearing gross floor area
(RGFA) located in the more affluent regions in China's eastern and
southern coasts. Colour Life is expanding RGFA to boost recurring
income.

Colour Life is also collaborating with vendors including JD.com,
Pagoda and 58Daojia, to provide services to residents that improve
their experience in residential projects. The company expects this
to give it room to increase service charges. Fitch expects
Fantasia's recurring EBITDA to gross interest expense to increase
to 0.44x by 2022 from 0.36x in 2018, aided by Colour Life's strong
recurring income.

Rationalising Debt Structure and Costs: Fantasia has a healthy
liquidity position of CNY28 billion in total cash, compared with
CNY14.7 billion of short-term debt as of December 2018. This allows
the company, which had recently replaced its CFO, to focus on
restructuring its debt maturities with new offshore bonds. The
company has also increased the use of lower-cost bank loans and
reduced trust loans, onshore bonds and offshore bonds in the debt
mix. According to management, the company's overall financing cost
fell to 8% in the first five months of 2019 from 8.7% in 2018.

Healthy Leverage and Margins: Fantasia's EBITDA margin remained
healthy in 2018 due to its low land cost. Fitch expects the EBITDA
margin to remain at 26%-27% in 2019-2121 due to a better selling
and administrative cost structure. Fantasia's leverage should come
to 44%-46% in 2019-2020 compared with 42%-45% in 2017-2018. Fitch
expects leverage to fall to 39%-41% in 2021-2022 on increasing
attributable contracted sales with limited pressure to make large
land acquisition to support its growth given its sufficient land
bank.

Scale Constrains Rating: Fantasia accelerated project development,
land replenishment and contracted sales from 2017 to try to catch
up with peers that have larger total contracted sales than its
CNY10 billion a year in 2013-2016.
Fantasia's attributable contracted sales reached CNY24 billion in
2018 (total contracted sales: CNY30 billion) from CNY16.5 billion
in 2017, but remained smaller than those of most 'B+' rated Chinese
property developers. Fitch expects Fantasia's attributable
contracted sales to rise by 6%-11% during 2019-2020. Attributable
sales are typically 75%-80% of total contracted sales.

DERIVATION SUMMARY

Fantasia's business and financial profile is comparable with those
of Guangdong Helenbergh Real Estate Group Co., Ltd. (Helenbergh,
B+/Stable) and Hong Kong JunFa Property Company Limited (Junfa,
B+/Stable).

Helenburgh's total contracted sales of CNY36 billion in 2018 were
slightly larger than Fantasia's, but Fantasia had a higher EBITDA
margin of 25% (Helenbergh 22%) and lower leverage at 42%
(Helenburgh 50%). Both companies are geographically diversified.
Fantasia's recurring EBITDA to gross interest expenses at 0.3x
provides support to its rating, whereas Helenburgh has minimal
recurring income.

Fantasia's contracted sales scale and EBITDA margin are similar to
Junfa's, but Junfa had higher leverage at 49%. Junfa had recurring
EBITDA to gross interest expense of 0.5x in 2018, higher than
Fantasia's 0.3x, due to Junfa's offices, malls and trade centres.
Junfa is a leading homebuilder in Yunnan province and Kunming city,
while Fantasia is a more diversified developer that focuses on Tier
1-2 cities.

Fantasia has a better business profile than most of the 'B' rated
peers, except Yango Group Co., Ltd. (Yango, B/Positive). Fantasia's
leverage is lower than Yango's although the latter has a bigger
sales scale. In addition, Fantasia's leverage is similar to 'BB-'
peers such as Times China Holdings Limited (BB-/Stable) and Yuzhou
Properties Company Limited (BB-/Stable), which have leverage of
40%-45%. However, Times and Yuzhou have slightly larger business
scales and faster churn.

KEY ASSUMPTIONS

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

  - Attributable contracted sales to reach CNY27 billion-34 billion

    in 2019-2020 (CNY24 billion and CNY17 billion in 2018 and
2017,
    respectively)

  - Average selling price at CNY11,500-13,300 in 2019-2021
    (CNY11,180 in 2018)

  - Attributable land premium equivalent to 24%-28% of
attributable
    contracted sales in 2019-2021 (28% in 2018)

  - EBITDA margin (excluding capitalised interest) of 25.5%-27.7%
    in 2019-2021 (25.8% in 2018)

KEY RECOVERY RATING ASSUMPTIONS

  - Fantasia to be liquidated in bankruptcy as it is an asset
    trading company

  - 10% administration claims

  - Advance rate of 70% applied to net development property
    inventory, excluding JVs as EBITDA margin is 20%-25%

  - Advance rate of 60% is applied to net investment property and
    property, plant and equipment

  - Excess cash of CNY17.5 billion was applied to the recovery
    analysis. This is based on the company's total cash minus
    minimum cash requirement, which is equal to three months of
    contracted sales.

  - 40% recovery rate applied to investments in money market
    fund and debt instruments

  - Cash under Colour Life deducted from group cash balance, and
    senior unsecured debt held under Colour Life deducted from
    group debt balance.

  - Residual value from Colour Life added to Fantasia's recovery
    analysis.

  - Accounts receivable held under Colour Life deducted from
    group receivables

These assumptions result in a recovery rate within the 'RR1' range.
However, the Recovery Rating is capped at 'RR4' because under
Fitch's Country-Specific Treatment of Recovery Ratings Criteria,
China falls into Group D of creditor friendliness, and instrument
ratings of issuers with assets in this group are subject to a soft
cap at the issuer's IDR.


GCL INTELLIGENT: Moody's Assigns B1 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service has assigned a first-time B1 corporate
family rating to GCL Intelligent Energy Co., Ltd (GCL IE).

The outlook is stable.

RATINGS RATIONALE

"GCL IE's B1 CFR reflects its established market position in
industrial parks in Suzhou, and growth prospects, supported by
favorable industry policies for clean energy," says Ralph Ng, a
Moody's Assistant Vice President and Analyst.

However, the rating is also challenged by (1) the company's
elevated financial leverage, (2) the volatile nature of coal and
gas fuel prices, in the absence of an automatic cost pass-through
mechanism in China, (3) the short track record of some of its new
operating projects, and (4) GCL IE's heavy capital spending over
the next 12-18 months.

"Furthermore, limited visibility about the credit quality of its
ultimate major shareholder, Golden Concord Group, introduces a
degree of uncertainty for GCL IE's credit profile," adds Ng.

Moody's points out that at least four of GCL IE's new cogeneration
plants will commence operations in 2019 and will start to
contribute cash flow, supporting an expected modest improvement in
its credit metrics in 2019.

On the other hand, Moody's estimates that GCL IE will incur about
RMB1.5-RMB2.5 billion in capital spending during 2019-2020, mainly
for the expansion of its gas-fired fleets — which will be partly
funded by debt — further constraining any material improvement in
its projected credit metrics.

Moody's expects that GCL IE's adjusted funds from operations (FFO)
to debt will stay at 6.5%-8.5% and FFO interest cover at 2.2x-2.5x
over the next two years. Such credit metrics support a CFR of B1.

GCL IE completed its backdoor listing in May 2019 and became a
subsidiary of a Shenzhen-listed company, GCL Energy Technology Co
Ltd, which is ultimately owned by Golden Concord Group.

Moody's notes that the independence and governance of GCL IE has
improved after the company's backdoor listing. That said, the
shareholding structure still leaves a degree of uncertainty about
the extent to which GCL IE's cash flow and financial position can
be protected to service its debt. GCL IE is effectively 58% owned
by Golden Concord.

Moreover, the credit quality of Golden Concord is opaque and
potentially weaker than that of GCL IE. Such situation raises the
potential for contagion risk and cash leakage from GCL IE over
time.

As with other gas-fired and coal-fired generation companies, GCL
IE's credit profile is challenged by the evolving regulatory
regime.

Higher coal and gas fuel costs have reduced GCL IE's profitability
and the cash flow from its power generation operation, in the
absence of a timely automatic cost pass-through mechanism, and as
reflected in the company's weakened credit profile in 2016-2018.
Moody's expects that this situation will continue over at least the
next 12-18 months, which would constrain the rating.

Moody's views the environmental risk is moderate for GCL IE because
the company's generation capacity is mainly coal-fired and
gas-fired power which involve carbon emission, particularly for
some of its power plants are small in scale in terms of installed
capacity which are less efficient than larger power plants.

Moody's reflects the potential capital spending required for
improving and maintaining the existing and new power plants in
order to comply with China's emission standard and requirement into
GCL IE's projected credit metrics.

The stable rating outlook reflects Moody's assessment that GCL IE's
performance and credit metrics will remain stable and its liquidity
will be manageable over the next 6-12 months.

The outlook also takes into account Moody's view that GCL IE will
maintain its independence from its ultimate parent, and that the
weaker credit quality of Golden Concord will not jeopardize the
creditworthiness of GCL IE.

Moody's could upgrade the rating if (1) there is clear evidence of
a lack of or limited credit linkage between Golden Concord and GCL
IE; (2) the credit profile of Golden Concord substantially improves
on a sustained basis; and (3) over the next 12 months, GCL IE's
liquidity materially improves and credit metrics improve
substantially.

Financial indicators indicating a potential upgrade include FFO
interest cover above 3.5x and adjusted funds from operations to
debt above 8% over a prolonged period.

Moody's could downgrade the rating if GCL IE (1) executes
debt-funded expansions; (2) demonstrates a weaker liquidity
position; (3) deviates from its business strategy as a power
generator; (4) adopts an aggressive dividend policy; and/or (5)
fails to maintain its stable operations in China.

Moody's will place the rating under review for downgrade if the
credit quality of Golden Concord deteriorates and there is no
evidence of a de-linkage between Golden Concord and GCL IE.

Financial indicators indicating a potential downgrade include FFO
interest cover below 1.5x and/or FFO to debt below 5% over a
prolonged period.

Heavy connected-party transactions, any sign of cash extraction by
the shareholder, unfavorable regulatory changes, a further
weakening of Golden Concord's credit strength — which materially
jeopardizes the operational and financial health of the company —
will also lead to a rating review.

The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in June 2017.

GCL Intelligent Energy Co., Ltd (GCL IE) is a privately-owned power
generating company, focusing on cogeneration facilities in
industrial parks in China, mainly in Jiangsu Province.

At the end of 2018, the company had a total installed capacity of
about 3GW, of which, 77% was gas-fired, 23% was coal-fired, wind,
biomass, and waste-to-energy.

GCL IE was previously 80% directly owned by Golden Concord Group
Limited. It is now 58% effectively owned by Golden Concord, after
the completion of a backdoor listing of GCL IE via its parent, GCL
Energy Technology, in May 2019.


HONGHUA GROUP: Fitch Assigns B(EXP) Rating to New USD Unsec. Notes
------------------------------------------------------------------
Fitch Ratings has assigned Honghua Group Limited's (B/Stable)
proposed US dollar senior unsecured notes an expected rating of
'B(EXP)' with a Recovery Rating of 'RR4'.

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

Honghua's Long-Term Foreign-Currency Issuer Default Rating (IDR) of
'B' and senior unsecured rating of 'B' incorporate a one-notch
uplift from its Standalone Credit Profile (SCP) of 'b-'. This is
based on potential support from its controlling shareholder, China
Aerospace Science and Industry Corporation Limited (CASIC), as
Fitch assesses the legal, operational and strategic ties between
Honghua and CASIC as moderate under its Parent and Subsidiary
Rating Linkage criteria. Honghua's SCP reflects improved
profitability and positive funds from operation (FFO).

KEY RATING DRIVERS

Moderate Linkage with CASIC: Fitch assesses the linkage between
Honghua and CASIC as moderate under its rating criteria. This leads
to a one-notch uplift from Honghua's SCP. CASIC became Honghua's
largest shareholder after an equity placement in 2017; CASIC holds
29.98% of Honghua's shares and treats Honghua as a subsidiary in
its accounts. Honghua's and CASIC's operations are largely
independent, although Fitch understands from management that CASIC
views Honghua's expertise in land drilling equipment as
complementary to CASIC's energy business.

CASIC appointed three board members and several key management to
Honghua, including the chairperson and chief financial officer.
CASIC, through a subsidiary, has provided tangible support to
Honghua in the form of credit facilities and two low-interest
shareholder loans totalling CNY600 million since 2017. In addition,
CASIC has supported Honghua in building business relations with
central state-owned enterprises (SOEs) in the oil and gas sector
and power and energy industries.

New Orders Support Expansion: Honghua signed 34 new orders for
land-drilling rigs in 2018 that will support the company's growth
in 2019. The orders are worth around USD453 million. Honghua
returned to profit in 2018 thanks to a recovery in the oil and gas
market and the disposal of its unprofitable offshore business. Both
EBITDA and EBIT turned positive for the first time since 2015.
Honghua's core land-drilling rigs business experienced a surge in
orders and sales, driven by demand from Ukraine and Middle East.
Honghua sold 24 land-drilling rigs in 2018, with an average selling
price (ASP) of CNY97 million, compared with eight units in 2017
with an ASP of CNY52 million.

Improving Financial Profile: Honghua's financial profile at
end-2018 and Fitch's expectation of steady recovery in cash flow
generation support Honghua's SCP. Honghua's financial metrics have
improved as the business recovered. Honghua generated positive FFO
in 2018, with an FFO margin of 7.1%, compared with negative FFO in
2017 and 2016. FFO fixed-charge coverage also improved to 2.1x in
2018, from negative figures in 2016-2017. It posted FFO adjusted
net leverage of 5.2x in 2018, the lowest level since 2013 (and
excluding 2016 and 2017, when it had negative FFO). However, 2018
leverage was still above 4.5x, the level below which Fitch may
consider positive rating action.

Medium-Term Benefits from Asset Sale: Honghua completed the sale of
its unprofitable offshore business in 2H18. The immediate cash
benefit is minimal, as Honghua only received token consideration,
but the transaction brings medium-term benefits, as the company
will receive debt repayments from the offshore operations and avoid
the heavy capex required for business. Fitch assumes only partial
debt repayments in its rating-case forecast, as there is
uncertainty around the offshore segment's operation and
debt-repayment ability.

Stronger Receivables Collection: Fitch expects stable receivables
turnover in the medium-term to support Honghua's SCP of 'b-'.
Honghua's receivables collection improved considerably in 2018.
Receivables turnover declined to 255 days in 2018, from 429 days in
2017, due to a recovery in the upstream oil and gas market and the
assistance provided by CASIC in collecting receivables from SOEs.
Honghua's inventory turnover also improved, with inventory days
dropping significantly to 183 days, from 430 days.

DERIVATION SUMMARY

Honghua's IDR incorporates a one-notch uplift for potential support
from its controlling shareholder, CASIC. Honghua's SCP remains
weaker than that of domestic oilfield equipment and service peers,
such as Hilong Holding Limited (B+/Stable) and Anton Oilfield
Services Group (B/Stable), despite the improvement in operation and
financial metrics in 2018. Honghua's operating EBITDA margin of
13.7% is the lowest of the three oilfield equipment and service
peers, while its FFO adjusted net leverage of 5.2x is the highest.

KEY ASSUMPTIONS

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

  - Revenue growth of 3%-8% during 2019-2022 (2018: 81%).

  - EBITDA margin of 13.8%-14.2% in 2019-2022 (2018: 13.7%).

  - Capex of CNY300 million a year in 2019-2022 (2018: CNY405
    million).

  - Partial repayment of debt from disposed offshore segment in
    2019-2022.

  - No major investment plan during 2019-2022.

Its recovery analysis is based on enterprise value as a going
concern, as it is higher than the liquidation value. The
going-concern value is derived from Honghua's 2018 EBITDA of CNY577
million, enterprise value/EBITDA multiple of 5.0x and 10%
administrative claim. The Recovery Rating assigned to Honghua's
senior unsecured debt is 'RR4', as implied by the recovery
analysis.

RATING SENSITIVITIES

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

  - Evidence of stronger legal, operational and strategic linkages
    with CASIC.

  - FFO adjusted net leverage sustained below 4.5x (2018: 5.2x).

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

  - Evidence of weaker legal, operational and strategic linkages
    with CASIC.

  - FFO fixed charge coverage below 1.2x for a sustained period
    (2018: 2.1x).

LIQUIDITY

Adequate Liquidity: Fitch believes Honghua's financing ability has
improved with CASIC's shareholding; Honghua has obtained
shareholder loans and credit facilities from CASIC. Honghua's
CNY2.5 billion of short-term debt at end-2018, including the 2019
US dollar senior notes of CNY0.8 billion, should be covered by
CNY0.7 billion of available cash and CNY5.8 billion of undrawn
borrowing facilities, including unused facilities of around CNY1.1
billion provided by CASIC. The facilities are uncommitted, as
committed facilities are uncommon in China's banking system.


JINGRUI HOLDINGS: Moody's Rates Proposed USD Sr. Unsec. Notes 'B3'
------------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to Jingrui
Holdings Limited's (B2 stable) proposed senior unsecured USD
notes.

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

RATINGS RATIONALE

"The proposed bond issuance will lengthen the company's debt
maturity profile and support its liquidity profile without bringing
material impact to its credit metrics, because the company will use
the proceeds mainly to refinance existing debt," says Cedric Lai, a
Moody's Vice President and Senior Analyst.

Moody's expects Jingrui's leverage, as measured by revenue/adjusted
debt, will trend toward 64%-66% over the next 12-18 months from 57%
in 2018, supported by increasing revenue growth because of the
solid contracted sales in the past year, and this will outpace the
slowing debt growth over the same period.

Additionally, its adjusted EBIT/interest coverage will slightly
improve to 2.0x-2.1x over the same period from 1.9x in 2018 due to
the strong revenue recognition and improving gross margin which
mitigate the rising funding cost.

Moody's expects Jingrui will moderately grow its total contracted
sales by 5%-10% year-on-year to RMB26-RMB28 billion in the next
12-18 months, supported by its established market position in its
core Yangtze River Delta market. Jingrui's contracted sales reached
RMB25.2 billion in 2018, up 37% year-on-year from RMB18.4 billion
in 2017.

Jingrui's B2 corporate family rating reflects its modest scale,
moderate financial profile and relatively low but improving
profitability. The rating also takes into account the company's
track record of developing properties in Shanghai and other cities
in the economically strong Yangtze River Delta area.

However, the rating is constrained by the company's small scale and
relatively high geographic concentration.

The company's B3 senior unsecured debt rating is one notch lower
than the corporate family rating due to structural subordination
risk.

This risk reflects the fact that the majority of claims are at the
operating subsidiaries. These claims have priority over Jingrui's
senior unsecured claims in a bankruptcy scenario. In addition, the
holding company lacks significant mitigating factors for structural
subordination. As a result, the expected recovery rate for claims
at the holding company will be lower.

The stable ratings outlook reflects Moody's expectation that
Jingrui's improved sales execution for properties in higher-tier
cities in China can be sustained over the next 12-18 months.

Jingrui's liquidity position is adequate. Moody's expects the
company's cash holdings and operating cash flow will be sufficient
to cover its short-term debt and committed land payments over the
next 12 months. As of December 2018, the company has total cash
balance of RMB13.1 billion which covered 1.69x of its short-term
debt including puttable bonds of RMB8.2 million as at the same
date.

Upward ratings pressure could develop if Jingrui substantially
grows its scale, while maintaining 1) sound credit metrics, with
adjusted revenue/debt above 95%-100%, and EBIT/interest coverage
above 3.5x on a sustained basis; and 2) adequate liquidity position
on a sustained basis.

Downward ratings pressure could emerge if Jingrui's 1) liquidity
weakens, such that its cash/short-term debt falls below 100%; and
2) profit margins come under pressure, constraining its interest
coverage and financial flexibility, such that EBIT interest
coverage falls below 2.0x.

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

Jingrui Holdings Limited is a Shanghai-based property developer.
The company listed on the Hong Kong Stock Exchange in October 2013.
It was originally established in 1993 as Shanghai Jingrui Property
Development Company by a group of businessmen, including its
current key shareholders and executive directors, Mr. Chen Xin Ge
and Mr. Yan Hao.

The company engages in property development, with a focus on
residential projects in the Yangtze River Delta and other
second-tier cities in China.

As of December 2018, Jingrui had land bank of about 4.8 million
square meters, located across 13 cities in China, including
Tianjin, Ningbo, Suzhou, Hangzhou, Wuhan and Shanghai.


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

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

KWG's ratings are supported by its quality and sufficient land
bank, strong brand recognition in higher-tier cities across China,
consistently robust profitability, strong liquidity and healthy
maturity profile. The ratings are constrained by the small scale of
the company's development property business as well as weak sales
efficiency.

KEY RATING DRIVERS

Diverse Coverage; Strong Branding: KWG's land bank is diversified
across China's Greater Bay Area, which includes Guangzhou, Foshan,
Shenzhen and Hong Kong, as well as eastern and northern China. The
company had 17.5 million square metres (sq m) of attributable land
at end-1Q19, spread across 36 cities in mainland China and Hong
Kong, which had an average cost of CNY4,700/sq m (excluding Hong
Kong) and was sufficient for around five years of development.
Among total sellable resources of CNY450 billion, over CNY200
billion of assets are located in the Greater Bay Area, where the
company has extensive experience and established operations.

KWG has established strong brand recognition in its core cities by
focusing on first-time buyers and upgraders. It appeals to these
segments by engaging international architects and designers and
setting high building standards.

Robust Profitability through Cycles: KWG's EBITDA margin, excluding
capitalised interest, decreased by around 10% to 24% by end-2018.
This was mainly due to higher selling, general and administrative
(SG&A) expenses to support fast-growing consolidated sales of over
CNY20 billion, which was much larger than revenue of CNY7.5
billion. Thus, SG&A costs constituted a higher percentage of
revenue, leading to a lower operating margin. On the other hand,
its gross profit margin only fell by 2% to 33%. The fall was due to
higher unit-construction costs for a project in Hangzhou that was
delivered during the year, as the average selling price did not
increase as much.

Profitability of KWG's development properties has remained strong
through business cycles and is among the highest of Chinese
homebuilders. Protecting the margin is one of KWG's key objectives
and is achieved by maintaining higher-than-average selling prices
through consistently high-quality products. The company's
experienced project team also ensures strong execution capability
and strict cost control. Moreover, KWG has a low unit land cost of
around 25% of its average selling price due to its strong foothold
in Guangzhou, where land prices have not risen as much as in other
tier 1 cities.

Leverage Under Control: Fitch expects leverage, measured by net
debt/adjusted inventory, to stay at around 35%-40% based on the
company's sales prospects and land-bank replenishment strategy.
KWG's leverage on an attributable basis was around 35% at end-2018
(2017: 34%). The cash collection rate decreased in 2018 due to a
tighter credit environment, but leverage remained stable as the
company slowed land acquisitions; it only spent 61% of sales
proceeds to purchase land compared with 93% in 2017.

JVs with Leading Peers: KWG's prudent expansion strategy has
created strong partnerships with leading industry peers, including
Sun Hung Kai Properties Limited (A/Stable), Hongkong Land Holdings
Limited, Shimao Property Holdings Limited (BBB-/Stable), China
Vanke Co., Ltd. (BBB+/Stable), China Resources Land Ltd
(BBB+/Stable) and Guangzhou R&F Properties Co. Ltd. (BB-/Stable).
These partnerships help KWG lower project-financing costs, reduce
competition in land bidding and improve operational efficiency. JV
pre-sales made up 50% of KWG's total attributable pre-sales in 2018
and 53% in 2017.

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

Small Scale; Weak Churn: KWG's 2018 pre-sales rose by 72% yoy to
CNY65.5 billion, but only 65% of total sales were attributable to
the company as around 50% of pre-sales in 2018 came from JVs. KWG's
sales target in 2019 of CNY85 billion, which will be equivalent to
an attributable sales scale of around CNY55 billion, remains
smaller than 'BB' peers that has contracted sales of over CNY70
billion in 2018. KWG's sales efficiency, measured by attributable
contracted sales/ gross debt, of 0.4x-0.5x is slower than most
'BB-' peers' of over 1.0x.

DERIVATION SUMMARY

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

KWG's ratings are constrained by the small scale of its development
property business as well as weaker-than-peer sales efficiency.

KEY ASSUMPTIONS

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

  - EBITDA margin, excluding capitalised interest, to remain stable

    at 33%-34% in 2019-2020

  - Land replenishment rate of 1.5x contracted sales gross floor
area
    (attributable) in 2019-2021 (2018: 1.6x)

  - Leverage to remain within 35%-40% for 2019

RATING SENSITIVITIES

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

  - EBITDA margin sustained above 30%

  - Net debt/adjusted inventory sustained below 35%

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

  - EBITDA margin below 25% for a sustained period

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

LIQUIDITY

Adequate Liquidity: KWG has well-established diversified funding
channels and strong relationships with most foreign, Hong Kong and
Chinese banks. It has strong access to domestic and offshore bond
markets and was among the first companies to issue panda bonds. KWG
had available cash of CNY52.6 billion at end-2018, which was enough
to cover the repayment of CNY17.4 billion in short-term borrowing
and outstanding land premiums. Fitch expects the group to maintain
sufficient liquidity to fund development costs, land premium
payments and debt obligations in 2019 due to its diversified
funding channels, healthy maturity profile and flexible
land-acquisition strategy.


MONG DUONG: Moody's Gives (P)Ba3 Rating to USD Sec. Notes Due 2029
------------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba3 rating
to the proposed senior secured USD notes of Mong Duong Finance
Holdings BV due 2029.

This is the first-time that Moody's has assigned a rating to Mong
Duong Finance.

The outlook on the rating is stable.

The provisional status of the rating will be removed upon
completion of the transaction under satisfactory terms.

Mong Duong Finance is a finance entity created by the shareholders
of AES-VCM Mong Duong Power Company Limited (MDP), which owns and
operates coal-fired power plants. In tandem with the notes, Mong
Duong Finance will also raise a four-year amortizing bank loan
facility.

Mong Duong Finance will use the proceeds from the USD notes and the
bank loan facility to purchase MDP's project loan from the existing
lenders. Post this proposed transaction, Mong Duong Finance will be
a major lender to MDP.

MDP is the largest private sector power project in Vietnam, with a
capacity of 1,120 megawatts of two sub-critical coal-fired power
plants. It operates under a long-term power purchase agreement
(PPA), selling electricity to Vietnam Electricity, and under a coal
supply agreement with the Vietnam National Coal-Mineral Industries
Group (Vinacomin).

MDP benefits from the Government of Vietnam's (Ba3 stable)
guarantee on the performance of all payment obligations and all
financial commitments of Vietnam Electricity and Vinacomin, and the
government's compensation for MDP's operational difficulties
stemming from a failure of coal supply by Vinacomin, under
Government Guarantee and Undertaking Agreement (GGU) and the Build
Operate Transfer (BOT) contract.

The holders of the USD notes will be supported by several
structural features which establish a close linkage between the
credit profiles of MDP and Mong Duong Finance.

Such features encompass (1) Mong Duong Finance's status as the
major lender of MDP's existing project loan, with a matching
repayment structure between the proposed notes and MDP's project
loan; (2) MDP's undertaking to indemnify Mong Duong Finance's costs
associated with administration, letter of credit-based debt service
reserves and other operating costs; (3) a trustee-managed cash flow
waterfall; (4) collateral package; and (5) covenants with certain
carve outs.

Because of these features, the rating of Mong Duong Finance is
closely linked to MDP's credit profile.

RATINGS RATIONALE

"The (P)Ba3 rating of the notes primarily reflects MDP's cash flow
visibility, stemming from the fully contracted cash flow under the
long-term PPA and from strong support from the Vietnamese
government, and its solid debt service coverage metrics," says Mic
Kang, a Moody's Vice President and Senior Credit Officer.

MDP has a robust tariff structure that helps in the recovery of
capital costs and pass through of foreign exchange and fuel costs.
In addition, more than half of the company's revenue is derived
from a stable and predictable capacity charge, which represents a
core cash source for operating costs and debt repayment.

"The government's strong support is an important factor in driving
MDP's predictable operating cash flow, because it guarantees
Vietnam Electricity's performance of its payments and financial
commitments under the PPA, and its commitment mitigates MDP's
exposure to fuel supply risk," adds Kang.

The (P)Ba3 rating also recognizes MDP's solid debt service coverage
metrics, which provide credit support.

The rating also reflects Moody's expectation of the major sponsors'
— AES Corporation (Ba1 stable) and POSCO Energy, a subsidiary of
POSCO (Baa1 stable) — strong commitment and expertise, which will
likely continue to support MDP's operating performance.

Moody's believes AES Corporation and POSCO Energy will continue to
support MDP's operations, because the sponsors are long-term
investors in the Vietnamese power sector, with extensive
experience.

The (P)Ba3 rating of the notes is constrained by 1) MDP's
concentration in a single offtaker and a single coal supplier; (2)
MDP's short track record of above four-year operations; and (3)
Vietnam's sovereign rating of Ba3 stable.

Any material disruptions at Vietnam Electricity or Vinacomin, or
both, will have a meaningful impact on MDP's operations, given
MDP's full reliance on Vietnam Electricity for power sales and on
Vinacomin for coal supply. Nevertheless, this risk of concentration
in a single off-taker and a single coal supplier is mitigated by
the government's strong support through the GGU and the BOT
contract.

MDP has been performing well since commissioning, and the company
has implemented enhancements in the past year to improve its heat
rate, which was high until 2018. The maintenance of an improved
heat rate is key, given its impact on MDP' operational performance
and cash flow.

Moody's expects that MDP will achieve an average debt service
coverage ratio of between 1.4x and 1.5x over the next few years.
This result supports the (P)Ba3 rating of the notes.

Mong Duong Finance has in place a debt service reserve facility
equivalent to six months of debt service. However, such an
instrument has weaker features than cash-funded debt service
reserves.

Nevertheless, the credit quality of the notes benefits from typical
project finance structural features and collateral package,
including the share pledge by Mong Duong Finance and its accounts
under the notes, and share pledge by MDP, substantially all of
MDP's assets, project agreements, MDP's accounts and insurance and
reinsurance proceeds. MDP has no refinancing risk, given the fully
amortizing notes.

The stable rating outlook reflects Moody's expectation that the
Vietnamese government's strong commitment to MDP, mainly through
the GGU and the BOT contract, will remain intact, and that MDP's
performance will unlikely experience a material change over the
next 12-18 months when compared with Moody's base-case
projections.

Upward momentum in the rating is unlikely in the absence of an
upgrade of Vietnam's sovereign rating. Consequently, the rating
could be upgraded if (1) Vietnam's sovereign rating is upgraded;
and (2) MDP maintains its solid operations and financial leverage
within Moody's base case expectations.

The rating could come under downward pressure if (1) Vietnam's
sovereign rating is downgraded, (2) the government's support of the
company weakens, because of changes in regulations and in the
absence of compensation, and/or (3) MDP's debt service coverage
ratio falls materially to below 1.1x during the amortization
period. Moody's does not see such a scenario as likely.

Moody's considers MDP's exposure to environmental, social and
governance risk as moderate. MDP's plants are coal fired, and
therefore have a high intrinsic exposure to carbon transition
risks.

But such exposure is mitigated by the government's compensation for
most incremental costs against unfavorable changes in the law —
including environmental laws and regulations — through direct
payments or adjustments of the tariff structure under the BOT
contract. The sponsors' strong commitment to the company provides
additional comfort in MDP's ability to manage carbon transition
risk.

The principal methodology used in this rating was Power Generation
Projects published in June 2018.

AES-VCM Mong Duong Power Company Limited (MDP) is a limited
liability joint venture, which owns and operates two sub-critical
coal fired power plants with a total capacity of 1,120 megawatts.
The plants are located around 220 kilometers east of Hanoi (50 km
north-east of Ha Long City in Quang Ninh Province).

MDP is owned by AES Mong Duong Holdings B.V. (51%) — a subsidiary
of AES Corporation (Ba1 stable) — PSC Energy Global Co., Ltd
(30%) — a subsidiary of POSCO Energy, and which is in turn owned
by POSCO (Baa1 stable) — and Stable Investment Corporation (19%),
which is owned by China Investment Corporation, a sovereign wealth
fund of the Government of China (A1 stable).

Mong Duong Finance Holdings BV is the issuer of the proposed USD
notes. Initially, the entity is indirectly owned by AES Corporation
and China Investment Corporation. It will be owned by the same
shareholders as MDP and in the same proportional shareholding, if
POSCO Energy becomes a shareholder of Mong Duong Finance Holdings
BV.


OCEANWIDE HOLDINGS: Fitch Affirms B- LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed China-based Oceanwide Holdings Co.
Ltd.'s Long-Term Foreign-Currency Issuer Default Rating (IDR),
senior unsecured rating and the rating on its outstanding US dollar
senior notes at 'B-'. The Recovery Rating on its senior unsecured
rating is 'RR4'. The Outlook on the IDR is Stable.

The ratings are constrained by Oceanwide's high leverage - measured
by net debt/adjusted inventory, including available-for-sale (AFS)
financial assets and financial institution (FI) investments - of
around 75% at end-2018. Fitch estimates that leverage will improve
to 65% by end-2019, after the sale of its Shanghai and Beijing
projects to Sunac China Holdings Limited (BB/Stable) in January.
However, Oceanwide's leverage will increase thereafter due to weak
sales following this projects disposal as well as a high interest
burden, assuming it makes no further asset disposals. The ratings
are also constrained by the company's tight liquidity; its total
cash/short-term debt ratio was still low at 0.46x by end-1Q19,
despite the asset disposal.

Oceanwide's ratings are supported by its quality assets, a majority
of which are in good locations in Wuhan, with a total gross floor
area (GFA) of 8.7 million sq m at end-1Q19. Its FI subsidiaries
contributed CNY1.8 billion, or 51% of total EBITDA, in 2018. Fitch
expects the company's non-development property EBITDA/interest paid
ratio to remain at around 0.25x over the next two years, which
provides some buffer in servicing debt.

KEY RATING DRIVERS

Leverage Improves, Pressure Remains: Oceanwide's leverage is among
the highest of 'B' rated Chinese homebuilder peers. Its weak credit
metrics are due to its investments in FI subsidiaries and large
exposure to commercial development properties, which have long
cash-collection cycles. Fitch estimates Oceanwide's leverage will
improve to 65% by end-2019, from 75% in 2018, due to the asset
disposals to Sunac. However, leverage will remain under pressure
due to weak sales without contribution from the disposed projects
as well as its high interest burden, which will amount to CNY7
billion-8 billion a year in the next two years.

Unsustainable Sales: Fitch expects sales efficiency, as measured by
contracted sales/gross debt excluding FIs, to remain below 0.25x
for the next two years. Sales are likely to decrease by around 40%
in 2019 and remain weak, despite the company expecting its US
projects to start contributing at the end of the year. This implies
a contracted sales/gross debt ratio of 0.08x in 2019 and 2020.
Fitch expects the company to continue selling non-core assets to
improve liquidity as it transitions into a financial conglomerate.

Funding Pressure Easing Post-Deal: Oceanwide has received 80% of
the CNY12.6 billion net equity consideration for the assets
disposed in January 2019 and expects to receive the remaining 20%
by July 20, 2019. Total debt of CNY27.9 billion was transferred to
Sunac, of which CNY10.6 billion is due in 2019. Oceanwide's
short-term debt decreased to CNY45.0 billion (including CNY1.4
billion bonds puttable) at end-1Q19, from CNY62.9 billion
(including CNY3.5 billion bonds puttable) in 2018, while total
cash, including cash in its FI subsidiaries, remained flat at
CNY19.9 billion (2018: CNY21.6 billion).

Focus on Finance Businesses: Oceanwide is accelerating its
transformation into a financial conglomerate; EBITDA from its
finance business contributed over half of total EBITDA in 2017 and
2018, from only 16% in 2016. Still, the profitability of the
financial business fluctuates depending on the overall financial
environment. The non-development property EBITDA/interest paid
ratio fell to 0.20x in 2018's weak financial market, from 0.40x in
2017. Fitch expects this ratio to improve to 0.25x over the next
two years assuming similar performance as in 2018 but lower
interest expense due to a smaller debt balance.

Asset Base Supports Funding Access: Fitch believes Oceanwide still
has borrowing capacity, with unencumbered assets, including AFS and
investment in FIs, of CNY21 billion at end-2018. Among these
unencumbered assets, CNY17 billion were development properties and
the company should be able to use them to secure borrowings due to
their attractive valuations. Oceanwide has pledged property and
financial assets of CNY94.5 billion as well as shares of its FI
subsidiaries for CNY80 billion in secured debt.

DERIVATION SUMMARY

Oceanwide's ratings are severely constrained by its poor contracted
sales/gross debt, excluding FIs, of below 0.25x, which is among the
lowest ratios of all rated homebuilders. Its weak cash generation
led to leverage rising consistently to reach 75% in 2018 and made
it one of the highest leveraged among 'B' rated peers.

Oceanwide's poor credit metrics are due partly to its large
exposure to commercial development properties that have a long
cash-collection cycle. However, the company's slow-churn business
model means that its land bank is older and substantially
undervalued compared with that of fast-churn homebuilders. This
also means that Oceanwide has a high EBITDA margin among 'B' rated
peers.

KEY ASSUMPTIONS

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

  - No new land acquisitions over the next three years

  - Contracted sales of CNY6 billion-7 billion in the next
    three years (2018: CNY11.6 billion)

  - Property development EBITDA margin, excluding capitalised
    interest, of 35%-40% in 2019-2021 (2018: 41.5%)

  - Stable finance segment performance

  - No large investment in FIs over the next three years

Key Recovery Rating Assumptions

  - The recovery analysis assumes that Oceanwide would be
    liquidated rather than reorganised.

  - Fitch has assumed a 10% administrative claim.

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

  - Cash balance is adjusted such that only cash in excess of
    the higher of accounts payables and three months of
    contracted sales is factored in

  - 20% haircut to net inventory in light of Oceanwide's high
    EBITDA margin

  - 60% haircut to investment property after taking into
    consideration Oceanwide's low rental yield of 2%-3% and
    the quality of its investment property assets

  - 30% haircut to accounts receivables

  - 60% haircut to AFS financial assets and investment in FIs.

  - The recovery analysis is performed based on Oceanwide's
    end-2018 financials and disclosed transaction details of
    the asset disposal to Sunac

  - The waterfall indicates a recovery percentage corresponding
    to a 'RR3' recovery rating for Oceanwide's senior unsecured
    notes. However, the Recovery Rating is capped at 'RR4' because
    under Fitch's Country-Specific Treatment of Recovery Ratings
    Criteria, China falls into Group D of creditor friendliness,
    and instrument ratings of issuers with assets in this group
    are subject to a soft cap at the issuer's IDR.

RATING SENSITIVITIES

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

Fitch believes positive rating action is unlikely in the next 12-18
months unless there is a significant improvement in the liquidity
position of Oceanwide

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

  - Further weakening in the liquidity position of Oceanwide or
    China Oceanwide

  - Net debt/adjusted inventory including AFS & FI investment
    sustained above 80%

LIQUIDITY

High Funding Pressure: Available cash as at end-2018 was CNY7.4
billion, including CNY2.5 billion of cash in its FI subsidiaries.
This was inadequate to cover its large short-term debt balance of
CNY49.5 billion and CNY3.4 billion bonds puttable within the year.
After receiving 80% of equity consideration and CNY27.9 billion of
debt taken by Sunac, Oceanwide's short-term debt payable on its
property business decreased to CNY34.3 billion (including CNY1.4
billion bonds puttable within 12 months), while available cash for
the property business remained at around CNY5 billion.

Refinancing Plan in Place: Fitch believes Oceanwide can meet its
debt-repayment obligations in 2019 following its asset sales.
According to management, Oceanwide had CNY23.9 billion debt due
within the year at end May-2019, including domestic debt of CNY14.4
billion and overseas debt equivalent of CNY9.5 billion. The
company's liquidity sources include property sales proceeds,
government refunds, securing new banking facilities, issuing
domestic bonds as well as outbound guarantees and seeking strategic
partners. The company estimated that these channels may bring
additional liquidity of over CNY27.8 billion for the rest of this
year.

CNY12.1 billion of short-term debt at end-5M19 was secured
borrowings with land and shares in FIs as collateral, which
Oceanwide can negotiate to roll over if the funding cost is
competitive. Fitch believes Oceanwide had unencumbered assets of
CNY21 billion that can be collaterised to raise additional secured
borrowings. In addition, Oceanwide has total credit facilities of
CNY23.7 billion, among which CNY6.1 billion was not used at
end-2018.

FULL LIST OF RATING ACTIONS

Oceanwide Holdings Co. Ltd.

  - Long-Term Foreign-Currency IDR affirmed at 'B-', Outlook
    Stable;

  - Senior unsecured debt rating affirmed at 'B-', with Recovery
    Rating of 'RR4'

Oceanwide Holdings International 2015 Co., Limited

  - USD11.3 million 9.625% senior notes due 2020 affirmed at 'B-',
    with Recovery Rating of 'RR4'

Oceanwide Holdings International 2017 Co., Limited

  - USD400 million 7.75% senior notes due 2020 affirmed at 'B-',
    with Recovery Rating of 'RR4'

Oceanwide Holdings International Development III Co., Ltd.

  - USD280 million 12.0% senior notes due 2021 affirmed at 'B-',
    with Recovery Rating of 'RR4'

  - USD280 million 14.5% senior notes due 2021 affirmed at 'B-',
    with Recovery Rating of 'RR4'


ZHAOJIN MINING: Fitch Raises LongTerm Foreign Currency IDR to BB+
-----------------------------------------------------------------
Fitch Ratings has upgraded Zhaojin Mining Industry Company
Limited's Long-Term Foreign-Currency Issuer Default Rating and
senior unsecured rating to 'BB+' from 'BB'. The Outlook is Stable.
At the same time, Fitch has removed the Rating Watch Positive from
both ratings.

Zhaojin Mining's ratings are derived from Fitch's assessment of the
consolidated credit profile of Zhaojin Mining's immediate parent,
Zhaojin Group Company Limited, which is wholly owned by Zhaoyuan
municipality. The upgrade follows an upgrade of Fitch's internal
assessment of the creditworthiness of Zhaoyuan; linkage between
Zhaojin Group and Zhaoyuan remains unchanged.

Zhaojin Mining's rating is equalised with the credit profile of
Zhaojin Group, as Fitch assesses the linkage between the two
entities as 'Strong', underpinned by solid strategic and
operational ties, as per the agency's Parent and Subsidiary Rating
Linkage criteria.

KEY RATING DRIVERS

'Strong' State Control and Support: Fitch assesses Zhaojin Group's
status, ownership and control by Zhaoyuan municipality as 'Strong',
as the company is economically and strategically important to the
city. Zhaojin Group is wholly owned by the municipality and is the
largest producer in a city where gold is a major economic
contributor. Fitch assesses Zhaojin Group's support record as
'Moderate'. Zhaojin Mining has received financial subsidies from
the municipality, but the group's financial profile is weak.

'Strong' Incentive to Support: Fitch assesses the socio-political
consequences of a default by Zhaojin Group on Zhaoyuan as 'Strong'
because Zhaojin Group is the city's largest gold producer,
accounting for 80% of the city's gold-refining capacity and all of
its processing capacity. Fitch assesses that the financial
implications of a default as 'Very Strong' because Zhaojin Group
accounts for around 70% of the state-owned assets in Zhaoyuan and
is the city's largest debt issuer.

'Strong' Parent-Subsidiary Linkage: Zhaojin Mining is 33.74%-owned
by Zhaojin Group and holds the majority of the group's core assets.
It is also the group's only publicly listed subsidiary. The company
accounts for over 90% of Zhaojin Group's EBITDA and shares key
board members and senior management. Zhaojin Group also guarantees
some of Zhaojin Mining's bonds issued on the domestic market.

Low-Cost Gold Producer: The company's gold-mining business has cash
costs in the first quartile of the global cost curve, with an
average cash cost of USD660/oz, thanks to its high-quality assets.
Its gold profitability is comparable with that of highly rated gold
peers, such as Kinross Gold Corporation (BBB-/Stable) and Yamana
Gold Inc. (BBB-/Stable), and is higher than the gold business of
domestic peer, Zijin Mining Group Co., Ltd (BBB-/Stable). This
contributed to Zhaojin Mining's strong EBITDA margin of around 35%
in 2018.

High Leverage, Healthy Coverage: Zhaojin Mining's Standalone Credit
Profile is constrained by its high financial leverage, which is
driven by large capex. Fitch expects Zhaojin Mining's FFO adjusted
net leverage to remain high at around 6.0x in 2019 to 2020,
compared with 7.6x in 2018. However, the company's interest
coverage is ample, at around 3.5x, due to its low cost of funding.

Haiyu Mine to Boost Output: Zhaojin Mining has a 63.86% stake in
Haiyu gold mine, China's largest undersea gold mine, with estimated
reserves of around 500 tonnes at end-2018. Fitch expects commercial
production to commence in the next two to three years, which will
add around 14 tonnes of annual production to the group's existing
20 tonnes, significantly boosting the size of its gold-mining
business. Fitch has not factored in the contribution from the Haiyu
mine in its 2019-2022 financial forecasts, as Fitch does not expect
commercial production to begin in the near term.

DERIVATION SUMMARY

Zhaojin Mining's rating is equalised with the credit profile of
Zhaojin Group, based on strong linkage as per Fitch's Parent and
Subsidiary Rating Linkage criteria. Zhaojin Group's profile is
notched from Fitch's internal assessment of the credit profile of
Zhaoyuan municipality, due to the high likelihood of support from
the local government, as per Fitch's Government-Related Entities
Rating Criteria.

Zhaojin Group's notching from its parent is similar to that of
steel producer HBIS Group Co., Ltd.'s (BBB+/Stable) from Hebei
State-owned Assets Supervision and Administration Commission. HBIS
is the largest steelmaker in Hebei and steel is a major economic
driver for the province, accounting for 40% of the total assets of
the province's state-owned enterprises. Similarly, Zhaojin Group is
the largest gold miner in Zhaoyuan, where gold production is a
significant contributor to economic activity. Zhaojin Group
accounts for 70% of Zhaoyuan's total state-owned assets.

KEY ASSUMPTIONS

  - Gold gross margin to remain at around 40% between 2019 and 2021
(2017: 40%)

  - Gold price to be maintained at around USD1,200/oz between 2019
and 2021.

  - Capex of CNY2.2 billion each year between 2019 and 2021 (2018:
CNY1.6 billion)

  - Dividend pay-out ratio of around 20%-30%

RATING SENSITIVITIES

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

  - An upgrade of Fitch's internal assessment of the
creditworthiness of Zhaoyuan

  - Increase in the likelihood of support from the Zhaoyuan
government

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

  -  A downgrade of Fitch's internal assessment of the
creditworthiness of Zhaoyuan

  - Weakening of likelihood of support from the Zhaoyuan
government

  - Weakening linkages between Zhaojin Mining and Zhaojin Group

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Zhaojin Mining had around CNY16.0 billion in
unused credit facilities and CNY1.1 billion in cash as of end-2018,
against around CNY8.4 billion in short-term debt. Zhaojin Mining
also has access to offshore equity markets and domestic and
offshore bond markets, and maintains satisfactory relationships
with major domestic financial institutions.


[*] CHINA: $40 Trillion Banking System Learns Hard Lesson on Risk
-----------------------------------------------------------------
Bloomberg News reports that two months after China shocked
investors with the first government seizure of a bank in two
decades, market confidence in the nation's smaller lenders has yet
to fully recover.

That may be just what the country needs, Bloomberg says.

Bloomberg relates that when it took control of Baoshang Bank Co. on
May 24 and imposed losses on some creditors, China's government
upended the long-held assumption that it would always provide banks
with a 100% backstop.

The result has been a wholesale repricing of risk for all but the
largest Chinese lenders, a development that analysts say was long
overdue in a country rife with moral hazard, the report says. While
the upheaval has underscored the fragility of some smaller banks
and adds to short-term headwinds buffeting the economy, it may
ultimately put China's $40 trillion banking system on a more
sustainable path by forcing markets to differentiate between weak
and strong lenders.

"The long-term implications are actually very positive," Bloomberg
quotes Jason Bedford, a Hong Kong-based analyst at UBS Group AG who
was among the first to highlight Baoshang's troubles in 2017, as
saying.

Before the takeover, funding costs for small- and mid-sized Chinese
banks were remarkably similar to those of blue-chip names like
Industrial & Commercial Bank of China Ltd., the world's largest
lender by assets, says Bloomberg.

According to Bloomberg, the rationale for a lack of differentiation
was simple: When times got tough, authorities would always make
sure that even the smallest banks fulfilled their obligations to
depositors and other creditors. That assumption kept money flowing
to banks -- and by extension the Chinese economy -- even as critics
warned that it was fueling excessive risk-taking and a dangerous
buildup of bad loans.

Now -- even though Baoshang has reportedly made good on almost all
its obligations -- a government backstop is seen as no sure thing.

"The corporate bond market is currently reducing the probability of
an implicit government guarantee on all liabilities of small
banks," Kelvin Pang, a credit strategist at Morgan Stanley in Hong
Kong, wrote in a report last month, Bloomberg relays. "We continue
to believe that government support for banks (including small
banks) remains strong, but it's using a differentiated approach."

It's hard to say if this is the outcome authorities anticipated.
Bloomberg says the Baoshang takeover was complicated by the fact
that the bank was part of Xiao Jianhua's Tomorrow Group, an
investment conglomerate that's under investigation in China.
Regulators were at one point arranging for a state-owned firm to
buy a stake in Baoshang, before realizing that the lender's
financial situation was more precarious than they thought, people
familiar with the matter said in May, Bloomberg relates.

A lack of detail in the government's early communications on the
takeover gave some investors the impression that it was hastily
arranged, according to Bloomberg. Market participants were also
left guessing about the extent of losses facing Baoshang creditors,
leading some to dramatically cut their exposure to other smaller
lenders.

In the interbank funding market -- a critical piece of China's
financial plumbing –- some strong banks began rejecting
collateral from all but the most creditworthy counterparties.
Repurchase volume tumbled by 43% in a week, Bloomberg discloses
citing data cited by JPMorgan Chase & Co.

Funding stress was also apparent in the market for negotiable
certificates of deposit, where the interest-rate gap between
lower-rated and AAA banks soared to the highest level since
Bloomberg began compiling the data in 2015.

Bloomberg says authorities tried to ease concerns about a sudden
pullback of government support, highlighting Baoshang's links with
Tomorrow Group and portraying the case as unique. They also pumped
cash into the nation's money markets to bring down borrowing costs,
injecting a net CNY250 billion ($36 billion) in a single day on May
29.

Other assistance was targeted at individual banks, Bloomberg
states. To help one mid-sized lender sell bonds in June, a
state-owned insurer struck a rare agreement to provide credit
protection for the issuance.

As for Baoshang, officials appear to have imposed much less
draconian haircuts on creditors than first feared, according to
Bloomberg. About 99.98% of the bank's corporate creditors received
full principal and interest payments, China's central bank said in
June. All of Baoshang's individual savers were made whole.

Even so, creditors aren't taking any chances, Bloomberg says. The
yield gap between low- and top-rated NCDs, a key measure of the
market's wariness toward smaller Chinese banks, is still more than
four times wider than it was before the Baoshang seizure.

"Although the actual loss for creditors is negligible, this is the
first time in almost 20 years that a bank default in China almost
became reality," Helen Huang, a fixed-income analyst at HSBC
Holdings Plc in Hong Kong, wrote in a July 9 note, Bloomberg
relays. "The takeover of Baoshang Bank can be seen a big step
towards more credit differentiation.




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

AADHAAR SHRI: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Aadhar Shri Infratech Private Limited
        42-C, Block R, Dilshad Garden
        East Delhi, Delhi 110095
        India

Insolvency Commencement Date: July 11, 2019

Court: National Company Law Tribunal, Delhi Bench

Estimated date of closure of
insolvency resolution process: January 6, 2020

Insolvency professional: Prabhat Ranjan Singh

Interim Resolution
Professional:            Prabhat Ranjan Singh
                         Chamber No. 119, C.K. Daphtary Block
                         Supreme Court of India
                         Tilak Lane, New Delhi 110001
                         E-mail: prabhat.rs.advocate@gmail.com

                            - and -

                         Resurgent Resolution Professionals LLP
                         905, 9th Floor, Tower C
                         Unitech Business Zone
                         Nirvana Country
                         Sector 50 Gurgaon
                         Haryana 122018
                         E-mail: cirp.aadhaarshriinfratech@
                                 gmail.com

Last date for
submission of claims:    August 3, 2019


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

The instrument-wise rating actions are:

-- INR91 mil. Fund-based limits migrated to non-cooperating
     category with IND BB (ISSUER NOT COOPERATING) rating;

-- INR622.7 mil. Term loan due on June 2025 migrated to non-
     cooperating category with IND BB (ISSUER NOT COOPERATING)
     rating; and

-- INR9.5 mil. Non-fund-based limits migrated to non-cooperating
     category with IND A4+ (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 24, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2002 as Agnes Exim Private Limited, the company was
renamed ADPL in 2008. A change in the object clause was made to set
up an Indian-made foreign liquor and country liquor bottling plant.
The company commenced operations in 2012.


ANRAK ALUMINUM: CARE Migrates D Rating to Not Cooperating Category
------------------------------------------------------------------
CARE had, vide its press release dated June 7, 2018; placed the
rating(s) of Anrak Aluminum Limited (AAL) under the 'issuer
non-cooperating' category as AAL had failed to provide information
for monitoring of the rating as agreed to in its Rating Agreement.
AAL continues to be non-cooperative despite repeated requests for
submission of information through email dated July 09, 2019 and
numerous phone calls. In line with the extant SEBI guidelines, CARE
has reviewed the rating on the basis of the best available
information which however, in CARE's opinion is not sufficient to
arrive at a fair rating. The rating on AAL's bank facilities will
now be denoted as CARE D; ISSUER NOT COOPERATING.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank     2995.00      CARE D; ISSUER NOT COOPERATING;
   Facilities                      Based on best available
                                   information

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 assigned to the bank facilities of ALL continue to be
constrained due to delays in debt servicing on account of stretched
liquidity position at the back of delay in commencement of
operations.

Detailed description of the key rating drivers

At the time of last rating on June 7, 2018; the following were the
rating weaknesses and strengths:

Key Rating Weaknesses

Delays in debt servicing on account of stretched liquidity position
at the back of delay in commencement of operations: There are
delays in servicing of debt obligations by AAL. Due to
non-availability of raw material, AAL has not been able to commence
operations in its alumina refinery. AAL's inability to generate
requisite cash accruals from its power plant operations considering
high debt obligations has led to delays in debt servicing.

ANRAK Aluminium Limited promoted by Penna Group along with Ras Al
Khaimah Investment Authority (RAKIA - Investment Body of Government
of Ras Al Khaimah) in 2007 to set up a 1.5 million tons per annum
(MTPA) Alumina refinery along with 3*75 (225 MW) coal based
co-generation power plant at Vishakhapatnam.


ANSH ELECTROPLAST: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Ansh Electroplast Pvt. Ltd.
        GF-10, Ruby Apartment
        Opp. Navjivan Bus Stop
        Ajawa Road Vadodara
        Vadodara GJ 390019
        India

Insolvency Commencement Date: July 10, 2019

Court: National Company Law Tribunal, Ahmedabad Bench

Estimated date of closure of
insolvency resolution process: January 6, 2020

Insolvency professional: Mr. Kedar Ramratan Laddha

Interim Resolution
Professional:            Mr. Kedar Ramratan Laddha
                         501  Shajanand Shopping Centres
                         Shahibaug, Ahmadabad
                         Gujarat 380004
                         E-mail: ip@kpsjca.com
                                 kladdha@kpsjca.com

                            - and -

                         B-1002 – Mondeal Square
                         Nr. Prahladnagar Garden
                         SG Highway
                         Ahmedabad 380015

Last date for
submission of claims:    July 24, 2019


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

The instrument-wise rating action is:

-- INR90 mil. Proposed long term loan migrated to non-cooperating

     category with Provisional IND B+ (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 23, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Registered in September 2017, ARL is undertaking the construction
of a residential real estate project, Vetro Apartments, in Wadgaon
Sheri, Pune.


CHAMBER CONSTRUCTIONS: Insolvency Resolution Process Case Summary
-----------------------------------------------------------------
Debtor: Chamber Constructions Private Limited
        Registered address:
        RNA Corporate Park
        Next to Collector’s Office
        Kalanagar, Bandra (East)
        Mumbai, Maharashtra 400051

Insolvency Commencement Date: July 17, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: January 13, 2020
                               (180 days from commencement)

Insolvency professional: Mr. Rajender Kumar Girdhar

Interim Resolution
Professional:            Mr. Rajender Kumar Girdhar
                         Oshiwara Mahada Complex
                         Building No. 5
                         Aster Coop. Housing Society
                         Flat No. 205, 2nd Floor
                         New Link Road, Oshiwara
                         Andheri (W), Mumbai 400053
                         E-mail: rkgirdhar1@yahoo.co.in

                            - and -

                         Sumedha Management Solutions Pvt. Ltd.
                         C-703, Marathon Innova
                         Off. G.K. Marg, Lower Parel West
                         Mumbai 400013
                         E-mail: ccpl@sumedhamanagement.com

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

Insolvency
Professionals
Representative of
Creditors in a class:    Mr. Rohit Vora
                         A-1103, Raj Sunflower Royal Complex
                         Eksar Road, Borivali
                         Mumbai, Maharashtra 400092
                         E-mail: contact@rohitvora.com

                         Mr. Prabhanjan Maheshwari
                         D 2205, Oberoi Splendor Jvlr
                         Jogeshwari (East), Mumbai City
                         Maharashtra 400060
                         E-mail: prabhanjan70@gmail.com

                         Mr. Mahesh Kumar Gupta
                         C/o Aemg & Associates Chartered
                             Accountants
                         202, New Heera Panna Industrial Estate
                         Opp Business Park
                         Near Virwani Industrial Estate
                         Off Western Express Highway
                         Goregaon (East), Maharashtra 400063
                         E-mail: camkg59@gmail.com
   
Last date for
submission of claims:    July 31, 2019


CUBE INDIA: CRISIL Lowers Rating on INR25cr Loans to 'D'
--------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Cube
India Paper Mills Private Limited (CIPMPL) to 'CRISIL D' from
CRISIL BB-/Stable owing to delays in the repayment of instalment of
term loans. The delays have been caused by weak liquidity.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit             8.5       CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

   Proposed Long Term      3.41      CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL BB-/Stable')

   Term Loan              13.09      CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

The rating reflects modest scale of operations in a fragmented
industry, working capital intensive operations and weak debt
protection metrics. These weaknesses are partially offset by
promoters' extensive experience and healthy relationships with
clients.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations: With revenue of INR38 Cr for FY19,
scale of operations remain modest in a highly fragmented industry.

* Working capital-intensive operations: Large working capital
requirement is reflected in gross current assets of 194 days as on
March 31, 2019, driven by inventory of 133 days and debtors of 58
days. Due to working capital intensive operations, bank limits
remain fully utilized.

* Weak debt protection metrics: Debt protection metrics remain
weak, with interest coverage and net cash accrual to total debt
ratio (NCATD) at 1.55 times and 0.08 times, respectively, for
fiscal 2019.

Strengths:

* Promoters' extensive experience and healthy relationships with
clients: Presence of around 15 years in various industries has
given the promoters insight into market dynamics and helped them
identify price trends. CRISIL believes the promoters' experience
will continue to support CIPMPL's business risk profile.

Liquidity
Liquidity profile is marked by lower cash accruals against
repayment obligations and high bank limit utilization.

CIPMPL has generated cash accruals of INR1.7 Cr against repayment
obligations of INR1.93 for FY19. Due to working capital intensive
operations, bank limits are fully utilized with instances of over
utilization.

Incorporated in December 2014 and promoted by Mr. Hareesh
Chimaneni, Mr. Pothu Raju, and Mr. Motukari Laxman Kumar, CIPMPL
manufactures kraft paper at its facility in Narasaraopet, Guntur
district, Andhra Pradesh. Commercial operations began from November
2016.


DIVYARATNA AGROTECH: CARE Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Divyaratna
Agrotech Private Limited (DAPL) continues to remain in the 'Issuer
Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long term Bank       4.00       CARE D; Issuer Not Cooperating;

   Facilities                      Based on best available
                                   Information

   Short-term Bank     29.50       CARE D; Issuer Not Cooperating;
   Facilities                      Based on best available
                                   Information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated June 22, 2018, placed the
rating of DAPL under the 'issuer non-cooperating' category as DAPL
had failed to provide information for monitoring of the rating and
had not paid the surveillance fees for the rating exercise as
agreed to in its Rating Agreement. DAPL continues to be
non-cooperative despite repeated requests for submission of
information through e-mails, phone calls and a letter/email dated
June 20, 2019. In line with the extant SEBI guidelines, CARE has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating.

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 description of the key rating drivers

At the time of last rating on June 22, 2018 the following were the
rating strengths and weaknesses:

Key rating weaknesses:

Ongoing delays in debt servicing: As per interaction with banker,
there have been ongoing delays in debt servicing and account is
classified as NPA.

Divyaratna Agrotech Private Limited (DAPL), incorporated in the
year 2000 was taken over in 2007 by Mr.Dilip Jindal and Mrs.
Rachana Jindal, directors of Desmo Exports Limited. DAPL is engaged
in the business of trading of industrial chemicals and solvents.
The company trades nearly 25 different varieties of products which
find its application in textile, food, dyes, rubber, paint,
ceramic, fertilizer, soap, printing ink, petroleum, metallurgy,
construction materials, pulp and paper industry, photographic and
adhesive industries. DAPL earns its entire revenue from the
domestic market. The major raw material import consists of Citric
Acid, Paraffin wax & Sodium sulphate from countries such as China,
Korea and Thailand. The warehouse of the company is located in
Bhiwandi, Maharashtra.


ERODE CRITICAL: CRISIL Maintains D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Erode Critical And
Emergency Care Centre Private Limited (ECCPL) continues to be
'CRISIL D Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Long Term Loan          14         CRISIL D (ISSUER NOT
                                      COOPERATING)

   Proposed Long Term       1         CRISIL D (ISSUER NOT
   Bank Loan Facility                 COOPERATING)

CRISIL has been consistently following up with ECCPL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of ECCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ECCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of ECCPL continues to be 'CRISIL D Issuer not
cooperating'.

ECCPL, incorporated in 2013, runs a multispecialty hospital in
Erode, Tamil Nadu. Dr Mutukrishnan, manages the day to day
operations of the company.


EROS INTERNATIONAL: Posts Quarterly Loss Due to Impairment Charge
-----------------------------------------------------------------
Reuters reports that Eros International Plc on July 22 swung to a
loss in the fourth quarter due to an impairment charge and a rise
in costs, sending its U.S-listed shares down more than 6% in
premarket trade.

Reuters relates that the company, which owns a vast library of
Bollywood movies and music, has been struggling after a rating
agency categorised its Indian subsidiary's debt at "default" levels
due to delays in payments.

According to Reuters, Eros has been placing its bets on its digital
streaming unit, Eros Now, to gain market share, especially in
India, where it rivals Star India's streaming platform Hotstar,
Netflix Inc and Amazon Prime. Eros said the unit had 18.8 million
subscribers at the end of the quarter.

Eros said it booked an impairment loss totalling $423.3 million
during the quarter, mainly due to high discount rates and "changes
in the market conditions," Reuters relays.

Eros International's operating loss was $4.4 million in the quarter
ended March 31, compared with a profit of $20.3 million last year,
Reuters discloses. Revenue from India fell 1.6% to $24.6 million in
the quarter, the company said.

Eros International Plc is the holding company of the Eros Group.
Through its group subsidiaries, the company acquires, co-produces
and distributes Indian language films in various formats globally
(50 countries, in over 25 dubbed or subtitled languages), then
monetizes the IPRs through multiple distribution channels.

Eros International Plc is listed on the New York Stock Exchange,
and the promoter group owns 31.3% of the company.

As reported in the Troubled Company Reporter-Asia Pacific on June
28, 2019, Moody's Investors Service withdrawn the B2 corporate
family rating of Eros International Plc. At the time of withdrawal
the outlook was negative.  Moody's has decided to withdraw the
rating for its own business reasons.


FOUNTAIN IMPORTS: CARE Maintains D Rating in Not Cooperating
------------------------------------------------------------
CARE Ratings said the rating for the bank facilities of Fountain
Imports Private Limited (FIPL) continues to remain in the 'Issuer
Not Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank      10.00       CARE D; Issuer Not Cooperating;
   Facilities                      Based on best available
                                   information

   Short-term Bank      5.00       CARE D; Issuer Not Cooperating;
   Facilities                      Based on best available
                                   information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated June 22, 2018, placed the
rating(s) of FIPL under the 'issuer non-cooperating' category as
FIPL had failed to provide information for monitoring of the rating
for the rating exercise as agreed to in its Rating Agreement. FIPL
continues to be non-cooperative despite repeated requests for
submission of information through e-mails, phone calls and a
letter/email dated June 20, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating.

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 description of the key rating drivers
At the time of last rating on June 22, 2018 the following were the
rating weaknesses:

Key Rating Weaknesses

Delay in debt servicing: As per the banker interaction, there have
been ongoing delays in debt servicing and the account has turned
NPA.

Incorporated in November 2011, Fountain Imports Private Limited
(FIPL) by Mr Bhawanji Jeram Mewawala. The company has commenced
operations from October 2012. FIPL is engaged in trading of dry
fruits and agricultural products (viz. coco, sugar and others).

FIPL is part of Fountain Group which was established in 1922 by
late Mr Bhawanji Jeram Mewawala after whom Mr Narendra Mewawala
looked after the entire business. The group is engaged into dry
fruit trading business comprising FIPL and other group company,
namely, Fountain Dry Fruit Store Limited.


GOLDENYELLOW PAPER: CRISIL Assigns 'B' Ratings to INR16.28cr Loans
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Goldenyellow Paper LLP (GPL).

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Proposed Term Loan     7.28       CRISIL B/Stable (Assigned)

   Proposed Bank
   Guarantee              1.00       CRISIL B/Stable (Assigned)

   Proposed Cash
   Credit Limit           8.00       CRISIL B/Stable (Assigned)

The ratings reflect exposure to risks related to the ongoing
project, expected leveraged capital structure, and susceptibility
to intense competition and cyclicality in the industrial paper
industry. These weaknesses are partially offset by the favourable
location of the plant and the extensive industry experience of the
partners.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to risks related to the ongoing project: Operations are
expected to commence in October 2019. Implementation and funding
risk is expected to be moderate as some machinery yet to be
delivered and installed. Additionally, though the partners have
brought in sufficient capital, the bank facilities are yet to be
sanctioned. Demand risk is also expected to be moderate as the
industry is highly fragmented due to a low entry barrier and
limited capital and technological requirements. Also, there will be
exposure to intense competition from other players in the segment.
Timely completion and successful stabilisation of operations at the
new unit will remain key rating sensitivity factors.

* Expected leveraged capital structure: The gearing is expected at
2.5-3.0 times, and the interest coverage and net cash accrual to
adjusted debt ratios at 1.71 times and 0.17 time, respectively,
over the medium term.

* Susceptibility to intense competition and cyclicality in the
industrial paper industry: Competition, especially in the kraft
paper segment, is intense. Consequently, players have limited
pricing flexibility. Moreover, end users of packaging paper are
price sensitive. This situation is expected to continue over the
medium-to-long term, as consolidation is unlikely because of
unviable capacities. The industry is also cyclical in nature, with
small players shutting down capacities during downturns and
recommencing operations when the economy revives. This prevents
established players from generating large profits even during
periods of good economic growth. The business risk profile may
remain constrained over the medium term by susceptibility to these
risks.

Strengths
* Favourable location of the plant: The plant is located in Morbi,
Gujarat, a well-developed industrial area with both large and small
industries. This should lead to favourable demand.

* Extensive industry experience of the partners: The partners have
an extensive experience in the industrial paper industry. This has
given them an understanding of the dynamics of the market, and
enabled them to establish relationships with suppliers and
customers.

Liquidity
Bank limit utilisation should remain high due to large working
capital requirement. Cash accrual is expected at INR0.80 crore,
INR1.76 crore, and INR2.12 crore for fiscals 2020, 2021, and 2022,
respectively, which will be sufficient against term debt obligation
of INR1.21 crore per fiscal in fiscals  2021 and 2022. The balance
will act as a cushion to liquidity. The current ratio is expected
to be moderate at 1.0-1.5 times over the medium term.

Outlook: Stable

CRISIL believes GPL will continue to benefit from the extensive
industry experience of its partners. The outlook may be revised to
'Positive' in case of timely stabilisation of operations at the
plant and substantial revenue and profitability.  The outlook may
be revised to 'Negative' if there is considerable delay in
commencement of operations, significantly low cash accrual during
the initial phase, or a substantial increase in working capital
requirement, thus weakening the financial profile, especially
liquidity.

GPL was established in 2018 as a limited liability partnership
(LLP) by Mr Rajesh Manubhai Koringa, Mr Brijesh Ravindrabhai Patel,
Mr Nathalal Andabhai Bhoraniya, and Mr Vallabhbhai Gopalbhai
Naraniya. The firm is currently setting up a plant to manufacture
kraft paper in Morbi. The plant is expected to be commissioned in
October 2019.


HEALTHFORE TECHNOLOGIES: CARE Cuts Rating on INR266.67cr Loan to D
------------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Healthfore Technologies Ltd (HTL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Bank Facilities-    266.67      CARE D; Issuer not cooperating;
   LT-Term Loan                    Revised from CARE C (SO) on the

                                   Basis of best available
                                   information

   Bank Facilities-      7.10      CARE D; Issuer not cooperating;
   ST-WCDL                         Revised from CARE A4 (SO) on
                                   the basis of best available
                                   information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated March 8, 2018, placed the
ratings of HTL under the 'Issuer not cooperating' category as
Healthfore Technologies Ltd had failed to provide information for
monitoring of the rating as agreed to in its rating Agreement. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating of Healthfore Technologies Ltd 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.

Detailed description of the key rating drivers

The ratings of the facilities of HTL are based on the credit
assessment of RHC Holding Private Limited (RHC) & there were
continuous delays by RHC Holding Pvt Ltd in servicing its NCD
obligations and its bank loan obligation as per publically
available information.

Analytical approach: The ratings of the facilities of HTL are based
on the assessment of RHC as the rated facilities are
backed by credit enhancement from RHC Holding Private Limited.

Healthfore Technologies Limited (HTL; erstwhile Religare
Technologies Limited), incorporated in May 2009 is a global
healthcare IT solutions and advisory services company. HFTL offers
various products and services including product 'Infinity' which is
a Hospital Information System and supports patient, clinical,
ancillary and financial management, 'Magnum Imaging system' which
optimizes clinical workflow by combining Picture Archival and
Communication System (PACS), Radiology Information System (RIS) and
teleradiology. HFTL also provides telehealth services spanning
telemedicine, telepathology, teledermatology and teleradiology.

About RHC Holding Pvt Ltd (providing credit enhancement) RHC
(formerly, Solaris Finance Private Limited), incorporated in April
2007, is a Non-Banking Financial Company (NBFC) managed and
controlled by the family members of Mr Malvinder Singh and Mr
Shivinder Singh.


HIRA AUTOMOBILES: CRISIL Lowers Rating on INR25cr Cash Loan to B+
-----------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Hira
Automobiles Limited (HAL) to 'CRISIL B+/Stable Issuer not
cooperating'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit             25        CRISIL B+/Stable (ISSUER NOT
                                     COOPERATING; Revised from
                                     'CRISIL BB-/Stable ISSUER
                                     NOT COOPERATING')

CRISIL has been consistently following up with HAL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of HAL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on HAL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of HAL Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

Incorporated in 1989 and promoted by Ms. Rajinder Kaur Bhattal
(former chief minister of Punjab), HAL has dealership of MSIL
vehicles in Patiala and Muktsar. Since Ms. Bhattal was never
actively involved in the business, operations were managed by her
brother, Mr. Kuldeep Singh Bhattal. While Mr. Bhattal continues to
be on the company's board, HAL is now managed by Ms. Rajinder Kaur
Bhattal's son, Mr. S Rahul Inder Singh Sidhu.


IL&FS: Rating Agencies Knew of Group's Stress, Audit Indicates
--------------------------------------------------------------
Abhirup Roy and Aditya Kalra at Reuters report that credit rating
agencies for years assigned high ratings to India's Infrastructure
Leasing & Financial Services (IL&FS) and its group companies
despite its deteriorating finances, according to a special audit.

According to Reuters, audit firm Grant Thornton was appointed by
IL&FS' new board to conduct the review following the government's
decision to take charge of the group after its defaults on debt
obligations sparked fears of financial contagion.

Reuters says Grant Thornton reviewed the role of five credit rating
agencies - Fitch group's India Ratings and Research, the Indian
affiliate of Moody's, ICRA, Standard & Poor's local unit Crisil,
CARE Ratings and Brickwork Ratings India - which assigned 429
ratings to various IL&FS financial instruments in recent years.

In a 105-page report, reviewed by Reuters on July 20, Grant
Thornton said the agencies raised multiple concerns on IL&FS
group's financial stress and liquidity position between June 2012
and June 2018, but continued to assign "consistently high" ratings
which were only downgraded or reversed last year.

"Various strategies deployed by the then key officials of IL&FS
group and certain favours/gifts provided to rating agency officials
suggest the possible reasons for consistent good ratings provided
to IL&FS group," said Grant Thornton in its report that detailed
gifts or favours such as smartwatches and tickets to overseas
sporting events, Reuters relays.

IL&FS declined to comment, Reuters notes. India Ratings said the
Grant Thornton report is based on "partial and selective source
material", adding "our ratings were based on robust and transparent
analysis of relevant information," Reuters reports.

Reuters relates that Brickwork said it did not assign the highest
ratings to IL&FS "because it follows robust, transparent and
consistent rating methodology" and its actions were not influenced
by any commercial pressures or rating withdrawal requests.

ICRA said it will determine an appropriate course of action and was
examining the report, which it said ignores the "alleged fraud
perpetrated by former IL&FS management," reports Reuters.

Crisil and CARE did not immediately respond to a request for
comment, Reuters adds.

According to Reuters, the IL&FS crisis that started last year has
sparked a series of federal probes into the firm's operations, but
Grant Thornton's report raises questions on whether rating agencies
misled investors about the stress levels at other companies in
India's shadow banking sector, where new fractures are emerging.

                            About IL&FS

Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.

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


INDIAMCO: CARE Moves D Rating on INR14.5cr Loans to Non-Cooperating
-------------------------------------------------------------------
CARE had, vide its press release dated June 18, 2018, placed the
rating of Indiamco under the 'issuer non-cooperating' category as
Indiamco had failed to provide information for monitoring of the
rating. Indiamco continues to be noncooperative despite repeated
requests for submission of information through e-mails, phone calls
and a letter dated July 10, 2019. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating of INDIAMCO's
bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Short-term Bank      14.50      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   information

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

At the time of last rating on June 18, 2018 the following were the
rating weaknesses:

Key Rating Weaknesses

Delay in debt servicing
As per the interaction with the banker, the account has turned NPA
since April 2017.
  
Established in 1972, Indiamco is engaged in trading of rough and
polished diamonds, antique and precious stones. The entity is
currently not a DTC sight holder and procures rough and
semi-finished diamonds locally from Surat and also imported (from
USA) of its requirements.


INFINITI TELEVESION: Insolvency Resolution Process Case Summary
---------------------------------------------------------------
Debtor: Infiniti Televeion & Telecom Pvt. Ltd.
        K-1/68, First Floor
        Chittranjan Park
        Kalkaji New Delhi
        South Delhi DL 110019

Insolvency Commencement Date: July 12, 2019

Court: National Company Law Tribunal, New Delhi Bench

Estimated date of closure of
insolvency resolution process: January 11, 2020
                               (180 days from commencement)

Insolvency professional: Renu Joshi

Interim Resolution
Professional:            Renu Joshi
                         F-207, Aditya Trade Tower
                         Plot No. 4, Local Shopping Complex
                         Pocket O&P, Dilshad Garden
                         Delhi 110095
                         E-mail: ip.ca.rjoshi2017@gmail.com

Last date for
submission of claims:    July 29, 2019


J.B. GOLD: CARE Lowers Rating on INR9cr LT Loan to D
----------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
J.B. Gold Private Limited (JBG), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank       9.00       CARE D; Issuer not cooperating;
   Facilities                      Revised from CARE B; Issuer not
                                   cooperating on the basis of
                                   best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from JBG to monitor the ratings
vide e-mail communications/letters dated June 27, 2019. However,
despite CARE's repeated requests, the company has not provided the
requisite information for monitoring the ratings. In line with the
extant SEBI guidelines, CARE has reviewed the rating on the basis
of the best available information which however, in CARE's opinion
is not sufficient to arrive at a fair rating. The rating on JBG'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 ratings.

The rating has been revised on account of ongoing delays in
servicing the interest obligations.

Detailed description of the key rating drivers

Key Rating Weakness

Ongoing delays in servicing debt obligation: There are ongoing
delays in servicing of interest obligations on account of stretched
liquidity position.

Delhi-based JB Gold Private Limited (JBG) was incorporated in 2011
as a private limited company by Mr. Rajnish Gupta and his wife, Ms
Nisha Gupta. JBG is engaged in the wholesale trading of gold
jewellery, diamond jewellery and loose cut & polished diamonds and
has its office located in Karol Bagh, Delhi. The company procures
jewellery and cut & polished diamond from wholesalers and jewellery
manufacturers and in turn sells them to retail jewellers in Delhi.
The company has also started in-house manufacturing of gold &
diamond jewellery in FY14 (refers to the period April 1 to March
31) and sells under its own brand name 'Kiyan'. JBG sells hallmark
certified gold and diamond jewellery. Roshni Jewellers Private
Limited (rated CARE D; INC) is a group associate of JBG and is
engaged in the same line of business.


JMK MOTOWHEELS: CRISIL Maintains B+ Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of JMK Motowheels
Private Limited (JMKMPL) continues to be 'CRISIL B+/Stable Issuer
not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit             1          CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING)

   Channel Financing       7          CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING)

   Proposed Long Term      1.65       CRISIL B+/Stable (ISSUER
   Bank Loan Facility                 NOT COOPERATING)

CRISIL has been consistently following up with JMKMPL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JMKMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JMKMPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of JMKMPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.

Incorporated in 2012 and promoted by Mr. Rakesh Singh Baghel and
his wife, Ms Pratiba Singh, JMKMPL is an authorised dealer and
service centre for Toyota's passenger vehicles in Jhansi.


KUTTANAD RUBBER: CRISIL Maintains D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of The Kuttanad Rubber
Co Ltd (TKRCL) continues to be 'CRISIL D Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit/            2          CRISIL D (ISSUER NOT
   Overdraft                          COOPERATING)
   facility                

   Long Term Loan          5.4        CRISIL D (ISSUER NOT
                                      COOPERATING)

CRISIL has been consistently following up with TKRCL for obtaining
information through letters and emails dated January 23, 2019 and
June 24, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of TKRCL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TKRCL is
consistent with 'Scenario 0' outlined in the 'Framework for
Assessing Consistency of Information with Appropriate rating action
to be undertaken'.

Based on the last available information, the ratings on bank
facilities of TKRCL continues to be 'CRISIL D Issuer not
cooperating'.

KRCL is a closely held public limited company and operates a rubber
plantation of around 440 acres in Kanjirapally (Kerala). The
company extracts raw rubber latex from its plantation and sells it
to local centrifuged latex (cenex; used in making medical and
surgical items) manufactures. The daily operations of the company
are managed by the executive director, Mr. Joseph Thomas.


LIBERTY OIL: Ind-Ra Lowers Issuer Rating to BB+, Outlook Negative
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Liberty Oil
Mills Limited's (LOML) Long-Term Issuer Rating to 'IND BB+' from
'IND BBB'. The Outlook is Negative.

The instrument-wise rating actions are:

-- INR7.120 bil. (reduced from INR7.8 bil.) Non-fund-based
     working capital facility downgraded with IND A4+ rating; and

-- INR1.30 bil. (reduced from INR1.5 bil.) Fund-based working
     capital facility downgraded with IND BB+/Negative/IND A4+
     rating.

The downgrade and Negative Outlook reflects the continuing, marked
deterioration in LOML's liquidity position since 2HFY19 as
availability of bank funding has been curtailed after the winding
up of buyer's credit as a result of the Reserve Bank of India's
(RBI) regulations. Moreover, the increase in the customs duty
structure on crude palm oil and palm olein oil to 44% and 49.50%
since January 2019 from 15.45% and 25.75%, respectively, in August
2017 also led to higher working capital requirements. The resultant
increase in interest expenses caused LOML's interest coverage to
deteriorate to 1.6x in FY19 (FY18: 2.3x), which is not commensurate
with an investment-grade rating.

KEY RATING DRIVERS

Poor Liquidity: LOML's liquidity position has remained weak since
the buyer's credit was disallowed as per RBI regulations, leading
to cash flow mismatch in the company's operations. However, as per
the management, LOML was able to rectify the same through accruals
from operating profits and reduction in the inventory holding,
leading to average working capital utilization of less than 85%
from February 2019 to May 2019. The management expects to normalize
the working capital utilization levels in the short term. The
availability of alternative avenues for liquidity is limited, given
LOML's elevated working capital utilization and the fact that a
large part of LOML's cash and cash equivalents, which stood at
INR1,311 million as of March 2019 (FY18: INR1,549.4 million; FY17:
INR1,766.4 million), is encumbered as margin money with banks for
LC utilization.

The company does not have any term debt, and consequently, no major
repayments are due in the short term. Also, the agency expects LOML
to incur a CAPEX of INR400 million in FY20 for the construction of
storage tanks at the Jawaharlal Nehru Port Trust, which will be
funded through term debt and equity infusion from promoters. The
management believes that the promoter's plan to infuse funds in
LOML by monetizing personal land assets will help support growth in
the medium term and ease the liquidity situation.

Deterioration in Credit Metrics: LOML's interest expenses more than
doubled to INR292 million in FY19 (FY18: INR125 million) due to
overutilization of fund-based working capital facilities. Although
the impact of the same was partly offset by an increase in
operating margins, the EBITDA interest coverage deteriorated to
1.6x in FY19 (FY18: 2.3x). Ind-Ra expects the interest coverage
ratio to remain between 1.75x and 2.0x in FY20, though this would
depend on the company's ability to bring fund-based utilization
back to FY18 levels. LOML sustained its leverage at 2.7x (FY18:
3.1x; FY17: 4.3x) in FY19. The leverage position is impacted by the
utilization of the cash credit facility for paying import duty as
and when the consignment arrives, and it varies from month to
month. The company maintains high cash and cash equivalents, which
is kept as margin money with the banks to utilize non-fund based
facilities, and hence, is treated as restricted cash. The figures
for FY19 are provisional in nature.

Changing Industry Dynamics: With the hike in the import duty on
refined oil and crude oil to 49.5% and 44% (including 10% social
welfare cess on the import duty), respectively, from January 2019,
the effective duty differential between the two fuels has narrowed
to 5.5% (versus 11% in June 2018). This has been detrimental to the
domestic palm oil refining industry and domestic manufacturers of
edible oils, as it has led to a jump in refined bleached deodorized
imports as against crude palm oil imports. LOML's capacity
utilization levels reduced marginally in FY19; while manufactured
oils still represented a majority of the core edible revenues, its
share reduced to 69% (FY18: 75%).

Product Concentration, Substitution Risk and Regulatory Risk: Palm
oil constitutes around 43% of LOML's edible oil turnover (FY18:
53%). There exists strong interchangeability of palm with other
edible oils, especially soya bean oil, and any fluctuations in the
price of the latter could impact the demand for the former. This
exposes the company to substitution risk, with the company having
the high installed capacity for palm oil processing. The ratings
are further constrained by regulatory risks such as the export duty
structure in major exporting countries as well as India's import
duty structure.

Thin Operating Margins; Limited Forex Risk: LOML's EBITDA margins
improved to 2.7% in FY19 (FY18: 1.7%; FY17: 2.19%), driven by low
raw material prices and an improving product mix. Historically,
LOML's EBITDA margins have ranged between 1.8% and 2.2%. The
margins might continue to hover within this range in the medium
term because of high competition and volatile raw material prices,
especially since crude palm oil can be alternatively used as
bio-fuel and its price movements are influenced by international
crude oil prices. Moreover, the company imports almost 95% of its
raw material requirements; however, it mitigates the forex risk by
hedging its entire forex exposure.

Improving Diversification of Product Mix: The share of lower-margin
palm oil and its derivatives in LOML's revenue (FY19: up 5.6% YoY
to INR17.5 billion) reduced to 43% in FY19 from 53% in FY18, while
the contribution of categories such as sunflower oil (relatively
higher margin) increased to 32% from 26% over the same period. The
company has also ventured into spices and flour through a mix of
outsourced model and in-house manufacturing. LOML plans to scale up
its geographic presence and diversify its product portfolio in the
medium term. The focus would be on achieving higher sales of
high-margin products such as sunflower oil and soya bean oil, as
well as increasing the proportion of branded edible oils in the
company's portfolio. Ind-Ra believes the initiatives taken by the
company would help mitigate the impact of increasing competition
and enable the company to report stable margins in the medium
term.

RATING SENSITIVITIES

Negative: Continued cash flow mismatches and/or weakening of the
operating performance, leading to further liquidity stress and
deterioration in the EBITDA interest coverage, would be negative
for the ratings.

Outlook Revision to Stable: A sustained improvement in liquidity
position along with an improvement in the operating performance,
leading to EBITDA interest coverage rising to over 2.0x, on a
sustained basis, would lead to the Outlook being revised back to
Stable.

COMPANY PROFILE

LOML is a part of the Liberty group of companies. The company is
engaged in the refining and trading of edible oils. It also
manufactures clarified butter, interesterified vegetable oils and
fats, and bakery products. The company has a total annual capacity
of over 650,000 metric tons, with six processing facilities in
Shahapur, Thane.

The company has an established presence in western India and
management with an experience of over two decades in the edible oil
business.


LIGARE AVIATION: CARE Lowers Rating on INR235cr Term Loan to D
--------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Ligare Aviation Ltd, as:

                       Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Bank Facilities-    235.00      CARE D; Issuer not cooperating;
   Fund Based-LT                   Revised from CARE C (SO) on the

   Term Loan                       Basis of best available
                                   information

   Bank Facilities-      5.00      CARE D; Issuer not cooperating;

   Non-Fund Based-                 Based of best available
   ST-WCDL                         information

Detailed Rationale & Key Rating Drivers

CARE had, vide its press release dated March 8, 2018, placed the
ratings of Ligare Aviation Ltd under the 'Issuer not cooperating'
category as Ligare Aviation Ltd had failed to provide information
for monitoring of the rating as agreed to in its rating Agreement.
In line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the best available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating of Ligare Aviation Ltd 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.

Detailed description of the key rating drivers

The ratings of the facilities of Ligare Aviation Limited are based
on the credit assessment of RHC Holding Private Limited (RHC) &
there were continuous delays by RHC Holding Pvt Ltd in servicing
its NCD obligations and its bank loan obligation as per publically
available information.

Analytical approach: The long-term ratings of Ligare Aviation
Limited (LAL) are based on the credit enhancement from RHC Holding
Private Limited (RHC) and Malav Holdings Pvt Ltd & Shivi Holdings
Pvt Ltd, the holding companies of RHC while the short term rating
are based on standalone approach.
  
Ligare Aviation Ltd (LAL) incorporated in September, 1996, is
engaged in non-scheduled air charter business with fleet of 11
aircrafts (out of which four are owned and balance seven are
leased) including jets, turbo props and helicopters with a flying
range within the Asian continent and the Middle East. About RHC
Holding Pvt Ltd (providing credit enhancement) RHC (formerly,
Solaris Finance Private Limited), incorporated in April 2007, is a
Non-Banking Financial Company (NBFC) managed and controlled by the
family members of Mr Malvinder Singh and Mr Shivinder Singh.


MAGADH INDUSTRIES: Ind-Ra Withdraws 'BB' Long Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Magadh Industries
Private Limited's Long-Term Issuer Rating of 'IND BB (ISSUER NOT
COOPERATING)'.

The instrument-wise rating actions are:

-- The 'IND BB' rating on the INR200 mil. Term loan due on March
     2021 is withdrawn;

-- The 'IND BB' rating on the INR1.11 bil. Fund-based working
     the capital limit is withdrawn; and

-- The 'IND BB' rating on the INR410 mil. Proposed fund-based
     the working capital limit is withdrawn.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the ratings, as the agency
has received a no-objection certificate from the rated facilities'
lenders. This is consistent with the Securities and Exchange Board
of India's circular dated March 31, 2017, for credit rating
agencies.

COMPANY PROFILE

Magadh Industries is a Patna-based rolling mill manufacturing
company.


MCLEOD RUSSEL: Auditor Casts Going Concern Doubt
------------------------------------------------
Business Standard reports that McLeod Russel has rejigged its board
and top management as it faces a financial crisis that could force
the company into insolvency proceedings. The Williamson Magor Group
(WMG) company has roped in two new independent directors and
appointed a new chief financial officer, besides other changes, the
report says.

Rajeev Takru, a wholetime director who is due to retire by
rotation, has said he doesn't want to be re-elected to the board
but wished to continue his engagement with the company in an
advisory role, Business Standard relates.

According to Business Standard, te rejig follows after Techno
Electric & Engineering Co, a financial creditor, dragged WMG to the
Kolkata bench of NCLT to recover dues of around INR100 crore and
Deloitte Haskins & Sells LLP resigned as the company's auditor
after giving an adverse opinion on McLeod's financial position.

Besides Takru, two independent directors resigned on account of old
age and its former chief financial officer (CFO), Kamal Kishore
Baheti moved over to another WMG entity after tendering his
resignation at McLeod, the report notes.

Pradip Bhar, a cost accountant by profession, who was associated
with WMG for over 31 years, has taken charge as the firm's new CFO,
Business Standard says.

Business Standard adds that Raj Vardhan, experienced in the agri
sector, has joined the McLeod board as an independent director. He
has over six years of experience at a US based non-profit
organisation at its executive board; as well as four years of
experience in the board of Souzmoloko, a dairy farming and
manufacturing association in Russia. He was also involved with Olam
International, a Singapore-based multinational company.

"Raising of capital is the utmost priority for McLeod and there is
possibility of growth in the value-added tea segment. Also, there
is scope to scale up the company's operations", Vardhan told
Business Standard.

"Before a meeting of the board takes place, it is not possible for
me to state how McLeod's financial position can be improved, but
definitely, there is potential in the company to come out from any
crisis and improve its financial position", he said in reply to a
query on how the board plans to combat the present crisis.

Suman Bhowmik, a consultant by profession and a specialist in
communications and development, has been roped in as another
independent director, Business Standard discloses. He has been a
CSR consultant to the likes of JSW Bengal Steel, Ambuja Cements and
Apeejay Group and has worked with industry bodies like Cll and
FICCI, besides other assignments.

Business Standard, citing Deloitte, discloses that McLeod's current
liabilities exceeded current assets by INR1,436 crore as on
end-March 2019. In 2018-19, the company was unable to discharge its
obligations on repayment of loans and settlement of other financial
and non-financial liabilities, including statutory ones, Deloitte
added.

While giving an adverse opinion primarily on the issue of
recovering inter-company deposits (ICDs), the auditor stated the
tea producer is currently in discussion with the lenders on a
refinancing proposal, according to Business Standard.

Indications exist, it said, of "a material uncertainty which cast a
significant doubt on the company's ability to continue as a going
concern". It also added, "The ability to continue as a going
concern is solely dependent on acceptance of the refinancing
proposal, which is not wholly within the control of the company,"
Business Standard relays.

Explaining the basis of its adverse opinion, the auditor said as of
end-March, ICDs of INR1,745 crore were given to promoter group
entities and other companies; INR77 crore had accrued as interest,
adds Business Standard.

Recovery of these ICDs and the interest income is doubtful,
considering the financial condition of WMG and the other companies
to which these were given.

Moreover, McLeod made no formal provision for the outstanding
amounts recorded as ICDs and accrued interest. "Consequently, the
non-current portion of loans and interest accrued thereon are
overstated and loss for the year is understated by INR1,821.7
crore," Deloitte, as cited by Business Standard, said.

For the year ended March 31, 2019, McLeod reported a nearly 20 per
cent decline in total income at INR1,960 crore and an 82 per cent
fall in net profit to INR38.8 crore, Business Standard says. It has
been selling its estates to pare debt and is estimated to have
received INR940 crore from the sale proceeds.

On June 29, Price Waterhouse & Co quit as the auditor of another
WMG company, Eveready Industries. It had cited its inability to get
sufficient audit evidence on Eveready Industries' ICDs and its
recovery, Business Standard reports.

Also, on May 31, Deloitte Haskins & Sells and V Singhi &
Associates, auditors of McNally Bharat Engineering, another WMG
entity, raised concern over this firm's ability to remain in
business unless a financial restructuring proposal with lenders was
approved, Business Standard adds.

                        About McLeod Russel

McLeod Russel India Limited, together with its subsidiaries,
cultivates, processes, manufactures, and sells bulk teas in India.
It offers CTC and orthodox black teas, as well as green teas. The
company operates tea estates covering approximately 39,770 hectares
in India, Vietnam, Uganda, and Rwanda. It also trades in black tea.
In addition, the company exports its products to Europe, the Middle
East, North America, and internationally.

As reported in the Troubled Company Reporter-Asia Pacific on July
19, 2019, ICRA downgraded the ratings on the INR1031.09-crore
fund-based and non-fund based bank facilities of McLeod Russel
India Limited (MRIL) to [ICRA]D from [ICRA]B-(Negative)/[ICRA]A4.
The ratings continue to remain in the Issuer Not Cooperating
category owing to non-submission of no default declaration.


MECHANO ENGINEERING: Ind-Ra Assigns 'BB-' LT Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned M/s Mechano
Engineering Company a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR45 mil. Term loan due on November 2024 assigned with IND
     BB-/Stable rating;

-- INR60 mil. Fund-based Facilities assigned with IND BB-
     /Stable/IND A4+ rating; and

-- INR30 mil. Non-fund-based facilities assigned with IND A4+
     rating.

KEY RATING DRIVERS

The ratings reflect Mechano's small scale of operations, as
indicated by revenue of INR256 million in FY19 (FY18: INR193
million). The revenue increased due to the receipt of new orders.
As of May 2019, the company had an outstanding order book of INR107
million, to be executed till September 2019. The figures for FY19
are provisional.

The rating factor in Mechano's moderate credit metrics. The metrics
improved on a YoY basis in FY19 owing to an increase in the
absolute EBITDA to INR51 million (FY18: INR19 million) as the
company managed to successfully re-negotiate raw material prices,
which had been high in FY17 and FY18. The interest coverage
(operating EBITDA/gross interest expense) was 8.8x in FY19 (FY18:
2.6x) and the net leverage (total adjusted net debt/operating
EBITDA) was 1.2x (2.8x).
         
The ratings also reflect Mechano's modest liquidity position, as
indicated by 83% average utilization of its fund-based limits
during the 12 months ended March 2019. The cash flow from
operations remained negative at INR12 million in FY19 (FY18: INR 12
million), as the working capital cycle elongated to 112 days (FY18:
39 days) due to an increase in receivable days (FY19: 110 days;
FY18: 78 days).

The ratings, however, are supported by Mechano's healthy EBITDA
margins. The margin increased sharply to 19.8% in FY19 (FY18: 9.9%)
due to the decrease in raw material expenses. The company's return
on capital employed was 30% in FY19 (FY18: 13%).

The ratings are further supported by the partners' experience of
more three decades in the fabrication business.

RATING SENSITIVITIES

Negative: A significant decline in the revenue or EBITDA margin,
leading to deterioration in the credit metrics, on a sustained
basis, will be negative for the ratings.

Positive: Improvement in the revenue and EBITDA margin, leading to
an improvement in the credit metrics, on a sustained basis,
positive for the ratings.

COMPANY PROFILE

Mechano Engineering Company was established in 1983. The
partnership firm is headed by Mr.R.Shridhar. The firm manufactures
large, high precision components. The unit is situated in Peenya
Industrial Area, Bangalore.


MEGHAAARIKA INT'L: Ind-Ra Alters Ratings Outlook to Negative
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has revised Meghaaarika
International Private Limited's (MIPL) Outlook to Negative from
Stable while affirming its Long-Term Issuer Rating at 'IND BB-'.

The instrument-wise rating actions are:

-- INR100 mil. Fund-based working capital limits affirmed;
     Outlook revised to Negative from Stable with IND BB-/Negative

     /IND A4+ rating; and

-- INR430 mil. Non-fund-based working capital limits affirmed;
     Outlook revised to Negative from Stable with IND BB-
     /Negative/IND A4+ rating.

KEY RATING DRIVERS

The Outlook revision reflects Ind-Ra's expectations that MIPL's
credit metrics, which deteriorated in FY19, would remain weak in
FY20.

The gross interest coverage (operating EBITDA/gross interest
expense) declined to 1.3x in FY19 (FY18: 2.50x) and the net
leverage (total adjusted net debt/operating EBITDAR) increased to
11.91x (10.02x). The figures for FY19 are provisional. The credit
metrics deteriorated because the operating profits fell to INR16.63
million (FY18: INR47.28 million) due to the decline in revenue.
MIPL's revenue declined sharply to INR1,542.98 million in FY19
(FY18: INR2,370.73 million) due to the company's decision to reduce
trading volumes owing to the uncertainty in crude prices and
fluctuations in forex.

The ratings reflect the company's modest EBITDA margins owing to
the trading nature of the business, price volatility in the goods
traded and an unhedged foreign exchange exposure. The EBITDA
margins declined to 1.08% in FY19 (FY18: 1.99%) because MIPL could
not pass on the overall increase in the prices of goods traded
(crude oil derivatives) to its customers due to the intense
competition in the industry. The RoCE was around 3% in FY19 (FY18:
7%).

The ratings continue to be adversely affected by high customer
concentration risk, considering the top five customers accounted
for almost 92% sales in FY19 (FY18: 100%). However, MIPL has an
informal tie-up for at least 30% of its output with group
companies. In FY19, sales to group companies accounted for around
45% of MIPL's overall sales (FY18: 52%).

The rating factor in the company's average liquidity position. The
average peak utilization of the fund-based and non-fund-based
working capital limits was high at 97% and 75%, respectively,
during the 12 months ended June 2019. However, MIPL's cash flow
from operations increased sharply to around INR273 million in FY19
(FY18: negative INR26 million) owing to a fall in working capital
requirements. Also, the company does not have any long-term debt
liabilities. Furthermore, the networking capital cycle improved to
78 days in FY19 (FY18: 102 days) due to an increase in creditor
days to 62 days (5 days).

The ratings continue to be supported by the promoters' operating
experience of three decades in the chemicals industry.

RATING SENSITIVITIES

Negative: Any deterioration in the profitability and/or the
networking capital cycle, leading to any deterioration in the
interest coverage, on a sustained basis, could result in a negative
rating action.

Positive: Customer diversification, along with an increase in the
scale of operations and profitability and/or an improvement in the
networking capital cycle, leading to an improvement in the interest
coverage, on a sustained basis, will be positive for the ratings.

COMPANY PROFILE

Incorporated in 2007, MIPL is engaged in the trading of chemicals
and plasticizers.


MOSER BAER: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE had, vide its press release dated February 28, 2018, placed
the ratings of Moser Baer India Limited under the 'Issuer not
cooperating' category as Moser Baer India 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 has
reviewed the rating on the basis of the best available information
which however, in CARE's opinion is not sufficient to arrive at a
fair rating. The rating of Moser Baer India Limited bank facilities
will now be denoted as CARE D; ISSUER NOT COOPERATING.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term Bank     1078.22      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
   (Term Loan)                     information

   Long Term Bank      730.00      CARE D; Issuer not cooperating;

   Facilities                      Based on best available
   (Fund-based)                    information

   Short Term Bank     355.00      CARE D; Issuer not cooperating;
   Facilities                      Based on best available
   (Non-fund based)                information

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

There is continuous default by Moser Baer India Limited in
servicing debt obligation as per publically available information.

MBIL, promoted in 1983 by Mr. Deepak Puri, began manufacturing time
recorder units in technical collaboration with Maruzen Corporation,
Japan, and Moser Baer Sumiswald, Switzerland. MBIL diversified into
optical data storage in 1988, and has evolved as the leading
manufacturer of removable data storage media such as floppy disks,
Compact Discs (CDs), Digital Versatile Discs (DVDs), High
Definition Digital Versatile Discs (HD-DVD), Blu–Ray Disc etc.
MBIL has its manufacturing facilities located at Noida (2 units)
and Greater Noida (1 unit). In 2005, the company entered into photo
voltaic (PV) business through its wholly owned subsidiaries –
Helios Photo Voltaic Ltd (HPVL) and Moser Baer Solar Limited (MBSL;
formerly, PV Technologies India Ltd). As a forward integration
move, the company has entered content distribution (home
entertainment) of selling content (movies) on CDs/DVDs manufactured
at its optical storage facilities. In 2012, the company had
converted the part of CD/DVD lines into the state-of the-art Blu
Ray lines.


OJASVI AGRITECH: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Ojasvi Agritech Private Limited
        B-2/535, G-2, Bhanu Apartment
        Opp. North Gate of Chitrakoot Stadium
        Vaishali Nagar Jaipur RJ 302021

Insolvency Commencement Date: July 19, 2019

Court: National Company Law Tribunal, Jaipur Bench

Estimated date of closure of
insolvency resolution process: January 15, 2020

Insolvency professional: Pratibha Khandelwal

Interim Resolution
Professional:            Pratibha Khandelwal
                         T5/1001, Rangoli Greens
                         Maharana Pratap Marg
                         Panchyawala, Vaishali Nagar
                         Jaipur 302021 Rajasthan
                         E-mail: cspratibhak@gmail.com
                                 rpojasvi@gmail.com

Last date for
submission of claims:    August 2, 2019


PANAMA SYSTEMS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Panama Systems Private Limited
        Off. 401, C.T.S. 40/1
        B/1 Final, Plot 40
        Welesely Rd., Near Sangam Bridge
        Pune 411001

Insolvency Commencement Date: July 10, 2019

Court: National Company Law Tribunal, Pune Bench

Estimated date of closure of
insolvency resolution process: January 13, 2020
                               (180 days from commencement)

Insolvency professional: Neelima Anil Bhate

Interim Resolution
Professional:            Neelima Anil Bhate
                         401 Citicentre
                         Opp. Ayurved Rasashala
                         Karve Road, Pune 411004
                         E-mail: neelima_bhate@yahoo.com
                                 nbirp03@gmail.com
                         Mobile: 9822076964

Last date for
submission of claims:    July 31, 2019


PIONEER TORSTEEL: Ind-Ra Affirms 'D' Long Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Pioneer Torsteel
Mills Private Limited's (PTMPL) Long-Term Issuer Rating at 'IND
D(ISSUER NOT COOPERATING)'. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions are:

-- INR100 mil. Fund-based working capital limits (long-term)
     affirmed with IND D (ISSUER NOT COOPERATING) rating;

-- INR185 mil. Term loan limits (long-term) affirmed with IND D
     (ISSUER NOT COOPERATING) rating; and

-- INR40 mil. Non-fund-based limits (short-term) affirmed with
     IND D (ISSUER NOT COOPERATING) rating.

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

KEY RATING DRIVERS

The affirmation reflects delays in debt servicing by PTMPL and the
details of the same are unavailable.

RATING SENSITIVITIES

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

COMPANY PROFILE

Established in 1999, PTMPL manufactures sponge iron and steel
products at its plant, which has installed capacity of 200 tons per
day. Benita Industries Limited holds a 97% stake in Pioneer
Torsteel Mills.


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

The instrument-wise rating actions are:

-- INR18 mil. Fund-based working capital limits migrated to non-
     cooperating category with IND BB- (ISSUER NOT COOPERATING)
     rating; and

-- INR6.81 mil. Term loan due on March 2019 migrated to non-
     cooperating category with IND BB- (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 19, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Founded by Dr. Giridhara Kaje, PAC is a proprietorship concern that
trades in Ayurvedic medicines and provides Ayurvedic treatment in
Bengaluru, Karnataka.


QUALITY FLAVOURS: CRISIL Assigns B+ Rating on INR10cr Loans
-----------------------------------------------------------
Due to inadequate information, CRISIL, in line with the Securities
and Exchange Board of India guidelines, had migrated its rating on
the long-term bank facilities of Quality Flavours Exports (QFE) to
'CRISIL B/Stable Issuer Not Cooperating'. However, the firm has
subsequently started sharing requisite information necessary for
carrying out a comprehensive review of the rating. Consequently,
CRISIL is migrating its rating to 'CRISIL B+/Stable' from 'CRISIL
B/Stable Issuer Not Cooperating'.

                       Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit             7        CRISIL B+/Stable (Migrated
                                    from 'CRISIL B/Stable ISSUER
                                    NOT COOPERATING')

   Foreign Bill Purchase   3        CRISIL B+/Stable (Migrated
                                    from 'CRISIL B/Stable ISSUER
                                    NOT COOPERATING')

The rating continues to reflect QFE's highly volatile operating
margin because of exposure to fluctuations in foreign exchange
(forex) rates (as menthe oil is traded on commodity exchanges), and
susceptibility to intense competition. These weaknesses are
partially offset by promoters' extensive experience and comfortable
financial risk profile.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest scale of operations: With turnover of INR13-25 crore over
the five fiscals through 2019, scale remains small. Also, revenue
is expected to remain volatile because of change in demand in the
domestic and international markets. Moreover, the menthol industry
in India is highly fragmented due to low entry barrier and easy
availability of raw material. Being a small player, QFE has low
pricing power against suppliers and customers, which is reflected
in volatile scale and profitability.

* Susceptibility of operating margin to fluctuations in raw
material and forex rates: Prices of mentha oil (key raw material)
are highly volatile, despite robust production. This is because the
mentha industry is small, and the commodity is traded on the
commodity exchanges, thus leaving it open to speculation and
consequently, high volatility. Intense competition and high pricing
power of consolidated customers further limit players' ability to
pass on price fluctuations to them. Furthermore, the firm maintains
a large inventory which, along with volatility in forex rates,
exposes operating margin to price fluctuations: margin has remained
in the 3-7% range in the five fiscals through 2019.

* Working capital-intensive operations: Gross current assets have
been in the 223-438 days' range over the four fiscals through 2019
because of large inventory. This is because production time for
menthol is long (20-40 days). Also, mentha oil is an agricultural
product that is mainly available during June-September. The firm
procures half of total menthe requirement during this period,
leading to greater dependence on bank limit. Also, QFE has to
extend credit of 30-60 days to customers, against which it gets no
credit from suppliers (farmers and dealers).

Strengths:
* Partners' extensive experience: Presence of over three decades in
the menthol industry has enabled the promoters to increase product
portfolio (menthol crystals, peppermint oil, distilled menthe oil,
menthol flacks, menthol rice, and menthol powder) and manufacturing
capacity to around 900 tonne per annum. Promoters have also
developed sound understanding of market dynamics and established
relationship with customers and suppliers.

* Comfortable financial risk profile: Gearing was healthy at around
1 time and return on capital employed strong at around 12 times, as
on March 31, 2019. Debt protection metrics were robust, with
interest coverage and net cash accrual to adjusted debt ratios of
2.09 times and 9%, respectively, in fiscal 2019. However, networth
was small at INR6.2 crore as on March 31, 2019.

Liquidity
Liquidity is adequate. Cash accrual of INR0.5-0.6 crore will be
sufficient to meet debt obligation of INR0.06-0.3 crore in fiscals
2020-21. Cash credit limit of INR4.5 crore from Canara Bank was
utilised at 95% during the 12 months ended March 2019. Limit is
likely to be enhanced by INR1 crore (request pending with the
bank). Unsecured loan of around INR5.25 crore from promoters (as on
March 31, 2019) also supports liquidity. The loan is expected to
remain in business over the medium term.

Outlook: Stable

CRISIL believes QFE will continue to benefit from its promoters'
extensive experience and funding support. The outlook may be
revised to 'Positive' if a significant and sustained improvement in
scale and profitability leads to better-than-expected cash accrual,
while efficiently managing working capital requirement. The outlook
may be revised to 'Negative' if liquidity weakens due to
lower-than-expected cash accrual, significant increase in working
capital requirement, or unanticipated capital withdrawal or funding
support by promoters.

Established in 1999 in Moradabad (Uttar Pradesh) as a partnership
firm by Mr Rishik Gupta and family, QFE manufactures mint
products.


QUANTUM COAL: Insolvency Resolution Process Case Summary
--------------------------------------------------------
Debtor: Quantum Coal Energy Privae Limited
        D No.5-4-44 Kalai Nagar 3rd Main Road
        Madurai 625017

Insolvency Commencement Date: July 15, 2019

Court: National Company Law Tribunal, Chennai Bench

Estimated date of closure of
insolvency resolution process: January 11, 2020

Insolvency professional: Gopalsamy Ganesh Babu

Interim Resolution
Professional:            Gopalsamy Ganesh Babu
                         986, H Block
                         24th Street, Anna Nagar West
                         Chennai 600040
                         E-mail: babu@onstepsolution.net

                            - and -

                         41/16A, Nelson Manickam Road
                         Choolaimedu, Chennai 600094
                         Mobile: 8248346152
                         E-mail: babu@finrespro.com

Last date for
submission of claims:    August 3, 2019


R. K. BLUE: CRISIL Lowers Rating on INR12.5cr Loan to B+
--------------------------------------------------------
CRISIL has revised the ratings on bank facilities of R. K. Blue
Metals (RKBM; part of the RKM group) to 'CRISIL B+/Stable Issuer
not cooperating'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Overdraft              12.5       CRISIL B+/Stable (ISSUER NOT
                                     COOPERATING; Revised from
                                     'CRISIL BB/Stable ISSUER NOT
                                     COOPERATING')

CRISIL has been consistently following up with RKBM for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RKBM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RKBM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of RKBM Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

RKBM is a partnership firm, establish in 2009 by Mr. Ravi Kumar and
(his wife) Radha. RKBM operates on two quarries located Hosur
(Tamil Nadu); with a total capacity of about 400 tph

RKMSA is a proprietorship firm, establish in 1996 by Mr. Ravi Kumar
is involved in manufacturing and distribution of sand and aggregate
products used in the construction sector; it mainly caters to
demand coming from areas surrounding. It operates two  plant
located one at  Bengaluru (Karnataka) and other at Hosur (Tamil
Nadu) with a total capacity of about 400 tph.


RAJHANS COLD: CRISIL Moves INR4.7cr Loans Rating to B+/Cooperating
------------------------------------------------------------------
Due to inadequate information, CRISIL had migrated its rating on
the long-term bank facilities of Rajhans Cold Storage Private
Limited (RCSPL) to 'CRISIL B+/Stable Issuer Not Cooperating'.
However, as HCSS subsequently started sharing information necessary
for a comprehensive rating review. CRISIL is, therefore, migrating
the rating to 'CRISIL B+/Stable' from 'CRISIL B+/Stable Issuer Not
Cooperating'.

                       Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit            4.5       CRISIL B+/Stable (Migrated
                                    from 'CRISIL B+/Stable ISSUER
                                    NOT COOPERATING')

   Working Capital         .22      CRISIL B+/Stable (Migrated
   Facility                         from 'CRISIL B+/Stable ISSUER
                                    NOT COOPERATING')

The rating reflects the weak financial risk profile and
vulnerability to delay in payments by farmers. These rating
weaknesses are partially offset by the extensive experience of
RCSPL's promoters in the cold storage and potato trading
businesses.

Key Rating Drivers & Detailed Description

Weakness:

* Vulnerability to delay in payments from farmers: As part of the
Bihar government's initiative to support agriculture, banks extend
financial assistance to farmers, to help them store their produce
in private cold storages, against pledge of receipts. Cold storages
obtain loans from banks on behalf of farmers and traders. However,
the primary responsibility to repay the loan is on the cold
storages. In case of adverse market conditions and decline in
potato prices, farmers do not find it profitable to pay rental and
interest charges, along with the loan principal, and hence, do not
retrieve potatoes from cold storages. This could weaken growth
prospects of cold storage units, and lead to lower profitability.

* Weak financial risk profile: Financial risk profile is marked by
a small networth and high gearing, estimated round INR0.88 crore
and 6.1 times, respectively, as on March 31, 2019. Muted accretion
to reserves will continue to constrain improvement in networth and
gearing.

Strengths:
* Extensive experience of the promoters: The promoters have spent
almost four decades in the cold storage and potato trading
businesses, thereby resulting in healthy relationships with traders
and farmers.

Liquidity
Cash accrual of around INR50 lakh was sufficient to cover the
maturing debt of around INR19 lakh in FY19. Bank limit utilisation
is high during the peak season, in months of March and April.
Current ratio was moderate around 1.2 times as on March 31, 2019.

Outlook: Stable

CRISIL believes HCSS will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if higher-than-expected cash accrual, along with better
working capital management, strengthens the financial risk profile.
The outlook may be revised to 'Negative' in case of pressure on
liquidity, due to delay in repayment by farmers, considerably low
cash accrual, or significant capital expenditure.

RCSPL was set up by Mr Anupam Kumar and Mr Subodh Kumar to offer
cold storage facilities at Begusarai, Bihar. The unit has cold
storage capacity of 12,000 tonnes, with 3 chambers, and became
operational in March 2010.


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

The instrument-wise rating actions are:

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

-- INR50 mil. Non-fund-based facilities migrated to non-
     cooperating category with IND A4+ (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 24, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in July 2002, RPPPL manufactures high-density
polyethylene/polypropylene sacks, woven fabric, and liner packaging
bags for fertilizers, chemical sugar, rice, spices, food grains,
cement, and salt, at its 600 metric tons/month unit in Gandhinagar,
Gujarat.


SAFI TRADERS: Ind-Ra Raises Issuer Rating to 'BB', Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Safi Traders'
(Safi) Long-Term Issuer Rating to 'IND BB' from 'IND BB- (ISSUER
NOT COOPERATING)'. The Outlook is Stable.

The instrument-wise rating action is:

-- INR590 mil. (increased from INR470 mil.) Fund-based facilities

     Long-term rating upgraded; short-term rating affirmed with
     IND BB/Stable/IND A4+ rating.

KEY RATING DRIVERS

The upgrade reflects the improvement in the scale of operations.

Safi's revenue surged to INR7,478 million in FY19 (FY18: INR4,392
million) on account of an improvement in the trading volumes of JSW
products, the introduction of value-added roofing sheets and an
increase in the volumes of pipe trading. The firm has 24 retail
outlets and plans to open two more retail outlets in the southern
part of Tamil Nadu, which would support revenue growth in the long
term. The figures for FY19 are provisional in nature.

The ratings take into consideration the average EBITDA margins due
to the trading nature of the business. The margins fluctuated in
the range of 1.3%-1.7% over FY16-FY19. The margin fell on a YoY
basis to 1.3% in FY19 (FY18: 1.7%) owing to the muted profitability
of the newly established branches and the pricing strategies
adopted by the company to counter the intense competition. The
return on capital was 13% in FY19 (FY18: 12%).

The ratings reflect Safi's moderate credit metrics due to high
dependency on working capital borrowings. The interest coverage
improved to 1.8x in FY19 (FY18: 1.4x) due to an increase in
absolute EBITDA to INR94 million (FY18: INR74 million) on the back
of revenue growth. The net leverage deteriorated to 6.5x in FY19
(FY18: 6.3x) on account of an increase in debt

The rating factors in Safi's tight liquidity position due to high
working capital requirements. The company's maximum utilization of
97.40% in fund-based limits for the 12 months ended May 2019. The
cash flow from operations remained negative at INR34 million (FY18:
negative INR54 million). The working capital cycle improved to 28
days in FY19 from 34 days in FY18 owing to a fall in inventory
holding days (FY19:18 days; FY18: 42 days). The firm had a cash
balance of INR35 million in FY19 and has a scheduled repayment of
INR6.3 million in FY20.

Moreover, the company faces geographical concentration risk, as its
operations are largely concentrated in and around Tamil Nadu.

The ratings are also constrained by the partnership nature of the
business.

The ratings, however, are supported by the promoters' three decades
of experience in steel trading.

RATING SENSITIVITIES

Positive: A significant increase in the EBITDA margin and
improvement in the liquidity position while maintaining revenue,
leading to the interest coverage increasing to above 2.5x, on a
sustained basis, would be positive for ratings, could be positive
for the ratings.

Negative: A substantial decline in the revenue or EBITDA margin,
leading to the interest coverage deteriorating below 1.5x, on a
standalone basis, could be negative for the ratings.

COMPANY PROFILE

Established in 1998, Safi is a supplier of a wide range of steel
products in south Tamil Nadu. Its operations are managed by its
promoter, Mr. Safi Mohammed.


SGR EXIM: Ind-Ra Lowers LongTerm Issuer Rating to 'C'
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded SGR Exim Private
Limited (SGR Exim) Long-Term Issuer Rating to 'IND C (ISSUER NOT
COOPERATING)' from 'IND B- (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency. Thus, the rating is based on
the best available information. Therefore, investors and other
users are advised to take appropriate caution while using these
ratings. The rating will now appear as 'IND C (ISSUER NOT
COOPERATING)' on the agency's website.

The instrument-wise rating actions are:

-- INR32 mil. Fund-based limits downgraded and maintained in non-
     cooperating category with IND C (ISSUER NOT COOPERATING)
     rating; and

-- INR86 mil. Non-fund based limits affirmed and maintained in
     non-cooperating category with IND A4 (ISSUER NOT COOPERATING)

     rating.

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

KEY RATING DRIVERS

The downgrade reflects SGR Exim's delays in debt servicing during
last three months ended June 2019.

COMPANY PROFILE

SGR Exim, incorporated in December 2014, is engaged in trading of
agricultural products such as rice, wheat, red lentil, and green
gram.


SHIV SHANKAR: CRISIL Keeps B+ on INR10cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shiv Shankar Rice
Mills - Taraori (SSRM) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit             10        CRISIL B+/Stable (ISSUER NOT
                                     COOPERATING)

CRISIL has been consistently following up with SSRM for obtaining
information through letters and emails dated February 26, 2019 and
June 24, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SSRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSRM is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SSRM continues to be 'CRISIL B+/Stable Issuer not
cooperating'.

Established in 2003, and managed by Mr Anil Gupta and his wife Ms
Savita Gupta, SSRM is a partnership firm engaged in processing and
sale of basmati rice. The firm deals mainly in parboiled basmati
rice and long-grain parboiled basmati rice. It has sorting and
milling capacity of 6 tonne per hour and its plant in Tarori,
Haryana.


SHREE BHOMIKA: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Shree Bhomika International Limited
        R-273, Greater Kailash-I
        New Delhi, South
        Delhi 110048
        India

Insolvency Commencement Date: July 11, 2019

Court: National Company Law Tribunal, Meerut Bench

Estimated date of closure of
insolvency resolution process: January 7, 2020

Insolvency professional: Manish Agarwal

Interim Resolution
Professional:            Manish Agarwal
                         707, Saket
                         Opp. Rohtash Sweets
                         Meerut 250001
                         Uttar Pradesh
                         Tel.: 0121-4054491
                               9412705345
                         E-mail: manishfcs@gmail.com
                                 scirp.shreebhomika@gmail.com

Last date for
submission of claims:    July 29, 2019


SHRI GUMANDEV: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Shri Gumandev Procesors Private Limited
        Registered office:
        Plot no. 706
        Opp. Ultra Rubber
        GIDC Ankleshwar
        Gujarat

Insolvency Commencement Date: July 2, 2019

Court: National Company Law Tribunal, Surat Bench

Estimated date of closure of
insolvency resolution process: December 29, 2019

Insolvency professional: CA Kailash Thanmal Shah

Interim Resolution
Professional:            CA Kailash Thanmal Shah
                         505, 21st Century Business Centre
                         Near World Trade Centre, Ring Road
                         Surat 395002
                         E-mail: ipktshah@gmail.com

Last date for
submission of claims:    July 19, 2019


SPECIAL PRINTS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Special Prints Ltd
        Garden Mills Complex
        Sahara Gate
        Surat GJ 395010
        India

Insolvency Commencement Date: July 15, 2019

Court: National Company Law Tribunal, Surat Bench

Estimated date of closure of
insolvency resolution process: January 11, 2020
                               (180 days from commencement)

Insolvency professional: Narayan Gajanan Vidvans

Interim Resolution
Professional:            Narayan Gajanan Vidvans
                         604-B, Shivkartik Enclave
                         Opp. Shrungar Residency
                         VIP Road, Vesu
                         Surat 395007
                         E-mail: v_id_vans@hotmail.com

Last date for
submission of claims:    July 31, 2019


SRI BALAJI: Insolvency Resolution Process Case Summary
------------------------------------------------------
Debtor: Sri Balaji Logs Products Private Limited
        Registered office:
        67/22 Strand Road
        Kolkata 700006

Insolvency Commencement Date: July 17, 2019

Court: National Company Law Tribunal, Kolkata Bench

Estimated date of closure of
insolvency resolution process: January 13, 2020
                               (180 days from commencement)

Insolvency professional: Mr. Anup Kumar Singh

Interim Resolution
Professional:            Mr. Anup Kumar Singh
                         162/d/702 Lake Gardens
                         Kolkata, West Bengal 700045
                         E-mail: anup_singh@sumedhamanagement.com

                            - and -

                         Sumedha Management Solutions Pvt Ltd
                         11/1 Sarat Bose Road
                         Ideal Plaza, South Block
                         4th Floor, Room No. 405
                         Kolkata 700020
                         E-mail: ip.sribalajilogs@gmail.com

Last date for
submission of claims:    July 31, 2019


SRI RAMPRASAD: CRISIL Lowers Rating on INR20cr Term Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Sri Ramprasad
Skyscrapers Private Limited (SRSPL) to 'CRISIL B+/Stable Issuer not
cooperating'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Term Loan               20        CRISIL B+/Stable (ISSUER NOT
                                     COOPERATING; Revised from
                                     'CRISIL BB+/Stable ISSUER
                                     NOT COOPERATING')

CRISIL has been consistently following up with SRSPL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SRSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SRSPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SRSPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

Incorporated in 2006, SRSPL owns a multiplex in Bhimavaram (Andhra
Pradesh). The multiplex comprises a G+3 structure and a standalone
complex at the entrance.


SUMMIT METALS: CRISIL Lowers Rating on INR11cr Loans to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Summit
Metals (SM) to 'CRISIL D' from 'CRISIL BB-/Stable'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit             8         CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

   Long Term Loan          3         CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

The rating downgrade reflects delay in repayment of bank debt by
SM. These delays have been due to liquidity issue in the company.

The rating reflects the modest scale of operations in the highly
fragmented roof sheets industry. The weakness is partially offset
by SM's established relationships of the firm's promoter with
clients

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations: SM's modest scale is reflected in
revenue of INR38 crore in fiscal 2018. Moreover, the firm operates
in a highly fragmented industry and faces intense competition.

Strength:
* The promoter's established relationships with clients: The
promoter has built strong relationships with clients, backed by his
experience in the construction industry through tile trading
business Q Nineth Ceramics ('CRISIL B+/Stable').

Liquidity
The bank limits have been highly utilized on account of the working
capital intensive nature of operations. Further, the company had an
insufficient cash accruals against repayment obligations during
fiscal 2018. The current ratio stood at 0.90 times in 2018.

SM, established in 2015 and promoted by Mr Moosa Kunnath,
manufactures and trades in roof sheets. The firm also trades in
steel tubes and other metals.


SUPER SHIV: CARE Migrates D Rating to Not Cooperating Category
--------------------------------------------------------------
CARE has been seeking information from Super Shiv Shakti Chemicals
Private Limited (SSSCPL) to monitor the rating(s) vide e-mail dated
June 28, 2019, July 3, 2019, July 4, 2019 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the rating
on the basis of the best available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.
Further, SSSCPL has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on
SSSCPL's bank facilities will now be denoted as CARE D; ISSUER NOT
COOPERATING.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank      32.44       CARE D; Issuer not cooperating;
   Facilities                      Based on best available
                                   information

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 assigned to the bank facilities of Super Shiv Shakti
Chemicals Private Limited are primarily constrained on account
of its ongoing delay in debt servicing owing to stressed liquidity
position with net and cash loss in FY18 (FY refers to the period
April 1 to March 31).

Detailed description of the key rating drivers
At the time of last rating in June 2018, the following were the
rating strengths and weaknesses

Key Rating Weakness

Delay in debt servicing owing to liquidity crunch: On August 11,
2016, a blast occurred due to short circuit in the factory due to
which the Department of Explosives closed down the factory. SSCPL
filed a writ petition in high court and received an order to
restart the factory on August 3, 2017 and thus operations were
commenced from August 23, 2017. Due to non-production activities
for a period of one year, the liquidity position stood stressed.
Thus, there are instances of delayed interest and principal
repayments in accounts as well as overdrawing in working capital
bank borrowings.

Bhilwara based Super Shiv Shakti Chemicals Private Limited (SSCPL)
was incorporated in 2004 as a private limited company. SSCPL is
engaged in the manufacturing of industrial explosives, detonating
fuse and detonators with installed capacity of 30,000 Metric Tonne.
The company has a license from Department of Explosives under
Explosive Act, 1884.


THAKUR AGRO: CRISIL Assigns B+ Rating to INR8.5cr Loans
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Thakur Agro Products (TAP).

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit            7          CRISIL B+/Stable (Assigned)
   Term Loan              1.5        CRISIL B+/Stable (Assigned)

The rating reflects the firm's exposure to intense competition in
the cashew industry and its modest scale of operations. These
weaknesses are partially offset by the proprietor's extensive
industry experience and the firm's advantageous location for
procuring cashews.

Analytical Approach

Unsecured loans of INR19 lakh from the proprietor have been treated
as debt.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and exposure to intense competition in
the fragmented cashew industry: The firm's business risk profile
remains constrained by its small scale of operations in a highly
fragmented industry. The firm recorded revenue of INR9.75 crore
during fiscal 2019. The cashew industry is marked by limited
differentiation in the technology for processing cashew nuts. This,
along with the moderate capital required to set up a cashew
processing unit, has resulted in low entry barriers. Consequently,
the domestic cashew processing industry has many small players,
leading to intense competition in both the organised and
unorganised segments.

* Below-average financial risk profile: The firm's financial risk
profile is constrained by modest networth of INR3.17 crore and high
gearing of 2.7 times as on March 31, 2019. The firm has moderate
debt protection metrics, indicated by net cash accrual to total
debt ratio and interest coverage of 0.07 and 1.89 times,
respectively, for fiscal 2019. The financial risk profile will
likely remain below average over the medium term.

Strengths

* Extensive experience of the proprietor in the cashew processing
business: The proprietor, Mr Dipak Thakur, has been in the business
for over 15 years through a group firm. His experience has helped
TAP build a strong clientele of more than 40 customers in the
domestic market, with whom it has been associated since inception,
resulting in repeat business. Longstanding position in the cashew
segment has given the firm a negotiating edge with its various
intermediaries. TAP also has a good network of raw cashew nut
suppliers spread across several geographies, which ensures
availability of high-quality cashew nuts throughout the year.

* Strategic location of the plant: TAP is located at Vengurla in
Sindhudurg, Maharashtra, and has easy access to raw material. The
major producers of raw cashews are on the west coast of Maharashtra
and Goa. Additionally, there are various agricultural co-operative
societies in Goa which procure raw materials from cultivators,
ensuring a steady supply of raw cashews to TAP.

Liquidity
The bank limit utilisation was moderate, averaging 50-60% over the
7 months through fiscal 2019. Though cash accrual is expected to be
low at INR58 lakh in fiscal 2019, it will improve to INR1.8-2.1
crores and would be sufficient to meet term debt obligation of
INR25 lakh, over the medium term. Also, the proprietor is likely to
extend support in the form of equity and unsecured loans to meet
working capital requirement and debt obligation, which will cushion
liquidity.

Outlook: Stable

CRISIL believes TAP will continue to benefit from its proprietor's
extensive experience and established relationships with clients.
The outlook may be revised to 'Positive' if a significant increase
in revenue and stable profitability strengthen the financial risk
profile. The outlook may be revised to 'Negative' if decline in
sales or profitability or stretch in working capital cycle or
large, debt-funded capital expenditure weakens the capital
structure.

TAP began commercial operations in 2018, and is owned and managed
by Mr Dipak Thakur. It processes cashews and has installed capacity
of 4,000 kilogram per day.


TRADING ENGINEERS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s Trading Engineers (International) Limited

        Registered office:
        806, Devika Tower 6
        Nehru Place
        New Delhi 110019

        Address other than R/o where all or any books of account
        and papers are maintained:
        UM House, 35-P
        Sector-44, Gurgaon 122002 HR

Insolvency Commencement Date: July 19, 2019

Court: National Company Law Tribunal, New Delhi Bench

Estimated date of closure of
insolvency resolution process: January 15, 2020
                               (180 days from commencement)

Insolvency professional: Vivek Raheja

Interim Resolution
Professional:            Vivek Raheja
                         JD-2C, 2nd Floor
                         Pitampura, New Delhi 110034
                         E-mail: vivek@vpgs.in
                                 ip.tradingengineers@gmail.com

Last date for
submission of claims:    August 2, 2019


VARAM BIOENERGY: Insolvency Resolution Process Case Summary
-----------------------------------------------------------
Debtor: Varam Bioenergy Private Limited
        Registered office address:
        B-32 & Mines Complex
        Srinagar Colony, Hyderabad
        Telangana 500073

Insolvency Commencement Date: July 18, 2019

Court: National Company Law Tribunal, Hyderabad Bench

Estimated date of closure of
insolvency resolution process: January 14, 2020
                               (180 days from commencement)

Insolvency professional: Mr. Udayraj Patwardhan

Interim Resolution
Professional:            Mr. Udayraj Patwardhan
                         Sumedha Management Solutions Private
                         Limited
                         C703, Marathon Innova
                         Off Ganapatrao Kadam Marg
                         Lower Parel West, Mumbai
                         Maharashtra 400013
                         E-mail: udayraj_patwardhan@
                                 sumedhamanagement.com
                                 vbpl@sumedhamanagement.com

Last date for
submission of claims:    August 1, 2019


VEDSIDHA PRODUCTS: CRISIL Maintains D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Vedsidha Products
Private Limited (VPPL) continues to be 'CRISIL D Issuer not
cooperating.'

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit             4.5        CRISIL D (ISSUER NOT
                                      COOPERATING)

   Proposed Long Term      3.0        CRISIL D (ISSUER NOT
   Bank Loan Facility                 COOPERATING)

   Term Loan              19.5        CRISIL D (ISSUER NOT
                                      COOPERATING)

CRISIL has been consistently following up with VPPL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 2019 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of VPPL continues to be 'CRISIL D Issuer not
cooperating'

VPPL is promoted by Nagpur (Maharashtra)-based Mr Prabhudas Vyas
and Mr Niranjan Ranka. The company has set up a plant to
manufacture autoclaved aerated concrete blocks near Nagpur.


VISHWAKARMA AUTOMOTIVE: CRISIL Rates INR22.5cr Loans 'B+'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Vishwakarma Automotive Private Limited (VAPL).

                       Amount
   Facilities        (INR Crore)    Ratings
   ----------        -----------    -------
   Cash Credit           11.4       CRISIL B+/Stable (Assigned)
   Long Term Loan        11.1       CRISIL B+/Stable (Assigned)

The rating reflects the company's modest scale of operations with
small networth, leveraged capital structure, and weak coverage
indicators. The rating also factors in large working capital
requirement, and exposure to competition and to risks related to
the ongoing project for capacity expansion. The weaknesses are
partially offset by the experience of the promoters in the steel
industry, and moderate profitability.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations with small networth: The modest scale
is indicated by operating income and net cash cash accrual of
INR34.79 crore and INR1.78 crore respectively, in fiscal 2018.
Networth was small at INR7.85 crore as on March 31, 2018. The small
scale limits the company's financial flexibility in times of
stress. Operating income was INR16.44 crore from April 1 to July
31, 2018.

* Leveraged capital structure and weak debt protection metrics: The
leveraged capital structure is reflected in gearing of above 2.65
times in the three fiscals ended March 31, 2018, because of
debt-funded capital expenditure and large working capital debt. The
large debt led to weak debt protection metrics, reflected in
interest coverage of less than 2 times.

* Large working capital requirement: The company has to maintain
adequate raw material and work-in-progress inventory for smooth
production, and finished goods inventory to meet customers' demand.
It had inventory of around 85 days as on March 31, 2018. The
company extends credit of 2-3 month to customers and receives
credit of around 2 months from suppliers. Its working capital line
was fully utilised over the 12 months through March 2018.

* Exposure to intense competition: The steel industry is highly
competitive as it has numerous players because of low entry
barriers. The players in the industry do not have pricing power and
the intense competition puts pressures on profitability.

* Exposure to risks related to ongoing project: VAPL is scheduled
to enhance its manufacturing capacity in the current fiscal. It
will face moderate demand risk as it is in the business since 20
years and has an established clientele. However, the company will
face intense competition from other players in the segment. Timely
project completion and successful stabilisation of operations at
the new unit will remain key rating sensitivity factors.

Strengths

* Experienced and resourceful promoters: The operations are managed
by Mr Ashwani Kumar, Mr Parveen Kumar, and Mr Rajinder Kumar who
possess experience of more than three decades in the automotive
industry through VAPL and associate entities. They are well
supported by Mr Keshav Dhamija who looks after the daily
operations. The company's long track record has helped establish
relationships with suppliers and customers. VAPL sells around 60%
of its final products to group company Vishwakarma Auto Parts Pvt
Ltd, which manufactures automotive components for established
customers. The association with reputed customers results in higher
revenue visibility and enhances the market position of the
Vishwakarma Group.

* Moderate profitability: The operating margin was moderate above
10% for the three fiscals through 2018. High depreciation and
financial charges restricted the profit after tax (PAT) margin to
1.40% in fiscal 2018.

Liquidity
Bank limit utilisation was high, averaging 95% over the 12 months
ended March 31, 2019. Cash accrual is expected over INR2.24 crore
against term debt obligation of INR1.00 crore over the medium term,
and will cushion liquidity.

Outlook: Stable

CRISIL believe VAPL will continue to benefit from the extensive
experience of its promoters, and its established relationships with
clients. The outlook may be revised to 'Positive' if ramp-up in
scale of operations and stable profitability strengthen the
financial risk profile. The outlook may be revised to 'Negative' if
decline in profitability or stretch in working capital cycle or
large, debt-funded capex weakens the capital structure.

Incorporated in 1999 and based in Faridabad, Haryana, VAPL is
managed by Mr Ashwani Kumar, Mr Parveen Kumar, Mr Rajinder Kumar,
and Mr Keshav Dhamija. The company manufactures castings such as
grey cast iron and ductile iron machined castings.


[*] India Monitoring for 'Signs of Fragility' Among Shadow Banks
----------------------------------------------------------------
Bloomberg News reports that India is attempting to prevent any
repeat of last year's shadow banking crisis after detecting "signs
of fragility" in some of the 50 housing finance and other non-bank
lenders it is monitoring, according to central bank Governor
Shaktikanta Das.

Bloomberg relates that the Reserve Bank of India is working closely
with the country's lenders to prevent the collapse of another large
systemically important non-bank finance company, Das said in one of
his first media interviews since becoming governor in December. "It
is our endeavor that there is no contagion," the report quotes Das
as saying.

A year after a series of defaults by Infrastructure Leasing &
Financial Services Ltd. forced the government to intervene and
exposed weaknesses in the sector, the problems of India's NBFCs are
entering a new phase, according to Bloomberg. Some lenders such as
Dewan Housing Finance Corp. and tycoon Anil Ambani's Reliance
Capital Ltd. are struggling, putting the loans they received from
regulated banks at risk, Bloomberg says.

"We are constantly in touch with the large lenders" about the NBFCs
and housing finance companies "where we see some signs of
fragility," Bloomberg quotes Das as saying in the interview, which
took place at his office in the RBI building overlooking the Mumbai
skyline and the Arabian sea.  "Our effort is to see that there is
no repeat instances of systemically important large NBFC
collapsing," the governor said.

Bloomberg relates that just as they emerge from the worst bad-loan
problem in two decades, India's banks are staring at another
potential surge in soured debt as a result of their exposure to
troubled non-bank finance companies. In its latest Financial
Stability Report, the Reserve Bank of India warned that any failure
among the largest of the NBFCs or housing finance firms could cause
losses comparable to a major bank collapse, Bloomberg says.

According to Bloomberg, the governor said the central bank selected
the non-banks to monitor based on the size of their balance sheet,
the scale of their operations, as well as governance practices and
credit behavior.

There have been some instances of governance lapses and "we are
dealing with it," Das said, without naming any company. "But there
are a large number of others who have encountered business failures
and certain external factors which impacted their business model."

Bloomberg relates that Das said lenders which haven't been diligent
in their lending practices "will have to pay" the price for it.

The Indian government earlier this month threw a lifeline to the
better-rated NBFCs by agreeing to backstop some of the assets that
banks purchase from them, thereby improving their liquidity,
Bloomberg recounts. The RBI, which is now a regulator of the
housing finance companies, also eased liquidity ratio rules for
banks to encourage refinancing for shadow lenders.

However, the Reserve Bank has resisted calls to provide a separate
liquidity window for the struggling shadow banks, and Das
reiterated his opposition, saying in the interview that a NBFC
"refinance window is a misnomer," Bloomberg says.

"Not a day has passed over the last several months when internally
we have not had a review or some discussion on the NBFCs, either on
the sector, or on the individual NBFCs," Das said in his office
adorned with two replicas of Lord Jagannath, a form of the Hindu
god Vishnu, revered in his native Odisha state, Bloomberg relays.
"There have been improvements but challenges still remain."

According to Bloomberg, India's cash-strapped NBFCs are closely
interconnected with the banks, either through loans or purchases of
the non-banks' bonds. That poses a new challenge to the RBI's
efforts to clean up from an earlier bad-loan crisis -- mostly due
to excessive lending to large energy, steel and other industrial
companies -- and to encourage more lending to boost the economy.

Mortgage lenders had outstanding loans of about INR9.3 trillion
($135 billion) as of March 31, 2018, Bloomberg discloses citing RBI
data. Repayment of some of the loans may be at risk as the cash
crunch among non-banks has raised questions about the solvency of
real estate companies, and threatens to push 70% of them out of
business in the next two years, Goldman Sachs Group Inc. analysts
said in a note earlier this month.

"We are now getting into a vicious cycle. It's important for
confidence to come back," Bloomberg quotes Abhimanyu Sofat, head of
research at IIFL Securities Ltd, as saying. "The dues owed to these
companies aren't coming back in a regular manner given the slowdown
in demand, so even banks will be reluctant to lend more."

Resolving the issues will involve losses for the owners of some of
the non-bank companies, Das said.

"In the process, the promoters will have to make certain
sacrifice," Das said, referring to the founders of non-banks. The
promoters will "have to accept certain hair cut and the banks will
also have to deal with it appropriately."




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

DELTA MERLIN: Fitch Cuts LongTerm IDR to B-, on Watch Negative
--------------------------------------------------------------
Fitch Ratings downgraded Indonesia-based textile manufacturer PT
Delta Merlin Dunia Textile's Long-Term Issuer Default Rating to
'B-' from 'BB-' and the rating on its US dollar notes to 'B-' with
a Recovery Rating of 'RR4'. All ratings have been placed on Rating
Watch Negative.

The downgrades reflect DMDT's heightened refinancing and liquidity
risk. DMDT's liquidity has been hurt by slow sales and stretched
working capital due to intensifying competition following the
increased supply of cheap fabrics from China. This has been
exacerbated by the company's financial policy with respect to cash
holding together with foreign-currency hedges that are deep out of
the money. Fitch believes that, while DMDT's US-dollar bond
documentation provides ringfencing and does not contain cross
default from its affiliates within Duniatex group (of which DMDT is
a part), there is contagion risk that could limit DMDT's banking
and capital-market access.

The RWN reflects the tight liquidity risk associated with DMDT's
ability to meet near-term debt maturities, including the scheduled
amortised principal payment of its syndicated loan in September
2019. Fitch aims to resolve the RWN once further information is
available with respect to DMDT's and Duniatex group's liquidity
profiles and refinancing plans, which could lead to a downgrade of
at least one notch.

KEY RATING DRIVERS

Contagion Risk from Affiliates: Fitch believes DMDT's access to
banks and capital markets could be constrained. DMDT's bond
documentation does not contain a cross-default clause that links
the company's financing with the performance of affiliates, but
Fitch believes that, given the common ownership and the company's
integrated operations within Duniatex group, DMDT's banking and
capital-market access could be restricted due to an affiliate's
financial distress. This could make it difficult for DMDT to
refinance its debt, including short-term working-capital
facilities, which may not only affect day-to-day operations but
also the company's ability to make scheduled principal amortisation
repayment on its term loans. In addition, any default on DMDT's
loans, aside from the bond, of amount larger than USD10 million may
trigger the event-of-default clause in its US dollar bond
documentation.

Weakening Cash Flow Generation: The downgrades also reflect DMDT's
weakening cash-flow generation in the near term, which is partially
driven by higher supply of cheap fabrics from China. Fitch believes
the 25% tariff imposed by the US on Chinese products have forced
Chinese manufacturers to divert their products to other countries
in the region, including Indonesia. This has pressured DMDT's sales
and working-capital requirements, adversely affecting the company's
liquidity profile.

Fitch believes DMDT's cash flow is also affected by the settlement
of the company's US-dollar forward contracts in the near term.
DMDT, along with its affiliates, typically hedges a portion of its
US-dollar requirements through the use of forward contracts of six
to twelve months. Fitch understands that the company's forex
contracts are deeply out of the money and therefore the company
faces material cash outflow from the settlement of the contracts in
the short term. This may limit the company's ability to meet its
debt repayments scheduled in the near term.

Weaker Financial Discipline, Execution: Fitch believes Duniatex
group's weak financial discipline and operational execution has
further deteriorated in light of the heightened liquidity risk and
financial distress of an affiliate, which has led us to re-assess
DMDT's governance structure and revise the credit relevance of the
governance factor for DMDT's rating under Fitch's environmental,
social and governance framework to '5', from '4'. The score of '5'
reflects that DMDT's weak governance structure, on an individual
basis, significantly affects its credit rating.

DERIVATION SUMMARY

DMDT's rating may be compared with that of PT Sri Rejeki Isman Tbk
(Sritex; BB-/Stable) and PT Pan Brothers Tbk (B/Stable). Sritex is
one of Indonesia's leading textile and garment manufacturers, while
Pan Brothers is the country's largest publicly listed garment
manufacturer. The rating difference between the two companies and
DMDT reflects DMDT's deteriorating liquidity position and
heightened refinancing risk.

DMDT's rating may also be compared with that of PT Lippo Karawaci
TBK (CCC+/Rating Watch Positive) and Global Cloud Xchange Limited
(GCX; CC). DMDT is rated a notch higher than Lippo due to the
latter's compromised property sales business, weak liquidity
profile and high reliance on asset sales. DMDT's higher rating
relative to GCX reflects the higher level of credit risk relating
to the refinancing of GCX's secured notes in light of its poor
capital-market access following the default and ongoing debt
restructuring of its parent company, Reliance Communication
Limited. GCX's USD350 million secured notes are due August 1, 2019.
The company is evaluating options to refinance the notes, but does
not have a concrete plan so far. Fitch believes DMDT has better
funding access relative to GCX, supporting the rating difference
between the two companies

KEY ASSUMPTIONS

Fitch's key assumptions for its rating case include:

  - Stable utilisation rate of 81% across 2019 (2018: 76%)

  - Stable EBITDA margin at 19% over the next two years
    (2018: 21%)

  - No dividends for the next two years

KEY RECOVERY RATING ASSUMPTIONS

  - DMDT would be considered a going concern in a bankruptcy and
    would be reorganised rather than liquidated.

  - Fitch has assumed that DMDT's going-concern EBITDA is equal
    to its EBITDA in the last 12 months to 1Q19, with 10% discount
    applied to reflect Fitch's view of a sustainable, post-
    reorganisation EBITDA level upon which Fitch based the
    company's valuation

  - An enterprise value (EV) multiple of 4x is used to calculate
    a post-reorganisation EV. Fitch believes this is closer to a
    distressed multiple, considering that other Indonesia-based
    textile and garment manufacturers - Sritex and Pan Brothers
    - are trading at 5x and 9x EV/EBITDA multiples, respectively

  - Around IDR1.5 trillion of secured debt as of March 31, 2019
    has priority over the senior unsecured US dollar bond

  - 10% administrative claim to be applied on the going concern EV

  - Going-concern EV to cover 91%-100% of DMDT's senior unsecured
    debt, corresponding to a 'RR1' Recovery Rating for the senior
    unsecured notes after adjusting for administrative claims.
    Nevertheless, Fitch has rated the senior unsecured bonds
    'B-'/'RR4' because, under its Country-Specific Treatment of
    Recovery Ratings criteria, Indonesia is classified under
    Group D of countries in terms of creditor friendliness and
    the instrument ratings of issuers with assets located in this
    group are subject to a soft cap at the issuer's IDR.




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

MALAYSIA AIRLINES: Khazanah Taps Morgan Stanley for Strategy
------------------------------------------------------------
Bloomberg News reports that Khazanah Nasional Bhd has hired Morgan
Stanley to explore strategic options for Malaysia Airlines Bhd, the
nation's loss-making flagship carrier, according to people familiar
with the matter.

The investment bank will be responsible for looking at options for
the airline, including a potential stake sale, said the people who
asked not to be named as the discussions are private, Bloomberg
relates. Khazanah, Malaysia's sovereign wealth fund and the sole
shareholder of the airline, aims to get a deal done by the end of
this year, one of the people said. Discussions are ongoing and
details including timeline could still change, the people said.

Khazanah is working on the way forward for Malaysia Airlines,
including evaluating all strategic options to revive its
performance, the sovereign wealth fund said in an emailed response
to Bloomberg News.

According to Bloomberg, Malaysia Airlines has been seeking to
transform itself since Khazanah took it private in 2014 following
two tragic incidents - one of its planes vanished over the Indian
Ocean and another was shot down over Ukraine. While revenues have
been rising over the past year, overcapacity in Asia and external
volatility including the trade war between the US and China are
expected to continue to hamper growth, the company said in June.

Bloomberg says Khazanah asked Malaysia Airlines to come up with a
strategic plan in February to help it compete in the aviation
industry and deliver better returns after it missed two
profitability deadlines. Prime Minister Mahathir Mohamad said this
month that the government is studying four proposals it received
for the airline from local investors, Bloomberg relates.

While Mahathir has said the carrier still faces the possibility of
being shut down as the government seeks to save money, he also
emphasized that he wants the airline to recover and keep "Malaysia"
in its name, Bloomberg notes. He also acknowledged that turning the
company around without laying off staff - a key issue for the
government - is difficult, relays Bloomberg.

                      About Malaysia Airlines

Headquartered in Selangor, Malaysia, state-owned Malaysia
Airlines -- http://www.malaysiaairlines.com/-- engages in the
business of air transportation and the provision of related
services.

As reported in the Troubled Company Reporter-Asia Pacific on March
8, 2019, New Straits Times said Malaysia Airlines' days as a
national carrier may be numbered as it has failed to meet its
three-year target to be profitable, but is instead bleeding since
it was taken private in 2014, aviation analysts said.  The analysts
said the best deal for the airline is to completely shut down its
operations or sell it to interested parties or spin off its
business divisions, NST related.

Khazanah is the sole shareholder of MAS after taking the airline
private in 2014. The sovereign wealth fund injected MYR6 billion
into the airline to keep it afloat, NST noted.

From its delisting from Bursa Malaysia from 2015 to 2017, MAS had
registered a loss of MYR2.3 billion due to the ringgit's weakness
and higher jet fuel costs, NST disclosed.




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

EBERT CONSTRUCTION: Subcontractors Face 'Significant Shortfall'
---------------------------------------------------------------
Victoria Young at BusinessDesk reports that receivers for Ebert
Construction have dished out another NZ$770,000 to subcontractors,
bringing total distributions to them to NZ$2.31 million since the
firm's collapse last October.

BusinessDesk says the distribution of funds following Ebert's
collapse is being closely watched in the construction industry as
the first major test of the subcontractors' retention regime. Since
March 2017, it has been compulsory for construction firms to hold
money on trust for subbies.

When Ebert moved into receivership its accounts showed NZ$3.68
million was held in retentions, despite also recording NZ$9.32
million owing under the retentions scheme, BusinessDesk relates.

Pointing out that retentions may be the only recovery for many
subcontractors, receivers at PwC said in their latest report that
it has been an extremely difficult situation for many people,
according to BusinessDesk.

"We are conscious that most subcontractors are likely to experience
a significant shortfall for their wider claims for unpaid works of
retentions not held in the fund."

According to BusinessDesk, PwC receivers John Fisk and Lara Bennett
made a pioneering application to the High Court at Wellington last
year to work out how to distribute the funds.

In his ruling, Justice Peter Churchman noted that the retentions
were the receivership's only significant cash asset.

According to their July 15 report, the receivers had reached
agreement with 126 of 130 subcontractors on how to treat their
claims, BusinessDesk discloses.

There were 182 subcontractors but only about 70 percent of them
qualified for retentions for a variety of reasons, including that
some had been mislabeled, the report says.

BusinessDesk notes that total distributions to subcontractors under
the retentions scheme now total NZ$2.31 million, or 90 percent of
accepted claims, after NZ$1.54 million was paid out before
Christmas. While some of the remaining NZ$1.88 million left in the
retentions fund will go to subcontractors, the receivers will have
to pay their expenses and legal costs.

Approximately NZ$108 million is believed to be owing in the
liquidation, the most recent report from April this year said,
BusinessDesk relays.

While the company's accounts payable balance was NZ$24.52 million,
the liquidators - BDO - identified several large breach of contract
claims from project owners. BDO's Iain Shephard and Jessica Kellow
had not accepted or rejected any claims, their report, as cited by
BusinessDesk, said.

The liquidators had formed a preliminary view that there might have
been a breach of directors' duties and had notified the directors
of a potential claim, adds BusinessDesk.

                      About Ebert Construction

New Zealand-based Ebert Construction Limited provided construction
management services. It offered design management, value
engineering, cost planning, programming, construction management,
health and safety management, quality management, and project
reporting services.

Lara Bennett, John Fisk and Richard Longman from PwC were appointed
receivers to Ebert Construction Limited in July 2018 as a result of
a request made by the Ebert Board of Directors to its bank.

At the time of PwC's appointment, the company was involved in 15
active projects, employed 100 staff and was forecasting turnover of
NZ$171 million in the year through March 2019, according to NZ
Herald.

Some NZ$640,000 was owed to staff as preferential creditors, with a
further NZ$1.3 million owed to employees on an unsecured basis, NZ
Herald disclosed citing receivers' first report.

NZ Herald said Ebert co-founder and managing director Kevin Hale is
also a secured creditor, owed NZ$3.5 million, which he loaned to
the business on July 24, 2018, as a short-term measure before new
capital was raised from other shareholders.

Ebert was placed in liquidation in October 2018.


PRECISION FOUNDRY: No Money for Unsecured Creditors, Receivers Say
------------------------------------------------------------------
Victoria Young at BusinessDesk reports that the receivers of
Precision Foundry said unsecured trade creditors and unsecured
employees, who have claims of about NZ$4.07 million, are unlikely
to get anything.

The Auckland-based cast iron exporter that previously employed 80
staff was placed in receivership before Christmas last year. The
company, directed by Paul Ayers and Myles Cooper, turned over about
NZ$15-18 million.

In a report dated July 22, KordaMentha receivers Grant Graham and
Neale Jackson said it is now unlikely unsecured creditors will get
any money once other priority creditors are paid.

BusinessDesk relates that the receiver's report said that they've
sold all of Precision Foundry's plant, machinery and stock and
collected NZ$2.19 million that was owing to it.

Receivers have already started paying the ASB Bank, which was owed
NZ$1.75 million. The report said that while NZ$1.15 million has
been given to the bank so far, it will suffer a shortfall,
BusinessDesk relays.

Precision Foundry's parent, Challenge Partners, was owed NZ$1.6
million, but has advised receivers that it would offset that debt
against business assets it had bought from the company prior to the
receivership, according to BusinessDesk.

Challenge Partners is a group of companies which includes a plastic
manufacturer and printing company. It bought Precision Foundry in
2014.

At the date of receivership, company records showed NZ$2.83 million
owing to trade creditors, although receivers only received claims
to the value of NZ$1.4 million, BusinessDesk discloses.

The total amount of priority claims from employees totalled NZ$1.31
million, of which about NZ$400,000 has been distributed.

BusinessDesk says there is a statutory limit of about NZ$23,000 in
salary and wages, unpaid holiday pay and redundancy that employees
can claim as preferential and the claims must relate to the four
months before the company goes under. The rest of their claim is
unsecured and goes to the back of the queue.

There is a further NZ$2.67 million claimed by employees which is
unsecured, the report said.

The IRD has a preferential claim of about NZ$160,000, as well as
other debt, adds BusinessDesk.

Since they started, receivers have billed NZ$400,000 for their work
distributing the funds, says BusinessDesk.

At the time of receivership, E Tu union said that its members had
been "blindsided" by the closure and that some workers had been
sent on leave for the Christmas break without being told about the
receivership, BusinessDesk reports.

E Tu director of organising, Ahlene McKee, told BusinessDesk the
union had been informed members had got about 30 cents in the
dollar so far.

"Our members have been through a hard time emotionally and
financially and we want to see some reparation. People should pay
up," BusinessDesk quotes Ms. McKee as saying.

BusinessDesk adds thast Ms. McKee said about 40 staff were
unionised and, while she wasn't sure how many had gotten jobs since
Christmas, some were close to retirement or had specific skill sets
making new employment difficult.

Precision Foundry had operated from the Panmure site since 1941.




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

MULHACEN PTE: S&P Alters Outlook to Negative & Affirms 'B+/B' ICRs
------------------------------------------------------------------
S&P Global Ratings said that it revised to negative from stable its
outlook on Singapore-based non-operating holding company Mulhacen
Pte. Ltd. (Mulhacen), owner of Spanish bank WiZink Bank S.A.U.
(WiZink; not rated).

S&P also affirmed its 'B+/B' long- and short-term issuer credit
ratings (ICRs) on Mulhacen and its 'B+' rating on the existing
senior secured payment-in-kind (PIK) toggle notes due in 2023,
issued by Mulhacen, to partly finance the acquisition of the
remaining 49% of WiZink from Banco Santander S.A.

WiZink has been facing increasing challenges in its day-to-day
business, the most notable being the rise in claims from Spanish
customers on alleged usury rates charged by the bank on its
revolving credit cards. The bank also experienced the resignation
of its CEO in March 2019, which S&P was not expecting, as well as
the weakening credit quality of its most recent credit card
vintages following an easing of underwriting standards in 2017.
These trends could put pressure on the bank's solid results and
business prospects, ultimately affecting its capacity to upstream
dividends to its holding company, Mulhacen. The latter relies
exclusively on such dividends to service interest payments on its
debt and at least partly repay its principal.

WiZink received 999 legal claims from card holders in 2018 and a
further 599 in the first quarter of 2019, with an estimated cost to
the group of EUR16.5 million and EUR10 million, respectively, which
the bank fully provisioned. When a court considers rates as
usurious the lender usually refunds all interest and fees to the
borrower, though still has the right to recover the principal.
WiZink provisioned those amounts fully, together with the related
legal costs. S&P expects the number of claims to increase,
particularly in the context of mounting consumer protectionism in
Spain.

An usury rate is legally defined in Spain as one that is
substantially higher than and manifestly disproportional to the
normal interest rate. In a specific case in 2015, the Spanish
Supreme Court provided further light by considering usurious a rate
that was twice that of the normal interest rate of money. Another
ruling by the Spanish Supreme Court on a usury rate case from a
major Spanish bank is expected by early 2020, which may provide
further guidance. A ruling that would imply that WiZink's average
rates on credit cards are too high could result in a spike in
claims against the bank and have negative consequences for its
business prospects, including its profitability.

S&P said, "Furthermore, we note that WiZink is currently looking to
replace the CEO, who had been running WiZink and its predecessor
business for close to 20 years. While the rest of the management
team remains at the bank, we believe that, in the interim, the
absence of a CEO creates some uncertainty. We will monitor whether
any changes in bank management result in a significant departure
from its current business model and strategy."

The group experienced weaker-than-expected asset quality
performance throughout 2018, primarily because of easing
underwriting in the vintages originated in 2017 and first-quarter
2018. In particular, problem loans amounted to 8.5% of gross loans
at end-2018, compared to 7.8% a year before. This translated into a
higher underlying cost of risk, to a reported 540 basis points
(bps) from 420 bps in 2017 (excluding one-offs). S&P's expectation
is that the cost of risk will peak this year, to more than 600 bps,
but it sees asset quality metrics slightly improving, as management
has taken remedial actions during the second half of 2018. This
translated into an improvement in new vintage performance in the
first few months of 2019.

Mulhacen's repayment capacity ultimately depends on the upstreaming
of dividends from WiZink. Therefore, the above-mentioned risks
affecting WiZink could hinder Mulhacen's ability to service the
senior secured PIK toggle notes used to partially finance the
acquisition of the remaining stake in WiZink.

Mulhacen's double leverage--measured as the parent holding
company's equity investment in WiZink divided by its unconsolidated
shareholders' equity--as of December 2018 was 138%, fairly in line
with S&P forecasts. S&P expects this to decline only marginally
over the next 12 months. As part of the acquisition, Mulhacen
committed to retain as a cash reserve some of the dividends it will
receive from WiZink over a period of five years, up to a total of
EUR258 million, equivalent to 50% of the loan principal by 2023. By
early 2020, and upon payment of Wizink's dividends corresponding to
2019, Mulhacen is expected to retain at least EUR25.75 million,
equivalent to 5% of the loan principal.

S&P's 'bb+' assessment of the group credit profile (GCP) for
Mulhacen balances WiZink's limited scale and niche focus on the
inherently high-risk Spanish and Portuguese revolving credit cards
market against the solid profitability of its business model,
adequate capitalization, and predominantly retail funding profile
(for example, customer deposits accounted for 83% of its funding
base at end-2018).

The long-term issuer credit rating on Mulhacen is three notches
below the GCP, reflecting structural subordination to the operating
bank, possible regulatory barriers to dividend payments from the
Spanish regulator, and high double leverage.

The negative outlook on Mulhacen reflects the possibility of a
downgrade over the next 12-18 months if we see a deterioration in
the group's creditworthiness. Specifically, this could happen if
legal claims on alleged usury rates charged by WiZink increase
significantly, straining profits and business prospects and, as a
result, the expected dividend distribution. The ratings could also
come under pressure if the change in leadership at WiZink's top
management resulted in a significant departure from the current
strategy into a more aggressive one, or if the group's asset
quality metrics don't improve.

Conversely, S&P could revise the outlook to stable if WiZink's
litigation risk is contained and proves manageable, the change in
leadership is smooth, and the bank manages to reverse the
deteriorating trend of its risk profile.



                           *********


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
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