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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

            Monday, January 16, 2017, Vol. 20, No. 11

                            Headlines


A U S T R A L I A

ATLAS IRON: S&P Raises CCR to 'B-' on Partial Debt Prepayment
CQ LEAGUES: First Creditors' Meeting Slated for Jan. 20
GNISIO CLEANING: First Creditors' Meeting Set for Jan. 20
NATIONAL DAIRY: Tony Esposito to Offer More Money to Creditors
STEBAR PTY: First Creditors' Meeting Set for Jan. 25

VERACITY SOLUTIONS: First Creditors' Meeting Set for Jan. 20


C H I N A

INTIME RETAIL: S&P Puts 'BB-' CCR on CreditWatch Positive
PARKSON RETAIL: Fitch Lowers IDR to 'B-' on Deteriorating Profit
REWARD SCIENCE: Moody's Assigns First Time B1 Corp. Family Rating


H O N G  K O N G

IMPERIAL PACIFIC: Moody's Lowers Corp. Family Rating to B3


I N D I A

ABC TRANSFORMERS: ICRA Assigns B+ Rating to INR4.7cr LT Loan
AGRI VENTURE: CARE Assigns B+/A4 Rating to INR5.95cr LT Loan
AMRITESH INDUSTRIES: CARE Cuts Rating on INR10cr LT Loan to B+
API ASSOCIATES: ICRA Reaffirms 'D' Rating on INR7cr LT Loan
ARPEE ENERGY: CARE Reaffirms B+ Rating on INR7cr Long Term Loan

AYUSH TEXLENE: ICRA Reaffirms B- Rating on INR5cr Loan
BARDHAMAN AGRO: CARE Hikes Rating on INR7.05cr LT Loan to BB-
BHARATI DEFENCE: Edelweiss ARC to File Insolvency Case vs. Firm
CARRYCON INDIA: ICRA Reaffirms B+ Rating on INR6.5cr Loan
CHEEMA SPINTEX: ICRA Reaffirms 'D' Rating on INR48.70cr Loan

DEVANSHI CONSTRUCTION: CARE Assigns B+ Rating to INR10cr LT Loan
DHARTI COTTON: CARE Reaffirms B+ Rating on INR12cr LT Loan
DUSMER TOOLS: ICRA Assigns B Rating to INR3.0cr FB Loan
G. R MULTIFLEX: CARE Assigns B+ Rating to INR12cr LT Bank Loan
GAURAV EXPORTRADES: ICRA Reaffirms B+ Rating on INR1.0cr Loan

INDOMET STEEL: CARE Reaffirms B+ Rating on INR5.14cr LT Loan
LEITWIND SHRIRAM: Ind-Ra Affirms 'D' Long-Term Issuer Rating
MAIHAR ALLOYS: CARE Reaffirms B+ Rating on INR9cr LT Loan
MANGALAYATAN UNIVERSITY: Ind-Ra Rates INR315.25MM Facility 'B+'
MATERSHWARI FOODSTUFF: ICRA Reaffirms 'B' Rating on INR24cr Loan

MEENA ADVERTISERS: ICRA Reaffirms B+ Rating on INR8.0cr Loan
MONNET ISPAT: Lenders Restart Stake Sale Process
MORMONT IFMR: Ind-Ra Provisionally Rates USD24.42MM Cert. 'B+'
NSL COTTON: CARE Lowers Rating on INR25cr LT Loan to 'D'
PANYAM CEMENTS: CARE Upgrades Rating on INR97.86cr NCD to BB-

PASUPATI SPINNING: ICRA Reaffirms 'D' Rating on INR11.77cr Loan
POLYPLASTICS AUTOMOTIVES: ICRA Reaffirms D Fund Based Loan Rating
PRANAV FOUNDATIONS: CARE Reaffirms B+ Rating on INR30cr LT Loan
RADHA CASTING: CARE Upgrades Rating on INR4cr Long Term Loan to B
RADHA STEEL: Ind-Ra Affirms 'BB-' Long-Term Issuer Rating

RATNAGIRI GAS: CARE Reaffirms 'D' Rating on INR7,773.68cr Loan
RAYUDU LABORATORIES: ICRA Withdraws B/A4 Rating on INR15cr Loan
RISHI ICE: CARE Reaffirms B+ Rating on INR12.29cr LT Loan
SARASWATI ASSOCIATES: CARE Hikes Rating on INR4.50cr Loan to B+
SHAVYAA GEOTEX: CARE Hikes Rating on INR7.09cr LT Loan to B+

SHIVA SHAKTI: CARE Raises Rating on INR232.16cr LT Loan to BB-
SHREE RAM: ICRA Reaffirms B+ Rating on INR15.09cr Loan
SHREE SUKHAKARTA: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
SHREE VISHWAKARMA: ICRA Assigns 'B' Rating to INR12.5cr Loan
SHRIRAM TRANSPORT: S&P Rates Proposed "Masala" Bonds 'BB+'

SRI ANJANEYA: CARE Lowers Rating on INR34.80cr Loan to 'B'
SRINIDHI REAL: ICRA Reaffirms 'B' Rating on INR8cr LT Loan
SUBHANG CAPSAS: CARE Assigns B+ Rating to INR5.46cr LT Loan
TIRUPATI BALAJEE: CARE Assigns B+ Rating to INR7.71cr LT Loan
UMADUTT INDUSTRIES: Ind-Ra Affirms 'D' Long-Term Issuer Rating

UNIPHOS INTERNATIONAL: Ind-Ra Affirms 'BB+' Issuer Rating
UNITED SEAMLESS: ICRA Cuts Rating on INR1006.5cr Loan to D
UNITY DEVELOPERS: ICRA Reaffirms B+ Rating on INR9.23cr Loan
VIKAS KRISHI: ICRA Reaffirms B+ Rating on INR6.0cr Loan


J A P A N

ASAHI MUTUAL: Fitch Assigns 'BB-' Rating to Proposed US$ Bonds
TAKATA CORP: Expected to Plead Guilty as Part of $1BB Settlement


S I N G A P O R E

CHINA FISHERY: Court Moves Plan Filing Deadline Through March 31


S O U T H  K O R E A

HANJIN SHIPPING: Bid to Sell U.S. Assets Underway
HANJIN SHIPPING: Hyundai Merchant to Hire 220 Hanjin Workers
HYUNDAI MERCHANT: Fails to be Full-Fledged 2M Alliance Member
KUMHO TIRE: Creditors Moves Selection of Winning Bidder


                            - - - - -


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A U S T R A L I A
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ATLAS IRON: S&P Raises CCR to 'B-' on Partial Debt Prepayment
-------------------------------------------------------------
S&P Global Ratings said that it had raised its long-term
corporate credit and issue ratings on Atlas Iron Ltd. and the
company's senior secured debt to 'B-', from 'CCC'.  The recovery
rating on the debt remains unchanged at '3', reflecting S&P's
view of meaningful recovery prospects in the event of a default.
The outlook on the long-term rating is stable.

"The upgrade reflects the turnaround in Atlas Iron's financial
position since early last year," said S&P Global Ratings credit
analyst May Zhong.  "Benefiting from rising iron ore prices,
Atlas Iron's earnings and cash flows have increased materially
during the first half of the year ending June 30, 2017, enabling
the company to partially prepay some of its debt."

The company now has A$118 million of U.S. term loan outstanding,
compared with A$180 million in May 2016 following the
implementation of the creditor's scheme of arrangement.  In S&P's
view, the debt reduction improves the sustainability of Atlas
Iron's capital structure, making it more resilient to volatile
iron ore prices.

S&P expects the company's performance to continue in the March
2017 quarter due to hedging contracts in place for some of that
quarter's shipments.  Under the cash sweep requirements of the
term loan facility, any cash on hand at the end of each quarter
in excess of A$80 million is to be paid to the lenders.

S&P expects the company to continue repaying debt in the March
quarter.  As such, S&P expects the company's leverage (measured
by lease-adjusted debt to EBITDA) to fall below 2x in fiscal
2017, from 3.3x in fiscal 2016.  The sustainability of this
leverage is heavily dependent on iron ore prices.  Its leverage
could increase to about 5x if benchmark iron ore prices (Platts
62% Fe including cost and freight [CFR] to China) were US$45 per
dry metric ton (dmt).

S&P continues to view Atlas Iron's business risk profile as
vulnerable, reflecting its smaller scale of operations (14.5
million tons of iron ore production in fiscal 2016) and
relatively high, albeit improving production costs, compared with
global peers'. Atlas Iron is also exposed to volatile iron ore
and foreign exchange rate movements.  At June 30, 2016, the
remaining mine life for Atlas Iron's Abydos and Wodgina mines was
less than two years, and seven to eight years for Mt. Webber.

The smaller scale and lack of integrated rail and port
infrastructure, for example the company's reliance on trucks to
transport ore from pit to port, lead to the company's cash
production costs being higher than large producers'.  S&P
estimates that Atlas Iron's break-even cash costs are at about
the low level of US$40 per dmt, which is much higher than the
big-three iron ore producers' in Australia, whose break-even
costs are all below US$30 per dmt.  Break-even costs are
converted to a Platts 62% Fe basis and include interest expense,
sustaining capital expenditure, freight, mining costs, and
royalty fees.

Ms. Zhong added: "The stable outlook reflects our expectation
that Atlas Iron's operations will remain steady."

S&P forecasts the company's debt to EBITDA to remain below 2x in
fiscal 2017 but could increase to about 5x if benchmark iron ore
prices (Platts 62% CFR China) were US$45 per dmt.  S&P also
expects the company to maintain adequate liquidity.

S&P could lower the rating if Atlas Iron's credit metrics and
liquidity were to deteriorate - for example, if its cash holding
falls toward A$40 million.  This scenario could occur if iron ore
prices fall below US$45 per ton for a prolonged period without
being offset by a depreciating Australia dollar.  An unexpected
operational issue at one of its major mines could also lead to
weakening liquidity.

S&P may upgrade Atlas Iron if the company further repays a
material amount of debt or significantly improves its operating
profit margin per ton.  Any upgrade will be contingent on further
clarity on the company's funding for its Corunna Downs project.


CQ LEAGUES: First Creditors' Meeting Slated for Jan. 20
-------------------------------------------------------
A first meeting of the creditors in the proceedings of CQ Leagues
Club Limited will be held at the Empire Conference Centre, Room
1, Ground Floor, 5 East Street, in Rockhampton City, Queensland,
on Jan. 20, 2017, at 12:30 p.m.

Morgan Lane and Paul Nogueira of Worrells Solvency & Forensic
Accountants were appointed as administrators of CQ Leagues on
Jan. 11, 2017.


GNISIO CLEANING: First Creditors' Meeting Set for Jan. 20
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Gnisio
Cleaning Services Pty Ltd will be held at the offices of Worrells
Solvency & Forensic Accountants, Level 15, 114 William Street, in
Melbourne, Victoria, on Jan. 20, 2017, at 10:30 a.m.

Con Kokkinos and Matthew Jess of Worrells Solvency & Forensic
Accountants were appointed as administrators of Gnisio Cleaning
on Jan. 11, 2017.


NATIONAL DAIRY: Tony Esposito to Offer More Money to Creditors
--------------------------------------------------------------
Peter Hemphill at The Weekly Times reports that unsecured
creditors of National Dairy Products can expect a revised offer
to settle the company's AUD10 million-plus debt.

NDP owner Tony Esposito last week told The Weekly Times: "We are
working on something at the moment."

On December 23, unsecured creditors rejected an offer by Mr.
Esposito and his partner and sole director of NDP, Violetta
Esposito, of AUD521,000 to settle the debts through a deed of
company arrangement, the report recalls.

The offer amounted to between 5.9 cents and 17.4 cents in the
dollar.

According to The Weekly Times, Cobden dairy farmer and creditor
Alex Robertson said several unsecured creditors wanted more from
the Espositos or they would move to liquidate the company.

The Weekly Times notes that minutes of a recent creditors meeting
showed another Esposito company, AE Brighton Holdings, had been
admitted as a creditor of NDP, owed AUD4.73 million.

The list also showed Mr. Esposito claiming AUD5.7 million owed to
him personally, although it is yet to be admitted as a valid debt
by administrators Glen Kanevsky and Salvatore Algeri of Deloitte,
the report says.

The Weekly Times relates that Deloitte said the only figure
admitted for voting purposes was the AUD4.73 million owed to AE
Brighton Holdings.

Mr. Esposito said the AUD5.7 million figure was the amount
submitted to the administrator as to what he was owed, the report
relays.

He said it was subsequently altered to AUD4.73 million and
adjudicated as a valid debt, adds The Weekly Times.

National Dairy Products (NDP) is a milk brokering company based
in Victoria, Australia.

Salvatore Algeri and Glen Kanevsky of Deloitte were appointed as
administrators of National Dairy on Nov. 17, 2016.


STEBAR PTY: First Creditors' Meeting Set for Jan. 25
----------------------------------------------------
A first meeting of the creditors in the proceedings of Stebar Pty
Ltd, trading as Shed 6, will be held at the offices of Vincents,
Level 34, 32 Turbot Street, in Brisbane, Queensland, on Jan. 25,
2017, at 10:30 a.m.

Ashley Jade Leslie and Nick Jim Combis of Vincents were appointed
as administrators of Stebar Pty on Jan. 12, 2017.


VERACITY SOLUTIONS: First Creditors' Meeting Set for Jan. 20
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Veracity
Solutions Pty Ltd will be held at the offices of Worrells
Solvency & Forensic Accountants, Level 3, 15 Ogilvie Road, in
Mount Pleasant, West Australia, on Jan. 20, 2017, at 10:30 a.m.

Mervyn Jonathan Kitay -- mervyn.kitay@worrells.net.au -- of
Worrells Solvency & Forensic Accountants was appointed as
administrator of Veracity Solutions on Jan. 10, 2017.



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C H I N A
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INTIME RETAIL: S&P Puts 'BB-' CCR on CreditWatch Positive
---------------------------------------------------------
S&P Global Ratings said that it had placed its 'BB-' long-term
corporate credit rating and its 'cnBB+' long-term Greater China
regional scale rating on Intime Retail (Group) Co. Ltd. on
CreditWatch with positive implications.  Intime is a China-based
department store operator.

"We placed the ratings on CreditWatch with positive implications
to reflect potential group support to Intime from its controlling
shareholder Alibaba group following the company's proposed
privatization," said S&P Global Ratings credit analyst Shalynn
Teo.

S&P expects Alibaba group, through its wholly owned subsidiary
Alibaba Investment Ltd., could become a controlling shareholder
of Intime with an expected 73.9% stake on completion of the
transaction.  Although Alibaba is already the largest shareholder
of Intime with a 27.8% stake, S&P has not considered Intime as a
member of the Alibaba group and have not factored in potential
rating uplift from group support.  This is because S&P views
Alibaba as not having control of Intime, given its limited
representation on Intime's board to dictate its strategy of use
of funds.

S&P will assess the group status of Intime to Alibaba and the
likelihood of parent support following the completion of the
transaction.  In S&P's view, the transaction will enable Intime
and Alibaba to further expand their omni-channel strategy in
China and improve customer experience.  Intime operates 29
department stores and 17 shopping malls in China, with its
largest presence in Zhejiang province where Alibaba has its
headquarters.

On Jan. 10, 2017, Alibaba Investment Ltd., a wholly owned
subsidiary of Alibaba Group Holding Ltd., and Intime
International Holdings Ltd., wholly owned by Mr. Shen Guojun,
announced the proposed privatization of Intime for Hong Kong
dollar 19.8 billion.  The proposal is subject to the completion
of regulatory and shareholder approvals.  The transaction is
expected to close before the end of September this year.

S&P aims to resolve the CreditWatch when the transaction is
completed, which could extend beyond S&P's usual three-month
resolution timeframe due to the transaction timetable.

"We will assess the strategic importance of Intime to the overall
group and the likelihood of parent support, including the future
strategy, integration plan, and financial management of the
company after the completion of the transaction," said Ms. Teo.

S&P could raise the rating on Intime by at least one notch
depending on S&P's assessment of group support.  The factors S&P
will consider will include the likelihood for the company to
receive financial support, long-term commitments, or incentives
from the group, and the importance of its role to the group's
long-term strategy.

S&P could affirm the rating if it considers Intime is not
sufficiently material to Alibaba's strategy and is unlikely to
receive significant support from Alibaba following the
transaction.  S&P could also affirm the rating if the transaction
does not proceed and Alibaba fails to become the controlling
shareholder of the company.


PARKSON RETAIL: Fitch Lowers IDR to 'B-' on Deteriorating Profit
----------------------------------------------------------------
Fitch Ratings has downgraded China-based department store
operator Parkson Retail Group Limited's Long-Term Issuer Default
Rating (IDR) and senior unsecured rating to 'B-' from 'B'.  The
Outlook on the IDR is Negative.  Fitch has maintained a Recovery
Rating of 'RR4' on the senior unsecured rating.

The downgrade reflects the company's weaker operating
performance, while the Negative Outlook reflects uncertainty over
its ability to refinance or repay its USD500 mil. (CNY3.2 bil.)
bonds maturing in May 2018.

                        KEY RATING DRIVERS

Further Decline in Profitability: Parkson's fundamentals have
deteriorated over the past few years due to weaker consumer
spending and competition from other retail formats, such as e-
commerce and shopping malls.  The company's same-store sales
continued to decline, by 10% yoy in 1H16 and 7% yoy in 3Q16.  The
increase in sales from new businesses like direct sales partly
offset weakness in concessionaire sales.  However, these new
initiatives are likely to make only a marginal contribution to
earnings over the next one to two years because they account for
only 10% of Parkson's gross sales proceeds and face tough
competition.

Parkson's heavy reliance on rented properties has exacerbated the
impact of the sales decline on margins.  EBITDA fell to 2% of
gross sales proceeds in 2015 and Fitch expects it to be 1%-2% in
2016-19, compared with EBITDA margins in the low teens for most
Fitch-rated department store operators.

High Leverage: Parkson raised CNY1.9 bil. in net proceeds by
selling a store in Beijing in December 2016.  After adjusting for
operating leases, customer prepayments and 85% of trade payables,
Fitch expects payables-adjusted FFO net leverage to fall to 8.1x
by end-2016, from 9.1x at end-2015.  While this bolsters the
company's readily available cash in 2016, Fitch expects further
deterioration in profitability to worsen leverage from 2017.

Addressing Bond Maturity Critical: Parkson's short-term liquidity
position is adequate, with over CNY2bn of cash and principal
guaranteed investments at end-June 2016 and the CNY1.9 bil. net
proceeds from the store sale in 2H16.  However, its deteriorating
profitability and increasing leverage creates uncertainty over
its USD500m bonds maturing in May 2018.  The company is
considering its options to repay or refinance the bonds, but if
no financing plans materialize in 1H17 liquidity risk will
increase.

Share Buybacks Continue: Parkson has been repurchasing shares
through the Hong Kong Stock Exchange since 2013.  The company has
bought back more than 6% of total shares outstanding using cash
over the past four years and has already spent approximately
CNY30m in 2016.  Fitch believes the share buybacks are
incrementally negative for Parkson's credit profile, given its
weak FFO generation and negative FCF, as they further reduce
readily available cash on the balance sheet.

                        DERIVATION SUMMARY

Parkson generally compares poorly to peers on most comparative
financial metrics.  Its business profile has been hurt by weaker
consumer spending and competition from other retail formats and
its profitability has been negatively affected by a high
proportion of rented properties.  Its financial profile is also
weaker than peers, with lower coverage and higher leverage
ratios. No Country Ceiling, parent/subsidiary or operating
environment aspects impact the rating.

                         KEY ASSUMPTIONS

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

   -- Gross sales proceeds declining by 10% in 2016 and declining
      at a low-single-digit rate annually for 2017-2019
   -- EBITDA margin relative to operating revenue of 4%-6% in
      2016-2019 (1%-2% relative to gross sales proceeds in 2016-
      2019)
   -- Commission rate of 17.1% for concessionaire sales in 2016
      and 17.2% in 2017-2019, versus 17.2% in 2015 and 17.0% in
      1H16
   -- CNY500 mil. capex in 2016 and CNY300 mil. per year
      thereafter
   -- CNY27 mil. paid out in dividends annually (equivalent to
      final dividend paid in 2014-2015; no dividend paid in 1H16)

                        RATING SENSITIVITIES

Positive: The Outlook may be revised to Stable if the USD500 mil.
bonds due in 2018 are refinanced or there is sufficient
fundraising or asset sales to repay the bonds.  In addition,
positive rating action will be considered if the FFO fixed-charge
coverage ratio is sustained comfortably above 1.0x.

Negative rating action will be taken if Parkson fails to address
the 2018 bond maturity by mid-2017.

                              LIQUIDITY

As of June 30, 2016, Parkson had over CNY2.6 bil. of cash and
principal guaranteed investments, down from about CNY4 bil. at
end-2014.  Liquidity is not an issue for now as there is not much
debt maturing in 2017 and the company raised CNY1.9 bil. by
selling a Beijing property in December 2016.

However, the USD500 mil. bonds will mature in May 2018.  If the
company cannot address the bond maturity, liquidity risk will
increase.

In accordance with Fitch's policies, the issuer appealed and
provided additional information to Fitch that resulted in a
rating action which is different than the original rating
committee outcome


REWARD SCIENCE: Moody's Assigns First Time B1 Corp. Family Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned a first-time B1 corporate
family rating to Reward Science and Technology Industry Group
Co., Ltd.

At the same time, Moody's has assigned a provisional (P)B1 rating
to the proposed senior notes, which will be issued by Reward
International Investment Limited, and guaranteed by Reward. The
proceeds will be used for the acquisition of Panrosa Enterprises
Inc. (unrated), capital expenditures, and general corporate
purposes.

The ratings outlook is stable.

The provisional status of the note rating will be removed once
Reward has completed the issuance upon satisfactory terms and
conditions, including proper registration with the State
Administration of Foreign Exchange in China (Aa3 negative).

RATINGS RATIONALE

"Reward's B1 rating reflects its vertically integrated dairy
supply chain which helps to ensure product safety, the increasing
level of national penetration for its cleaning products, steady
operating cash flow generation, and its improving financial
structure," says Gloria Tsuen, a Moody's Vice President and
Senior Analyst.

Founded in 1995, Reward operates mainly in two consumer product
segments in China, dairy and other food products, and daily
consumer products, mainly cleaning supplies. The revenue split
was 63% and 34% respectively in 2015.

As an established dairy producer nationally, Reward is a major
industrial milk powder supplier, with key customers such as
Hangzhou Wahaha Group Co., Ltd. (unrated), Kraft Heinz Foods
Company (Baa3 stable), Bright Food (Group) Co., Ltd. (Baa3
negative), and Inner Mongolia Yili Industrial Group Co Ltd
(unrated).

It also entered the consumer milk powder market in 2015 and is
investing in production and marketing to grow its presence in
that segment.

Reward maintains its product safety -- which is particularly
important in the Chinese dairy market -- through its integrated
raw milk supply chain. It has access to 1,240 sq.km of grasslands
in Hulunbuir, Inner Mongolia, and it has its own feed factory,
dairy farms, and milk production facilities.

Reward also manufactures household cleaning supplies, such as
laundry detergent and dishwashing liquid. The Reward brand is
known especially in the Beijing area where it is based, and the
company is deepening and widening its sales coverage by
penetrating lower-tier cities and expanding its online presence.

It is also acquiring US-based Panrosa to enter the mid- to high-
end household and personal care segments.

Reward generates steady operating cash flows. Adjusted funds from
operations were around RMB900 million annually in 2014 and 2015,
and Moody's expects it to increase to around RMB1.1 billion in
2016 and RMB1.2 billion in 2017.

The company has made no dividend payouts, and has a high adjusted
retained cash flow (RCF)/net debt ratio that Moody's estimates
will be around 30% in 2017 and 2018. These levels are high for
the company's B1 rating level.

Reward has improved its financing structure. It used to rely
heavily on short-term debt financing, which represented over 90%
of total reported debt in 2013 and 2014. However, as its access
to the domestic bond market has improved, it has increasingly
replaced short-term debt with long-term debt. The proportion of
short-term debt had fallen to 40% of total debt as of end-
September 2016.

"At the same time, Reward's rating is constrained by the
company's small size and limited market share in cleaning
products in China, its new entry into the highly-competitive and
highly-regulated infant milk formula market, execution risks and
investment needs from a growth-driven business plan, and high
ownership concentration," adds Tsuen, also the Lead Analyst for
Reward.

Reward is modestly sized with around $1 billion in revenue in the
12 months to September 2016, and its market shares in daily
consumer products are limited.

In addition, it is relatively new to overseas acquisitions, and
its domestic business plan also has execution risks. In
particular, the infant milk formula market is highly regulated
and highly competitive with the strong presences of both foreign
and domestic brands.

However, some of the risks can be mitigated, such as by the
company's established relationships with retailers and
wholesalers, which can help it introduce new products and enter
adjacent product categories.

Its product diversification into teenager and adult milk powder,
as well as soy milk powder, also reduces the company's dependence
on infant milk formula.

Reward's capital expenditures -- mainly for the construction of
new production plants for dairy, cleaning and personal care
products -- will be higher in the next few years at over RMB1
billion annually compared with a range of RMB200 million to
RMB500 million from 2012 to 2014.

However, the size and timing of the spending can be adjusted to
match overall sales increases and to manage financial risks.

The rating also takes into consideration Reward's high level of
ownership concentration. It is a private company that is owned
96% by its founder/chairman and his family.

Moody's estimates that Reward's leverage -- as measured by
adjusted debt/EBITDA -- will be around 4.9x in 2016 due to
prefunding. Moody's expects that the company will reduce its debt
in 2017, and an increase in earnings should also help lower
leverage to around 4.3x in 2017 and below 4.0x in 2018.

Reward's liquidity is adequate. Its RMB4.9 billion in cash at
end-September 2016 and projected cash flow from operations of
around RMB700 million over the next 12 months can more than cover
its short-term debt and notes payable totaling RMB2.7 billion, as
well as capex and the US Panrosa acquisition totaling around
RMB2.4 billion.

Reward's bond rating is not notched down for subordination, as
Moody's expects its secured and subsidiary debt level to remain
below 15% of total assets.

The stable rating outlook reflects Moody's expectation that
Reward will (1) become established as a solid player in the
consumer milk powder market; (2) continue to gain national market
share in cleaning products; (3) maintain solid margins and cash
flows; and (4) maintain access to the domestic capital markets.

Given its modest size and the execution risks associated with its
business plans, an upgrade is unlikely in the near term.

Nevertheless, upward rating pressure could arise if Reward: (1)
starts becoming a significant player in the consumer milk powder
market; (2) demonstrates a strongly improved market share in
cleaning products; (3) establishes a successful M&A track record,
starting with Panrosa; and (4) grows in scale, while maintaining
solid credit metrics, including an adjusted debt/EBITDA below
3.0x.

On the other hand, downward rating pressure could arise if: (1)
Reward's operational performance or liquidity weakens, which
could be the result, for example, of competition, product safety
or regulatory issues, as well as the execution of its business
plan or M&A strategy; (2) the company fails to execute its plan
to reduce leverage with cash and increased cash flows; or (3) it
fails to maintain sound corporate governance.

Credit metrics indicative of downgrade pressure include an
adjusted EBIT margin falling below 10% and adjusted debt/EBITDA
rising above 4.5x on a sustained basis.

Headquartered in Beijing, Reward Science and Technology Industry
Group Co., Ltd. engages in the production and marketing of dairy
and other food products (63% of total revenue in 2015), as well
as daily consumer products (34%), and other businesses (leasing
of commercial property and hotels; 3%). It generated RMB5.5
billion in revenue in 2015. It is a private company which is 96%-
owned by its founder and chairman, Mr. Hu Keqin, and his family.



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H O N G  K O N G
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IMPERIAL PACIFIC: Moody's Lowers Corp. Family Rating to B3
----------------------------------------------------------
Moody's Investors Service has downgraded Imperial Pacific
International Holdings Ltd.'s corporate family rating (CFR) to B3
from B2.

At the same time, Moody's has assigned a B2 senior secured rating
to the proposed USD bonds to be issued by Imperial Pacific
International (CNMI), LLC and guaranteed by Imperial Pacific.

The outlook on all ratings is negative.

This rating action concludes the rating review initiated on
November 28, 2016.

The proceeds from the proposed bond issuance will be used to
finance the development of Phase I of the Saipan project. The
project is also referred to as the Grand Mariana, and will
contain a casino and a hotel with 365 rooms.

RATINGS RATIONALE

"The downgrade of Imperial Pacific's CFR reflects the increased
uncertainty over the company's ability to secure sufficient
funding to complete its Grand Marina project, in view of the
delay in the opening of the casino to March 2017," says Kaven
Tsang, a Moody's Vice President and Senior Credit Officer.

"A successful issuance of the proposed bonds will satisfy only
part of Imperial Pacific's funding needs to complete the entire
Grand Mariana project," adds Tsang, also Moody's Lead Analyst for
Imperial Pacific.

The delay in the opening of the casino will weaken the company's
cash flow generation compared to Moody's original expectation,
and make it more difficult for it to raise the necessary funding
to complete the entire Grand Mariana project.

A delay in the completion of the entire Grand Mariana project
could also heighten the risk of cost overruns and a termination
of the company's gaming license.

The former factor could necessitate more debt funding, and raise
the company's debt leverage above the original budget.

A delay will add uncertainty to the company's right to operate in
the gaming business in Saipan, though we note that Imperial
Pacific and the Commonwealth of the Northern Mariana Islands
Lottery Commission have a good working relationship and the
latter has been supportive to the company's projects.

The agreement between the company and the Commission specify
completion of the Grand Mariana must be achieved no later than 24
months after Imperial Pacific's acquisition of the site, or 36
months after the license was granted, or no later than August
2017.

Imperial Pacific plans to invest about USD560 million to develop
the Grand Mariana, with the complex scheduled to open for
business in July 2017. Moody's estimates that the remaining capex
for the project totals around USD280 million.

A successful completion and ramp up of the casino will be key to
Imperial Pacific's financial and liquidity position, because it
will be a major source of cash flow for the company and will
support the construction of the hotel.

Moody's notes that the operating performance of Imperial
Pacific's temporary casino has been on track, generating USD727
million in revenue for the first nine months of 2016.

Moody's also notes that Imperial Pacific's major shareholders
have provided shareholder loans to keep construction going.
However, Moody's sees such shareholder funding as a temporary
solution for the funding shortfall.

Imperial Pacific's B3 CFR continues to reflect its monopoly
status in Saipan's gaming market, the strong gaming revenue
generated by its temporary casino and the cooperative attitude of
Saipan's regulators.

At the same time, the rating is constrained by its short track
record in operating gaming businesses in Saipan, its focus on the
volatile VIP gaming business, and its exposure to the evolving
regulatory environment in Saipan.

The B2 rating on the proposed USD bonds reflects the first lien
on Imperial Pacific's major operating assets, including a first
priority lien over the property of the Grand Mariana project.
This structure means that the bonds rank ahead of other unsecured
claims and indebtedness.

The company will maintain 12 months of interest expenses -- on a
rolling 12-month basis -- in a reserve account for the life of
the bonds.

The negative outlook reflects the company's weak liquidity and
the significant uncertainty over the company's ability to raise
sufficient funding to complete the Grand Mariana project.

The ratings are unlikely to be upgraded in the near term, given
the negative outlook. However, the outlook could revert to stable
if the company (1) raises sufficient long-term funding in the
next 2-3 months to complete the Grand Mariana project on time and
(2) ramps up the project as planned.

On the other hand, the ratings may come under downward pressure
if (1) there is a further delay in the opening of the casino
beyond March 2017; or (2) the company fails to secure sufficient
funding, including operating cash flow and long-term capital, to
complete the entire Grand Mariana project on time, thereby
pressuring its liquidity and increasing the risk of a termination
of its gaming licenses.

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



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


ABC TRANSFORMERS: ICRA Assigns B+ Rating to INR4.7cr LT Loan
------------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B+ on the
INR4.70-crore bank limits of ABC Transformers Private Limited.
ICRA has also assigned its short-term rating of [ICRA]A4 to the
INR2.50-crore non-fund based bank limits of the company. The
outlook on the long-term rating is 'Stable'.

                         Amount
  Facilities          (INR crore)    Ratings
  ----------          -----------    -------
  Fund based-Long-term     4.70      [ICRA]B+ (Stable); assigned
  Non-fund based-Short
  term                     2.50      [ICRA]A4; assigned

Detailed Rationale
The assigned rating is supported by the extensive experience of
ATPL's directors of over two decades in the transformers
manufacturing industry. ICRA notes its reputed client base, which
includes various PSUs and private players. The ratings also take
cognizance of the price variation clause in equipment-supply
contracts, which protects the profit margins from adverse
fluctuations in commodity prices.

The ratings are, however, constrained by ATPL's relatively modest
scale of operations with revenues of INR27.60 crore in FY2016,
and weak financial profile characterised by leveraged capital
structure with gearing at 3.42 times as on March 2016. Coverage
indicators also stand weak at an interest cover of 1.52 times and
NCA/TD of 4% as on the same date. The ratings also take into
account the high working capital intensity of 43% during FY2016
owing to relatively high receivables and inventory requirements.
The presence of large and established players along with low
entry barriers in the transformers segments results in high
competition.
Going forward, the ability of the company to enhance its scale of
operations, while sustaining healthy profitability levels and
effectively managing its working capital requirements will remain
the key rating sensitivities from a credit rating perspective.

Key Rating Drivers
Credit Strengths
* Established track record of promoters for more than two
decades in the transformer manufacturing industry;
* Price variation clause (PVC) in equipment supply contracts
protects profitability margins from adverse cost fluctuations in
commodity prices;
* Established relations with reputed customers provide near term
stability in revenues streams.
Credit Weakness
* Moderate scale of operations, although revenues have been on
an increasing trend;
* Leveraged capital structure with weak coverage indicators as
on March 2016;
* Moderate operating margin in the last few years;
* Stretched liquidity position as reflected by high utilisation
of cash credit limits.

The directors of the company have extensive experience of more
than two decades in transformer manufacturing industry, which has
also aided in steady ramp-up of its operations over the years.
Established relations with reputed customers ensure repeat
orders, and addition to new customers including Bharti Infratel
Limited provides near-term stability in revenues streams.
Furthermore, embedded price escalation clauses in most of the
company's contracts, helps insulate profitability against adverse
price movements.

The challenges for the company arise from its relatively modest
scale of operations, although the revenues have been on an
increasing trend. ATPL's operating income stood at INR27.60 crore
in FY2016, as against INR20.51 crore in FY2015. The capital
structure also stands leveraged on account of majorly debt funded
working-capital, short-term loans, and small net-worth that have
resulted in gearing of 3.42 times as on March 31, 2016. The
short-term loans are scheduled to be repaid by FY2019, thus given
the steady accretion to net-worth and no capex in the near term,
the capital structure is expected to improve. Furthermore,
because of high competition in the industry from domestic as well
as international players, ATPL's scope of margin expansion is
also limited. The operating margin remained moderate, and also
declined from 10.44% in FY2015 to 6.02% in FY2016. The company
has an elongated receivable cycle, thus keeping the operations
working capital intensive. ATPL's stretched liquidity position is
reflected in its almost fully utilised working capital limits.

ABC Transformers Private Limited was incorporated in 1993 by Mr.
GK Bansal, Mr. NK Goyal, Mr. SR Gupta, Mr. KK Bansal and Mr. OP
Goyal for manufacturing, repairing and maintaining transformers.
At present, ATPL is engaged in manufacturing and repairing power
and distribution transformers of up to 100 kVA in 132 kV class.
The product range of ATPL includes transformers for power
generation, transmission and distribution as well as industrial
and special purpose transformers. The company has two
manufacturing plants at Greater Noida in Uttar Pradesh.

In FY2016, ATPL reported an operating income of INR27.60 crore
and a net profit of INR0.29 crore, as against an operating income
of INR20.51 crore and a net profit of INR0.59 crore in the
previous year.


AGRI VENTURE: CARE Assigns B+/A4 Rating to INR5.95cr LT Loan
------------------------------------------------------------
The ratings assigned to the bank facilities of Agri Venture are
constrained on account of its moderate and fluctuating scale of
operations coupled with thin profit margins along with leveraged
capital structure, weak debt indicator and moderate liquidity
position during FY16 (refers to the period April 1 to March 31)
along with intense competitive pressure in the highly fragmented
industry and susceptibility of profit margins to volatility in
raw material price and foreign exchange fluctuation. The ratings,
however, derive benefits from the experience of the proprietor
and various fiscal benefits and incentives from the government.
Agri Venture's ability to increase its scale of operations and
customer base along with improvement in profit margins, liquidity
position, debt service indicators and fluctuation in prices would
be the key rating sensitivity.

                             Amount
   Facilities             (INR crore)   Ratings
   ----------             -----------   -------
   Long-term/Short-term        5.95     CARE B+; Stable/
   Bank Facilities                      CARE A4 Assigned

Agri Venture's total operating income (TOI) witnessed a y-o-y
decline of about 42% due to agrocommodity nature of the product
whose production is dependent on monsoon and other seasonal
factors and decrease in price of sesame seeds in domestic and
global market by 40%. PBILDT margin has improved during the year
(2.28% vis-a-vis 1.51%) mainly on account of lower cost of traded
goods sold. Agri Venture had weak debt coverage indicator marked
by total debt to GCA of 27.72 times and overall gearing of 2.52
times as on March 31, 2016.

Agri Venture revenue is constrained by the fluctuations in the
raw material prices which are seasonal in nature as they have
different harvesting period and their production highly depends
upon the monsoon condition, weather conditions, storage facility,
yield for the year, availability of the product, domestic as well
as international demand supply condition, export norms and
policies.

Agri venture is eligible for 1% of Free on board (FOB) as export
incentive. Hence, the company gained export incentives worth
INR0.42 crore in FY16. Also, under Focus Product Scheme (FPS) it
gets license worth @ 3% of FOB value of export. Hence such
schemes and benefits give a boost to such industries.

The proprietor, Mr. Chirag Mahesh Sangani is a post graduate by
qualification, has an experience of more than one decade.
Experience of the proprietor and focus on quality has helped it
to maintain strong relationship with the customers and suppliers.
By the experience in the same line of business, it will help the
company in understanding the supply and demand mechanism.


AMRITESH INDUSTRIES: CARE Cuts Rating on INR10cr LT Loan to B+
--------------------------------------------------------------
The revision in the ratings assigned to the bank facilities of
Amritesh Industries Private Limited (AIPL) is on account of
decline in turnover & net loss incurred during FY16 (refers to
the period April 1 to March 31), deterioration in the capital
structure & operating cycle and weak debt service coverage
indicators.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      10        CARE B+; Stable
                                            Revised from
                                            CARE BB-

   Short-term Bank Facilities       5       CARE A4 Reaffirmed

Furthermore, the ratings continue to remain constrained by its
relatively small scale of operations, volatility in raw material
price, competition due to tender-driven nature of business,
substantial dependence on the fortunes of the aluminium industry
for its growth and high customer concentration. The ratings,
however, derive strength from its experienced promoters &
management and reputed client base.

Going forward, the ability to scale up the level of operation
with improvement in profitability margins and ability to manage
working capital effectively will be the key rating sensitivities.
The turnover of AIPL declined to INR31.43 crore in FY16 from
INR41.88 crore in FY15 and the company incurred net loss of
INR0.38 crore in FY16. The capital structure of the company
deteriorated as on March 31, 2016, with the overall gearing ratio
remaining at 9.43x as on March 31, 2016, as against 6.13x as on
March 31, 2015. The operating cycle of the company also
deteriorated from 70 days in FY15 to 107 days in FY16.
Furthermore, the debt service coverage indicators of AIPL
remained weak with the interest coverage ratio remaining at 1.07x
and the total debt to GCA remaining at 131.72x during FY16.

The total operating income (TOI) declined by 24.95% during FY16
vis-a-vis FY15 and the same remained relatively low at INR31.43
crore. The total capital employed was INR18.37 crore as on March
31, 2016. Furthermore, till 8MFY17, AIPL has achieved total
operating income of INR20.66 crore.

Accordingly, the scale of operations remained low.

Raw material expense, the major cost driver, constituted around
93% of cost of sales in the last three years. Raw petroleum coke
(RPC), the end product of crude oil, is the only raw material
required for producing CPC. Considering the volatility associated
with RPC prices and the limited ability of the company to pass on
the increase in RPC prices to end customers, exposes the
company's operating margins to fluctuations.

AIPL operates in an industry characterised by the presence of
limited players in the organised sector and few unorganised
players. AIPL being a small player faces stiff competition from
both organized and unorganised players as the organised players
enjoy benefit of strategic location by virtue of their
close proximity to the oil refineries and higher economies of
scale. Furthermore, the tender-driven nature of business limits
the upside in profitability to some extent and adds to volatility
in revenues.

CPC is used by aluminium industry for smelting (aluminium
industry accounts for 75% of the consumption of CPC) and
accordingly, the fortune of AIPL's business is substantially
dependent on
the aluminium industry, which is cyclical.

The contribution from top five customers increased from 90% in
FY15 to 95% in FY16 and continues to remain concentrated.

AIPL has been acquired by Mr. Rakesh Himatsingka in 2005, the co-
founder of India Carbon Limited, having an established foothold
in the CPC industry. Mr. Himatsingka enjoys strong networking
skills
and has an ability to mobilise necessary support for the company.
Therefore, AIPL is likely to benefit from the strong patronage.

AIPL caters to leading and reputed PSUs as well as private
players in the aluminium and steel sector in India.

AIPL was incorporated in 1987 as Zenith Carbon Private Limited.
Since inception, the company is engaged in the manufacturing of
calcined petroleum coke (CPC) at its plant located at Angul,
Orissa (with initial installed capacity - 3,000 MTPA). Over the
years, the company gradually expanded its CPC capacity to 24,000
MTPA and has setup a facility for manufacturing electrode carbon
paste (capacity - 2,400 MTPA). The manufacturing facility of the
company is located at Angul, Orissa.

In 2005, the company, was acquired by the present promoter and
subsequently in 2008, it was rechristened to its present name.
The company has been awarded an ancillary status by National
Aluminium Co. Ltd. (NALCO) for supply of CPC.

During FY16, the company reported a total operating income of
INR31.43 crore (FY15: INR41.88 crore) and net loss of INR0.38
crore (in FY15: Net loss of INR1.41 crore). Furthermore, the
company has achieved a total operating income of INR20.66 crore
during 8MFY17 (refers to the period April 1 to November 30).


API ASSOCIATES: ICRA Reaffirms 'D' Rating on INR7cr LT Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]D for the
INR7.00 crore fund based limits and has also reaffirmed the short
term rating of [ICRA]D for the INR3.00 crore unallocated bank
line limits of API Associates Private Limited.

                      Amount
  Facilities        (INR crore)     Ratings
  ----------        -----------     -------
  Long Term, Fund
  Based Limits           7.00       [ICRA]D; reaffirmed

  Short Term,
  Unallocated Limits     3.00       [ICRA]D; assigned

Rationale
The reaffirmation of ratings continues to take into account by
recent delays in debt servicing by API Associates Private
Limited. ICRA takes note of the firm's declining operating profit
margins and net profit margins. The rating also takes into
account the firm's high creditor days and vulnerability of its
margins to fluctuations in raw material prices. ICRA also takes
cognizance of the firm's long track record of operations in the
footwear business and benefits enjoyed by the firm on account of
being a part of the Action group, which has an established brand
image and a strong distribution network. Going forward, an
improvement in the firm's liquidity position and a sustained
track record of timely debt servicing will be the key rating
sensitivities.

Key rating drivers
Credit Strengths
* Long track record of management in the footwear industry
* Established brand name in the lower and middle income footwear
industry segment
* Well established distribution network
Credit Weakness
* Recent delays in debt servicing.
* Moderate scale of operations of the firm over the years.
* Profitability of the company remains exposed to fluctuations
in raw material prices.
* Weak coverage indicators with interest coverage ratio of 1.17
times in FY2016.

Description of key rating drivers highlighted above:
API is a part of the larger Action group that has been in the
footwear business for more than three decades. The company was
incorporated in 1986 and is engaged in manufacturing of PVC
footwear.

There have been recent delays in debt servicing by AAPL. The
operating margins have witnessed decline in FY2016 due to higher
cost of raw materials which were not completely passed on to the
customers. The company reported OPM of 5.95% in FY2016 as against
OPM of 9.47% in FY2015. The creditor days for APIA are normally
high as it enjoys favourable credit terms from its group
companies from which it buys the plastic compounds. However,
substantial increase in the creditor days has resulted in
negative working capital intensity of -30% as on March 31, 2016.

API is a part of Mr. Anil Aggarwal faction within the larger
Action group that has been in the footwear business for more than
three decades. The company was incorporated in 1986 and is
engaged in manufacturing of PVC footwear, it has set up its
manufacturing facilities in Delhi.

APIA reported an OI of INR22.28 crore in FY2016 as against 19.05
crore in FY2015 and a net profit of INR0.06 crore in FY2016 as
against a net profit of INR0.11 crore in FY2015.


ARPEE ENERGY: CARE Reaffirms B+ Rating on INR7cr Long Term Loan
---------------------------------------------------------------
The rating assigned to the bank facility of Arpee Energy Minerals
Private Limited (AEPL) continues to be constrained by its small
scale of operations with low profit margins, volatility in prices
of traded goods, working capital intensive nature of operations
and intensely competitive nature of the industry. However, the
aforesaid constraints are partially offset by the company's
experienced management team, satisfactory track record of its
operations and satisfactory demand outlook of the product.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities       7        CARE B+; Stable
                                            Reaffirmed

Going forward, the ability of the company to increase its scale
of operations with improvement in profitability and effective
management of working capital would be the key rating
sensitivities.

Outlook: Stable

AEPL scale of operations remained modest as compared to its peers
with a PAT of INR0.21 crore on total operating income of INR49.42
crore during FY16. Furthermore, total capital employed of the
company, though increased as on March 31, 2016, remained low at
INR13.87 crore as against INR13.51 crore as on March 31, 2015.

Coal is being used as primary fuel and energy source for most of
the manufacturing and power industries. Thus, the industry enjoys
large consumption across the country. The demand has been
driven by the rapidly growing industrialization and urbanization
throughout the country. The company primarily sells its products
to industrial states like Jharkhand, West Bengal etc.

Mr Praveen Kumar Agarwal aged about 60 years, having around four
decades of experience in coal trading activities. Mr. Agarwal
looks after the overall management of the company. Further Mr
Agarwal is supported by Mr. Raman Mehra aged about 62 years, who
is also having four decades of experience in existing line of
business. The company also has a successful track record of
operation for more than a decade.

AEPL is a relatively small player in coal trading business with
revenue of INR49.42 crore in FY16 (41.10 crore in FY15).
Furthermore, the total capital employed was also modest at INR
13.87 crore as on March 31, 2016. The small scale restricts the
financial flexibility of the company in times of stress.
This apart, the profitability of the company has been low over
the years due to trading nature of business.

AEPL purchases coal from domestic suppliers, depending on receipt
of orders and inventory requirement for trading on stock & sale
basis. However, the management has stated that one-fourth of the
sales is made based on purchase order from their customer,
insulating the company from price volatility to a certain extent.

The operations of the company are working capital intensive as
reflected by elongated operating cycle of 63 days in FY16 (FY15:
63 days). The funds have mainly remained blocked in debtors with
a high average collection period for the company. Furthermore,
the company has allowed a large credit period to its customers
due to its low bargaining power and high competition in the
segment. The average utilization of fund based limit was around
98% during last twelve months ended in November 2016.

The company is into trading of coal which is highly fragmented
and competitive in nature due to low entry barriers. Further all
the entities trading the same products with a little product
differentiation resulting into price driven sales. Intense
competition restricts the pricing flexibility of the company.

Arpee Energy Minerals Private Limited (AEPL) was incorporated in
March 2006 by Mr. Praveen Kumar Agarwal and Mr. Raman Mehra. The
company is engaged in the business of coal trading. The company
procures its trading material from Central coalfields limited,
Bihar foundry & castings ltd etc. and sells the same to various
industries like steel, power etc. The day-to-day affairs of the
company are looked after by Mr. Praveen Kumar Agarwal (Director)
with adequate support from other director- Mr. Raman Mehra and a
team of experienced personnel.

In FY16 (refers to the period April 1 to March 31), the company
achieved a total operating income of INR49.42 crore and PAT of
INR0.21 crore as against a total operating income of INR41.10
crore and PAT of INR0.16 crore in FY15. The company has achieved
a turnover of INR34.50 crore during H1FY17.


AYUSH TEXLENE: ICRA Reaffirms B- Rating on INR5cr Loan
------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B- for the
INR5.00 crore fund based limits of Ayush Texlene Limited. ICRA
has also assigned a 'Stable' outlook to the long-term rating.

                         Amount
  Facilities          (INR crore)     Ratings
  ----------          -----------     -------
  Fund based limits        5.00       [ICRA]B- Reaffirmed;
                                      'Stable' outlook assigned

Rationale
The rating reaffirmation reflects weak financial risk profile of
ATL, as characterised by thin profitability and weak coverage
indicators due to the low value additive nature of business. In-
addition, profitability remains vulnerable to the highly volatile
forex market due to the lack of active hedging activities. ICRA
also takes note of the stiff competition within the industry,
which in turn limits the pricing flexibility of the company. The
rating, however, positively takes into account the long-standing
experience of the promoters in the textile industry, comfortable
capital structure as well as location advantage achieved by the
company due to its presence in Surat which is a textile hub.
The company is expected to report a strong revenue growth in
FY2017 backed by increase in trading volumes. However, the
profitability indicators are expected to remain subdued due to
low value added nature of operations as well as the competitive
pressures in the textile industry. Going forward, the ability of
the company to improve its profitability and efficiently manage
working capital requirements would remain important from a credit
perspective.

Key rating drivers
Credit Strengths
* Long experience of the promoters in the textile industry;
* Locational advantage, on account of presence in Surat which is
a major textile hub of Gujarat;
* Favourable capital structure.
Credit Weakness
* Low value additive nature of the business as is typical in the
business of trading resulting in weak profitability and return
indicators
* Vulnerability of profitability to foreign exchange rate
movements
* Industry characterized by strong competition from unorganized
players
* Weak interest coverage indicators and debt protection metrics

ATL has its offices and warehouse facility in Surat, which is the
major textile manufacturing hub in Gujarat. Due to the same,
requisite goods for trading activities are easily available in
timely manner and the company gets exposure to large and strong
customer base, which provides an opportunity to increase its
market share within the industry. Further, relatively high net
worth and repayment of unsecured loans has led to improvement in
capital structure as indicated by decline of gearing levels from
~0.99 times as on March 31, 2015 to ~0.77 times as on March 31,
2016. However, profitability of the company remained weak due to
low value added trading operations and stiff competition within
market due to low entry barriers. OPM of the company remained low
and further declined from ~1.44% in FY2015 to ~1.17% in FY2016
due to lower sales realisation. Further, NPM of the company
declined significantly from ~0.15% in FY2015 to ~0.03% in FY2016
majorly due to loss on sale of investments and higher provision
of income tax in FY2016. Weak profitability of the company lead
to lower coverage indicators as indicated by OPBDITA/ Interest &
Finance charges and DSCR of ~1.31 times and ~0.69 times
respectively as on March 31, 2016. Further, debt protection
metrics as indicated by NCA/Total debt remained weak at ~2% - 3%
during last few years. Overall, rating reaffirmation takes into
consideration continued weak financial profile of the company.

Analytical approach:
To arrive at the ratings ICRA has taken into account the
standalone financials of the firm along with key operational
developments in the recent past.


BARDHAMAN AGRO: CARE Hikes Rating on INR7.05cr LT Loan to BB-
-------------------------------------------------------------
The revision in the ratings assigned to the bank facilities of
Bardhaman Agro Pvt Ltd (BAPL) takes into cognizance improvement
in the financial risk profile in FY16 (refers to the period April
01 to March 31) vis-a-vis FY15 marked by improvement in total
operating income, gross cash accruals, capital structure and
working capital cycle.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      7.05      CARE BB-;Stable
                                            Revised from CARE B

   Short-term Bank Facilities     0.17      CARE A4 Reaffirmed

However, the ratings continue to remain constrained by its small
scale of operations with low net worth base & thin net profit
margin, high degree of competition resulting from fragmented
nature of the edible oil industry along with strong threat from a
number of substitute products, being an agri-based commodity, the
prospects are subject to the vagaries of nature, low level of
awareness amongst the consumer fraternity, adulteration risk and
working capital intensive nature of its operations. The ratings,
however, derive strength from its experienced promoters in agro-
based industry and strategic location of the unit in the paddy
growing region.

Going forward, the ability to scale up the level of operation
with improvement in profitability margins and ability to manage
working capital effectively will be the key rating sensitivities.
The total operating income (TOI) increased from INR34.92 crore in
FY15 to INR48.56 crore in FY16. The gross cash accruals (GCA)
also increased from INR1.36 crore in FY15 to INR1.43 crore in
FY16.

Furthermore, the capital structure of BAPL also improved with
both the long-term debt equity ratio and the overall gearing
ratio improving to 0.52x and 1.70x as on March 31, 2016 as
against 0.81x and 1.77x, respectively, as on March 31, 2015. The
working capital cycle also improved from 48 days in FY15 to 42
days in FY16.

The total operating income (TOI) increased substantially during
FY15 over FY14 on the back of higher demand of the manufactured
products after the company forayed into manufacturing business
since December 2013. The same increased by 39.06% during FY16
vis-a-vis FY15; however, the same remained relatively low at
INR48.56 crore. The total capital employed was INR13.75 crore as
on March 31, 2016. Furthermore, till 8MFY17 BAPL has achieved
total operating income of INR32.58 crore.

Accordingly, the scale of operations remained low. The net worth
base of the company also remained low at INR5.09 crore as on
March 31, 2016. Furthermore, the profitability margin of the
entity also
remained low with both the PBILDT margin and the PAT margin
remaining at 4.53% and 1.51%, respectively, during FY16.

Low barriers to entry have resulted in highly fragmented nature
of the edible oil industry. Furthermore, despite having better
health benefits and priced much less than any other edible oils,
Rice bran oil industry faces tough competition because of the
presence of a number of close substitute products in market.

Rice bran, the major input for RBO is obtained from paddy, an
agri produce. Given the lack of adequate irrigation facilities,
the cultivated amount of paddy highly depends upon monsoons and
thus, is subjected to vagaries of nature. As a result, raw
material availability is uncertain.

RBO being a new product, the level of awareness is low in the
country with little efforts undertaken by various related
parties. However, various companies have, off late, commenced
using RBO as a component in certain hybrid brands introduced by
them which have gained quicker acceptability in the market.

Adulteration of rice bran oil during extraction process is an
acute problem for the edible oil industry.  Rice bran oil is
often adulterated with cheaper products like cotton seed oil, soy
bean oil, and palm oil for monetary gains. But adding adulterated
components for which the products do not conform to
the requirement and specifications will create negative impacts
among the consumers, and ultimately hampers the profitability of
the players operating in the industry.

The working capital cycle of BAPL remained moderately intensive.
The average utilisation of cash credit limit of the company
remained moderate at about 72% during the past twelve months
ending November 2016.

Mr. SK Jakir Ali (Managing Director, Graduate, and 56 years) and
Mr. Mirza Amanat Ali (Director, Graduate, and 56 years) have rich
experience in handling agro based business (Rice mill) for about
26 years.

Among the rice producing states in India, West Bengal is by far
the most important producer and ranks the leading position. The
major rice producing districts in the state are Bardhaman,
Medinipur, North and South 24 Parganas. Being located in
Bardhhaman, BAPL enjoys proximity to major ricegrowing area.

Analytical Approach: Standalone

BAPL was incorporated in the year 2009 by Mr. SK Jakir Ali and
Mr. Mirza Amanat Ali of Burdwan, West Bengal. Initially, the
company had been in trading business of rice bran oil. The
company wound up its trading segment and forayed into
manufacturing business of rice bran oil (RBO) and de-oiled rice
bran since December 2013. BAPL sells crude rice bran oil directly
to refineries of West Bengal and deoiled rice bran, which is a
by-product of rice bran through commission agents. The de-oiled
rice bran is marketed in the states like Andhra Pradesh,
Telangana, Madhya Pradesh, and West Bengal. BAPL procures its'
main raw-material (rice bran) directly from various rice millers
of Bihar, Jharkhand, and
West Bengal. The solvent extraction activity is carried out at
its' sole plant located in Daichanda, Burdwan, which has an
installed extraction capacity of 48600 MTPA. 3 Credit Analysis &
Research Limited

During FY16, the company reported a total operating income of
INR48.56 crore (FY15: INR34.92 crore) and PAT of INR0.74 crore
(in FY15: INR0.61 crore). Furthermore, the company has achieved a
total operating income of INR 32.58 crore during 8MFY17 (refers
to the period April 1 to November 30).


BHARATI DEFENCE: Edelweiss ARC to File Insolvency Case vs. Firm
---------------------------------------------------------------
livemint.com reports that Edelweiss Asset Reconstruction Co.
(ARC) Ltd is planning to file an insolvency case against Bharati
Defence and Infrastructure Ltd in the National Company Law
Tribunal (NCLT) to pre-empt winding-up petitions by unsecured
creditors, said two people familiar with the matter, including a
senior official at the ARC.

According to the report, Edelweiss's move is in response to the
dissolution of the Board for Industrial and Financial
Restructuring, which makes Bharati vulnerable to winding-up
petitions from unsecured lenders.

"Under BIFR, a firm remains protected against any legal
proceedings. After the introduction of NCLT, BIFR remains
dissolved. As of now, no creditors to the firm have filed a
winding-up plea, but we don't want to take chances," said the
Edelweiss official cited earlier on condition of anonymity,
livemint.com relays.

livemint.com says the ARC is currently creating a debt
restructuring package that will be submitted to the credit
committee once the insolvency case is admitted by NCLT. Under the
Insolvency and Bankruptcy Code, once a restructuring plan is
submitted to the credit panel (which consists of creditors other
than those involved in the case), at least 75% of this panel
needs to approve the plan. Then, insolvency professionals are
appointed to oversee implementation of the package, the report
notes.

This is the second such case where lenders have taken recourse to
the new bankruptcy law to deal with a stressed firm, the report
states. Last month, ICICI Bank Ltd filed an insolvency case
against Pune-based steel products maker Innoventive Industries
Ltd. The next hearing in the case is today, January 16.

According to livemint.com, Edelweiss ARC had taken control of 75%
debt of Bharati (formerly known as Bharati Shipyard) after banks
sold their loans in June 2014. The asset reconstruction firm has
been making efforts to revive the shipyard with an estimated debt
of Rs8,500 crore. In May, Mint reported Bharati planned to hive
off its Goa-based defence shipyard Pinky Shipyard Ltd and bring
in an international defence shipyard as an equity partner.

livemint.com notes that Bharati's troubles started after its 2010
acquisition of Great Offshore Ltd, a Mumbai-based offshore
oilfield services provider, for over Rs700 crore. The acquisition
pushed the firm deep into debt. According to the Edelweiss ARC
official quoted above, efforts at turning around the firm still
remain and the NCLT process is expected to help speed things up.

"This could be considered a positive step for companies that are
honest about finding a resolution to their financial stress. For
others who were just in BIFR for the legal protection, this law
can prove to be a good motivator to go and effect some change.
Else they run the risk of losing control of losing their company
and possible liquidation" said a stressed asset professional,
speaking on conditions of anonymity, livemint.com relays.

Bharati Defence and Infrastructure Limited engages in the design
and construction of sea-going, coastal, harbour, and inland
crafts and vessels. The Company offers inland cargo barges, deep-
sea trawlers and dredgers, tractor tugs, cargo ships, tankers,
and other support vessels required for the offshore industry.
Bharati Defence and Infrastructure also provides ship repair
services.


CARRYCON INDIA: ICRA Reaffirms B+ Rating on INR6.5cr Loan
---------------------------------------------------------
ICRA has reaffirmed its rating on the INR10.10-crore (enhanced
from INR9.80 crore) bank facilities of Carrycon India Limited at
ICRA]B+. The outlook on the long term rating is 'Stable'.

                      Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Non Fund-Based
  Limits                 3.30     [ICRA]B+(Stable) Reaffirmed

  Fund-Based Limits      6.50     [ICRA]B+(Stable) Reaffirmed

  Proposed Fund-Based
  Limits                 0.30     [ICRA]B+(Stable) Reaffirmed

Rationale
ICRA's rating continues to be constrained by CIL's high working
capital intensity on account of stretched receivables and large
work-in-progress inventory. Consequently, CIL's liquidity
position remains under pressure as reflected in the fully
utilised working capital limits. This apart, CIL's cash accruals
continue to remain stagnant, given the limited scale of
operations and modest margins caused by execution delays in some
projects, absence of price escalation clause and high
competition.

However, the rating positively factors in the medium-term revenue
visibility by virtue of the company's healthy order book, which
stood at INR23.91 crore as of Oct 31, 2016, resulting in an Order
Book/Operating Income ratio of 1.42x. The rating continues to be
supported by CIL's long track record in the telecom
infrastructure support business, experienced promoters, and its
association with reputed clients such as Delhi Metro Rail
Corporation (DMRC) and Bharat Sanchar Nigam Ltd (BSNL).

The company's ability to improve its liquidity position while
executing its order book profitably will be the key rating
sensitivity factor. The company's ability to manage funding for
bidding and executing orders will also be a determinant of its
ability to scale up operations.

Key Rating Drivers
Credit Strengths
* Promoter's experience in the telecom infrastructure and
support businesses
* Strong relationship with clients result in repeat orders
* Healthy revenue visibility backed by expected repeat orders;
pending order book of INR23.91 crore with the OB/OI ratio of
1.42x as on Oct 31, 2016
Credit Weakness
* Absence of price escalation clause adversely impacts the
profitability
* High working capital requirement of the business puts pressure
on the company's liquidity position, leading to full utilisation
of CC limits.
* Small scale of operations limits the company's ability to
independently bid for larger projects
* Highly competitive business with presence of multiple small
players

Description of key rating drivers highlighted:

CIL is a small-sized contractor with operating income of ~Rs 16-
17 crore. Small scale of operations limits the ability of the
company to independently bid for larger projects. CIL's long
track record in the telecom infrastructure support business.
Additionally, experienced promoters, and their association with
reputed clients such as Delhi Metro Rail Corporation (DMRC) and
Bharat Sanchar Nigam Ltd (BSNL) have resulted in new and repeat
orders. Revenue visibility in the medium term remains healthy,
given the healthy pending order book and expected repeat orders.
However, delay in some of the projects has adversely impacted
profitability, which is further accentuated by the absence of
price escalation clause. High working capital requirement of the
business puts pressure on the company's liquidity position,
leading to full utilisation of cash credit limits. CIL has stuck
off debt worth ~Rs 2.2 crore from MTNL. The ability of the
company to secure timely enhancement in working capital limits
would be crucial to support the growth in turnover.

Incorporated in 1995, CIL is promoted by Mr. G. D. Rao, Mr.
Prakash Bhanu, and Mrs. Sadhana Rao. CIL provides civil
contractor/engineering services including telecom infrastructure
support services, telecom network maintenance services, and
installation of telecom towers, water supply, sewerage, de-
silting, trunk sewer lines and civil construction work.

In FY2016, the company reported an operating income (OI) of
INR16.84 crore and a profit after tax (PAT) of INR0.26 crore, as
compared to an OI of INR16.15 crore and a PAT of INR0.29 crore in
FY2015.


CHEEMA SPINTEX: ICRA Reaffirms 'D' Rating on INR48.70cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR48.70
crore fund based limits of Cheema Spintex Limited at [ICRA]D.
ICRA has also reaffirmed the short term rating assigned to the
INR15.00 crore non fund based facilities of CSL at [ICRA]D.

                      Amount
  Facilities        (INR crore)     Ratings
  ----------        -----------     -------
  Long-term fund-
  based limits          48.70       [ICRA]D

  Short-term non-
  fund-based limits     15.00       [ICRA]D

The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with CSL, ICRA has been trying to seek information from the
company so as to undertake a surveillance of the ratings, but
despite repeated requests by ICRA, the company's management has
remained non-cooperative. In the absence of requisite
information, ICRA's Rating Committee has taken a rating view
based on best available information. In line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1, 2016, the
company's rating is now denoted as: "[ICRA]D ISSUER NOT
COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Analytical approach: For arriving at the ratings, ICRA has taken
into account, interalia, ICRA's policy on default recognition.

Incorporated in 1994, CSL was set up as a 100% export oriented
unit by Mr. Harbhajan Singh Cheema and Mr. Hardyal Singh Cheema,
in association with Punjab State Industrial Development
Corporation (PSIDC). The company manufactures combed and carded
cotton yarn in counts ranging from 20s to 30s; and has an
installed capacity of 30,240 spindles. CSL exports its products
mainly to Hong Kong, Taiwan, Bangladesh, China, South Korea,
Singapore, Thailand, Malaysia, and Canada. In 2009-10, due to
erosion of 100% of its net worth, the company had filed an
application with the Board for Industrial and Financial
Reconstruction (BIFR) for declaration of the company as sick
under the Sick Industrial Companies Act (SICA).


DEVANSHI CONSTRUCTION: CARE Assigns B+ Rating to INR10cr LT Loan
----------------------------------------------------------------
The rating assigned to the bank facilities of Devanshi
Construction (DEVANSHI) is constrained on account of its high
project implementation risk and risk related to timely receipt of
advances. The rating is further constrained on account of its
constitution as a partnership firm and its presence in a cyclical
and highly fragmented real estate industry. The rating, however,
continues to derive benefits from the experience of the promoters
in the real estate industry. The ability of DEVANSHI to complete
its on-going project on time without any cost overrun and sale of
its units at envisaged prices along with timely realization of
sales proceeds is the key rating sensitivity.

                             Amount
   Facilities              (INR crore)   Ratings
   ----------              -----------   -------
   Long-term Bank Facilities     10      CARE B+; Stable Assigned

Till November 30, 2016, DEVANSHI has incurred INR10.81 crore i.e.
54% of its total projected cost of INR19.88 crore funded through
INR8.52 crore from term loan, INR1.01 crore from partners'
capital, INR1.28 crore from advances from customer.

DEVANSHI has received booking for 22% of total saleable area (66
shops out of 304 shops) and has received the booking advance of
INR1.28 crore which forms 16% of sales value of booked units
against 54% of cost incurred reflecting lower receipt of advances
against cost incurred and thereby high risk associated with
timely receipt of remaining booking advances remains crucial.

DEVANSHI is promoted by four partners namely Mr. Bharatsinh D
Solanki, aged 62 years and has an experience of 17 years in
construction line of business, Mr. Kishorsinh B Solanki, aged 40
years and experience of 15 years, Mr. Mahendrasinh B Solanki,
aged 38 years and experience of 15 years and Mr. Devashibhai M
Sambad, aged 58 years and experience of 17 years. The experience
of partners in the same line of business and established contacts
of partners will be helpful to the firm for the successful
completion of the project.


DHARTI COTTON: CARE Reaffirms B+ Rating on INR12cr LT Loan
----------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Dharti Cotton Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      12        CARE B+; Stable
                                            Reaffirmed

The reaffirmation of the rating is driven by its fluctuating
trend of operations, thin profitability, leveraged capital
structure, weak debt coverage indicators and moderate liquidity
position during FY16 (refers to the period April1 to March 31)
along with its presence in highly fragmented cotton industry. The
rating further continues to remain constrained on account of
susceptibility of profits to changes in government policies and
fluctuations in cotton prices along with seasonality associated
with cotton industry. The rating, however, derives benefits from
the vast experience of the promoters in the cotton ginning
business and proximity to the cotton producing region of Gujarat
along with support from group entity present in similar business.

The ability of DCPL to increase its scale of operations with
improvement in profitability and liquidity position along with
better working capital management is the key rating sensitivity.

The scale of operations of the company remains fluctuating during
last three year ended on March 31, 2016 marked by total operating
income of INR70.34 crore during FY16 as compared with INR83.53
crore for FY15, while it was INR80.95 crore during FY14. PBILDT
margin of the company improved to 2.39% as compared with 2.14%
for FY15 during FY16, while APAT margin of the company improved
and remained thin at 0.17% as compared with 0.15% during FY15.

The capital structure of the company although improved, continued
to remain leveraged marked by an overall gearing of 1.50 times as
on March 31, 2016 as compared with 1.60 times as on March 31,
2015.

Total debt of the company as on March 31, 2016 stood at INR11.58
crore which includes only working capital borrowings of INR11.58
crore. Interest coverage ratio of the company remained similar
and
low at 1.29 times as compared with 1.31 times for the year ending
on March 31, 2016. Total debt to GCA of the company deteriorated
to 37.76 years for FY16 as compared with 33.38 years for FY15.

The liquidity position of the company remained moderate marked by
current ratio of 1.43 times and low quick ratio of 0.02 times for
FY16 which was 1.50 times and 0.08 times respectively for FY15.
The operating cycle of the company deteriorated and remains
elongated to 102 days for FY16 as compared with 69 days for FY15.

DCPL was incorporated in 2009 at Jasdan near Rajkot. The company
was promoted by Mr. Mansukhbhai Boghara with three other
directors. Later in October 2010, the company was sold off to
Kakadia family who is involved in the same line of business
through their business entity named Madhav Ginning & Pressing
Private Limited. DCPL is engaged in the business of cotton
ginning and pressing to produce cotton bales and cotton seeds.
The product is mainly used in manufacturing of cotton yarn in the
textile industry. DCPL has installed capacity to produce 8000
MTPA of cotton bales and 16000 MTPA for cotton seeds as on
March 31, 2016.

During FY16 (A), DCPL reported PAT of INR0.12 crore on a TOI of
INR 70.35 crore as against PAT of INR0.12 crore on a TOI of INR
83.55 crore during FY15. Till October, 2016, DCPL has registered
a total operating income of INR32.28 crore.


DUSMER TOOLS: ICRA Assigns B Rating to INR3.0cr FB Loan
-------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR3.00
crore cash credit facility and a short-term rating of [ICRA]A4 to
the INR3.00 crore bank guarantee facility of Dusmer Tools Private
Limited.  The outlook on the long-term rating is 'Stable'.

                        Amount
  Facilities          (INR crore)     Ratings
  ----------           -----------    -------
  Fund Based Limits        3.00       [ICRA]B (Stable) assigned
  Non-Fund Based Limits    3.00       [ICRA]A4 assigned

Rationale
The assigned ratings take into account DTPL's relatively small
scale of current operations, absence of the confirmed order book,
providing limited revenue visibility, and weak financial risk
profile as reflected by low business returns, a leveraged capital
structure, and subdued coverage indicators. The ratings also take
note of high working capital intensity of the business on account
of high inventory holding that exerts pressure on the liquidity
position of the company. The ratings are further constrained by
significant debt-repayment obligations in the near future, which
are likely to keep its cash flows under pressure, and exposure to
high customer concentration risk with subsidiaries of Coal India
Limited accounting for a major part of the company's sales.
The ratings, however, derive comfort from the promoters' long
experience of more than two decades in the supply and
installation of machines and DTPL's reputed clientele, which
mitigates counterparty credit risk to a large extent.

In ICRA's opinion, the ability of the company to scale up
operations while improving capital structure, and coverage
indicators, and manage its working capital requirements
efficiently would remain key rating sensitivities, going forward.

Key rating drivers
Credit Strengths
* Long experience of the promoters in the supply and
installation of machines
* Reputed customer profile, which mitigates counterparty credit
risk to a large extent
Credit Weakness
* Relatively small scale of current operations
* Absence of confirmed order book provides limited revenue
visibility
* Weak financial profile as reflected by low business returns, a
leveraged capital structure, and subdued coverage indicators
* High working capital intensity of the business exerts pressure
on the liquidity of the company
* Significant debt-repayment obligations in the near future,
likely to keep cash flows under pressure
* Exposure to high customer concentration risk with subsidiaries
of Coal India Limited accounting for most of the company's sales

Description of key rating drivers highlighted:

The company was incorporated by the Kolkata-based Chakravarti
family in 1991. The promoters have an experience of more than two
decades in the supply and installation of machines. It started
with a dealership of Hytorc, U.S. for selling hydraulic torque
wrench. Over the years, the company has diversified its product
line and is into assembling of tyre dismantling machines and
trading of hydraulic torque wrenches, laser proximity warning
systems and portable oil filtration systems. The company is also
planning to start trading of wireless infrared perimeter
protection systems. The company caters to various industries,
thus reducing demand dependence from any one particular industry.
The top-10 customers contributed almost entire sales in FY2016
and 8MFY2017 (P), with significant contribution coming from the
subsidiaries of Coal India Limited, which depicts high customer
concentration risk. However, with a reputed client base, the
counterparty risk is reduced to a large extent. DTPL procures
orders through tenders with two levels of qualifying factors viz.
technical and financial. Entities that meet the technical
qualification criteria qualify for financial bidding, and
subsequently the contract is awarded to the L1 bidder. Though the
technical qualification criteria are not very stringent, the
competition is limited due to unique nature of the products.

The operating income of DTPL decreased marginally by ~4% from
INR12.25 crore in FY2015 to INR11.75 crore in FY2016. The company
registered a top-line of INR1.58 crore in 8M FY2017 (P) due to
absence of confirmed order book. Historically, profits and cash
accruals from the business have remained low on account of its
small scale of operations. The company has an aggressive capital
structure which deteriorated further in FY2016 due to increase in
loan against property. The coverage indicators also remained weak
on account of high debt levels. The working capital intensity of
the company remained high at 78% in FY2016, primarily due to high
inventory holding of raw materials and finished goods. This in
turn, has stretched its liquidity position and resulted in high
utilisation of its cash credit limit. Moreover, the company has
significant debt-repayment obligations in the near future
compared to its current cash accruals, which is likely to keep
its cash flow under pressure.

Analytical approach: For arriving at the ratings, ICRA has taken
into account the debt servicing track record of DTPL, its
business risk profile, financial risk drivers and the management
profile.

Incorporated in 1991, Dusmer Tools Private Limited (DTPL) is
promoted by the Kolkata-based Chakravarti family. It is involved
in assembling of tyre dismantling machines and trading of
hydraulic torque wrenches, laser proximity warning systems and
portable oil filtration machines.

DTPL recorded a net profit of INR0.27 crore on an operating
income of INR11.75 crore for the year ending March 31, 2016.


G. R MULTIFLEX: CARE Assigns B+ Rating to INR12cr LT Bank Loan
--------------------------------------------------------------
The rating assigned to the bank facilities of G. R Multiflex
Packaging Private Limited (GMPL) is constrained by its small
scale of operations with low net profit margins, volatility in
raw material prices, competitive pressure due to presence in a
highly fragmented industry, working capital intensive nature of
operations and leveraged capital structure with weak debt
coverage indicators.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      12        CARE B+; Stable
                                            Assigned

The rating, however, derives strength from its experienced
promoters, satisfactory track record of operations, satisfactory
demand outlook for packaging products and its satisfactory
clientele.

Going forward, ability to scale up the level of operations with
improvement in profitability margins and ability to manage
working capital effectively will be the key rating sensitivities.

The scale of operations of GMPL remained small marked by total
operating income of INR27.03 crore with a PAT of INR0.05 crore in
FY16. Furthermore, the company has low networth base of INR4.73
crore as on March 31, 2016. The profit margins of GMPL remained
low marked by operating margin of 11.74% and PAT margin of 0.20%
in FY16 mainly due to its presence in an intensely competitive
industry.

The major raw material for the company is polypropylene paper
which is commodity in nature and witness frequent price
fluctuations. Therefore, the operating margin of the company
remains susceptible to any sharp movement in raw material prices
in a competitive industry.

The company's working capital intensity has been high over the
past period. The average inventory period remained high in the
range of 104 days to 186 days during the last three years (FY14-
FY16).

Furthermore, the average collection period was also high at 100
days in FY16 as the company allows high credit period to its
clients. The average fund based working capital utilization
remained around 98% during the last twelve month ending on
Nov. 30, 2016.

The capital structure of the company remained leveraged as on
last three account closing dates (FY14-FY16) and the overall
gearing ratio stood at 4.50 times as on March 31, 2016.
Furthermore, the
debt coverage indicators were weak marked by interest coverage of
1.26x and total debt to GCA of 33.52x in FY16.

GMPL is into flexible packaging material since 2002 and
accordingly has a track record of operations of around 14 years.
Furthermore, the promoters have long experience in this line of
business. Due to long presence in the same industry, the company
has established client base which includes reputed names like
Emami Agrotech Ltd, Jindal India Ltd, Sena Systems Private Ltd
and so on.

The long term fundamental drivers for growth in demand for
packaging products remain satisfactory even as near term
uncertainties prevail due to slowdown in economic growth and its
dampening impact on consumer sentiment.

GMPL was incorporated in July 2002 and currently managed by Mr.
Rabindra Kumar Jaiswal and Mrs Prativa Jaiswal. Since its
inception, the company has been engaged in manufacturing of
flexible packaging materials such as polyester laminated rolls,
multilayer flexible films, oil print films, water printed films,
and bags and pouches. The company's manufacturing facility is
located in Kolkata with aggregated installed capacity of 1404
metric ton per annum.

During FY16, the company reported a total operating income of
INR27.03 crore (FY15: INR26.78 crore) and a PAT of INR0.05 crore
(in FY15: INR0.09 crore). Furthermore, the company has achieved a
total operating income of INR22 crore during 7MFY17 (refers to
the period April 1 to October 31).


GAURAV EXPORTRADES: ICRA Reaffirms B+ Rating on INR1.0cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR1.00 crore fund based facility of Gaurav Exportrades Private
Limited. ICRA has also reaffirmed the short-term rating of
[ICRA]A4 to the INR7.00 fund based facility and INR3.50 crore
non-fund based facilities of the company. The outlook on the
long-term rating is Stable.

                        Amount
  Facilities          (INR crore)  Ratings
  ----------          -----------  -------
  Long-term-Cash Credit    1.00    [ICRA]B+ (Stable)/reaffirmed
  Short-term-Fund
  Based facility           7.00    [ICRA]A4/reaffirmed

  Short-term Non Fund
  Based facilities         3.50    [ICRA]A4/reaffirmed

Rationale
The rating reaffirmation takes into consideration the company's
modest growth in operating income for the past two years and low
but stable operating margins and net margins. The ratings
continue to take note of the company's financial profile
characterized by moderate capital structure (with gearing at 1.0
times) and moderate coverage indicators. The ratings are also
constrained by the high working capital intensity driven by high
inventory holdings. The rating also factors in the intense
competition arising from a highly fragmented nature of the
industry which limits the company's pricing flexibility to an
extent. The ratings, however draws comfort from the experience of
the promoters in the business for more than two decades and the
established relationship with its customers, which has supported
the order flows over the years. The company's ability to improve
its revenues and profit margins while efficiently managing its
working capital cycle will be key rating sensitivity.

Key rating drivers

Credit Strengths
- Experience of promoters' in the business for more than two
   decades
- Customer profile consists of established players who are
   repeat customers

Credit Challenges
- Small scale of operations restrict economies of scale and
   pricing flexibility
- Customer concentration heightens the risk of order volatility
   from top customers
- Weak financial profile characterized by low profitability, and
   stretched cash flows and high working capital intensity

Description of key rating drivers highlighted:
The company was incorporated in 1991 and the promoters have been
engaged in the manufacturing of ready-made knitted garments -
men, women and children wear. Client profile is characterized by
repeat customers with whom the company has an established
business relationship. Customers are majorly of overseas and a
handful of them are domestic customers, with the overseas
customers being some of the major branded garments players and
large retails chain.

The company has limited pricing power due to small scale of
operations and intense competition prevailing in the industry and
it also faces the risk of order volatility due to high customer
concentration. The small scale of operations also restricts
economies of scale and financial flexibility of the Company.
Company's profitability has been low at net levels and net profit
margin had marginally improved from 1% in FY2015 to 1.2% in
FY2016.

Gaurav Exportrades Private Limited (GEPL) was incorporated in
1991 by Mr. Mahesh Kumar Gupta and the company is closely held by
his family members. GEPL is engaged in the manufacture and export
of knitted garments - men, women and children wear. The company's
manufacturing facility is located in Tirupur with a production
capacity of 10.25 lakh pieces per annum.

In FY2016, GEPL reported an operating income of INR28.8 crore and
profit after tax of INR0.4 crore as against the operating income
of INR26.8 crore and profit after tax of INR0.3 crore in FY2015.


INDOMET STEEL: CARE Reaffirms B+ Rating on INR5.14cr LT Loan
------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Indomet Steel Industries Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      5.14      CARE B+; Stable
                                            Reaffirmed

   Short-term Bank Facilities     0.53      CARE A4 Reaffirmed

The re-affirmation in the ratings are driven by improvement in
profitability during FY16 and stable cash accruals. The ratings
continue to derive comfort from the wide experience of the
partners in the steel industry. The rating is, however,
constrained by its weak solvency position, working capital
intensive nature of operations and moderate debt coverage
indicators along with presence in the highly competitive and
fragmented steel industry and susceptibility of profit margins to
fluctuation in raw material prices.

Increasing scale of operations, further improvement in
profitability along with improvement in solvency position and
debt coverage indicators would be the key rating sensitivities.

During FY16, ISIPL registered de-growth in its total operating
income (TOI) of 28% to INR22.84 crore as against INR31.72 crore
during FY15 on the back of decline in sales volume of its
products due to subdued demand from the end user industry.

However, lower procurement cost of material led to improvement in
PBILDT margin by 81 bps to 6.29% while decline in interest costs
helped ISIPL in reporting profit compared to loss during the
previous year. Further, cash accruals remained at INR0.92 crore
in FY16 compared to INR0.98 crore in FY15.

Solvency position continue to remain weak on the back of negative
net worth due to accumulated losses of previous year while debt
coverage indicators stood moderate during FY16. Overall
operations remained working capital intensive in nature marked by
90% utilization of its fund based working capital limits.

Promoters of ISIPL have more than a decade of experience in the
Steel Ingot manufacturing. Mr. Firoz Chotalia, one of the
directors, has been into the family business of scrap trading
under the name of 'Al Had Trading Co.' for 20 years. He is
actively involved in routine operation of the business while
other directors namely Mr. Arifbhai Chavala and Mr. Sahin Mansuri
look after procurement and Account & Finance department
respectively.


LEITWIND SHRIRAM: Ind-Ra Affirms 'D' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Leitwind Shriram
Manufacturing Limited's Long-Term Issuer Rating at 'IND D'

                        KEY RATING DRIVERS

The affirmation reflects delays in debt servicing by Leitwind
since October 2015 due to continued EBITDA loss.  In FY16,
Leitwind's revenue was INR2.549 billion (FY15: INR2.455 billion)
and operating EBITDA loss was INR734.2 million (INR542.2
million).

                       RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months will
result in a positive rating action.

COMPANY PROFILE

LSML, a joint venture between Chennai-based Shriram Industrial
Holdings Limited and Italy-based WindFin BV, manufactures wind
turbine generators.


MAIHAR ALLOYS: CARE Reaffirms B+ Rating on INR9cr LT Loan
---------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Maihar Alloys Pvt. Ltd. (MAPL).

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities       9        CARE B+; Stable
                                            Reaffirmed

The rating for the bank facilities of MAPL continues to remain
constrained by its small scale of operations with thin
profitability margins, lack of backward integration vis-a-vis
volatility in prices, presence in the highly fragmented and
competitive industry, working capital intensive nature of
operations and cyclicality in the steel industry. The rating,
however, derives strength from its experienced promoters and
strategic location of the plant.

Going forward, ability to scale up the level of operation with
improvement in profitability margins and ability to manage
working capital effectively will be the key rating sensitivities.

The total operating income (TOI) declined, albeit marginally, by
0.55% in FY16 (refers to the period April 1 to March 31) over
FY15 to INR68.82 crore and the same continued to remain small in
comparison to its peers due to its presence in a highly
competitive and fragmented industry. The profitability margins
has declined further due to increase in operating costs and the
same remained on the lower side owing to intense competition.
Furthermore, the company has achieved a total operating income of
INR26.81 crore during 8MFY17 (refers to the period April 1 to
November 30).

The degree of backward integration defines the ability of the
company to minimize price volatility risk and withstand cyclical
downturns generally witnessed in the iron and steel industry.
MAPL does not have any backward integration for its raw materials
and has to purchase the same from the open market thus, remaining
exposed to price volatility risk.

The operating cycle has further elongated to 55 days on account
of increase in collection period as the company allows longer
credit period to the customers to sustain in the competitive
industry.
Average utilisation of working capital limit remained around 97%
during the last twelve month ending November, 2016.

Prospects of steel industry are strongly co-related to economic
cycles. Demand for steel products is sensitive to trends of
particular industries, such as automotive, construction,
infrastructure and consumer durables, which are the key consumers
of steel products. Slowdown in these sectors leads to decline in
demand of steel.

Mr Dhananjay Kumar, a graduate, aged 48 years, having experience
of around two decades in the iron and steel industry, looks after
the overall affairs of the business. While Mr. Pawanjay Kumar, a
graduate, aged 46 years, with similar experience in the steel
industry, looks after the marketing activities. They are assisted
by the team of experienced personnel.

MAPL's plant is located at Rauta in Ramgarh district of Jharkhand
which is in the midst of rich coal mines of Jharia (Jharkhand)
and Raniganj (W.B.). As there are a number of companies operating
in
this region producing raw materials for iron & steel industry,
availability of raw material is not an issue. Furthermore, the
region has a large number of steel manufacturers as well as end
users.

Hence, the company has a large ready market to sell its products.
Analytical Approach Followed: Standalone

Maihar Alloys Pvt. Ltd. (MAPL), incorporated in May 2004, by two
brothers, Mr. Dhananjay Kumar and Mr. Pawanjay Kumar, is engaged
in manufacturing of Mild steel (MS) ingots. The manufacturing
facility of the company is located at Rauta in Ramgarh,
Jharkhand. The unit commenced commercial production in April,
2005 with installed capacity of 32,000 MTPA. The facility has
quality system certification of ISO: 9001:2008.

During FY16, the company reported a total operating income of
INR68.82 crore (FY15: INR69.20 crore) and a PAT of INR0.13 crore
(in FY15: INR0.14 crore). Furthermore, the company has achieved a
total operating income of INR26.81 crore during 8MFY17 (refers to
the period April 1 to November 30).


MANGALAYATAN UNIVERSITY: Ind-Ra Rates INR315.25MM Facility 'B+'
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Mangalayatan
University's (MU) INR315.25 million term loan facility a Long-
term 'IND B+'.  The Outlook is Stable.

                         KEY RATING DRIVERS

The rating reflects MU's weak operational performance in FY16.
Its top line increased at a 0.34% CAGR to INR345.63 million over
FY12-FY16.  Operating margin declined to 2.47% in FY16 from 18.4%
in FY15.  The decline was due to a 9.62% yoy decline in tuition
fees to INR239.75 million in FY16 and a 15.07% yoy rise in staff
costs to INR131.23 million in FY16.  It had an average operating
margin of 15.50% during FY12-FY16.

MU had a weak liquidity profile in FY16.  Although available
funds (cash and unrestricted investments) increased to INR2.30
million in FY16 from INR0.89 million in FY15, the available
funds-to-operating expenditure ratio marginally increased to
0.83% in FY16 from 0.34% in FY15.

Available funds to debt improved to 0.32% in FY16 from 0.13% in
FY15.  MU's balance sheet resources provide limited cushion
relative to operating expenses and debt.

MU's debt burden, measured as debt/current balance before
interest and depreciation (CBBID), increased to 11.99x in FY16
from 7.21x in FY15 owing to a decline in CBBID to INR68.58
million in FY16 from INR110.83 million in FY15 and a rise in debt
to INR822.05 million in FY16 from INR798.90 million in FY15.
However, Ind-Ra expects debt/CBBID to decrease in the near to
medium term on account of the repayment of existing loans and a
rise in CBBID.

MU demonstrated comfortable interest coverage (FY16: 1.59x; FY15:
2.79x) and debt-service coverage (FY16: 1.17x; FY15: 1.38x).  The
decline in interest coverage and debt service coverage ratios in
FY16 was due to the fall in CBBID.

MU has diversified revenue sources.  Tuition fee accounted for
69.37% of revenue in FY16, followed by hostel and other related
income (17.89%), grants and donations (10.12%) and interest
income (2.62%).  Ind-Ra expects MU's revenue to steadily grow by
about 7% in the near to medium term.

Headcount increased to 2,215 students in FY16 from 2,050 students
in FY15 and registered a CAGR of 8.23% for the period FY12-FY16.
The university registered a 72.9% yoy decline in the number of
applications to 1,813 in FY16 owing to a rise in prospectus
price.

The acceptance rate for MU was moderate at 62.38% in FY16 and the
average acceptance rate stood at 39.78% for the FY12-FY16 period.
The enrolment rate was 92.31% in FY16.

                        RATING SENSITIVITIES

Positive: A sustained and strong enrolment growth in the medium
to short term leading to an improved operating margin and
liquidity position (available funds) and reduced debt burden
could trigger a positive rating action.

Negative: Any unexpected fall in demand from students, along with
a disproportionate increase in debt-led capex, resulting in
strained liquidity and debt, could trigger a negative rating
action.

COMPANY PROFILE

MU is incorporated under the Mangalayatan University, Uttar
Pradesh Act and notified by the Government of Uttar Pradesh as
Act No. 32 of 2006, by its Gazette No. 362/VII-V-1-1(Ka)-12/2006
dated Oct. 30, 2006.  The university has been operating for
nearly 10 years (started in 2006).  The university is located in
Beswan, a village 30km away from Aligarh.  It focuses on catering
mainly to the rural youth.  It offers undergraduate and
postgraduate courses in engineering, management, architecture,
law, humanities and others.

All of its courses have been accredited by the University Grants
Commission.


MATERSHWARI FOODSTUFF: ICRA Reaffirms 'B' Rating on INR24cr Loan
----------------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B to the
INR17.50 crore (enhanced from INR10.50 crore) cash credit
facility and the INR6.50-crore term loan (revised from INR7.50
crore) of Mateshwari Foodstuff Private Limited.  The outlook on
the long-term rating is 'Stable'.

                      Amount
  Facilities       (INR crore)   Ratings
  ----------       -----------   -------
  Fund-based Limits     24.00    Reaffirmed [ICRA]B (Stable)

The rating reaffirmation takes into consideration the firm's
small scale of operations, low profitability and the working
capital intensive operations with high inventory levels, which
led to stretched liquidity and weak capital structure. The rating
also takes into account the high competitive intensity in the
rice milling industry due to the presence of a few large players
and a number of small players. The profitability is also
vulnerable to agro climatic risks, which impact the availability
and pricing of paddy. However, the rating positively factors in
the timely setup of the production facility within the estimated
cost and the comfortable repayment period.

ICRA expects MFSPL's revenue to grow at a modest pace in FY2017.
The total debt position of the company is expected to remain at a
constant level; however, it may rise due to increase in working
capital requirement. The company's ability to increase its size
and scale, improve profits and optimise its working capital
requirement will be critical in maintaining its liquidity
position.

Key rating drivers
Credit Strengths

* Easy availability of paddy in local mandis of Bundi, Rajasthan
* Comfortable door-to-door repayment period of 6 years
* Timely setup of production facility within the estimated cost

Credit Weakness
* Limited track record and modest scale of operations
* High competitive intensity in the industry characterised by
few large players and a number of small players
* Vulnerability of profitability to agro climatic risks, which
can impact the availability and pricing of raw material i.e.
paddy
* High gearing of 10.29 times as on March 31, 2016

Description of key rating drivers highlighted:
MFSPL setup a rice processing unit at Bundi, Rajasthan with a
total installed capacity of 22000 MTPA. The unit commenced its
operations from May 2015. The product profile consists of Pusa
(1121, 1509, etc.) and Sugandha variety of basmati rice. Basmati
sales constitute majority of the company's sales while other
products include non- basmati rice, paddy, rice bran, and husk.
The rice industry is highly competitive and fragmented in nature
with a number of large players and numerous small players,
resulting in thin margins for firms such as MFSPL.

The working capital intensity of business has remained high over
the past few years, primarily on account of high inventory days.
Paddy is a seasonal crop and millers have to buy and stock paddy
from September to December every year, which leads to high levels
of inventory. Moreover, millers prefer aged paddy (as it fetches
better realization), which necessitates higher inventory days and
consequently higher working capital requirement. Dependence on
external working capital borrowings results in weak leverage and
debt coverage indicators and puts pressure on liquidity position.
Net worth of the firm was INR2.52 crore in FY2016.

Established in May 2014, Matershwari Food Stuff Private Limited
(MFSPL) is promoted by Mr. Ramdeep Sharma and family. The company
is engaged in milling and processing of basmati rice. The plant
is located at Bundi (Rajasthan) and has a processing capacity of
22,000 MTPA. The commercial production commenced from May 2015
majorly in line with the schedule. The company procures paddy
from the local mandi in Bundi and sells its products to basmati
rice exporters in Gujarat, Punjab and Delhi.

MFSPL recorded a net profit of INR0.06 crore on an operating
income of INR50.53 crore in the year ending March 31, 2016.


MEENA ADVERTISERS: ICRA Reaffirms B+ Rating on INR8.0cr Loan
------------------------------------------------------------
ICRA has re-affirmed the long-term rating of [ICRA]B+ for the
INR8.001 crore long-term fund based facility and INR2.00 crore
long-term unallocated facility of Meena Advertisers. The outlook
on the long term rating is stable.

                      Amount
  Facilities        (INR crore)     Ratings
  ----------        -----------     -------
  Long-term-Fund        8.00        [ICRA]B+ (Stable)/
  based facility                    reaffirmed

  Long term-            2.00        [ICRA]B+ (Stable)/
  Unallocated                       reaffirmed

Rationale
The rating reaffirmation takes into the weak financial profile
characterized by loss incurred by the concern in FY2016 and
operating and net levels. The rating also considers the high
working capital intensity in the business, as the entity
generally pays for the advertisement space in advance collects
the revenue after three to four month credit period. The rating
factors in the nature of the industry (Out of Home (OOH)
advertising space) characterized by intense competition and
volatile nature of fee receipts. The ratings also take into
account the risks associated with the entity's constitution as a
proprietorship firm.

The rating, however, continue to take comfort from longstanding
experience of the promoter in the Out of Home (OOH) advertising
space, with a focus on transit media. The entity has advertising
spaces in key transit locations such as Mumbai suburban railway
stations, Jaipur and Mangalore airports, which provide revenue
visibility for the medium term. The rating also positively takes
note cost pruning measures such as exiting of loss making
advertising spaces taken by the management to improve the
operating efficiency in FY2017. The rating also positively takes
into account the capital infusion of INR2.0 crore by promoters in
FY2016 that supported liquidity requirements of the entity.
Going forward, the concern's ability to increase the occupancy
rate, while maintaining margins and adjudications of the current
arbitration cases would be key rating considerations.

Key rating drivers
Credit Strengths
- Established track record of promoters in the out of home
   advertising space with key focus on transit media advertising
- Long-term arrangement for existing advertising space provides
   stability of assets and revenue visibility
- Cost pruning measure taken by the management to improve the
   operating efficiency
Credit Challenges
- Working capital intensive business, as the entity pays in
   advance for the advertisement space and collects the revenue
   after three to four month credit period.
- Weak coverage metrics on account of net loss incurred in
   FY2015 and FY2016.
- Profitability vulnerable to reduction in occupancy levels, as
   the entity pays fixed fees for contracted advertising spaces.
- Industry characterised by intense competition from various
   organised and unorganised players
- Risks associated with the entity's constitution as a
   proprietorship firm.

Description of key rating drivers highlighted:

The promoter has an established track record in out of home
advertising space with key focus on transit media advertising
having advertising spaces in key transit locations such as Mumbai
suburban railway stations, Jaipur and Mangalore airports, which
provide revenue visibility for the medium term. However, the
concern is present in a Working capital intensive business, as
the entity pays in advance for the advertisement space and
collects the revenue after three to four month credit period.
Intense competition coupled with volatile nature of fee receipts
had resulted in operational losses for the concern in FY2016 as
some of the spaces that the firm had bid and acquired turned out
to be non profitable investments. Those loss making contracts had
weakened the profitability and coverage metrics in FY2015 and
FY2016.Also, the short term nature of the entity's contracts with
its customers against its long term contracts for advertisement
spaces makes its margins vulnerable to any reduction in occupancy
levels, however the entity's advertising locations are located in
key transit space, this coupled with its relationship with
renowned clientele partly mitigates the risk of reduction in
occupancy levels. In FY2017, the concern has taken cost pruning
measures such as exiting of loss making advertising spaces to
improve the operating efficiency.

Incorporated in 1980, Meena Advertisers is engaged in providing
advertisement spaces in airports and railway stations. Based in
Chennai, the entity has its marketing offices in Mumbai, Jaipur,
Mangalore and New Delhi. Meena Advertisers is a proprietorship
firm, promoted by Mr. V Krishnamurthy.

In FY2016, the concern reported a net loss of INR2.49 crore on an
operating income of INR15.49 crore as against a net profit of
INR0.03 crore on an operating income of INR11.11 crore in FY2015.


MONNET ISPAT: Lenders Restart Stake Sale Process
------------------------------------------------
livemint.com reports that lenders to Monnet Ispat and Energy Ltd
have restarted the process of selling a majority stake in the
company, according to an advertisement posted by SBI Capital
Markets on its website.

This is not the first time that the investment bank is searching
for buyers since lenders invoked strategic debt restructuring
(SDR) norms in August 2015, the report says.

At that time, lenders converted a debt worth INR350 crore to a
51% stake. Monnet Ispat had a total debt of around INR9,000 crore
as on March 31, relates livemint.com.

"The bankers are still hopeful of finding bidders for the
company. But companies in the steel and power sectors will always
find it difficult to sell," the report quotes a senior public
sector banker aware of the matter as saying.

livemint.com notes that the Monnet Ispat case is indicative of a
broader issue with resolution of bad loans, which are now coming
back into focus after the demonetisation process ended on
December 30. Gross non-performing assets were at INR6.7 trillion
as on September 30.

livemint.com relates that even though bankers have tried many
available options including SDR, the scheme for strategic
structuring of stressed assets (S4A) and 5/25 long-term
refinancing, the results have been discouraging so far. Moreover,
the underlying businesses (where loans turned bad) have also not
received the restructuring necessary to become sustainable.

SDR allows creditors to convert debt into equity and take over
the management of defaulting companies. Under S4A, banks can
convert up to 50% of a company's loans into equity or equity-like
instruments, says the report.

"We had asked the Reserve Bank of India (RBI) to adjust some
clauses in the way S4A scheme is drafted, but they are yet to
consider it. We don't think that there is any need to force fit a
case to adhere to S4A and then not be able to do anything
constructive. Banks had tried to do that in SDR and it didn't
lead to much," said the head of a large state-owned lender, also
speaking on condition of anonymity, livemint.com relays.

Monnet Ispat & Energy Limited engages in the production and sale
of sponge iron, structural steel, and ferro alloys. The company
also engages in the generation and sale of power; and provides
consultancy services in the fields of exploration, exploitation,
and beneficiation coal and other minerals.


MORMONT IFMR: Ind-Ra Provisionally Rates USD24.42MM Cert. 'B+'
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Mormont IFMR
Capital 2016 (an ABS transaction) provisional ratings as:

   -- INR212.52 mil. Pass through certificates assigned
      provisional IND A-/Stable; and
   -- USD24.42 mil. PTCs-Series A2 assigned provisional
      IND B+/Stable

The final ratings are contingent upon the receipt of final
documents conforming to the information already received.

The microfinance loan pool to be assigned to the trust is
originated by Disha Microfin Private Limited (Disha).

                         KEY RATING DRIVERS

The provisional ratings are based on the origination, servicing,
collection and recovery expertise of Disha, the legal and
financial structure of the transaction and the credit enhancement
(CE) provided in the transaction.  The provisional rating of
Series A1 PTCs addresses the timely payment of interest on
monthly payment dates and the ultimate payment of principal by
the final maturity date of Oct. 1, 2018, in accordance with
transaction documentation

The provisional rating of Series A2 PTCs addresses the timely
payment of interest on monthly payment dates only after the
complete redemption of Series A1 PTCs and the ultimate payment of
principal by the final maturity date of Oct. 1, 2018, in
accordance with transaction documentation.

The transaction benefits from the internal CE on account of
excess interest spread, subordination and over-collateralisation.
The levels of over-collateralisation available to Series A1 and
Series A2 PTCs are 13% and 3% of the initial pool principal
outstanding (POS), respectively.  Total excess cash flow or
internal CE available to Series A1 and A2 PTCs is 30.23% and
17.83%, respectively, of the initial POS.  The transaction
benefits from the external CE of 5.0% of the initial POS in the
form of fixed deposits in the name of the originator with a lien
marked in favor of the trustee.  The collateral pool to be
assigned to the trust at par had an initial POS of INR 244.28
million, as of the pool cutoff date of Dec. 11, 2016.

The investor payouts derive support from 3% principal over-
collateralization and 5% of cash collateral in addition to the
EIS.  Principal payouts to Series A2 PTCs are subordinated to
Series A1 PTCs and provide an additional 10 per cent of support
through principal subordination to Series A1 PTCs.

The external CE will be used in case of a shortfall in a) the
complete redemption of all Series of PTCs on the final maturity
date, b) the monthly interest payment to Series A1 investors c)
the monthly interest payment of Series A2 investors after the
complete redemption of Series A1 investors and d) any shortfall
in Series A2 maximum payout on the Series A2 final maturity date.

                       RATING SENSITIVITIES

As part of its analysis, Ind-Ra built a pool cash flow model
based on the transaction's financial structure.  The agency
analyzed historical data to determine the base values of key
variables that would influence the level of expected losses in
this transaction. The base values of the default rate, recovery
rate, time to recovery, collection efficiency, prepayment rate
and pool yield were stressed to assess whether the level of CE
was sufficient for the current rating levels.

Ind-Ra also conducted rating sensitivity tests.  If the
assumptions about the base case default rate worsen by 30%, the
model-implied rating sensitivity suggests that the ratings of
Series A1 will not impacted and Series A2 PTCs will be downgraded
by two notches.

COMPANY PROFILE

Incorporated in 1995, Disha is registered with the Reserve Bank
of India (RBI) as a non-banking financial company - microfinance
institution (MFI).  In September 2015, it received in-principle
approval from the RBI to start operations as a small-finance
bank. Disha acquired Future Financial Services Pvt Ltd (FFSPL) in
October 2016.  It is a part of Fincare group, which comprises
Disha, Future Financial Services Pvt. Ltd, Lok Management
Services Pvt. Ltd., India Finserve Advisors Pvt. Ltd. and Fincare
Business Services Pvt. Ltd.


NSL COTTON: CARE Lowers Rating on INR25cr LT Loan to 'D'
--------------------------------------------------------
The revision in the ratings assigned to the bank facilities of
NSL Cotton Corporation Private Limited (NCCL) is on account of
delays in debt servicing owing to stretched liquidity position of
the company and continued losses.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     25.00      CARE D Revised from
                                            CARE B-

   Short-term Bank Facilities     0.16      CARE D Revised from
                                            CARE A4

Delays in debt servicing are on account of stretched liquidity
position of the company at the back of inadequate accruals and
elongated collection period.

Furthermore, the overall gearing of the company has deteriorated
from 4.99x as on March 31, 2015, to 6.55x as on March 31, 2016,
despite decrease in debt levels on account of erosion of
networth.
NSL group, belonging to Mr. M. Prabhakar Rao and his wife Mrs M.
Asha Priya, is an established South India-based industrial house.
The NSL group has diversified business portfolio with presence in
hybrid/open pollinated seeds, cotton ginning and pressing,
textiles, sugar, real estate, infrastructure and power (wind,
hydel and biomass).

Incorporated in 2007, NCCL is in the trading of cotton bales,
business of cotton ginning and pressing, and trading of cotton
seeds & cotton bales. Earlier, NCCL was a wholly-owned subsidiary
of Nuziveedu Seeds Ltd, the flagship company of NSL Group. Post
demerger of the NSL Group (from April 1, 2010), the shares of
NCCL has been transferred to Mandava Holding Private Ltd., which
is the holding company of NSL Group.

The NSL Group is diversified with business interests in Hybrid
Seeds, Power, IT Parks, Cotton Spinning, Sugar, Ethanol, etc.
NCCL has 11 subsidiary units with an aggregate capacity of 370
gins. Of the 11 subsidiary companies, nine are 100% subsidiary of
NCCL and remaining two have 60% equity contribution from NCCL and
the balance 40% is contributed by the local promoters. NCCL is
primarily into trading of cotton bales.

During FY16 (refers to the period April 1 to March 31), NCCL
registered a total operating income of INR102.53 crore (Rs.106.22
crore in FY15) with net loss of INR8.51 crore (net loss of
INR0.69 crore in FY15).


PANYAM CEMENTS: CARE Upgrades Rating on INR97.86cr NCD to BB-
-------------------------------------------------------------
The revision in the long-term rating assigned to the bank
facilities of Panyam Cements and Mineral Industries Limited
(PCMIL) takes into account substantial improvement in the scale
of operation, revenue and profitability during FY16 (refers to
the period April 1 to March 31), along with improvement in the
capital structure, operating cycle and liquidity position.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     30.00      CARE BB-; Stable
                                            Revised from CARE B-

   Short-term Bank Facilities     9.32      CARE A4 Reaffirmed

   Non-Convertible Debentures    97.86      CARE BB-; Stable
                                            Revised from CARE B-

The ratings continue to factor in the experience of the promoters
and management team, long track record of operations in
diversified business and location advantage of the plant. The
ratings, however, continue to be constrained leveraged capital
structure, working capital-intensive nature of the business, high
group exposure and intense competition in the industry. The
ability of the company to further expand the scale of operation
along with improvement in profitability in a highly competitive
scenario and manage the working capital requirement to ensure
adequate liquidity are the key rating sensitivities.

The rating assigned to the long term bank facility (term loan)
has been withdrawn as the company has repaid the said facility in
full and there is no outstanding under the said facility.

FY16 was the first year of full operations of the company after
the plant being non-operational from October 2013 to August 2014.
The company has taken various steps to gradually modernize the
plant and enhance overall efficiency, which has improved the
operational performance. The capacity utilization of the plant
has witnessed substantial improvement and remained at a moderate
level at 58.97% during FY16 vis-a-vis 24.49% in FY15.

The total operating income registered a significant y-o-y growth
of 1.33x during FY16 (to INR219.83 crore) backed by robust
increase in volume sales by 1.39x and marginal increase of 1.35%
in average gross sales realization. The substantial increase in
the volume sales was backed by improved demand and overall
industry scenario. In line with increased sales, the PBILDT level
also increased significantly by 7.44x. The PBILDT margin improved
by 975 bps (to 13.48%) majorly led by increase in scale of
operations resulting in absorption of fixed overheads. Increased
PBILDT during the year resulted in the company reporting net
profit (PAT margin of 4.86%) vis-a-vis net loss in FY15.

The overall gearing improved substantially from 6.99x as on March
31, 2015 to 2.55x as on March 31, 2016 majorly due to accretion
of profit vis-Ö-vis continuous loss reported in last three years
(up to FY15). During FY16, the company issued Non-Convertible
Debentures (NCDs) amounting INR33 crore (total aggregating
INR97.86 crore placed as on September 30, 2016) and the same was
utilized to refinance the total bank debt aggregating INR32.55
crore as on March 31, 2015. The other debt coverage indicators of
the company also improved during the year.

The working capital cycle of the company improved from 68 days in
FY15 to 21 days in FY16 mainly due to decrease in average
inventory period (49 days in FY16 vis-a-vis 91 days in FY15). The
liquidity profile of the company also improved during the year as
exhibited by gross cash accruals of INR16.95 crore in FY16 (vis-
Ö-vis cash loss of INR9.23 crore in FY15). The working capital
requirement, however, continues to remain high with average
utilization of fund based limits being 98.05% in the 12 months
ended November 30, 2016.

PCMIL continues to have high exposure in group companies and the
same has increased to INR327.89 crore from INR291.44 crore as on
March 31, 2015. This comprises of advances/inter-corporate
deposits amounting to INR104.36 crore and INR223.53 crore as
corporate guarantees given. Given that the exposure is in
companies with companies with weak credit profile; the extent of
group exposure is important from a credit perspective.

PCMIL belongs to Nandi Group of Industries, which has presence in
diversified businesses such as cements, dairy, construction, PVC
pipes, etc mainly in Andhra Pradesh. The main promoter, Mr. S P Y
Reddy (Chairman) has business experience of more than three
decades. The business operations of the group have benefited from
Mr. Reddy's long established track record in different businesses
and the vast industry network developed over the years. The
management are well supported by highly experienced and
professional team.


PASUPATI SPINNING: ICRA Reaffirms 'D' Rating on INR11.77cr Loan
---------------------------------------------------------------
ICRA has reaffirmed [ICRA]D rating assigned to the INR11.77 crore
Partially Convertible Debenture programme and INR5.00 crore Non-
Convertible Debenture programme of Pasupati Spinning and Weaving
Mills Ltd. The rating re-affirmation takes into account non
receipt of the no dues certificate from the trustee of the issue.
There is still some amount outstanding against the debentures.
The rating reaffirmation is on the basis of best available
information in the public domain.

                    Amount
  Facilities     (INR crore)   Ratings
  ----------     -----------   -------
  15% Partially
  convertible
  debentures         11.77    [ICRA]D reaffirmed

  Non convertible
  Debentures          5.00    [ICRA]D reaffirmed

The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with PSWM, ICRA has been trying to seek information from the
company so as to undertake a surveillance of the ratings, but
despite repeated requests by ICRA, the company's management has
remained non-cooperative. In the absence of requisite
information, ICRA's Rating Committee has taken a rating view
based on best available information. In line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1, 2016, the
company's rating is now denoted as: "[ICRA] D ISSUER NOT
COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

PSWML was incorporated in New Delhi in 1979. The company is
promoted by Mr. Ramesh Kumar Jain and manufactures cotton yarn,
polyester grey and dyed sewing thread, and knitted fabric. It has
a sewing thread manufacturing facility in Kala Amb and polyester
viscose yarn and cotton yarn manufacturing units in Dharuhera
(Haryana).

The company reported an operating income of INR189 crore and
profit after tax of INR0.13 crore in FY2016 as against the
operating income of INR204.09 crore and profit after tax of
INR0.11 crore in FY2015.


POLYPLASTICS AUTOMOTIVES: ICRA Reaffirms D Fund Based Loan Rating
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating at [ICRA]D for the
INR8.00 crore cash credit facility and INR9.75 crore term loans
of Polyplastics Automotives India Private Limited. ICRA has also
reaffirmed the short term ratings at [ICRA]D for the INR0.25
crore non-fund based facilities. ICRA has also reaffirmed the
long term and short term ratings at [ICRA]D for the INR1.20 crore
fund based facilities. ICRA has also reaffirmed the ratings at
[ICRA]D to the the unallocated amount of INR5.80 crore.

                          Amount
  Facilities           (INR crore)   Ratings
  ----------           -----------   -------
  Non-Fund Based Limits    0.25      [ICRA] D Reaffirmed
  Fund Based Limits       18.95      [ICRA] D Reaffirmed
  Unallocated Amount       5.80      [ICRA] D Reaffirmed

The rating action is based on the ongoing dealys in the company's
debt servicing. As part of its process and in accordance with its
rating agreement with PAIPL, ICRA had sent repeated reminders to
the company for payment of surveillance fee that became overdue;
however despite multiple requests; the company's management has
remained non-cooperative. ICRA's Rating Committee has taken a
rating view based on best available information. In line with
SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1,
2016, the company's rating is now denoted as: "[ICRA]D ISSUER NOT
COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

PAIPL is a manufacturer of injection moulded plastic auto
components for the automobile (four wheeler passenger vehicles
and two wheelers) industry. The company manufactures auto
components such as wheel covers, wheel caps, radiator grills (for
passenger vehicles) and garnish cowl, rear cowl centre, gear
speedo meter, side cover, handle cover, wheel cap, throttle
lever, inner door handle, fuse box and cover, etc (for two
wheelers) at its manufacturing facility located at Industrial
Growth Centre in Bawal (Rewari, Haryana). The unit has 20
injection moulding machines and painting facilities, which
include body colour paint shop, automatic wheel cover paint shop
and conventional paint shops. The company's client list includes
Maruti Suzuki India Limited, Honda Motorcycle & Scooter India
Pvt. Ltd. and Hero Motocorp Ltd., apart from other OEMs and Tier-
1 suppliers


PRANAV FOUNDATIONS: CARE Reaffirms B+ Rating on INR30cr LT Loan
---------------------------------------------------------------
The rating assigned to the bank facilities of Pranav Foundations
Private Limited (PFPL) continues to be constrained by the small
scale of operations, slowdown in demand for the company's
projects, intermittent nature of cash flows and highly leveraged
capital structure.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities       30       CARE B+; Stable
                                            Reaffirmed

The rating, however, derives strength from the presence of
experienced promoters and relatively lesser dependence on
customer advances. Going forward, the ability of the company to
generate demand for its projects, scale up its operations and
execute larger projects will be the key rating sensitivity.

PFPL purchases land or existing house in various parts of the
city, converts them into apartments and sells the same to
customers. The size of the project is generally small with
average project size of about 5,000 sq. ft. Projects of this size
does not provide the company with a sustained cash flow and the
company has to continue developing new projects to maintain the
revenue inflow. The company has also witnessed a slowdown in
demand for its ongoing projects during H1FY17. The company
undertakes small construction contracts to generate cash flow.

The company predominantly funds its projects through debt and
promoters equity with minimal dependence on customer advances.
The ongoing projects are funded by promoter contribution of
INR6.76 crore and debt of INR6 crore. The company generally sells
its projects post completion. With debt being tied up before
commencement of project and low dependence on customer advances,
the company faces minimal execution risk.

The company has a highly leveraged capital structure with an
overall gearing of 5.60 times as on March 31, 2016. The total
debt as on March 31, 2016, was INR26.60 crore with unsecured loan
from related parties of about INR8 crore.

The promoters of PFPl have more than two decades of experience in
the real estate sector. The promoters were initially engaged in
real estate activities through a partnership firm Master
Foundation since 1994 and later in 1997, established PFPL as an
independent entity.

Chennai-based PFPL, incorporated in June 1996, is a real estate
development company primarily focused on small scale residential
projects. The promoters have over two decades of real estate
experience and the company has completed about 33 projects as on
November 30, 2016 with a total saleable area of 2.66 lakh square
feet (lsf). The company currently has two ongoing projects with a
total saleable area of 0.48 lsf. The company also owns a four
floor banquet hall in a prime location of the city with a seating
capacity of 1000 people per floor. The managing director of the
company is Ms Sreelakshmi Ranganathan, but the day-to-day
operations are handled by her husband, Mr. Ranganathan. Entire
shareholding of the company is held by the promoters and their
family members with Ms Sreelakshmi and her two daughters together
holding 81.33% stake.

The company reported a net profit of INR0.16 crore on total
operating income of INR15.90 during FY16 (refers to the period
April 1 to March 31) as against a net profit of INR0.22 crore on
total operating income of INR14.63 crore during FY15.


RADHA CASTING: CARE Upgrades Rating on INR4cr Long Term Loan to B
-----------------------------------------------------------------
The revision in the rating assigned to the bank facilities of
Radha Casting & Metalik Private Limited (RCMPL) is on account of
timely servicing of debt obligations since July 2016.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      4         CARE B; Stable
                                            Revised from CARE D

However, the rating continues to remain constrained by its small
scale of operations, lack of backward integration vis-Ö-vis
volatility in raw material prices, intense competition due to
fragmented nature of industry and working capital intensive
nature of business. The rating, however, derives strength from
its experienced promoters, proximity to raw material sources and
moderate capital structure and debt coverage indicators.

Going forward, the ability to scale up the level of operation
with improvement in profitability margins and ability to manage
working capital effectively will be the key rating sensitivities.
RCMPL commenced commercial production at its plant in 2008 and
has successfully completed about eight years of operation. In
FY16 (refers to the period April 1 to March 31), the company has
achieved total operating income of INR66.59 crore and a PAT of
INR0.19 crore with y-o-y growth in revenue of about 66.93%. The
total capital employed stood at INR15.27 crore as on March 31,
2016. The company has achieved a turnover of INR34.71 crore
during 8MFY17. In view of the same the scale of operation
continued to be on the lower side.

The degree of backward integration defines the ability of the
company to minimize price volatility risk and withstand cyclical
downturns generally witnessed in the steel industry. RCMPL does
not have any backward integration for its raw materials and
procures the same from outside, exposing the company to price
volatility risk. RCMPL is engaged in the manufacturing of MS
Ingots, which is primarily dominated by large players
and characterized by high fragmentation and competition due to
presence of numerous players in India owing to relatively low
entry barriers. Hence, the players in the industry do not have
much pricing power which induced pressures on profitability.

The company's working capital intensity has been high over the
past period. The average fund-based working capital utilization
remained around 90% during last 12 months ending on November 30,
2016.

The key promoters Mr. Dhananjay Kumar (aged about 51 years) & Mr.
Pawanjay Kumar (aged about 46 years), has experience of around 15
years and 10 years, respectively, in iron and steel industry
through its associate company Ramgarh Casting. The day-to-day
affairs of the company are looked upon by them with adequate
support from a team of experienced personnel.

RCMPL plant is located at Ramgarh in Jharkhand, which is in
proximity to the steel and mining areas of West Bengal, Jharkhand
and Odisha. Hence, its presence in the steel and mining region
results in benefits derived from a lower logistic expenditure
(both on transportation and storage), easy availability and
procurement of raw materials at effective prices.

The capital structure of the company, marked by debt-equity ratio
and overall gearing ratio has improved further and remained below
unity as on March 31, 2016, on the back of repayment of term
loan and accretion of profit to reserve. The debt protection
metrics is marked by interest coverage ratio and debt to GCA
ratio which was 2.58x and 4.24x, respectively, during FY16. Both
the ratio was moderately satisfactory.

RCMPL, incorporated in June 2006, was promoted by brothers Mr.
Dhananjay Kumar and Mr. Pawanjay Kumar of Jharkhand. The company
had initially set up a pig iron plant (installed capacity
15000 metric tonnes per annum: MTPA) at Ramgarh, Jharkhand, and
commenced commercial operation in the year 2008. However, later
on, in May 2011, the company was forced to shut down its pig iron
plant due to iron ore scarcity owing to iron ore mining-related
issues leading to rising raw material cost and weak demand. Since
February 2012, the company had started manufacturing Mild
Steel (MS) Ingots with installed capacity of 15,000 MTPA at its
existing plant.

During FY16, the company reported a total operating income of
INR66.59 crore (FY15: INR39.89 crore) and a PAT of INR0.19 crore
(in FY15: INR0.01 crore). The gross cash accrual was INR1.12
crore (in FY15: INR0.82 crore) during FY16. Furthermore, the
company has achieved a total operating income of INR34.71 crore
during 8MFY17 (refers to the period April 1 to November 30).


RADHA STEEL: Ind-Ra Affirms 'BB-' Long-Term Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Radha Steel's
(RS) Long-Term Issuer Rating at 'IND BB-'.  The Outlook is
Stable.

                         KEY RATING DRIVERS

The affirmation reflects RS' continued moderate financial and
credit profile.  In FY16, revenue was INR2,458.9 million (FY15:
INR2,497.1 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 5.6x (FY15: 6.1x) and EBITDA interest
cover was 1.5x (1.4x).  EBITDA margin was in the range of 1.8%-2%
over FY11-FY16.  Ind-Ra expects revenue to decline in FY17 due to
slowdown in the domestic steel demand in 2HFY17.  However, this
is not likely to impact RS' credit profile due to low operating
leverage.

The ratings continue to factor in the partnership structure of
the organization, as well as intense competition and low entry
barriers which are characteristic features of a trading business.
Liquidity remained tight as reflected in around 99% utilization
of RS' working capital limits for the 12 months ended November
2016.

The ratings, however, benefit from the founders over two decades
of experience in the steel industry.  Moreover, the founders are
capable of supporting the firm's working capital requirements
through unsecured loans.

                       RATING SENSITIVITIES

Positive: A sustained improvement in the revenue while
maintaining or improving the profitability, credit metrics and
liquidity will be positive for the ratings.

Negative: Any decline in profitability leading to a substantial
decline in the credit matrices and/or liquidity will be negative
for the ratings.

COMPANY PROFILE

RS trades in steel products including mild steel rods, sheets,
scrap, structural and sponge iron.


RATNAGIRI GAS: CARE Reaffirms 'D' Rating on INR7,773.68cr Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Ratnagiri Gas and Power Private Limited (RGPPL).

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities   7,773.68     CARE D Reaffirmed

The rating for the bank facilities of RGPPL continues to take
into account ongoing delays in servicing of company's debt
obligations.

The delays in servicing of debt obligations are on account of
stressed liquidity position of the company due to low PLF (Plant
load factor) of its power plant.

RGPPL is promoted by NTPC Ltd (25.51%), GAIL (India) Ltd
(25.51%), MSEB Holding Company Ltd (MSEBHCL) (13.51%) and
Financial Institutions (IDBI Bank, SBI, ICICI Bank and Canara
Bank) (35.47%).

RGPPL owns an integrated gas-based power generation plant having
a capacity of approximately 1,967 MW and a Re-Gasified LNG (R-
LNG) terminal with a capacity of approximately 5 MMTPA (Million
Metric Tonnes Per Annum) at Dabhol, Maharashtra.

During FY16 (refers to the period April 01 to March 31), RGPPL
reported total operating income of INR1,122.07 crore and loss of
INR1,072.85 crore as against total operating income of INR182.24
crore and loss of INR1,433.49 crore in FY15.


RAYUDU LABORATORIES: ICRA Withdraws B/A4 Rating on INR15cr Loan
---------------------------------------------------------------
ICRA has withdrawn the ratings of [ICRA]B/ICRA]A4 assigned to
INR15.00 crore unallocated limits of Rayudu Laboratories Limited,
as the company has not availed the limits.

                       Amount
  Facilities         (INR crore)   Ratings
  ----------         -----------   -------
  Unallocated Limits     15.00     [ICRA]B/[ICRA]A4 Withdrawn


RISHI ICE: CARE Reaffirms B+ Rating on INR12.29cr LT Loan
---------------------------------------------------------
The rating assigned to the bank facilities of Rishi Ice & Cold
Storage Private Limited (RICSPL) continues to be constrained by
small scale of operations, leveraged capital structure & moderate
debt coverage indicators, working capital intensive nature of
operations and presence in highly competitive & fragmented
industry.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     12.29      CARE B+; Stable
                                            Reaffirmed

The rating, however, continues to derive strength from wide
experience of the promoters in the industry and healthy profit
margins.

The ability of RICSPL to increase the scale of operations while
maintaining the profit margins and improve capital structure and
liquidity position by efficiently managing working capital
requirement is the key rating sensitivity.

The total operating income of RICSPL grew significantly by
approximately 25% y-o-y in FY16 (refers to the period April 1 to
March 31) mainly on account of successful completion of the
expansion project along with the increase in demand from the
existing warehouse customers belonging to the imported products
and APMC market segments, led by the increasing demand for
warehouse facilities in the overall market. Despite increase in
the overall operations, RICSPL's overall scale of operations
continues to be relatively small with total operating income &
Gross Cash Accruals of INR10.28 crore and INR3 crore,
respectively, during FY16.

The PBILDT margin of RICSPL remained healthy during last three
years ending FY16 in range of 50%-60%.

The capital structure remained leveraged marked by high overall
gearing owing to high dependence on external bank borrowings and
lower net-worth base.

The operations of the entity remained working capital intensive
with high amount of funds blocked in debtors and low credit
period received from its clients. RICSPL faces competition from
many other cold storage companies operating in the same area.
This has resulted into price competition for the company.

Incorporated in the year 2002 & commenced commercial operations
in March 2006, RICSPL is engaged in the business of providing
cold and dry storage service for various products such as grains,
spices, dates, dry fruits and milk products. RICSPL derives ~70%
of its revenue from warehousing of imported products and ~30%
from other APMC market customers in Vashi. The company has a
multipurpose storage facility (having storage capacity of 20,000
MTPA, and average utilization level of ~80% in FY16) and
controlling office located in Mumbai. RICSPL is managed mainly by
Mr. Chhaganlal B Nanda and Mr. Paresh B Nanda, both having an
experience of more than three decades in cold storage business.
They are assisted by Mr. Shailesh Nanda and Mr. Nitin Nanda
having experience of 20 years and 15 years, respectively, in the
same line of business.

During FY16, the total operating income of the company stood at
INR10.28 crore (vis-a-vis INR8.20 crore in FY15), whereas the PAT
during the same year stood at INR0.33 crore (vis-Ö-vis a net loss
of INR0.27 crore in FY15).


SARASWATI ASSOCIATES: CARE Hikes Rating on INR4.50cr Loan to B+
---------------------------------------------------------------
The revision in the rating assigned to the bank facilities of
Saraswati Associates Company (SAC) takes into account improvement
in profit margins, capital structure and debt coverage indicators
during FY16 (refers to the period of April 1 to March 31).

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     3.50       CARE B+; Stable
                                            Revised from
                                            CARE B

   Long-term/Short-term Bank     4.50       CARE B+; Stable/
   Facilities                               CARE A4 Revised
                                            from CARE B/CARE A4

The ratings, however, continue to remain constrained on account
of moderate liquidity position, decline in scale of operations,
moderate order book position, proprietorship nature of its
constitution, raw material price fluctuation risk, geographical
concentration risk with limited revenue diversity and competitive
and fragmented nature of industry.

The ratings continue to derive strength from promoter's
experience in construction industry and reputed client base.

The ability of SAC to increase its scale of operations through
diversification of order book amidst high competition prevailing
in the road construction industry along with improvement in
profitability and capital structure are the key rating
sensitivities.

SAC's total operating income (TOI) witnessed a decline of about
20.48% due to delay in allotment of work order by 2-3 months.
However, PBILDT margin has improved during the year (8.06% vis-Ö-
vis 6.29%).

On account of increase in net worth and reduction in total debt,
SAC's overall gearing improved to 1.87 times as on March 31,
2016. With the improvement in profitability, net worth and
reduction in total debt, the debt coverage indicators improved
and stood moderate.

SAC continues to have an elongated working capital cycle which
has improved stood at -31 days in FY16 due to higher creditor's
period (54 days). The average working capital utilization of the
company was moderate at 70% during 12 months ended November 2016
however during peak season cc utilization remains at 90%. SAC has
unexecuted orders of INR 20 crore on hand SAC's promoter is a
graduate with more than three decades of experience in the
construction industry industry. Mr. Dashrathbhai Patel, looks
after the overall operation of the firm.


SHAVYAA GEOTEX: CARE Hikes Rating on INR7.09cr LT Loan to B+
------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Shavyaa Geotex.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      7.09      CARE B+; Stable
                                            Revised from CARE B

   Long-term Bank Facilities/
   Short-term Bank Facilities     4.50      CARE B+; Stable/
                                            CARE A4 LT Revised
                                            from CARE B/ST
                                            assigned

The revision in the ratings is driven by successful completion of
its project without any cost and time overrun and stabilization
of its operations. The ratings are, however, constrained on
account
of its ability to achieve envisaged level of productivity through
recently completed project, partnership nature of constitution,
susceptibility of margins to volatility in crude oil prices and
exchange rate fluctuation and presence in the highly competitive
and fragmented nature of the industry. The ratings, however,
continue to derive strength from experienced promoters.
SHAVYAA's ability for the achievement of targeted level of
operations with efficient management of its working capital
requirement would the key rating sensitivity.

During October 2016, SHAVYAA had completed its entire project
related to implementation of machineries for the manufacturing of
Polypropylene Woven sack & fabrics with the total cost of
INR15.65 crore, which was funded by the term loan of INR7.40
crore and remaining INR8.25 crore by the promoters' contribution
(including INR5.89 crore in the form of unsecured loan from the
promoters). The overall gearing of the company remained high at
3.93 times as on November 30, 2016 (Provisional).

SHAVYAA has started commercial production of its product in the
month of July, 2016 from partially installed machineries and from
November 2016, it had started production from its entire
completed project with an installed capacity of 3300 Metric Ton
Per Annum as on November 30, 2016. SHAVYAA is expecting to
operate at 75-80% of its installed capacity for the year ending
on March 31, 2017.

Mr. Deoki Nandan Sarogi has more than 22 years of experience in
the Textile Industry; he is also working as a proprietor through
M/s Kankoo Designer Sarees. He will look after the overall
activities of the firm and mainly will be concentrating on
financial matters of the firm. Another partner Mr. Ashok Kumar
Sarawagi is proprietor of M/s Veena Enterprise. He has more than
22 years of experience in textile industry. He will look after
the marketing aspects. Mr. Shiv Prasad Poddar has more than 11
years of experience in the textile industry. He will look after
the production department. Mr. Puneet Sharma has done MBA in
Marketing and has experience in the Polypropylene Industry. Being
engaged in brokerage of Polypropylene Woven Sack since last 4
years, he has developed a strong marketing network globally.


SHIVA SHAKTI: CARE Raises Rating on INR232.16cr LT Loan to BB-
--------------------------------------------------------------
The revision in the ratings of the bank facilities of Shiv Shakti
Sugars Ltd (SSL) factors in the turnaround in the company's
operation during FY16 (refers to the period April 1 to March 31)
supported by sustained improvement in sugar prices and favourable
outlook for the company's core sugar business. The rating
revision also factors in the completion of the sugar and cogen
capacity expansions albeit with time and cost overrun.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities     232.16     CARE BB-; Stable
                                            Revised from CARE B-

The ratings of SSL continue to be constrained by the stressed
capital structure primarily owing to heavily debt-funded project
and continuous losses in the past eroding its networth and its
working capital-intensive nature of operations, cyclical and
regulated nature of the sugar industry.

The rating, however, continues to derive strength from the
experience of the promoters, SSL's partially integrated nature of
operations with cogen power plant and presence in a high recovery
zone.

Going forward, ability of the company to stabilize operations
from concluded capacity expansions and sustain profitable
operations, improve its capital structure and effective
utilization of its working capital limits would be the key rating
sensitivities.

The company registered 11.08% growth in operating income during
FY16, the PBILDT margins improved from 13.41% in FY15 to 27.06%
in FY16 on sugar inventory gain and co-gen units expanded
operations contributing to the profits. However, interest cost
remained high owing to additional working capital borrowings to
fund the rise in inventory, leading to thin PAT margin during
FY16.

Company's capital structure remains stressed with substantially
high levels of debt, though net worth turned positive to INR4.35
crore as on March 31, 2016 as against negative net worth for past
many years on account of accumulation of losses. This was
primarily on account of highly debt funded capex and to fund the
rise in inventory. However, liquidation of the inventory at
prevailing firm prices, is expected to moderate gearing levels.

The project undertaken to expand the sugar crushing capacity as
well as co-gen capacity was completed by October 2016. Post
completion, SSL sugar capacity stands at 10,000 TCD and co-gen
capacity at 37MW.


SHREE RAM: ICRA Reaffirms B+ Rating on INR15.09cr Loan
------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ to the
INR5.09-crore (revised from INR6.06 crore earlier) term loan,
INR10.00-crore cash-credit facility and INR1.41-crore (revised
from INR0.44 crore earlier) untied limits of Shree Ram Rolling
Mill. The outlook on the long-term rating is Stable.


                         Amount
  Facilities          (INR crore)   Ratings
  ----------          -----------   -------
  Fund Based Limits      15.09      [ICRA]B+ (Stable) reaffirmed
  Unallocated Limits      1.41      [ICRA]B+ (Stable) reaffirmed

Detailed Rationale
The reaffirmation of the rating continues to take into account
the weak financial profile of the firm characterised by low
profit margins and weak coverage indicators. Besides, significant
debt-servicing obligations arising on account of term loan
availed for expansion of the existing facilities is likely to
keep its cash flows under pressure in the near term at least. The
ratings are also constrained by the cyclicality inherent in the
steel industry, which is passing through a weak phase, and has
adversely impacted the average realisation of the firm in FY2016.
Further, the profitability and cash flows would remain
susceptible to the inherent volatility in the raw materials and
finished goods prices. ICRA also notes that SRRM has to face
intense competition from large integrated steel manufacturers and
subdued demand from the consuming sectors. Also, the risk of
capital withdrawal in a partnership firm remains a concern.

The rating, however, derives comfort from the experience of the
promoters in the steel industry, partially integrated nature of
operations and favourable location of the manufacturing facility.
The facility is located in close proximity to raw material
sources and its customer base, which provides cost advantage to
the firm in terms of reduced freight costs.
In ICRA's opinion, the ability of the firm to scale up operations
while improving its profitability and managing its working
capital requirements efficiently would be the key rating
sensitivities, going forward.

Key rating drivers

Credit Strengths

* Long experience of the promoters in the steel industry
* Partially integrated nature of operations supports the
  profitability of the firm to some extent
* Location of the plant, in close proximity to raw material
  sources and end-users, provide cost advantage due to reduced
  freight costs

Credit Weakness
* Financial profile characterised by low profit margins and weak
  coverage indicators

* Significant debt-servicing obligations arising on account
  of term loan availed for expansion of the existing facilities,
  which is likely to keep its cash flows under pressure in the
  near term at least

* Profitability and cash flows remain susceptible to inherent
  volatility in the raw materials and finished goods prices

* Competitive business environment due to fragmented nature of
   the industry with presence of multiple players in the
organised
   and unorganised segments

* Risk of capital withdrawal in a partnership firm

Detailed description of key rating drivers highlighted:

SRRM manufactures MS ingots/billets and steel structural items
like channels, joists, angles etc. in Raipur, Chhattisgarh with
the installed capacity of the induction furnace and rolling mill
of 40,000 MTPA and 10,000 MTPA, respectively. The firm has
successfully commissioned a new induction furnace (IF) along with
a continuous casting machine (CCM) for manufacturing MS billets
with an installed capacity of 10,000 MTPA and a steel rolling
mill (SRM) for manufacturing steel structural items with an
installed capacity of 2,000 MTPA during FY2016.
The firm procures sponge and pig iron from the manufacturers
located in nearby states like Jharkhand, Odisha and West Bengal.
The firm has an established relationship with its key suppliers,
which provides competitive advantage to some extent, especially
in the light of raw material availability issue plaguing the
steel industry.

However, the firm remains vulnerable to the inherent cyclicality
associated with the steel industry, which is going through a
sluggish phase at present. Further, the ingot/billet, structural
manufacturing industry is characterised by intense competition
across the value chain due to low product differentiation, and
consequent high fragmentation and low entry barriers, which limit
the pricing flexibility of the participants, including SRRM.
The operating income of SRRM has increased to INR73.17 crore in
FY2016 from INR56.35 crore in FY2015, registering a growth of
~30%, primarily due to increase in sales volume of MS
ingots/billets and structural items. However, the profitability
of the entity continues to remain low on account of intense
competition from a large number of players. The capital structure
of the entity also deteriorated in FY2016 on account of higher
debt level of the entity. Further, the debt-servicing obligations
on the term loan availed for expansion of the existing
facilities, is likely to keep its cash flows under pressure in
the near term at least. The working capital intensity
ofoperations of the firm has remained moderate as reflected by
net working capital relative to operating income (NWC/OI) of 24%
in H1 FY2017.

Analytical approach:

For arriving at the ratings, ICRA has taken into account the debt
-servicing track record of SRRM, its business risk profile,
financial risk drivers and the management profile.

Shri Ram Rolling Mill was established as a partnership firm by
the Raipur-based Gidwani family in 2006. SRRM's plant is located
at Rawabhata Industrial Area in Raipur, Chhattisgarh. SRRM has
facilities for manufacturing mild steel (MS) ingots/ billets and
steel structurals with an annual capacity of 40,000 metric
tonnes (MT) and 10,000 MT per annum, respectively.


SHREE SUKHAKARTA: Ind-Ra Assigns 'BB-' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Shree Sukhakarta
Developers Private Limited (SSDPL) a Long-Term Issuer Rating of
'IND BB-'.

                       KEY RATING DRIVERS

The ratings factor in the execution and saleability risks
attached to SSDPL's on-going project Ariana along with the large
debt-burden that the company is assuming to support the funding
requirement of its other group companies.  Ariana is a 60-floor,
229-unit residential building under construction in Sewri, Mumbai
under a slum rehabilitation agreement.  The company claims 81%
completion on the construction and expects it to be completed by
November 2019.  The company has completed the construction of the
project's rehabilitation building which has 22 floors and 502
residential units.

SSDPL has sold 63% of the units (145 flats out of 229), and
collected 32% of the total amount due from the buyers
(INR 1,450 million).  SSDPL plans to start another project -
Ruparel Regalia at Sion with the total cost of INR 580 million
and saleable area is 1,65,084 sq ft.

The INR3.5 billion NCDs will be used to fund the requirement of
four projects of SSDPL's three group companies.  The rating is
based on the terms which offer the company a six-month moratorium
on interest payment and an 18-month moratorium on the principal
repayment.

This amount will be made available to the group companies in the
form of interest bearing loans.  According to the management one
of the projects of the group companies (IRIS) is 80% completed
and 31% of its units (9 units out of 29 units) have been sold.
The construction and sales of the remaining three projects is yet
to start.  The ratings also factor in the uncertainty regarding
the cash-flows from the other four projects as the debt-servicing
starting June 2018 will be challenging if the other projects do
not start generating cash.

The ratings benefit from the promoters' track record of four
completed projects in Mumbai, and their experience of around more
than a decade in the real estate business.

                       RATING SENSITIVITIES

Positive: Successful launch of the other projects and the selling
of units as planned along with strong sale of the under-
construction project (Ariana) leading to strong cash inflow to
support debt-service could be positive for the ratings.

Negative: Delays or weak sales in the other projects leading to
less than expected cash in-flow and cost overruns at the ongoing
projects stressing cash flows for debt service could be negative
for the ratings.

COMPANY PROFILE

SSDPL, incorporated in 2013, is an SPV of Ruparel Group for the
execution of project Ariana at Sewri in Mumbai.  Ruparel is a
Mumbai-based real estate developer, engaged primarily in the
projects pertaining to slum rehabilitation and redevelopment of
dilapidated buildings.  The Ruparel group has nine ongoing
projects in Mumbai.


SHREE VISHWAKARMA: ICRA Assigns 'B' Rating to INR12.5cr Loan
------------------------------------------------------------
ICRA has assigned the long-term rating of [ICRA]B on the term
loan bank facilities of Shree Vishwakarma Builders. The outlook
on the long-term rating is 'Stable'.

                    Amount
  Facilities     (INR crore)   Ratings
  ----------     -----------   -------
  Term Loan           12.50    [ICRA]B (Stable); assigned

Rationale
The assigned rating factors in the experience and execution track
record of promoters in the real estate business of Meerut, Uttar
Pradesh. The rating positively takes into account the low
execution risk and the high collection efficiency of the firm's
sole ongoing project "Green Paradise":. However, the rating is
constrained by the market and funding risks. Furthermore, like
other real estate players, the firm remains prone to slowdown in
the real estate sector as well as the competition from other
projects.

Going forward, the ability of the firm to ramp up sales, offer
timely possession while ensuring sufficient funding support from
promoters to manage its cashflows will be the key rating
sensitivity.

Key rating drivers
Credit Strengths
* Experience and execution track record of the promoters in
Meerut
* Low execution risk as project is near completion with ~80% of
project cost already been incurred
* High collection efficiency of around 90%
Credit Weakness
* High funding risk given large repayments due in FY2018
* Modest sales - 50% of area sold while project is near
   completion
* Concentration risk due to single project
* Exposure to slowdown in real estate sector

Description of key rating drivers highlighted:

SVB's promoters have experience and execution track record in
residential real estate business in Meerut. They have developed
projects in the region through associate concerns. Launched in
FY2014, SVB's project 'Green Paradise' is exposed to low
execution risks as it is nearing completion and is expected to be
offered for possession from February, 2017.However, despite the
advance stage of completion, the project faces market risk as
only 50% of the area has been booked so far. This is crucial,
given that the firm has large repayment due in FY2018. This is
evident from the low Committed receivables to outflows ratio of
0.13x as of Sep, 2016. ICRA notes that the collection efficiency
for sold area is high, at around 90%, and these collections have
hence been utilised towards project execution.

SVB is a partnership firm incorporated in October, 2012 with
fourteen partners registered at Kanker Khera, Meerut, Uttar
Pardesh. The firm is promoted by Mr. Parminder Tewatia, Ms.
Ravindri Devi and Mr. Arjun Singh. SVB launched a project "Green
Paradise" in Modipuram, Meerut. The project comprises a saleable
area of 3.11 mn sq. ft. and consists of 63 plots, 130 duplex and
26 G+2 floor. The project cost for INR80.0 crore is funded by
INR34.50 crore of bank debt, INR25.52 crore of promoter's
contribution and INR19.98 crore of customer advances.

In FY2016, the company reported a net profit of INR0.05 crore on
an operating income of INR3.46 crore, as compared to a net profit
of INR0.05 crore on an operating income of INR4.45 crore in the
previous year.


SHRIRAM TRANSPORT: S&P Rates Proposed "Masala" Bonds 'BB+'
----------------------------------------------------------
S&P Global Ratings said that it had assigned its 'BB+' long-term
issue rating to a proposed issue of rupee-denominated offshore
bonds, commonly known as "masala" bonds, by Shriram Transport
Finance Co. Ltd. (STFC: BB+/Stable/B).  S&P equalizes the rating
on the notes with the long-term issuer credit rating on the
company.

The notes are direct and unconditional obligations of STFC.  They
are secured and will rank pari passu, without any preference
among themselves, with all other outstanding secured and
unsubordinated obligations of the issuer.

The bond issue has performance-related covenants, which, if
breached, can result in an event of default and early redemption
of the bonds, subject to approval from the Reserve Bank of India
(RBI, India's central bank).  These covenants are: STFC's capital
adequacy ratio (CAR) should comply with minimum regulatory
requirements; and its net nonperforming loan (NPL) ratio based on
recognition norms stipulated by the RBI, should at all times be
equal to or less than (i) 4.0% based on a 120-day delinquency
period from the issue date to March 31, 2018; and (ii) 5.0% based
on a 90-day delinquency period from April 1, 2018 until the
maturity date of the notes.

"We believe that the risk of STFC breaching these triggers over
the next 12 months is limited.  The company has a strong market
position as the largest commercial vehicle (CV) financier in
India. It benefits from high yields on its pre-owned CV portfolio
and low operating costs, which compensate for the high cost of
wholesale borrowings and credit costs. STFC's return on assets of
3.2% in the past five years is higher than the banking industry
average of 1% and comparable to that of some other finance
companies that we rate in India.  As of Sept. 30, 2016, STFC's
net NPL ratio based on a 150-day delinquency period was 2%.  The
company has seen a drop in its collection efficiency over the
past two months due to the cash crunch faced by its borrowers on
account of demonetization in India.  We believe this is a
transitory decline faced by the industry and the company's
collections should improve over the next few months.  Improved
collections along with a 90-day moratorium on recognition of NPLs
provided by the RBI, should protect the company's NPLs from
significant deterioration in the last quarter of the financial
year ending March 2017.  In a stress scenario, we believe the
company has sufficient buffer through its pre-provision profits
and will, if required, aggressively provide for its NPLs to
ensure it does not breach the covenant," S&P said.

S&P expects STFC's credit costs to remain elevated due to the
inherent weakness in its borrowers and asset profile, and
cyclical weakness in the rural economy and infrastructure
activity in India.  S&P believes STFC's good profitability
enables it to maintain a high provision coverage ratio and low
net NPL ratio. STFC's capital benefits from good internal capital
generation and the company's CAR was 17.4% as of Sept. 30, 2016,
comfortably above the regulatory requirement of 15%.


SRI ANJANEYA: CARE Lowers Rating on INR34.80cr Loan to 'B'
----------------------------------------------------------
The revision in the rating assigned to the bank facilities of Sri
Anjaneya Agrotech Private Limited (SAPL) is on account of further
deterioration in the operational and financial performance of the
company in FY16 (refers to the period April 1 to March 31) &
H1FY17 owing to shortage of raw material availability and
increased competition in the plant's vicinity. The rating
continues to be constrained by the seasonal availability of the
raw material (rice bran) and volatility in raw material prices,
and highly competitive market conditions.


                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     34.80      CARE B; Stable
Revised
                                            from CARE B+
The rating, however, derives strength from the experienced
promoters and established market presence of SAPL.

Going forward, the ability of the company to turnaround its
performance and improve its liquidity position would remain the
key rating sensitivities.

SAPL's total operating income declined by 65.30% in FY16 over
FY15 on account of shortage of raw material availability and
under-utilization of available capacities due to increased
competition from other players in the vicinity.

The company has been making losses for the last two years owing
to increased competition and under-utilization of capacity. The
company reported net loss and cash losses of INR3.22 crore &
INR0.22 crore, respectively, in FY16 as against loss of INR2.35
crore and cash profit of INR0.76 crore in FY15.

SAPL continues to have an elongated working capital cycle which
further stretched to 194 days in FY16 due to increase in the
inventory holding period. Inventory majorly consisted of finished
goods as company faced unfavorable price movements and increased
competition from other players, leading to increase in finished
goods inventory. The liquidity position has been very tight with
working capital utilization was nearly full for the last 12
months.

SAPL'S promoters have long standing presence in the industry with
more than 15 years of industrial experience.


SRINIDHI REAL: ICRA Reaffirms 'B' Rating on INR8cr LT Loan
----------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR8.00
crore1 unallocated limits of Srinidhi Real Estate and
Constructions. The outlook on the long term rating is Stable.

                      Amount
  Facilities         (INR crore)     Ratings
  ----------         -----------     -------
  Long-term
  Unallocated Limits      8.00       [ICRA]B (stable)

The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with SREAC, ICRA has been trying to seek information from the
company so as to undertake a surveillance of the ratings, but
despite repeated requests by ICRA, the company's management has
remained non-cooperative. In the absence of requisite
information, ICRA's Rating Committee has taken a rating view
based on best available information. In line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1, 2016, the
company's rating is now denoted as: "[ICRA] B(Stable) NON
COOPERATING ON INFORMATION". The lenders, investors and other
market participants may exercise appropriate caution while using
this rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Srinidhi Real Estate and Constructions was incorporated as a
partnership firm on 19 November 2012 with 18 partners under
Indian Partnership Act 1932 with Registrar of Firm, Adilabad. The
firm is involved in development of real estate (acquiring land
and developing by plotting and constructing structures,
apartments, independent houses, etc). The promoters have earlier
experience in real estate and have completed Manjunath Apartment
(a G+3 floor apartment) in Mancherial in the past.


SUBHANG CAPSAS: CARE Assigns B+ Rating to INR5.46cr LT Loan
-----------------------------------------------------------
The rating assigned to the bank facilities of Subhang Capsas
Private Limited (SCPL) are primarily constrained on account of
its thin profit margins, moderately leveraged capital structure,
weak debt coverage indicators and moderate liquidity position.
Furthermore, the rating is also constrained on account of
susceptibility of operating margins to raw material price
fluctuation, presence in the highly competitive and fragmented
plastic industry.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities     5.46       CARE B+;Stable
                                            Assigned

The ratings, however, derive comfort from the experienced
promoters, established marketing network and reputed client
profile. Furthermore, the rating also derive comfort from
increasing scale of operations albeit continue to remain small.
SCPL's ability to increase scale of operations and improving
profitability in light of high competitive intensity in the
industry and managing risk associated with fluctuation in the raw
material prices would be the key rating sensitivities.
Consequently improvement in cash accruals, solvency position
and debt coverage indicators would also remain crucial.

Total Operating Income (TOI) of SCPL has been growing at a
Compounded Annual Growth Rate (CAGR) of 25% for the past three
years ended FY16 on the back of addition of new customers in its
customer base coupled with getting repetitive orders from the
existing customers. However, PAT margins remained below unity and
thereby low cash accruals. Capital structure remained moderately
leveraged at 2.19x while total debt to GCA remained weak at
53.37x as on March 31, 2016.

The working capital cycle remained elongated at 136 days in FY16
due to higher collection period and higher inventory period
thereby leading to high average working capital utilization. The
management of SCPL comprises of Mr. Jasbir Singh Arora and Mr.
Angad Arora. Mr. Jasbir Singh Arora holds experience of more than
three decades in the same line of business while Mr. Angad
Arora holds total experience of five years into similar line of
operations.


TIRUPATI BALAJEE: CARE Assigns B+ Rating to INR7.71cr LT Loan
-------------------------------------------------------------
The rating assigned to the bank facilities of Tirupati Balajee
Nutrition Private Limited (TBNPL) continues to be constrained by
short track record of its promoters, moderate scale of operation,
raw material price fluctuation and availability risk with
susceptibility to vagaries of nature, highly competitive and
fragmented nature of the industry and government regulation and
control in the sector. However, the aforesaid constraints are
partially offset by the company's unit's locational advantage,
government support in the form of state subsidy and insulation
from economic cycle with stable demand outlook.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long-term Bank Facilities      7.71      CARE B+; Stable
                                            Reaffirmed

Going forward, the ability of TBNPL to increase its scale of
operations with improvement in profitability and effective
management of working capital would be the key rating
sensitivities.

TBNPL scale of operations remained modest as compared to its
peers with a PAT of INR0.23 crore on total operating income of
INR54.12 crore during FY16. Furthermore, total capital employed
of the company, though increased as on March 31, 2016, remained
low at INR13.05 crore as against INR12.12 crore as on March 31,
2015.

TBNPL's unit has close proximity to local grain markets, major
raw material procurement destinations for the company. Further,
Bihar is one of the major wheat producing states in India. In
addition, the plant is having good transportation facilities and
other requirements like good supply of power, water etc.
Accordingly, TBNPL has locational advantage in terms of proximity
to raw material and connectivity.

The state government of Bihar, under the scheme "Integrated
development", designed for advancement of food processing sector
in Bihar is focusing on food processing industry to achieve a
"faster" and "all-inclusive" economic growth with its favourable
industry policies and accordingly, companies like TBNPL will be
benefited in future years also. Presently, the company is
entitled to receive INR 1.32 crore as subsidy from Bihar
government. Demand outlook for wheat appears to be stable and
offers insulation from economic cycle.

TBNPL commenced commercial production at its plant in August,
2012 and has successfully completed more than four years of
operation with FY14 being the first full year of operation for
the company. Further, the total operating income (TOI) increased
marginally by 4.56% during FY16 vis-a-vis FY15, the same
remaining relatively low at INR54.12 crore. Further, till H1FY17
TBNPL has achieved total operating income of INR52.10 crore.
Accordingly, the scale of operations remained moderate.

Roy family has been involved in the business of construction
through its family managed partnership firm. Shri Ritesh Kumar
(aged about 34 years, MBA) started TBNPL in order to diversify
the business considering the opportunities in the flour milling
industry with the aid and support received from the
State government of Bihar. Accordingly, promoters of TBNPL have
more than four years of experience in the existing line of
business.

The prices of major raw material, i.e. wheat, are dependent on
its availability which is further dependent on climatic
conditions. Wheat production's overdependence on monsoons is an
inherent risk which may impact its availability, resulting in
volatility in wheat prices. Further, the company doesn't have any
long term contracts with any of its suppliers and procure the raw
materials on spot price. Since, raw material is the major cost
driver for TBNPL accounting about 92.22% of total cost of sales
in FY16, any increase in raw material prices without
corresponding increase in finished goods prices will result in
adverse performance of the company.

Flour mill industry is highly fragmented and competitive marked
by the presence of numerous organized and unorganized players due
to low entry barriers on the back of limited capital and
technological requirements and capital subsidy provided by
Government to promote agro based industries, leading to intense
competition within the players. Hence, the players in the
industry do not have any pricing power and are exposed to
competition induced pressures on profitability.

Wheat being a staple food, its prices is under the tight control
of the Central/State Government. There are strict regulations in
place relating to Minimum Support Price and Exim policy which
hugely affects the wheat prices domestically. It is to be noted
that, the Minimum Support Price of wheat has recently been
changed to INR1625/quintal during 2016-2017 from INR1525/quintal
during 2015-2016.


UMADUTT INDUSTRIES: Ind-Ra Affirms 'D' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Umadutt
Industries Limited's (UIL) Long-Term Issuer Rating at 'IND D'.

                        KEY RATING DRIVERS

The affirmation reflects UIL's tight liquidity leading to delays
in debt servicing during the three months ended November 2016.

                       RATING SENSITIVITIES

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

COMPANY PROFILE

Incorporated in 2001, UIL manufactures woven sacks with an
installed capacity of 5,040 metric tonne per year in Meghalaya.


UNIPHOS INTERNATIONAL: Ind-Ra Affirms 'BB+' Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Uniphos
International Limited's (UIL) Long-Term Issuer Rating at 'IND
BB+'.  The Outlook is Stable.

                       KEY RATING DRIVERS

The affirmation reflects UIL's credit metrics remaining
comfortable in FY16.  The company's borrowing levels remained
minimal historically, leading to comfortable leverage and
coverage indicators.  Its net leverage (net debt/EBITDA) was
negative 3.71x in FY16 (FY15: negative 7.57x; FY14: positive
0.89x) and gross interest coverage (EBITDA/gross interest
expenses) and net interest coverage (EBITDA/net interest
expenses) were 4.4x (FY15: 2.5x; FY14: 3.79x) and -3.2x (FY15: -
3.9x; FY14: -4.05x), respectively.  The agency expects UIL's
credit metrics to remain comfortable over the near to medium
term.

The affirmation also reflects UIL's continued comfortable
liquidity position.  Interest income stayed higher than interest
expenses, leading to a negative net interest coverage.  Moreover,
the company had unutilized bank lines in the form of a cash
credit facility (which stood at INR30 million as of Dec. 28,
2016,), which provides it a liquidity cushion.

The affirmation is supported by prudent risk control measures
adopted by UIL.  UIL's sales are concentrated in African and
South American countries.  However, the majority of sales are
backed by letters of credit.  In addition, UIL obtains export
credit insurance from Export Credit Guarantee Corporation of
India Ltd. in most transactions wherein sales are not backed by
letters of credit.  Moreover, the company follows conservative
hedging policies to cover the risk of foreign currency
fluctuations.

However, the rating remain constrained by small scale of
operations and declining revenue (FY16: INR354 million; FY14:
INR623 million; FY15: INR507 million) due to the trading nature
of its business.  UIL's EBITDA margin increased to 7.6% in FY16
owing to a rise in liquid chlorine sales, a high-margin product
according to the management; supplies to new markets; and one-
time contracts from government agencies, where margins were high.
UIL's EBITDA margin continued to remain at higher than historical
levels at 9.7% in 1HFY17, indicated by provisional financials.
Historically, UIL's EBITDA margin has remained low at about 4%.
The agency expects EBITDA margin to normalize over the next 12-18
months.

                       RATING SENSITIVITIES

Positive: Significant improvements in revenue and EBITDA margin
while maintaining a comfortable credit profile on a sustained
basis may lead to a rating upgrade.

Negative: A deterioration in credit metrics or liquidity profile
on a sustained basis may lead to a rating downgrade.

COMPANY PROFILE

Incorporated in 1992, UIL is engaged in the trading of chemicals,
agro products and engineering goods.  UIL is a private company
and a part of the UPL group.  UIL's shareholding is divided
between UPL Ltd (15.1%) and the promoters of the UPL group.


UNITED SEAMLESS: ICRA Cuts Rating on INR1006.5cr Loan to D
----------------------------------------------------------
ICRA has downgraded the long-term and short-term ratings
outstanding for the INR289.00 crore, bank facilities of United
Seamless Tubulaar Private Limited from [ICRA]BB with a stable
outlook and [ICRA]A4 earlier to [ICRA]D and [ICRA]D respectively.
ICRA has also downgraded the long-term rating outstanding for the
INR1006.50 crore Non Convertible Bond (NCB) programme of USTPL
from [ICRA]BB to [ICRA]D.


                      Amount
  Facilities        (INR crore)   Ratings
  ----------        -----------   -------
  Non Convertible       1006.5    Downgraded from [ICRA]BB
  Bonds                           (Stable) to [ICRA]D

  Short term/long        289.0    Downgraded from [ICRA]BB
  term fund based                 (Stable) /A4 to [ICRA]D/D
  and non-fund based
  limits

The rating downgrade factors in the delays in debt-servicing by
the company on its bank facilities. The rating action is based on
the best available information. As part of its process and in
accordance with its rating agreement with USTPL, ICRA has been
trying to seek information from the company so as to undertake a
surveillance of the ratings. But despite repeated requests by
ICRA, the company's management has remained non-cooperative. In
line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated
Nov. 1, 2016, the company's rating is now denoted as: "[ICRA] D
ISSUER NOT COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Analytical approach: Default Recognition

United Seamless Tubulaar Private Limited is a 60:40 joint venture
between the Hyderabad based Kamineni group and the Malaysia based
UMW group. USTPL operates a 300,000 MT per annum (MTPA) seamless
pipe manufacturing facility in Nalgonda district of Telangana.
The UMW group is a USD 4.12 billion conglomerate with interests
in automotive, oil and gas equipment and engineering. The
partners of the joint venture are United Steel Allied Industries
Private Limited (USAIPL), Oil Country Tubular Limited (OCTL) and
UMW India Ventures (the investment arm of UMW in India), holding
shares of 40%, 20% and 40%, respectively, in USTPL. USTPL's
facility has the capability to manufacture seamless pipes of
varying diameters (outside diameters of 5 inches to 14.4 inches)
including drill, casing, tubular and line pipes.

In FY2015, the company reported an operating income of INR338.1
crore with an EBITDA loss of INR39.5 crore as against an
operating income of INR376.4 crore with an EBITDA loss of INR51.7
crore in FY2014.


UNITY DEVELOPERS: ICRA Reaffirms B+ Rating on INR9.23cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to the INR9.231
crore (reduced from INR11.23 crore) fund based limit of Unity
Developers. ICRA has also assigned the long -term rating to the
INR2.00 crore unallocated limits of the company at {ICRA]B+. The
outlook on long term rating assigned is stable.

                     Amount
  Facilities      (INR crore)    Ratings
  ----------      -----------    -------
  Long-term Fund
  Based Limit          9.23      [ICRA]B+ (stable) Reaffirmed

  Long term
  Unallocated limits    2.00     [ICRA]B+(stable) Assigned

Rationale
The rating reaffirmation is constrained by UD's exposure to
market risk as only 41.2% of the saleable area has been booked,
despite 91.33% of the construction work being completed. The
rating also takes into account the exposure of the firm's
operations to the cyclicality inherent in the real estate sector
as well as the risks of capital withdrawal associated with
partnership firms.

The rating, however, continues to draw comfort from the
promoters' extensive experience in the development of real estate
in Ahmedabad through associate concerns. Furthermore, because of
the possession of requisite approvals, the firm's exposure to
regulatory risks remains low. Approximately 41.2% of the
project's saleable area was booked as on November 30, 2016, and
the company received 65.58% of the collections from its
customers. UD has utilised these funds to repay the term loan to
the tune of 14%.
The pace of future bookings and timely receipt of customer
advances, coupled with timely completion of the project, will
remain crucial for the firm to service its debt obligation.

Key rating drivers

Credit Strengths
* Extensive experience of promoters in the field of real estate
   development
* Low regulatory risks since all approvals, except building-use
   permission, are in place
* Prepayment of 14% of the term loan (INR1.50 crore) disbursed
   till date, backed by healthy collections from customers
Credit Weakness
* Exposure to market risks as the booking status is only 41.2%
   despite 91.33% of the construction work being completed
* Exposure to the cyclicality of the real estate sector
* Risk of capital withdrawals inherent in the partnership firm

Description of key rating drivers highlighted:

Out of the total 112 flats in the project, the firm has signed
sales agreements for 26 flats as on 30th November 2016. The firm
has in total received bookings for 45 flats as on the
aforementioned date. Thus, ~41.2% of the total saleable area of
the project has been booked as on 30th, November 2016. UD has
received collection of INR16.30 crore on booking of the flats.
Out of the total sales proceeds, INR1.50 crore has been utilised
towards prepaying the term loan and accordingly the term loan
outstanding as on 30th November, 2016 stood at INR9.23 crore.
Nevertheless, 58.8% of the total saleable area (1,08, 459 sq.
Ft.) comprising 67 flats is yet to be sold by the firm.
Accordingly, the pace of future bookings and timely receipt of
customer advances, coupled with the timely completion of the
project, will remain critical for UD's debt servicing, which is
to commence from April 2017.

Nevertheless, Unity Developers' promoters have extensive
experience in the field of real estate development and have
executed various residential projects through UD's associate
concerns. The established track record of the promoters thus
ensures UD's planning and execution capability in completing the
present project. Out of the total construction cost of INR33.5
crore, the firm has incurred INR30.08 crore (89.8% of total
construction cost) as on 30th November, 2016. The execution risk,
thus, remains low for the project with only ~10.2% of
construction work still pending. Furthermore, owing to the
requisite approvals being in place, the firm's exposure to
regulatory risks remains low.

Analytical approach:
For arriving at the ratings, ICRA has taken into account the debt
servicing track record of UD, its business risk profile,
financial risk drivers and management profile.

Established in December 2013 as a partnership firm, Unity
Developers (UD) is involved in the construction of residential
apartments. The firm is based in Ahmedabad, Gujarat, and is
currently executing its first residential project, "Domain
Heights", at Satellite in Ahmedabad. The project consists of two
towers comprising 112 apartments, with a total saleable area of
1,84,464 sq. ft. The development of the project, which is
targeted at consumers from the middle income segment, commenced
in May 2014 and is expected to be completed by March 2017.

The partners of the firm have executed several projects,
comprising a total saleable area of 17,05,545 sq. ft. in
Ahmedabad, in association with other companies.


VIKAS KRISHI: ICRA Reaffirms B+ Rating on INR6.0cr Loan
-------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to the INR6.00
crore fund based limits of Vikas Krishi Sewa Kendra at [ICRA]B+.
The outlook on the long-term rating is 'Stable'.


                     Amount
  Facilities       (INR crore)     Ratings
  ----------       -----------     -------
  Long-term fund-
  based limits          6.00       [ICRA]B+ (Stable)

The rating action is based on the best available information. As
part of its process and in accordance with its rating agreement
with VKSK, ICRA has been trying to seek information from the
company so as to undertake a surveillance of the ratings, but
despite repeated requests by ICRA, the company's management has
remained non-cooperative. In the absence of requisite
information, ICRA's Rating Committee has taken a rating view
based on best available information. In line with SEBI's Circular
No. SEBI/HO/MIRSD4/CIR/2016/119, dated Nov. 1, 2016, the
company's rating is now denoted as: "[ICRA]B+ (Stable) ISSUER NOT
COOPERATING". The lenders, investors and other market
participants may exercise appropriate caution while using this
rating, given that it is based on limited or no updated
information on the company's performance since the time it was
last rated.

Analytical approach: For arriving at the ratings, ICRA has taken
into account, interalia, the standalone financials of Vikas
Krishi Sewa Kendra.

Vikas Krishi Sewa Kendra is a proprietorship firm engaged in the
trading of seeds, fertilizers, pesticides, oil paints and colour
etc. In seeds the firm trades in BT Cotton Seeds (T-1 and T-2
variety), hybrid Maize, Jowar, Wheat etc. In fertilizers, the
firm trades in UREA, Superphosphates, DAG etc. The firm also
deals in the pesticides and has dealership of Asian Paints.


=========
J A P A N
=========


ASAHI MUTUAL: Fitch Assigns 'BB-' Rating to Proposed US$ Bonds
--------------------------------------------------------------
Fitch Ratings has assigned Asahi Mutual Life Insurance Co.'s
(Asahi Life; Insurer Financial Strength rating: BB+/Stable)
proposed US dollar step-up callable cumulative perpetual
subordinated bonds with interest deferral options an expected
rating of 'BB-(EXP)'.  The agency has simultaneously published
Asahi Life's Long-Term Issuer Default Rating (IDR) at 'BB' with a
Stable Outlook.

The proceeds from the bond issue will be used for general
corporate purposes.  The total issuance amount and coupon of the
subordinated bonds have yet to be decided.  The issue is expected
to be callable after five years, at which point there would be a
100bp coupon step-up feature.

The final rating is contingent on the receipt of final documents
conforming to information already received.

                        KEY RATING DRIVERS

The subordinated bonds are rated one notch below Asahi Life's
Long-Term IDR to reflect our baseline assumption of "below
average" recovery.

The bonds include a mandatory interest deferral feature on a
cumulative basis, which is triggered when Asahi Life's statutory
solvency margin ratio (SMR) falls below the regulatory capital
requirement of 200% on a consolidated or non-consolidated basis
or on the issuance of an order of prompt corrective action by
Japan's Financial Services Agency.  The company's SMR was 707% on
non-consolidated basis and 710% on consolidated basis at end-
September 2016.  Fitch classifies the interest deferral features
on this instrument as "minimal" non-performance risk, with no
additional notching applied, in line with Fitch's notching
criteria.

The subordinated bonds are classified as 100% capital within
Fitch's assessment of risk-based capital adequacy, as Fitch
follows the regulatory treatment of hybrids under its criteria
when assessing capital adequacy.

The bonds are classified as 50% debt and 50% equity capital for
the agency's financial leverage calculations, which follow Fitch-
specific guidelines under the agency's methodology for treatment
of hybrids in the financial leverage ratio.  Typically, hybrids
with coupon step-ups combined with call provisions are treated as
100% debt by Fitch.  However, the agency believes that under the
current regulation, Japanese regulators will be assertive in
ensuring Japanese insurers meet requirements to issue at least
the same amount of perpetual subordinated debt of the same (or
better) quality when a company redeems perpetual subordinated
debts.  Fitch therefore regards Japanese insurers' perpetual
subordinated debt as having economically "perpetual"
characteristics, even if they have call dates with modest step-
ups.

Fitch expects Asahi Life's financial leverage and its interest
coverage to remain adequate, after this perpetual subordinated
bonds issuance.

                      RATING SENSITIVITIES

Key rating triggers for an upgrade include a further
strengthening of capitalization and a decline in financial
leverage to below 35% on a sustained basis.  Growth in the
profitable "third" (health) sector business and lower surrender
and lapse rates of death-protection products would also be
positive.

Key rating triggers for a downgrade include a major erosion of
capitalization; higher financial leverage to above 45%; and
significant deterioration in profitability, such as the core
profit margin falling below 5% on a sustained basis.


TAKATA CORP: Expected to Plead Guilty as Part of $1BB Settlement
----------------------------------------------------------------
The Japan Times reports that Takata Corp. was expected to plead
guilty to fraud charges as early as Jan. 13 as part of a
$1 billion settlement with the Justice Department over its
handling of air bag ruptures linked to 16 deaths worldwide,
sources said.

The report relates that the settlement includes a $25 million
criminal fine, $125 million in victim compensation and $850
million to compensate automakers who have suffered losses from
massive recalls, the sources said.

The Japan Times says the settlement also calls for an independent
monitor of the auto parts manufacturer. It could help Takata win
financial backing from an investor to potentially restructure and
pay for massive liabilities from the world's biggest auto safety
recall.

The company is poised to plead guilty to wire fraud, or providing
false test data to U.S. regulators, according to the sources, who
were not authorized to discuss the settlement publicly, The Japan
Times relays.

In 2015, Takata admitted in a separate $70 million settlement
with U.S. auto safety regulators that it was aware of a defect in
its air bag inflators but did not issue a timely recall, the
report recalls.

It admitted it provided the regulator, the National Highway
Traffic Safety Administration, with "selective, incomplete or
inaccurate data" dating back at least six years and also provided
automakers with selective, incomplete or inaccurate data,
according to The Japan Times.

The Japan Times says the wire fraud charge is expected to be
filed in U.S. District Court in Detroit.  According to the
report, the Justice Department is considering naming Ken
Feinberg, a longtime compensation adviser, to oversee the Takata
settlement funds.

The report relates that the settlement is expected to include
restitution to some victims and automakers, who have been forced
to recall vehicles with the defective inflators. Honda Motor Co
and Takata have settled nearly all lawsuits filed in connection
with fatal crashes. The recall impacts 19 automakers including
Ford Motor Co., General Motors Co., Toyota Motor Corp.,
Volkswagen AG and Fiat Chrysler Automobiles NV, the report notes.

                        About Takata Corp

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.  The
Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.

In May 1995, a voluntary recall in the U.S. affecting 8 million
predominantly Japanese built vehicles made from 1986 to 1991 with
seat belts manufactured by the Takata was conducted.

Large recalls of vehicles due to faulty Takata-made airbags began
in 2013.

Takata is presently facing massive costs of recalling 100 million
defective airbag inflators worldwide and lawsuits tied to at
least 16 deaths and numerous injuries.

As of May 19, 2015, Takata has already recalled 40 million
vehicles across 12 vehicle brands for defective airbags.

In November 2015, Takata was fined $200 million by U.S. federal
regulators for mishandling the way it recalled its air bag
inflators.  The fine is the largest civil penalty in NHTSA
history.



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


CHINA FISHERY: Court Moves Plan Filing Deadline Through March 31
----------------------------------------------------------------
Judge James L. Garrity, Jr. of the U.S. Bankruptcy Court for the
Southern District of New York extended the exclusive periods
during which only Pacific Andes Resources Development Limited,
China Fishery Group Limited (Cayman) and certain of their
affiliated debtors may file a chapter 11 plan and solicit
acceptances, specifically, extending the exclusive periods
through and including March 31, 2017 and May 31, 2017,
respectively.

The Troubled Company Reporter had earlier reported that the
Debtors said William Brandt, the Chapter 11 Trustee for CFG Peru
Singapore, had expressed his support for an extension while he
still works to assess and stabilize the Peruvian businesses. The
Trustee had specifically requested that the Debtors hold off on
their own independent efforts to develop and communicate a
chapter 11 plan term sheet and business plan.

The Debtors related that prior to the appointment of the Chapter
11 Trustee, the Debtors and their professionals were prepared to
propose a framework for a restructuring and to provide their
creditors and interest holders with a term sheet, and then meet
with various creditor constituencies within the week of November
14.  However, immediately after his appointment, the Chapter 11
Trustee conveyed his strong preference for the Debtors and
Pacific Andes Resources Development Limited to suspend work on
the term sheet and or related business plan in order to allow him
time to assess the situation and take such other actions as he
deemed necessary prior to commencement of restructuring
negotiations.

                          About China Fishery Group

China Fishery Group Limited (Cayman) and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Case No. 16-11895) on June 30, 2016. The petition was
signed by Ng Puay Yee, chief executive officer.  The case is
assigned to Judge James L. Garrity Jr.  At the time of the
filing, the Debtor estimated its assets at $500 million to $1
billion and debts at $10
million to $50 million.

Howard B. Kleinberg, Esq., Edward J. LoBello, Esq. and Jil
Mazer-Marino, Esq. of Meyer, Suozzi, English & Klein, P.C. serve
as legal counsel. The Debtor has tapped Goldin Associates, LLC,
as financial advisor and RSR Consulting LLC as restructuring
consultant.

On November 10, 2016, William Brandt, Jr. was appointed as
Chapter 11 trustee of CFG Peru Investments Pte. Limited
(Singapore). Chapter 11 Trustee employs Skadden Arps Slate
Meagher & Flom LLP as counsel and Hogan Lovells US LLP as special
counsel to the Trustee.



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


HANJIN SHIPPING: Bid to Sell U.S. Assets Underway
-------------------------------------------------
Tai-Soo Suk, the duly appointed foreign representative of Hanjin
Shipping Co. Ltd., is seeking an order from the Hon. John K.
Sherwood of the U.S. Bankruptcy Court for the District of New
Jersey (i) recognizing and enforcing the Korean sale order, and
(ii) approving the sale of the Debtor's interest in Total
Terminal International LLC ("TTI") and Hanjin Shipping TEC Inc.
("HTEC").

Pursuant to the sale motion, the foreign representative seeks
authority to sell the Debtor's interest in, and loans to, TTI and
HTEC to Terminal Investment S.a.r.l. free and clear of liens,
claims, encumbrances and other interest, and to be entrusted with
the distribution of the sale proceeds.

Luxembourg-based Terminal Investment Limited is an affiliate of
Switzerland-based Mediterranean Shipping.

According to a report by the Seattle Times, Terminal Investment
plans to eventually sell a portion of the Seattle operations to
South Korea's Hyundai Merchant Marine.  As part of the Hanjin
deal, the new owner is forgiving a $54.6 million outstanding
balance due from Hanjin and taking on $202.9 million in debt,
which is a big reason why the $78 million purchase price was so
low.

The sale request was scheduled for hearing before Judge Sherwood
on Jan. 12, 2017.

Any party wishing to obtain a copy of the sale motion should
contact Jacob Frumkin, Esq., at jfrumkin@coleschotz.com

                            *     *     *

Alex Wolf, writing for Bankruptcy Law360, reported that Ken
Coleman of Allen & Overy LLP, counsel for Hanjin Shipping, urged
Judge Sherwood on Jan. 12 to approve the Company's bid to sell
its U.S. assets, including equity interest in a financially
distressed operator of port terminals, for $78 million, saying
it's the best deal for Hanjin and its creditors, despite several
of their objections.

In a prior report, Bankruptcy Law360's Mr. Wolf reported that the
Company's creditors objected to the Korean courier's efforts to
secure court approval of an asset sale to Hyundai Merchant Marine
Co. Ltd., saying Hanjin may not have fetched the best offers and
may sidestep outstanding debts without closer scrutiny.  The
report said a group of container companies and other creditors
said they are concerned that Hanjin rushed through a sale of
equity interest in Total Terminals International LLC and Hanjin
Shipping TEC Inc.

According to a report by Linda Chiem of Bankruptcy Law360,
container companies told the Bankruptcy Court last week that
Hanjin Shipping's "retaliatory" subpoenas and document requests
are examples of discovery abuse and should be shut down, as the
companies continue to fight to get paid as the collapsed carrier
starts selling off its assets.

Textainer Equipment Management (U.S.) Ltd., Seaco Global Ltd. and
Container Leasing International LLC, which does business as
SeaCube Containers LLC, filed a motion to quash subpoenas issued
by Hanjin's foreign representative requesting depositions.

As reported by the Troubled Company Reporter, Textainer Equipment
Management (U.S.) Limited, Seaco Global, Ltd., and Container
Leasing International, LLC d/b/a SeaCube Containers LLC, and
Textainer and Seaco, have asked the New Jersey Bankruptcy Court
to enter an Order directing Tai-Soo Suk, a foreign representative
of the Debtor, Hanjin Shipping Co. Ltd., to comply with the
Disclosure Order and, adjourn the sale motion objection deadline
and the sale hearing date or, in the alternative, appoint a
Chapter 11 Examiner to investigate, administer, and realize upon
the Debtor's assets located within the territorial jurisdiction
of the United States.

In December, Seoul Central District Court approved a bid by
Hanjin Shipping to sell its stake in a California terminal to
Switzerland's Mediterranean Shipping Co. SA, said Martin
O'Sullivan at Bankruptcy Law360, citing media reports.

                      About Hanjin Shipping

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000. Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year. It also operates 13 terminals specialized
for containers, two distribution centers and six Off Dock
Container Yards in major ports and inland areas around the world.
The Company is a member of "CKYHE," a global shipping conference
and also a partner of "The Alliance," another global shipping
conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016.  Tai-Soo Suk was appointed as the Debtor's
custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.


HANJIN SHIPPING: Hyundai Merchant to Hire 220 Hanjin Workers
------------------------------------------------------------
Hyundai Merchant Marine said on Jan. 11, 2017, that it determined
to initially employ 131 of Hanjin's workforce including onshore,
offshore, overseas staff and ship managers.

Moreover, HMM will also recruit 41 additional ex-Hanjin's
employees including offshore staff and assign them to the tasks
next month. Then, HMM will acquire total 172 of Hanjin's
workforce next month.

In addition, HMM said it also plans to rehire the maximum of
40-50 additional Hanjin's offshore staff to fit in with expansion
HMM plans by acquiring additional vessels. Its move will bring
the total rehired staff number up to around 220.

HMM CEO, C.K. Yoo said "We acquire the best shipping workforce
via 1:1 interview. We will fully support Hanjin's workforce to
help them quickly adapt and adjust into HMM's corporate culture
and come into their own."

                       About Hanjin Shipping

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000. Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year. It also operates 13 terminals specialized
for containers, two distribution centers and six Off Dock
Container Yards in major ports and inland areas around the world.
The Company is a member of "CKYHE," a global shipping conference
and also a partner of "The Alliance," another global shipping
conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016. On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016.  Tai-Soo Suk was appointed as the Debtor's
custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.


HYUNDAI MERCHANT: Fails to be Full-Fledged 2M Alliance Member
-------------------------------------------------------------
The Korea Times reports that Hyundai Merchant Marine (HMM) has
failed to become a full-fledged member of global shipping
alliance 2M.

The Korea Times relates that joining a global alliance was one of
the key conditions set by its creditors for its rehabilitation
program and debt rescheduling, but Maersk Line, the world's
largest container line in the 2M alliance, said that it and MSC
have instead entered into strategic cooperation "outside the
scope of MSC and Maersk Line's 2M vessel-sharing agreement."

Earlier this month, HMM also signed a memorandum of understanding
with domestic intra-Asia shippers Sinokor Merchant Marine and
Heung-A Shipping to form an alliance called the HMM + K2
consortium, the report recalls.

HMM said the partnership involves basic vessel sharing, joint
investments in port infrastructure and sharing of containership
equipment over the long term, adds The Korea Times.

Hyundai Merchant Marine Co., Ltd., is a Korea-based company
specializing in the provision of shipping services.  The Company
provides its services under two main segments: container and
bulk.

Hyundai Merchant Marine is currently under a creditor-led
restructuring scheme.


KUMHO TIRE: Creditors Moves Selection of Winning Bidder
-------------------------------------------------------
Yonhap News Agency reports that creditors of Kumho Tire Co. have
agreed to postpone the announcement of the preferential bidder
for the second-largest tire maker in South Korea until this week,
an official said Jan. 13.

According to Yonhap, three Chinese firms joined the bid, which
closed on Jan. 12, to acquire a controlling stake in Kumho. They
are Qingdao Doublestar Co., Shanghai Aerospace Industry Co. and
Jiangsu GPRO Group Co., the report discloses.

The 42.01-percent stake up for sale is estimated to be worth
around KRW1 trillion (US$846 million), Yonhap notes.

Yonhap says the Korea Development Bank (KDB) and eight other
creditors were initially expected to pick the winning bidder on
Jan. 13.

"The selection has been delayed until early next week at the
request of Credit Suisse," which is running the auction process,
a KDB official said, Yonhap relays.

More time is needed to review documents on "non-price factors"
such as the bidders' resolve to buy Kumho and deal with
employment issues, he added, reports Yonhap.

Kumho Tire Co. Ltd. manufactures tire.  The company's offerings
include tires for sports utility vehicles, passenger cars,
various sizes of trucks and buses and racing cars.  In addition,
the company provides batteries for automobiles.  The company is
part of the Kumho Asiana Group.

According to Yonhap News Agency, Kumho Tire graduated from a debt
rescheduling program in 2014. The tire company was placed under a
creditors-led workout program five years earlier because its
parent Kumho Asiana Group was hit hard by a severe liquidity
crunch from the purchase of Daewoo Engineering and Construction
Co.

In the January-September 2016, Kumho Tire's net losses widened
to KRW54.9 billion from KRW32.97 billion a year earlier.
Operating profit also plunged to KRW65.3 billion from KRW93.2
billion during the same period, with sales down 4.4 percent year-
on-year to KRW2.16 trillion, Yonhap discloses.



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


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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.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.

Copyright 2017.  All rights reserved.  ISSN: 1520-9482.

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

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552.



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